Professional Documents
Culture Documents
Structure
1.1 Introduction
1.5 Importance of HR
1.9 Summary
1.1 INTRODUCTION
―You must treat your employees with respect and dignity because in the most
automated factory in the world, you need the power of human mind. That is
what brings innovation. If you want high quality minds to work for you, then
you must protect the respect and dignity.‖
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Human Resources Approach: However, at some stage in early 60s the ‗pet
milk principle‘, (advocating that happy workers are productive workers or
happy cows provide extra milk) of human relationists have been largely
rejected. Recognising the truth that workers are unique in their personal way-
having individual needs. Every employee is a unique and surprisingly
individual wishes. It was considered that each worker is a completely unique
and highly complex character with exceptional desires and values. What
motivates one worker won't encourage any other and being satisfied or
feeling appropriate may additionally have very little effect on the
productiveness of positive personnel. Slowly however steadily, the trend
closer to treating employees as resources or assets emerged.
The contribution of behavioural science to management practice consists
primarily of producing new insights in place of new strategies. It has
advanced and extended right into a useful way of thinking, about the position 9
Introduction of the supervisor, the nature of businesses and the behaviour of an individual
to Human inside an business enterprise.Let us look into these trends more closely by
Resource
Management examing the transformation of personnel management to HRM from one
stage to another by understanding its differences and stages of development.
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Table 1: Difference between Personnel Management & HRM Concept and
Evolution of
Human
Aspect Personnel HRM Resource
Management Management
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The organizations have to compete for scarce resources, the most important
among them being the human resources, more so in the case of the service
sector. This has called for the radical transformation of personnel and
administrative departments into human resource departments to reflect the
human facet of organizations. A glance at the structure of various Indian
organizations indicates that the majority of the organizations have
rechristened their personnel and administrative department as human
resource development (HRD) departments. However, this transformation into
the HRM mode is at various stages in different organizations. The
progressive players and market leaders, especially in the IT and service
sectors, have fully adopted this approach while other players are in the
process of adoption.
Overall, the HR department has outgrown its mere functional role and has
come to assume the responsibility of building the brand for all company to
attract the best available talent in the market and also to retain the existing
talent. This helps in reducing the recruitment cost and the replacement cost
apart from reducing the attrition rates, which helps the organization to
complete its projects in time. (Jyothi, P. and Venkatesh, D.N., 2006)
Organisational Objectives
The organisational objectives recognise the role of human resource
management in bringing about organisational effectiveness. Human resource
management is not an end in itself; it is only a means to assist the
organisation with its primary objectives. Simply stated the human resource
department exists to serve the rest of the organisation.
Functional Objectives
Functional objectives try to maintain the department‘s contribution at a level
appropriate to the organisation‘s needs. Human resources are to be adjusted
to suit the organisation‘s demands. The department‘s level of service must be
tailored to fit the organisation it serves.
Personal Objectives
Personal objectives assist employees in achieving their personal goals, at
least insofar as these goals enhance the individual‘s contribution to the
organisation. Personal objectives of employees must be met if they are to be
maintained, retained and motivated. Otherwise, employee performance and
satisfaction may decline giving rise to employee turnover.
Finance
Sub-system
Technical
Material HRM Sub-system,
sub-system Sub-system
Marketing
sub-system
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As the central sub-system, HRM interacts closely and continuously with all Concept and
other sub-systems of an organisation. The quality of people in all sub-systems Evolution of
Human
depends largely upon the policies, programmes and practices of the HRM Resource
sub-system. Management
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Introduction 3) National Significance: Human resources and their management plays a
to Human vital role in the development of a nation. The effective exploitation and
Resource
Management utilisation of a nation‘s natural, physical and financial resources require
an efficient and committed manpower. There are wide differences in
development between countries with similar resources due to differences
in the quality of their people. Countries are underdeveloped because their
people are backward. The level of development in a country depends
primarily on the skills, attitudes and values of its human resources.
Effective management of human resources helps to speed up the process
of economic growth which in turn leads to higher standards of living and
fuller employment.
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productivity, etc.
2) The Welfare Aspect: This aspect is concerned with working conditions
and amenities such as canteens, creches, rest rooms, lunch rooms,
housing, transport, education, medical help, health and safety, washing
facilities, recreation and cultural facilities, etc.
3) The Industrial Relations Aspect: This is concerned with the company‘s
relations with the employees. It includes union-management relations,
joint consultation, negotiating, collective bargaining, grievance handling,
disciplinary actions, settlement of industrial disputes, etc.
All the above aspects are concerned with human element in industry as
distinct from the mechanical element.
(a) the recognition of the union, (b) the respective role performance of
management and union, (c) the type of procedures one can adopt to regularize
relationships with unions, (d) the basic techniques of negotiating with unions,
(e) the mechanism of involvement through participation, both traditional
forms of joint consultation as well as the Japanese import of quality circles.
The following actions are required to improve the use of human resources:
(a) conduct a productivity drive; (b) improve manpower budgeting and
control techniques;
The HRD auditor has to study the organisation design, its objective,
performance of its human resources, as well as the proper maintenance of
HRD climate and practices. The job of the HR auditor is not an easy one. To
gain success, he has to be very selective about the area and procedure he
wishes to follow. Auditing in the field of human resources is a difficult job,
more so because unlike other audits, the auditor has to deal with individuals
vis-a-vis organisational priorities. Therefore, the HR auditor is required to be
very systematic in his job and define the task clearly as to which arena he has
to cover.
1.9 SUMMARY
The human resources of an organisation represent one of its largest
investment. The objectives of HRM include getting the organisation right,
providing effective motivation and leadership, obtaining and developing the
right people, paying and treating them fairly, and getting them involved in
working productively. The attainment of these objectives necessitates the
performance of several functions. The main HRM systems are: (1) appraisal
system; (2) career system; (3) training system; (4) work system; (5) cultural
system; and (6) self-renewal system. All systems and sub-systems of HRM
must be incorporated in the organisation while setting the goals and
objectives. This will also integrate the purposes and processes and make
HRM more meaningful. Human resources functions are many and varied and
include such things as human resource planning, recruiting, selecting,
training, counselling employees, compensation management, and employer-
employee relations. In small organisations, most human resource functions
are performed by owners or operating managers. Large organisations usually
have a human resource or personnel department that is responsible for co-
ordinating and directing the human resource functions. Successful human
resource management is essential to organisational growth and success. In the
light of new challenges, there are indications that human resource people will
play an increasingly important role in an organisation‘s long-range planning
and policy-making activities.
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