HRM AND OVERALL BUSINESS
Human Resources:The term “ human resources” may be defined as the total knowledge, skills,
creative abilities, talents and aptitudes of organization’s workforce as well as the values,
attitudes, approaches and belief’s of individuals involved in an organization.
“It is the sum total of inherent abilities, acquired knowledge and skills represented
by the talents and aptitudes of the persons employed in an organization.”
HUMAN RESOURCE MANAGEMENT:Human resource management has come to be recognized as
an inherent part of management which is concerned with the human resources of an organization.
In other words, human resource management is concerned with getting better results with the
collaboration of people.
“Human resource management is an integral but distinctive part of management,
concerned with people at work and their relationships within the enterprise. It seeks to bring
together into an effective organization the men and women who staff the enterprise, enabli ng
each one to make his/her best contribution to its success, both as a member of a working group
and as an individual. It seeks to provide conducive environment both to effective work and human
satisfaction.”
It is not something that could be separated from basic managerial function. It is a
major component of broader managerial function and has roots and branches extending
throughout and beyond the organization.”
Nature of Human Resource Management:-
The Human resource management function is performed by
all the managers throughout the organization rather than by the personnel department. A
manager is to get best out of his people, he must take basic responsibility of selecting people who
will work under him and to develop, motivate and guide them .
1. Inherent part of Management:Human Resource Management is inherent in the process of
management. This function is performed by all the
managers throughout the organization rather than
personnel department only.
2. Pervasive function:HR Management is a pervasive function management. It is to be
performed by all managers at various levels in the organization. In
other words, every from managing director to the foreman is
required to perform the personnel function on a continuous basis.
An HR manager can seek advice and help in
managing people from experts who have special competence in
human resource management.
3. People centered:Human Resource Management is people centered and is relevant in
all type of organizations. It is concerned with all categorie s of
personnel from top to bottom of organization. The classification of
personnel are
i)
Blue-collar employees (i.e) those who are engaged in entrylevel operations.
ii)
Managerial and non-managerial personnel.
iii)
Professionals (chartered accountant, Company Secretary,
Lawyer etc) and non-professional personnel.
4. Continuous Process:HRM function must be performed continuously if the organizational
objectives to be achieved smoothly.
“The personnel function cannot be turned on and off
like water from a faucet, it cannot be practiced only one hour a day
per week.
HRM requires a constant alertness and awareness of human
relation and their importance in everyday operations.
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:The objective of human resource management in an organization is
to obtain maximum individual development, desirable workable relationships between employers
and employees and to effect the moulding of human resources as contrasted of human resources.
1. To ensure effective utilization of human resources.
2. To establish and maintain an adequate organizational structure of relationships among all
members of an organization by dividing tasks into functions, positions and jobs and by
defining clearly the responsibility, accountability, authority for each j ob and its relation
with other jobs in the organization.
3. To generate maximum development of human resources within the organization by
offering opportunities for advancement to employees through training and education.
4. To ensure respect for human beings by providing various services and welfare facilities to
the personnel.
5. To ensure reconciliation of individual/group goals with those of the organization in such a
manner that the personnel feel a sense of commitment and loyalty towards it.
6. To identify and satisfy the needs of individuals by offering various monetary and non monetary rewards.
7. To achieve and maintain high morale among employees in the organization by securing
better human relations.
FUNCTIONS OF PERSONNEL MANAGEMENT:PERSONNEL FUNCTIONS
Managerial
Operative
Advisory
• Planning
• Organising
• Directing
• Controlling
• Employment
• Training and
Development
• Remuneration
• Working conditions
• Motivation
• Personnel records
• Industrial relations
• Separation
• Advice to top
management
• Advice to
departmental
heads
Managerial functions:1. Planning: To get things done through his subordinate, a manager must plan ahead.
Planning is necessary for organization to give its goals and directions to achieve them. For
a HR manager, planning means the determination in advance o f HR programs that will
contribute to the goals established for the enterprise (i.e) anticipating vacancies, planning
job requirements, job descriptions and the determination of the sources of recruitment.
2. Organizing: Once the HR manager has established objectives and developed plans and
programmes to reach them, he must design and develop organization structure to carry
out the various operations (i.e)
i)
Grouping of personnel activity logically into functions or positions.
ii)
Assignment of different groups of activities to different individuals.
iii)
Delegation of authority according to the tasks assigned and responsibilities involved.
iv)
Co-ordination of activities of different individuals.
3. Direction: The plans are to be put into effect by people. But how smoothly th e plans are
implemented depends on the motivation of people. The direction function of the HR
manager involves encouraging people to work willingly and effectively for the goals of the
enterprise. In other words, direction is meant to guide and motivate th e people to
accomplish the personnel programmes.
The HR manager can motivate the employees in an organization through
career planning, salary administration, ensuring employee morale, developing cordial
relationships and provision of safety and welfare requirements of employees.
4. Controlling: Controlling is concerned with the regulation of activities in accordance with
the plans, which in turn have been formulated on the basis of the objectives of the
organization. It is the observation and comparison of results with the standards and
deviations that may occur. Controlling helps to evaluate and control the performance of
various departments in terms of various functions. It involves performance appraisal,
critical examination of personnel records and statistics and personnel audit.
OPERATIVE FUNCTIONS:1.EMPLOYMENT: One of the operative function of HR department is employment of proper kind
and number of persons necessary to achieve objectives of the organization. It involves
recruitment, selection, placement etc., of the personnel. Before th is process, it is better to
determine the manpower requirements both in terms of number and quality of the personnel.
2. Development: Training and development of personnel is a follow up of employment function. It
is a duty of management to train each employee properly to develop technical skills for the job,
also develop him for the higher jobs in the organization. Proper development of personnel is
necessary to increase their skills in doing their jobs.
3. Compensation: This function will determine the adequate and equitable remuneration of the
employees in the organization based on their contribution to organizational goals. The person can
be compensating both in terms of monetary as well as non-monetary rewards which fixing the
compensation following must be considered.
i) basic needs
ii) requirements of jobs
iii. legal provisions abiding minimum wages
iv. capacity of organization to pay
v. wage level afforded by competitors etc.
4. Maintenance: Once the person is given training they must be given good conditions so that
they may like their work and work-place and maintain their efficiency. Working conditions
certainly influence the motivation and morale of the employees. These include me asures taken
for health, safety and comfort of the work-place.
5. Motivation: Employees work in the organization for satisfaction of their needs. Most of the
time, it is found that they do not contribute towards organizational goals as much as they can.
This happens when employees are not motivated. The HR manager helps various departments to
design a system of financial and non-financial rewards to motivate the employees.
6. Personnel Records: The human resource department maintains the records of the empl oyees
working in the enterprise. It keeps full records of their training, achievements, transfer,
promotion etc. It also preserves many other records relating to the behavior of personnel like
absenteeism and labor turnover and the personnel programmes and policies of the organization.
7. Industrial Relations: The Hr managers can help in collective bargaining joint consultation and
settlement of disputes, if they arise. Because HR manager is in possession o f full information
relating to personnel and has the working knowledge of various labor enactments. He can help by
laying down the grievances procedures to redress the grievances of the employees.
ADVISORY FUNCTIONS:Personnel or Human resource manager has specialized education and
training in managing human relations. With that expertise he can give advise on matters relating
human resources of the organization.
i)
Top Management:
Human resource manager advises the top management in
formulation and evaluation of personnel programmes, policies and
procedures. He also gives advise for achieving and maintaining
good human relations and high employee morale.
ii)
Departmental Heads:
Personnel manager offers advise to the heads of various
departments on matters such as manpower planning, job analysis and design,
recruitment and selection, placement, training, performance appraisal etc.