Human Resource Management, shortly known as HRM refers to a systematic
branch of management that is concerned with managing people at work so that they can give best results to the organisation. It is the application of management principles to the people working in the organisation. It aims at improving the performance and productivity of the organisation by finding out the effectiveness of its human capital. Therefore, HRM is an art of placing the right person at the right job, to ensure the best possible use of organisation’s manpower. The process involves an array of activities that begins with the recruitment, selection, orientation, & induction, training & development, performance appraisal, incentives & compensation, motivation, maintaining workplace safety, health & welfare policies, managing relationship with the organisation, managing change. Definition of HRD The term Human Resource Development or HRD refers to the development of people working in an organisation. It is a part of HRM; that aims at improving skills, knowledge, competencies, attitude and behaviour of employees of the organisation. The purpose of the HRD is to empower and strengthen the abilities of the employees so that their performance will get better than before. Human Resource Development involves providing such opportunities to the employees that will prove beneficial in their all around development. Such opportunities include training & development, career development, performance management, talent management, coaching & mentoring, key employee identification, succession planning and so on. Nowadays, there are many organisations work for the human resource development of employees from the day they join the enterprise, and the process continues, until the end of their employment term. Comparison Chart BASIS FOR HRM HRD COMPARISON Meaning Human Resource Management Human Resource Development refers to the application of means a continuous principles of management to development function that manage the people working in intends to improve the the organization. performance of people working in the organization. What is it? Management function. Subset of Human Resource Management.
Function Reactive Proactive
Objective To improve the performance of To develop the skills,
the employees. knowledge and competency of employees.
Process Routine On-going
Dependency Independent It is a subsystem.
Concerned with People only Development of the entire
organization. COMPETENCIES OF HR MANAGER
Human Resource Knowledge
A commitment to on-going HR learning Communication skills in HR Critical thinking skills An Ethical Approach Human Resource Organization Skills Organization Negotiation Problem solving and conflicts management Communication Multi-tasking In future, human resource managers will be required to play significant roles in the following areas:
a) Total quality management
b) Business process reengineering c) Downsizing and voluntary retirement schemes. d) Empowerment of workers e) Humanization of work and quality of work life f) Flexible work schedules An organization operating in the fast and modern business environment is not possible only by passing some responsibilities to the employees you have to make them enable quickly decision maker at a lower level at lower people generally have a closure and deeper understanding of many of the processes and produces that get the job done and get the strategic vision of the organization to be achieved. • Faster problem solving. • Increased morale and productivity. • Greater involment leads to greater commitment. • Lower levels of management stress. • Lack of experience, increases risk. • Potential for decreased efficiency • In a business enterprise, downsizing is reducing the number of employees on the operating payroll. • Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. • Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people. • Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people. • Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect. • Voluntary retirement scheme (VRS) is an early retirement option given by the employer to its eligible employee by compensating them for taking a early retirement. • Most of the public sector banks, PSU and private companies opted for voluntary retirement scheme (VRS) in past to restructure there organization. • Voluntary retirement scheme (VRS) is also accepted by trade union as it’s legally allowed by companies to off- load there surplus manpower.
Income tax act provides an exemption up to Rs. 5, 00, 000 for
Voluntary retirement scheme i.e. amount received up to Rs. 5, 00,000 will be exempted and the balance amount will be taxable in the hands of employee under the head salary. • Human Resource system is basically a data based system developed HR in decision making and reporting. • The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. • It is useful for all processes that you want to track and from which you hope to gather useful and purposeful data. HRIS is a system collecting, storing, maintaing data about HR. • Normally packaged as a database, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. NEED FOR HRIS:- • Procurement function-inventory of present and future needs of HR. • Development function:- (i) Cost benefit calculation training and development. (ii) Career and suction plans. • Compensation function-linkage between wages and productivity. • Maintenance function- absenteeism, griverence, accident etc. • Integration function-communication and leadership climate. Determination of needs for HRIS
Constitution of a project team
Development of a project plan
Designing and developing the system
specification
Identification and training of users
group
Implementation and maintence
Evaluation of the effectiveness of
HRIS • Reduction in the amount and cost of stored HR data. • Availability timely accurate information • Development of performance standards for HR. • More meaningful career planning and consulling at all the levels. • Higher capabilities to quickly and effectively staff selection teams for problem solving.