HUMAN RESOURCE MANAGEMENT

Module 1

Introduction to Human Resource Management-Importance-Scope and Objectives.Evolution. Line and Staff aspects of HRM, Line managers Human Resource duties.New approaches to organizing HR. Strategic Human Resources ManagementStrategic HRM tools.

It is defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

It is the process of acquiring, training, appraising and compensating employees and of attending to their labour relations, health and safety and fairness concerns.

HRM - Definition

Conducting the job analysisPlanning labour needs and recruiting job candidatesSelecting job candidatesOrienting and training new employeesManaging wages and salariesProviding incentives and benefitsAppraising performanceConducting interviews, counseling, discipliningTraining and developing managersBuilding employee commitment

It includes the personnel aspects of the management job, like

The scope of HRM is Very widePersonal Aspect: It is concerned with manpower planning,

recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity etc.

Welfare Aspect: It deals with working conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities etc.

Industrial Relations Aspect : This covers union – management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes etc.

Scope

Objectives of HRMTo help the organization reach its goalsTo employ the skills and abilities of the work

force efficiently.To provide the organization with well trained

and well motivated employeesTo increase to the fullest the employee’s job

satisfaction and self actualization.To develop and maintain quality of work lifeTo communicate the HR policies to all

employees.To be ethically and socially responsible to the

needs of society

At the enterprise level: Good HR practices help in atracting and retaining the best

people in the organisation It helps in training people for challenging roles, developing

right attitude towards the job and the company, promoting team spirit, commitment etc

At the individual level: It promotes team work and team spirit among employees It offers excellent growth opportunities to people who have

potential to rise It allows people to work with diligence and commitment

At the society level: Employment opportunities multiply Scarce talents are put to best use.

Importance of HRM

Industrial Revolution: machines are brought in the production process, rapid progress in technology, jobs were more fragmented, specialization increased, but left workers with dull, boring , monotonous jobs. Govt. did very little to protect the interest of the workers

Scientific management: To improve efficiency and speed F W Taylor advocated scientific management. Scientific management is nothing but systematic analysis and breakdown of work into its smallest mechanical elements and reaaranging into most efficient combination. Improtance of training was also identified

History of Personal / Human Resource Management

Trade Unionism: Workers joined hands to protect against the exploitive tendency of employers and unfair labour practices. TU tried to improve work conditions, pay and benefits, disciplinary actions etc.

Human relations movement: After Hawthorne experiments conducted by Elton Mayo, productivity not only depends on rewards, and the job design but also on certain social and psychological factors also.. Human relations movement led to the implementation of behavioural science techniques in industry.

Human Resources approach: During early 60’s “pet milk theory” of human relationist’s had been largely rejected(happy workers are productive or happy cows give more milk). It was recognized that workers are unique and have individual needs. The trend move towards treating employees as resources or assets emerged.

Evolution of HRM

1920-1930

Welfare management

1940-1960

Personal management

1970-1980

Development phase

1991-ownwards

Proactive- growth oriented phase

Welfare phase- welfare management, maintaining records of employees such as attendance, leave etc. Roles: Welfare administrator, policeman

Personal management- Fire fighting stage- Employee disputes, trade unions, decisions taken by top management.

Roles: Advisor, mediator, legal advisor, fire fightingDevelopment phase- Importance given on efficiency

and effectiveness, emphasis on human values, dignity. Hr manager does the role of change agent, trainer etc.

Growth oriented – employees are considered as assets. Hr manager’s role- developer, counsellor, coach, mentor, problem solver

Managerial Function Operative function Advisory functions

Planning Acquisition Top ManagementOrganising Training &Development Department headsDirecting MotivationControlling Maintenance

Remuneration Working conditions Personnel records Industrial relations Separation

Functions of HRM

Authority- right to make decisions and give ordersLine Authority- Gives right to issue orders to the

managers or employees- creates a superior –subordinate relationship

Staff Authority- Gives the manager the right to advise other managers and employees. It creates an advisory relationship

HR managers are usually considered as staff managers, since they assist and advise the line managers in areas like recruiting, hiring and compensation.

Line And Staff Aspect Of HRM

Integral part of line managers duty- is direct handling of people

Other duties include:• Placing the right person on the right job• Socializing new employees to the organisation• Training employees for the jobs that are new to them• Improving the job performance of each person• Gaining cooperation and developing smooth working relationships• Interpreting the company’s policies and procedures• Controlling labour costs• Developing the abilities of each person• Creating and maintaining department morale• Protecting employees health and physical condition

Line Managers Human Resource Duties

3 distinct functions of HR Managers1. Line function: He directs the activities of the people

in his /her own departments2. Co-ordinate function :Ensures that the line managers

are implementing the firms HR policies and practices3. Staff Function :Assists in hiring, training, evaluating,

rewarding, counseling, promoting, and firing employees. Administers various benefit programmes

HR manager’s Duties

Transactional HR group: Focuses on using centralized call centers and outsourcing arrangements with vendors(benefits advisors) to provide specialized support in day to day transactional HR activities.

Corporate HR Group: Focuses on assisting top management in big issues such as developing the long term strategic plans on the company

Embedded HR group: Assigns HR generalists directly to departments to provide localized HRM assistance to the department needs.

The centers of expertise: Are specialized HR consulting firms within the company, providing specialized assistance in areas such as organizational change

New Approaches to Organizing HR