Human Resource Management

1. Human Resource Management Nature, Scope and Objectives

2. Meaning Human Resource simply means the people. It is a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components. Human Resource Management is the process of making the efficient and effective use of Human Resources so that the set goals are achieved.

3. Definition • Flippo states that: “ Personnel management is the planning, organizing, directingandcontrolling of the procurement, development, compensation, integration, maintenance, and separation of Human Resourcesto the end that individual, organizational and social objectives are accomplished ”

4. Scope of HRM

5. Scope of HRM • National Institute of Personnel Management has specified the scope of HRM as: • The Labour or Personnel Aspect : concerned with HR planning, recruitment, selection, placement, promotion, transfer, training & development, compensation, etc. • Welfare Aspect : deals with working conditions and amenities • Industrial Relations Aspect : covers union-management relations, joint consultations, collective bargaining, grievance and disciplinary actions, etc.

6. Objectives of HRM • The primary objective is to ensure the availability of right people for right jobs so that the organizational goals are achieved effectively • To help the organization attain its goals by providing competent and motivated employees • To utilize the available human resources effectively • To increase to the fullest the employee’s job satisfaction and self-actualization

7. Objectives of HRM • To develop and maintain the QWL which makes the employment a desirable personal and social situation • To help maintain ethical policies and behaviour inside and outside the organization • To establish and maintain cordial relations between employees and management • To reconcile individual/group goals with organizational goals

8. Nature of HRM • It is concerned with managing people to “rank and file employees at work”. In other words, it covers all levels of personnel • It is concerned with employees, both as individuals as well as groups • It is concerned with helping employees develop their potentialities and capacities to the maximum possible extent

9. Nature of HRM • It is an integral part of any organization • It is continuous in nature • It aims at getting the willing co-operation of the people for the attainment of the desired goals

10. Functions of HRM Managerial Functions • Planning • Organizing • Staffing • Directing • Controlling Operative Functions • Procurement • Development • Compensating • Integration • Maintenance

11. The Role of a Personnel Manager Personnel Role Welfare Role Administrative Role Legal Role Advisory Research Time-keeping Grievance handling HRP, Recruitment and Selection Managing services Salary and Wage Administration Settlement of disputes Group dynamics Training and Development Handling disciplinary actions Maintenance of records Measurement and Assessment of Individual and Group Behaviour Human Engineering Collective bargaining Joint consultation

12. Organizational structure of the HR Department • The internal organizational structure of the HR department varies widely in different companies, depending upon their size • In small organizations, HR functions are discharged by line executives • A separate HR department is organized for large companies, where personnel activities are generally of a complex nature

13. Personnel Functions in a Small Company President Production Manager Sales Manager Treasurer Shop Superintendent Employment Dept. Employee Insurance Accountant Foreman Social Security Records General Accounting Cost Accounting Workers

14. Personnel Functions in a Large Company President Vice President Marketing Vice President Production Vice President Personnel Vice President Finance Wage & Salary Labour Relations Training & Development Health, Safety & Benefits

15. Organizational structure of the HR Department • Personnel Departments or units may be organized on three basis: • Functional basis • Service basis • Clientele basis

16. Functional basis According to functional basis, departments are grouped into different functions Personnel Director Employment Wage & Salary Safety Employee Service & Benefits Training Industrial Relations

17. Service basis This basis takes into consideration the service rendered or the purpose achieved. It tries to prevent dissatisfaction through hygiene maintenance, and promotion of satisfaction through motivators Personnel Director Motivational Needs Programme Hygiene Needs Programme Education Motivation Services Industrial Relation Job Design Salary

18. Cliental basis Propounded by Soholik whose thesis is that requirements of different types of employees’ is different Personnel Director Managers for Scientific and Technical Personnel Management Development & Compensation Industrial Relations Integration of new workers Handicapped Persons Women Employees