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MANAGEMENT OF HUMAN RESOURCE:EMERGING CHALLENGES

By, Dr. AJIT KUMAR GHOSH Reader, Deparment of MBA(HR) Centre for Mnagement Studies Burdwan University ( Ex. H.O.D of Commerce B.U)

Human Resource Management


Concept
It is a new concept evolved from the earlier concept Personnel Management It considers people as resource/ assets that contribute best to the achievement of organizational goals. It subscribes to the notion that people are different from non- human resources which are inanimate, non-living, passive and become effective/ usable through the People. People need empowerment , involvement, satiation of psychological needs and a congenial culture / climate to manifest worth, efficacy and commitment to their work , and the organization. It is basically, a strategic approach to procurement, motivation and development of human resources and also conduct of relationship between the two parties (i.e. employer and employees) in an organization. Michael Armstong (1999) asserts that human resource management is a strategic and coherent approach to the management of an organizations valued assets ic people who individually and collectively contribute to the achievement of its goals.

Evolution of HR concept
Human resource concept has emerged from slave concept. this Is shown in Fig. 1 Slave concept Labour was treated as commodity. Master servant concept Workers were no more than servants.

Welfare concept Management were under impression that productivity could be Increased if some welfare measures like providing some health, benefits, rest rooms safety measures were taken. Paternalistic concept : Management tended to manifest father like attitude like do the job, I tell you to do as I look to your problems . Philanthropic Concept The concept is based on the philosophy that workers are human beings. Human Resource Concept Workers are regarded the most valuable assets of an organization and the success of an organization depends on the development of HR.

Slave concept

Master -servent concept

Welfare concept

Paternalistic concept

Philanthropic Concept

Human Resource Concept

Fig. 1 Evolution of HR Concept Evolution of HRM HRM has originated / evolved from health and happiness concept, ic major function of management was to provide help, assistance and guide to the employees for maintaining health and making them happy. The evolution of HRM is shown in Fig. 2
Health and Happiness : ( prior to 1931) Welfare (1931-1946) Personal Administration ( 1947 1959) Personnel Management ( 1960 1983) Human Resource Management (1984 onward)

Fig. 2 Evolution of HRM

1. Health and happiness : ( prior to 1931) The main main task assigned to the department was to ensure performing of some ritual activities like arranging picnic, giving farewell to the retirees, looking to personal problems, providing some health benefits etc. 2. Welfare (1931-1946) The Royal Commission of Labour submitted its report in 1931 and recommended for appointment of labour officers to deal with recruitment of labour, look into welfare aspect of the workers. The necessity to provide the welfare facilities was felt during Second World War, as workers support and cooperation was exigently required, to increase production and to keep production activities smooth to meet up necessities during war . 3. Personnel Administration ( 1947 1959) The vital labour laws like Industrial Dispute Act, 1947 the Factories Act , 1948, Employees Provident Fund and Miscellaneous Provisions Act, 1952, were enacted. To comply with various provisions of labour laws, to deal with the personal matters, welfare, health and safety problems, industrial dispute etc. Some companies opened Personnel Administration Department. The Factory Act 1948 made it compulsory to appoint Welfare Officers industrial establishments, where 500 or more workers were employed. 4. Personnel Management ( 1960 1983) Five central unions ( INTUC, AITUC, HMS, UTUC, CITU) emerged in industrial settings with different charter of demands. The National Commission on Labour submitted its report in 1969 wherein, it stressed the need for ameliorating the condition of workers through providing welfare, social security measures, ensuring equity, justice in compensation benefits, promotion. Labour laws such as the Maternity Benefits Act, 1961.The Apprentices Act, 1961, The Payment of Bonus Act, 1965 The Payment of Gratuity Act, 1972 were enacted. The main areas of personnel function ic labour welfare industrial relation and personnel administration inspired the industrial establishments to give much more authority , recognition, support, power to the personnel professionals.

5. Human Resource Management (1984 onward)

HRM approach has emerged due to change in the product market environment, arising out of stiff compitition among indigenous and multinational companies and also chenge in the organizational climate for growth and development . To face challenges, to survive, grow and develop in the market, to obtain competetive advantages the companies need to attrect the customers. Customers want quality product, quality service, prompt and immediate delivery of the product at a competitively lesser price. So customers delightment is necessity. This is possible if the workers are treted as assets, resource, members of the family, part and parcel of the company. To achieve organizational objective workers are given much more importance to contribute as world class workforce.

Perspectives of Human Resource Management


Human resource management can be viwed from different perspectives. This is shown in Fig. 3 1. Growth perspective Workers are recruited in organization to perform, to give their best to attain excellence. But they cannot manifest their peak performance even when they are technically sound to operate activities, if they are treated as a commodity, tools, cogs of machines. Workers need to be treated as assets, resource, the most important partners of the company.

2. Social perspective People in the organization have their social base formed during formative child hood through nurturing process. In the process of rearing and bringing up they developed a feeling to perform jobs by being involved, active participation, when they observed that the family activities viz. ritual performance, family festivals were performed by the family members through a process of involvement, participation to form a strong and effective family with loyal, discipline and committed members Satiation of social need can be made if workers are treated as resource, assets. 3. Psychological perspective An employee can perform well when his esteem need is satisfied. He wants recognition, status, authority, challenging job, responsibility. This can be

possible if the management treat employee as assets, essential partner of the company. 4. Organizational perspective Every organization intends to survive, grow, develop and to make a place in the market. Organization needs to face fierce, aggressive competition, confront to very difficult challenges to obtain competitive advantage. For attainment of business excellence, achievement of employees and organizations peak performance what is required is to create more focus on the customers community in respect of the product, price and delivery of the product and services, by the people who are dynamic, loyal, contented and committed to work and to the organization. All these need to consider employees as human resources, the very important part of organization.

Fig. 3 HRM From Various Perspectives

Requirement for a Reservoir of Loyal, Committed, Contented Employees : Loyal, committed, contended workforce is a necessity for an organization. for increasing production for improving quality for facing challenges for obtaining competitive advantages. for expansion and diversification of business for providing customers delightment for growth and development of organization for attaining business excellence and achieving organizational goals for providing value added activities . How to make the Reservoir of loyal, committed, contented HR ? A reservoir of loyal, committed and contented workforce can be made through the functional activities Procurement / employment Motivation / compensation Development Maintenance and / Industrial Relation 1. Procurement activities consist of HRP Recruitment Selection Placement Induction and reorientation 2. Compensation and/ Motivation activities include Wage/ salary administration Fringe benefits Welfare, employee benefits and services Social security, medical benefits 3. Development activities consist of Employee training and development Performance appraisal Potential appraisal Career planning and development Employee counseling OD 4. Maintenance and / industrial relation activities include

Discipline management Grievance Redressal Procedure Collective Bargaining Trade Unionism Employee involvement, empowerment, participation Quality circle Establishing and promoting a culture of openness, confrontation, trust, authenticity, proacting , autonomy, collaboration and experimentation. (OCTAPACE) Sound labour management relationship.

Emerging Challenges in HRM


In the changing environment arising out of lPG situation a lot of challenging issues emerge that need that need to be faced by HR professionals. The challenges in HRM include HR role in corporate community relationly HR to provide competitive advantages Need for IHRM in the wake of globalization Balancing work and family Retention of committed , contented , loyal employees Containing costs Retraining, multi skilling , IT skilling and effective utilization of HR. Enhancing QWL Cultural diversity. Contractual activities Managing personalized service Managing flexi time. Down sizing of employees strength. Employee empowerment Mechanical dyadic relationship Job sharing Sabbaticals