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Unit-IConcepts & Perspectives of HRM; HRM in changing environment, HRM functions, Role of HR

Practitioners; HR Policies, Corporate objectives an Human Resource Planning!

Moern Perspective of HRM"PM

The growth of personnel management/ human resource management in U.S.A. and U.K was

evolutionary in nature. It took place because of voluntary efforts of employers. ut in India! it grewbecause it was made compulsory by government.

In "#$"! %&oyal 'ommission on labour( recommended appointment of labour officer. So thatlabour problems might be solved. In "#)*! +actories Act made it obligatory for certain industrial

enterprises to appoint welfare officers.

The Scope of ,ersonnel management has increases because! task of personnel manager is not

only confined to recruitment of workers but also to looking after their welfare - handling their

grievances. Under influence of technological development! organisation become comple and needsspecialied skills - professionals. As a result! emphasis is being given to training - development

aspects.

,ersonnel management is no longer restricted to wage earners in factories. It has become e0uallyimportant in offices! sales organisation! hospitals! development institutions - in management itself.

The other term used! in personnel problem - techni0ues are %labour relations( and %industrialrelations( which are used interchangeably but it is useful to distinguish them. The term %1abour

relations( refers to relations between management - unionised labour.

2hich includes negotiations of contracts with unions day to day relations with union leads! government

regulation of terms - conditions of employment. The term %industrial relations( is used as synonymous

with %,ersonnel management(.In India! the field of ,ersonnel 3anagement has

$ ranches 4 5i6 ,ersonnel Administration

5ii6 Industrial &elations5iii6 1abour 2elfare

5"6 ,ersonnel administration7 deals with administrative aspects such as recruitment! selectionplacement! promotion! wages and incentives etc.

586 Industrial relations 4 deals with employer employee relationship! negotiations - collective

bargaining etc.

5$6 1abour 2elfare7 deals with working conditions of employees by provision of facilities such ascanteen! housing! recreation! education etc.

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#ues! $ %efine HRM! Ho HRM functions are changing business environment'

Ans. 9uman &esources 3anagement is defined as policies and practices Involved in carrying out the:people; or human resource aspects of a management position! including recruiting! screening! training!

rewarding and appraising. These include0R)38 5*URC05

"6 3vertisement-

?nterprise advertises vacancies through newspaper! trade =ournals - magaines. The content of

advertisement - media through which advertisement is to be given is decided by 9uman &esource

department. It is convenient - economical method.

86 Casual Callers-

>n occasions people drop in without any announcement of vacancy to find out if =obs are

available. A waiting list of such visitors may be prepared - they may be screened to fill the vacancies

whenever they arise.

$6 1ate hiring or Recruitment at factor. gate

It is usually followed by factories to fill up vacancies at lower level. 1arge enterprises usually

plays a notice on notice board specifying details of =ob available. A large number of unemployed

persons assemble at gate where personnel manage scrutinie them - pick the persons as per re0uirementSmall workshops recruit fitters! welders etc! through this source.

)6 0ucational Institutions-

School! colleges - professional institutions offer opportunities for recruiting their students

,rospective employeers verify credentials of students - conduct interview directly! placement cells have

been set up in well known educational institutions to help students in securing suitable =obs.

@6 Management Consultants-

9elp to recruit technical! professional - managerial personnel for eample accountants

engineers. They specialie in middle level - top level eecutive placements. They maintain data bank of

persons with different 0ualifications - skills - even advertise =obs on behalf their clients to recruit righttype of personnel.

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6 Recommenations-

+riends - relative of present employees are also good source of recruitment. 3any concernsprefer such candidates as they generally stand surety for new recruits and their background is partly

known - type of preliminary screening takes place.

E6 8abour Contractor-

2orkers are recruited through labour contractors who are themselves employees of organisation

The dis advantage of this system is that if contractor leaves the organisation! all the workers employedthrough him will also leave. &ecruitment through this source has been banned for public sector units

9owever! this practice is still common in case of construction industry.

*6 elecasting-

The practice of telecasting of vacant posts over T.G. 5Coordarshan - other channels6 is gainingimportance these days. Special programmes like %Dob 2atch(! %Houth ,ulse(! %?mployment ews( etc

over T.G. have become 0uite popular in recruitment for various types of =obs.

The use of T.G. as a source of recruitment is less as compared to other sources because it is anepensive medium.

#6 Union list-

%Sometimes trade Unions list maintain list of candidates seeking employment in the concern.

Such candidates could be recruited in consultation with union.

"J6 Central application file-

A file is maintained of past applicants who were not selected earlier! in case of immediate

re0uirements such candidates can also be contacted.

Merits-

"6 (ie *ptions-

It brings large number of applicants as it permits enterprise to have free hands in making

selection.

86 /resh talent-

?nterprise can epect to get fresh talented candidates from outside which leads to infusion of

ew lood - new ideas in to enterprises.

$6 0lement of competition-

This is a healthy feature from point of view of enterprise as internal candidates have to compete

with outside candidate.

8imitations-

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5080CI*)

Selection mean a process by which 0ualified personnel can be chosen from the applicants who

have offered their services to the organisation for employment. Thus! the selection process is a tool inthe hands of the management. Selection involves a series of steps by which candidates are screened for

choosing most suitable persons for vacant posts. It is done by evaluation of 0ualification! eperience -other information provided by candidates. The ob=ect underlying selection process is eliminated of those=udged un0ualified to meet =ob - organisation re0uirements. Thus it tends to be a negative process as it

re=ect good proportion of those who apply.

S?1?'TI> ,&>'?CU&?

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administereal. Some organisation may hold one or more test while some other may not hold test at all3uch depends on policy of top management! nature of =obs and availability of candidates.

). 5election intervie-

It basically consist of conversation between employer and prospective employee. The selectors

ask for =ob related and some general 0uestions and see the response of candidates it helps in avessing

candidates strength and a weaknesses. 'andidates interact with selector and the letter gets a first handidea of personality and other 0ualities of candidates. 'andidates also get a chance to seek information

about enterprise! nature of the =ob! prospects of promotion.

ues. ) %istinguish beteen training an evelopment! 02plain various techni7ues of evelopment

of managers!

Ans. Training is a process of learning a se0uence of programmed behavior. It is application of

knowledge. It gives people an awareness of the rules and procedures to guide their behavior. It attemptsto improve their performance on the currents =ob or prepare them for an intended =ob.

Cevelopment is a related process. It covers not only those activities! which improve =ob

performance! but also those which bring about growth of the personalityF help individuals in the progress

towards maturity and actualiation of their potential capacities so that they become not only goodemployees but better men and woman. In organisational terms! it is intended to e0uip persons to earn

promotion and hold greater responsibility. Training a person for higher and bigger =ob is development

And this may well include not only imparting specific skills and knowledge but also inculating certainpersonality and mental attitudes.

Training is short term process utiliing a systematic and organied procedure by which nonmanagerial personal learns technical knowledge and skills for a definite purpose. Cevelopment is a long

term educational process utiliing a systematic and organised procedure by which managerial personnel

learn conceptual and theoretical knowledge for general purpose.

3anagement development is any attempt to improve managerial performance by imparting

knowledge! changing attitude or increasing skills. The general management development consists of 5"6

assessing the company(s strategic needs 5for instance! to full future eecutive openings or to boostcompetitiveness6.

586 %eveloping managers for future responsibilities!

There is more emphasis on choosing management development methods that are more

organiationally relevant and effective that they have been in the past. Garious techni0ues of

management development includeff the =ob training.

3anagerial on7the7=ob training methods include =ob7rotation! coaching/understudy approach and action

learning.

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Dob rotation means moving management trainees from department to broaden their understanding of allpart of the business and to test their babilities. A manager may spend several months in each department

The person may =ust bean observer in each department but more commonly gets fully involved in its

operations.

'oaching/understudy approach< 9ere the person workers directly with the senior manager or with the

person he or she is to replaceF the latter is responsible for the eecutive of certain responsibilities! giving

the trainee a chance to learn the =ob.

Action learning programmers give managers and others released time to work full time on pro=ects

analysis and solving problems in departments other than their own trainees meet periodically in four orfive person pro=ect groups to discuss their findings. Several trainees may work together as a pro=ect

group or compare notes and discuss each other(s pro=ects.

Off the job training and development techniques

The off the =ob development techni0ues for managers include case study methodF management games

role playing etc.

Case 5tu. metho- 'ase study method presents a trainee with a written description of anorganisational problem. The person then analyes the case! diagnoses the problem and presents his or

her findings and solutions in discussion with other trainees.

Management 1ames-2ith management games trainees are dividend in to give or si persons group

each of which competes with the others in a stimulated marketplace. 3anagement games can be good

development tools. ,eople learn best by getting involved! and the games can be useful for gaining suchinvolvement. They help trainee develop their problem solving skills! as well as to focus attention on

planning rather than =ust putting out fires. The group also usually elect their own officers and organie

themselvesF they can thus develop leadership skills and faster cooperation and team work.

Roll Pla.ing-The aim of role playing is to create a realistic situation and then have the trainees assume

the role of specific persons in that situation. 2hen combined with the general instruction and other roles

for the eercise! role playing can trigger spirited discussions among the role player trainees. The aim isto develop trainee(s skills in areas like leadership and delegation.

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U)I @

/o$pensation-i$s " co$ponents Factors deter$ining pay rates 1stablis+ing pay rates %ob1val!ation Pay for perfor$ance 1$ployee benefits " services Perfor$ance appraisal 234degree feed back Potential appraisal0

Compensation

: 'ompensation refers to a wide range of financial and non7financial rewards to employees for their

services rendered to the organisation.; It is paid in form of wages! salaries! and employee benefits such

as paid vacations! insurance! maternity leave! free travel facility! retirement benefits etc. monetarypayments are a direct form of compensating employees - have a great impact in motivating employees

The system of compensation should be designed in such a way that it achieves following ob=ectivesn

the other hand! if the supply is more then workers available might get ready work at cheaper rates.

86 +argaining Poer2here labour unions are strong enough to force the hand of employers! the

wages will be determined at a higher level in comparison to other units where unions are weak.

$6 Cost of living-2ages of workers also depends upon the cost of living of the worker so as to ensurehim a decent living wage. 'ost of living varies under deflationary and inflationary pressures. 2here

labour uncons are strong and employer do not show enough awareness! here wage are ad=usted

according to cost of living inde numbers.

)6 Conition of prouct mar4et-Cegree of competitions prevailing in the market for the product of

the industry will also influence the wage level. +or eg if there is perfect compition in the market thewage level may be at par with the value of net additions made by the workers to the total output! but

may not reach this level in case of imperfect compition in the market.

@6 Comparative (ages-2ages paid by the other firms for the same work also influence the wage

levels. 2age rates must also be in consistent with the wages paid by the other firms in the same industryso as to increases the =ob satisfaction among the workers.

6 3bilit. to Pa.- 2age rates are influenced by the paying ability of industry or firms to its workers

Those firms which are earning huge profits may afford to pay high wages and can provide more

facilities to its workers in comparison to the firms earning comparatively low profits.

5E6 Prouctivit. of labour- +ligher productivity will automatically fetch more profit to the firm! where

in turn workers will be paid high wages in comparison to other firms with low productivity.

5*6 6ob Re7uirements-If a =ob re0uire higher skill! greater responsibility and risk! the worker placed

on that =ob will naturally get higher wages in comparison to other =obs which do not re0uire the samedegree of skill! responsibility or risk.

5#6 1ovt! Polic.-Since the bargaining power of the workers is not enough to ensure fair wages in all

industries! the Bovt. has to interfere in regulating wage rate to guarantee minimum wage rates in orderto cover the essentials of a decent living.

5"J6 1ooill of the compan.-A few employers want to establish themselves as good employer in thesociety and fi higher wages for their workers. It attract 0ualified employees.

In addition there are other important factors which affect the individual differences in wage rates. These

are