What is Human Resource Management?

Human resource (HR) management refers to the practices and policies one needs to carry out to deal with the personnel aspects of the management job

Human resource management (HRM) is the

effective management of people at work The goal: make workers more satisfied and productive When an organization is concerned about people, its total philosophy, culture, and orientation reflect it Every manager must be concerned with people, whether or not there is a human resources department

 Human

Resource Management (HRM) is a management function that helps managers recruits, select, train and develop members for an organization. Obviously, HRM is concerned with the peoples dimension in organization. Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers.

Human

 HRM

is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

 According

to Flippo, Human Resource/ personal Management is the planning, organizing, directing and controlling of the procurement, development, compensation, intergration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished,

According

to E.F.L. Breach, Personnel Management is the part of management process which is primarily concerned with the human constituents of an organization.:

 In

the words of Richard Calhoon, Personnel management involves the task of handing the human problems of an organization and is devoted to acquiring, developing, utilizing and maintaining an efficient work-force. to R.G. Gokhle, Personnel Management is the specialized intelligent handing of the human factor by a separate department which could devote its full time for research along the line of improvement is industrial relations.

According

Scope of HRM

To develop a thorough knowledge of corporate culture, plans and policies. To act as an internal change agent and consultant. To initiate change and act as an expert and facilitator. To actively involve himself in companys strategy formulation. To keep communication lines open between the HRD function and individuals and groups both within and outside the organisation.

To identify and evolve HRD strategies in

consonance with overall business strategy. To facilitate the development of various organizational teams and their working relationship with other teams and individuals.

To try and relate people and work so that the organization objectives are achieved effectively and efficiently.
To diagnose problems and to determine appropriate solution particularly in the human resources areas.

To provide co-ordination and support services for the delivery of HRD programmes and services. To evaluate the impact of an HRD intervention or to conduct research so as to identify, develop or test how HRD in general has improved individual or organisational performance.

 Problem

solving skills. Business knowledge/organisation sensitivity. Knowledge of compensation techniques to reinforce business plans. Strategic and conceptual skills. Knowledge of succession. Career planning systems. Established relationships and acknowledged leadership skills.

 Ability

to analyze data and plan from it. Computer literacy Competence in HR functional area. Awareness of the financial impacts in the HR function as well as to the organisation.

Image and Quality of HR/Personnel Manager

Fairness and firmness Tact and resourcefulness Sympathy and consideration Knowledge of labor and other terms Broad social outlook Others and Academic qualifications

HRM FACILITATES & FOCUSSES ON GROWTH & DEVELOPMENT OF INDIVIDUALS BY DEVELOPING CAPABILITIES IN INDIVIDUALS FO R GROWTH & DEVELOPMENT OF ORGANISATION S BY

DEVELOPING CAPABILITIES IN ORGANISATIONS

FO R

IMPROVED PERFORMANCE & JOB SATISFACTION

OPTIMUM & EFFECTIVE UTILISATION OF HUMAN & ORGN RESOURCEAS TO IMPROVE ORGANISATIONAL STRENGTH & POTENTIAL THROUGH FOCUSSED COLLABORATION FOR MUTUAL PROSPERITY

Functions of HRM
P/HRM
Operative Functions
Procurement Job Analysis HR planning
Organizing

Managerial functions:

Planning

Development: Training Executive development

Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services

Maintenance: Health Safety Welfare Social security

Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment

Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS

Recruitment Selection Placement

Career planning
Succession planning Human resources development strategies

Directing

Induction Internal mobility

Controlling

Trade unions
Employers associations Industrial relations

Job stress
Mentoring International HRM

Sustainability Challenge -- Attraction and Retention -- Attaining Financial Objectives Global Challenge Issues: -- Different Geographies, culture, laws and business practices -- Gauging the knowledge and skills of international workers -- Re-locating managers to direct Technology challenge -- Human resources and their capabilities -- New Technology and its opportunities -- Efficient work structure

 Managing

Human Resource Acquiring and Preparing Human Resource Assessment and Development Compensating Human Resources Special Issues

 The

Early Years(i.e., before 1900) The Growth Years(i.e period between 1900 and 1946) The Maturation Years(i.e period between 1946 and 1970) The Transition Years Years(i.e period between 1970 to till today)

 Upto

1930s, various malpractices in the recruitment of workers and payment of wages were prevalent in India which caused a colossal loss in production due to industrial disputes. 1931, the Royal Commission of Labour was established in India under the Chairmanship of J.H.Whitely.
India, HRM emerged mainly because of governmental interventions and compulsions.

In

In

 After

Independence, in 1948 the Factories Act have been legislated.

1980, the two professional bodies in India, the Indian Institute of Personnel Mgt(IIPM) and the National Institute of Labour Mgt(NILM) merged to form the National Institute of Personnel Mgt(NIPM). 1980, the focus is shifted to HRM challenges and Human Resource Development(HRD). 1990s, the emphasis have been shifted to human values and productivity through people.

In

In

From

Importance of HRM

retain talent
train people for challenging roles develop skills and competencies Good HR Practices help promote team spirit

develop loyalty and commitment

increase productivity and profits improve job satisfaction enhance standard of living

Objectives of HRM

 To

provide more employment opportunities. To provide maximum productivity. To provide maximum material and mental satisfaction to workforce. To control wastage of effort. To help to maintain ethical policies and socially responsible behaviour. To encourage healthy human relations and social welfare. To manage change to the mutual advantages of individuals,groups, the enterprise and the public.

 To To

help the organisation to reach its goals.

efficiently employ the skills and abilities of the workforce. provide well trained and well motivated employees to the organization. develop and maintain a quality of work life. communicate HRM policies to all employees.

To

To To

 Functional

objectives try to maintain the departments contribution at a level appropriate to the organization's needs. resources are to be adjusted to suit the organization's demands. departments level of service must be tailored to fit the organization it serves.

Human

The

 To

provide adequate remuneration to the employees. provide job security.

To To

provide facilities for proper training and development.

increase the employees job satisfaction and self Actualization. provide congenial working environment.

To

To

HRM Objectives Societal Objectives

Supporting Functions Legal Compliance Benefits Union Management relations Human resource planning Employee relations Selection Training & development Appraisal Placement Assessment Appraisal Placement Assessment Training & development Appraisal Placement Assessment Compensation

Organizational Objectives

Functional Objectives

Personal Objectives

KEY ROLE

CRITERIA FOR SUCCESS

BUSINESS PERSON

Shows concerns for organization growth. Knows the market and what the business is. Has long term vision of where business is headed. Can create change in strategy. Can think conceptually and articulate thoughts. Has sense of purpose.

SHAPER OF CHANGE IN ACCORDANCE WITH BUSINESS

KEY ROLE

CRITERIA FOR SUCCESS

CONSULTANT TO ORGANISATION

Has ability to build commitment into action. Responds to organization needs. Recognizes importance of team work.

STRATEGY/BUSINESS PLANNER

o o o

Knows plan of top executives. Develops and sells own plans and ideas. Has 30 to 50 year focus.

KEY ROLE

CRITERIA FOR SUCCESS

TALENT MANAGER

Is capable of educating management. Knows high potential people and anticipating their concerns.

HR ASSET MANAGER / COST CONTROLLER

Initiates action. Can educate and sell management Can creatively measure effectiveness. Can use automation effectively

 THE

CONSCIENCE ROLE THE MEDIATOR THE SPOKESMAN THE PROBLEM SOLVER THE CHANGE AGENT

 Human

resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management, employee relations and resource planning.

Each

company has a different set of circumstances, and so develops an individual set of human resource policies

 HR

policies provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation.

The

policies must be framed in a manner that the companies vision & the human resource helping the company to achieve it or work towards it are at all levels benefited and at the same time not deviated from their main objective.

1. 2.

3.
4. 5.

6.
7. 8.

9.

Related to Objectives Easy to Understand Precise Stable as well as Flexible Based on Facts Appropriate Number Just, Fair and Equitable Reasonable Review

E-Business Neural Networks E-HRM E-Job design E-Job analysis E-HR planning E-Recruitment E-Selection

E-HRD & career planning E-Performance management E-Training & development E-Compensation & benefits E-Grievance redressal E-HR records E-HR information E-HR audit

 Computer

technology enables organisations to combine human resource information into a single database. wide variety of information needs of a business are recognized into Management Information System.

HRIS is an integrated system designed to provide information used in HR decision making. evolve from previously separate computer systems such as
Payroll processing

HRIS

Employee skills inventories

HR auditing files

 HRIS used for Tracking employee training Development activities Need fullfillment Performance appraisal Employee benefits Labour relations HRIS

allows top management and HR managers to be more than just administrators of HR data. HRIS provides management with the opportunity to use HR information
To support and guide decision making Long range planning

The

An HRIS may be defined as the system used to acquire, store, manipulate, analyze, retrieve and distribute pertinent information regarding an organization's human resources.

 To

acquire, store, manipulate, analyze, retrieve and distribute pertinent information regarding an organisations human resources.

To

facilitates HR decisions making in the following areas:

 Man power planning

Recruitment and selection Employment including
Promotions Transfers Disciplinary procedures Termination Redundancy

Education and training Salary and wages administration Labour relations

PAYROLL

BENEFI TS

PERFORMAN CE APPRAISAL

TRAINING & DEVELOPME NT

RECRUITIN G PLACEMEN T

LABOUR RELATION S

EMPLOYEE DATA JOB DATA

RELATIONAL DATABASE

PAY ROLL RECRUITING EFFECTIVENESS BENEFITS COST APPRAISALS DUE TO THIS MONTH

HOW MANY CURRENT EMPLOYEES HAVE COMPLETED OUR TRAINING PROGRAMS ON SAFETY AND HEALTH? WHAT ARE OUR PROJECTIONS OF EMPLOYEE NEEDS IN OUT MANUFACTURING DIVISION FOR THE NEXT YEAR? HOW MANY EMPLOYEES ARE

1.

2.
3.

HARDWARE SOFTWARE DATABASE

 Personal

data Recruitment/selection data Work experience data Compensation data Performance appraisal Attitude/morale data Benefit plan data Health/safety/accident data

NEED ANALYSIS

PHASE III

PHASE I

IMPLEMENTATI ON AND MAINTENANCE

PHASE II

DESIGN AND DEVELOPMEN T

 Evaluate

HR department and business

needs Form project team Determine automation needs Develop system specifications Analyze current and future reporting needs Identify and evaluate vendor packages Select vendor Develop proposal for management/ decision makers Establish formal guidelines and procedures to resolve inefficiencies

 Develop

detailed project plan Develop user groups Purchase hardware Develop independent, focused computer applications Implement independent applications as ready Modify in house forms Modify initial system Establish procedures and guidelines to support system Test user acceptance Convert data Train HR staff and project team

 Implement HR core Train other HR users Make system available

to HR functional

specialists Establish mainframe-micro link Develop user documentation Conduct field analysis Develop procedures for distributed processing Prepare technical documentation Develop other modules Test system and user acceptance Implement additional modules Maintain Distribute to the field Evaluate success

human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company. It gives feedback about :
The function of operating managers.
The human resource specialists. How well managers are meeting their human

resource duties.

In short, the audit is an overall quality control check on human resource activities in a division or company and how those activities support the organizations strategy

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 Identifies

the contribution of departments to the organization

the

personnel

Improves

professional image of the personnel department greater responsibility and professionalism among members of the personnel department the personnel departments duties and responsibilities critical personnel problems
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Encourages

Clarifies

Finds

 Audit

of Corporate Strategy

Corporate Strategy concerns how the organization is going to gain competitive advantage.

Audit

of the Human Resource Function

Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation.

Audit

of Managerial Compliance

Reviews how well managers comply with human resource policies and procedures.

Audit

of Employee Satisfaction
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To learn how well employee needs are met.

 Human

resource professionals do not set corporate strategy, but they strongly determine its success. assessing the firms internal strengths and weaknesses and its external opportunities and threats, senior management devises ways of gaining an advantage, such as :

By

stresses

superior marketing channels, low-cost production, etc. Understanding the strategy has strong implications for human resource planning, staffing, compensation, employee relations, and other human resource activities

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1. Human Resource Information System

Human Resource Plans : Supply and demand estimates; skill inventories; replacement charts and summaries - Job Analysis Information : Job standards, Job descriptions, Job specifications - Compensation Management : Wage, salary, and incentive levels; Fringe benefit package; Employer-provided services
-

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 Recruiting

: sources of recruits, availability of recruits, employment applications Selection : selection ratios, selection procedures, equal opportunity. Training and development : orientation program, training objectives and procedures, learning rates Career development : internal placement, career planning program, human resource development efforts

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 Performance

appraisals : standards and measures of performance, performance appraisal techniques, evaluation interview. Relations : Legal compliance, management rights, dispute resolution problems. Resource Controls : employee communications, discipline procedures, change and development procedures,
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Labor-Management

Human

 Identify

who is responsible for each activity. Determine the objectives sought by each activity. Review the policies and procedures used to achieve these activities. Prepare a report commending proper objectives, policies, and procedures. Develop an action plan to correct errors in each activity. Follow up the action plan to see if it solved the problems found through the audit.

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 Compliance

with laws is especially important. When safety, compensation, or labor laws are violated, the government holds the company responsible. If managers ignore policies or violate employee relations laws, the audit should uncover these errors so that corrective action can be started.

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satisfaction refers to an employees general attitude toward his or her job. When employee needs are unmet, turnover, absenteeism, and union activity are more likely. To learn how well employee needs are met, the audit team gathers data from workers. The team collects information about wages, benefits, supervisory practices, career planning assistance, and other dimensions of job
Employee

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1. Interviews with employees and managers are one source of information about human resource activity. Employees and managers comments help the audit team find that need improvement. Another useful source of information is the exit interview. Exit interview are conducted with departing employees to learn their views of the organization.
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Because interviews are time-consuming, costly, and often to only few people, many human resource departments use questionnaires. Through questionnaire surveys, a more comprehensive picture of employee treatment can be developed. Questionnaire may also lead to more candid answers than face-to-face interviews. employee attitude about supervisors Employee attitude about their jobs Perceived effectiveness of human resource department
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Not all the issues of interest to human resource audit are revealed through interviews or questionnaires. Sometimes insight can be obtained by an analysis of historical records, such as: Safety and health records Grievances records Compensation studies Scrap rates Turnover and absenteeism records Selection records Affirmative action plan records Training program records

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Outside comparisons give the audit team a perspective against which their firms activities can be judged. Through Department of Labor, industry association, professional association numerous statistics and report are compiled. These organizations regularly publishes information about future employment opportunities, employee turnover rates, work force projection, area wage and salary survey, work force demography, accident rates, and other data that can serve as benchmark for comparing internal information.
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Findings of research are used to developed a picture of the organizations resource activities. For this information to be useful, it is compiled into audit report. The audit report is a comprehensive description of human resource activities that includes both commendations for effective practices and recommendations for improving practices that are less effective. Audit report often contain several sections. One part is for line managers, another is for manager of specific human resource function, and the final part is for the human resource manager.
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 How

line managers handle their duties such as:

applicants Training employees Evaluating performance Motivating workers Satisfying employee needs
Interviewing

The

report also identifies people problems. Violations of policies and employee relations law are highlighted
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1. 2.

3. 4.

5.

The specialists who handle employment training, compensation, and other activities also need feedback. Such feedbacks are : Unqualified workers that need for training Qualified workers that need for development What others company are doing Attitude operating managers toward personnel policies Workers pay dissatisfaction
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 It

is contains all the information given to both operating managers and staff specialists. In addition, HR Mangers gets feedback about : Attitude operating managers and employees about services given by HRD A review of HRD plans Human resource problems and their implication Recommendations for needed changes and priorities for their implementation

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