HRM Meaning: HR refers to people. HR’s are the people who make up the workforce of an organisation, business sector or economy. HR refers to the p i isations, regarded as a significant asset in ies. HRM is the process of managing people in organisations in a structured and thorough manner, HRM is the term used to describe formal systems devised for the management of people with in an organisation. HRM is an art of managing people at work in such a manner that they give their best to the organisation for achieving its set goals.Definition: + HRM is the process an organisation undergoes to manage people in order to achieve its goals- ALVIN. + HRM is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual , organisational and societal objectives are accomplished-EDWIN FLIPPO.aa ee The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organisation. The other objectives are: * A) Societal Objectives- To ensure that the organisation becomes ethically and socially responsible to the needs and challenges of the society. + B) Organisational Objectives- To make sure that HRM is not a standalone dept. but rather a means to assist the organisation reach its primary objective. * C) Functional Objectives- To maintain the depts contribution at a level appropriate to the organisations needs. * D) Personal Objectives- To assist employees in achieving their personal goals. So that they contribute to corporate goals. Otherwise their performance and satisfaction may decline and leave the organisation. According to Michael J.Jucius, HRM should aim at: * Attaining economically and effectively organisational goals * Serving to the highest possible degree the individual goals ¢ Preserving and advancine the peneral welfare of the society/communityThe other objectives of HRM are- L.To utilise HR’s effectively 2. To establish and maintain a productive. and _ self-respecting relationship among all members of the orgn. 3.To bring about maximum individual development of the members of an orgn. 4. To and satisfy individual needs &group goals by offering sioqua bie a al ery Ge 5.To in hi: s inside an orgn. by providing better working conditions. 6.The effective utilisation of pgopleandsmaiasials in productive work 7.The 8. The ices economically to the society. 9. To ensure respect forQUALITIES OF HR MANAGER: 1. He must be a specialist in orgn.theory and also an effective adviser to top mgt.in organisational matters... 2. He should be a real expertise in personnel admn.-knowledge of relevant laws, procedures, techniques and developments in theory and practice in comparable economics, behavioural sciences contribution to HRM and knowledge in man- mgt. 3.He should possess the general knowledge in the related fields in addition to their specialisation- Philosophy, Ethics, Maths, Sociology, Anthropology, Medicine, History, Economics, Political science and Mgt. 4.He must have a keen sense of social justice and be fully appreciative of the rights and interest of the men and women at work and also the economic necessities of the met. 5. He should have a mind with a capacity for creative thinking, for analysing situations and reasoning objectively 6.He should know problem solving techniques and have an ability to inspire, motivate and direct employees. 7.He must have a sense of vocation and faith in humanity 8. He should have the capacity for leadership, a sense of social responsibility and a gg lg gn9. He should have personal integrity so that employees may get confidencein him 10.He should have the capacity for persuasion coupled with patience and tolerance 1l. He should be friendly , approachable nature, tactful and sympathetic, a pleasing personality, well-groomed appearance, sophisticated taste and habits and capable of working with and thro’ other people 12. He should have the initiative and decision making ability 13. He must possess the mobility of facial expression( which encourages confidence, conveys interest, registers sympathy and allays distrust) 14. He should have the ability to generate trust among his colleagues and develop acceptability, recognition for himself and his ideas of communication with readiness and fluency 15.He naust be ready to co-operate with sub-ordinates in times of difficulty and neverto interfere his advice on theirs 16. He must be prompt in giving feedback to employees in their handling of personal matters. Hence HR Manager must be a person who has the human relation skills, a sensitivity to behavioural issues, and a conceptual skills to see the broad picture and predict situations rather than react to problems as they occur.He must be free from bias.He should be neither pro-mgt.nor pro- labour. He should be pro-profession and should judge and advise on issues without fear/ favour on the merits of the matter under consideration. He should be known for his honesty, integrity, justice and fair play. He should be a credit-passer and not a credit grabber. The word ‘I’ should be least important. He must possess good communication and linguistic skills. He must be a good leader and good organiser to be able to motivate the workers. Selflessness pays rich dividends to the HR Manager. He must be a tole model for others and develop the organisation. He must be a role maker rather than role taker He must be versatile, a continuous learner and a good networker.HRM OBJECTIVES &FUNCTIONS : L.Societal Objectives- 2. Organisational Obj. — 3. Functional Objectives - a) Legal compliance b) Benefits c) Union-mgt relations a)HRP b)Employee relations ¢)Selection 4) T&D e) Appraisal f) Placement g) Assessment a) Appraisal b) Placement c) Assessment5. Personal Objectives: a) T&D b) Appraisal c) Placement d) Compensation. e) AssessmentFUNCTIONS OF HRM: 1. a) b) There are two types of HRM functions. They are 1. Managerial functions 2. Operative functions Managerial fanctions- According to Koontz, Met.is the art of getting things done thro’ others. Mgt. is a multi purpose organ which has three jobs, two of which are directly related to personnel managing a business: “Managing Managers” and “Managing Workers” and the work. Hence a HR Manager is a manager and he must perform the basic functions of management. Planning- According to Terry, Planning is the foundation of most successful actions of any organisation. Planning today avoids crisis tomorrow. HR Manager must be able to plan well the trends in wages, labour market, union. needs and other personnel policies. Organising- After planning, an organisation should be established to carry it out. According to Drucker, the right organisational structure is the necessary foundation; without it the best performance in all other areas of mgt. will be ineffective and frustrated. Hence this function requires the grouping of personnel activities, assignment of different groups of activities to different individuals, delegation of authority and also coordination of authority relationship.c) Directing- It involves getting people together and asking them to work willingly and effectively for the achievement of the orgn’s goal. It involves eae Ree ae personnel. HR Manager must guide them towards improved performance and motivate them to work with interest and confidence. d) Co-ordimating- It refers to balancing timing” and integrating activities in an orgn.so that a unity of action for a common purpose is achieved. The HR dept.has to coordinate the task of developing, interpreting and reviewing personnel policies, practices and programmes such as safety programmes, employee benefits , job evaluation, T&D and communication. e) Controlling- It involves measuring performance, correcting negative deviations and assuring the accomplishment of plans. Some of the means for controlling the mgtof personnel are- Auditing trg._programmes, analysing LTO records, directing morale surveys, interviewing new employees at periodic intervals, comparing various features of the programme with other orgn’s programme.2. Operative functions- It is concerned with the activities specifically dealing with procuring, developing, compensating and maintaining an efficient work force. These functions are called as Service functions. a) Procurement- It is concerned with the hiring of personnel-the right people, in the right place and at the right time. It deals with the determination of man power requirement, their recruitment, selection and placement, induction, follow-up, transfers, lay-offs, discharge and separation etc. b) Development- It is related to the training and education of the hired personnel. It is concerned with the personal development of employees by increasing their skill through training so that job performance is properly achieved. c} Compensation- It is concerned with securing adequate and equitable remuneration to personnel for their contribution to the attainment of organisational goals. It includes wage surveys, JD and JA, merit rating, fixing of wage rates, wage systems, incentives etc.4) e) Integration- It is concerned with the attempt to effect a reasonable reconciliation of individual and organisational interests. It includes negotiations with trade unions and collective bargaining. Maintenance- It is concerned with maintaining good working conditions(health &safety measures) in an orgn. Records, research and audit- Record keeping is necessary for controlling personnel activities and also for doing research. HR audit helps to evaluate the effectiveness of various personnel policies and procedures and indicate a further course of action. Up to date infn.about employees are maintained in the records. HR research and audit is concerned with a systematic inquiry into any aspect of the broad question of how to make more effective an orgn’s personnel programmes such as rec.& selection, T&D, wages, grievances, LTO, strikes, accidents etc.IMPORTANCE OF HRM: HRM is a process of procuring ,developing,maintaining and controlling competent human resources in the orgn.so that the organisational goals are achieved in an effective and efficient manner. HRM is a management function that helps managers plan, recruit, select, train, develop, remunerate and maintain members for an orgn. HAR manager acts as a monitordisseminator, spokesperson, figure- head, leader, liaison, entrepreneur , disturbance handler,resource allocater and negotiator. A factory is built not by god, but by human beings. It is people who build factories, structure orgn’s and manage them successfully. The rapid growth of globalisation has increased the number and significance of MNCs which in turn increased the mobility of people. HRM plays a pivotal role in selecting and training people for such orgn’s in an efficient way.Effective HRM ensures that orgn.s can operate efficiently and that employees are able to work in a safe environment. An orgn. can’t build good team of working professionals without good H-Resources. The key functions of HRM include recruiting people, training them, performance appraisals, motivating employees as well as workplace commn. ,workplace safety and developing public relations. Any orgn-without a proper setup for HRM is bound to suffer from serious problems while managing its regular activities. Hence the managers put a lot of effort to set up a strong and effective HRM. It contributes to the achievement of orgn-goals thro’ its various functions and effective utilisation of HR’s.It also secures good cooperation thro’ motivation, WPM and grievance handling It also satisfy personnel in the orgn. It helps them for their personal growth and devclopment. The main aim of HRM is to achieve the orgn.goals. So the resources are mobilised to achieve the goals. It helps to reduce wastage and maximum utilisation of all resources. It helps the orgn. to maintain cordial telation between employees & mgt. Ithelps to achieve the organisational, personal and societal objectives.CHALLENGES FOR HRM: 1.Globalisation- It refers to the amalgamation of economies and societies around the world which means that world trade and financial markets are more integrated. Growing internationalisation of business has its impact on HRM in terms of unfamiliar laws, languages, practices, competitions , attitudes and mgt.styles, work ethics etc. It has an effect on employment pattern worldwide. 2. Technological advances- Due to advancements in the tech.there has been a drastic change in the approach to the various projects and the scenarios that guide to the organisational regulations. There is new- new working technology. It requires more skilled personnels. Tech_has changed the method of production. Security threat and data privacy are the other issues. It also lead to downsizing, in all sectors because of automation. Lack of techtalent has made it difficult for company’s to fill specialised positions.3. Work force diversity- It means having a workforce that represents many different viewpoints, backgrounds and cultures. It becomes a particular issue in HRM as it has legal, moral and business implications on orgn’s. It has positive effects(innovation, flexibility etc.) as well as negative effects (LTO, decreased job satisfaction etc.). HR managers have to undergo culture based HRM training. A diversity mentoring progam can be organised to overcome this issue. The HR manager has to talk and settle diversity issues in an ethical and responsible manner. 4. Changes in political and legal environment- It means changes in political parties and rules and regulations due to which new laws are come and you have to follow all laws while doing business. All aspects of HRM will be affected by the legal and regulatory environment. No business can override local laws. Increasing, significance of corporate governance compel HR people well versed with local and international laws. It is the duty of the HR manager to anticipate the changes and prepare orgn.to face them without any breakdown in its normal functioning.5.Changes in economic environment -All factors of production will have an impact on production. Scarcity of materials, power, demand for quality goods, consumer awareness also affect the organisation. Severe competition, increase in unemployment, inflation in an economy also affect the working of an organisation. There is mismatch between supply and demand of jobs globally. So the HR managers have to deal it carefully. 6.Business Ethics &values- A code of ethics is an outline that explains the expected ethical behaviour of employees. With changing work culture and structure, it has become more important to have ethics and values in place which will also in the long run decides the sustainability of the orgn in the global market Ethics and monitoring of ethical behaviours are also challenges for HRM.7. Mobility of professional personnel- The mobility of professionals between the orgn.and one country to another also a problem to HRM. Inter city and cross border migration adds a whole new dimension to HR complexities. Hence HR managers have to attract, retain and nurture talented employees. 8. Managing change- Change is the only constant in today’s business environment, forcing orgn’s to keep pace with such changes constantly and rapidly to exploit new opportunities. It requires the organisational restructure , M&A, downsizing, outsourcing etc. Sometimes the employees resist for change. It is the duty of HR manager to overcome the resistance to change. 9. New era of agile HRIS system- The complex and expensive HRIS solution will not be able to keep up with the requirements and the maintenance of such system will also be difficult. Hence the new agile HRIS system to be followed, which will be simple, small and it will support the necessary administration of personnel files.10. Social media- It changes human resources. HR of the future will make use of S.media as the best commn.channel. HR managers have to teach others how to communicate thro’ social media without taking risks and loss of business secrets. LL. Tapping skills anywhere,anytime- Skill gaps are widening and HRM have to see that their orgn. has the right people. Changing employee expectations, new tech, increasing globalisation and a need for agility in the face of a turbulent business environment mean that tomorrows work place will be barely recognisable from today. Hence HRM has to respond accordingly.HRAUDIT Meaning- It is a tool for evaluating the personnel activities of an organisation. It is an overall quality control check on HR activities in a division / company and an evaluation of how these activities support the orgn’s strategy. It gives feedback about the HR functions to operating managers and HR specialists. It is a comprehensive method to review the current HR policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever changing rules and regulations.Se ee ek ey ee eee and evaluation of policies, procedures and practices to determine the effectiveness of personnel mgt. OBJECTIVES OF HR AUDIT L. To review the performance of HR dept. and its related activities in order to assess its effectiveness on the implementation of various policies to reach the organisational goals. 2. To identify the — gaps,lapses, irregularities,shortcomings if any in the implementation of the policies and procedures of the HR dept.and to suggest remedial action. 3. To know the factors which are detrimental for the implementation / wrong implementation of the planned programmes. 4. To suggest measures and corrective steps to rectify mistakes if any for future guidance and advice for the effective performance of HR dept. 5. To evaluate the staff and employees of HR dept.with reference to performance appraisal reports and suggest suitable measures for 6. To evaluate the job chart of HR managers and executives, whether they have implemented the directives and guidelines for the effective mgt. ofBENEFITS OF HR AUDIT 1. Yn fo Pa ot 10. ll. Identifies the contribution of HR dept. to the orgn. Improves the professional image of HR dept. Clarifies HR dept. duties and responsibilities. Encourages greater responsibility and professionalism among members of HR dept. Stimulate uniformity of HR policies and practices Identifies critical HR problems Ensures timely compliance with legal requirements. Reduces HR cost thro’ more effective HR procedure Smooth adoption of changing mind set Requires thorough review of HRIS. Sound performance appraisal system.The HR manager can know the dept.’s effectiveness. By auditing, he can know the problems before they become serious. A systematic assessment helps to maintain discipline(follow rules & regulations) in the orgn. SCOPE OF HR AUDIT HR audit must cover the activities of the HR dept. It covers the following areas: 1. Audit of HR functions- All HR functions must be audited and the auditors review the performance. They develop plan to correct deviations if any between results and goals. 2. Audit of managerial compliance- It also audit the managerial compliance of personnel policies, procedures and legal provisions. Compliance with legal provisions is important and any violation makes the mgt. guilty of an offence.3. Audit of HR climate- HR climate has an impact on employee motivation, morale and job satisfaction. The climate can be measured by examining the LTO, absentecism, safety records and attitude surveys. 4. Audit of corporate strategy- Cor.strategy help the orgn.gain competitive advantage. By assessing the company’s SWOT , the mgt.can find ways of gaining an advantage.APPROACHES TO HR AUDIT Auditors may adopt 5 approaches for the purpose of evaluation. They are- 1. Comparative approach - In this one, the auditors identify another company as the model. The results of their orgn. are compared with those of the model company. 2. Outside authority approach- In this one, the auditors use standards sect by an outside consultant as benchmark for comparison of own results. 3. Statistical approach- In this one, statistical measures of performance are developed based on the company’s existing information. Eg. LTO and absenteeism rates. These data help auditors to assess performance.4. Compliance approach- In this one, the auditors review the past actions to determine if those activities comply with legal requirement and company policies and procedures. 5. MBO- This one is for specialists and operating managers to set objectives in their areas of responsibility. This method creates specific goals against which performance can be measured. The audit team compares the actual performance with the objectives. Then the auditor prepares the audit report and send it to management.HUMAN RESOURCE ACCOUNTING-HRA Meaning- It is the process of identifying and reporting investments made in the human resources of an organisation that are presently unaccounted fir in the conventional accounting. It is the activity of knowing the cost invested for employees towards their recruitment, training, payment of wages and salaries and other benefits and in return knowing their contribution towards its profitability. The American Association of Accountants defines HRA as the process of identifying and measuring data about human resources and communicating this information to interested parties. Flamhoitz defines HRA as accounting for people as an organisational resource. It involves measuring the costs incurred by organisations to recruit, select, train and develop human assets. It also involves measuring the economic value of people to the organisation.OBJECTIVES OF HRA 1.Providing cost value information about acquiring, developing, allocating and maintaining human resources. 2. Enabling mgt.to monitor the use of human resources. 3. Finding depreciation / appreciation among human resources. 4. Assisting in developing effective mgt practices. 5. Increasing the managerial awareness of the value of human resources. 6. For better HRP. 7. For better decisions about people, based on improved information system. 8. Assisting in effective utilisation of manpower.ADVANTAGES OF HRA 1,The implementation of HRA clearly identifies human resources as valuable assets which helps in preventing the misuse of human resources by the superiors as well as the mgt. 2. Managerial decision making can be improved with the help of HRA. 3. The system of HRA discloses the value of human resources which helps in proper interpretation of ROCE. 4. It helps in efficient utilisation of human resources and understanding the evil effects of labour unrest on the quality of human resources. 5. This system can increase productivity because the human talent, devotion and skills are considered valuable assets which can boost the morale of the employees. 6. Provides scope for development of employees by effective T&D.7. It can assist the mgt. for implementing best methods of wages & salary admn. 8. It off-sets uncertainty and change, as it enables the orgn. to have right people for the right job. LIMITATIONS- 1. No standardized procedures developed so far. In F.a/c ing , there are no accounting standards for HRA. 2. The life span of HRs can’t be estimated. So the valuation seems to be unrealistic. 3. The valuation of H. assets is based on the assumption that they are going to remain in the orgn. for sometime. But this is wrong, because employee mobility is v.high. 4.The life of a human being is uncertain. So its value is also uncertain.METHODS OF HRA L. Historical cost method- This method involves determining the total cost of recruiting and hiring each employee as well as the cost of any T&D. According to this method, the economic value of an employee is the total of these expenditures and the annual economic value of the entire workforce is equal to the total amount of money spent on recruiting, hiring, T&D of all employees during the year The economic value of HR increases overtime and they gain experience. 2. Replacement cost method- According to this model, the value of employee is estimated as the cost of replacement with a new employee of equivalent ability and efficiency. This method values an employee in terms of the amount it would cost the company to replace him. This method holds that the economic worth of a worker is equal to the estimated cost of recruiting, hiring and training a replacement or of finding an employee with similar set of skills and talents.3. Opportunity cost method- Opportunity cost is the maximum alternative earning that is earning if the productive capacity/asset is put to some alternative use. Quantifying HR value is difficult under this method. Because alternative use of HR within the company is restricted and at the same time the use may not be identifiable in the real industrial environment. This method involves the computation of monetary value and the allocation of people to the most promising activity and thereby assess the opp. cost of main employees thro’ competitive bidding among the investment centre. 4. Economic value method- The value of HR is evaluated on the basis of contribution they are likely to make in the orgn. during their stay in the orgn. The payments made to the employees in the form of salary, allowances and benefits are estimated and discounted appropriately to arrive at the present economic value of the individual.‘THE ROLE OF THE PERSONNEL MANAGER Personnel role Welfare Role Clerical role Fire fighting, legal role (a) Advisory advising manage- (a) Research in personnel and (a) Time keeping (a) Grievance menton effectiveuse of H.R. - organizational problems. handling (b) Manpower planning (b), Managing services (b) salary & wage (b) Settlement recruitment and selection canteen, grain shops, administration, of disputes transport, co-operatives incentives: (©) Training & development (¢) Group dynamics group (¢). Maintenance of (©) Handling * of employees counselling, motivation, records disciplinary Icadership, communi- actions cation. (d) Measurement or assess- ment of individual and group behaviours (4) Humanengineering, (qd) Collective man-machine elation- Bargaining ships (©) Joint consul- tationsHR managers are the professionals responsible for attracting, motivating and retaining the most qualified talent by directing the administrative functions of HR department. Due to the supervisory nature of this position, HR managers are called upon to handle employee related services, regulatory compliance and employee relations. The roles of HR Managers are: = To manage the employees, employers and the HR department = To develop and administer HR plans and procedures that relate to the company personnel = To plan, organise and control the activities of HR dept. = Overseeing dept.functions and managing employeesTo manage, create, implement and supervise policies/regulations which are mandatory for every employee and also have knowledge of its appropriate functioning To explain HR policies, procedures and laws to new and existing employees To prepare/update employment records related to hiring, transferring, promoting and terminating Responsible for the overall corporate HR function Set simple and performance driven compensation strategies and policies Identify rich recruitment sources and utilize the full recruitment potential of the organisation Develop top talents and focus the investment of training funds Build friendly corporate culture and drive the engagement of all employeesBuild direct communication channels and support honest and quick information flow Support employees innovation and creativity Approve updated organisation charts and maintain accurate personnel records Counseling and guidance as and when needed To ensure that the overall administration, coordination and evaluation of HR plans and program are realised To implement and revise a companies compensation plan To conduct annual salary surveys To create and revise JD To develop, revise and recommend personnel policies Maintaining and revising the companies handbook on policies and procedures= Overseeing recruitment of all people = Overseeing exit interviews = Participating in administrative staff meetings He is a link between an organisations management and its employees, as they provide consultation on strategic planning with top executives for recruitment, interview and hire new staff. In modern organisations, they are the counselor, mediator, spokesperson, problem solver and change agent.COMPUTER APPLICATIONS IN HRM HR software is used by business concerns to combine a number of HR functions such as storing employee data, managing payrolls, recruiting processes, benefits administration and keeping track of attendance records. It ensures every day HR processes are manageable and easy to access eg.ERP software. HRIS provide a means of acquiring, storing, analysing and distributing information to various stakeholders. It maintains the up to date information relating to all aspects of HR of the organisaton. It converts the data into meaningful information needed by the manager to take decisions, planning and control. Today HRIS is computer based IS. HR manager must possess the ability to obtain the information, store it and retrieve the same for using to take right decision.Today is the information era and knowledge is increasing with the tremendous speed. Current information is needed for right decisions. Speed and accuracy of data is the special feature of computer. It provides information to the management at appropriate time for making decisions. DSS-Decision Support System is an interactive computer based s t helps decision makers use data and models to solve roblems. It aids managers in decision making. module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes and generating periodic pay cheques and employee tax reports. It also generates pay slips. The time and attendance module gathers standardised time and work related data.The HR Management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, T&D, capabilities ad skill management, compensation planning records and other related activities. On line hiring has become one of the primary methods employed by HR departments to attract potential candidates for available position within an organisation. The training module provides a system for organisations to administer and track employee T&D efforts. LMS-Learning Management System is used to track education, qualifications and skills of employees and also outline what training course/book/CD available to develop skills. On line training and virtual programmes can be organised.The emails, internet and video conferencing have brought about transformation of HR function. It has also cut down the overhead costs incurred. The computer and modern technology have brought in vast changes and transformed the organisational structure, working and culture- eg., work from home. It helps in HRP by providing data. It is used in recruitment too for quick process- on line test. It also helps in T&D. T he computer aided instructions are widely used in training techniques. LCD Projectors are used for teaching and showing various models-PPT. The computer based training is effective and can be provided at the work spot. It can also be uscd for providing simulations of real job situation. Several software packages are available for maintaining and monitoring compensation administration. The data base provided by computers help to extend safety measures at work places and also maintain good human relations.At all levels of management, operational level, middle level and higher level, wide use of computers is made. HRIS and computers make an office paper less, increase storage efficiency, time saving and securing of data. Remote working/Virtual manpower is popular among the contemporary organisations because of the use of computers. Social media plays an active role in HR today to tell the success stories of their concern. Google forms are used to conduct opinion surveys among employees. Hence the computers play a vital role in HR for performing various functions. Intranet is used for internal communication, e-learning, on line recruitment, online appraisals etc are the various services availed thro’ the use of computers.EVOLUTION OF HRM The field of HRM represents a variety of historical and contemporary factors: 1. The Industrial Revolution Era — During this period machines were introduced and technology made rapid progress. This also increased speed and efficiency but left workers with dull, boring and monotonous jobs. Employers were keen to meet the production targets rather than workers satisfaction. Govt.did little effort to protect the interest of the workers.2. Scientific Management Era- F.W.Taylor introduced the concept of Scientific Management. It involves : > Development of science for each part of the job >» Standardisation of work through division of labour > Scientific selection of workers and T&D > Time and motion studies > Work measurement > Differential piece rate system > Co-operation between management and workers > Mental revolution >» Maximum prosperity for employers and employees Taylor advocate this to improve speed and efficiency.3.Trade Unionism- Workers join hands to protect against the exploitation of employers and unfair trade practices thro’ unions. Unions tried to improve the conditions of workers thro’ CB, resolving grievances relating to working conditions, pay and benefits, disciplinary actions etc. 4. Human Relations Approach- The Hawthorme studies were conducted from 1927-1932 at the Western Electric Hawthorne works in Chicago. Harvard Prof.Elton Mayo examined productivity and work conditions. The result of this study proved that the factor most influencing productivity thro’ relationships. They also noticed that the increased attention received by the workers, increased motivation and productivity. So if the workers received special attention and encouraged to participate, they are motivated to be more productive.5. Human Resources Approach- During early 1960’s the “pet milk theory ( advocating that happy workers are productive workers/ happy cows give more milk) of human relations had been largely rejected. This approach assumes that the job itself is the primary source of satisfaction and motivation to employees. The emphasis in this approach is on the individual involvement in the decisions made in the organisation. Hence provide a healthy environment, the people will contribute to the best of their capacities. It believes in Theory-Y. People do not dislike job, they have self direction and self control. So their needs to be satisfied to achieve better results.Growth in India- The early roots of HRM could be traced back to the period after 1920. The Royal Commission on Labour in 1931 suggested the appointment of Labour Officer to protect the workers interest. After independence , the Factories Act,1948 was passed. This Act made appointment of Welfare Officers compulsory in industrial establishments employing 500 or more workers each. In course of time, two professional bedies,IIPM, Kolkata and NILM, Bombay came into existence in 1950. After the Second World War , the country’s political independence witnessed increased awareness and expectations of workers. During 1960’s scope of personnel function expanded covering labour welfare, PM, industrial harmony and IR.In 1960 and 70’s the HR professionals focussed more on development of human resources. The emphasis was on striking a harmonious balance between employee demands and organisation requirements. The second Five year plan paid more attention to the growth of public sector which resulted in the professionalisation of management. In 1970’s there was a shift in the professional values. In 1980’s, professionals began to talk about new technologies, HRM challenges and HRD. The two professional bodies , IIPM and NILM, merged in 1980 to form the NIPM, Kolkata. During 1990’s, LPG focussed attention to human values and productivity thro’ people. The issue of workforce diversity also assumed more importance in view of different culture in globalised companies.In 1920-30, it was treated as clerical job and then moved to administrative in 1940-60’s, then managerial job in 1970-80’s and in 1990’s as executive status. The designations of managers have been transformed from traditional “Personnel Managers” to “ HR Managers” and nomenclatures of departments have been changed to HR departments. The organisations have started respecting people as an important resource and are assigning monetary value to employees. Now the HRM functions have assumed a professional status.INCLUSIVE GROWTH & AFFIRMATIVE ACTION PLANS Inclusive growth- It means economic growth that creates employment opportunities and helps in reducing poverty. It means having access to essential services in health and education by the poor. It includes providing equal opportunity, empowering people thro’ education and skill development. It is the process and the outcome where all groups of people have participated in growth and have benefited equally from it. It is the growth that reduces disparities among per capita income. It is essential for sustainable growth and impartial allocation of wealth. The inclusive growth approach takes a longer term perspective, as the focus is on productive employment as a means of increasing the incomes of poor and raise their standard of living.Reducing poverty, improving the quality of life and ensuring that all parts of the society benefitting from the economic growth of the country is the primary objective of inclusive growth. The GOT has launched various programmes such as MGNREGA, SSA, NRHM, ICDS, PMJDY, Mid day Meal Scheme, Swachh Bharath Mission etc. to ensure broad based improvement in the quality of life of the people, especially the poor, SC/ST’s, OBC’s, minorities and women and which seeks to provide equality of opportunity to all. Suggestions- Macro level- open to FDI, trade liberalisation, tax reforms, privatisation etc. Micro level- develop infrastructure, education, health care, women empowerment, good governance etc.Affirmative action- It is a tool of management designed to make sure there is the equal opportunity of employment for all. It is a policy/ programme designed to counter discrimination against minority groups and women in areas such as employment and education. It is a policy initiative in which a person’s nationality, gender, religion and caste are taken into account by a company/ govt. organisation to extend employment/ education opportunities.These policies are aimed at increasing opportunities for those groups of people which have been neglected by the society. It is called as Reservation in India. Affirmative Action Plan-AAP is a set of management policies and practices which seeks to provide equal employment opportunities to all by eliminating such barriers for women, minorities, physically challenged people and other less privileged sections of the society. It is required to hire people from all sections and parts of the region.Thus HR managers have to know the recent legal rules and regulations relating to inclusion and affirmative actions and also comply with those rules in their organisations. This helps to prevent discrimination and promotes inclusiveness. This also helps to manage diversity, increase productivity and staff retention. The organisation can improve its ability to cope with change and promote innovation. Advantages: It promotes diversity It can eliminate socio economic differences It stops stereotypes Allows people to chase dreams Expansion AuA WN Boosts poductivityHR POLICIES HR policies are the ‘formal rules and guidelines that businesses put in place to hire, train, assess and reward the members of their workforce. HR policies are continuing guidelines on the approach an organisation intends to adopt in managing its people. A policy is a fermavwteteca oft jpinsialesle which all members of an organisation are bound to follow. A procedure tells the members of an organisation how to implement/ carry out policy.Objectives of HR policy > Optimum use of HR > Training of every one > Sound IR > "Payment of fair wages > Security of employment > Respecting human dignityContents of HR policies The following matters are governed: Recruitment of employees Man power planning and development Training programmes Conditions of employment Hours of work Absenteeism OT Lay off, termination of service and welfare WC ANAMA WN ‘Wage policy, motivation, incentives 10. Recognition of trade union. CB, WPM 11. Promotion, demotion, transferWhy HR policies? It is a road map to day to day operations Provides a clear communication between mgt.and employees regarding conditions of job Set of guidelines for supervisors and managers Assist the organisation in establishing and maintaining consistent practices in the work place Help employers and employees run the organisation in a smooth and efficient manner Ensures every employee of the organisation is looked after , their need respected and proper benefits are given Protects employees from wrong behaviour from other employees/ organisation itself Helps train and develop employeesHelps employees receive adequate pay Helps to maintain discipline Address the complaints and problems of employees To ensure compliance with laws and legislation Gives guidance for decision making and streamline internal process To communicate with employces the way you expected to behave on the job Helps to clarify the standards expected of employees and also to manage staff effectively Uniformity-no chaos Better control.