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HUMAN RESOURCES MANAGEMENT

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Introduction
. HRM, is the art & scienceof procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner.

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Human Resource Management:

Features
Action oriented

Pervasive force

People oriented Future oriented Development oriented Integrating mechanism Inter-disciplinary function Continuous function

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HRM mainly covers three broad areas

Personnel aspect Welfare aspect Industrial relations aspect

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HRM aims at achieving organisational goals, meet the expectations of employees; develop the knowledge, skills and abilities of employees; improve the quality of working life and manage human resources in an ethical and socially responsible manner.

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attract and retain talent

train people for challenging roles develop skills and competencies promote team spirit Good HR Practices help

develop loyalty and commitment

increase productivity and profits improve job satisfaction enhance standard of living generate employment opportunities

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P/HRM
Operative Functions
Procurement Job Analysis HR planning
Organising

Managerial functions:

Planning

Development: Training Executive development

Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services

Maintenance: Health Safety Welfare Social security

Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment

Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS

Recruitment Selection Placement

Career planning
Succession planning Human resources development strategies

Directing

Induction Internal mobility

Controlling

Trade unions
Employers associations Industrial relations

Job stress
Mentoring International HRM

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SHRM, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organisational cultures that foster innovation and flexibility. Strategic HR differs radically from traditional HR in a number of ways:

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Point of distinction Focus Role of HR Initiatives Time horizon Control Job design

Traditional HR Employee Relations Transactional change follower and respondent Slow, reactive, fragmented Short-term

Strategic HR Partnerships with internal and external customers Transformational change leader and initiator Fast, proactive and integrated Short, medium and long (as required) Organic-flexible, whatever is necessary to succeed Broad, flexible, cross-training teams

Bureaucratic-roles, policies, procedures

Tight division of labour; independence, specialisation

Key investments Accountability Responsibility for HR

Capital, products
Cost centre Staff specialists

People, knowledge Investment centre Line managers

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Concept The Commodity concept

What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept

The Goodwill concept

Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.
Cont

The Paternalistic concept/ Paternalism

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The Humanitarian concept

To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

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SCIENTIFIC MANAGEMENT F. W. TaylorFather of scientific management Did most of his work at Midvale & Bethlehem Steel Companies in Pennsylvania Studied on workers employed to load pig iron freight cars

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The concept of scientific management implies the application of science to management.

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Key Concepts of Scientific Management

Separation of planning & doing

Time and motion studies Standardization Differential piece rate system Functional foremanship Scientific selection & training Economy Bilateral mental revolution
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Before Taylors scientific management, the worker himself used to decide how to work and what instruments were necessary. Thus, he planned and did the work also. Taylor emphasized that planning function should be separate from actual performance and should be given to specialists or managers who should perform it in a scientific way.

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Time Study
It is a technique which enables the manager to ascertain standard time taken for performing a specified job. This technique is based on the study of an average worker having reasonable skill and ability. Taylor maintained that Fair days work should be determined through observations, experiment and analysis by keeping in view an average worker.

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Motion Study
In this study, movement of body and limbs required to perform a job are closely observed. The purpose of motion study is to eliminate useless motions and determine the best way of doing the job.

Motion study increases the efficiency and productivity of workers by cutting down all wasteful motions.

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Functional Foremanship
This technique was developed to improve the quality of work as single supervisor may not be an expert in all the aspects of the work. Therefore workers are to be supervised by specialist foreman.

The scheme of functional foremanship is an extension of principle of specialization at the supervisory level.

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Standardization
Standardization is a means of achieving economics of production.
It seems to ensure The line of product is restricted to predetermined type, form, design, size, weight, quality. etc There is manufacture of identical parts and components. Quality & standards have been maintained. Standard of performance are established for workers at all levels.
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Differential Piece Wage Plan

This tech of wage payment is based on efficiency of worker. The efficient workers are paid more wages than inefficient one. This system is a source of incentive to workers who try improving their efficiency in order to get more wages.

It also encourages inefficient workers to improve their performance and achieve their standards.
It leads to mass production which minimizes cost and maximizes profits.

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Scientific selection & training: Each

worker must be scientifically selected (on the basis of education, experience and aptitude) trained and developed rather than passively leaving them to train themselves.

Economy: While applying scientific

management, not only scientific and technical aspects should be considered but consideration should be given to profit and economy. Cost estimates and control techniques should be used.

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Bilateral mental revolution:

This principle states that there should be cooperation between the management and the workers. For this, a mental change in both parties is necessary. They should move from conflict towards cooperation

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Evaluation of Taylor
The idea of separating planning from doing has been criticized. Functional foreman ship meant multiplicity of command. This violates the principle of unity of command. The concept of mental revolution never materialized. The concept of time and motion and differential piecework system of wages are based on economic man assumption. In reality, man has other needs also, namely, social and psychological.

People do not work individually but are guided by group norms and expectations.
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Henri Fayol

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Human relations School

Factor that increased output, Human Relations known as the Hawthorne Studies because were conducted at Western Electrics Hawthorne plant near Chicago

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Also called neo-classical By Elton Mayo revealed the importance of social norms as determinants of individual work behavior changed the dominant view that employees were no different from any other machines

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Illumination

experiments were conducted

experiment:

Proceeded on hypothesis that there was correlation between intensity of illumination and workers output. But findings were unexpected..
The

production decreased only after light became so dim that they could not see properly. So, there was no relation between the two variables. Something more than illumination effects productivity.

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Relay assembly test room experiment:

It depicted the relation between working conditions like incentives, rest, additional physical facilities and production. Researchers set up a relay assembly test. Room.

Two girls were chosen and they were asked to choose more girls as co-workers.

Numerous changes were made. two 5 minutes rests were introduced. two 10 minutes rests were introduced. coffee and snacks were provided. number of rest periods were increased.

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cutting an hour off at the end and eliminating Saturday work.

Results implied that increase in productivity is a result of change of girls attitudes towards work and their work group.

Bank wiring experiments:

Group themselves set the production norms. The logic were: a. Fear of raising the standard. b. Protection of slower workers.

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Also conducted
Mass interview Personnel counseling Psychological testing

The most important findings of the Hawthorne studies : Organisation is a social system.

The human factor is the most important element in organisations.

Behavior and sentiments are closely related and the group influences affect individual behavior in a significant way.
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Group standards are highly effective in establishing individual worker output. Money is not so important in determining output when compared to group standards, group sentiments and security. Happy employees are productive workers.

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Systems Theory Contingency View Total Quality Management (TQM) Learning organization

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What Is a System?
A collection of parts operating interdependently to achieve a common purpose

Systems Approach
Shows that the performance of the whole is greater than the sum of the performance of its parts
Seeks to identify all parts of an organized activity and how they interact

 An interdisciplinary area of study based on the assumptions that everything is part of a larger, interdependent arrangement

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Lessons from the Systems Approach

Managers now have a greater appreciation for the importance of seeing the whole picture. Manager should not become preoccupied with one aspect of organizational management while ignoring other internal and external realities. The systems approach tries to integrate various management theories.

Globalization Workforce Diversity Entrepreneurship Managing in an E-Business World Need for Innovation and Flexibility Quality Management