DEFINITIONSMANAGEMENT – Effective utilization of human resources for the achievement of organizational objectives thru the combined efforts of human resources that technological, financial, physical and all other resources are utilized.HUMAN RESOURCES – Defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organizations workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization.
HUMAN RESOURCE MANAGEMENTHRM is an integral but distinctive part of management, concerned with people at work and their relationship within the enterprise.HRM can be defined as managing (planning, organising, directing, controlling) the functions of employing , developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately to the organisational, individual and social goals.
SIMILAR TERMSLabour ManagementLabour AdministrationPersonnel ManagementPersonnel AdministrationHuman Capital ManagementHuman Asset ManagementEmployment AdministrationEmployee-Employer RelationsUnion Management RelationsIndustrial Relations
NATURE OF HRMComprehensive Function – Concerned with all types of people inside the organizationPeople Oriented – Dealing with human relationships within an organisationAction Oriented – Actions rather than procedures and records – Solution of personnel problems to achieve both organisational and personal goals.Individual Oriented – Provide services and programmes to facilitate employee satisfaction and growth.Development Oriented – Developing the potential of employees to achieve maximum.
• Pervasive Function – Inherent in all organisations and atall levels• Continuous Function – On going or never ending exerciserather than a one shot function.• Future Oriented – Concerned with helping an organisationto achieve its objectives in the future.• Challenging Function – Due to dynamic nature of people’semotions and they can’t be treated like machines• Science as well as Art – Science –Tools, Principles and
• Staff Function – Advisory or Directing or monitoringFunction•Young Discipline – Started in the last part of 19thcentury.Relatively new specialized area as compared tomanufacturing and marketing.•Interdisciplinary – Involves application of knowledgedrawn from Sociology, Psychology and Economics.•Nervous System – Intimately associated with everymovement inside the organisation
EVOLUTION OF HRMIndustrial RevolutionTrade UnionismSocial responsibility eraScientific Management EraHuman Relations EraBehavioural Science EraSystem Approach EraContingency Approach Era
Industrial revolution The seed of HRM were sown during Industrial revolution 1850’s in Western Europe and USA.The wind gradually reached to India in beginning of 20th century.During this period:-Machines were bought inTechnology made rapid progressWorkers were treated like machine toolsEmployers were keen to meet production targets rather than satisfy workers.Govt. did very little to protect the interests of workers.
TRADE UNIONISM This was the period when state intervention to protect the worker’s interest was felt necessary. During this period:-Workers started to form their associations.Trade Union Act, 1926 was passed in India. The basic philosophy was to safeguard worker’s interest and to sort out their problems like:-Child labourLong hours of workPoor working conditions.
SOCIAL RESPONSIBILITY ERA Robert Owen,a British industrialist is considered to be the first to adopt humanistic and paternalistic approach. He viewed that the social and economic environment influence the physical , mental and psychological development of workers.He practised the following :Provision for reduced working hoursHousing facilitiesEducation of workers and their childrenHe admired for giving human treatment to workers.
Scientific Management era:- This concept was introduced by Fredrick Winslow Taylor in USA early in 20th century. he developed following four principles:-Use of scientific methods in setting work stds.Scientific selection and placement of workers best suited for the tasks. Also provision for training.Clear cut division of work and responsibility between management and workers.Harmonious relations and close cooperation with workers.
He developed following techniques for the same:Time study and Motion Study – Precise time taken for each correct motionStandardization of tools, equipments and machinery and working conditions incentive wage plan with differential piece rate of wages.
HUMAN RELATIONS ERAThis particular period focused on thefeelings,attitude and needs of the workers ashuman beings.Between 1925 and 1935 HugoMunsterberg, a psychologist suggested the use ofpsychology in selection, placement, testing andtraining the employees in an organisation.
Between 1924 to 1932,Elton Mayo conducteda series of experiments at hawthorne plant ofwestern electric company in USA.Main findings were:-Physical environment should be goodFavourable attitudes of workers and work team towards their workFulfillment of worker’s social and psychological needsWorkers can be motivated through job security,right to express their opinion on matters related to them.
BEHAVIORAL SCIENCE ERA It was concerned with social and psychological aspects of human behaviour. Some of imp elements were:-Individual behaviour is linked with group behaviourInformal leadership rather than formal leadershipMotivation by self control and self developmentImproving efficiency through Self operating
SYSTEMS APPROACH ERATechnical subsystem : formal relationships.Social subsystem : informal group relationsPower subsystem : exercise of power
CONTINGENCY APPROACH ERA• According to contingency,the best way to manage varies with situation.• There may not be the universal way of managing all the situations.• It is imperative for managers to analyse different situations and then use the best suitable in that particular situation.
OBJECTIVES OF HRM1. To create and utilize an able and motivated workforce, toaccomplish the basic organizational goals.2. To establish and maintain sound organizationalstructure and desirable working relationships among allthe members of the organization.3. To secure the integration of individual or groups withinthe organization by co-ordination of the individual andgroup goals with those of the organization.4. To create facilities and opportunities for individual orgroup development so as to match it with the growth ofthe organization
5. To attain an effective utilization of human resources inthe achievement of organizational goals.6. To identify and satisfy individual and group needs byproviding adequate and equitable wages, incentives,employee benefits and social security and measures forchallenging work, prestige, recognition, security, status.7. To maintain high employees morale and sound humanrelations by sustaining and improving the variousconditions and facilities.8. To strengthen and appreciate the human assetscontinuously by providing training and developmentprograms.
9. To consider and contribute to the minimization ofsocio-economic evils such as unemployment, under-employment, inequalities in the distribution of incomeand wealth and to improve the welfare of the society byproviding employment opportunities to women anddisadvantaged sections of the society.10. To provide an opportunity for expression and voicemanagement.11. To provide fair, acceptable and efficient leadership.12. To provide facilities and conditions of work andcreation of favorable atmosphere for maintaining stabilityof employment.
FUNCTIONS OF HRMMANAGERIAL FUNCTIONSPlanning – Formulating the future course of actionOrganising – Establishing an intentional structure of roles for people in an orgn such as chain of command, division of labour, assignment of responsibilities.Staffing – Obtaining and maintaining capable and competent personnel.Directing – Coordinating and motivating towards organisational objectivesControlling – Measurement and rectification of activities
Operative Functions Of HRMEmployment – Involves procuring & employing individuals with suitable knowledge, skills & expHuman Resource Development – Process of training and developing employees to improve and update their knowledge and skillsCompensation Management – Includes all the extrinsic rewards that an employee receives during and after the course of his jobEmployee Relations – deals with employees in the organisational context , as a social group that contributes to the orgn.
EMPLOYMENTHuman Resource Planning – Forecasting the human resource requirementsRecruitment – process of seeking and attracting prospective candidates against a vacancy in an orgnSelection – choose the right candidate for a jobPlacement – Selected candidate conveys his acceptance of the offer of employment made by the orgnInduction – Introducing a new employee to the orgn, its business, culture,values, practices and procedures
HUMAN RESOURCE DEVELOPMENTPerformance Appraisal – Process of evaluating the performance of an employee on the job & developing a plan for improvementTraining – Systematic development of knowledge, skills, attitudes required to perform a given task successfully.Management Development – developing the employees of an orgn to meet future changes and challengesCareer Planning & Development – Identifying one’s career goals & formulating plans of reaching them thru education, work exp.Organisation Changes & Organisation Development
COMPENSATION MANAGEMENTJob Evaluation – Systematic determination of the value of each job in relation to other jobs in the orgn, industry & market.Wage and Salary Administration - Process of formulating and operating a suitable wage and salary programFringe Benefits – Monetary & Non-Monetary benefits given to employees during their employment & post employment period.
SOME OF THE FRINGE BENEFITSDisablement BenefitsHousing FacilitiesCanteen FacilitiesConveyance FacilitiesEducational facilities for employees and their childrenCredit FacilitiesRecreational FacilitiesMedical & Welfare FacilitiesPost Retirement Benefits
IMPORTANCE OF HRMSIGNIFICANCE FOR AN ENTERPRISEAttracting and retaining the required talent thru effective HRP, recruitment, selection, placement, orientation, compensation and promotion policies.Developing the necessary skills & right attitude among the employees thru training, development and performance appraisalSecuring the willing cooperation of all employees thru motivation, grievance handling.Utilising effectively the available human resources
PROFESSIONAL SIGNIFICANCEProviding maximum opportunities for personal development of each employee.Maintaining healthy relationships between individuals, and different work groups.Allocating work properly.
SOCIAL SIGNIFICANCEProviding suitable employment that provides social and psychological satisfaction to employeesMaintaining a balance between the jobs available and the job seekers in terms of numbers, qualifications, needs and aptitudesEliminating wastage of human resources thru conservation of physical and mental health.
ROLE OF HR MANAGER Service Provider - Providing info to individual employees, Depts or groups and also to the top mgmt Executive – to carry out recruitment, compensation, etc Facilitator – To coordinate and facilitate the resources to the employees Consultant – Motivation, Training, Grievance Handling Auditor – Ensuring that all members of the mgmt perform their respective roles
HUMAN RESOURCE POLICIESPolicies are plans of action.Organizations need to evolve HR policies as they ensure consistency and uniformity in treating people. They help, motivate, and build loyaltyPolicies become benchmarks to compare and evaluate performance.
BENEFITS OF HR POLICIESThe work involved in formulating personnel policies requires that the mgmt give deep thought to the basic needs of both the orgn and the employees.Favoritism and discrimination are thereby minimisedPolicies serve as a standard of performanceSound policies help build employee motivation and loyaltySound policies help resolve intrapersonal, interpersonal and intergroup conflicts.
5 PRINCIPAL SOURCES FOR DETERMINING THE CONTENT & MEANING OF POLICIESPast practice in the organisationPrevailing practice in rival companiesAttitudes and philosophy of founders of the company and top managementAttitudes and philosophy of middle and lower managementThe knowledge and experience gained from handling countless personnel problems on a day-to-day basis
PERSONNEL PRINCIPLES –Fundamental truth established by research, investigation and analysisPrinciple of individual developmentPrinciple of scientific selectionPrinciple of free flow of communicationPrinciple of participationPrinciple of fair remunerationPrinciple of incentivePrinciple of dignity of labourPrinciple of labour management cooperationPrinciple team spiritPrinciple of contribution to national prosperity
HRIS – HUMAN RESOURCE INFORMATION SYSTEM Systematic way of storing data andinformation for each individual employee to aidplanning, decision making, and submitting of returnand reports to the external agencies
PURPOSE OF HRISStoring info and data for each individual employee for future referenceProviding a basis for planning, organizing, decision making, controlling and other HR functionsMeeting daily transactional requirements such as marking present/absent, and granting leave.Supplying data and submitting returns to govt. and other statutory agencies
APPLICATIONSPERSONNEL ADMINISTRATION Encompass info about each employee such as name, address, date of birth, date of joining and info about family.SALARY ADMINISTRATION The report should give the details of present salary, last increase, and the proposed increaseLEAVE AND ABSENCE RECORDING A fundamental aspect of leave management is to maintain a complete leave history for each employee with the ability to increase entitlement according to leave rules.
SKILL INVENTORY This will provide the opportunity to identify employees with the necessary skills for certain positions or job functionsMEDICAL HISTORY To record occupational health data required for industrial safety purposes, accident monitoring , exposure to potentially hazardous materials and so on.ACCIDENT MONITORING Details of the accidents and a list of injured employees
PERFORMANCE APPRAISAL Individual employee performance appraisal data such as the due date of the appraisal , scores for each performance criteria , potential for promotion, and other info to form a comprehensive overview of each employeeTRAINING AND DEVELOPMENT Training and development needs of an employee, with the ability to record and enquire on courses completed and any projected training coursesHUMAN RESOURCE PLANNING Record details of the organisational requirements in terms of positions
RECRUITMENT Recording details of recruitment activity such as the cost and method of recruitment, and the time taken to fill the position can be used to provide a picture of the cost of recruitment in terms of time as well as cost.CAREER PLANNING The system must be capable of providing succession plans to identify which employees have been earmarked for which positions
STEPS IN IMPLEMENTING HRISINCEPTION OF IDEA – where and why we need HRISFEASIBILITY STUDY – Present system should be studied to highlight the problem areas and the likely benefits of HRISSELECTING A PROJECT TEAMDEFINING THE REQUIREMENTSVENDOR ANALYSISCONTRACT NEGOTIATIONSTRAININGTAILORING THE SYSTEM – Making necessary changes to best fit the organisational needsCOLLECTING DATATESTING THE SYSTEMSTARTING UPMAINTENANCEAUDIT
ADVANTAGES OF HRISHigher speed of retrieval and processing of dataEase in classifying and reclassifying dataBetter analysis leading to more effective decision makingHigher accuracy of info /report generatedFast response to answer queriesImproved quality of reportsBetter work cultureEstablishment of steamlined and systematic proceduresMore transparency in the system
LIMITATIONS OF HRISExpensive in terms of finance and manpower requirementsIt can be threatening and inconvenient to those who are not comfortable with computers.Computers cannot substitute human being. Human intervention will always be necessary
COMPUTER APPLICATIONS IN HRMMANAGEMENT INFORMATION SYSTEM(MIS) A wide variety of info needs of a business are recognised and interconnected with subsystemsELECTRONIC DATA INTERCHANGE(EDI) A computer is an electronic tool used to collect, organise, analyse, interpret and communicate vast amount of info with great speed. Electronic data interchange facilitate the speedy, secured and accurate transfer of documents across the globe
E-BUSINESSE-Business is about using the convenience, availability and worldwide reach to enhance existing business or creating new virtual businessE-Business combines the traditional information system with the vast reach of the web and connects critical business systems directly to critical business constituencies viz., production, marketing, finance, customers, suppliers and employees via internets, extranets and the world wide web
E- HRMElectronic aspect is embodied in all the areas of HRM where there is transmission of information from one employee to another employee and from one client to anotherBoth internally and the processed form are highly essentials in most of the functions and activities of HRM.
The important aspects of E-HRM areE-Job Design and Job AnalysisE – Human Resource PlanningE-RecruitmentE – SelectionE-Performance ManagementE-Training & DevelopmentE – Compensation ManagementE – Grievance RedressalE – HR RecordsE – HR InformationE – HR Audit
E – JOB DESIGN AND JOB ANALYSISThe information of listing skills and competencymapping are placed on the net. Then the system matches the listing skills andcompetency mapping and produces the output ofidentifying the employee suitable for a particular task.
E-HUMAN RESOURCE PLANNINGComputer Programs are developed and used extensively for the purpose of planning human resource requirements based on the data and the informationThese programmes indicate the number of employees required at each level for each category of the jobs based on sales and production forecasts.
E - RECRUITMENTOrganisations advertise job vacancies thru the World Wide Web(WWW)or send the info directly to the most competent people thru e-mailThe job seekers send their applications thru e-mail using internet.Alternatively job seekers place their CV’s in the World Wide Web(WWW)thru various jobsites
E - SELECTIONE – Selection has become popular with the conduct of various tests thru online, contacting the candidates thru e-mail and conducting the preliminary interviews and final interview thru audio and video conferencing
E – PERFORMANCE MANAGEMENTThe software on employee performance appraisal provides a number of statements and sub statements on each of the performance categories.The appraiser selects and clicks the appropriate rating for each statement. The system generates a detailed report by the time the appraiser has moved all the performance categories and sub factorsThe report modified, comments can be added or deleted by the appraiser and a final report can be prepared by the manager
E – TRAINING AND DEVELOPMENTCompanies started providing online training and online executive development. Employees learn various skills by staying at the place of their work. Participants complete course work from wherever they have access to a computer and an internetE – Learning is enabled by the delivery of content via all electronic media, including the internet, intranet, satellite broadcast audio/video tape, interactive TV and CD-ROM
E – COMPENSATION MANAGEMENTAlmost all the organisations started using computers for salary fixation, salary payment, salary calculations, fixation and calculation of various allowances , employee benefits, welfare measures and fringe benefits
E – GRIEVANCE REDRESSALEmployees send their grievance via e-mail to the superior concerned who in turn solves the problems / redress grievances and communicates the same to the employee. This reduces the time in the process and avoids face to face interaction
E – HR RECORDSHR records are created, maintained and updated with thehelp of computers easily and at a first rate. E – HR INFORMATIONHR info is generated, maintained , processed andtransmitted to the appropriate places or clients with thehelp of software with high speed and accuracy.
E – HR AUDITThe standard human resource practices or the desired HR practices are fed into the computer. The data and info regarding the actual practices are also fed into the computerThe software automatically completes the HR audit and produces the audit report. The HR manager then can modify the report by deleting or adding any comments.