CHAPTER I

INTRODUCTION 1

A. POTENTIAL AND POSSIBILITIES OF HUMAN BEING

Human being is a unique animal both because of its physical embodiment of the
creature - the body and also because of the person who dwells in the body. It is so
hard to understand the body of human being. In a few training sessions, to the
question whether anybody had a good knowledge of any part of their body (may
be the small finger of the hand) all the participants drew blank. A majority of them
opined that such a thought had never occurred in their busy schedule and had
never given individual attention nor subjected to any scientific study of any part of
the body. However, special care was given when a part of the body fell ill.

Some part of human being’s body is complex and its potential and possibilities are
beyond comparison. Take the case of human brain. It is an electro-chemical
machine. Such a machine is composed of neurons ranging from 20 to 200 billions
in numbers. A nucleus of a neuron has more power than that contained in the
nucleus of an atom.

We say it is an era of computers. The basic unit of computer is binary numbers. It

is with the combinations of two numbers all the programmes are being done.
Imagine the possibilities and potentials of the combinations of 200 billion
neurons!!

Animals are programmed creatures. They act out of instinct; at any given point of
time one of the program is meticulously being implemented. Unlike animals
human beings have freewheeling intelligence. Freewheeling intelligence faculty
with 200 billion neurons!! That is what a human being is.

Education is all about small attempts to program involving a few of the neurons.
There is no end to the number of programmes the human intelligence can
accommodate. Combinations and networking possibilities are beyond imagination
that the learning process in human being is a continuous one.

The person of human being is much more complex than his body and its various
faculties. The “humanness” is beyond his physical stature. The ego nature, the
emotional dispositions, the spiritual dimensions, etc. contribute towards what a
human being is. The person of the human being has to manage the creature called
the human being and in turn the creature has to house the person.

HRD is all about a facilitation process of realizing and unleashing the inherent
power of the human creature to its potential and to move on to the next phase of
the human development - the species - specific competencies to accomplish the
purposes for which human being is created.

1
Taken from MG Jomon (2003). HRD in Real Time
B. HUMAN RESOURCES MANAGEMENT FUNCTION

In this section following functions and disciplines of HRM are discussed:

• Industrial Relations (IR)

• Personnel Management (PM)
• Human Resources Development (HRD)
• Organizational Development (OD)
• Organizational Behaviour (OB)
• Organizational Theory (OT)

1. IR, Personnel and HRD:

Functions of Human Resources Management in organizations include: Industrial

Relations (IR), Personnel Management (PM) and Human Resources Development
(HRD). Confusion exist in many organizations and among HR professionals
regarding the real difference between the functions mentioned. In a number of
organizations whatever be the name of the function, activities carried out are the
same though they may be known in one of the titles. Hence it does not matter how
the function is called.

With the liberalisation, business imperatives for HR have become all the more
important. Hence, it is crucial that HR functions contribute towards the business
in whichever way possible, with clarify and sense of purpose. There is a need to
perform all the HR activities with a business sense. The following discussions
bring forth various facets of HRM function and the ways and means through
which they can make business sense and contribute towards organisational goals.

¾ Is IR function at cross roads since good IR situation is one of the “givens” for
business rather than something bargained for?
¾ Is the relevance of the union fast disappearing since they do not positively
contribute towards business purposes?
¾ Can an ideal HRD do away with IR function?
¾ Is HRD an ornamental and unsustainable function that does not suit to our
culture?
¾ What are the various functions of HRD?
¾ How are IR, Personnel, HRD and OD differentiated? Are they different at all?
¾ What are the distinct contributions of each towards business outcomes?
¾ Should they be integrated? If so how?

It can be stated that Industrial Relations (IR), Personnel Management (PM), Human
Resources Development (HRD) are different and at the same time they compliment to
each other and thus form part of Human Resources Management function. They can
be summarized as shown below:
IR PEACE / HARMONY
PERSONNEL STABILITY / MAINTENANCE
HRD DEVELOPMENT

The IR function will ensure that an organization has sound relationships with all its
constituents (Management, Workers and Unions), other industries, Government and
society at large. The effectiveness of an IR function is measured from the harmonious
and peaceful atmosphere that exist in an organization thereby zero production loss is
reported. Hence the key function of IR is to ensure peace and harmony in the
organization.

Personnel function deals with all the personnel administration activities of an

organization starting from recruitment to separation. All the activities relating to the
administration of an employee like promotion, transfers, wage and salary
administration, etc are the typical personnel activities. A good personnel function
ensures the stability of an organization whereby, everyone abide by the formulated
personnel norms and procedures complying with the personnel policy of the
organization. In short, it is a personnel maintenance function which ensures that no
man-day is lost due to lack of manpower and the lowest manpower cost is maintained
all through.

HRD is an individual and group oriented development function. It makes tireless

efforts to build competencies and commitment in people. HRD ensures that a learning
and development culture exist in the organization through various HRD systems and
processes.

HR carries out a number of activities through its functional areas to achieve the
organizational objectives. Various processes involved in this are briefly presented
below:
 FUNCTIONAL AREAS
(PROCESSES)

IR PERSONNEL HRD
NEGOTIATION & BARGANING MANPOWER PLANNING INDUCTION

SETTLEMENT RECRUITMENT, SELECTION AND PERFORMANCE

PLACEMENT MANAGEMENT
LIAISONING AND PUBLIC
RELATIONS PROMOTION POTENTIAL
DEVELOPMENT
COMPLIANCE WITH LEGISLATIONS TRANSFERS
CAREER DEVELOPMENT
DRAFT RULES AND ORDERS SEPARATION
ROLE ANALYSIS
DESIGN & IMPLEMENT IR WAGE AND SALARY
PROGRAMMES ADMINISTRATION ROLE EFFICACY AND
EFFECTIVENESS
ESTABLISH POWER & STATUS TIME MANAGEMENT
EQUATIONS SUCCESSION
WELFARE ADMINISTRATION DEVELOPMENT
GREIVANCE HANDLING
MIS / RECORDS FEEDBACK
ABSENTEEISM
PERSONNEL AUDIT TRAINING

RETENTION MENTORING

TASKFORCE

SMALL GROUP ACTIVITIES

ACTION RESEARCH

HUMAN RESOURCES
INFORMATION SYSTEM

REWARD SYSTEM
The following table details the basis of the functions, its focus areas, processes
involved, business contributions, and performance & non-performance indicators of
each of the respective functions.

AREA IR PERSONNEL HRD

Legislation Personnel policy Vision-mission document

BASIS
Standing orders Personnel manual HRD strategies

Eligibility & Development of

FOCUS Rights & duties
compliance individuals

Administration of
Negotiations and Implementation of HRD
PROCESS working conditions and
Bargaining systems
conditions of work

No competitiveness lost
BUSINESS No manday lost due No manday lost due to
due to lack of people
CONTRIBUTION to labour unrest lack of manpower
competencies

PERFORMANCE Settlement and

Stability Competent individuals
INDICATOR harmony

NON-
Low performance by
PERFORMANCE Misconduct / conflict Non-compliance
individuals and team/(s)
INDICATOR

In an organizational set up, each of the function has its own functional basis as
indicated above. The IR programme in an organization should be such that it should
be able to achieve the objectives through the functions indicated. The success of IR
programmes solely depends upon its credibility shown through an open and
transparent approach and its genuine desire in seeking common grounds with the
constituents like the management, workers, trade unions, society, Government, etc.
Collaborative and participative approach only can take IR programme in an
organization to successful exposures. Common values and principles are to be laid
out before any bargaining or negotiations. Very often, bargaining and negotiations
fail since there is no basis, values and principles. The background and the guiding /
leading criteria for all negotiations and bargaining should be the business goals /
objectives.
For example the following may not be negotiated or bargained:

¾ Bonus: As there is a Legislation govering Bonus

¾ Output of a machine: As it is specified along with the machine
designs/specifications
¾ Promotion: Most competent person needs to be promoted

Personnel function in an organization should emerge from the personnel policy and
the manual should clearly state the procedure for compliance. Personnel
administration should be futuristic, fair and should be transparent. Personnel
administration should be service driven and not rule and procedure bound.

HRD in an organization is practiced through various HRD system and process, which
will be explained in chapter II.

We have so far discussed on the various functions of HRM and its contributions to
business. While all the functions are important and vital, an organization should
decide where its focus should be. Unless and until good IR exists, we cannot think of
HRD function. In the same way, if personnel function is not appropriate, an
organization cannot move on to the HRD function. Likewise HRD functionaries need
to have a good understanding of IR and personnel. A good mixture of all the three,
integrated may bring in result in the changed business scenario.

In short IR, Personnel and HRD functions need to be carefully designed and
implemented to achieve harmony, stability and development, which in turn will
facilitate to achieve organizational objectives. Persons who implement IR, Personnel
and HRD need to have good OB, OT and OD understanding and knowledge as well.

C. OB, OT AND OD:

In the previous section of IR, Personnel and HRD, the unit of analysis is centered
around the individual to a large extent. But in this section, the unit of analysis is
organization. IR, Personnel and HRD are typical functions of HRM, which has basic
rooting in day to day operations. But Organizational Behaviour (OB), Organizational
Theory (OT) and Organizational Development (OD) are disciplines that have
application-impact on organizational performance. They need not necessarily be one
of the functional areas of organizations. They may be called in for operations at
relevant occasions or may be even applied on a continuous basis. However, these
disciplines are scientific, supported with theoretical inputs and are essential for
organizational survival and growth. IR, Personnel and HRD too draw their
theoretical basis from these disciplines.

According to Stephen P. Robbins (1991), OB is a field of study that investigates the

impact of individuals, groups, and structure have on behaviour within organizations,
for the purposes of applying such knowledge toward improving organizational
effectiveness.
Organizational theory is a discipline that focuses on design of organizations.
According to Clark (1972), design of organization is concerned with making decisions
about the forms of co-ordination, control, and motivation that best fit the enterprise. In
making these decisions, it is necessary to consider external factors like market, and
internal factors like the needs and aspirations of the members of the enterprise.
Organisational design is intimately concerned with the way in which decision-making
is centralized, shared or delegated and with the way the enterprise is governed. In
short, OT as a discipline endeavours to come out with an organizational design that
would provide best business results.

According to French and Bell (1995) OD is a long- term effort, led and supported by
top management, to improve organization’s visioning, empowering, learning and
problem-solving processes through an ongoing, collaborative management of
organization culture - with special emphasis on the culture of intact work teams and
other team configurations - utilizing the consultant – facilitator role and the theory
and technology of applied behavioural science, including action research.

The following table briefs the basis of the three disciplines, focus areas, processes
involved and the indicators towards business contributions. The table also point out
the performance indicators.

AREA OB OT OD

OB Discipline OT Discipline OD discipline

BASIS Organizational attributes / Organizational design Strategic intent
Qualities strategies

Competitive organizational Development of

Behavioural patters of
FOCUS design (Structure, systems organizational structure,
individuals and teams
and process) systems and processes

Study and implement best Designing and

Reinforcing the desired
PROCESS organizational designs as implementing OD
behaviours at work
per business requirement interventions

Unique personality of the Organizational readiness

BUSINESS organization Business facilitating to change and transform
CONTRIBUTION organizational design
Image of the organization

Lack of redundancy or
Performance driven
overlapping in the structure,
PERFORMANCE culture indicated in the
roles, systems and Learning organization
INDICATOR commonly shared values,
processes including
beliefs and work goals
decision making processes

To conclude it can be stated that all the three disciplines have organisational
applications. OB contributes towards the organizational performance by ensuring the
right behavioural patterns of individual and teams in organizations; OT by providing
effective organizational designs and OD by initiating various change and
transformational process in the organization thus ensuring competitiveness and
relevance of the enterprise from time to time.