Human Resource Management (Semester-3)
Human Resource Management (Semester-3)
Human Resource Management (Semester-3)
NATURE OF HRM:
The nature of HRM is to reflect a new philosophy, a new outlook, approach which
views organisations man power as its resources and assets and not a liabilities.
Therefore, Human Resource is considered as very important resource to develop on
organisation.
Ofcourse , the other organisational resources like Material, money , machinery ,
land , technology etc., may contribute for the growth but experience now stresses
that HRM is the key factor in organisational growth.
The attitudes, values, approaches of the individual are also equally important for
the smooth of the organisation, where these are covered under HRM.
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CHARACTERISTICS/SCOPE OF HRM:
1) Human Resource Planning: HRP estimates the manpower demand and manpower
supply of the organisation. It compares the manpower demand and manpower
supply. If there is manpower surplus then it gives voluntary retirement, lay-off, etc.
to some employees. If there is manpower shortage then it hires employees from
outside, gives promotion to employees, etc.
2) Job Analysis(Job Description and Job Specification):It is the process of studying and
collecting information relating to the operations and responsibilities of a specific job.
The immediate products of this analysis are job description and job specification.
3) Recruitment and Selection:Recruitment is the process of stimulating the candidates
to apply for jobs. Selection is a process of identifying the most eligible candidate for
a particular job.
4) Orientation and Placement: HRM also performs the placement function.Placement
is done after selection of employees. It means to put the right man in the right place
of work. Proper placement gives job satisfaction to the employees, and it increases
their efficiency.
5) Training and Development: HRM also provides training and development to the
employees. Training means to increase the knowledge and skills of the employee for
doing a particular job. Training given to managers is called development. So, training
is given to employees while development is given to managers.
6) Performance Appraisal and Job Evaluation: HRM also conducts a performance
appraisal. Performance appraisal is a systematic evaluation of the employees'
performance at work. It informs the employees about their strengths and weakness.
It also advises them about how to increase their strengths and remove their
weaknesses.
7) Employee and Executive Remuneration: Employees must be rewarded and
recognised for their performance. HRM makes proper compensation packages for
the employees. These packages motivate the employees and increase their morale.
Rewards are given to individuals, and teams. The rewards may be in the form of
higher pay, bonus, other monetary incentives, and non-monetary incentives such as
a certificate of appreciation, etc.
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OBJECTIVES OF HRM:
1) To help the organisation to attain its goals effectively and efficiently by providing
competent and motivated employees.
2) To utilize the available human resources effectively.
3) To increase to the fullest the employee’s job satisfaction and self-actualisation.
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4) To develop and maintain the quality of work life (QWL) which makes employment in
the organisation a desirable personal and social situation.
5) To help maintain ethical policies and behaviour inside and outside the organisation.
6) To establish and maintain cordial relations between employees and management.
7) To reconcile individual/group goals with organisational goals.
Werther and Davis have classified the objectives of HRM into four categories:
IMPORTANCE OF HRM:
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FUNCTIONS OF HRM:
The main functions of human resource management are classified into two categories:
(a) Managerial Functions and (b) Operative Functions
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2) Organisation : Under organisation, the human resource manager has to organise the
operative functions by designing structure of relationship among jobs, personnel and
physical factors in such a way so as to have maximum contribution towards
organisational objectives. In this way a personnel manager performs following
functions :
(a) preparation of task force;
(b) allocation of work to individuals;
(c) integration of the efforts of the task force;
(d) coordination of work of individual with that of the department.
3) Directing : Directing is concerned with initiation of organised action and stimulating
the people to work. The personnel manager directs the activities of people of the
organisation to get its function performed properly. A personnel manager guides and
motivates the staff of the organisation to follow the path laid down in advance.
4) Controlling : It provides basic data for establishing standards, makes job analysis and
performance appraisal, etc. All these techniques assist in effective control of the
qualities, time and efforts of workers.
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PERSONNEL MANAGEMENT:
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Definition:
Personnel manager is the head of personnel department. He performs both managerial and
operative functions of management. His role can be summarized as:
a) Providing assistance to top management: The top management are the people who
decide and frame the primary policies of the concern. All kinds of policies related to
personnel or workforce can be framed out effectively by the personnel manager.
b) Advising the line manager as a staff specialist:Personnel manager acts like a staff
advisor and assists the line managers in dealing with various personnel matters.
c) Counseling:As a counselor, personnel manager attends problems and grievances of
employees and guides them. He tries to solve them in best of his capacity.
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The main difference between Personnel Management and Human Resource Management
lies in their scope and orientation. While the scope of personnel management is limited and
has an inverted approach, wherein workers are viewed as tool. Here the behavior of the
worker can be manipulated as per the core competencies of the organization and are
replaced when they are worn-out.
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It is also influenced by inner factors such as the objectives of the organization, the
construction of the organization and culture. These factors influence the objectives
of an organization’s human resource management.
The call for a strategic approach to human resource management is invertible in the
current turbulent economic conditions. Human resources managers are under
steady pressure to guarantee that the productivity of employees is increased.
In order to meet the changing needs in human resource managements, a strategic
approach is essential. Effective human resource managements are based on four
aspects
Human resource involves line mangers and it relies upon a set of supports to shape
the employment. Strategic approach to human resources approaches human
resources from a holistic angle.
Strategic management offers a full scope of an organization’s activities that include
its objectives and boundaries. It matches the activities of an organization to the
environment in which it’s operates. It also ensures that internal structures, practices
and procedures enable the organization to achieve its objectives.
Strategic human resource management is basically concerned with its ability to add
value to the organization and accordingly has to focus on what human resources
management c contributes to the business instead of the activities it does.
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Understanding the effects of globalization on human resources can help managers to better
equip their organizations for the increasingly global business environment.
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insight from the results to shape business decisions and, ultimately, improve
performance.
2) Diversity Recruitment: With the rise of globalization, companies of all sizes are now
interacting with customers and stakeholders from diverse cultures, languages and
social backgrounds. In response, many human resources managers seek to hire
employees from equally diverse backgrounds. Companies engaging in this diversity
recruitment recognize the value of having people on staff that their customers can
relate to, and they know that having a team of diverse people contributes to the
range of ideas and influences within the organization.
3) Push for Professional Development: A further effect of globalization on HR
management is a push for professional development. Professional development is
concerned with providing employees opportunities to achieve their career-related
goals. Some organizations provide resources for their employees to earn a university
degree, others send their employees to conferences or networking events and
training days. Professional development is important to globalization because it
creates a win-win situation.
4) Greater Emphasis on Training:Similar to professional development, a greater
emphasis on training has resulted because of globalization in human resources
management. Training, however, tends to be focused on the needs and professional
competencies of groups of employees within the organization. The company might,
for instance, host language classes to give its call center staff an edge in telephone
sales. It might also teach its employees how to use a new global software platform.
This emphasis on training seeks to give the company a competitive edge in the global
marketplace by honing the employees' diversity emphasis.
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Internal Environment:
These are the forces internal to an organisation. Internal forces have profound influence on
HR functions. The internal environment of HRM consists of unions, organizational culture
and conflict, professional bodies, organisational objectives, polices, etc. A brief mention of
these follows.
1) Unions: Trade unions are formed to safeguard the interest of its members/workers.
HR activities like recruitment, selection, training, compensation, industrial relations
and separations are carried out in consultation with trade union leaders.
2) Organisational Culture and Conflict: As individuals have personality, organizations
have cultures. Each organisation has its own culture that distinguishes one
organisation from another.
Culture may be understood as sharing of some core values or beliefs by the
members of the organisation “Value for time” are the culture of Reliance Industries
Limited. The culture of Tata conglomerate is “get the best people and set them free”.
HR practices need to be implemented that best fit the organisation’s culture. There is
often conflict between organizational culture and employee’s attitude. Conflict
usually surfaces because of dualities such as personal goal vs. organisational goal,
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discipline vs. autonomy, rights vs. duties, etc. Such conflicts have their bearings on
HR activities in an organisation.
3) Professional Bodies:Like other professional bodies, the NIPM as the HR professional
body regulates the functions of HR practitioners in India. For this the NIPM in of
ethics which the HR practitioners are expected to declare their allegiance to the
code.Thus, professional bodies also influence HR functions of an organization.
External Environment:
1) Economic: Economic forces include growth rate and strategy, industrial production,
national and per capita incomes, money and capital markets, competitions, industrial
labour and globalisation. All these forces have significant influence on wage and
salary levels. Growing unemployment and reservation in employment also affect the
choice for recruitment and selection of employees in organisations.
2) Political: Political environment covers the impact of political institutions on HRM
practices. For example, democratic political system increases the expectations of
workers for their well being.
a) Legislature: This is called Parliament at the central level and Assembly at the state
level A plethora of labour laws are enacted by the legislature to regulate working
conditions and employment relations.
b) Executive: It is the Government that implements the law. In other words, the
legislature decides and the executive acts.
c) Judiciary: It ensures that both the legislature and the executive work within the
confines of the constitution and also in the overall interest of the people. These
affect, in one way or the other, all HR activities from planning to placement to
training to retention and maintenance.
3) Technological: Technology is a systematic application of organised knowledge to
practical tasks.
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Second, it renders workers dislocated if they do not equip themselves to the job.
Third, job becomes challenging for the employees who cope with the requirements
of technology
Fourth, technology reduces human interaction at the work place.
Finally job-holders become highly professionalized and knowledgeable in the job
they perform.
4) Demographic: Demographic variables include sex, age, literacy, mobility, etc.
Modem work force is characterized by literate, women and scheduled caste and
scheduled tides workers. Now, workers are called knowledge workers’ and the
organisations wherein they work are called ‘knowledge organisations’.
As such, the traditional line of distinction between manual and non-manual workers is
getting blurred. Employees are demanding parity in remuneration and responsibility among
various categories and levels of employees.
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