S Human Resource Management (Contd) F © Dimension Personnel Management sie ae ‘used for the b "sation, Labour is treated as a tool which | 21. Respect for employees: ie is expendable and replaceable 22. Shared interests Interests of the organisation are ' uppermost 28. Evolution Precedes HRM 24. Locus of control External §25. Organising principles Mechanistic j Top-down Centralised Industrial Relations Management (IRM) is yet another term which adds to the problem of semantics. “Industrial relations’, as the term implies, is merely concerned with employee grievances and their settle- ment, unionisation, and the like. Obviously, IRM is one wing of HRM (see Fig. 1.5). HRM: FUNCTIONS AND OBJECTIVES objective of HRM is to ensure the availability of a competent and willing oree to an organisation, Beyond this, there are other objectives, too. Specifi- objectives are four fold—societal, organisational, functional and personal 1.2). § 7 that HRMis nota but rather a means to assist the organisation Teach its primary “rete Gae nar i : ational Obie Societal Opjectve® Fig. 1.2 Objectives of HRM Societal Objectives To be ethically and socially responsible to the needs and challenges of the society fe minimising the negative impact of such demands upon the organisation. The failure of organisation “fo use their resources for the society's benefit in ethical ways may lead to restrictions. For example, the ‘Scanned with CamSesnerUnderstanding the Nature and Scope of Human Resource Management 9 soviety may limit HR decisions through laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of societal concern, earaime that it Organisational Objectives To recognise the role of HRM in bringing about has only functional value organisational effectiveness, HRM is n in it is 1ot an end in itself. It is only a means to assist and should not become ctives. Simply stated, the department exists to to expensive athe cost of the organisation it Functional Objectives To maintain the depariment’s contribution at a level ap. 92%e8. while personal propriate to the organisation's needs. Resources are wasted when HRM is either more bleetives assist «* less sophisticated to suit the organisation's demands. The department's level of ®p/yees in achieving service must be tailored to fit the organisation it serves. Peepers. soe Personal Objectives To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organisation. Personal objectives of employees must be _ Tet if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfac- tion may decline and employees may leave the organisation the organisation with its primary obje. _ seve the rest of the organisation, Functions In order to realise the objectives stated above, HRM must perform certain functions. These functions have been stated while outlining the scope of HRM. Generally, it may be stated that there is a correlation between the objectives and the functions. In other words, some functions help realise specific objectives. For example, the organisational objective is sought to be met by discharging such functions as HR planning, _Tecruitment and selection, training and development, and performance appraisal. Similarly, the personal objective is sought to be realised through such functions as remuneration, assessment, and the like. Table Supporting Functions 1. Legal compliance 2. Benefits 3. Union- management relations 1. Human resource planning 2. Employee relations 3. Selection 4, Training and development 5. Appraisal 6. Placement 7,_Assessment ‘Scanned ith CamScemerUnderstanding the Nature and Scope of Human Resource Management 5 experience, Contrasts abound in this world. Beauty is juxtaposed with ugliness, mercy with cruelty, compassion with indifference, health with disease, huappiness with misery, industriousness with laziness, affluence with poverty and as the titbits told above, mercy with cruelty. These contrasts remain so, despite the passage of time, sweeping political and economic changes, and cultural differences, Contrasts notwithstanding, one thing is certain—it is the people who make an organisation a success or allow it to be handed over to the Board for Industrial and Financial Reconstruc- tion (BIFR). Who are these so-called patrons? How to attract them? How to retain them? How to motivate them? These and other such questions need an in-depth study. The present book makes an atternpt to study these questions. NATURE OF HRM Human resource helps managers recruit, select, train and develop members for an organisation. Obvi ously, HRM is concerned with the people’s dimension in organisations. aera: an | Specifically, the following constitute the core of HRM: imelntaning poopie | 1. Organisations are not mere bricks, mortar, machineries or inventories. They are pisses E people. Iti the people who staff and manage organisations. aa 2. HRM involves the application of management functions and principles. The functions and principles are applied to acquisitioning, developing, maintaining, and remunerating employees in organisations. 3. Decisions relating to employees must be integrated. Decisions on different aspects of employees must be consistent with other human resource (HR) decisions. 4. Decisions made must influence the effectiveness of an organisation. Effectiveness of an organisation must result in betterment of services to customers in the form of high-quality products supplied at reasonable costs. 5. HRM functions are not confined to business establishments only. They are applicable to non-business organisations, too, such as education, health care, recreation, and the like." | Obviously, HRM refers to a set of programmes, functions and activities designed and carried out in order to maximise both employee as well as organisational effectiveness. SCOPE OF HRM ‘The scope of HRM is indeed vast. All major activities in the working life of a worker—from the time of his or her entry into an organisation until he or she leaves—come under the purview of HRM. Specifically, the Activities ineluded are—HR planning, job analysis and design, recruitment and selection, orientation and Placement, training and development, performance appraisal and job evaluation, employee and executive Temuneration, motivation and communication, welfare, safety and health, industrial relations (IR) and the like. For the sake of convenience, we can categorise all these functions into seven sections—{i) introduction 10 HRM, (ii) employee hiring, (iii) employee and executive remuneration, (iy) employee motivation, (8) employge maintenance, (vi) IR, and (vii) prospects of HRM (see Fig. 1.1). As the subsequent pages in this book unfold, all these functions and many more are explained in greater detail. ‘Seanad ith Camsesmer6 Human Resource Management Nature of HRM Xx Prospects of \ HRM Employee Hiring Human Resource Employee and Executive Remuneration Employee Maintenance Employee Motivation | Fig. 1.1. Scope of HRM THE SEMANTICS As in any other discipline, there is the problem of semantics in HRM, too. First, we have two. terms, namely, personnel management (PM) and HRM. Between these two terms there is a basic difference, and it is useful to understand as to what it is. HRM differs from PM both in scope and orientation. HRM views people as an important source or asset to be used for the benefit of organisations, employees and the society. It is emerging as a distinct philosophy of management aiming at policies that promote mutuality—mutual goals, mutual respect, mutual rewards and mutual respon- eevan sibilities. The belief is that policies of mutuality wll elicit commitment which, in turn, (HRD) area paret will yield both better economic performance and greater human resource development HRM. (HID), Though a distinct philosophy, HRM cannot be treated in isolation. I is being integrated into the overall strategic management of business, Further, HRM represents the latest term in the evolution of the subject. The year 1990 was a tuming point in this evolution, Personnel Administration (ASPA), the largest professional association in this fi its name to the Society for Human Resource Management (SHRM). Since ther replacing the hackneyed term ‘personnel management’ 2 PM has a limited scope and an inverted orientation. It viewed labour as a tool, the behaviour of which could be manipulated for the benefit of the organisation and replaced when it was worn-out, The personnel department itself was not treated with respect, It was filled with not-very-productive employees whose services could be spared with minimal damage to the organisation's ongoing operations, Personnel function was treated as a routine activity meant to hire new employees and to maintain personnel records, It was never considered a part ofthe strategic management of businesses. Historically, PM preceded HRM. Table 1.1 draws the line of separation between HRM and PM quite clearly, HRM is a broad Personnel (PM) and human ‘The American Society for ield of management, changed n, the expression is gradually | ] i ‘Scanned ith CamScener0 OOO LlLhl|hlhlhml!mlC re ond Scope of Human Resources Management 5 Box 1.3 Treat the Employees as Human Beings.... at IVS... The M.D. immediately contacted the ng Director hospital and informed them that the com- f the absence of pany will pay Rs.one lakh tomorrow and 30 daysand asked them to conduct the surgery on the show-cause Mr.Perumal’s wife tomorrow itself Perumal as per the Perumal as per the The M.D. ordered Mr.Bhat to arrange 7 to issue a cheque for Rs.one lakh and also said to Mr Bhat! pay Rs.10,000 to Mr.Perumal to meet inci- been absent for the dental expenses as grant. Mr.Perumal was is in MrPerumal’s surprised at the decision of the M.D. and any. Go immedi- emotionally touched his feet. The M.D. told 'shouse and reporttome _ Mr.Bhat, problems of our employees are our m. today problems, treat them as human beings. fo Mr.Perumal’s house This news spread in the entire company nz found thar Mr. Perumal has been in dis- within no time and the employees felt highly rying to mobilise Rs.one secured. The productivity level in the com- nt to his sick wife ina pany doubled in the following month itself. in Chennai. Mr.Bhat Mr Bhat then understood that his com- {r.Perumal met the M.D. of the pany follows human resources policy, but not 3.00 p.m. and appraised him of personnel policy and therefore, he should be con for his distress and absenteeism HR Manager. hospital Functions of HRM Operative Functions Managerial Functions Planning Employment F organising [Human Resources L Directing Development L Controlling [Compensation fF Human Relations [Industrial Relations ‘Recent Trends in HRM Irtegrates is cctivities towards a common objective.” Complex relationships exist between the specialised departments and the general departments as many top managers are seeking the advice of ‘he personnel manager. Thus, an organisation establishes relationships among the employees so that they can collectively contribute to the attainment of company goals. ae (iii) Directing: The next logical function after completing planning and orn ae of the plan. The basic function of personnel management at any level is ‘Scanned ith CamSeemerNature and Scope of Human Resources Management z Training and Controlled access Leaming companies development to courses Foci of attention Personnel Wide ranging cultural for interventions procedures structural and personnel strategies (Source: John Storey, “Managing Human Resources" , Beacon Books, New Delhi, 1997, p.35.) commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organisational goals is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. The personnel manager has to co-ordinate variows managers at different levels as far as personnel functions are concerned, (iv) Controlling: After planning, organising and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organisation, Controlling also involves checking, verifying and comparing of the actuals with the plans, identification of deviations if any and correcting of identified deviations. Thus, action and operation are adjusted to pre-determined plans and standards through control. Auditing training programmes, analysing labour tumover records, directing morale surveys, conducting separate interviews are some of the means for controlling the personnel ‘management function and making it effective. ; |. Operative Functions ‘The operative functions of human resources management are related to specific activities of Personnel management viz., employment, development, compensation and relations. All these functions are interacted with managerial functions. Further, these functions are to be performed in conjunction with management functions as shown in Figure 1.2 Figure HRM as a Central Finance Marketing Materials Sub-System 1. Employment: It is the first operative function of Human Resources Management (HRM). Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organisational objectives. It covers functions such s job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility. (i) Job Analysis: Itis the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes: ‘Scanned ith CamScemerHuman Resources and Personnel Manage ment * Collection of data, information, facts and men, machines and materials . * Preparation of job description, job specifications job require tions which will help in identifying the nature, levels * Providing the quides, plans and basis (ti) Human Resources Planniiny this will have an adequate nun would meet the needs of involved. It involves: * Estimation of present and future requirements and supply of human resources based on Objectives and long range plans of the organisation * Calculation of ne! Tesources, J ideas relating to various aspects of jobs including nents and employ and quantum of human 1 for job desi and for all operative functions of HRM. a process for deterrnination and as mber of qualified persons, available at proper ti the organisation and which uring that the organisation perforrning jobs which would provide satisfaction for the individuals human resources requirements based on present inventory of human * Taking steps to mould, change and develop the organisation so as to meet the future * Preparation of action programmes to get the rest of human resources from outside the organisation and to develop the hu Iman resources in terms of existing employees, (lil) Recruitment: Itis the process of searching { or prospective employees and stimulating them to apply for jobs in an organisation, It deals with: strength of existing employees in the human resources requirements * Identification of existing sources of applicants and developing thern, * Creation/identification of new sources of applicants. * Stimulating the candidates to apply for jobs in the organisation, * Striking a balance between internal and external sources, {tv) Selection: It is the process of ascertaining the ualifications, experiences, skills, knowledge etc., of an applicant with a view to appraising hiv/her suitability to a job. This function includes: Framing and developing application blanks, Creating and developing valid and reliable testing technique: Formulating interviewing techniques, Checking of references, Setting up a medical examination poli * Line manager's decision. Sending letters of appointment and rejection, Employing the selected candidates who report for duty, (v) Placement: It is the process of assigning the selected d candidate with the most suitable job in terms of ob requirements, It's matching of employee specifications with job Yequirements, This function includes: ley and procedure. * Counselling the functional managers regarding placement, * Conducting follow-up study, appraising employee performance in order to atbine employee adjustment with the job, * Correcting misplacements, if any. Hon and Orlentation: Induction and orlentatie art ranauitaned in the changed surrounding and intr: and people etc., of the organisation, ion are the techniques by which a new ‘oduced to the practices, policies, purposes Be ‘Scanned ith CamScsnerNature and Scope of Human Resources Management 9 2. Human Resources Development; the skills, knowledge, creative ability, future job and organisational require * Acquaint the employee with the cor and development, opportunities, company history, culture ete. * Introduce the employee to the and subordinates. mpany philosophy, objectives, policies, career planning Product, market share, social and community standin: People with whom he has to work such as peers, supervisors * Mould the employee attitude by orienting him to the new working and social environment Itis the process of improving, moulding and changing aptitude, attitude, values, commitment etc. based on present and ments, This function includes: (i) Performance Appraisal: I is the systematic evaluation of individ performance on the job and their potential for development, It includes luals with respect to their * Developing policies, procedures and techniques. * Helping the functional managers. * Reviewing of reports and consolidation of reports. + Evaluating the effectiveness of v (ii) Training: It is the knowledge. It includes: us programmes. process of imparting to the employees technical and operating skills and * Identification of training needs of the individuals and the company, * Developing suitable training programmes. + Helping and ad ing line management in the conduct of training programmes * Imparting of requisite job skills and knowledge to employees. * Evaluating the effectiveness of training programmes, (til) Management Development: It is the process of designing and conducting suitable executive development programmes so as to develo, includes: p the managerial and human relations skill of employees. It Identification of the areas in which management development is needed. Conducting development programmes. Motivating the executives. Designing special development programmes for promotions. Using the services of specialists, and/or ul Programmes. ising of the institutional executive development * Evaluating the effectiveness of executive development programmes. (iv) Career Planning and Development: Itis the planning of one’s career and implementation of career plans by means of education, training, ob search and acquisition of work experiences. Itincludes intemal and external mobility. (v) Internal Mobility: It includes vertical and horizontal movement of an employee within an Organisation. It consists of transfer, promotion and demotion, (vi) Transfer; Itis the process of placing employees in the same level jobs where they can be utilised Tore effectively in consistence with their potentialities and needs of the employees and the organisation. Italso deals with: * Developing transfer policies and procedures, * Guiding employees and line management on transfers, * Evaluating the execution of transfer policies and procedures. ‘Scanned ith CamScener10 Human Resources and Personnel Management (ci) Promotion: It deals with upward reassignment given to an employee in occupy higher position which commands better status and/or pay keeping in of the employees and the job requirements. the organisation ty view the hurns tevmurces * This function covers the formulating of equitable, fair and consistent promotion Policies and procedures. * Advising line management and employees on matters relating to promotions uating the execution of promotion policies and procedures. {oit) Demotion: It deals with downward reassignment to an employee in the organisation * Develop equitable, fair and consistent demotion policies and procedures * Advising line managers on matters relating to demotions. * Oversee the implementations of demotion policies and procedures (ix) Change and Organisation Development: Change implies the creation of imbalances in _ existent pattern or situation. Organisation development is a planned Organisational effectiveness and health through m culture and systems of the organisation using kn sciences the process designed to improve ‘odifications in individual and group behavious rowledge and technology of applied behavioural 3. Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc : "7 (0) Job Evaluation: It is the process of det a * Select suitable job evaluation techni * Classify jobs into various categories, * Determining relative value of jobs in various categories, (i) Wage and Salary Administration: This is th wage and salary programme. It covers * Conducting wage and salary survey * Determining wage and salary rates based on various factors, * Administering wage and salary programmes * Evaluating its effectiveness, (it) Incentives: It is the process of formulati financial incentives in addition termining relative worth of jobs. iques. @ Process of developing and operating a suitable Ing, administering and reviewing the schemes of "0 regular payment of wages and salary. It includes #} * Formulating incentive Payment schemes, 2 * Helping functional managers on the operation. * Review them Periodically to evaluate effectiveness, {te} Bonus: It includes payment of statutory bonus according lo the Payment of Bonus Act, 1965, and its latest amendments ce nest et Bon * Disablement benefit. t + Housing facilities. + Educational facilities to employees and children * Canteen facilities. Recreational facilities. ‘Scanned wth CamcannerNature and Scope of Human Resource Management 11 + Conveyan facilities, + Credit facilities + Legal clinics + Medical, maternity and welfare facilities + Company stores, (vi) Social Security Measures: Managements provide social security to their employees in addition to the fringe benefits. These measures include: + Workmen’s compensation to those workers (or their dependents) who involve in accidents. *+ Maternity benefits to women employees. * Sickness benefits and medical benefits, *+ Disablement benefits/allowance. + Dependent benefits * Retirement benefits like provident fund, pension, gratuity etc. 4. Human Relations: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management. It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situations in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. It includes: + Understanding and applying the models of perception, personality, learning, intra and inter personal relations, intra and inter group relations, + Motivating the employees Boosting employee morale. Developing the communication skills. ‘+ Developing the leadership skill 7 Redressing employee grievances properly and in time by means of a well formulated grievance procedure. + Handling disciplinary cases by means of an established disciplinary procedure. * Counselling the employees in solving their personal, family and work problems and releasing their stress, strain and tensions. Providing a comfortable work environment by reducing fatigue, monotony, boredom and industrial accidents. ~Improving quality of work life of employees through participation and other means. 5. Industrial Relations: Industrial relations refers to the study of relations among employees, employer, government and trade unions. Industrial relations include: * Indian labour market + Trade unionism Collective bargaining Industrial conflicts Workers’ participation in management and Quality circles. ‘Scanned ith CamScener12 Human Resources and Personnel Management been advancing at a fast rate 6. Recent Trends in HRM: Human Resou The recent trends in HRM include: * Quality of worklife * Total quality in human resources * HR accounting, audit and resea: * Recent techniques of HRM. me NATURE OF HUMAN RESOURCES People in any organisation manifest ther through group interactions. When individu: technical skills, knowledge etc., but attitude, values etc. Therefore, empl ment of not only technical skills but perception, desires, motives, ation does mean manage. ces. (See Box 1.3) ee management 0 other factors The CEO of MICO says: Employees our company are highly skilled, talentedand don't you speak jreel 63 you speck wi knowledgeable. Butthe value system of most your family members?” they reply that ofthemis suck thatthey donotspeakuntilwe suggestion offered in the company without repeatedly request them to offer their ideas. Just like paying the money without Their motive is only to offer @ suggestion buying. Complex Dynamism AA close observation of employees reveals that they are complex beings. ie. (i economic, A) Physiological, (ii) peychological, fu) sociological and (v) ethical tere . The proportions o: intensities of these dimensions of the human factor in employment may differ from one situation 0 ae ee the fact remains that these are the bas aman factor in ‘organisations. Undoubtedly, the physical and mental atmibutes ofhy Sees 1 performance and productivity. Pertinentto organisational A Social System Human resources management is relatively new and developed as a (concemed with the management of human resources). In is simone is ices). In its simple terms, pers: anitae ovceas it human relaonshipe, moulding and developing irene Tanagenent § atude towards the job and organisational requiremens. The pormoree manager involves himself in administering a social system. In this process, the t the economic satisfaction ft areasonable livelihood, the social satisfaction of working together avn os az king together as mem indi job satisfaction of a worker are attained. ‘asmembers of a group and individu! A Challenging Task anresources are hight Part of management developments increasing educational sandards et. further compo ee Oe the perso" manager. Hence, the modem personnel manager should equip himecif gy oo pa of disciplines, viz, Economics, Commerce, Management, Sociology, Psychology, Engineering, Techno ogy and Law. ad _ = — ‘Scanned ith CamSeanerq gna \grt ae \ synigeded Kor, B \ The Fombrun model ae oF I: £ mental and contingengy factors that impact HR functions. Nevertheless, the model deserves appreciation for 18 Human Resource Management 3. They provide a characterisation of HRM that establishes variables and relationship to be researched, 4. They serve as a heuristic device—something to help us discover and understand the world for explain. ing the nature and significance of key HR practices The four HR models are: (i) The Fombrun, (ii) The Harvard, (iii) The Guest, and (iv) The Warwick. The Fombrun, Tichy and Devanna Model Being the first model (dates back to 1984), this emphasises just four functions and their interrelatedness. The four functions are: selection, appraisal, development and rewards. These four constituent components of HRM are expected to contribute to organisational effective- ness as shown in Fig. 1.6. Human resource | evelopment t Y (Organisational Appraisal [7 etectiveness ; y Pevarts H yosty Agedds Fig. 1.6 The Fombrun Modelo HRM, ~> Med ate eat isi iplete as it focuses on only four functions of HRM and ignores all e1 \ being the first and has set stage for other theories to emerge. It is also a simple model that serves as a heuristic framework for explaining the nature and significance of the key HR activities. The model also deserves appreciation for emphasising interelationship among the four activities and their collective impact on organisational effectiveness. / Give Jonetiy to Qt Beet The Harvard Model: The Harvard model claims to be compreheshe in as much as it seeks to comprise six critical components of HRM. The dimensions included in the’model are: stakeholders interests, situ. ational factors, HRM policy choices, HR outcomes and long-tergh consequences (See. Fig, 1.7) The stakeholders interests recognise the importance of “ade offs’ between the interests of the owners and those of employees. Trade offs also exists among other interest groups. But this isthe challenge of HR manager. He or she needs to balance the interests of all stakeholders. The situational factors influence management's choice of HR strategy. The contingent factors included in the model include work force characteristics, management philosophy, labour market, task, technology, and laws and social values. These situational factors do influence HR strategy and their inclusion in the model is a welcome thing. HRM policy choices emphasise the management's decisions and actions in terms of HRM can be fully appreciated only if itis recognised that they result from an interaction between constraints and choices, The model depicts management as a real actor, capable of making at least some degree of unique contibation within environmental and organsiational parameters and of influencing those parameters themselves over ae time: Organisational commitment, employee competence, congruence and cost effectiveness constitute HRM os , The assumption here is that employees have talents which are rarely exploited for organisational growth and that they are willing to grow with the organisation if a Participative environment is available. ‘Scanned ith CamScenerUnderstanding the 1 jature and Scope of Human Resource Management Stakeholder interests Shareholders _ Managoment : Government Communit 7” 7 “3 Ma || Human resource Human resource { Loman ‘management outcomes: consequences: policy choices: Commitment Individual well-being Employee influence |_,| Compotonce |» Organisational = Human resourco Congruence | ettectiveress Situational factors. OO Coit eHlectivenoss | | Societal wei bieng Worktorce characteristics systems | seme grengara* | [eka 4 | conditions t Management philosophy Labour market Unions -=—__—___ ‘Task technology + sa =? Fook Te iendy Laws and societal values Seth ww 'O"" : , Fig. 1.7. The Harvard Model of Human Resource Management sational effectiveness, and ¢ganisational effectiveness The long-term consequences include societal well-bei welfare, There is obvious linkage among the three. Employee welfare Jeads t0 of and efficacy of all organisations contributes to societal well-being, ~The feedback loop is the sixth component of the Harvard model. As was stated: influence HRM policy and choices, and are influenced by long-term consequences. Similarly, stakeholders interests influence HRM policy choices, and inturn, are impacted by long-term outcomes (See Fig. 1.7) The Guest Model Yet another HRM model was developed by David Gusst in 1997 and claims to be ‘The details will justify the claim. This model claims that the HR manager which demand certain practices and when executed, will result in , performance related and financial (See Fig. 1.8) above, situational factors much superior to other models. has specific strategies to begin with, ‘outcomes. These outcomes include behaviout Behavioural Outcomes — Motivation Financial |Co-operation Outcomes ‘Organisational >} ae citizenship a Fig. 1.8 The Guest Model of HRM ‘The model emphasises the logical sequence of six components (as shown in Fig. 1.8): HR strategy, HR Practices, HR outcomes, behaviour! outcomes, performance results and financial consequences. Looking inversely, financial results depend on employee performance, which in turn is the result of action oriented ‘employee behaviours. Behavioural outcomes are the result of employee commitment, quality and flexibility, a ‘Scanned ith CamSceersures Management Which, i tain, are impacted by UR practices, HR prictices need to be in tune with HR strategies which are invariably aligned! with organisational styategies (Read Chapter 3 for more details) ‘The claity of the Guest model that itis supetior to others is partly justified in the sense that it clearly taps out the tickl of HIRM and dtineates the inputs and outcomes. How HRM can contribute to organisational effectiveness ix clearly shown in the model, But the dynamics of people management are so complex that no ‘wvoxtet netting the Guest mode!) ean capture them comprehensively. Outer context Socio-economic Technical y Poiitical-ogal Competitive Inner context Culture Structure Polileseadorship Taskctechnology Business outputs Business strategy content HRM context Objectives Rol Predict mahot Detnion Strategy and ‘Organisation tactics HR outputs Work systoms Roward systoms Employee relations Fig. 1.9 The Warwick Model of Human Resource Ma (Sone: Figures 1.7 and 19 are hve on Hiean Resraee Managenent by John Bratton and Jeffiey Gold) The Warwick Model This model was developed by two researchers, Hi i {University gf Wanvick (henee the name Warwick model), Like other models, the Warwick proposition seat five elements: (see also Fig, 1.9 # Outer context (macro environmental forces) >) “TORR Baipery OD Whal not gentile Sab ‘@ Inner context (firm specitic or milero environmental forces}. XK © Business stritegy content / ‘Scanned ith CamScenneri Understanding the Nature and Soope of Human Renouros Management 21 HRM context # HRM content The Warwick model takes cognisance of business stratepy and HR practices (av in the Guest model), the extemal and internal context (unlike the Guest model), in which there activities take place, and the process by which such changes take place, including intersections between changes in both context and content, The at it identifies and classifies important environmental influences on HRM. It maps strength of the model is t the connection between the the comtext."? Obviously Tontents will achieve performance und growth, ? | pemeasarceae? Looking at the four models described in this section, what similarities and dissimilarities do you notice among them? What assumptions do they make? What lessons do they carry to practising HR managers and students of HRM? A Model for this Book We follow the model shown in Fig, 1.10 for the purpose of this book, The HR manager needs to evolve his or her own strategies that should be aligned with firm's strategies, In playing this role, the HR professional works to be a strategic pa cess of business s chapter 3 in this book is devoted to a discussion on HR strategic man: incr, helping to ensure the st ment, —{ Environment (Ch.2)_ | | __| Employoos HH mPractces Orgeisatlona uAstatess | [cnviaires,| — | wanwatatn Clnetvoness ch.) 2720) (ont, 28) (6n.26) Fig. 1.10 HRM Modo! HR strategies should result in certain practices that include: Human Resource Planning (Ch. 4) Analysing Work and Designing Jobs (Ch. 5) Recruiting Human Resources (Ch. 6) Selecting Human Resources (Ch. 7) Inducting New Hires (Ch. 8) Training, Development and C Appraising and Managing Performance (Ch. Managing Basic Remuneration (Ch. 11-14) Communicating with Employees (Ch. 18) Managing Betterment Work (Ch. 19) Ensuring Safe and Healthy Environment (Ch. 20) Managing Separations and Rightsizing (Ch. 21) ‘greet Management (Ch. 9) 10) ‘Scanned ith CamScemerHuman Hesources and Personnel Management time to time, However, the Aualifications preseribed by various organisations incbude MEA vet ces Management Spectalisalion, MILIEM, MA URZPI), MPM and POD PM mak EVOLUTION AND DEVELOPMENT OF HRM The history of development of personnel management in India is comparatively of rece Kautilva had dealt with some of the important aspects of human revsurces managerne: Arthasasta,” written in 400 B.C, Government in those days adopted the tect Suggested by Kautilya, In lls modern sense, it has developed only since indeperrsers importance of labour officers was recognised as early os 1929, the appointenens labour and welfare problems gained momentum only after the enactment of ‘Section 49 of the Act requited the appointment of Wellare Officers in corner 800 workers, At the beginning, Government was concerned only with limited ase The earliest labour legislation in India dealt with certain aspects of Indian labourers (Pe! Recruitment, Forwarding and Employment) sent to various British colonies in 1890. Imports of evolution of HRM are presented in Exhibit 1.3. Exhtbit 1.3 EVOLUTION OF HRM IN INDIA Resoun Period Development Outlook Emphasis Stotus Status Beginning Pragmatism of Statutory, weltare capitalists paternalism Struggling for ‘Technical, Introduction of recognition legalistic Techniques Achieving Professional, Regulatory, conforming, imposition of Sophistication Legalistic, Standards on other Promising impersonal functions Philosophical Human values, productivity through (Sources: C.S. Venkataratnam and B K. Srivastava, Personnel Mc lanagement and Human Resources, Tata Me-Grow Hil, New Dethi, 1991, p.5) The important aspects of development of human resources management in India are in the Exhibit 1.4 ne RECENT DEVELOPMENTS Recent developments in the area of human resources management include: Treating the employees as economic, social, psychological and spiritual men and ‘Scanned ith CamSeenerE=-_ Eo nt Ss Ow Pesan Nature and Scope of Human Resources Management 25 However, responsibility for the management of personnel still rests with line managers. ‘Thus, personnel management is a line management responsibilty but a staff function (See Box 1.8). Box 1.8 HR Manager in Satyam is a Spectalist Human Resources Manager, Satyam Employee Retention Computers, proudly says, he performs more Though all the software managers man grtical functions of: age their team members, the HR Managers + Resources Match perform more critical and specialist functions + Resources Allocation of HRM. + Employee Development & ROLE OF HUMAN RESOURCES MANAGER Human Resources Manager plays a vital role in the modern organisation. He plays various strategic roles at different levels in the organisation. The roles of the HR Manager include roles of conscience, of 2 counsellor, a mediator, a company spokesman, a problem solver and a change agent. (i) The Conscience Role: The conscience role is that of a humanitarian who reminds the management of its morals and obligations to its employees (ii) The Counsellor: Employees who are dissatisfied with the present job approach the personnel manager for counselling. In addition, employees facing various problems like marital, health, children education/mariage, mental, physical and career also approach the personnel managers. The Personnel Manager counsels and consults the employees and offers suggestions to solve /overcome the problems of the employees. (ii) The Mediator: As a mediator, the personnel manager plays the role of a peace-maker, He setles the disputes between employees and the management. He acts as a liaison and communication link between both of them. (iv) The Spokesman: He is a frequent spokesman for or representative of the company. (v) The Problem-solver: He acts as a problem solver with respect to the issues that involve human resources management and overall long range organisational planning, (vi) The Change Agent: He acts as a change agent and introduces changes in various existing Programmes. Healso performs various other roles like welfare role, clerical role and fire-fighting role as indicated inFig 1.8. As a Specialist The personnel department has staff relationship with other departments/managers in the total organisation. The personnel department is responsible for advising management from the Managing Director to the lowest line supervisor in all areas relating to personnel management and incustial relations, Personnel department also performs various functions of employment, training and develop: ment, Itrepresents the management in many of the relationships that affect the organisation asa whole, Itis also responsible for representing various workers’ problems to the management Personnel department generally acts in an advisory capacity; it provides informati Suggestions and is not responsible for the end results. The personnel manager must exercise control very ‘actfully in order to win the confidence and co-operation of all ine managers. He has to persuade line n, offers ‘Scanned ith CamScsner