The Concept of Human Resource Management Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success. Human resources has at least two related interpretations depending on context. The original usage was traditionally called labor. It is a measure of the work done by human beings.
This perspective is changing as a function of new and ongoing research into more strategic approaches. This first usage is used more in terms of ‘human resources development’, and can go beyond just organizations to the level of national importance. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training and other personnel issues, typically referred to as ‘human resources management’.
The terms “human resource management” and “human resources” (HER) have largely replaced the term “personnel management” as a description of the processes involved in managing people in organizations. In simple sense, HARM means employing people, developing their resources, “personnel management” as a description of the processes involved in managing people in organizations. Human resource management is to maximize the return on investment from the organization’s human capital and minimize financial risk.
Presently Human Resource Management is an integral but distinctive part of management. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programs relating to human resources to optimize their nutrition towards the realization of organizational objectives. HARM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources.
It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. Generally, human resource management refers to the management of the entire workforce of an organization in a reliable, honest and professional manner. It is the accessibility of human resource managers in a corporate context to conduct these activities in an effective, legal, fair, and consistent manner. That’s why the demand of Human Resource (HER) management has been dramatically increased these days.
From corporate sector to banking industry, from non profit organizations to human protection groups, from IT solution companies to printing industry; human resource management is playing a critical role in all the other sectors of the economy. Evolution of Human resource management Cattily provides a systematic treatment of management of human resources s early as 4th century B. C. In his treatise titled “Earth-Shasta”. There prevailed logical procedures and principles in respect of labor organizations such as Shrine or guild system and co-operative sector.
The wages were paid strictly in terms of quantity and quality of work turned out and punishment were imposed for unnecessarily delaying the work or spoiling it. The Government used to take active interest in the operation of both public and private sector enterprises and provided well-enunciated procedures to regulate employer-employee relationship. Cattily provides an excellent concussion on staffing and personnel management embracing job descriptions, qualifications for jobs, selection procedure, executive development, incentive systems and performance evaluation.
In course of time, the guild system was followed by cooperative sector consisting of craftsmen and traders, and purporting to promote their professional interests. Numerous professional societies were formed. Again, there are principles of the division of labor. The concept of “Varnish” or caste system was Originally based on these principles. Later On, these professions emerged to be hereditary. From the 14th century B. C. To the later half of the 10th century A. D. , the relationships between the employer and employees were marked by justice and equity. During the McHugh rules, the India trade and commerce were revived.
Several ‘Sharkskin’s were established at Agar, Delhi, Lahore, Mohammedan and various other places. During early British rules, there prevailed a laissez-fairer policy towards the business. The working conditions were appalling, living conditions were sub-human and several abuses prevailed in indigo plantations, in tea plantation. The above conditions prevailed till the enactment of the Factory Act of 1881. According to the Act, the workers employed in the factories were allowed a week off-day and provisions were also made for inspection as well as limiting he hours of work for women workers to eleven per day.
The act further provided that the minimum age of children for employment should be seven hours and that the maximum working hours for them should not exceed seven hours a day and that too in the day-shift. In 1890, the first labor organization designated as Bombay Mill Hands Association was established. Subsequently, in 1905, the printers’ Union at Calcutta and in 1 907, the Postal union at Bombay was established. The Madras Labor Union was organized thereafter in 1918. In 1922, the indentured labor system involving migration of Indian labor to other countries on contract basis was abolished.
In the same year, the Central Labor Board was established to federate the different unions in the Bombay city and the All India Trade Union Congress was organized. The early thirties witnessed a highly-weakened trade union movement. However, the conditions prevailing five years before as well as during the Second World War, were conducive to the rapid growth of the trade unionism. Between 939-40 and 1944-45 the number of registered trade unions increased from 666 to 865 (I. E. , by 29. 7 percent) and the total membership of union submitting returns increased from 511, 134 to 889, 388 (I. E. , by 70. 4 percent).
During the period 1947-1960 while, industrial employment rose by 2. 8 times, the total claimed union membership also went up by 2. 3 times. In 1960, 45 percent of the total industrial workforce was claimed to be unionized. Today, the total membership is estimated to be around 4. 3 million I. E. , 28 percent of total workforce. Explicitly, during post-independence period, the activities of Personnel Department in different public and private sectors have multiplied. According to the provisions of section 49 of the Factories Act, 1948, it became obligatory for the-employers to employ a Welfare Officer in a factory employing 500 or more workers.
Likewise, section 58 of the Mines Act, 1952, empowers the Government to specify employment of welfare officer/officers. However, it does not mean that the functions of Personnel Department are entirely limited to welfare activities. Management of human resources is being regarded as a specialized profession such as that of medicine and law. In addition to the industrial relations functions (although sometimes the industrial relations forms a Separate department), the Personnel Department is responsible for other varied functions including employment, safety, training, wage and salary administration and research and development.
The Head of the Personnel Department is associated with top management and helps it in the formulation of personnel policies for the company. Indeed, the activities involved in Personnel Department are akin to those performed in this department in any other western countries. Human Resource Management: Beliefs The Human Resource Management philosophy is based on the following beliefs: Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent.
A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource. HARM can be planned and monitored in ways that are beneficial both to the individuals and the organization. Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness. Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs. Employee commitment is increased with the opportunity to discover and use one’s capabilities and potential in one’s work.
It is every manager’s responsibility to ensure the development and utilization of the capabilities of subordinates. DEFINITION Some of the definitions are as follows. Human resource management (HARM) is the function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals. Human resource management (HARM) is the management of the workforce of a business to ensure sufficient staff levels with the right skills, properly rewarded and motivated. Human resource management (HARM) is defined as staffing function of the organization.
It includes the activities of human resources planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety. HARM aims at developing people through work. Human resource management (HARM) is defined as all methods and functions concerning the manipulation and development of personnel as human sources, with the objective of efficiency and greater productivity in a company, government administration, or other organization. Human resource management (HARM) encompasses those activities designed to provide for and co-ordinate the human resources of an organization.
Personal management Personal management is related to administrative discipline of hiring and developing employees so that they become more valuable to the organization. It includes (1) conducting job analyses, (2) planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing Wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels.
It is the part of management that is concerned with people and their relationships at work. Personnel management is the responsibility of all those who manage people, as well as a description of the work of specialists. Personnel managers advise on, formulate, and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations, and health and safety. There are various models f personnel management, of which human resource management is the most recent.
Differences between Personal Management (PM) & Human Resources Management (HARM) A primary’ goal of human resources is to enable employees to work to a maximum level of efficiency. So, when a difference between personnel management ; human resources IS recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization.
Personnel management includes administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involve ongoing strategies to manage and develop an organization’s workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company’s workforce. Personnel management is considered an independent function Of an organization.
It is typically the sole responsibility of an organization’s personnel department. Human resource management, on the other hand, tends to be an integral part of overall company function. With human resources, all of an organization’s managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks. Personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities.
From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators. There are fifteen (15) differences between Personal Management (PM) and Human Resource Management (HARM). Those are as follows Personnel mean employed persons of an organization.
Management of these people is PM. HARM is the management of employee’s knowledge, aptitude, abilities, talents, creative abilities and skills / competencies PM is traditional, routine, maintenance oriented, administrative function whereas HARM is continuous, on going development function aimed at improving human processes. PM is an independent function with independent sub functions. HARM follows the system thinking approach. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces.
PM is treated like a less important auxiliary function whereas HARM is considered a strategic management function PM is reactive, responding to demands as and when they arise. HARM is proactive, anticipating, planning and advancing mutinously. PM is the exclusive responsibility of the personnel department. HARM is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the human resource related functions. The scope of PM is relatively narrow with a focus on administrative people. The scope of HARM views the organization as a whole and lays emphasis on building a dynamic culture.
PM is primarily concerned with recruitment, selection and administrative of manpower. HARM takes effort to satisfy the human needs of the people at work that helps to motivate people o make their best contribution. Important motivators in PM are compensation, rewards, job simplification and so on. HARM considers work groups, challenges and creativity on the job as motivators. In PM improved satisfaction is considered to be the cause for improved performance but in HARM it is the other way round (performance is the cause and satisfaction is the result).
In PM, employee is treated as an economic unit as his services are exchanged for wages/salary. Employee in HARM is treated not only as economic unit but also a social and psychological entity. PM treats employee s a commodity or a tool or like equipment that can be bought and used. Employee is treated as a resource and as a human being. In PM employee are considered as cost centers and therefore, management controls the cost of labor, HARM treats employees as profit centers and therefore, the management invests in this capital through their development and better future utility.
M’s angle is that employees should be used mostly for organizational benefits and profits. HARM angle emphasizes on the mutual benefits, both of employees and their families and also the company. PM preserves information and maintains its secrecy. In HARM communication Is one of its main tasks which take into account vertical, lateral and feedback type communication. Differences between Human Resource Management (HARM) and Human Resource Development (HARD) HARM is a subset of the entire management processes of an organization. HARD is a subset of HARM. Scope of HARM is wider. Scope of HARD as compared to HARM is narrower.
HARM manages and develops the human elements of an organization in its entirely on longer term basis. HARD focuses on those learning experiences which are organized for a specific period to bring about the desired behavioral changes. HARM emphasizes that employees, their abilities and their attitudes constitute an important organizational as well as employee’s goals. HARD emphasizes mainly On training and development of employees. HARM takes decisions on HARD plans. HARD thus depends on the decisions of HARM. HARM is at its centre has HARD. Herd’s cooperation is important for overall success of HARM.
HARD has to work within the realm of HARM and therefore, its objectives should be in tandem with broader objectives of HARM. Thus HARM and HARD are interdependent. HARM takes care of all human needs and tries to satisfy these deeds so that the employees are motivated from all angles to contribute their best to achieve organizational goals. HARD focuses on upgrading the skills and competencies or the employees in order to improve the performance of the employees on the job. Objectives of Human Resource Management Objectives are pre-determined goals to which individuals or group activity in an organization is directed.
So objectives of HARM are influenced by organizational objectives and individual as well as social goals. To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well-motivated employees.
To increase to the fullest the employee’s job satisfaction and self- actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee’s capabilities to perform the present job. TO equip the employees with precision and clarity in transaction of business. To inculcate the sense of team spirit, team work and inter;team collaboration. Human Resource Management: Scope The scope of HARM is very wide and vast, as seen in the diagram.
All major activities in the working life of an employee come under preview of HARM. The activities can be broadly divided into three groups. Personnel aspect This is concerned with manpower planning recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. Welfare aspect It deals with irking conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
Industrial relations aspect This covers union- management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. Nature Of HARM Employee Selection HUMAN RESOURCE MANAGEMENT Education Remuneration Health ; Safety Motivation Nature of Human resource management Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HARM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules.
It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.
HARM : Strategic Role and Functions Strategic Role HARM should be strategic business partner of an organization Should support business strategies In addition to internally representing the employees, should have external focus Forward thinking and proactive Assist the organization in creating and maintaining competitive edge. Should try to work as profit centre and economize its operations. Should add value to the organization. Functions of HARM HARM involves two categories of function. Those are (a) operative function and (b) managerial function.
The operative function belongs to such activities concerned with procuring, developing, compensating, utilizing, and maintaining an efficient workforce. The managerial functions are common to all managers and those are planning, organizing, coordinating, directing and controlling. One function can not work without the other and they are interrelated. So the important functions of HARM can be listed below : 1 . Staffing Manpower or Human Resource Planning Job analysis : competency matrix Job description / position description Job evaluation
Determination of actual number of employees needed Recruitment and selection Of people Attracting talent Selection process Motivating the talent to join the organization 2. Training and Development Induction Acclimatization process for new employees Training Competency mapping and gap analysis Appraisal Training need assessment Training process Development potential assessment Development process Career planning Fast track (talent management) Normal career path management 3. Motivation Appropriate appraisal system Appraisal process Competition and benefits Determination of salary and benefit packages
Rewards Recognition motivation Monetary motivation 4. Maintenance Communication Installing and maintaining two way communication Health Design / selection and implementation of health schemes As feet Awareness creation System for safe working condition Employee relations Establishing fairness Designing and implementing employee relations qualities Dispute Grievances unions Employment related legalities Health and safety related legalities Although there are many functions of human resource management but the most effective of them include: Employee recruitment Training and development of employees
Workforce management Evaluation of employee performance Promotions and transfer of employees Redundancy Organization of data Total rewards Career development Competency mapping Time management Confidentiality ; Performance appraisal In order to achieve the above objectives, Human Resource Management undertakes the following activities: Human resource or manpower planning. Recruitment, selection and placement of personnel. Training and development of employees. Appraisal of performance of employees.
Taking corrective steps such as transfer from one job to another. Remuneration of employees. Social security and welfare of employees. Setting general and specific management policy for organizational relationship. Collective bargaining, contract negotiation and grievance handling. Staffing the organization. Aiding in the self-development of employees at all levels. Developing ; maintaining motivation for workers by proper incentives. Reviewing and auditing manpower management in the organization Potential Appraisal.
Feedback Counseling. Role Analysis for job occupants. Job Rotation. Quality Circle, Organization development and Quality of Working Life. Factors in Human Resource Management In the 21 SST century HARM will be influenced by following factors, which will work as various issues affecting its strategy: Size of the workforce. Rising employees’ expectations Drastic changes in the technology as well as Life-style changes. Composition of workforce. New skills required. Environmental challenges. Lean and mean organizations.
Impact of new economic policy. Political ideology of the Government. Downsizing and rightsizing of the organizations. Culture prevailing in the organization etc. Human Resource Management: Futuristic Vision On the basis of the various issues and challenges the following suggestions ill be of much help to the philosophy of HARM with regard to its futuristic vision: There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection.
In every decision-making process there should be given proper weighting to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter team collaboration. Opportunity and comprehensive framework should be provided for full expression of employees’ talents and manifest potentialities.