HUMAN RESOURCE MANAGEMENT

MS. BUVANESWARI P

DEFINITION
According to SUMANTRA GHOSAL, human resources as human capital. Human capital are classified into three categories Intellectual Capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity and learning capacity. Social Capital is made up of network of relationships, sociability and trustworthiness.

Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability and resilience.

 According to FLIPPO, human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the the end, that individual, organizational and social objectives are accomplished. According to DECENZO & ROBBINS, HRM is concerned with the people dimension 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 is essential to achieve organizational objectives. It depends upon the types of organisation government, business, education, health or social action.

NATURE OF HRM
HRM refers to the application of management principles to management of people in an organisation. In its essence, HRM comprises the following: HRM consists of people-related functions as hiring, training and development, performance review, compensation, safety and health, welfare, industrial relations and the like. More important functions of HRM are the building of human capital.

 HRM necessitates alignment of HR policies and practices with the organisation strategies both corporate and functional. By meshing HR practices and policies with strategies, the HR executive helps formulate and implement business strategies. HRM involves the application of management principles and functions to doable and deliverable of people management. HRM assumes that it is the people who make the difference. They alone are capable of generating value and adding to the competitive advantage to organisations.

FUNCTIONS OF HRM
HENRY MINTZBERG identified 10 roles which managers play in organisations. A typical manager, act as a Monitor Disseminator Spokesperson first three informational role Figure-head Leader next three inter-personal role Liaison Entrepreneur Disturbance handler remaining four decisional role. Resource allocator and Negotiator.

FUNCTIONS OF HRM

P
E S

MR

FUNCTIONS

M MC

PLANNING

It refers to the preparing forecasts of future HR needs in the light of an Organisations environment, Mission and objectives, Strategies, and Internal strengths and weaknesses, Including its structure, culture, technology and leadership.

STAFFING
Obtaining people with the

Appropriate skills,
Abilities, Knowledge and experience to fill jobs in the work organisation. Key practices are human resource planning, job analysis, recruitment and selection.

DEVELOPING
Analyzing learning requirements of the employees of an organization. To ensure the employees possess the knowledge and skills to perform satisfactorily in their jobs or to advance in the organisation. Performance appraisal can identify employees key skills and competencies.

 Monitoring The design and administration of reward systems. HR practices include job evaluation, performance appraisal, pay and benefits. Maintaining The administration & monitoring workplace safety, health and welfare policies to retain a competent workforce and comply with statutory standards and regulations. Managing relationships

Encompasses a range of employee involvement/ participation schemes in non-union or union work places. In a union environment this includes negotiating contracts and administering the collective agreement.

 Managing Change This involves Helping other to envision the future, Communicating this vision,

Setting clear expectations for performance and developing the capability to reorganize people and reallocate other resources. Evaluating
Designing the procedures and processes that measure, evaluate and communicate the valueadded component of HR practices and the entire HR system to the organisation.

OBJECTIVES OF HRM
The primary objective of HRM is to ensure a satisfactory accomplishment of the objectives of an organisation and of its employees. While framing the HR objectives of the organisation, care is taken to consider the interests and needs of the employees and of employee goals. This is done by integrating the employee interests and the management interests with a view to achieve the objectives of the entire organisation.

SOCIETAL OBJECTIVES
The basic objective of HRM towards the society should be to ensure that their organisations manages human resources in an ethical and socially responsible manner
To manage human resources in an ethical and socially responsible manner.

To ensure compliance with legal and ethical standards.

To minimize the negative impact of societal demands upon the organization.

ORGANIZATIONAL OBJECTIVES

The organizational objectives of HR include the following

HR dept. focus on achieving the goals of the organization first. HR dept. should recognize its role in bringing about organizational effectiveness. HRM is not an end in itself. It is only a means to assist the orgn. With its primary objectives.

FUNCTIONAL OBJECTIVES

To maintain the HRM dept. contribution at a level appropriate to the organization's needs.
Resources are wasted when HRM is either more or less sophisticated to the organizations demands. The depts level of service must be tailored to fit the orgn. It serves. It should employ the skills and abilities of the workforce efficiently.

It should aim at making the peoples strengths productive and to benefit the organization.

PERSONNEL OBJECTIVES It should increase the fullest extent the employees job satisfaction. It should also meet the self-actualization needs of the employees. It should stimulate every employee to achieve his potential.

It should assist the employees in achieving their personal goals.

It should develop and maintain a quality of work life. It should also communicate HR policies to all employees.

PERSONNEL MGMT & HRM

Personnel means persons employed. Hence, personnel management treats the man as economic man who works for money or salary. HRM treats the people as human being having
Economic, Social and Psychological needs. So HRM is broader in scope compared to personnel management.

PERSONNEL / HRM - FUNCTIONS

Managerial Functions Planning Organizing

Directing
Controlling

OPERATIVE FUNCTIONS

Procurement functions Development Motivation and compensation

Maintenance
Integration function

Emerging issues.

OPERATIVE FUNCTIONS
Procurement Function It is concerned with procuring and employing people who possess necessary skill, knowledge and aptitude. Under its Job analysis Human resource planning Recruitment Selection Placement Induction & orientation Internal mobility

 Job Analysis it is the process of collecting information relating to the operations and responsibilities pertaining to a specific job. HRP it is a process of determining and assuring the organisation will have an adequate no. of qualified persons, available at proper times for performing jobs. Recruitment it is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. Selection it the process of ascertaining qualifications, experience, skill and knowledge of an applicant .

 Placement it is the process that ensures a 360 degree fit, matching the employees qualifications, experience, skills and interest with the job on offer.

Induction and orientation it is a techniques by which a new employees is rehabilitated in his new surrounding and introduced to the practices, policies and people.
Internal mobility

 Development It is the process of Improving, Moldings Changing and developing the skills, Knowledge, Creative ability, Aptitude, Values and commitment Based on present and future requirements both at the individuals and organizations level. This function includes:

 Training it is a continuous process by which employees learn skills, knowledge, abilities and attitudes to further organizational and personnel goals.
Executive Development it is a systematic process of developing managerial skills & capabilities through appropriate programmes. Career planning and development it is planning of ones career and implementation of career plans by means of

 Education,

Training,
Job search and Acquisition of work experiences It includes succession planning which implies Identifying,

Developing and
Tracking key positions. individuals for executive

 Human resource development

HRD aims at organisation.

developing

the

total

It creates a climate that enables every employee to develop and use his capabilities in order to further both individual and organizational goals.

 Motivation and Compensation

It is process which inspires people to give their best to the organisation through the use of intrinsic rewards like,
Achievement, recognition

and extrinsic rewards like,

Job design,

Work scheduling,
Appraisal based incentives.

 Job design organising tasks, and responsibilities towards having a productive unit of work is called job design. Work scheduling it refers to the proper allotment of works among the employees through,

Job enrichment,
Shorter work weeks flexi-time, Work sharing and

Home work assignments.

It is an attempt to structure of work, incorporating the physical, physiological and behavioral aspects of work.

 Motivation

Job evaluation
It is the systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within the organisation.

It helps to establish internal equality between various jobs.

 Performance Appraisal It is a process that involves determining and communicating to an employee how he or she is performing and ideally, establishing a plan of improvement. The appraisal process consists of six steps Establish performance standards with employees; Set measurable goals; Measure actual performance; Compare actual with standards; Discuss the appraisal with the employees; and If necessary initiate corrective action.

If necessary initiate corrective action

Establish performance standards with employees

Discuss the appraisal with the employees

PROCESS OF PERFORMANCE APPRAISAL

Set measurable goals

Compare actual with standards

Measure actual performance

 Compensation Administration It is the process of dividing how much an employee should be paid. The important goals of compensation administration are to design a low-cost pay plan that will Attract,

Motivate and
Retain competent employees which is also perceived to be fair by these employees.

 Incentives and Benefits Organzation offer incentive compensation based on actual performance. Unlike incentives, benefits and services are offered to all employees as required by law including social security, insurance, workmens compensation, welfare amenities etc. Organizations have been offering a plethroa of other benefits and services as well as means of sweetening the pot i.e. Employee stock options, Birthday gifts, Anniversary gifts, Paid holidays and Club membership etc.