MANAGING PEOPLE AT WORK

UNIT-1

HRM-AN INTRODUCTION

Human resource management (HRM, or simply HR) is the management of

an organization's human resources, or workers. It is responsible for

the attraction, selection, training, assessment, and rewarding of employees, while also overseeing

organizational leadership and culture, and ensuring compliance with employment and labor laws.

In circumstances where employees desire and are legally authorized to hold a collective

bargaining agreement, HR will typically also serve as the company's primary liaison with the

employees' representatives (usually a labor union).

HR is a product of the human relations movement of the early 20th century, when researchers

began documenting ways of creating business value through the strategic management of the

workforce. The function was initially dominated by transactional work such

as payroll and benefits administration, but due to globalization, company consolidation,

technological advancement, and further research, HR now focuses on strategic initiatives

like mergers and acquisitions, talent management, succession planning, industrial and labor

relations, and diversity and inclusion.

Acc to P.Subba Rao HRM is managing(planning, organizing, directing and controlling) the

functions of employing, developing and compensating HR in creating and developing HR and

utilisation of human resources with a view to contribute to organizational, individual and social

goals.

It is concerned with the development of human resources i.e. knowledge, capability, skill,

potentialities and attaining and achieving employee goals, including job satisfaction.

HRM covers all levels (unskilled, skilled, technical, professional, clerical and managerial) of

employees.

Applies to the employees of all types of organization in the world.

It’s a never ending continuous process.

Personnel management can be defined as obtaining, using and maintaining a satisfied

workforce. It is a significant part of management concerned with employees at work and with

their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation,

integration and maintainance of people for the purpose of contributing to organizational,

individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with

human resource of organization.”

DIFFERENCE BETWEEN HRM AND PM

Some experts assert that there is no difference between human resources and personnel

management. They state that the two terms can be used interchangeably, with no difference in

meaning. In fact, the terms are often used interchangeably in help-wanted ads and job

descriptions. 

For those who recognize a difference between personnel management and human resources, the

difference can be described as philosophical. Personnel management is more administrative in

nature, dealing with payroll, complying with employment law, and handling related tasks.

Human resources, on the other hand, is responsible for managing a workforce as one of the

primary resources that contributes to the success of an organization. 

When a difference between personnel management and 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. A primary goal of human resources

is to enable employees to work to a maximum level of efficiency. 

Personnel management can include 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 involves 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 often considered an independent function of an organization. Human

resource management, on the other hand, tends to be an integral part of overall company

function. Personnel management is typically the sole responsibility of an organization's

personnel department. 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. 

As far as motivators are concerned, 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.

NATURE OF HRM

Pervasive force

Action oriented

Individual oriented

Future oriented

Development oriented

Integrating mechanism

Inter-disciplinary function: multidisciplinary activity utilizing knowledge and inputs

drawn from psychology, sociology, anthropology, economics etc.

Continous and never ending process.

SIGNIFICANCE OF HRM

To help the organization reach its goal.

To employ the skills and abilities of the workforce efficiently.

To provide the organization with well trained and well motivated employees.

To increase to the fullest the employees job satisfaction and self actualization: Employees

must feel that the job is right for their abilities and that they are being treated equitably.

Satisfied employees are automatically more productive. However, unsatisfied employees

tend to be absent and quit more often and produce lower-quality work.

To develop and maintain a quality of work life.

To communicate HR policies to all employees.

To be ethically and socially responsive to the needs of society: HRM managers must

show by example that HRM activities are fair, truthful, and honorable. People must not

be discriminated on any basis.

SCOPE OF HRM

The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it

concisely. However, we may classify the same under following heads:

HRM in Personnel Management: This is typically direct manpower management that

involves manpower planning, hiring (recruitment and selection), training and

development, induction and orientation, transfer, promotion, compensation, layoff and

retrenchment, employee productivity. The overall objective here is to ascertain individual

growth, development and effectiveness which indirectly contribute to organizational

development.

It also includes performance appraisal, developing new skills, disbursement of wages, incentives,

allowances, traveling policies and procedures and other related courses of actions.

HRM in Employee Welfare: This particular aspect of HRM deals with working

conditions and amenities at workplace. This includes a wide array of responsibilities and

services such as safety services, health services, welfare funds, social security and

medical services. It also covers appointment of safety officers, making the environment

worth working, eliminating workplace hazards, support by top management, job safety,

safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical

care, sickness benefits, employment injury benefits, personal injury benefits, maternity

benefits, unemployment benefits and family benefits.

It also relates to supervision, employee counseling, establishing harmonious relationships with

employees, education and training. Employee welfare is about determining employees’ real

needs and fulfilling them with active participation of both management and employees. In

addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing,

transport, medical assistance, education, health and safety, recreation facilities, etc.

HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful

interactions with labor or employee unions, addressing their grievances and settling the

disputes effectively in order to maintain peace and harmony in the organization. It is the

art and science of understanding the employment (union-management) relations, joint

consultation, disciplinary procedures, solving problems with mutual efforts,

understanding human behavior and maintaining work relations, collective bargaining and

settlement of disputes.

The main aim is to safeguarding the interest of employees by securing the highest level of

understanding to the extent that does not leave a negative impact on organization. It is about

establishing, growing and promoting industrial democracy to safeguard the interests of both

employees and management.