DEFINITIONSMANAGEMENT – Effective utilization of human

resources for the achievement of organizational objectives thru the combined efforts of human resources that technological, financial, physical and all other resources are utilized.

HUMAN RESOURCES – Defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization.

HUMAN RESOURCE MANAGEMENTHRM is an integral but distinctive part of

management, concerned with people at work and their relationship within the enterprise.

HRM can be defined as managing (planning, organising, directing, controlling) the functions of employing , developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately to the organisational, individual and social goals.

SIMILAR TERMSLabour ManagementLabour AdministrationPersonnel ManagementPersonnel AdministrationHuman Capital ManagementHuman Asset ManagementEmployment AdministrationEmployee-Employer RelationsUnion Management RelationsIndustrial Relations

NATURE OF HRMComprehensive Function – Concerned with all

types of people inside the organization

People Oriented – Dealing with human relationships within an organisation

Action Oriented – Actions rather than procedures and records – Solution of personnel problems to achieve both organisational and personal goals.

Individual Oriented – Provide services and programmes to facilitate employee satisfaction and growth.

Development Oriented – Developing the potential of employees to achieve maximum.

• Pervasive Function – Inherent in all organisations and at all levels

• Continuous Function – On going or never ending exercise rather than a one shot function.

• Future Oriented – Concerned with helping an organisation to achieve its objectives in the future.

• Challenging Function – Due to dynamic nature of people’s emotions and they can’t be treated like machines

• Science as well as Art – Science –Tools, Principles and Techniques ; Art – Handling People

• Staff Function – Advisory or Directing or monitoring Function

•Young Discipline – Started in the last part of 19th century.Relatively new specialized area as compared to manufacturing and marketing.

•Interdisciplinary – Involves application of knowledge drawn from Sociology, Psychology and Economics.

•Nervous System – Intimately associated with every movement inside the organisation

EVOLUTION OF HRM

Industrial RevolutionTrade UnionismSocial responsibility eraScientific Management EraHuman Relations EraBehavioural Science EraSystem Approach EraContingency Approach Era

Industrial revolution The seed of HRM were sown during Industrial

revolution 1850’s in Western Europe and USA.The wind gradually reached to India in beginning of 20th century.During this period:-

Machines were bought inTechnology made rapid progressWorkers were treated like machine toolsEmployers were keen to meet production targets

rather than satisfy workers.Govt. did very little to protect the interests of

workers.

TRADE UNIONISM This was the period when state intervention to

protect the worker’s interest was felt necessary. During this period:-

Workers started to form their associations.Trade Union Act, 1926 was passed in India.

The basic philosophy was to safeguard worker’s interest and to sort out their problems like:-

Child labourLong hours of workPoor working conditions.

SOCIAL RESPONSIBILITY ERARobert Owen,a British industrialist is considered to be the first to adopt humanistic and paternalistic approach. He viewed that the social and economic environment influence the physical , mental and psychological development of workers.

He practised the following :

Provision for reduced working hoursHousing facilitiesEducation of workers and their childrenHe admired for giving human treatment to

workers.

Scientific Management era:- This concept was introduced by Fredrick Winslow

Taylor in USA early in 20th century. he developed following four principles:-

Use of scientific methods in setting work stds.Scientific selection and placement of workers best

suited for the tasks. Also provision for training.Clear cut division of work and responsibility

between management and workers.Harmonious relations and close cooperation with

workers.

He developed following techniques for the same:

Time study and Motion Study – Precise time taken for each correct motion

Standardization of tools, equipments and machinery and working conditions

incentive wage plan with differential piece rate of wages.

HUMAN RELATIONS ERA

This particular period focused on the feelings,attitude and needs of the workers as human beings.Between 1925 and 1935 Hugo Munsterberg, a psychologist suggested the use of psychology in selection, placement, testing and training the employees in an organisation.

Between 1924 to 1932,Elton Mayo conducted a series of experiments at hawthorne plant of western electric company in USA.Main findings were:-

Physical environment should be goodFavourable attitudes of workers and work

team towards their workFulfillment of worker’s social and

psychological needsWorkers can be motivated through job

security,right to express their opinion on matters related to them.

BEHAVIORAL SCIENCE ERA It was concerned with social and

psychological aspects of human behaviour. Some of imp elements were:-

Individual behaviour is linked with group behaviour

Informal leadership rather than formal leadership

Motivation by self control and self development

Improving efficiency through Self operating

SYSTEMS APPROACH ERA

Technical subsystem : formal relationships.

Social subsystem : informal group relations

Power subsystem : exercise of power

CONTINGENCY APPROACH ERA• According to contingency,the best way to

manage varies with situation.

• There may not be the universal way of managing all the situations.

• It is imperative for managers to analyse different situations and then use the best suitable in that particular situation.

OBJECTIVES OF HRM1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.

2. To establish and maintain sound organizational structure and desirable working relationships among all the members of the organization.

3. To secure the integration of individual or groups within the organization by co-ordination of the individual and group goals with those of the organization.

4. To create facilities and opportunities for individual or group development so as to match it with the growth of the organization

5. To attain an effective utilization of human resources in the achievement of organizational goals.

6. To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige, recognition, security, status.

7. To maintain high employees morale and sound human relations by sustaining and improving the various conditions and facilities.

8. To strengthen and appreciate the human assets continuously by providing training and development programs.

9. To consider and contribute to the minimization of socio-economic evils such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged sections of the society.

10. To provide an opportunity for expression and voice management.

11. To provide fair, acceptable and efficient leadership.

12. To provide facilities and conditions of work and creation of favorable atmosphere for maintaining stability of employment.

FUNCTIONS OF HRMMANAGERIAL FUNCTIONSPlanning – Formulating the future course of action

Organising – Establishing an intentional structure of roles for people in an orgn such as chain of command, division of labour, assignment of responsibilities.

Staffing – Obtaining and maintaining capable and competent personnel.

Directing – Coordinating and motivating towards organisational objectives

Controlling – Measurement and rectification of activities

Operative Functions Of HRMEmployment – Involves procuring & employing

individuals with suitable knowledge, skills & exp

Human Resource Development – Process of training and developing employees to improve and update their knowledge and skills

Compensation Management – Includes all the extrinsic rewards that an employee receives during and after the course of his job

Employee Relations – deals with employees in the organisational context , as a social group that contributes to the orgn.

EMPLOYMENTHuman Resource Planning – Forecasting the

human resource requirements

Recruitment – process of seeking and attracting prospective candidates against a vacancy in an orgn

Selection – choose the right candidate for a job

Placement – Selected candidate conveys his acceptance of the offer of employment made by the orgn

Induction – Introducing a new employee to the orgn, its business, culture,values, practices and procedures

HUMAN RESOURCE DEVELOPMENTPerformance Appraisal – Process of evaluating the

performance of an employee on the job & developing a plan for improvement

Training – Systematic development of knowledge, skills, attitudes required to perform a given task successfully.

Management Development – developing the employees of an orgn to meet future changes and challenges

Career Planning & Development – Identifying one’s career goals & formulating plans of reaching them thru education, work exp.

Organisation Changes & Organisation Development

COMPENSATION MANAGEMENTJob Evaluation – Systematic determination of

the value of each job in relation to other jobs in the orgn, industry & market.

Wage and Salary Administration - Process of formulating and operating a suitable wage and salary program

Fringe Benefits – Monetary & Non-Monetary benefits given to employees during their employment & post employment period.

SOME OF THE FRINGE BENEFITSDisablement BenefitsHousing FacilitiesCanteen FacilitiesConveyance FacilitiesEducational facilities for employees and their

childrenCredit FacilitiesRecreational FacilitiesMedical & Welfare FacilitiesPost Retirement Benefits

EMPLOYEE RELATIONSMotivation

Morale

Job Satisfaction

Communication

Grievance & Disciplinary

IMPORTANCE OF HRMSIGNIFICANCE FOR AN ENTERPRISEAttracting and retaining the required talent thru

effective HRP, recruitment, selection, placement, orientation, compensation and promotion policies.

Developing the necessary skills & right attitude among the employees thru training, development and performance appraisal

Securing the willing cooperation of all employees thru motivation, grievance handling.

Utilising effectively the available human resources

PROFESSIONAL SIGNIFICANCE

Providing maximum opportunities for personal development of each employee.

Maintaining healthy relationships between individuals, and different work groups.

Allocating work properly.

SOCIAL SIGNIFICANCE

Providing suitable employment that provides social and psychological satisfaction to employees

Maintaining a balance between the jobs available and the job seekers in terms of numbers, qualifications, needs and aptitudes

Eliminating wastage of human resources thru conservation of physical and mental health.

ROLE OF HR MANAGER Service Provider - Providing info to individual

employees, Depts or groups and also to the top mgmt

Executive – to carry out recruitment, compensation, etc

Facilitator – To coordinate and facilitate the resources to the employees

Consultant – Motivation, Training, Grievance Handling

Auditor – Ensuring that all members of the mgmt perform their respective roles

HUMAN RESOURCE POLICIES

Policies are plans of action.

Organizations need to evolve HR policies as they ensure consistency and uniformity in treating people. They help, motivate, and build loyalty

Policies become benchmarks to compare and evaluate performance.

BENEFITS OF HR POLICIESThe work involved in formulating personnel policies

requires that the mgmt give deep thought to the basic needs of both the orgn and the employees.

Favoritism and discrimination are thereby minimised

Policies serve as a standard of performance

Sound policies help build employee motivation and loyalty

Sound policies help resolve intrapersonal, interpersonal and intergroup conflicts.

5 PRINCIPAL SOURCES FOR DETERMINING THE CONTENT & MEANING OF POLICIES

Past practice in the organisation

Prevailing practice in rival companies

Attitudes and philosophy of founders of the company and top management

Attitudes and philosophy of middle and lower management

The knowledge and experience gained from handling countless personnel problems on a day-to-day basis

PERSONNEL PRINCIPLES –Fundamental truth established by research, investigation

and analysis

Principle of individual developmentPrinciple of scientific selectionPrinciple of free flow of communicationPrinciple of participationPrinciple of fair remunerationPrinciple of incentivePrinciple of dignity of labour Principle of labour management cooperationPrinciple team spiritPrinciple of contribution to national prosperity

HRIS – HUMAN RESOURCE INFORMATION SYSTEM

Systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of return and reports to the external agencies

PURPOSE OF HRISStoring info and data for each individual

employee for future reference

Providing a basis for planning, organizing, decision making, controlling and other HR functions

Meeting daily transactional requirements such as marking present/absent, and granting leave.

Supplying data and submitting returns to govt. and other statutory agencies

APPLICATIONSPERSONNEL ADMINISTRATION Encompass info about each employee such as

name, address, date of birth, date of joining and info about family.

SALARY ADMINISTRATION The report should give the details of present salary,

last increase, and the proposed increase

LEAVE AND ABSENCE RECORDING A fundamental aspect of leave management is to

maintain a complete leave history for each employee with the ability to increase entitlement according to leave rules.

SKILL INVENTORY This will provide the opportunity to identify

employees with the necessary skills for certain positions or job functions

MEDICAL HISTORY To record occupational health data required for

industrial safety purposes, accident monitoring , exposure to potentially hazardous materials and so on.

ACCIDENT MONITORINGDetails of the accidents and a list of injured employees

PERFORMANCE APPRAISALIndividual employee performance appraisal data such as the due date of the appraisal , scores for each performance criteria , potential for promotion, and other info to form a comprehensive overview of each employee

TRAINING AND DEVELOPMENTTraining and development needs of an employee, with the ability to record and enquire on courses completed and any projected training courses

HUMAN RESOURCE PLANNING Record details of the organisational requirements

in terms of positions

RECRUITMENT Recording details of recruitment activity such as

the cost and method of recruitment, and the time taken to fill the position can be used to provide a picture of the cost of recruitment in terms of time as well as cost.

CAREER PLANNING The system must be capable of providing

succession plans to identify which employees have been earmarked for which positions

STEPS IN IMPLEMENTING HRISINCEPTION OF IDEA – where and why we need HRISFEASIBILITY STUDY – Present system should be studied to

highlight the problem areas and the likely benefits of HRIS

SELECTING A PROJECT TEAMDEFINING THE REQUIREMENTSVENDOR ANALYSISCONTRACT NEGOTIATIONSTRAININGTAILORING THE SYSTEM – Making necessary changes to

best fit the organisational needsCOLLECTING DATATESTING THE SYSTEMSTARTING UPMAINTENANCEAUDIT

ADVANTAGES OF HRISHigher speed of retrieval and processing of dataEase in classifying and reclassifying dataBetter analysis leading to more effective decision

makingHigher accuracy of info /report generatedFast response to answer queriesImproved quality of reportsBetter work cultureEstablishment of steamlined and systematic

proceduresMore transparency in the system

LIMITATIONS OF HRISExpensive in terms of finance and manpower

requirements

It can be threatening and inconvenient to those who are not comfortable with computers.

Computers cannot substitute human being. Human intervention will always be necessary

COMPUTER APPLICATIONS IN HRMMANAGEMENT INFORMATION

SYSTEM(MIS)A wide variety of info needs of a business are recognised and interconnected with subsystems

ELECTRONIC DATA INTERCHANGE(EDI)A computer is an electronic tool used to collect, organise, analyse, interpret and communicate vast amount of info with great speed. Electronic data interchange facilitate the speedy, secured and accurate transfer of documents across the globe

E-BUSINESSE-Business is about using the convenience,

availability and worldwide reach to enhance existing business or creating new virtual business

E-Business combines the traditional information system with the vast reach of the web and connects critical business systems directly to critical business constituencies viz., production, marketing, finance, customers, suppliers and employees via internets, extranets and the world wide web

E- HRMElectronic aspect is embodied in all the areas of

HRM where there is transmission of information from one employee to another employee and from one client to another

Both internally and the processed form are highly essentials in most of the functions and activities of HRM.

The important aspects of E-HRM areE-Job Design and Job AnalysisE – Human Resource PlanningE-RecruitmentE – SelectionE-Performance ManagementE-Training & DevelopmentE – Compensation ManagementE – Grievance RedressalE – HR RecordsE – HR InformationE – HR Audit

E – JOB DESIGN AND JOB ANALYSIS

The information of listing skills and competency mapping are placed on the net.

Then the system matches the listing skills and competency mapping and produces the output of identifying the employee suitable for a particular task.

E-HUMAN RESOURCE PLANNING

Computer Programs are developed and used extensively for the purpose of planning human resource requirements based on the data and the information

These programmes indicate the number of employees required at each level for each category of the jobs based on sales and production forecasts.

E - RECRUITMENTOrganisations advertise job vacancies thru

the World Wide Web(WWW)or send the info directly to the most competent people thru e-mail

The job seekers send their applications thru e-mail using internet.Alternatively job seekers place their CV’s in the World Wide Web(WWW)thru various jobsites

E - SELECTION

E – Selection has become popular with the conduct of various tests thru online, contacting the candidates thru e-mail and conducting the preliminary interviews and final interview thru audio and video conferencing

E – PERFORMANCE MANAGEMENTThe software on employee performance appraisal

provides a number of statements and sub statements on each of the performance categories.

The appraiser selects and clicks the appropriate rating for each statement. The system generates a detailed report by the time the appraiser has moved all the performance categories and sub factors

The report modified, comments can be added or deleted by the appraiser and a final report can be prepared by the manager

E – TRAINING AND DEVELOPMENT

Companies started providing online training and online executive development. Employees learn various skills by staying at the place of their work. Participants complete course work from wherever they have access to a computer and an internet

E – Learning is enabled by the delivery of content via all electronic media, including the internet, intranet, satellite broadcast audio/video tape, interactive TV and CD-ROM

E – COMPENSATION MANAGEMENT

Almost all the organisations started using computers for salary fixation, salary payment, salary calculations, fixation and calculation of various allowances , employee benefits, welfare measures and fringe benefits

E – GRIEVANCE REDRESSAL

Employees send their grievance via e-mail to the superior concerned who in turn solves the problems / redress grievances and communicates the same to the employee. This reduces the time in the process and avoids face to face interaction

E – HR RECORDS HR records are created, maintained and updated with the help of computers easily and at a first rate.

E – HR INFORMATIONHR info is generated, maintained , processed and transmitted to the appropriate places or clients with the help of software with high speed and accuracy.

E – HR AUDITThe standard human resource practices or

the desired HR practices are fed into the computer. The data and info regarding the actual practices are also fed into the computer

The software automatically completes the HR audit and produces the audit report. The HR manager then can modify the report by deleting or adding any comments.