HUMAN RESOURCE

MANAGEMENT

PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT

-I. Arul Edison Anthony Raj,MBA, M.Phil., PGDIB, ADHRM(UK).Assistant ProfessorE.G.S. Pillay Engineering College, Nagapattinam.

INTRODUCTION Human Resource Management (HRM) is the

utilization of a firm’s human resources to achieve

organizational objectives.

HRM is the most happening function as of now.

This is so because people offer competitive

advantage to a firm & managing people is the

domain of HRM.

HRM is a broad concept. Personnel Management

(PM) & Human Resource Development (HRD)

are a part of HRM.

MEANING OF HRM Human Resource Management means

employing people, developing their resource

utilizing, maintaining and compensating their

services in tune with the job and

organizational requirements with a view to

contribute to the goals of the organization,

individual and the society.

DEFINITION OF HRM According to Pulapa Subba Rao define, human

resource management (HRM) is a managing

(planning, organizing, directing & controlling) the

functions of employing, developing, compensating

the utilizing human resources, resulting in the

creation and development of human and industrial

relations which would shape the future policies and

practices of human resource management, with a

view to contribute proportionately to the

organizational, individual and social goals.

EVOLUTION AND GROWTH OF HRM

The history of development of HR management

in India is comparatively of recent origin.

But “Kautilya” had dealt with some of the

important aspects of HRM in his “Arthasastra”,

written in 400 B.C.

Government in those days adapted the

techniques of HRM as suggested by “Kautilya”.

In its modern sense, it has development only

since independence.

CONT.,

Though the importance of labour officers was

recognized as early as 1929, the

appointment of officers to solve labour &

welfare problems gained momentum only

after the enactment of Factories Act of 1948.

Under Section 49 of the Act required the

appointment of Welfare Officers in

companies employing more than 500

workers.

CONT.,

At the beginning, Government was

concerned only with limited aspects of labour

welfare. The earliest labour legislation in

India dealt with certain aspects of Indian

Labourers (Regulation of Recruitment,

Forwarding and Employment) sent to various

British colonies in 1830s.

CONT.,

FUNCTIONS OF HRMFunctions of HRM

Managerial Functions Operative Functions

Planning Staffing / Employment

Organizing Human Resources

Directing Development

Controlling Compensation & Benefits

Safety and Health

Employee & Labour Relations

Recent Trends in HRM

CONT.,

Managerial Functions

Planning: (It is a predetermined course of action), in

involves planning of human resources, requirements,

recruitment, selection, training etc.

Organizing: (It is essential to carry out the

determined course of action).

Directing: The next logical function after completing

planning and organizing is the execution of the plan.

Controlling: After planning, organizing & directing

various activities of Personnel Management.

CONT.,

Operative Functions

Staffing/Employment: The process through which an

organization ensures that it always has the proper

number of employees with the appropriate skills in the

right jobs at the right time to achieve the organization’s

objective.

Job Analysis

Human Resource Planning

Recruitment

Selection

Placement

Induction and Orientation

CONT.,

Human Resources Development: A major HRM

functions that consists not only of T&D but also

individual career planning and development activities

and performance appraisal.

Performance Appraisal

Training & Development

Management Development

Career Planning & Development

Internal Mobility (It consists of transfer, promotion &

demotion)

Retention & Retrenchment Management

Change and Organization Development.

CONT.,

Compensation and Benefits: It is the process

of providing adequate, equitable and fair

remuneration to the employees.

Job Evaluation

Wages and Salary

Incentives

Bonus

Fringe Benefits

Social Security Measures (Non – financial

rewards)

CONT.,

Safety and Health: Safety involves

protecting from injuries caused by work –

related accidents. Health refers to the

employees’ freedom from physical or

emotional illness.

CONT.,

Employee and Labour Relations:

Practicing various human resources

policies and programmes like employment,

development and compensation and

interaction among employees create a

sense of relationship between the

individual worker and management,

among workers and trade unions and the

management.

CONT.,

Recent Trends in HRM: Human

Resources Management has been

advancing at a fast rate. The recent trends

in HRM includes: Quality of work life

Total quality in human resources

HR accounting, audit and research and

Recent techniques of HRM

OBJECTIVES OF HRM

Societal

HRM Objectiv

es

CONT.,

The societal objectives of HRM seek to ensure that the organization becomes socially responsive.

The organizational objectives make sure that HRM is not a standalone department, but rather a means to assist the organization reach its primary objectives.

Functional objectives remind the HRM that it has only functional value and should not become too expensive at the cost of the organization it serves.

Personal objectives assist employees in achieving their personal goals.

HUMAN RESOURCE MANAGER

An individual who normally acts in an

advisory or staff capacity, working with other

managers regarding human resource

matters.

The human resource manager was primarily

responsible for coordinating the management

of human resources to help the organization

achieve its goals.

LINE MANAGER Individuals directly involved in accomplishing

the primary purpose of the organization. There was a shared responsibility between

line manager & HR professionals. Often the line manager goes to HR for

guidance in topics such as promotion, hiring, discipline, or discharge.

Line managers often perform many of the staffing functions previously accomplished by HR, such as interviewing.

Line manager must know how to deal effectively with the union.

ROLE OF HR MANAGER Human Resource Manager plays a vital role

in the modern organization. He plays various strategic roles at different levels in the organization.

The role of the HR manager includes; The Conscience Role The Counselor The Mediator The Spokesman The Problem-solver The Change Agent

CONT.,

The HR managers must exercise control very

tactfully in order to win the confidence and co-

operation of all line managers

They have to persuade line managers to work

with staff specialists and not against them.

The authority of the HR manager should derive

from concrete HR policies & programmes and

from the advantages and results of accepted

specialized knowledge.

CONT.,

As a Source of Help: In certain situations

(when line managers lack skill or knowledge

in dealing with employee problems),

experienced HR managers assume line

responsibility for HR matters.

CONT.,

As a Change Agent: HR Manager should

work as an enabler and change agent

regarding HR areas and he should be familiar

with different disciplines like management,

technology, sociology, psychology and

organizational behavior as organizational

adaptability, viability & development are

dependent on human resource development.

QUALIFICATIONS AND QUALITIES OF

HR MANAGER

The functions of HR management vary from

org., to org., both in nature & degree. So the

qualifications required of a HR manager differ

from org., to org., depending on its nature,

size, location etc.

CONT.,

Intelligence: this includes skills to

communicate, articulate, moderate,

understand, tact in dealing with people

intelligently, etc.

Educational Skills: HR manager should

possess learning & teaching skill as he has to

learn and teach employees about org.,

growth.

Discriminating Skills: He should have the

ability to discriminate between right and

wrong.

CONT.,

Executing Skills: He / She is expected to

execute the management’s decisions

regarding personnel issues with speed,

accuracy and objectivity.

Experience and Training: Previous

experience is undoubtedly and advantage

provided the experience was in an appropriate

environment and in the same area.

CONT.,

Professional Attitudes: Finally, professional

attitude is more necessary particularly in the

Indian context.

Qualification: Qualifications prescribed for

the post of HR manager vary from industry to

industry and from State to State. However, the

qualification prescribed by various org.,

include MBA with HRM Specialization, M.H.R.M,

M.A.(IR&PM), M.P.M & P.G.D.P.M.

COMPUTER APPLICATIONS IN HRM

Computer technology enables organizations

to combine human resource information into

a single database. This database is often

referred to as a human resource

information system (HRIS)

HUMAN RESOURCE INFORMATION SYSTEM

(HRIS)

A human resource information system (HRIS)

is an integrated system designed to provide

information used in HR decision making.

DEFINITION FOR HRIS

An HRIS may be defined as the system used

to acquire, store, manipulate, analyze,

retrieve, and distribute pertinent information

regarding and organization’s human

resource.

WHY DOES AN ORG., NEED HRIS?

An org., grow in size, the maintenance & use of emp.,

information becomes more & more difficult.

A second reason for the increase in HRISs is the rapid

reduction in the cost of computing.

A third reason for the growth in HRISs is the need to

produce reports & monitor information on employees in

order to comply with legal requirements.

Finally, as competition has increased, org., have realized

that managing their human resource is an important as

managing their financial & raw material resources.

OBJECTIVE OF HRIS To acquire, store, manipulate, analyze, retrieve, and distribute

the information of human resource.

To facilitate HR decision-making in the following areas:

Man-power planning

Recruitment & selection

Employment, including promotion, transfer, etc.

Education & training

To provide relevant information on employees to government

agencies as part of the legal requirements.

USES OF HRIS

HRIS

1. Hiring

2. Education

3. Benefits

4. Emp., Mgt

5. Cost control

6. Labour relations

PROBLEMS IN DEVELOPING AN

HRIS

HRIS may be expensive

Threatening & inconvenient to those who are

not comfortable with computers.

Employee privacy

COMPUTER APPLICATION IN HRM

Computer applications in strategic HRM an

HR Planning.

Computer application in Job Analysis

Computer application in Recruitment

Computer application in Selection.

Computer application in HRD & Career

Planning

CONT.,

Computer application in Performance

Appraisal

Computer application in Compensation &

Benefits

Computer application in Health & Safety

Computer application in Labour Relations

Future applications of Computer in HRM

HUMAN RESOURCE ACCOUNTING

Human resource accounting is the process of

identifying and measuring data about human

resources and communicating this

information of interested parties.

It deals with investments in people and with

economic results of those investments.

DEFINITION FOR HR ACCOUNTING

According to Stephen Knauf defined

HRA as “the measurement and

quantification of human organizational

inputs, such as recruiting, training,

experience and commitment.”

Eric Flamholtz explained human resource

accounting as accounting for people as

organization resources. It is the

measurement of the cost and value of people

for the organization.

HUMAN RESOURCE AUDIT

An audit is a review and verification of

completed transactions to see whether

they represent a true state of affairs of

the business or not.

Human Resource (HR) Audit refers to

an examination & evaluation of policies,

procedures & practices to determine the

effectiveness and efficiency of HRM.