HUMAN RESOURCE MANAGEMENT

Human resource Management is a management function that helps managers recruit, select, train, and develop members for an orgninsation HRM is concerned with the people dimensions in organizations. The concept of HRM has been gaining prominence and focus in management during the last two decades. Human resource is considered to be the center of all development processes of the economy. While HRM was known for ages, its rediscovery has been necessitated by the deteriorating social conditions, increased competition and rapid technological advancement. Thus HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness.

DEFINITIONS 1. HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential in achieving organizational objectives. This is true, regardless of the type of organization ie government, business, education, health, recreation, or social action. HRM is the process of increasing knowledge, capabilities and positive work attitudes of all people working at all levels in a business undertaking.

2.

NATURE & SCOPE OF HRM The scope of HRM is indeed vast. All activities including from the time the employee enters the organization until he leaves come under the purview of HRM. The activities included are a) Human resource planning b) Recruitment and Selection c) Orientation d) Training and development e) Organizational development f) Career Development g) Job Design h) Performance Management System i) Compensation and benefits j) Employee assistance k) Labour relations l) HR research and information systems and Audit

FUNCTIONS OF HRM HRM aims at bringing together expertise and skills in a scientific way. It helps in creating attitudes and motivate a group to achieve the organizational goals effectively and economically. The functions of HRM can be broadly classified as 1. THE INCEPTION FUNCTION This function deals with recruitment and selection of human resource. It involves identification of skills, knowledge and abilities. It facilitates fixation of performance standards, pay structure. The focus is on facilitating adjustment to the work environment, attainment of organizational goals and adherence to the rules and regulations of the department. 2. DEVELOPMENT FUNCTION - It covers employee training, employee development, organization development. The focus is on assisting employees to acquire better and improved skills. 3. MOTIVATION FUNCTION This function aims at improving performance. This needs proper job designing, adoption of an effective performance appraisal system and introduction of a fair and just system of incentives and compensation.

4. MAINTENANCE FUNCTION - The maintenance function deals with activities that will help to retain productive employees. It involves providing safe working environment, caring for the well being of the employees and organizing communication programmes. 5. COMPENSATION AND BENEFIT FUNCTION It is concerned with paying the employees and in administering their benefit package. The pay is based on considerations like skills, job responsibility, efforts and accountability 6. EMPLOYEE RELATIONS FUNCTION The task is to solve employee grievances. The function involves enforcement of policies and procedures.

FUNCTIONS OF HRM MANAGERIAL OPERATIVE JOB ANALYSIS HUMAN RESOURSE PLANNING RECRUITMENT SELECTION PLACEMENT INDUCTION / ORIENTATION PERFORMANCE APPRAISAL TRAINING CAREER PLANNING & DEVELOPMENT ORGANISATIONAL DEVELOPMENT

1. 2. 3. 4.

PLANNING 1. EMPLOYMENT ORGANISING DIRECTING CONTROLLING

2. HRD

3.COMPENSATION

JOB EVALUATION WAGE & SALARY ADMINSTRATION INCENTIVE BONUS FRINGE BENEFITS SOCIAL SECURITY MEASURES

4.HUMAN RELATIONS

UNDERSTANDING & MAINTAINING RELATIONSHIP MOTIVATION THE EMPLOYEES BOOSTING UP THE EMPLOYEES MORALE DEVELOPING COMMUNICATION SKILLS DEVELOPING THE LEADERSHIP SKILLS REDRESSAL OF EMPLOYEE'S GRIEVANCES DISCIPLINARY CASES HANDLING COUNSELLING IMPROVING THE QUALITY OF WORK LIFE OF EMPLOYEES

FUCNTIONS OF PERSONNEL MANAGEMENT The National Institute of Personnel Management, India classifies the functions of Personnel Management as 1. 2. 3. 4. 5. 6. Improvement of Industrial Relations Promotion of Joint Consultation Helping Management to formulate a labour policy and improving communication between management and employees Advising the Management on the fulfillment of statutory obligations relating to safety, health of employees Improving factory amenities and welfare provisions advising the management on the training and further education of employees.

Role of HRM
Role of Human Resource Management Welfare Role Personnel Role Fire-Fighting Role HR Role

Advisory - Advising Mgt on effective use of Human Resource

Research in Personnel & Organisational Problems

Time keeping

Grievance Handling

Manpower Planning Recruitment Selection, etc

Managing Services Canteen, transport, co-operative society, Creche, etc., Group Dynamics Group Counseling, Motivation, Leadership, Communication, etc

Salary & Wage Administration

Settlement of disputes

Training & Development

Incentives

Handling In Disciplinary cases

Measurement and assessment of individual and group behavior

Maintenance of Records

Collective Bargaining

Human Engineering Man-Machine Relationship

Joint Consultation

HR STRUCTURE

Director HR

Organisational Planning & Development

Staffing & Employment

Training & Development

Wage & Salary Admn.,

Motivation

Employee Services & Benefits

Employee Records

Labour Relations

Personnel Audit Research etc.,

Formulating Policies

Manpower Planning

Competency Mapping

Job Evaluation

Financial Incentives

Safety / Welfare/ Health

Collection of Data

Grievance Handling

Employee Opinion Survey

Planning Desining & Organisational Structure

Recruitment

Gap Analysis

Market Survey

Non-Financial Incentives

Employee Counselling

Analysis of Data

Implementation of Labour Laws

Record Keeping

Designing / Development of Interpersonal Relationships

Selection

Training Need Identification

Maintenance of Payroll

Medical Services

Developing Information for Decisions

Collective Bargaining

Identification of Needs & Areas of Change

Placement

Preparation of Training Calendar

Incentive Compensation

Recreational & Welfare Services

Discipline

Induction Orientation

Feedback

Performance Appraisal

Benefits Leave, Pension, Gratuity PF & Other Supplimentary items

Transfer

Effectiveness Evaluation

Promotion

Separation i.,e Discharge Dismissal Retirement, Resign

Role of Government Pre reform scenario: India discouraged foreign investments to protect domestic industries. Denied access to international capital, technology and markets

Role of Government New Economic Policy : MID 80s: Initiated to change its policies regarding business, licences & permits and also attitudes towards MNCs operating in India. 1991- 1996 : Forumulated its strategy to bring Indian Economy into the mainstream of the Global Economy. The winds of liberalization that swept through the nation with far reaching implications for HRM brought a new era in
a) Technology b) Quality Consciousness c) Competition

Role of Government The reform Process : After 1991 Two fold shift in the Indian Economic Policy.
A) Global Level It sought to integrate the Indian Economy with the world economy by aligning free movement of capital investment both into and from India. (FDI) B) National Level It envisaged a decontrolled business environment where free market forces would be given more freedom to operate and state control will be reduced or eliminated.

Role of Government The reform Process : The Central Government reform package was a mix of policy and administrative changes. 1997 The budget presented by the Finance Minister tried to establish Indias commitment to the reform process by

Reforming Indias Tax structure in line with the structure in developed countries. Significantly reduced tariffs. Rationalized Excise rates. Encouraged investment in infrastructure. Opened up the insurance sector partially.

Role of Government The reform Process : One of the imperative of the environment is to have skilled and educated workforce which can understand and cope with the requirements of IT and Other technologies in the manufacturing and service sector.

Therefore the Government has to make heavy investments in Education

Role of Government Reflections on the reform package: Foreign entrance have distinct advantages in terms of
State of the art technology Research & Development Indian Companies will have to be more careful about Capital Investments Quality Systems

The Labour Issue: Although India has significantly progressed due to the structure adjustment program a lot remains to be achieved.
1) A Free market economy demands a transparent set of laws and quick disposal of litigations. 2) The Government has also being indecisive to the labour policy. 3) Trade Unions and Government are in principle against lay-off and retrenchment even in recessionary condition. 4) The Unions are demanding protection of Labour against capital.

5) With the introduction of new technology and competition the very existence of the jobs has become a major area of concern for the workers. 6) The trend is on engaging workmen on contract or temporary basis.

Therefore, it is necessary for Labour and Capital to co-operate and create a WIN WIN situation.

Implications for HRM:

The Challenges are two fold;

a) b) Meeting Customer Requirements Taking advantage of market opportunities in terms of Quality, Cost and on time Delivery of the product or service. The process of re-adjustment calls for changes in the HR System and its practices. The challenges for HR functions necessitates a cultural in work practices at the enterprise level that would focus on a) Employee Efficiency b) Skill up gradation including multi-skilling c) Induction of new technology d) Re-engineering e) Bench marking Human Resource practices f) Leaner / Flatter organization

Implications for HRM:

g) Employee empowerment h) New dynamism to meet the challenges of competition. I) Achievement of corporate goals and business performance parameters.

Important changes in HR in different companies:

All companies emphasize on the up gradation of managerial and professional skills. Flatter Organizational structure thereby enhancing empowerment, decision making authority, flexibility, leading to improved employee involvement and motivation. Employee participation Emphasis on openness and transparency Changes in recruitment policy Induction of professionals with diverse technical, managerial and academic background. Higher Salaries and more responsibilities for young employees. Performance based rewards for employees A new culture that emphasized an employees role of supporting rather than reporting. Networking of various functions within the organizations with a view to create a responsive, goal oriented and competitive organization. Change in attitude and discipline has to be brought out by continuous process of culture change and team building.

Important changes in HR in different companies:

To-day employees are recognized as a key to build a world class organization. Pro-active organizations have adopted strategic Human Resource Management as a tool to position themselves in the business world by linking the HRM strategy with corporate plans.

Service - Profit Chain

Smart HR Practices
More Productive and Engaged Workforce Loyal Customers

Improved Business Performance...

If you want 1 year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people.
- old Chinese proverb