INTRODUCTION TO Human resource management
INTRODUCTION To HRM
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INTRODUCTION To HRM:
An organization is made up of four resources, namely men, material, money and
machinery. Of these, the first one id living one, i.e. human resource and other three
are non-living i.e.non human. It is the human/people that make use of non human
resources. Hence, people are the most significant resources in an organization. It is
man who makes all the difference in organizations. L.F.Urwick had remarked that
“business houses are made or broken in the long run not by markets or capitals,
patents or equipments, but by men”. According to Peter F.Drucker, “ man, of all
the resources available to man, can grow and develop.”
Evolution and Growth of Human Resource Management -:
It is very interesting to trace out the evolution and growth of Human Resource Management.
People – The Principal Resource:
The principal resource of any organization is people and managing people is the most important and challenging aspect of an organization.
What we call human resource management today, dates back to 1800 b.c.,which is evident from the inscriptions of Babylonian code of Hammurabi and Kautilya’s Arthasashtra, which explains in detail the importance of selection, incentives, performance evaluation, quality of a manager and wage rates.
So,we understand that the concept of managing people has existed even in the previous eras through ancient literature and philosophy. India,China and Greece have been the origin points of human resource management concepts.
Evolution of Human Resource Management
Industrial Revolution:
Till, 1930’s, there was no such department called “personnel management” that was considered necessary to cater to the needs and welfare of the labor society.
The factory manager was acting as a link between the workers and the management, and most of the time he had to comply with the rules of the management to satisfy them, even if it were against the welfare of the workers.
Also proper attention was not given to areas like, worker safety, security and living conditions. Industrial revolution saw mass exodus of workers to urban areas in search of jobs.
Meaning of HRM:
An organization is made up of four resources, namely men, material, money and
machinery. Of these, the first one id living one, i.e. human resource and other three
are non-living i.e.non human. It is the human/people that make use of non human
resources. Hence, people are the most significant resources in an organization. It is
man who makes all the difference in organizations. L.F.Urwick had remarked that
“business houses are made or broken in the long run not by markets or capitals,
patents or equipments, but by men”. According to Peter F.Drucker, “ man, of all
the resources available to man, can grow and develop.”
Evolution and Growth of Human Resource Management -:
It is very interesting to trace out the evolution and growth of Human Resource Management.
People – The Principal Resource:
The principal resource of any organization is people and managing people is the most important and challenging aspect of an organization.
What we call human resource management today, dates back to 1800 b.c.,which is evident from the inscriptions of Babylonian code of Hammurabi and Kautilya’s Arthasashtra, which explains in detail the importance of selection, incentives, performance evaluation, quality of a manager and wage rates.
So,we understand that the concept of managing people has existed even in the previous eras through ancient literature and philosophy. India,China and Greece have been the origin points of human resource management concepts.
Evolution of Human Resource Management
Industrial Revolution:
Till, 1930’s, there was no such department called “personnel management” that was considered necessary to cater to the needs and welfare of the labor society.
The factory manager was acting as a link between the workers and the management, and most of the time he had to comply with the rules of the management to satisfy them, even if it were against the welfare of the workers.
Also proper attention was not given to areas like, worker safety, security and living conditions. Industrial revolution saw mass exodus of workers to urban areas in search of jobs.
Meaning of HRM:
Before we define HRM, it seems pertinent to first define the term ‘human resources’. In common parlance, human resources means the people. However, different management experts have defined human resources differently. For example, Michael J. Jucius has defined human resources as “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components”.
HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 – Integration
“HRM is a series of integrated decisions that form the employment relationships; their quality
contributes to the ability of the organizations and the employees to achieve their objectives.”
Definition 2 – Influencing
“HRM is concerned with the people dimensions in management. Since every organization is
made up of people, acquiring their services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. This is true, regardless of the
type of the organization – government, business, education, health, recreational, or social
action.”
Definition 3 – Applicability
“HRM planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished.”
MEANING OF HRM: -
HRM is management function that helps managers to recruit, select, train and develop members
for an organization. Obviously HRM is concerned with the people’s dimensions in organizations.
HRM refers to set of programs, functions, and activities designed and carried out
Core elements of HRM
• People: Organizations mean people. It is the people who staff and manage organizations.
• Management: HRM involves application of management functions and principles for
acquisitioning, developing, maintaining and remunerating employees in organizations.
• Integration & Consistency: Decisions regarding people must be integrated and
consistent.
• Influence: Decisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
• Applicability: HRM principles are applicable to business as well as non-business
organizations too, such as education, health, recreation and the like.
OBJECTIVES OF HRM: -
HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 – Integration
“HRM is a series of integrated decisions that form the employment relationships; their quality
contributes to the ability of the organizations and the employees to achieve their objectives.”
Definition 2 – Influencing
“HRM is concerned with the people dimensions in management. Since every organization is
made up of people, acquiring their services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. This is true, regardless of the
type of the organization – government, business, education, health, recreational, or social
action.”
Definition 3 – Applicability
“HRM planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished.”
MEANING OF HRM: -
HRM is management function that helps managers to recruit, select, train and develop members
for an organization. Obviously HRM is concerned with the people’s dimensions in organizations.
HRM refers to set of programs, functions, and activities designed and carried out
Core elements of HRM
• People: Organizations mean people. It is the people who staff and manage organizations.
• Management: HRM involves application of management functions and principles for
acquisitioning, developing, maintaining and remunerating employees in organizations.
• Integration & Consistency: Decisions regarding people must be integrated and
consistent.
• Influence: Decisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
• Applicability: HRM principles are applicable to business as well as non-business
organizations too, such as education, health, recreation and the like.
OBJECTIVES OF HRM: -
1. Societal Objectives: To be ethically and socially responsible to the needs and challenges
of the society while minimizing the negative impact of such demands upon the organization.
2. Organizational Objectives: To recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization with its
primary objectives.
3. Functional Objectives: To maintain department’s contribution and level of services at organisation
level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least in so
far as these goals enhance the individual’s contribution to the organization. This is necessary
to maintain employee performance and satisfaction for the purpose of maintaining, retaining
and motivating the employees in the organization.
SCOPE OF HRM: -
The scope of Human Resource Management refers to all the activities that come under the banner of Human Resource Management. These activities are as follows.
Human resources planning :- Human resource planning or Human Resource Planning refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage.
Job analysis design :- Another important area of Human Resource Management is job analysis. Job analysis gives a detailed explanation about each and every job in the company.
Recruitment and selection :- Based on information collected from job analysis the company prepares advertisements and publishes them in the newspapers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of Human Resource Management.
Orientation and induction :- Once the employees have been selected an induction or orientation program is conducted. This is
another important area of Human Resource Management. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees.
Training and development :- Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount.
Performance appraisal :- Once the employee has put in around 1 year of service, performance appraisal is conducted that is the Human Resource department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.
Compensation planning and remuneration :- There are various rules regarding compensation and other benefits. It is the job of the Human Resource department to look into remuneration and compensation planning.
Motivation, welfare, health and safety :- Motivation becomes important to sustain the number of employees in the company. It is the job of the Human Resource department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department.
Industrial relations :- Another important area of Human Resource Management is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.
ROLE OF HRM
1. AdvisoryRole: HRadvises management on the solutions to any problems affecting
people, personnel policies and procedures.
i. Personnel Policies: Organization Structure, Social Responsibility,
Employment Terms & Conditions, Compensation, Career & Promotion,
Training & Development and Industrial Relations.
ii. Personnel Procedures: Relating to manpower planning procedures,
recruitment and selection procedures, and employment procedures,
training procedures, management development procedures, performance
appraisal procedures, compensation procedures, industrial relations
procedures and health and safety procedures.
2. Functional Role: The personnel function interprets and helps to communicate personnel
policies. It provides guidance to managers, which will ensure that agreed policies are
implemented.
3. Service Role: Personnel function provides services that need to be carried out by full time
specialists. These services constitute the main activities carried out by personnel
departments and involve the implementation of the policies and procedures described
above.
Role of HR Managers (Today)
1. Humanitarian Role: Reminding moral and ethical obligations to employees
2. Counselor: Consultations to employees about marital, health, mental, physical and career, problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals
and groups and management.
4. Spokesman: To represent of the company because he has better overall picture of his
company’s operations.
5. Problem Solver: Solving problems of overall human resource management and long-term
organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing
organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labor-management relations.
Role of HR Managers (Future)
1. Protection and enhancement of human and non-human resources
2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce
Managerial Functions of HRM:
Job analysis design :- Another important area of Human Resource Management is job analysis. Job analysis gives a detailed explanation about each and every job in the company.
Recruitment and selection :- Based on information collected from job analysis the company prepares advertisements and publishes them in the newspapers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of Human Resource Management.
Orientation and induction :- Once the employees have been selected an induction or orientation program is conducted. This is
another important area of Human Resource Management. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees.
Training and development :- Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount.
Performance appraisal :- Once the employee has put in around 1 year of service, performance appraisal is conducted that is the Human Resource department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.
Compensation planning and remuneration :- There are various rules regarding compensation and other benefits. It is the job of the Human Resource department to look into remuneration and compensation planning.
Motivation, welfare, health and safety :- Motivation becomes important to sustain the number of employees in the company. It is the job of the Human Resource department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department.
Industrial relations :- Another important area of Human Resource Management is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.
ROLE OF HRM
1. AdvisoryRole: HRadvises management on the solutions to any problems affecting
people, personnel policies and procedures.
i. Personnel Policies: Organization Structure, Social Responsibility,
Employment Terms & Conditions, Compensation, Career & Promotion,
Training & Development and Industrial Relations.
ii. Personnel Procedures: Relating to manpower planning procedures,
recruitment and selection procedures, and employment procedures,
training procedures, management development procedures, performance
appraisal procedures, compensation procedures, industrial relations
procedures and health and safety procedures.
2. Functional Role: The personnel function interprets and helps to communicate personnel
policies. It provides guidance to managers, which will ensure that agreed policies are
implemented.
3. Service Role: Personnel function provides services that need to be carried out by full time
specialists. These services constitute the main activities carried out by personnel
departments and involve the implementation of the policies and procedures described
above.
Role of HR Managers (Today)
1. Humanitarian Role: Reminding moral and ethical obligations to employees
2. Counselor: Consultations to employees about marital, health, mental, physical and career, problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals
and groups and management.
4. Spokesman: To represent of the company because he has better overall picture of his
company’s operations.
5. Problem Solver: Solving problems of overall human resource management and long-term
organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing
organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labor-management relations.
Role of HR Managers (Future)
1. Protection and enhancement of human and non-human resources
2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce
Managerial Functions of HRM:
1. Planning: Plan and research about wage trends, labor market conditions, union demands and
other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating authorities and
responsibilities for the achievement of
organizational goals and objectives.
Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation of
employees to follow the path laid-down.
5. Controlling: Regulating personnel activities and policies according to plans. Observations
and comparisons of deviations
Operational Functions of HRM:
1. Procurement: Planning, Recruitment and Selection, Induction and Placement
2. Development: Training, Development, Career planning and counseling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions, employee
communication
6. Separations: Managing separations caused by resignations, terminations, lay offs, death,
medical sickness etc.
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