Hrm 3s5n38

HRM HR – Humans as resources. Managing Human Resources is HRM. PEOPLE (HR)

ORGANIZATION

(Bringing together to meet) GOALS People need organizations and organizations need people. HRM is the process – the process of bringing together people and organizations to meet the goals. HR mainly is concerned about PROCRURING, DEVELOPING AND MAINTAINING - the manpower as competent workforce achieve the goals of an organization in an effective and efficient manner. HR can play a leadership role in making the organizations meet the competitive challenges. Modernizations lead to meet competitive challenges like: 1. Globalization: expanding global markets. 2. Profitability: It is through growth using downsizing, re-engineering, increasing efficiency, cutting costs. 3. Technology: Making use of latest developing Technologies. 4. Intellectual capital: Retaining talented individuals. 5. Change: embracing the non-stop change. Challenge for HR - Recognizing the talent, maintaining the talented and achieving significant gains. Eg. Choosing from young vs. old, knowledge vs. skills, education vs. experience, intelligent vs. commitment to job etc. HR professionals play a key role in planning and implementing downsizing, restructuring and other cost-cutting activities. They enable a firm to be more responsive to product innovations and technological changes. EMPLOYEES are primary pillars of organization’s success (as machines can neither have new ideas nor can solve problems or grasp opportunities). HR is mainly responsible for organizational Architecture. The Seven components of it are Strategy, Structure, Systems, Staff, Style, Skills and Shared values HR manager should first know that: • HR is heterogeneous – different individuals – so different personalities (attitudes, values, motives, thoughts etc). • Humans behave differently – not consistent hence not predictable.

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People now are better educated, have greater skills, have latest technologies and enjoy higher standards of living. • If motivated, they will work more efficiently and effectively. Thus manager has to recognize that individuals and not organizations create excellence. Purposes/Uses of HRM: 1. It is pervasive. HRM is present in all organizations and at all levels. 2. It is action oriented - not just keeping records or having written rules. 3. It is individual oriented – motivates and concentrates on each person. 4. It is people oriented – concentrates on group work for productivity. 5. It is development oriented – concentrates on each individual’s development through training and rewards. 6. It integrates – builds and maintains cordial relations at all levels. 7. It has comprehensive function – develops potentialities to get maximum satisfaction. 8. It renders auxiliary services – assists and advises line managers. 9. It has inter – disciplinary function – works with other branches to help their personnel. 10. It has a continuous function – constant efforts in day to day operations. Functions of HRM: • HR planning • Recruitment • Selection • Placement • Orientation • Training and Career Development • Labor relations • Managing Performance Appraisal • Compensation • Benefit programmes and development of personnel policies and procedures HRM in India: Apart from varied cultural, social and religious backgrounds, HR has to also deal with the Government regulations, competitive pressures, unionizations of employees etc. The whole of HR functions are broadly affected by external and internal factors. EXTERNAL FACTORS INTERNAL FACTORS Technological factors Economic Challenges Political factors Social factors Local and Governmental issues Unions Employer’s demands Workforce diversity

Mission Policies Organizational culture Organizational structure HR systems

Each of these factors separately or in combination can influence the HR function of any organization. Faddism – Fad is a management theory but dies in short span of time. Example: A Fad in terminology; Labor Management was renamed as Personnel Management – then as Human Resource Management – then as Human Resource Development – as Human Potential Development and now it is simply Human Resource. Guidelines to improve HRM: Few guidelines to improve HRM are by; • Developing people – training ,career development etc • Grooming future talent – boosting up fresh graduates etc • Employees deployment – multiple skilled persons can be preferred and used accordingly • Build employee communities – for internal mobility, it gives opportunity for career growth, is cost effective and boosts morale • Turn managers into coaches – fresh MBA holders are inexperienced so it is the best coaching style – motivates, improves productivity, moral and retention, builds trust and confidence, builds genuine bonds etc. *** Pages 26 & 27, tables1&2 are important (Booklet 1). - Differences between Traditional Personnel Function (TPF) and Human Resource Development (HRD) and - Four fold objectives of HRM (Societal, Organizational, Functional and Personal) Functions of HR: Major functions are Planning, Staffing, Employee development and Employee maintenance. Every HR department basically should have three objectives: 1. To effectively utilize HR 2. To have desirable working relationships and 3. To work for maximum individual Development. • • • • • • • • •

Human Resource Planning: The number of employees, Type of employees needed for a task and predicting future requirement. Job Analysis: Describing the nature of the job, specifying the requirements. Staffing: Recruiting (attracting qualifying applicants) and selecting (hiring from among those attracted) Orientation: Acquainting new employees to others in the firm Training and Development: To improve skills and knowledge of employees to perform more effectively. Performance appraisal: Monitors employee performance. It is essential to motivate and guide the employees. Career Planning: For growth and advancement in career. Compensation: Pay is related to maintenance of HR. It is important to motivate and get high performance outcome. Benefits: Constitutes both legally required items and employer’s discreted items other than pay.

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Labor relations: Interaction with employees represented by a union to solve various problems like wages, service conditions, resolving disputes, grievances etc. Record keeping: Recording, maintaining, and retrieving information. Eg, application forms, health and medical records, employment history, seniority list, earnings, hours of work, turnover, and such other employee data. Personnel Research: Research is very important. It can be done in any of the above areas.

Evolution of HRM: Peter Drucker and Douglas McGregor in 1950 have laid its formal foundation. Gupta in 1997 developed it through the following stages: 1. The commodity concept: Labor began to be considered a commodity to be bought and sold. 2. The factor of production concept: Employees as a factor of production were properly selected and trained to maximize productivity. 3. The paternalistic concept: Employees formed unions based on common interests and employers assured a protective (fatherly) attitude towards their employees. 4. The humanitarian concept: Employees as humans have certain inalienable rights. It is employers’ duty to protect it (also known as human relations concept). 5. The behavioral human resource concept: It aimed at analyzing and understanding human behavior in organizations. 6. The emerging concept: Now HRM is emerging as a discipline as employers’ are considered as partners in industry. Importance of HRM: It is the central sub system of an organization (Gupta 1997). B A

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D Its importance is seen in four levels: 1. At Corporate level 2. Professional level 3. Social level and at 4. National level. Scope of HRM: IIPO (Indian Institute of Personal Management) described its scope in three aspects; 1. The labor or personnel aspect( concerning recruitment, selection, promotion, training, salary etc) 2. The welfare aspect( concerning working conditions, amenities etc)

3. The industrial relations aspect( concerning workers-management relations, disputes etc) Perspectives of HRM: HRM can be examined from several perspectives; 1. Historical perspective: Based on evolution of HRM ( from past to recent trends) 2. Environmental perspective: Tracks the external forces that continuously come to bear on HR 3. Strategic perspective: Clarifies the role of HRM in the strategy of the organization 4. Political perspective: Shows to what extent one can maximize their self interest, which may not reflect the interest of the organization 5. International perspective: Highlights the problems and opportunities that HRM has to face to meet the global market and 6. Evaluation perspective: Shows the ways in which HR activities can be evaluated to meet the organization’s goals. Components of HRM: Major components of HRM according to Sarma 1998 are: • • • • • • • •

HR Organization: Achieving success by organization design and development in all aspects. HR Planning: How many and what type of people organization wants. HR System: Programmes to recruit, appraise, payment, health etc. HR Development: Quality work growth, individual growth – both taken care in all angles, so training, developing, education etc. HR Relationships: Handling employees individually and collectively. HR Utilization: Achieving productivity through people in good . HR ing: Measuring cost and value of people. HR Audit: Assessing effectiveness of HR.