Unit - 1
Personnel management
HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match an organization’s needs to the skills and abilities of its employees.
Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.
HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization’s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo).
According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”.
According to Dessler (2008) the policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM.
Nature of HRM
HRM is a management function that helps manager’s to recruit, select, train and develop members for an organization. HRM is concerned with people’s dimension in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management Functions and Principles. The functions and principles are applied to acquiring, developing, maintaining and providing remuneration to employees in organization.
2. Decision Relating to Employees must be Integrated. Decisions on different aspects of employees must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will result in betterment of services to customers in the form of high-quality products supplied at reasonable costs.
4. HRM Functions are not Confined to Business Establishments Only but applicable to nonbusiness organizations such as education, health care, recreation and like.
Function
Operative Functions
- Recruitment: This is the most challenging task for any HR manager. A lot of attention and resources are required to draw, employ and hold the prospective employees. A lot of elements go into this function of recruitment, like developing a job description, publishing the job posting, sourcing the prospective candidates, interviewing, salary negotiations and making the job offer.
2. Training and Development: On the job training is the responsibility of the HR department. Fresher training may also be provided by some companies for both new hires and existing employees. This Fresher training is mainly done to make the employees up to date in their respective areas as required by the company. This function makes the employees understand the process and makes it easy for them to get on their jobs with much ease. During the process of the training and development, the results are monitored and measured to find out if the employees require any new skills in addition to what he/she has.
3. Professional Development: This is a very important function of Human Resource Management. This function helps the employees with opportunity for growth, education, and management training. The organization undertakes to sponsor their employees for various seminars, trade shows, and corporal responsibilities. This, in turn, makes the employees feel that they have been taken care by their superiors and also the organization.
4. Compensation and Benefits: A company can attain its goals and objectives if it can acclimatize to new ways of providing benefits to the employees. Some of the benefits given by companies are listed below for our understanding:
- Working hour flexibility
- Extended vacation
- Dental/Medical Insurance
- Maternal/Paternal Leave
- Education Reimbursement for children
5. Performance Appraisal: The employees of any organization will be evaluated by the HR department as per the performance. This function of Human Resource Management is to help the organization in finding out if the employee they have hired is moving towards the goals and objectives of the organization. On the other hand, it also helps the company to evaluate whether the employees need improvement in other areas. It also helps the HR team in drawing certain development plans for those employees who have not met the minimal requirements of the job.
6. Ensuring Legal Compliance: To protect the organization this function plays a crucial role. The HR department of every organization should be aware of all the laws and policies that relate to employment, working conditions, working hours, overtime, minimum wage, tax allowances etc. Compliance with such laws is very much required for the existence of an organization.
Managerial Functions
- Planning: This function is very vital to set goals and objectives of an organization. The policies and procedures are laid down to achieve these goals. When it comes to planning the first thing is to foresee vacancies, set the job requirements and decide the recruitment sources. For every job group, a demand and supply forecast are to be made, this requires an HR manager to be aware of both job market and strategic goals of the company. Shortage versus the excess of employees for that given job category is determined for a given period. In the end, a plan is ascertained to eliminate this shortage of employees.
2. Organizing: The next major managerial function is to develop and design the structure of the organization. It fundamentally includes the following:
- Employees are grouped into positions or activities they will be performing.
- Allocate different functions to different persons.
- Delegate authority as per the tasks and responsibilities that are assigned.
3. Directing: This function is preordained to inspire and direct the employees to achieve the goals. This can be attained by having in place a proper planning of career of employees, various motivational methods and having friendly relations with the manpower. This is a great challenge to any HR manager of an organization; he/she should have the capability of finding employee needs and ways to satisfy them. Motivation will be a continuous process here as new needs may come forward as the old ones get fulfilled.
4. Controlling: This is concerned with the apprehension of activities as per plans, which was formulated on the basis of goals of the company. The controlling function ends the cycle and again prompts for planning. Here the HR Manager makes an examination of outcome achieved with the standards that were set in the planning stage to see if there are any deviations from the set standards. Hence any deviation can be corrected on the next cycle.
Advisory Functions
- Top Management Advice: HR Manager is a specialist in Human Resource Management functions. She/he can advise the top management in formulating policies and procedures. He/she can also recommend the top management for the appraisal of manpower which they feel apt. This function also involves advice regarding maintaining high-quality human relations and far above the ground employee morale.
2. Departmental Head advice: Under this function, he/she advises the heads of various departments on policies related to job design, job description, recruitment, selection, appraisals.
The Human Resource Manager has been playing a variety of roles at different stages in the past, like that of a police agency, a legal defender of rights and a negotiator, a catering man meeting the welfare needs of the employees. But the theme has always been set by the thinking at the top-level management. Looking back at the historical manifestation of the role of a Personnel Manager in industry, it may be said that by and large it reflected the top management’s own concept of the personnel function and the methods of managerial control they believed in. The personnel manager has been playing a variety of roles at different stages in the past, like that of a police agency, a legal defender of rights and a negotiator, a catering man meeting the welfare needs of the employees. But the theme has always been set by the thinking at the top-level management.
It is difficult precisely to relate the present-day functions of human resource manager to his role as conceptualized earlier. If the human resource management is what HR Managers do, the picture that emerges is indeed confusing, for what HR managers do can be compared to a Sunday morning jumble sale- a collection of incidental chores, firefighting tasks, welfare functions, and a watch-dog function.
In the modern era, the HR Manager typically performs a variety of roles, such as the role of conscience, of a counselor, a mediator, a company spokesman, a problem-solver and a change agent. He performs many miscellaneous roles in accordance with the needs of a situation, such as
1. The Conscience Role: Under this role, the HR Manager reminds the management of their moral and ethical obligations towards employees.
2. The Counsellor Role: Under this role he encourages the employees to meet him frequently for consultation and discussion of their mental, physical and career problems and at times even their family problems.
3. The Mediator Role: Under this role, he tries to settle disputes between labour and management as also those between an individual and a group. He is not only a peace maker but also serves as a liaison and communicating link.
4. The Spokesman Role: under this role, he works as a spokesman for or as a representative of his organization. This he is able to do as he deals intimately with many key organizational activities and functions and has a better overall picture of his company’s operations.
5. The Problem-Solver Role: He is a problem-solver in respect of issues involving human resource management and overall long-range organizational planning.
6. The Change- Agent Role: He serves as a change agent in respect of introduction and implementation of major institutional changes.
Key takeaways
Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization
Status and competencies of HR Manager
The competency models for HR managers in both the private sector and the public sector are virtually the same. HR managers in either sector is responsible for creating and sustaining a productive workforce and positive work environment. HR professionals need business acumen, HR expertise, leadership qualities and the ability to establish HR as an advocate
1. Communication
An HR manager must be able to communicate with everyone in the workplace -- from line staff to executive leadership. In addition, communication skills are important for HR managers to interact effectively with outsourcing providers, union leaders, public officials and employees, prospective employees and colleagues. They need to know when to adapt their communication skills to the audience and the situation. For example, HR managers must be able to convey the importance of fair employment practices to the company's executive team with the same genuineness and passion as they would to hourly employees.
2. Analytical and Critical Thinking
Analytical and critical thinking skills are a must for HR leaders. An HR manager has to exercise sound judgment and engage in high-impact decision-making in a number of areas. The ability to analyze situations and view the implications of certain decisions from a critical perspective is particularly useful for HR leaders. For example, the decision whether to outsource one or several HR functions isn't something that happens without considering the impact outsourcing has on individual employees as well as the organization overall. HR managers also are involved in representing the company in matters involving employment litigation, which requires that they be able to justify the company's actions related to employment decisions such as hiring and firing.
3. Relationship-Building
Creating a cohesive HR department that works collaboratively to achieve the goals of the department as well as help the organization reach its goals related to workforce development is a competency that HR managers must have. Relationship-building and interpersonal relationship skills are fundamental to an HR manager's success. One of the challenges HR faces is establishing credibility with employees -- many employees equate their HR departments with the school principal's office, which suggests a level of intimidation and trepidation associated with their view of HR's purpose. That being said, an HR manager must have the ability to establish credibility and trust as well as balance the obligation to be an advocate for both the organization and its employees.
4. Leadership
Leadership skills are an essential competency for HR managers. HR managers are responsible for creating strategic plans for the HR department as well as the overall workforce. Therefore, leadership skills are critical, particularly in the process of justifying the functional elements of a strategic plan to the company's management team. In addition, HR managers have to direct the activities of the HR department, and in doing so, they need the type of leadership skills that influence HR generalists' and HR specialists' commitment to the HR department goals.
A policy is a guide for repetitive action in major areas of business. It is a statement of commonly accepted understanding of decision-making criteria. Policies are set up to achieve several benefits. By taking policy decisions on frequently recurring problems, the top management provides the guidelines to lower-level managers.
It will permit decisions to be made in similar situations without repeating the reasons and expensive analysis required initially to state the policy. Policies help managers at various levels to act with confidence without the need of consulting the superiors every time. This will also ensure promptness of action.
Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce. These policies, when organized and disseminated in an easily used form, can serve to anticipate many misunderstandings between employees and employers about their rights and obligations in the organization.
Human Resources policies are generalized guidelines on employee management, adopted by consensus in an organization to regulate the behaviour of employees and their managers or supervisors. As for the dichotomy between an HR policy and a procedure, they can be compared to a human being and the shadow. Both are inseparable and as shadows set the outlines of a human being, so do procedures set the outlines of an HR policy.
“HR policies may be defined as guidelines, procedures, codes and regulations adopted by management to guide workplace activities within acceptable limits, which are communicated through a summarized statement called policy statement and implemented through instructions referred to as policy directives.”
The HR policies are discussed below:
1. Originated Policies – These are set-up by top management intentionally with a view to guiding executive pondering over various levels.
2. Appealed Policies – These policies are formulated to fulfill the requirements of certain unusual situations which are riot found covered by the earlier policies. Usually, such requests came from subordinates who fail to handle the cases on the basis of the guidance offered by the existing policies.
3. Imposed Policies – As it is evident from the name of these policies these are formed under imposition or pressure from external agencies like government, trade associations, and unions.
4. General Policies – These policies manifest the philosophies and priorities of the top management in formulating the broad plan for mapping out the organization’s growth chart.
5. Specific Policies – As it is evident from their name, these policies cover specific issues such as hiring, rewarding and bargaining. Such policies, however, should be in line with the basic framework which is offered by the general policies.
6. Written Policies and Implied Policies – Implied policies as evident from the behaviour of members like dress code, gentle tone while interacting with to customers, not getting angry while at work, etc. On the other hand written policies, spell out managerial thinking on paper so that there is very little room for loose interpretation.
Different stages are there in the evolution of Human Resource Management for its growth from the industrial era to the present era. These are categorized as follows:
Industrial revolution era (19th century)
During the advancements in the industrial sector in Western Europe and the USA, there was a systematic growth of HRM. The industrial revolution comprises of the development of machinery, usage of mechanical energy and the existence of the concept of the factory with ample manpower.
The old cottage system was replaced by the factory system. Under this system, there were various changes introduced such as the mechanical process, migration of workers from their place to other places and communication between the workers and the owners. Three systems of HRM were introduced under this system such as the hiring of workers, training and controlling them properly. The master-servant philosophy was used to keep control over these workers.
Trade Union Movement Era (Close to the 19th century)
With the emergence of the factory system, the workers started to establish their own union on the basis of their common interest which was named as Trade Unions. The basic aim behind these associations was to protect the interest of the members and deal with the grievances of the workers that may arise due to child labour, long hours of work and pathetic working conditions.
Other working issues also became prevalent such as economic issues, fewer wages, worker’s benefits and other services. To give a backfire to these problems, the Trade Union did strikes, slowdowns, walkouts, boycott and so on as their underlined weapon. All these issues reflected the need for employee Grievance handling system, disciplinary practices; expand the benefits of employees, holidays and vacation time and defensible structure for a wage.
Social Responsibility Era (beginning of the 20th century)
A humanistic, as well as paternalistic approach, was adopted towards the factory workers by the first decade of the 20th century. At the short note, it signifies that the worker is like a child for their owner and the owner is the father who took care of the entire labour.
Some additional facilities and concessions are given to the labour by the industrialists who were working on this policy such minimize the hours of working, improved working conditions, shelters to workers and so on. This is a social approach that was adopted to combat the problem of workers and it is considered as a welfare scheme to control the workers.
Scientific Management Era (1900-1920s)
Taylor started looking for some technical approaches to increase the worker’s productivity at the beginning of the 20th century. He wrote some of the scientific techniques that are relevant to manage the workforce and even a book on management as well. The management of the workers is relevant to the scientific management techniques such as functional foremanship, standardization and simplification of work and differential wage rate system.
Some of the principles of scientific management are given below:
- Replacement of rule of thumb with science.
- Not conflicts but only harmony.
- Cooperation and say no to individualism.
- Growth of each worker.
Human Relations Era (1930-1950s)
More focus was put on the human factor at work and what affected the people’s behaviour during the 1920’s. During this era, it was highly recommended to use psychology while doing personnel testing, interviewing, attitude measurement as well as learning also.
Basically, the period was defined as “Industrial Psychological Era” in the year 1924. After conducted deep research by the professors of Harvard Business School, it was observed that the productivity of the workers depends on social factors at work, formation and influence of groups, the nature of leadership and supervision and at last, the communication.
It was concluded that the management ought to maintain human relations at work along with physical conditions to increase productivity.
Behavioral Science Era (1950-1960s)
On the contrary to the happy workers are good workers, the behavioural scientists suggesting that the behaviour of a human be the highlighted aspect. Various research methodologies are used to comprehend the nature of the job as well as people in the working atmosphere.
Here are some of the major conclusions made by the behavioural scientist that are given below:
People like their work but there is a need to establish some goals so that they can work properly to achieve them in a timely manner. It also increases their job satisfaction.
Employees generate maximum creativity as compared to how much it is needed. But their potential is not utilized in a good manner.
Usage of the untapped potential of an employee is the duty of managers.
An environment ought to be created so that people can contribute in the best possible way and this must be done by the manager.
The expansion of subordinate’s influence, self-direction and self- control can improve the operating efficiency.
Systems and Contingency Approach Era (1960 onwards)
In the present era, a high level of attention is seeking by the System and Contingency Approach Era. It is a cooperated approach that signifies the empirical data to manage the human resources. It is attached with a huge idea of analyzing the objects that must depend on the analysis involving simultaneous variables that are mutually dependent on each other.
Human Resource Management Era (1980 onwards)
A huge number of people started working in factories when there was a replacement of the old cottage system with the factory system. Then, there was a need for hiring, developing and keeping an eye over the workers. With this intention, the department of industrial relations emerged in most of the big business firms.
By the time, the scope of the industrial relations department was extended as the conflicts arose between the supervisory staff too. Then, it was renamed as Personnel department.
With the increasing competition within the business sector, the competition for talent, skills, abilities and knowledge also touched the sky and it reflected the need for the good human management team. Further, the manpower was considered as socio-psychological beings for the achievement of organizational goals, not as physiological beings. It changed the nomenclature of the personnel department and sheds light on the Human Resource Department.
Key takeaways
- A policy is a guide for repetitive action in major areas of business. It is a statement of commonly accepted understanding of decision-making criteria
- HR managers in either sector is responsible for creating and sustaining a productive workforce and positive work environment
References:
- Gary Dessler. A Framework for Human Resource Management. Pearson
- DeCenzo, D.A. And S.P. Robbins, “Personnel/Human Resource Management”, Prentice Hall of India, New Delhi.
- Bohlendar and Snell, Principals of Human Resource Management, Cengage Learning.
- Chhabra, T.N. Essentials of Human Resource Management. Sun India Publication, New Delhi.
