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BLOCK - I Resource Management
NATUE OF HUMAN RESOURCE MANAGEMENT
UNIT 1 INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
Structure
1.0 Introduction 1.1 Objectives 1.2 Definition and Objectives of Human Resource Management (HRM) 1.2.1 Nature and Scope 1.2.2 Objectives of HRM 1.3 Functions of Human Resource Management 1.4 Answers to Check Your Progress Questions 1.5 Summary 1.6 Key Words 1.7 Self Assessment Questions and Exercises 1.8 Further Readings
1.0 INTRODUCTION
Human resource management (HRM) is concerned with the 'people' dimension in management. This term is increasingly used to refer to the philosophy, policies, procedures and practices relating to the management of people within organizations. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. Those organizations that are able to acquire, develop, stimulate and keep outstanding workers will be both effective and efficient. Those organizations that are ineffective or inefficient run the risk of stagnating or going out of business. Human resource thus, creates organizations and makes them survive and prosper. If human resources are neglected or mismanaged, the organization is unlikely to do well. In this unit, we will discuss the definition of the Human Resource Management. We will also focus on the objectives and functions of the Human Resource Management.
Resource Management
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1.1 OBJECTIVES
After going through this unit, you will be able to: Understand the concept of human resource management Discuss the definition of the human resource management Describe the objectives and functions of the human resource management
1.2 DEFINITION AND OBJECTIVES OF HUMAN
RESOURCE MANAGEMENT (HRM)
HRM is about managing people and processes of the organization in such a way that the organization can achieve its plans and become successful. In HRM, the workforce is the most important factor of production. Therefore, how companies recruit, train, reward, motivate and discipline their employees is of crucial importance to their success. There are three major principles to the approach of managing people, which are as follows: (i) People are the most important resources an organization has and managing them effectively is the best way to achieve success. (ii) Human resource policies should be made in such a way that employees can contribute towards the fulfilment of organizational plans. (iii) The culture of the organization should be such that all employees feel valued and work towards fulfilling organizational goals. These days, one of the most important objectives of HRM is to develop a workforce that is very committed towards the organization and who are very good at learning new skills quickly and taking on new tasks. Now let us look at definitions of HRM from some of the leading experts in the subject. According to Ivancevich and Glueck, ‘HRM is the function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals.’ Byars and Rue say that ‘HRM encompasses those activities designed to provide for and coordinate the human resources of an organization.’ According to Dale Yoder, ‘The management of human resources is viewed as a system in which participants seek to attain both individual and group goals.’ According to Flippo, HRM is ‘the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished’.
Resource Management
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More limited supplies of highly trained labour Rapidly changing government legislation and regulations Increased globalization of industries These changes in business environment present a number of competitive challenges that are quite different from those faced by firms in earlier times. There exists a substantial and growing body of research evidence showing a strong connection between how firms manage their people and the economic results they achieve. The adaptation of high-performance work practice can have an economically significant effect on a firm. High-performance work practices provide a number of important sources of enhanced organizational performance. People work harder because of the increased involvement and commitment that comes from having more control in their work. They work smarter because they are encouraged to build skills and competence. HR systems have important, practical impacts on the survival and financial performance of the firms and on the productivity and quality of work life of the people in them.
1.2.2 Objectives of HRM
Objectives are predetermined goals of an organization which employees have to try their best to achieve. Every organization has some objectives and every part of it should contribute directly or indirectly to the attainment of desired objectives. Objectives determine the character of an organization and serve as the basis for voluntary co-operation and co-ordination among employees. Objectives also provide benchmarks or standards of evaluating performance. The primary aim of HRM is the promotion of effectiveness of the employees with performance of their allotted duties by the substitution of co-operation in the common task in place of the suspicions and hostility which have so long been characteristic of relations between employees and employers. According to Indian Institute of Personnel Management, ‘Personnel management (Human Resource Management) aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other. It seeks to bring together and develop an effective organization, enabling the men and women who make up an enterprise to make their own best contribution to its success both as an individual and as a member of a working group. It seeks to provide fair terms and conditions of employment and satisfying work for all those employed.’ Objectives also provide benchmarks to review the performance of the employees. The primary objective of HRM is to bring about effectiveness of employees at the workplace. Let us now look at the main objectives of HRM: To improve the performance of the organization; this can be done by building better employee morale, which leads to more efficient individual and group performance
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Resource Management To give everybody the belief that the organization is doing everything it can to give the best services possible To create and use an able and motivated workforce that can help to achieve organizational goals To spot and satisfy individual and group needs by providing good salaries, incentives, employee benefits, status, recognition, security, etc. To make best use of the skills and knowledge of employees To improve the workforce continuously by providing training and developmental programmes To maintain high employee morale and good relationships by improving the various conditions and facilities To improve job satisfaction by encouraging and helping every employee to realize his full potential To provide good facilities for work and create a good atmosphere so that employees want to work in the organization for a long time To find out and satisfy individual needs and group goals by offering suitable monetary and non-monetary incentives To develop and maintain a quality of work life (QWL) which keeps everybody in the organization happy
1.3 FUNCTIONS OF HUMAN RESOURCE
MANAGEMENT
HRM involves two categories of functions: (i) operative functions and (ii) managerial functions.
1. Operative functions
The operative functions essentially belong to activities the concerned with procuring, developing compensating, utilizing and maintaining an efficient workforce.
(i) Procurement: Procuring means recruiting the required number of employees with due qualifications and experience keeping in view the importance of achieving the objectives set before the organization. It is mainly concerned with hiring the right people, in the right place, at the right time. It includes activities like manpower planning, selection and placement. (ii) Development: Development means the activities meant to increase the efficiency and skills of the workers through training and education. It includes activities like training, seminars, group discussions, education, etc. (iii) Compensating: It includes the activities which deal with the method and standard of remuneration and terms of employment.
