INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

What is Human Resource Management? Human resource (HR) management refers to the practices and policies one needs to carry out to deal with the personnel aspects of the management jobHuman resource management (HRM) is the effective management of people at workThe goal: make workers more satisfied and productiveWhen an organization is concerned about people, its total philosophy, culture, and orientation reflect itEvery manager must be concerned with people, whether or not there is a human resources department

Scope of HRM

Importance of HRMattract and retain talenttrain people for challenging rolesdevelop skills and competenciespromote team spiritdevelop loyalty and commitmentincrease productivity and profitsimprove job satisfactionenhance standard of livinggenerate employment opportunitiesGood HR Practices help

Image and Quality of HR/Personnel Manager Fairness and firmness

Tact and resourcefulness

Sympathy and consideration

Knowledge of labor and other terms

Broad social outlook

Others and Academic qualifications

Functions of HRM Planning Organizing Directing ControllingOperative FunctionsP/HRMManagerial functions:ProcurementJob AnalysisHR planningRecruitmentSelectionPlacementInductionInternal mobilityDevelopment:TrainingExecutive developmentCareer planningSuccession planningHuman resources development strategiesMotivation and Compensation:Job design Work schedulingMotivationJob evaluationPerformance and potential appraisalCompensation administrationIncentives benefits and servicesMaintenance:HealthSafetyWelfareSocial securityIntegration:GrievancesDisciplineTeams and teamworkCollective bargaining ParticipationEmpowermentTrade unionsEmployers associationsIndustrial relationsEmerging Issues:Personnel recordsPersonnel auditPersonnel researchHR accountingHRISJob stressMentoringInternational HRM

HRM as a central subsystem in an organizationProduct SubsystemHR Subsystem Procurement Training Compensation Appraisal RewardsMarketing SubsystemFinance SubsystemTechnical Subsystem

A Brief History of HRMHRM can be traced to England, where craftspeople organized guildsThey used unity to improve working conditionsThe Industrial Revolution in the 18th century laid the basis for a new, complex industrial societyChanging work conditions, social patterns, and labor created a gap between workers and ownersDuring the world wars era, scientific management, welfare work, and industrial psychology merged

A Brief History of HRMFrederick W. Taylor, the father of scientific management, summarized scientific management as:ScienceHarmonyCooperationMaximum outputIndustrial psychology, initiated in 1913, focused on:The workerIndividual differencesThe maximum well being of the worker

A Brief History of HRMPersonnel departments were created to deal with:Drastic changes in technologyOrganizational growthThe rise of unionsGovernment intervention concerning working peopleAround the 1920s, more organizations noticed and acted on employee-management conflict

A Brief History of HRMThe Hawthorne studies (1924 to 1933):Were to determine the effects of illumination on workers and their outputRather, it pointed out the importance of social interaction on output and satisfactionUntil the 1960s, the personnel function was concerned only with blue-collar employeesFile clerk, house-keeper, social worker, firefighter, and union trouble defuser

Evolution of the Personnel FunctionConcept

What is it all about?

The Commodity concept

Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production conceptLabour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.The Goodwill concept

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

The Paternalistic concept/ Paternalism

Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

Cont

The Humanitarian concept

To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.The Emerging concept

Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development. Evolution of the Personnel Function

Personnel Function in India; Changing Scenario PeriodEmphasis Status Roles

1920 30Welfare managementClericalWelfare Paternalistic practicesadministrator

1990s Incremental productivityProactive, Developer onwards gains through humangrowth-orientedCounsellor assets Coach Mentor Problem solver1940 60Expanding the role to coverAdministrativeAppraiser Labour, Welfare, IndustrialAdvisor Relations and PersonnelMediator AdministrationLegal advisor Fire fighting

1970 80Efficiency, effectivenessDevelopmental Change agent dimensions addedIntegrator Emphasis on humanTrainer values, aspirations, Educator

Objectives of HRM

Objectives of the HRM FunctionHRM contributions to organizational effectiveness:Helping the organization reach its goals Employing workforce skills and abilities efficiently Increasing job satisfaction, self-actualization, and quality of work life Communicating HRM policies to all employeesMaintaining ethical policies and socially responsible behavior Managing change to the mutual advantage of individuals, groups, the enterprise, and the public

Objectives of the HRM FunctionIncreasing employees job satisfaction and self-actualizationEmployees must feel that the job is right for their abilities and that they are being treated equitably Satisfied employees are not automatically more productive However, unsatisfied employees tend to be absent and quit more often and produce lower-quality work Both satisfied and dissatisfied employees can perform equally in quantitative terms

Objectives of the HRM FunctionQuality of work life (QWL) is a general concept that refers to several aspects of the job, including:Management and supervisory style Freedom and autonomy to make decisions on the job Satisfactory physical surroundings Job safetySatisfactory working hoursMeaningful tasksThe job and work environment should be structured to meet as many workers needs as possible

Objectives of the HRM FunctionCommunicating HRM policies to all employees:HRM policies, programs, and procedures must be communicated fully and effectively They must be represented to outsidersTop-level managers must understand what HRM can offer

Objectives of the HRM FunctionMaintaining ethical policies and socially responsible behavior:HRM managers must show by example that HRM activities are fair, truthful, and honorablePeople must not be discriminated againstTheir basic rights must be protected These principles should apply to all activities in the HRM area

Objectives of the HRM FunctionManaging increased urgency and faster cycle times:Firms are placing a growing emphasis on:Increasing customer serviceDeveloping new products and servicesTraining and educating technicians, managers, and decision makersShorter cycle times mean less time to:Train, educate, and assign managersRecruit and select talented peopleImprove the firms imageLearning provides a framework for decreasing cycle time

HRMs Place in ManagementThe HR department must be a proactive, integral part of management and strategic planning Ascertain specific organizational needs for the use of its competence Evaluate the use and satisfaction among other departments Educate management and employees about the availability and use of HRM services HRM strategic plans must build on the firm's strengths