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Human Resource ManagementHuman Resource Management

Meaning of Human ResourcesMeaning of Human Resources

According to Leon C.Magginson, the term humanAccording to Leon C.Magginson, the term human

resources can be thought of as, the totalresources can be thought of as, the totalknowledge, skills, creative abilities, talents andknowledge, skills, creative abilities, talents and

aptitudes of an organisations workforce, as wellaptitudes of an organisations workforce, as well

as the value, attitudes and beliefs of theas the value, attitudes and beliefs of theindividuals involved.individuals involved.

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Human Resource ManagementHuman Resource Management

Meaning of Human ResourcesMeaning of Human ResourcesIndian Institute of Personnel Management:Indian Institute of Personnel Management:

Personnel Management is a responsibilityPersonnel Management is a responsibility

of all those who manage peopleof all those who manage people

As well as being aAs well as being a

Description of the work of those who are employed as specialists.Description of the work of those who are employed as specialists.

It is that part of managementIt is that part of management

Which is concerned with people at workWhich is concerned with people at workAnd with their relationship within an enterprise.And with their relationship within an enterprise.

It applies not only to industry and commerce but to all the fieldsIt applies not only to industry and commerce but to all the fieldsof employment.of employment.

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Personnel Vs Human ResourcesPersonnel Vs Human Resources

Personnel Management Human Resource Management1. Personnel means persons employed. 1. Human Resource management is thePersonnel management is the management management of employees skills, of people

people employed. Knowledge, abilities, talents, aptitudes,

creative abilities etc.

2.Employee in personnel management is mostly 2. Employee in Human Resource managementtreated as an economic man as his is treated not only as economic man but also

services are exchanged for salary/wages. as social and psychological man. Thus, the

complete man is viewed under this

approach.

3. Employee is viewed as a commodity or tool 3. Employee are treated as a resource.Or equipment which can be purchased and used.

4. Employees are treated as cost centre and 4. Employees are treated as profit centre and

therefore management controls the cost of therefore, invests capital for human resource

labour. development and future utility.

5. Employees are used mostly for organisational 5. Employees are used for the multiple mutual

benefit. Benefit of the or anisation em lo ees and

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Functions of HRMHuman Resources management consists of several inter-related

functions. These functions are common to all organizations.

Basically the function of HRM may be divided into two

categories.

Managerial functions and

Operating functions

Managerial functionsPlanning

Organizing

Directing

Controlling

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Operative Functions

The operative functions of Human Resources

management can be discussed in the following:

1. Procurement Function

Job Analysis

Human Resource Planning

RecruitmentSelections

Placement

Induction or Orientation

2.Development Function

Training

Executive Development

Performance and Potential Appraisal

Career Planning and Development

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3. Compensation Function:

Job Evaluation

Wage and Salary administration

Bonus4. Integration Function

Collective bargaining

Conflict resolution

Employee counselingProviding Job satisfaction

Workers participation in management

Improving quality of work life

Developing sound human relations etc.

5. Maintenance Function

It is mainly concerned with promoting and protecting the physical and mental

health of employees such as medical aids, educational facilities, conveyance

facilities, provident fund, pension, gratuity, group insurance etc.

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Nature of HRM

Pervasive force

Action Oriented

Individually Oriented

People Oriented

Future Oriented

Development Oriented

Integrating Mechanism

Comprehensive function

Auxiliary service

Inter disciplinary function

Continuous function

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Objectives of HRMObjectives of HRM

To help the organisation reach its goals

To employ the skills and abilities of the workforce efficiently

To provide the organisation with well trained and well

motivated employees

To increase to the fullest the employees job satisfaction and

self actualisation

To develop and maintain a quality of work life

To communicate HR policies to all employees

To be ethically and socially responsive to the needs of society

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Objectives of HRMObjectives of HRM

Societal

To be ethically and socially responsible to the

needs and challenges of society while

minimising the negative impact of such demandsupon the organisation.

Organisational

To recognise the role of HRM in bringing about

organisational effectiveness.

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Objectives of HRMObjectives of HRM

Functional

To maintain the departments contribution at a

level appropriate to the organisations needs.

Personal

To assist employees in achieving their personal

goals, at least insofar as these goals enhance the

individuals contribution to the organisation.

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Scope of HRMScope of HRMThe scope of HRM is very wide. The Indian Institute ofThe scope of HRM is very wide. The Indian Institute of

Personnel management has specified the scope of HRM thus:Personnel management has specified the scope of HRM thus:

Personnel aspect:Personnel aspect:

MManpower planninganpower planning

RecruitmentRecruitment

Selection PlacementSelection Placement

Transfer PromotionTransfer Promotion

Training and developmentTraining and developmentRetrenchmentRetrenchment

RemunerationRemuneration

IncentivesIncentives

Productivit etc.Productivit etc.

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Scope of HRMScope of HRM

Welfare aspect:Welfare aspect:

CanteensCanteens

CrchesCrches

Rest and lunch roomsRest and lunch rooms

HousingHousing

TransportTransport

Medical assistanceMedical assistance

EducationEducation

Health and safetyHealth and safety

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Scope of HRMScope of HRM

Industrial relation aspect:Industrial relation aspect:

UUnion-management relationsnion-management relations

Joint consultationJoint consultation

Collective bargainingCollective bargaining

Grievances and Disciplinary proceduresGrievances and Disciplinary procedures

Settlement of dispute etc.Settlement of dispute etc.

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Role of HR Manager in anRole of HR Manager in an

OrganisationOrganisation

Ideally, the HR manager should concentrate on drawing managerialattention to human problems. Just as finance assesses costs, marketing

emphasises customers, personnel is people centred. Success of a HR

manager depends on the degree of contribution to solve management

problems in dealing with human resources in the organisation.

Some of the important roles of HR manager in an organisation in addition

to the managerial & operative functions are discussed below.

policy initiation Advisory role

Linking pin role Representative role

Decision making role Mediator role

Leadership role Welfare role

Research role

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Role of HR Manager in anRole of HR Manager in an

OrganisationOrganisation

Ideally, the HR manager should concentrate on drawing managerialattention to human problems. Just as finance assesses costs, marketing

emphasizes customers, personnel is people centred. Success of a HR

manager depends on the degree of contribution to solve management

problems in dealing with human resources in the organisation.

Some of the important roles of HR manager in an organisation in addition

to the managerial & operative functions are discussed below.

policy initiation Advisory role

Linking pin role Representative role

Decision making role Mediator role

Leadership role Welfare role

Research role

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History of HRMHistory of HRM

The field of HRM as it currently exists, represents aThe field of HRM as it currently exists, represents a

crystallization of a variety of historical factors.crystallization of a variety of historical factors.

1.1. The Industrial revolution:The Industrial revolution:

During this period machines were bought in; technologyDuring this period machines were bought in; technology

made rapid progress; jobs were more fragmented where themade rapid progress; jobs were more fragmented where the

worker did only a small portion of the total job; andworker did only a small portion of the total job; and

specialisation increased speed and efficiency but leftspecialisation increased speed and efficiency but left

workers with dull, boring and monotonous jobs. Employersworkers with dull, boring and monotonous jobs. Employerswere keen to meet production targets rather than satisfywere keen to meet production targets rather than satisfy

workers demands. Government did very little to protect theworkers demands. Government did very little to protect the

interests of workers.interests of workers.

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2. Scientific management2. Scientific management

To improve efficiency and speed F W Taylor advocated scientificmanagement. Scientific management emphasizes that managers and

industrial engineers should develop the best way to perform each job,

people should be trained to perform each job in the best way and

management and workers should cooperate so that the job is performedin the desired manner.

Frederick W.Taylor is known as the Father of Scientific

management

Taylor stressed the importance of employee welfare as well asproduction efficiency. To boost up productivity, wage incentives based

on performance (differential price rate system) were introduced. The

emphasis was on maximum output with minimum effort through

elimination of waste and inefficiency at the shop floor- level.

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3. Trade unionism:3. Trade unionism:

Workers joined hands to protect against the exploitative

tendencies of employers and the prohibitive, unfair labour

practices through unions. Unions tried to improve the lot of

workers through collective bargaining, resolving the grievances

of workers relating to working conditions, pay and benefits,

disciplinary actions etc.

4. Human relations movement:

The famous Hawthorne experiments conducted by Elton Mayo

and his Harvard colleagues during 1930s and 1940sdemonstrated that employee productivity was affected not only

by the way the job was designed and the manner in which

employees were rewarded economically; but by certain social

and psychological factors as well.

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The human relation movement led to the wide scale

implementation of behavioral science techniques in industry for

the first time which included supervisory training programmes,emphasizing support and concern for workers , programmes to

strengthen the bonds between labour and management and

counseling programmes whereby employees were encouraged

to discuss both work and personal problems with trainedcounsellors. The movement was also influenced by the growing

strength of unions during late 1930s and 1940s. The rise of

unionism during this period was due to the passage of Wagner

act which gave workers the legal right to bargain collectivelywith employers over matters concerning, wages, job security,

benefits and many other conditions of work.

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5. Human resource approach5. Human resource approach

However, during early 60s the pet milk theory, (advocating that

happy workers are productive workers or happy cows give moremilk) of human relationists had been largely rejected. Recognising

the fact that workers are unique in their way - having individual

needs. It was recognised that each employee is a unique and highly

complex individual with different wants, needs and values. Whatmotivates one employee may not motivate another and being happy

or feeling good may have little or no impact on the productivity of

certain employees. Slowly but steadily, the trend toward treating

employees as resource or assets emerged.The Human Resource approach assumes that the job or the task

itself is the primary source of satisfaction and motivation to

employee. The emphasis in the human resource approach is on

individual involvement in the decisions made in the organisation.

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In addition, this approach emphasises the following things.People do not inherently dislike work and if they are helped establish

objectives they want to achieve them.

Most people can exercise a great deal of more self direction, self control

and creativity than are required in their current jobs.

The mangers basic job is to use the untapped human potential in the

service of the organisation.

The manger should create a healthy environment wherein all

subordinates can contribute to the best of their capacities. The

environment should provide a healthy, safe, comfortable and convenient

place to work.

The manager should provide for self direction by the subordinates and

they must be encouraged to participate fully in all important matters.

Expanding subordinates influence, self direction and self control will

lead to direct improvements in operating efficiency.

Work satisfaction may improve as a by-product of subordinateski f ll f th i t ti l