HUMAN RESOURCE MANAGEMENT UNIT I Periods 12 PERCEPTIVE

HUMAN RESOURCE MANAGEMENT UNIT I Periods: 12

PERCEPTIVE IN HUMAN RESOURCE MANAGEMENT - Evolution of human resource management – The importance of the human factor – Objectives of human resource management – Role of human resource manager – Human resource policies – Computer applications in human resource management – Human resource accounting and audit.

Human Resource Management o o o 4 Ms Human (living) and non-human (nonliving) Human that make use of non-human resources. So people are most important. Right people for right job HR appreciates other resources depreciate

Meaning and Definitions Human Resources 1. Michael J. Jucius has defined human resources as “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components”

2. From the national point of view, human resources are knowledge, skills, creative abilities, talents and attitudes obtained in the population; whereas from the view- point of the individual enterprises, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its employees. -Leon. C. Megginson

3. Human resources are human capital and are categorised into intellectual capital, social capital and emotional capital. o Intellectual capital consists of specialised knowledge, tacit knowledge and skills, cognitive complexity and learning capacity. o Social capital is made up of network of relationships, sociability and trustworthiness. o Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability and resilience. - Sumantra Ghosal

Human Resource Management 1. “Personnel management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished”. -Flippo

2. HRM is defined as the part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organisation of the men and women who make up an enterprise and having regard for the well-being of the individuals and of working groups, to enable them to make their best contribution to its success. -National Institute of Personnel Management (NIPM)

3. HRM is concerned with the people dimension in management. Since every organisation is made up 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 organisation are essential to achieving organisational objectives. This is true, regardless of the type of organisation – government, business, education, health, recreation or social action. - Decenzo and Robbins

DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT o 1. 2. 3. 3 main differences, HRM emphasizes not just on rule and contract but beyond them HRM focuses on strategy It focuses on individualization of employee relations

DIMENSION PM HRM Employment contract written Beyond it Rules Devising Do outlook Guide to mgt action Procedures Business need Behaviour referent norms Values/mission Mgrl. task monitoring nurturing Key relations Labour mgt customers initiatives piecemeal Integrated Speed of decision slow Fast Mgt role transactional Transformational Skill acquisition T&D Learning orgn. communication indirect Direct Reward mgt. Std job evaluation Performance related Prized mgt skills negotiation Facilitation

OBJECTIVES OF HRM The primary objective - to ensure the availability of right people for right jobs Sub objectives are, 1. To provide competent and motivated employees to achieve goal 2. To utilise human resources effectively 3. To increase employee’s job satisfaction and self actualisation 4. To develop and maintain QWL 5. To maintain ethical policies and behaviour 6. To maintain cordial relations between employees and management 7. To reconcile individual/group goals with organisational goals o

HRM Objectives Supporting functions 1. Social objectives 1. 2. 3. 2. Orgnl. Objectives Legal compliance Benefits Union-mgt relations 6. HR Planning Employee relations Selection T&D Appraisal Placement 7. Assessment 1. 2. 3. 4. 5. 3. Function objectives 5, 6, 7 of above 4. Personal objectives 4, 5, 6, 7 and compensation

SCOPE OF HRM CONTROL HR audit, HR accounting HRIS HRM MAINTENANCE Remuneration Motivation Health & safety Social security Industrial relations Performance appraisal ACQUISITION HR planning Recruitment Selection Placement DEVELOPMENT Training Career development Internal mobility

NIPM specified the scope of HRM as, 1. The labour or personnel aspect (man power planning, recruitment, selection, placement, transfer, promotion, T&D, layoff and retrenchment, remuneration, incentives, productivity) 2. Welfare aspect (working conditions, amenities – canteen, creches, rest and luch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities) 3. Industrial relations aspect (union management relations, joint consultaion, collective bargaining, grievance and disciplenary action, settlement of disputs)

FUNCTIONS OF HRM o o 1. MANAGERIAL FUNCTIONS 2. OPERATIVE FUNCTIONS

Planning 1. MANAGERIAL FUNCTIONS Organising Directing Controlling

Job analysis, HR planning, recruitment, selection, placement, induction, transfer, promotion, separation Procurement OPERATIVE FUNCTIONS Development Compensation Integration Maintenance PA, Trg. , Exe Devt. , career planning and devt. Job evaluation, wage and salary Admn. , bonus and incentives, payroll Motivation, JS, greivance redressal, collective bargaining, Conflict Mgt. , emp participation, discipline Health, safety, social security, Welfare schemes, personnel records, research and audit

EVOLUTION OF HRM o o Mgt. of people in the orgns. –v. old Industrial revolutions in 1850 s in Europe and USA Arthashastra – 320 BC. Beginning of 20 th century. With labour welfare in factories since 1920 s

ERAs 1. 2. 3. 4. 5. 6. 7. Trade union movement era Social responsibility era Scientific management era Human relations era Behavioural science era Systems approach era Contingency approach era

Period Devt. status 1920 -30 s Beginning Outlook Emphasis Pragmatism Statuory, of capitalists welfare, paternalism Introduction of techniques Status Clerical 40 s-60 s Struggling Technical, for legalistic recognition 70 s-80 s Impressing Professional, Regulatory Manager with legalistic, conformance, ial sophisticat impersonal standards on ion functions 1990 s Promising philosophica Human l values, productivity thru people Administ rative executiv e

ENVIRONMENT OF HRM o o o 1. 2. 3. Affects HR activities Two types: internal and external environments INTERNAL ENVIRONEMENT Unions Organisational culture and conflict Professional bodies

o 1. 2. 3. 4. EXTERNAL ENVIRONMENT Economic Political : legislature, executive, judiciary Technological Demographic

Strategic HRM o o o A strategic look at HR functions in line with the business functions of an organisation. 1. analyse the opportunities and threats in the external environement 2. formulate strategies using SWOT 3. Implement 4. evaluate and control activities to ensure the achievement of objectives.

HUMAN RESOURCE POLICIES o o o Policy is a plan of action It is a statement of intention committing the management to a general course of action Expresses the philosophy and principles Different from principle or objective Objective : it is the intention of the company to provide a safe plan and a healthy working condition

o o o But policy statement is very specific. Eg: to institute every practical method for engineering safety into our process and equipment, to provide protective clothing where necessary, to train employees in safe operating procedures. But not to spell out procedure. The procedure is a method for carrying out a policy.

o o o Policy of hiring people Policy on terms and conditions of employment Policy on medical, housing, transport, uniform, allowances, training and development , IR

Formulating policies o 1. 2. 3. 4. 5. 5 sources Past practice Practices in rival coys Attitudes and philosophy of founders and top mgt. Attitudes and philosophy of MM, LM. Knowledge and experience gained

o o Stable, but not rigid. Reflect the goals and values of the organisation. Not isolated one.

Principles o Policy is a guideline and principle is the truth based on research. Principles guide to formulate policies, programmes, procedures and practices.

HR principles are, 1. Principle of individual devt. 2. Principle of scientific selection 3. Principle of free flow of commn. 4. Principle of participation 5. Principle of fair remuneration 6. Principle of incentive 7. Principle of dignity of labour 8. Principle of labour mgt cooperation 9. Principle of team spirit 10. Principle of contribution to national prosperity

HR COMPETENCY MODEL BUSINESS MASTERY • Business acumen • Customer orientation • Knowledge • External relations HR MASTERY • Staffing • PA • Reward sys • Commn. • Orgn. design PERSONAL CREDIBILITY • Competence • Credentials • Trust • Ethical conduct • courage CHANGE MASTERY • IP skills • Problem solving • Reward sys • innovation

Skills of a HR manager o o o technical, cognitive and interpersonal skills commn, empathy, tolerance, pleasant, confident, love Know HR policies, practice Multi-knowledgeable , Play strategic role

HRM MODELS o o Provide analytical framework Legitimise HRM practices Provide characterisation of HRM Serve as heuristic device

4 HRM MODELS 1. 2. 3. 4. Fombrun model Harvard model Guest model Warwick model

1. Fombrun model o Not considered environmental factors HRD Selection Appraisal Reward OE

Harvard model