Unit 1

Human Resource Management An Introduction

MB 0043

Dr. Smita Choudhary Faculty HR & OB

Contents
Introduction to Human Resource Management Concept of Human Resource Management Scope of Human Resource Management History of Human Resource Management Function of Human Resource Management Role of HR Executives Summary Check Your Learning Activity

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Objectives
After studying this chapter, you will be able to----- Describe the concept of HRM Define the scope of HRM Describe the history of HRM Explain the functions of human resource Recognize the role of HR executives

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Introduction
Every organization is essentially a blend of material and Human Resource (HR). Human Resource refers to the knowledge, education, skills, training and ability of the members of the organization. Human resources are the most valuable and unique assets of an organization. Even though specific human resource functions/activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function.

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Concept of Human Resource Management

Todays organizations constantly mould itself to meet the business challenges despite economic, political and social patterns in which it exists. The efforts made by organizations to sustain business metrics like revenue, profits and growth, market share is possible only through the people in the organization who work towards making this happen within the enterprise. According to Fisher, Schoendfelt and Shaw in their book Human Resources Management, HRM involves all management decisions and practices that directly affect or influence the people or Human resources who work for the organisation.

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Concept of Human Resource Management

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Concept of Human Resource Management

A human resource manager has to build an effective workforce, handle the expectations of the employees and ensure that they perform at their best. Some of the Objectives of HRM The objectives of HRM can be classified into the following: To act as a link between the top management and the employees. To arrange and maintain adequate manpower inventory, which in turn, ensures the smooth working of the organisation. To help keep up ethical values and behaviour amongst employees both within and outside the organisation.
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Scope of Human Resource Management

The scope of HRM is wide and far-reaching. An understanding of HRM is important to anyone who is employed in an organisation. HR issues become important wherever there is a group of workers. Staffing is performed by all the managers as a managerial function, either directly or indirectly through HR department. All managers are, in this way, HR managers, since they get involved in HR activities such as selecting, training, inducting, compensating and motivating the employees along with industrial relations activities. Scope of HRM can be classified under the following heads: HRM in personnel management HRM in employee welfare HRM in industrial relations

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Scope of Human Resource Management

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History of Human Resource Management

There is a vast difference between modern HRM and the personnel management that was prevalent decades ago. By the end of the twentieth century, the managerial philosophy that had defined the personnel function had undergone radical changes. There are various approaches: Scientific management approach: Fredrick Taylor, who is widely considered to be the father of scientific management, focused on motions that were required for each job, the tools used and the time needed to accomplish each task. Human relations approach: The Hawthorne studies conducted during the 1930 and 1940s, forced organizations to shift their attention from scientific management approach to human relations approach. It was recognized that treating employees with respect would improve employee satisfaction and help in achieving higher productivity. Human resources approach: Human resources treat people as resources, rather than factors of production, or as human beings who act on the basis of emotions alone.

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History of Human Resource Management

Some of the principles of human resource approach are: Employees are assets to an organisation. Policies, programmes and practices must cater to the needs of employees and should help them in their work and in their personal development. Employee rewards may be monetary such as hike in salary or increments or it may be non-monetary such as change in designation, status, fringe benefits, etc.

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Function of Human Resource Management

Human resource management involves blending the traditional administrative functions along with the changing concepts of employee welfare in the organisation. The retention of employees is dependent on how they are perceived and treated in the organisation based on their performance, abilities and skills. The extent of activities carried out by the HR is dependent on the size and scope of the organisation, the nature of operations and the attitude of management towards the employees. HRM functions can be broadly classified into the following two categories: Managerial functions Operative functions

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Function of Human Resource Management

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Function of Human Resource Management

Managerial functions of HR department Planning Future course of action; it also includes identifying human resource requirements and forecasting personnel needs. Organizing Division of labor; assignment of responsibility is part of the organization's functions. Staffing It is the process of obtaining and maintaining capable and competent personnel in various positions at all levels, i.e., manpower planning, recruitment, selection, placement and induction. Directing It is the process of directing all the available resources towards the common organizational goals. Controlling It is the measurement and rectification of activities to ensure that the events conform to plans.

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Function of Human Resource Management

Operative functions of HR department: Operative functions of HR department are those core functions that only the HR department is assigned to perform. These functions are: Employment Employment is the first operative function of HRM. This involves procuring and employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform various jobs. The various functions of employment are: Job analysis HR planning Recruitment Selection Placement Induction
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Function of Human Resource Management

HR development HR development concentrates on developing the workforce so that both the employees and the organisation in turn can achieve their goals. This includes functions starting with evaluating the performance of the employees, providing necessary training and development programmes to fill the gaps between current performances to the optimum performance of employees. HR development involves functions such as: Performance appraisal This is the process of evaluating the performance of an employee on the job and developing a plan for the employees improvement. Training Training is the systematic development of knowledge, skills and attitudes required to perform a given task or job successfully, in an individual. Management development It is the concept of developing the employees of an organisation to meet future changes and challenges. Career planning and development Career planning and development refers to identifying ones career goals and formulating plans for achieving them through various means such as education and work experience.

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Function of Human Resource Management

Compensation It includes all the rewards that an employee receives during the course of his or her jobfor his or her contributions to the organisation. It includes: Job evaluation It is a systematic determination of the value of each job in relation to other jobs in the organisation, in the industry and in the market. Wage and salary administration It is the process of formulating and operating a suitable wage and salary programme. Incentives These are the rewards that an employee earns in addition to regular wages or salary based on the performance of the individual, the team or the organisation. Fringe benefits These are monetary and non-monetary benefits given to employees during their employment and sometimes, also in the post-employment period.

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Function of Human Resource Management

Employee relations It deals with the employees, in the organisational context, as a social group that contributes to the organisation. It includes: Increasing employee productivity. Keeping the employees satisfied and motivated. Developing team building, team management, leadership skills in employees.

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Role of HR Executives
Managing people is one of the biggest challenges for a manager. Few of the reasons are: Individuals differ from each other in terms of their values, attitudes, beliefs and culture. This leads to a very complex situation. The stimulating and motivational factors might not be the same for all employees. It is important to understand the individual needs of the employees and cater to those needs. This involves taking up different roles by the HR. The specialist role of HR manager includes:

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Role of HR Executives
Service provider Management needs to gather information such as market statistics, pay rates and labor laws and legislations from the market as well as from their competitors before making decisions on various employee related issues. Managing Administrative expert The administrative role involves record keeping and legal compliance. Facilitator They act as a facilitator when training and development actions are planned and conducted and when performance appraisals are done. Consultant While supervising the employees, managers face many problems. Auditor HR specialists are responsible for ensuring that all members of the management perform their respective roles efficiently and also ensures that there is effective use of the human resources of the organisation.

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Role of HR Executives
Change agent It is the HR that helps organisations to implement changes and help employees adapt to changes. Employee advocate HR employees are the link between the top management and the employees. The concerns of the employees are first reported to the HR personnel. They report these issues to the top management and try to resolve the issues.

HR in any organisation has multiple roles to play. No HR can perform just one role. They may have to perform all the mentioned roles at different stages in their career as HR personnel.

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Summary
Human resource management is one of the most complex and challenging field of management study. It mainly deals with people dimension in management. The primary objective of HRM is to take care of the work life of employees even while ensuring their best possible cooperation for achieving the organisational goals and objectives. The scope of HRM can be divided into HRM in personnel management, HR in employee welfare, HR in industrial relations. Basically, HRM includes the four functions of acquiring, developing, motivating and managing the human resources. HRM functions are broadly classified into two categories managerial and operative functions. Managerial functions include planning, organising, directing and controlling. The specialist role of the HR professional takes a number of roles, which is that of an auditor, service provider, administrative expert, facilitator, consultant, the change agent and employee advocate.
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Thanks

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