HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT

DefinitionsDefinitions

Human Resources:Human Resources:““The knowledge ,skills ,creative The knowledge ,skills ,creative

abilities ,talents ,and aptitudes of an abilities ,talents ,and aptitudes of an organization’s workforce, as well as the organization’s workforce, as well as the values ,attitudes and beliefs of the individuals values ,attitudes and beliefs of the individuals involved.”involved.”

Human Resource Management:Human Resource Management: A strategic and coherent approach to the A strategic and coherent approach to the

management of an organisation`s most valued management of an organisation`s most valued assets-the people working there who assets-the people working there who individually and collectively contribute to the individually and collectively contribute to the achievement of its objectives.achievement of its objectives.

Nature of HRMNature of HRM

Pervasive ForcePervasive ForceAction orientedAction orientedIndividually orientedIndividually orientedPeople orientedPeople orientedFuture orientedFuture orientedDevelopment orientedDevelopment orientedIntegrating MechanismsIntegrating MechanismsAuxiliary Function Auxiliary Function

Scope of HRMScope of HRM

Personnel aspect:Personnel aspect:

This is concerned with manpower planning, recruitment , This is concerned with manpower planning, recruitment , selection ,placement ,transfer ,promotion, training and selection ,placement ,transfer ,promotion, training and development ,lay off and retrenchment ,remuneration , development ,lay off and retrenchment ,remuneration , incentives etc. incentives etc.

Welfare aspect:Welfare aspect:

It deals with the working conditions and amenities such It deals with the working conditions and amenities such as canteens, crèches ,rest and lunch rooms ,housing , as canteens, crèches ,rest and lunch rooms ,housing , transport ,medical assistance, education ,health etc.transport ,medical assistance, education ,health etc.

Industrial relations aspect:Industrial relations aspect:

This covers union management relations, joint This covers union management relations, joint consultation, collective bargaining, settlement of consultation, collective bargaining, settlement of disputes ,etc.disputes ,etc.

Objectives of HRMObjectives of HRM

To help the organization reach its goals.To help the organization reach its goals. To employ the skills and abilities of the workforce To employ the skills and abilities of the workforce

efficiently.efficiently. To provide the organization with well trained and To provide the organization with well trained and

well motivated employee.well motivated employee. To increase to the fullest the employeeTo increase to the fullest the employee’’s job s job

satisfaction.satisfaction. To develop and maintain a quality of work life.To develop and maintain a quality of work life. To communicate HR policies to all employees.To communicate HR policies to all employees. To be ethically and socially responsive to the To be ethically and socially responsive to the

needs of the society.needs of the society.

Functions of HRMFunctions of HRM

Systems Approach to HRMSystems Approach to HRM

Organizational Objectives and

Goals

HR Planning

Recruitment and Selection

Orientation and Training

Performance Appraisal

Compensation,

Promotion

Competition for

People and Skills

Legal a

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regula

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Case let- 1 Case let- 1 A large industrial group of several companies engaged in manufacturing and marketing of various products has several manufacturing units in various locations in India. The various products of these companies had been enjoying reasonably good market share, some of them being leading brands during the past several decades. However, most of these products have been losing market share for the past two-three years. A few of them in particular are threatening the survival of the group itself. These companies which were established in the 1960s have obsolete technology and a huge surplus, largely unskilled and aging workforce. Moreover, there are no clear-cut personnel policies and even the personnel department is headless for over two years.

Case let 1(Cont.) Case let 1(Cont.)

• Identify the major problem in the above case.

• How far the overhaul of the HR system can bail out the group from the present crisis?

• What role can a dynamic Human Resource Manager play for revitalizing the industrial group?

History of HRMHistory of HRM

Industrial RevolutionIndustrial Revolution Industrial Revolution consisted of the development of Industrial Revolution consisted of the development of

machinery, linking of power to machines and machinery, linking of power to machines and establishment of factory system and mass production.establishment of factory system and mass production.

Characterized by rapid technological change and Characterized by rapid technological change and increased specialization.increased specialization.

Increased mechanization made jobs routine and Increased mechanization made jobs routine and monotonous.monotonous.

Trade Unionism Trade Unionism Workers formed their unions to improve their lot.Workers formed their unions to improve their lot. The underlying philosophy was that through collective The underlying philosophy was that through collective

support management could be forced to redress their support management could be forced to redress their grievances.grievances.

History of HRM (Cont.)History of HRM (Cont.)

Scientific ManagementScientific Management It led to professionalization of management, It led to professionalization of management,

human engineering, etc.human engineering, etc. The focus was more on technology and not on The focus was more on technology and not on

human factor in industry.human factor in industry.

Industrial PsychologyIndustrial Psychology Industrial Psychologists stressed matching Industrial Psychologists stressed matching

employee skills with jobs.employee skills with jobs. Advances took place in Advances took place in

selection ,placement ,testing ,training, etc.selection ,placement ,testing ,training, etc.

History of HRM(Cont.)History of HRM(Cont.)

Human Relations MovementHuman Relations Movement Hawthorne experiments and subsequent research Hawthorne experiments and subsequent research

focused attention on the attitudes and feelings of focused attention on the attitudes and feelings of workers and their influence on productivity. workers and their influence on productivity.

Behavioural SciencesBehavioural Sciences Research in behavioral sciences like Research in behavioral sciences like

anthropology, sociology, psychology, etc. has anthropology, sociology, psychology, etc. has provided subject matter of human resource provided subject matter of human resource management.management.

It led to the development of new techniques of It led to the development of new techniques of motivation ,leadership, job enrichment, employee motivation ,leadership, job enrichment, employee participation.participation.

History of HRM (Cont.)History of HRM (Cont.)

Human Resource Specialist and Employee Human Resource Specialist and Employee WelfareWelfare

With the dawn of welfare era ,scope of human With the dawn of welfare era ,scope of human resource management increased.resource management increased.

It is not only concerned now with recruitment , It is not only concerned now with recruitment , selection and training of employees.selection and training of employees.

It manages employee benefit programmes and It manages employee benefit programmes and industrial relations system in industry.industrial relations system in industry.

Evolution of the Concept of HRMEvolution of the Concept of HRM The Commodity ConceptThe Commodity Concept

Labour was regarded as a commodity to be bought Labour was regarded as a commodity to be bought and sold. Government did little to protect the interest and sold. Government did little to protect the interest of the workers.of the workers.

The Factor/Production ConceptThe Factor/Production Concept

Labour is like any other factor of production ,viz Labour is like any other factor of production ,viz money, materials ,land ,etc. Workers are like machines.money, materials ,land ,etc. Workers are like machines.

The Goodwill ConceptThe Goodwill Concept

Welfare measures like safety ,first aid, lunch room, Welfare measures like safety ,first aid, lunch room, rest room will have a positive impact on workers rest room will have a positive impact on workers productivity.productivity.

The Paternalistic ConceptThe Paternalistic Concept

Evolution of the Concept of Evolution of the Concept of HRM(Cont.) HRM(Cont.)

The Humanitarian ConceptThe Humanitarian Concept

To improve productivity , physical, social ,and To improve productivity , physical, social ,and psychological needs of the workers must be met.psychological needs of the workers must be met.

The Human Resource ConceptThe Human Resource Concept

Employees are the most valuable assets of an Employees are the most valuable assets of an organization.organization.

The Emerging ConceptThe Emerging Concept

Employees should be accepted as partners in the Employees should be accepted as partners in the progress of a company. The focus should be on progress of a company. The focus should be on Human Resource development.Human Resource development.

Growth of HRM in IndiaGrowth of HRM in IndiaPeriod Emphasis Status Roles

1920-30 Welfare Management , Paternalistic Practices

Clerical Welfare administratorPoliceman

1940-60 Expanding the role to cover labour ,Welfare , Industrial Relations

Administrative AppraiserAdvisorMediatorLegal AdvisorFire Fighting

1970-80 Emphasis on human values , aspirations , dignity, usefulness

Developmental Change AgentIntegratorTrainerEducator

Growth of HRM in IndiaGrowth of HRM in India

1990-2000 Incremental productivity gains through human assets

Proactive, growth-oriented

DeveloperCounsellorCoach

Post 2000 Aggressive cost cutting in order to compete in a global environment

Fight for survival Compete with the best and win

Difference between HRM and PMDifference between HRM and PMDimension Personnel

Management Human Resource Management

1. Employment Contract

Careful delineation of written contracts

Aim to go beyond contract

2. Rules Importance of devising clear rules

Can do outlook , impatience with the rule

3. Guide to management action

Procedures Business Need

4. Behaviour referent Norms/customs and practices

Values/mission

5.Managerial Task Monitoring Nurturing

6.Key Relations Labour Management Customer

7.Initiatives Piecemeal Integrated

8.Speed of Decision Slow Fast

9.Management Role Transactional Transformational Leadership

10.Communication Indirect Direct

Difference between HRM and PMDifference between HRM and PMDimensions Personnel

ManagementHuman Resource Management

11.Pay Job Evaluation(Fixed Grades)

Performance Related

12.Job Design Division of labour Team Work

13.Respect for employees

Labour is treated as a tool which is expendable and replaceable

People are treated as assets to be used for the benefit of an organization ,its employees and the society as a whole.

14.Shared interests Interests of the organization are uppermost

Mutuality of Interests

15.Evolution Precedes HRM Latest in the evolution of the subject

16.Organizing Principles

Top-DownCentralized

Bottom-upDecentralized