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Human resource management (HRM) is the Strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
Evolution
19th Century (industrialization---franchising- by influence of trade unions--- formation of welfare officers) 1914-39 ( First world war ammunition factory demands increased---mandatory supply of welfare officer by government large scale recruitment of unskilled women employees second world war improvement in personnel department Industrial revolution era 1945-79 ( collective bargaining, industrial relations gained value)
Difference between Personnel Management & Human Resource Management Human resources, on the other hand, is responsible for managing a Personnel management is workforce as one of the primary more administrative in nature, resources that contributes to the dealing with payroll, complying success of an organization with employment law, and human resources is described as handling related tasks. much broader in scope than Personnel management can personnel management. Human include administrative tasks that resources is said to incorporate and are both traditional and routine. develop personnel management It can be described as reactive, tasks, while seeking to create and providing a response to develop teams of workers for the demands and concerns as they benefit of the organization. A are presented primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel management is often considered an independent human resources involves ongoing function of an organization strategies to manage and develop an organization's workforce. It is Personnel management is proactive, as it involves the typically the sole responsibility continuous development of of an organization's personnel functions and policies for the department. purposes of improving a company's workforce.
As far as motivators are concerned, personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance
Human resource management, on the other hand, tends to be an integral part of overall company function With human resources, all of an organization's managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel related tasks. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators.
Dave Ulrich, recommends three additional roles for the HR manager. HR Role: Business and Strategic Partner In todays organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. In this role, the HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The HR business objectives are established to support the attainment of the overall strategic business plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work systems in which people succeed and contribute. This strategic partnership impacts HR services such as the design of work positions; hiring; reward, recognition and strategic pay; performance development and appraisal systems; career and succession planning; and employee development. To be successful business partners, the HR staff members have to think like business people, know finance and accounting, and be accountable and responsible for cost reductions and the measurement of all HR programs and processes. It's not enough to ask for a seat at the executive table; HR people will have to prove they have the business savvy necessary to sit there.
HR Role: Employee Advocate As an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, and happy. Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization. The HR professional helps establish the organizational culture and climate in which people have the competency, concern and commitment to serve customers well. In this role, the HR manager provides employee development opportunities, employee assistance programs, gain sharing and profit-sharing strategies, organization development interventions, due process approaches to problem solving and regularly scheduled communication opportunities.
HR Role: Change Champion The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies make the HR professional exceptionally valued. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change. The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals and action plans. Finally, he helps determine the measures that will tell his organization how well it is succeeding in all of this.
Functions of HRM
Mission , Objectives Strategies , policies Managerial Functions of HRM Planning Organizing Directing Controlling Employee Relations
Employment
HRD
Compensation/ Rewards
Organizational design Job design Job Analysis HPR (Planning, recruitment selection, induction, Placement)
Training & Development Performance Appraisal Performance Improvement Career planning Management Development Organizational Development Organizational Change
Comp / Rewards
Employee Relations
Communication Motivation Moral job satisfaction Grievance Redrassal Discipline maintenance Quality of work life Participation Quality Circles
Challenges
The growing profit orientation of personnel function The shift from a mechanistic concept to a creative , innovative one. The interest in furthering the organisation rather than just maintaining or servicing it The more direct involvement of top management in the development of HR.
According to Leon C Megginson human resources planning is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members Human resources planning may be viewed as foreseeing the human resource requirements of an organization and the future supply of human resources
5. to improve the standards skill ,knowledge, ability, discipline etc., 6. to assess the surplus or shortage of human resources and take measures accordingly., 7. to maintain congenial industrial relations by maintaining optimum level and structure of human resources; 8. to minimize imbalances caused due to nonavailability of human resources of right kind ,right number in right time and right place; 9. to make the best use of its human resources; and 10. to estimate the cost of human resources
Process of HRP