Human Resource Mgt

Chap-1Human Resource Management

Introduction & Concept:-

It is not very easy to define precisely Management, but it is essential to know what Management means before we study Human Resource Management.

Management has been defined by Mary Parker Follett as, "the art of getting things done through people." But Management is much more than what is said in this definition. It is further defined as “...... Those fields of human behavior in which Managers plan, organize, staff, direct and control human, physical and financial resources in an organized effort, in order to achieve desired individual and group objectives with optimum efficiency and effectiveness." [Quoted in Chandan J.S., Fundamentals of Modern Management]

It is therefore clear that management is charged with the responsibility of achieving planned individual and group goals by a balanced utilization of physical and financial resources through the efforts of human resources. Human resource, therefore, becomes a crucial subsystem in the process of Management. But most of us are not clear what exactly Human Resource means.

According to Leon C. Megginson, Human Resources means "the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s workforce, as well as the value, attitudes and beliefs of the individuals involved." Therefore, Management can procure and use the skill, knowledge and ability, through the development of skills, using them again and again. Therefore, it is a long term perspective whereas personnel are a short term perspective.Nature of HRM:-

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Human Resource Mgt

1. HRM involves management functions like planning, organizing, directing and controlling

2. It involves procurement, development, maintenance of human resource

3. It helps to achieve individual, organizational and social objectives

4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology.

5. It involves team spirit and team work.

Functions of Human Resources Management: .

There are two broad functions of H R M. They are 1. Managerial Functions 2. Operational Functions

1) Managerial Functions:Managerial functions of Personnel management include

planning, organizing, directing, co-ordinating and controlling.

Planning: It is the charting out of programmes and changes in advance in the achievement of organizational goals. Hence, it involves planning of human resources requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviors of their employees and their impact on the organization.

Organising:- In the words of J.C. Massie, an organization is a "structure and process by which co-operative groups of human beings allocated its tasks among its members, identifies relationships and integrates its

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activities towards a common objective." Given the complex relationships that exist between specialized departments and the general departments, many top managers seek the advice of personnel manager. In this manner, the organization establishes relationships among the employees so that they can together contribute to the achievement of organizational goals.

Directing: After planning and organizing comes the execution of the plan. The willing and effective co-operation of employees towards the achievement of organization’s goal has to be brought about by proper direction. Identifying and utilizing maximum potentials of people is possible through motivation and command. Direction, therefore, is an important managerial function in ensuring optimum employee contribution.

Co-ordinating: It is the task of matrixing various employees’ efforts to ensure successful goal achievement. The Personnel manager co-ordinates various managers at different levels as far as the personnel functions are concerned.

Controlling: After planning, organizing, directing and co-ordinating, the various activities, the performance is to be verified in order to know, at various points of time, whether the activities are performed as per plans and directions. It involves checking, verifying and comparing actual with the plans, identification of deviations if any and

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Human Resource Mgt

correcting the deviations. Auditing training programmes, analysing labour turnover, overseeing morale surveys, conducting exit interviews are some of the controlling functions of personnel management.

2) Operative Functions:The operative functions of H R M relate to employment,

development, compensation and relations. All these are interacted by managerial functions. Also, they are to be performed in conjunction with management functions.

PERSONNEL VS HUMAN RESOURCES MANAGEMENT

Personnel Management

Human Resources Management

1. Personnel means persons employed. Personnel management is the management of people,

1. Human Resources management is the management of employees’ knowledge, abilities, talents,

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skills employed. aptitudes, creative abilities etc.

2. Employee in personnel management is mostly treated as an economic man as his services are exchanged for wage / salary.

2. Employee in human resource management is treated not only as economic man but also as social and psychological man. Thus, the complete man is viewed under this approach.

3. Employee is viewed as a commodity or tool or equipment which can be purchased.

3. Employee is treated as a resource.

4. Employees are treated as cost centres and therefore management controls the cost of labour.

4. Employees are treated as profit centres and therefore, invests capital for human resource development and future utility.

5. Employees are used mostly for the organisational benefit.

5. Employees are used for the multiple benefits of the organisation, employees and their family members.

6. Personnel function is treated as only an Auxiliary function.

6. Human resources management is a Strategic Management function.

Strategic Human Resources Planning: The above description of HR planning takes the organizational plans and goals as given, and then commences the planning processes needed for carrying out those plans. In most organizations, HR planning (if it is undertaken at all) follows this traditional approach and still is called manpower planning. However, more recent concepts of strategic human resource planning emphasise a proactive role for HR function in formulating strategic organisational plans, as well as providing integrated programmes to ensure effective implementation of those plans.3

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Many organisations that take on some human resource forecasting do not have a system for strategic human resource planning. There is some evidence that a firm's environment may affect the degree to which HR planning activities are integrated with strategic planning. Organisations that exists in unstable environments, face stiff competition, and have experienced staffing difficulties are more likely to involve HR planners in corporate strategic planning process. Involvement also seems to be greater when the top HR person reports directly to the CEO, has past line experience to provide credibility and a broad view of the business, and is backed up by an excellent human resource information system (HRIS) that produces the type of information needed in the strategic planning process.

Evolution and Development of Human Resources Management:-

Human Resources Management involves all management decisions and practices that directly affect or influence people or human resources, who work for the organisation. In recent years, increased attention has been devoted to how organisations manage human resources. This increased attention comes from the realisation that an organisation's employees enable an organisation to achieve its goals, and the management of these human resources is critical to the success of the organisation.

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The term "world class" or ranking among the foremost in the world, is used frequently as the aspirations of organisations. In the context of HRM, world class is indicated by an HR group with a shared vision as to its constituents and how best to serve them. Excellence in HRM is characterised by a service orientation and a willingness to be in partnership with constituents. Specific earmarks of world class HRM include:

Having an HR vision oriented to strategic needs of the organisation.

Having a philosophy and values consistent with those of the organisations.

Being seen as a business unit within the firm and operating the same way as other units - having customers and quality management etc.

Being organised in a way that brings maximum service to the customer and maximum motivation to the HR staff.

Having the best HR products available for the customers. championing HR programmes that fulfill the agenda of HR

group and the customer. Having an HR vision that is actively shared by the entire

group. being a proactive and not a reactive group. being involved in key business issue discussions. being seen as successfully treating a great place to work.

The number of activities involved in HRM is potentially large, depending on the size of the organization and its needs.

The utilization of people, in a rudimentary form, can be traced to ancient times. Efforts to use talents, even though informal in nature, were undertaken whenever people came together in a community. The change has been that during the course of the past century efforts to best manage humus resources have become more formal and specialized.

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The history of HRM can be characterized as moving through our broad phases:

the craft system scientific management the human relations approach the current organizational science - human-resource

approach.

The Craft System:From the earliest times in Egypt and Babylon, training in craft skills was organized to maintain an adequate supply of craft workers. By 13"' century craft training became popular in Western Europe. Craft guilds supervised quality and methods of production and regulated conditions of employment for each occupation. The craft guilds were controlled by master crafts worker, and the recruit entered after a period of training as an apprentice. The crafts system was best suited to domestic industry, the master operated in his own premises with his assistants residing and working in the same house

Major activities of HRM carried out in any of the Organization are-

1. Recruitment Management2. Workforce Planning3. Induction Management4. Training Management5. Performance Management

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6. Compensation & Benefits7. Attendance Management8 .Leave Management9. Benefits Management10. Overtime Management11. Pay slip Distribution12.Timesheet Management13.Employee Information/ Skill Management14.Grievance Redressal15.Employee Survey16.Exit Interviews & Process17.Health & Safety

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