Introduction HRM An orga organi niza zati tion on is driv driven en by huma human n capi capita tall and and the the qual qualit ity y and and effe effect ctiv iven enes esss of the the organization is determined by the quality of the people that are employed. the resources of men money material and machine are collected and coordinated through people. Without people people organization organization can not exist. Success Success for most organizations organizations depends depends on finding the employees with the skills to successfully perform the tasks required to attain the company’s strategic goals. Management decisions and processes for dealing with employees are critical to ensure that the organization gets and keeps the right staff. HRM may be defined as a set of policies practices and programs designed to maximize both personal and organizational goals. The process of binding people and organizations together so that the objectives of the each are achieved. Some definitions of HRM are as follows “HRM is the management function that is concerned with getting, training, motivating and keeping competent employees.” “HRM is a most advanced approach in the field of resource mgmt. talks about optimal utilization of human capital. The approach is integrative and supportive.” “HRM does talk about the cultivation of a skillful environment in which people or employee associate are able to extract their highest potential.”
HRM deals with the day to day operations of the human resources department. This curriculum would include business law, compensation, co mpensation, employee relations, benefits, and medical etc. Human Resource Management ("HRM") is a way of management that links people-related activities to the strategy of a business or organization. HRM is often referred to as "strategic HRM". It has several goals: •
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To meet the needs of the business and management (rather than just serve the interests of employees); To link human resource strategies / policies to the business goals and objectives; To find ways for human resources to "add value" to a business; To help a business gain the commitment of employees to its values, goals and objectives
Definition of HRD
HRD DEALS WITH DEVLOPMENT & UPGRADATION OF HUMAN CAPITAL (EXSISTING MAN POWER’S UPGRADATION IN AN ORGANISATION).IT IS A LONG TERM PROCESS. A Set of systematic and planned activities designed by an organization, to provide its members with the necessary skills to meet current and future job demands. It is a part of HRM.
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HRD: Human Resource Development deals with the training and the developmental aspect of employees. Most HRD curriculum includes classes like T & D, Organizational dev., industrial psy. DIFFERENCE B\W HRM & HRD
HRM stocks the human capital as given and tries to optimally allocate among different process activity in such a way that the output is maximized. HRD tries to bring qualitative changes in stock of human capital in accordance with the need of organization and corporate objective .it tries to mold the employee according to organization requirement. HRD focuses on training and optimizing work performance. HRM focuses on whom you hire, whom you fire and remediation to employees who need discipline and retooling to continue their employment. HRD is more proactive; it copes with the changing needs of the people as well as anticipates these needs and HRD is function more independent with separate roles to play. HRD is sub-system of a large system, more organizational oriented and HRD is function more independent with separate roles to play. HRD is developing the whole organization and HRM is concerned with people only. HRD is continuous process and HRM is a routine and administrative function. HRD is involvement of the entire work force from top to bottom is more and a must in most of the cases and HRM is basically the responsibilities of the HR department Point of distinction 1. status
2. orientation 3. aims
4. incentives used
5. responsibility
HRM It is and independent functions with independent sub function. It is a service and reactive function It seeks to improve efficiency of people and administration It focuses on salary, economic rewards, job simplification and job specification for motivating people. It is considered to be responsibility of hrm
HRD It is an integrated system consisting of interdependent sub system It is a proactive function
It seeks to develop total organization and its culture. It focuses on autonomous work group. Job challenges and creativity for motivating people It is the responsibility of all manager
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FUNCTIONS OF HRM mgmt of HRM consist of several interrelated functions. These functions are common to all organization .these functions may be broadly br oadly classified into two categories
1. MANAGERIAL FUNCTIONS 2. OPERATIVE FUNCTIONS MANAGERIAL FUNCTIONS
1. 2. 3. 4.
PLANNING ORGAN RGANIS ISIN ING G DIRE IRECTING ING CONTR ONTRO OLLIN LLING G
PLANNING:
IT IS DECIDING IN ADVANCE THE FUTURE COURSE OF ACTION. IT INVOLVES FORECASTING AND RESEARCH .IT FORECASTS NEED FOR HUMAN RESOUCES .PREDICTING LABOUR, WAGES ETC. ORGANISING:
IT IS THE PROCESS OF ALLOCATING TASKS AMONG THE MEMBERS OF GROUP, ESTABLISHING AUTHORITY –RESPONSIBILITY RELATIONSHIPS AND INTEGRATING ACTIVITIES AMONG THEM. AN EFFECTIVE ORGANISATIONAL STRUCTURE IS FORMULATED THROUGH PERSONNEL RELATIONSHIPS. DIRECTING:
IT IS THE PROCESS OF MOTIVATING ACTIVATING, LEADING AND SUPERVISING PEOPLE, IT INCLUDES SUPERVISION OF SUBORDINATES. DIRECTING IS THE HEART OF THE MANAGEMENT PROCESS BECAUSE IT IS CONCERNED WITH INITIATING ACTION, SECRUING WILLING COOPERATION OF EMPLOYEES AND TAPPING THEIR MAXIMUM. CONTROLLING
IT REFERS TO COMPARING OF THE ACTUAL PERFORMANCE WITH PREDECIDED STANDARDS.IT IMPLIES CHECKING ,VERIFYING AND REGULATING TO ENSURE THAT EVERY THING OCCURS IN CONFIRMITY WITH THE PLANS ADOPTED AND THE INSTRUCTIONS ISSUED. CONTROLLING THE MANAGEMNT OF HR INVOLVES AUDITING T RAINING PROGRAMS, ANALYSING LABOUR TURNOVER RECORDS, DIRECTING MORALE, SURVEYS etc
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OPERATIVE FUNCTIONS 1. Procurement function: It is concerned with securing and employing the right kind and proper number of people required accomplishing the organization objective. a. Job analysis: It is the process of studying in detail the operation and
b.
c.
d. e. f.
responsibilities involved in a job so as to identify the nature and level of HR required. Job description is prepared with the help of information provided by Job Analysis. Hr planning: It is the process of estimating present and future manpower requirements of organization and formulating action programs to bridge the gap of manpower. Recruitment: It is the process of searching for required personnel and stimulating them to apply for job in the organization. A proper balance should be maintained between internal and external sources of recruitment. Selection: It refers to employers judging the suitability of different candidates for job in the organization and choosing the most appropriate persons Placement: It means assigning suitable jobs to selected candidates so as to match employees qualification with job requirement Induction: It involves familiarizing the new employees with company. the work environment and existing employees so that the the new people feel at home and can start work confidently. confidently.
2. DEVELOPMENT HR development Is a process of improving knowledge skills aptitudes and values of employees so that they can perform the present and future jobs more effectively. a) Performance appraisal; It refers to employers’ systematic evaluation of
employees with respect to their performance on the job and their potential for development b) Training; It is the process by which employees learn knowledge skills and attitudes to further organizational and personal goals. c) Executive development: It is the process of developing managerial talent through programs. d) Career planning and development; it involves planning and implementing career plans so as to fulfill the career aspirations of people. it involves mobility of personal of personnel through promotion and transfers. 3. Compensation It refers to fair and equitable remuneration to employees for their contribution to the attainment of organizational objectives. It I t consists of: a) Job evaluation: It is the process of determining real worth of the job. the
effectiveness of job is compared with its relative worth in terms of time and money.
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b) Wages and salary administration; It implies developing and operating
suitable wages and salary programmed conducted to determine wages and salary structure for various jobs in the organization. c) Bonus: It involves payment of bonus paid under the Payment of Bonus Act, 1965 as well as non – statutory and other incentives. d) Payroll; Maintenance of proper and systematic records of existing employees along with essential details. 4. INTEGRATION FUNCTION; It is the process of reconciling organizational goals with those of its members. Integration involves involves motivating employees through various financial financial and non financial financial incentives providing satisfaction ,handling employees grievances through formal grievance ,collective bargaining ,workers participation in management , conflict resolution developing cordial human relationship employee consulting consulting improving quality of work life. It includes: •
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Motivation : it is the force which instigates an employee to work in a proper direction Job satisfaction: it is the amount of satisfaction and contentment derived from ones job, its pay and environment. Grievance redressal ; various problems and conflict which are amongst the employees should be properly and cordially handled Collective bargaining: It means negotiating with the managers on various terms and conditions. Conflict management: It refers to effective and efficient management of conflict arising in the organization. Participation of employees of employees; Employees should be given a chance to participate in the working of the firm. their suggestion Discipline; It is one of the most essential requirements of organization for its smooth and efficient working.
5. Maintenance; It is concerned with promoting physical and mental health of employees by providing various benefits and facilities • •
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Health; it provides health facilities, medical aid etc. Safety it provides security measures like PF, pension, gratuity, injury/ disablement benefits allowances, group insurances etc. Welfare schemes; health, safety and welfare measures are designed to preserve the HR of the organizations. Personnel records: they are maintained to keep entire records of the employees and update them. Personnel research. Research is conducted to check whether HR is sufficient as per the current status. Personnel audit: controlling and evaluating current HR status and requirements
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OBJECTIVES OF HRM 1. SOCIETAL- To be ethically and socially responsible to the needs and
challenges of the society. 2. ORGANIZATIONAL-To bring organizational effectiveness and serve other departments 3. FUNCTIONAL- To do the optimal utilization of the resources and respond to the need of the organization. 4. PERSONAL-To assist employees in achieving their personal goals to motivate and retain them thereby, enhancing the individuals contribution to the organization 9 Resource Areas of ASTD MODEL
T&D OD Organizational/ Job design HRP Selection and Staffing Personal Research and IS Compensation and Benefits Employee Assistance Labor and Union Relations
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