uman Resource pepartment

and HR Manager

-LEARNING OBJECTIVES
After studying this chapter you.will learn:
2-1 Organisation of the Human Resource Department
2.2 Competencies (Qualities of'Human Resource Manage
2.3 Role ot Human Resource Manager,
2.4 Status of Human Resource Manager
Summary Test Questions

HE PECOPLE WHO worlk together for the accomplishment of some common

to each other
Lobjectives require a defined structure through whlch they relate
a team. Such a stzucture is
and tirough whiclh thelr efforts.can be coordinated into
calle organisation. It defines and describs the.authority and. responsibility
relationships between indicates the locatiçn ofdecision centres.
various positions. It
in the company and provides channels of communictlon anmong
the niembers. The
structure is known as organising. According to.
process of creating an organisation
Allen. "organising is the process ofidentilying and grouplng tHhe work to be performed.
relattonships
defining and delegating responsibility and authorltyrand establlshlig
sor the purpose of enablingthepeople to work most effectlvely togetherin acconplushing
objectives."
An organi_ation structure deseribes-forynal relationships which can be line
and
relationship and staff relationship. Line relatlonship exists betweçh superlor
subordinate. Line refers to those positions and elements of the organisation'whlch.
have the responsibility and authority and are accbrntüblefor the accómplishnient of
primary objectives. Staff elements are those which have responsibility and authority
for providing advice and service to, line in the attainment of objectives. Human
1. Louls A. Allen : Manugement and Organlsatlon. p. 57,
 .

2.2 Modern Human Rcsource Management

resource department is established as a staff department to advise all other
departments and the top management on human resource matters. However, within
the human resource dcpartment the relations are of line type. Human
manager as thc head of the human resource department exerclses lIne authorlty
Tesource
dver his own stníf but In relatton to other departments he ls a
staff expert expected
to provide ndvice information on human matters. Slnce hifman resource
resourcc
functlon is a part of cvcry manager's Job, the human resource depart1nent is set up
to provideadvice and assstance to line managers in performing their human resource
function. By providing Advice and Information, human resource department enables
a line manager (e.g., markctlng manager) to concentrate on techriical/gperative
responsibillties of his departnment. However, the final authorlty and responsibility
ar the management of human resource still rests with line
managers. For instance,
uman resôurce department 'may recrult and select salespersons for the marketing
departmen. But who ls to be appointed out of the persons, shortlisted by hurman
tesource department will be decided by the marketing department.
Thus, human resource månagement is a lIne management responsiblity but a
stafi funcdon.
2.1 Organisation of the Human Resource Department
in most large and even medium sized companies, a separate human resource
department is created to provide speciallsed advice and assistance in themanagement
of human resources. The human resource department may be organisd in different
ways depending upon the pölicies and requirements of the particular company.
MANAONG DIRCTOR
Director Human ResourcesS

Chiel Humad Resources Manager

Employment HRD
Compensaion Industrlal Employee Manager
Manager MAnager Manager Relations Weltare: Common
Manager Services

Planning Orlentatlon Job Advisor Welfare Securtty

Offocr Ofncer Evaluaton Industrlal OMcer OMcer
OfMcer Relatlons
Recrtment Training Counselling Ceintra
ofmccr Omcer Salary Labour Law omcer Estate
Placement Survey Qlicer OMcer
>Appralsal Ofncer LCommunlty
Omcer OfMcer
Fringe DevelopmentHR
Offtcer
Records
>Carer Benefts Omcer
Planniing Ofmcer HR Audt
OMcer
Incentlve Pay and
OfMcer Research
Officer
FiGURE 2.1 Orgahisrtion Structure of HR Department
:
 Resource Departinicnt ii
l l,
Human

structure of the HRM department varies

wldel,
The internal organisation and
naturc and siza of cnterprise, fts maiagcment phílotophy
depending upon the an employment secton within
its external environment.
lna small firm, there may be
deal with all human resource matters
the production department. This sectlon may consist of hurnan resource manager,
In a medium aized firn, HRM department may But in the large company. HRM
human rcsource officerk and à few assistants/clerks.
of several functionaries as illhustrated in Figure 2.1. Below
department may conslst
will be clerical staff.
cvey oficer there
human resources department is to formally recognize the value of the
Having a
the nced to invest in its collective growth,
wOEkorce and
'2.1HR Department in Line Organisation
to the bottom of the
in line organisations,authority flows in straight line írom top
direct command over his immediate subordinate
organisation. Every superior has
accountable to one superior, i.e., there is_unity of
{Figure 2.2). Every employee is there is strict,discipline. But
commar The authority relationships are clear and
here is lack of specialisation and Nexibility.
Chief Executive

Human Resources Manager

Wage and Welfare

Enployment Traluing Officer
Officer Oflcer Salary Officer

Clerks Clerks
Clerks Clerks
FIGURE 2.2: Line Organisatioa

2 HR Department in Functional Organisation

In functional structure, all activities in the company are grouped according to certa
Sunetions ilke production, marketing, finance and human resouree. Each func
is put under the charge of a functional specialist. Each functlonal head pertorns
speciaised.function for the enire company. Every functlonal head has function
authority over qther departnments and every employee reports to several funcio
hcads (Pigure 2.3).
Punctional organisation provides advantages of speclalisation. Every opera
executive carefullyconcentrates od htsfunctlon and gets expert adyice hnd assistea
But lines of authorlty are not clear. In the absence ofunity of command, coordinz
and.control are hanpered.

2.1.3 HR Department in Line and Staff Organisation

line
Line and staff structure was evolved to combine the advantages of bot
Organisation and functional organisation. Under it, staff positions are attacne
 ***

2.4 Modern Human Resource Managenient

Chiel Execrtive

Hunsan Resources Manager

Employment Training Wage and Welfare

Omcr OMcer Salary Officer Offirer

Clerks Clerks Clerhs Clerks

FIGURE 2.3: Punctional Organisatioa

line executives, Human r source department provides advicc and assistance on

human resource matters to all departments without undermining unity of coinmand
igure 2.4), Line and staff organisation is more suitable to large enterprises. Line
executives can avail of the expert advice and help of staff. But therecan-exeieteorrti
between line managers and staff experts.

Chief Executive

Hunman Resources Maiager

Tralning Wage and Welsare

Enployicnt - -

Oficer
'Oficer Omcer Salary Officer

Clerk Clerks Clerks Clerks

Line Relationship

Staff Relationslhip-
FIGURE 2.4: Line and Staif Orgauisatio» ing

)
Organisation A
24 HR Department in Divisionalised to divisional
resource stalf a e attached
in a divisional organisation structure, human local
divisional leved is responsible to the
officers. The hurnan resource officer at at the headd
to thhe human resource manager
divissonal manager. He is subordinate
between hunan resource oflicer and divisional nnanager, the
ofice. In case of rift
office (Pigure 2.5)
problem can be solved at the head of various
divisionalisation is that the performance
The main advaitage of facilitites.
results in duplication of stalf and
divisions can be compared. But it
 .. '.'tt

'

Human Resource Dcpartment and HR Manager

Chief Execulive

General Manager |

| Human Resourdes Mannger

Human Resource Human Resource

Hunan Resource Human Rcsourcc| Oficer (Western
Oicer iNorthern Otncer (Southeri Ofncer (Eastern
DIvision) Divlston
Divislon)
ivision
FIGURE 2.5: Divislonal Strycture.

Matrix Organisation Structure

2.1.5 NR Department in
employee Iíds two supericrs. One chain of
Sn a matrix organisation structure, every
lhead. A human resource
command is functüonal head
and the other is the project
accountable to the human resource
manager (vertical
oficer, ior instanc , is
(horizontal dinienslon). In large organisations,
and to the project manager to
dimension) functional departments are from time to tinie assigned
employees revert back to
various
employees irom of the profect, these
On completion
one or more projects.
assignmént to a project (Figure 2.6).
heir respective departments
until the next
Chiel Executlve

Gengral Manager *

Human Resources
Finance
Engineering

Profect A
Manager

ProjecbB
Manager FIGURE 2.6: Matrix Structure
cost anc
between
structure is thatbetter balance
of matrix respond.
The main advantage is verytlexibleand can
be m a i n t a l n e d ,
Matrix organísation
is avallableto
performance can Specialised knowledge
customer desires. Employees
needs and commandpyinctple.
quicdy to project violates he nlty of manager.Due to
matrix structure
all projects,
But
bosses-functlonal head, and project,
have to report to
two
teams, there are
posstbilltles of contllct.
nature of project tasks are uncertaln,
complex
heterogeneous
when organizational than one critical,
is suitable
Matrix structure
an organlsation has tacope with more
interdependent or
and highly
sector, e.g.,
functlons. projects.
2:6 ModernHuman Resource Management

TABLE 2.1l: Human Resource Management Reaponsibilties ofLine and Staft

Line Manager's Respons{bftitfes w Human Resource Department's Responsibillties

ss aamacntaanon

1 Plactng the right man qn the 'rlght Jobs.
2. Orlentation of new employces.
1. Advisingand assistingline managers in hirlng,
tratning, appralsing and fAring employees at aH
levels (staff of servlce"functlon).
2.'Adminlsterlng varlous employee beneft
prog ammes.

3. Tralnlng employees on th job. 3. Ensurtngthat the vartous labour laws are duly
complied with.
4. Developtng oooperative relattonshlps in the 4. Coordinating humai, resource acttvittes of
organisation. different departments
5. Interpreting the company's pollcles ánd
procedures.
6. Developing potentibl of every employee.
7. Controlling labour costs.
S, Developing higlu morale.
Protecting healthand safety ofemployees.

Organisation of HX Function at TATAS

At Tatas grouß, the iR functon is divided Intó three divisians, each headed by a vice
prestdent Each division is responsible for drivingHR ínitiatives at 6-7 ofthe large companies
within the Tata fold. The Arst group is responsible for corporate managementdevelopment
performance management, potenttal assessment, succession planning, group mobility.
compensation structirtng and work level deployment. The second distonds-tvoved in
the selection of top thrce levél managers. Tata Administratve 5ervices fall in this division
which is also respoustble for creatng the Tata tajent Iist consisting of top performers
withn the group and putside talent: Théthirddivision will be responsible for training. The
group exccutive office will coordinate across group companies.
The group has a centralised HR strategy. The mandate is toattract good people, retain
the better ones and'advance the Hest performers. It proposes to do this by constructing
integrated HR system in which the central backbone will be the Tata Work Level..
Source: The Economtc Tlnes.

2.1.5 Staff Role of HR Department

While organising the himan resource function, the Arst step is to list all the activitles
requlred.to-achieve the present and future activities organisation. The less
of the
activities.
important activities may be
combined important
with the closely related

The actlvities are then grouped functionwise and put under the assigmed functions.
1s under a partlcular section. The human resource
A group of related functions put of all the sections. He can have one or more deputy
manager is the overall.incharge
of sections and functions.
: managers depending on the number
line manager's responslbllity buta stafffunction. Since
I t is sald that HRM Is a with people, responsibility of
management ls getting things done through and
the Therefore, HRM is the responsiblity
managing people rests with lingmanagers.
 Human Rcsource Department and HR Manager

of every taanager and not that of the HRM department alonc. But line managers
need cxpert advice and asslstance in HRM matters. HRM department provides
specialiscd acdvice, assistance and informatlon to 1ine executives so that they
may conccntrate on their respective functilons. HRM is a staff function and it helos
all executives in haking the organisation a good place to work in. The HR
department has stafî relatlonship with other departments and it acts in an advisory

capacity
The staf role of the HRM in rclation to other departments may be analysed as
ollows
olicy Pormulation. Human resource department inltiates and formulates
new hunan resource policies and revises the existing policies. The department
etc. of
prepares programmes concerning recruitment, selection, training, appraisal,
employees in consultation with other departments. HRM department assists and

counsclsother departments in policy formulation.

. Advising. Asa specialist, the HRM departmentadvisesallother departments
in areas reiating to the management of human resources, industrial relations, etc.
The department acts in an advisory capacity offering suggestions. It serves as a
facilitates
change agent and consultant In the developrment of the total organisation. It
managerneni development and organisation development.
3Assistance and Service. HRM depart1ment provides fhformation and
inastructure. It renders secretarial and executive support services like securing
orientation
and scrutinising appfications, conducting tests and interviews, arranging
the HRM.
and training. etc. n order to provide expert advice and assistance,
tmaintains HR records. It can
department conducts launman resource research and
helptodevelop collaboration between management and trade unfon.
S ionitoring and Control. HRM department evaluates actual performance in
thelight of established human resourcepolicies and procedures' and suggests
appropriate corrective actions wherever necessary. As a controller, the department
continuaiy rviews the work of line departments concerning accldents, grievances,
in conducts
an absentecism, iabour Lurnover, disciplinary actions, etc. The department
HR audit and helps other departments in proper implenientation of human resource

poices and programmes.

2.2 Competencies (Qualities) of Human Resource Manager

In order to
The job of Human Resource Manager is quite complex and challenging.
1ties be successful, several qualities are requlred in an HRManager. Some of these qualities
less
are givenbelow:
ities. A Human Resource Manager should possess
ions. XEducationat gualifications.
urce tiefollowing qualifications
eputy Degree of recognised university.
resource
or social work or human
Postgraduate degree/dlploma in sociology or MBA with
law,
CE managementindustrial relations/labour wellare/labour
of speciálisation in HRM.

bllity Degree in law wvill be an additional/desirable Qualifications

* ** F:****
 . '"

2.8 Modern Human Rcsource Managenienl

2. Perspnal Attributes. Like any othcr.nianager, the huunman resources manager
Tquireseperat përsonal qualiies. Some of these qualities are gven below
g Intelligence. Thiis implies thc ablity to understancd: depth of perception.
ctc.
Conniunicative Ability. Command over language, abllity to Cxpress
correctly, listening skill, ability to explain and interpret policy and
progranmes, etc. are clements of communicative skil.
Decisikeness. It means analytical ability, sound judgement, íoresigt, eRc.
Humaxl Skills. Itinvolves an objective mind. empathy, ability to discrininate
between right and wrong, insight in human nature, etc.
s Teaching Skill. lt implies the ability to teach and train enployees.
(Executing Skills. Thesc refer to ability to implement policics and
programmes specdily ànd accurately.
eadership Slcills. These include physical fitness, moral courage. ability to
inspire confdence and to win cooperation, ability to create cnthusiasm,
initiative, unbiased attitude, organisational ability, passion for anonymity,
etc.
in industrial psychology, labour
3TrainingandExperioncc.aTraining
Jegislation and industrial relations is very useful for a hurman resource manager.
To
in an organisation helps him to create a pertinent approach.
some
Experience
extent. HRM is an art where practice makes one a successíuB manager.

HRM is emerging as a proícssion. A professiona!

Professional Attitudes.
approach to themanagement of hnman resources is requircd in the global
environmnent. Today's HR mnager must interclisciplinary approaclh to iuis
adopi an
job.
Qualfications, necdcd to be a successful HR professional. are an MBA degree ipreserabiy
with a specialisatiom in HR} srom a premier management institute or a post-graduate degree
in welfare from a
social, university. For a person to become a secessBai
recognised should think
In fact, one
professional, it is very inportant for him/her to be empathetic.
from the employee's point of view and be a patient listener while dealing with an employee's
successful HR professionals. The HR Manager
grievandes. Self-centred people can never be are able to trust him or her. An
HR
should unction in such a manner dhat employces
.
Manager who is not trustworthy can never do justice to his'job,
of vaious disciplnes
HRM reguires interdisciplinary approach. Knowledge
an
economics and
ikesociology, psychology, managenent, engineering. pHilosophy,human resource
developto and use such an approach. Thus. à
required
Jaw is administrative
technical (knowledge of hunan resourc¢ matters}
manager requlres
and behavióural skills.

2.3Role of Human Resource Manager

be analysed as follows:
The role of human r e s o u r c e manager may As a speclalist, lhe
Hunan r e s o u r c e manager is an expert.
As a Specialist. on varlous aspects
of human
advises the heads of dilferent
functional departments
 Human Resource Depnr tment and HR Manager 2.9
resource management, such as human resource planning. recriultment, selection,
orientation, trafning. appralsal, compensation, etc. Wiuh his counsel and suggesüons,
functional' managers can perform these fugctlons successfully, The human resóurce
PARagersäould providé information, siuggestdons and assistance in such a way that
he is considered a source of help rather than a source of threat to lIne managers. He
should earn their confdence and goodwill. Staíf assistance 1s likely to be effective
when it is wanted rather than wlhen imposcd.
AS an Information Source, THe human resource manager providés valuable
information about labour market, Jabour laws and other r¢lated arcas. Such
intormation is necessary for the formulation ofproper pollcies and procedurcs about
the
human' resources. He serves as a record kecper and rescarchcr to provide
requiredinformation.
3. As a.Change Agent. The human respurce manager can serve as an internal

change agerntto initiate and spearhead necssary imprpvements in human resource

support.for
practices. As a consultant, he can providc nccessary inírastructure ànd
and ímplementing major
organisational development. He helps in iniroducing
institutional.changes in the organisation. He is an nnovator
hjuman resourçe
in

matters.lTo be an effective consultnt, the human respurce manager should be

lamiliar with the needs and changlng environment of thç orgartisation.
in
A s ' a Controller, The human resource manager assists line managers
and programincs. His
advice
effective inmplementation of kuman resource policies of
and controlling the jprogress. As an
arm
and service is essential for nonitoring
resource manager ensures that
the hunan resourçe
the top management, the humnan
and procedures approved and adopted by the anagenent' are being
policies
the depar1nents.
consistentdy carried,out in all asked to ack
Liaison_Man..Very often the hunan resource nanager is
.A_ a departmentsdivisions of an organisation.
as a linking pin between different
The huinan resource mauager loolks alter the safety.
AS a Housekeeper.
vealth, welfare, 'etc. of employees, relatious, the lhuman tesource
Fire Fighter, In union-nmanagenment
As a trade
as a shock absorher,
He is the inanagement's descncc agalnst
manager acts
as a trouble shooter.
union activists. He acts on the
plays a yarfety of roles depending
Thus, the hunan resource manager keepcr of the organisation,
particular organisation. As the conscicnce As a
needs.of the moral and socil obllgatlons to employees.
h e reminds managers of thelr As a mediator.
physícal and mental health of employees.
he advises on and.communicating lHink
'

counseller,
He acts as a lialson
he to maintain industrial peace,
helps or spokesman-of his
between management
and labour. As the representative solver on human,.
also serves as a problem
with the public, He
organisation,he dealis and solving problems.
relations assisting line managers ín diagnosing of human
resource manager Is tlie management
Baslcally. tie Job of human than a declslon-maker. He
adviser or controller rather
resources. He is bastcally an the line executives in the:performance
of
is there-to ssist, advise,
counsel and guide resourcCE
within hls ownrdepartment, the human
human r e s o u r c e fiunction. However,
 Modern Hurman Resource Management
.2:10
,

manager performs a line funetion by directing the activitles of his subordinates and
inservice arens like factory canteen.
Inactual practice, lhuman resourcc manager Is found handling jobs ofvarlous
kinds. Due to this diversity and elástlclty of his job, people call,him by vartous
Mames, e.g., 'thlrd force' 1in industry. 8go between' among workers and management,
shockabsorber, ctc.

2.4Status of Human Resource Manageer

Over the years, the posltton of human resource manager has changed skgniicantlly!
in the esrly days of industrialisation, heiwas considered a second class officer in his
organisation. But today hunian resourde manager is treatéd as a-pHilo[opher and
specislised practitioner. A brlef description-of the evolving status of human resource
manager is gven below:
XThe Policeman. The earlest pos!tion that the human resburce manager
Occupied was that of a pollceman. Management believed that workers distke wort
d avold responsibility. Therefore,they need to be directed, controlled and coerced.
The human resouree manager was used as a watchdog to enforce ptescribed
Fegulations. When the employees agtatet, shouted slogans and held gate theetings.
a man was needed to discipline and
controlthem. The human resource manager
to handle law and order problems the industry.
was
requirecd within
2he Law Man, With the establishment of Welfare State, laws and regulations
weré enacted to protect and prormote the interests of employees.
Employers felt the
eed to study and interpret labour laws to asse[s their legal obligations, and to
represent them béfore the law enforcing agencies. In the iegal battie with workers,
uman resource manager becomean employer s advocate. He was required to issue
charge shcets and lold ínquires against workërs.

Human Resource Manager

Hnan Resource Weltare Lierical Trelghting Mrscellaneous

Role Role Role Role Roles

Advising ne Managing Keeplng records Grievance Formulatng

managers on canteens$ of time, pay, handing uman
ellective use transport, Iricentdves,
of human settling resource
cooperatlves, performnNce, disputes, pollcles and
fesources creclies and etc.
otlier
handing programmes,
employee
disctpiinar group
actions, dynamics,
welfare çollective researclu in
$chemes bargalniti8 human
Jolnt resource
consultatlon problems.
huian
engineering or
man-nmacButne
FIGURE 27: The Role of Human Resource relatlonship
Menager

T*** *****:**"
 and HR Manager 2.11
Hunan Resource Department
T h e Liaison Man. WAth thc passage of time trade unions became powerful
someone to deal and negotiate with the union. The human
Enployers requircd
resource manager was asked to take over the job. He also became a _hock absorber
and a scapegoat. He was now and thenmisunderstooet,ridierstec tburtagnirecathed
The Catering Man. Some cnlightened employers began to provlde welfare
facilities iike cantecn, creche, cte. to workers in addition to thelr igal obligations.
The human resource manager began to adminíster these services. "
5TheWelfare ManUnder Section 49 of the Pactories Act, 4 welfare officer
hasto be appointd in specific factorles. He is expected to handle labour aspects
like roctuitext, velfare aspect like housing and Industrial relattons aspect like
collective bargaining.
T h e Produetivity Man. Today, Iuman resource manager is considered an
expert in human reiations. He is expected to improve productivity byl fulfilling the
econonic, social and psychological needs and aspirations of employees. In the years
to coe, human resource nianager will have to meet the challenge of a fast changing
post-industrial socicty.

SUMMARY
1. HRM is staf funetion and a line responstbitity:
a
2. The internal organisation of human resource development vaties depending on the
nature, size and philosophy of an organisation.
3. Human resource department performs policy formulation, advising, assisting, serviciug
rnonitoring functions.
4. A successful human resource
manager requires educational. personal and professional
qualifications.
5. The naman resource
manager performs the role of conscience keeper, counselor
modiator, spokesperson, problen-solver and
6. The status' of human resource
change agent.
nmanager has changed over the years {rom that o
policeman to that of productívity man.

1. How wil you

TEST QUESTIONS
organise the HRM function in your of
a chart. organisatiou? Explain with ine nelp
2. What are the
qualitles required of a successful human resource
3. "A good liuman
resource manager?
of this statement, manager ls no
longer
just a hirer and flrer of nmet. in he light
explain thhe role of a humar resource
4. A human
resource
nianager 1s a change agent in thie
tnanager.
5.
"Management of human resource
is the
organisation."
Elucicac s no

need for
a separate human resource respousibility
of every manager
6.
Explatn the role and status of a department." Explain eritically. an
tlhe large exodus of its skilled human resource manager, in an Indian co
facing

Betting brstucss in Jndia. aud effective personnel to big aio

7. "Every manager isa H.R.
nyultinational co
Manager." Comment.
 ,' '*,

Modern Hurnan Resource Management

2.12
resources to gain
role of Human Resource Manager in developing human
8. Examine the narket.
edge for tlie organlsation in the compet!tfvc
a competitive
DU B.Com. (Hons.) 2007
of HR ulanager to perform his functions Success{ully.
9. State the competencies required B.Com. (Hons.) 2007)
IDU.
in modern ind1stry to aclhieve
Human Resource Manager to play
What roie has a
10 IDU. B.Comi. {tHons.} 2010
corporate objectives effectively?
successluí human resource manager
con1petencies are required to be a
11., What special 2009 and 2011
IDU. B.Com. {Hos.)
managerial as welB as operative functions.
"in
Resource Manager performs
12. "Te Human Resource Manager.
statement discuss the role of Human
the lighi pf this IDU, B.Com. {tlons.) 20.13
core com1pctency
and creating
HR Department in building up
13. DisCuss the role of IDU, B.Com. (Hons.) 2013)
competitive advantages.