Types of leadership

What is Human Resource Management? The functional area of an organization that is responsible for all aspects of hiring and supporting employees (e.g., providing and administering employee benefits). all the activities related to the recruitment, hiring, training, promotion, retention, separation, and support of employees functions within a company that relate to people Human resource management (HRM) is a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. Why do we need? is the effective use of human resources in order to enhance organisational performance the process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment, all with the goal of meeting the needs of the firm applying human resources within complex systems such that people succeed, performance improves, and human error decreases Human resource management operates through Human Resource Systems that bring together in a coherent way: HR philosophies describing the overarching values and guiding principles adopted in managing people. HR strategies defining the direction in which HRM intends to go HR policies, which are the guidelines defining how these values, principles and the strategies should be applied and implemented in specific areas of HRM. HR processes consisting of the formal procedures and methods used to put HR strategic plans and policies into effect. HR practices comprising the informal approaches used in managing people. HR programmes, which enable HR strategies, policies and practices to be implemented according to plan. Scope of HRM The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we may classify the same under following heads:
HRM in Personnel Management: This is typically direct manpower management that involves

manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development. It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, travelling policies and procedures and other related courses of actions.
HRM in Employee Welfare: This particular aspect of HRM deals with working conditions and

amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.

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It also relates to supervision, employee counselling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions with

labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes. The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

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The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows: 1. Human Resources Planning Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job Analysis Design Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. 3. Recruitment and Selection Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM. 4. Orientation and Induction Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. 5. Training and Development Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount. 6. Performance Appraisal Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. 7. Compensation Planning and Remuneration There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8. Motivation, Welfare, Health and Safety Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. 9. Industrial Relations Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.

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The objectives of HRM Objectives of Human Resource Management can be classified under four major categories. 1. Societal 2. Organizational 3. Functional 4. Personal 1. Societal HRM may contribute ethically and socially regarding the needs and challenges emerging in the society. If an organization fails to use its resources for society benefits in ethical ways it may lead to restriction by society. For example, society may limit the HR decisions through laws in hiring; it may limit laws that address discrimination, laws regarding safety or other areas of concern. 2. Organizational The main objective of HRM is to achieve organizational goals by bringing organizations effectiveness. HRM is not an end but it is a means to assist the organization in order to attain its objectives 3. Functional Functional objective of HRM deals with contributions of each department regarding their need and effectiveness in order to attain organization goal. All the resource or skill set get wasted if HRM is not able to fulfil up with the organizational demand. 4. Personal HRM also deals with personal objectives of the individuals so that personal and organizational objectives can be met or order to achieve maximum production and attain competitive advantage. These personal objectives are important in order to maintain, retain and to motivate employees. If this not done employees dissatisfaction and poor performance will result in attrition or low productivity. Other Objectives [Few other objectives...] 1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals. 2. To establish and maintain sound organizational structure and desirable working relationships among all the members of the organization. 3. To secure the integration of individual or groups within the organization by co-ordination of the individual and group goals with those of the organization. 4. To create facilities and opportunities for individual or group development so as to match it with the growth of the organization. 5. To attain an effective utilization of human resources in the achievement of organizational goals. 6. To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige, recognition, security, status.

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7. To maintain high employees morale and sound human relations by sustaining and improving the various conditions and facilities. 8. To strengthen and appreciate the human assets continuously by providing training and development programs. 9. To consider and contribute to the minimization of socio-economic evils such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged sections of the society. 10. To provide an opportunity for expression and voice management. 11. To provide fair, acceptable and efficient leadership. 12. To provide facilities and conditions of work and creation of favorable atmosphere for maintaining stability of employment.

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HRM System

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Strategic Human Resource Management Strategic Human Resource Management is the practice of aligning business strategy with that of HR practices to achieve the strategic goals of the organization. Strategy is the approach selected to achieve defined goals in the future. According to Chandler (1962) it is: The determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out those goals. Strategy has three fundamental characteristics. First, it is forward looking. It is about deciding where you want to go and how you mean to get there. It is concerned with both ends and means. In this sense a strategy is a declaration of intent: This is what we want to do and this is how we intend to do it. Strategies define longer-term goals but they also cover how those goals will be attained. They guide purposeful action to deliver the required result. A good strategy is one that works, one that in Abells (1993) phrase enables organizations to adapt by mastering the present and pre-empting the future. As Boxall (1996) explained: Strategy should be understood as a framework of critical ends and means. The second characteristic of strategy is that the organizational capability of a firm (its capacity to function effectively) depends on its resource capability (the quality and quantity of its resources and their potential to deliver results). This is the resource-based view, based on the ideas of Penrose (1959) who wrote that: the firm is an administrative organization and a collection of productive resources. It was expanded by Wernerfelt (1984) who explained that strategy is a balance between the exploitation of existing resources and the development of new ones. Resource-based strategy theorists such as Barney (1991, 1995) argued that sustained competitive advantage stemmed from the acquisition and effective use of bundles of distinctive resources that competitors cannot imitate. The resource-based view is a major element in strategic HRM, as discussed later in this chapter. The third characteristic of strategy is strategic fit the need when developing HR strategies to achieve congruence between them and the organizations business strategies within the context of its external and internal environment. The focus is upon the organization and the world around it. To maximize competitive advantage a firm must match its capabilities and resources to the opportunities available in its environment. The concept of t or integration is also a major feature of strategic HRM. The aim of SHRM (Strategic Human Resource Management) is to ensure that HR strategy is not a means but an end in itself as far as business objectives are concerned. The idea behind SHRM is that companies must fit their HR strategy within the framework of overall Business objectives and hence ensure that there is alignment between the HR practices and the strategic objectives of the organization. If we take real world examples, many organizations in recent times have dedicated people managers whose sole function is to look after the enabling and fulfilling needs of the resources. This is a marked change from treating people as just resources to treating people as assets. For instance, Infosys states that people are its assets and the famous statement by Mr. Narayana Murthy, one of the founders of the company that the capital of Infosys walks in every morning and walks out every evening has to be taken in this context.

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Elaborating on this point, one finds that organizations tend to leverage upon the capabilities of the people employed there and ensuring that the human capital is nourished and nurtured as a source of competitive advantage. This translates into a dedicated HR department and people managers in every group dealing exclusively with employee issues as opposed to treating this as a line management function.

Strategic HRM Model

Factors influencing HRM Size of workforce Composition of workforce Employee expectations Changes in technology Life style changes Environmental challenges Personnel function in future o o o o o o o Job redesign Career opportunities Productivity Recruitment and selection Training and development Rewards Safety and welfare

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Changes in 21st century compacting HRM o o o o o HR as a spacing board for success Talent hunting, developing and retaining Lean and mean organizations Labour relations Healthcare benefits

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