Human Resources Management PDF

# Human Resource Management ## Introduction From time immemorial, the need for "Human Resources" has been experienced in the world - both in high and low society. Sage Vishwamitra had selected a suitable man called "Nakshatraka" with suitable remuneration to get his work done i.e. the sage sent hi...

# Human Resource Management ## Introduction From time immemorial, the need for "Human Resources" has been experienced in the world - both in high and low society. Sage Vishwamitra had selected a suitable man called "Nakshatraka" with suitable remuneration to get his work done i.e. the sage sent him to fetch the money that the king Harishchandra owed to the sage. Likewise, agrarians, for their field work, used to select labourers based on how much food they consumed. Americans used to hire strong and stout Negroes to work in their plantations, in a similar way we use animals today. Visiting Professors, Doctors, expert engineers, ace technicians, yogis, and musicians are selected with suitable remunerations to establish, develop and expand their respective organisations. Yes, "Human Resource" has been an urgent need - both in the past and the present society. Now, it needs an efflorescence in its epic size. ## Meaning of human resource ### HUMAN What is Human Resource? * **H** - Hears * **U** - Understands * **M** - Moves * **A** - Adjusts * **N** - Negotiates ### RESOURCES * **R** - Reserve * **E** - Educate * **S** - Skill * **O** - Objectives * **U** - Understanding/Utilising. * **R** - Research * **C** - Capability * **E** - Energies * **S** - Strength. Human resources means total quantitative and qualitative assets of human beings in a society. ## Quantitative Asset It means the organisation should have adequate number of people required to carry on or perform all the activities of the organisation. ## Qualitative Asset It means the people should possess required knowledge, competence, skills and abilities to handle their task efficiently and effectively. In other words, Human Resource means aggregate of the knowledge, skill, experience and health of employees working in any organisation. So, the study of resources occupies a unique position in the resource set up of any country. ## Definitions of Human Resource 1. According to Michael J. Jucius, Human Resource refers to "a whole consisting of inter related, inter dependent and interacting physiological, sociological, psychological and ethical components". According to this definition, human resources represent the quantitative and qualitative measurement of work force required in an organisation. 2. According to L.F. Urwick "business houses are made or broken in the long run not by markets or capital, patents or equipments but by men". As per this definition, Human resource is the only resource which does not depreciate with the passage of time. 3. Leon. Megginson has defined human resources as, "the total knowledge skills, creative abilities, talents and aptitudes of an organisation's work force as well as the value attitudes and beliefs of the individual involved". According to this definition, human resources are values, beliefs, talent, efficiency, decision making prowess, enthusiasm. Thus human resources may be defined as "the knowledge skills creative abilities, talents and aptitudes obtained in the population". Therefore, human resources are the assets or wealth of the country whom it rely upon at any time. In short, human resources represent the people at work, or human beings are treated as resources. Human resource is the most significant and active factor of production, for human being is a master of all resources - may be natural or artificial. It plays a very important role in the areas of production and quality. Human brain - the greatest creation of Nature, has got an infinite energy to think and act. The efficiency and higher productivity-depend on the skill of employees. Human resource is considered to be the centre of all developmental process of economy. It is an essential element in the development and is necessitated by the deteriorating social conditions, increased competitions and rapid technological advancements. On account of these reasons or some other reasons, the other resources may be exhausted, but the only inexhaustible resource is man. i.e. human being, and this resource finds solution to our social and material problems. ## Human Resource Management Of all the assets of an organisation, the human asset is probably, the most difficult to manage, for, human behavior is highly unpredictable. It differs not only from an individual to another individual but often on the part of the same individual at different points of time. Inspite of all the biological and cultural similarities, human beings are not only different in their appearances but also in their capabilities. So, the success of any organisation in the long run, depends on the very quality of its human resources. In this context, Rajiv Gandhi had expressed thus, "the real strength of the country lies in the development of the human mind and body". So human resources means all the people working at different levels of an organisation. It includes both managerial as well as working personnel. It represents human factor in the business. It becomes both employers and employees, working in the organisation. We may say that human resources act as catalytic agent in business environment, for the success of any business unit depends upon human resources, because they manage the business efficiently and effectively. ## Need for Human Resources Human resources are essential (needed) to an organisation on account of the following reasons : 1. It manages all M's i.e. money, material and machine efficiently and effectively for productive purposes. 2. It is essential for reduction of cost, because Human Resources is capable of effecting savings in the time and labour operation. 3. It controls wastage of resources and activities of economy and productivity. 4. It integrates the activities of the organisation for purposeful plan of action and implementation. 5. No organisation can function without human resource. 6. It is responsible for planning, organising, directing and controlling business policies for activity which are the objectives of a business concern. 7. The success or failure of an organisation is determined by the quality and adequacy of its human resources. ## Development of Human Resources To develop means to expand or realise productivity and to bring gradually to a fuller, greater or better state. Human resource means "a body of persons held together, by belief, in communication origin, speech culture, political union or a body of persons linked by common knowledge". When something develops it becomes different, when people develop they turn different, they blossom. Development does not mean individuals becoming bigger, but a group of people becoming different, thus individuals and as people. People have to decide their own need for development. It is possible with people as participants deciding their own way, in their own pace. Development, to be successful, has to be participatory. Any development involving human resource. Machinery and technology cannot substitute people. In development, our desire is to offer people a meaningful alternative to the alienation and powerlessness they experience in their daily lives and work. The development begins with their communication. They say what is wrong with their situation. It may be building confidence in themselves. There are struggles and misunderstandings in the process, but finally they are dragged to a new life. The development of people is internal as well as external. They internalise the values. It becomes a part of them. Development does not just occur. It depends on organising the people. It is group effort. Everything done as a group is planned, executed and results evaluated. We learn at lot from mistakes, we organise again and fail and then we organise by rectifying all mistakes or overcoming all failures to succeed. ## Meaning of Management It is a group of people who are responsible for using resources. The people manage the affairs company, in order to achieve the objectives. * **M** - Managing the people or men. * **A** - Achieve the objectives * **N** - Noble thoughts * **A** - Action * **G** - Goals * **E** - Efficient * **M** - Motivation * **E** - Excellent * **N** - Need * **T** - True or Tallarance ## Human Resources Management One should not be confused with the words Human Resources Management and Human Resources Development are one and same but they are differ. ### Introduction Human Resource is the most valuable asset of an organisation. Planning of human resources is an important managerial function. On this context, Peter F.F. Drucker expressed “Our greatest asset is people... most managers know perfectly that all the resources, people are the best utilized and little of the human potential of any organisation is tapped and put to work... the manager must treat the people with where he works as a resource to himself. He has to look to them for guidance regarding his own job." So that it ensures adequate supply of proper quantity and quality as well as effective utilisation of human resources. There is generally a shortage of suitable persons. An organisation will determine its needs of manpower and then find out the sources from which the requirements will be met. If sufficient manpower is not available the work will suffer. In order to meet the human resources of an organisation, one has to plan in advance about its requirements and the sources. ### Origin of Human Resource Management OR Development of Human Resource Management Originally labour welfare was introduced in order to protect the labour. Afterwords, concept of labour welfare has been changed to personnel management. The traditional concept of personnel management has been changed to Human Resource Development. The HRD concept fails to meet the new challenges of the 21st century. In order to meet the challenges of tommorrow, a new concept has been introduced, it is known as Human Resource Management. ### Meaning of Human Resource Management Human resource management is nothing but management of people, HRM is strategic approach to the acquisition, motivation, development and management of the organisation's human resources. It is a specialised field that attempts to develop programmes policies and activities to promote the satisfaction of the needs of both individual and organisation, needs, goods and objectives. It is devoted to shaping an appropriate corporate culture, and introducing programmes which reflect and support the core values of the enterprise and ensure its success. HRM is preactive rather than reactive is always looking forward to what needs to be done and then doing it, rather than waiting to be sold. What to do about recruiting or training people or dealing with the problems related to the employees, as they arise. HRM is the qualitative improvement of human beings who are considered as the most valuable assets of an organisation - the sources, resources and end-users of all products and services. Man (Worker) is a dynamic element of management. The success of an enterprise will depend upon the calibre and motivation as person working in it. Different types of organisations will require different types of people. HRM refers to the systematic approach to the problem of selecting, training, motivating and retaining personnel in any organisation. It is concerned with recruitment, training and development of personnel. In case of HRM, Peter Drucker assigns the responsibility to management. * (a) Managing work * (b) Managing worker and * (c) Managing Manager Hence the HRM involves the discharge of the sense of those responsibilities. HRM is also more comprehensive and deep-rooted than training and development. Its approach is multi-disciplinary from the begining till the end. It is a scientific process of continuously enabling the employees to improve their competency and capability to plan their present as well as future expected rolls. So that the goals of the organisation are achieved more fully and some time the needs of the employees are also met to an adequate expert. So HRM is a production model approach to personnel management. HRM is employee oriented with an emphasis on the maximisation of individual skills and motivation through consultation with the workforce so as to produce high levels of commitment to company strategic goals. It is a resource to be used to its fullest capacity. It is an asset to be invested in. Human resource management is known by different names e.g. personnel management or Manpower Management or Personnel Administration or Staff Management. ## Definitions of Human Resource Management 1. According to Wendill L. French, the Human Resource Management refers to, "the philosophy, policies, procedures and practices related to the management of people within the organisation." 2. Stephen P. Robbins defined human resource as management "a process consisting of the acquisition development, motivation and maintenance of human resources", 3. Michael J. Jucius defined Human resource management as, “that field of management which has to do with planning, organising and controlling the functions of procuring, developing, maintaining and utilising the labour force, so that the * a) Objectives for which the company is established are attained economically and effectively; * b) Objectives of all levels of human resources are served to the highest possible degree ; and * c) Objectives of society are duly coincided and served" 4. According to Flippo, Human Resource Management is "the planning, organising directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organisational and societal objectives are accomplished." 5. According to National Institute of Personnel Management of India, "Human Resource Management is that part of management concerned with people at work and with their relationships within the organisation. It seeks to bring together men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group". 6. Scott and others have defined as follows: “Human resource management is that branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. The objective is to attain maximum individual development, desirable working relationship between employers and employees and employees and employees, and effective moulding of human resources as contrasted with physical resources." HRM aims at developing head, hands and heart of every individual (men and women) working in an organization. The objectives of the organisation can be met only by people who are competent and motivated. It is the job of management to select right type of people, for right job and at right time, sharpen their skills and abilities and motivate them to give their best at the jobs and the roles assigned. ## Functions of Human Resource Management So Human Resource Management is the managerial function of manpower planning, scientific recruitment and selection training and development, motivation & remuneration, performance appraisal of human resource. ### Objectives of Human Resource Management Objectives are pre-determined goals of an organisation and serve as the basis for voluntary co-operation and co-ordination among employees . In order to achieve organisational objectives integration of employer's and employee interests is essential. Therefore objectives are the benchmarks or standards of evaluating performance. The following are the objectives of HRM. 1. To utilise human resources effectively : It means proper utilisation of skills and knowledge of employees efficiently and effectively for the achievement of organisational goals. 2. To maintain high morale and good human relations within the organisation. 3. To recognise and satisfy individual needs and group goals by offering appropriate monetary and non-monetary incentives. Monetary incentives are basic pay in the form of wages or salaries. Incentive plans offer an attraction of extra payment for efficiency or more production. Examples; premium and bonus. In other words, in order to satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige security status etc. 4. To create facilities and opportunities for individual or group development. It means proper training and placement opportunities should be provided. It helps the individual or group for development. This helps for growth of the organisation. 5. To help, maintain ethical policies and behaviour inside and outside the organisation. 6. To secure the integration of all the individuals and groups with the organisation by recording individual and group goals with those of the organisation. 7. To enhance job satisfaction and self actualisation of employees by encouraging and assisting every employee to realise his or her full potential. 8. To help the organisation attain its goals by providing well trained and well motivated employees 9. To establish and maintain productive self respecting and internally satisfying working relationship among all the members of the organisation. 10. To respect the individual as people are the greatest asset. 11. To achieve and maintain leadership in people management. ### Need for HRM 1. Replacement : A large number of persons are to be replaced in an organisation because of retirement, old age, death, etc. There will be need to select persons for taking up new positions in such contingencies. 2. Labour Turnover : Labour turnover is a common feature in every organisation. It cannot be avoided but it can be minimised. There will be a need to recruit new persons to take up the positions of those who leave left the organisation if the concern is able to forecast turnover rate precisely then advance efforts may be made to recruit and train persons so that work does not suffer on account of shortage of workers. 3. Expansion and Diversification : In case of expansion or diversity, the concern then more persons will be required to take up new positions. 4. Meeting New Demands : Business or administration has to work according to the changing technological environment, there may be a need to give fresh training to personnel. In addition to this, there may be also a need to infuse fresh blood into the organisation. In such case, HRM will help in meeting the new demands of the workers as the organisation. 5. Manpower Assessment: HRM is to determine whether there is any shortage or surplus of persons in the organisation. Because the shortage of workers affect the production and excess of workers increase the labour cost. So HRM ensures the employment of proper work force. ## Characteristics of HRM 1. Estimation of Personnel Needs : HRM is related to the determination of the needs of personnels in the organisation. Its thinking will have to be done in advance so that the persons are available at a right time when they all needed. HRM is not making available the persons it undertakes recruiting, selecting and training processes also. 2. Inventory : It includes the inventory of present manpower in the organisation. The manager should know the person who will be available to him for undertaking higher responsibilities in the near future. 3. Tapping external sources : In case of non-availability of sufficient number of persons in the organisation is from internal sources, then external sources are also spotted for employing them. So that this will help to understand well in advance for demand and supply of personnel. 4. Better working conditions : HRM lays emphasis on better working conditions. The persons working in the organisation should feel at ease and their relationship among themselves should also be conducive. ## Principles of Human Resource Management : 1. Human Resources are most important assets of an organisation and their effective management is the key to its success. 2. This success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to the achievement of corporate objectives and strategic plan. 3. The corporate culture and the values, organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence,, this culture must, therefore, be managed. 4. It is concerned with integration - getting all the members of the organisation involved and working together with a sense of common purpose. ## Functions of Human Resource Management : The functions of HRM can be broadly classified in to two categories, viz. * a) Managerial functions * b) Operative functions. ### Managerial functions Managing people is essential task of a manager. So a human resource manager performs the following functions; * 1. Planning, * 2. Organising, * 3. Directing, * 4. Controlling * 5. Maintaining ### Operative functions * 1. Employment (procurement) * 2. Human resources development * 3. Compensation * 4. Intergration * 5. Maintenance ### Planning : Planning is the means to manage change. A plan is a pre-determined course of action. Planning is the process of deciding the goals and formulating policies and programmes to acheive the goals. According to Allen, "planning is a trap laid to capture the future". In the words of Terry, "planning is the foundation of most successful actions of any enterprise". “Planning today avoids crisis tomorrow". Thus planning is a hard job, for it involves the ability to think, to predit, to analyse and to come to decisions, to control the actions of its personnel and to cope with a complex, dynamic fluid environment. Thus planning involves forecasting and research. These two are inter related. ### Forecasting: It implies scientific anticipation of the future environment. Human resource management involves forecasting needs for human resource, predicting trends in labour market, wages, union demands, etc., and their impact on the organisation. Planning helps to face successfully the changes that are likely to take place in future. It bridges the gap between where they are and where they want to go. ### Research : Forecast is possible only as a result of research In other words, planning is a pre-determined course of action to achieve a desired objectives. Planning is a mental process requiring the use of intellectual faculities? foresight and sound judgement. It is concerned with developing a personnel programme and specifying what and how operative personnel functions are to be performed. Planning is deciding in advance, * What to do? * When to do it? * Where to do it? * How to do it? * Who is to do it? * How the results are to be evaluated? Thus planning is a systematic thinking about the ways and means for realising the pre-determined objectives. Planning bridges the gap between where we are and where we want to go. Systematic planning is necessary for any business activity. Without planning, business is like a house without foundation. Planning is a process of thinking before doing. So that planning is keeping the ladder and thinking ahead or forecasting. It involves planning of human resources requirements, recruitment, selection, training, forecasting of personnel needs, changing values, behaviour of employees and effect on the organisation. Therefore, the process of planning includes : * (1) Determination of objectives * (2) Forecasting * (3) Search of alternatives * (4) Evaluation of alternatives * (5) Selection of plans ### Organising Organising is the process of allocating duties or tasks among the members of the group establishing aruthority, responsibility, relationship among them and intergrating their activities towards the common objectives. This function is related to the grouping of personnel activities, assignment of work to groups and individuals, delegation of authority to carry on the workwor coordination should be created among the employees to carry out the work. In order to realise the objectives of plan, the management has to employ the workers and allot the work that each has to do. Not only employing the people, management has to provide materials, machines, equipment for performing the job. Thus organising is an important managerial activity by which management brings together the manpower and material resources for the achievement of objectives of the enterprise. According to Koontz, "Organisation is identification and grouping the activities to be performed and dividing them among the individuals and creating the activities to be performed and dividing them among the individuals and creating authority and responsibility relationship among them." It is also defined as the process of establishing relationships among the members of the enterprise. The relationships are created in them of authority and responsibility. Thus the process of organisation involves the following steps: * (a) Determination of objectives * (b) Division of activities * (c) Fitting individuals into jobs * (d) Developing relationships in terms of authorities and responsibilities. ### Directing (Motivating, actuating or commanding): Directing is an important function of human resource management to achieve the organisational goal. There must be a definite direction. Through this, definite direction only effective willingness and effective co-operation of the employees can be secured. So a definite direction helps in building sound industrial and human relations in the organisation. Directing is the process of motivating, activating, leading and supervising people. It includes all those activities by which a manager influences the actions of subordinates. Directing is the heart of the management process because it is concerned with initiating action. According to Harold Koontz, directing involves, "determining the course of action, giving orders and instructions and providing dynamic leadership." It relates to those activities which deal directly with influencing, guiding, supervising and motivating subordinates in their jobs. According to G.R. Terry directing means moving to action and supplying stimulative power to group of persons." Thus directing function involves the following steps * (a) Issuing orders and instructions to the subordinates * (b) Guiding and teaching the subordinates the proper method of doing work * (c) Supervising the subordinates to ensure that their works in confirmation with plans. * (d) Inspiring the subordinates for higher productivity by using various techniques of motivation. ### Motivating: It involves inducing the workers, guiding and supervising the personnel. Personnel Department must appreciate the worker's performance. It boosts up workers to work hard. So personnel department guides workers regarding improved performance and encourages the workers to work with zeal and confidence. The word motivation has been derived from 'motive' which means "any idea or emotion that prompts a man into action." Whatever may be the behaviour of man, there is some stimulus behind it. Stimulus depends upon the motive of the person concerned. Motives can be known by studying his needs and desires. Dabin has defined motivation as "complex of forces, starting and keeping a person at work in an organisation." In simple, words creation of a will to work is motivation. It is an effective instrument in the hands of management in inspiring the work-force. It is the duty of every manager to motivate his subordinates to create will to work among the subordinates. In order to motivate workers to work for the organisational goals the manager must determine the needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction. If the management is successful in doing so it will also be successful in increasing the willingness of the workers to work. This will help for the better utilisation of resources and workers abilities and capabilities. Thus motivation is an important function which every manager performs for actuating the people to work for realisation of objectives of the organisation. ### Advantages of motivation * (1) It leads to job satisfaction * (2) It reduces absenteeism * (3) It reduces the labour turnover * (4) It maintains better relationship between the management and workers. * (5) It creates team spirit among the workers. ### Controlling : It involves checking, verifying and comparing the actual results with standards or predetermined plans. It is essential because, after planning, organising, directing, the personnel department has to verify it with standard plan. Controlling is essential for this purpose. Controlling can be done through direct observation, supervision as well as looking into reports, records and holding audit. So controlling is nothing but measuring of performance of plans. * (c) To work out promotional charts with lines of advancement chart with career advancement clearly defined. * (d) To develop a promotion policy based on periodic reviews of employees' records. * (e) Seniority required for promotion * (f) Weightage to seniority and merit promotion. ## Compensation : It is concerned with providing a fair remuneration to the employees. It also includes job evaluation, wage systems, monetary incentives, etc. It involves the following functions : * (a) Minimum wages and salaries * (b) Non-monetary rewards * (c) Profit sharing and incentive plans. ## Integration : It is nothing but bringing about a reconciliation of individual interests with organisational interests. This function includes : * (a) Handling of grievances * (b) Recognition of labour unions * (c) Workers participation in Management * (d) Discipline. ## Maintenance : This function of personal department provides the good working conditions, such as health and safety and precautionary measures to the employees. This function includes : * (a) Providing sufficient facilities like, canteen, recreation, first aid, legal advice, etc., * (b) Introduction of effective rest pauses * (c) Educating employees in safety measures and health maintainance * (d) Providing Employees' State Insurance benefits. ## Records, Research and Audit. Personnel department has to maintain the records of the employees, such as wages, performance, etc. It helps for promotion, transfer of employees. ## Recruitment and selection This function includes, - * (1) Developing different sources of supply of applicants for different jobs. * (2) Preparing prescribed application forms for each category of employees. * (3) Interview of applicants by a trained interviewers * (4) Final selection of candidates on the basis of tests, medical tests, etc. * (5) Maintaining the dignity of the employee as a human being. * (6) Providing maximum opportunities for personal development. * (7) Providing healthy relationship between different work groups so that work is effectively performed. * (8) Improving the employees' working skill and capacity. * (9) Allocation of work properly correcting the errors of wrong postings and proper reallocation work. ## Placement : It includes, * (1) Assigning the job to employees on the basis of qualifications and on the basis of selection techniques * (2) Introducing a uniform procedure for introducing new employees to the company. ## Development : This function relates with training and education of the employee, effective communication, promotions, transfer, career plans etc. So it is a process of designing and conducting suitable executive development programmes. It includes the following functions: ### Training and education : It consists of * (a) Opportunities for development * (b) Bases for learning * (c) Types of training, viz., on the job or off the job. * (d) Developing the programmes of lectures and classes for clerical personnel * (e) Programmes for executive development * (f) Developing company library to include books, pamphlets, magazines, etc., in the interest of all classes of personnel. ### Effective communication : It consists of * (a) Publication of the employees' magazine * (b) To publish in tentative form the employees' handbook subject to periodic revision. ### Performance Appraisal: It consists of * (a) Arrangement of annual or semi-annual appraisals of all personnel. * (b) Preparation of appropriate appraisal forms for each class of employees. ### Promotions and transfer : It consists of * (a) Rational of transfer * (b) Periodicity of transfer ## Operative Function: These functions are those duties which are entrusted to the HRM under general supervision of HRM manager. The HRM performs the following operative functions : * (a) Procurement. * (b) Development. * (c) Compensation. * (d) Integration. * (e) Maintenance. * (f) Records, research and audit. ### Procurement: It means securing the right people in the right place, at the right time. It is concerned with, employing the people possessing required kind and level of human resources necessary to achieve the organisational objectives. So this function deals specifically with the determination of manpower requirements and their recruitment, selection, placement and induction. * (1) Determination of Manpower requirements : It includes * (2) Preferred sources of recruitment * (3) Analysing each job to determine the nature of the work i.e. job analysis * (4) Determining, the needs of the organisation * (5) Human Resource Development (HRD) * (6) Human Rresource Relationships * (7) Human Resource Utilisation * (8) Human Resource Accounting (HRA) * (9) Human Rresource Auditing ### Human Resource Planning: It means to calculate how many people the organisation wants; the type of people the organisation needs at present and in future in terms of their expertise and how they "fit" the corporate culture. HR planning involves the forecasting of both the supply and demand for future labour. It provides the base for recruitment programmes. ### Human Resource Systems: A well formulated human resource system is an important element of HRM. These programmes are needed to recruit, training, appraise, pay, health, safety, and the like. HRS includes the following: * a) Recruitment and selection: It is a process of obtaining the required human resource for an organisation. * b) Training and development: It is a system of identification of training needs, preparation of a training strategy and appropriate training system. * c) Performance appraisal: It is a process of evaluating an employee's performance of a job in terms of its requirements. In otherwords, performance appraisal is a method of assessing the behaviour of the employees in the workspot, in terms of quantity and quality of job. * d) Reward management: It is a method to ensure that people are rewarded in accordance with their contribution. * e) Health and safety management: It is a system of maintaing healthy and safe system of work in on organisation. * f) Discipline management: It is a system of administering discipline to foster positive employee behaviour. This will help to promote the organisational objectives. * g) Promotion or career management: Promotion takes place when un employed moves to system of charting special career paths for advancement in the organisation. ## Factors for importance of HRM In the modern era of automation, computerisation, machine is useless without competent people to run it. that is why, HRM becomes very significant due to the following factors; * 1) Rapid technological developments, computerisation automation, etc. * 2) Increasing proportion of women in the workforce. * 3) Increase of professional and knowledgeable workers. * 4) Revaluation in information technology. * 5) Multinational corporation employing millions of persons * 6) Expectations of society from employers are growing. * 7) Rapidly changing jobs and skills requiring long term manpower planning. ### Components of human resource management ### OR ### Essential elements of Human Resource Management ### OR ### Steps in Human Resource Management ### OR ### Mechanism of Human Resource Management The following are essential elements of HRM. * 1) Human Resource Planning * 2) Human Resource System * 3) Human Resource Organisation ## Significance of Human Resource Management Or ## Importance of Human Resource Management The importance of HRM can be discussed at four levels, viz. corporate, professional, social and national. ### 1) Significance for corporate or enterprise HRM helps the corporate or enterprise in achieving its goals more efficiently and effectively in the following ways: * a) Creating right attitude among the employees through effective motivaton, participation, grievance handling, etc. * b) Utilising effectively the available human resources * c) Altracting and retaining the required talent through effective human resource planning. recruitment, selection, placement, orientation, promotinal policies and compensation. * d) Developing the necessary skills and right attitudes among the employees through training development, performance appraisal, etc. * e) Ensuring that the enterprise will have in future a team of competent and dedicated employees. * f) Securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness esteem, self actualisation. Thus corporate flourishes only through the efforts and competencies of their human resources. Hence the capabilities of employee must be acquired, sharpened and used continuously. ### 2) Social significance: HRM has a great significance for the society. It helps to enhance their dignity by satisfying their social needs in the following ways: * a) Maintaining a balance between the jobs available and the job seekers, according to the qualifications and needs. * b) Providing suitable and most productive employment which might bring them psychological satisfaction. * c) Making maximum utilisation of the resource in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him. * d) By helping people make their own decisions that are in their interest. * e) Eliminating waste or improper use of human resource through conversion of its normal energy and health. ### 3) Professional significance: Proper management of human resource helps to improve the quality of work life. It encourages team work among employees by providing a healthy working environment. It contributes to the professional growth in the following ways: ### Human Resource Organisation: It is concerned with achieving success by organisation design and development, motivation, the application of effective leadership. ### Human Resource Development: Human resource management. It is the main function of HRM. Every organisation and its management has the responsibility to develop its human resources if at all it wanted to remain in business, face the competition and march towards prosperity and growth. In the modern times of growing awareness, the human resource development is the task number one for any organisation. The very survival and growth of the ogranisation depend on human resource development. HRD programmes have become routine now in the organisations. Gone are the days when employees were treated as part of the machine. Now new awakening has emerged. Organisations have now realized that employees are human being and if they are treated well and their talent is developed they can be of immense help to them in fostering organisational growth. This has given rise to the emergence of new relationship between employees and management. Autocratic ways of supervising are gone. Employees are looked as having tremendous potential. This potential needs to be developed and exploited for the organisation's growth and prosperity by rewarding the employees suitably. Now all round efforts are mooted to employee's development. The organisations are making efforts to increase worker's influence. Committees are set up to study their problems and are finding new approaches to solve their problems. An open door policy is being adopted to redress their grievances. Efforts are made for their career development. Human resource development is the centre point of human resource management. All activities of human resource management are aimed towards development of human resources. There are many ways of human resource development which include training and development of employees and executives, career planning and development and conducting workshops for that, development of technology, job enrichment, various job experiences team building development, building up of better subordinate supervisor relationship. ### Human Resource Relationships: It deals with handling of employees individually and collectively as members of trade unions or staff associations. Their main aim is to increase co-operation and trust and to involve employees actively in the company's affairs. It also deals with problem-solving techniques, particularly to solve problems relating to disciplinary cases and grievances. ### Human Resource Utilisation: Proper utilisation of human resource is very important element in HRM. In order to increase productivity through people, it is very essential to treat them as adults, treat them as partners, treat them with dignity and treat them with respect. These fundamental human relationship values increase productivity and improve efficiency. The following steps are to be taken for utilisation of human resource: * a) Introduce work measurement * b) Improve manpower budgeting and control techniques * c) Use appropriate payment method by results, bonus, etc. * d) Improve motivation. ### Human