Human Capital Management Unit 1|Human Resource Management

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UNIT 1: 

HUMAN RESOURCE MANAGEMENT 

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Human Resources Management

What is the meaning of HRM

HRM  is a process by which efficient and effective use of human resource is made to achieve the goals of an organisation.

HRM is the study of activities regarding people working in an organisation.

Define HRM

HRM is defined as the management function concerned with procurement,development ,compensation,integration and maintenance of the personnel of an organisation for the purpose of contributing towards the accomplishments of the objectives of the organisation.

What are the characteristics or nature  of HRM

• It is a pervasive function as it is practised at all levels of management and is applicable to  to all kinds of organisations
• It is result oriented as it aims at achieving organisational goals through optimum utilisation of human resources
• It is a continuous process as it must keep on working towards the organisational goals as long as the organisation exists.
• It is people-centric  as it is concerned mainly with the human resources of an organisation
• It uses a strategical and tactful approach at different times and situations as it deals with people who are distinct from one another.
• It ensures integrative action by focusing on maintaining employee relations  at different levels and addressing the issues and problems of employees.

What are the objectives of HRM

1. Human Capital assisting the organisation in obtaining the right number and type of employees to fulfil its goals
2. Developing organisational atmosphere where employees are encouraged to develop
3. Helps to maintain performance standards and increase productivity
4. Helps to maintain harmony between employee and employer
5. Helps to create a safe and healthy work environment
6. Helps to provide the organisation with well trained and well maintained employees
7. Helps to communicate HR policies to all employees
8. Helps to develop and maintain quality of work life

Importance of HRM or significance of HRM

• To fulfil the human resource requirement by filling the gap between vacancies in the organisation with suitable candidates
• It concentrates on employee maintenance and retention.
• It improves the quality of employee's work life by focusing on continuous enhancement of job facilities
• It resolves internal conflicts among employees and with the  management to ensure a cooperative and sound working environment.
• It helps the organisation to achieve its goals and objectives by directing employees effort towards organisational goals to accomplish the goals of the organisation.
• It helps to develop the team spirit and feeling of belonging among employees
• It works for the welfare,safety and security and satisfaction of the employee as well as the organisation

Functions of HRM

The human resource management has two major functions:

(I)Managerial functions

 (II)Operative functions

I)Managerial functions

1. .Planning 

• By human resource planning the number and type of employees needed  to accomplish organisational goals can be determined.
• The basic human resource planning strategy is staffing and employee development

      2.Organising 

• In an organisation it is important for the HR manager to determine the course of action to be taken and assign its tasks among the  employees.
• The task is assigned to every employee according to the skill and the activities  are integrated towards the common goal of the firm. 

      3.Directing 

This is the core function of any management process and direction means the proper execution of the plans taken by the human resource management.

Proper direction is necessary for achieving the goals of the organisation by ensuring proper and effective cooperation of the employees.

The management has to motivate,lead and direct the employees at any level to achieve the goals of the organisation.    

      

      4.Controlling 

It is the last managerial function after the completion of planning organising,and direction.
It involves the verification of the performance to check whether is done as per the directions and plans of the organisation.
It will identify whether any deviation has occurred from the plan 
It also involves analysis of labour turnover records,auditing training programs,directing morale surveys,interviewing employees separately which are all ways of controlling the employees management functions.

II)Operative function includes

1. Employment

It involves recruitment,selection and placement .
It is the process which bring the prospective candidates to the employer.
The HR manager makes an estimate of the manpower required in the organisation by using the workforce and workload analysis.
Then accordingly he selects the right number of people and assigns them the right job.

    2.Human Resource Development

It involve allowing the employees to acquire new skills and knowledge for better performance and productivity. 
Training and development prepares the employees for better handling of responsibilities
This up gradation and development of  of the existing employees will help the company to develop their workers cope  with the rapidly changing environment.

      3.Compensation

 it is the method for payment for the work done by the employee in any company.
A company should provide the employees with proper and adequate compensation according to their skill and expertise.
They should also provide the employees with incentives ,bonus and other benefits related with the job.

   4.Human Relations

It is concerned with the the policies and interactions among employees and create a sense of relationship between workers management and trade unions.

   5.Industrial Relations

Relations of employees in an industry is important and is now fulfilled by the HR mangers.
He helps in consultation and settlement of disputes and usually has a knowledge of various labour enactments.

Human Resources Manager – Duties and Responsibilities, 

The following are the duties  and responsibilities of an HR manager

Human resource planning
To develop a thorough knowledge of corporate culture and policies
To identify and evolve HRD strategies in consonance with overall business strategy
Efficient management and utilisation of resources
Advising management for effective use of human resource
Preparing and updating job analysis including the descriptions and specifications 
Advising the line managers regarding the multi skilling and down sizing of human resource planning

Paradigms for Post Modern Managers-

The post modern management has a more humanise approach toward employees and encourage management to increase the productivity of employees through motivating them by considering their needs.The management became more focused with motivation and communication and used the modernist management practices.

Modern managers are better able to understand employee motivations and improve productivity.

Employees need to be appreciated,wanted and rewarded for their efforts and likes to work on tasks that are engaging.

The post modern theories of management allows the managers to understand the feelings of employees and this helps them to design tasks that will deliver for both the business and the employees.

Human resource development

Human Resource Development (HRD) is that part of Human Resource Management which specifically deals with the training and development of employees.It  helps the employees in developing their knowledge, skills and abilities to achieve self-fulfilment and aid in the accomplishment of organisational goals.

Definition of HRD

HRD is defined as the “organised learning activities arranged within an organisation in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organisation”

Human resource development (HRD)is defined as the activities and process undertaken by an organisation to formulate the intellectual,moral,psychological,cultural,social and economic development of the individuals in an organisation in order to help them to achieve  the highest human potential as a resource for the community

Objectives of HRD

• To prepare the employee to meet the present and changing future job requirements.
• To prevent employee obsolescence
• To develop creative abilities and talents.
• To prepare employees for higher level jobs.
• To impart new entrants with basic HRD skills and knowledge.
• To develop the potentialities of people for the next level job.
• To aid total quality management.
• To promote individual and collective morale, a sense of responsibility, co-operative attitudes and
• good relationships.

Functions of Human Resources Development-

• Performance appraisal
• Employee training
• Executive development
• Career planning and development
• organisational change and development
• Involvement in social and religious organisations
• Involvement in quality circles
• Involvement in workers participation in management

   Importance of HRD

• It is needed to develop workforce capable of functioning productively in competitive and changing market conditions
• It helps to build the confidence and job satisfaction of employees and boosts their morale
• It helps to reduce employee turnover
• It trains the employees to adopt to  modern innovations
• Helps in diversification of business by training the employees in different areas of work
• It utilises the skills,knowledge and talent of human resources in the most efficient way.
• It treats employees with dignity and also care for their emotional health and safety
• It promotes teamwork and cooperation between employees.It encourages teamwork and collaboration
• It considers employees as the asset of organisation and provides them with opportunities for career and personal growth
• It helps the organisation to achieve its goals by linking the employee growth with the organisational growth

Differences between personnel Management and Human Resources Management                                                                                                                                         

Personnel Management  concerned with  the work  force and their  relationship with the entity Traditional  approach Employees are  treated as machines Routine functions Payment is  based on job  evaluation Management has  a transactional role There is indirect  communication Every action of  the management is  as per procedure Decision making is slow Job design followed  is division of labour focus on activities  like  employee hiring,  remunerating, training,  and harmony.

Human Resources Management focuses on  the most  effective  use of the  manpower  of an entity, achieve the  organisational  goals Modern  approach Employees are  treated as assets Strategic functions Payment is based  on performance  evaluation Management plays  a transformational role There is direct  communication Every action of  the management  is as per  business needs Decision making is fast Job design followed  is team or groups treat manpower of  the organisation  as valued assets, to be valued,  used and preserved.

 

SHRM

Strategic human resource management is defined as the alignment of strategic business goals of an organisation with that of human resources to improve the overall productivity and performance of the organisation.

Difference HRM and SHRM  

HRM   implies the governance  of manpower   in a   thorough and  structured  manner. Has reactive nature Responsibility lies with  staff specialist Has a fragmented  approach It is concerned with  employee relations Basic factor involved  is capital and  products Considers only short  term time frame

SHRM    implies framing of  HR strategies  to direct   employees  efforts  towards  the goals of the  organisation. It has proactive nature Responsibility lies  with line manager Has an integrated  approach Concerned with  internal and  external relations Basic factor involved  is people and  knowledge Considers various time  frames as necessary

IHRM

International Human Resource Management (IHRM) is defined as a set of activities focused on human resource management at the international level. It makes effort to meet  objectives of the organisation and gains  advantage over similar competitors at national and international level.

IHRM is the process of employing and developing human resources in international organisations  operating globally. It means working across national boundaries to formulate and implement resourcing, development, job management and compensation strategies and other policies which can be applied to an international workforce.

Difference between HRM and IHRM 

HRM	IHRM
It is done at  national  level deals with  employees  of one nation only limited  number  of activity  at  national level  less  complication  due  to less influence  from external  environment	it is done at  international  level deals with  multinational  employees additional  activities  such as  expatriate  management heavily  complicated  as external  factors  such as cultural factors  are involved

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