Human Resource Management

Introduction
Management has been defined as “the art of getting things done through
others". But management is much more than this.
It is further defined as”…that field of human behaviour in which managers
plan, organise, staff, direct and control human, physical and financial
resources in an organised effort, in order to achieve desired individual and
group objectives with optimum efficiency and effectiveness. Thus human
resources is a crucial sub-system in the process of management. The term
human resources is quite popular in India with the institution of ‘Ministry of
Human Resources Development’ in the Union Cabinet.
Meaning of Human Resources
According to Leon C.Magginson, the term human resources can be thought of
as, “the total knowledge, skills, creative abilities, talents and aptitudes of an
organisation’s workforce, as well as the value, attitudes and beliefs of the
individuals involved. 1
Human Resource Management
All the organizations have three basic resources,that is,men,material and
money. Out of these,the Human Resource occupies a vital position, because it is
through the men on the job that the organization is able to utilise the material
and machine resources for the maximum benefit of the organization. In every
organization, public or private, big or small, old or new, Human Resource
management is of crucial significance.
Human Resources management has two aspects.
The management or administration aspect.
The development aspect.
Definition of HRM
For Flippo, Human Resources management 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.
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 Personnel Vs Human Resources
Personnel Management Human Resource Management
1. Personnel means persons employed. 1. Human Resource management is the
Personnel 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 management
treated 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.
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5. Employees are used mostly for organisational 5. Employees are used for the multiple mutual
benefit. Benefit of the organisation,employees and
 Functions of HRM
Human 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 functions
Planning

Organizing

Directing

Controlling 4
 Operative Functions
The operative functions of Human Resources
management can be discussed in the following:

1. Procurement Function
Job Analysis
Human Resource Planning
Recruitment
Selections
Placement
Induction or Orientation

2.Development Function
Training
Executive Development
Performance and Potential Appraisal
Career Planning and Development 5
 3. Compensation Function:
Job Evaluation
Wage and Salary administration
Bonus
4. Integration Function
Collective bargaining
Conflict resolution
Employee counseling
Providing Job satisfaction
Worker’s 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
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Continuous function
 Objectives 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 employee’s 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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 Role of HR Manager in an
Organisation
Ideally, the HR manager should concentrate on drawing managerial
attention 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
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Research role
 Scope of HRM
The scope of HRM is very wide. The Indian Institute of
Personnel management has specified the scope of HRM thus:
 Personnel aspect: This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training and
development, retrenchment, remuneration, incentives, productivity
etc.
 Welfare aspect: It deals with working conditions and amenties such
as canteens, creches, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation
facilities,etc.
 Industrial relation aspect: This covers union-managemnt relations,
joint consultation, collective bargaining, grievances and disciplinary
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 History of HRM
The field of HRM as it currently exists, represents a
crystallization of a variety of historical factors.
1. The Industrial revolution:
During this period machines were bought in; technology
made rapid progress; jobs were more fragmented where
the worker did only a small portion of the total job; and
specialisation increased speed and efficiency but left
workers with dull, boring and monotonous jobs.
Employers were keen to meet production targets rather
than satisfy workers demands. Government did very little
to protect the interests of workers.
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2. Scientific management
To improve efficiency and speed F W Taylor advocated scientific
management. 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
performed in the desired manner.
Frederick W.Taylor is known as the “Father of Scientific
management”
Taylor stressed the importance of employee welfare as well as
production 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. 12
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 1940s
demonstrated 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
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and psychological factors as well.
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 trained counsellors. 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 collectively with employers over matters concerning,
wages, job security, benefits and many other conditions of
work. 14
5. Human resource approach
However, during early 60s the ‘pet milk theory’, (advocating that
happy workers are productive workers or happy cows give more
milk) 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. What
motivates 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 subordinates16
making full use of their potential.