1: NATURE CONCEPTS AND FUNCTIONS OF HRM

Transcription

1 Subject Paper No and Title 9: HUMAN RESOURCE MANAGEMENT Module No and Title Module Tag 1: NATURE CONCEPTS AND FUNCTIONS OF HRM COM_P9_M1

2 TABLE OF CONTENTS 1. Learning Outcomes 2. Introduction Human Resource Management 3. Definition of Human Resource Management 4. Concept of HRM 5. Nature of HRM 6. Objectives of HRM 7. Functions of HRM 8. Summary

3 1. Learning Outcomes After studying this module, you shall be able to: Know about the basic meaning, concept of HRM Know about the nature and objectives of HRM Identify the objectives of HRM Appreciate about managerial and operative functions of HRM

4 2. Introduction Human Resource Management One of the most important resources of an organization is the human resource. Any organization, having non human resources in the form of machinery, raw material, money etc can only be of purpose and can only be utilized, if human resources are combined with it. Organizations get their work done through people only in the organizations. The coordination of human as well as non human resources helps in achieving organizational objectives. In organizations, human resource is characterized as people at work. These people have different skills, capabilities and potentialities to grow and to grow and they are dynamic in nature. Any organization can survive and grow only if it has the right number of people with right qualifications desired. So, one can say it is both the qualitative and quantitative aspect of human resource that has to be seen at workplace and one cannot afford to ignore it. Keeping in view this dynamism and potentials of a person, it is required to manage them also so that they can get the right job according to their skills, i.e., matching a right job with the right person is the foremost and the most important aspect to survive as organization in the competitive world. 3. Definition of Human Resource Management Edwin Flippo defies HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved. According to Graham, the purpose of HRM is to ensure that the employees of an organization are used in such a way that the employer obtains the greatest possible benefit from their abilities and the employees obtain both material and psychological rewards from their work. Storey defines HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques.

5 4.Concept of Human Resource Management One aspect of managing is to manage and get things done from people. In organizations, in order to achieve goals, employees have to be managed effectively in terms of their skills, aptitude, potentialities and talents. So HRM is a set of policies and programs designed to maximize both personal and organizational goals. Proper utilization of human resource skills and its retention is the main purpose of human resource management. According to National Institute of Personnel management of India, personnel management is that part of management concerned with people at work and with their relationships within the organization. It seeks to bring men and women together who make an enterprise, enabling each to make his own best contribution to its success both as an individual member of a working group. 5.Nature of Human Resource Management The main objective for which organization is created can only be accomplished when there is an integration of the goals of both the individual as well as organizational objectives. Human resource in the organization is heterogeneous, dynamic and behaves differently and managing them in such a diverse culture is not a difficult task. The nature of human resource management is stated as follows: Comprehensive Function Human resource management is concerned with managing all types of people at work, i.e., workers, supervisors, mangers, etc at all levels is middle, top and lower level of management. Pervasive Function HRM is related with people in all organizations whether big, middle or small enterprises. Action Oriented Instead of keeping the records and procedures related to human resources, human resource management is related with action, i.e., what to do and focuses upon situations to problems. Development Oriented In human resource management, development of human resource is considered as important. Organizations take care by providing them with training to improve their skills so that they can give their best efforts in the organization. For this purpose, they are rotated in jobs to get exposure of different working environment, organization climate, etc related to that workplace and also to maximize their job satisfaction. Interdisciplinary Function HRM has come up with the disciplinary approach from various fields such as psychology, sociology, anthropology, etc. In all these areas, employee behavior and attitude are concerned. HRM has become speculated area nowadays. Human resources are considered as an important resource and managing them is done by professional and trained managers in this field. Future Oriented

6 HRM is future oriented because organizations have to achieve organization goals in the future and for that purpose, it needs well motivated and dedicated employees who can take up assignments and projects and complete them on time; so managing human resource is considered to be one of the most important aspects of the organization for its survival and future growth. Continuous Function HRM is continuous and never ending process rather than one action performed once. It has to be continuously performed in the organization in order o get alertness and awareness of human relations from time to time. 6. Objectives of HRM The primary objective of the organization is divided into various secondary objectives and objectives are the basis of the creation of any organization. The objectives of the organization determines its character and to attain these objectives, human resource management contributes as an important aspect of integrating employers and employees interest in the form of individual and organizational goals. In this context, the objective of human resource management is stated as follows: Attainment of organizational goals Getting the right personnel for various jobs in the organization Matching of right person with the right job so that individual and organizational objectives both can be achieved Directing employees to be productive in terms of performance Enhancing job satisfaction Providing monetary and non monetary incentives to realize ones full potential Development as individual members and groups via training and development courses and also career planning of its employees Integrating goals- individual as well as organizational goals with an effort and targeting towards primary objectives. Maintaining high morale and good human relations Aiming towards attaining economically effective goals of individuals, organizations and promote the welfare of the society

7 7.Functions of Human Resource Management Management Operative Planning Procurement Organising Development Directing Compensation Controlling Integration Maintenance Figure1: functions of Human Resource Management The functions of human resource management are broadly classified into two categories stated as follows: 1) Managerial Functions 2) Operative Functions The managerial functions of human resource management include planning, organizing, directing and controlling. The functions are stated as follows: Planning To plan is to determine a course of action to achieve desired goals of the organization. It is done through people. Planning involves forecasting and conducting research. Everything needs to be planned for an effective management; be it a home or workplace. Human resource planning involves a plan related to the requirement of human resource. Forecasting human resource for the organization is planning. Employees are required in terms of quality and quantity. If planning is done properly, then no chance left between present and future requirements of human resources.

8 Human resource planning fills the gap between where we are and where we want to reach. Planning is the means to manage the change and adapt the change. If no planning is done, then it might result in crisis for tomorrow. Organizing Designing and developing an appropriate structure for the people to work and accomplish goals is organizing. a) It involves groping of activities and its allocation among individual and group members. b) Establishing authority responsibility relationships. c) Integrating activities to accomplish organizational goals. If organization structure is defined properly when it is clear who is responsible to whom and everyone has defined authorities, then it is easier to achieve organizational goals. Directing Directing employees means to guide and motivate the employees to attain desired results. Directing is related with initiating and influencing action of subordinates. It is the manager who can tap the maximum potential of his employees through proper guidance and appropriate action. Such an act of manager also helps building good interpersonal relationships and friendly organizational climate in the organization. Controlling Control can only be exercise if there is proper planning. No planning is of any use if there is no control, i.e., if there is no check. It means checking, verifying and regulating to ensure that everything is moving accurately to plans that were taken up initially. In HRM, controlling involves auditing, training programs, analyzing performance of employees, evaluating absents and labor turnover. Operative Functions Human resource managers perform operative functions related with specific activities of procurement, development, compensation, etc. these functions are stated as follows: I) Procurement Functions Procurement function is related with getting right kind and right number of personnel in the organization. For doing this, first of all, the following steps may be followed: a) Job analysis (a detailed study of the job is done including job description and job specification, b) Based on detailed job study, requirements of human resource is determined for each and every department of the organization and an action plan is created for recruiting them

9 c) Once, human resource planning is done recruitment process starts. It is a searching process for the required human resource and making them to apply for jobs in the organization. d) All those candidates who have applied for the jobs through recruitment process are judged according to their suitability at the right place in the organization and choosing the most appropriate people. e) Once suitable candidates are appointed and they join the organization, they are familiarized or oriented with the organization as a whole, about its climate, rules, policies and regulation and conduct require of them in the organization and may be much more. II) Development Function Development function is concerned with how to enhance the skills, aptitudes and values of employees in the organization. Development deals with the overall development of the employees from time to time by concentrating on overall growth of the employees. This function deals with the following activities to be performed for doing so: a) Observing and evaluating the performance of the employees on the job and also to know about their potentials for development. b) Training is one way to enhance their skills that leads to employee s development. Trainings from time to time may be imparted to the employees as per the requirement to meet the specific need, thereby adding to their skills. Training is a need of the organization, required form time to time based on different demands arising such as job complexity, internal changes, technology, global competition, etc. c) A development function for executives may also be conducted. This is training for managers of the organization. Executive development is a systematic process of learning and growth by which managerial personnel gain and apply knowledge, skills, and attitudes and insights to manage the work in their organisations efficiently and effectively in an organised manner. The aim is to improve their behaviour and performance for their present jobs as well as to the next higher level jobs. d) Career Planning is deciding and opening career opportunities for employees in the organization. It is a process of developing human resources in the organization so that a right job can be matched with the right kills. This can be thought of by the organization.

10 III) Compensation Function A proper wage and salary structure is designed in the organization to make payments to the employees for the job performed. A fair and equitable salary structure is must and doing this may involve the following activities: a) The first thing is to pay on the basis of the worth of the job, so an organization should conduct job evaluation i.e., to find the relative worth of the job. b) A suitable wage program offering higher packages to employees is designed to motivate employees to perform better in their jobs. c) Since compensation is a cost to the organization, it must be carefully designed in order to fulfill the needs of the individual employees plus benefits also in addition to the normal salary. Further it would also be a way to build a right kind of organization in the future. d) Compensation is a way of providing incentive after receiving a wage or a salary. e) Compensation is a way to satisfy employee in terms of their job and additional benefits in the form of insurance, medical claim, etc helps relieving employees from certain inherit fears. f) Employees gain a sense of social security also. g) Compensation also includes Bonus to be given to the employees as a set norm under the payment of Bonus Act, IV) Integration Function To integrate is to integrate the objectives of the individual employees with the organizational objectives. It is only through this integration, the main objectives of the organization are achieved. There are various ways to integrate employees such as various financial and non financial incentives, proper grievance mechanism for redressing any problems etc of the employees with the organization, collective bargaining methods, workers participation in management, solving conflicts of various types at different levels in the organization, employee counseling, etc. V) Maintenance Function Maintenance function is concerned with thinking and developing various parameters relating to health and welfare of the employees. It may include various health benefits scheme, medical claim, and health insurance for its employees, etc. This function aims at maintaining the health of the employees physically as well as mentally. Social security method includes providing employees with provident fund, secured jobs, pension, gratuity, etc. The functions of HRM as stated above may vary from organization to organization. It means that some organizations are smaller and some are big. Smaller organizations may use only procurement and compensation functions and only some part of development function and not necessary development of executives, etc. they may also not be having

11 maintenance function. But this may not be so in case of big organizations. They may have all the functions starting from procurement till maintenance. 8. Summary In organizations, human resource is characterized as people at work. HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved. Proper utilization of human resource skills and its retention is the main purpose of human resource management. Comprehensive Function is concerned with managing all types of people at work Pervasive Function is concerned with people in all organizations whether big, middle or small enterprises. Action Oriented means instead of keeping the records and procedures related to human resources, human resource management is related with action, i.e., what to do and focuses upon situations to problems. Development Oriented means development of human resource is considered as important. Organizations take care by providing them with training to improve their skills so that they can give their best efforts in the organization. for this purpose, they are rotated in jobs to get exposure of different working environment, organization climate, etc related to that workplace and also to maximize their job satisfaction. Interdisciplinary Function, a disciplinary approach from various fields such as psychology, sociology, anthropology, etc. In all these areas, employee behavior and attitude are concerned. HRM has become speculated area nowadays. Human resources are considered as an important resource and managing them is done by professional and trained managers in this field. Future Oriented HRM to achieve organization goals in the future and for that purpose, it needs well motivated and dedicated employees who can take up assignments and projects and complete them on time. So managing human resource is very important. Continuous Function of HRM is continuous and never ending process rather than one action performed once. It has to be continuously performed in the organization in order o get alertness and awareness of human relations from time to time. The objectives of the organization determines its character and to attain these objectives, human resource management contributes as an important aspect of integrating employers and employees interest in the form of individual and organizational goals. Broadly, human resource management functions are categorized into two parts: managerial functions and operative functions. Managerial functions include planning, organizing, directing and controlling. Operative functions include procurement, development, compensation, integration and maintenance.

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