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Professional Knowledge for Specialist Officer - Human Resource (Human Resource Management)

Introduction

Human Resource Management (HRM) is a relatively new approach to managing people in any organization . People are considered the key resource in this approach. it is concerned with the people dimension in management of an organization . Since an organization is a body of people, their acquisition, development of skills, motivation for higher levels of attainments, as well as ensuring maintenance of their level of commitment are all significant activities. These activities fall in the domain of HRM.

Human Resource Management is a process, which consists of four main activities, namely, acquisition, development, motivation, as well as maintenance of human resources.

Scott, Clothier and Spriegel have defined Human Resource Management as that branch of management which is responsible on a staff basis for concentrating on those aspects of operations which are primarily concerned with the relationship of management to employees and employees to employees and with the development of the individual and the group.

Human Resource Management is responsible for maintaining good human relations in the organization. It is also concerned with development of individuals and achieving integration of goals of the organization and those of the individuals.

Northcott considers human resource management as an extension of general management, that of prompting and stimulating every employee to make his fullest contribution to the purpose of a business. Human resource management is not something that could be separated from the basic managerial function. It is a major component of the broader managerial function.

French Wendell, defines “Human resource management as the recruitment, selection, development, utilisation, compensation and motivation of human resources by the organization”.

According to Edwin B. Flippo, “Human resource management is the planning, organizing, directing and controlling of the procurement, development, resources to the end that individual and societal objectives are accomplished”. This definition reveals that human resource (HR) management is that aspect of management, which deals with the planning, organizing, directing and controlling the personnel functions of the enterprise.

Nature of Human Resource Management

The emergence of human resource management can be attributed to the writings of the human relationists who attached great significance to the human factor. Lawrence Appley remarked, “Management is personnel administration”. This view is partially true as management is concerned with the efficient and effective use of both human as well as non-human resources. Thus human resource management is only a part of the management process.

At the same time, it must be recognised that human resource management is inherent in the process of management. This function is performed by all the managers.

A manager to get the best of his people, must undertake the basic responsibility of selecting people who will work under him and to help develop, motivate and guide them. However, he can take the help of the specialized services of the personnel department in discharging this responsibility.

The nature of the human resource management has been highlighted in its following features :

1. Inherent Part of Management: Human resource management is inherent in the process of management. This function is performed by all the managers throughout the organization rather that by the personnel department only. If a manager is to get the best of his people, he must undertake the basic responsibility of selecting people who will work under him

2. Pervasive Function: Human Resource Management is a pervasive function of management. It is performed by all managers at various levels in the organization

• It is not a responsibility that a manager can leave completely to someone else. However, he may secure advice and help in managing people from experts who have special competence in personnel management and industrial relations.

3. Basic to all Functional Areas: Human Resource Management permeates all the functional area of management such as production management, financial management, and marketing management. That is every manager from top to bottom, working in any department has to perform the personnel functions.

4. People Centered: Human Resource Management is people centered and is relevant in all types of organization s. It is concerned with all categories of personnel from top to the bottom of the organization . The broad classification of personnel in an industrial enterprise may be as follows: (i) Blue-collar workers (i.e. those working on machines and engaged in loading, unloading etc.) and white-collar workers (i.e. clerical employees), (ii) Managerial and non-managerial personnel, (iii) Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.) and non-professional personnel.

5. Personnel Activities or Functions: Human Resource Management involves several functions concerned with the management of people at work. It includes manpower planning, employment, placement, training, appraisal and compensation of employees. For the performance of these activities efficiently, a separate department known as Personnel Department is created in most of the organization s.

6. Continuous Process: Human Resource Management is not a ‘one shot’ function. It must be performed continuously if the organization al objectives are to be achieved smoothly.

7. Based on Human Relations: Human Resource Management is concerned with the motivation of human resources in the organization . The human beings can’t be dealt with like physical factors of production. Every person has different needs, perceptions and expectations. The managers should give due attention to these factors. They require human relations skills to deal with the people at work. Human relations skills are also required in training performance appraisal, transfer and promotion of subordinates.

Personnel Management VS Human Resource Management

Contemporary Human Resource Management, as a part and parcel of management function, underscores strategic approach to management in areas of acquisition, motivation, and management of people at work.
Human Resource Management derives its origin from the practices of the earlier personnel management, which assisted in the management of people in an organization setup. Human Resource Management leverages setting up the systems and procedures for ensuring efficiency, controlling and providing equality of opportunities for all working for the organization .

Human Resource Management (HRM) differs from Personnel Management (PM) both in scope and orientation. HRM views people as an important source or asset to be used for the benefit of organization s, employees and society.

It is emerging as a distinct philosophy of management aiming at policies that promote mutuality-mutual goals, mutual respect, mutual rewards and mutual responsibilities. The belief is that policies of mutuality will elicit commitment, which in turn, will yield both better economic performance and greater Human Resource Development (HRD). Though a distinct philosophy, HRM cannot be treated in isolation.

It is being integrated into the overall strategic management of businesses. Further, HRM represents the latest term in the evolution of the subject. There are several similarities between Human Resource Management (HRM) and Personnel Management (PM) (1) Both models emphasize the importance of integrating personnel/HRM practices with organization al goals. (2) Both models vest Personnel/HRM firmly in line management. (3) Human Resource Management (HRM) and Personnel Management (PM) both models emphasize the importance of individuals fully developing their abilities for their own personal satisfaction to make their best contribution to organization al success. (4) Both models identify placing the right people into the right jobs as an important means of integrating personnel/HRM practice with organizational goals.

Objectives of Human Resource Management

According to Scott, Clothier and Spriegal, “The objectives of Human Resource Management, in an organization , is to obtain maximum individual development, desirable working relationships between employers and employees and employees and employees, and to affect the moulding of human resources as contrasted with physical resources”.

The basic objective of human resource management is to contribute to the realization of the organization al goals. However, the specific objectives of human resource management are as follows :

1. To ensure effective utilization of human resources, all other organization al resources will be efficiently utilized by the human resources.

2. To establish and maintain an adequate organization al structure of relationship among all the members of an organization by dividing of organization tasks into functions, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organization .

3. To generate maximum development of human resources within the organization by offering opportunities for advancement to employees through training and education.

4. To ensure respect for human beings by providing various services and welfare facilities to the personnel.

5. To ensure reconciliation of individual/group goals with those of the organization in such a manner that the personnel feel a sense of commitment and loyalty towards it.

6. To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards.

In order to achieve the above objectives, human resource management undertakes the following activities :

1. Human Resource Planning, i.e., determining the number and kinds of personnel required to fill various positions in the organization .

2. Recruitment, selection and placement of personnel, i.e., employment function.

3. Training and development of employees for their efficient performance and growth.

4. Appraisal of performance of employees and taking corrective steps such as transfer from one job to another.

5. Motivation of workforce by providing financial incentives and avenues of promotion.

6. Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieve higher standard of living and to motivate them to show higher productivity.

7. Social security and welfare of employees.

Functions of Human Resource Management

The main functions of human resource management are classified into two categories: (1) Managerial Functions and (2) Operative Functions

(1) Managerial Functions

Following are the managerial functions of Human Resources Management.

1. Planning: The planning function of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programmes, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them.

2. Organization: Under organization , the human resource manager has to organize the operative functions by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organization al objectives. In this way a personnel manager performs following functions :

• Preparation of task force;

• allocation of work to individuals;

• integration of the efforts of the task force;

• coordination of work of individual with that of the department.

3. Directing: Directing is concerned with initiation of organised action and stimulating the people to work. The personnel manager directs the activities of people of the organization to get its function performed properly. A personnel manager guides and motivates the staff of the organization to follow the path laid down in advance.

4. Controlling: It provides basic data for establishing standards, makes job analysis and performance appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts of workers.

(2) Operative Functions

The following are the Operative Functions of Human Resource Management

1. Procurement of Personnel : It is concerned with the obtaining of the proper kind and number of personnel necessary to accomplish organization goals. It deals specifically with such subjects as the determination of manpower requirements, their recruitment, selecting, placement and orientation, etc.

2. Development of Personnel : Development has to do with the increase through training, skill that is necessary for proper job performance. In this process various techniques of training are used to develop the employees. Framing a sound promotion policy, determination of the basis of promotion and making performance appraisal are the elements of personnel development function.

3. Compensation to Personnel : Compensation means determination of adequate and equitable remuneration of personnel for their contribution to organization objectives. To determine the monetary compensation for various jobs is one of the most difficult and important function of the personnel management. A number of decisions are taken into the function, viz., job-evaluation, remuneration, policy, inventive and premium plans, bonus policy and co-partnership, etc. It also assists the organization for adopting the suitable wages and salaries, policy and payment of wages and salaries in right time.

4. Maintaining Good Industrial Relation: Human Resource Management covers a wide field. It is intended to reduce strifies, promote industrial peace, provide fair deal to workers and establish industrial democracy. It the personnel manager is unable to make harmonious relations between management and labour industrial unrest will take place and millions of man-days will be lost. If labour management relations are not good the moral and physical condition of the employee will suffer, and it will be a loss to an organization vis-a-visa nation. Hence, the personnel manager must create harmonious relations with the help of sufficient communication system and co-partnership.

5. Record Keeping: In record-keeping the personnel manager collects and maintains information concerned with the staff of the organization . It is essential for every organization because it assists the management in decision making such as in promotions.

6. Personnel Planning and Evaluation : Under this system different type of activities are evaluated such as evaluation of performance, personnel policy of an organization and its practices, personnel audit, morale, survey and performance appraisal, etc.

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