S.P.

MANDALIS

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON HRM In !"#$% &$# '( $n O#"$n)*$ )'n SUBMITTED B+ PRITH,I ACHAR+A M.COM -SEM. I./ ECONOMICS SUBMITTED TO UNI,ERSIT+ OF MUMBAI 0011-0014 PROJECT GUIDE P#'(. D#. -M#*. ,)n) $ P)2&$%!

CERTIFICATE
This is to certify that M#.P#) 34) A53$#6$ of M.Com ( Business Management) Semester I (2013-2014) has successfu y com! ete" the !ro#ect on M$%&'TI() ST%$T')I'S un"er the gui"ance of P#'(. *r. (Mrs) +inita ,im!a e.

,ro#ect )ui"e-Interna '.aminer '.aminer ,rof. /////////////////////// ////////////////////////

'.terna ,rof.

*r. (Mrs) +inita ,im!a e +asu"e1an Course Co-or"inator

*r.(Mrs) Sho0ana ,rinci!a

D$ !-

S!$% '( 3! C'%%!"!

AC7NO8LEDGEMENT
I ac2no3 e"ge the 1a ua0 e assistance !ro1i"e" 0y S. , Man"a i4s %. $. ,o"ar Co ege of Commerce 5 'conomics6 for t3o year "egree course in M.Com. I s!ecia y than2 the ,rinci!a *r.(Mrs) Sho0ana +asu"e1an for a o3ing us to use the faci ities such as 7i0rary6 Com!uter 7a0oratory6 internet etc. I sincere y than2 the M.Com Co-or"inator for gui"ing us in the right "irection to !re!are the !ro#ect. I than2 my gui"e ,rof. *r. (Mrs) +inita ,im!a e 3ho has gi1en his-her 1a ua0 e time6 2no3 e"ge an" gui"ance to com! ete the !ro#ect successfu y in time. My fami y an" !eers 3ere great source of ins!iration throughout my !ro#ect6 their su!!ort is "ee! y ac2no3 e"ge".

Signature of the Stu"ent

DECLARATION
I6 ,rith1i $charya of R. A. PODAR COLLEGE OF COMMERCE 9 ECONOMICS of M.Com S'M'ST'% I6 here0y "ec are that I ha1e com! ete" the !ro#ect 89%M : Integra ,art ;f $n ;rganisation4 in the aca"emic year 2013-2013 for the su0#ect M-9%M. The information su0mitte" is true an" origina to the 0est of my 2no3 e"ge.

Signature of the Stu"ent

1.1 1.2 1.3

INDE: In #';<5 )'n RETAIL INDUSTR+ IN INDIA O=>!5 )4! O4!#4)!? '( R! $)% In;<* #6

1 1-0 0-1

1.4

E4$%<$ )'n '( In;)$n R! $)% M$#@! G#'? 3 )n In;)$n R! $)% S!5 '# COMPAN+ PROFILE-BIG BAAAAR. H)* '#6 L)n!* '( =<*)n!** '( B)" B$B$$# T)2! %)n! S53!2!* $n; Inn'4$ )'n* RE,IE8 OF LITERATURE M!$n)n" '( M$#@! )n" I2&'# $n5! '( M$#@! )n" M$#@! )n" M)C M$#@! )n" S #$ !")!* T6&!* '( * #$ !")!* RESEARCH METHEDOLOG+ S'<#5!* '( ;$ $ ('# M$#@! )n" S #$ !")!* S5'&! $n; <*! R!*!$#53 $n; '=>!5 )4! DATA ANAL+SIS M$#@! )n" $n$%6*)* '( B)" B$B$$# M$#@! )n" S #$ !")!* '( B)" B$B$$# IMC IMC 5'2&'n!n * '( B)" B$B$$# CONCLUSIONS AND RECOMMENADATION BIBLIOGRAPH+

0 2.1 2.2 2.3 2.4 1 3.1 3.2 3.3 3.4 3.< 4 4.1 4.2 4.3 D <.1 <.2 <.3 <.4 E F

4-< <-= =-> >-?

10 10-12 12 13-14 14-1<

1<-1= 1=-1@

1>-20 21 22 23-24 2<-2= 2@

HUMAN RESOURCE MANAGEMENT

INTRODUCTION

H<2$n

#!*'<#5!

2$n$"!2!n (HRM6 or human

or

sim! y HR) It

is is

the management of res!onsi0 e for

an organiAationBs 3or2force6 o1erseeing

resources.

the attraction6 se ection6 training6 assessment6 an" re3ar"ing of em! oyees6 3hi e a so organiAationa ea"ershi! an" cu ture an" ensuring com! iance 3ith em! oyment an" a0or a3s. In circumstances 3here em! oyees "esire an" are ega y authoriAe" to ho " a co ecti1e 0argaining agreement6 9% 3i a so ser1e as the com!anyBs !rimary iaison 3ith the em! oyeesB re!resentati1es (usua y a a0or union). 9% is a !ro"uct of the human re ations mo1ement of the ear y 20th century6 3hen researchers 0egan "ocumenting 3ays of creating 0usiness 1a ue through the strategic management of the 3or2force. The function 3as initia y "ominate" 0y transactiona 3or26 such as !ayro an" 0enefits a"ministration6 0ut "ue to g o0a iAation6 com!any conso i"ation6 techno ogica a"1ancement6 an" further research6 9% no3 focuses on strategic initiati1es i2e mergers an" acCuisitions6 ta ent management6 succession ! anning6 in"ustria an" a0or re ations6 an" "i1ersity an" inc usion. In startu! com!anies6 9%Bs "uties may 0e !erforme" 0y traine" !rofessiona s. In arger com!anies6 an entire functiona grou! is ty!ica y "e"icate" to the "isci! ine6 3ith staff s!ecia iAing in 1arious 9% tas2s an" functiona ea"ershi! engaging in strategic "ecision ma2ing across the 0usiness. To train !ractitioners for the !rofession6 institutions of higher e"ucation6 !rofessiona associations6 an" com!anies themse 1es ha1e create" !rograms of stu"y "e"icate" e.! icit y to the "uties of the function. $ca"emic an" !ractitioner organiAations i2e3ise see2 to engage an" further the fie " of 9%6 as e1i"ence" 0y se1era fie "-s!ecific !u0 ications.

FEATURES OF HUMAN RESOURCE MANAGEMENT HRM

Do o3ing is the nature or features of 9uman %esource Management 9%M E1. HRM )* $ &#'5!** of four functions E-

A5G<)*) )'n '( 3<2$n #!*'<#5!* E This function inc u"es 9uman %esource , anning6 %ecruitment6 Se ection6 , acement an" In"uction of staff. D!4!%'&2!n '( 3<2$n #!*'<#5!* E This function inc u"es Training an" *e1e o!ment an" Career "e1e o!ment. The 2no3 e"ge6 s2i s6 attitu"es an" socia 0eha1ious of the staff are "e1e o!e". M' )4$ )'n '( 3<2$n #!*'<#5!* E This function inc u"es gi1ing recognition an" re3ar"s to the staff. it a so inc u"es ,erformance $!!raisa an" han" ing the !ro0 ems of staff. M$)n !n$n5! '( 3<2$n #!*'<#5!* E This function inc u"es !ro1i"ing the 0est 3or2ing con"itions for em! oyees. It a so oo2s after the hea th an" safety of the staff. 0. C'n )n<'<* P#'5!** 9%M is not a one-time !rocess. It is a continuous !rocess. It has to continuous y change an" a"#ust accor"ing to the changes in the en1ironment6 changes in the e.!ectations of the staff6 etc. 9%M has to gi1e continuous training an" "e1e o!ment to the staff "ue to changes in techno ogy.

1. F'5<* 'n objectives

9%M gi1es a ot of im!ortance to achie1ement of o0#ecti1es. The four main o0#ecti1es 9%M has to achie1e are E1. 2. 3. 4. In"i1i"ua o0#ecti1es of the staff. )rou! or *e!artmenta o0#ecti1es. ;rganisationa o0#ecti1es. Societa o0#ecti1es.

4. Universal Application

9%M has uni1ersa a!! ication. That is6 it can 0e use" for 0usiness as 3e as for other organisations such as schoo s6 co eges6 hos!ita 6 re igious organisations6 etc.

D. Integrated use of Subsystems 9%M in1o 1es the integrate" use of su0-systems such as Training an" *e1e o!ment6 Career *e1e o!ment6 ;rgnisationa *e1e o!ment6 ,erformance $!!raisa 6 ,otentia $!!raisa 6 etc. $ these su0systems increase the efficiency of the staff an" 0ring success to the organisation.

E. Multidisciplinary 9%M is mu ti"isci! inary. That is6 it uses many "ifferent su0#ects such as ,sycho ogy6 Communication6 ,hi oso!hy6 Socio ogy6 Management6 '"ucation6 etc.

F. Developes Team Spirit 9%M tries to "e1e o! the team s!irit of the fu organisation. Team s!irit he !s the staff to 3or2 together for achie1ing the o0#ecti1es of the organisation. (o3-a-"ays more im!ortance is gi1en to team 3or2 an" not to in"i1i"ua s.

H. Develops Staff Potentialities 9%M "e1e o!s the !otentia ities of the staff 0y gi1ing them training an" "e1e o!ment. This 3i ma2e the staff more efficient6 an" it 3i gi1e them more #o0 satisfaction.

9. Key Elements for solving problems To"ay6 3e ha1e ra!i" techno ogica 6 manageria 6 economic an" socia changes. These changes 0ring many !ro0 ems. 9%M continuous y tries to so 1e these !ro0 ems.

10. ong Term !enefits

9%M 0rings many ong term 0enefits to the in"i1i"ua s (staff)6 the organisation an" the society. It gi1es many financia an" non-financia 0enefits to the staff. It im!ro1es the image an" !rofits of the organisation. It a so !ro1i"es a regu ar su!! y of goo" Cua ity goo"s an" ser1ices at reasona0 e !rices to the society.

S5'&! '( H<2$n R!*'<#5! M$n$"!2!n HRM

The Sco!e of 9uman %esource Management 9%M is "iscusse" 0e o3 E1. H<2$n R!*'<#5! P%$nn)n" -HRP. 9%, estimates the man!o3er "eman" an" man!o3er su!! y of the organisation. It com!ares the man!o3er "eman" an" man!o3er su!! y. If there is man!o3er sur! us then it gi1es 1o untary retirement6 ay-off6 etc. to some em! oyees. If there is man!o3er shortage then it hires em! oyees from outsi"e6 gi1es !romotion to em! oyees6 etc. 0. A5G<)*) )'n F<n5 )'n $cCuisition function inc u"es 9uman %esource , anning6 %ecruitment6 Se ection6 , acement an" In"uction of em! oyees. 9%M uses the scientific se ection !roce"ure for se ecting the right man for the right !ost. The Fright manF is gi1en !ro!er ! acement an" in"uction. 1. P%$5!2!n F<n5 )'n 9%M a so !erforms the ! acement function. , acement is "one after se ection of em! oyees. It means to !ut the right man in the right ! ace of 3or2. ,ro!er ! acement gi1es #o0 satisfaction to the em! oyees6 an" it increases their efficiency. 4. P!#('#2$n5! A&&#$)*$% 9%M a so con"ucts a !erformance a!!raisa . ,erformance a!!raisa is a systematic e1a uation of the em! oyeesB !erformance at 3or2. It informs the em! oyees a0out their strengths an" 3ea2ness. It a so a"1ises them a0out ho3 to increase their strengths an" remo1e their 3ea2nesses. D. C$#!!# D!4!%'&2!n 9%M a so he !s the em! oyees in ! anning an" "e1e o!ing their careers. It informs them a0out future !romotions an" ho3 to get these !romotions. It he !s them to gro3 an" "e1e o! in the organisation. E. T#$)n)n" $n; D!4!%'&2!n

9%M a so !ro1i"es training an" "e1e o!ment to the em! oyees. Training means to increase the 2no3 e"ge an" s2i s of the em! oyee for "oing a !articu ar #o0. Training gi1en to managers is ca e" "e1e o!ment. So6 training is gi1en to em! oyees 3hi e "e1e o!ment is gi1en to managers. F. I<$%) 6 '( 8'#@ L)(! -I8L. 9%M a so inc u"es Gua ity of Hor2 7ife. GH7 is a techniCue for im!ro1ing !ro"ucti1ity an" Cua ity of 3or2. It in1o 1es a0our management co-o!eration6 co ecti1e 0argaining an" !artici!ati1e management. GH7 !ro1i"es goo" 3or2ing con"itions6 #o0 security6 goo" !ay an" other faci ities such as f e.i0 e 3or2ing hours6 free"om to suggest changes or im!ro1ements6 etc. ;H7 creates a sense of 0e onging. This 0enefits the organisation as 3e as the in"i1i"ua em! oyees. H. E2&%'6!!*J 8!%($#! 9%M !ro1i"es em! oyeeBs 3e fare. He fare measures inc u"e !ai" ho i"ays6 me"ica insurance6 canteen faci ities6 recreation faci ities6 rest room6 trans!ort faci ities6 etc. ,ro!er an" time y 3e fare faci ities moti1ate the em! oyees to 3or2 har" in the organisation. 9. C'2&!n*$ )'n F<n5 )'n 'm! oyees must 0e re3ar"e" an" recognise" for their !erformance. 9%M ma2es !ro!er com!ensation !ac2ages for the em! oyees. These !ac2ages moti1ate the em! oyees an" increase their mora e. %e3ar"s are gi1en to in"i1i"ua s6 an" teams. The re3ar"s may 0e in the form of higher !ay6 0onus6 other monetary incenti1es6 an" nonmonetary incenti1es such as a certificate of a!!reciation6 etc. 10. L$='<# R!%$ )'n* 9%M is a so inc u"es in"ustria re ations. It inc u"es union management re ations6 #oint consu tations6 negotiating6 co ecti1e 0argaining6 grie1ance han" ing6 "isci! inary actions6 sett ement of in"ustria "is!utes6 etc.

11. M$)n !n$n5! F<n5 )'n 9%M a so !erforms the maintenance function. That is6 !rotecting an" !romoting the hea th an" safety of the em! oyees. 9%M intro"uces hea th an" safety measures. It a so !ro1i"es other 0enefits such as me"ica ai"6 !ro1i"ent fun"6 !ension6 gratuity6 maternity 0enefits6 acci"ent com!ensation6 etc.6 to the em! oyees.

COMPONENTS OF HRM

HUMAN RESOURCE PLAN The o0#ecti1es of 9% ! an must 0e "eri1e" from organiAationa o0#ecti1es. S!ecific reCuirements in terms of num0er an" characteristics of em! oyees shou " 0e "eri1e" from the organiAationa o0#ecti1es. ;rganiAationa o0#ecti1es are "efine" 0y the to! management an" the ro e of 9%, is to su0 ser1e the o1era resources. o0#ecti1es 0y ensuring a1ai a0i ity an" uti iAation of human

;nce the organiAationa o0#ecti1es are "efine" 0y the to! management an" the ro e of 9%, is to su0 ser1e the o1era human resources. ;nce the organiAationa o0#ecti1es are s!ecifie"6 communicate" an" un"erstoo" 0y a concerne"6 the 9% "e!artment must s!ecify its o0#ecti1es 3ith regar" to 9% uti iAation in the organiAation. "# Demand $orecast *eman" forecasting is the !rocess of estimating the future Cuantity an" Cua ity of !eo! e reCuire". The 0asis of forecast must 0e annua 0u"get an" ong-term cor!orate ! an6 trans ate" into acti1ity e1e s for each function an" "e!artment. There are se1era goo" reasons to con"uct "eman" forecasting Guantify the #o0s necessary for !ro"ucing a gi1en num0er of goo"s *etermine 3hat staff-mi. is reCuire" $sses a!!ro!riate staffing e1e s in "ifferent !arts of the organiAation ,re1ent shortages of !eo! e Monitor com! iance 3ith ega reCuirements 3ith regar" to reser1ation of #o0s o0#ecti1es 0y ensuring a1ai a0i ity an" uti iAation of

"# Supply $orecast ,ersonne "eman" ana ysis !ro1i"es the manager 3ith the means of estimating the num0er an" 2in" of em! oyees that 3i 0e reCuire". The ne.t ogica ste! for the management is to "etermine 3hether it 3i 0e a0 e to !rocure the reCuire" num0er of !ersonne an" the sources for such !rocurement. This information is !ro1i"e" 0y su!! y forecasting. Su!! y forecasting measures the num0er of !eo! e i2e y to 0e a1ai a0 e from 3ithin an" outsi"e an organiAation6 after ma2ing a o3ance for a0senteeism6 interna mo1ements an" !romotions6 3astage an" changes in hours6 an" other con"itions of 3or2. reasons for su!! y forecast are 9e !s Cuantify num0er of !eo! e an" !ositions e.!ecte" to 0e a1ai a0 e 9e !s c arify staff mi.es that 3i e.ist in the future $ssess e.isting staffing e1e s in "ifferent !arts of the organiAation ,re1ents shortage of !eo! e Monitors e.!ecte" future com! iance 3ith ega reCuirements of #o0 reser1ations

"# Programming ;nce an organiAation4s !ersonne an" su!! y are forecast6 the t3o must 0e reconci e" or 0a ance" in or"er that 1acancies can 0e fi e" 0y the right em! oyees at the right time. "# P
A% IMP EME%TATI&%

Im! ementation reCuires con1erting an 9% ! an into action. $ series of action !rogrammes are initiate" as a!art of 9% ! an im! ementation. %ecruitment6 Se ection an" , acement : after the #o0 1acancies are 2no3n6 efforts must 0e ma"e to i"entify sources an" search for suita0 e can"i"ates. The se ection !rogramme shou " 0e !rofessiona y "esigne". Training an" *e1e o!ment : The training an" "e1e o!ment !rogramme shou " co1er the num0er of trainees reCuire" an" !rogrammes necessary for e.isting staff %etraining an" %e"e! oyment : ne3 s2i s are to 0e im!arte" to e.isting staff 3hen techno ogy changes %etention , an : retention ! an co1ers actions 3hich 3ou " he ! re"uce a1oi"a0 e se!arations of em! oyees. *o3nsiAing : 3here there is sur! us em! oyee6 trimming of a0our force 3i 0e necessary 'ontrol and Evaluation Contro an" e1a uation re!resents the fifth an" the fina !hase in the 9%, !rocess. The 9r ! an shou " inc u"e 0u"gets6 targets an" stan"ar"s. It shou " a so c arify res!onsi0i ities for im! ementation an" contro 6 an" esta0 ish re!orting !roce"ures6 3hich 3i ena0 e achie1ements to 0e monitore" against the ! an.

JOB ROTATION Io0 rotation im! ies mo1ement of em! oyees from one #o0 to another. Hith #o0 rotation6 a gi1en em! oyee !erforms "ifferent #o0s6 0ut more or ess of the same nature. Hhen an acti1ity is no onger cha enging6 the em! oyee 3ou " 0e rotate" to another #o0 at the same e1e that has simi ar s2i reCuirements. Advantages of (ob #otation) Io0 rotation is a 3ay to o1ercome 0ore"om an" monotony. It is i2e y to increase intrinsic re3ar" !otentia of a #o0 0ecause of "ifferent s2i s an" a0i ities nee"e" to !erform it. Hor2ers 0ecome com!etent in se1era #o0s rather than on y one6 3hich in turn 0enefits the organiAation. &no3ing a 1ariety of #o0s im!ro1e the 3or2er4s se f-image6 !ro1i"es !ersona gro3th an" ma2es the 3or2er more 1a ua0 e to the organiAation. ,erio"ic #o0 changing can a so im!ro1e inter"e!artmenta em! oyees 0ecome more un"erstan"ing of each other4s !ro0 ems. Disadvantages of (ob #otation $n em! oyee "oes not gain a !articu ar s!ecia iAation. Mo1ing from one #o0 to another a so gets irritating 0ecause the norma routine of an em! oyee is "istur0e" an" a so time is 3aste" in a"#usting to the ne3 #o0. The em! oyee may fee a ienate" 3hen he-she is rotate" from #o0 to #o0. Training costs are increase" co-o!eration6

TRANSFERS Dirst y 3hat is a transferJ $ transfer in1o 1es a change in the #o0 (accom!anie" 0y a change in the ! ace of the #o0) of an em! oyee 3ithout a change in res!onsi0i ities or remuneration. $ transfer "iffers from a !romotion in that the atter in1o 1es a change in 3hich a significant increase in res!onsi0i ity6 status an" income occurs6 0ut a these e ements are stagnant in case of a transfer. $nother "ifference is that transfers are regu ar an" freCuent6 as in 0an2s an" other go1ernment esta0 ishments6 0ut !romotions are infreCuent. R!$*'n* ('# #$n*(!#* The reasons for transfers 1ary from organiAation to organiAation an" from in"i1i"ua to in"i1i"ua 3ithin an organiAation. Broa" y s!ea2ing6 the fo o3ing are the reasons for transfersE There is a shortage of em! oyees in one "e!artment or ! ant 0ecause of a hea1y "eman"6 3hich necessitates a reCuirement of more em! oyees. In another "e!artment or ! ant6 em! oyees may 0e sur! us 0ecause of s ac2ene" "eman" for the !ro"ucts manufacture" 0y the com!any. This 3i ea" to 3or2ers 0eing i" e an" 3astage of man!o3er. Hor2ers are thus transferre" from the sur! us "e!artment to another "e!artment or ! ant 3here there is shortage of staff. Incom!ati0i ities 0et3een the 3or2er an" his or her 0oss or 0et3een one 3or2er an" another 3or2er. Correction of a 3rong initia ! acement of an em! oyee. $ change has ta2en ! ace in the interests an" ca!acities of an in"i1i"ua 6 com!e ing him to transfer to a "ifferent #o0. ;1er a !erio" of time6 the !ro"ucti1ity of an em! oyee may "ec ine 0ecause of the monotony of his or her #o0. To 0rea2 this monotony6 the em! oyee is transferre". The c imate may 0e unsatisfactory for an em! oyee4s hea th. 9e or she may reCuest a transfer to a "ifferent ! ace 3here his or her hea th 3i not 0e affecte" 0y the c imate.

Dami y re ate" issues cause transfers6 es!ecia y among fema e em! oyees i2e 3hen they get marrie" an" 3ant to #oin their hus0an"s.

T6&!* '( #$n*(!#* 1) Production transfers : as mentione" ear ier6 a shortage or sur! us of the a0our force is common in "ifferent "e!artments in a ! ant or se1era ! ants in an organiAation. Sur! us em! oyees in a "e!artment ha1e to 0e ai" off6 un ess they are transferre" to another "e!artment. Transfers effecte" to a1oi" such imminent ay-offs are ca e" !ro"uction transfers. 2) Replacement transfers : re! acement transfers are too inten"e" to a1oi" imminent ay-offs6 es!ecia y of senior em! oyees. $ #unior em! oyee may 0e re! ace" 0y a senior em! oyee to a1oi" aying off the senior one. $ re! acement transfer usua y ta2es ! ace 3hen a the o!erations are "ec ining an" it is carrie" out to retain ong-ser1ice em! oyees as ong as !ossi0 e. 3) Versatility transfers : 1ersati ity transfers are "one to ma2e em! oyees 1ersati e an" com!etent in more than one s2i . C erica em! oyees in 0an2s6 for e.am! e are transferre" from one section to another so that they acCuire the necessary s2i s to atten" to the 1arious acti1ities of the 0an2. +ersati e transfers may 0e use" as a !re!aration for !ro"uction or re! acement transfers. 4) Shift transfers : genera y s!ea2ing6 in"ustria esta0 ishments o!erate more than one shift. Transfers 0et3een shifts are common6 such transfers 0eing ma"e most y on a rotation 0asis. Transfers may a so 0e effecte" on s!ecia reCuests from em! oyees. Some reCuest a transfer to the secon" shift or the night shift in or"er to a1ai the free time "uring the "ay to ta2e u! !art time #o0s. <) Remedial transfers : reme"ia transfers are effecte" at the reCuest of em! oyees an" are therefore ca e" !ersona transfers. %eme"ia transfers ta2e ! ace in instances i2e the initia ! acement of an em! oyee may ha1e 0een fau ty or

 the 3or2er may not get a ong 3ith his or her su!er1isor or 3ith other 3or2ers in the "e!artment he or she may 0e getting too o " to continue in his or her regu ar #o0 or the ty!e of #o0 or 3or2ing con"itions may not 0e 3e a"a!te" to his or her !ersona hea th if the #o0 is re!etiti1e6 the 3or2er may stagnate an" in a such instances the em! oyee 3ou " 0enefit 0y transfer to a "ifferent 2in" of 3or2.

HRM M';!%
(ature of 9%M 9uman %esource , anning Io0 $na ysis %ecruitment Se ection , acement Training an" *e1e o!ment %emuneration Moti1ation 'n1ironment nt ,artici!ati1e Management Communication Safety an" 9ea th He fare ,romotions etc In"ustria %e ations Tra"e Knionism *is!utes $n" their Sett ement Duture of 9%M Com!etent an" 3i ing 3or2force ;rganiAationa )oa s

The HRM 2';!% contains a

9% acti1ities. Hhen these acti1ities are "ischarge"

effecti1e y6 they 3i resu t in a com!etent an" 3i ing 3or2force 3ho 3i he ! rea iAe

organiAationa goa s. There is another 1aria0 e in the mo"e : en1ironment. It may 0e state" that the 9% function "oes not o!erate in 1acuum. It is inf uence" 0y se1era interna an" e.terna forces i2e economic6 techno ogica 6 !o itica 6 ega 6 organiAationa 6 an" !rofessiona con"itions. HRM/ is a management function that he !s manager4s recruit6 se ect6 train6 an" "e1e o! mem0ers for an organiAation. H<2$n R!*'<#5! P%$nn)n"/ is un"erstoo" as the !rocess of forecasting an organiAations future "eman" for6 an" su!! y of6 the right ty!e of !eo! e in the right num0er. J'= An$%6*)*/ is the !rocess of stu"ying an" co ecting information re ating to the o!erations an" res!onsi0i ities of a s!ecific #o0. The imme"iate !ro"ucts of this ana ysis are #o0 "escri!tions an" #o0 s!ecification. R!5#<) 2!n / is the !rocess of fin"ing an" attracting ca!a0 e a!! icants for em! oyment. The !rocess 0egins 3hen ne3 recruits are sought an" en"s 3hen their a!! ications are su0mitte". The resu t is a !oo of a!! icants from 3hich ne3 em! oyees are se ecte". S!%!5 )'n/ is the !rocess of "ifferentiating 0et3een a!! icants in or"er to i"entify (an" hire) those 3ith greater i2e ihoo" of success in a #o0. P%$5!2!n / is un"erstoo" as the a ocation of !eo! e to #o0s. It is the assignment or reassignment of an em! oyee to a ne3 or "ifferent #o0. T#$)n)n" $n; ;!4!%'&2!n / it is an attem!t to im!ro1e current or future em! oyee !erformance 0y increasing an em! oyee4s a0i ity to !erform through earning6 usua y 0y changing the em! oyee4s attitu"e or increasing his or her s2i s an" 2no3 e"ge. The nee" for training an" "e1e o!ment is "etermine" 0y em! oyee4s !erformance "eficiency6 com!ute" as fo o3sE Training an" "e1e o!ment nee" L Stan"ar" !erformance : $ctua !erformance R!2<n!#$ )'n/ is the com!ensation an em! oyee recei1es in return for his or her contri0ution to the organiAation.

M' )4$ )'n/ is a !rocess that starts 3ith a !sycho ogica or !hysio ogica "eficiency or nee" that acti1ates 0eha1ior or a "ri1e that is aime" at a goa or an incenti1e. P$# )5)&$ )4! 2$n$"!2!n / Hor2ers !artici!ation may 0roa" y 0e ta2en to co1er a terms of association of 3or2ers an" their re!resentati1es 3ith the "ecision ma2ing !rocess6 ranging from e.change of information6 consu tations6 "ecisions an" negotiations to more institutiona iAe" forms such as the !resence of 3or2ers mem0ers on management or su!er1isory 0oar"s or e1en management 0y 3or2ers themse 1es as !ractice" in Mugos a1ia. ((I7;) C'22<n)5$ )'n/ may 0e un"erstoo" as the !rocess of e.changing information6 an" un"erstan"ing among !eo! e. S$(! 6 $n; 3!$% 3/ Safety means free"om from the occurrence or ris2 of in#ury or oss. In or"er to ensure the continuing goo" hea th of their em! oyees6 the 9%M focuses on the nee" for hea thy 3or2ers an" hea th ser1ices. 8!%($#!/ as "efine" 0y I7; at its $sian %egiona Conference6 "efine" a0our 3e fare as a term 3hich is un"erstoo" to inc u"e such ser1ices6 faci ities6 an" amenities as may 0e esta0 ishe" in or in the 1icinity of un"erta2ings to ena0 e the !erson em! oye" in them to !erform their 3or2 in hea thy6 congenia surroun"ings an" to !ro1i"e them 3ith amenities con"uci1e to goo" hea th an" high mora e. P#'2' )'n*/ means an im!ro1ement in !ay6 !restige6 !osition an" res!onsi0i ities of an em! oyee 3ithin his or her organiAation. T#$n*(!#/ in1o 1es a change in the #o0 (accom!anie" 0y a change in the ! ace of the #o0) of an em! oyee 3ithout a change in the res!onsi0i ities or remuneration. S!&$#$ )'n*/ 7ay-offs6 resignations an" "ismissa s se!arate em! oyees from the em! oyers. In;<* #)$% #!%$ )'n*/ is concerne" 3ith the systems6 ru es an" !roce"ures use" 0y unions an" em! oyers to "etermine the re3ar" for effort an" other con"itions of em! oyment6 to

!rotect the interests of the em! oye" an" their em! oyers6 an" to regu ate the 3ays in 3hich em! oyers treat their em! oyees. T#$;! Un)'n*/ are 1o untary organiAations of 3or2ers or em! oyers forme" to !romote an" !rotect their interests through co ecti1e action. D)*&< !* $n; 3!)# *! %!2!n / In"ustria "is!utes mean any "is!ute or "ifference 0et3een em! oyers an" em! oyers6 or 0et3een em! oyers an" 3or2men6 or 0et3een 3or2men an" 3or2men6 3hich is connecte" 3ith the em! oyment or non-em! oyment or terms of em! oyment or 3ith the con"itions of a0our of any !erson.

PERSONNEL MANAGEMENT 4* HRM

D)2!n*)'n 1. 'm! oyment contract P!#*'nn!% M$n$"!2!n HRM $ims to go 80eyon"4 contract. Can "o6 out oo26 im!atience 3ith ru e Business nee" +a ues-mission (urturing Customer Integrate" Dast Transformationa ea"ershi! *irect Daci itation Integrate"6 2ey tas2 ,erformance re ate" 9armoniAation In"i1i"ua contracts De3 Team 3or2 Manage c imate an" cu ture 7earning com!anies

Carefu "e ineation of 3ritten contracts 2. %u es Im!ortance of "e1ising c ear ru es 3. )ui"e to management ,roce"ures action 4. Beha1iour referent (ormscustoms an" !ractices <. Manageria tas2 1is-N-1is Monitoring a0our =. &ey re ations 7a0our management @. Initiati1es ,iecemea >. S!ee" of "ecision S o3 ?. Management ro e Transactiona 10. Communication In"irect 11. ,riAe" management (egotiation s2i s 12. Se ection Se!arate6 margina tas2 13. ,ay Io0 e1a uation 14. Con"itions Se!arate y negotiate" 1<. 7a0our management Co ecti1e-0argaining contracts 1=. Io0 categories an" Many gra"es 1@. Io0 "esign *i1ision of a0our 1>. Conf ict han" ing %each tem!orary truce 1?. Training an" Contro e" access to courses "e1e o!ment 20. Docus of attention for ,ersonne !roce"ures inter1entions 21. %es!ect for em! oyees

Hi"e ranging cu tura 6 structura an" !ersonne strategies 7a0our is treate" as a too ,eo! e are treate" as assets 3hich is e.!en"a0 e an" to 0e use" for the 0enefit of re! acea0 e an organiAation6 its em! oyees an" the society as a 3ho e Interests of the organiAation Mutua ity of interests are u!!ermost ,rece"es 9%M 7atest in the e1o ution of the su0#ect

22. Share" interest 23. '1o ution

PERSONNEL MANAGEMENT

DEFINITIONS OF PERSONNEL MANAGEMENTK HRM

The term !ersonne management is "efine" in "ifferent 3ays. The fo o3ing "efinitions are 3orth notingE (1) $ccor"ing to '"3in D i!!oF ,ersonne management is the ! anning6 organiAing6 "irecting6 an" contro ing of the !rocurement6 "e1e o!ment6 com!ensation6 integration6 maintenance6 an" se!aration of human resources to the en" that in"i1i"ua 6 organiAationa an" societa o0#ecti1es are accom! ishe"F. (2) $ccor"ing to )eorge %. Terry6 F,ersonne management is concerne" 3ith the o0taining an" maintaining of a satisfactory an" satisfie"6 3or2 forceF. (3) $ccor"ing to Ha ter *. Scott6 F,ersonne management is concerne" 3ith the attaining of ma.imum in"i1i"ua "e1e o!mentO "esira0 e 3or2ing re ationshi! 0et3een em! oyer an" em! oyees6 an" an effecti1e mou "ing of human resources as contraste" 3ith !hysica resourcesF. (4) $ccor"ing to British Institute of ,ersonne Management6 7on"on6 F,ersonne Management is that !art of management 3hich is concerne" 3ith the !eo! e at 3or2 an" 3ith their re ationshi! 3ithin an enter!riseF. OBJECTI,ESKPURPOSES OF PERSONNEL MANAGEMENT K HUMAN RESOURCE MANAGEMENT/ The 0asic o0#ecti1e of !ersonne management is to maintain efficient team of 3or2ers for the 0enefit of the organiAation. In a""ition6 to !ro1i"e o!!ortunities of se f"e1e o!ment to em! oyees an" fina y to maintain congenia 3or2 atmos!here an" inter-!ersonne re ations are the o0#ecti1es of !ersonne management. ,ersonne management aims at gi1ing fair treatment to em! oyees as regar" 3ages6 B3e fare faci ities6 non-monetary 0enefits6 3or2ing con"itions an" so on. The o0#ecti1es of 9%M are "eri1e" from the 0asic o0#ecti1es of an organiAation. In or"er to achie1e organiAationa o0#ecti1es6 integration of em! oyerBs interest an" em! oyee interests is necessary.

The o0#ecti1es of !ersonne management-9%M in any in"ustria organiAation can 0e summariAe" as un"er. (1) To attain ma.imum in"i1i"ua "e1e o!ment (se f-"e1e o!ment) of the mem0ers of an organiAation an" a so to uti iAe a1ai a0 e human resources (3ith the organiAation) fu y an" effecti1e y. (2) To mou " effecti1e y the human resources. (3) To esta0 ish "esira0 e 3or2ing re ationshi!s 0et3een em! oyer an" em! oyees an" 0et3een grou!s of em! oyees. (4) To ensure satisfaction to the 3or2ers so that they are free y rea"y to 3or2. (<) To im!ro1e the ser1ice ren"ere" 0y the enter!rise to the society through 0etter em! oyee mora e6 3hich ea"s to more efficient in"i1i"ua an" grou! !erformance. (=) To esta0 ish an" maintain a !ro"ucti1e an" se f res!ecting re ationshi! among a the mem0ers of an organiAation. (@) To ensure the a1ai a0i ity of a com!etent an" 3i ing 3or2force to the organiAation for its !rogress an" !ros!erity. (>) To he ! organiAation to achie1e its goa s 0y !ro1i"ing 3e traine"6 efficient an" !ro!er y moti1ate" em! oyees. (?) To maintain high mora e an" goo" human re ations 3ithin the organiAation for the 0enefit of em! oyer an" em! oyees. (10) To secure the integration of a the in"i1i"ua s an" grou!s 3ith the organiAation 0y reconci ing in"i1i"ua -grou! goa s 3ith those of an organiAation.

HUMAN RESOURCE MANAGEMENT

MEANING AND DEFINITION ,ersonne refers to the em! oyees 3or2ing in an organiAation at "ifferent e1e s. ,ersonne management (a so ca e" human resource management) is that as!ect of tota 0usiness management6 3hich "ea s 3ith human re ationshi!s 3ithin an organiAation. ,ersonne re!resent human resource6 3hich is "ifferent from materia resources. 9uman resource is the most !ro"ucti1e an" most 1ersati e. In a""ition6 the man!o3er in an organiAation nee"s human treatment. 'm! oyees ha1e a ca!acity to fee 6 thin2 an" e1en to react. Management has to "ea 3ith the em! oyees in a carefu an" tactfu manner. Materia resources such as an"6 machines6 ra3 materia s6 eCui!ment6 etc. are easy to manage. This is 0ecause they ha1e no ca!acity to fee or thin2 or react. This is not the case 3ith human resource i.e. man!o3er. Man an" machines are not on !ar an" must not 0e treate" in the same manner. This is 0ecause of a the resources man!o3er is the on y resource6 3hich "oes not "e!reciate6 3ith the !assage of time. $ccor"ing to ,eter D. *ruc2ert KtI e !ros!erity6 if not the sur1i1a of any 0usiness "e!en" on the !erformance of its managers of tomorro3.F The materia resources a one 3i not he ! the organiAation to achie1e its o0#ecti1es. Dor this6 effecti1e co-or"ination an" uti iAation of materia an" human resources are reCuire". This suggests the im!ortance of human resources.

The human resource is 1ery im!ortant an" usefu . It shou " 0e nurture" an" use" for the 0enefit of the organiAation. This is a cha enging #o0 0efore !ersonne manager-management. The organiAation can ma2e ra!i" !rogress on y 3hen the em! oyees are satisfie" an" co-o!erati1e. ;n the other han"6 the organiAation 3i ha1e to face 1arious !ro0 ems an" "ifficu ties6 if the em! oyees are not co-o!erati1e 0ut hosti e. This in"icates that human resource is most strategic an" critica "eterminant of gro3th of a 0usiness unit. '1ery organiAation nee"s oya 6 efficient an" satisfie" a0our force. Dor this6 a"eCuate attention shou " 0e gi1en to !ersonne management.

OBJECTI,ES OF HRM Same as o0#ecti1es of !ersonne management (gi1en a0o1e) FUNCTIONS OF HRM $ !ersonne manager has to !erform the 0asic functions of management. These manageria functions inc u"eB ! anning6 organiAing6 "irecting an" contro ing !ersonne . The o!erati1e functions of the "e!artment areE !rocurement of staff6 "e1e o!ment of staff through training6 !ayment of com!ensation to staff i.e. 3ages an" sa aries6 integration of man!o3er i.e. fair reconci iation of in"i1i"ua 6 socia an" organiAationa goa s an" interests an" maintenance of staff i.e. !ro1i"ing them safety at the 3or2 ! ace an" a so to offer 3e fare faci ities an" con1eniences to em! oyees. In 0rief6 !ersonne management in1o 1es the fo o3ing o!erationa functionsE

(1) P#'5<#!2!n

'( 2$n&'?!#/ ,rocurement means acCuiring the man!o3er

reCuire" 0y an organiAation from time-to-time. The 0asic ,rinci! e in !rocurement is Fright man for the right #o0F. The !rocurement function inc u"es man!o3er ! anning an" forecasting6 recruitment6 se ection6 a!!ointment6 ! acement an" in"uction of em! oyees so as to ha1e a team of efficient an" ca!a0 e em! oyees for the 0enefits of the organiAation. '1en !romotions an" transfers are co1ere" 0y this 0roa" !ersonne function. (2) D!4!%'&2!n '( 2$n&'?!#/ *e1e o!ment of man!o3er (human resource

"e1e o!ment) means ! anning an" e.ecution of the training !rogrammes for a categories of em! oyees in or"er to "e1e o! ne3 s2i s an" Cua ities reCuire" for 3or2ing at the higher e1e . Man!o3er "e1e o!ment is !ossi0 e through training an" career "e1e o!ment !rogrammes an" not sim! y 0y offering attracti1e 3ages to 3or2ers. '.ecuti1e "e1e o!ment !rogrammes are intro"uce" for the 0enefit of higher- e1e managers Simi ar yO future man!o3er reCuirement 3i 0e6 met interna y through 9%* !rogrammes. It aims at e"ucating an" training em! oyees for the im!ro1ement of o1era !erformance of an organiAation. 9%* (9uman %esource *e1e o!ment) !rogrammes are for e"ucation6 training an" "e1e o!ment of e.isting man!o3er in an organiAation. This is for facing ne3 !ro0 ems an" cha enges i2e y to "e1e o! in the near future.

(3) C'2&!n*$ )'n &$62!n

' 2$n&'?!# !2&%'6!;E ;ne function of 9%M is to

!ay com!ensation (in monetary form) to em! oyees for the ser1ices ren"ere". Dor this6 a fair system of remuneration !ayment (3ages an" sa aries) nee"s to 0e intro"uce". %emuneration to em! oyees shou " 0e attracti1e so that the a0our force 3i 0e satisfie" an" "is!utes6 etc. 3i 0e minimiAe". Dair 3age !ayment acts as a moti1ating factor. (4) In !"#$ )'n '( )n !#!* * '( 2$n&'?!# $n; 3! '#"$n)B$ )'n/ Man!o3er is intereste" in 3age !ayment 3hi e organiAation is intereste" in higher !rofits6 consumer oya ty6 mar2et re!utation an" so on. 9%M has to reconci e the interests of the in"i1i"ua mem0ers of the organiAation 3ith those of the organiAation.

(<) M$)n !n$n5! '( 2$n&'?!#/ This man!o3er function re ating to maintaining satisfie" man!o3er in the organiAation through the !ro1ision of 3e fare faci ities. Dor this6 attention nee"s to 0e gi1en to hea th an" safety measures6 maintenance of !ro!er 3or2ing con"itions at the 3or2 ! ace6 !ro1ision of 3e fare faci ities an" other non-monetary 0enefits so as to create efficient an" satisfie" a0our force 3ith high mora e. '1en co ecti1e 0argaining an" 3or2ers !artici!ation come 3ithin this 0roa" !ersonne function. (=) P#'4)*)'n '( ?!%($#! ($5)%) )!*E 'm! oyees are offere" 1arious 3e fare faci ities. They inc u"e me"ica 6 e"ucationa 6 recreation6 housing6 trans!ort an" so on.

(@) M)*5. (<n5 )'n*/ Misc functions un"er 9%M inc u"e maintenance of ser1ice recor"s of em! oyees (3hich are use" for !romotions-transfers !erformance a!!raisa 6 etc.)6 !romotions an" transfers of em! oyees6 maintaining cor"ia in"ustria re ations6 intro"uction of rationa grie1ance !roce"ure6 !erformance e1a uation of em! oyees6 career ! anning of em! oyees6 maintenance of "isci! ine6 a"ministering the !o icies 3ith regar" to "isci! inary action an" com! iance of 1arious a0our a3s.

E,OLUTION OF HRM IN INDIA

The im!ortance of !ersonne -human resources management is no3 uni1ersa y acce!te" an" In"ia is not an e.ce!tion to this ru e. In In"ia6 arge 0usiness enter!rises6 !u0 ic sector enter!rises an" e1en me"ium an" sma enter!rises a!!oint !ersonne manager or human resources "e1e o!ment (9%*) manager to oo2 after the !ersonne functions such as recruitment6 !romotions an" transfers6 training an" man!o3er "e1e o!ment6 !ro1ision of 3e fare faci ities6 com!ensation management an" so on. The term 9%M is a re ati1e y ne3 term emerge" "uring the 1?@0s. It is no3 use" as a 0etter an" meaningfu su0stitute to !ersonne management. 9%M is 3i"er in sco!e an" has its "istinct !hi oso!hy.

The !rocess of in"ustria "e1e o!ment starte" in In"ia rather ate. It 3as "uring the British %u e an" that too after the Dirst Hor " Har that te.ti e6 #ute6 iron an" stee an" other organise" in"ustries starte" in In"ia. %ecruitment6 3age !ayment6 3e fare faci ities an" other !ersonne !ro0 ems 3ere note" on y 3hen a0our c ass 3as em! oye" on a arge sca e in the in"ustria sector. This is the starting !erio" for !ersonne management in In"ia. In the ear y British !erio" an" !rior to that !ersonne management an" !ersonne functions 3ere a0sent6 (%eference to some !ersonne functions an" systematic management of resources 3as ma"e in &auti yaBs Arthashastra "uring the 4th century Be.) as in"ustria acti1ities 3ere e.treme y imite". They 3ere a so con"ucte" on a sma sca e. $s com!are" to In"ia6 the in"ustria gro3th 3as ra!i" in 'uro!e. $s a resu t6 the conce!t of !ersonne functions an" !ersonne management ma"e ra!i" !rogress. The conce!t of !ersonne management function in In"ia is 0ase" on simi ar conce!t "e1e o!e" in 'uro!e much ear ier.

The !ersonne function in In"ia has 0een the !ro"uct(outcome) of 1arious factors such as in"ustria gro3th6 a0our6 egis ation6 e.! oitation of 3or2ers in the ear y !erio" an" their "eman" for certain 0asic necessities of ife. (e.g. fair 3age6 3ee2 y6 ho i"ay6 essentia faci ities at the 3or2 ! ace)The nee" for a0our officers in In"ian in"ustry 3as fe t-rea iAe" as ear y as 1?2? for the !rotection of a0our force in in"ustria units. In 1?316 the mem0ers of Bom0ay Mi o3nersB $ssociation a!!ointe" 7a0our ;fficers in their te.ti e mi s (on 1o untary 0asis) for the sett ement of grie1ances an" "is!utes of

em! oyees. Simi ar arrangement 3as intro"uce" in the #ute mi s in Benga (un"er the ea"ershi! of Iute Mi s $ssociation). The a0our 3e fare officers 3ere gi1en the res!onsi0i ity to !romote s!orts an" 3e fare acti1ities an" !ro1i"e foo" sho!s (canteen faci ity) to 3or2ers. $fter In"e!en"ence6 many !ro a0our egis ations 3ere ma"e for the !rotection an" 3e fare of 3or2ers. The sco!e of !ersonne management function 3as ma"e more 0roa" an" i0era . Many !ro1isions regar"ing recruitment6 sa ary !ayment an" con"itions of ser1ice 3ere ai" "o3n. This ga1e recognition to the !ersonne management function in the in"ustria esta0 ishments. )ra"ua y6 the nee" of !ersonne management an" its ro e in cor"ia a0our re ations an" fair treatment to em! oyees nee" 3ere recogniAe" 0y in"ustria organiAations. ,ersonne "e!artments un"er the ea"ershi! of !ersonne managers 3ere starte" in the com!anies. 7i0era 3e fare faci ities 3ere intro"uce" for the 0enefit of em! oyees. Such measures ta2en for the !rotection an" 3e fare of em! oyees en arge" the sco!e of !ersonne management. '1en training an" man!o3er "e1e o!ment !rogrammes a""e" ne3 "imensions to the acti1ities of !ersonne management. Many com!anies ha1e no36 !re!are" 3e -"efine" !ersonne !o icies6 grie1ance an" other !roce"ures an" i0era !ac2age of 3e fare faci ities. Such a""itiona acti1ities-functions un"er !ersonne management raise" the im!ortance an" !o!u arity of !ersonne "e!artment.

CHALLENGES FACING HRM IN INDIA

Hith organiAations achie1ing a 9%* c imate6 a 0asic source of human moti1ation to !erform higher6 human 3astage has 0een re"uce". So6 3hereas !ersonne management regar"e" 3ages an" sa aries as the main source of moti1ation6 9uman %esource Management (9%M) regar"s creation of a congenia 3or2 c imate (9%* c imate)6 #o0 cha enges6 creati1ity an" o!!ortunity for "e1e o!ment as the moti1ating forces. The cha enges in 9% that 3ou " 0e 1ery critica are staffing. The 0iggest fear that such 0ig cor!orate ha1e is6 if t3o or three 3rong !eo! e get together6 they can 0ring "o3n the com!any. So6 one is hiring the right 2in" of !eo! e6 then right 2in" of 1a ues an" the right 2in" of !rofessiona com!etencies. The other cha enge is to continuous y a o3 !eo! e to "e1e o! an" gro3 so that they ha1e 1ery high energy an" the a0i ity to energiAe others 3ith the e"ge to reso 1e conf icts6 an" the a0i ity to e.ecute. Mou 3i a so ha1e to 0ear in min" that they a so ha1e as!irations. So managing the as!irations an" re3ar"ing them time y an" accurate y 0ecome critica in such organiAations. $ ot of com!anies e.!ect their !ro0 ems to "isa!!ear the moment 9% is im! emente". F9%M is a means to an en"6 not the en" F. The other reasons 3hy 9% im! ementations often fai inc u"e ac2 of !re!aration6 ac2 of to! management in1o 1ement6 fau ty se ection !rocess6 im!ro!er use of the 9%M !o icies-"e!artment-fun"s6 too high e.!ectations. Cost is an im!ortant factor 3hi e consi"ering the im! ementation of 9% acti1ities. The com!anies are trying to cut costs 3hi e con"ucting 9% !rogrammes an" are e.or0itant y s!en"ing on other unim!ortant acti1ities of the organiAation. 9%M is sti in its stage of infancy6 it yet has to e1o 1e an" 0ecome more a 3ay of "oing 0usiness or managing the organiAation. It shou "n4t 0e use" as a too or reme"ia measure 3hen the !ro0 em- crisis arises.

(o3a"ays6 the em! oyees are 0eing force" to atten" se f-im!ro1ement an" o1era "e1e o!ment !rogrammes com!u sori y 3ithout the staff4s 2no3 e"ge-interest an" com!anies are s!en"ing huge amounts on such 3e fare acti1ities6 3hich are a0so ute y re"un"ant an" shou " 0e e iminate" from the system.

,ay !ac2ages an" incenti1es ha1e to 0e su!! emente" 3ith some su!! ementary !ac2ages 0ut the com!any tries to re! ace the monetary 0enefits 0y some 3or2sho!s or seminars or !resentations or training courses 3hich "emoti1ate the 3or2ers 0ecause their e.!ectations are 0eing ignore" in the 0argain. He oo2 at the career "e1e o!ment of !eo! e 1ery strong y. He "o not 0e ie1e that 3e shou " 0e the highest !aymasters.

STRATEGIC HRM
Strategic Management is "efine" as 8 the set of manageria "ecisions an" actions that "etermine the ong-term !erformance of a cor!oration. It inc u"es en1ironmenta scanning6 strategy formu ation6 strategy im! ementation an" e1a uation an" contro . The stu"y of strategic management6 therefore6 em!hasiAes monitoring an" e1a uating en1ironmenta o!!ortunities an" threats in the ight of a cor!oration4s strengths an" 3ea2nesses.4 The strategic management !rocess in1o 1es the fo o3ing four !rocesses.

The a"1ent of 9%M has 0rought the in2age 0et3een em! oyer-em! oyee re ationshi! an" strategic management to shar! focus. Since 'n1ironmenta Scanning he !s i"entify threats an" o!!ortunities !re1ai ing in the e.terna an" interna en1ironment6 9%M is of great he ! in ocating o!!ortunities an" threats. 9%M is in a uniCue !osition to su!! y com!etiti1e inte igence that may 0e usefu in S #$ !"6 F'#2<%$ )'n. *etai s regar"ing a"1ance" incenti1e ! ans 0eing use" 0y com!etitors6 o!inion-sur1ey "ata from em! oyees that e icit information a0out customer com! aints6 an" information a0out !en"ing egis ation i2e a0our a3s or man"atory hea th

insurance are some e.am! es. The strengths an" 3ea2nesses of a com!any4s human resources can ha1e a "etermining effect on the 1ia0i ity of a com!any4s strategic o!tions. KniCue 9% ca!a0i ities ser1e as a "ri1ing force in strategy formu ation. $ com!any may 0ui " it4s ne3 strategy aroun" a com!etiti1e6 a"1antage stemming from it4s human resource. The 3e 2no3n accounting an" consu tancy firm6 $rthur $n"erson6 "e1e o!e" uniCue 9% ca!a0i ities in training6 3hich !ro1i"es the firm 3ith a com!etiti1e a"1antage ena0 ing it to !ro1i"e fast an" uniform in-house training. 9%M su!! ies a com!any 3ith a com!etent an" 3i ing 3or2force 3hich is res!onsi0 e for e.ecuting strategies i.e S #$ !"6 I2&%!2!n $ )'n. Dor e.am! e Maruti K"yog an" 9in"ustan Motors are manufacturing cars6 essentia y using i"entica techno ogy. The secret 0ehin" the meteoric rise of Maruti is its 3or2force. 9%M su!!orts strategy im! ementation in other 3ays too. Dor e.am! e human resource to"ay is hea1i y in1o 1e" in the e.ecution of a com!any4s restructuring an" "o3nsiAing strategies6 through out! acing em! oyees6 instituting !erformance in2e" !ay ! ans6 re"ucing hea th care costs an" retraining em! oyees. $n" in an increasing y com!etiti1e g o0a mar2et ! ace6 instituting 9% !ractices that 0ui " em! oyee commitment can he ! im!ro1e an organiAation4s res!onsi1eness. 7ast y 9uman %esource Management must 0e continuous y e1a uate" to ma2e strategic management high y effecti1e 0y su!! ying human resources 3ho are com!etent an" committe". Thus Strategic 9uman resource Management to"ay is gi1en "ue im!ortance an" offers se1era financia an" non-financia 0enefits to a com!any.

NE8 TRENDS IN HRM

M$I(ST%'$M economists !ercei1e 1o untary retirement as a measure to she" the 3or2force 3hose margina !ro"ucti1ity is Aero. Durther6 it is argue" that this cou " 0e intro"uce" in an in"ustria organiAation for maintaining its cost effecti1eness in an increasing y com!etiti1e 3or ". Moreo1er6 1o untary retirement is accom!anie" 0y techno ogica mo"erniAation that 3arrants the re! acement of a0or 3ith ca!ita . Techno ogica mo"erniAation im!ro1es the !ro"ucti1ity of e.isting 3or2force so much so that a section of the e.isting 3or2force 0ecomes again re"un"ant e1en as mo"erniAation enhances the insta e" ca!acity of the techno ogy. The 3or2force that 0ecomes re"un"ant in this !rocess has to retire or 0e retrenche". The rationa e 0ehin" the intro"uction of 1o untary retirement scheme (+%S) in In"ia is that any organiAe" in"ustria organiAation has to o!erate 3ithin the e.isting egis ati1e frame3or26 3hich "oes not a o3 the organiAation to she" the re"un"ant 3or2force 3ithout a"eCuate com!ensation 'm! oyers refer to +%S as Bgo "en han"sha2eB6 tra"e unions ca it B1o untary

retrenchment schemeB6 an" for the go1ernment6 it is Bunstate" e.it !o icyB 3hich means that an e.it !o icy 3hich may not e.ist on !a!er. +%S is one of the strategies intro"uce" in the ear y 1?>0s in centra !u0 ic sector un"erta2ings (,SKs) to re"uce the so-ca e" sur! us or re"un"ant 3or2force. It gaine" !u0 icity after the intro"uction of ne3 economic !o icy in 1??1. In In"ia6 the go1ernment em! oys more than @0 !er cent of the organiAe" 3or2forceO it uses a its channe s to re"uce the organiAe" sector of the 3or2force 3ithout antagoniAing the tra"e unions. It is en1isage" in the ne3 economic !o icy that +%S can !ro1i"e minimum sustenance security to the retire" in"i1i"ua an" his fami y. Tra"e unions ! ay a crucia ro e in intro"ucing the +%S in any organiAe" sector firm. The main o0#ecti1e 0ehin" the scheme is to sen" out those 3ho cannot 0e retraine" in ne3 s2i s. The !remise of the argument a!!ears to 0e 3ea2. The i0era iAation !o icy6 in its an.iety to mo"erniAe6 restructure an" g o0a iAe the !ro"ucts of In"ian in"ustry6 is 3asting !recious a0or force that cou " ha1e 0een mo"erniAe" through retraining an" onthe-#o0 training. ,recious s2i s an" a0i ities of the retrenche" 3or2force are eCuate" 3ith

3orn out !hysica ca!ita that may not 0e susce!ti0 e to re!air or mo"erniAation. $re human 0eings not ca!a0 e of earning an" mo"ifying their 2no3 e"ge6 s2i s an" a!! ying the same to !ro"uce higher out!utJ The current em!hasis on restructuring "oes not a o3 such Cuestions. The free economy an" tra"e i0era iAation ha1e ushere" in the nee" for the enter!rises to ha1e a com!etiti1e e"ge. 'conomic forces ha1e e" to organiAationa cost cutting6 changes in !ro"uction !rocesses6 e.! oration of ne3 mar2ets6 ! ant re ocations6 mo"erniAations6 "o3nsiAing an" structura changes. ;rganiAationa a"#ustment at a e1e s has 0ecome e.treme y im!erati1e. ;1er manning

has cre!t into a most a in"ustria units on account of the ina0i ity of the enter!rises to re"uce or a"#ust 3or2force as !er the 0usiness nee"s. The sort of cuts that on y ha!!ene" in hea1y in"ustries has no3 0ecome 3i"es!rea". The "ays of ni00 ing a3ay "ea"3oo" ha1e ong gone. ItBs time for the organiAations to rea ign an" focus on the core com!etencies.

THE GOLDEN HANDSHA7E

+o untary %etirement Scheme (+%S) is the atest mantra of many a cor!orate an" ,u0 ic sector units. The com!any may "eci"e to "ec are a +%S 0ase" on their 9% ! an an" suita0i ity. Dor a common sa arie" in"i1i"ua this 0ecomes a ma#or "ecision. The com!any as !er their human resource !o icy "ec ares +%S or the +o untary %etirement Scheme. +%S is a scheme 3here0y the em! oyee is offere" to 1o untari y retire from his ser1ices 0efore his retirement "ate. Su0#ect to certain con"itions the com!any offers +%S to its em! oyees It is the go "en route to cut the e.cess f a0. The most humane techniCue to retrench the em! oyees in the com!any to"ay is the 1o untary retirement scheme. It is the go "en han"sha2e for the em! oyees an" the on y o!tion to"ay for the com!anies to "o3nsiAe their hea"count. The scheme 3hich is forma y !ermitte" 0y the *e!artment of ,u0 ic 'nter!rises an" 3hich !ro1i"es the ucrati1e 3ay for the em! oyees to terminate their ser1ices an" acce!t +%S. This !rocess shou " con1ince them that the !osts in the organiAation ha1e 0ecome re"un"ant an" not the !erson an" the organiAation sti 1a ues the !erson. Since this !rocess in1o 1es emotions an" fee ings6 e1ery care must 0e ta2en 0y the management that the !rocess must 0e carrie" out in such a manner that it 2ee!s the "ignity of the em! oyees 0ut at the same time achie1es the o0#ecti1e in a tactfu manner.

PIN7 SLIP
$ F!in2 s i!F is a notice of "ismissa or termination from oneBs #o06 a so 2no3n as oneBs F3a 2ing !a!ers.F The term F!in2 s i!F "ates from the ear y 20th century6 an" origina y referre" to the !ractice of inc u"ing a !in2-co ore" s i! of !a!er in an em! oyeeBs 3ee2 y !ay en1e o!e notifying the 3or2er of his or her termination. There "oes not seem to 0e any !articu ar significance to the use of the co or !in2 asi"e from the fact that it ma"e the notice stan" out from any other !a!ers that might 0e in the en1e o!e. Though the F!in2 s i!F in the !ay en1e o!e has !ro0a0 y 0een su!erse"e" 0y e-mai these "ays6 Fto 0e !in2 s i!!e"F is sti 1ery much in use as shorthan" for Fto 0e fire".F

CONCLUSION

Is 9% an integra !art of an organiAation J

9% manages human ta ent.

9% is the !acema2er an" !eacema2er of the organiAation. 9% 0ui "s a !o3erfu 6 energetic6 moti1ate" an" creati1e 3or2force. 9% is often the "ifferentiating factor 0et3een successfu an" unsuccessfu com!anies. 9% nurtures the human ta ent in the organiAation. 9% he !s ca!ture the customers 2no3 e"ge. 9% is more a i1e than "ea". 9% is the essence of aoun" ,eo! e Management ,rocess. 9% is 0ase" on trans!arent 0eha1ior.

Mes6 9% is an integra !art of an organiAation.

BIBLIOGRAPH+ 9uman resource an" !ersonne management-2n" e"ition -$s3atha!!a 9uman %esources management-&a e 5 $hme" Internet Hi2i!e"ia Management ,ara"ise $ccount7earning B ogS!ot Citeman (atura 9% Safari Boo2s 9%.Com

T3$n@ 6'<, P#) 34) A53$#6$.