vale 10 cited Human

INTRODUCTION to
get " good Introduction "
Chapter
Outline
diligently.
or work real efforts In hundred.
Give that way Delivering todealideasOffer in Importance
Importance HRM of
Definition
HRM ofNature,
their the
(OMPEIENCIES HRM:CHAPTER
fact resources
support use,
challengecompetitive is
they to bring with
best greater go from
excellent
concerns. they they satisfaction they Scope,
incremental
are that customers
out time of
CONCEPT,
can can capable deliver
this are
ofbefore than extra Objectives
And bring take ideas
to the
people, edge: contention:
the time. value most
you managers to
ofmile changes on
competitive
terrific a and
company enlargement-ie, sumcustomers:
capable a
They
need you They ofand
daily important
to and
constructive
need
of bring in know customers. FUNCTIONS,
1.3 to is can parts. basis.
move themput to
products.
to
tocommanding bring
0ne ground
in If They assets Qualifications Functions
Manager:
HR
additional they Case HR HR
closertreat suggestions: Three
name plus are can Manager:
them advantage realities of Study: Manager:
to on treated give important a
and one company.
their customers
well. theheights. us Left Role
could
fame producing
outputan Conpetencies
hearts. job to betteroffer
They
well, helpfulexcellent
ROLES
You or
and a to be reasons If Right? &
Through
company. they because
as they Status
You need make a ten suggestions
company. well.
need to or are can are & &
take them even they
to The their Inwil
beput
a
 NATURE
The HRM OFefforts, nelps influence concerns.
fairnesssating
andDessler: Price:
managingcontribute 14
Preparng Raymond
De AlHRManconcernedDeNisi efficient manner. histoary. with The theirresultetsnt. ion. ofrefers to
Pervasive
"most
CenzO Box competent success
.
peopleHuman
availimiltaebid litywwwwwww*DEFIwwwwwwwwwwwwwww
NITION get Whebrn idge
and
line employees and organisational to It
rmeatesimportant and Preciselycontributions. Inspire Yo u
HRM and manager
even s the
people)
managers and
employees A to th 1.1:
wiGriffin: mantra
eresource
resources) peoplconvert sor gap
maintenance Noe, organizational hi r e
force: rewarding workforce UNIT
Robbins: is developing
is them are
ordinary between
the
et and What stated, scarciworty king
features
all HRM aimed HRM needs inAnd people. human
management 1:
levels th
motivation wibehaviour, al: processof to HRM to The
HRMattending their refers HRM tu rn do and in people ablIeNTRODUCTI
is (keeping staffing HRM at and the achieve and is Give principal talent
an employeeto ON
pervasive
of of effectiveness.
recruiting well. the
HRM is
attitudes
refers performance of to employee the
is quitethem them
seeks deliverstrike
ment stimulating
(getting the acquiring, maintaining Experts
the the organisation;Treat a
wor d in to
good to to art simple. into the focus TO
may their goal s fin e a to
in people the comprehensive
capable, of them extr expect
a-ordinary a tio ns HUMAN
nature. employees)
be and procuring,
expectations.
compet itive jobs is
people) policies. labour super-heroes management mprove
of You balance on the
in listed them
performance.
component
training, and qualified Say? an wi th th at RESOURCE
developing flexible talent and
an It
organization
needRecognize
respect. they advantage. word (The athe between
isthus: training to practices
relations, organisational
tion. appraising set developing 'resource'
indicates
refers
Contributions
productive results. MANAGEMENT
present ain
l put workforce
to acquisition and
003************
and Once tune of capable are
of the the
forth and or
and health committed
key activities th is to
in
evervthins:"g corporate two.
competencies and,m aintaining an proper
their
deveopd management. systes and requiremeNS
they
in done, Word
d
ancomper ways and effective and talent
delivering
of
utilization
rewat are
enterpris peopl e restis limiterhumgn ai
greatest ua satey that tasks and re:
 CH. 1:HRM: CONCEPT, FUNCTIONS, ROLES & COMPETENCIES 1.5

Action oriented: HRM focuses on action, rather than on record keeping,

written procedures or rules. The problems of employees at work are solved
through employee-friendly policies.
Individual oriented: HRM seeks to get the best out of an employee. Each
employee is treated with respect and dignity. Career opportunities are
created so that employees do not leave a company. Necessary training is
provided in order to help an employee grow.
People oriented:HRM is all about people at work, both as individuals and
groups. "The right jobs are assigned to the right people. Growth avenues
are thrownopen to all. Excellent performance is rewarded and encouraged.
Every attempt is made to keep employees happy and contented.
Future oriented: Effective HRM prepares people for current as well as
future challenges. Employees are encouraged to take up assignmeDts that
match their skills and talents.
+ Development oriented: HRM intends to develop the full potential of em
ployees.The reward structure is tuned to the needs of employees. Training
is offered to sharpen and improve their skills. Employees are rotated on

various jobs so that they gain experience and exposure. Every attempt is
made to use their talents fully in the service of organisational goals.
Integrating mechanism: HRM seeks to strike a rapport between people
working at various levels in an organisation. The whole attempt is to cre
ate a tension-free work environment. Issues that flare up emotions such
as wage increases, work schedules, benefit plans and union-management
relations are always given topmost priority so as to keep employees in
good humour.
Comprehensive function: HRM is concerned with managing people at
middle and
work. It covers all types of personnel-workers, supervisors,
acquisition, development and
top managers. All issues relating to talent
retention are put to close examination.
advise the line or
Auxiliary service: HR departments exist to assist and
The HR manager is
operating managers to do their work more effectively.
a specialist advisor, and HR is a
staff function.
utilizing
Interdisciplinary function: HRM is amultidisciplinary activity,sociology,
as psychology,
knowledge and inputs drawn from subjects suchemployee behaviours, atti
anthropology, economics. Influences that affect
and performance are given topmost priority. The whole exercise is
tudes from various angles-as
meant to understand the psychology of employees
towhy people behave the way they do.
cannot be practiced only
Continuous function: HRM is not a one-shot deal. It constant alertness and
One hour each day or one day a week. It requires
importance in everyday operations.
awareness of human relations and its
 HUMANRES ENT
INTRODUCTION TO
UNIT1 :
1.6 refersto all
SCOPEOFHRM
smwwwwwwwwwwwwwowwwwwwwwowwwwxmw
Management the activities
Resource stand now the scope of HRM
Human things acquisition. is
of
The scopebanner of HRM.
As
relatedto
talent development and very
under the
deals
matters
withall coversthree things: retent
It stated,it concerned with manpower planning,
Broadly This
selection, placement,
Personnelaspect:
retrenchment,
Welfare
is
transfer, promotion,
remuneration,
training and development, ayn
incentives, productiviy etc.
aspect: It deals with working conditions and amnenities such:
,recruitme
and
canteens, crèches, rest and lunch rooms. housing, transport, medical
recreation
education, health and safety, and facilities.
sistance, relations aspect: This covers union-management; relations,loi
Industrial
consultation, collective bargaining, grievance and disciplinary procedure-
disputes.
and settlement of
OBJECTIVES OF HRM

key purposes of HRM may be listed thus:

The
achieve ondl
1. Achieve goals: The principal task of an HR manager is to
and deliver results by putting talents of employees to best use.
2. Motivate people: To get the best out of people, HR managers must mot
vate people through appropriate HR policies, programmes and practiea
3. Attract and retain talent: To survive and flourish in acompetitive worti
HR managers must be able to attract and retain talent. To this end, they
must design programmes aimed at employee growth and development
Training opportunities must be thrown open to all deserving candidate
from time to time.
4. Adapt HR policies and practices in sync with corporate strategy:
managers' basic job is to align individual HR practices with corporategoa
and strategies.
5. Gain competitive advantage: By making use of talent in the best possih
way and by improving productive contributions of people at workH
should help afirm gain competitive advantage. When talent 0s puttogoo
use, a firm can get
past
6.
Improve
of life of employees.
competition
quality of Resources easily.
working life: GoodtoHRgood
are put
quali
Informationtheshare
use. improving
aims at
openly. Working relationships are based on mutualItrust andrespect Reward
are distributed equitably. Welfare amenities, Safety and security measur
are put in
place--paving the way for a better working environment
 CH. 1:HRM: CONCEPT, FUNCTIONS, ROLES & COMPETENCIES 1.7

7 Communicate HR policies and programmes: It is the responsibility of

the HR department to communicate the HR policies to the employees in
the fullest possible sense. Moreover, they should tap ideas, opinions and
feelings of the employees so that the HR policies evolve with the changing
needs of the organization and its employees.
g Ensure ethical and socially responsible behaviour and actions: While
trying to meet enterprise goals, HRM must ensure that organizations
manage human resources in an ethical and socially responsible manner
by ensuring compliance with legal and ethical standards.
Viewed broadly, HRM seeks toimprove the contributions of employees and thereby
improve organisationaleffectiveness. When organizations deliver results, it helps
the society to enjoy a better quality of life.
IMPORTANCE OF HRM
Human resource management helps an organization and its people to realize
their respective goals at different levels:
TABLE1.1: IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
At the Enterprise level At the individuallevel
" Attract and retain talent: Good human It promotesteam work and team spirit
resource practices can help in attract among employees.
ing and retaining talent. They keep It offers excellent growth opportunities
employees happy and remain focused to people who have the potential to
on enterprise goals. They can act as rise.
morale b00sters.
It allows people to work with diligence
Prepare people for challenging roles: HRM and commitment.
helps in training people for challenging At the society level
roles, developingrightattitudes towards
the job and the company, promoting Employment opportunities multiply.
team spirit among employees and Scarce talents are put to best use.
developing loyalty and commitment Companies that pay and treat people
through appropriate reward schemes. well always race ahead of others and
deliver excellent results.
Outperform competition: When talent
isput to best use, organisations beginAt the national level
tooutperform competition. When the Effective use of humian resources helps
climate is right, human beings are in exploitation of natural, physical and
motivated to give their best. Such a
financial resources in a better way.
Company is able to turn out superior
performance consistently.
 INTRODUCTION
UNIT1:
People with right skills,
1.8 Good
human re
creativity: peopleassume
and appropriate
toget ahead and
yalues prheloperp theati uds
"
Improvepracticeshelpinitiative,
assume compete with
inthe world|leading to
source
responsibility,take lotwithout
any
of living and better bet er sandar
and
experimenta
risk, criticism.In
of
such
fearatmosphere,people
an
can
invigorat
puttheir
use.
employment.
ing energiestobest
Creative andeficient
efectively companies
Achieveresults
" practiceshelp
HR keep
: Gooddevelop, stimulate and
acquire, employees. Getting and
outstanding
people is criticalforthe
keepinggood enterprise objectives
achievement of
effectivelyand efficiently.
MANAGER
FUNCTIONS OF HR
To facilitate easy understanding, the functions of HR manager may be broadly
divided intotwo categories: Managerial Functions and Operative Functions.

Managerial Functions
The basic managerial functions comprise planning, organising, directing and
controlling.
" Planning: This is the process of making decisions about the future. Itis
the process of determining enterprise objectives and selecting future cours
es of actions necessary for their accomplishment. Planning of personmel
today prevents crises tomorrow. The HR manager is expected to desig
appropriate policies and procedures regarding recruitment, selection and
training of employees.
Organizing: This function is primarily concerned with proper groupinguf
personnel activities, assigning of different groups of activities to ui
individuals and delegation of authority. Creation of a proper structural
framework is the primary task.
Directing: This involves supervising and guiding the personnel.Theper
Sonnel manager must be an effective leader who can create winning teams
While achieving results, the perSonnel manager must, invariably,takecart
of the concerns and
expectations
Controlling: This function of
emploveestheatemployee's
all leves
involves performan
correct
of plans.ingIt negative deviations and measuring
ensuring the efficient accomplishmenl
reports, makesandindipersonnel
records viduals audit
review

aware ofProgrammes.
their It ensures
performance that
through the
a
tivities arecarried out in
accordance with stated plans.
 CH. 1: HRM: CONCEPT, FUNCTIONS, ROLES 1.9
& COMPETENCIES

Operative Functions
The operative functions of HRM are as follows:
Procurement function
Procurement is concerned with hiring
people who possess the requisite skills,
knowledge and aptitude. Under its purview are job analysis,
manpower planning,
Pecruitment, selection, placement, induction and internal mobility.
Job analysis: It is the process of collecting information relating to the
operations and responsibilities pertaining to a specific job.
Human resources planning: It is the process of determining and ensur
ing that the organization has an adequate number of qualified persons,
available at proper times, performing jobs which would meet their needs
and provide satisfaction for the individuals involved.
Recruitmnent: It is the process of searching for prospective employees and
stimulating them to apply for jobsin the organization.
Selection: It is the process of ascertaining qualifications, experience, skill
and knowledge of an applicant with a view to appraising his/her suitability
to the job in question.
Placement: It is the processthat ensures a 360° fit, matching the employ
ee's qualifications, experience, skills and interest with the job on offer. It
is the personnel manager's responsibility to position the right candidate
at the right level.
Induction and orientation: These are techniques that help new employ
ees adapt to their new surroundings and introduce them to the practices,
policies and people.
Internal mobility: The movement of employees from one job to another
through transfers and promotions is called internal mobility. Some employ
ees leave an organization due to various reasons, leading to resignation,
retirement and even termination. These movements are known as external
mobility. In the best interest of an organization and its employees, such
job changes should be guided by well-conceived principles and policies.
Development function
bevelopment aims at enhancing one's ability to understand and interpret knowl
ge in a useful way. It is, strietly speaking, a long-term learning process that
eps managers acquire conceptual and theoretical knowledge in asystematic
manner. This function includes the following aspects:
Iraining: It is a continuous process by which employees learn skills,
khowledge, abilities and attitudes to further organizational and personnel
goals.
 HUMAN RESOURCE MANAGEMENT
INTRODUCTIONTO
UNIT 1:
1.10
Executive development: It is asystematic process off developing managerial
through appropriate programmes.
skills and capabilities
Career planning and development: It is the planning of one's career and
implementation of career plans by means of education, training, job search
and acquisition of work experiences. Itincludes succession planning which
implies identifying developing and tracking key individuals for executive
positions
resource development: HRD aims at developing the total
Human
nization. It creates a climate that enables every employee to develon
use his capabilities in order to further both individual and organizational
goals.
Motivation and compensation function
best to the organization throuck
It is a process that inspires people to give their responsibility and extrinsic (ioh
the use of intrinsic (achievement, recognition,
incentives) rewards.
design, work scheduling, appraisal based
Job design: Organizing tasks and responsibilities towards having a pro
ductive unit of work is called job design. The main purpose of job design
is to integrate the needs of employers to suit the requirements of an or
ganization.
" Work scheduling:Organizations must realize the importance of scheduling
work to motivate employees through job enrichment, shorter work weeks,
flexi-time, work sharing and work-from-home assignments. Employees
need to be challenged at work and the job itself must be one that they
value. Work scheduling is an attempt to structure work, incorporating the
physical, physiological and behavioural aspects of work.
Motivation: Combining forces that allow people to behave in certain ways
is an integral aspect of motivation. People must have both the ability and
the motivation if they are to perform at a high level. Managers generally
try to motivate people through properly administered rewards (financial
as well as non-financial).
Job evaluation: Organizations formally determine the value of jobs througn
the process of job evaluation. This is the systematic process of
determinw
the relative worth of jobs in order to establish which jobs should be higher
paid than others within the orrganization. Job evaluation helps to establish
internal equality between various jobs.
Performance appraisal: This is asystematic and objective way of eval-
uating work-related
that involves behaviour and potential of employees. It is a process
she is determining and communicating
performing and ideally, establishing to an employee how he or
a plan of
improveme
 CH. 1 : HRM: CONCEPT, FUNCTIONS, ROLES &COMPETENCIES

Compensation administration: This is the process of dividing how much

an employee should be paid. The important goals of compensation admin
istration are to design a low-cost pav plan that will attract, motivate and
retain competent employees, which is also perceived to be fair by these
employees.
Incentives and benefits: In addition to a basic wage structure, most
organizations nowadays offer incentive compensation based on actual
performance. Unlike incentives, benefits and services are offered to all em
ployees as required by law, including social security, insurance, workmen's
compensation and welfare amenities.
Maintenance function
It aims at protecting and preserving the physical and psychological health of
employees through various welfare measures.
"Health and safety: Managers at all levels are expected to know and en
force safety and health standards throughout the organization. They must
ensurea work environment that protects employees from physical hazards,
unhealthy conditions and unsafe acts of other personnel. Through proper
safety and health programmes, the physical and psychological well-being
of employees must be preserved and even improved.
" Employee welfare: Employee welfare includes the services, amenities
and facilities offered to employees within or outside the establishment for
their physical, psychological and social well being. Housing, transportation,
education and recreation facilities are all included in the employee welfare
package.
" Social security measures: Managements provide social security to their
employees in addition to fringe benefits. These measures include: (a) com
pensation toworkers (or their dependents) who are involved in accidents;
(b) maternity benefits to women employees; (c) sickness and medical
benefits; () disablement benefits/allowance; (e) dependent benefits; ()
retirement benefits like provident fund, pension and gratuity.
Integration function
The integration function tries to integrate the goals of an organization with
employee aspirations through various employee-oriented programmes, like
redressing grievances promptly, instituting proper disciplinary measures, em
powering people to decide things independently, encouraging aparticipative
culture and offering constructive help to trade unions.
Grievance redressal: A grievance is any factor involving wages, hours or
conditions of employment that is used as a complaint against the employer.
Constructive grievance handling depends first on the manager's ability to
recognize, diagnose and correct the causes of potential employee dissat
isfaction before it converts into a formal grievance.
 MANACGEMEN
1.12 UNIT 1: INTRODUCTION TO HUMAN RESOURCE

Discipline: It is the force that prompts an individual or a group to

the rules, regulations and procedures that are deemed
attainment of an objective. necessary observe
for the
Teams and teamwork: Self-managed teams have emerged as the
important formal groups in today's organizations. They enhance most
involvement and have the potential to create positive synergy. By employee
worker interaction, they create camaraderie among team members.
encourage individuals to put group goals above their i
increasiTheyng
goals. Teams
have inherent strengths which ultimately lead to rindividual
organizational SUccess at
various Bevels.
Collective bargaining: It is the process of agreeing on a satisfactory labnur
contract between the management and union. The Contract
ments about conditions of employment such as wages, hours, contains agree-
promotion
and discipline; layoff, benefits, vacations, rest pauses and the
procedure. grievance
" Employee participation and empowerment:
the decision-making power with the lower rankS Participation means sharing
of an organization in an
appropriate manner. When workers participate in organizational decisions.
they are able to see the big picture clearly and also how their actions would
impact the overall growth of the company. They can offer feedback imme
diately based on their experiences and improve the quality of decisions.
Since they are now treated with respect, they begin to view the job and
the organization as their own, and commit
themselves to organizational
objectives whole-heartedly.
Trade unions and employees association: Trade union is an
association
either of employees or employers or independent workers. It is a relatively
permanent a body formed by workers with the objective of countering
exploitation and harassment. It strives towards providing economic and
social benefits to the labour community. Trade unions have always played
apowerful role in improving the lot of workers in India,
using
bargainíng tactics. However since the 1990s, the situation hasaggressive
changed
dramatically. Unable to fight the forces of competition, many employerS
have been forced to shut down units and scale down
operations. This has
made both parties realize the importance of bargaining for their rights in
an atmosphere of give and take!.
Industrial relations: Harmonious industrial relations between labou
and marnagement are essential to achieve industrial growth and
nig
productivity. When the relationship between the parties is not cordial,
discontentment develops and conflicts erupt abruptly. It is not always ea
to put out the fires with the esxisting dispute-settlement-machinery, created
by the government. Hence both labour and management must appreciate
 UNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMEN
1.12
prompts an individual or a
Discipline: It is the force that group to observe
the rules, regulations and procedures that are deemed necessary for the
attainment of an objective.
Teams and teamwork: Self-managed teams have emerged as the most
organizations. They enhance
important formal groups in today'sto create emplo yee
involvement and have the potential positive synergy. By
worker interaction, they create caamaraderie among team members.Theyincreasing
encourageeindividualsto put group goals above their individual goals. Tearms
which ultimately lead to organizational success at
haveinherent strengths
various levels.
of agreeing on a satisfactory laho
Collective bargaining: It is the process union.
the management and The contract contains agras
contract between
wages, hours, promotion
ments about conditions of employment such as
benefits, vacations, rest pauses and the grievance
and discipline; layoff,
procedure.
participation andempowerment: Participationmeans sharine
" Employee power with the lower ranks of an
organization in an
the decision-making participate in organizationaldecisions
appropriate manner. When workers would
the big picture clearly and also how their actions
they are able to see company. They can offer feedback imme
growth of the
impact the overall experiences and improve the quality of decisions.
diately based on their begin toview the job and
with respect, they
Since they are now treated and commit themselves to organizational
own,
the organization as their
objectives whole-heartedly. association
association: Trade union is an
Trade unions and employees independent workers. It isa relatively
of employees or employers or objective of countering
either workers with the
permanent a body formed by strives towards providing economic and
exploitation and harassment. It Trade unions have always played
to the labour community.
social benefits of workers in India, using
aggressive
role in improving the lot changed
a powerful However since the 1990s, the situation has
bargaining tactics.
dramatically. Unable to fight the forces of competition, many employern
shut down units and scale down operations. This nasin
have been forced to
of bargaining for their rights
made both parties realize the importance
an atmosphere of 'give and take. labour
Harmonious industrial relations between higher
" Industrial relations: growth and
and management are essential to achieve industrialparties is not cordial,
productivity. When the relationship between the It is not always easy
discontentment develops and conflicts erupt abruptly.
ddispute-settlement-machinery,
created
to put out the fires with the existing apppreciate
management must
by the government. Hence both labour and
 CH. 1:HRM: CONCEPT, FUNCTIONS, ROLES &COMPETENCIES 1.13

the importance of openness, trust and collaboration in their day-to-day

dealings.
Emerging issues
Effective management of human resources depends on refining HRM practices to
changing conditions. Hence the need to look at other important issues that can
motivate people to give their best in adynamic and ever-changing environment.
" Personnel records: Personnel records such as papers, files,cards, cassettes
and films are maintained to maintain atangible record of what is actually
happening in an organization and to formulate appropriate HR policies
and programmes (based on historical records, actual experience and future
trends) from time to time.
Human resource audit: Human resource audit refers to an examination
and evaluation of policies, procedures and practices to determine the
effectiveness of HRM. Personnel audit (a) measures the effectiveness of
personnel programmes and practices and (b) determines what should or
should not be done in future.
Human resources research: Itisthe process of evaluatingthe effectiveness
of human resource policies and practices and developing more appropriate
ones.

" Human resources accounting (HRA): It is a measurement of the cost and

value ofhuman resources to the organization. Human resource management
is said to be effective if its value and contribution in any organization is
more than its cost.
Human resource information system: HRIS is an integrated system
It
designed to improve the efficiency with which HR data is compiled.
makes HR records more useful to the management by serving as a source
of information.
reaction to
Stress and counseling: Stress is the psychological and physicalstress results in
certain life events or situations. At an organizational level,
use/dependence
burnout, substance abuse in the form of alcohol or drug increased turnover.
reduced job satisfaction, increased absenteeism and
done to pro
Companies, therefore, are closely looking at what should be
through proper
mote the physical and mental well being of employees
counseling and employee development programmes.
management: International business is
" International human resource must increasingly be
almost every business today and so firms
important to
course, poses many challenges
managed with a clear global focus. This ofproduction,
including coordinating sales and financial
before managers
operations on a worldwide basis. International HRM places greater em
functions such as relocation,
phasis on a number of responsibilities and
 IUNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
1.14

orientation and training services to help employees adapt to a

different environment outside their own country. new and
HR
Other Issues: Apart from the above emerging issues, also needs to dea
with these issues: fo
a
Downsizing, or cuting down the number of employees in an
due to reasons such as recession, fall in demand, increasedorcompetganzatwhiicthiioonn.
outsourcing, automation or technology upgradation, is an 0ssue
t

gained importance in recent years--thanks to

liberalization,
and globalization.
empowerment, of late, has become
pr
an important
ivati z at io n
Employee issue in all
companies which want to compete in the global arena.
Empower
means giving the employees the authority to make decisions and ment
them with financial resources to implement these decisions. providing
Workforce diversity is another issue that is making headlines these days.
Diversity refers to the variety or multiplicity of demographic features that
characterize a company's workforce particularly in terms of race, sex, cul.
ture, national origin, handicap, age and religion.
TABLE 1.2: MAJOR FUNCTIONS OF HOMAN RESOURCE MANAGEMENT
000000000000000008

Procurement Develapment Motivatíon & MaintenanceIntegration

Compensation
aning
Executive Job design Employee Grievance
Job analysis
development health handling
HR planning Career Work " Employee Discipline
planning and scheduling safety
development
Recruitment HRD Motivation Employee Trade
welfare unions
Collective
Selection Job evaluation Social
security bargaining
Industrial
Placement Performance
relations
and potential
appraisal
Induction Compensation
administration
Internal Incentives
mobility

ROLE AND STATUS OF HR MANAGER

chang
dramatic job
The role of the human resource (HR) manager has undergoneadministrative
es over the years. It used to be a boring and monotonous COmpensation
consisting of routine activities such as welfare administration,
 CH. 1: HRM: CONCEPT, FUNCTIONS, ROLES &COMPETENCIES 1,15

management, appraising performance etc. Creating records, maintaining files,

formulating personnel policies and procedures seemed to be the prime time
activities of most personnel people. They had to play the role of a mediator be
tween labour and management--sorting out contentious issues on adaily basis.
It was more or less a glorified clerical job-a kind of non-strategic work-with
very little excitement and challenge.
Box 1.2: Personnel Management in the Past: ASnap
shot
Welfare administration
+Workers' safety and health- related issues
Keeping a vigil over workforce-a policeman's job
Fire fighting operations mostly non-strategic issues
Hiring, training and compensating people
Legal and compliance-related issues
Playing the role of mediatorbetween labourandmanagement
required
Advisingmanagement on various labour related issues, when
Focus mostly ongettingthìngsdone somehovw
procedures
Emphasis on rules, regulations, established poicies and
Personnel department is a cost centre
clerk!
he oersonne pesot short, was playing the role of a glorified
counterparts, wear many hats. Apart
Modern HR managers, unlike their earlier retention, they play multifarious
acquisition, development and
from talent solver, integrator, coach, mentor and
rolessuch as change agent, problem with
champion. They are expected to align HR strategies and policiesfront,
employee fact, they are supposed to lead
from the
business policies and practices. In on
means to improve organizational performance leveragingnot
invent ways and Investment in HR initiatives and efforts are
the strengths of employees. definitely help a firm get
valuable investments that
treated as expenses but as competitive environment.
succeed in a
past competition and
Managers Strategic Roles in the 21st
Box 1.3: HR
Century agent-changing the behaviour, attitudes and
performance of
Change
employees. a
management and
between labour unonssand shareholders.
Integrator striking rapport tinanciers a
customers, SUppllers,
external groups such as
1.16 UNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Trainer, educator, developer and motivator-playing the

proactive, radical, transformational change leader. role of a
Employee champion--putting the house in order in Sync with
expectations. employee
" Counselor, mentor and coach-rewarding team efforts.
Teams, teamwork and team spirit This is the new HR mantra. wbik
aims to get results through and with people, focusing on their
and by treating them with respect and dignity. HR involves, potential
and puts trust in people to get the best out of them. encourages
Problem solver Solving problems in a proactive,novel and innovative
manne.
Strategic partner playing a key, strategicand outstanding roleinstriking
rapport between people, goals, resources and results.
Designing a winning path aligning HR policies and practices in sync
with organizational mission, phiosophy andstrategies.
Put the talent to best use Talent acquisition and development is the
principal focus area making the best use of employee skils, knowledge
and experience in the service of organisational goals.
Outstanding value HR is a valuable investment. l is an investment
centre and not a cost centre

The key roles played by HR managers in a modern organisation may be dis

cussed thus:

Administrative Roles
The administrative roles of human resource management include the following:
Policy maker: The human resource manager helps management in uie
Tormulation of policies governing talent acquisition and retention, wage
and salary administration, welfare activities, personnel records, working
Conditions, etc. He also helps in interpreting personnel policies in an a"
propriate manner.
Administrative expert: The administrative role of an HR manager is heav
y onented towards processing and record
employee files, processing employee benefitkeeping-such as maintalnis
claims, updating leave and
medical
the land.,records of employees, preparing reports insync with the laws of
AaVisor: HR professionals are known for their
expected to assistline managers on expert advice. Tney
grievance matters relating to talent Malas
also redressal,
expected dispute resolution,
to formulate reward management etc. They are
grammes follo and pro
 CH. 1:HRM: CONCEPT, FUNCTIONS, ROLES &COMPETENCIES 1.17

Housekeeper: The administrative roles ofa personnelmanager in managing

the show incude recruiting, pre-employment testing, reference checking
employee surveys, timekeeping, wage and salary administration, benefits
and pension administration, wellness programmes and maintenance of
records.

Counsellor: The personnel manager discusses various problems of the

employees relating to work, career, supervisors, colleagues, health, family,
financial, social, etc. and advises them on minimizing and overcoming
problems, if any.
Welfare officer: Personnel manager is expected to be the Welfare Officer
of the company. Under the Factories Act, Welfare officers are expected to
take care of safety, health and welfare of employees. The HR managers are
often asked to oversee if everything is in line with the company legislation
and stipulation.
Legal consultant: The personnel manager handles grievances, settling of
disputes, disciplinary cases, collective bargaining, enabling the process of
joint consultation, interpretation and implementation of various labour
laws, contacting lawyers regarding court cases, filing suits in labour courts,
industrial tribunals, civil courts and the like.
Operational Roles
The operational roles of HR managers may be listed thus: .
Recruiter: Winning the war for talent' has become an important job of HR
managers in recent times in view of the growing competition for people
possessing requisite knowledge, skills and experience. HR managers have
touse their experience to good efect while laying down lucrative career
paths to new recruits without increasing the financial burden to the com
pany.
" Trainer, developer and motivator: Apart from talent acquisition, talent
retention is also important. To this end, HR managers have to find skill
deficiencies from time to time, offer meaningful training opportunities
and bring out the latent potential of people through intrinsicand extrinsic
rewards which are valued by employees.
" Coordinator/linking pin: The HR manager is often deputed to act as a
linking pin between various divisions/departments of an organization. The
whole exercise is meant to develop rapport with divisional heads, using
PR and communication skills of HR executives to the maximum possible
extent.
Mediator: The personnel manager acts as a mediator in case of friction
between two employees; groupsof employees, superiors and subordinates,
 MANAGEMENT
RESOURCE
INTRODUCTION TO HUMAN
1.18
UNIT 1:

management with the sole objective of

and employees and
industrial harmony.
Employee champion: HR managers have traditionally been
been viewed
advocates. Important
maintairniy
or employee
morale officers'
obligation,
of HR managers aschampions of employee interests include: placing per,
'company
ple on a right job, charting a suitable career path, rewarding reditabl.
between warring groups
performance, resolving differences
adopting
to family friendly policies, ensuring a fair and equitable ami cabl
treatment
allpeople, striking a happy balance between employee expectations : and
,
organisational requirements etc.

Strategic Roles
To remain cost competitive and to achieve success in a competitive world un
managers have to get the best out of employees. To keep employees in good
humour they need to undertake certain proactive steps. They need to brine
about radical changes, sometimes, in sync with market needs.
Change agent: Strategic HR, as it is popularly called, now aims at building
the organization's capacity to embrace and capitalize on change. It makes
sure that change initiatives that are focused on creating high-performing
teams, reducing cycle time for innovation, or implementing new technology
are defined, developed and delivered in a timely manne.
The HR manager in his new avatar would help employees translate the
vision statements into a meaningful format. HR's role as achange agent
is to replace resistance with resolve, planning with results and fear of
change with excitement about its possibilities. HR certainly helps in put
ting everything in place by taking employees and other stakeholders into
confidence.
" Strategicpartner: HR's role is not just to adapt
its activities to the firms
business strategy, nor to carry out firefighting operations such as
disputes. Instead, it must deliver strategic services cost handing
ing a competent, effectively by buld
consumer-oriented
roles in strategy formulation, as well asworkforce, It must assume importanl
strategy implementation.
COMPETENCIES QUALIFICATIONS
HR m
& OF HR MANAGER
managers have to
closer tothe hearts of play a variety of roles in order to achieve results and move
employees,
and heart in order to get They must possess excellent qualities of head
possess HR proficiencies,things done with andthrough people. They must also
Business
learning proficiencies in ample proficiencies, and
in orderLeadership
proficiencies
petitive
HR managercorporate world). The measure,
key to succeed in a highly Com-
are discussed
below: competencies and qualities of a competent
 CH. 1 :HRM: CONCEPT, FUNCTIONS, ROLES &COMPETENCIES 1.19

Personal attributes: The HR manager, as in case of any other manager, must

have initiative, resourcefulness, depth of perception,maturity in judgement and
analyticalability. Freedom from bias would enable the personnel manager to take
an objective view of management and workers. He must thus have intellectual
integrity. Moreover, the HR manager should be thorough with labour laws. An
understanding of human behaviour isessential toenable him to be familiar with
human needs, wants, hopes and desires, values and aspirations, without which
motivating people can be an onerous task. The HR manager should possess
other personal attributes such as:
Intelligence: This includes skils to communicate, articulate, moderate,
understand, command over language, mental ability and tact in dealing
with people intelligently, ability to draft agreements and policies, etc.
Learning and coaching skills: The HR manager should possess learning
and teaching skills as he has to learn and teach employees about the or
ganisational growth,need for and mode of development of individuals, etc.
He should stay ahead of rivals, acquire relevant technical knowledge and
practices having a major impact on the profession and wlling to spread
the same among team members.
Discriminating skills:HR managers should have the ability and discretion
merit and
to discriminate between right and wrong, just and unjust, and
demerit.
the skills to lead a team,
" Leadership skills: HR managers should have
actions and deliver results in highly competitive
assume responsibility for
situations.
management's
Executing skills: The HR manager is expected to execute the objectivity.
accuracy and
decisions regarding personnel issues with speed,standards of performance
set
He should be able to streamline the office,
productive work spaces.
while coordinating, controlling and creating
undoubtedly an advantage
Experience and training: Previous experience is environment and in the
appropriate
provided the experience was in an
aspects of human behaviour, labour
same area. Training in psychological personnel management and general
legislations and more specifically in Experience inan enterprise in some
management isan additional benefit.
towards an appreciation of the gen
other executive capacity can also help
practical approach in tackling personnel
eral management problems and a
Concerns issues.
needs to have a highly
Professional attitude: The personnel managerand the ability to listen
patience
professional attitude. He should have
before offering advice.
HR has an important role toplay
Ethical attitudes and legal compliance: of moral principles and values
the code
in developing and implementing
1.20 UNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

that govern the behaviour of employees in an organisation. In

what happened in companies such as Enron, WorldCom, Tyco and the Satligyhtarnrsf
Computers because of unethical conduct of top executives,
ethics and legal compliance has acquired great significance inthe subjectof
HR managers need to conduct meticulous background checks recent time,
employees. Moreover, they need to orient the employees on onethical prospective
resolvedilsuch em-
mas that could confront them from time to time and how to
issues in an ethical manner. In case of any violation, the
not hesitate to punish the person concerned. It is now a company
well-knownshould
that the CEO of Infosys paid afine of 5lakh voluntarily for fact
inform (because of the demise of his mother) the stock failing
exchanges about
to
selling stock within the mandated time. Such ethical behaviour
espeof
cially on part of top management- will alwaysS set a shining example
exemplary character and conduct and guide the moves of all emplovess
working therein.
Qualifications: The job of an HR manager is fairly complex. Meeting the ey
er-increasing needs, aspirations and expectations of employees is not easy. To
complicate his role further, top management expects the personnel manager to:
Convey itscommands, instructions, policies and programmes to employees
in an effective way;
Liaise with line managers smoothly;
Look after the safety and welfare of employees;
Take care of the legal provisions governing the workplace;
Offer expert advice on issues relating to human resource planning, recruit
ment, training, appraisal, compensation, etc.
In union-management relations, the personnel manager is expected to soothe
frayed tempers, discontent and disagreement while creating dialogue and bringing
about peace. While discharging the above duties and responsibilities, he is not
expected to lose sight of his moral and social obligations towards employees
and the generalpublic. The question of prescribing a set of qualifications orfora
personnel manager, in view of the expanding list of tasks, makes the search
a suitable candidate rather challenging. Keeping the diversity and elasticity or
the personnel manager's job in mind, the following educational qualifications
may be necessary to achieve success, in addition to the
the personal attributes
already mentioned.
Degree from a recognized university.
Postgraduate degree/diploma in HRM/HRD /Labour Welfare/Social Work/
Psychology/ Industrial Relations/MBA with specialization in HKM.
Degree in law (desiral
 CH. 1:HRM: CONCEPT, FUNCTIONS, ROLES &COMPETENCIES 1.21

More importantly, the candidate must possess mastery on HR, implying knowledge
and understanding of areas such as staffing, development, appraisal, rewards,
team building and communication.
Business Mastery: HR professionals as indicated by most recent surveys-do
not seem to have adequate knowledge of how their company actually operates.
They have little idea of the company's business model, where the revenues come
from and in which direction the company is going, Toformulate and implement
appropriate strategies HR needs to interact with top management and take a
close look at the operational side of the coin. They have to be familiar with
strategic planning, production, and marketing and finance functions.
Change Mastery: HR professionals, nodoubt, have ideas that could change
the face of an organisation. Most line managers tend to dismiss such ideas as
text bookish and theoretical. To gain acceptance from people, HR needs to back
their ideas with supporting data. In order to implement a retention strategy, for
example, HR managers must be clear about how much this would cost and by
what percentage the company will be able to increase the employee retention
and decrease the attrition; which are the companies that follow this kind of
strategy and how effective it has been in their case etc. To be relevant and useful,
HR professionals need to be more analytical and data- oriented.

SUMMARY
" Human resources are the most important assets of a company. If properly
motivated, ordinary people can deliver extraordinary results.
HRM is all about managing people at work and about converting human
talent into competitive advantage. It seeks toachieve organizational goals
through the effective and efficient use of human resources.
HRM mainly covers three broad aspects: personnel, welfare and industrial
relations aspects.
HRM aims at achieving organizational goals to meet the expectations of
employees; develop the knowledge, skills and abilities of employees, improve
the quality of working life and manage human resources in an ethical and
socially responsible manner.
From an organizational standpoint, good HR practices help to attract and
retain talent, train people for challenging roles, develop their skills and
competencies, increase productivity and profits, and enhance standard of
living.
Important functions of HRM include procurement, development, compen
sation, maintenance and integration.
HR managers wear many hats now:a-days-in sync with the expectations
of workers, financiers, suppliers, customers and other stakeholders. They
1.22 UNIT 1: INTRODCTION TO HUMAN RESOURCE MANAGEMENT

are plaving diverse and multifarious roles such as change agent,

developer, employee champion, mentor, problem solver,
As far as HR managers are concerned, paper qualificationschange ageni integr
much. They need to possess excellent qualities of head and do not ma
the showin sync with requirement. They should know how to heartleardarnd r
from the front, playing a crucial mediating role
wants to be cost competitive at all times) andbetween
workers (who managerment
share of the cake) without rubbing anyone on the wrong side
TEST QUESTIONS
1. Define human resource management (HRM). Outline its
jectives. features and oh.
2. Discuss the importance of HRM in a fairly large organization.
3. Explain in what ways can HR contribute to profits?
4. Outlinethe nature, scope and importance of HRM.
5. Discuss the principal objectives of human resource management.
6. Are people always an organization's most valuable assets? Why or wh
not?

7. Discuss how HR can be a source of competitive advantage to a firm?

8. Critically examine the following statements:
a. "HRM refers to the policies, practices and systems that influence
employees' behaviou, attitudes and performance":
b. "HRM isthe process of acquiring, training, appraising and compen
sating employees":
9. Explain how the job of apersonnel manager is changing over the years.
What factors are compelling personnel people toassume multiple roles in
recent times? Explain through examples.
10. In your opinion, what are the most important roles played by a HR pro
fessional in a modern organisation?
11. To be a strategic business partner HR management must enhance orga
sational performance, expend human capital and be cost effective. Discuss
how HR professionals must balance the increasing demands made on then.
12. Discuss the main functions, duties and responsibilities of a peersonnel
manager in a modern organisation.
13. What are the qualities and
qualifications required of a successtul nunt
resource professional in a modern organisation?
14. "To be a suCcessful HR
one must have excellent quualities of
head and heart Discuss professional,
the statement.