The Concept AndFunctions of HumanResource Management

7/29/2019 The Concept AndFunctions of HumanResource Management

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2 9The Concept andFunctions of HumanResource ManagementPerformance Appraisal:This function monitors employee performance to ensure thatit is at

acceptable levels. Human resource professionals are usually responsiblefordeveloping and administering performance appraisal systems, althoughthe actualappraisal of employee performance is the responsibility ofsupervisors and managers.Besides providing a basis for pay, promotion, anddisciplinary action, performanceappraisal information is essential for employeedevelopment since knowledge of results (feedback) is necessary to motivate andguide performance improvements.Career Planning:Career planning has developed partly as a result of the desire of manyemployees to grow in their jobs and to advance in their career. Careerplanningactivities include assessing an individual employees potential for

growth andadvancement in the organisation.Compensation:Human resource personnel provide a rational method for determininghowmuch employees should be paid for performing certain jobs. Pay isobviouslyrelated to the maintenance of human resources. Sincecompensation is a major cost tomany organisations, it is a majorconsideration in human resource planning.Compensation affects staffing inthat people are generally attracted to organisationsoffering a higher level ofpay in exchange for the work performed. It is related toemployeedevelopment in that it provides an important incentive inmotivatingemployees to higher levels of job performance and to higher

paying jobs in theorganisation.Benefits:Benefits are another form of compensation to employees other thandirectpay for work performed. As such, the human resource function ofadministeringemployee benefits shares many characteristics of thecompensation function. Benefitsinclude both the legally required items andthose offered at employers discretion. Thecost of benefits has risen to sucha point that they have become a major considerationin human resourcesplanning. However, benefits are primarily related to themaintenance area,since they provide for many basic employee needs.Labour Relations:

The term labour relations refers to interaction with employeeswho arerepresented by a trade union. Unions are organisation of employees whojointogether to obtain more voice in decisions affecting wages, benefits,workingconditions, and other aspects of employment. With regard to labourrelations, thepersonnel responsibility primarily involves negotiating with the unionsregardingwages, service conditions, and resolving disputes and grievances.Record-keeping:


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The oldest and most basic personnel function is employee record-keeping.This function involves recording, maintaining, and retrieving employee-relatedinformation for a variety of purposes. Records which must bemaintainedinclude application forms, health and medical records,employment history (jobs held,promotions, transfers, lay-offs), seniority lists,

earnings and hours of work, absences,turnover, tardiness, and otheremployee data. Complete and up-to-date employeerecords are essential formost personnel functions. More than ever employees todayhave a great interest intheir personnel records. They want to know what is in them, whycertain statements have beenmade, and why records may or may not have been updated.Personnel records provide thefollowing:i)A store of up-to-date and accurate information about thecompanys employees.ii)A guide to the action to be taken regardingan employee, part icular ly bycomparing him with other employees.iii )A guidewhen recruiting a new employee, e.g. by showing the rates ofpayreceived by comparable employees.iv)A historical record of previousaction taken regarding employees.v)The raw material for statistics

which check and guide personnel policies.vi)The means to complywith certain statutory requirements.3 0Human ResourceManagement: Context,Concept and DoundariesPersonnel Research:All personnel people engage in some form of research activities.In a goodresearch approach, the object is to get facts and information aboutpersonnelspecifics in order to develop and maintain a programme thatworks. It is impossible torun a personnel programme without some pre-planning and post-reviewing. For thatmatter, any survey is, in a sense,

research. There is a wide scope for research in theareas of recruitment,employee turnover, terminations, training, and so on. Through awell-designedattitude survey, employee opinions can be gathered on wages,promotions, welfareservices, working conditions, job security, leadership, industrialrelations, andthe like. Inspite of its importance, however, in most companies, researchisthe most neglected area because personnel people are too busy putting outfires.Research is not done to put out fires but to prevent them.Research isnot the sole responsibility of any one particular group or department inanorganisation. The initial responsibility is that of the human resourcedepartment,which however should be assisted by line supervisors andexecutives at all levels of management. The assistance that can be rendered

by trade unions and otherorganisations should not be ignored, but should beproperly made use of.Apart from the above, the HR function involvesmanaging change, technology,innovation, and diversity. It is no longerconfined to the culture or ethos of any singleorganisation; its keynote is across-fertilisation of ideas from different organisations.Periodic social auditsof HR functions are considered essential.HR professionals have an all-encompassing role. They are required to have a thoroughknowledge of theorganisation and its intricacies and complexities. The ultimate goalof every


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HR person should be to develop a linkage between the employee andtheorganisation because the employees commitment to the organisation iscrucial. Thefirst and foremost role of HR functionary is to impart continuouseducation toemployees about the changes and challenges facing the countryin general, and theirorganisation in particular. The employees should know

about their balance sheet, salesprogress, diversification plans, restructuringplans, sharp price movements, turnoverand all such details. The HRprofessionals should impart education to all employeesthrough smallbooklets, video films, and lectures.The primary responsibilities of a humanresource manager are:lTo develop a thorough knowledge of corporate culture, plans and policies.lTo act as an internal change agent and consultant.lTo initiate change and act as an expert and facilitator.

lTo actively involve himself in companys strategy formulation.lTo keep communication lines open between the HRD function andindividualsand groups both within and outside the organisation.lTo identify and evolve HRD strategies in consonance with overallbusinessstrategy.lTo facilitate the development of various organisational teams and theirworkingrelationship with other teams and individuals.

lTo try and relate people and work so that the organisation objectivesareachieved effectively and efficiently.lTo diagnose problems and to determine appropriate solution particularly inthehuman resources areas.lTo provide co-ordination and support services for the delivery ofHRDprogrammes and services.lTo evaluate the impact of an HRD intervention or to conduct research so as

toidentify, develop or test how HRD in general has improved individual ororganizational performance.3 1The Concept and Functions of Human Resource ManagementThe following are the nine new roles of HR practitioner as suggested by PatMcLegan:1)To bring the issues and trends concerning anorganisations external and internalpeople to the attention of strategic


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decision-makers, and to recommend long-termstrategies to supportorganisational excellence and endurance.2)To design and prepare HRsystems and actions for implementation so thatthey can producemaximum impact on organisational performance anddevelopment.3)Tofacilitate the development and implementation of strategies for

transformingones own organisation by pursuing values and visions.4)Tocreate the smoothest flow of products and services to customers; toensure thebest and most flexible use of resources and competencies; andto createcommitment among the people who help us to meet customers needswhetherthose people work directly for the organisation or not.5)To identifylearning needs and then design and develop structuredlearningprogrammes and materials to help accelerate learning forindividuals and groups.6)To help individuals and groups work in newsituat ions and to expand and changetheir views so that people in powermove from authoritarian to participativemodels of leadership.7)To helppeople assess their competencies, values, and goals so that they

canidentify, plan, and implement development actions.8)To assist individuals toadd value in the workplace and to focus on theinterventions andinterpersonal skills for helping people change and sustainchange.9)Toassess HRD practices and programmes and their impact and tocommunicateresults so that the organisation and its people accelerate theirchange anddevelopment.There are four roles which HR play, according to DaveUlrich. The first, strategicpartner role-turning strategy into results by buildingorganisations that create value;the second, a change agent role-makingchange happen and, in particular, help ithappen fast; the third, an employeechampion role-managing the talent or theintellectual capital within a firm;and the fourth, an administrative role-trying to getthings to happen better,

faster and cheaper.Human resource management has received tremendousattention in recent years. Itsrole in organisations has also undergone asubstantial change and many organisationshave gradually orientedthemselves from the traditional personnel management to ahuman resourcemanagement approach, although many see it as the old wine in anewbottle. The basic approach of HRM is to perceive the organisation in itstotality.Its emphasis is not only on production and productivity but also onthe quality of life.It seeks to achieve the fullest development of humanresources and the fullest possiblesocio-economic development.

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The Concept AndFunctions of HumanResource Management