HUMAN RESOURCE MANAGEMENT - NATURE, SCOPE, OBJECTIVES AND

FUNCTION

Human resources may be defined as the total knowledge, skills, creative abilities,
talents and aptitudes of an organization’s workforce, as well as the values, attitudes,
approaches and beliefs of the individuals involved in the affairs of the Organization. It is the
sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the
talents and aptitudes of the persons employed ¡n the organization.
The human resources are multidimensional in nature. From the national point of view,
human resources may be defined as the knowledge, skills, creative abilities, talents and
aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise,
they represent the total of the inherent abilities, acquired knowledge and skills as exemplified
in the talents and aptitudes of its employees.

HUMAN RESOURCE MANAGEMENT: DEFINED

Human Resource Management has come to be recognized as an inherent part of

management, which ¡s concerned with the human resources of an organization. Its objective
is the maintenance of better human relations ¡n the organization by the development,
application and evaluation of policies, procedures and programs relating to human resources
to optimize their contribution towards the realization of organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration of
people. it ¡s an integral but distinctive part of management, concerned with people at work
and their relationships within the enterprise. HRM helps in attaining maximum individual
development, desirable working relationship between employees and employers, employees
and employees, and effective modeling of human resources as contrasted with physical
resources. It is the recruitment, selection, development, utilization, compensation and
motivation of human resources by the organization.

HUMAN RESOURCE MANAGEMENT: EVOLUTION

The early part of the century saw a concern for improved efficiency through careful
design of work. During the middle part of the century emphasis shifted to the employee’s
productivity. Recent decades have focused on increased concern for the quality of working
life, total quality management and worker’s participation ¡n management. These three phases
may be termed as welfare, development and empowerment.

HUMAN RESOURCE MANAGEMENT: NATURE

Human Resource Management is a process of bringing people and organizations

together so that the goals of each are met. The various features of HRM include:
1. It is pervasive in nature as it is present in all enterprises.
2. Its focus is on results rather than on rules. It tries to help employees develop their
potential fully.
3. It encourages employees to give their best to the organization.
4. It is all about people at work, both as individuals and groups.
5. It tries to put people on assigned jobs in order to produce good results.
6. It helps an organization meet its goals in the future by providing for competent and
well-motivated employees.
7. It tries to build and maintain cordial relations between people working at various
levels in the organization.
8. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from
psychology, economics, etc.
HUMAN RESOURCE MANAGEMENT: SCOPE

The scope of HRM is very wide:

1. Personnel aspect- This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration,
incentives, productivity etc.
2. 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.
3. industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.

HUMAN RESOURCE MANAGEMENT: BELIEFS

The Human Resource Management philosophy is based on the following beliefs:

1. Human resource is the most important asset in the organization and can be developed
and increased to an unlimited extent.
2. A healthy climate with values of openness enthusiasm, trust, mutually and
collaboration is essential for developing human resource.
3. HRM can be planned and monitored in ways that are beneficial both to the individuals
and the organization.
4. Employees feel committed to their work and the organization, if the organization
perpetuates a feeling of belongingness.
5. Employees feel highly motivated it the organization provides for satisfaction of their
basic and higher level needs.
6. Employee commitment is increased with the opportunity to dis-’cover and use one’s
capabilities and potential in one’s work.
7. It is every manager’s responsibility to ensure the development and utilization of the
capabilities of subordinates.

HUMAN RESOURCE MANAGEMENT: OBJECTIVES

1. To help the organization reach its goals.

2. To ensure effective utilization and maximum development of human resources.
3. To ensure respect for human beings. To identify and satisfy the needs of individuals.
4. To ensure reconciliation of individual goals with those of the organization.
5. To achieve and maintain high morale among employees.
6. To provide the organization with well-trained and well-motivated employees.
7. To increase to the fullest the employee’s job satisfaction and self-actualization.
8. To develop and maintain a quality of work life.
9. To be ethically and socially responsive to the needs of society.
10. To develop overall personality of each employee ¡n its multidimensional aspect.
11. To enhance employee’s capabilities to perform the present job.
12. To equip the employees with precision and clarity In trans-action of business.
13. To inculcate the sense of team spirit, team work and inter-team collaboration.

HUMAN RESOURCE MANAGEMENT: FUNCTIONS

In order to achieve the above objectives, Human Resource Management undertakes the
following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
 4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by providing incentives.
13. Reviewing and auditing man-power management in the organization
14. Potential Appraisal. Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of Working Life.

HUMAN RESOURCE MANAGEMENT: MAJOR INFLUENCING FACTORS

In the 21st century HRM will be influenced by following factors, which will work as
various issues affecting its strategy:
1. Size of the workforce.
2. Rising employees’ expectations
3. Drastic changes in the technology as well as Lite-style changes.
4. Composition of workforce. New skills required.
5. Env1r0nm1taI challenges.
6. Lean and mean organizations.
7. Downsizing and rightsizing of the organizations.
8. Culture prevailing in the organization etc.

HUMAN RESOURCE MANAGEMENT: FUTURISTIC VISION

On the basis of the various issues and challenges the following suggestions will be of
much help to the philosophy of HRM with regard to its futuristic vision:
1. There should be a properly defined recruitment policy in the organization that should
give its focus on professional aspect and merit based selection.
2. In every decision-making process there should be given proper weightage to the aspect
that employees are involved wherever possible. It will ultimately lead to sense of team
spirit, team work and inter-team collaboration.
3. Opportunity and comprehensive framework should be provided for full expression of
employees’ talents and manifest potentialities.
4. Networking skills of the organizations should be developed internally and externally as
well as horizontally and vertically.
5. For performance appraisal of the employee’s emphasis should be given to 360 degree
feedback which is based on the review by superiors, peers, subordinates as well as self-
review.
6. 360 degree feedback will further lead to increased focus on customer services, creating
of highly involved workforce, decreased hierarchies, avoiding discrimination and
biases and identifying performance threshold.
7. More emphasis should be given to Total Quality Management. TQM will cover all
employees at all levels; ¡t will conform to customer’s needs and expectations; ¡t will
ensure effective Utilization of resources and will lead towards continuous
improvement in all spheres and activities of the organization.
8. There should be focus on job rotation so that vision and knowledge of the employees
are broadened as well as potentialities of the employees are increased for future job
prospects. For proper utilization of manpower in the concept of six sigma of improving
productivity should be intermingled in the HRM strategy.
 9. The capacities of the employees should be assessed through potential appraisal for
perform1 new roles and responsibilities, It should not be confined to organizational
aspects only but the environmental changes of political, economic and social
considerations should also be taken into account.
10. The career of the employees should be planned in such a way that individualizing
process and socializing process come together for fusion process and career planning
should constitute the part of human resource planning.

To conclude Human Resource Management should be linked with strategic goals and
objectives in order to improve business performance and develop organizational cultures that
foster innovation and flexibility. All the above futuristic visions coupled with strategic goals
and objectives should be based on 3H’s of Heart, Head and Hand. i.e. we should feel by Heart,
think by Head and implement by Hand.

Reference:

NOSTRATIS, ROSALIE S. 2014.

PERSONNEL PROGRAMS AND POLICIES

What is a Personnel Program?

Is planned personnel management – a collection of policies and plans
covering different aspects of employer-employee relationships.
It is also a two-way communication between the employer and
employees. It communicates to the workers these aims of the employer:
1. Freedom to manage his business
2. To provide the public with the desired goods and services thus
increasing the income of the company for the benefit of his
employees, th community and the government
3. To Maintain businesslike and responsible relations with his
employees and his customers

On the other hand, management should recognize the desire of every

worker for: 1. Job security
2. Opportunities to learn the job and grow with the company
3. Good working conditions
4. Treatment as a human being
5. Good supervisors
 6. Opportunity for training, development and advancement
7. Fair wages and salaries
8. Sound employee benefits and services

The Personnel Program

Covers five areas, namely:
1. Acquiring competent personnel
2. Holding and retaining competent employees
3. Developing and motivating employees
4. Labor and human relations
5. Efficient programs administration and adequate budget

For a Personnel Program to be effective and successful:

1. It must have the full support of top management with adequate budget 2. The
program must be formulated to meet the needs of the organization
and its objectives.
3. As a guide for executive leadership, it must gain the cooperation
and confidence of managers and supervisors in its implementation .
4. The program must motivate employees for greater achievement
5. The firm must have a workable organizational structure

6. Efficient Administration by a capable personnel administator

Policies and Procedures

What is Policy?
Has been defined as a general plan of action that serves as a guide in the operation
of a company. All the policies of a company make up the basic framework of
management decisions which set the course the company is to follow.
Why Policies are needed?
1. To give life and direction to the program of activities covering the needs of
the organization and its human resources

2. To provide definite guidelines to achieve consistent treatment of all

employees.
3. Policies serve as standards of performance.
4. Policy statements are needed to allow subordinate executives to make fair and
consistent decisions on recurring problems.
5. To help build employee enthusiasm and loyalty.

Problems in Policy-Making
Since policies are man-made and are to be made applicable to different situations
and to individuals differing in many ways, they are not always perfect .
Types of Policies
1. Originated Policy
Comes from the board of directors or the president and is intended to set up
guidelines in the operation of the firm.

2. Appealed Policy
Is born when problems arise at the lower levels of the organizations and the
man in charge does not know how to meet the problem.

3. Imposed Policy
Comes from the government in the form of laws, administative orders, and rules
and procedures or contract specifications.

Administration of Personnel Policies

The implementation of personnel policies i the responsibility of the line
managers in their respective departments with the assistance of the personnel
manager and his staff. The effectiveness of personnel policies ultimately
depends on the personnel manager’s ability to translate them at the operation al
leave through the line managers and supervisors.

Various Means Used by companies to communicate personnel

policies to employees:

1. Employee Handbooks
2. Policy Manual
3. Memoranda and Circulars
4. Company Bulletin Boards
5. Meetings or Conferences

What are Company Rules?

Rules are specific guides intended to govern conduct or action and are aimed to
guide operating supervisors and employees in the performance of their designated
activities. They are the rules with penalties attached, by which these activities are
enforced.
Example of a rule on unauthorized absences:
First Offense - Admonition
Second Offense - Written warning
Third Offense - Suspension for 6 days
Fourth Offense - Dismissal

The Cost of Personnel Services

Data on Personnel that are generally required are the following:
1. Personnel strength projections
2. Rate of Turn over
3. Rate of tardiness and absenteeism
4. Computation and conversion of income rates
5. Rate of accidents, expenditures for EEC and th effect of safety program to
cost of operations
6. Rate of illness and medical medical costs.
7. Consist of employee benefits and its relationship with payrolls
8. Manpower losses due to non-productive time because of
absenteeism, tardiness, maternity leave, sick leave, vacation leave,
accident leave, or other calamities
9. Projection of manpower requirements
1.Expenditure for SSS, Medicare, Maternity and State Employees’
Compensation Fund
11. Labor cost of non-productive time due to emergencies like typhoons, floods, and
non-work days but companies are required to pay

Personnel Staff Ratio

In determining the size of the staff of the personnel department in terms of the number
of employees to be served, the basis is roughly the ratio of one staff personnel for
every 100 employees in the company. In actual practice, there is no rule of thumb to
determine the number of employees in the personnel department since there is much
diversity in the functions and services to be performed.

References:

Personnel and Human Resources Management by Perfecto S. Sison

https://smallbusiness.chron.com