Human Resources
Meaning of human resources, significance of human resources, meaning of
manpower planning, concept of productivity, factors of productivity, factors
affecting productivity, worker’s participation in management, unilateral
and cooperative participation
Human Resource is the process of employing people, training them,
compensating them, developing policies relating to the employees and
developing strategies to retain them. Human Resource takes care of the
placements. It refers to the set of people who make up the work force of an
organization, business sector, industry or economy. Employee turnover is one of
the biggest component of a company or an organization. It is considered as the
human capital, the knowledge and skills which the individuals command. They
are also called manpower, labor, personnel or associates. John R Commons, an
American institutional economist, first coined the term “human resource” in his
book “The Distribution of wealth”.
Positive techniques of human resource:
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Salary
Motivation
Bonus and incentives
Fringe benefit
Pension plans
Cab facilities
Cafeteria
Pre-accommodation
Travel Allowance
Housing allowance
Performance appraisal
Negative techniques of human resource:
• Demotion
• Lack of appreciation
Significance of human resource
People as human resources are important because they can make the best uses of
nature to create more resources by applying knowledge, skills and technology. It
improves the quality of people’s skills so that they are able to create more
resources. At the organizational level, it helps achieve the goals and objectives.
It ensures efficient and effective working environment through policies and
certain set of rules. Human resource tries to maintain the respect and dignity of
every individual, certainly because people have emotions and cannot work as
machines ignoring everything around them. It is a big group of people who work
in coordination with each other to run the organization. The role of the HR is to
see that every such aspect is covered in its policies and if not then has that
capability to resolve them. The other importance of human resource in an
organization is in introduction of technology. HR becomes important here as it
ensures swift introduction of anything new or a change.
Meaning of manpower planning
Manpower planning consists of putting the right number and right kind of people
in the right place so that an organization can meet its objectives. It enables
organizations to have the accurate estimate of number of employees to
accomplish set goals, reduce waste in employment, lessen uncertainties about
current personnel level needs and eliminates the mistakes involved in staffing and
enhances effective utilization of its human resources.
Importance of manpower planning:
• Key to managerial functions
• Efficient utilization
• Motivation
• Better human relations
• Higher productivity
Concept of productivity
The concept of productivity can be applicable to any economy, small, medium
and large business, government and individuals. Productivity aims at the
maximum utilization of resources for yielding as many goods and services as
possible, desired by consumers at lowest possible cost. Productivity is defined
mechanically as the ratio between the input and output of goods and services and
input of resources consumed in the process of production. But it is an
organizational challenge encompassing the human, cultural, technological and
moral aspects. It is an all-out effort in every sphere of activity of the organization,
a step towards achieving the target of the most efficient management of all the
available resources.
Productivity means an economic measure of output per unit of input. Output
refers to the total production in terms of units or in terms or revenues while input
refers to all the factors of production used like capital, labour, equipment, etc.
productivity is a good indicator of the efficiency with which a factory is
operating. If a firm has higher productivity, i,e. it produces more with a given
amount of inputs, it means it is utilizing the resources properly. Similarly, a lower
productivity indicates wastage of resources and time.
Factors of productivity
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Work environment in the work place
Training and career development opportunities
Process
Pay structure
Employee wellness
Cultural diversity
Use of new technologies
Workplace ergonomics
Workers participation in management
Workers participation in management is a process by which subordinate
employees, either individually or collectively, become involved in one or more
aspects of organizational decision making within the enterprise in which they
work. It improves response to job challenges and also encourage a worker’s
ability to give creative ideas. Workers participation in management is an essential
ingredient of industrial democracy. Article 43A of the Constitution of India deals
with ‘Participation of workers in management in industries’ and falls under Part
IV – Directive Principles of the State Policy. The state shall take steps, by suitable
legislation or in any other way, to secure the participation of workers in the
management of undertakings, establishments or other organizations engaged in
any industry. Worker’s participation is also known as labors participation or
employee participation in management. The International Labor Organization
(ILO) has been encouraging member nations to promote the scheme of worker’s
participation in management.
Benefits of worker’s participation in management:
• Democratic participation in decision making
• Maximum employer-employee collaboration
• Minimum state intervention
• Realization of greater measure of social justice
• Greater industrial efficiency
• Higher level of organizational health and effectiveness