INTRODUCTION TO HR

Human Resource
The term human resources refers to The total knowledge, skills , creative abilities, talents and aptitudes of an organisations work force, as well as values, attitudes and beliefs of the individuals involved According to Leon C. Megginson

Human Resource Management

Human resource management deals with the people dimension in the management. Ivancevich and Glueck observed personnel/human resource management is the function performed in organisations that facilitates the most effective use of the employees to achieve organisational and individual goals.

Human Resource Management

Each organisation comprises of people. The organisation is utilising the services of people. Each organisation is trying to enhance their skills, motivate them to perform at better levels and ensure that they remain committed to the organisation. This is true for all organisations.

Four functions of HRM

Acquiring Developing

Motivating
Retaining

Acquiring

The acquisition function starts with planning and ends with staffing.

Planning: It determines, the number and type of people required. Staffing: it means selection recruitment induction and orientation transfer career progress separation

Developing

This function involves

Training management development career development

Motivating

This function includes identifying needs of people and finding ways to satisfy them

Retaining

The retention function is concerned with providing a conducive work environment and maintaining their commitment to the organisation.

History of HRM

Scientific Management Approach Human Relations Approach Human Resource Approach

Scientific Management Approach

In the begenning of the 20th century, managers accepted the concept of economic man. It means a worker is motivated by economic gain. Fredrick Taylor, who is considered to be the father of scientific management focused on the study of motions that were required for each job, the tools used and the time needed to accomplish each task. Taylor developed fair performance standards.

Scientific Management Approach

Taylor proposed differential piece rate system. The worker would get higher rate of pay for every unit of output that exceeds the daily output standard. It was believed that the worker would would maximise production in order to satisfy their monetary needs Personnel people were involved in job analysis, designing wage incentive programs, training, managing canteen facilities etc.

Human Relations Approach

Two important developments took place. Hawthorne studies pointed out that the sentiments of employees were influenced by group relationships and management support. Secondly, the unions became stronger. These development led to the greater acceptance of human relations

Shortcomings of Human Relations Approach

The approach is based on the concept a happy worker is a productive worker is an oversimplified concept and is valid only for a part of the workforce. This approach did not recognise individual differences. Each employee is unique. His needs are different. It did not give adequate importance to standards and work rules. This approach failed to recognise the need of performance management, career development, job environment etc. This approach became outdated during 1950s and 60s

Human Resource Approach

This approach treats organisational goals and employee needs as being mutual and compatible. It is based on the following principles: Employees are asset to an organisation. The resources used in their development are an investment. The organisation gets a better return in the future

Human Resource Approach (principles contd )

Policies, programs and practices must cater to the needs of their employes. These should help them in their personnel development. It is necessary to create and maintain a conducive work environment to encourage the employees to develop and use their knowledge and skills for the benefit of the organisation

HRM Functions

HRM functions can be divided into two categories

Managerial Functions Operative Functions

Managerial Functions

Planning Organising

Staffing
Directing

Controlling

Planning

Planning includes identifying human resource requirement and forecasting personnel needs. It also involves foreseeing the changes in employee attitudes and finding ways of handling them.

Organising
It involves developing roles and establishing relationships among employees to enable them to contribute collectively towards the attainment of the organisational goal.

Staffing
It aims at obtaining and maintaining competent personnel in various positions at all levels It includes manpower planning, recruitment, selection, placement, induction, transfer, career progression, and separation

Directing
This activity involves co-ordination between different departments to ensure maximum utilisation of human resources.

Controlling

This function measures performance against goals and plans, identifies deviations and places the process back on track

Operative Functions

Employment Human Resource Development Compensation Employee Relations

Employment

Job analysis: it is the process of obtaining information regarding the requirements of a job. The preparation of job description and job specification. It provides guides for job design and re-design It involves human resource planning, recruitment, selection, placement, induction.

Human Resource Development

This involves performance, appraisal, training, managerial development and career development.

Compensation

This is concerned with job evaluation, determining wages and salary rate. wage incentive programs bonus and fringe benefits

Employee Relations

This mainly deals with developing teams, counselling and grievance handling

Role of HR Executive

The service provider: An HR executive can help by providing information on market statistics of personnel availability, pay rates etc and interpret labour law. The executive: carry out activities like recruitment, compensation etc. The facilitator: HR acts as facilitator when training and appraisal activities are planned. The consultant: line managers seek the advice of HR specialist to resolve grievances smoothly. The auditor HR specialist ensure that all members of the management perform their respective roles.

Line and Staff Functions

The department or employees of firm that perform the core activities and contribute to its business directly are called the line functions. Like manufacturing or marketing. On the other hand, departments or employees that perform a support function and contribute indirectly to business of a firm are termed the staff function. However, in the changing economic scenario, where more and more business are becoming service oriented, it is difficult to classify functions as line and staff. In a BPO operation even HR function becomes a line function

Expectations and complaints of the line managers

HR staff take up line authority in case of union management relations/negotiations. Line managers feel that HR managers do not offer balanced advice. As staff are not accountable for the end results, they tend to innovate and experiment. HR take the credit for all the success and dissociate themselves from any failure. HR staff do not see the whole picture. They look at the picture from their perspective only. This might be because of inadequate knowledge of other functions of business.

How the HR Function Responds

Line function is prejudiced and biased against the HR function. Line function does not understand the value of staff. Line function does not know how to make effective use of the HR function. Line function is not in favour of experimentation. The HR function is handicapped as it is not given enough power.

How to Resolve the Conflict

Understanding the markets and the business better. Having a complete understanding of organisational process. Being empathetic to the limitations of the line functions. Build an atmosphere of trust and transparency. Work towards win- win situation Taking an active role in designing the strategy of the organisation

HR STRATEGIES

Communication

Continuous communication regarding change. The standing of a particular organisation in the global scene.

Commitment

Committed employees enhance productivity. Performance management rewards, career planning, work culture etc. are used

Quality Strategies

TQM should be a way of life. HRD system should aim at this.

Customer Orientation Throughout The Co.

HR strategies to link customer satisfaction

Challenging Role of HR
HR & Boosting Productivity At merck & co. HR helps employees adapt to the increased pressure in their downsized departments. HR and Service Employees need to develop temperament, Maturity, social skills and tolerance for frequent contacts that customer service jobs require. Selection training, career planning help employees to do such jobs well

Challenging Role of HR
Quality Improvement TQM, Six Sigma, Kaizen, ISO certification need to be done. These require organisation wide commitment at all levels and across all functions. Training, team work, allocation of resources, long-term perspective are important. Changing Attitudes of Workforce Knowledge professional would prefer organisations that have strong values, performance ethics etc. HR system are developed for these lots of benefits to extend help are provided.

Myths About HRD

HRD MEANS TRANING: It is far more than training. HRD MEANS PROMOTION: No one gets promotion because of HRD. It depends on performance. HRD MEANS FAT SALARIES: Employees believe than salary revisions were not under taken as they did not have a competent HRD manager

Myths About HRD

HRD means reward: Appraisal depends on line manager too. HRD means having a good time : HRD sponsors for training program. HRD depends on the top management HRD is the job of HRD alone: line managers have very important role to play