Human Resource Management

Meaning of Human Resources According to Leon C.Magginson, the term human resources can be thought of as, the total knowledge, skills, creative abilities, talents and aptitudes of an organisations workforce, as well as the value, attitudes and beliefs of the individuals involved.
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Human Resource Management

Meaning of Human Resources
Indian Institute of Personnel Management: Personnel Management is a responsibility of all those who manage people As well as being a Description of the work of those who are employed as specialists. It is that part of management Which is concerned with people at work And with their relationship within an enterprise. It applies not only to industry and commerce but to all the fields of employment.
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Personnel Vs Human Resources

Personnel Management
1. Personnel means persons employed. Personnel management is the management people employed. 1.

Human Resource Management

Human Resource management is the management of employees skills, of people Knowledge, abilities, talents, aptitudes, creative abilities etc. 2.Employee in personnel management is mostly 2. Employee in Human Resource management treated as an economic man as his is treated not only as economic man but also services are exchanged for salary/wages. as social and psychological man. Thus, the complete man is viewed under this approach. 3. Employee is viewed as a commodity or tool 3. Employee are treated as a resource. Or equipment which can be purchased and used. 4. Employees are treated as cost centre and 4. Employees are treated as profit centre and therefore management controls the cost of therefore, invests capital for human resource labour. development and future utility. 3 5. Employees are used mostly for organisational 5. Employees are used for the multiple mutual benefit. Benefit of the organisation,employees and

Functions of HRM
Human Resources management consists of several inter-related functions. These functions are common to all organizations. Basically the function of HRM may be divided into two categories. Managerial functions and Operating functions

Managerial functions
Planning Organizing Directing Controlling
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Operative Functions
The operative functions of Human Resources management can be discussed in the following: 1. Procurement Function
Job Analysis Human Resource Planning Recruitment Selections Placement Induction or Orientation

2.Development Function
Training Executive Development Performance and Potential Appraisal Career Planning and Development

3. Compensation Function: Job Evaluation Wage and Salary administration Bonus 4. Integration Function Collective bargaining Conflict resolution Employee counseling Providing Job satisfaction Workers participation in management Improving quality of work life Developing sound human relations etc. 5. Maintenance Function It is mainly concerned with promoting and protecting the physical and mental health of employees such as medical aids, educational facilities, conveyance facilities, provident fund, pension, gratuity, group insurance etc.
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Nature of HRM
Pervasive force Action Oriented Individually Oriented People Oriented Future Oriented Development Oriented Integrating Mechanism Comprehensive function Auxiliary service Inter disciplinary function Continuous function
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Objectives of HRM
To help the organisation reach its goals To employ the skills and abilities of the workforce efficiently To provide the organisation with well trained and well motivated employees To increase to the fullest the employees job satisfaction and self actualisation To develop and maintain a quality of work life To communicate HR policies to all employees To be ethically and socially responsive to the needs of society
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Objectives of HRM
Societal To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation. Organisational To recognise the role of HRM in bringing about organisational effectiveness.
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Objectives of HRM
Functional To maintain the departments contribution at a level appropriate to the organisations needs. Personal To assist employees in achieving their personal goals, at least insofar as these goals enhance the individuals contribution to the organisation.

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Scope of HRM
The scope of HRM is very wide. The Indian Institute of Personnel management has specified the scope of HRM thus:

Personnel aspect: Manpower planning Recruitment Selection Placement Transfer Promotion Training and development Retrenchment Remuneration Incentives Productivity etc.
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Scope of HRM
Welfare aspect: Canteens Crches Rest and lunch rooms Housing Transport Medical assistance Education Health and safety
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Scope of HRM
Industrial relation aspect: Union-management relations Joint consultation Collective bargaining Grievances and Disciplinary procedures Settlement of dispute etc.

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Role of HR Manager in an Organisation

Ideally, the HR manager should concentrate on drawing managerial attention to human problems. Just as finance assesses costs, marketing emphasises customers, personnel is people centred. Success of a HR manager depends on the degree of contribution to solve management problems in dealing with human resources in the organisation. Some of the important roles of HR manager in an organisation in addition to the managerial & operative functions are discussed below. policy initiation Linking pin role Decision making role Leadership role Research role Advisory role Representative role Mediator role Welfare role
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Role of HR Manager in an Organisation

Ideally, the HR manager should concentrate on drawing managerial attention to human problems. Just as finance assesses costs, marketing emphasizes customers, personnel is people centred. Success of a HR manager depends on the degree of contribution to solve management problems in dealing with human resources in the organisation. Some of the important roles of HR manager in an organisation in addition to the managerial & operative functions are discussed below. policy initiation Linking pin role Decision making role Leadership role Research role Advisory role Representative role Mediator role Welfare role
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History of HRM
The field of HRM as it currently exists, represents a crystallization of a variety of historical factors.
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The Industrial revolution:

During this period machines were bought in; technology made rapid progress; jobs were more fragmented where the worker did only a small portion of the total job; and specialisation increased speed and efficiency but left workers with dull, boring and monotonous jobs. Employers were keen to meet production targets rather than satisfy workers demands. Government did very little to protect the interests of workers.
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2. Scientific management
To improve efficiency and speed F W Taylor advocated scientific management. Scientific management emphasizes that managers and industrial engineers should develop the best way to perform each job, people should be trained to perform each job in the best way and management and workers should cooperate so that the job is performed in the desired manner. Frederick W.Taylor is known as the Father of Scientific management Taylor stressed the importance of employee welfare as well as production efficiency. To boost up productivity, wage incentives based on performance (differential price rate system) were introduced. The emphasis was on maximum output with minimum effort through elimination of waste and inefficiency at the shop floor- level. 17

3. Trade unionism:
Workers joined hands to protect against the exploitative tendencies of employers and the prohibitive, unfair labour practices through unions. Unions tried to improve the lot of workers through collective bargaining, resolving the grievances of workers relating to working conditions, pay and benefits, disciplinary actions etc.

4. Human relations movement:

The famous Hawthorne experiments conducted by Elton Mayo and his Harvard colleagues during 1930s and 1940s demonstrated that employee productivity was affected not only by the way the job was designed and the manner in which employees were rewarded economically; but by certain social 18 and psychological factors as well.

The human relation movement led to the wide scale implementation of behavioral science techniques in industry for the first time which included supervisory training programmes, emphasizing support and concern for workers , programmes to strengthen the bonds between labour and management and counseling programmes whereby employees were encouraged to discuss both work and personal problems with trained counsellors. The movement was also influenced by the growing strength of unions during late 1930s and 1940s. The rise of unionism during this period was due to the passage of Wagner act which gave workers the legal right to bargain collectively with employers over matters concerning, wages, job security, benefits and many other conditions of work.
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5. Human resource approach

However, during early 60s the pet milk theory, (advocating that happy workers are productive workers or happy cows give more milk) of human relationists had been largely rejected. Recognising the fact that workers are unique in their way - having individual needs. It was recognised that each employee is a unique and highly complex individual with different wants, needs and values. What motivates one employee may not motivate another and being happy or feeling good may have little or no impact on the productivity of certain employees. Slowly but steadily, the trend toward treating employees as resource or assets emerged. The Human Resource approach assumes that the job or the task itself is the primary source of satisfaction and motivation to employee. The emphasis in the human resource approach is on individual involvement in the decisions made in the organisation. 20

In addition, this approach emphasises the following things.

People do not inherently dislike work and if they are helped establish objectives they want to achieve them. Most people can exercise a great deal of more self direction, self control and creativity than are required in their current jobs. The mangers basic job is to use the untapped human potential in the service of the organisation. The manger should create a healthy environment wherein all subordinates can contribute to the best of their capacities. The environment should provide a healthy, safe, comfortable and convenient place to work. The manager should provide for self direction by the subordinates and they must be encouraged to participate fully in all important matters. Expanding subordinates influence, self direction and self control will lead to direct improvements in operating efficiency. Work satisfaction may improve as a by-product of subordinates 21 making full use of their potential.