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What is Human Resource Management?

Human resource (HR) management

refers to the practices and policies one needs to carryout to deal with the personnel aspects of the

management job

Humanresource management (HRM) is the

effective management of people at work

The goal: make workers more satisfied and

productive

When an organization is concerned about people, its

total philosophy, culture, and orientation reflect it

Every manager must be concerned with people,

whether or not there is a human resources department

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Human Resource Management (HRM) is amanagement function that helps managersrecruits, select, train and develop members foran organization. Obviously, HRM is concerned

with the peoplesdimension in organization.Human Resource Management (HRM) is the

function within an organization that focuses onrecruitment of, management of, and providing

direction for the people who work in theorganization. HRM can also be performed byline managers.

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HRM is the organizational function that deals

with issues related to people such as

compensation, hiring, performance

management, organization development,

safety, wellness, benefits, employee

motivation, communication, administration,

and training.

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According to Flippo,Human Resource/ personalManagement is the planning, organizing, directingand controlling of the procurement, development,compensation, intergration, maintenance and

separation of human resources to the end thatindividual, organizational and social objectives areaccomplished,

According to E.F.L. Breach, PersonnelManagement is the part of management processwhich is primarily concerned with the humanconstituents of an organization.:

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In the words of Richard Calhoon,Personnelmanagement involves the task of handing thehuman problems of an organization and isdevoted to acquiring, developing, utilizing and

maintaining an efficient work-force.

According to R.G. Gokhle, PersonnelManagement is the specialized intelligent

handing of the human factor by a separatedepartment which could devote its full time forresearch along the line of improvement isindustrial relations.

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Scope of HRM

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To develop a thorough knowledge of corporate culture,plans and policies.

To act as an internal change agent and consultant.

To initiate change and act as an expert and facilitator.

To actively involve himself in companys strategyformulation.

To keep communication lines open between the HRDfunction and individuals and groups both within andoutside the organisation.

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To identify and evolve HRD strategies inconsonance with overall business strategy.

To facilitate the development of various

organizational teams and their working relationship

with other teams and individuals.

To try and relate people and work so that the

organization objectives are achieved effectively

and efficiently.

To diagnose problems and to determine

appropriate solution particularly in the human

resources areas.

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To provide co-ordination and support

services for the delivery of HRD

programmes and services.

To evaluate the impact of an HRDintervention or to conduct research so as to

identify, develop or test how HRD in general

has improved individual or organisationalperformance.

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Problem solving skills.Business knowledge/organisation sensitivity.

Knowledge of compensation techniques to

reinforce business plans.

Strategic and conceptual skills.

Knowledge of succession.

Career planning systems.

Established relationships and acknowledgedleadership skills.

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Ability to analyze data and plan from it.

Computer literacyCompetence in HR functional area.

Awareness of the financial impacts in the

HR function as well as to the organisation.

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HRM

FACILITATES & FOCUSSES

ON

GROWTH &

DEVELOPMENT OFINDIVIDUALS

GROWTH &

DEVELOPMENT

OFORGANISATION

S

BY BY

DEVELOPING

CAPABILITIES IN

INDIVIDUALS

DEVELOPING

CAPABILITIES IN

ORGANISATIONS

FO

R

FO

R

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IMPROVED

PERFORMANCE &JOB SATISFACTION

OPTIMUM & EFFECTIVE

UTILISATION OF

HUMAN & ORGN

RESOURCEAS

TO IMPROVE

ORGANISATIONAL

STRENGTH &POTENTIAL

THROUGH

FOCUSSED

COLLABORATION

FOR

MUTUAL

PROSPERITY

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Functions of HRM

Planning

Organizing

Directing

Controlling

Operative Functions

P/HRM

Managerial

functions:Procurement

Job Analysis

HR planning

Recruitment

Selection

Placement

Induction

Internal

mobility

Development:

Training

Executivedevelopment

Career

planning

Succession

planning

Human

resources

development

strategies

Motivation and

Compensation:

Job design

Work scheduling

Motivation

Job evaluation

Performance and

potential

appraisal

Compensation

administration

Incentives

benefits and

services

Maintenance:

Health

Safety

Welfare

Social security

Integration:

Grievances

Discipline

Teams andteamwork

Collectivebargaining

Participation

Empowerment

Trade unions

Employersassociations

Industrialrelations

Emerging

Issues:

Personnel

records

Personnel

audit

Personnel

research

HR

accounting

HRIS

Job stress

Mentoring

International

HRM

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Sustainability Challenge-- Attraction and Retention-- Attaining Financial Objectives

Global ChallengeIssues:-- Different Geographies, culture, laws and business

practices-- Gauging the knowledge and skills of international

workers-- Re-locating managers to direct

Technology challenge-- Human resources and their capabilities-- New Technology and its opportunities-- Efficient work structure

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Managing Human Resource

Acquiring and Preparing Human Resource

Assessment and Development

Compensating Human Resources

Special Issues

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The Early Years(i.e., before 1900)

The Growth Years(i.e period between 1900

and 1946)

The Maturation Years(i.e period between 1946and 1970)

The Transition Years Years(i.e period between

1970 to till today)

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Upto 1930s, various malpractices in the

recruitment of workers and payment ofwages were prevalent in India which

caused a colossal loss in production due

to industrial disputes.

In 1931, the Royal Commission of Labour

was established in India under the

Chairmanship of J.H.Whitely. In India, HRM emerged mainly because of

governmental interventions and compulsions.

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After Independence, in 1948 the FactoriesAct have been legislated.

In 1980, the two professional bodies in India,the Indian Institute of Personnel Mgt(IIPM)and the National Institute of LabourMgt(NILM) merged to form the National

Institute of Personnel Mgt(NIPM). In 1980, the focus is shifted to HRM

challenges and Human ResourceDevelopment(HRD).

From 1990s, the emphasis have been shiftedto human values and productivity throughpeople.

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Importance of HRM

retain talent

train people for challenging roles

developskills and competencies

promote team spirit

develop loyalty and commitment

increaseproductivity and profits

improvejob satisfaction

enhance standard of living

Good HR Practices help

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Objectives of HRM

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To provide more employment opportunities.

To provide maximum productivity.To provide maximum material and mental

satisfaction to workforce.To control wastage of effort.To help to maintain ethical policies and socially

responsible behaviour.To encourage healthy human relations and

social welfare.To manage change to the mutual advantagesof individuals,groups, the enterprise and thepublic.

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To help the organisation to reach its goals.

To efficiently employ the skills and abilities of

the workforce.

To provide well trained and well motivatedemployees to the organization.

To develop and maintain a quality of work life.

To communicate HRM policies to all employees.

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Functional objectives try to maintain the

departments contribution at a level

appropriate to the organization's needs.

Human resources are to be adjusted to suitthe organization's demands.

The departments level of service must betailored to fit the organization it serves.

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To provide adequate remuneration to the

employees.

To provide job security.

To provide facilities for proper training anddevelopment.

To increase the employees job satisfactionand self Actualization.

To provide congenial working environment.

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HRM Objectives Supporting Functions

Societal Objectives Legal ComplianceBenefits

Union Management relations

Organizational Objectives Human resource planning

Employee relations

Selection

Training & development

Appraisal

Placement

Assessment

Functional Objectives Appraisal

PlacementAssessment

Personal Objectives Training & development

Appraisal

Placement

Assessment

Compensation

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KEY ROLE CRITERIA FOR SUCCESS

BUSINESS PERSON

SHAPER OF CHANGE IN

ACCORDANCE WITH

BUSINESS

Shows concerns for

organization growth.

Knows the market and what

the business is.

Has long term vision ofwhere business is headed.

Can create change in

strategy.

Can think conceptually andarticulate thoughts.

Has sense of purpose.

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CONSULTANT TO

ORGANISATION

STRATEGY/BUSINESS

PLANNER

Has ability to build

commitment into action. Responds to organization

needs.

Recognizes importance of

team work.

o Knows plan of top

executives.

o Develops and sells own

plans and ideas.o Has 30 to 50 year focus.

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TALENT MANAGER

HR ASSET MANAGER /

COST CONTROLLER

Is capable of educating

management.

Knows high potential people

and anticipating their

concerns.

Initiates action.

Can educate and sell

management

Can creatively measure

effectiveness. Can use automation

effectively

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THE CONSCIENCE ROLE

THE MEDIATOR

THE SPOKESMAN

THE PROBLEM SOLVERTHE CHANGE AGENT

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Human resource policies are systems ofcodified decisions, established by anorganization, to support administrative

personnel functions, performancemanagement, employee relations andresource planning.

Each company has a different set ofcircumstances, and so develops anindividual set of human resource policies

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HR policies provide an organization with a

mechanism to manage risk by staying up todate with current trends in employment

standards and legislation.

The policies must be framed in a manner that

the companies vision & the human resource

helping the company to achieve it or worktowards it are at all levels benefited and at the

same time not deviated from their main

objective.

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1. Related to Objectives

2. Easy to Understand3. Precise

4. Stable as well as Flexible

5. Based on Facts6. Appropriate Number

7. Just, Fair and Equitable

8. Reasonable9. Review

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E-Business

Neural Networks

E-HRM

E-Job design E-Job analysis

E-HR planning

E-Recruitment

E-Selection

E-HRD & career planning

E-Performance

management

E-Training & development E-Compensation & benefits

E-Grievance redressal

E-HR records

E-HR information E-HR audit

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Computer technology enables organisations

to combine human resource information into

a single database.

A wide variety of information needs of a

business are recognized into Management

Information System.

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A HRIS is an integrated system designed to

provide information used in HR decisionmaking.

HRIS evolve from previously separatecomputer systems such as

Payroll processing

Employee skills inventories

HR auditing files

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An HRIS may be defined as the system

used to acquire, store, manipulate, analyze,

retrieve and distribute pertinent information

regarding an organization's humanresources.

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To acquire, store, manipulate, analyze,retrieve and distribute pertinent information

regarding an organisations human

resources.

To facilitates HR decisions making in the

following areas:

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Man power planning

Recruitment and selection

Employment including

Promot ions

Transfers

Discip l inary procedures

Terminat ion

Redundancy

Education and training

Salary and wages administration

Labour relations

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RECRUITIN

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PAYROLLBENEFI

TS

PERFORMAN

CE

APPRAISAL

TRAINING &

DEVELOPME

NT

RECRUITIN

G

PLACEMEN

T

LABOUR

RELATION

S

RELATIONAL

DATABASE

EMPLOYEE

DATA

JOB DATA

PAY ROLLRECRUITING

EFFECTIVENESS

BENEFITS COST

APPRAISALS DUE TO

THIS MONTH

HOW MANY CURRENT EMPLOYEES

HAVE COMPLETED OUR TRAINING

PROGRAMS ON SAFETY AND

HEALTH?

WHAT ARE OUR PROJECTIONS OF

EMPLOYEE NEEDS IN OUT

MANUFACTURING DIVISION FOR

THE NEXT YEAR?HOW MANY EMPLOYEES ARE

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1 HARDWARE2 SOFTWARE3 DATABASE

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Personal dataRecruitment/selection data

Work experience data

Compensation dataPerformance appraisal

Attitude/morale data

Benefit plan data

Health/safety/accident data

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NEED

ANALYSIS

DESIGN ANDDEVELOPMEN

T

IMPLEMENTATION AND

MAINTENANCE

PHASE III PHASE

I

PHASEII

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Evaluate HR department and business

needsForm project teamDetermine automation needsDevelop system specificationsAnalyze current and future reporting needs Identify and evaluate vendor packagesSelect vendor

Develop proposal for management/decision makersEstablish formal guidelines and

procedures to resolve inefficiencies

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Develop detailed project plan

Develop user groupsPurchase hardwareDevelop independent, focused computer

applications

Implement independent applications as readyModify in house formsModify initial systemEstablish procedures and guidelines to support

systemTest user acceptanceConvert dataTrain HR staff and project team

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Implement HR coreTrain other HR usersMake system available to HR functional

specialistsEstablish mainframe-micro linkDevelop user documentation

Conduct field analysisDevelop procedures for distributed processingPrepare technical documentationDevelop other modulesTest system and user acceptance Implement additional modulesMaintainDistribute to the fieldEvaluate success

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A human resource audit evaluates the

personnel activities used in an organization.The audit may include one division or entire

company. It gives feedback about :

The function of operating managers.

The human resource specialists.

How well managers are meeting their human

resource duties.

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In short, the audit is an overall quality control checkon human resource activities in a division orcompany and how those activities support theorganizationsstrategy

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Identifies the contribution of the personnel

departments to the organization

Improves professional image of the personneldepartment

Encourages greater responsibility andprofessionalism among members of the personneldepartment

Clarifies the personnel departments duties andresponsibilities

Finds critical personnel problems

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Audit of Corporate Strategy

Corporate Strategy concerns how the organization is going to gaincompetitive advantage.

Audit of the Human Resource Function

Audit touches on Human Resource Information System, Staffing andDevelopment, and Organization Control and Evaluation.

Audit of Managerial Compliance

Reviews how well managers comply with human resource policies and

procedures.

Audit of Employee Satisfaction

To learn how well employee needs are met.

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Human resource professionals do not set

corporate strategy, but they strongly determine itssuccess.

By assessing the firms internal strengths and

weaknesses and its external opportunities andthreats, senior management devises ways ofgaining an advantage, such as :

stresses superior marketing channels, low-cost production, etc.Understanding the strategy has strong

implications for human resource planning, staffing,compensation, employee relations, and other

human resource activities 63

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1. Human Resource Information System- Human Resource Plans : Supply and demandestimates; skill inventories; replacement charts

and summaries

- Job Analysis Information : Job standards, Jobdescriptions, Job specifications

- Compensation Management : Wage, salary, and

incentive levels; Fringe benefit package;

Employer-provided services

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Recruiting : sources of recruits, availability ofrecruits, employment applications

Selection : selection ratios, selection procedures,

equal opportunity.

Training and development : orientation program,training objectives and procedures, learning rates

Career development : internal placement, career

planning program, human resource development

efforts

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Performance appraisals : standards and

measures of performance, performance appraisal

techniques, evaluation interview.

Labor-Management Relations : Legalcompliance, management rights, dispute resolution

problems.

Human Resource Controls : employeecommunications, discipline procedures, change

and development procedures,

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Identify who is responsible for each activity.Determine the objectives sought by each activity.Review the policies and procedures used to

achieve these activities.Prepare a report commending proper objectives,

policies, and procedures.Develop an action plan to correct errors in each

activity. Follow up the action plan to see if it solved the

problems found through the audit.

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Employee satisfaction refers to an employees

general attitude toward his or her job.

When employee needs are unmet, turnover,

absenteeism, and union activity are more likely.

To learn how well employee needs are met, theaudit team gathers data from workers.

The team collects information about wages,

benefits, supervisory practices, career planning

assistance, and other dimensions of job

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1. Interviewswith employees and managersare one source of information about human

resource activity. Employees and managers

comments help the audit team find that

need improvement.Another useful source of information is the

exit interview. Exit interview are conducted

with departing employees to learn theirviews of the organization.

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Because interviews are time-consuming, costly,

and often to only few people, many humanresource departments use questionnaires. Through

questionnaire surveys, a more comprehensive

picture of employee treatment can be developed.

Questionnaire may also lead to more candidanswers than face-to-face interviews.

- employee attitude about supervisors

- Employee attitude about their jobs

- Perceived effectiveness of human resource

department

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Not all the issues of interest to human resource

audit are revealed through interviews orquestionnaires. Sometimes insight can be

obtained by an analysis of historical records,

such as:

- Safety and health records

- Grievances records- Compensation studies

- Scrap rates

- Turnover and absenteeism records

- Selection records- Affirmative action plan records

- Training program records

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Outside comparisons give the audit team a

perspective against which their firms activitiescan be judged.

Through Department of Labor, industryassociation, professional association numerous

statistics and report are compiled.These organizations regularly publishes

information about future employmentopportunities, employee turnover rates, work

force projection, area wage and salary survey,work force demography, accident rates, andother data that can serve as benchmark forcomparing internal information.

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Findings of research are used todeveloped a picture of the organizations resource

activities. For this information to be useful, it iscompiled into audit report.

The audit report is a comprehensivedescription of human resource activities thatincludes both commendations for effective practicesand recommendations for improving practices thatare less effective.

Audit report often contain severalsections. One part is for line managers, another isfor manager of specific human resource function,and the final part is for the human resourcemanager.

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How line managers handle their duties

such as: Interviewing applicants Training employees

Evaluating performance

Motivating workers Satisfying employee needs

The report also identifies people

problems. Violations of policies andemployee relations law are highlighted

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The specialists who handle employmenttraining, compensation, and other activities

also need feedback. Such feedbacks are :

1. Unqualified workers that need for training

2. Qualified workers that need fordevelopment

3. What others company are doing

4. Attitude operating managers toward

personnel policies

5. Workers pay dissatisfaction

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It is contains all the information given to both

operating managers and staff specialists. Inaddition, HR Mangers gets feedback about :

Attitude operating managers and employees

about services given by HRD

A review of HRD plans

Human resource problems and their implication

Recommendations for needed changes and

priorities for their implementation

unit 1-HRM

Documents

Transcript of unit 1-HRM