Why IT Manager should Study HRM ?

• IT is a expert and knowledge based system.• IT Mgr work in flat organization.• They are involved innovation, planning and creation and have to

cope in risk ,time and quick decision making.• They are knowledge worker and require to acquire new skills.• They are to the adjust to dynamic and intellectually energetic

environment.• Their compensation is linked with performance and contribution.

Their assignment changes frequently. • Hence to survive in volatile environment they are to become

professional Manager .• So they have to understand the concept & meaning of Management.

Meaning and definition of Management, HR & HRM

• The term Management comes from Italian verb “Maneggiare”. It is getting things done through people.

• Management is applicable to every sphere of life.• In industry it is used to create wealth.• Factors of Production ; Land ,Labor, Capital &Technology.• Management concerned with handling these four factor.• Of all these factors Labor ; Human Resource is the prime

resource . They are made of people and by the people.• Effectiveness of HR depend on their behavior and performance.• HR is considered not as liability but as asset /capital . It is a

crucial sub-system in the process of Management.

• Management of Human resource is known as HRM / People Management /Employee Management.

• Alfred Sloan has rightly said that “No organization is sounder than its People “.

• Akio Morita the founder of Sony Corp. has observed that the success of Japanese industries are due its people ; HR.

• HRM is also defined as control & creation of a technological & human environment that can support optimal utilization of resources and competencies for achieving goal of the organization.

• HRM is development of people , process of decision making , control over actions of Human being, planning , organizing & controlling of HR and other factors of production .

• HRM is thus acquisition ,development ,motivation and maintenance of Human factor in the organization.

• Often we come across with the term HRD .• It is a process by which Employees are helped to develop their

knowledge ,skill ,attitude ,technique, value ,capacity and capabilities.

• This lead to positive work culture ,better team work and collaboration.

• It equip individual & group to take higher responsibilities with confidence.

• Help personal and professional growth .

• Generate quality out put . Responsibilities of Line Mgr and function of Staff Manager are defined.

• Organization become dynamic and growth oriented by accepting change .HRM is continuous process.

• Cooperation and team effectiveness.• Economic growth for benefits to the society.• To sum up HRM is a model of management with different value

system .• It considers as to how HR fit into and utilized in the organization.• HRM bring about greater commitment and promotion of

synergy . It is concerned with both individual and group to attain goal.

Evolution of HRM

• It can be traced back to ancient India. Reference in ARTHA SASTRA.

• HRM is Known earlier as personnel Management . Before that it is known as Administration Department.

• In India it began with Welfare management(1900).• 1920’s and 1930’s the function was clerical (paternalism).• In 1940’s and 1950’s the function was Administration(Technical

and Legalistic).• In 1960’s it is known as Personnel Management (Managerial).• In 1980’s it is named as HRM .Emphasis is given to human value

and productivity .Focus is on motivation and development.• HRM system was introduced in L&T,BHEL,SBI,TATA ,ONGC & IOC

• HRM movement was initially guided by Taylor’s Principle of Scientific Management and Hawthorne studies of behavior and Motivation .

• Now industries are involved HRM process giving importance to strategic objectives, Org culture, environment ,Job analysis & enrichment , performance management , Training and development, Rewards and employees relation to increase output.

• It establishes better coordination between line and staff function .• In 21st century new HRM strategies like Assessment centre, Re-

engineering , QWL & Balanced score card are adopted by business organizations.

Line and Staff Manager

• In business org. we find two type of Manager ; Line & staff.• Line Mgrs are the personnel and responsible for operation and

production.• Staff Mgrs are responsible for administration , personnel Mgt,

Environment Mgt & HRD.• HRM is widely felt as the responsibility of Staff Mgr.• Conflict between staff and line Mgrs.• For Organizational effectiveness cooperation is required to

manage material ,machine ,man and money.• Line Manager handle the people at the shop floor.• Staff Manager is responsible for acquisition, retention &

development employees .

• Line needs assistance of Staff Mgrs .• Staff Mgrs also require the support of Line Mgrs.• Line Mgrs are responsible to performance , environment ,

management technology, assess performance and to maintain discipline. They advise Staff Manager to create conditions for growth.

• Hence for better performance in the Org. both Line and Staff Mgrs have to support each other.

• Line Mgr should also think themselves as HR Manager.

Relationship , Responsibility ,Authority and Accountability

• Relationship is a process in Org. It is a contact between levels, materials , money and machine.

• It is identifying and grouping the works to be performed, defining responsibility , authority and accountability to enable people work effectively to achieve org goal .

• Relationship in org is either formal or informal .• In formal org the system is well defined with rules ,regulation

and instructions which to be followed.• Informal organization the function is planned and defined .

Social group and clubs are informal org.

• Responsibility is defined as obligation to perform as per assigned duty and direction .It clearly identified and delegated.

• Authority is the power given to give order and exact obedience . It is power to command and give direction .

• Accountability is answerability to one’s performance.• It is opposite phrase of responsibility. Responsibility flows

downward and accountability flows upward.

Functions of HRM

• Function is purpose and to work in correct way for operation.• Functions or operation can be broadly classified into two categories ;

Managerial functions and Operative functions.• Managerial functions involve Planning , Organizing , Directing & controlling.• Planning ; it predetermined course action . It pertaining to determination of

HRM program to achieve org goal .• Planning required for manpower requirement , training and

development ,promotion ,utilization ,talent mgt and welfare measures. In HRM Planning is taking into account the org goal and program .

• Planning is done taking into consideration the environment and technology.• HRM Planning should align with corporate pln.

• Organizing ; It is to carry out planned action.• It is to generate cooperative action to attain org goal .• It related to helping management of work force.• Organizing establishes relationship amongst employees to

collectively contribute.• Directing; after planning and organizing comes the execution . It

is related to activating ,leading and motivating people to work.• Execution is possible through proper command and direction .• HR department have to coordinate with various department,

service, employees and Managers to manage the 4Ms.• Last important Managerial function is Controlling.

• Organizational activities are to performed in planned manner .• To generate conformity proper direction is given. • Controlling involves checking and comparing actual

performance with planned way .• Deviation is identified and rectified.• Controlling adjusts the action and operation with

predetermined plan and programs.• HR audits ,measurement ROI of training ,Survey and analysis

of attrition/ turn over are some of the means of Controlling.

• Operative functions ; These functions are related to specific activities of HRM.• Employment , Development ,Compensation and Human relation are

important Operative Functions• Employment is concerned with securing and recruiting workforce. It covers

Job Analysis , HRP, Recruitment & Selection ,Placement and Mobility .• Job analysis is the process to study & collect information relating to

operation & responsibility leading to preparation of Job description , job requirement , employees specification and job design.

• Human Resource Planning is a process of determination and assuring org to have adequate number of qualified manpower . It required to run the organization and bring about job satisfaction .

• HRP help to estimate present and future requirement of manpower, prepare manpower inventory and to prepare the action plan

• Recruitment is the process of searching prospective employees from job market, indentify the source and stimulate the candidate to apply for employment.

• Selection is pertaining to employing personnel conforming to the skill set and requirement . Process involved advertisement, scrutiny ,test and issuance of appointment letter.

• Placement is to assign the selected candidates the suitable job matching employees specification with job requirement .

• Induction and orientation.• HRD ; to make employees competent with required KSATV.• Performance Management ,Training and Development ,career planning ,

growth , OD and mobility are part of HRD .• Compensation include job evaluation, wage and salary administration, payment

of incentive ,bonus , perks and social security etc .

• Human Relations ; practice of implementation various proactive policies & program to generate team work, collaboration, Trust ,pride ,cohesion , to check strike , boost employees morale & discipline.

• Operative Functions generate Org. effectiveness .• Better work culture , growth & Transformation .• Human resource accounting ; Measurement of cost and value

of Work force.• HR audit• HR research ; evaluation ,survey , changes and introduction

of right policies , programs and measures

Scope and Objectives of HRM• Scope is pertaining to the range of activities.• In the LPG environment every organization have to maintain its

competitive advantage in the market .• Organization are going for collective synergetic functioning and

innovation.• To remain market leader Organization have to have committed

and competent work force , product differentiation and maintain cost leadership .

• Tapping of core competency ,responding to customer’s needs and competitors are required for survival.

• Technological up gradation ,adoption to changing environment, market feed back are now essential factor for growth.

• HRM became strategic HRM to create unique advantage.• HRM is now linked to goal , objectives and corporate plan.• It is play a supportive role to foster innovation and flexibility.• Company’s strategies are now became guiding force forHR

activities.• HR managers have to change their mindset and utilize their

energy to redesign HR practices.• HR manager to gear them to bring change and transformation,

meet customer’s needs and achieve optimum performance.• New performance assessment methodology ,talent mgt and out of

the box thinking are some strategies HR manager are required follow.

• HR manager have accept the role of business associate and to devise Human centric policies .

• Objectives of HRM also underwent sea change.• To create motivated workforce.• To maintain sound organizational structure .• Integrate individual and group and establish better coordination.• Create work place wellness.• Effective utilize the workforce• Devise better compensation package.• Strengthen Training and development activities .• Achieve societal goals .• Develop Trust , cohesion , free , fair and friendly policies .• Create better living and working environment .

• To achieve these objectives HR department must recruit right personnel , make the competent and maintain them.

• It should also establish better human relation in the org.• HR policies should also indicate clear cut authority, responsibility

& accountability. Inconsistencies ,favoritism and discrimination should not practiced by HR department .

• HR policy should be based on sound principles and be regularly reviewed .

Qualities of HR Manager

• Managerial work is undergoing rapid change. • There are extraordinary level of complexity and inter-dependency.• Old tools are losing their magic.• Organizations are becoming leaner and encouraging

entrepreneurship.• Managers are asked to add value regularly and learn new skill.• Workforce is becoming autonomous and transient .• Work environment is made exciting.• Compensation is now linked to contribution .• To manage such environment the HR Manager should have special

qualities .

• Management of HR depends on size, activities and location of organization.• HR manager should not only be qualified but also know the rules of game .• He must have essential skill, be pragmatic , forward looking, resourceful,

mature and analytical abilities.• He should be familiar with human behavior, needs and aspiration.• HR manager should be intelligent with good communication skill and mental

ability to judge right and wrong , just and unjust & merit and demerit.• He should have skill to prepare rules ,regulations and policies and to execute

them effectively.• He should have leadership quality and deep faith human value .• The business environment and market should be properly understood by him.

• He should be practical to resolve human problems.• He should be participative and development oriented .• He should be bold to address organizational challenges.• He should be a strategic planner and clear understanding of global

HRD and diversity management .• The critical factor of success of an organization in the era of LPG is

knowledge management. HR manager should promote the same .• HR manager should take initiatives to promote inter team and intra

team coordination to achieve desired level of performance for stability ,survival & growth .

• HR Manager must be professional and humane to act as eye and ear of the Top Management.