Hr Practice Mcom Ishan 2015

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  • 7/25/2019 Hr Practice Mcom Ishan 2015






  • 7/25/2019 Hr Practice Mcom Ishan 2015


    Introduction to Human Resource Management :

    Organizations are made up of people and function through people. Material resources such

    as money and materials are utilized through people for different purposes. People constitute

    the most significant resource of an organization. Human resource is most active, productive

    and sensitive. Employees have capacity to think and act or react accordingly. This source

    needs delicate handling so that it will e useful for the progress and prosperity of an


    !n the present world, all organizational resources "human and material# are important for

    achieving organizational o$ectives. %aturally, their effective utilization is necessary. Here,

    organizations give special attention to human resources which includes manpower working at

    different levels in the organization. The employees need to e efficient, highly trained and

    professional co&operative and loyal to the organization. They are e'pected to make positive

    contriution in achieving organizational o$ectives. (uch useful laour force will not

    developed automatically ut needs to e nurtured through special efforts in the form of

    training, career development, cordial industrial relations, participative management and so


    Human )esource Management "H)M# is concerned with the manpower employed in an

    organization. !t is that part of management which is concerned with people at work and their

    relationships within the organization. H)M is one important ranch of management as it

    touches all other aspects of usiness management. H)M is concerned with human resource

    planning, recruitment and selection of manpower, training and development of manpower,

    compensation payment to manpower and so on. !n this introductory chapter, we propose to

    discuss the nature and scope of human resource management.


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    Personnel refer to the employees working in an organization at different levels. Personnel

    management "also called H)M# is that aspect of total usiness management which deals with

    human relationships within an organization. Personnel represent human resources which is

    different from material resources. !t is rightly said that organizations are not mere ricks,

    mortar, machineries or inventories. They are people. !t is the people who staff and manage

    organizations. Human resources are the people and their characteristics at work. They are

    human factors in usiness.

    Human resource is the most productive and most versatile. !n addition, the manpower in an

    organization needs human treatment. Employees have a capacity to feel, think and even to

    react. Management has to deal with the employees in a careful and tactful manner. Material

    resources such as land, machines, raw materials, e*uipment, etc. are easy to manage. This is

    ecause they have no capacity to feel or think or react. This is not the case with human

    resource i.e. manpower. +or e'ample, you may use a ad word for a machine or you may put

    your leg. on the machine ut you must not ause a worker or put your leg on his head. This

    is ecause he has a capacity to feel, think and even react *uickly in the same manner or even

    in a more challenging manner.

    !n production activity, men and machines are important. However, man ehind the machine

    is more important as he is a human eing. Man and machine are not on par and must not e

    treated in the same manner. This is ecause of all the resources manpower is the only

    resource which does not depreciate, with the passage of time.

    ccording to Peter +. -rucker , "the prosperity, if not the survival of any business depends on

    the performance of its managers of tomorrow. The material resources alone will not help the

    organization to achieve its o$ectives. +or this, effective coordination and utilization of

    material and human resources are re*uired. This suggests the importance of human resources.

    Human resources of an organization function at top management, middle management,

    supervisory management and at operative management levels. Human resources are most

    vital assets of an organization. They can e used as a means for developing competitive


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    advantages. !n addition, manpower people in the organization act as (ource of creativity.

    They can produce unlimited ideas which can e used for the progress of the prosperity of an

    organization. This suggests the significance of human resources which need effective

    utilization through careful management.

    The human resource is very important and useful in every organization. !t should e nurtured

    and used for the enefit of the organization. This is a challenging $o efore personnel

    manager management. The organization can make rapid progress only when the employees

    are efficient, satisfied and co&operative. On the other hand, the organization will have to face

    various prolems and difficulties, if the employees are not co&operative ut hostile. This

    indicates that human resource is most strategic and critical determinant of growth of a

    usiness unit. Every organization needs loyal, efficient and satisfied laor force. +or this,

    ade*uate attention should e given to H)M.

    H)M is a management function that helps managers to recruit, select, train and develop

    employees for an organization. !t is concerned with the people/s dimension in organizations.


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    ccording to (cott and others, "Human resource management is that branch of management

    which is responsible on a staff basis for concentrating on those aspects of relationship of

    management to employees and employees to employees and with the development of the

    individual and the group. The objective is to attain maximum individual development,

    desirable working relationship between employers and employees and employers and

    employees, and effective moulding of human resources as contrasted with physical resources


    ccording to %ational !nstitute of Personnel Management of !ndia, "Human resource

    management is part of management concerned with people at work and with their

    relationships within the organization. t seeks to bring together men and women who make

    up an enterprise, enabling each to make his own best contribution to its success both as an

    individual and as a member of a working group 0.

    Ed#in F$i%%o de&ines HRM as '

    1Planning, organizing, directing, controlling of procurement, development, compensation,

    integration, maintenance and separation of human resources to the end that individual,

    organizational and social o$ectives are achieved.2


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    3. Managing %eo%$e4 H)M relates to managing people at work. !t covers all levels of

    personnel5s and their needs, e'pectations and so on. !n this sense, it is a comprehensive

    function and is asically concerned with managing people at work. H)M has universal

    e'istence and application as it is applicale to usiness and other organizations &

    government, educational, social, and religious and so on.

    6. Peo%$e'oriented %rocess4 H)M is concerned with employees, oth as individuals

    as well as a group. The aim of H)M is to get etter results through their involvement,

    motivation and co&operation. !t is a people&oriented process of ringing people and

    organizations together so that the goals of each are met properly. c*uisition,

    development, motivation and maintenance of manpower human resources are four

    asic functions in the H)M process.

    7. !e(e$o%s em%$o)ees* %otentia$ities4 H)M is concerned with helping the

    employees to learn and develop their potentialities to the highest level for their enefits

    as well as for the enefits of their organization. !t is manpower employee5s

    development oriented su$ect.

    8. Integra$ %art o& organi+ations4 H)M is an integral part of all organizations. !t is

    concerned with recruitment, selection and development of manpower availale.

    9. Continuous acti(it)4 H)M is a continuous activity in an organization as personnel

    prolems continue to e'ist as long as employees are working in an organization. They

    need constant attention as they may distur normal working of an organization, ifneglected.


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    :. Securing em%$o)ee co'o%eration4 H)M aims at securing willing co&operation of

    employees for achieving organizational o$ectives. This is natural as industrial and

    other activities can e conducted only with the support ;of human resources. H)M aims

    at developing and maintaining team spirit at the organizational level. (uch team spirit

    rings success to the organization.

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    1. Human resources %$anning:

    Human resource planning or H)P refers to a process y which the company to identify the

    numer of $os vacant, whether the company has e'cess staff or shortage of staff and to deal

    with this e'cess or shortage.

    /. 0o ana$)sis design:

    nother important area of H)M is $o analysis. >o analysis gives a detailed e'planation

    aout each and every $o in the company. ?ased on this $o analysis the company prepares


    2. Recruitment and se$ection:

    ?ased on information collected from $o analysis the company prepares advertisements and

    pulishes them in the news papers. This is recruitment. numer of applications are received

    after the advertisement is pulished, interviews are conducted and the right employee is

    selected thus recruitment and selection are yet another important area of H)M.

    3. Orientation and induction:

    Once the employees have een selected an induction or orientation program is conducted.

    This is another important area of H)M. The employees are informed aout the ackground

    of the company, e'plain aout the organizational culture and values and work ethics and

    introduce to the other employees.


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    4. Training and de(e$o%ment:

    Every employee goes under training program which helps him to put up a etter performance

    on the $o. Training program is also conducted for e'isting staff that have a lot of e'perience.

    This is called refresher training. Training and development is one area where the company

    spends a huge amount.

    5. Per&ormance a%%raisa$:

    Once the employee has put in around 3 year of service, performance appraisal is conducted

    that is the H) department checks the performance of the employee. ?ased on these appraisal

    future promotions, incentives, increments in salary are decided.

    6. Com%ensation %$anning and remuneration:

    There are various rules regarding compensation and other enefits. !t is the $o of the H)

    department to look into remuneration and compensation planning.

    7. Moti(ation8 #e$&are8 ,ea$t, and sa&et):

    Motivation ecomes important to sustain the numer of employees in the company. !t is the

    $o of the H) department to look into the different methods of motivation. part from this

    certain health and safety regulations have to e followed for the enefits of the employees.

    This is also handled y the H) department.


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    9. Industria$ re$ations:

    nother important area of H)M is maintaining co&ordinal relations with the union memers.

    This will help the organization to prevent strikes lockouts and ensure smooth working in the


    1. Procurement o& man%o#er ;Human' Resource Ac

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    organisation. H)- programmes are for education, training and development of e'isting

    manpower in an organisation. This is for facing new prolems and !6hallenges likely to

    develop in the near future.

    1/. Per&ormance management and com%ensation %a)ment to man%o#er


    Performance management involves performance planning, performance appraisal and

    performance counselling used for various purposes. One more function of personnel

    management is to pay compensation "in monetary form# to employees for the services

    rendered. +or this, a fair system of remuneration payment "wages and salaries/ needs to e

    introduced. )emuneration to employees should e attractive so that the laour force will e

    satisfied and disputes, etc. will e minimized. +air wage payment acts as a motivating factor

    in compensation management


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  • 7/25/2019 Hr Practice Mcom Ishan 2015



    !B!B! ?ank is an !ndianmultinationalanking andfinancial servicescompany head*uartered

    in Mumai, Maharashtra, !ndia. s of 6C38, it is the second largest ank in !ndia in terms of

    assets and market capitalization. !t offers a wide range of anking products and financial

    services for corporate and retail customersthrough a variety of delivery channels and

    specialized susidiaries in the areas of investment anking, life, non&life insurance, venture

    capitaland asset management. The ?ank has a network of 8,C9C ranches and

    36,D3D TM5s in !ndia, and has a presence in 3< countries including !ndia.33F

    !B!B! ?ank is one of theBig Four banksof !ndia, along with (tate ?ank of !ndia,Pun$a

    %ational ?ankand ?ank of ?aroda. The ank has susidiaries in the Gnited ingdom and

    BanadaI ranches in Gnited (tates, (ingapore, ?ahrain, Hong ong, (ri Janka, Katar, -uai

    !nternational +inance Bentre and BhinaI and representative offices in Gnited ra Emirates,

    (outh frica, ?angladesh, Malaysia and !ndonesia. The company/s G susidiary has also

    estalished ranches in ?elgium and Lermany.