Human Resource Management

HUMAN RESOURCE MANAGEMENT
CHAPTER – 1 - INTRODUCTION
TO CONCEPTS – STRATEGIC ROLE
OF HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE MANAGEMENT –
STRATEGIC ROLE OF HRM-Chapter - 1
HRM IS ESSENTIAL FOR SUCCESSFUL MANAGEMENT OF AN
ORGANISATION.
TO ADDRESS THE PROBLEMS OF AN ORGANISATION, WE
DRAW OUR ATTENTION TO DOWNSIZING OR RIGHTSIZING
OF MANPOWER, COST MINIMISATION ETC.
EMPLOYMENT PRACTISES DIFFER FROM COUNTRY TO
COUNTRY, WE FIND THE EXPERIENCES OF INDUSTRIALLY
ADVANCED NATIONS ALSO BY AND LARGE CONVERGE ON
HRM ISSUES.
ALMOST EVERYDAY, NEWSPAPERS AND BUSINESS
MAGAZINES CARRY NEWS ITEMS ON VRS, JOB-CUTS,
DOWNSIZING ETC, EARLY RETIREMENT, RETRENCHMENT
AND MANPOWER PRUNING. EVEN GLOBALLY VISIBLE
MULTINATIONALS ARE ALSO IN THE FRAY. THUS HRM
ISSUES ARE GLOBALLY RELEVANT, ALTHOUGH THEIR
MAGNITUDE MAY DIFFER FROM COUNTRY TO COUNTRYAT
THE MACRO LEVEL AND ORGANISATION TO
ORGANISATION AT THE MICRO LEVEL.
HUMAN RESOURCE MANAGEMENT –
STRATEGIC ROLE OF HRM-Chapter - 1
PRIOR TO INDUSTRIAL REVOLUTION, THE STATUS OF LABOR
WAS EXTREMELY LOW AND HUMAN RELATIONSHIPS BETWEEN
THE EMPLOYER AND THE EMPLOYEE WERE CHARACTERISED BY
SLAVERY.
In pre-industrial cities, craftsmen tended to form
associations based on their trades, of textile workers,
masons, carpenters, carvers, glassworkers, each of whom
controlled secrets of traditionally imparted technology, the
"arts" or "mysteries" of their crafts. Usually the founders
were free independent master craftsmen.
The guild was made up by experienced and confirmed
experts in their field of handicraft. They were called
master craftsmen. Before a new employee could rise to the
level of mastery, he had to go through a schooling period
during which he was first called an apprentice.. Apprentices
would typically not learn more than the most basic
techniques until they were trusted by their peers to keep
the guild's or company's secrets.
STRATEGIC ROLE HUMAN
RESOURCE MANAGEMENT
GUILD SYSTEM MARKED THE BEGINNING OF HUMAN
RESOURCE MANAGEMENT FOR SELECTION,
TRAINING AND DEVELOPMENT OF WORKERS AND
EMERGENCE OF COLLECTIVE BARGAINING FOR
WAGES AND WORKING CONDITIONS.
THE INDUSTRIAL REVOLUTION FOLLOWED THE NEW
ECONOMIC DOCTRINE OF LAISSEZ FAIRE. NEW
INDUSTRIAL ORGANISATIONS WERE
CHARACTERISED BY FACTORY SYSTEM ( A CHANGE
FROM COTTAGE SYSTEM OR HOME CENTRED
PRODUCTION SYSTEM). THE FACTORY SYSTEM HAD
DETERIORATED THE EMPLOYER-EMPLOYEE
RELATIONSHIP DUE TO UNHEALTHY WORK
ENVIRONMENT, LONG WORKING HOURS, FATIGUE,
MONOTONY, STRAIN, INCREASED LIKELYHOOD OF
ACCIDENTS ETC.
STRATEGIC ROLE OF HUMAN
RESOURCE MANAGEMENT
THE PERSONNEL FUNCTION DERIVED FROM THE
INTRODUCTION OF WELFARE ACTIVITY. INTIALLY, IT WAS
PERCEIVED AS A MORAL DUTY AND LATER IT WAS
CONSIDERED AS THE PRE-CONDITION FOR INDUSTRIAL
EFFICIENCY. THE SECOND DEVELOPMENT SPRUNG FROM
THE EMPLOYERS’ ENDEAVORS TO COPE WITH THE
CHALLENGES OF TRADE UNIONISM.
THE HISTORY OF EVOLUTION AND GROWTH OF PERSONNEL
MANAGEMENT IN INDIA IS NOT VERY OLD. THE ROYAL
COMMISSION ON LABOUR IN 1931 FOR THE FIRST TIME
RECOMMENDED THE APPOINTMENT OF “WELFARE
OFFICERS” TO DEAL WITH RECRUITMENT AND TO SETTLE
THEIR GRIEVANCES.
THE FACTORIES ACT, 1948 STATUTORILY MADE IT
OBLIGATORY FOR THE INDUSTRIES TO APPOINT LABOUR
WELFARE OFFICERS. TODAY PERSONNEL MANAGEMENT
FUNCTION ENCOMPASSES ALL THE PROFFESSIONAL
DISCIPLLINES LIKE – WELFARE, INDUSTRIAL RELATIONS,
PERSONNEL ADMINISTRATION, HUMAN RESOURCE
DEVELOPMENT (HRD) ETC.
RESOURCE MANAGEMENT
FACTORS LEADING TO THE DEVELOPMENT OF THE
CONCEPT OF HUMAN RESOURCE MANAGEMENT.
BETTER UTILISATION OF HUMAN RESOURCES BY AN
ORGANISATION OR BY ANY NATION IS NECESSARY TO
ACHIEVE COMPETITIVE ADVANTAGE.
MANAGEMENT OF HUMAN RESOURCFES AS A
MAINSTREAM MANAGEMENT ACTIVITY HAS BEEN
ADVOCATED BY SKINNER (1981) FOR EFFECTIVE
MANAGEMENT OF PEOPLE.
CHANGING ECONOMIC AND POLITICAL CLIMATE AROUND
THE WORLD RESULTED IN DECLINE IN TRADE UNION
PRESSURE ON MANAGEMENT. THIS NECESSITATED
SWITCH IN EMPHASIS FROM COLLECTIVE ISSUES
(TRADITIONAL INDUSTRIAL RELATIONS APPROACH) TO
INDIVIDUAL AND COOPERATIVE ISSUES (THE HUMAN
RESOURCE MANAGEMENT APPROACH).
RESOURCE MANAGEMENT
STRUCTURAL CHANGE IN THE OCCUPATIONAL PATTERN IS
NOW A WORLDWIDE PHENOMENON.
TECHNOLOGY, INCREASED REQUIREMENT OF SKILL AND
KNOWLEDGE, OCCUPATIONAL SHIFTS, NEW QUALITY
SYSTEM REQUIREMENT, ETC ARE NOW DEMANDING
BETTER EDUCATED, NEW GENERATION OF WORKERS,
WHO OBVIOUSLY HAVE HIGHER EXPECTATIONS FROM
THEIR ORGANISATIONS.
THESE FACTORS REVOLUTIONISED THE CONCEPT OF
TRADITIONAL PERSONNEL MANAGEMENT, WHICH IS
RESTRICTED TO UTILISATION OF HUMAN RESOURCES
COMPLYING MAINLY WITH STATUES AND COPING WITH
THE CHALLENGES OF TRADE UNIONS; AND LED TO THE
DEVELOPMENT OF HRM AS ANOTHER FORM OF RESPONSE
FOR SUSTAINING BETTER EMPLOYER-EMPLOYEE
RELATION.
RESOURCE MANAGEMENT
HRM IS A SUB-SYSTEM OF THE TOTAL
MANAGEMENT SYSTEM AND IS THE
RESPONSIBILITY OF ALL MANAGERS,
IRRESPECTIVE OF THEIR FUNCTIONS,
DISCIPLINES AND LEVELS.
HRM IS PRIMARILY CONCERNED WITH
MANAGEMNET OF PEOPLE, INDIVIDUALS OR
GROUPS AT WORK, AS ALSO THEIR
INTERRELATIONSHIPS.
HRM IS DISTINCTLT DIFFERENT FORM
PERSONNEL MANAGEMENT. HRM INTEGRATES
ITSELF INTO STRTEGIC MANAGEMENT AND
EMPHASISES ON FULL UTILISATION OF HUMAN
RESOURCES.
RESOURCE MANAGEMENT
HUMAN RESOURCE IS THE TOTAL KNOWLEDGE, SKILLS,
CREATIVE ABILITIES, TALENTS, APTITUDES, VALUES, ATTITUDES
AND BELIEFS OF THE PEOPLE OF AN ORGANISATION.
HRM AS AN APPROACH IDENTIFIES THE RIGHT PEOPLE FOR THE
RIGHT JOB. IT ALSO INCLUDES THE PROCESS OF SOCIALISING
SUCH IDENTIFIED PEOPLE TO INTEGRATE THEM WITH THE
ORGANISATION, TRAIN THEM FOR INCREASING THEIR
FUNCTIONAL SKILL, DEVELOP THEM FOR BOTH IDENTIFIED AND
UNIDENTIFIED FUTURE ROLES, PLACE THEM IN RIGHT TASKS
AND ROLES, MOTIVATE THEM TO PERFORM WELL AND
INCULCATE IN THEM A SENSE OF BELONGINGNESS.
WITHIN HRM THERE ARE TWO MAJOR ACTIVITIES I.E. THE FIRST
IS CONCERNED WITH THE RECRUITMENT, SELECTION,
PLACEMENT, COMPENSATION AND APPRAISAL OF THE HUMAN
RESOURCES (PERSONNEL FUNCTIONS) MORE COMMONLY
TERMED AS HUMAN RESOURCE UTILISATION (HRU) FUNCTION.
THE OTHER GROUP OF FUNCTIONS ARE DIRECTED TOWARDS
WORKING WITH THE EXISTING HUMAN RESOURCES IN ORDER
TO IMPROVE THEIR EFFICIENCY AND EFFECTIVENESS. THESE
ARE CONCERNED WITH HUMAN RESOURCE DEVELOPMENT
(HRD).
RESOURCE MANAGEMENT
HRD IS A PROCESS WHICH HELPS EMPLOYEES OF AN
ORGANISATION TO IMPROVE THEIR FUNCTIONAL CAPABILITIES
FOR THEIR PRESENT AND FUTURE ROLES, TO DEVELOP THEIR
GENERAL CAPABILITIES, TO HARNESS THEIR INNER
POTENTIALITIES BOTH FOR SELF AND ORGANISATIONAL
DEVELOPMENT AND, TO DEVELOP ORGANISATIONAL CULTURE TO
SUSTAIN HARMONIOUS SUPERIOR-SUB ORDINATE
RELATIONSHIPS, TEAMWORK, MOTIVATION, QUALITY AND A
SENSE OF BELONGINGNESS.
OBJECTIVES OF HRD – TO DEVELOP CAPABILITIES OF ALL
INDIVIDUALS WORKING IN AN ORGANISATION IN RELATION TO
THE PRESENT ROLE – TO DEVELOP CAPABILITIES OF ALL SUCH
INDIVIDUALS IN RELATION TO THEIR FUTURE R0LE – TO DEVELOP
TEAM SPIRIT – TO DEVELOP BETTER INTERPERSONAL AND
EMPLOYER-EMPLOYEE RELATIONSHIP IN AN ORGANISATION – TO
DEVELOP COORDINATION AMONG DIFFERENT UNITS OF AN
ORGANISATION – TO DEVELOP ORGANISATIONAL HEALTH BY
CONTINUOUS RENEWAL OF INDIVIDUAL CAPABILITIES (AVERTING
MANPOWER OBSOLESCENCE) KEEPING PACE WITH THE
TECHNOLOGICAL CHANGES.
RESOURCE MANAGEMENT-Chapter I
HRD OBJECTIVES OF W.S. INDUSTRIES INDIA LIMITED
TO PLAN AND INDUCT APPROPRIATE MANPOWER IN
TERMS OF KNOWLEDGE, SKILL AND ATTITUDE.
TO PROVIDE OPPORTUNITIES FOR GROWTH TO
EMPLOYEES IN TERMS OF REMUNERATION, CAREER AND
SKILL ENDOWMENT.
TO PRACTICE EQUITY AND FAIRNESS INALL ITS DEALINGS
WITH EMPLOYEES.
TO CREATE AN ORGANISATIONAL CLIMATE WHICH
ENCOURAGES A HIGH MOTIVATED WORKFORCE.
TO PREPARE EMPLOYEES FOR EASY AND FASTER
ADAPTION TO CHANGE.
TO CONTINUOUSLY ENHANCE KNOWLEDGE, SKILL OF
EMPLOYEES FOR THE PERFORMANCE OF THEIR PRESENT
AND FUTURE TASKS THROUGH EDUCATION AND TRAINING
RESOURCE MANAGEMENT
INDIAN ORGANISATIONS, BY AND LARGE, HAVE
PERSONNEL FUNCTIONS INTEGRATED WITH HRD
FUNCTIONS, EXCEPT FOR A FEW WHO HAVE SEPARATE
HRD DEPARTMENT. MOST HAVE RETITLED THE
DESIGNATION OF THEIR CORE PERSONNEL PEOPLE BY
EITHER CALLING THEM “HUMAN RESOURCE MANAGER”
OR “HUMAN RESOURCE DEVELOPMENT MANAGER”.
THE HRD DEPARTMENT OF AN ORGANISATION FOCUSES
ON (1) ENABLING CAPABILITIES BY DEVELOPING
HUMAN RESOURCES (2) DEVELOPING TEAM SPIRIT,
INCREASING EMPLOYEE MOTIVATION AND
PRODUCTIVITY (3) FOCUS ON BALANCED
ORGANISATIONAL CULTURE THROUGH SURVEYS,
DISCUSSIONS STIMULATING OPENNESS, MUTUAL
TRUST, CREATIVITY, INITIATIVE, MUTUALITY,
COLLABORATION, DELEGATION, AUTONOMY,
MANAGEMENT OF CONFLICT ETC.
RESOURCE MANAGEMENT
HRD FOCUS ON PERIODIC REVIEWING OF HRD SYSTEM
WHICH MAY CALL FOR REDESIGNING PERFORMANCE
APPRAISAL, JOB-ROTATION, REWARD SYSTEM, CAREER
PLANNING, PROMOTION, SELECTION, INDUCTION,
TRAINING AND DEVELOPMENT PROGRAMME ETC.
HRD FOCUS ON DIFFUSION OF HRD FUNCTION INVOLVING
LINE MANAGERS IN VARIOUS HRD ASPECTS LIKE
TRAINING SUBORDINATES, PERFORMANCE APPRAISAL,
PROMOTION, PLACEMENT,SELECTION, CAREER PLANNING
ETC. LINE PEOPLE BY VIRTUE OF RICH EXPERIENCE MAY
EFFECTIVELY CONTRIBUTE TO THESE HRD AREAS.
HRD FOCUSES ON WORKING WITH UNIONS BY TAKING
THEM INTO CONFIDENCE AND COLLABORATING WITH
THEM. THAT UNIONS CAN ALSO PLAY A POSITIVE ROLE IN
FURTHERING THE ORGANISATION IS EVIDENT FROM A
NUMBER OF EXAMPLES. SYNDICATE BANK EMPLOYEES
UNION COLLABORATED WITH MANAGEMENT TO REDUCE
THE NON-PERFORMING ASSETS (BAD DEBT REALISATION)
RESOURCE MANAGEMENT
THE PRECISE ORGANISATIONAL PLAN FOR AN
HRD DEPARTMENT DEPENDS ON THE SIZE OF
THE ORGANISATION.
ROLE OF HRD MANAGER :-
THE PRIMARY GOAL OF HRD IS TO INCREASE A
WORKER’S PRODUCTIVITY AND A FIRM’S
PROFITABILITY AS INVESTMENT IN HRD
IMPROVES A WORKER’S SKILL AND ENHANCE
MOTIVATION. THE OTHER GOAL OF HRD IS TO
PREVENT OBSOLENCE AT ALL LEVELS. IN ORDER
TO ACHIEVE THESE GOALS THE HRD MANAGER
OF AN ORGANISATION PLAYS THE FOLLOWING
IMPORTANT ROLES :-
RESOURCE MANAGEMENT
TO ASSIST PEOPLE IN OBTAINING THE KNOWLEDGE AND
SKILLS THEY NEED FOR PRESENT AND FUTURE JOBS AND
TO ASSIT THEM IN ATTAINING THEIR PERSONAL GOALS.
TO PLAY THE ‘ENABLING’ ROLE BY PROVIDING THE RIGHT
CONTEXT IN WHICH HUMAN PERFORMANCE OCCURS AND
THE ORGANISATION REACHES ITS STATED OBJECTIVES.
THE AMERICAN SOCIETY FOR TRAINING AND
DEVELOPMENT (ASTD) IDENTIFIED SOME ROLES OF THE
HRD MANAGER
ADMINISTRATOR – THE ROLE OF PROVIDING
COORDINATION AND SUPPORT SERVICES FOR THE
DELIVERY OF HRD PROGRAMS.
EVALUATOR – THE ROLE OF IMPACT OF INTERVENTION ON
INDIVIDUAL OR ORGANISATIONAL EFFETIVENESS.
INDIVIDUAL CAREER DEVELOPMENT ADVISOR – THE ROLE
OF HELPING INDIVIDUALS TO ASSESS PERSONAL
COMPETENCIES, VALUES AND GOALS.
RESOURCE MANAGEMENT
HRD MANAGER – THE ROLE OF SUPPORTING AND LEADING
A GROUP’S WORK AND LINKING THAT WORK WITH THE
TOTAL ORGANISATION.
INSTRUCTOR / FACILITATOR – THE ROLE OF PRESENTING
INFORMATION, DIRECTING STRUCTURED LEARNING
EXPERIENCES AND MANAGING GROUP DISCUSSIONS AND
GROUP PROCESSES.
MATERIAL DEVELOPER – THE ROLE OF PRODUCING
WRITTEN AND/OR ELECTRONICALLY MEDIATED
INSTRUCTIONAL MATERIALS.
NEEDS ANALYST – THE ROLE OF IDENTIFYING IDEAL AND
ACTUAL PERFORMANCE AND PERFORMANCE CONDITIONS
AND DETERMINING CAUSES OF DISCREPANCIES.
ORGANISATIONAL CHANGE – THE ROLE OF INFLUECING
AND SUPPORTING CHANGES IN ORGANISATIONAL
BEHAVIOUR.
RESOURCE MANAGEMENT
RESEARCHER – THE ROLE OF IDENTIFYING, DEVELOPING
OR TESTING NEW INFORMATION (THEORY, CONCEPTS,
TECHNOLOGY) AND TRANSLASTING THESE TWO
IMPLICATIONS FOR IMPROVED INDIVIDUAL OR
ORGANISATIONAL PERFORMANCE.
ROLE OF CONSULTANTS IN HRD – IN HRD, CONSULTANTS
PLAY A VERY CRUCIAL ROLE, PARTICULARLY IN THE
FOLLOWING AREAS :-
DESIGNING CAREER PLAN FOR EMPLOYEES – MANY
ORGANISATIONS PREFER TO RETAIN THE SERVICES OF
CONSULTANTS. CAREER PLANNING IS A VERY
COMPLICATED FUNCTION OF THE ORGANISATION. THE
CHAIRMAN OF SAIL LAMENTED LARGE-SCALE EXODUS OF
EXEUTIVES FROM M/S STEEL AUTHORITY OF INDIA LTD,
AS DEVELOPING AN EXECUTIVE REQUIRES 10 TO 15 YEARS
TIME. IT IS LEARNT THAT THEY HAVE LEFT DUE TO
ABSENCE OF CAREER PROGRESSION IN M/S SAIL AND
MORE FINANCIAL BENEFITS IN PRIFVATE STEEL
MANUFACTURING COMPANIES.
RESOURCE MANAGEMENT
RECENTLY, STATE BANK OF INDIA RETAINED THE SERVICES
OF WORLD FAMOUS MANAGEMENT CONSULTANT M/S
McKINSEY FOR RESTRUCTURING THE ORGANISATION, WHICH
INTER ALIA (AMONG OTHER THINGS) INCLUDES SUITABLE
CAREER PLANS FOR THEIR EMPLOYEES.
MANPWOER PLANNING HAS ALSO BECOME A CRUCIAL
FUNCTION OF HRD CONSULTANTS, ESPECIALLY, IN THE WAKE
OF INCREASING MANPOWER OBSOLENCE FOR
TECHNOLOGICAL CHANGES IN INDIAN INDUSTRIES.
SIMILARLY, IN TRAINING AND DEVELOPMENT, PERFORMANCE
APPRAISAL, DEVELOPING SUITABLE PROMOTIONAL POLICIES,
MANAGEMENT SUCCESSION AND MANAGEMNET DEVELOPMENT
ETC. HRD CONSLULTANTS ARE PLAYING A VERY CRUCIAL
ROLE.
AN ORGANISATION MAY ENGAGE THE SERVICES OF
CONSULTANT IN SOME AREAS, WHERE IT DOES NOT HAVE THE
REQUISITE INTERNAL SKILL AND KNOWLEDGE. THIS IS
PARTICULARLY RELEVANT IN CASES LIKE TRAINING ON
TOTAL QUALITY MANAGEMENT, ISO 9000, QUALITY CIRCLES,
JUST-IN-TIME ETC.
RESOURCE MANAGEMENT
LINE MANAGERS & HRD
SINCE LINE MANAGERS TRANSLATE THE OBJECTIVES INTO
ACTION, THEY ARE RESPONSIBLE TO DEVELOP AND
UTILISE THE MANPOWER.
SINCE LINE MANAGERS ARE IN CLOSE PROXIMITY WITH
THE OPERATIONS OF PEOPLE, IT IS THEIR
RESPONSIBILITY TO CREATE AND DEVELOP SUCH
CONDITIONS IN THE ORGANISATION, WHICH CAN
REINFORCE THE HRD OBJECTIVES OF THE ORGANISATION
AS A WHOLE.
LINE MANAGERS FACILITATE IDENTIFICATION OF
TRAINING NEEDS. BEING IN CLOSE PROXIMITY THEY
OBSERVE AND UNDERSTAND THE PERFORMANCE OF
EMPLOYEES BETTER. THIS REQUIREMENT IS IMPORTANT
EVEN FOR DOCUMENTATION OF QUALITY STANDARDS I.E
IS 9000. ALL THE ISO 9000 CERTIFIED ORGANISATIONS
HAVE DOCUMENTED SYSTEMS IN THIS RESPECT.
STRATEGIC ROLE OF THUMAN
RESOURCE MANAGEMENT
LINE MANAGERS ALSO PLAY THE OTHER DEVELOPMENTAL
ROLES TO MOTIVATE PEOPLE TO LEARN AND TAKE
RESPONSIBILITY BY CONTINUOUS COACHING AND
DEVELOPING PROBLEM SOLVING SKILLS. THEY
ENCOURAGE EMPLOYEES TO PROMOTE SMALL GROUP
ACTIVITIES LIKE QUALITY CIRCLES, TQM CLUB ETC.
MANY ORGANISATIONS PREFER TO INVOVLE LINE
MANAGERS IN IN-HOUSE PROGRAMMES, RATHER THAN
OUTSOURCING TRAINING EXPERTS.
LINE MANAGERS ALSO REINFORCE TEAM WORK AND
COLLABORATION, SUGGEST REWARDS FOR GOOD
PERFORMANCE AND FOSTER TOTAL PARTICIPATION
CULTURE BY INVOLVING SUBORDIANTES IN DECISION-
MAKING.
LINE MANAGERS ENCOURUAGE SUBORDINATES TO
DEVELOP THE REQUIRED POTENTIAL TO GRASP CAREER
DEVELOPMENT AND CAREER OPPORTUNITIES.
RESOURCE MANAGEMENT
LINE MANAGERS ALSO PLAY A ROLE IN IDENTIFICATION
OF KRAs (KEY RESULT AREAS) . LINE MANAGERS BY
EXTENDING THEIR HELP AND SUPPORT, ENABLE THE
SUBORDINATE TO REALISE THEIR GOALS. THIS
INCULCATE A SENSE OF ACHIEVING, WHICH HAS
TREMENDOUS MOTIVATINAL BENEFIT.
HRD CULTURE – HRD FACILITATES DEVELOPMENT OF AN
ENABLING CULTURE IN AN ORGANISATION. IN PRESENT
DAY CONTEXT, ORGANISATIONS ARE FORCED TO
UNDERGO RESTRUCTURING OF ACTIVITIES. WITHOUT AN
ENABLING CULTURE, IT IS DIFFICULT FOR AN
ORGANISATION TO WITHSTAND THE CHANGE
REQUIREMENTS. ENABLING CULTURE IS CREATING AN
ENVIRONMENT WHERE EMPLOYEES ARE MOTIVATED TO
TAKE INITIATIVE AND RISK, THEY FEEL ENTHUSED TO
EXPERIMENT, INNOVATE AND THEY MAKE THINGS
HAPPEN.
RESOURCE MANAGEMENT
HRD CULTURE IS THE PERCEPTION OF THE EMPLOYEES ABOUT
THE PREVAILING HRD CULTURE IN THE ORGANISATION.
TO UNDERSTAND THE HRD CLAIMATE, ORGANISATIONS OFTEN
INSTITUTE A SURVEY WITH A STRUCTURED QUESTIONNAIRE.
ANALYSING THE SURVEY RESPONSES, IT IS POSSIBLE TO MAP
THE HRD CLAIMATE. REMEDIAL ACTION MAY BE INITIATED BY
THE ORGANISATION TO ADDRESS THE GAP.
SOME OF THE ELEMENTS OF QUESTIONSNAIRE CAN BE LISTED
AS FOLLOWS :-
DOES THE ORGANISATION CONSIDER EMPLOYEES AS THE
MOST IMPORTANT RESOURCE ?
TO WHAT EXTENT THE ORGANISATION IS TRANSPARENT IN
COMMUNICATION.
ARE THE PERSONNEL POLICIES SUPPORTIVE IN NATURE ?
TO WHAT EXTENT HRD ACTIVITIES ARE DEVELOPMENT
ORIENTED ?
DOES THE ORGANISATION BELIEVE IN DEVELOPING
COMPETENCIES OF ALL CROSS-SECTIONS OF EMPLOYEES AND
INITIATE ACTION IN THAT DIRECTION ?
RESOURCE MANAGEMENT
HRM IN NEW MILLENNIUM
TRADITIONALLY, THE PERSONNEL FUNCTION CENTRED AROUND

CONTROL AND DIRECTION OF EMPLOYEES FOR ACHIEVEMENT OF
PRE-DETERMINED GOALS. WHEREAS THE HUMAN RELATIONS
APPROACH TAKES A SUPPORTIVE AND DEVELOPMENTAL ROUTE
TO ACHIEVE RESULTS THROUGH THE COOPERATIVE EFFORTS OF
EMPLOYEES.
WHEN OPPORTUNITIES FOR GROWTH AND ENHANCEMENT OF

SKILLS ARE AVAILABLE , PEOPLE WILL BE STIMULATED TO GIVE
THEIR BEST, LEADING TO GREATER JOB SATISFACTION AND
ORGANISATIONAL EFFECTIVENESS.
MANAGER’S ROLE TOO HAS UNDERGONE A DRAMATIC CHANGE

OVER THE YEARS. FROM CONTROL AND DIRECTION OF EMPLOYEES
HE IS EXPECTED TO MOVE TOWARD CLARIFYING GOALS AND
PATHS AND CREATING SUPPORTIVE AND GROWTH-ORIENTED
ENVIRONMENT WHERE PEOPLE ARE WILLING TO TAKE UP
ASSIGNED ROLES WILLINGLY AND ENTHUSIASTICALLY.
RESOURCE MANAGEMENT
THE EFFECTIVE USE OF PEOPLE IS THE MOST
CRITICAL FACTOR IN THE SUCCESSFUL
ACCOMPLISHMENT OF CORPORATE GOALS. TO BE
EFFECTIVE, HR MANAGERS NEED TO UNDERSTAND
THE NEEDS, ASPIRATIONS, CONCERNS OF
EMPLOYEES PROACTIVELY AND RESOLVE ISSUES
AMICABLY.
HR MANAGERS ARE EXPECTED TO SUCCESSFULLY

EVOLVE AN APPROPRIATE CORPORATE CULTURE,
TAKE A STRATEGIC TO THE ACQUISTION,
MOTIVATION AND DEVELOPMENT OF HUMAN
RESOURCES AND INTRODUCE PROGRAMES THAT
REFLECT AND SUPPORT THE CORE VALUES OF THE
ORGANISATION AND ITS PEOPLE.
STRATETIC ROLE OF EGHUMAN
RESOURCE MANAGEMENT
FUTURE OF HRM – INFLUENCING FACTORS :-
SIZE OF WORKFORCE – CORPORATES HAVE GROWN IN
SIZE CONSIDERBLY IN RECENT YEARS, AS ALSO THE SIZE
OF THE WORK FORCE. CONSEQUENTLY THERE ARE
ISSUES OF ADDTITIONAL DEMANDS FOR BETTER PAY
BENEFITS AND WORKING CONDITIONS FROM WORKFORCE
CONSTANTLY.
COMPOSITION OF WORKFORCE – THE WORKFORCE
COMPOSITION IS ALSO CHANGING OVER THE YEARS. THE
RISING PERCENTAGE OF WOMEN AND MINORITIES IN THE
WORK FORCE IS GOING TO ALTER THE WORKPLACE
EQUATIONS DRAMATICALLY. DEMANDS FOR EQUAL PAY
FOR EQUAL WORK, PUTTING AN END TO GENDER
INEQUALITY AND BIAS IN CERTAIN OCCUPATIONS ARE
MORE OR LESS MET. MANAGING HETEROGENEOUS AND
CULTURALLY DIVERSE GROUPS IS GOING TO STRETCH
THE TALENTS OF HR MANAGERS FULLY.
STRATEGIC ROLE ODF HUMAN
RESOUFCE MANAGEMENT
EMPLOYEE EXPECTATIONS – FUTURE MANAGERS MAY
WELL HAVE TO MAKE MORE ALLOWANCES FOR
INDIVIDUAL DIFFERENCES IN PEOPLE. NOW-A-DAYS
WORKERS ARE BETTER EDUCATED, MORE DEMANDING,
AND ARE READY TO VOICE STRONG, VIOLENT AND JOINT
PROTESTS, IN CASE THEIR EXPECTATIONS ARE NOT MET.
THE LIST OF FINANCIAL AND NON-FINANCIAL DEMANDS

IS EVER GROWING. IN FAST-CHANGING INDUSTRIES AS
SOFTWARE, TELEOCM, ENTERTAINMENT AND
PHARMACEUTICALS, THE TURNOVER RATIOS ARE RISING
FAST AND HR MANAGERS ARE EXPECTED TO RESPOND
POSITIVELY TO EMPLOYEE EXPECTATIONS. AN EFFICIENT
ORGANISATION, IS, THEREFORE REQUIRED TO
ANTICIPATE AND MANAGE TURNOVER THROUGH HUMAN
RESOURCE PLANNING, TRAINING SCHEMES FOLLOWED BY
APPROPRIATE COMPENSATION PACKAGES.
STRATEGIC ROLE OF HUAMAN
RESOURCE MANAGEMENT
CHANGES IN TECHNOLOGY – INCREASED AUTOMOATION,
MODERNISATION AND COMPUTERISATION HAVE CHANGED THE
WAY THE TRADITIONAL JOBS ARE HANDED. IN SUCH A SCENEARIO
UNLESS EMPLOYEES ENHANCE THEIR KNOWLEDGE AND SKILLS
CONSTANTLY, THEY CANNOT SURVIVE AND GROW. THIS WILL
NECESSITATE TRAINING, RETRAINING OF EMPLOYEES AT
VARIOUS LEVELS. WHERE SUCH INITIATIVES ARE MISSISNG, IT
BECOMES VERY DIFFICULT FOR EMPLOYEES TO FACE THE FORCES
OF TECHNOLOGY WITH CONFIDENCE AND GET AHEAD IN CAREERS
STEADILY.
LIFE-STYLE CHANGES – THE LIFE-STYLE PATTERNS OF EMPLOYEES

HAVE UNDERGONE A RAPID CHANGE IN RECENT TIMES. UNLIKE
THEIR PREDECESSORS PEOPLE ARE NOW READY TO CHANGE JOBS
(JOB HOPPING), SHIFT TO NEW LOCATIONS, TAKE UP JOBS IN
START-UP COMPANIES INSTEAD OF MANUFACTURING COMPANIES
AND EVEN EXPERIMENT WITH UNTESTED IDEAS. PEOPLE LIKE
FLEXIBLE WORKING HOURS, ATTRACTIVE COMPENSATION
PACKAGES, GOOD JOB CONTENT AND GROWTH OPPPORTUNITIES.
RESOURCE MANAGEMENT
ENVIRONMENTAL CHALLENGES
PRIVATISATION EFFORTS IN INDIA ARE LIKELY
TO GATHER MOMENTUM IN THE COMING YEARS
AS MOST PUBLIC SECTOR UNITS FACE SURVIVAL
PROBLEMS. MOUNTING COSTS, RAISING WAGE
BILLS, INCREASED COMPETITION, INEFFICIENT
OPERATIONS, OUTDATED TECHNOLOGY WILL
COMPEL PUBLIC SECTOR SHUTTERS DOWN OR
SEEK PRIVATE SECTOR PARTNERS.
WITH THIS THE LEGAL STIPULATIONS COVERING
RECRUITMENT AND SELECTION OF EMPLOYEES
OF RESERVED CATEGORIES, MINORITIES ARE
ALSO LIKELY TO LOSE THEIR IMPORTANCE OVER
A PERIOD OF TIME.
RESOURCE MANAGEMENT
CHANGES IN 21ST CENTURY IMPACTING HRM :-
EXECUTIVES WITH PEOPLE MANAGEMENT SKILLS WOULD
BE ABLE TO STEAL THE SHOW, SINCE THEY HELP
INTEGRATE CORPORATE GOALS WITH EMPLOYEE
EXPECTATIONS IN A SUCCESSFUL WAY. HR EXECUTIVES
WOULD BE ABLE TO SMOOTHLY MOVE INTO TOP
MANAGEMENT POSITIONS, USING THEIR SOFT SKILLS TO
GOOD ADVANTAGE.
CORPORATES WILL BE LOOKING FOR PEOPLE WITH
CROSS-FUNCTIONAL EXPERTISE STRONG BACKGROUND
AND TEAM MANAGEMENT SKILLS.
CORPORATES WOULD BE PAYING CLOSE ATTETENTION TO
TALENT ACQUISITION DEVELOPMENT AND RETENTION
THROUGH ATTRACTIVE COMPENSATION PACKAGES AND
INCENTIVE SCHEMES, APART FROM FLEXIBLE WORKING
HOURS.
RESOURCE MANAGEMENT
LEAN ORGANISATION – ORGANISATIONS WILL BE FORCED
TO ELIMINATE LOW-END JOB, SAY GOOD-BYE TO OLDER
EMPLOYEES WITH LIMITED SKILL-SETS, OUTSOURCE
WORK TO SPECIALISED INSTITUTIONS IN AN ATTEMPT TO
SAVE COSTS AND REMAIN HIGHLY COMPETITIVE. AS A
RESULT, LAY OFF WOULD OCCUR AND UNEMPLOYMENT
RATE WILL GO UP.
LABOUR RELATIONS : DEREGULATION, PRIVATISATION,
GLOBAL COMPETITION MEAN END OF THE ROAD FOR THE
TRADE UNION. THEY WILL LOSE THEIR COUNT SLOWLY
BUT STEADILY. ECONOMIC COMPULSIONS WOULD MAKE
BOTH THE EMPLOYERS AND EMPLOYEES REALISE THE
FOLLY OF PULLING DOWN SHUTTERS OR GOING ON
STRIKE. GOVERNMENTAL INFLUENCE IN LABOUR-
MANAGEMENT RELATIONS WOULD HAVE ONLY
HISTORICAL SIGNIFICANCE AS EMPLOYMENT-RELATED
ISUSES BEGIN TO BE DICTATED BY MARKET FORCES.
RESOURCE MANAGEMENT
HEALTH-CARE BENEFITS – TO ATTRACT
TALENTED WORKFORCE HEALTHIER WORK
ENVIRONMENTS WOULD BE ABSOLUTE
NECESSITY. EMPLOYEES WOULD BE OBLIGED TO
GIVE THEIR EMPLOYEES SAFE, HEALTHY AND
SECURE WORK ENVIRONMENTS. WELLNESS
PROGRAMMES ALSO NEED TO BE DESIGNED TO
HELP EMPLOYEES IDENTIFY POTENTIAL HEALTH
RISKS AND DEAL WITH THEM BEFORE THEY
BECOME PROBLEMS.
MORE IMPORTANT, ORGANISATIONS NEED TO
PAY ATTENTION TO ISSUES SUCH AS OFFICE
FURNITURE DESIGN, SPACE UTILISATION WITH A
VIEW TO IMPROVE COMFORT LEVELS OF
EMPLOYEES.
RESOURCE MANAGEMENT
SUMMARY :-
PEOPLE HAVE ALWAYS BEEN CENTRAL TO
ORGANISATIONS, BUT THEIR STRATEGIC IMPORTANCE IS
INCREASING IN TODAY’S KNOWLEDGE-BASED
INDUSTRIES. WHEN PROPERLY MOTIVATED, EVEN
ORDINARY PEOPLE CAN DELIVER EXTRAORDINARY
RESULTS.
HRM MAINLY COVERS THREE BROAD AREAS (1)
PERSONNEL ASPECT (2) WELFARE ASPECT (3) INDUSTRIAL
RELATIONS ASPECT.
HRM IS RESPONSIBLE FOR PEOPLE DIMENSION OF THE
ORGANISATION. IT IS PERVASIVE FORCE, ACTION-
ORIENTED, DEVELOPMENT-ORIENTED.
GOOD HR PRACICES HELP IN ATTRACTING AND
RETAINING TALENT, TRAIN PEOPLE FOR CHALLENGING
ROLES, DEVELOP THEIR SKILLS AND COMPETENCIES,
INCREASE PRODUCTIVITY AND ENHANCE STANDARD OF
LIVING.
RESOURCE MANAGEMENT
THE EFFECTIVE USE OF PEOPLE IS THE CRITICAL FACTOR
IN THE SUCCESSFUL ACCOMPLISHMENT OF CORPORATE
GOALS. TO THIS, THE HR MANAGERS NEED TO
UNDERSTAND THE NEEDS, ASPIRATIONS OF EMPLOYEES
PROACTIVLY, FACE THE CHALLENGES HEAD ON AND
RESOLVE ISSUES.
TERMINOLOGY :-
MANAGEMENT – THE PROCESS OF EFFICIENTLY
ACHIEVING THE OBJECTIVES OF THE ORGANISATION
WITH AND THROUGH PEOPLE.
HRM – THE PROCESS OF BRINING PEOPLE AND
ORGANISATIONS TOGETHER SO THAT THE GOALS OF
EACH ONE IS MET, EFFECTIVELY AND EFFICIENTLY.
PRODUCTIVITY – THE RATIO OF AN ORGANISATION’S
OUTPUTS TO ITS INPUTS.
CHAPTER 2
PERSONNEL MANAGEMENT FUNCTIONS,
POLICIES ETC.
HRD – A PLANNED WAY OF DEVELOPING INDIVIDUAL EMPLOYEES,
GROUPS AND THE TOTAL ORGANISATION TO ACHIEVE
ORGANISATIONAL GOALS, IN AN ATMOSPHERE OF MUTUAL TRUST
AND COOPERATION.
HR PLANNING – PROCESS OF IDENTIFYING HUMAN RESOURCE
NEEDS AND FORMULATING PLANS TO MEET THESE NEEDS.
RECRUITMENT – THE PROCESS OF FINDING AND ATTRACTING
CAPABLE APPLICANTS FOR EMPLOYMENT.
TRAINING – A LEARNING PROCESS DESIGNED TO ACHIEVE A
RELATIVELY PERMANENT CHANGE IN AN INDIVIDUAL THAT WILL
IMPROVE THE ABILITY TO PERFORM ON THE JOB.
COMPETITIVE ADVANTAGE – IT ALLOWS A FIRM TO GAIN AN EDGE
OVER RIVALS WHEN COMPETING. IT COMES FROM A FIRM’S
ABILITY TO PERFORM ACTIVITIES MORE DISTINCTLY AND MORE
EFFECTIVELY THAN RIVALS.
STRATEGIC HUMAN RESOURCE MANAGEMENT – THE LINKING OF
HRM WITH STRATEGIC GOALS AND OBJECTIVES IN ORDER TO
IMPROVE BUSINESS PERFORMANCE AND DEVELOP
ORGANISATIONAKL CULTURES THAT FOSTER INNOVATION AND
FLEXIBILITY. (DESSLER)
CHAPTER 2
POLICIES ETC.
PERSONNEL MANAGEMENT IS CONCERNED WITH PEOPLE AT WORK
AND THEIR RELATIONSHIP WITH EACH OTHER.
PERSONNEL MANAGEMENT ENSURES THAT THE ORGANISATION
ATTRACTS AND HIRES QUALIFIED, IMAGINATIVE AND COMPETENT
PEOPLE.
IT LAYS OUT THE RULES REGARDING THE WORKING CONDITIONS,
DESIGNS APPROPRIATE COMPENSATION PLANS AND STRENGTHEN
EMPLOYER-EMPLOYEE RELATIONS.
ACCORDING TO THE NATIONAL INSTITUTE OF PERSONNEL
MANAGEMENT, THE THREE IMPORTANT DIMENSIONS OF
PERSONNEL MANAGEMENT INCLUDE : -
PERSONNEL ASPECT – RECRUITMENT, SELECTION, PLACEMENT,
TRAINING, APPRAISAL, COMPENSATION AND PRODUCTIVITY.
WELFARE ASPECT – WORKING CONDITIONS, AMENITIES,
FACILITIES AND BENEFITS.
INDUSTRIAL RELATIONS ASPECT – UNION-MANAGEMENT
RELATIONS, DISPUTES SETTLEMENT, GRIEVANCE HANDING,
DISCIPLINE, COLLECTIVE BARGAINING.
CHAPTER 2
POLICIES ETC.
PESONNEL MANAGEMENT IS CONCERNED WITH
DEVELOPMENT OF HUMAN RESOURCES. IT
OPTIMISES KNOWLEDGE, CAPABILITY, SKILL
AND POTENTIALITIES TOWARDS ATTAINING
BOTH EMPLOYEE-AND ORGANISATIONAL GOALS.
IT APPLIES TO ALL EMPLOYEES IN ALL TYPES OF
ORGANSIATIONS IN THE WORLD (INDUSTRY,
TRADE, SERVICE , SOCIAL, POLITICAL AND
GOVERNMENT DEPARTMENTS).
IT AIMS AT ATTAINING THE GOALS OF THE
ORGANISATION. ORGANISATIONAL GOALS MAY
INCLUDE SURIVIAL, GROWTH AND
DEVELOPMENT IN ADDITION TO PROFITABILITY,
INNOVATION AND EXCELLENCE.
CHAPTER 2
POLICIES ETC.
INDIVIDUAL EMPLOYEE-GOALS MAY CONSIST OF
JOB SATISFACTION, JOB SECURITY, HIGH
SALARY, ATTRACTIVE FRINGE BENEFITS,
CHALLENGING WORK, PRIDE , STATUS,
RECOGNITION AND OPPORTUNITY FOR
DEVELOPMENT.
SOCIETAL GOALS INCLUDE EQUAL EMPLOYMENT
OPPORTUNITIES, PROTECTING THE
DISADVANTAGED AND PHYSICALLY
HANDICAPPED, MINIMISING WAGE
DIFFERENTIALS AND UNDERTAKING
DEVELOPMENTAL ACTIVITIES.
IT IS CONCERNED MOSTLY MANAGING HUMAN
RESOURCE AT WORK.
CHAPTER 2
POLICIES ETC.
PERSONNEL MANAGEMNET / HRM IS CONCERNED WITH
TWO SETS OF FUNCTIONS – MANAGERIAL FUNCTIONS
AND OPERATIVE FUNCTIONS.
MANAGERIAL FUNCTIONS – THE BASIC MANAGERIAL
FUNCTIONS COMPRISE PLANNING, ORGANISING,
DIRECTING AND CONTROLLING.
PLANNING – THE PERSONNEL MANAGER IS EXPECTED TO
DETERMINE THE PERSONNEL PROGRAMME REGARDING
RECRUITMENT, SELECTION AND TRAINING OF EMPLOYEES.
ORGANISING – THIS FUNCTION IS CONCERNED WITH
ASSIGNING OF DIFFERENT GROUP OF ACTIVITIES TO
DIFFERENT INDIVIDUALS AND DELEGATION OF
AUTHORITY.
DIRECTING – THIS INVOLVES SUPERVISION AND GUIDING
THE PERSONNEL . TO EXECUTE PLANS, DIRECTION IS
ESSENTIAL. THE PERSONNEL MANAGER MUST BE AN
EFFECTIVE LEADER WHO CAN CREATE WINNING TEMS.
CHAPTER 2
POLICIES ETC.
CONTROLLING – CONTROLLING FUNCITON OF
PERSONNEL MANAGEMENT COMPRISES
MEASURING EMPLOYEE PERFORMANCE, MAKING
AWARE OF THEIR PERFORMANCE THROUGH
REVIEW REPORTS. IT ENSURES THAT THE
ACTIVITIES ARE BEING CARRIED OUT IN
ACCORDANCE WITH STATED PLANS.
OPERATIVE FUNCTIONS :-
THE OPERATIVE FUNCTION OF HRM IS RELATED
TO SPECIFIC ACTIVITIES OF PERSONNEL
MANAGEMENT LIKE EMPLOYMENT, COMPENSATION
AND INDUSTRIAL RELATIONS ETC. THESE
FUNCTIONS ARE TO BE PERFORMED IN
CONJUNCTION WITH MANAGERIAL FUNCTIONS.
CHAPTER 2
POLICIES ETC.
PROCUREMENT FUNCTION :-
THE FIRST OPERATIVE FUNCTION OF PERSONNEL
MANAGEMENT IS PROCUREMENT. IT IS CONCERNED WITH
PROCURING AND EMPLOYING PEOPLE WHO POSSESS
NECESSARY SKILL, KNOWLEDGE AND APTITUDE. UNDER
ITS PURVIEW, JOB ANALYSIS, MANPOWER PLANNING,
RECRUITMENT, SELECTION, PLACEMENT, INDUCTION AND
INTERNAL MOBILITY.
JOB ANALYSIS – IT IS THE PROCESS OF COLLECTING
INFORMATION RELATING TO THE OPERATIONS AND
RESPONSIBILITIES PERTAINING TO A SPECIFIC JOB.
RECRUITMENT – IT IS THE PROCESS OF SEARCHING FOR
PROSPECTIVE EMPLOYEES AND STIMULATING THEM TO
APPLY FOR JOBS IN THE ORGANISATION.
SELECTION – IT IS A PROCESS OF ASCERTAINING
QUALIFICATIONS, EXPERIENCE, SKILL AND KNOWLEDGE
OF AN APPLICANT WITH A VIEW TO APPRAISING HIS/HER
SUITABILITY FOR THE JOB ON OFFER.
CHAPTER 2
POLICIES ETC.
PLACEMENT – IT IS THE PROCESS THAT ENSURES A 360 DEGREES
FIT, MATCHING THE EMPLOYEES QUALIFICATIONS , EXPERIENCE,
SKILLS AND INTEREST WITH THE JOB ON OFFER. IT IS THE
PERSONNEL MANAGER’S RESPONSIBILITY TO POSITION THE
RIGHT CANDIDATE AT THE RIGHT LEVEL.
INDUCTION AND ORIENTATION – INDUCTION AND ORIENTATION
ARE TECHNIQUES BY WHICH A NEW EMPLOYEE IS REHABILITATED
IN HIS NEW SURROUNDINGS AND INTRODUCED TO THE
PRACTISES, POLICIES AND PEOPLE. HE MUST BE ACQUAINTED
WITH THE PRINCIPLES WHICH DEFINE AND DRIVE THE
ORGANISATION, ITS MISSION STATEMENT AND VALUES WHICH
FORM ITS BACKBONE.
INTERNAL MOBILITY – THE MOVEMENT OF EMPLOYEES FROM ONE
JOB TO ANOTHER THROUGH TRANSFERS AND PROMOTION IS
CALLED INTERNAL MOBILITY. SOME EMPLOYEES LEAVE THE
ORGANISATION DUE TO VARIOUS REASONS LEADING TO
RESIGNATION, RETIREMENT AND EVEN TERMINATION. THESE
MOVEMENTS ARE KNOWN AS EXTERNAL MOBILITY. IN THE BEST
INTERESTS OF AN ORGANISATION AND ITS EMPLOYEES, SUCH JOB
CHANGES SHOULD BE GUIDED BY
WELL-CONCEIVED PRINCIPES AND POLCIES.
CHAPTER 2
POLICIES ETC.
DEVELOPMENT :
TRAINING – TRAINING IS A CONTINUOUS PROCESS BY
WHICH EMPLOYEES LEARN SKILLS, KNOWLEDGE,
ABILITIES AND ATTITUDES TO FURTHER ORGANISATIONAL
AND PERSONAL GOALS.
EXECUTIVE DEVELOPMENT – IT IS A SYSTEMATIC
PROCESS OF DEVELOPING MANAGERIAL SKILLS AND
CAPABILITIES THROUGH APPROPRIATE PROGRAMMES.
CAREER PLANNING AND DEVELOPMENT – IT IS THE
PLANNING OF ONE’S CAREER AND IMPLEMENTATION OF
CAREER PLANS BY MEANS OF EDUCATION, TRAINING,
ACQUISITION OF WORK EXPERIENCES
HUMANR RESOURCE DEVELOPMENT – HRD AIMS AT
DEVELOPING THE TOTAL ORGANISATION. IT CREATES A
CLAIMATE THAT ENABLES EVERY EMPLOYEE TO DEVELOP
AND USE HIS CAPABILITIES IN ORDER TO FURTHER BOTH
INDIVIDUAL AND ORGANISATIONAL GOALS.
CHAPTER 2
POLICIES ETC.
PERSONNEL / MOTIVATION AND COMPENSATION:-
MOTIVATION AND COMPENSATION IS A PROCESS WHICH
INSPIRES PEOPLE TO GIVE THEIR BEST TO THE
ORGANSIATION THROUGH THE USE OF INTRINSIC
(ACHIEVEMENT, RECOGNITION, RESPONSIBILITY) AND
EXTRINSIC (JOB DEIGN, WORK SCHEDULING, APPRAISAL
BASED INCENTIVE) REWARDS.
COMPENSATION ADMINISTRATION – IT IS A PRCESS OF
DIVIDING HOW MUCH AN EMPLOYEE SHOULD BE PAID.
THE IMPORTANT GOALS OF COMPENSATION ARE TO
DESIGN A APPROPRIATE -COST PAY PLAN THAT WILL
ATTRACT, MOTIVATE AND RETAIN COMPETENT
EMPLOYEES-WHICH IS ALSO PERCEIVED TO BE FAIR BY
THE EMPLOYEES.
INCENTIVES AND BENEFITS – IN ADDITION TO A BASIC
WAGE STRUCUTRE, MOST ORGANISATIONS OFFER
INCENTIVE COMPENSATION BASED ON ACUTAL
PERFORMANCE LIKE EMPLOYEE STOCK OPTIONS,
BIRTHDAY GIFTS, CLUB MEMBERSHIP ETC.
CHAPTER 2
POLICIES ETC.
PERSONNEL - MAINTENANCE FUNCTIONS.
HEALTH AND SAFETY – HR MUST ENSURE A WORK
ENVIRONMENT THAT PROTECTS EMPLOYEES FROM
PHYSICAL HAZARDS, UNHEALTHY CONDITIONS.
EMPLOYEE WELFARE – EMPLOYEE WELFARE INCLUDES
AMENITIES AND FACILTIES OFFERED TO EMPLOYEES
WITHIN OR OUTSIDE THE ESTABLISHMENT. HOUSING,
TRANSPORTATION, EDUCATION, RECREATION FACILITIES
ARE INLCUDED UNDER EMPLOYEE WELFARE PACKAGE.
SOCIAL SECURITY MEASURES – MANAGEMENT MUST
PROVIDE SOCIAL SECURITY TO EMPLOYEES IN ADDITION
TO FRINGE BENEFITS. THESE MEASURES INCLUDE (WCA,
MATERNITY BENEFITS, SICKNESS BENEFITS AND MEDICAL
BENEFITS, DISABLEMENT BENEFITS, RETIREMENT
BENEFITS, P.F. GRATUITY, PENSION ETC.
CHAPTER 2
POLICIES ETC.
PERSONNEL /INTEGRATION FUNCTIONS – THIS TRIES TO
INTEGRATE THE GOALS OF AN ORGANISATION WITH
EMPLOYEE THROUGH VARIOUS EMPLOYEE-ORIENTED
PROGRAMMES, LIKE REDRESSING GRIEVANCES
PROMPTLY, INSTITUTING PROPER DISCIPLINARY
MEASURES, ENCOURAGING A PARTICIPATIVE CULTURE,
EMPOWERING PEOPLE TO DECIDE THINGS
INDEPENDENTLY ETC.
GRIEVANCE REDRESSAL – A GRIEVANCE IS ANY FACTOR
INVOLVING WAGES, HOURS OR CONDITIONS OF
EMPLOYMENT THAT IS USED AS A COMPLAINT AGAINST
AN EMPLOYER.
DISCIPLINE – IT IS THE FORCE THAT PROMPTS THE
INDIVIDUALS OR A GROUP TO OBSERVE THE RULES,
REGULATIONS AND PROCEDURES, WHICH ARE DEEMED
NECESSARY FOR THE ATTAINMENT OF AN OBJECTIVE.
CHAPTER 2
POLICIES ETC.
COLLECTIVE BARGAINING – IT IS A PROCESS OF
AGREEING ON A SATISFACTORY LABOUR CONTRACT
BETWEEN MANAGEMENT AND UNION. THE CONTRACT
CONTAINS AGREEMENTS ABOUT CONDITIONS OF
EMPLOYMENT SUCH AS WAGES, HOURS, PROMOTION ETC.
THE RESULTING AGREEMENT MUST BE RATIFIED BY
UNIONS WORKERS AND MANAGEMENT.
INDUSTRIAL RELATIONS – HARMONIOUS INDUSTRIAL
RELATIONS BETWEEN LABOUR AND MANAGEMENT ARE
ESSENTIAL TO ACHIEVE INDUSTRIAL GROWTH AND
HIGHER PRODUCTIVITY. WHEN CORDIAL RELATIONSHIP
DOES NOT EXIST, IT RESULTS IN DISCONTENT AND
CONFLICTS ERUPT ABURPTLY. BOTH LABOUR AND
MANAGEMENT MUST APPRECIATE THE IMPORTANCE OF
OPENNESS, TRUST AND COLLABORATION IN THEIR DAY-
TO-DAY DEALINGS.
CHAPTER 2
POLICIES ETC.
PERSONNEL POLICIES :-
POLICIES ARE GENERAL STATEMENTS THAT GUIDE
THINKING AND ACTION IN DECISION-MAKING.
DEFINITION OF PERSONNEL POLICY
PERSONNEL POLICIES ARE GUIDE TO ACTION. THEY
OFFER THE GENERAL STANDARDS OR PARAMETERS
BASED ON WHICH DECISIONS ARE REACHED. THEY SERVE
AS A ROAD-MAP FOR MANAGERS ON A NUMBER OF
ISSUES SUCH AS RECRUITMENT, SELECTION, PROMOTION
AND COMPENSATION.
IMPORTANCE FEATURES OF PERSONNEL POLICY
IT IS GENERALLY DERIVED FROM THE PERSONNEL
OBJECTIVES OF AN ORGANISATION.
IT HELPS IN DECISION-MAKING.
IT HELPS TO DISPOSE OF REPETITIVE PROBLEMS IN A
CONSISTENT MANNER.
CHAPTER 2
POLICIES ETC.
PERSONNEL POLICY – PROCEDURES
POLICIES DO NOT INCLUDE STATEMENT
DESCRIBING SPECIFICALLY HOW THE POLICY IS
TO BE IMPLEMENTED. POLICIES ARE
IMPLEMENTED BY PROCEDURES. A PROCEDURE
IS A WELL-THOUGHT OUT COURSE OF ACITON.
IT PRESCRIBES THE SPECIFIC MANNER IN
WHICH A PIECE OF WORK IS TO BE DONE.
PROCEDURES ARE CALLED “ACTION
GUIDELIENS”. THEY ARE USUALLY DERIVED
FORM POLICIES. PROCEDURES SHOW A
SEQUENCE OF ACTIVITIES.
CHAPTER 2
POLICIES ETC.
ADVANTAGES OF PERSONNEL POLICIES:-
POLCIES AS USEFUL INSTRUCTIONAL DEVICES,
OFFER MANY ADVANTAGES TO THE PERSONNEL
WORKING AT VARIOUS LEVELS
DELEGATION – THEY HELP MANAGERS
OPERATING AT DIFFERENT LEVELS TO ACT WITH
CONFIDENCE WITHOUT THE NEED FOR
CONSULTING SUPERVISORS EVERY TIME.
UNIFORMTITY – THEY MAKE THE ACTIONS OF
ORGANISATIONAL MEMBERS MORE
CONSISTENT.
BETTER CONTROL – IT REDUCES
FRICTION/CONFLICT PAVING WAY FOR BETTER
CONTROL.
CHAPTER 2
POLICIES ETC.
SPEEDY DECISIONS – POLICIES CAN SPEED UP
DECISION MAKING BY PROVIDING A BLANKET
FRAMEWORK WITH WHICH PERSONNEL
DECISIONS CAN BE MADE. THEY SUMMARISE
PAST EXPERIENCE.
THEY ENSURE A STEADY COURSE OF ACTION
AND PREVENT UNWARRANTED DEVIATIONS
FROM PLANNED OPERATIONS.
IN THE ABSENCE OF PERSONNEL POLICY,
SIMILAR QUESTIONS MUST BE CONSIDERED
TIME AFTER TIME,. LACK OF POLICY MEANS
THAT THE ORGANISATION HAS NO CONTINUING
POSITION.
CHAPTER 2
POLICIES ETC.
OBSTACLES IN ADMINISTERING PERSONNEL POLICIES :-
MANY TIMES MANAGERS ARE RELUCTANT TO FOLLOW
POLICY GUIDELINES, FOR THEY RESTRICT THE SCOPE OF
MANAGERIAL WORK AND CURTAIL EXECUTIVE FREEDOM.
OFTEN CONFLICT ERUPTS BETWEEN IMPLIED AND
EXPRESSED POLICY STATEMENTS, ESPECIALLY ON
EMPLOYMENT MATTERS. FOR EXAMPLE, A POLICY OF
PROMOTING EMPLOYEES ON THE BASIS OF MERIT ONLY
(EXPRESSED) MAY BE SABOTAGED BY UNSCRUPULOUS
MANAGERS BY PROMOTING ‘YES MEN’ (IMPLIED).
PERSONNEL POLICIES DEMAND CONSTANT REVISION.
ONCE ESTABLISHED , THEY PERSIST AND BECOME
UNALTERABLE. IN THE ABSENCE OF REVIEW, IT WOULD
BE DIFFICULT TO EFFECT A DESIRABLE CHANGE.
CHAPTER 2
POLICIES ETC.
CHARACTERISTICS OF A SOUND PERSONNEL POLICY :
EASY TO UNDERSTAND - POLICIES SHOULD BE STATED
IN DEFINITE, POSITIVE, CLEAR AND UNDERSTANDABLE
LANGUAGE.
PRECISE – POLICIES SHOULD BE SUFFICIENTLY
COMPREHESIVE.
STABLE AND FLEXIBLE – PERSONNEL POLICIES SHOULD
BE STABLE ENOUGH TO ASSURE PEOPLE THAT THERE WILL
NOT BE SUDDEN CHANGE. THEY SHOULD BE FLEXIBLE
ENOUGH TO KEEP THE ORGANISATION IN TUNE WITH THE
TIMES.
POLICIES SHOULD BE FAIR, JUST AND EQUITABLE
REASONABLE – PERSONNEL POLICIES MUST BE
REASONABLE AND CAPABLE OF BEING ACCOMPLISHED.
REVIEW – PERIODIC REVIEW OF PERSONNEL POLICIES IS
ESSENTIAL TO KEEP IN TUNE WITH CHANGING TIMES.
CHAPTER 2
POLICIES ETC.
COVERAGE OF PERSONNEL POLICIES
SOCIAL RESPONSIBILITY –
EQUITY – TREATING EMPLOYEES FAIRLY AND JUSTLY BY
ADOPTING AN EVEN-HANDED APPROACH.
EMPLOYMENT POLICIES – PROVISION OF EQUAL
EMPLOYMENT OPPORTUNITIES WITHOUT BIAS ON
GENDER.
PROMOTION POLICIES – PROMOTION POLICIES SHOULD
RECONCILE THE DEMANDS OF EMPLOYEES FOR GROWTH
AND THE ORGANISATION ‘S DEMANDS FOR FRESH AND
MUCH MORE PROMISING TALENT. PROMOTION POLICY
SHOULD BE FAIR AND JUST TO ALL.
DEVELOPMENT POLICIES – POLICIES SHOULD COVER THE
KIND OF EMPLOYEES TO BE TRAINED, TIME SPAN OF
TRAINING PROGRAMME ETC. THESE POLICIES ALSO
COVER PERFORMANCE APPRAISAL.
CHAPTER 2
POLICIES ETC.
RELATIONS POLICIES – THESE COVER
DIFFERENT ASPECTS OF HUMAN RELATIONS LIKE
POLICIES REGARDING MOTIVATION, MORALE,
COMMUNICATION, LEADERSHIP STYLES,
GRIEVANCE PROCEDURES, DISCIPLIANARY
PROCEDURE, EMPLOYEE COUNSELLING ETC.
RELATIONS POLICIES ALSO COVER THE AREAS
OF INDUSTRIAL RELATIONS LIKE UNION
RECOGNITION, UNION REPRESENTATION,
COLLELCTIVE BARGAINING, PREVENTION AND
SEETTLEMENT OF INDUSTRIAL DISPUTES AND
PARTICIPATIVE MANAGEMENT.
CHAPTER 2
POLICIES ETC.
COMMUNICATING THE POLICY :
THE FORMULATED POLICY SHOULD BE
COMMUNICATED THROUGHOUT THE
ORGANISATION. POLICY MANUAL, IN-HOUSE
JOURNAL AND DISCUSSIONS WITH PEOPLE AT
VARIOUS LEVELS MAY BE USED TO REACH OUT
TO EMPLOYEES QUICKLY.
EVALUATING THE POLICY – PERSONNEL
POLICIES, TO BE EFFECTIVE, MUST BE
REVIEWED, EVALUATED AND CONTROLLED
REGULARLY.
ALL POLICIES SHOULD BE REVIWED ANNUALLY.
CHAPTER 2
POLICIES ETC.
EVALUATING THE IMPACT OF PERSONNEL
POLICIES
THE IMPACT OF PERSONNEL POLICIES CAN BE
MEASURED THROUGH THEIR OUTCOMES I.E.
COMMITMENT OF THE EMPLOYEE TOWARDS THE
ORGANISATION, ABSENTEEIM, EMPOYEE
ATTITUDE TOWARDS THE JOB , ORGANISATION
ETC.
THE COMPETENCE OF AN EMPLOYEE CAN BE
APPRIASED THROUGH PERFORMANCE APPRAISAL
TECHNIQUES. HOWEVER, ASSESSING THE
IMPACT OF HUMAN RESOURCE MANAGEMENT
POLCIES IS HIGHLY DIFFICULT, BUT NOT
IMPOSSIBLE.
CHAPTER 2
POLICIES ETC.
WHEN PEOPLE GATHER TOGETHER AND FORMALLY AGREE
TO COMBINE THEIR EFFORTS FOR A COMMON PURPOSE,
AN ORGANISATION BEGINS TO TAKE SHAPE.
ACCORDING TO CLASSICAL THEORISTS (FAYOL, TAYLOR,
WEBER) STRUCUTRE IS ESSENTIAL TO ACHIEVE STATED
GOALS. THE MANAGER DETERMINES WORK ACTIVITIES IN
ORDER TO GET THE JOB DONE.
AN ORGANISATIONAL STRUTURE SPECIFIES FORMAL
REPORTING RELATIONSHIPS BETWEEN MEMBERS.
LINE AUTHORITY REPRESENTS UNINTERRUPTED LINE OF
AHTHORITY AND RESPONSIBILITY RUNNING THROUGH
THE MANAGEMENT AUTHORITY. THE LINE MANAGERS ARE
COMPLETELY RESPONSIBLE AND ACCOUNTABLE FOR THE
RESULTS.
THE STAFF RELATIONSHIP PROVIDE ADVICE TO THE LINE
AUTHORITY. THE RELATIONSHIP BETWEEN A LINE
MANAGER AND THE STAFF AUTHORITY IS ADVISORY.
CHAPTER 2
POLICIES ETC.
STAFF HAVE AUTHORITY OF IDEAS, LINES HAVE
THE AUTHORITY OF COMMAND. STAFFS THINK,
LINES DO. STAFFS THINK, LINES DO.
ACCORDING TO McFARLAND, A STAFF MANAGER
HELPS SERVE, INVESTIGATE, PLAN, SOLVE
SPECIAL PROBLEMS, SUPPORT LINE EFFORT,
PROVIDE IDEAS AND HAVE SPECIAL EXPERTISE.
IT IS WIDELY FELT THAT “PERSONNEL
MANAGEMENT IS A LINE MANAGER’S
RESPONSIBILITY, BUT A STAFF FUNCTION.”
PERSONNEL MANAGEMENT IS A RESPONSIBILITY
OF ALL LINE MANAGERS. IN THIS SENSE, EVERY
MANAGER IS A PERSONNEL MANAGER.
CHAPTER 2
POLICIES ETC.
PERSONNEL MANAGERS ARE CREATED FOR THE PURPOSE
OF PROVIDING ASSISTANCE, ADVICE AND INFORMATION
TO LINE MANAGERS.
STAFF ROLE OF THE PERSONNEL DEPARTMENT :-
POLICY INITIATION AND FORMULATION:- ONE OF THE
IMPORTANT FUNCTIONS OF THE PERSONNEL DEPARTMENT
IS FORMULATION OF NEW PERSONNEL POLICY AND
ALTERATION OR MODIFICATION OF THE EXISTING
PERSONNEL POLICIES. HE ASSISTS, ADVISES AND
COUNSELS THE MANAGING DIRECTOR REGARDING
IMPLICATIONS OF MAJOR CRUCIAL POLICIES.
ADVICE :- THE MAJOR ACTIVITY OF THE PERSONNEL
DEPARTMENT/MANAGER IS ADVISING, COUNSELLING
MANAGERS OPERATING AT VARIOUS LEVELS (JUNIOR,
MIDDELE & SENIOR) . ADVISE SHOULD BE BASED ON
THOROUGH THINKING, ANALYSIS AND RESEARCH
REGARDING THE PROS AND CONS IMPLICATIONS.
CHAPTER 2
POLICIES ETC.
MONITOR AND CONTROL :- PERSONNEL
DEPARTMENT MONITORS PERFORMANCE
AND CONTROLS LINE ACTIVITIES TO THE
EXTENT THEY ARE RELATED TO
PERSONNEL ISSUES. IT COMPARES THE
ACTUAL PERFORMANCE OF LINE
MANAGERS WITH THE ESTABLISHED
PERSONNEL POLICIES. IT ALSO
IDENTIFIES AND INFORMS DEVIATIONS
WITH POSSIBLE ALTERNATIVE
SOLUTIONS TO LINE MANAGERS.
CHAPTER 2
POLICIES ETC.
THE STRUCUTURE OF PERSONNEL DEPARTMENT DEPENDS

ON FACTORS SUCH AS NATURE AND SIZE OF AN
ORGANISATION. SMALL FIRMS HAVE ONLY A SINGLE
SECTION, HEADED BY PERSONNEL OFFICER TAKING OF
EVERYTHING.
MEDIUM SIZE FIRMS MAY CREATE A SEPARATE
PERSONNEL DEPARTMENT HAVING EXPERTS IN THE
PERSONNEL FIELD, SUPPORTED BY ADMINISTRATIVE
STAFF.
IN LARGE FIRMS THE STRUCUTURE OF PERSONNEL
DEPARTMENT MAY TAKE VARIOUS SHAPE. EACH SECTION
OF PERSONNEL DEPARTMENT WILL HAVE SPECIALIST AND
THE WHOLE DEPARTMENT WILL BE HEADED BY PRESIDENT
(HR).
CHAPTER 2
POLICIES ETC.
ROLE OF PERSONNEL MANAGER :
HUMAN RESOURCES MANAGERS, NOW-A-DAYS WEAR
MANY HATS. THEY PERFORM MAINLY THREE DIFFERENT
TYPES OF ROLES (1) ADMINISTRATIVE (2) OPERATIONAL
(3) STRATEGIC.
THE ADMINISTRATIVE ROLE OF HUMAN RESOURCE
MANAGEMENT INCLUDE – POLICY FORMULATION AND
IMPLEMENTATION, HOUSEKEEPING, RECORDS
MAINTENANCE, WELFARE ADMINISTRATION AND LEGAL
COMPLAINCE.
THE OPERATIONAL ROLES ARE TACTICAL IN NATURE AND
INCLUDE RECRUITING, TRAINING AND DEVELOPMENT OF
EMPLOYEES.
THE STRATEGIC ROLE OF HR MANAGEMENT FOCUSES
ATTENTION ON HOW TO ENABLE ORDINARY EMPLOYEES
TO TURN OUT EXTRAORDINARY PERFORMANCE.
CHAPTER 2
POLICIES ETC.
THE KEY AREAS OF ATTENTION IN THIS ERA OF GLOBAL
COMPETITION INCLUDE EFFECTIVE MANAGEMENT OF KEY
RESOURCES ( EMPLOYEES).
HR AIMS AT DELIVERING STRTEGIC SERIVICES COST-
EFFECTIVELY BY BUILDING A COMPETENT, CONSUMER-
ORIENTED WORK FORCE.
QUALITIES AND QUALIFICATIONS OF A PERSONNEL
MANAGER – HR MANAGERS HAVE TO DO A GOOD JOB OF
MANAGING HUMAN CAPITAL – THE KNOWLEDGE, SKILL
AND CAPABILITIES THAT ADD VALUE TO ORGANISATION.
PERSONNEL MANAGER SHOULD COMBINE THE QUALITIES
OF HEAD AND HEART, IN ADDITION TO HAVING STATE OF
ART HR COMPETENCIES, BUSINESS COMPETENCIES AND
CHANGE MANAGEMENT COMPETENCIES.
PERSONAL ATTRIBUTES – HE SHOULD POSSESS
INITIATIVE, RESOURCEFULNESS, DEPTH OF PERCEPTION,
MATURITY IN JUDGEMENT AND ANALYTICAL ABILITY.
CHAPTER 2
POLICIES ETC.
HE SHOULD HAVE THOROUGH KNOWLEDGE OF LABOUR
LAWS. AN UNDERSTANDING OF HUMAN BEHAVIOUR IS
ESSENTIAL TO ENABLE HIM TO BE FAMILIAR WITH HUMAN
NEEDS, WANTS, HOPES AND DESIRES, VALUES AND
ASPIRATIONS, WITHOUT WHICH MOTIVATING PEOPLE CAN
BE AN ONEROUS TASK.
THE PERSONNEL MANAGER SHOULD POSSESS PERSONAL
ATTRIBUTES LIKE INTELLIGENCE – SKILLS TO
COMMUNICATE AND TACT IN DEALING WITH PEOPLE,
ABILITY TO DRAFT AGREEMENT, PERSONNEL POLICIES
ETC.
THE PERSONNEL MANAGER SHOULD POSSESS LEARNING
AND TEACHING SKILLS.
HE SHOULD POSSESS DISCRIMIATING SKILLS (RIGHT AND
WRONG), JUST AND UNJUST, MERIT AND DEMERIT.
HE IS EXPECTED TO EXECUTE MANAGEMENT’S DECISIONS
ON PERSONNEL ISSUES WITH SPEED, ACCURACY ETC.
CHAPTER 2
POLICIES ETC.
EXPERIENCE AND TRAINING – PREVIOUS
EXPERIENCE IS UNDOUBTEDLY AN ADVANTAGE.
TRAINING IN PSYCHOLOGICAL ASPECTS OF
HUMAN BEHAVIOUR, LABOUR LEGISLATIONS,
PERSONNEL MANAGEMENT AND GENERAL
MANAGEMENT ARE ALSO REQUIRED.
PROFESSIONAL ATTITUDE – PROFESSIONAL
ATTITUDE IS RELEVANT. HE SHOULD HAVE
PATIENCE AND UNDERSTANDING THE ABILITY
TO LISTEN BEFORE OFFERING ADVICE. HE
SHOULD EVINCE PERSONAL INTEREST IN
PEOPLE, COUPLED WITH COMPASSION AND
INTEGRITY.
CHAPTER 2
POLICIES ETC.
PERSONNEL MANAGER – QUALIFICATIONS:-
THE JOB OF PERSONNEL MANAGER IS COMPLEX.
HE SHOULD POSSESS DEGREE FROM A
RECOGNISED UNIVERSITY OR REPUTED
INSTITUTION.
POST-GRADUATE DEGREE/DIPLOMA IN
HRM/SOCIAL WORK/LABOUR WELFARE WITH
SPECIALISATION IN HRM.
DEGREE IN LAW (DESIRABLE QUALN.)
KNOWLEDGE OF LOCAL LANGUAGE.
HR MASTERY IN ANY ASPECT OF HRM
(COMPENSATION, PERFORMANCE MANAGEMENT
ETC).
CHAPTER 2
POLICIES ETC.
TOP MANAGEMENT EXPECTS THE PERSONNEL
MANAGER TO :-
CONVEY ITS COMMANDS, INSTRUCTIONS,
POLICIES AND PROGRAMMES TO EMPLOYEES IN
AN EFFECTIVE WAY.
LOOK AFTER THE SAFETY AND WELFARE OF
EMPLOYEES.
TAKE CARE OF LEGAL PROVISIONS GOVERNING
WORKPLACE.
OFFER EXPERT ADVICE ON ISSUES RELATING TO
HUMAN RESOURCE PLANNING, RECRUITMENT,
TRAINING, PERFORMANCE MANAGEMENT ETC.
CHAPTER 2
POLICIES ETC.
IN UNION-MANAGEMENT RELATIONS, THE PERSONNEL
MAN IS EXPECTED TO ABSORB FRAYED TEMPERS, NOTES
OF DISCONTENT AND DISAGREEMENT, WHILE CREATING
A DIALOGUE AND BRINING ABOUT PEACE.
WHILE DISCHARGING THE ABOVE DUTIES, HE IS NOT
EXPECTED TO LOSE SIGHT OF HIS MORAL AND SOCIAL
OBLIGATIONS TOWARDS EMPLOYEES.
HE SHOULD POSSESS BUSINESS MASTERY – HE SHOULD
KNOW THE BUSINESS OF THE ORGANISATION – ITS
PROCESSES, PRODUCTS, CUSTOMERS, MARKETS ETC.
CHANGE MASTERY – HR MANAGER NEED TO BE ABLE TO
INFLUENCE OTHERS AND GUIDE CHANGE IN
ORGANISATIONS. THIS CALLS FOR INTERPERSONAL AND
PROBLEM SOLVING SKILLS IN ADDITION TO CREATIVITY
AND INNOVATIVENESS.
CHAPTER 3 – HRM IN A DYNAMIC
ENVIRONMENT
THERE ARE A NUMBER OF CRITICAL TRENDS AFFECTING
THE EMPLOYMENT RELATIONSHIP THAT FURTHER AFFECT
HOW ORGANISATIONS NEED TO MANAGE EMPLOLYEES.
SOME OF THESE TRENDS PERTAIN TO CHANGES TAKING
PLACE IN THE EXTERNAL ENVIRONMENT OF THE
ORGANISATION; OTHERS PERTAIN TO SOME OF THE WAYS
ORGANISATIONS ARE RESPONDING INTERNALLY TO SUCH
TRENDS.
THE TERM ‘ENVIRONMENT OF BUSINESS’ REFERS TO THE
AGGREGATE OF CONDITIONS, EVENTS AND INFLUENCES
THAT SURROUND AND AFFECT IT.
THE EXTERNAL FACTORS ARE : TECHNOLOGICAL
FACTORS, ECONOMIC CHALLENGES, POLITICAL FACTORS,
LOCAL AND GOVERNMENT ISSUES, UNIONS , EMPLOYERS’
DEMANDS, WORKFORCE DIVERSITY ETC.
THE INTERNAL FACTORS – MISSION, POLICIES,
ORGANISATIONAL CULTURE, ORGL STRUCTURE, ETC.
ENVIRONMENT
THE JOB OF THE HR MANAGER IS TO BALANCE THE
DEMANDS AND EXPECTAIONS OF THE EXTERNAL GROUPS
WITH THE INTERNAL REQUIREMENTS AND ACHIEVE THE
GOALS IN AN EFFICIENT AND EFFECTIVE MANNER.
HR MANAGER SHOULD WORK CLOSELY , UNDERSTAND
THE INTERNAL DYNAMICS PROPERLY AND DEVICE WAYS
AND MEANS TO SURVIVE AND PROGRESS.
TECHNOLOGICAL CHANGES - AN ORGANISATION’S
TECHNOLOGY IS THE PROCESS BY WHICH AN
ORGANISATION’S ENVIRONMENT ARE TRANSFORMED INTO
OUTPUTS. TECHNOLOGY INCLUDES TOOLS, MACHINERY,
EQUIPMENT, WORK PROCEDURES AND EMPLOYEE
KNOWLEDGE AND SKILLS. TECHNOLOGICAL ADVANCES
CAN OPEN UP NEW MARKETS, RESULT IN PROLIFERATION
OF NEW AND IMPROVED PRODUCTS, RESULT IN COST-
POSITION AND RENDER EXISTING PRODUCTS AND
SERVICES OBSOLETE.
ENVIRONMENT
RECENT TECHNOGICAL ADVANCES, AS WELL KNOW, IN
COMPUTERS, LASERS, ROBOTS, SATELLITE NETWORKS,
FIBRE OPTICS ETC HAVE PAVED THE WAY FOR
SIGNIFICANT OPERATIONAL IMPROVEMENTS.
IMPACT OF TECHNOLOGY ON HRM- NEW SKILLS REQUIRED
– AS NEW TECHNOLOGICIES ARE DEVELOPED AND
IMPLEMENTED, THERE IS AN URGENT NEED TO UPGRADE
EXISTING EMPLOYEE SKILLS AND KNOWLEDGE IF THE
ORGANISATION WANTS TO SURVIVE AND FLOURIUSH IN
THE COMPETITIVE WORLD. ADDITIONALLY, THERE WILL
BE GROWING DEMAND FOR WORKERS WITH MORE
SOPHISITICATED TRAINING AND SKILLS, ESPECIALLY IN
EMERGING ‘HOT’ SECTORS LIKE TELECOMMUNICATION,
HOSPITALITY, RETAILING, BANKING, INSURANCE, BI0-
TECHNOLOGY AND FINANCIAL SERVICES. FOR EXAMPLE,
SERVICE SECTOR EMPLOYEES REQUIRE DIFFERENT SKILLS
ENVIRONMENT
THAN THOSE UTILISED IN MANUFACTURING. THEY NEED
STRONG INTERPERSONAL SKILLS AND COMMUNICATION
SKILLS, AS WELL AS THE ABILITY TO HANDLE CUSTOMER
COMPLAINTS IN A FLEXIBLE WAY.
THE IMPACT OF NEW TECHNOLOGY ON THE TOTAL
NUMBER OF JOBS AVAILABLE HAS BEEN QUITE
DEVASTATING. LOWER AND MIDDLE LEVEL POSITIONS
ARE THE WORST HIT IN THIS SCENARIO.
DOWNSIZING – NEW TECHNOLOGIES HAVE DECIMATED
MANY LOWER-END JOBS. INCRASED AUTOMATION HAS
REDUCED EMPLOYEE HEAD COUNTS EVERYWHERE. THE
PRESSURE TO REMAIN COST-EFFECTIVE HAS ALSO
COMPELLED MANY A FIRM TO GON LEAN, CUTTING DOWN
EXTRA FAT AT EACH MANAGERIAL LEVEL. THE WAVE OF
MERGER OF COMPANIES HAS OFTEN LED TO DOWNSIZE
MANPOWER.
ENVIRONMENT
COLLABORATIVE WORK – TECHNOLOGICAL CHANGE HAS
RESULTED IN HIERARCHIAL DISTINCTIONS BEING
BLURRED AND MORE COLLABORATIVE TEAMWORK WHERE
MANAGERS, TECHNICIANS, AND ANALYSTS WORK
TOGETHER ON PROJECTS. TEAM BASED INCENTIVE PLANS
HAVE ALSO MADE IT NECESSARY FOR ALL CLASSES OF
EMPLOYEES TO WORK IN CLOSE COORDINATION WITH
EACH OTHER.
TELECOMMUNICATING – THE RAPDI ADVANCE OF
TECHNOLOGY HAVE LED TO THE RELOCATION OF WORK
FROM THE OFFICE TO HOME.
INTERNET REVOLUTION – INTERNET AND INFORMATION
TECHNOLOGY HAVE ENABLED COMPANIES TO BECOME
MORE COMPETITIVE BY CUTTING COSTS. IN HR,
INTERNETS AND INTRANETS ARE BEING USED TO HANDLE
TRAINING, PERFORMANCE MANAGEMENT ETC.
ENVIRONMENT
TECHNOLOGY IS CHANGIG THE FACE OF HRM. IT IMPACTS
THE WAY JOBS ARE BEING PROCESSED WITH A VIEW TO
ACHIEVE OPERATIONAL EFFICIENCY.
IN THIS RACE TO CUT DOWN COSTS, IMPROVE
PRODUCTIVITY LEVELS AND ENHANCE CUSTOMER-
SATISFACTION – ORGANISATIONS SHOULD BE CAREFUL
TO INTRODUCE NEW TECHNOLOGIES IN A PHASED
MANNER, TAKING EMPLOYEE CONCERNS INTO ACCOUNT.
INCREASED GLOBAL COMPETITION, OF COURSE, IS
COMPELLING MOST ORGANISATIONS TO RESTRUCTURE,
INTRODUCTION TOTAL QUALITY MANAGEMENT AND BUILD
FLEXIBILITY INTO WORK SCHEDULES IN ORDER TO
REMAIN COMPETITIVE AND COST-EFFECTIVE.
TOTAL QUALITY MANAGEMENT – ACCORDING TO EDWARD
DEMING ‘QUALITY’ REFERS TO A SENSE OF
APPRECIATION SOMETHING IS BETTER THAN SOMETHING
ELSE.
ENVIRONMENT
TQM IS A WAY OF CREATING AN ORGANISATIONAL
CULTURE COMMITTED TO THE IMPROVEMENT OF SKILLS,
TEAMWORK, PROCESSES, PRODUCT AND SERVICE
QUALITY AND CUSTOMER SATISFACTION.
TQM – THE MAIN IDEAS – TQM IS BUILT AROUND FOUR
MAIN IDEAS – DO THE RIGHT FIRST TIME, BE CUSTOMER-
ORIENTED, MAKE CONTINUOUS IMPROVEMENT A WAY OF
LIFE AND BUILD TEAM WORK AND EMPOWERMENT
BE CUSTOMER CENTRED – ANTICIPATING CUSTOMER
NEEDS, LISTENING TO CUSTOMER, LEARNING HOW TO
SATISFY THE CUSTOMER AND REPONDING
APPROPRIATELY TO THE CUSTOMER.
BUILD TEAMWORK AND EMPOWERMENT – TQM IS BUILT
AROUND EMPLOYEES, THEIR NEEDS, ASPIRATIONS AND
EXPECTATIONS. IT IS EMPLOYEE DRIVEN. IT ALLOWS
EMPLOYEE TO EXPLOIT THEIR FULL POTENTIAL.
ENVIRONMENT
EMPOWERMENT TAKES PLACE WHEN EMPLOYEES ARE
PROPERLY TRAINED, PROVIDED WITH ALL RELEVANT
INFORMATION AND BEST POSSIBLE TOOLS, FULLY
INVOLVED IN KEY DECISIONS AND FARILY REWARDED
FOR RESULTS. IN ORDER TO CARRY OUT EFFECTIVELY
AND EFFICIENTLY TEAMS HAVE TO BE CREATEDM
DRAWING TALENT FROM VARIOUS DEPARTMENTS IN A
COOPERATIVE WAY.
IN THE TQM HRM APPROACH, ALL EMPLOYEES
PARTICIPATE IN THE QUALITY IMPROVEMENT PROCESSES
DILIGENTLY AND WHOLEHEARTEDLY. COMPANY
EMPLOYEES ARE TREATED AS CUSTOMERS. IMPORTANCE
IS GIVEN TO CONTINUOUS IMPROVEMENT THROUGH
‘SMALL IDEAS’ ADVANCED BY PEOPLE WORKING AT
VARIOUS LEVELS. COOPERATION AMONG ALL EMPLIYEES
IS ENCOURAGED. SUGGESTIONS ARE WELCOME FROM ALL
QUARTERS. TQM HRM IS ALL ABOUT CARING FOR PEOPLE.
HRM/PERSONNEL MGMT.
PROFESSIONALISM OF PERSONNEL MANAGEMENT IN INDIA :-
THE IMPORTANT FEATURES OF A PROFESSION ARE :-
WELL-DEFINED BODY OF KNOWLEDGE – A PROFESSION SHOULD HAVE A
SYSTEMATIC BODY OF PRINCIPLES, TECHNIQUES AND SKILLS.
FORMAL EDUCATION
MINIMUM QUALIFICATIONS
REPRESENTATIVE BODY
ETHICAL CONDUCT AND SERVICE ABOVE SELF.
HRM/PERSONNEL MGMT
PERSONNEL MANAGEMENT, OVER THE YEARS, HAS
EMERGED AS A HIGHLY RESPECTED PROFESSION IN
INDIA.
THE PRACTIONERS AND ACADEMICIANS HAVE FORMED A
PROFESSIONAL BODY “NATIONAL INSTITUTE OF
PERSONNEL MANAGEMENT” .
THE SPECIALISED KNOWLEDGE, EXPERIENCE AND
EXPERTISE IN PERSONNEL MANAGEMENT DISCIPLINE HAS
FOUND EXPRESSION IN A GROWING BODY OF LITERATURE
REPRESENTED BY BOOKS, ARTICLES, RESEARCH REPORTS
AND SURVEYS.
HOWEVER, THERE IS NO PROFESSIONAL INSTITUTION TO
REGULATE THE PROFESSION.
HOWEVER, NATIONAL INSTITUTE OF PERSONNEL
MANAGEMENT CONDUCT TWO YEAR PROGRAM WHICH IS
ACCEPTED AS AN ACADEMIC QUALIFICATION FOR THE
POST OF PERSONNEL MANAGER.
CHAPTER 2
POLICIES ETC.
NIPM (NATIONAL INSTITUTE OF PERSONNEL
MANAGEMENT) CONDUCT TRAINING
PROGRAMMES, SEMINARS, CONFERENCE IN
ORDER TO CONTRIBUTE TO ASPECTS RELATING
TO POLICY FORMULATION, STANDARDISATION
OF TERMINOLOGY. IT HAS ALSO DEVISED A
CODE OF CONDUCT FOR ITS MEMBERS.
IT IS, HOWEVER, NOT POSSIBLE FOR HR
PROFESSIONALS TO ADHERE TO STRICT CODE
OF ETHICAL BEHAVIOUR ALWAYS DUE TO
INCREASING PRESSURES FROM POLITICAL,
ECONOMIC AND SOCIAL FORCES.
CHAPTER 2
POLICIES ETC.
SUMMARY :-
PERSONNEL MANAGEMENT IS CONCERNED WITH THE
PROCUREMENT AND MAINTENANCE OF A COMPETENT
WORKFORCE AND INSPIRING EMPLOYEES INDIVIDUALLY
AND IN GROUPS TO GIVE THEIR MOST WHILE REALISING
ORGANISATIONAL GOALS.
PERSONNEL MANAGEMENT IS CONCERNED WITH TWO
SETS OF FUNCTIONS, NAMELY – MANAGERIAL FUNCTIONS
AND OPERATIVE FUNCTIONS.
PERSONNEL POLICIES ARE GUIDE TO ACTIONS. THEY
SERVE AS ROADMAPS FOR MANAGERS ON A NUMBER OF
ISSUES SUCH AS RECRUITMENT, PROMOTION ETC.
A GOOD PERSONNEL POLICY SHOULD BE EASY TO
UNDERSTAND, BASED ON FACTS, EQUITABLE,
REASONABLY FLEXIBLE, PRECISE AND RELATED TO
OBJECTIVES.
CHAPTER 2
POLICIES ETC.
THE HR MANAGERS, NOW-A-DAYS, PERFORM THREE
ROLES – ADMINISTRATIVE, OPERATIONAL AND
STRATEGIC.
HR PROFESSIONALS MUST HAVE KNOWLEDGE OF THE
ORGANISATION AND ITS OVERALL FUNCTIONING. HR
PROFESSIONALS NEED CONSIDERABLE KNOWLEDGE,
SKILLS AND EXPERITSE IN OTHER BRANCHES OF
DISCIPLINES (LIKE STATISTICS)
PERSONNEL MASNAGEMENT AS A PROFESSION HAS
REACHED RESPECTIVE HEIGHTS, OVER THE YEARS,
THANKS TO AN EVER GROWING BODY OF LITERATURE,
MUSHROOMING GROWTH OF MANAGEMENT INSTITUTIONS
AND LUCRATIVE JOB OPPORTUNITIES AVAILABLE TO
COMPETENT INDIVIDUALS.
DEFINITIONS : 1. PERSONNEL MANAGEMENT – IT IS THE
MOST EFFECTIVE USE OF PEOPLE TO ACHIEVE
ORGANISATIONAL AND INDIVIDUAL GOALS.
CHAPTER 2
POLICIES ETC.
PERSONNEL MANAGEMENT IS A WAY OF MANAGING
PEOPLE TO WORK SO THAT THEY GIVE THEIR BEST TO
THE ORGANISATION.
PERSONNEL POLICIES – A SET OF PROPOSALS AND
ACTIONS THAT ACT AS A REFERENCE POINTS FOR
MANAGERS IN THEIR DEALINGS WITH EMPLOYEES.
PERSONNEL PROCEDURES – ACTION GUIDELINES
GOVERING THE BEHAVIOUR OF EMPLOYEES AT WORK.
EMPLOYEE COUNSELLING – THE PROCESS THROUGH
WHICH EMPLOYEES ARE GIVEN ADVISE IN SOLVING WORK
RELATED AS WELL AS PERSONNEL PROBLEMS.
COMPETENCY – ABILITY TO PERFORM EXCEPTIONALLY
WELL AND INCREASE THE STOCK OF TARGETED
RESOURCES WITHIN THE FIRM.
CHAPTER 2
POLICIES ETC.
CAPABILITY – DEVELOPING THE TECHNIQUE OF UTILISING THE
AVAILABILE RESOURCES TO PERFORM AN ACTIVITY EFFICIENTLY
AND WITHIN THE STIPULATED TIME.
CORE COMPETENCE: ACTIVITY THAT THE FIRM PERFORMS,
ESPECIALLY WELL, WHEN COMPARED TO ITS COMPETITORS AND
THROUGH WHICH THE FIRM ADDS VALUE TO ITS GOODS AND
SERVICES OVER A LONG PERIOD OF TIME.
EFFECTIVENESS – THE EXTENT TO WHICH GOALS HAVE BEEN MET.
EFFICIENCY – THE DEGREE TO WHICH OPERATIONS ARE CARRIED
OUT IN AN ECONOMICAL WAY,.
ETHICS – SET OF STANDARDS OF CONDUCT AND MORAL
JUDGEMENTS THAT HELP TO DETERMINE RIGHT AND WRONG
BEHAVIOUR.
GLOBALISATION – VIEWING THE WORLD AS A SINGLE MARKET
FOR THE FIRM, THE PROCESS BY WHICH EXPANSION TAKES PLACE
ACROSS DIFFERENT REGIONS AND NATIONAL MARKETS.
CHAPTER4 HUMAN RESOURCE PLANNING
HUMAN RESOURCE PLANNING SEEKS TO PLACE THE RIGHT
EMLOYEES AT THE RIGHT TIME, SO THAT AN
ORGANISATION CAN MEET ITS OBJECTIVES.
HRP TRIES TO FORECAST PERSONNEL DEMAND, ASSESS
SUPPLY AND RECONCILE THE TWO IN A SYSTEMATIC
MANNER.
HRP IS A FORWARD LOOKING FUNCTION. IT TRIES TO
ASSESS HR REQUIREMENTS IN ADVANCE KEEPING THE
PRODUCTION SCHEDULES, MARKET FLUCTUATIONS,
DEMAND FORECASTS ETC. IN THE BACKGROUND.
THE FOCUS OF THE PLAN IS ALWAYS ON GETTING THE
RIGHT NUMBER OF QUALIFIED PEOPLE INTO THE
ORGANISATION.
HR PLANNING IS ESSENTIAL TO DETERMINE THE FUTURE
MANPOWER NEEDS IN AN ORGANISATION, OTHERWISE IT
WILL BE DIFFICULT TO GET RIGHT KIND OF PEOPLE.
CHAPTER4 HUMAN RESOURCE
PLANNING
USE EXISTING MANPOWER PRODUCTIVELY – IT SHOULD
BE POSSIBLE TO UTILISE THE EXISTING RESOURCES
MORE USEFULLY IN RELATION TO JOB REQUIREMENTS.
THIS ALSO HELPS DECREASING WAGE COSTS.
IT PROMOTES EMPLOYEES IN A SYSTEMATIC MANNER.
THE HR PLANNING ENABLES A NUMBER OF BENEFITS LIKE
THE ORGANSIATION CAN USE THE RESERVOIR OF
TALENTS.
PREPARE PEOPLE FOR FUTURE – PEOPLE CAN BE TRAINED,
MOTIVATED AND DEVELOPED IN ADVANCE AND THIS
HELPS IN MEETING FUTURE NEEDS. LIKEWISE, HR
SHORTAGES CAN ALSO BE MET COMFORTABLY ((WHEN
PEOPLE QUIT THE ORGANISATION FOR VARIOUS
REASONS) THROUGH PROPER HR PLANNING.
(IMPORTANCE OF HR)
ADVANCE PLANNING ENSURES A CONTNUOUS SUPPLY OF
PEOPLE WITH REQUISITE SKILLS WHO CAN HANDLE
CHALLENGING JOBS EASILY.
PLANNING
CUT COSTS - HR PLANNING ENABLES CUTTING
COSTS BY AVOIDING SHORTAGES/EXCESSES IN
MANPOWER SUPPLY. THE PHYSICAL FACILITIES
SUCH AS CANTEENS, QUARTERS, SCHOOL,
MEDICAL HELP ETC. CAN ALSO BE PLANNED IN
ADVANCE.
HR PLANNING PREPARES PEOPLE FOR FUTURE
CHALLENGES. THE ‘STAR EMPPLOYEES’ CAN BE
PICKED UP AND KEPT READY FOR FURTHER
PROMOTIONS WHENEVER THEY ARISE.
MULTINATIONALS HAVE THIS POLICY OF HAVING
A HOT LIST OF PROMISISNG CANDIDATES IN
ADVANCE.
PLANNING
FORMULAING HR PLANS
ORGANISATIONS OPERATE IN A CHANGING
ENVIRONMENT. HR REQUIREMENTS ALSO CHANGE
CONTINUALLY. HR DEPARTMENT SHOULD FORMULATE
PLANS FOR ITS ACTIVITIES LIKE :-
RECRUITMENT PLAN – WILL INDICATE THE NUMBER AND
TYPE OF PEOPLE REQUIRED AND WHEN THEY ARE NEEDED
SPECIAL PLANS TO RECRUIT THE RIGHT PEOPLE VIA THE
RECRUITMENT PROGRAMME.
REDEPLOYMENT PLANS - WILL INDICATE THE
PROGRAMMES FOR TRANSFERRING OR RETRAINING
EXISTING EMLOYEES FOR NEW JOBS.
REDUNDANCY PLAN - WILL INDICATE WHO IS
REDUNDANT AND PLANS FOR GOLDEN HANDSHAKE,
LAYOFF ETC.
PLANNING
TRAINING PLAN – WILL INDICATE THE NUMBER
OF TRAINEES OR APPRENTICES REQUIRED AND
THE PROGRAMME FOR RECRUITING AND
TRAINING THEM.
RETENTION PLAN – WILL INDICATE REASONS
FOR EMPLOYEE TURNOVER AND CHANGES IN
WORK REQUIREMENTS AND IMPROVEMENTS IN
WORKING CONDITIONS.
CONTROL POINTS – THE ENTIRE MANPOWER BE
SUBJECTED TO MONITORING FROM TIME TO
TIME AND UPDATE MANPOWER INVENTORY, IN
THE LIGHT OF THE CHANGING CIRCUMSTANCES
AND TO DEVELOP FUTURE PLANS.
PLANNING
EFFECTIVE HUMAN RESOURCE PLANNING – MOST INDIAN
ORGANISATIONS DO NOT HAVE ADEQUATE RECORDS ON
MANPOWER.
THERE IS LACK OF COMPUTERISED PERSONNEL INFORMATION
SYSTEM UNLIKE IN WESTERN COUNTRIES.
THERE ARE UNPREDICTABLE EXTERNAL INFLUENCES ON
MANPOWER PLANNING SUCH AS LABOUR MARKET CONDITIONS,
TECHNOLOGY, MARKET CONDITIONS, POLITICAL CHANGES
INEFFECTIVE HR PLANNING.
THE FOLLOWING GUIDELINES SHOULD BE AVOIDED TO FOR
EFFECTIVE HR PLANNING :-
THE HR PLAN SHOULD ENJOY CONSISTENT SUPPORT FROM TOP
MANAGEMENT.
EMPLOYEE SKILL INVENTORY – ORGANISATION MUST HAVE AN
UP-TO-DATE EMPLOYEE SKILLS INVENTORY SHOWING PREVIOUS
JOBS HELD, TENURE ON CURRENT JOB, MOBILITY FACTORS ETC.
HUMAN RESOURCE INFORMATION SYSTEM – TO MANAGE
EMPLOYEE SKILLS INVENTORIES, ORGANISATIONS SHOULD HAVE
COMPUTERISED HR INFORMATION SYSTEMS.
PLANNING
COORDINATION - A SEPARATE HR PLANNING DIVISION
MUST BE CREATED IN LARGE ORGANISATIONS TO
COORDINATE HR PLANNING EXERCISES AT VARIOUS
LEVELS. THE ULTIMATE OBJECTIVE MUST BE TO MAKE USE
OF THE HUMAN RESOURCES IN AN OPTIMAL MANNER BY
FILLING FUTURE VACANCIES WITH RIGHT TYPE OF
PEOPLE.
THE DOTCOM MELTDOWN IN THE LATE 1990s HAS TAUGHT
MANY BITTER LESSONS ALL OVER THE GLOBE. EARLY
RETIREMENTS HAVE BECOME THE ORDER OF THE DAY.
BIG PLANS HAVE BEEN PUT ON HOLD. MANY INDIAN
COMPANIES HAVE INVESTED HEAVY AMOUNTS IN
COMPUTERISING HR FUNCTIONS. THE EMPLOYEE DATA
BANKS AND SKILL INVENTORIES ARE BUILT UP TO FILL
VACANT POSITIONS IN A SYSTEMATIC WAY.
RECRUITMENT
HUMAN RESOURCES ARE MOST IMPORTANT
ASSET IN AN ORGANISATION.
IN ORDER TO PERFORM ACTIVITIES OF AN
ORGANISATION WE NEED TO RECRUIT PEOPLE
WITH REQUISITE SKILLS, QUALIFICATIONS AND
EXPERIENCE.
PRESENT AND FUTURE NEEDS ARE TAKEN INTO
ACCOUNT.
RECRUITMENT IS THE PROCESS OF LOCATING
AND ENCOURAGING POTENTIAL APPLICANTS TO
APPLY FOR EXISTING OR ANTICIPATED JOB
OPENINGS.
RECRUITMENT
RECRUITMENT LARGELY AIMS AT :
ATTRACTING LARGE NUMBER OF QUALIFIED APPLICANTS.
IT IS NOT EASY TO FIND AND SELECT A SUITABLE
CANDIDATE FOR JOB OPENING.
SOME BRIGHT CANDIDATES MAY BEGIN NOT IN LINE WITH
THEIR EXPECTATIONS (COMPENSATION, CHALLENGING
WORK, FLEXI WORKING CONDITIONS ETC.)
IF THE IMAGE OF ORGANISATION IS POOR.
UNATTRACTIVE JOB LIKE PLACE OF JOB (VILLAGE, LACK
OF CAREER GROWTH, GOVERNMENT JOBS NOT
PREFERRED BY MANY)
LACK OF MERIT AS BASIS FOR FURTHER GROWTH.
(RESERVATION POLICY OF GOVERNMENT).
THERE IS GREAT DEMAND FOR MANAGEMENT
GRADUATES, SOFTWARE PERSONNEL, ENGINEERING, R&D
SKILLS).
RECRUITMENT
MODERN EMPLOYEES LOOK FOR A SATISFYING CAREER IN
PLACE OF ‘JUST—A-JOB’. IF NO CAREER GROWTH
EMPLOYEES LEAVE THE WORK ORGANISATION.
SCAM AFFECTED COMPANIES ARE RED IN THE MARKET.
PEOPLE HAVE LEFT THEM.
NEW TECHNOLOGIES CREATE NEW JOBS. EXISTING JOBS
UNDERGO CHANGE. LIBERALISATION HAVE BROUGHT
RAPID CHANGES IN BANKING, ELECTRONICS, TELECOM,
SOFTWARE, PHARASEUTICALS.THERE IS CHRONIC
SHORTAGE OF PEOPLE IN THESE SECTORS. COMPANIES
WILL HAVE TO COMPETE SUCCESSFULLY FOR SMALL
NUMBER OF SUITABLE CANDIDATES AVAILABLE IN THE
MARKET.
THE POLITICAL ENVIRONMENT HAS PLAYED THE PART OF
PROVIDING “EQUAL EMPLOYMENT OPPORTUNITY” – NOT
TO DENY JOBS ON THE BASIS OF CASTE, COLOUR,
GENDER ETC.
RECRUITMENT
LEGAL ENVIRONMENT :
FACTORIES ACT PROHIBITS EMPLOYMENT OF WORMEN
(NIGHT WORK, CARRYING HEAVY LOADS, PROHIBIT
EMPLOYMENT OF CHILDREN BELOW 14 YEARS
APPRENTICE ACT, 1961 DIRECTS THE EMPLOYER TO
EMPLOY ‘APPRENTICES’ AND TRAIN THEM AT THEIR
COST.
EMPLOYMENT EXCHANGES ACT – THIS ACT DIRECT
EMPLOYERS TO NOTIFY THE VACANCIES TO THEM
BEFORE THEY ARE FILLED IN.
CONTRACT LABOUR ACT, 1970 – REGULATES THE
CONDITIONS OF SERVICE OF LABOUR AND ALSO
PROVIDES ABOLITION OF CONTRACT LABOUR IN
CERTAIN ESTABLISHMENTS.
BONDED LABOUR SYSTEM (ABOLITION ACT, 1975
ABOLISHES BONDED LABOUR OR HIS FAMILY MEMBERS.
THE CHILD LABOUR ACT, 1986 PROHIBITS EMPLOYMENT
OF CHILDREN BELONG 14 YEARS OF AGE.
SOURCES OF RECRUITMENT
SOURCES OF RECRUITMENT
(1) INTERNAL SOURCES (2) EXTERNAL SOURCES.
INTERNAL SOURCES – THOSE WORKING IN AN
ORGANISATION CONSTITUTE INTERNAL SOURCES, WHICH
INCLUDES RETRENCHED EMPLOYEES. WHEN VACANCY
ARISES SOMEONE WITHIN THE ORGANISATION IS
UPGRADED, TRANSFERRED, PROMOTED ETC.)
MERITS OF INTERNAL SOURCES (NO EXPENSE INCURRED,
THE ORGANISATION HAS KNOWLEDGE ABOUT THE
CANDIDATE, PROVIDES MOTIVATION FOR EMPLOYEES).
DEMERITS OF INTERNAL SOURCES – LIMITED CHOICE,
SACRIFICE QUALITY, SETTLE FOR LESS QUALIFIED, LACK
OF DYNAMISM IN THE WORK FORCE)
EXTERNAL SOURCES – LIE OUTSIDE THE ORGANISATION,
THE PROSPECTIVE CANDIDATES ARE (1) EMPLOYEES
WORKING IN OTHER ORGANISATIONS
STUDNETS FROM REPUTED INSTITUTIONS,
CANDIDATES REFERRED BY EMPLOYEES,
CANDIDATES FORWARDED BY PLACEMENT
AGENCIES, CANDIDATES RESPONDING TO
ADVERTISEMENTS, JOB PORTALS, UNSOLICITED
APPLICATIONS/WALK-INS ETC.)
Job Posting Organisation publishes job openings
on electronic media (television
Employers encourage employees to apply for jobs
within their Group./
Direct Methods Campus Recruitment,
Employment Exchanges, Gate Hirings and
Contractors provide personnel.
Recruitment
A Recruitment Policy indicates the
organisation’s code of conduct in
recruitment arena.
Advertise for vacancies.
Call for candidates with requisite
educational and experience criteria.
Selection
Selection is a process of picking individuals
having relevant qualifications and experience
from out of a pool of candidates.
The purpose of selection is to take suitable
candidates. The need of the job are matched with
the profile of candidates.
If suitable candidate not appointed both the
employee and organisation will suffer.
Effective selection requires a perfect fit between
the person and the job.
Screening interview is conducted by large
organisations to cut cost and time of the
company.
Selection
Application form is one of the methods to
collect information about a candidate. i.e.
personal data (address) Marital data,
Physical data (weight, health condition,
educational data (levels of formal
education, marks) Employment data (past
experience, nature of duties, designation,
salary drawn, reasons for leaving the
previous job etc., Extra curricular activities
(sports, games, NCC, prizes won, leisure
time activities) References (names of two
persons who can certify the suitability of
the applicant.
Selection
Selection Procedures :
Selection Interview - Interview is the oral
examination for employment. Interview
helps the organisation to make judgment
on interviewee’s enthusiasm, appearance,
nervousness, facial expressions etc.
Ask questions that are not covered under
the tests.
Get as much pertinent information as
possible.
Selection Interview
Types of interviews
Non directive interview The recruiter asks questions as
they come to mind. No specific format, the questions are
open ended (tell me more about what you did in the last
job like that.
Interview The directive or Structured The recruiter uses
the predetermined questions. It improves the reliability of
interview process, eliminate biases. It is criticised for being
mechanical and restricts the freedom of interviewers.
The Situational Interview The applicant is confronted
with a hypothetical incident and ask him how he or she
would respond to it.
Behavioural Interview It focus on actual work incidents
(as against hypothetical incidents) in the applicants past.
The applicant is supposed to reveal what he did in that
situation, for example how he disciplined an employee
smoking inside the factory or office premises.
Selection Interview
Stress Interview In this type of interview the
organisation attempts to find how applicants would
respond to aggressive, rude and insulting questions.
Panel Interview - The applicant meets three or four
interviewers who ask questions. The applicant may feel
stressed by questions by a number of people, though asked
one by one.
Selection techniques Intelligence Tests – This is a
mental ability test. The basic objective is to assess
alertness and quick at learning things. A number of traits
like memory, vocabulary, verbal fluency, numerical ability,
perception etc.
Aptitude Tests – This measures an individual’s potential
to learn certain skills.
Personality tests – This measures the basic aspects of an
applicant’s personality such as motivation, self-confidence,
interpersonal behaviour.
Selection Interview
Projective Tests – This test expects the candidate to
interpret problems or situations based on their own
motives, attitudes, values etc. In a Thematic Appreciation
Test, the testee is shown a picture and asked to make up a
story.
Interests Tests – This test shows the areas of work in
which a person is most interested. The basic idea is that
people are most likely to be successful in jobs they like.
This test can be used as effective selection tools.
Achievement tests ; This is designed to measure what
the applicant can do on the job currently like typing test,
stenography test – ability to take dictation and transcribe.
Simulation Tests – This test duplicates many of the
activities and problems an employee faces while at work. It
is intended to assess the potential of candidate for
managerial positions.
Selection - Interview
Assessment Centre - It incorporates group and
individual exercises. These exercises are designed to
simulate the type of work which the candidate will be
expected to do. It takes days to conduct various exercises,
evaluated by a team of trained observers, requires
separate facility, suitable for managerial jobs, usually
performed on groups of applicants at the same time.
Examples of the simulated exercises based on real-life
included in typical assessment centre are (1) in-basket (2)
the leaderless group discussion (3) Business games (4)
Individual Presentations (5) Structured Interview.
The In-basket – There is an accumulation of reports,
letters and other materials in the basket of simulated job
he is supposed to take over. The candidate is asked to take
action within a limited amount of time by writing letters,
notes, agenda for meeting etc. The results are then
reviewed by the evaluators.
The Leaderless Group Discussion – This exercise
involves groups of managerial candidates working together
on a job-related problem. The problem should be realistic,
usually in groups of five or six candidates. A leader is not
designated. Two or more assessors typically observe the
interactions within the group. This assesses the skills of
oral communication, tolerance for stress, adaptability, self-
confidence, persuasive ability.
Individual Presentation – Participants are given a limited
amount of time to plan, organise and prepare presentation
on an assigned topic. It tests the skills of oral
communication, self-confidence, persuasive abilities etc.
Business Games – Here participants solve a problem,
usually as members of two or more simulated companies
that are competing in the market. Decisions might include
how to advertise, how to penetrate the market etc.
Participants exhibit interpersonal skills, planning, leadership
Graphology tests – Graphology involves using a trained
evaluator to examine the lines, loops, curves in a person’s
handwriting to assess the person’s personality and
emotional make-up. This method is criticized.
Polygraph (lie-detector test) – The lie detector consists
of a rubber tube around the chest and sensors attached to
the fingers to record the physiological changes in the
examinee, as the examiner puts questions. It records the
fluctuations in respiration, blood pressure and perspiration
on a moving roll of graph paper. Critics, however, question
the appropriateness f this test.
Integrity test – It is designed to measure the employee
honesty. The applicant is required to answer several ‘yes’
or ‘No’. The test contain questions that repeat themselves
in some way and the evaluator then examines the
consistency in responses.
Selection Placement & Induction
Placement is the actual posting of an employee to a specific
job.
It involves assigning specific rank and responsibility to an
employee.
Placement is an important human resource activity.
Orientation or induction is the task of introducing the new
employee to the organisation and its policies.
A typical formal orientation may last for a day. During this
time, the new employee is provided with information about
the company, its history, its current position, leave rules,
rest period etc.
Handbook is given to the employees during induction.
Induction removes fears. The new comer steps into the
organisation as a stranger. He is new to people and work
environment. It assists him in knowing the job, its content
Selection – Induction
Induction informs about the people with whom the new
recruit is supposed to interact.
It is also intended to enable the new recruit to get along
with the people.
The induction program has some steps like Welcome to the
organisation, explain about the company, show the
department or location where the new recruit will work.
Give company manual to the newcomers.
Give details of the perks like medical form to be filled in,
details of the medical policy etc, give details about the
leave, holidays, importance of attendance and punctuality .
Take the new employees on a guided tour of buildings,
facilities and hand him over to his supervisor.
Selection Induction /Transfer
Content of induction
Job duties, relationship with other jobs, insurance, medical
facilities inside the company, recreation, retirement
benefits, rest time, training avenues, , probationary period,
disciplinary procedure, company polices, grievance redress
system.
Socialisation is a process through which a new recruit
begins to understand and accept the values, norms and
beliefs held by other in an organisation. Orientation helps
the new employees to interact freely with employees
working at various levels and learn behaviours that are
acceptable.
Transfer is a change in job assignment.
Purpose of transfer : to meet organisational
requirement, to satisfy employee needs, to utilise emloyees
better, to punish employees.
Transfer / Promotion
Benefits of Transfer
To improve employee skills, reduce boredom, remedy
faulty placement decisions, prepare the employee for
challenging assignments in future,
Problems of transfer – inconvenient to employees who
otherwise do not want to move, discriminatory transfers
may affect employee morale, shifting of efficient hands
may affect productivity.
Promotion refers to upward movement of an employee
from current job, that is higher in pay, responsibility.
Promotion brings in status. Promotion is different from
upgradation, which means elevating the place of the job
with minor enhancement in pay.
Transfer implies horizontal movement of an employee to
another job at the same level. There is no increase in pay,
authority or status. Hence it cannot act as motivation.
Transfer
Promotion enables employee self-development. It
enhances the employee morale.
Bases of Promotion
Merit based promotion It motivates employees to
work hard, it helps employer to retain talented
people in the organsiation. It inspires employees
to improve standards of performance.
Merit based promotion is criticised. Personal
prejudices, biases and union pressures make
come in the way of promoting the best
performer.
Also, past performance may not guarantee future
success of an employee.
Transfer Promotion
Seniority based Promotion
Seniority refers to relative strength
of service in the same organisation.
It is welcomed by Union. There is no
scope for favouritism, discrimination
and subjective judgment. Everyone
is sure of getting the same one day.
It de-motivates the young employee,
also the more capable employees.
Promotion
Promotion Policy
Seniority and Merit based promotion suffer from
certain limitations.
To be fair, a firm should institute a promotion
policy that gives consideration to seniority and
merit.
The norms for judging the merit, length of
service etc should be established beforehand.
Detailed records of service, performance should
be maintained for all employees.
The rules of promotion should be applied equally
among all employees.
Promotion
Promotion Policy should be
communicated to all employees.
The Promotion Policy should be
reviewed periodically.
Promotion if cannot be granted
should have alternative - like
Upgradation of post. In upgradation
employee gets monetary benefits
though not promotion.
Demotion
Demotion is downward movement of an
employee in the organsiational hierarchy.
It implies lower status, pay and powers.
The employee suffers emotional and financial
loss.
Causes for Demotion
A Promotee is unable to meet the challenges of
the new job.
Demotion may be used as ‘disciplinary measure’
against errant employees.
There should be enough room for review against
petitions of demotion of employee.
The procedure should be fair.
Employee Separation
Employee separation occur when employees
ceases to be members of an organisation.
The relationship of Master and Servant comes to
an end.
There are several types of separations
Resignation It is a voluntary separation.
Sometimes resignation may be forced on the
employee, on disciplinary measure.
Resignation brings disruption in the normal flow
of work. The parting of ways should be pleasant.
An exit interview is conducted by HR Department.
Retirement
Retirement comes at the end of an emloyee’s
career in an organisation.
Retirement usually results in retiree receiving
gratuity amount, encashment of earned leave,
pension etc.
Compulsory Retirement – Government retires
employees compulsorily after attaining 50 years
or above.
Voluntary Retirement – In case of voluntary
retirement the employer gives certain financial
benefits which is attractive.
Some companies give medical benefits for
employees retiring on voluntary retirement
scheme. Tax benefit is also available to retirees.
Retirement
Death … Some employees may die while in service. On
compassionate grounds, some employers give job to the
next kith and kin.
The normal separation of people from an organisation due
to resignation, retirement or death is known as ‘attrition’.
Retrenchment – is the permanent separation of an
employee’s services due to economic reasons (surplus
staff, poor demand for products, general economic slow
down, accumulation of stock. The rules (amount payable)
towards retrenchment of employees is governed by
Industrial Disputes Act, 1947.
Discharge means termination of the services of an
employee, but not necessarily as a punishment.
Dismissal is the termination of an employee as a punitive
measure (discipline) for some misconduct.
Discharge//Dismissal is a drastic measure.
Suspension
Suspension - means prohibiting an
employee from attending work and
performing normal duties assigned to him.
It is a sort of punishment for specified
period and resorted to only as a
punishment.
During suspension an employee is eligible
to get subsistence allowance under
Industrial Employment Standing Orders
Act.
If the charges are serious and proved,
suspension may lead to termination also.
DISCHARGE / DISMISSAL
Dismissal is the termination of the services of an employee
as a punitive (punishment) measure
Discharge also means termination of the services of an
employee, but not necessarily as a punishment.
Discharge / dismissal is a drastic measure seriously
impairing the potential and image of an employee. It
should be used sparingly for continued inefficiency after
several warnings. The employee should be given an
opportunity to defend himself.
There should be a provision for reviewing the case of
employee who is discharged/dismissal.
In any case, the punishment should be proportionate to the
misconduct committed by the employee.

Human Resource Management

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HUMAN RESOURCE MANAGEMENT

TRADITIONALLY, THE PERSONNEL FUNCTION CENTRED AROUND

WHEN OPPORTUNITIES FOR GROWTH AND ENHANCEMENT OF

MANAGER’S ROLE TOO HAS UNDERGONE A DRAMATIC CHANGE

HR MANAGERS ARE EXPECTED TO SUCCESSFULLY

THE LIST OF FINANCIAL AND NON-FINANCIAL DEMANDS

LIFE-STYLE CHANGES – THE LIFE-STYLE PATTERNS OF EMPLOYEES

THE STRUCUTURE OF PERSONNEL DEPARTMENT DEPENDS

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