Human Resource Management (B.Com. Prog, Semester-V) PDF

B.Com.(Prog.) Semester-V Commerce Discipline Specific Elective (DSE-I) HUMAN RESOURCE MANAGEMENT Unit I-V SCHOOL OF OPEN LEARNING University of Delhi Department of Commerce ...

B.Com.(Prog.) Semester-V Commerce Discipline Specific Elective (DSE-I) HUMAN RESOURCE MANAGEMENT Unit I-V SCHOOL OF OPEN LEARNING University of Delhi Department of Commerce  CON NTENT TS UNIT I Lesson 1 Conceptual Frammework of HRM H Lesson 2 Organ nisation andd Policies of o Human Resource R Lesson 3 Humaan Resourcee Planning UNIT III Lesson 1 Recruuitment & Selection S Lesson 2 Placeement, Induction & Soccialisation Lesson 3 Train ning and Deevelopment UNIT IIII Lesson 1 Perfo ormance Apppraisal Lesson 2 Poten ntial Appraiisal and Em mployee Couunselling Lesson 3 Job Changes C – Transfers T annd Promotioons UNIT IV V Lesson 1 Job Evaluation Lesson 2 Compensation Lesson 3 Components of Compensation Lesson 4 Incentive Wage Plans UNIT V Lesson 1 Emplloyees Heallth and Safeety Lesson 2 Emplloyee Welfaare and Reddressal of Grievances G Lesson 3 Emerrging Horizoons in Hum man Resourcce Managem ment Lesson 4 Humaan Resourcee Managem ment in a Chhanging Envvironment Editors : Dr. Sneh Chawla Ms. Ritika Sharma SCHO OOL OF OPEN LEARNIN L NG Univeersity of Delhi 5 Cavalry Lane, 5, L Delhii-110007  Unit-I LESSON 1 -------------------------------\ CONCEPTUAL FRAMEWORK OF HRM Dr. Pooja Goel Shaheed Bhagat Singh College University ofDelhi Objectives After going through this unit you should be able to: Define the concept ofHuman Resource Management and appreciate why HR become the new corporate hero Discuss the importance, objective and function ofHuman Resource Management Distinguish between Human Resource Management and Personnel Management Structure 1.1 Introduction 1.2 Relevance and spectrum ofHuman Resource Management 1.3 Concept & Evolution ofHuman Resource Development 1.4 Difference between HRD and HRM 1.5 Nature ofHRM 1.6 Objectives·ofHRM 1.7 Importance ofHRM 1.8 Functions of HRM 1.9 HRM and Personnel Management 1.10 Impediments to the Progress ofHRM 1.11 Measures to speed-up Growth 1.12 Job Analysis 1.13 Summary 1.14 Discussion Questions 1.15 Further Readings 1.1 Introduction India is being widely recognized as one of the most exciting and emerging economies in the world. Besides becoming a global hub of outsourcing, Indian firms are spreading their wings globally through mergers and acquisitions. During the first four months of 1997, Indian companies have bought 34 foreign companies for about U.S. $11 billion dollars. This impressive development has been due to a growth in inputs (capital and labour) as well as factor productivity. By the year 2020, India is expected to add about 250 million to its labour pool at the rate of about 18 million a year, which is more than the entire labour force of Germany. This so called 'demographic dividend' has drawn a new interest in the Human Resource concepts and practices in India. 1.2 Relevance and spectrum of Human Resource Management Taking a look at people is rewarding experience. It is the people who possess skills, abilities and aptitudes that offer competitive advantage to a firm. It is only human resource that is capable of deciding, implementing and controlling activities. No computer can substitute human brain, no machines can run without human interventions and no organization has mandate to exist if it cannot serve people's needs. 1  Organizations are made up of people and function through people. Without people organizations cannot exist. The resources of men, money, materials and machinery are collected, coordinated and utilized through people. It is people who build factories, structure organizations and manage them successfully. The rapid growth of globalization has increased the number and significance of MNC's which in tum increased the mobility of people. Working for MNC's is a challenging task. HRM is a study about people in organization - how they are hired, trained, compensated, motivated and maintained. 1.3 Concept & Evolution of Human Resource Development Human Resource Development (HRD) is the framework for helping employees to develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Human Resource Development can be informal as in employee coaching by a manager. Human Resource Management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. The evolution of HRM can be traced back to the HR movement in the ancient period. For example: the minimum wage rate and incentive wage plans were included in the Babylonian code of Hammurabi around 1800 B.C. The Chinese, as early as 1650 B.C. had originated the principle of division of labour and they understood labour turnover even in 400 B.C. Kautilya, in India(in his book Arthasastra) made references to various concepts like job analysis, selection procedures, executive development, incentive system and performance appraisal. However, in the modern age, i.e. up to 1930s, it was referred to as personnel management and the focus was on the employer- employee relations. Studies on HR were initially guided by Taylor's scientific management principles. He pointed out that just as there was a best machine for a job, so there were best ways for people to do their jobs. Later on Hawthrorne studies to the behavioural school based on the theories of Abraham Maslow, Herzberg, and Douglas Mcgregor gave this concept a recognition. The early roots of HRM in India could be traced back to the period after 1930. The Royal commission on labour in 1931 suggested the appointment of labour in 1931 suggested the appointment of labour officer to protect workers' interests and act as a spokesperson of labour. After Independence, The Factories Act 1948, made it obligatory for factories employing 500 or more workers. In view of legal compulsions and the enumeration of duties the entire approach of organizations towards their personnel was to comply with the laws and keep the welfare officers busy with routine functions. During the 1960s the scope of personnel function has expanded a bit, covering labour welfare, participative management, industrial harmony etc. In this period, the human relations movement of the west had also had its impact on Indian organizations. The legalistic preoccupations slowly gave way to harmonious industrial relations and good HR practices. In 1960s and 70s the HR professionals focuse