Human Resource management

1. Human Resource management - I. Arul Edison Anthony Raj, MBA, M.Phil., PGDIB, ADHRM(UK). Assistant Professor E.G.S. Pillay Engineering College, Nagapattinam. PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT

2. INTRODUCTION • Human Resource Management (HRM) is the utilization of a firm’s human resources to achieve organizational objectives. • HRM is the most happening function as of now. This is so because people offer competitive advantage to a firm & managing people is the domain of HRM. • HRM is a broad concept. Personnel Management (PM) & Human Resource Development (HRD) are a part of HRM.

3. Meaning of HRM • Human Resource Management means employing people, developing their resource utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organization, individual and the society.

4. Definition of HRM • According to Pulapa Subba Rao define,human resource management (HRM) is a managing (planning, organizing, directing & controlling) the functions of employing, developing, compensating the utilizing human resources, resulting in the creation and development of human and industrial relations which would shape the future policies and practices of human resource management, with a view to contribute proportionately to the organizational, individual and social goals.

5. Evolution and Growth of HRM • The history of development of HR management in India is comparatively of recent origin. • But “Kautilya” had dealt with some of the important aspects of HRM in his “Arthasastra”, written in 400 B.C. • Government in those days adapted the techniques of HRM as suggested by “Kautilya”. • In its modern sense, it has development only since independence.

6. Cont., • Though the importance of labour officers was recognized as early as 1929, the appointment of officers to solve labour & welfare problems gained momentum only after the enactment of Factories Act of 1948. • Under Section 49 of the Act required the appointment of Welfare Officers in companies employing more than 500 workers.

7. Cont., • At the beginning, Government was concerned only with limited aspects of labour welfare. The earliest labour legislation in India dealt with certain aspects of Indian Labourers (Regulation of Recruitment, Forwarding and Employment) sent to various British colonies in 1830s.

8. Cont.,

9. Functions of HRM Functions of HRM Managerial Functions Operative Functions Planning Staffing / Employment Organizing Human Resources Directing Development Controlling Compensation & Benefits Safety and Health Employee & Labour Relations Recent Trends in HRM

10. Cont., • Managerial Functions • Planning: (It is a predetermined course of action), in involves planning of human resources, requirements, recruitment, selection, training etc. • Organizing: (It is essential to carry out the determined course of action). • Directing: The next logical function after completing planning and organizing is the execution of the plan. • Controlling: After planning, organizing & directing various activities of Personnel Management.

11. Cont., • Operative Functions • Staffing/Employment: The process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs at the right time to achieve the organization’s objective. • Job Analysis • Human Resource Planning • Recruitment • Selection • Placement • Induction and Orientation

12. Cont., • Human Resources Development: A major HRM functions that consists not only of T&D but also individual career planning and development activities and performance appraisal. • Performance Appraisal • Training & Development • Management Development • Career Planning & Development • Internal Mobility (It consists of transfer, promotion & demotion) • Retention & Retrenchment Management • Change and Organization Development.

13. Cont., • Compensation and Benefits: It is the process of providing adequate, equitable and fair remuneration to the employees. • Job Evaluation • Wages and Salary • Incentives • Bonus • Fringe Benefits • Social Security Measures (Non – financial rewards)

14. Cont., • Safety and Health: Safety involves protecting from injuries caused by work – related accidents. Health refers to the employees’ freedom from physical or emotional illness.

15. Cont., • Employee and Labour Relations: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management.

16. Cont., • Recent Trends in HRM: Human Resources Management has been advancing at a fast rate. The recent trends in HRM includes: • Quality of work life • Total quality in human resources • HR accounting, audit and research and • Recent techniques of HRM

17. Objectives of HRM

18. Cont., • The societal objectives of HRM seek to ensure that the organization becomes socially responsive. • The organizational objectives make sure that HRM is not a standalone department, but rather a means to assist the organization reach its primary objectives. • Functional objectives remind the HRM that it has only functional value and should not become too expensive at the cost of the organization it serves. • Personal objectives assist employees in achieving their personal goals.

19. Human Resource Manager • An individual who normally acts in an advisory or staff capacity, working with other managers regarding human resource matters. • The human resource manager was primarily responsible for coordinating the management of human resources to help the organization achieve its goals.

20. Line Manager • Individuals directly involved in accomplishing the primary purpose of the organization. • There was a shared responsibility between line manager & HR professionals. • Often the line manager goes to HR for guidance in topics such as promotion, hiring, discipline, or discharge. • Line managers often perform many of the staffing functions previously accomplished by HR, such as interviewing. • Line manager must know how to deal effectively with the union.

21. Role of HR Manager • Human Resource Manager plays a vital role in the modern organization. He plays various strategic roles at different levels in the organization. • The role of the HR manager includes; • The Conscience Role • The Counselor • The Mediator • The Spokesman • The Problem-solver • The Change Agent

22. Cont., • The HR managers must exercise control very tactfully in order to win the confidence and co-operation of all line managers • They have to persuade line managers to work with staff specialists and not against them. • The authority of the HR manager should derive from concrete HR policies & programmes and from the advantages and results of accepted specialized knowledge.

23. Cont., • As a Source of Help: In certain situations (when line managers lack skill or knowledge in dealing with employee problems), experienced HR managers assume line responsibility for HR matters.

24. Cont., • As a Change Agent: HR Manager should work as an enabler and change agent regarding HR areas and he should be familiar with different disciplines like management, technology, sociology, psychology and organizational behavior as organizational adaptability, viability & development are dependent on human resource development.

25. Qualifications and Qualities of HR Manager • The functions of HR management vary from org., to org., both in nature & degree. So the qualifications required of a HR manager differ from org., to org., depending on its nature, size, location etc.

26. Cont., • Intelligence: this includes skills to communicate, articulate, moderate, understand, tact in dealing with people intelligently, etc. • Educational Skills: HR manager should possess learning & teaching skill as he has to learn and teach employees about org., growth. • Discriminating Skills: He should have the ability to discriminate between right and wrong.

27. Cont., • Executing Skills: He / She is expected to execute the management’s decisions regarding personnel issues with speed, accuracy and objectivity. • Experience and Training: Previous experience is undoubtedly and advantage provided the experience was in an appropriate environment and in the same area.

28. Cont., • Professional Attitudes: Finally, professional attitude is more necessary particularly in the Indian context. • Qualification: Qualifications prescribed for the post of HR manager vary from industry to industry and from State to State. However, the qualification prescribed by various org., include MBA with HRM Specialization, M.H.R.M, M.A.(IR&PM), M.P.M & P.G.D.P.M.

29. Computer applications in HRM • Computer technology enables organizations to combine human resource information into a single database. This database is often referred to as a human resource information system (HRIS)

30. Human Resource Information System (HRIS) • A human resource information system (HRIS) is an integrated system designed to provide information used in HR decision making.

31. Definition for HRIS • An HRIS may be defined as the system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding and organization’s human resource.

32. Why does an Org., need HRIS? • An org., grow in size, the maintenance & use of emp., information becomes more & more difficult. • A second reason for the increase in HRISs is the rapid reduction in the cost of computing. • A third reason for the growth in HRISs is the need to produce reports & monitor information on employees in order to comply with legal requirements. • Finally, as competition has increased, org., have realized that managing their human resource is an important as managing their financial & raw material resources.

33. Objective of HRIS • To acquire, store, manipulate, analyze, retrieve, and distribute the information of human resource. • To facilitate HR decision-making in the following areas: • Man-power planning • Recruitment & selection • Employment, including promotion, transfer, etc. • Education & training • To provide relevant information on employees to government agencies as part of the legal requirements.

34. Uses of HRIS

35. Problems in developing an HRIS • HRIS may be expensive • Threatening & inconvenient to those who are not comfortable with computers. • Employee privacy

36. Computer application in HRM • Computer applications in strategic HRM an HR Planning. • Computer application in Job Analysis • Computer application in Recruitment • Computer application in Selection. • Computer application in HRD & Career Planning

37. Cont., • Computer application in Performance Appraisal • Computer application in Compensation & Benefits • Computer application in Health & Safety • Computer application in Labour Relations • Future applications of Computer in HRM

38. Human Resource Accounting • Human resource accounting is the process of identifying and measuring data about human resources and communicating this information of interested parties. • It deals with investments in people and with economic results of those investments.

39. Definition for HR Accounting • According to Stephen Knauf defined HRA as “the measurement and quantification of human organizational inputs, such as recruiting, training, experience and commitment.” • Eric Flamholtz explained human resource accounting as accounting for people as organization resources. It is the measurement of the cost and value of people for the organization.

40. Human Resource Audit • An audit is a review and verification of completed transactions to see whether they represent a true state of affairs of the business or not. • Human Resource (HR) Audit refers to an examination & evaluation of policies, procedures & practices to determine the effectiveness and efficiency of HRM.