Professional Documents
Culture Documents
Human Resource Management
Human Resource Management
Introduction
Functions of HRM
Basic functions that all managers perform: planning, organizing, staffing, leading, and
controlling. HR management involves the policies and practices needed to carry out the
staffing (or people) function of management.
HRM department regardless of the organization’s size must perform following human
resource management functions;
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WHAT IS HUMAN RESOURCE MANAGEMENT?
HRM plays important role in creating organizations and helping them survive. Our
world is an organizational world. We are surrounded by organizations and we
participate in them as members, employees, customers, and clients. Most of our life is
spent in organization, and they supply the goods and services on which we depend to
live. Organizations on the other hand depend on people, and without people, they
would disappear.
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Management has become an increasingly complex and demanding job for many
reasons, including foreign competition, new technology, expanding scientific
information, and rapid change. Therefore, organizations frequently ask human resource
managers for assistance in making strategic business decisions and in matching the
distinctive competencies of the firm's human resources to the mission of the
organization. Executives need assistance from the human resource department in
matters of recruitment, performance evaluation, compensation, and discipline.
The enactment of state laws has contributed enormously to the proliferation and
importance of human resource functions. The record keeping and reporting
requirements of the laws are so extensive that to comply with them, many human
resource departments must work countless hours and often must hire additional staff.
Four areas that have been influenced most by legislation include equal employment,
Compensation, safety, and labor relations. An organization's failure to comply with laws
regulating these areas can result in extremely costly back-pay awards, class action suits,
and penalties.
D. Consistency
Human resource policies help to maintain consistency and equity within an organization.
Consistency is particularly important in compensation and promotion decisions. When
managers make compensation decisions without consulting the human resource
department the salary structure tends to become very uneven and unfair promotion
decisions also may be handled unfairly when the HR department does not coordinate
the decision of individual manger.
E. Expertise
Now days there exists sophisticated personnel activities that require special expertise.
For example, researchers have developed complex procedures for making employee-
selection decisions; statistical formulas that combine interviews, test scores, and
application-blank information have replaced the subjective interviews traditionally used
in making selection decisions. Similarly, many organizations have developed
compensation systems with elaborate benefits packages to replace simple hourly pay or
piece rate incentive systems
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F. Cost of Human Resource
Human resource activities have become increasingly important because of the high cost
of personal problem. The largest single expense in most organizations is labor cost,
which is often considerably higher than the necessary because of such problems as
absenteeism tardiness and discrimination.
Qualified HR mangers utilize organization resources in such a way that helps to avoid
common personnel mistakes like the following…
Among all the resources possessed by the organizations it is only Manpower or the
Human resources that create the real difference. Because all organizations can have the
same technology, they can possess same type of financial resources, same sort of raw
material can be used to produce the goods and services but the organizational source
that can really create the difference is work force of the organization. Therefore they are
the main sources of innovation creativity in the organizations that can be used as a
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competitive advantage. In today’s competitive environment, these are the people which
can create competitive advantageous for the organizations.
The world around us is changing. No longer can we consider our share of the “good
Life” given. If we are to maintain some semblance of that life, we as individual, as
organizations, as society will have to fight actively for it an increasingly competitive
global environment. If organizations are able to manage its work force
efficiently/effectively this will be beneficial for all stakeholders (Organization, Employees
and Society).
Following are the main issues that are faced by the mangers to manage the workforce
of today’s organization for achievement of objectives.
A. To Attract People
People will be interested to join any organization if it is providing them quality working
environment, attractive benefit and opportunities to excel in future. Keeping in view the
opportunities in the market, the first issues will be to attract good people for your
organization.
B. To Develop People
C. To Motivate
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This is related to retention of workforce in organization and to take steps that can
prevent undesirable detachments of talented and motivated workers from the
organization.
What is HRM?
Objectives of HRM
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o To communicate HR policies to all employees.
o To help maintain ethical policies and behavior.
Evolution of HRM
Employees were considered as a factor of production just like land, materials &
machines.
Taylor’s scientific management stressed proper selection & training of employees
so as to maximize productivity.
Employees organized together on the basis of their interest & formed trade
unions to improve.
Employers had also began to provide schemes to workers.
Employers assured a fatherly & protective attitude towards their employees.
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The humanitarian/human relations concept
It is based on the belief that employees had certain inalienable rights as human
beings & it is the duty of the employer to protect.
Hawthorne experiments had also contributed to draw the attention of employers
in taking care of social & psychological satisfaction of employees.
Competency-Related HRM
What is Competency?
Other Definitions
Competencies are the skills & personal characteristics that contribute to superior
performance (Cripe & Mansfield, 2002).
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Competencies are the behavioral dimensions that affect job performance
(Woodruffe, 1990).
Competency is any individual characteristic that can be measured or counted
reliably and that can be shown to differentiate significantly between effective &
ineffective performance (Spencer et al, 1990).
Competencies are fundamental abilities & capabilities needed to do the job well
(Furnham, 1990).
Competencies refer to all work-related personal attributes, knowledge, skills &
values that a person draws upon to do their work well (Roberts, 1997).
Illustration
Competencies include more than the technical skills needed to carry out the job
tasks. For example, consider the job of the wait staff at a restaurant.
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Types of Competencies
Competencies can be
o generic or specific,
o threshold or performance, or
o Differentiating.
Differentiating competencies
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Definition:
Positive indicators:
Negative indicators:
Personal drive:
1. Decisive even under pressure, assertive & tough-minded in arguing his/her case,
very self-confident, shrugs off set-backs.
2. Will commit him/herself to define opinions, determined to be heard, can come
back strongly if attacked.
3. May reserve judgment where uncertain, but stands firm on important points,
aims for compromise, fairly resilient.
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4. Avoids making rapid decisions, takes an impartial coordinator role rather than
pushing own ideas.
5. Doesn’t pursue his/ her own points, goes along with the group, allows criticisms
or setbacks to deter him/her.
Describing Competencies
Typical competencies
Communication;
Achievement/result orientation;
Customer focus;
Teamwork;
Leadership;
Planning & organizing;
Commercial/business awareness;
Flexibility/adaptability;
Developing others;
Problem solving.
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Other typical categories are analytical skills, delivery of results, drive, expertise,
planning & organizing skills and strategic capabilities.
Example of a competency framework
The following is an example of a competency framework prepared for the Prince’s
Trust:
1. Achievement/result orientation:
The desire to get things done well & the ability to set & meet challenging goals,
create own measure of excellence & constantly seek ways of improving
performance.
2. Business awareness:
3. Communication:
4. Customer focus:
The exercise of unceasing care in looking after the interests of the external &
internal customers to ensure that their wants, needs & expectations are met or
exceed.
5. Developing others:
The desire & capacity to foster the development members of his or her team,
providing feedback, support, encouragement & coaching.
6. Flexibility:
The ability to adapt to & work effectively in different situations & carry out a
variety of tasks.
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7. Leadership:
The capacity to inspire individuals to give of their best to achieve a desired result
& to maintain effective relationships with individuals & the team as a whole.
8. Planning:
The ability to decide on courses of action, ensuring that the resources required to
implement the action will be available and scheduling the program of work
required to achieve a defined end-result.
9. Problem solving:
The capacity to analyze situations, diagnose problems, identify the key issues,
establish & evaluate alternative courses of action & produce a logical, practical &
acceptable solution.
10.Teamwork:
The ability to work cooperatively & flexibly with other members of the team with
a full understanding of the role to be played as a team member.
11.Knowledge- sharing:
The disposition to share knowledge fully & willingly with others in the interests of
the organization.
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What is Competency-Related HRM?
Recruitment &
Selection
Performance Competency
management framework
HRD
Reward
Mgt
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Recruitment & Selection
Performance management
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Human resource development (HRD)
Reward management
One of the most recent developments in reward management practices has been
the use of competency-related pay—relating grades & amounts of pay to the
achievement of defined levels of competence or using competency dimensions
as analytical job evaluation scheme headings.
Regardless of their industry, size or location, companies today face five critical
business challenges.
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Other Management Challenges: New Management Practices
1. New organizational forms (teams, boundary less organizations.) have come in place
of pyramid-shaped units.
2. Employees are being empowered to make more and more decisions.
a. Employees are at the top now.
b. They are equipped to take prompt decisions in line with customers’ needs.
3. Corporate layers have vanished overnight.
a. Organizations have demolished the hierarchical levels with a view to facilitate
quick communications & decisions.
4. The bases of power have changed.
Position, title, authority are no longer adequate to get the jobs done.
Instead managers have to tap sources of good ideas, strike collaborations to
implement those ideas & get results.
a sponsor,
team leader &
Internal consultant instead of viewing his position & power as unchallenged,
unique & super normal.
“The only way I see to get more productivity is by getting people involved
and excited about their jobs” (Jack Welch, GE manager).
Role of HR Manager
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The authority of the personnel manager should emanate from personnel policies
and programs and from the advantage & result of accepted specialized
knowledge.
6. Clerical role: plays this role regarding time-keeping; calculation of wages, salary,
allowances & incentive compensation; maintenance of records and the like.
7. Fire-fighting role/legal role: plays this role regarding grievance handling,
settlement of disputes, handling disciplinary cases, collective bargaining, joint
consultation, interpretation and implementation of various labor laws, contacting
lawyers regarding court cases, filing lawsuits in labor courts, industrial tribunals,
civil courts and the like.
8. Welfare role: provides and maintains (on behalf of the company) canteens,
health services, crèches, educational institutes, clubs , libraries, conveyance
facilities, co-operative credit societies, consumer stores, etc.
9. Problem solver role: diagnoses problems and determines appropriate solutions
particularly in human resources areas.
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10. Researcher role: conducts research on problems related to HR and evaluates the
impact of different HRD interventions.
11. Change agent role: expected to convince both workers and management and
take the lead in implementing changes in technology, organization, production
& installing the OD techniques.
12. Decision-making role: plays a dominant role in decision-making processes and
takes decisions regarding both major & minor issues of the organization
involving human resources.
o Strategy execution,
o Helping to move planning from the conference room to the market
place.
One of the important duties of modern manger is to get things done through
people.
To do so:
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He has to bring employees into contact with the organization in such a way
that the objectives of both groups are achieved.
He must be interested in the people, the work & the achievement of assigned
objectives.
He must balance his concerns for people and work.
It is in managing human assets that the manger’s capabilities are tested fully,
because of the following reasons:
Principles of HRM
1. Human resources are the most important assets an organization has & their
effective management is key to its success.
2. Employees should be dealt with as complete individuals, capable of discharging
their duties & responsibilities satisfactorily.
3. Employees must take pride in their work & feel that they have a ‘stake’ in the
organization.
• To this end, work should be designed to suit employee aspirations as well
as organizational needs.
4. Equal pay for equal work should guide compensation plans.
• At the same, there should be appropriate ways to meet the demands of
star performers.
5. Rewards should be earned, not given.
6. Employee involvement improves commitment & loyalty
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7. Employees should get relevant information, requisite resources and adequate
support from management.
o Trust people and treat them like adults, enthuse them by lively and
imaginative leadership, develop & demonstrate an obsession for quality,
make them feel they own the business, and your work force will respond
with total commitment.
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