Human Resource management

Human Resource Management:

It is the process of acquiring, training, appraising, & compensating employees, & of attending to their labor relations, health & safety, & fairness concerns. OR HRM is also a management function concerned with hiring, motivating, & maintaining people in an organization. It focuses on people in organizations.

Scope of HRM:

The Scope of HRM is really vast. All major activities in the working life of a worker from the time of his or her entry into an organization until he or she leaves-come under the purview of HRM. The activities included are- Introduction to HRM, Employee Hiring, Employee & Executive Remuneration, Employee Motivation, Employee maintenance, IR, etc. HRM is a broad concept, where HRD & PM is a part of it. HRM differs from PM both in scope & orientation. HRM views people as an important source or asset to be used for the benefit of organizations, employees & the society. It is emerging as a distinct philosophy of management aiming at policies that promote mutuality- mutual goals, mutual respect, mutual rewards & mutual responsibilities. PM has a limited scope & inverted orientation. It viewed labour as a tool, the behavior of which could be manipulated for the benefit of the organization & replaced when it was worn-out.

HRM- Objectives & Functions:

The Primary Objective of HRM is to ensure the availability of a competent & willing work force to an organization.

- Societal Objectives: To be ethically & socially responsible to the needs & challenges of the society while minimizing the negative impact of such demands upon the organization.

- Organizational Objectives: To recognize the role of HRM in bringing about organizational effectiveness.

- Functional Objectives: It reminds the HRM that it has only functional value & should not become too expensive at the cost of the organization.

- Personal Objectives: To assist employees in achieving their personal goals. ( So as to keep workers retained & motivated ).

Functions:

Every manager must get things done through people. An effective manager should be able to utilize human & non-human resources to eventually achieve these goals.

1. Managerial Functions ( Planning, Organizing, Staffing, Directing & Controlling);

2. Operative Functions

- Employment- Job Analysis, Human Resource Planning, Recruitment, Selection, Placement, Induction;

- Human Resource Development- Performance Appraisal, Training, Management Development, Career Planning & Development;

- Compensation- Incentives, Bonus, Fringe Benefits;

- Employee Relations.

The Changing Environment Of HRM:

- Globalization Trends:

Globalization is the tendency of firms to extend their sales, ownership, &/or manufacturing to new markets abroad. E.g. Sony, Apple, Nike, Mercedes Benz are some firms that market all over the world. More globalization means more competition, & more competition means more pressure to be “ world class” to lower costs, to make employees more productive, & to do things better & less expensively. For consumers it means lower prices & higher quality on everything from computers to cars to air travel, but also the prospect of working harder & perhaps having less secure jobs. E.g. IBM shifted several 100’s analysis jobs abroad.

- Technological & Training Trends:

Technological Trends have been rapid & radical in India in recent years. The use of computer technology for better data management & communication is now pervasive in all the organizations. Till a few years ago, most of the government organizations & public sector banks were apprehensive of taking to this new technology, now even such organizations are quick to adopt new technologies. They have realized the importance & benefits of new & better technologies. They have decided to invest in new technologies & also to train their employees in adapting to this new technology. T&D of employees has to be a continuous process in any organization if it has to survive & progress.

- Quality of Work Life:

QFL Refers to the extent to which an employee’s work meets his professional needs. Every employee has some expectations from his work, like a sense of satisfaction or achievement, security, a high self-esteem etc. The quality of work life gets better when more & more of these employee needs are satisfied. Organizations in today’s world are continuously striving to improve the quality of anxieties, encouraging employee participation in work & employment related relations etc.

- The Impact of the Government:

Government policies & programs have a major effect on the way the markets operate. Today every one talks of globalization, diverse investment, & liberalization etc, which was absent before 1991. Various labor laws & acts formulated & amended over the years like ( Trade Unions Act, Payment of Wages, Gratuity Act)

- The Changing Attitudes of Workforce:

The First cost cutting measures adopted by any company to improve its bottom line is downsizing. Many companies believe that it is important to be lean & mean to survive in a competitive market. The concept of “Job Security” has become outdated as no employee knows when he might be asked to take leave & search for another job. Employees have realized the market dynamics & are no longer loyal to their employers as they used to be. Companies like Eicher, & ONGC have realized that a family-friendly environment acts like a competitive weapon. This has resulted in low absenteeism & turnover. E.g. ONGC encourages its employees children by rewarding them with merit scholarships. Eicher helps its employees with payment of their electricity bills so that they need not waste their time standing in long queues.

Line & Staff Aspects of HRM:

Line Authority gives managers the right or authority to issue orders to other managers or employees. It creates a superior-subordinate relationship. Staff authority gives the manager the right or authority to advise other managers or employees. It creates an advisory relationship. Line Managers have line authority. Staff managers have staff authority, as generally they cannot issue orders down the chain of command except in their own departments. HR Managers are staff managers. They assist & advise line managers in areas like recruiting, hiring & compensation. However line managers still have HR duties.

- Line Managers HR Duties: Placing the right person on the right job, Starting new employees in the organization ( orientation ), Training employees, Improving the job performance of each person, Developing the abilities of each person, Controlling labor costs, Protecting employees health & physical condition.

- Human Resource Manger’s Duties:

- A line Function: The HR manager directs the activities of the people in his or her own department & in related service areas. In other words, he or she exerts line authority within the HR Department.

- A Coordinate Function: HR manager acts as the “right arm of the top executive” to ensure that line managers are implementing the firm’s HR policies & practices.

- Staff Functions: Assisting & Advising line mangers is the heart of the HR manager’s job. He or she advises the CEO to better understand the personnel aspects of the company’s strategic options. HR assists in hiring, training, evaluating, rewarding, promoting & firing employees. It also administers the various benefit programs like health & accident insurance, retirement, vacation & so on.

HR Policies & Procedures:

HR Policies can be defined as the set of guidelines that determine the way in which employees are to be treated in organization. They are based on the organizational culture & the external environment, apart from the organizational objectives. These should aim at achieving both employee satisfaction & organizational objectives, without any conflict between the two. E.g. If an organization believes that its employees are its most important assets & that it needs to keep them happy, then its HR Policies would be employee-friendly. Similarly, if an organization’s goal is to grow rapidly in the market on the strength of its employees, this would be reflected in its policy to train & develop & invest in employees. If HR are treated as just factors of production, then HR Department would have a very limited role to play.

- Good HRM Policies enable the management to keep the workforce secure, satisfied, & motivated;

- They also help the management in deriving better employee performance, in better management & also in cost-savings;

- HR Policies need to find a balance between a number of factors like organizational objectives, individual expectations, market demands etc. ( It is difficult to formulate & implement);

- HR Policies need to be updated to match the changing needs of the organization & the employees;

- HR Policies should be easy to understand & implement. ( They should favor the employees of the organization & not leave room for any discrimination among them).

- HR Policies must be stable. Stability creates a climate of security & removes uncertainty from the minds of employees