an Resource Management [AGEMENT (HRM) an Resource Management (Unit 1) Introduction to Hum: PTC W a al Introduction BEE ais up of people Without people organisations cannot exist. n and machines in an organisation, human because the efficient use of other physical and functions through people Various factors of production like money, material, {considered to be the most important factor. This ge land and capital is es cramtow the human factor is used on. various operations} EXcept resources depreciate with time. Man is the most valuable resoure which appreciates with time if ronment is given to him and hence termed as “human resource” Humn Texts consist of those Eepedple who are ready to provide their services forthe benefit of the organisation nter-related, inter-dependent, and to Michael J. Jucius, “Human resource are a whole consisting 0} g physiological, psychological, sociological, and ethical components as dynamic and effective people can construct inspiration of turning dreams to reality. ied people. Therefore, in order to remain f organisation to energise, assist yrce always remains central to the organisations S enterprises. Only efficient workers are capable and hav' tional objectives can only be accomplished through the talent titive in the dynamic environment, it should be the constant endeavour of p their workers to maintain utmost efficiency. Meaning and Definition of HRM fe is both exclusive as well as important. It is obvious that an organisation would try to obtain ce the best use of this resource. Human resource management, the task concerned with managing the sources, is the most crucial and challenging task of the organisation. It was previously referred to as management. defined as acquiring the right talent, training and developing them and motivating them to sustain in e to effectively attain the objectives of the organisation. One of the aims of this process is to bridge between the organisation and its people. The purpose is to make an individual deliver his best and ‘a supportive arm to the organisation. to Invancevich and Glueck, “HRM is concerned with the most effective use of people to ach to Edwin B, Flippo, “Human resource management is the of the procurement, development, compensation, integration, es to the end that individual, organisational, and social objectives are Scanned with CamScanner[MBA Second Semese (Hunan Resource Mabagenent) 1.1.3. Nature of HRM ‘Nature of HRM is explained as follows: i 4 1). Universal in Nature: HRM practices are prevalent in each and every organisation whether it is public private, govemment and non-government, educational or corporate, ic. in almost every area. Its existence} is not only limited to the personnel functions; rather it is pervasive at all the functional c., marketing, finance, production, etc. 2) Action-Oriented: The focus of HRM is on action rather than on keeping records, written Procedures rules, The issues of employees at the workplace are resolved with the help of rational policies. ically focused on developing people at work both at individ ~ 3) Focused on People Dimension: HRM is b ‘of employees with the requirement of the job, It and group level. It seeks to correlate the capabill constantly tries to motivate people for better performance and higher productivity 1 of HRM is to develop the capabilities of the employees and maintain is, The reward system should constantly motivate the is also offered to employees so as to discover and I performance of the employee. 4) Growth-Oriented: The main cor the reward system according to their expectatior employees to achieve the standard performance. Training develop their potential. Job rotation is also used to analyse the over al structuring harmonious relations among human and controls the human resources in th Cordial Integration: The function of developing and resources in the organisation is performed by HRM. It coordinates organisation in such a manner so as to obtain maximum results. » Hence, management of human resour .. It is very critical task to control and .ds to be very careful while controllin Challenging Function: People are complex and dynamic in nature. in the organisation demands very close supervision of the employee coordinate employees because of the human factor. HR manager nee and dealing with them, without hurting their sentiments. ‘Supplementary Service: HR also plays a supportive role by assisting and advising operat managers. As specialist advisors, they supervise and guide other managers to in a more effective manner. ‘Multi-Disciplinary Function: HRM is crucial to an organisation and so is the constitution of its concept, derives ideas, concepts, practices and principles from various soft disciplines such as sociology.) anthropology, economics, psychology, etc. Understanding of these disciplines is essential because like thes disciplines HRM also relates and deals with human beings. ‘Ongoing Process: The function of HRM cannot be restricted to a particular time and date. It is present i ‘every department. Therefore, it is continuous in nature and is practised every second, hour, day and year if ithe organisation 4. Scope of HRM hhas a very wide application. HRM encompasses all the areas during the service of an employee st the time he enters, until he quits. Scope of HRM includes the following areas: pp rrocurement: It consists of recruiting prospective employees and then selecting the most appropriate on for the desired posts in the organisation. This is followed by their induction and settlement into iegesPeive positions 2) Training and Development: It is necessary for the employees to perform well in reali employees are encouraged to participate in committees and board meetings, which will aid development. 3) Job Analysis and Job Description: These are prepared to hire qualified employees by studying the requirements of the organisation and assigning definite functions to jobs. They also act as a base for determination. 4) Compensation/Rewards: Compensation is provided to the employees for their work. The compensation which is to be given to the employees is ascertained by job analysis and job eval involves determining wage rates, methods of wage payment, and performance appraisal. 7 Scanned with CamScannertion to Human Resource Management (Unit 1) Employee Records: Employee records are maintained to collect details of all employees about their work, —_ €.g. training job performance, aptitude payment records, their achievements, etc. Welfare: In HRM, the welfare aspect is focused on providing good working conditions to the workers. It includes programmes for health and safety, sanitation facilities, entertainment facilities, accommodations, education, security, etc. Industrial Relations: HRM helps in maintaining cordial relations in the industry. It comprises of aspects: such as collective bargaining, workers’ participation in management, dispute resolution, grievance management, etc 1.1.5. Objectives of HRM. Objectives of HRM are as follows: 1) To Assist in Securing the Goals Set by the Organisation: The main aim of HRM is to assist the employees in achieving the desired organisational goals. IFit fails to do so, its existence will come to an end. 2) To Help the Employees in Securing the Personal Goals for Individual Growth: HRM not only focuses ‘on the organisational goals but it equally tries to explore and develop the capabilities of the employees by training and development so that employees can achieve their personal as well as organisational goals. This not only enhances the efficiency of the employees but also increases the loyalty of the employees towards the organisation | 3) To Make Maximum Utilisation of Employee's Potential: The essence of the HRM lies in its basic function of effectively matching the skills of the employees with the work assignments in the organisation. This helps to fully explore the capabilities of the employees for the benefit of the organisation and its stakeholders. 4y To Procure Efficient Employees within the Organisation: HRM focuses on maintaining the effective reward system to motivate the employees to improve the efficiency of the employee. 5To Enhance Job Satisfaction: Various programmes of human resources welfare have been framed and implemented by the HRM in order to enhance the quality of life. This helps in increasing the job satisfaction of the employees. © To Improve Quality of Work Life: It is the duty of HRM to make organisation a pleasant place for employees. This is important as organisational performance cannot be enhanced without improving the quality of work life. 7) To Update the Employees regarding Managerial Policies: One of the most important duties of HRM is to update the employees with the internal policies, feedback of customers, opinions of the management and also to generate creative ideas from the workforce. 8) oo Fulfil Social Responsibility: The HRM function also ensures fulfilment of the social responsibility of the organisation towards the different groups of the society, while adhering to the moral and legal norms. 9) To Mai ipline among Employees: HRM also focuses on the maintenance of discipline among the employees in the organisation by giving them incentives based on their performance. It tries to create employee-friendly atmosphere in which the focus is on healthy working style. +8) To Increase Organisational Productivity: HRM tries to enhance the overall productivity of the organisation by effective utilisation of available resources. VW) To Focus on Quality Performance: The critical task of HRM in every organisation is the assignment of the right job to the right candidate at the right time. This brings efficiency in the working system of the organisation and enhances quality performance. 12) To Develop Harmony in the Work Culture: HRM makes continuous efforts to fill the gap between individual and organisational goals. This results in building cordial relationship within the organisation and the employees for the achievement of the desired objectives of the organisation as a whole. $ 13) To Create Respectful Environment: HRM must ensure that a respectful oi ee trustand happiness exists within the organisation for everyone. If such an environment is ines chances of crisis within the organisation. Scanned with CamScannersmester (Human Resource ) A MBA Second Ser 1.1.6. Importance of HRM Importance of HRM at the various levels is given below: 1) Corporate Level: Enterprise requires their work to be done effet effective HRM. HRM helps enterprise in the following manner: i) HRM focuses on hiring skilled persons who are able to promote the growth of enterprise and) them for long-term through manpower planning, effective recruitment procedure, selection, Policies of promotion. ii) Enriching employees by developing and improving important skills and correcting their proper training and development, performance appraisals, etc Making optimum use of existing human resources. iy) Guaranteeing a talented team of loyal and devoted employees for the organisation in future, notivation, participation, ctively and efficiently hence it re ¥) Gaining the voluntary co-operation from the employees by handling, ete. 2) Professional Level: HRM ensures good quality of work life. It helps in professional growth fj following ways: i) Building esprit de corps in employees by giving them congenial working atmosphere. ii) Creating opportunities for employees so that they can develop their calibre: iii) Ensuring that healthy relationships are maintained among team members and work is assigned to both employees and teams. 3) Social Level: HRM plays an important role in the society by the following ways: i) Enabling employees to live with dignity by providing them employment which gives them me social satisfaction. j ii) Maintaining equilibrium between job openings and applicants in terms of numbers, qualific needs and aptitudes. iii) Utilising human resources effectively by conserving their physical and mental health 4) National Level: HRM plays a very significant role in the development of a country in the following i) Competent and dedicated human resource results in efficient use of physical, natural, and ec9 resources of the country. ii) A nation’s development depends on the skills, attitudes and values of its manpower. Less skille less competent people signify an under-developed country. HRM ensures that human resources 6 country are skilled and developed. iii) HRM improves economic growth of the country. This finally leads to increased living standard employment. ‘ 1.1.7. Evolution of the Concept of HRM Human resource management has emerged as a wide field in today’s scenario. It began in India in 1800 Evolution of HRM can be described in following phases: 1) Industrial Revolution: During this phase, mechanisation and technological advancement took P rapid speed. At that time, jobs were divided and workers had to do only a small part of their job the entire portion. Thus, specialisation increased workers’ speed and efficiency but at the same ti became more tedious. The treatment which was given to the workers was similar to ‘glorified 1 tools’. Employers concern was only to fulfil the targets of production not with fulfilling the d workers. Government was not at all active to work for the welfare of the workers, 2) Scientific Management: F.W. Taylor advocated the concept of scientific management in order tO the efficiency of the workers. Scientific management is a methodical analysis which involved break task into many small parts and re-organise them to get a perfect combination. Taylor also people’s physical and mental ability must match with the tasks which are to be performed in & Therefore, highly proficient people must be removed and supervisors should provine taining performing employees in order to make them highly skilled. Taylor further emphasised oa veins to motivate employees. ——_— Scanned with CamScannerIntroduction to Human Resource Management (Unit 1) a 3) Trade Unionism: Trade Union is a group or an organisation of workers formed to achieve ‘common goals. Workers became aware of their rights and they collectively started protesting against the exploitation By employers. They also started protesting against unfair labour practices by taking the help of trade unions, Collective bargaining, dealing with the worker's grievances regarding the conditions of working, wages and perks, and disciplinary procedures are the ways through which trade unions generally help the workers. 4) Human Relations Movement: During 1930s and 1940s, Elton Mayo alongwith his colleagues from Harvard conducted Hawthorne experiment. The experiment showed that job design and rewarding were not the only factors which affected productivity of employees, but there are some societal and psychological factors too which can also influence employees” productivity. The wide implementation of the behavioural science techniques was due to the human relations movement. It involves using supervisory training techniques, providing assistance to workers, counselling programmes and strategies to make the relations stronger between management and labour. These programmes helped the workers to share their work- related problems as well as problems related to their personal life with the counselling professionals. Human relations movement was also affected by the increasing power of trade unions in the period of late 1930s and 1940s. The emergence of unions in this time period was because. of the Wagner Act. The Act gave workers the legal right of collective bargaining with employers on matters like salary, job stability, benefits and other working conditions. 5) Human Resource Approach: In early 60s, the ‘pet milk theory’ of human religionists had been discarded largely. According to ‘pet milk theory’, “happy workers are productive workers or happy cows give more milk’ Every worker is different from the other worker and has different personal needs, the factors which motivate one individual may not stimulate the other. Happiness and good feeling may influence efficiency of some employees toa very small extent. Gradually, the practice of considering employees as assets became prominent. “The Human Resource Approach believes that the main source of satisfaction and motivation of employees is their job or the task. This approach focuses on involvement of individuals in the organisational decision- making” Further, the focus of this approach is on the following things: i) Individuals like their work if they are involved in the establishment of objectives which they have to attain. ji) Many individuals show more self- .ds and advanced techniques of util cee Sse reese eer cw ee : ae pote managers might get educated by the HR managers 0 ser et conduction MD teercys on different problems, sexual harassment, employing persons ies er ee e; packages, handling iniscipline, and other such problems that crop up we. Tas ng aman eee aeacvcece: this function is important because it makes sure that resources, Hence, ‘smoothly. : a na are the fanagers i Sean : Se seeiel oe two groups: line and staff management. ine manage oe te sacs eho are del in charge of production of goods and services. In Gee a ‘ones who are ed f their costs and tangible cor toe iam 2 SL See tata mes oy j li org: . functions. ion which involves range ible for indirect or support function i are the ones who are responsible for i Sa cae but peerlly have direct botomeline contibuton. Accounting, human ee nl one svally counted under staff function. Their job is to assist the line i ey | ‘organisational goals and objectives. Nevertheless, in the current world, this di most of the organisations. nected with selection, Ic can be said that every manager is an HR manager as each of them is cere ep one traning and compensation of employees. Stil, most of th organisations have a human rei A parent is managed by personel with mandatory qualifications in behavioural sciences, The Die U2 | nee isational goals is with the line managers. They also possess the rigt cone ae Subordinates, The line managers are usally helped and guided by the staff mangers in act of the organisation. Managing Director ‘Assistant THR Manager ve c R&D Manager | [Production Manager| | Marketing Manager| Finance Manager onal Staff relationshi relationship p Organisational Chart Showing Line, Staff and Functional Relationships HR managers are also staff experts. Line managers are assisted by them in areas like recruitment, selection, compensation and training, In a broader perspective, a manager's job is to manage people and a successful Crganation is one that manages to combine the line manager's experience with that of the HR specialists in Order to utilise the skills and capabilities of its employees to the fullest. It is the duty of the HR manager to win the hears ofthe people that are working with the line managers and to provide cost-effective results, Presently, the HR managers are taking up even gre Scanned with CamScannera ction to Human Resource Management (Unit 1) 19 1.10. Principles of HRM ifferent principles of HRM are as follows: '1) Principle of Individual Development: In order to analyse abilities, each and every worker should be given complete and same chances of progression, In an organisation, ‘every worker must be guided by the managers in such a manner that he acquires ultimate job contentment and his capabilities are efficiently utilise: 2) Principle of Scientific Selection Procedure: Selection should be based on organised and scientific methods, Scientific selection requires efficient utilisation and attentive choice of personnel methods. There should be scientific compatibility of workers with the job. This is important to support line management in searching the suitable candidate for a job, However, ultimate decision is taken by the line managers but scientific procedures help in making correct decision and also guides accurate placement of a candidate, 3) Principle of Incentive: Commendable performance should be identified and appreciated. Principle of incentive should be applied if organisation wants an employee to give his best performance. Financial and non-financial incentives should be used to bring out the best from workers so that they contribute towards accomplishment of organisational goals. 4) Principle of Adequate Communication: Various issues and confusions arise due to the lack of interaction among people. Gossips develop because of privacy and extreme privacy leads to harmful gossip. The workers need to be informed about all important notifications of the organisation. The workers should be aware about the organisational methods, schedules, goals and outlook. There should be a dedicated planning and promotion of all the mediums and layouts of communication, Communication barriers must be eliminated and effective styles of communication must be followed. 5) Principle of Participation: In a system, where the employer-employee relationship involves faith, assurance and co-operation, the doctrine of consultative-participative managerial philosophy comes into action, Representatives of workers play an important role in increasing worker's participation. In order to bring reforms in the different processes of the organisation, the workers are offered a chance to come up with new schemes, visions and proposals. Workers should understand that they are an important part of the organisation and their commitment towards the organisation is of prime importance. Human resource programmes must be developed to motivate workers to make effective use of their skills and abilities in achieving organisational objectives. Thus, workers consider themselves as a part of organisation and thereby contribute towards its success 6) Principle of Fair Compensation: The organisation should have a proper and reasonable payment system. The worker should be provided a fair day's wage for a fair day's work. Managers must accurately calculate the actual fair day's wage for a fair day’s work for the workers. Cordial working conditions, healthy surroundings, effective techniques and instruments should be given to the workers alongwith the salary and allowances. Hygiene and health provisions must also be offered to employees. It is baseless to hope that the worker will contribute his best for the organisation without equitable and justified salaries, working hours and the favourable employment surroundings. Management can set up an equitable wage structure with the help of effective tools of wage and salary administration, 7) Principle of Dignity of Labour: This principle states that productive labour is beneficial for the organisation. It advocates that jobs should be performed in the best possible manner. No one should be considered as poor or incapable for performing any job in the society, Business-like surroundings need to be encouraged in order to execute the job efficiently and obtain the benefits. Every job is valuable and worthy which is concerned with physical prosperity and is productive in nature, 8) Principle of Team Spirit: It is necessary to build up feeling of loyalty among employees and boost their morale, An organisation cannot be successful without team spirit. Human resource policies must be devised in such a way that people work together as a team to achieve the specified goals. In spite of being efficient and dedicated towards their work, workers possibly will waste their energy if team spirit is lacking. 1.1.11. Organisation of Personnel Department HR department functions with managers for performing various duties. Size of unit (.e., small or large) determines the position of HR department within the organisational structure. There is no individual HR department in small-scale units to organise personnel activities. Indeed, there may be no personnel manager. Scanned with CamScannerby Chairman/Managing D ‘unit will be benefi fuction units situated in various regions of Peday tasks while the central department is responsi tte igure 1.2 shows the HR department in large-scale industry and behaviour of top management towards its workforce are the factors the buman resource department. Nonetheless, the Dircetot leads a sta the functioning of Manager-Personnel, Man TR), Size and significance of HR dep The extent of functioning determine the organisation of human resource department. Director also managi erministration, Manager-HRD and Manager-Industrial Relations ( increases with the increase in demands put in by top management. 1.1.12. Roles of HR Manager filled by HR manager. The nature an‘ from the HR manager. Three roles are ty} what top managemé d extent of these roles depend on which are ‘Several roles are ful pically identified for an HR manager, and the staffs want follows: Roles of HR Manager | pha ‘Administrative Roles Operational Roles Strategic Roles 4) Policy-Maker i) Recruiter i) Strategic Partner ‘Administrative Expert ‘Trainer and Motivator ii) Change Champion. if Advisor Liaison Officer /Linking Pin ivy Housekeeper iv) Mediator ig y Counsellor vy) Employee Champion vi). Welfare Officer vi) Legal Advisor Scanned with CamScannerat Human Resource Mahagemeot (Unit 1)” He ate mi ive Roles: The HR manager performs following administrative roles: == Policy-Maker: HR manager acts as the policy-maker in an organisation, He assists the top management — designing the policies for hiring and retaining talent, welfare activities, personnel records, wage and salary administration, work conditions, etc. He facilitates an organisation in the appropriate ‘implementation of human resource policies. Brae sic ole ¥ Administrative Expert: HR manager performs several administrative functions such as managing employee records, HR related database, handling employee benefit claims, responding to questions concerning leaves, medical and transport facilities, presenting necessary reports to authoritarian agencies, etc. An HR manager must perform all these functions in such an effective and efficient manner so that the organisation can successfully meet the variable needs of the stakeholders. iii) Advisor: HR manager as an advisor advises, suggests, counsels, and provides assistance to the line managers in order to enable them to perform their tasks. These tasks can be resolving, grievances, dispute settlement, and hiring and training of employees. As an advisor, HR manager provides the organisation with the personnel advice regarding report preparation, announcement of guidelines to the employees, and conveying required information pertaining to the labour legislations, etc. Housekeeper: As a housekeeper, HR manager aids the organisation in managing Various activities such as recruitment, prior-employment testing, background verification, wage and salary administration, employee benefits and pension administration, programmes for employees’ well being, record maintenance, etc. v) Counsellor: As a counsellor, it is the duty of an HR manager to share the employee’s problems Pertaining to their job, superiors, peers, family wellbeing, economic and social status, etc., and to counsel them on how they can tackle these problems. vi) Welfare Officer: It is the responsibility of the HR manager to take care of all the welfare activities being carried-out in an organisation. HR manager being a Welfare Officer, offers various facilities such as cafeteria, health care institution, creches, academic institutions, clubs, libraries, consumer stores, etc. Vii) Legal Advisor: As a legal advisor for the organisation, an HR manager helps in redressing the grievances, dispute settlement, handling disciplinary issues, facilitating collective bargaining, facilitating @ platform for joint consultation, interpreting and implementing the labour laws, making contracts with lawyers for lawsuits, filing and handling cases in various courts, etc ) Operational Roles: By nature, these roles are tactical and include the following: i) Recruiter: In present scenario, it has become a global war for talent. It is important for an HR. manager .o look for the talent considering the increased level of competition for individuals having the tequired set of qualifications, skills and work experience. HR managers are required to apply all their experience for a good cause at the time of planning the rewards for the new employees, keeping the monetary burden of the organisation low ii) Trainer and Motivator: HR manager needs to identify employees who require training and development at regular intervals, arrange proper training and development programmes for them and providing them valuable intrinsic as well as extrinsic rewards. iii) Liaison Officer: HR manager acts as a liaison officer in an organisation, who works as a bridge between different departments within and outside the organisation, This role includes building and maintaining a good relationship with the departmental heads to achieve the best utilisation of resources. of one department by another iv) Mediator: At the time of conflict and grievances, the organisation always needs a mediator to resolve those problems effectively. HR manager acts as a mediator to maintain industrial peace by resolving the conflicts between two employees, supervisors and subordinates, and management and employees. vy) Employee Champion: Occasionally, HR managers are supposed to be the ‘employee advocates’ oF ‘company morale officers’. In the competitive era of internationalisation, working situations of firms have changed drastically. Therefore, to discover the area of interest of employees, an HR manager needs to look into their hearts. ‘ ts Scanned with CamScanner‘of change. HR manager counsels oth at individual as well as organisation organisational level. al level, HR manager neat in mae eo A ference between HRM and Personnel Management re Personnel management can be defined as a set of programmes ‘and actions which are aimed at oc" Grganisational as well as personal goals. It deals with the people and their interpersonal relationships i to E-F.L. Breach, “Personnel management is th a tvemed with the human constituents of an organisation”. ent involves the task of har .d maintaining at part of management Process which is primar indling the human probl. an efficient work-force”. ‘According to Richard Calhoon, “Personnel managem an organisation and is devoted to acquiring, developing, utilising an ‘According to R.G. Gokhle, “Personnel management is the specialised intelligent handlin; by 2 separate department which could devote its full me for research along the lin: industrial relations”. 1g of the human fe cto .e of improvement cent and personnel management are same and hence sot saterehangeably. If a person gets a job of human resources, he ma y be required to that of the personnel manager. In some organisations, a distinction 1 made, but there is a Vet ‘According to some experts human resource managem terms can be us duties similar t nominal difference. Basis of Difference | HRM Personnel Management 18 Scope Tris broader in scope and also incorporates the| It has a limited scope and is considered 10 tasks of personne! management. be a part of HRM. Tr views employees as important asset for the] It views employee 2) Respect for Employees evelopment of organisation them for the benefit of the organisation. 3) Nature of Duties ‘More strategic in nature and is responsible for| Personnel management managing workforce as one of the primary] administrative tasks, that are to the success of an|traditiorial and routine, dealing will payroll, complying with employment laws} and handling related tasks. resources that contribut organisation. @ Organisation Function [It is taken as an integral part of the overalllIt is an independent function of [company function organisation 3) Responsibility The re responsibility ies with all_the| The sole respons i [iliac ye rot] emery evel managers fom vais deparmens room ae [who are trained to take care of personnel- related tasks. ia Scanned with CamScannera tion to Human Resource Management (Unit 1) 2B Motivators Tt views improved performance which results| into employee satisfaction. Thus, it emphasise fon ways to improve performance through! work groups, effective strategies for meeting challenges, and job creativity It views, employee satisfaction and’ acts as a motivator to improve job Performance. The tools used to motivate employees are compensation, bonuses, rewards, and simplifying the work, responsibilities ‘Management Role ‘The management style is transformational in| nature which consists of setting goals and incentives to take the organisation and the! employees to next level of performance and success, ‘The management style is transactional in| nature which focuses on maintaining the! normal flow of operations in _an| organisation. The employees _are| motivated by exchanging rewards for performance. ‘Adopts a can do attitude and is not controlled] by rules and procedures, ‘A lot of importance being given to devising rules and procedures. Guide to Management Action ‘The management takes decisions which are governed by business needs, ‘The management takes decisions which are directed by need to fulfil procedures. 10) Job Design While designing jobs, emphasis is laid on team| ‘ork and cooperation among the employees Job designing emphasises on the| division of labour which leads to specialisation of tasks which each |worker needs to do. 11) Training and Development ‘Training and development modules constantly| encourage the employees to acquire knowledge and innovate quickly. This helps} the companies to survive in fast changing| business environment and creates a leaning] ‘organisation, ‘Training and development modules are| difficult to access by all employees. Due to| the limited access to. courses the| organisation is not learning oriented and| ‘may find it difficult to cope with dynamic changes, 12) Speed of Decision | Quick decisions are taken under HRM. While decision making is slow under personnel management. (35) Evolution HRM is a recent concept which is latest in the| evolution of the subject. Personnel management existed before the| ‘concept of HRM evolved. |The HRM behaviour is coneemed with the values and mission of the organisation ‘The behaviour under personnel] management is concemed with the customs and practices, 15) Managerial Task vis a vis Labour thas a nurturing approach towards labour. aims to monitor the day to day activities of labour. [56) Key Relations Manages the relationship with customers. Manages the relationship with labout. 4) Communication ‘Maintains direct communication, Maintains indirect communication, 18) Management Skills HRM is fa ilitation, ‘The most important management skill under| ‘The most important management skill lunder personnel management negotiation, 119) Pay performance, They receive payment according 0 their ‘They receive payment according to fixed| grades. 20) Labour Management |The management enters contracts to manage labour, into ‘The management enters into collective-| bargaining contracts to manage labour. 21) Job Categories and Grades ‘There are less job categories and grades, | |"There are many job categories and grades. 22) Conflict Handling climate and culture. Conflicts within the organisation are managed by making long term changes in the internal Conflicts within the organisation are managed by making short term agreements 16 restore peace 23) Focus of Attention for Interventions taken by the management are| Interventions taken by the management are| Interventions related to overall cultural, structural and| related to personnel procedures. personnel strategies. 24) Shared Interests It focuses on the mutual interests of the| {organisation as well as the employees, Scanned with CamScannerted in reduction "oy Techmotogical Advancements: Latest technological advancements have resulted hich need e-skills people and increase in quantity of obs to the emergence of the concept of ‘knowledge wor training of few employees is also needed at times. nos Market Challenges: For fulfilling the needs of the customer uo ae aaee oF manner, organisations must incorporate total quality management and es ee programmes. These programmes need that HRM. must be concern training, compensation, job design, ete. more skilled people. TI whlch nee ever, replacing followed icker, desirable, and cost-ef ; retain the talented employees 4)/ Shortage of Skill: It is a very difficult task for every organisation to pater y pam “Every organisation makes all possible efforts to get the most ae Ta 8 ot should create and execute policies and practices to overcome this challeng« ay, benefits, and effective recruitment techniques. X een Ki is g importance as the utilisation of knowl 5) Knowledge Management: Knowledge management is gaining impor ite wilson a ~~ is increasing. The challenge for HRM is to build a proper system of knowledg: encourage effective development and exploitation of knowledge. f tradition Changing Power Structures: Reducing the levels of hierarchy has led to the come a structures to modem decentralised organisations. This has resulted in the freedom of acquiring rele information to the concerned employees, especially in knowledge-based organisations thereby reducing th centralisation of powers. f) Training Challenges: Formulating training programmes which are most suitable according to organisations leaming needs, is a major challenge for the business. However, the main issue involved hen is whether the training and development programmes should be formulated centrally or by consid individual needs. Dynamic Organisational Culture; Developing, transforming and maintaining an energetic and dyn ork culture is a dificult task due to increasing focus on competency of human resource. Managers feel that modern methods of HRM are a hindrance in making maximum utilisation of human resources, Changing Workforce Demographics: Today, the workfore and companies are also cot 40) Changed Employee Expectations: Changes inthe HR profile requirements of personnel. Attractions such as job security, atzseh retain and motivate employees. People now. want 1 challenge can be overcome by dealing with privecy Promoting ethical practices, ete has resulted in the changing desires af remuneration, housing are no more able be empowered and have a good status, ‘Th Sues of employees, preventing sexual exploital When people think of car rental fir Years, enterprise rent a car has ov. the most profitable business billion Ii! fleet of over 1.2 mil Scanned with CamScannerfirm got its start cies is the provision hese rates are often higher than insurance com} p paying part of the rental bill themselves. In addition, their locations are also often eeking a replacement car while theirs is in the shop, recent years, Enterprise has started to expand its market base by pursuing a two pronged growth strategy. ‘ist, the firm has started opening airport location to compete with Hertz. and Avis, but their target is still the Becasional renter rather than the frequent business traveler. Second, the firm also began to expand into Bnternational markets and today has rental offices in the United Kingdom, Ireland, France, Germany and other pEuropean countries. + key to enterprise's success has been its human resource strategy. While many employers seek to hire P students, Enterprise target a certain kind of individual; it's preferred new employee is a college © from a middle to bottom half of the graduating class, and preferably one who was an athlete are who tively involved in the campus are social activities therwise The rational for this unusual academic standard it's actually quite simple. Enterprise managers do not believe that especially high level of academic prowess are necessary to perform well in the car rental industry, but hhaving « college degree nevertheless demonstrate a reasonable level of intelligence and motivation. Since interpersonal relation are important to its business, Enterprise wants people who are social director or high Be fficers of social organizations such as fraternities or sororities. Athletes are also desirable because of competitiveness f Once hired, new employee at enterprise’is often shocked at the performance expectations placed on them by the firm. They generally work long, grueling hours for relatively Low starting pay. And all enterprise managers are expected to jump in and help wash or vacuum cars when a rental agency gets backed up. All enterprise managers must also adhere to a stringent set of dress and grooming requirements. For instance, men must Wear coordinated dress shirts and ties and can have a facial hair only when “medically necessary.” And a woman ‘wear skirts no shorter than 2 inches above their knees or creased pants. ‘So what are the incentives for working at enterprise? For one thing, it’s an unfortunate fact of life that college graduates with lower grades are ofien struggle to find work. This, a job at enterprise is better than no job at all. The firm does not hire outsiders ~ every position is filled by promoting someone already inside the company. Thus, Enterprise employees know that if they work hard and do their best, they may very well suoceed in moving higher of the corporate ladder add the growing and successful in firm, And higher level position have 3 salary more in line with the industry standard, Would Be sure to give specific examples to substantiate your statements, ‘What risks does Enterprise face from its HR strategy? Would you want to work for Enterprise? Why or why not? Be sure to ws employees. ‘What is a competitive advantage? What is Enterprise's competitive adv: Scanned with CamScanner