introduction hrm & pm - the homosapiens -...

Human Resource Management(Unit I) TYBMS( Sem – V)

Introduction HRM & PM

PERSONNEL MANAGEMENT

Definition:

According to Edwin Flippo : “Personnel management is the planning, organizing, directing, and controlling of the procurement development, compensation ,integration, maintenance , and separation of human resources to the end that individual, organizational, and societal objectives are accomplished.

According to George R. Terry : “Personnel Management is the concerned with the obtaining and maintaining of a satisfactory and satisfied work force”

Human Resource Management

1. HRM refers to the activities and functions designed and implemented to maximize organizational as well as employees effectiveness.

2. HRM is that part of management is that part of management concerned with the organization. It seeks to bring together men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group.

3. HRM is that branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development, desirable working relationship between employers and employees and employees, and effective moulding of human resource as contrasted with physical resources.”

Definition:

According to Scott and others, Human resource management is that branch of which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group.

According to National Institute of Personnel Management of India, Human resource management is that part concerned with people at work and with their relationships within the organisation.

It seeks to bring to together men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group.

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Objectives/Purposes of HRM:

(1) To attain maximum individual development of the members of an organisation and also to utilize available human resources fully and effectively.

(2) To mould effectively the human resources

(3) To establish desirable working relationships between employer and the employees and between the groups of employees.

(4) To ensure satisfaction to the workers so that they are freely ready to work.

(5) To establish and maintain a productive and self respecting relationship among all the members of an organisation.

(6) To ensure the availability of a competent and willing workforce to the organisation for its progress and prosperity.

(7) To help the organisation to achieve its goals by providing well trained, effciented and properly motivated employees.

(8) To maintain high morale and good human realtions within the ordanisation for the benefit of employer and employees.

Scope of HRM:-

Diagram:-

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Planning, job design, job analysis, procurement, recruitment, selection, induction, placement, training and development.

Compensation, rewards, benefits, retrial benefits, medical and health care.

Motivation: Motivation aids, bonuses, incentives, profit sharing. Non-monetary benefits are esteem satisfaction, career development, growth decision making, delegation of authority and power, promotion etc.

Employee relation: Grievances handling, participation, collective handling & other aspects of cordial relations conducive to mutual understanding and trust.

Employee evaluation and performance improvement, human resource audit and human resource accounts.

Importance of Human Resource Management

The importance of human resource management can be discussed, after Yodder, Heneman and others, from three standpoints, viz., social, professional and individual enterprise.

a) Social Significance: Proper management of personnel enhances their dignity by satisfying their social needs. This it does by: (i) maintaining a balance between the jobs available and the jobseekers, according to the qualifications and needs; (ii) Providing suitable and most productive employment, which might bring them psychological satisfaction; (iii) making maximum utilization of the resource in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him; (iv) eliminating waste or improper use of human resource, through conservation of their normal energy and health; and (v) by helping people make their own decisions, that are in their interest.

b) Professional Significance: by providing a healthy working environment it promotes team work in the employees. This it does by: (i) maintaining the dignity of employees as a ‘human-being’; (ii) providing maximum opportunities for personal development; (iii) providing healthy relationship between different work groups so that work is effectively performed; (iv) improving the employees’ working skill and capacity; (v) correcting the errors of wrong postings and proper reallocation work.

c) Significance for Individual Enterprise: It can help the organization in accomplishing its goals by; (i) creating right attitude among the employees through effective motivation; (ii) utilizing effectively the available human resource; and (iii) and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualization.

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Functions of HRM

1. Organizational Planning, Development and Task Specialization;

2. Staffing and Development;

3. Training and Development;

4. Compensation, Wage and Salary Administration;

5. Motivation and Incentives;

6. Employee Services and Benefits;

7. Employee Records;

8. Labour or Industrial Relations; and

9. Personnel Research and Personnel Audit.

Classification of functions

(A) The General and Specific Functions:

1. To conduct personnel research,

2. To assist in the programmes of personnel administration,

3. To develop appraisal plans,

4. To launch education and training programmes,

5. To develop a competent work force, and

6. To establish and administer varied personnel services delegated to personnel department.

Under specific functions, the personnel management may involve itself in areas of employment, safety, wage and salary, benefit schemes, community relations and advice and counseling.

(B) Personnel Administration and Industrial Relations Functions:

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Personnel administration functions relate to the function of managing people from lower to upper level of the organization and embraces policy determination as well as of policies by the personnel at the lower levels. Accordingly, “personnel administration” refers to “creating, developing and utilizing a ‘work group’ and involves all types of inter-personnel relationships between superiors and subordinate.”

The ‘Industrial Relations’ functions, on the other, are “not directly related to the function of ‘managing people’, but refer to interactions between the management and the representatives of the unions.” Such functions involve all activities of employer-employee relationship, such as organization of the union member, negotiation of contracts, collective bargaining ,grievance handling, disciplinary actions,arbitaration etc – the purpose of all this being to prevent the conflict between two participants.

The above two functions are interrelated and inter dependent and, hence ,the most common terms used is “Personnel Management/Administration and Industrial relations.”

(C) Functions classified on the basis of capacities:

This classification has been adopted by Saltonstall. According to him “although personnel managements’ function is the ‘staff function’, it also performs three roles. “ viz :

(i) He performs a line function not only because he directs the work in his own department but also in some service functions as recruitment, administration of benefits, the plant canteen and allied activities

(ii) He functions as a coordinator of personnel activities in so far as he controls the functions of other departments. This he does trough regular reporting on labor turnover, absenteeism, accidents and grievances to different levels of management. He also assists/advices the top management in accomplishing personnel objectives, policies and procedures.

(iii) He performs a typical staff function in the form of assisting and advising the line personnel to solve their problems

(D) Functions according to degree of authority:

Dale Henning and French made an interesting observation that “The personnel man is described in the text book and journal is like ‘abominable snow man’ much talked about but seldom seen.” They have classified his function into three categories thus:

a. Area of maximum authority, e.g.: direction of payroll calculation, orientation procedures, transfer rules etc

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b. Area of combined use of authority and persuasion, e.g. : establishment of disciplinary procedures, inter departmental data gathering, determining the numbers of participants in a training programmes etc.

Area of maximum persuasion, e.g.: salary changes under the rules of plant, employment of individuals recommended by the personnel department, in other departments, initiating disciplinary action, etc

Functions explained by the author:

Scott, Clothier and Spriegel divide the functions of the personnel management into thse specific categories, namely:

1. Employment;

2. Promotion, transfer, termination, denominations, and separations;

3. Formulation and direction of training programmes;

4. Job analysis and evaluation;

5. Remuneration and Incentives;

6. Health and Sanitation;

7. Safety and Institutional Protection;

8. Financial aids to employees;

9. Employee service activities;

10. Research, record keeping, reports and follow-up;

11.Employee-employer and community cooperation.

12 Labour union contracts and cooperation.

Prof.Tahereem Bardi


EVOLUTION OF HRM IN INDIA

PERIOD DEVELOPMENT STATUS

OUTLOOK EMPHASIS STATUS

1920s-1930sBEGINNING

PRAGMATISM OF CAPITALISTS

STATUTORY,WELFARE,PATERNALISM CLERICAL

1940s-1960s STUGGLING FOR RECOGNITION

TECHNICAL,LEGALISTIC

INTRODUCTION OF TECHNIQUESADMINISTRATIVE

1970s-1980s

ACHIEVING SOPHISTI-

CATION

PROFESSIONAL,LEGALISTIC,

IMPERSONAL

REGULATORY,CONFORMING,IMPOSITION OF STANDARDS

OF OTHER FUNCTIONSMANAGERIAL

1990sPROMISING PHILOSOPHICAL

HUMAN VALUES,PRODUCTIVITY

THROUGH PEOPLEEXECUTIVE

Explanation :

HRM, a relatively new term, emerged during the 1970s.Many people continue to refer to the discipline by its older, more traditional titles, such as personnel management or personnel administration. The term now days used in industry circles is HRM.

In 1800 BC itself, ‘minimum wage rate plan’ were included in the Babylonian Code of Hammurabi.

Since the 1920s experts of HRM in our country have tried to chronicle the growth of the growth of the subject during this period intervention to protect the interests of workers was felt necessary because of the difficult conditions which followed the First World War, and he emergence of trade unions.

In 1931 The Royal Commission recommended the appointment of labour - welfare officers to deal with selection of workers and to settle their grievances.

In course of time, two professional bodies, the Indian Institute of Personnel Management (IIPM) and the National Institute of Labour Management (NLIM), were set up in pre – independent India.

The aftermath of the Second World War and the country’s political independence witnessed increased awareness and expectations of workers.

During the 1960s, the personnel function began to expand beyond the welfare aspect, with labour welfare, IR and personnel administration integrating into the emerging profession called Personnel Management (PM).

Simultaneously, the massive thrust given to the heavy industry in the context of planned economic development, particularly since the Second Five – Year Plan and the accelerated

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growth of the public sector in the economy resulted in a shift in focus towards professionalization of management.

By the 1970s professional values shifted from a concern for welfare to a focus on efficiency.

In the 1980s, professionals began to talk about new technologies. HRM challenges and HRD. The two bodies, IIPM and NILM, merged in 1980 to form the National Institute of Personnel Management (NIPM).

In the 1990s, the emphasis shifted to human values and productivity through people. Reflecting this trend, the American Society for Personnel Administration (ASPA) was renamed as the Society for Human Resources Management (SHRM).

DIFFERENCE BETWEEN HRM AND PM

HRM PM1) It places emphasis on a continuous

development of people at work.1) It is a routine, maintenance - oriented

administrative function. 2) It has favoured all round

development of employees.2) It has favoured contractual employment

based on written agreement. 3) It has attached more importance to

the abilities of employees. 3) It has attached highest importance to

rules.

4) It works on the basis of piecemeal initiative.

4) It works on the basis of integrated initiative.

5) The speed of decision making is fast. 5) The speed of decision making is slow. 6) It supports performance related

remuneration.6) It supports fixed remuneration.

7) It practices division of work along with the team work.

7) It practices division of work.

8) It uses latest techniques of training & development with audio-visual facilities.

8) It uses outdated methods of training & development.

9) It decides behavior norms based on individual values & mission of business.

9) It decides behavior norms based on customs & practices.

10) HRM is a proactive function. 10) PM is a reactive function.11) HRM deals with managing workforce

one of the primary resources that contribute to the success of the organization.

11) PM deals with payroll, employment law and handling related tasks.

12) HRM is the integral part of overall company function.

12) PM is considered to a independent function.

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Some more differences between HRM and PM:-

1) PM is more administrative in nature dealing with payroll, complying with employment law and related task.HRM on the other hand is responsible for managing a work force as one of the primary resources that contributes the success of an organization.

2) HRM is described as much as much broader in scope than PM.HRM is to set to incorporate and develop PM task. Primary goal of HRM is to enable employees to work to a maximum level of efficiency.

3) PM is often considered as in independent function of am organisation.HRM on other hand tends to be an integral part of overall company function.

4) PM is typically the sole responsibility of an organization’s personnel dept whereas HRM involves organization’s managers and achieve goal by managers of various departments and develop the skills to handle personal related tasks.

5) According to P.C.TRIPARTY (HRM.HRD) :-

a) PM is traditional, routine, maintenance oriented, administrative functions whereas HRM is continuous ongoing development function that aim at improving human resources.

6) Pm is dependent function with independence of functions whereas HRM follows systems thinking approach.

7) PM is responding to demand as and when they arise HRM is proactive, planning and advancing continuously.

8) PM is an exclusive responsibility of the Personnel dept.HRM is a concern for all managers in the organization and aims at developing capabilities of all managers to carry out the personnel functions.

9) The scope of PM is relatively narrow with a flow on administrating people. The scope of HRM views the organization as a whole and lays emphasis building a dynamic culture.

10) In PM improve satisfaction is considered to be the cause of improved performance. In HRM. Performance is the cause and satisfaction is the result.

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NEW TRENDS IN HRM

Human resource management is a process of bringing people and organizations together so

that the goals of each other are met.

The role of HR manager is shifting from that of a protector and screener to the role of a

planner and change agent.

Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs

are decreasing. This calls for future skill mapping through proper HRM initiatives.

Indian organizations are also witnessing a change in systems, management cultures and

philosophy due to the global alignment of Indian organizations.

Some of the recent trends that are being observed are as follows:

The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training.

Organizations have introduced six- sigma practices. Six- sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps in creating defect free product or services at minimum cost.

Human resource outsourcing is a new accession that makes a traditional HR department redundant in an organization.

With the increase of global job mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to work out a retention strategy for the existing skilled manpower.

NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country.

Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse.

Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. Managers need to be protected from career development risks, re-entry problems and culture shock.

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To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information.

Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.

In many European countries - Germany, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized.

Role of the HR Manager

oHR Manager plays a variety of roles.

o Earlier, the main role of the manager was to procure & maintain a commited workforce.

oBut with the passage of time, increasingly critical nature of problems and challenges in the effective utilization of human beings has elevated the status of HR Manager.

Different roles played by the HR Manager are:

1) Counsellor’s Role:-

HR Manager acts a counselor for the employees facing problems related with health, work, colleagues, family, supervisors, financial, mental, physical, children education, marriage, etc.

Employees discuss their problems with the HR Manager and he offers suitable solutions to solve their problems.

2) Advisory Role:-

HR Manager advises the management regarding Human Resources Planning, recruitment, selection, training and development, appraisal, compensation, integration, separation, etc.

HR Manager advises management in case of industrial disputes, etc.

On the other hand, he also provides assistance to the workers by conveying their problems to the management.

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3) Mediator Role:- In case of some conflicts and disputes, HR Manager plays the role of a peacemaker between the management and the employees.

4) Conscience Role:- This role is that of a humanitarian who advises management of its ethical obligations to its employees.

5) Liaison Role:- Generally, HR Manager acts as a spokesperson for or representative of the organization.

6) Change Agent:- He acts as a catalyst in introducing new changes in the organization.

7) Problem Solver:- Problems related with HR in any part of the organization are tackled by the HR Managers.

8) Welfare Role:- As per The Factories Act, 1948, where 500 or more workers are employed, one welfare officer should be appointed. Otherwise, HR Manager acts as a welfare officer. He is concerned about facilities like crèche, canteen, shelter, lunch and restrooms, etc.

9) Legal Role:- HR Manager plays a vital fire-fighting role during: grievance handling procedure, settlement of industrial disputes, collective bargaining, handling disciplinary action, joint consultation, etc.

Challenges Faced by HR Managers:-

1. Technological Developments:-

As a result of technological advances made in almost all fields, jobs have become more intellectual.

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Modernization ends with problems like retrenchment, lay-offs, unemployment, dislocation of workers, etc.

Thus, HR Manager has to make proper assessment of manpower needs, retraining, skills upgradation, etc.

2. Changes in the political & legal environment:- In order to meet the changes in political & legal environment, awareness of legislation at state and central level becomes necessary for proper utilization of human resources.

3. Globalization:-

As the industrial world is becoming globalised and informationalised, HR Managers are expected to play more competitive roles.

They should be aware about employees’ and company’s needs in foreign markets, designing suitable compensation packages, planning about spouse’s job and children’s education in other country, if needed making arrangements of training in foreign country’s local language, etc.

4. Socio – cultural factors:-

Organizations do not operate in isolation.Thus, organizations have to be alert always before taking any decision.

The HR Manager should evaluate beforehand the impact of any business action upon the society so that the people’s beliefs, morals, customs, ethics, values, etc. are not hurt.

5. Changing mix of the workforce:-

Another challenge to HR Manager is increasing workforce diversity.

This includes : more young and highly educated people, more female employees, increasing levels of married female workers, etc.

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Prohibition of discrimination and the need of positive actions for redressing imbalances in workforce have made job for HR Managers more challenging.

6. Trade Unions

Trade Unions refer to any combination of workers for a common cause.

Trade Unions act as a challenging force for HR Manager in decisions like signing of agreements, recruitment, selection, training and development programs, retrenchment, etc.

7. Management of Human Resources

The new workforce is educated, talented, well-qualified and conscious than their predecessors.

So, HR Manager has to be conscious and tough while leading and motivating, winning employees’ commitment, etc.

Personal manual (policies & principal)

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According to flippo ‘policy’ is a man made rule of Pre-determined course of action that is established to guide the performance of work toward the organization objectives. It is a type of standing plan that serve to guide subordinates in the execution of their tasks.

According to Yoder obserbes, a policy is a pre-determined, selected course established as a guide towards accepted goals and objectives. In general, policies constitute guides to action. They offer a road map for managers in the organization.

In general HR polices should respect human dignity and personal integrity , ensure fair treatment for all, irrespective of caste, creed, or color, and offer reasonable social and economic security to employees.

Policies do not include detailed statements describing specifically how the policy is to be implemented.

Policies are implemented by procedures the basic objectives of policy is to ensure that work and accomplishment are properly recognized, that safe and healthy conditions of work are established, that common interests of personnel are considered and employee participation is encouraged, employees motivation and their development are properly look after, and that the role of trade unions are recognized and their functions and responsibilities are respected.

The policy is rules of conduct; therefore it is based on the following principles:

1. Place right person in the right place at the right time.2. Train every employee for current and future jobs.3. Establish organization as whole a co-ordination team.4. Ensure proper and adequate supply of tools and equipments.5. Create better working conditions 6. Give security with opportunity, incentive, and recognition.7. Look forward, plan ahead for more and better things.8. Ensure the principle of equity and natural justice.

Characteristics of a sound personnel policy :

During the course of formulation of personnel policy, the management should consider the following points :1. It should be in written form as well as computerized form.2. It should be clear, positive and early understood by each and every employee of the

organization3. It should be in the line of corporation objectives.

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4. It should be generally known to all interested parties5. It should be reasonably stable but not rigid.6. It should be fair and equitable to internal as well as external groups.7. It should be consistent with public policy.8. It should support management as well as establish cooperation of employees at the shop

floor level and in the office.9. It should be progressive and enlightened.10. It should be applicable uniformly through out the organization.11. trade unions should be consulted before formulating a policy12. It should be periodically evaluated and revised in tune with changing times.

Method of policy Formulation:

Policy generation is a very complex process. It is time consuming and also a costly affair because is not job for any ivory-lower specialist. The expert person who is involve in preparing a draft of it must be thoroughly familiar with the subject from personal experience and in-volvement. The following steps are involved in this process:

1. Identification of area.2. Collection of appropriate data.3. Formulation of draft or policy.4. Communication to all those employees who may be expected to operate under it.5. Periodic review, evaluation and revision of the policies.6. Reformulating the policies.

Advantages of personnel policies :

There various advantages of having personnel policies :

1. It promote consistency and fairness, and avoid confusion and misunderstanding among employees in the organization.

2. It helps the managers in delegating the power and authority of lower staff.3. It ensure uniformity in application. 4. It helps in achieving co-ordination between management and workers.5. It acts as better control over the line managers and their employees.6. It can spend speed up decision making process.7. It increases the confidence and reduces chance of misinterpretation, misrepresentation

and friction.8. It avoid repeat analysis of the same type and of problems.

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