1.0. Nature and scope of HRM
In a simple sense, human resources management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contributing to the goals of the organization, individual and the society
People in any organization manifest themselves, not only through individual sections but also through group interactions. When individuals come to their workplace, they come with not only technical skills, knowledge etc. but also with their personal feelings, motives, attitude, talent-job fit, values etc. Therefore, employee management in an organization does mean management of not only technical skills but also other factors of the human resources: The scope of human resources management in the modern days is vast. In fact, the scope of HRM was limited to employment and maintenance of and payment of wage and salary. The scope gradually enlarged to providing welfare facilities, motivation, performance appraisal, human resources management, maintenance of human relations, strategic human resources and the like. The scope has been continuously enlarging. The scope of Human Resources Management includes: o Objectives of HRM o Organization of HRM o Strategic HRM o Employment o Development o Wage and salary administration/compensation o Maintenance o Motivation o Industrial relations o Participative management and o Recent developments in HRM.
1.1. The function of HRM in contributing to organizational performance:
The functions of HRM can be broadly classified into two categories, a. Managerial functions and b. Operative functions. Managerial Functions Managerial functions of personnel management involve;
o Planning o Organizing o Directing o Controlling
Operative Functions The operative functions of human resources management are related to specific activities of personnel management, such as; A. Employment Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organizational objectives It covers functions such as o Job analysis o Human resources planning o Recruitment, o Selection, o Placement o Induction and o Internal mobility.
B. Human Resources Development: It is the process of improving, molding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and organizational requirements. This function includes: o Performance Appraisal o Training o Management Development o Career Planning and Development o Internal Mobility
o Transfer o Promotion o Demotion o Retention and Retrenchment Management o Change and Organization Development
C. Compensation It is the process of providing adequate, equitable and fair remuneration to the employees. It includes: o Job evaluation o Wage and salary administration o Incentives o Bonus o Fringe benefits o Social security measures etc.
D. Human Relations It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situations in a way that motivates them to work together productively, cooperatively.
E. Industrial Relations: The terms ‘industrial relations’ refer to the study of relations among employees, employers, government and trade unions.
F. Recent Trends in HRM: Human Resources Management has been advancing at a fast rate. The recent trends in HRM include: o Quality of work life o Total quality in human resources o HR accounting, audit and research and o Recent techniques of HRM
1.2. Distinguish between human resource management and personnel management: Human resource is considered as the backbone of any organization.
Personnel Management is different from Human Resources Management. Personnel means persons employed. Hence, personnel management views the man as economic man who works for money or salary. Human resources management treats the people as human beings having economic, social and psychological needs. Thus, HRM is broader in scope compared to personnel management. We can distinguish between human resource management and personnel management as follows:
Personnel management is a traditional approach to managing people in the organization. Human resource management is a modern approach to managing peoples and their strengths in the organization.
Personnel management focuses on personnel administration, employee welfare, and labor relation. Human resource management focuses on acquisition, development, motivation, and maintenance of human resources in the organization.
Personnel management assumes people as an input for achieving the desired output. Human resource management assumes people as an important and valuable resource for achieving the desired output.
Under personnel management, personnel function is undertaken for employee’s satisfaction on the other hand under human resource management, administrative function is undertaken for goal achievement.
Under personnel management, job design is done on the basis of the division of labor but under human resource management, job design function is done on the basis of group work/teamwork.
In personnel management, employees are provided with less training and development opportunities but in HRM employees are provided with more training and development opportunities.
In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource
management, decisions are made collectively after considering employee’s participation, authority, decentralization, competitive environment etc.
Personnel management focuses on increased production and satisfied employees, on the other hand, human resource management focuses on effectiveness, culture, productivity and employee’s participation.
Personnel management is concerned with the personnel manager but human resource management is concerned with all level of managers from top to bottom.
Personnel management is a routine function but Human resource management is a strategic function
1.3. Evaluate the roles and responsibilities of line managers in human resource management: The roles and responsibilities of line managers of any organization are very important to achieve the ultimate goals of any organization. Since the key functions are supervised by the line managers so line managers should be very sincere, dutiful, knowledgeable and honest. Based on the culture of the line managers in human resource management, there is a strong relationship between the line managers and subordinates. This relationship helps the employees take line managers as their own organization. Some important roles of a line manager are;
Planning and Organizing: The line manager is responsible for planning the aims, objectives, and priorities of their work area in an organization according to the level of responsibility and the grade of the people within the organization.
Managing Resources: A line manager is responsible for deploying the resources within their control (people’s time; money; etc) to achieve organization plans.
The Conscience Role:
The conscience role is that of a humanitarian who reminds the management of its morals and obligations to its employees.
The counselor: Employees who are dissatisfied with the present job approach the HR manager for counseling. In addition, employees facing various problems like marital, health, children education/marriage, mental, physical and career also approach the HR managers. The HR Manager counsels and consults the employees and offers suggestions to solve/overcome the problems.
The Mediator: As a mediator, the HR manager plays the role of a peace-maker. He settles the disputes between employees and the management. He acts as a liaison and communication link between both of them.
The Spokesman: He is a frequent spokesman for or representative of the company. The Problem-solver: He acts as a problem solver with respect to the issues that involve human resources management and overall long-range organizational planning.
The Change Agent: He acts as a change agent and introduces changes in various existing programs.
2.0. The pivotal area of HRM in a range of organizational contexts:
Human resource management plays the most crucial role in the management of an organization. HRM plays a crucial role in the conversion process of inputs into outputs. Product design, quality maintenance, rendering services etc., depend upon the efficiency of human resources. The human resource also plays a significant role in managing finances and managing information systems.
The main objectives of HRM may be as follows:
o To create and utilize an able and motivated workforce to accomplish the basic organizational goals.
o To establish and maintain sound organizational structure and desirable working relationships among
o All the members of the organization.
o To secure the integration of individual and groups within the organization by coordination of the individual and group:
o To create facilities and opportunities for individual or group development so as to match it with the growth of the organization.
o To attain an effective utilization of human resources in the achievement of organizational goals.
o 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 etc.
2.1. Evaluate the importance for HR planning in the organization:
Human resource planning can be defined in various ways. For example, it has been explained thus: ”estimating the future supply of and demand for human capital and then figuring out how to close the gaps. Such planning allows companies to think through their workforce alternatives to the high fixed costs of full-time employees”. More broadly, it is a continuing process of analyzing an organization’s human resources needs under changing conditions to ensure that the right numbers of people with the right skills, and at the right costs are available at the right time for the organization. More narrowly, it may simply be described as the complex science (or art) of matching labor demand with labor supply. These definitions suggest that staffing plans should derive from, and be consistent with, both short-term and long-term goals and objectives of the organization, and should, in turn,
inform human resource management functions, such as job design, recruitment and selection, human resource development and performance management. Ideally, human resource planning focuses on both the strategic (and long-term) and operational (short-term) perspectives. Long-term covers up to five years and short-term less than one year, depending on the nature of the organization.
The complexity of human resource planning techniques will vary with organizational size and the dynamic nature of the organization or its industrial environment, and the perception and status of the human resource function.
2.2. The stages involved in planning HR requirements:
The most important stages those are involved in HR planning can be described as flowing:
Determined goals of the organization:
This is the first step of HRP because HR planning must be derived from organizational goals or objective.
Assessment of Present Human Resources:
This step begins with developing a profile of current employees in an organization.
The main motive of this stage generates an effective and details about the current number of employees, their capacity, performance, and potentiality etc.
Forecasting Human Resource (demand and supply):
The human resources required at different positions according to their job profile are to be estimated from internal and external sources to fulfill those requirements. There should be a proper matching of the job description and job specification of one particular work, and the profile of the person should be suitable for it.
Implementing the Action Plan:
In these steps, the HR plan should be converted into action. Implementation of her plan means the recruitment, selection, placement, performance appraisal, career development, promotion, transfer, layoff, retirement, training and development, motivation and compensation etc
Evaluation, Control, and Feedback:
In this stage, we need to measure progress in order to control and evaluate to identify if the changes in the HR plans are made necessary because of changed conditions or because some of the original planning assumptions have gone wrong.