“ Human ” represents the dimension of HRM which relates to the soft aspects such as commitment of employees through participation and the most important assets being the employees.
“ Resource ” represents the hard aspects such as the strategy link of HRM and the importance of efficient utilization of employees.
“ Management ” represents the role of HRM as part of management that implies that it’s not only an administrative function that carries out the formulated policies but also a managerial function that contributes to strategy formulation.
5 September 10, 2005 Published by lecturesheet.iiuc28a9.com
6 Human Resource Management HRM is the part of the organization that is concerned with the 'people' dimension. HRM deals with human relations of an organization starting from recruitment to Labor relation. HRM is concerned with the people dimension of management. It is a process of acquisition, development, motivation, and maintenance of human resources of an organization. HRM is a part of General Management that deals with the human aspect. September 10, 2005 Published by lecturesheet.iiuc28a9.com
7 Many authors defines it is different manner. Some of them are quoted below: According to M.J. Jucious, "The field of HRM involves Planning, Organization, Directing and Controlling functions of procuring, developing, maintaining and utilizing a labor force." According to Dale Yoder, "HRM is the provision of leadership and direction of people in their working or employment relationship." According to Mathis and Jackson, "HRM is the effective use of Human resources in and organization through the management of people related activities." Every organization is comprised of people Acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieving organization objectives. This is true regardless of the type of organization Government, business, education, health, recreation or social action. Getting and keeping good people is critical to the success of every organization. September 10, 2005 Published by lecturesheet.iiuc28a9.com
HRM is an approach consisting of four basic functions: (1)Acquisition-Getting people (2)Training and development- Preparing them (3)Motivation- Stimulating them (4)Maintenance- Keeping them Functions of HRM: Human resource function refers to those tasks and duties performed in both large and small organization to provide for and co ordinate human resources. Human resource function are concerned with a variety of activities that significantly influence all areas of an organization, and include followings: 8 September 10, 2005 Published by lecturesheet.iiuc28a9.com
9 The Four basic Function of HRM are: (1). Acquisition of human resources (Getting people) (2) Development of human resources (Preparing people) (3) Motivation of human resources (Stimulating people) (4) Maintenance of human resources (Keeping them) September 10, 2005 Published by lecturesheet.iiuc28a9.com
(1)Acquisition of human resources: There are two steps involved in acquisition process: a)Recruitment: Recruitment is a process by which organizations locate and attract individuals to fill job vacancies. b)Selection: Selection is a process of measurement, decision making and evaluation. (2) Development of human resources: After selecting and recruiting individuals in the right position of the organization the next function is to train and develop them, so that they can become efficient employees and work toward the achievement of the organization goal. 10 September 10, 2005 Published by lecturesheet.iiuc28a9.com
(3) Motivation of human resources: The motivation function is one of the most important functions. After training and developing the employees the HR manager should stimulate them to work well. For motivation purpose the H.R manager have to give the employees some compensation and benefit package. (4) Maintenance of human resources: The last phase of the H.R.M. function is called the Maintenance function. For maintaining the people H.R.M should go for some method of providing a safe and healthy work place. Labour relation & collective Bargaining. 11 September 10, 2005 Published by lecturesheet.iiuc28a9.com
FIGURE 1: HRM Components 12 September 10, 2005 Published by lecturesheet.iiuc28a9.com
Several other functions are performed by H.R.M. These functions are stated below: 1) Formulation of H.R. Policies: H.R manager should plan appropriate human resource policy in the organization and try to formulate it. 2) Procurement and selection of efficient employees: 3) Guidance and placement: 4) Training and development: After recruiting and placing the employees in the right place the next step is to train and develop the Human Resources collected recently. There are different method of training and development. "Training and Development means changing what employees know, how they work, their attitudes toward their work, or their interaction with their co workers or supervisors. 5) Promotion and Transfer: It is an incentive for the employees & necessary for the organizational improvement. 13 September 10, 2005 Published by lecturesheet.iiuc28a9.com
6) Job Analysis: Job Analysis is a systematic exploration of the activities within a job. it is a technical procedure used to define the duties, responsibilities and accountabilities; of a job. this analysis involves the identification and description of what is happening on the job. 7) Maintenance of working environment: Maintenance of working environment is a must for every organization. Maintaining a healthy work environment not only a proper thing to do but it also benefits the employer, like increase in productivity, increase positive attitude towards their organization. 8) Protection of Employees: Employees should be well protected. Without safety measure the human resources of the organization will not perform well/properly. Although safety is everyone's responsibility, it should be part of the organizations culture; Top Mgt. must show its commitments to safety by providing resources to purchase safety devices and maintaining equipment. 9) Remuneration: Workers come to work in the organization for getting remuneration. Without remuneration Human resources cannot work. The human resources should be given provided reasonable remuneration to work properly. 10) Employee services: They will be given service 'packages to work properly. 11) Job and Merit evaluation: Without job evaluation efficiency cannot be judged. September 10, 2005 Published by lecturesheet.iiuc28a9.com
12) Labor management relation: There is a need for good and harmonious employer employee relation. Historically the relationship between labor and Mgt. was built on conflict. There are various reasons for bad human relations and number of ways to increase it. We should try to decrease the bad human relation and increase good human relation. 13) Workers Participation: Present age is democratic. Workers participation is an essential condition for taking decision and formulating rules and regulations. Because workers are the only source of energy for implementing organizational policies and operating machines and equipment and achieve organizational goal. 14) Agreement with Trade Unions: T.U. is very powerful in the industrial context. Without satisfying the T.U. leaders the H.R. managers cannot run the org. properly. That is why acceptable agreement with the T.U. leaders is needed. 15) Leadership and co operation: Without good leader an org. cannot run properly. It should be guided for ensuring co operation. Without co operation a leader cannot proper utilize the resources easily. 16) Providing benefits and rewards': For getting cooperation from the Human resources the H.R. managers should provide them benefit packages and benefits. Slide#11 1 September 10, 2005 Published by lecturesheet.iiuc28a9.com
17) Maintaining discipline: Discipline is essential for and organization to work properly. H.R.M. manager .should take proper disciplinary action indiscriminately when indiscipline arises. 18) Career Planning and Development: H.R. Manager should try to plan for the development of career of its H.R's. Career means the pattern of work related experiences than span the course of a personal life. Career development looks at the long term career effectiveness and success of organizational personnel. 19) Handling Grievances: HR managers should handle all source of grievance placed before them fact fully and carefully. Indiscipline and unrest may be corrected. 20) Reviewing employee needs: HR managers must monitor the employee needs time to time and try to satisfy the needs of employees. Slide#12 1 September 10, 2005 Published by lecturesheet.iiuc28a9.com
Importance of HRM: There are some points of importance of HRM in an organization, which is stated below: 1) Formulation of HR policies 2) Implementation of HR Policies 3) Review of employee needs 4) Development of social welfare 5) Utilization of Human Resources 6) Development of Labor Management Relation. 7) Overall development of organization Slide#13 1 September 10, 2005 Published by lecturesheet.iiuc28a9.com
A Definition of Personnel Management Managing personnel is the process of making sure the employees (not the customers) are as productive as they can be. This can include hiring, firing, or transferring people to/from jobs they can do most productively. September 10, 2005 Published by lecturesheet.iiuc28a9.com
A Definition of HRM? Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques (Storey J., Human Resource Management - A Critical Text) September 10, 2005 Published by lecturesheet.iiuc28a9.com
HRM Model: In recent years there has been relative agreement among HRM specialists as to what constitutes the fields of HRM. The model that provided the focus was developed by the American Society for Training and Development (ASTD). In its study, ASTD identified nine human resource areas: 1. Training and Development 2. Organization and Development 3. Organization/Job Design 4. Human Resource Planning 5. Selection and Staffing 6. Personnel Research and Information Systems 7. Compensation/Benefits 8. Employee Assistance 9. Union/Labor Relations These nine areas have been termed spokes of the wheel in that each area impacts on the human resource outputs: quality of work life, productivity, and readiness for change. Figure 2 is a representation of this model, and the focus of each spoke. The outputs of this model-quality of work like, productivity, and readiness for change-warrant further exploration. Let us now take a closer look at each. Slide#14 1 September 10, 2005 Published by lecturesheet.iiuc28a9.com
Slide#15 Figure 2: Human Resource Wheel 1 September 10, 2005 Published by lecturesheet.iiuc28a9.com
Quality of Work life : Quality Of Work Life is a multifaceted concept.The premise of quality of work life is having a work environment where an employees activities become more important. This means implementing policies and procedures that make the work less routine and more rewarding for the employee. This policy or procedure includes autonomy, recognition, belonging, progress and development and external rewards
September 10, 2005 Published by lecturesheet.iiuc28a9.com
Productivity : Productivity is the quantity or volume of the major product or service that an organization provides. In other words it is the amount of work that is being produced in the organization in terms of how much and how well. High productivity is what makes an organization thrive.
Readiness for change : Change is a fact of life in both our private and work life. At the work sight we must be aware that change will occur. The change might be subtle, such as getting a new boss. Or it might be a major endeavor such as installing a computerized system, for the first time. To reduce the fair associated with change, Training is very important
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The objective of HRM: Following objectives are important which can be discussed in short. With the fulfillments of these objectives HRM can become successful: 1) To develop efficiency and skills of employees : First objective of HRM is to develop efficiency and skills of employees working in the organization. If these objectives are achieved organization can reach at its target. 2) To ensure effective Performance of employees : Effective performance of employees can be ensured by HRM. Effective performance at all levels can help the organization to obtain productivity target. 3) To Change the behavior of Employees : With a view to change behavior of employees HRM activities can be performed. Behavior change can ensure to reduce resistance to change. 4) To Train up Subordinates : The fourth objective of HRM is to train up subordinates for effective performance. There may be different methods of training employees. 5) To Increase Job Satisfaction : Job satisfaction is essential for proper performance and goods LMR, therefore HRM tries to achieve Job Satisfaction level. Slide#16 1 September 10, 2005 Published by lecturesheet.iiuc28a9.com
6) To Attract good people: Without attracting good people organization cannot run smoothly or organization can't cope with the competition. Therefore HRM wants to attract good people for the organization. 7) To make effectiveness: To make all organization programs an effective, 'HRM’ acts restless. And for thus all policies are formulated accurately. 8) To procure good people: HRM determines its objectives, because without good people organization cannot run. 9 ) To use of Human Resources: The organization can best try to give them proper assignment and make sure that everything has been done timely. 10 ) To Co ordination of different sections : Co ordination among different sections of the Organization, HRM can set its objective and get objective fulfilled. 11) To develop working conditions : Another objective of HRM is developing working conditions of the Organization. Because without these performance quality and Target cannot be achieved. Slide#17 1 September 10, 2005 Md. Zahid Hossain Bhuiyan, Lecturer in Management, IIUC-DC
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. Example - Legal compliance, union management, benefits
Organizational Objectives : To recognize the role of HRM in bringing about organizational objectives. Example-HRP, Employee relation, Selection, TRD, PA etc
Functional Objectives : To maintain the department’s contribution at a level appropriate to the organization’s needs. Ex-Recruitment, selection, PA etc
Personal Objectives : To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organization. Ex-TRD, Placement, compensation, assessment
September 10, 2005 Md. Zahid Hossain Bhuiyan, Lecturer in Management, IIUC-DC
Work Culture: Due to acquisition and mergers taking place it becomes important for the HR Manager to develop the work culture
Stress and Conflict: Long working hours, target pressures, high competition etc adds stress and conflicts in the Organization. It is the duty of an HR Manager to have proper responses to the stress and conflict before it causes damage to someone’s' personality. It’s a challenge.
Restructuring Organization: As the trend is changing, Manager’s needs to develop a new organizational structure that enables a more efficient and flexible operation and serves better its businesslike activities in the future.
Globalization: Companies are going global due to which the workforce diversity is increasing. Managing these people with different religious, cultural, moral background is a challenging task for the HR Managers in 21st Century.
September 10, 2005 Md. Zahid Hossain Bhuiyan, Lecturer in Management, IIUC-DC