human resource management draft report

8/11/2019 Human Resource Management Draft Report

1/25

Human Resource Management is concerned with the management of people at work.People at work are the essential ingredient of every organisations success.

The term human resources (HR) is the total knowledge, skills, creative abilities, talents &

aptitudes of an organisations workforce, as well as the value, attitudes and beliefs of theindividuals involved - according to Leon C. Megginson. It means that the management canget & use the skill, knowledge, ability etc., through the development of skills, tapping &utilising them again and again by developing a positive attitude among employees.

MEANING AND DEFINITIONS

Michael J. Jucius defines Personnel Management as the field of management which has todo with planning, organising, directing and controlling the functions of procuring, developing,maintaining and utilising a labour force, such that the-

1. Objectives for which the company is established are attained economically&effectively

2. Objectives of all levels of personnel are served to the highest possible degree, and3. Objectives of society are duly considered and served.

Another way of looking at MANAGEMENT; MANAGE MEN T; T standing for tactfully.

Scott, Clothier and Spriegel have defined Human Resource Management as that branch ofmanagement which is responsible on a staff basis for concentrating on those aspects ofoperations which are primarily concerned with the relationship of management to employeesand employees to employees and with the development of the individual and the group.

Northcott considers human resource management as an extension of general management,that of prompting and stimulating every employee to make his fullest contribution to thepurpose of a business. Human resource management is not something that could beseparated from the basic managerial function. It is a major component of the broadermanagerial function.

French Wendell, defines Human resource management as the recruitment, selection,

development, utilisation, compensation and motivation of human resources by theorganisation.

According to Edwin B. Flippo, Human resource management is the planning, organising,directing and controlling of the procurement, development, resources to the end thatindividual and societal objectives are accomplished. This definition reveals that humanresource (HR) management is that aspect of management, which deals with the planning,organising, directing and controlling the personnel functions of the enterprise.

According to Pulapa Subba Rao, human resource management is managing (planning,organising, directing & controlling) the functions of employing, developing, compensating,


2/25

and utilising human resources, resulting in the creation and development of human andindustrial relations which would shape the future policies and practices of human resourcemanagement, with a view to contribute proportionately to the organisation, individual andsocial goals.

Main Objective of Human Resource Management:1. To maintain good relations within the organisation.2. To enable each person to make his maximum personal contribution to the

organisation as a member of the working group.3. To achieve these things through respect for human personality and well-being of the

individual.Human Resource Management is concerned with the people at work, their development,well-being and satisfaction. The basic objective of Human Resource Management is toassist the entire organisation from top to bottom in bringing about an improvement inknowledge, skill, habits and attitude that will express itself productively in work.

Some other terms used to denote human resource management are labour management,labour administration, personnel management, personnel administration, human capitalmanagement, human asset management, employment administration, employee-employerrelations, union relations management, industrial management and the like. Labourmanagement deals with employment, wages and firing of employees; employees beingtreated as a commodity. The industrial relations deals with relations among employees,trade unions, employers and the government.

Personnel Management and Human Resource Management

Personnel ManagementTraditionally the term personnel management was used to refer to the set of activitiesconcerning the workforce which included staffing, payroll, contractual obligations and otheradministrative tasks. In this respect, personnel management encompasses the range ofactivities that are to do with managing the workforce rather than resources. PersonnelManagement is more administrative in nature and the Personnel Managers main job is to

ensure that the needs of the workforce as they pertain to their immediate concerns are takencare of. Further, personnel managers typically played the role of mediators between themanagement and the employees and hence there was always the feeling that personnelmanagement was not in tune with the objectives of the management.The origins of Personnel management can be traced to the concern about exploitation ofpeople working in factories and was introduced through law of the land in most of thecountries to deal with issues pertaining to grievances and welfare of the workmen.

Human Resource Management

With the advent of resource centric organizations in recent decades, it has becomeimperative to put people first as well as secure management objectives of maximizing the


3/25

ROI (Return on Investment) on the resources. This has led to the development of themodern Human Resource Management function which is primarily concerned with ensuringthe fulfilment of management objectives and at the same time ensuring that the needs of theresources are taken care of. In this way, Human Resource Management differs from

personnel management not only in its broader scope but also in the way in which its missionis defined. Human Resource Management goes beyond the administrative tasks ofpersonnel management and encompasses a broad vision of how management would likethe resources to contribute to the success of the organization.

A Paradigm ShiftCynics might point to the fact that whatever term we use, it is finally about managingpeople. The answer to this would be that the way in which people are managed says a lotabout the approach that the firm is taking. Traditional manufacturing units had personnelmanagers whereas the services firms have HR managers. While it is tempting to viewPersonnel Management as archaic and Human Resource Management as modern, we haveto recognize the fact that each serves or served the purpose for which they were instituted.Personnel Management was effective in the smokestack era and Human ResourceManagement is effective in the 21st century and this definitely reflects a paradigm shift in thepractice of managing people.Human Resource Management denotes a shift in focus and strategy and is in tune with theneeds of the modern organization. Human Resource Management concentrates on theplanning, monitoring and control aspects of resources whereas Personnel Management waslargely about mediating between the management and employees. Many experts viewPersonnel Management as being workforce centered whereas Human ResourceManagement is resource centered. In conclusion, the differences between these two termshave to be viewed through the prism of people management through the times and incontext of the industry that is being studied.

The figure above shows the role of personnel function (on Y-Axis) at different periods oftime during (X-Axis) and thrust areas in each role or period.


4/25

Personnel management traditionally is aimed largely at non-managers, whereas HRManagement treats management development as an equally important issue. Traditionallypersonnel management viewed organizational culture and leadership as issues concerned

with organizational development, whereas HR Management highlights responsibility formanaging organization culture and leadership issues. Human resource Managementconcerns with setting consistent HR policies which reflect and communicate core values ofthe company. It is through building culture and sharing common values among people thatcompanies are trying to ensure that their acts and decision are based on best interest of thecompany rather than stressing on conventional rules and procedures, thus achieving theelement of speed.

The strategic significanceHowever more and more companies have begun to view the issues such as organizationdevelopment, employee development, direct employee communication and involvement,performance management etc. as deliverables of well-conceived HR strategy.In the industries where there is a strong correlation of intellectual capital and success atmarketplace, the companies took HR management altogether to a different plane of strategicimportance where the role of HR is clear in achieving overall strategic goals of the company.There are yet some other industries where companies think that industrial relations are stillthe major concern in people area, traces of traditional personnel management functioningcan be seen in practice. However, in general across the industries, there has been a shift inattitudes of personnel / HR professionals and the aspect is gaining importance at strategiclevel.

CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT1. Human Resource Management is a functional area of General management; it is

management of people at work.2. Human Resource Management is concerned with the effective utilisation of human

resources.3. Human Resource Management considers the development of individuals at work, as

an individual and as a member of the group.

4. Human Resource Management is concerned with the achievement of common goalsas well as integration of individual efforts with the common goals.

5. Human Resource Management is concerned with helping people at work to developtheir personalities and capabilities to the maximum possible extent, so that they mayderive great satisfaction from their job.

6. Human Resource Management is a staff activity requiring special knowledge and skillin understanding and predicting individual behaviour, inter-personal behaviour, groupbehaviour and organisational behaviour.

7. Human Resource Management has the central responsibility of organising human

effort and stimulation and releasing the individuals motivation for successfullyachieving individual, organisational and societal goals.


5/25

Human Resource Management is an approach, a point of view, a technique of thinking, anda philosophy of managem ent.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

The functions of the Human Resource Management can broadly be classified as:1. Managerial functions2. Operative functions


6/25

MANAGERIAL FUNCTIONSManagerial functions in Personnel Management involve planning, organising, directing andcontrolling. All these functions influence the operative functions of Human ResourceManagement.

1. Planning : Planning pertains to formulating of strategies of personnel programmesand changes in advance that will contribute to the organisational goals. It involves

planning of human resources, requirements, recruitment, selection, training etc. Italso involves forecasting of personnel needs, changing values, attitudes andbehaviour of employees and their impact on the organisation.

2. Organising : organising is essential to carry out the determined course of action inorder to establish relationships among employees so that they can collectivelycontribute to the attainment of company goals.

3. Directing : the willing and effective co-operation of employees for the attainment ofthe organisations goals is possible through proper direction. Tapping the maximumpotentials of the people is possible through motivation and command.

4. Controlling : controlling involves checking, verifying and comparing of the actualswith the plans, identification of deviations if any and correcting of identified

Functions of Human ResourceManagement

ManagerialFunctions

Planning

Organising

Directing

Controlling

OperationalFunctions

Employment

HumanResource

Development

Compensation

HumanRelations

IndustrialRelations

Recent Trends inHuman ResourceManagement


7/25

deviations. Auditing training programmes, analysing labour turnover records,directing morale surveys, conducting separate interviews are some of the means forcontrolling the personnel management function and making it effective.

OPERATIONAL FUNCTIONSThe operational functions of human resource management are related to specific activities ofpersonnel management viz., employment, development, compensation, relations. All thesefunctions are interacted with managerial functions. These functions are performed inconjunction with managerial functions.

1. Employment : it is the first operative function of Human Resource Management.Employment is concerned with securing and employing the people possessing therequired kind and level of human resources necessary to achieve the organisationsobjectives. It covers functions such as job analysis, human resource planning,recruitment, selection, placement, induction and internal mobility.

2. Human Resource Development : it is the process of improving, moulding andchanging the skills, knowledge, creative ability, aptitude, attitude, values,commitment etc., based on present and future job and organisational requirements.This function includes performance appraisal, training, management development,career planning and development, internal mobility, transfer, promotion, demotion,retention and retrenchment management and change and organisation development.

3. Compensation : it is the process of providing adequate, equitable and fairremuneration to the employees. It includes job evaluation, wage and salaryadministration, incentives, bonus, fringe benefits and social security measures.

4. Human Relations : Human relations is an area of management in integrating peopleinto the work situations in a way that motivates them to work productively, co-operatively and with economic, psychological and social satisfaction. It includesunderstanding and applying the models or perception, personality, learning, intra andinter-personal relations, intra and inter-group relations; motivating the employees;boosting employee morale; developing the communication and leadership skills;grievance redressal; disciplinary regulations; employee counselling; providingcomfortable work environment and improving quality of work life of employees

5. Industrial Relations : the term industrial relations refers to the study of relations

among employees, employers, government and trade unions. Industrial relationsinclude trade unionism, collective bargaining, industrial conflicts, workersparticipation in the management and quality circles.

6. Recent Trends in Human Resource Management : Human Resource Managementhas been advancing at a fast rate. The recent trends include quality of work life, totalquality of human resources, human resource accounting, audit and research, recenttechniques in Human Resource Management.

NATURE OF HUMAN RESOURCE MANAGEMENT


8/25

The emergence of human resource management can be attributed to the writings of thehuman relations who attached great significance to the human factor. Lawrence Appleyremarked , Management is personnel administration. This view is partially true asmanagement is concerned with the efficient and effective use of both human as well as non-

human resources. Thus human resource management is only a part of the managementprocess.

At the same time, it must be recognised that human resource management is inherent in theprocess of management. This function is performed by all the managers. A manager to getthe best of his people, must undertake the basic responsibility of selecting people who willwork under him and to help develop, motivate and guide them. However, he can take thehelp of the specialised services of the personnel department in discharging thisresponsibility.The nature of the human resource management has been highlighted in its followingfeatures:

1. Inherent Part of Management : Human resource management is inherent in theprocess of management. This function is performed by all the managers throughoutthe organisation rather that by the personnel department only. If a manager is to getthe best of his people, he must undertake the basic responsibility of selecting peoplewho will work under him.

2. Pervasive Function : Human Resource Management is a pervasive function ofmanagement. It is performed by all managers at various levels in the organisation. Itis not a responsibility that a manager can leave completely to someone else.However, he may secure advice and help in managing people from experts who havespecial competence in personnel management and industrial relations.

3. Basic to all Functional Areas : Human Resource Management permeates all thefunctional area of management such as production management, financialmanagement, and marketing management. That is every manager from top tobottom, working in any department has to perform the personnel functions.

4. People Centered : Human Resource Management is people centered and is relevantin all types of organisations. It is concerned with all categories of personnel from topto the bottom of the organisation. The broad classification of personnel in anindustrial enterprise may be as follows:

a. Blue-collar workers (i.e. those working on machines and engaged in loading,unloading etc.) and white-collar workers (i.e. clerical employees),

b. Managerial and non-managerial personnel,c. Professionals (such as Chartered Accountant, Company Secretary, Lawyer,

etc.) and nonprofessional personnel.5. Personnel Activities or Functions : Human Resource Management involves several

functions concerned with the management of people at work. It includes manpowerplanning, employment, placement, training, appraisal and compensation ofemployees. For the performance of these activities efficiently, a separate department

known as Personnel Department is created in most of the organisations.


9/25

6. Continuous Process : Human Resource Management is not a one shot function. Itmust be performed continuously if the organisational objectives are to be achievedsmoothly.

7. Based on Human Relations : Human Resource Management is concerned with the

motivation of human resources in the organisation. The human beings cant be dealtwith like physical factors of production. Every person has different needs, perceptionsand expectations. The managers should give due attention to these factors. Theyrequire human relations skills to deal with the people at work. Human relations skillsare also required in training performance appraisal, transfer and promotion ofsubordinates.

ORGANISATION DESIGNHuman Resource Management is considered as a line function as well as a staff function.

It is considered as a line function because all the functions co-operate in the process ofearning profits for the organisation. Human Resource Management plans, organises andchannelizes their effort towards common goals of the organisation. The Human Resourcemanager motivates individuals, creates an atmosphere of sound human relations, industrialpeace and so on. As an activity or function too, the personnel function is a line responsibility,because each manger has to deal with people, hence he must have sound knowledge aboutthe same.

Human Resource Management is also considered a staff function as the main function ofthe Human Resource manager is to advise the Board of Directors in formation of soundpersonnel policies, maintaining good industrial relations between management and theworkers. Besides, he assists and serves the workers and different departments too. Heprovides efficient workers to various departments through proper recruitment and trainingetc. he keeps necessary personnel records, makes job evaluation, makes performanceappraisals and chalks out the programme of executive development, workers training etc. healso acts as a mediator between the management and the workers union in case ofindustrial disputes.

Human Resource Management requires a constant alertness and awareness of humanrelations and their importance in everyday operations. Thus, Human Resource Managementis consistently applied and practised throughout the organisation for highest positive results.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT According to Scott, Clothier and Spriegal, The objectives of Human ResourceManagement, in an organisation, is to obtain maximum individual development, desirableworking relationships between employers and employees and employers and employees,and to affect the moulding of human resources as contrasted with physical resources

1. To ensure effective utilisation of human resources.


10/25


11/25

2. Collective bargaining, contract negotiation, contract administration & grievancehandling.

3. Staffing the organisation, finding & holding prescribed types & numbers of workers.4. Aiding to self-development of employees at all levels, providing opportunities for self

development & growth as well as acquiring requisite skills & experience.5. Developing & maintaining motivation for workers by providing incentives.6. Reviewing & auditing manpower management in the organisation.7. Industrial relations research: carrying out studies designed to explain employees

behaviour and thereby effecting the improvement in manpower management.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

1. Social significance: It enhances the dignity of people at work by satisfying their socialneed.

2. Profession significance: It provides healthy working environment and promotes teamwork amongst the people at work.

3. Significance to the Organisation: It helps in accomplishing the goals of theorganisation.

4. Significance to Individuals in the organisation: It facilitates the individuals own growthand development and provides the individual maximum satisfaction in relation towork performance.

5. The vital significance of Human Resource Management is largely due to the fact thatthe success of the organisation heavily depends on the services of their loyalemployees with genuine desire to be co-operative with the management.

Yodd er, Heneman had discussed about the importance of human resource managementfrom three standpoints, viz, social, professional and individual enterprise.Social Significance: Proper management of personnels, enhances their dignity bysatisfying their social needs, this it does by:

a) Maintain a balance between the jobs available and the jobseekers. According tothe qualifications and needs

b) Providing suitable and most productive employment, which might bring them

psychological satisfactionc) Making maximum utilization of the resource in an effective manner and paying the

employee a reasonable compensation in pro portion to the contribution made by himd) Eliminating waste or improper use of human resources, through conservation of their

normal energy and healthe) By helping people make their own decisions, that are in their interests

Professional Significance: By providing healthy working environment it promotes teamwork in the employees. This it does by

a) Maintaining the dignity of the employee as a human -beings

b) Providing maximum opportunities for personnel development


12/25

c) Providing healthy relationship between different work groups so that work iseffectively performed

d) Improving the employe es working skill and capacitye) Correcting the errors of wrong postings and proper reallocation work.

Significance for Individual Enterprise: It can help the organization in accomplishing itsgoals by

a) Creating right attitude among the employees through effective motivationb) Utilizing effectively the available human resourcesc) Securing willing co-operation of the employees for achieving goals of the enterprise

and fulfilling their own social and other psychological needs of recognition, love,affection, belongingness, esteem and self-actualization.

Good HR practices help:1. Attract and retain talent2. Train people for challenging roles3. Develop skills and competencies4. Promote team spirit5. Develop loyalty and commitment6. Increase productivity and profits7. Improve job satisfaction8. Enhance standard of living9. Generate employment opportunities.

GUIDING THEORIES IN HUMAN RESOURCE MANAGEMENTHuman resource management principles and techniques for people management incompetitive organisations are drawn from theories found in different disciplines. Indeed, it isimpractical to present all the disciplines and relevant theoretical aspects that have shapedthe understanding of human resource management today. Therefore, it is believed that it isonly important to give the reader a cursory view of some relevant theories underpinninghuman resource management and whoever may be interested in knowing more about thegenesis and developments of a specific theory may do so by taking extra homework.

Organisation life cycle theoryCameron & Whetton (1981) advanced organisation life cycle theory which characterisesorganisational development from formation, growth, maturity, decline and death. Accordingto the theory, the driving force in all these stages is the nature of workforce. At the maturitystage the organisation cannot continue to grow or survive if there is no organisationalstructure that supports human resource creativity, innovation, teamwork and highperformance, which will withstand pressure from competitors.

Role behaviour theory


13/25


14/25

Employment contracts, performance agreements and other employment related instrumentsshould therefore be seen as useful aspects of human resource management.

Transaction cost theory

Transaction cost theory is based on the economic view of the costs of conducting businesstransactions.The thesis is that companies will grow if the costs of exchanging resources in the companyare cheaper in comparison to competitors (Commons 1934; Coase 1984; Williamson 1998).Such costs include bureaucratic employment structures, procedures and the enforcement ofemployment contracts.For that matter employment relationships that may lead to high costs of exchange, should beminimised.

Comparative advantage theoryThe main architect of comparative advantage theory is the economist David Ricardo whotalked of the specialisation and division of labour among nations and firms.Ricardo postulated that nations should produce goods in which they have a domesticcomparative advantage over others (Ricardo 1891).Since then, organisations and nations have focused on strengthening internal capacity inorder to have more advantages relative to competitors and hence to reduce production anddistribution costs per unit. Improving internal capacities include having the best humanresources who are best utilised to produce cheaper and better quality goods and services(Porter 1980; Grant 1991).

General systems theoryNo organisation can survive without interacting with its environment.Organisations get inputs from the external environment, they are processed and the outputsare released to the external environment, which provides feedback to the organisation.Customers who are part of the environment will give feedback by using different meansincluding value judgment on quality, price, style and fashion. Therefore organisations areseen as systems with components and parts that are related and interconnected in such amanner that failure of a component or part leads to the failure of another (Laszio 1972;

Haken 1980; Robbins 1990). The system approach to understanding organisationsconsiders the human resource department as a component of the organisations system thatalso has other departments such as accounting, engineering, marketing etc. In order for theorganisation to grow and remain competitive, each department, section or unit shouldsupport each other. One of the organisations input s from the environment is humanresources. For example, if an organisation makes an error with its recruitment strategy, it willhave a negative effect on the whole organisation. Similarly, if at the input processing stage,human resources are not utilised in the best possible way, the same will be reflected in thequality and price of goods and services through feedback mechanisms.

This may include the failure to sell goods or services at the expected prices.


15/25


16/25

to the environment, less competitiveness, which leads inevitably to decline and ultimatecollapse.

HISTORICAL EVOLUTION OF PERSONNEL MANAGEMENT IN INDIA

In India, the evolution of personnel management is the outcome of mixed reactions of textilemanufacturers to government interventions.[Dr. Anjali Ghanekar, Everest Publishing House, Human Resource Management ManagingPersonnel in the HRD way.]

SOURCES OF PERSONNEL

Every organisation has the option of choosing the candidates for its recruitment processesfrom two kinds of sources ( Internal and External Sources ).The sources within the organisation itself (like transfer of employees from one department toother, promotions) to fill a position are known as the internal sources of recruitment.Recruitment candidates from all the other sources (like outsourcing agencies etc.) are knownas the external sources of recruitment.

The internal sources of recruitment are:-

1. Promotions: Promotion means to give a higher position, status, salary andresponsibility to the employee. So, the vacancy can be filled by promoting a suitablecandidate from the same organisation.

2. Transfers: Transfer means a change in the place of employment without any changein the position, status, salary and responsibility of the employee. So, the vacancy canbe filled by transferring a suitable candidate from the same organisation.

3. Internal Advertisements: Here, the vacancy is advertised within the organisation. Theexisting employees are asked to apply for the vacancy. So, recruitment is done fromwithin the organisation.

4. Retired Managers: Sometimes, retired managers may be recalled for a short period.This is done when the organisation cannot find a suitable candidate.

5. Recall from Long Leave: The organisation may recall a manager who has gone on along leave. This is done when the organisation faces a problem which can only besolved by that particular manager. After he solves the problem, his leave is extended.

Merits of Internal Sources

The benefits / advantages / merits of using internal sources of recruitment:-

1. It is time saving, economical, simple and reliable.2. There is no need of induction training because the candidate already knows

everything about the organisation, the work, the employee, the rules and regulations,etc.

3. It motivates the employees of work hard in order to get higher jobs in the sameorganisation.

4. It increases the morale of the employees and it improves the relations in theorganisation.

5. It reduce executive turnover.


17/25

6. It develops loyalty and a sense of responsibility.

Demerits of Internal Sources

The limitations / demerits of using internal sources of recruitment:-

1. It prevents new blood from entering the organisation. New blood brings innovativeideas, fresh thinking and dynamism into the organisation.

2. It has limited scope because it is not possible to fill up all types of vacancies fromwithin the organisation.

3. The position of the person who is promoted or transferred will be vacant.4. There may be bias or partiality in promoting or transferring persons from within the

organisation.5. Those who are not promoted will be unhappy.6. The right person may be promoted or transferred only if proper confidential reports of

all employees are maintained. This involves a lot of time, money and energy.

External Sources of Recruitment

These sources lie outside the organisation. They may come through the following sources:1. Advertisements2. Employment exchanges3. Campus recruitment4. Unsolicited applicants5. Labour contractors6. Employee referrals and7. Field trips

SourcesAdvertisement:

Advertising in newspapers, trade journals, and magazines is the most frequently usedmethod.In order to be successful, an advertisement should be carefully written. If it is not properlywritten, it may not draw the right type of applicants or it may attract too many applicants whoare not qualified for the job.Therefore, a well- thought out and planned advertisement for an appointment reduces thepossibility of unqualified people applying.Organisations often spend large amounts of money and time on advertisements. A well-designed advertising copy should contain the following four basic steps:

a. Attracting attentionb. Developing interest


18/25

c. Arousing desire andd. Generating action.

These four basic steps are together called AIDA formula. Appropriate appeals or pulls mustbe given special attention to maximise the pulling effect of advertising copy.

Since potential candidates are first introduced to the company through advertisements,image building can be made effective at this stage.There are three different types or methods of advertisement followed by organisations. Theyare:

a. Using Post Box Numbers: Some organisations do their own advertising. Theseadvertisements carry only a post box number instead of the companys name andaddress. But this method is generally not advisable as good candidates may feel thatit is not worthwhile to apply for a job without knowing the prospective employer.

b. Engaging Specialised Agencies: Some organisations do not do their ownadvertising. They make use of specialised agencies, which advertise positionswithout divulging the name of their client.

c. Direct Advertisement: Some organisations do their own advertising and give theirnames and address. This direct method is advisable as applicants get an idea aboutthe organisation they apply to.

2. Employment Exchanges: An employment exchange is an office set up for bringing together as quickly as possiblecandidates searching for employment and employees looking for prospective employees.The main functions of an employment exchange are registration of job seekers and theirplacement in notified vacancies. Employment exchanges have answered a great need inplacing workers in suitable vacancies.Employment exchanges register unemployed candidates and maintain the records oftheir names, qualifications etc.When the employers intimate the exchange about the vacancies available in theirorganisations, the exchange selects the suitable candidates among the employmentseekers who have registered with them and forwards their names to the employers forconsideration.There are two types of employment exchanges- government employment exchanges

and private employment agencies.

3. Campus Recruitment:Sometimes, recruiters are sent to educational institutions where they meet the placementofficer or the faculty members who recommend suitable candidates.This system is prevalent in U.S.A where campus recruitment is a major source. Todaythe idea of campus recruitment has slowly caught the fancy of Indian employers.The advantage of this method is that most of the applicants are present at one place andthe recruitment can be arranged at a short notice.


19/25

The recruiters can meet the faculty members and obtain an idea of the course content.The disadvantage of campus recruitment is that it is neither feasible nor attractive forfilling higher level positions. The method can b e used only for entry level positions.

4. Unsolicited Applicants:Unsolicited applicants are another source. Some candidates send in their applicationswithout any invitation from the organisation.

A recruiter can use these unsolicited applications for appointment as and whenvacancies arise. However, this source is uncertain.

5. Labour Contractors:Many organisations employ labour contractors to hire workers. This method is usuallyresorted to when the work is of a temporary nature.

6. Employee Referrals:Friends and relatives of present employees are also a good source from whichemployees may be drawn.Some organisations with a record of good personnel relations encourage theiremployees to bring suitable candidates for various openings in the organisation.This method of recruitment has the advantage of the new recruit being familiar with theorganisation and its culture.The disadvantage of this system is that it encourages nepotism and cliques of relationsand friends may be formed in the organisation.

7. Field Trips: An interviewing team makes trips to towns and cities, which are known to contain thekinds of employees required. These travelling recruiters are sent to educational andprofessional institutions.In this method of recruitment, carefully prepared brochures describing the organisationand the job it offers are distributed to the candidates before the interviewer arrives. Thearrival dates and the time and venue of interview are given to the candidates in advance.

Merits and Demerits

Merits of External Sources of Recruitment:1. Fresh talent and skill comes into the organisation.2. New employees may try to change old habits.3. New employees may be selected according to the terms and conditions of the

organisation.4. Highly qualified and experienced employees may help the organisation to come up

with better performance.5. Since persons are recruited from a large market, the best selection can be made. In

other words, the recruiter has a wide range of candidates to choose from.


20/25

6. External sources provide the requisite type of personnel for an organisation, havingthe required skill.

7. External sources of recruitment are economical because potential employees do notneed extra training for developing their skills.

Demerits of External Sources of Recruitment:1. External sources of recruitment reduce the morale of employees because outsiders

are preferred to fill up superior vacancies.2. External sources of recruitment deny career advancement for employees.3. The recruiter may not be in a position to properly evaluate outside candidates

because the time at his disposal is very less. This may result in faulty selection ofemployees.

4. Outsiders are not fully acquainted with the policies and procedures of theorganisation. Therefore, they should be given training, which is quite expensive.

After discussing the different sources of recruitment, we can conclude that there is no hardand fast rule whether the recruitment must be internally or externally or exclusive to eachother.The best management policy regarding recruitment must be to first look within theorganisation and if we are not able to locate the suitable talents, external recruitmentbecomes inevitable.To use the words of Koontz and ODonnel the (recruitment) policy should be to raise talentrather than raid for it.

HRM in the New Millennium Human Resources have never been more indispensable than today. The competitive forcesthat we face today will continue to face in the future demanding organizational excellence. Inorder to achieve this extended quality, organizations need to focus on learning, qualitydevelopment, teamwork, and reengineering. These factors are driven by the wayorganizations implement things and how employees are treated.

1. HR Can Help in Dispensing Organizational Excellence: To achieve this paradigmshift in the organization excellence there is a need for organizations to reform theway in which work is carried out by the Human Resource department. By designingan entirely new role and agenda that results in enriching the organizations v alue tocustomers, investors and employees, HR can help in delivering organizationalexcellence. This can be carried out by helping line managers and senior mangers inmoving planning from the conference room to the market place and by becoming anexpert in the way work is organized and executed.HR should be a representative of the employees and should help the organization inimproving its capacity for change. HR will help the organizations in facing thecompetitive challenges such as globalization, profitability through growth, technology,intellectual capital, and other competitive challenges that the companies are facingwhile adjusting to uncontrollably challenging changes in business environment. The

novel role of HR is to rapidly turn strategy into action; to manage processesintelligently and efficiently; to maximize employee contribution and commitment andto construct favourable conditions for flawless change.


21/25


22/25

of the firm, new ideas and approaches are critical. Yet to improve employee morale,promoting individuals from within the organization is essential. This communicatesthat the organization values their employees and invests in their human resources.

10. Review the Recruitment and Selection Process: A key element of humanresource planning is ensuring that the supply of appropriate employees (with the rightskill mix) is on board when needed. This requires a proactive approach whereby theorganization anticipates its needs well in advance. It is important to identify thecompetencies being sought. That is, the criteria upon which selection decisions areto be made should be decided in advance. A firm must identify those skill setsrequired by employees to be successf ul. Charles OReilly suggests that companiesshould hire for attitude (perhaps even more so than technical skills). That is, the fit ofthe individual with the values of the organization and the culture of the firm shouldalso be considered when selecting employees. This has been referred to as theperson-organization fit.It is no longer enough to simply consider the persons fit (and technical skill set) withthe job. Part of the employees fit with the organization should focus on the corevalues and beliefs of the organization.

This will increase employees contributions to the overall success of the organizationif they already embrace the core values of the organization prior to their selection11. Communicate Mission and Vision: If employees are expected to contribute to the

attainment of the organizations strategic objectives, they must understand what theirrole is. This can be achieved in part by clearly communicating the mission and visionstatements of the firm. The old adage is certainly true. If a person does not knowwhere he or she is going, any road will get him or her there.The mission communicates the identity and purpose of the organization. It provides astatement of who the firm is and what their business is. Only those employees whounderstand this purpose can contribute to the fullest extent possible. The visionstatement provides a picture of the future state of the firm. It should be a stretch toattain. This keeps all the organizations employees pulling in the same direction w ith

a common end point. It is much easier to align human resources with corporateobjectives when these employees are familiar with the mission and vision of the firm.

As the mission and vision statements are articulated, organizational members beginto more closely embrace their very meaning on an individual level. These statementsprovide a road map leading employees down the road to achieve organizationalobjectives. Employees then identify how they can contribute their unique talentstoward the attainment of these goals.

12. Use Teams to Achieve Synergy: Synergy can be concisely defined as two plustwo equals five. In other words, the whole is greater than the sum of the parts. So much more can beachieved as people work together. Through the effective use of teams, organizationscan often achieve synergy. Team goals, however, must be aligned with theorganizations strategic objectives. Aligning team objectives with overall corporateobjectives ensures that people are working toward the same goal

FUTURE CHALLENGES BEFORE THE MANAGERS

Because of continuous changing socio-economic, technological and political conditions, thehuman resource managers of the future shall have to face more problems in themanagement of labour.The human resource managers of today may find themselves obsolete in the future due tochanges in environment if they do not update themselves some of the important challengeswhich might be faced by the managers in the management of people in business andindustry are discussed below:


23/25


24/25

9. Changes in Legal Environment: Many changes are taking place in the legalframework within which the industrial relations systems in the country are nowfunctioning. It is the duty of the human resource or personnel executive to be awareof these changes and to bring about necessary adjustments within the organisationsso that greater utilisation of human resources can be achieved. This, indeed, is andwould remain a major challenge for the personnel executive.

10. Management of Human Relations: On the industrial relations front, things are notshowing much improvement even after so many efforts by the government in thisdirection. Though a large number of factors are responsible for industrial unrest but avery significant cause is the growth of multi-unions in industrial complexes havingdifferent political affiliations. Under the present conditions, it appears that inter-unionrivalries would grow more in the coming years and might create more problems in theindustry.

Management of human relations in the future will be more complicated than it is today. Manyof the new generation of employees will be more difficult to motivate than their predecessors.

This will be in part the result of a change in value systems coupled with rising educationallevels. Greater scepticism concerning large organisations and less reverence for authorityfigures will be more common. Unquestioning acceptance of rules and regulations will be lesslikely.

New Role of Human Resource ManagementHuman Resource Management in the New Millennium has undergone a great revolution byquestioning the accepted practices and re-inventing the organisations as well as structures.Many traditional practices have been thrown out. As an example, it can be seen thathierarchies are vanishing and there is greater emphasis on flat organisations. It means agreat deal of specialisation and skills. It also means upgrading the norms and standards ofwork as well as performance.

The new role of human resource management is much more strategic than before. Some ofthe new directions of the role ofHRM can be summed up as follows:

1. A Facilitator of Change: To carry people through upheaval requires the truemanagement of human resources.

2. An Integrated Approach to Management: Rather than being an isolated function,human resource is regarded as a core activity, one which shapes a companysvalues. In particular, this can have an impact on customer service.

3. A Mediator: Establishing and balancing the new and emerging aspirations andrequirements of the company and the individual.

These changes, which are taking place, involve more commitment of the organisation to thedevelopment of people by improving performance and cutting costs. As a result of this, theduration of tenure, which was traditionally long standing, is now limited, future is becomingless certain, management opportunities are self-determined and motivational factors aremore concerned with enhancing future employability rather than loyalty to the company and,at the same time, the rewards are going up in terms of higher salaries.The future creative careers, will require more involved approach to career development,which will include:

1. Share employees with strategic partner organisations (customers of suppliers) in lieuof internal moves.


25/25

2. Encourage independence: Employees may go elsewhere for career development,

possibly to return in a few years.

3. Fund-groups of employees to set-up as suppliers outside the organisation.

4. Encourage employees to think of themselves as a business and of the organisationsvarious departments as customers.

5. Encourage employees to develop customers outside the organisation.

6. Help employees develop self-marketing, networking and consultancy skills to enablethem to search out, recognise or create new opportunities for both themselves andthe organisation.

7. Identify skilled individuals in other organisations who can contribute on a temporaryproject basis or part-time.

8. Regularly expose employees to new people and ideas to stimulate innovation.

9. Balance external recruitment at all levels against internal promotion to encourageopen competition, competitive tendering for jobs to discourage seeing positions as

10. someones territory which causes self -protective conformity. Forster more cross-functional teamwork for self-development.

11. Eliminate the culture of valuing positions as career goals in favour of portraying acareer as a succession of bigger projects, achievements and new skills learned. Theconcept of position is part of the outside static concept of the organisation. Positionsare out. Processes and projects are in.

12. Abandon top-down performance appraisal in favour of self-appraisal based oninternal customer satisfaction surveys and assessing people as you would suppliers.

13. Replace top-down assessment processes with self-assessment techniques andmeasure performance in term of results.

human resource management draft report

Documents