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Human Resource ManagementHuman Resource Management
Meaning of Human ResourcesMeaning of Human Resources
According to Leon C.Magginson, the term humanAccording to Leon C.Magginson, the term human
resources can be thought of as, the totalresources can be thought of as, the totalknowledge, skills, creative abilities, talents andknowledge, skills, creative abilities, talents and
aptitudes of an organisations workforce, as wellaptitudes of an organisations workforce, as well
as the value, attitudes and beliefs of theas the value, attitudes and beliefs of theindividuals involved.individuals involved.
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Human Resource ManagementHuman Resource Management
Meaning of Human ResourcesMeaning of Human ResourcesIndian Institute of Personnel Management:Indian Institute of Personnel Management:
Personnel Management is a responsibilityPersonnel Management is a responsibility
of all those who manage peopleof all those who manage people
As well as being aAs well as being a
Description of the work of those who are employed as specialists.Description of the work of those who are employed as specialists.
It is that part of managementIt is that part of management
Which is concerned with people at workWhich is concerned with people at workAnd with their relationship within an enterprise.And with their relationship within an enterprise.
It applies not only to industry and commerce but to all the fieldsIt applies not only to industry and commerce but to all the fieldsof employment.of employment.
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Personnel Vs Human ResourcesPersonnel Vs Human Resources
Personnel Management Human Resource Management1. Personnel means persons employed. 1. Human Resource management is thePersonnel management is the management management of employees skills, of people
people employed. Knowledge, abilities, talents, aptitudes,
creative abilities etc.
2.Employee in personnel management is mostly 2. Employee in Human Resource managementtreated as an economic man as his is treated not only as economic man but also
services are exchanged for salary/wages. as social and psychological man. Thus, the
complete man is viewed under this
approach.
3. Employee is viewed as a commodity or tool 3. Employee are treated as a resource.Or equipment which can be purchased and used.
4. Employees are treated as cost centre and 4. Employees are treated as profit centre and
therefore management controls the cost of therefore, invests capital for human resource
labour. development and future utility.
5. Employees are used mostly for organisational 5. Employees are used for the multiple mutual
benefit. Benefit of the or anisation em lo ees and
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Functions of HRMHuman Resources management consists of several inter-related
functions. These functions are common to all organizations.
Basically the function of HRM may be divided into two
categories.
Managerial functions and
Operating functions
Managerial functionsPlanning
Organizing
Directing
Controlling
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Operative Functions
The operative functions of Human Resources
management can be discussed in the following:
1. Procurement Function
Job Analysis
Human Resource Planning
RecruitmentSelections
Placement
Induction or Orientation
2.Development Function
Training
Executive Development
Performance and Potential Appraisal
Career Planning and Development
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3. Compensation Function:
Job Evaluation
Wage and Salary administration
Bonus4. Integration Function
Collective bargaining
Conflict resolution
Employee counselingProviding Job satisfaction
Workers participation in management
Improving quality of work life
Developing sound human relations etc.
5. Maintenance Function
It is mainly concerned with promoting and protecting the physical and mental
health of employees such as medical aids, educational facilities, conveyance
facilities, provident fund, pension, gratuity, group insurance etc.
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Nature of HRM
Pervasive force
Action Oriented
Individually Oriented
People Oriented
Future Oriented
Development Oriented
Integrating Mechanism
Comprehensive function
Auxiliary service
Inter disciplinary function
Continuous function
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Objectives of HRMObjectives of HRM
To help the organisation reach its goals
To employ the skills and abilities of the workforce efficiently
To provide the organisation with well trained and well
motivated employees
To increase to the fullest the employees job satisfaction and
self actualisation
To develop and maintain a quality of work life
To communicate HR policies to all employees
To be ethically and socially responsive to the needs of society
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Objectives of HRMObjectives of HRM
Societal
To be ethically and socially responsible to the
needs and challenges of society while
minimising the negative impact of such demandsupon the organisation.
Organisational
To recognise the role of HRM in bringing about
organisational effectiveness.
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Objectives of HRMObjectives of HRM
Functional
To maintain the departments contribution at a
level appropriate to the organisations needs.
Personal
To assist employees in achieving their personal
goals, at least insofar as these goals enhance the
individuals contribution to the organisation.
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Scope of HRMScope of HRMThe scope of HRM is very wide. The Indian Institute ofThe scope of HRM is very wide. The Indian Institute of
Personnel management has specified the scope of HRM thus:Personnel management has specified the scope of HRM thus:
Personnel aspect:Personnel aspect:
MManpower planninganpower planning
RecruitmentRecruitment
Selection PlacementSelection Placement
Transfer PromotionTransfer Promotion
Training and developmentTraining and developmentRetrenchmentRetrenchment
RemunerationRemuneration
IncentivesIncentives
Productivit etc.Productivit etc.
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Scope of HRMScope of HRM
Welfare aspect:Welfare aspect:
CanteensCanteens
CrchesCrches
Rest and lunch roomsRest and lunch rooms
HousingHousing
TransportTransport
Medical assistanceMedical assistance
EducationEducation
Health and safetyHealth and safety
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Scope of HRMScope of HRM
Industrial relation aspect:Industrial relation aspect:
UUnion-management relationsnion-management relations
Joint consultationJoint consultation
Collective bargainingCollective bargaining
Grievances and Disciplinary proceduresGrievances and Disciplinary procedures
Settlement of dispute etc.Settlement of dispute etc.
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Role of HR Manager in anRole of HR Manager in an
OrganisationOrganisation
Ideally, the HR manager should concentrate on drawing managerialattention to human problems. Just as finance assesses costs, marketing
emphasises customers, personnel is people centred. Success of a HR
manager depends on the degree of contribution to solve management
problems in dealing with human resources in the organisation.
Some of the important roles of HR manager in an organisation in addition
to the managerial & operative functions are discussed below.
policy initiation Advisory role
Linking pin role Representative role
Decision making role Mediator role
Leadership role Welfare role
Research role
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Role of HR Manager in anRole of HR Manager in an
OrganisationOrganisation
Ideally, the HR manager should concentrate on drawing managerialattention to human problems. Just as finance assesses costs, marketing
emphasizes customers, personnel is people centred. Success of a HR
manager depends on the degree of contribution to solve management
problems in dealing with human resources in the organisation.
Some of the important roles of HR manager in an organisation in addition
to the managerial & operative functions are discussed below.
policy initiation Advisory role
Linking pin role Representative role
Decision making role Mediator role
Leadership role Welfare role
Research role
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History of HRMHistory of HRM
The field of HRM as it currently exists, represents aThe field of HRM as it currently exists, represents a
crystallization of a variety of historical factors.crystallization of a variety of historical factors.
1.1. The Industrial revolution:The Industrial revolution:
During this period machines were bought in; technologyDuring this period machines were bought in; technology
made rapid progress; jobs were more fragmented where themade rapid progress; jobs were more fragmented where the
worker did only a small portion of the total job; andworker did only a small portion of the total job; and
specialisation increased speed and efficiency but leftspecialisation increased speed and efficiency but left
workers with dull, boring and monotonous jobs. Employersworkers with dull, boring and monotonous jobs. Employerswere keen to meet production targets rather than satisfywere keen to meet production targets rather than satisfy
workers demands. Government did very little to protect theworkers demands. Government did very little to protect the
interests of workers.interests of workers.
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2. Scientific management2. Scientific management
To improve efficiency and speed F W Taylor advocated scientificmanagement. Scientific management emphasizes that managers and
industrial engineers should develop the best way to perform each job,
people should be trained to perform each job in the best way and
management and workers should cooperate so that the job is performedin the desired manner.
Frederick W.Taylor is known as the Father of Scientific
management
Taylor stressed the importance of employee welfare as well asproduction efficiency. To boost up productivity, wage incentives based
on performance (differential price rate system) were introduced. The
emphasis was on maximum output with minimum effort through
elimination of waste and inefficiency at the shop floor- level.
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3. Trade unionism:3. Trade unionism:
Workers joined hands to protect against the exploitative
tendencies of employers and the prohibitive, unfair labour
practices through unions. Unions tried to improve the lot of
workers through collective bargaining, resolving the grievances
of workers relating to working conditions, pay and benefits,
disciplinary actions etc.
4. Human relations movement:
The famous Hawthorne experiments conducted by Elton Mayo
and his Harvard colleagues during 1930s and 1940sdemonstrated that employee productivity was affected not only
by the way the job was designed and the manner in which
employees were rewarded economically; but by certain social
and psychological factors as well.
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The human relation movement led to the wide scale
implementation of behavioral science techniques in industry for
the first time which included supervisory training programmes,emphasizing support and concern for workers , programmes to
strengthen the bonds between labour and management and
counseling programmes whereby employees were encouraged
to discuss both work and personal problems with trainedcounsellors. The movement was also influenced by the growing
strength of unions during late 1930s and 1940s. The rise of
unionism during this period was due to the passage of Wagner
act which gave workers the legal right to bargain collectivelywith employers over matters concerning, wages, job security,
benefits and many other conditions of work.
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5. Human resource approach5. Human resource approach
However, during early 60s the pet milk theory, (advocating that
happy workers are productive workers or happy cows give moremilk) of human relationists had been largely rejected. Recognising
the fact that workers are unique in their way - having individual
needs. It was recognised that each employee is a unique and highly
complex individual with different wants, needs and values. Whatmotivates one employee may not motivate another and being happy
or feeling good may have little or no impact on the productivity of
certain employees. Slowly but steadily, the trend toward treating
employees as resource or assets emerged.The Human Resource approach assumes that the job or the task
itself is the primary source of satisfaction and motivation to
employee. The emphasis in the human resource approach is on
individual involvement in the decisions made in the organisation.
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In addition, this approach emphasises the following things.People do not inherently dislike work and if they are helped establish
objectives they want to achieve them.
Most people can exercise a great deal of more self direction, self control
and creativity than are required in their current jobs.
The mangers basic job is to use the untapped human potential in the
service of the organisation.
The manger should create a healthy environment wherein all
subordinates can contribute to the best of their capacities. The
environment should provide a healthy, safe, comfortable and convenient
place to work.
The manager should provide for self direction by the subordinates and
they must be encouraged to participate fully in all important matters.
Expanding subordinates influence, self direction and self control will
lead to direct improvements in operating efficiency.
Work satisfaction may improve as a by-product of subordinateski f ll f th i t ti l