Definition

Human Resource Management may be defined as a set of policies, practices and programmes
designed to maximize both personal and organizational goals. It is such a process by which the
people and organization are bound together in such a way that both of them are able to achieve
their objectives.

According To FLIPPO: “Human Resource Management is the planning, organizing, directing

and controlling of the procurement, development, compensation, integration, maintenance and
reproduction of human resources to the end so that individual, organizational and societal
objectives are accomplished”.

Among the various factors of production, which are used in an organization, human resource is
the most important. This is because the efficient use of physical resources (i.e. land, machinery,
materials) ultimately depends on how the human factor is put to good use on various operations.
The most efficient machinery in the world will not produce at an optimum level unless the
people who operate the machinery know-how to make it perform at its best and most
importantly, are motivated to make their equipment produce efficiently.
If the skill and the will are properly applied, wonderful things can happen:

 Human Resources help in transforming the lifeless factors of production into useful products.

 They are capable of enlargement i.e. capable of producing an output that is greater than the sum
of inputs. Once they get inspired, even ordinary people can deliver extraordinary results.

 They can help an organization achieve results quickly, efficiently and effectively.
To extract the best out of people, therefore, the organization must provide a healthy work climate
where they can exploit their talents fully while realizing goals assigned to them. They must have
requisite skills to handle their jobs in a competent way. Above all, to get the best out of people,
they must be managed well and this requires leadership. This is where Human resource
Managers plays a crucial role in bridging gap between employee expectations and organizational
needs by adopting appropriate human resource strategies and practices.
 SIGNIFICANCE
People have always been central to organization, but their strategic importance is growing in
today’s knowledge-based industries. An organization’s success increasingly depends on the
knowledge, skills and abilities of employees, particularly as they develop core competencies that
distinguish an organization from its competitors.
At the Enterprise Level

 Good human resources practices can help in attracting and retaining the best people in the
organization. Planning alerts the company to the types of people it will need in the short, medium
and long run.

 It helps in training people for challenging roles, developing right attitudes towards the job and
the company, promoting team spirit among employees and developing loyalty and commitment
through appropriate reward schemes.
At the Individual Level
 It promotes team work and team spirit among employees.
 It offers excellent growth opportunities to people who have the potential to rise.
 It allows people to work with diligence and commitment.
At the Society Level
 Employment opportunities multiply.
 Scarce talents are put to best use. Companies that pay and treat people well always race ahead of
others and deliver excellent results.

DEFINITIONS OF JOB SATISFACTION

Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of
one’s job; an affective reaction to one’s job; and an attitude towards one’s job.
In the words of FELDMAN & ARNOLD “Job Satisfaction is the amount of overall positive
effect of feelings that individual have towards their jobs.”
“Job satisfaction is the amount of pleasure or contentment associated with a job.” It is an
individual’s emotional reaction to the job itself.
History
One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These
studies (1924-1933), primarily credited to Elton Mayo of the Harvard Business School, sought to
find the effects of various conditions (most notably illumination) on workers’ productivity.
These studies ultimately showed that novel changes in work conditions temporarily increase
productivity (called the Hawthorne Effect). It was later found that this increase resulted, not from
the new conditions, but from the knowledge of being observed. This finding provided strong
evidence that people work for purposes other than pay, which paved the way for researchers to
investigate other factors in job satisfaction.
Scientific management also had a significant impact on the study of job satisfaction. Frederick
Winslow Taylor’s 1911 book, Principles of Scientific Management, argued that there was a
single best way to perform any given work task. This book contributed to a change in industrial
production philosophies, causing a shift from skilled labor and piecework towards the more
modern approach of assembly lines and hourly wages. The initial use of scientific management
by industries greatly increased productivity because workers were forced to work at a faster
pace. However, workers became exhausted and dissatisfied, thus leaving researchers with new
questions to answer regarding job satisfaction. It should also be noted that the work of W.L.
Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylor’s work.
Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation for
job satisfaction theory. This theory explains that people seek to satisfy five specific needs in life
– physiological needs, safety needs, social needs, self-esteem needs, and self-actualization. This
model served as a good basis from which early researchers could develop job satisfaction
theories.
Job satisfaction can also be seen within the broader context of the range of issues which affect an
individual's experience of work, or their quality of working life. Job satisfaction can be
understood in terms of its relationships with other key factors, such as general well-being, stress
at work, control at work, home-work interface, and working conditions.
 DIMENSIONS OF JOB SATISFACTION

INDIVIDUAL CULTURAL ENVIRONMENTAL

FACTORS FACTORS FACTORS

SOCIAL ORGANISATIONAL
FACTORS FACTORS

Job Satisfaction is a complex concept and difficult to measure objectivity. The level of job
satisfaction is affected by a wide range of variables relating to Individual, Social, Cultural,
Organizational and Environmental.
 INDIVIDUAL FACTORS: Personality, education, intelligence and abilities, age, marital status,
orientation to work.
 SOCIAL FACTORS: Relationship with co-workers, group working and norms, opportunities
for interaction, internal relation etc.
 CULTURAL FACTORS: Attitude, beliefs and values.
 ORGANISATIONAL FACTORS: Nature and size, formal structure, personnel policies and
procedures, nature of work, technology and work organization, supervision styles of leadership.
 ENVIRONMENTAL FACTORS: Economic, social, technical and governmental influences.
These factors affect job satisfaction of certain individuals in a given set of circumstances but not
necessarily in others. Some workers may be satisfied with certain aspects of their work and
dissatisfied with other aspects. Thus overall degree of job satisfaction may differ from person to
person.