human resourse management 1

7/31/2019 Human Resourse Management 1

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Human Resource Management

Shakti Awasthi


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Human Resource Management


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HRM is concerned with managing manpower toimprove

individual , group and organizationaleffectiveness.

HRM involves:

HR planning

Recruitment and selection

Training and development

Motivation Performance appraisal

Career development

Promotions and transfers


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Definitions David Decenzoand Stephen Robbins defined HRM as:

process consists of four functions: acquisition, development , motivation

and maintenance of Human resources.

Human Resource Management is concerned with the people dimension in

management . It is a process consisting of the acquisition, development,

motivation and maintenance of Human resources.

Wendell French defines HRM as:

The philosophy ,policies ,procedures and practices related to the

management of people within the organization.

Edwin FlippoPlanning, organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance and separation of

human resources to the end that individual, organizational and social

objectives are accomplished.


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Nature HRM is a process

Acquisition

Development

Motivation

Maintenance

Focus on Objectives

Universal

Application

Continuous in Nature

Integrated use of Subsystems

Multidisciplinary Approach

Key element in Coping with Problems

Development of Team Spirit

Development of Employees Potentialities

Long term Benefits


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Objectives of HRM

Ensure availability of competent workforce

Integration of goals

Cost containment

Goals through able employees

Harmonious Relationships Optimization of Human resources

Growth and development of employees

Satisfy needs

Motivation

Legal requirements

Self Actualization


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Scope of HRM1. Process: -HRM is a process of managing human resources. HRM process

is undertaken to achieve organizational objectives. The process of HRM

includes;

Acquiring the services of people (selection)

Developing the skills of human resources (training)

Motivating the manpower.

Ensuring the commitment of manpower towards organizational activities

2. Multidisciplinary approach: -

HRM is dynamic and multidisciplinary approach. HR managers make use of

various disciplines to manage the workforce effectively. The various disciplines

include;

Management Science,

Psychology,

Sociology,

Communication,

Economics,

Organization Behavior,

Philosophy, etc.


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3. Universal Applications: -

HRM is all pervasive. It is applicable to business and non business organizations.

For instance, a non-business organization, such as a college or university has to

select, train and motivate human resources to achieve its objectives.

4. Continuous in Nature: - HRM is continuous activity. Organizations need tomanage human resources on a continuous basis. Organizations need to adapt to

changing environment, i.e., changes in employees expectations, changes in

consumer behavior, changes in competitors strategies, etc.

5. Objective Oriented: - HRM places emphasis on the accomplishment of

objectives. The objectives

can be broadly listed under to four categories;

a. Individual objectives employees such as career development,

promotion, etc.

b. Group objectives such as team work.

c. Organizational objectives such as an increase in market share,

profits, etc.

6. Long-term Benefits: - HRM brings long-term benefits to the individuals,

organizations and the society as well. Employees gain long-term benefits

by the way of better monetary and non-monetary incentives. The

organization can gain by the way of higher returns on investment and

better corporate image.


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7. Development of Team Spirit: HRM aims at developing andmaintaining team spirit in every organizational unit, i.e., groups anddepartments. Such team spirit is required so that the people workeffectively together and contribute to the success of the

organization.

8. Key Element in Coping with problems: -Economic, technologicaland social trends have created acute problems for business andindustry. As a result, management has focused attention on HRM askey elements in coping with these problems.

9. Integrated use of subsystems: -HRM involves the integrated use ofsubsystems such as training and development, career development,organizational development, performance appraisal, potentialappraisal, etc.


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10. Development of Employees Potentialities:

-HRMaims at development of employees

potentialities to the maximum possible

extent, so that they gain maximum

satisfaction from their job.


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Differences between Personnel Management (PM) and HumanResources Management (HRM)

1. Personnel mean employed persons of an organization. Management ofthese people is personnel management (PM). Human resourcemanagement (HRM) is the management of employees knowledge,

aptitudes, abilities, talents, creative abilities and skills/competencies.

2. PM is traditional, routine, maintenance-oriented, administrativefunction whereas HRM is continuous, on-going development functionaimed at improving human processes.

3. PM is an independent function with independent sub-functions. HRMfollows the systems thinking approach. It is not considered in isolationfrom the larger organization and must take into account the linkages andinterfaces.


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4. PM is treated like a less important auxiliary function whereas HRMis considered a strategic management function.

5. PM is reactive, responding to demands as and when they arise.

HRM is proactive, anticipating, planning and advancingcontinuously.

6. PM is the exclusive responsibility of the personnel department.HRM is a concern for all managers in the organization and aims atdeveloping the capabilities of all line managers to carry out the

human resource related functions.

7. The scope of PM is relatively narrow with a focus on administeringpeople. The scope of HRM views the organization as a whole andlays emphasis on building a dynamic culture.

8. PM is primarily concerned with recruitment, selection andadministration of manpower. HRM takes efforts to satisfy thehuman needs of the people at work that helps to motivate peopleto make their best contribution.


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9. Important motivators in PM are compensation, rewards, jobsimplification and so on. HRM considers work groups, challengesand creativity on the job as motivators.

10. In PM improved satisfaction is considered to be the cause forimproved performance but in HRM it is the other way round(performance is the cause and satisfaction is the result).

11. In PM, employee is treated as an economic unit as his services areexchanged for wages/salary. Employee in HRM is treated not only as

economic unit but also a social and psychological entity.

12. PM treats employee as a commodity or a tool or like equipmentthat can be bought and used. Employee is treated as a resource andas a human being.

13. In PM employees are considered as cost centers and therefore,management controls the cost of labor. HRM treats employees asprofit centers and therefore, the management invests in this capitalthrough their development and better future utility.


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14. PMs angle is that employees should beused mostly for organizational benefits andprofits. HRM angle emphasizes on themutual benefits, both of employees and

their families and also the company.

15. PM preserves information and maintainsits secrecy. In HRM communication is one of

its main tasks which take into accountvertical, lateral and feedback typecommunication.


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PERSONNEL MANAGEMENT


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The Personnel Function in our

organization


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Syllabus

The Personnel Function in our organization

Recruitment, Induction, Placement & Development,Personnel Budget

Personnel Policies & Standing orders

Absenteeism, Personnel Turnover & Problem ofindiscipline

Transfers, Promotions & Voluntary retirements

Compensation Plans - Perquisites & Bonus

Job status, Grade & Salary & wage structure Outfore, Measure

Morale studies & Personnel Research


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The Personnel Function in organization

Definition of Personnel Management

The Role of the Personnel Manager

Challenges of Modern Personnel Management Approaches to Personnel Management

Organizing the Personnel Unit

Planning the Personnel Program Controlling the Personnel Unit


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PERSONNEL MANAGEMENT - Definition

Personnel Management is the

Planning,

Organizing,

Directing and Controlling

Of the

Procurement, Development,

Compensation, Integration,

Maintenance & Separation

Of human resources to the end that individual, organizational, andsocietal objectives are accomplished.


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The Role of the Personnel Manager

The Personnel Manager has Exclusiveresponsibility of

Personnel records,

Insurance Benefits administration Unemployment compensation administration

Personnel Research

The Heart of a Personnel Programme itselfrequires considerable coordination, as well as

coordination with units in the remainder of

the organization.


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Challenges of Modern Personnel

Management

Changing Mix of the Work force

Changing Personal Values of the Work force

Changing expectations of citizen-employees

Changing levels of productivity

Changing demands of government


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Changing Mix of the workforce.

Increased numbers of minority members entering

occupations requiring greater skills.

Increasing levels of formal education for the entirework force.

More female employees.

More married female employees.

More working mothers.

A steadily increasing majority of white-collar

employees in place of the blue-collar.


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Changing Personal Values of the Work

Force

Better morale

Better fit of work time to the employees

body clock

Improving handling of fluctuating workloads

Increased customer service

Reduced employee absenteeism Reduced turnover


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Challenges of Modern Personnel

Management contd.

Changing Expectations of Citizen-Employees

Freedom of Speech

Right to privacy

Changing Levels of Productivity Numerous laws

Increase in new numbers of employees

Adversial relations with labour unions

Changing Demands of Government

In procurement, development, compensation, integration,maintenance and separation.


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Approaches to

Personnel Management

Mechanical Approach

Paternalism

Social System


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Mechanical Approach toward Personnel

Labour must be classified with capital and land.

Personnel are controllable, predictable, andinterchangeable.

Techniques such as time study, incentive wages were

introduced. Problems incurred were

Loss of jobs through development of new machines orwork techniques

Decreased economic security leading to formation oflabour organizations

Labour organizations grew at a very slow pace

Decreased pride in work


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Paternalism

Management must assume a

fatherly and

protective attitude

Toward employees. Activities such as

Company stores

Company homes and Recreational facilities

were started


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Social System

The firm is viewed as a complex central systemoperating within a complex environmentwhich can be termed as outer-extended

system The central system cannot be closed &

directed in a mechanistic fashion.

Options are available to central systemmembers with the aid of labour unions,government, and various public groups.


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Bases of Departmentation

Procurement (employment)

Development (training)

Compensation (wage & salary administration)

Integration (labor relations)

Maintenance (safety)

Separation (employee services, retirement)


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Line & Personnel Staff relationships

Line person may Advise and not Command or

Order

Staff relationship is of Service

Staff advice compels the line person only to listen

& not accept or follow advice

Staff should be able to give truthful advice tosuperiors without fear of losing their jobs


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Planning the Personnel Programme

Planning is determination of anything in

advance of action.

Decision Making

Programmes and Policies

The Computer and Personnel Standards


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Decision Making

1. Recognize & define a problem that calls

for action

2. Determine possible alternativesolutions

3. Collect and analyze facts bearing upon

the problem.4. Decide on a solution


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Programmes and Policies

In 4 areas

1. Designing enriched jobs

2. The ease with which it can be

implemented in the organization3. Projected economic benefits to the firm

4. Possible economic risks associated with

the programmes.


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The Computer and PersonnelPayroll

Timekeeping

Taxes

Increases etc.

Personnel

Skills

Education

Interests etc

Fringe benefits

Pensions

Insurance

Medical, etc

Integrated

Computer

system

Procurement

Basic recordsIdentification of vacancies

Applicant flow ( when

applied, source, process,

hiring decision, why

rejected etc..

Development- each employee skill profile

Compensation- salary by job, education etc.

Integration- grievance by unit, employee etc.

Maintenance- Govt. reports (accidents,

lost time etc.)

Separation- terminated employee reports

OUTPUTS


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Standards

It is an established criterion or model

against which actual results can be

compared.

Results or Standards cover

Time and Cost variables

Method or function Personnel & Physical factors


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Controlling the Personnel Unit

STRATEGIC CONTROL POINTS

Procurement Formal placement follow-up of employee job satisfaction

Development Quality losses

Compensation Wage & salary budgets

Integration Morale surveys

Maintenance Insurance premiums

Separation Number of retirees participating in retirement programmes


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The Personnel Audit &

Human Resources Accounting

The Personnel Audit

Systematic survey & analysis of all operativefunctions of personnel, with a summarized

statement of findings and recommendations forcorrection of deficiencies

Human Resources Accounting

Suppose a major catastrophe wiped out all the

human resources in your organization, how longwould it take & how much would it cost to replacethem.


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Dimension Personnel Management HRM

1. Employment

Contract

Careful delineation of

written contracts

Aim to go beyond contract

2. Rules Importance of devising

clear rules

Can do outlook,

Impatience with rule

3. Key Relations Labour Management Customer

4. Speed of decision Slow Fast

5. Management role Transaction Transformational

6. Job design Division of labor Team work

7. Respect for

employees

Labor is treated as a tool

which is expendable &replaceable.

People are treated as

assets to be used for thebenefit of an organization,

its employees & the

society as a whole.

8. Shared interest Interests of the

organization areuppermost

Mutuality of interests


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Composition of HR / Personnel DepartmentDirector HRM

Manager- Manager- Administration Manager-HRD Manager- IR

Personnel

Appraisal T & D

PR Canteen Medical Welfare Transport Legal

HRP Hiring Grievance Handling Compensation

human resourse management 1

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