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Hrm notes 1


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Hrm notes 1

  1. 1. MS.SHAZIA KAZMIHuman Resource ManagementINTRODUCTIONHuman resource (or personnel) management, in the sense of getting things done throughpeople. Its an essential part of every managers responsibilities, but many organizationsfind it advantageous to establish a specialist division (division of work) to provide anexpert service dedicated to ensuring that the human resource function is performedefficiently."People are our most valuable asset" no member of any senior management team woulddisagree with. There are four factors of production i.e land,labour, capital andorganization .in the organization behind every factors of production their is a humanhands involve. That is the reason which direct concern the importance of human in theorganization and for the selecting right person for appropriate work is the major reasonfor establishment of human resource management in the organization.As organizations vary in size, aims, functions, complexity, construction, the physicalnature of their product, and appeal as employers, so do the contributions of humanresource management. But, in most the ultimate aim of the function is to: "ensure that at all times the business is correctly staffed by the right number of peoplewith the skills relevant to the business needs", that is, neither overstaffed nor understaffedin total or in respect of any one discipline or work grade.In order to implement a successful business strategy to face modern constantly changeschallenge, organizations, large or small, must ensure that they have the right peoplecapable of delivering the strategy.The market place for talented, skilled people is competitive and expensive. Taking onnew staff can be disruptive to existing employees. Also, it takes time to develop culturalawareness, product/ process/ organization knowledge and experience for new staffmembers.What Is Human Resource Management?Human Resource Management (HRM) is the function within an organization in whichoverall organizational function depends, HRM working in every step in the organization,bottom till top. HRM focuses on recruitment of, management of, and providing directionfor the people who work in the organization. Human Resource Management can also beperformed by line managers.Human Resource Management is the organizational function that deals with issuesrelated to people such as compensation, hiring, performance management, organizationdevelopment, safety, wellness, benefits, employee motivation, communication,administration, and training.
  2. 2. Human Resource Management HRM is a modern term for what has traditionallybeen referred to as Personnel Management Discuss?Human resource management is just another posh way of describing personnelmanagement.Actually, the etiology of the term Human Resource Management stems from theexpanding duties of the personnel department. Initially, many companies didnt buy into"the needs of a Personnel Department due to the additional costs of retaining such adepartment and the lack of "buy-in" from decision makers.Personnel Management dealt more with the basics of managing people, however ascompanies and educators began to realize the importance of people in the workplace, theyexpanded in realistic as well as philosophical terms, the job descriptions of PersonnelManagement. Eventually, this developed into HRM and now HRM takes a more holisticapproach to managing people such as the mind, body and spirit.Functional overview and strategy for HRMHRM of the organization. Their skills, abilities and expectations will influence howfar authority is decentralized (giving them more responsibility) and how work isorganized (facilitating team-working or utilizing multi-skilled workers,)These issues motivate a well thought out human resource management strategy, with theprecision and detail of say a marketing strategy. Failure in not having a carefully craftedhuman resources management strategy, can and probably will lead to failures in thebusiness process itself.This set of resources are offered to promote thought, stimulate discussion, diagnose theorganizational environment and develop a sound human resource management strategyfor your organization.OBJECTIVE OF HRM:The common objective to Human Resource Management can be identified in fourcategories: • Societal Objective-must understand the legal obligation- rules and regulation in the society, Benefits-Union management relation etc. • Organizational Objective-Goal of organization- Human resource planning- development and training- employees relation –Appraisal (to check individual performance) etc. • Functional objective- processing -Assessment- Appraisal-planning and policy to achieve Organizational objective- Appraisal etc. • Personal objective-Training and development of employees-compensation – allowances and fringes benefits-Appraisal etc.
  3. 3. Historical background:The modern concept of human resource management finds its roots in the early 20th centurynotion of employee welfare. The large factories that evolved in the United States in the late19th and early 20th centuries presented managers with major problems of workforce control.The large scale use of immigrant labour combined with the traditional factory organisation ofsub-contracting to produce workplaces that had essentially become uncontrolled in anycentralised sense of the word. Part of the solution to the problem of re-establishingmanagement control on the factory floor was found in the development of ScientificManagement or Taylorism as it came to be known after its founder, Frederick Taylor (Taylor,1911). Although usually thought of today as a prescription for the standardised method ofwork organisation epitomised in the factory assembly line, Taylor actually devised his systemin order to establish the leading role of managers in the control of organisations. Taylorism isan early form of human resource management. It embodies the controlling role of managerswho need to have full access to information held by workers on the best methods of carryingout their tasks and it advocates a major emphasis on the selection of the right person for thejob, proper training to enable workers to gain the skills they require and good rates of pay tooffset the boredom of working in a fragmented and high performance work environment. Onemight be forgiven for thinking that these rules had been devised for modern call centres, anexample of a contemporary workplace which embodies one of the oldest forms ofmanagement control.Taylorism was, of course, most famously implemented by Henry Ford in his North Americanautomotive plants. Ford is probably best remembered by students of work organisation as theinventor or populariser of the moving assembly line for the production of cars. Because ofFord’s innovative combination of Taylorism as a form of management control and theprocess technology of the assembly line his name became permanently associated with thedominant 20th century form of work organisation, Fordism (Mathews, 1990). In Ford’s largerplants he established “sociology” departments, precursors of the later “employee welfare”departments. The officers employed in the sociology departments pried into the private livesof Ford’s employees to ensure that no aspects of employees’ personal lives affected theirperformance at work. In many cases, this involved Ford in the active welfare of employeesand helping them in personal and family matters. In this respect, modern human resourcemanagement emerged from the concerns of larger employers with the welfare andperformance of their workers.From its employee welfare roots, “personnel management” spread within the USA and laterinto Europe and an increasing number of issues concerned with the management of people inorganisations came to find a home in the personnel departments of the mid-20th century. Bythe 1960s, the notion of personnel management had become well-established with a numberof clear areas of responsibility attached to it including: • Selection and recruitment • Training and development • Pay and conditions • Industrial relations • Employee welfare • Occupational health and safety.Modern HRM
  4. 4. In the 1980s, the concept of human resource management began to gain ground at theexpense of personnel management (Storey, 2001). At the root of the new thinking about themanagement of people in organisations was the perception of the increasing competitivenessof the global economy (Best, 1990). The success of large corporations emphasize theimportance of effective people management in the competitive strategies The key to thissuccess lay in the human resource management practices include:• Strict and rigorous selection and recruitment• High level of training, especially induction training and on the job training• Team working• multiskilling• Better management-worker communications• Use of quality circles and an emphasis on right first time quality• Encouragement of employee suggestions and innovation• Single status symbols such as common canteens and corporate uniforms.The integration of these human resource management practices was to create anorganisational culture that allowed workers to identify their own success with that of thecorporation. Thus, organisational or corporate culture became an important element inunderstanding the competitive success of firms and was a major theme of managementthinking in the early 1980s (Peters and Waterman, 1982). Management practice Control CommitmentJob design Focused on the individual Focused on the teamPerformance management Measured standards for Higher “stretch” objectives minimum performanceManagement structure Top down and hierarchical. Flat organisation structure. Emphasis on management Minimum status differentials symbolsCompensation Individual pay linked to job Pay linked to skills and evaluation masteryEmployment Employees viewed as variable Assurances that participation cost will not result in job lossesEmployee voice Employee input allowed on a Employee participation narrow agenda. enacted on a wide range of issuesLabour management relations Adversarial labour relations Mutuality with joint planning and problem solvingThe rise of modern human resource management is more than just a change in terminologyfrom personnel management to human resource managementA central feature of modern human resource management is the idea of engaging thecommitment of employees with the goals of the organisation. This means that humanresource management is not just about administering people but also about shaping theculture of the organisation.This means that human resource management is literally too important to be left only tohuman resource managers. Engaging the commitment of employees and shaping culturerequire the active participation and leadership of line managers.It also means that human resource management has to relate very closely to the notion ofworkforce capability, the issue of the ageing of the workforce and the issue of enhancing thevocational competence of the workforce are key strategic human resource managementissues. These issues call for a high level strategic response, which is what human resourcemanagement is focused on.