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INTRODUCTION:
Human resource (or personnel) management, in the sense of getting things done
through people. It's an essential part of every manager's responsibilities, but many
organizations find it advantageous to establish a specialist division to provide anexpert service dedicated to ensuring that the human resource function is performed
efficiently.
Human resource management (HRM) is the effectivemanagement of people at work.HRM examines what can or should be done to make workingpeople more productiveand satisfied. This book has been written for individuals interestedin learning about people
working within organizations. Its goal is to help develop moreeffective managers
"People are our most valuable asset" is a clich which no member of any senior
management team would disagree with. Yet, the reality for many organizations is
that their people remain
under valued
under trained
under utilized
poorly motivated, and consequently perform well below their true capability
ACCORDING TO EDVIN FLIPPO
Edwin Flippo defies HRM as planning, organizing, directing,controlling of procurement, development, compensation,integration , maintenance and separation of human resources tothe end that individual, organizational and social objectives are
achieved.
.The following four descriptions of the HRM unit should bestressed at the outset:
1. It is action-oriented Effective HRM focuses on actionrather than on record keeping,
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written procedure, or rules. Certainly, HRM uses rules, records,and policies, but itstresses action. HRM emphasizes the solution of employmentproblems to help achieve
organizational objectives and facilitate employees developmentand satisfaction.
2. It is people-oriented Whenever possible, HRM treats eachemployee as an individual andoffers services and programs to meet the individuals needs.McDonalds, the fast-foodchain, has gone so far as to give an executive the title vicepresident of individuality.
3. It is globally oriented HRM is a globally oriented function oractivity; it is being practicedefficiently and continuously in Mexico, Poland, and Hong Kong.Many organizationsaround the world treat people fairly, with respect, and withsensitivity. Thus,American practitioners can review best-in-class HRM practices inBrazil to determineif some principles can be applied or modified to work in the United
States.
4. It is future-oriented Effective HRM is concerned with helpingan organization achieveits objectives in the future by providing for competent, well-motivated employees. Thus,human resources need to be incorporated into an organizationslong-term strategicplans.
The following HR Journal of Malden Mills Company captures HRMat the peak of effectiveness.This company did not allow a devastating fire to shut it down.Staffed by peopleof many nations of the world, the company, with the help of apeople-oriented leader, Aaron
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Feuerstein, showed tenacity, dedication, and loyalty in theirdecision to rebuild.
Features of HRM or characteristics or nature
1. HRM involves management functions like planning, organizing,directing and controlling.
2. It involves procurement, development, maintenance of humanresource
3. It helps to achieve individual, organizational and socialobjectives
4. HRM is a mighty disciplinary subject. It includes the study of
management psychology communication, economics andsociology.
5. It involves team spirit and team work.
Evolution of HRM
The evolution of HRM can be traced back to Kautilya Artha
Shastra where he recommends that government must take activeinterest in public and private enterprise. He says that governmentmust provide a proper procedure for regulating employee andemployee relation.In the medieval times there were examples of kings like AllaudinKhilji who regulated the market and charged fixed prices and
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provided fixed salaries to their people. This was done to fightinflation and provide a decent standard of livingDuring the pre independence period of 1920 the trade unionemerged. Many authors who have given the history of HRM say
that HRM started because of trade union and the First World War.The Royal commission in 1931 recommended the appointment ofa labour welfare officer to look into the grievances of workers.The factory act of 1942 made it compulsory to appoint a labourwelfare officer if the factory had 500 or more than 500 workers.The international institute of personnel management and nationalinstitute of labour management were set up to look into problemsfaced by workers to provide solutions to them. The Second WorldWar created awareness regarding workers rights and 1940s to
1960s saw the introduction of new technology to help workers.The 1960s extended the scope of human resource beyondwelfare. Now it was a combination of welfare, industrial relation,administration together it was called personnel management.With the second 5 year plan, heavy industries started andprofessional management became important. In the 70s thefocus was on efficiency of labour wile in the 80s the focus was onnew technology, making it necessary for new rules andregulations. In the 90s the emphasis was on human values and
development of people and with liberalization and changing typeof working people became more and more important there byleading to HRM which is an advancement of personnelmanagement.
Scope of HRM/functions of HRM
The scope of HRM refers to all the activities that come under thebanner of HRM. These activities are as follows-
1. Human resources planning :-Human resource planning or HRP refers to a process by which thecompany to identify the number of jobs vacant, whether thecompany has excess staff or shortage of staff and to deal withthis excess or shortage.
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2. Job analysis design :-Another important area of HRM is job analysis. Job analysis givesa detailed explanation about each and every job in the company.
Based on this job analysis the company prepares advertisements.
3. Recruitment and selection :-Based on information collected from job analysis the companyprepares advertisements and publishes them in the news papers.This is recruitment. A number of applications are received afterthe advertisement is published, interviews are conducted and theright employee is selected thus recruitment and selection are yetanother important area of HRM.
4. Orientation and induction :-Once the employees have been selected an induction ororientation program is conducted. This is another important areaof HRM. The employees are informed about the background of thecompany, explain about the organizational culture and values andwork ethics and introduce to the other employees.
5. Training and development :-
Every employee goes under training program which helps him toput up a better performance on the job. Training program is alsoconducted for existing staff that have a lot of experience. This iscalled refresher training. Training and development is one areawere the company spends a huge amount.
6. Performance appraisal :-Once the employee has put in around 1 year of service,performance appraisal is conducted that is the HR department
checks the performance of the employee. Based on theseappraisal future promotions, incentives, increments in salary aredecided.
7. Compensation planning and remuneration :-There are various rules regarding compensation and otherbenefits. It is the job of the HR department to look into
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remuneration and compensation planning.
8. Motivation, welfare, health and safety :-Motivation becomes important to sustain the number of
employees in the company. It is the job of the HR department tolook into the different methods of motivation. Apart from thiscertain health and safety regulations have to be followed for thebenefits of the employees. This is also handled by the HRdepartment.
9. Industrial relations :-Another important area of HRM is maintaining co-ordinal relationswith the union members. This will help the organization to
prevent strikes lockouts and ensure smooth working in thecompany.
Challenges before the HR manager/before modern
personnel management
Personnel management which is know as human resource
management has adapted itself to the changing work
environment, however these changes are still taking place and
will continue in the future therefore the challenges before the HR
manager are
1. Retention of the employees :-
One of the most important challenge the HR manager faces is
retention of labour force. Many companies have a very high rate
of labour turnover therefore HR manager are required to take
some action to reduce the turnover
2. Multicultural work force :-
With the number of multi cultural companies are increasing
operations in different nations. The work force consists of people
from different cultures. Dealing with each of the needs which are
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different the challenge before the HR manager is integration of
multicultural labour work force.
3. Women in the work force :-
The number of women who have joined the work force has
drastically increased over a few years. Women employees face
totally different problems. They also have responsibility towards
the family. The organization needs to consider this aspect also.
The challenge before the HR manager lies in creating gender
sensitivity and in providing a good working environment to the
women employees.
4. Handicapped employees :-
This section of the population normally faces a lot of problems on
the job, very few organization have jobs and facilities specially
designed for handicapped workers. Therefore the challenge
before the HR manager lies in creating atmosphere suitable for
such employees and encouraging them to work better.
5. Retrenchment for employees :-In many places companies have reduced the work force due to
changing economic situations, labourers or workers who are
displaced face sever problems. It also leads to a negative
atmosphere and attitude among the employees. There is fear and
increasing resentment against the management. The challenge
before the HR manager lies in implementing the retrenchment
policy without hurting the sentiments of the workers, without
antagonizing the labour union and by creating positive attitude inthe existing employees.
6. Change in demand of government :-
Most of the time government rules keep changing. While a lot of
freedom is given to companies some strict rules and regulations
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have also been passed. The government has also undertaken the
disinvestment in certain companies due to which there is fear
among the employees regarding their job. The challenge before
the HR manager lies in convincing employees that their interest
will not be sacrificed.
7. Initiating the process of change :-
Changing the method of working, changing the attitude of people
and changing the perception and values of organization have
become necessary today. Although the company may want to
change it is actually very difficult to make the workers accept the
change. The challenge before the HR manager is to make people
accept change.
Significance/importance/need of HRM
HRM becomes significant for business organization due to the
following reasons.
1. Objective :-HRM helps a company to achieve its objective from time to time
by creating a positive attitude among workers. Reducing wastage
and making maximum use of resources etc.
2. Facilitates professional growth :-
Due to proper HR policies employees are trained well and this
makes them ready for future promotions. Their talent can be
utilized not only in the company in which they are currentlyworking but also in other companies which the employees may
join in the future.
3. Better relations between union and management :-
Healthy HRM practices can help the organization to maintain co-
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ordinal relationship with the unions. Union members start
realizing that the company is also interested in the workers and
will not go against them therefore chances of going on strike are
greatly reduced.
4. Helps an individual to work in a team/group :-
Effective HR practices teach individuals team work and
adjustment. The individuals are now very comfortable while
working in team thus team work improves.
5. Identifies person for the future :-
Since employees are constantly trained, they are ready to meet
the job requirements. The company is also able to identify
potential employees who can be promoted in the future for the
top level jobs. Thus one of the advantages of HRM is preparing
people for the future.
6. Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the
company will be able to select the right people for the right job.When this happens the number of people leaving the job will
reduce as the will be satisfied with their job leading to decrease in
labour turnover.
7. Improves the economy :-
Effective HR practices lead to higher profits and better
performance by companies due to this the company achieves a
chance to enter into new business and start new ventured thusindustrial development increases and the economy improves.
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Functional overview and strategy for HRM
This set of resources are offered to promote thought, stimulate discussion, diagnose
the organizational environment and develop a sound human resource management
strategy for your organization. We begin by looking at the seven distinguishable
function human resource management provide to secure the achievement of the
objective defined above.
Function 1: Manpower planning
Planning staff levels requires that an assessment of present and future needs of the
organization be compared with present resources and future predicted resources.
Appropriate steps then be planned to bring demand and supply into balance.
Thus the first step is to take a 'satellite picture' of the existing workforce profile
(numbers, skills, ages, flexibility, gender, experience, forecast capabilities,
character, potential, etc. of existing employees) and then to adjust this for 1, 3 and
10 years ahead by amendments for normal turnover, planned staff movements,
retirements, etc, in line with the business plan for the corresponding time frames.
Future staffing needs will derive from:
Sales and production forecasts The effects of technological change on task needs
Variations in the efficiency, productivity, flexibility of labor asa result of training, work study, organizational change, newmotivations, etc.
Changes in employment practices (e.g. use ofsubcontractors or agency staffs, hiving-off tasks, buying in,substitution, etc.)
Variations, which respond to new legislation, e.g. payrolltaxes or their abolition, new health and safety requirements
Changes in Government policies (investment incentives,regional or trade grants, etc.)
That, in turn, will involve the further planning of such recruitment, training,
retraining, labor reductions (early retirement/redundancy) or changes in workforce
utilization as will bring supply and demand into equilibrium, not just as a oneoff
but as a continuing workforce planning exercise the inputs to which will need
constant varying to reflect 'actual' as against predicted experience on the supply
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side and changes in production actually achieved as against forecast on the demand
side.
Function 2: Recruitment and selection of employees
Recruitment of staff should be preceded by:
An analysis of the job to be done (i.e. an analytical study of the tasks to be
performed to determine their essential factors) written into a job description so that
the selectors know what physical and mental characteristics applicants must
possess, what qualities and attitudes are desirable and what characteristics are a
decided disadvantage;
The main sources of recruitment are:
Internal promotion and internal introductions (at timesdesirable for morale purposes)
Careers officers (and careers masters at schools) University appointment boards Agencies for the unemployed Advertising (often via agents for specialist posts) or the use
of other local media (e.g. commercial radio)
Where the organization does its own printed advertising it is useful if it has some
identifying logo as its trade mark for rapid attraction and it must take care not tooffend the sex, race, etc. antidiscrimination legislation either directly or indirectly.
The form on which the applicant is to apply (personal appearance, letter of
application, completion of a form) will vary according to the posts vacant and
numbers to be recruited.
Interviewing can be carried out by individuals (e.g. supervisor or departmental
manager), by panels of interviewers or in the form of sequential interviews by
different experts and can vary from a five minute 'chat' to a process of several days.
Ultimately personal skills in judgment are probably the most important, but
techniques to aid judgment include selection testing for:
Aptitudes (particularly useful for school leavers) Attainments General intelligence
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(All of these need skilled testing and assessment.) In more senior posts other
techniques are:
Leaderless groups Command exercises Group problem solving
(These are some common techniques - professional selection organizations often
use other techniques to aid in selection.)
Function 3: Employee motivation
To retain good staff and to encourage them to give of their best while at work
requires attention to the financial and psychological and even physiological
rewards offered by the organization as a continuous exercise.
Basic financial rewards and conditions of service (e.g. working hours per week)
are determined externally (by national bargaining or government minimum wage
legislation) in many occupations but as much as 50 per cent of the gross pay of
manual workers is often the result of local negotiations and details (e.g. which
particular hours shall be worked) of conditions of service are often more important
than the basics. Hence there is scope for financial and other motivations to be used
at local levels.
As staffing needs will vary with the productivity of the workforce (and theindustrial peace achieved) so good personnel policies are desirable. The latter can
depend upon other factors (like environment, welfare, employee benefits, etc.) but
unless the wage packet is accepted as 'fair and just' there will be no motivation
Function 4: Employee evaluation
An organization needs constantly to take stock of its workforce and to assess its
performance in existing jobs for three reasons:
To improve organizational performance via improving theperformance of individual contributors (should be anautomatic process in the case of good managers, but (aboutannually) two key questions should be posed:
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o what has been done to improve the performance of aperson last year?
o and what can be done to improve his or herperformance in the year to come?).
To identify potential, i.e. to recognize existing talent and touse that to fill vacancies higher in the organization or totransfer individuals into jobs where better use can be madeof their abilities or developing skills.
To provide an equitable method of linking payment toperformance where there are no numerical criteria (oftenthis salary performance review takes
Basically an evaluation / appraisal scheme is a formalization of what is done in amore casual manner anyway (e.g. if there is a vacancy, discussion about internal
moves and internal attempts to put square pegs into 'squarer holes' are both the
results of casual evaluation). Most managers approve merit payment and that too
calls for evaluation. Made a standard routine task, it aids the development of talent,
warns the inefficient or uncaring and can be an effective form of motivation
Function 5: Industrial relations
Good industrial relations, while a recognizable and legitimate objective for an
organization, are difficult to define since a good system of industrial relationsinvolves complex relationships between:
(a) Workers (and their informal and formal groups, i. e. trade union, organizations
and their representatives);
(b) Employers (and their managers and formal organizations like trade and
professional associations);
(c) The government and legislation and government agencies l and 'independent'
agencies like the Advisory Conciliation and Arbitration Service.
Oversimplified, work is a matter of managers giving instructions and workers
following them - but (and even under slavery we recognize that different
'managing' produces very different results) the variety of 'forms' which have
evolved to regulate the conduct of parties (i.e. laws, custom and practice,
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observances, agreements) makes the giving and receipt of instructions far from
simple. Two types of 'rule' have evolved:
'Substantive', determining basic pay and conditions ofservice (what rewards workers should receive);
'Procedural,' determining how workers should be treated andmethods and procedures.
Determining these rules are many common sense matters like: Financial, policy
and market constraints on the parties (e.g. some unions do not have the finance to
support industrial action, some have policies not to strike, some employers are
more vulnerable than others to industrial action, some will not make changes
unless worker agreement is made first, and rewards always ultimately reflect what
the market will bear);
Broadly in the Western style economies the parties (workers and employers) are
free to make their own agreements and rules. This is called 'voluntarism'. But it
does not mean there is total noninterference by the government. That is necessary
to:
Protect the weak (hence minimum wage); Outlaw discrimination (race or sex); Determine minimum standards of safety, health, hygiene
and even important conditions of service; To try to prevent the abuse of power by either party.
Function 6: Provision of employee services
Attention to the mental and physical well-being of employees is normal in many
organizations as a means of keeping good staff and attracting others.
The forms this welfare can take are many and varied, from loans to the needy to
counseling in respect of personal problems.
Among the activities regarded as normal are:
Schemes for occupational sick pay, extended sick leave andaccess to the firm's medical adviser;
Schemes for bereavement or other special leave; The rehabilitation of injured/unfit/ disabled employees and
temporary or permanent move to lighter work;
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The maintenance of disablement statistics and registers(there are complicated legal requirements in respect ofquotas of disabled workers and a need for 'certificates'where quota are not fulfilled and recruitment must take
place); Provision of financial and other support for sports, social,
hobbies, activities of many kinds which are work related; Provision of canteens and other catering facilities; Possibly assistance with financial and other aid to employees
in difficulty (supervision, maybe, of an employee managedbenevolent fund or scheme);
Provision of information handbooks, Running of pre-retirement courses and similar fringe
activities; Care for the welfare aspects of health and safety legislation
and provision of first-aid training.
Function 7: Employee education, training and development
In general, education is 'mind preparation' and is carried out remote from the actual
work area, training is the systematic development of the attitude, knowledge, skill
pattern required by a person to perform a given task or job adequately and
development is 'the growth of the individual in terms of ability, understanding and
awareness'.
Within an organization all three are necessary in order to:
Develop workers to undertake higher-grade tasks; Provide the conventional training of new and young workers
(e.g. as apprentices, clerks, etc.); Raise efficiency and standards of performance;
Meet legislative requirements (e.g. health and safety); Inform people (induction training, pre-retirement courses,
etc.);
Evaluation of the effectiveness of training is done to ensure that itis cost effective, to identify needs to modify or extend what isbeing provided, to reveal new needs and redefine priorities and
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most of all to ensure that the objectives of the training are beingmet.
Developing a HRM strategy
Faced with rapid change organizations need to develop a more focused and
coherent approach to managing people. In just the same way a business requires a
marketing or information technology strategy it also requires a human resource or
people strategy.
In developing such a strategy two critical questions must be addressed.
What kinds of people do you need to manage and run yourbusiness to meet your strategic business objectives?
What people programs and initiatives must be designed andimplemented to attract, develop and retain staff to competeeffectively?
In order to answer these questions four key dimensions of an organization must be
addressed. These are:
Culture: the beliefs, values, norms and management style ofthe organization
Organization: the structure, job roles and reporting lines of
the organization People: the skill levels, staff potential and management
capability Human resources systems: the people focused mechanisms
which deliver the strategy - employee selection,communications, training, rewards, career development, etc.
Frequently in managing the people element of their business senior managers will
only focus on one or two dimensions and neglect to deal with the others. Typically,
companies reorganize their structures to free managers from bureaucracy and drive
for more entrepreneurial flair but then fail to adjust their training or reward
systems.
There are seven steps to developing a human resource strategy and the active
involvement of senior line managers should be sought throughout the approach
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Steps in developing HRM strategy
Step 1: Get the 'big picture'
Understand your business strategy.
Highlight the key driving forces of your business. What are they? e.g. technology,
distribution, competition, the markets.
What are the implications of the driving forces for the peopleside of your business?
What is the fundamental people contribution to bottom linebusiness performance?
Step 2: Develop a Mission Statement or Statement of Intent
That relates to the people side of the business.
Do not be put off by negative reactions to the words or references to idealistic
statements - it is the actual process of thinking through the issues in a formal and
explicit manner that is important.
What do your people contribute?
Step 3: Conduct a SWOT analysis of the organization
Focus on the internal strengths and weaknesses of the people side of the business.
Consider the current skill and capability issues.
Vigorously research the external business and market environment. High light the
opportunities and threats relating to the people side of the business.
What impact will/ might they have on business performance?
Consider skill shortages? The impact of new technology on staffing levels?
From this analysis you then need to review the capability of your personnel
department. Complete a SWOT analysis of the department - consider in detail the
department's current areas of operation, the service levels and competences of your
personnel staff.
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Step 4: Conduct a detailed human resources analysis
Concentrate on the organization's COPS (culture, organization, people, HR
systems)
Consider: Where you are now? Where do you want to be? What gaps exists between the reality of where you are now
and where you want to be?
Exhaust your analysis of the four dimensions.
Step 5: Determine critical people issues
Go back to the business strategy and examine it against your SWOT and COPS
Analysis
Identify the critical people issues namely those people issuesthat you must address. Those which have a key impact onthe delivery of your business strategy.
Prioritize the critical people issues. What will happen if youfail to address them?
Remember you are trying to identify where you should be focusing your efforts
and resources.
Step 6: Develop consequences and solutions
For each critical issue highlight the options for managerial action generate,
elaborate and create - don't go for the obvious. This is an important step as
frequently people jump for the known rather than challenge existing assumptions
about the way things have been done in the past. Think about the consequences of
taking various courses of action.
Consider the mix of HR systems needed to address the issues. Do you need to
improve communications, training or pay?
What are the implications for the business and the personnel function?
Once you have worked through the process it should then be possible to translate
the action plan into broad objectives. These will need to be broken down into the
specialist HR Systems areas of:
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employee training and development management development organization development performance appraisal
employee reward employee selection and recruitment manpower planning communication
Develop your action plan around the critical issues. Set targets and dates for the
accomplishment of the key objectives.
Step 7: Implementation and evaluation of the action plans
The ultimate purpose of developing a human resource strategy is to ensure that theobjectives set are mutually supportive so that the reward and payment systems are
integrated with employee training and career development plans.
There is very little value or benefit in training people only to then frustrate them
through a failure to provide ample career and development opportunities
Who Performs HRM Activities
Delegation of HRM duties has changed over time. In mostorganizations two Groups perform HRM activities: HR manager-specialists and operating managers. Operating managers(supervisors, department heads, vice presidents) are involved inHRM activities because they are responsible for effectiveutilization ofall the resources at their disposal. The humanresource is a very special kind of resource. If it is improperlymanaged, effectiveness declines more quickly than with otherresources. And in all but the most capital- intensive organizations,the investment in people has more effect on organizationaleffectiveness than resources such as money, materials, andequipment. Therefore, operating managers spend considerabletime managing people. Just as an operating manager is personallyresponsible if a machine breaks down and production drops, he orshe must see to the training, performance, and satisfaction of
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employees. Research indicates that a large part of an operatingmanagers day is spent in unscheduled and scheduled meetings,telephone conversations, and solving problems that have a directimpact on people. The manager, through constant contact with
many different people, attempts to solve problems, reachdecisions, and prevent future difficulties.Smaller organizations usually have no HR unit, so the operatingmanagers have many HRM responsibilities, such as schedulingwork, recruitment and selection, and compensating people. As theorganization increases in size, the operating managers work isdivided up, and some of it becomes specialized. HRM is one suchspecialized function. Usually the manager of a unit first assigns anassistant to coordinate certain HRM matters. HR specialists areemployed in organizations with about 100 to 150 employees, and
an HR department is typically created when the number ofemployees reaches 200 to 500, depending on the nature of theorganization.The Interaction of Operating and HR ManagersWith two groups of people (operating managers and HRspecialists) making HRM decisions, there can be conflict. Conflictoccurs because operating and HR managers sometimes differ onwho has authority for what decisions, or there may be otherdifferences between operating and HR managers. They have
different orientations, called line and staff, which have differentobjectives. A staffperson typically supports the primary functionssuch as marketing and production by providing advice, counsel,and information. The picture of organizational life portrayed by atextbook assumes that the staff does not wield direct authorityover the line manager. Line managers have the authority to makefinal decisions concerning their operations. However, the specificdistinction between line andstaff is not as clear-cut in actual organizations. More often thannot, members of the HR unit have much to say about variousprograms and activities. Consider recruitment and selectionpractices and the crucial role played by HR specialists. Linemanagers are generally not familiar with the legal requirementsconcerning recruitment and selection. Therefore, they welcomethe HR experts involvement and direct authority in making finaldecisions. The conflict between HR employees and operating
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managers is most pressing when there must be joint decisions onsuch issues as discipline, physical working conditions,termination,transfer, promotion, and employment planning. Research
indicates that operatingmanagers and HR specialists differ on how much authorityemployees should have over job design, labor relations,organizational planning, and certain rewards, such as bonusesand promotions. In the last decade, sweeping changes inbusiness, globalization, technology, and demography havechanged not only the role of HRM, but the role of operatingmanagers as well. Line managers now have greaterresponsibilities, managing more people and/or bigger projects
RELATIONSHIP BETWEEN HR STRATEGIES,OBJECTIVES,PLANS AND
POLICIES
HRM StrategyA firms HRM strategy is the pattern or plan that integrates themajor objectives, policies, and procedures into a cohesive whole.A well-formulated HRM strategy will help aggregate and allocate afirms resources into a unique entity on the basis of its internalstrengths and weaknesses, changes in the environment, and theanticipated actions of competitors.
The firm strongly believes that training and development of itsemployees helps the firm accomplish its strategy accomplishmentindicatorscustomer satisfaction and sustainable corporategrowth.
Clarifying Meaningful HRM ObjectivesThe objectives of an organization or department are the goals it
seeks to achieveits reason for existence. Eight objectives of theHRM function have already been pointed out, but most of theseobjectives were stated in very general terms.
To help the organization achieve these objectives, more specificstatements are developed in larger, most middle-sized, and somesmaller organizations. For example, suppose that one of a numberofHRM objectives is to increase employees satisfaction with
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opportunities for advancement. How can this objective beachieved? First, management must measure employeessatisfactionwith advancement opportunities. Management could design an
attitude survey toask employees how satisfied they are with facets of their jobs.The key issue is to determine the degree of job satisfactionassociated with advancement opportunities. Next, theorganization could use the survey information to develop plans tocorrect any deficiencies in satisfaction with advancementopportunities. These plans are calledpolicies andprocedures orrules.
Exhibit 1-2, which illustrates the relationship between objectives,
policies,and rules, indicates that objectives are the most general factor.
StrategyThe plan that integrates majorobjectives
ObjectivesGoals that are specific and
measurable
PoliciesGuides to decision making
Procedures/RulesSpecific directions for decision
HRM Policy
A policy is a general guide that expresses limits within whichaction should occur. Policies are developed from past problemareas or for potential problem areas that management considersimportant enough to warrant policy development. Policies freemanagers from having to make decisions in areas in which theyhave less competence or on matters with which they do not wish
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to become involved. Policies ensure some consistency in behaviorand allow managers to concentrate on decisions in which theyhave the most experience and knowledge.After the broadest policies are developed, some organizations
develop procedures and rules. These are more specific plans thatlimit the choices of managers and employees, as. Procedures andrules are developed for the same reasons as policies.
HRM Procedures
A procedure or rule is a specific direction to action. It tells amanager how to do a particular activity. In large organizations,procedures are collected and put into manuals, usually calledstandard operating procedures (SOPs). Organizations must be
careful to have consistent decision making that flows from a well-eveloped, but not excessive, set of policies and procedures. Someorganizations, ineffect, eliminate managerial initiative by trying to develop policiesand procedures for everything. Procedures should be developedonly for the most vital areas
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