HUMAN RESOURCE

MANAGEMENT
 REQUIREMENT AND
FUNCTIONS OF HUMAN
RESOURCES MANAGEMENT

LECTURE # 2
BY
PROF. DR. SAJJAD MUBIN
 HUMAN RESOURCE

Human resources is the set of individuals who make

up the workforce of an organization, business sector or
an economy.
Other terms sometimes used include "manpower",
"talent", "labor" or simply "people“.
Financial
Resources

Project/
Physical Organizational
Resources Goals

Human
Resources
PERSONNEL MANAGEMENT, INDUSTRIAL MANAGEMENT, EMPLOYEE
RELATIONS & HUMAN RESOURCE MAANAGEMENT

Personal Management, Industrial Relations and Employee

Relations are synonymous terms.

Industrial Relations are usually used in manufacturing industry,

especially where employees are heavily unionized. The term Personnel
Management usually used in non-manufacturing organizations. The
term Employee Relations is often applied to both union and non-union
situations and to manufacturing and non-manufacturing . In recent years
corporations are using term Human Resource to designate their
Personnel Departments
Human Capital refers to philosophy that is being used in most advanced
era, depicts that human recourse is as important as financial resource.
Evolution of HRM
assets
Procure,
develop and
motivate

Procure and develop

 COMPOSITION

Director HRM

Manager - Personnel Manager Admin Manager - HRD Manager – IR

Payroll
Appraisal
HRP Work Environ.

Recruitment & Canteen

Training And
Selection
Medical Development
Grievance
handling
Disciplinary Action Welfare

Bonus & Transport

Compensation Legal
 STAFF ROLE OF THE PERSONNEL DEPARTMENT

The personnel (or industrial relations) department operates in an auxiliary,

advisory, or facilitative relationship to other departments in the
organization. Any staff unit, whether it be personnel or otherwise, exists to
help the line or operating departments do their work more effectively. It has
been created in the first place to take advantage of specialized talent and
knowledge. The personnel department generally performs the following roles:

1. Policy initiation and formulation.

2. Advice.
3. Service.
4. Control.
 STAFF ROLE OF THE PERSONNEL DEPARTMENT

Policy Initiation and Formulation: The executive in charge of the personnel

department (who may be called the personnel director, the industrial relations
director, or the vice-president in charge of personnel) is the one individual most
actively involved in policy creation. It is his or her responsibility to propose and draft
new policies or policy revisions to cover recurring problems or to prevent anticipated
problems. When proposing a new or revised policy the personnel director must
analyze problems that have occurred in the past, survey other companies to
determine how they handle similar situations, discuss the matter with colleagues and
subordinates, and give due consideration to the prevailing philosophy in the
organization. On small policy matters the personnel director alone ordinarily may
determine and institute policies.
 STAFF ROLE OF THE PERSONNEL DEPARTMENT

Advice. A major portion of the activities of personnel work is in the nature of

counsel and advice to line managers e.g. a shop foreman may be confronted
with a grievance over distribution of overtime. Another foreman may have a
problem employee who she feels should be disciplined or even suspended.
Personnel Department advices how these problems should be tackled.
The personnel directors and their staffs are expected to be fully familiar with
personnel policy, the labor agreement, past practice, and the needs and welfare
of both the company and the employees in order to develop a sound solution.
Successful personnel specialists must be people-centered. They must be
sensitive to the feelings, wants, and motives of other people. At the same time
they must continually be cognizant of their obligation to preserve the structure
and functioning of the organization.
 STAFF ROLE OF THE PERSONNEL DEPARTMENT

Advice (Cont): In addition to advices, Personnel department also includes the

preparation and communication of bulletins, reports, and procedural guidelines
for the interpretation and implementation of policy. For example,
implementation of equal employment opportunity policy, compliance with the
Occupational Safety and Health Act, and the application of a new union-company
labor agreement..
 STAFF ROLE OF THE PERSONNEL DEPARTMENT

Service: The service responsibilities of the personnel department are apparent

when one examines such things as the employment, training, and benefits
functions. The tasks of recruiting, interviewing, and testing job applicants are
performed in the personnel office. Training programs are planned, organized,
and often staffed through the personnel office. Once pension and insurance
programs have been set up, all claims must be processed through the personnel
department. The maintenance of adequate employee records is a service function
that permeates all functional specialties within the personnel field.
 STAFF ROLE OF THE PERSONNEL DEPARTMENT

Control. The personnel department carries out important control functions. It

monitors the performance of line departments and other staff departments to
ensure that they conform to established personnel policy, procedures, and
practices. The control function of the personnel department is quite comparable
to the activities
PERSONAL (HUMAN RESOURCE)
FUNCTIONS
 Personnel
Aspect
Welfare
Aspect

Industrial
Relation
Aspect

Scope of Personnel (HR) Management

 PERSONAL (HUMAN RESOURCE) FUNCTIONS

As stated before, personnel management activities are carried on both by the

staff personnel department and by operating in the course of directing the
activities of the work force.
 FUNCTIONS OF PERSONNEL MANAGEMENT DEPARTMENT

 Employment
 Orientation of new employees to their environment, organizational
requirements and their rights and privileges.
 Training of employees
 Provide leadership
 Appraise performance of employees
 Coach and correct
 Counseling
 Recommended pay increases, promotion, transfers, layoffs and discharge
 Enforce rules and maintain discipline
 FUNCTIONS OF PERSONNEL MANAGEMENT DEPARTMENT

 Settle complaints and grievances

 Interpret and communicate management policies and directives to
employees
 Interpret and communicate employees suggestions and criticism to higher
management
 Motivate subordinates and provide rewards for good performance and
behaviour
 Eliminate hazards and insure safe working environment.
 To practice equal opportunity for all
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Employment
This function includes recruitment, selection, and induction into the
organization. The initial decision to add someone to the payroll is made by
line management. It is also its responsibility to determine the content of the
job to be performed and qualifications necessary to perform the job
satisfactorily.
It must also set and operate the employee selection system, which may
include interviews, selection tests, a medical examination, and
reference checks. However, in the case of a large-scale hiring program of
unskilled or semiskilled workers, the personnel department is commonly
granted full and final authority to make the hiring decision.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Orientation
Orientation is the guided adjustment of the employee to the
organization and work environment .
The objectives of orientation are multifold. In carrying out such a HR Department
seeks to create favorable attitudes toward the company, its policies, and its
personnel. It can instill a feeling of belonging and acceptance. It can generate
enthusiasm and high morale. It molds Employee’s attitudes and behavior so that
they fit in well with the organization and accept management policies and ethos. A
well-run orientation program may minimize the likelihood of rules violations,
discharges, quits, grievances and misunderstandings. After employee is hired, both
the personnel department and the supervisor play key roles in the orientation
process.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Transfer, Promotion, Layoff

The personnel department serves primarily in a coordinative
capacity. When employees are moved from one department to
another either because of the needs of the business or because of
individual requests, the personnel records may be studied to
ascertain that they posses the requisite skills. Layoffs typically are
processed by the personnel department after insuring that due
process is followed by concerned department (s).
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Training and Development

On-the job training and coaching are performed by the line supervisor. It is
the responsibility of the personnel department to determine training
needs in cooperation with line management. Once the needs are
established, HR specialists design training program to accomplish the
desired results. If the program takes the form of in service classroom
courses, it usually is administered by the personnel unit.
Coaching, performance appraisal and post-appraisal counseling, job rotation
and special broadening assignments are largely executed by operating
managers but coordinated by a central personnel /HR staff.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Compensation Administration
The work of designing a job is responsibility of personnel department with
some consultation with line managers. The decision to adopt a particular
pay structure with pay grades and fixed minimums and maximums for the
grades is a top management responsibility.
The day-to-day work of analyzing jobs, evaluating their worth according to
a formal job evaluation plan, and maintaining suitable records is a staff
personnel function.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Providing Leadership
is responsibility of personnel department. Leading is the element of
management that impels others to action. It is one of the essential and key
management functions that must be performed by all supervisors and
executives. Leading is one of the most difficult aspect to understand, acquire,
and evaluate.
 Personal (Human Resource) Functions
Health and Safety
A significant part of an occupational health program is the identification and
control of agents within the working environment that can cause occupational
disease. Some agents can be gases, dusts, fumes, toxic chemicals or metals,
noise, heat, radiation, biological substances and stress. Industrial
hygienists are employed to identify and control such hazards to health.
Other important elements of an employee health program are pre-
employment medical examinations, periodic examinations for
those working, on jobs having exposure to occupational disease-causing
agents, rendering of first-aid, treatment of minor ailments such as colds and
headaches, and providing health education information.
 Personal (Human Resource) Functions
Health and Safety
Small companies typically hire physicians, nurses, and industrial hygienists
only on a consulting or part-time basis. Large firms tend to be staffed with full-
time personnel in these areas.
The safety program is directed toward the prevention of work injuries.
The main elements are Engineering, Education, and Enforcement
(3E’s). Strong emphasis has been given to the health and safety function since
the enactment the Occupational Safety and Health Act (OSHA) in 1970.
 Personal (Human Resource) Functions

Discipline and Discharge

Discipline has two principal meanings. In the first sense it means
“training that molds or corrects”. This means the achieving and
maintaining of orderly employee behavior because the people
understand and believe in the established codes of conduct. The
second meaning of the term discipline refers to “punishment of
wrongdoers”.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Labor Relation
When a union has been certified as a result of an election, as the sole and
exclusive bargaining agency for the employees, then management must
bargain with it in regard to wages, rates of pay, hours of work, and
other conditions of employment. The principal tasks involved in
handling labor relations are contract negotiation, contract interpretation and
administration, and grievance handling. Although nearly all grievance
procedures as in the labor contract specify that the front-line supervisor
shall be the first to hear and act upon an employee grievance. The
personnel department is very commonly listed as either the second or third
management step in the grievance procedure.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Benefits and Services

Included under this category are pensions, group life insurance,
hospital and medical insurance, sickness leave pay plans,
supplemental unemployment compensation, loan funds credit,
unions, social programs, recreational programs and college
tuition refund plans.
The actual decision establish or to expand these programs is nearly always
made by top line management upon the advice and consultation of the
personnel department. The actual design of pension and insurance programs
requires a great deal of technical knowledge. These programs are generally
worked out in conjunction with insurance, companies or insurance
consultants. After these plans are installed, the day-to-day processing of
claims is handled by the personnel department.
 Personal (Human Resource) Functions

Organization Development
A Conference Board survey conducted in 1975 revealed that Organization
Development has emerged as a major personnel activity since an earlier
investigation in 1965. Organization development (often called, simply, OD) is
a general approach for improving the effectiveness of an organization through
different methodologies. Among the objectives of OD are to increase the
level of trust and supportiveness among people in the
organization, enhance interpersonal skills, make communication
more open and direct, directly confront problems, and to tap the
knowledge of all who can contribute to problem solutions wherever they
may be in the organization
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Human Resource Planning

Another new function that has emerged in recent years is human resource
planning (also called manpower planning). Sometimes a specific person or
office has its primary responsibility; more commonly the responsibilities are
shared by several people within the corporate personnel unit. It is the process
by which a firm insures that it has the right number of qualified persons
available at the proper times, performing jobs that are useful to the
organization, and which provide satisfaction for the individuals involved in
human resource planning are as follows: (1) goals and plans of organization; (2) current
human resource situation including skills inventory; (3) human resource forecast including comparison of
projected future demand for employees with projected supply; (4) designing programs to implement the
plans (recruitment, selection, performance appraisal, transfer, promotion, training, motivation,
compensation); and (5) audit and adjustment.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Equal Employment Opportunity

Several Federal laws have caused both public and private employers to place
great emphasis upon Equal Employment Opportunity.
Employers are not allowed to discriminate in regard to race, color, sex, national
origin, religion, ethnicity, or age.
Government regulations require companies having more than 100 employees or
more than 50 employees if the company holds a government contract or
subcontract, to designate and official to be in charge of the Equal
Employment Opportunity function and to serve as a point of contact with
the government compliance agency.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Personnel and Behavioral Research

Although most companies do not conduct research in the personnel and
behavioral area but there are some pacesetting firms which have - so. Among
these are Google, Yahoo, Shell, General Electric, International Business
Machines, General Motors, American Telephone and Telegraph, Procter and
Gamble (P&G) and Texas Instruments. A major area of experimentation in
recent years has focused on ways of simultaneously improving worker
productivity and increasing the quality of working life. Other important areas
for investigation are employee attitudes and motivation, predicting success in
management, organizational relationships and development.
 PERSONAL (HUMAN RESOURCE) FUNCTIONS

Personnel Information Systems

Today, many organizations have staffs of people trained in
mathematical analysis, computers, and management information,
systems. Some companies have applied these, capabilities to personnel
work. Among the applications have been human resource planning,
skills inventories, employee benefits analysis, and productivity studies.
 Every
man, woman and child se
eks equal justice, equal op
portunities, equal dignity a
nd human values. Without
discrimination, regardless
of race, sex, religion, sexu
al preference or social stat
us. When you were born, y
ou were born with the sam
e human rights as everyon
e else. You have the right t
o live, you were born free a
nd equal to have freedom a
nd choice of your religion
and the freedom of express
ion. All men and women ar
e created equal...

THANK YOU