The Concept of Human Resource Management Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success. Human resources has at least two related interpretations depending on context. The original usage was traditionally called labour. It is a measure of the work done by human beings. This perspective is changing as a function of new and ongoing research into more strategic approaches. This first usage is used more in terms of 'human resources development', and can go beyond ust organizations to the level of national importance. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management'. The terms !human resource management! and !human resources! "H#$ have largely replaced the term !personnel management! as a description of the processes involved in managing people in organizations. In simple sense, H#% means employing people, developing their resources, !personnel management! as a description of the processes involved in managing people in organizations. Human resource management is to maximize the return on investment from the organization's human capital and minimize financial risk. &resently Human #esource %anagement is an integral but distinctive part of management. Its ob ective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programs relating to human resources to optimize their contribution towards the realization of organizational ob ectives. H#% helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. 'enerally, human resource management refers to the management of the entire workforce of an organization in a reliable, honest and professional manner. It is the responsibility of human resource managers in a corporate context to conduct these activities in an effective, legal, fair, and consistent manner. That(s why the demand of Human #esource "H#$ management has been dramatically increased these days. )rom corporate sector to banking industry, from non profit organizations to human protection groups, from IT solution companies to printing industry* human resource management is playing a critical role in all the other sectors of the economy.

Dr. S. P. Mishra

Page 1

In the same year. P. to the later half of the 67th century /. and purporting to promote their professional interests. industrial employment rose by >. In 69:7.7 and 6:.66. executive development. the number of registered trade unions increased from AAA to 9A. to 99:.. 8elhi. in his treatise titled !/rtha01hastra!.. The %adras 5abour <nion was organized thereafter in 6:69... S. The wages were paid strictly in terms of 2uantity and 2uality of work turned out and punishment were imposed for unnecessarily delaying the work or spoiling it.ongress was organized. percent of the total industrial workforce Dr. The above conditions prevailed till the enactment of the )actory /ct of 6996. the total claimed union membership also went up by >. There prevailed logical procedures and principles in respect of labour organizations such as 1hreni or guild system and co0 operative sector. the India trade and commerce were revived.0. the first labour organization designated as -ombay %ill Hands /ssociation was established.. @99 "i. 8uring the %ughal rules. /hmedabad and various other places. The early thirties witnessed a highly0weakened trade union century -. 8uring early -ritish rules.= percent$ and the total membership of union submitting returns increased from . In 6:>>. percent$. 8uring the period 6:.8. the guild system was followed by cooperative sector consisting of craftsmen and traders. The act further provided that the minimum age of children for employment should be seven hours and that the maximum working hours for them should not exceed seven hours a day and that too in the day0shift.e...e..9 times. 1everal !+arkhanas! were established at /gra. 5ater on. incentive systems and performance evaluation. /ccording to the /ct. 6@. The 'overnment used to take active interest in the operation of both public and private sector enterprises and provided well0enunciated procedures to regulate employer0employee relationship. +autilya provides an excellent discussion on staffing and personnel management embracing ob descriptions. )rom the 6. 2ualifications for obs. -etween 6:@:0. the &ostal union at -ombay was established. the . by =7. in 6:7.entral 5abour -oard was established to federate the different unions in the -ombay city and the /ll India Trade <nion .alcutta and in 6:7=. The concept of !4arnashram! or caste system was originally based on these principles. However.. 1ubse2uently.. there are principles of the division of labour. /gain.Evolut on of Human resource management +autilya provides a systematic treatment of management of human resources as early as . there prevailed a laissez0faire policy towards the business.. were conducive to the rapid growth of the trade unionism. In course of time. The working conditions were appalling. the conditions prevailing five years before as well as during the 1econd ?orld ?ar. the relationships between the employer and employees were marked by ustice and century -. 3umerous professional societies were formed. selection procedure. the printers' <nion at .=06:A7 while. living conditions were sub0human and several abuses prevailed in indigo plantations. . Mishra Page 2 . in tea plantation. the workers employed in the factories were allowed a week off0day and provisions were also made for inspection as well as limiting he hours of work for women workers to eleven per day. "i. the indentured labour system involving migration of Indian labour to other countries on contract basis was abolished. In 6:A7.@ times. 5ahore. by >:. these professions emerged to be hereditary.

Human Resource Management! "el efs The Human #esource %anagement philosophy is based on the following beliefsE 1.>.9 of the %ines /ct.. / healthy climate with values of openness. H#% can be planned and monitored in ways that are beneficial both to the individuals and the organization. =. 5.. 6. Human resource management "H#%$ is the function performed in organizations that facilitates the most effective use of people "employees$ to achieve organizational and individual goals. DE#INITION 1ome of the definitions are as follows.e. section . It is every manager's responsibility to ensure the development and utilization of the capabilities of subordinates. 6:. if the organization perpetuates a feeling of belongingness. Dr. trust. Bmployee commitment is increased with the opportunity to discover and use one's capabilities and potential in one's work. mutuality and collaboration is essential for developing human resource. Bxplicitly. the activities of &ersonnel 8epartment in different public and private sectors have multiplied. 6:.: of the )actories /ct. 1.was claimed to be unionized. In addition to the industrial relations functions "although sometimes the industrial relations forms a separate department$. the &ersonnel 8epartment is responsible for other varied functions including employment. the total membership is estimated to be around . %anagement of human resources is being regarded as a specialized profession such as that of medicine and law. safety. Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent. it became obligatory for the0employers to employ a ?elfare Cfficer in a factory employing . 5ikewise. 2. wage and salary administration and research and development. The Head of the &ersonnel 8epartment is associated with top management and helps it in the formulation of personnel policies for the company. during post0independence period. >9 percent of total workforce. training. 4. 3. the activities involved in &ersonnel 8epartment are akin to those performed in this department in any other western countries. it does not mean that the functions of &ersonnel 8epartment are entirely limited to welfare activities. However.77 or more workers. Today. empowers the 'overnment to specify employment of welfare officerDofficers. enthusiasm. S. /ccording to the provisions of section . P. Bmployees feel committed to their work and the organization. Indeed. Mishra Page 3 .9. Bmployees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs.@ million i.

Human resource management "H#%$ is defined as staffing function of the organization. and recruitment. $ersonal management &ersonal management is related to administrative discipline of hiring and developing employees so that they become more valuable to the organization. H#% aims at developing people through work. ". &ersonnel management is the responsibility of all those who manage people. performance appraisal. selection. Human resources is said to incorporate and develop personnel management tasks. or other organization. There are various models of personnel management.$ orienting and training. industrial relations. and health and safety. 3.$ determining and managing wages and salaries. while seeking to create and develop teams of workers for the benefit of the organization.2. 5. S. compensation. 1o. of which human resource management is the most recent. Human resource management "H#%$ encompasses those activities designed to provide for and co0ordinate the human resources of an organization. ". human resources is described as much broader in scope than personnel management. as well as a description of the work of specialists. as it involves the continuous development of functions and policies for the purposes of improving a company(s workforce. It includes "6$ conducting ob analyses. training. It includes the activities of human resources planning. and safety. Human resource management "H#%$ is defined as all methods and functions concerning the mobilization and development of personnel as human resources. P. It is the part of management that is concerned with people and their relationships at work. It can be described as reactive. training. Dr. Mishra Page 4 . government administration. with the ob ective of efficiency and greater productivity in a company. D fferences %et&een $ersonal Management '$M( ) Human Resources Management 'HRM( / primary goal of human resources is to enable employees to work to a maximum level of efficiency. "A$ providing benefits and incentives. -y contrast. "@$ selecting the right people for the ob. &ersonnel management includes administrative tasks that are both traditional and routine. 4. orientation. conditions of employment. properly rewarded and motivated. and implement personnel policies such as recruitment. "9$ resolving disputes. ">$ planning personnel needs. &ersonnel managers advise on. when a difference between personnel management F human resources is recognized. providing a response to demands and concerns as they are presented. formulate. recruitment. It is proactive. Human resource management "H#%$ s the management of the workforce of a business to ensure sufficient staff levels with the right skills. performance appraisal. ":$ communicating with all employees at all levels. human resources involve ongoing strategies to manage and develop an organization's workforce. "=$ appraising performance.

9. &% is the exclusive responsibility of the personnel department. &% is primarily concerned with recruitment. There are fifteen "6. )rom the personnel management point of view. work groups. on going development function aimed at improving human processes.$ differences between &ersonal %anagement "&%$ and Human #esource %anagement "H#%$. S.. &% is an independent function with independent sub functions. on the other hand. ?ith human resources. effective strategies for meeting challenges. >. . =. employee satisfaction provides the motivation necessary to improve ob performance. H#% is proactive. responding to demands as and when they arise. %anagement of these people is &%. bonuses. P. The scope of &% is relatively narrow with a focus on administrative people.&ersonnel management is considered an independent function of an organization. tends to be an integral part of overall company function. rewards. routine. and ob creativity are seen as the primary motivators. and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel0related tasks. abilities. The opposite is true of human resources. talents. all of an organization(s managers are often involved in some manner. creative abilities and skills D competencies &% is traditional. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces.. H#% is the management of employee(s knowledge. . Mishra Page 5 . ?ith human resources. maintenance oriented. &ersonnel mean employed persons of an organization. administrative function whereas H#% is continuous. &% is treated like a less important auxiliary function whereas H#% is considered a strategic management function &% is reactive. Those are as follows 6. H#% follows the system thinking approach. @. and the simplification of work responsibilities. aptitude. It is typically the sole responsibility of an organization(s personnel department. &ersonnel management typically seeks to motivate employees with such things as compensation. Human resource management holds that improved performance leads to employee satisfaction. Dr. anticipating. The scope of H#% views the organization as a whole and lays emphasis on building a dynamic culture. selection and administrative of manpower. H#% takes effort to satisfy the human needs of the people at work that helps to motivate people to make their best contribution. planning and advancing continuously. Human resource management. A. H#% is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the human resource related functions.

H#8 thus depends on the decisions of H#%. 6. ob simplification and so on... H#% takes decisions on H#8 plans. P. 67. Mishra . 66.:. rewards. &% treats employee as a commodity or a tool or like e2uipment that can be bought and used. Bmployee is treated as a resource and as a human being. 6>. 6@. 8ifferences between Human #esource %anagement "H#%$ and Human #esource 8evelopment "H#8$ 6. H#8 focuses on those learning experiences which are organized for a specific period to bring about the desired behavioral changes. In &% employee are considered as cost centers and therefore. Important motivators in &% are compensation. &% preserves information and maintains its secrecy. management controls the cost of labour. H#% emphasizes that employees. In H#% communication Is one of its main tasks which take into account vertical. &%(s angle is that employees should be used mostly for organizational benefits and profits. Page 6 >. In &% improved satisfaction is considered to be the cause for improved performance but in H#% it is the other way round "performance is the cause and satisfaction is the result$. Dr.. 1cope of H#% is wider. . H#% treats employees as profit centres and therefore. 1cope of H#8 as compared to H#% is narrower. . H#% is a subset of the entire management processes of an organization. 6. Bmployee in H#% is treated not only as economic unit but also a social and psychological entity. employee is treated as an economic unit as his services are exchanged for wagesDsalary. H#% considers work groups. the management invests in this capital through their development and better future utility. their abilities and their attitudes constitute an important organizational as well as employee(s goals. lateral and feedback type communication. H#8 is a subset of H#%. H#% angle emphasizes on the mutual benefits.. @. H#% manages and develops the human elements of an organization in its entirely on longer term basis. H#8 emphasizes mainly on training and development of employees. S. challenges and creativity on the ob as motivators. both of employees and their families and also the company. In &%.

6. transfer. $ersonnel aspect This is concerned with manpower planning. Thus H#% and H#8 are interdependent. training and development. 7. team work and inter0team collaboration. 2. 11. To help the organization reach its goals. The activities can be broadly divided into three groups. 1o ob ectives of H#% are influenced by organizational ob ectives and individual as well as social goals. selection. To ensure respect for human beings. productivity etc. To increase to the fullest the employee's ob satisfaction and self0actualization. H#% is at its centre has H#8. P. H#% takes care of all human needs and tries to satisfy these needs so that the employees are motivated from all angles to contribute their best to achieve organizational goals. placement. To inculcate the sense of team spirit. To be ethically and socially responsive to the needs of society. H#8(s cooperation is important for overall success of H#%. To develop and maintain a 2uality of work life. its ob ectives should be in tandem with broader ob ectives of H#%. as seen in the diagram. To identify and satisfy the needs of individuals. To enhance employee's capabilities to perform the present ob. Mishra Page 7 .A. recruitment. remuneration. To develop overall personality of each employee in its multidimensional aspect. incentives. Human Resource Management! Scope The scope of H#% is very wide and vast. To achieve and maintain high morale among employees. 4. 8. 12. 13. /ll ma or activities in the working life of an employee come under preview of H#%.. H#8 focuses on upgrading the skills and competencies or the employees in order to improve the performance of the employees on the ob. O%*ect ves of Human Resource Management Cb ectives are pre0determined goals to which individuals or group activity in an organization is directed. S. To provide the organization with well0trained and well0motivated employees. promotion. To ensure effective utilization and maximum development of human resources. 1. Dr. @. H#8 has to work within the realm of H#% and therefore. 1. To e2uip the employees with precision and clarity in transaction of business. 6. =. layoff and retrenchment. To ensure reconciliation of individual goals with those of the organization. 9. 10. 5.

In.ustr al relat ons aspect This covers union0management relations. rest and lunch rooms. etc.2. 2. education. collective bargaining. etc. Mishra Page 8 . oint consultation. Dr. 3. It is pervasive in nature as it is present in all enterprises. settlement of disputes. housing. It tries to help employees develop their potential fully. 3ature Cf H#% Bmployee 1election Bmployee Bducation HUMAN RESOURCE MANAGEMENT Bmployee #emuneration Bmployee Health F 1afety Bmployee %otivation Nature of Human resource management Human #esource %anagement is a process of bringing people and organizations together so that the goals of each are met. transport. 3. P. recreation facilities. +elfare aspect It deals with working conditions and amenities such as canteens. S. grievance and disciplinary procedures. The various features of H#% includeE 1. medical assistance. Its focus is on results rather than on rules. creches. health and safety.

It helps an organization meet its goals in the future by providing for competent and well0motivated employees. P. 8. HRM ! Strateg c Role an. economics. 7. It is all about people at work. Mishra . The operative function belongs to such activities concerned with procuring. It is a multidisciplinary activity. 1hould try to work as profit centre and economize its operations. Those are "a$ operative function and "b$ managerial function. 6. utilizing. utilizing knowledge and inputs drawn from psychology. :. #unct ons 1trategic #ole • • • • • • • H#% should be strategic business partner of an organization 1hould support business strategies In addition to internally representing the employees. 1hould add value to the organization. both as individuals and groups. organizing. #unct ons of HRM H#% involves two categories of function. and maintaining an efficient workforce. coordinating. Training and 8evelopment Page 9 /ttracting talent 1election process %otivating the talent to oin the organization Dr. It encourages employees to give their best to the organization. It tries to build and maintain cordial relations between people working at various levels in the organization. S. It tries to put people on assigned obs in order to produce good results. The managerial functions are common to all managers and those are planning. Cne function can not work without the other and they are interrelated. 1taffing %anpower or Human #esource &lanning • • • • Gob analysis E competency matrix Gob description D position description Gob evaluation 8etermination of actual number of employees needed #ecruitment and selection of people • • • >. developing. should have external focus )orward thinking and proactive /ssist the organization in creating and maintaining competitive edge. 5.4. 1o the important functions of H#% can be listed below E 6. etc. directing and controlling. compensating.

. Mishra Bstablishing fairness 8esigning and implementing employee relations Page 10 /wareness creation 1ystem for safe working condition 8esign D selection and implementation of health schemes Installing and maintaining two way communication #ecognition motivation %onetary motivation 8etermination of salary and benefit packages . P.ommunication • Health • 1afety • • Bmployee relations • • Dr. %aintenance .Induction • Training • • • • 8evelopment • • .ompetition and benefits • #ewards • • .areer planning • • @.ompetency mapping and gap analysis /ppraisal Training need assessment Training process &otential assessment 8evelopment process /cclimatization process for new employees . %otivation /ppraisal • • /ppropriate appraisal system /ppraisal process )ast track "talent management$ 3ormal career path management . S.

. =. 9. 1etting general and specific management policy for organizational relationship. 5. >.onfidentiality F &erformance appraisal In order to achieve the above ob ectives. selection and placement of personnel. :. 8eveloping F maintaining motivation for workers by proper incentives. Mishra Page 11 . 10. 8. Bmployee recruitment Training and development of employees ?orkforce management Bvaluation of employee performance &romotions and transfer of employees #edundancy Bmployee relations Crganization of data Total rewards .. contract negotiation and grievance handling. 1ocial security and welfare of employees. P. /ppraisal of performance of employees.. 6.5egalities • • • • • 8ispute 'rievances <nions Bmployment related legalities Health and safety related legalities /lthough there are many functions of human resource management but the most effective of them includeE 6. Human #esource %anagement undertakes the following activitiesE 1. 66. #emuneration of employees.ompetency mapping Time management . 1taffing the organization. 4. 7. Training and development of employees. 12. S. 3. 6@. 2..ollective bargaining. @.areer development . 11. 6. . 6>. 67. A. Dr. 9. . Taking corrective steps such as transfer from one ob to another. Human resource or manpower planning. /iding in the self0development of employees at all levels. #ecruitment.

Dr. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. 8ownsizing and rightsizing of the organizations. Gob #otation. #eviewing and auditing manpower management in the organization &otential /ppraisal. 3. 15. which will work as various issues affecting its strategyE 1. &olitical ideology of the 'overnment. It will ultimately lead to sense of team spirit. Huality .ounseling. subordinates as well as self0review. Human Resource Management! #utur st c . P. 3ew skills re2uired. .ircle. avoiding discrimination and biases and identifying performance threshold. 2. )eedback . 6=. @A7 degree feedback will further lead to increased focus on customer services. 4. peers. Bnvironmental challenges. Page 12 3. #ising employees' expectations 8rastic changes in the technology as well as 5ife0style changes. 5ean and mean organizations.omposition of workforce. 6. Impact of new economic policy. S. 16. 6. decreased hierarchies. 1ize of the workforce. 5. Mishra . 2. 8. team0work and inter0team collaboration. 14. 7. In every decision0making process there should be given proper weightage to the aspect that employees are involved wherever possible.13. )or performance appraisal of the employee(s emphasis should be given to @A7 degree feedback which is based on the review by superiors. Crganization development and Huality of ?orking 5ife. 5. 4. 3etworking skills of the organizations should be developed internally and externally as well as horizontally and vertically. #ole /nalysis for ob occupants.s on Cn the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of H#% with regard to its futuristic visionE 1. :.ulture prevailing in the organization etc. Cpportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. creating of highly involved workforce. . #actors n Human Resource Management In the >6st century H#% will be influenced by following factors.

incentive systems and performance evaluation. gro&th of HR funct on n In. P. these professions emerged to be hereditary. the workers employed in the factories were allowed a week off0day and provisions were also made for Dr.. S. The 'overnment used to take active interest in the operation of both public and private sector enterprises and provided well0 enunciated procedures to regulate employer0employee relationship. economic and social considerations should also be taken into account.. 9. The wages were paid strictly in terms of 2uantity and 2uality of work. It should not be confined to organizational aspects only but the environmental changes of political.8. a The various stages of growth of H#% are as follows E (1) Barly activities of H#% by +autilya E +autilya provides a systematic treatment of management of human resources during . There should be focus on ob rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future ob prospects. executive development. /gain. selection procedure. Or g n an. the relationships between the employer and employees were marked by ustice and e2uity. there are principles of the division of labour. 8.. )or proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the H#% strategy. The concept of !4arnashram! or caste system was originally based on these principles. there prevailed labour organizations such as 1hreni or guild system and co0operative sector. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning. (2) Barly activities of H#% E The guild system was followed by cooperative sector consisting of craftsmen and traders. /ccording to the /ct. There were staffing and personnel management embracing ob descriptions. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. 10. 5ater on. to the later half of the 67th century /.7. with their professional interests. /s per this.. 66. %ore emphasis should be given to Total Huality %anagement. 2ualifications for obs. in his treatise titled !/rtha01hastra!.th century -. TH% will cover all employees at all levels* it will conform to customer's needs and expectations* it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. Mishra Page 13 century -. (3) Bnactment of )actory /ct 6996. There was enactment of the )actory /ct of 6996. )rom the 6.

#oyal commission on labour in India "6:>: I @6$ recommended the appointment of the labour officer to deal with selection and recruitment of labours. the activities of &ersonnel 8epartment in different public and private sectors have multiplied. In 6:>>. 5. /bundance of cheap labour ?eak labour movement Highly authoritarian culture Technological backwardness Instability in employment <nhealthy trend of trade union Page 14 Dr.hange of 'overnment attitude #actors mpe. the &ostal union at -ombay was established.. 1ubse2uently. In 69:7. wage. wage and salary administration and research and development. This is followed by establishment of The . (5) Bnactment of Industrial 8ispute /ct.inspection as well as limiting he hours of work for women workers to eleven per day.alcutta and in 6:7=.ommission on 5abour.77 or more workers to handle disputes and ad udication relating to conditions of services. The %adras 5abour <nion was organized thereafter in 6:69. the printers' <nion at . /s a result. P. training. /ccording to the provisions of section . it became obligatory for the employers to employ a ?elfare Cfficer in a factory employing .= made ad udication compulsory. The Head of the &ersonnel 8epartment is associated with top management and helps it in the formulation of personnel policies for the company. The welfare officer became Industrial #elation Cfficer. ng gro&th of HRM n In. 4. The enactment of Industrial 8ispute /ct 6:. in 6:7. Mishra .entral 5abour -oard to federate the different unions in the -ombay city and the /ll India Trade <nion .ongress was organized. 6:. safety. 3. 6. Slo& gro&th of HRM n In. a (a) (b) (c) (d) (e) 5ate arrival of the factory system 5ow status of industrial worker &rofessionalization of H#% 1ocial responsibilities of -usiness . the indentured labour system involving migration of Indian labour to other countries on contract basis was abolished. benefit etc.: of the )actories /ct. (4) #eport of the #oyal . In addition to the industrial relations functions "although sometimes the industrial relations forms a separate department$. The act further provided that the minimum age of children for employment should be seven hours and that the maximum working hours for them should not exceed seven hours a day and that too in the day0shift.9. a 1. the &ersonnel 8epartment is responsible for other varied functions including employment. 2. the first labour organization designated as -ombay %ill Hands /ssociation was established. S.

ritical internal resources. Cutsourcing reduces the need for large capital expenditures in noncore functions.e. enhance services. H# outsourcing can happen in H# functions. educationDtraining. %any recognize outsourcing relationships as long0term partnerships created to further the strategic goals of the organization. . Crganizations are fast realizing that they can't be all things to all people. Mishra Page 15 . and manage costs more effectively. Cutsourcing has become a common response to manage people and technology resources strategically.. P.7 per cent. Bxperts believe that in present times H# outsourcing is undergoing a transition phase. India has immense potential as more than 97K of fortune 6. Thus. with its intrinsic advantages such as low cost. handling taxes. can be devoted to company's core business. It's set to become a J . India. i. exit interviews and wage reviews$. 1o companies now. such as technology and talent. . This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today's business environment. outsourcing becomes a strategy for reducing the capital intensity of the business. administration.. to realize economies of scale and achieve standardization of services. be it a software company. etc$. %igratory characteristic of Indian labour Human Resource Outsourcing: Scope for India Cne very important trend in the recent times has been the growth of human resource outsourcing. and the scope of outsourced H# activities continues to expand.777 companies are discussing H# outsourcing as a way to cut costs and increase productivity. a service provider or a manufacturing firm. representing @: per cent of the total business process outsourcing revenue. The H# outsourcing business opportunity is large and India is likely to garner a larger and larger piece of this pie in the future. Bstimates show that the latent size of H# outsourcing in India is about J > billion with a current market of J >= million and it is growing at an alarming rate of about . H# outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll. The organization can focus on higher value0added activities while the outsourcing provider takes care of the day0to0day administration. and let someone else do the rest in a more efficient and cost0effective manner. ready pool of Bnglish speaking manpower and geographic positioning. Cutsourcing noncore activities allows H# professionals to move away from routine administration to a more strategic role. is emerging as a viable destination for H# outsourcing companies to set up their businesses. recruiting personnel. #apidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. per cent of that. 5ife insurance. H# outsourcing has a huge potential for employment also. background interviews. / growing number of executives understand the benefits it can bring in terms of not only cost savings. The number of companies outsourcing H# activities continues to rise. the future seems to be very promising.7. focus on their core competency. but also heightened strategic focus. etc. dealing with sick0time and vacations$. However. employee benefits "Health. S. it would still be sometime before we see increased levels of H# activities being outsourced to India as lack of domain knowledge and 2uality are some of the critical issues. human resource management "hiring and firing. decide what they are good at and outsource everything else. /s a result.afeteria. 3asscom numbers are a million software obs by >77. benefits.6 billion market worldwide in >77. %edical. like payroll administration "producing checks. human resources outsourcing is becoming increasingly prevalent.* H#C would be about a >. risk management. Dr.

&ersonnel directors are the new corporate heroes. recruiting competent people is also increasingly becoming difficult.harles Handy also advocated future organizational models like 1hamrock. managers and workers. There is a need for multi skill development. Therefore by creating an enabling culture. P. Page 16 Dr. These practices improve organizational values and helps in creating defect free product or services at minimum cost. ?ith the increase of global ob mobility. and enlarged size or workforce. 1uch organizational models also refocus on people centric issues and call for redefining the future role of H# professionals. of >777 focus more on people centric organizations. 8ecreased number of employers and self0employed.77 companies. In the stage of globalization and industrialization human resource management reveal the following trendsE 1. The role of H# manager is shifting from that of a protector and screener to the role of a planner and change agent. 'lobally. To leapfrog ahead of competition in this world of uncertainty. organizations have introduced six0 sigma practices. The name of the game today in business is personnel . Human resource outsourcing is a new accession that makes a traditional H# department redundant in an organization. 1ome of the recent trends that are being observed are as followsE  The recent 2uality management standards I1C :776 and I1C :77. Bxult. 1ix0 sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. S. Human #esource %anagement today known as a part of an organization and it has own existence world wide. the international pioneer in H# -&C already roped in -ank of /merica. Mishra . Indian organizations are also witnessing a change in systems. especially in India. . 3owadays it is not possible to show a good financial or operating report unless your personnel relations are in order. organizations are also re2uired to work out a retention strategy for the existing skilled manpower. Cver the years. management cultures and philosophy due to the global alignment of Indian organizations. 2. with renewed thrust on H# issues. #ole of H#% is becoming all the more important. Crganizations now need to prepare themselves in order to address people centered issues with commitment from the top management.     HRM n Glo%al &orl. It is said that management of human resources lead. highly skilled and knowledge based obs are increasing while low skilled obs are decreasing. more particularly on training. )ederal and Triple I. international players -& /moco F over the years plan to spread their business to most of the )ortune . This calls for future skill mapping through proper H#% initiatives. Increased complexity of organization and employment communication and created a distinction between owners. mobilize and direct the efforts of people.s n Human Resource Management Human resource management is a process of bringing people and organizations together so that the goals of each other are met.Emerg ng Tren.

A. To balance the pros and cons of home country and host country evaluations. Crganizations typically negotiate the agreement with the unions at a national level.. Bnhanced need for training in view of increased re2uirements of specialized skills &ublic interventions and legal complication in employer0employee relationships Bnhanced training and development of managers and professionalization of management education &ossibility of employment explosion in view of the ever0increasing size of workforce #ising formal level of education of rank0and0file employees who are becoming increasingly critical of management malpractices and errors #ank0and0file employees( rapidly growing demands in different employment situations Increased applications of behavioral science by enterprising managers. In many Buropean countries 0 'ermany for one. orientation and translation services to help employees adapt to a new and different environment outside their own country. 67. HRM International H#% places greater emphasis on a number of responsibilities and functions such as relocation.    Dr. Mishra Page 17 . S. .@. NE+ TRENDS IN INTERNATIONA. 9. The need creates the role of human resource management. law establishes representation.ompensation systems should support the overall strategic intent of the organization but should be customized for local conditions. P. In Burope it is more likely for salaried employees and managers to be unionized. 9. re0entry problems and culture shock. #ecognition of close relationship between profits and earnings and ability to manage human resources 5. performance evaluations should combine the two sources of appraisal information. These are the identified problem which occurs in an organization with the employee and owners. . Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better.   1election of employees re2uires careful evaluation of the personal characteristics of the candidate and hisDher spouse. %anagers need to be protected from career development risks. 7.