Module 1 HRM
Module 1 HRM
DEFINITION OF HRM
According to FLIPPO, "human resource management is the planning, organizing,
directing, and controlling the procurements, development, compensation, integration,
maintenance and reproduction of human resource to the end that individual,
organisational and societal objectives are accomplished".
1. Comprehensive function:
The main function of human resource management is to manage people at work.
It is a comprehensive function which covers all the types of people at all levels in the
organisation.
2. Pervasive function:
Human resource management is comprehensive as well pervasive. It is inherent in
all organisations and at all levels. It Is not confined to industry alone. It is equally
useful and necessary in government, armed forces, sports organisation, and the like. It
applies to all the functional areas e.g., Production, marketing, finance, research,
recruitment, selection, development, and utilisation of people and is an integral part of
any organized effort.
3. People oriented:
Human resource management is a people-oriented function and is concerned with
employees as individuals as well as group.
5. Continuous process:
Human resource management is a continuous process. It is not a one-shot
function, rather it is a never-ending exercise.
A. MANAGERIAL FUNCTION:-
Management aims at getting things done by others. Managerial function deal with
planning, organising, directing, coordinating and controlling the activities of employees
in an enterprise.
B. OPERATIVE FUNCTION:-
These functions are related to procuring, developing, compensating, integrating and
maintaining a work-force for attaining organisation and goals.
4. Maintenance:- This function deals with sustaining and improving conditions that
have been established. Better conditions of work should be maintained at all times.
The employees will feel happy to work under such conditions.
5. Emerging issues:- Some other important issues that can motivate people to give
their best in a dynamic and ever changing environment or as follows:
1) Personnel records
2) HR audit
3) HR research
4) HR accounting
5) HR information system
6) Stress and counselling
7) International HRM.
EVALUATION OF HRM
Modern concept of HRM has developed to through number of stages.
4) TheHumanitarian Concept
The humanitarian concept, is based on the belief that employees had certain, rights
as human beings and it was the duty of employers to protect these rights. Hawthorne
Experiments generated considerable interest in human problems of the work place.
This approach is therefore, known as human relations concept.
OBJECTIVES OF HR POLICIES:-
1) HR policy should enable the organisation to fulfill or carry out its main objectives.
2) HR policy should be designed in such a way that a healthy competition and
effective co-operation among workers may be promoted and better result may be
achieved.
3) HR policies should aim at the best and the maximum use of available human
resources.
4) HR policy also aim to good employer, employee relations.
5) HR policies should aim at employee satisfaction also. Individual satisfaction is
linked to the monetary and non-monetary incentives provided by the organisation to
the workers. This ensures good wage and salary administration. The general attitude
of the management towards the workers should be reflected by HR policies.
6) HR policies should provide the opportunities for the promotion to workers
within the organisation.
7) HR policies should seek to provide job security to workers.
PRINCIPLES OF HR POLICIES:-
1) Principal of Common Interest. Employees must have a chance for a better
standard of living, better security and opportunity to live a fuller and better life. In
return, the employer must be able to get the maximum possible return.
3) Principle of development.
The organisation must provide ample opportunities for the training and growth of
employees.
4) Principle of recognition of work and accomplishment.
There must be a direct relationship between work and accomplishment.
7) Principle of change.
Employees always resist change, which may be pleasant or unpleasant. Therefore, the
employees should be prepared by the management well in advance to face the changes
as and warranted.
COVERAGE OF HR POLICIES:-
a) Equity:- Treating all the employees fairly and justly and adopting and even
handed approach.
b) Consideration:- Considering individual circumstances when decisions affect
the employees prospects, seniority or self-respect.
c) Quality of work life:- Increase the employees interest in the job and organisation
by reducing monotony, increasing variety of responsibility avoiding stress and
strain.
a) EMPLOYMENT POLICIES:-
a) Provision of equal employment opportunities.
b) Selecting the candidates based on job requirements
c) Encouraging the employee on the job and in the organisation.
b) PROMOTION POLICIES:-
Promotion policies should attempt to reconcile the demands of employee for growth and
organization’s demands for fresh and much more talented employees.
c) DEVELOPMENT POLICIES:-
a) The kind of employees to be Trained
b) Time span of training programme
c) Techniques of training
d) Rewarding and awarding system
e) Qualification of employees for self-advancement etc.
f) Encouragement of employees for self-advancement etc.
g) Career planning and development
h) Performance appraisal
i) Organisational change
j) Organisational development.
b) Counselling role.
The HR manager place the role of a counselor with the employees also. He
discusses the various problems of the employees relating to work, career, there
supervisors, colleagues, health, family, financial, social etc. And suggest them means
to minimise and overcome those problems.
e) Mediator's role.
The HR manager often acts as a mediator in the organisation. Whenever there is a
friction between two employees, to groups of employees, superiors and the
subordinates and employees and management, the HR manager has to act as a
mediator, so as to maintain industrial harmony.
f) Liaison Role.
The HR manager acts as a representative of the organisation so as to give a overall
picture of the organisation and operations to the employees particularly in case of
industrial disputes or grievance redressal. Similarly, he acts as employee’s
representative in representing their problems to the management particularly in
concerns where trade unions are not there.
g) Legal role.
The HR manager place this firefighting role of grievance handling, settlement of
disputes, handling disciplinary cases, collective bargaining, joint consultation,
interpretation and implementation of various labour laws, contacting lawyers
regarding court cases, filing suits in labour court, industrial tribunals, civil courts
and the like.
h) Welfare role.
HR manager is expected to be the welfare officer of the company. As a welfare
officer, he provides and maintains (on behalf of company) canteens, hospitals,
Creches, educational institutions, clubs, libraries, conveyancefacilities, cooperative
credit securities, communication stores etc.
i) Controller's role.
HR manager ensures that the HR policies and procedures approved and adopted by
the management are being consistently carried out in all the departments.
COMPETENCIES OF HR PROFESSIONALS:-
The HR manager should possess all the competencies required of a manager in his
effective functioning.
ULRICH AND BROCKBANK, identified 6 core competencies that high performing
HR professionals embody in 2007.
1. Credibleactivist.
This competency is the top indicator in predicting overall outstanding performance,
suggesting that mastering it should be a priority. The credible activist is respected,
admired, legend to our and offer a point of view, takes a position and challenges
assumptions by:
● Delivering results with integrity.
● Sharing information
● Building relationships and trust
● Doing HR with an attitude (taking appropriate risk, providing candid
observations, influencing others).
2. Cultural steward.
HR has always owned culture. Of the six competencies, cultural steward is the second
highest predictor of performance of both head professionals, and HR departments. The
cultural steward organizes, articulates and helps shape a company's culture by:
● Facilitating change
● Crafting culture
● Valuing culture
● Personalizing culture (helping employees find meaning in their work,
managing work/life balance, encouraging innovation.
4.Strategy architect.
Saturday architects are able to recognize business trends and their impact on the
businesses and to identify potential road blocks and opportunities.
5.Business Ally.
HR contributes to the success of a business by knowing how it makes money, who the
customers are, and why they by the company's product and services. The mantra about
understanding the business how it works, the financials and strategic issues, remains
as important today as it did in past.
6.Operational executor.
HR people maybe running a risk in paying too little attention to these nuts-and-bolts
activities. The operational executor administers the day- to -day work of managing
people inside an organisation by:
● Implementing work plan policies
● Advancing HR technology
Older professionals who would have succeeded 30, 20 even 10 years ago, or not as likely
to succeed today. They are expected to play new roles. To do so, they will need the new
competencies. HR should reflect on the new competencies and what they reveal about
the future of the HR profession.
HRM CHALLENGES
Humans have always been complex and managing human resources in an organisation
has never been an easy task. Now, the digital age has added even more complexity to
human resource management.
In today's competitive world, the major challenges to be faced by human resource
managers are classified into three categories:
● Environmental challenges
● Organisational challenges
● Individual challenges
B) ORGANISATIONAL CHALLENGES:-
In addition to the environment and factors, there are several factors which are
internal to the organisation.
1) Cost control:- Cost management is a major factor in the success or failure of any
business. As organisations are becoming more concerned with cutting costs, HRM
departments must show the value they add to the organisation through alignment
with business objectives. Another consideration is the cost of hiring and intern over.
The hiring process and the cost of the turnover in an organisation can be very
expensive. By creating a recruiting and selection process in cost control in mind, HR
can contribute directly to cost control strategies of the organisation.
C) INDIVIDUAL CHALLENGES:-
These forces are related to the personal aspect of the organisation. The decisions
related to the specific individual employees are included in the individual challenges
for the HRM.
1) Empowerment:- Employees empowerment can begin with the training and
converting a whole company to an empowerment model. Conversely, it might merely
give employees the ability to make some decisions on their own. A management
practice of sharing information, rewards, and power with employees so that they can
take initiative and make decisions to solve a problem and improve service and
performance.
5) JOB INSECURITY:- Majority of employees desire to get steady and save job rather than
a job with the promotional future. Even most successful organisations lay off their
employees in the period of cut-throat competition. All these things create fear among
employees about the insecurity of their jobs which would hinder their effective
performance. A challenge for the HR manager is to keep a balance between the employee
needs of security and the organization’s need for downsizing.
New work ethics:- For setting up and enforcing good quality standards, the
human resource managers will have to develop a new work ethic. Changing
work ethic will require increased emphasis on individuals. As a result, jobs will
have to be redesigned to provide challenge to the employees.
New personnel policies:- New and better personal policies will be required for
the workforce of the future. Human resource managers have to concentrate on
performance related compensation, goal-oriented performance appraisal,
development-oriented training system, management by objectives, team
building, participate to management and other sophisticated techniques.