AMET UNIVERSITY HUMAN RESOURCE MANAGEMENT (LECTURE NOTES OF DR. B. MADHAVAN) UNIT- I Definition: Brech: “HRM is that part of management which is primarily concerned with the human rconstituents of an organization”. Flippo: “HRM is concerned with the procurement, development, compensation, integration and maintenance of Human Resources in an organization towards accomplishment of organization goals. Therefore, HRM is the planning, organizing, directing andcontrolling of the performance of those operative functions”. Definition of National Institute of P.M (NIPM): “is that part of management which is primarily concerned with human relationships in an organization”. Some basic concepts: (Scope).
HRM involves managing people at all levels in organizations Both as individuals and groups Both formal and informal relationships Developing people Not only controlling them Certainly not manipulating them Handling human beings is perhaps the most difficult job– calling for special training. Handling people is continuous in nature. What the organization has done to the people yesterday will affect the performance and relationships today and tomorrow. HRM aims at obtaining willing co-operation of the people. Subject is bound by many conventions, codes and ethics Very strictly bound by laws. The subject calls for intellectual approach and emotional approach.
Importance of HRM -- Some general points
It is admitted universally that the human factor is the most vital and complex to handle. Therefore, proper study of the subject is necessary. People are rational and reasonable– but not always. Only a professionally qualified person will be able to tackle the situations. Understanding peopleboth is a rare science and art. Therefore an organized study is a must. People are individually different in their abilities, ambitions, background, etc. People behave differently as individuals and as groups. The human element has negative potential also– means if they are not treated well they can damage the organization. On the other hand if they are treated well they can give performance which is far more than proportionate to the inputs given to them. This concept is known as “Output more than proportionate to the input”. Only human beings are capable of this.
Importance of HRM to the organization
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There has to be a specialized department to deal with human functions. Otherwise the remaining departments will pull the human functions in different directions Only a full scale Human Resources department can make proper policies and implement them also Bridge between management and workers Spokesman of the organization to the outside world The liaison function with all agencies like district administration, public, judicial authorities, police, etc. – particularly with the government. Handling people who carry sensitive information is a very specialized job. Otherwise the organization would suffer. The HR Dept. is the custodian of many secrets and confidential information about people and the orgn. The HR Dept. is also a great co-coordinator many aspects of day today Orgnl/ matters
Qualities of a Human Resources Manager
Basic Intelligence All the qualities of a regular manager (plan, coordinate, control, delegate) Sound professional knowledge on operative functions and practical skills to implement them Basic desire and happiness to deal with people Basic honesty of purpose Good interpersonal skills – ability to build bridges, co-ordinate and liaise. Ability to handle sensitive information and emotions Analytical and yet sympathetic Empathy (ability to understand others’ points of view) Pleasing manners and approachable personality Problem solving attitude He should be fair and appear to be fair.
Obstacles or Impediments for Human Resources Management
Generally there is a belief amongst many technical executives that Human Resources management is a common sense subject and any bodycan handle that. If the recognition for the specialized skills and attitudes of HRM is low, then the effectiveness of Human Resources management comes down. Feudal approach of some organizations– not professional approach Too much of regulations from government and too many laws Problems of the unions Multi unions and rival unions within the same organization External leadership for unions Political affiliations of unions Absence of a national level regulatory body for HumanResources managers. NIPM is only an affiliatory body. Many organizations do not strictly follow the qualification and experience requirements while recruiting HR Manage. The work force is heterogeneous – divided by regions, language, etc. Emotional type of reactions Non-development of “one industry – one union” culture.
Functions of Human Resources Management
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Managerial functions like planning, organizing, controlling, etc. Operative functions – specialized functions of HRM like recruitment, selection, performance appraisal, etc.
NIPM classification
1) Human Resources function (matters ofindividuals, policy matters, factual problems) 2) industrial relations (matters of group represented by union, collective problems, emotional problems) 3) welfare (township, schooling, canteens, hospitals, transport, perquisites and all advances and allowances) 4) general administration (discipline, handling of grievances, public relations, coordination with state legal and police authorities, estate protection, etc.) 5) Maintenance of records 6) Audits and research 7) Human resource development. Detailed list of Operative functions
Human Resources policies, objectives and laying down rules and regulations Manpower planning 1) preparation of job analysis, job description and job specification 2) plan for wastage and shift requirements 3) plan for recruitment lead time 4) balance it against plant requirements 5) divide the total also. manpower required into various grades and pay scales– provide for career planning Recruitment, selection and placement: This is the actual job of procuring people and placing them in position. Familiarizing them with theorganization is also tobe done. Performance appraisal 1) lay down proper norms for evaluation 2) introduce proper policies 3) proper formats 4) safe keep of appraisal records Wage and salary administration/compensation administration 1) fix pay scales according to the job requirements 2) make sure they are comparable with similar organizations. 3) Have a policy on overtime and incentives 4) Have a plan for periodical wage revisions Training and development 1) plan for workers and officers separately as per requirements 2) formulate new packages for training based on specific requirements 3) have plans for training the efficient people as well as the inefficient people Promotion and transfers: Policies should be framed to encourage the individual and also to benefit the organization 1) merit should be recognized without letting down people who have served long 2) while transferring the individuals’ problems should not be overlooked. Discipline 1) To establish an efficient mechanism 2) To detect deviations in performance or behavior and deal with them effectively. Grievances 1) There should be a healthy system under which a workman who is genuinely affected can approach the management and set it right
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Industrial relations – to provide healthy relationship between management and workers Welfare administration General administration Relationship with neighbouring community Termination management refers to termination of employer, employee relationships on account of death, resignation, dismissal etc. Here the Human Resources function will have to effect settlement of accounts also Safety administration– to constantly review working conditions, rest pauses, safety practices, sickness patterns and make proper schemes. Implementation of social security– implementing of schemes like P.F., Gratuity, pension, etc. Legal administration – to handle legal matters initiated by the company and against the company Public relations
OBJECTIVES OF HUMAN RESOURCES MANAGEMENT Core Objectives
Towards the organization to secure and maintain for the organisation, human resources capable of performing the organization objective. To secure effectively and economically, the integration of organizational growth and goals of the Human Resources in the organization. Towards people – “ to provide maximum development of Human resources by giving full opportunity and support”. Towards society – “To preserve and advance the welfare ofthe society along with pursuit of organization goals”. Towards the profession – “To maintain highest standards of professional conduct”.
Collateral Objectives
Uphold the importance of human beings in an organization Provide job security and a safe atmosphere to work Provide interesting work Safe and healthy working conditions Optimum work load and commensurate wages Build liaison and links between management and labour Encourage good leadership on both sides Encourage healthy traditions and promote good culture Take care of the stability of the organization To promote loyalty and commitment of the people to the organization Maximise wealth of the organization and distribute it to everyone Bring Human Resources Management on par with any other function in the organization
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