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Note for Human Resource Management - HRM by Aditya Mohapatra

  • Human Resource Management - HRM
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Aditya Mohapatra
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HUMAN RESOURCE MANAGEMENT Human resource management is concerned with the human beings in an organization. It reflects a new outlook which views organizations is manpower as its resources and assets. Human resource is the total knowledge, abilities, skills, talents and aptitudes of an organization’s work force. In the present complex environment no business or organization can exist and grow without appropriate human resources. So human resource has become the wealth of every progressive organization. Human Resource Management (HRM) may be defined as a set of policies, practices and programmes designed to maximize both personal and organisational goals. It is the process of binding people and organizations together so that the objectives of each are achieved. NATURE/FEATURES OF HRM: HRM has the following features or nature: Part of process of management: HRM is an integral part of process of management because this is a function which is performed by all the managers throughout the organization rather than the personnel department only. Comprehensive function: HRM is concerned with managing people at work because it covers all types of people at all levels in the organization. It applies to workers, supervisors, officers, managers and other types of personnel. So it is a comprehensive function. People oriented: HRM is concerned with employees as individuals as well as groups and it is task of dealing with human relationships within an organization. It is the best fit between individuals, jobs, organizations and the environment. Based on human relations: HRM is based on human relations approach because employees are treated as assets and human capital. The employees are given a chance to develop their full potential and derive full satisfaction from work. The interests, aptitude, capacity and personality of employees should be taken into account while exploiting their potential. So HRM will help in improving human relations in the organization. Pervasive function: HRM is pervasive and inherent in all organizations such as government, armed forces, sports, etc. Every organization undertakes recruitment, selection, training, development and utilization of people and manager has to deal with persons in his department. So in big organizations a separate personnel department is established to look after the activities related to employees. Continuous process: HRM is a continuous process. It has to be carried out every day and at every time because it is concerned with the activities of personnel in the organization. Science as well as an Art: HRM is both a science as well as an art. It is an organized body of knowledge consisting of principles and techniques so it is called a science. The handling of people and getting work from them is an art. It also involves the application of theoretical knowledge to the problems of human resources. Recent origin: HRM is a recent origin as compared to other areas of management. It first emerged

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in the mid 1980’s when two models were produced by American academics. These were christened by Bonall (1992) as the matching model and the ‘Harvard framework’. Interdisciplinary: HRM involves application of knowledge drawn from several disciplines like sociology, anthropology, psychology, economics, etc. In order to deal with human problems effectively, a manager must depend upon such knowledge. PERSONNEL MANAGEMENT The primary objective of personnel management is to plan, develop, organize and control the people of the organization efficiently. This will enhance the performance and efficiency of the individuals and groups at work. For effective management of human resources, there must be a separate department or organisational set up. This is called personnel department. This department deals with the people and looks after the staffing function of the management. In every large concern, there must be a distinct personnel department. This department is headed by the personnel manager who manages and controls all the activities. But in a small concern, the personnel functions are part of the general administration. Definition: According to Prof. Jucius, Personnel administration is, “The field management which has to do with planning, organising, directing and controlling various operative functions of procuring, developing, maintaining and utilizing a labour force, such that the objectives for which the company is established are attained economically and effectively.” According to French, “Personnel Management is the recruitment, selection, development, utilization of an accommodation to human resources by organization.” There are two types of functions in personnel management. One is Managerial function and another one is operative function. Managerial Function: Management aims at getting things done through others. Managerial functions deal with planning, organising, directing, coordinating and controlling the activities of employees in an enterprise. These functions are discussed as follows: Planning: It can be defines that as the process by which managers decide the mission and objectives of the firm and take necessary steps to achieve the desired objectives. At the same time, it helps to determine the future trends in business and incorporate change and innovation into the organization from time to time. It bridges the gap between where we are and where we have to go. It consists of w, h questions like what, where, when, who and how. Organising: It is the process of assigning tasks and allocating resources to individuals to enable them to accomplish organizational goals. It is a continuous process of determining a) Which tasks are to be performed? b) How jobs can be grouped into various units c) Authority and responsibility relationship within corporate hierarchy Directing: Directing is concerned with carrying out the desired plans. It initiates the organized and planned action and ensures effective performance by subordinates towards the accomplishment of group activities. Direction is called as management in action. In other words, direction is moving to

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action and supplying motivational power to the group. Directing is a continuous process. The main activities involved in direction are leadership, Communication, motivation and supervision. Coordination: Coordination is regarded as the essence of management. It is because the manager has to channelise the different activities of the subordinates to perform all other functions of management and the process of channelising is the coordination. Controlling: The final step in the management process is to monitor the progress in achieving the organizational goal. The process is known as control. It involves: a) Comparing performance with the standard b) Finding the adverse deviations c) Developing the remedial measures to correct the adverse deviations Operative Function: These functions are related to the procuring, developing, compensating, integrating and maintaining a work-force for attaining organisational goals. These functions are also known as service functions. Various operative functions are discussed as follows: Procurement: It is concerned with obtaining and employing right kind and numbers of people require to achieve the goals of the organization. It consists of different activities such as job analysis, human resources planning, recruitment, selection, placement and induction. Development: It refers to improving knowledge, skill, abilities and values of employees so that they can perform the present and future job more effectively. It consists of different activities such as performance appraisal, training, executive development, career planning and development. Compensation: It refers to providing equitable and fair remuneration to employees. It is the employees for their contribution to the attainment of organisational objectives. right of Integration: It attempts to create a perfect match between employees, their organization and society. It involves motivating employees, providing job satisfaction, improved quality of work life, handling employee’s grievance (problems/sadness). Maintenance: It involves protecting and promoting the physical and mental health of employees. For this purpose several types of fringe benefits, social security, health and sanitation facilities are provided. RECRUITMENT Recruitment is a positive process of searching for prospective employees and stimulating them to apply for the jobs in the organization. There will be a scope for recruiting better persons only when more persons apply for jobs. In other words, recruitment stands for discovering the source from where potential employees will be selected. The scientific recruitment leads to greater productivity, better wages, higher morale, reduction in labour turnover and better reputation of the concern. Definition: According to Edwin B. Flipp, “It is a process of searching for prospective employees and stimulating them to apply for jobs in an organization.” PROCESS OF RECRUITMENT :-

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Recruitment process passes through the following stages: Searching out the sources from where the required number of persons will be available for recruitment. Developing the techniques to attract the most suitable candidates. The goodwill and reputation of an organization in the market may be one factor. The publicity about the company being a professional employer may also assist in stimulating candidates to apply. Use of good techniques to attract prospective candidates. This may include the offers of attractive salaries, proper facilities for development, perquisites, etc. The next stage in this process is to stimulate as many candidates as possible and encouraging them to apply for jobs. In order to select a best person, there is a need to attract more and more candidates to apply for the jobs. SOURCES OF RECRUITMENT :The searching out of suitable candidates and informing them about the openings in the enterprise is the most important aspect of recruitment process. The candidates may be available inside the organization as well as outside it. Basically, there are two sources of recruitment i.e. internal source and external source. Internal Sources: Best employees can be found within the organization. When a vacancy arises in the organisation, it is offered to an employee who is already on the pay-roll. When a higher post is given to an employee who deserves that, it stimulates all other employees of the organisation to work hard. The employees can be informed about such a vacancy by internal advertisement. The methods of internal sources are as follows: Transfers: It involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility and prestige. Promotions: It refers to shifting of persons to positions carrying better prestige, higher responsibilities and more salaries. A promotion does not increase the number of persons in the organisation. A person going to get higher position will vacate his present position. Present Employees: The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons, immediately known to them. Management is relieved of botheration for looking out of prospective candidates. External Sources: Every enterprise has to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needed when expansions are undertaken. External methods are as follows: Advertisement: It is a popular method of recruitment frequently used for skilled workers, clerical and higher staff. Advertisement can be given in newspaper and professional journals. These advertisements attract applicants in large number and also of highly variable quality. Preparing good advertisement is a specialized task. Employment Exchanges: Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts, etc it is often used as a source of recruitment. In certain cases it has been made obligatory for the business concerns to notify their vacancies to the employment exchange.

Lecture Notes