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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