MANAGEMENT OF HUMAN RESOURCE-1 NOTES FOR BBA
Management of Human Resources -1 Notes for BBA
Meaning and definations of HRM
Human resource management can be defined as that part of management process which develops and manages the human elements of enterprise considering the resourcefulness of the organisation’s own people in terms of total knowledge, skills, creative abilities, talents, aptitudes and potentialities. It refers to the qualitative and quantitative aspects of employees working in an organization. It is a process of making the efficient and effective use of human resources so that the set goals are achieved.
In simple sense, “Human Resource Management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organization, individual and society”.
According to Leon C. Megginson, the term human resources can be thought of as “the total knowledge, skills, creative abilities, talents and aptitudes of an organisation’s workforce, as well as the values, attitudes and beliefs of the individuals’ involved”.
According to Dale Yoder, “The management of human resource is viewed as a system in which participants seeks to attain both individual and group goals”. Michael J. Jucius defines human resources as “A whole consisting of interrelated,interpedently and interacting physiological, psychological, sociological and ethical components”.
According to Flippo, “Human Resource Management is planning, 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”.
French defined, “Personnel Management is the recruitment, selection, development, utilization of accommodation to human resource of an organization consists of all individuals regardless of their role, who are engaged in any of the organization activities”.
According to National Institute of Personnel Management of India, “Human Resource Management is that part of management which is concerned with people at work and with their relationships within the organization. It seeks to bring men and women who make up an enterprise, enabling each to make their own best contribution to its success both as an individual and as a member of a working group”.
Human Resource Management is the term increasingly used to refer the philosophy, policies, procedures and practices relating to the management of people within organizations. It is the qualitative improvement of human beings who are considered the most valuable asset of an organization- the sources, resources, and end-users of all products and services.
Dun & Stephens defined, “Personnel Management is the process of attracting, holding and motivating people, innovating all managers-line & staff’.
Paul Pigors & Charles Myres defined, “It is a method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organization”. Prof. Thomas G. Spates defined, “Personnel administration is a code of the ways of organizing and treating individuals at work so that they each will get the greatest possible realisation of their intrinsic abilities, thus attaining maximum efficiency for themselves and their group, and thereby giving to the enterprise of which they are a part its determining competitive advantage and its optimum results”.
According to Decenzo and Robbins, “Human Resource Management is concerned with the people dimension management. Since every organization is made of people, acquiring, their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization, essential for achieving organizational objectives. This is true, regardless of the type of organization- government, business, education, health, recreation or social action” .
Prof. Cynthia D. Fisher, Lyle F. Schoenfeldt and James B. Shaw stated that, “Human Resource Management involves all management decisions and practices that directly affect or influence the people or human resources who work for the organization. In recent years, increasing attention has been devoted to how the organizations manage human resources. It is important to examine as to how organisation’s employees enable as organization to achieve its goals”.
Guest defined, “Human Resource Management comprises a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work”. It is clear from the above definitions that human resources refer to the qualitative and quantitative aspects of employee working in an organization. Human Resource Management as a process of making the efficient and effective use of human resources so that the set goals are achieved.
In short, HRM can be defined as a process of procuring, developing and maintaining competent human resources in the organization so that the goals of an organization are achieved in an effective and efficient manner. It also an art of managing people at work in such a manner that they give their best to the organization.
OBJECTIVES OF HRM
Human resources are managed to divert and utilize their resources towards and for the accomplishment of organizational objectives. The most important objective of any organization would be to find out the right person for the right job, so that the organizational goals are achieved. The objectives of HRM changes from time to time and from organization to organization.
They are as follow:
1) Societal Objectives: To be ethically and socially responsible to the needs, and challenges of the society, while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for the society’s benefit in ethical ways may lead to restrictions.
2) Organizational Objectives: To recognize the HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives.
3) Functional Objectives: To maintain the department’s contribution at a level appropriate to the organisation’s needs. A department’s level of service must be appropriate for the organization it Serves. To assist employees in achieving their personal goals, at-least in so far as these goals enhance the individual’s contribution to the organization. Personal objectives of employees must be met, if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline and employees may leave the organization.
4) Personal Objectives: Hence objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility. Management has to create conducive environment and provide necessary pre-requisites for the attainment of the objectives of HRM.
NATURE OF HRM
In every phase of life, man learns new things and makes use of those in his daily routines. This nature builds a person to develop and change from time to time. When this change is well utilized by a person to coincide the organizational and individual goal, it becomes an effective human resources management.
It has following features:
1) Pervasive Force: HRM is pervasive in nature. It is present in all enterprises. HRM is the central sub- function of an organization and it permeates all types of functional management viz., production management, marketing management and financial management. Each and every manager is involved with human resource function.
2) Action Oriented: HRM focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees at work are solved through rational policies.
3) Individually Oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organization. Under HRM, every employee is considered as an individual so as to provide services and programmes to facilitate employees’ satisfaction and growth. In other words, it is concerned with the development of human resources, i.e., knowledge, capability, skill, potentialities and attaining and achieving employee goals.
4) People Oriented: HRM is all about people at work, both as individual and groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity. It is the process of bringing people and organization together so that the goals of each are met.
5) Future Oriented: Effective HRM helps an organization meet its goals in the future by providing for competent and well-motivated employees.
6) Development Oriented: HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improve their skills. Employees are rotated on various jobs so that they gain experience and exposure. Every attempt is made to use their talents fully in the service of organizational goals. Individual employee-goals consist of job satisfaction, job security, high salary, attractive fringe benefits, challenging work, pride, status, recognition, opportunity for development etc. HRM is concerned with developing the potential of employees, so that they derive maximum satisfaction from their work and give their best efforts to the organization.
7) Integrating Mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human assets in the best possible manner in the service of an organization.
8) Comprehensive Function: HRM is, to some extent, concerned with any organizational decision which has an impact on the workforce or the potential workforce. The term ‘workforce’ signifies people working at various levels, including workers, supervisors, middle and top managers. It is concerned with managing people at work.
9) Auxiliary Service: HR departments exist to assist and advise the line or operating managers to do their personnel work more effectively. HR manager is a specialist advisor. HR managers do not manufacture or sell goods but they do contribute to the success and growth of an organization by advising the operating departments on personnel matters.
10) Inter-disciplinaryFunctions: HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, anthropology, economics, etc. to unravel the mystery surrounding the human brain, managers, need to understand and appreciate the contributions of all such ‘soft’ disciplines.
11) Continuous Functions: HRM is a continuous and never ending process. According to George R.Terry, “it cannot be turned on and off like water from a faucet; it cannot be practiced only one horn each day or one day each week. Personnel management requires a constant alertness and awareness of human relations and their importance in everyday operations.
12) Challenging Functions: Managing of human resources are challenging job due to the dynamic nature of people. HRM aims at securing unreserved co-operation from all employees in order to attain pre-determined goals. Therefore, HRM is the management of human resources in the organization and is concerned with the creation of harmonious working relationships among its participants and bringing about their utmost individual development. It is about developing people and enabling them to make the best use of their abilities in their own interests, as well as those of the organization. It furthermore matches human resources to the strategies and operational needs of the organization, and ensuring the full utilization of those resources.
HR ACTIVITIES
One aspect of getting the greatest contribution from human capital in an organization requires that a fit be made with how people are treated and the long-term effect on the company’s bottom-line. The way that happens is through HR activities that are based on research, best practices, and continuing enhancement of HR efforts. HRM can be thought of as seven interlinked activities taking place within organizations. Additionally, external forces- legal, economic, technological, global, environment, cultural/geographic, political and social- significantly affect HR activities and how they are designed, managed and changed. The HR activities are:
1) Strategic HRM: As part of maintaining organizational competitiveness, HR effectiveness can be increased through the use of HR measurement and HR technology. Through HR planning, managers anticipate the future supply of and demand for employees. An additional strategic HR concern is the retention of employees.
2) Equal Employment Opportunity: Compliance with equal employment opportunity (EEO) laws and regulations affects all other HR activities. The diversity of a workforce creates additional challenges. For instance, a company must have sufficient diversity to meet affirmative action requirements.
3) Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to fill jobs in an organization. Job analysis lays the foundation for staffing by identifying what people do in their jobs. These analyses are used when recruiting applicants for job openings. The selection process is concerned with choosing qualified individuals to fill those jobs in the organization.
4) Talent Management & Development: Beginning with the orientation of new employees, talent management and development includes different types of training. Also, HR development of employees and managers is necessary to prepare for future challenges. Career planning identifies paths and activities for individual employees as they move within the organization. Assessing how well employees perform their jobs is the focus of performance management.
5) TotalRewards: Compensation in the form of pay incentives, benefits, rewards people for performing organizational work. To be competitive, employers develop and refine their basic compensation systems and may use variable pay programs such as gain sharing and productivity rewards. The rapid increase in the cost of benefits will continue to be a major issue for most employers.
6) Risk Management & Workers Protection: Employers need to address an increasing number of workplace risks to ensure workers protection. For decades employers have had to meet legal requirements and be more responsive to concerns for workplace health and safety. Also, workplace security has grown in importance along with disaster and recovery planning.
7) Employee & Labour Relations:
The relationship between managers and their employees must be
handled effectively. Employee rights and privacy issues must be
addressed. It is important to develop, communicate, and update HR
policies and procedures so that managers and employees alike know
what is expected. In some organizations, union/management
relations must be addressed as well.
Functions of Human Resource Management
Human Resource Management functions can be classified into the following three categories.
- Managerial Functions,
- Operative Functions,
- Advisory Functions
The Managerial Functions Human Resource Management are as follows:
1. Human Resource Planning - In this function of HRM, the number and type of employees needed to accomplish organizational goals is determined. Research is an important part of this function, information is collected and analyzed to identify current and future human resource needs and to forecast changing values, attitude, and behavior of employees and their impact on the organization.
2. Organizing - In an organization tasks are allocated among its members, relationships are identified, and activities are integrated towards a common objective. Relationships are established among the employees so that they can collectively contribute to the attainment of the organization's goal.
3. Directing - Activating employees at different levels and making them contribute maximum to the organization is possible through proper direction and motivation. Taping the maximum potentialities of the employees is possible through motivation and command.
4. Controlling - After planning, organizing, and directing, employees' actual performance is checked, verified, and compared with the plans. If the actual performance is found deviated from the plan, control measures are required to be taken.
The Operative Functions Human Resource Management are as follows:
1. Recruitment and Selection - Recruitment of candidates is the function preceding the selection, which brings the pool of prospective candidates for the organization so that the management can select the right candidate from this pool.
2. Job Analysis and Design - Job analysis is the process of describing the nature of a job and specifying the human requirements like qualification, skills, and work experience to perform that job. Job design aims at outlining and organizing tasks, duties, and responsibilities into a single unit of work for the achievement of certain objectives.
3. Performance Appraisal - Human resource professionals are required to perform this function to ensure that the performance of employees is at an acceptable level.
4. Training and Development - This function of human resource management helps employees acquire skills and knowledge to perform their jobs effectively. Training and development programs are organized for both new and existing employees. Employees are prepared for higher-level responsibilities through training and development.
5. Wage and Salary Administration - Human resource management determines what is to be paid for different types of jobs. Human resource management decides employee's compensation which includes - wage administration, salary administration, incentives, bonuses, fringe benefits, and etc,.
6. Employee Welfare - This function refers to various services, benefits, and facilities that are provided to employees for their well-being.
7. Maintenance - Human resource is considered an asset for the organization. Employee turnover is not considered good for the organization. Human resource management always tries to keep their best performing employees with the organization.
8. Labour Relations - This function refers to human resource management interaction with employees represented by a trade union. Employees come together and form a union to obtain more voice in decisions affecting wage, benefits, working conditions, etc,.
9. Personnel Research - Personnel researches are done by human resource management to gather employees' opinions on wages and salaries, promotions, working conditions, welfare activities, leadership, etc,. Such researches help in understanding employee satisfaction, employee turnover, employee termination, etc,.
10. Personnel Record - This function involves recording, maintaining, and retrieving employee-related information like - application forms, employment history, working hours, earnings, employee absents and presents, employee turnover, and other data related to employees.
The Advisory Functions of Human Resource Management are as follows:
Human Resource Management is expert in managing human resources and so can give advice on matters related to human resources of the organization. Human Resource Management can offer advice to:
1. Advised to Top Management
The personnel manager advises the top management in the formulation and evaluation of personnel programs, policies, and procedures.
2. Advised to Departmental Heads
The personnel manager advises the heads of various departments on matters such as manpower planning, job analysis, job design, recruitment, selection, placement, training, performance appraisal, etc.
Unit-1: Human Resource Management: Evolution and growth of human resource management (with special reference to Scientific management and Human relations approach), Role of HR in strategic Management, Nature, Scope, Objective, and functions of 1R management
Unit-11: Challenges of HR: Role of HR in changing environment (the changing profile of the workforce - knowledge workers, employment opportunities in BPOs, IT and service industries, Flexi options), Workforce diversity (causes, parados, resolution of diversity by management).
Unit-III: HRD: Human resource management as a profession, the concept of line- staff in the structure of HRD and the role of HR manager Lectures: 12 Unit-IV: Manpower planning: Meaning, objectives, elements, process, merits & demerits, job design-(simplification, rotation, enlargement, enrichment) Job analysis, Job evaluation Lectures: 12
Unit-V: Orientation: Recruitment factors (procedure, tests, interviews). Placement and induction affecting sources, policy, evaluation).
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