HRM Chapter 1 PDF
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This document presents a syllabus and introductory chapter on Human Resource Management (HRM). It covers the meaning, objectives, and functions of HRM, along with the role of HR departments and emerging trends.
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SYLLABUS Unit 1: Introduction to Human Resource Management & Human Resource Planning Meaning and objectives of Human Resource Management, Importance of Human Resource management, scope, and functions of Human Resource management. Role of Human R...
SYLLABUS Unit 1: Introduction to Human Resource Management & Human Resource Planning Meaning and objectives of Human Resource Management, Importance of Human Resource management, scope, and functions of Human Resource management. Role of Human Resource department, qualities of a good Human Resource manager, Growth of Human Resource management, Emerging Trends of human resource management in India. Concept of Human Resource planning, Importance of Human Resource planning, Process of Human Resource planning Job Analysis, Job Evaluation- Concept, Methods & Difference Unit 2: Recruitment, Placement, Induction, Training & Development Recruitment and selection: Concept, Process, Sources & Methods Placement- Concept & Benefits Induction: Concept, Process Training: Concept, importance, Process, Types of training-On the job & off the job; Human Resource Development – Concept & Methods, Promotion, and transfers Index Chapter No. Chapter Name Page No 1 Human Resource Management 2 Human Resource Planning (HRP) 3 Recruitment & Selection 4 Placement & Training Case Studies UNIT 1 CHAPTER 1 Human Resource Management 1.1 Introduction to Human Resource Management (HRM) Henry Fayol the pioneer in the field of management state “Take out my building take out my machines and all capital but leave my men with me, I will become Henry Fayol again”. He highlighted that human resources in an organization play a crucial role. The human resource refers to the knowledge, skills, abilities, values, aptitude, and beliefs possessed by the workforce in organization. Human resource i.e. manpower plays a crucial role in the progress and prosperity of an organisation. Manpower represents human resources which is different from material resources. It is rightly said that organisations are not mere bricks, mortar, machinery, or inventories, it is made of people. It is they who staff and manage the organisations. They plan, organise, coordinate, and control all available resources effectively and for the benefit of the organisation. Human resources are people and their characteristics at workplace. HRM is the application of management principles to management of people in the organisation. Human resource is the most productive and most versatile. It is employees who have the capacity to feel, think and even to act and react. Management must deal with the employees in a delicate, careful and tactful manner. Material resources like land, machines, raw materials, equipment are easy to manage, this is because they have no capacity to feel or think or react. This is not the case with human resources. HRM deals with the management of people employed in a business organisation. Organisations are made up of people and function through people (employees). It is human resource which brings success and stability to a business enterprise. HRM is a management function which helps managers to plan, recruit, select, train, develop, remunerate, and maintain employees for an organisation. Human Resource Management is a process of bringing people and organization together so that the goals of each are met. It is the part of the management process which is concerned with the management of human resources in an organization. It tries to secure best from the people by winning their whole hearted co-operation. In short, it may be said that it is the art of procurement, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. Definition According to Edwin B. Flippo, “Human resource management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished.” The Indian Institute of Personnel Management defines HRM as, “Human resource management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists. It is that part of management which is concerned with people at work and with their relationships within an enterprise. It applies not only to industry and commerce but to all fields of employment.” According to Tead and Metcaff, “Human resource management is the planning, supervision, direction and co-ordination of those activities of an organization which contribute to realising the definite purpose of that organization, with an animating spirit of co-operation and with a proper regard for the well-being of all the members of the organization.” Milkovich and Boudreau view HRM as, “A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objective.” According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”. According to Dessler (2008) the policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM. It is thus, clear that human resource management is a specialized knowledge and practice concerned with the management of human resources in an organization. It constitutes a significant activity of the management. It attracts and selects capable men, organises them in productive groups, develops their potential, gives them necessary motivation and maintains their high morale. Example: Foxconn Technology Group, a major supplier to Apple Inc. and other global electronics brands. In 2010, a series of suicides occurred at Foxconn's manufacturing facilities in China, drawing international attention to the harsh working conditions and management practices within the company. Reports revealed that many of the workers, who were primarily young migrants from rural areas, were subjected to long hours, low wages, strict discipline, and cramped living conditions in company dormitories. Despite being one of the world's largest electronics manufacturers, Foxconn faced criticism for its treatment of workers, particularly those employed on assembly lines producing popular consumer gadgets like iPhones and iPads. The suicides, which numbered over a dozen within a few months, prompted calls for improved labor conditions and greater oversight of supply chain practices by multinational corporations. In response to mounting pressure, Foxconn implemented various reforms, including wage increases, reduced working hours, and the installation of suicide prevention nets around factory buildings. Additionally, Apple and other companies that sourced products from Foxconn pledged to work with the supplier to address labor rights issues and improve working conditions for employees. This Foxconn case highlights the importance of HRM in addressing the complex challenges faced by multinational corporations operating in global supply chains. By prioritizing workers well- being, promoting ethical sourcing practices, ensuring transparency, and upholding corporate responsibility, HRM plays a critical role in creating sustainable and socially responsible businesses. 1.2 Features / Nature of HRM 1. Relates to managing people: It covers all levels of personnel and their needs, expectations and so on. In this sense, it is a comprehensive function and is basically concerned with managing people at work. HRM has universal existence and application as it is applicable to business and other organisations such as government, educational, social, religious, and so on. HRM is also dynamic and multi-disciplinary as it is related to sociology, psychology, and philosophy. 2. People oriented process: HRM is concerned with employees, both as individuals as well as groups. The aim of personnel management is to get better results through their involvement, motivation, and cooperation. HRM is people-oriented process which brings people and organisations together so that goals can be meet. 3. Integral part of organisation: HRM is an integral part of all organisations. It is concerned with recruitment, selection, and development of manpower available. HRM is all pervasive. It is applicable to business and non-business organisations. It has universal application. 4. Continuous function: HRM is a continuous activity in an organisation as personnel problems continue to exist as long as employees are working in an organisation. They need constant attention as they may disturb normal working of an organisation, is neglected. 5. Future oriented: It is an essential characteristic of HRM and could be considered one of the crucial HRM features. Not only does this tie in very closely with many other attributes on this list, but it is also a function that needs a focus of its own. Preparing for the future is vital, whether it is the future of the company’s growth, changes in culture, change in the work environment, or meeting new trends or future employee requirements. With the right tools at your disposal and agile plans in place, being future-oriented is a foolproof HRM feature to safeguard the business from any unexpected pitfalls. 6. Challenging function: HRM is a challenging function as it deals with the people who are always unpredictable. Employees have emotions and sentiments and can not be treated like machines. It is necessary to handle them tactfully. In short, HRM brings challenges before HR manager from time to time. 7. Performance oriented: HRM is performance oriented. It has its focuses on results rather than on rules. It encourages people to give their 100%. It tries to secure the best from people by winning wholehearted cooperation. 1.3 Objectives of HRM The primary objective of HRM is to ensure the availability of competent and willing workforce to an organization. The specific objectives include the following: 1) Human capital: assisting the business in securing the proper number and types of people to meet its strategic and operational goals 2) Developing organizational climate: assisting to establish a climate in which employees are encouraged to develop and use their capabilities to the utmost and to efficiently deploy the workforce's skills and competencies. 3) Helping to maintain performance standards and increase productivity through effective job design; providing adequate orientation, training and development; providing performance- related feedback; and ensuring effective two-way communication. 4) Helping to establish and maintain a harmonious employer/employee relationship 5) Helping to create and maintain a safe and healthy work environment. 6) Developing programs to meet the economic, psychological, and social needs of the employees and helping the organization to retain the productive employees 7) Ensuring that the organization is in compliance with provincial/territorial and federal laws affecting the workplace (such as human rights, employment equity, occupational health and safety, employment standards, and labour relations legislation). To help the organization to reach its goals. 8) To provide organization with well-trained and well-motivated employees 9) To increase the employee’s satisfaction and self-actualization 10) To develop and maintain the quality of work life 11) To communicate HR policies to all employees. 12) To help maintain ethical polices and behaviour. The above stated HRM objectives can be summarized under four specific objectives: societal, organizational, and functional and personnel. Social Objectives Organisational Objectives Functional Objectives Personnel Objectives 1) Societal Objectives: seek to ensure that the organization becomes socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. The failure of the organizations to use their resources for the society’s benefit in ethical ways may lead to restriction. 2) Organizational Objectives: it recognizes the role of HRM in bringing about organizational effectiveness. It makes sure that HRM is not a standalone department, but rather a means to assist the organization with its primary objectives. The HR department exists to serve the rest of the organization. 3) Functional Objectives: is to maintain the department’s contribution at a level appropriate to the organization’s needs. Human resources are to be adjusted to suit the organization’s demands. The department’s value should not become too expensive at the cost of the organization it serves. 4) Personnel Objectives; its purpose is to help employees achieve their own goals, at least to the extent that these goals benefit the individual's contribution to the firm. Employees' personal goals must be met in order to be maintained, retained, and motivated. Otherwise, staff performance and satisfaction could diminish, leading to employee turnover. 1.4 Importance of HRM Human resource management is an integral part of an organization. The following points show the importance of human resource management in an organization: 1. Quality of work-life: Quality of work refers to the overall quality or productivity of employees at their workplace. It tells about the employee’s impression of the physical and psychological productivity of employees at the workplace. The HR manager makes conscious efforts to maintain the quality of work at the workplace as it is directly related to employee productivity. This can be done by reducing the work-life stress and workload, providing rewards and recognition as well as any other financial benefits if possible. 2. Meeting demand and supply gap for human resources: Besides maintaining the physical resources in an organization, an HR manager ensures that appropriate human resources in an organization. They are responsible for finding the right fit for the organization to ensure high performance and productivity. This can be done through campus placements and other recruitment drives whenever needed. Also, unproductive employees can be laid off from the organization. 3. Training and overall development: Training and development are the continued efforts of any organization to boost employee productivity and performance. Spending money on training and development is an investment for an organization that will generate good future returns. This investment not only benefits employees but is also a major benefit for organizations in improving productivity scale. Training can be provided to new employees in the organization as well as to old employees to boost their productivity. These training sessions teach decision-making skills, leadership skills, building thought processes etc. 4. Employee motivation and retention: The major task of Human resource management is to build a sense of belongingness in employees. It is essential to motivate each employee so that they can work to their full potential. This can be done with the help of employee recognition programs. An employee getting recognition gets a purpose for their job, therefore motivating them to do better next time. Another method is to provide them with regular monetary benefits such as meal coupons and gift cards. 5. Building a healthy work culture: Healthy work culture plays an important part in any organization. The workplace should be safe, comfortable, and valued for employees. It is needed to bring the best out of employees. HR makes sure that the work culture is democratic and transparent. Employees should be provided with the power to present their ideas and point in the organization. This culture is found to be best for employees as well as organizations. The more happy the employees are, the more will be their productivity. 6. Employee wages and salaries: Appropriate compensation is necessary for employees so that they can feel the job’s worth. Compensation may be in the form of wages, additional benefits and perks or travel packages etc. 7. Maximizing profit and productivity: Human resource management helps to ensure how much personnel are required in which department. It also ensures that enough opportunities should be provided to existing employees of the organization for their growth and career opportunities. Such employees who work to achieve their personal growth are directly related to the growth of the organization. Thereby minimizing the cost and maximizing productivity. 8. Strategy Management: Human resource is an important aspect of any organization. HR managers work on and manage all the strategies laid out by top management and industry experts. It also takes part in the corporate decision and strategy making for all the employees in achieving their goals or targets. 9. Establishing corporate image: Every organization must have a good brand image in the industry. HRM plays an important role in building the brand image of an organization in front of external and internal stakeholders. Moreover, employees would be more willing to work for an organization which possesses a good image in the market. 1.5 Scope of HRM Human resource management has a very broad scope. HRM encompasses all important initiatives in an employee's career, from the time he or she joins an organization until he or she quits. The American Society for Training and Development (ASTD) did a thorough analysis in this sector and identified nine major areas of HRM activity. These are given below: Human Resource Planning Design of the Organization and Job Selection and Staffing Training and Development Organizational Development Compensation and Benefits Employee Assistance Union/Labour Relations Personnel Research and Information System a) Human Resource Planning: The goal of HR planning is to guarantee that the organization has the right people at the right time and in the right location. It generates a human resource inventory in order to assess current and future needs, availability, and potential shortfalls. As a result, HR Planning forecasts demand and supplies while also identifying sources of selection. HR Planning develops long- and short-term strategies to satisfy staffing needs. b) Design of Organization and Job: This is the process of defining the organization's structure, authority, relationships, and responsibilities. This will also imply the definition of job responsibilities for each role in the organization. This is accomplished through "job description". Another critical step is "job specification". Job specifications identify the characteristics of individuals who will be most suited for each job as described by the job description. c) Selection and Staffing: This is the process of recruitment and selection of staff. This involves matching people and their expectations with which the job specifications and career path available within the organization. d) Training and Development: This entails an organized effort to determine people' training needs in order to fulfill the knowledge and skills required not only to accomplish current work duties but also to satisfy the organization's future requirements. e) Organizational Development: This is an important aspect whereby “Synergetic effect” is generated in an organization i.e. healthy interpersonal and inter-group relationship within the organization. f) Compensation and Benefits: This is the domain of pay and salary administration in which wages and compensations are scientifically determined to meet fairness and equitable standards. Employee welfare measures, such as benefits and services, are also actively involved. g) Employee Assistance: Each employee is unique in character, personality, expectation and temperament. By and large each one of them faces problems every day. Some are personal some are official. In their case he or she remains worried. Such worries must be removed to make him or her more productive and happier. h) Union-Labour Relations: Healthy Industrial and Labour relations are very important for enhancing peace and productivity in an organization. This is one of the areas of HRM. i) Personnel Research and Information System: Knowledge of behavioural science and industrial psychology provides deeper insight into employees' expectations, goals, and conduct. Product technology and production methods have advanced, resulting in a working environment that is vastly different from the past. Globalization of the economy has raised competition enormously. The science of ergonomic provides better ideas for employees to execute their jobs more conveniently. Thus, continuous HR research is an inescapable demand. It must also take extra care to continuously improve the sharing of information through effective communication channels, with a focus on morale and motivation. Thus, human resource management encompasses all actions from personnel planning and recruitment to their departure from the firm. Every department and function inside a corporation requires human resources. As a result, human resource management has a broad and diverse scope. However, we can classify it into three key elements. The scope of HRM captures all activities starting from planning and recruitment of employees, until that time when they leave the organization. Every department and activity in an organization requires human resources. Therefore, the scope of human resource management is extensive and wide. However, we can classify it under three major aspects: 1. Personnel aspect: The objective here is to ensure the growth and development of employees in a manner that effectively contributes to organizational growth. This is basically direct manpower management that deals with personnel planning, hiring (recruitment and selection), induction and orientation, among many others. Personnel management also includes other aspects like performance appraisal, development of new skills, and incentives. 2. Welfare aspect: This is concerned with employees’ working conditions and amenities at the workplace. It includes an array of responsibilities and services like cleanliness, rest and lunchrooms, housing, transport, health and safety training, medical services, social security, and welfare funds. It covers other aspects, such as creating a better working environment, safeguarding machinery, unemployment benefits, maternity benefits, and family benefits. It also includes employee supervision, counselling, establishing, and maintaining cordial relationships with employees. It involves ensuring the active participation of both management and staff members. 3. Industrial Relations aspect: Its main objective is to safeguard the interests of employees. This can be done by establishing and maintaining industrial democracy to the extent it does not leave a negative impact on the organization. It is concerned with building relations with labour or employee unions, addressing their grievances, and settling disputes to maintain peace and harmony among employees – and between employees and the management of an organization. 1. 6 Functions of HRM The Functions of Human Resource Management (HRM) are to improve the value of leadership potential, top talent, employee retention rate, company goals, and the company’s long-term manageability at a higher maturity level than the one currently in place. The company and employees’ success depends heavily on human resource management, regardless of the sector or size of the organisation. Human Resources management has an important role to play in equipping organizations to meet the challenges of an expanding and increasingly competitive sector. Increase in staff numbers, contractual diversification and changes in demographic profile which compel the HR managers to reconfigure the role and significance of human resources management. The functions are responsive to current staffing needs, but can be proactive in reshaping organizational objectives. Some of the functions are as follows: 1. Managerial Function Managerial function includes a) Planning: It is pre-determined course of action. Planning pertain to formulating strategies of personnel programmes & changes in advance that will contribute to the organisational goals. In other words it involves planning of HR, requirements, selection, training etc. b) Organising: An organisation is a means to an end. It is essential to carry out the determined course of action. An organisation is a structure & a process by which a co-operative group of human beings allocates its task among its members, identifies relationship & integrates its activities towards a common objective. c) Directing: Activating employees at different level & making them contribute maximum to the organisation is possible through proper direction & motivation. Taping the maximum potentialities of the employees is possible through motivation & command. d) Controlling: After planning, organizing, & directing the actual performance of employees is checked, verified & compared with the plans. It the actual performance is found deviated from the plan; control measures are required to be taken. 2. Operative Functions The operating functions already outlined forms the entire gamut of day-to-day functions of HRM. The operative functions of HRM are related to specific activities like A) HR Resourcing: It is the first operative function of Human Resources Management (HRM). It is concerned with employing the people possessing the required kind and level of human resources necessary to achieve the organisational objectives. It covers functions such as job analysis, human resources planning, recruitment, selection, placement, induction and orientation. a) Job Analysis: It is the process of study & collection of information relating to the Role & Responsibilities of a specific job. Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials. - Preparation of job description, job specifications, job requirements and employee specifications which will help in identifying the nature, levels and quantum of human resources. - Providing the guides, plans and basis for job design and for all operative functions of HRM b) HR Planning: It is a process for determination & assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs, which would meet the needs of the organisation & which would provide satisfaction for the individuals involved. - Estimation of present and future requirements and supply of human resources based on objectives and long range plans of the organisation. - Calculation of net human resources requirements based on present inventory of human resources. - Taking steps to mould, change and develop the strength of existing employees in the organisation so as to meet the future human resources requirements. - Preparation of action programmes to get the rest of human resources from outside the organisation and to develop the human resources in terms of existing employees. c) Recruitment: It is the process of searching for prospective employees & stimulating them to apply for jobs in an organisation. - Identification of existing sources of applicants and developing them. - Creation/identification of new sources of applicants. - Stimulating the candidates to apply for jobs in the organisation. - Striking a balance between internal and external sources. d) Selection: It is the process of ascertaining the qualifications, experiences, skills, knowledge etc of an applicant with a view to appraising his/her suitability to a job. - Creating and developing valid and reliable testing techniques. - Formulating interviewing techniques. - Checking of references. - Setting up a medical examination policy and procedure. - Line managers decision. - Sending letters of appointment and rejection. - Employing the selected candidates who report for duty. e) Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching employee specifications with job requirements. - Counselling the functional managers regarding placement. - Conducting follow-up study, appraising employee performance in order to determine employee adjustment with the job. - Correcting misplacements. f) Induction & Orientation: Induction & orientation are the techniques by which a new employee is rehabilitated in the changed surrounding & introduced to the practices, policies, purposes & people of the organisation. - Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc. - Introduce the employee to the people with whom he must work such as peers, supervisors, and subordinates. - Mould the employees’ attitude by orienting him to the new working and social environment. B) Performance and Development: It is the process of improving, moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and organisational requirements. a) Performance Appraisal: It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. It includes: - Developing policies, procedures, and techniques. - Helping the functional managers. - Reviewing of reports and consolidation of reports. - Evaluating the effectiveness of various programmes. b) Training: It is the process of imparting to the employees technical and operating skills and knowledge. It includes: - Identification of training needs of the individuals and the company. - Developing suitable training programmes. - Helping and advising line management in the conduct of training programmes. - Imparting of requisite job skills and knowledge to employees. - Evaluating the effectiveness of training programmes. c) Management Development: It is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees. It includes: - Identification of the areas in which management development is needed. - Conducting development programmes. - Motivating the executives. - Designing special development programmes for promotions. - Using the services of specialists, and/or utilising of the institutional executive development programmes. - Evaluating the effectiveness of executive development programmes. d) Career Planning and Development: It is the planning of employees career and implementation of career plans by means of education, training, job search and acquisition of work experiences. It includes internal and external mobility. e) Internal Mobility: It includes vertical and horizontal movement of an employee within an organisation. It consists of transfer, promotion and demotion. f) Transfer: It is the process of placing employees in the same level jobs where they can be utilised more effectively in consistence with their potentialities and needs of the employees and the organisation. It also deals with: - Developing transfer policies and procedures. - Guiding employees and line management on transfers. - Evaluating the execution of transfer policies and procedures. g) Promotion: It deals with upward reassignment given to an employee in the organisation to occupy higher position which commands better status and/or pay keeping in view the human resources of the employees and the job requirements. This function covers. - Formulating of equitable, fair and consistent promotion policies and procedures. - Advising line management and employees on matters relating to promotions. - Evaluating the execution of promotion policies and procedures. h) Demotion: It deals with downward reassignment to an employee in the organisation. - Develop equitable, fair and consistent demotion policies and procedures. - Advising line managers on matters relating to demotions. - Oversee the implementations of demotion policies and procedures. i) Retention and Retrenchment Management: Employers prefer to retain more talented employees while they retrench less talented employees. Employers modify existing human resource strategies and craft new strategies in order to pay more salaries, provide more benefits and create high quality of work life to retain the best employees. And managements pay less to the less talented employees and plan to retrench the misfits as well as unwanted employees depending upon the negetive business trends. j) Change and Organisation Development: Change implies the creation of imbalances in the existing pattern or situation. Organisation development is a planned process designed to improve organisational effectiveness and health through modifications in individual and group behaviour, culture and systems of the organisation using knowledge and technology of applied behavioural sciences. C) Compensation Management: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc. a) Job Evaluation: It is the process of determining relative worth of jobs. - Select suitable job evaluation techniques. Classify jobs into various categories. - Determining relative value of jobs in various categories. b) Wage and Salary Administration: This is the process of developing and operating a suitable wage and salary programme. It covers: - Conducting wage and salary survey. - Determining wage and salary rates based on various factors. - administering wage and salary programmes. - Evaluating its effectiveness. c) Incentives: It is the process of formulating, administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary. It includes: - Formulating incentive payment schemes. - Helping functional managers on the operation. - Review them periodically to evaluate effectiveness. d) Bonus: It includes payment of statutory bonus according to the Payment of Bonus Act, 1965 and its latest amendments. e) Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees and to meet their life’s contingencies. These benefits include Disablement benefit. - Housing facilities. - Educational facilities to employees and children. - Canteen facilities. - Recreational facilities. - Conveyance facilities. - Credit facilities. - Legal clinics. - Medical, maternity and welfare facilities. - Company stores. f) Social Security Measures: Managements provide social security to their employees in addition to the fringe benefits. These measures include: - Workmen‟s compensation to those workers (or their dependents) who involve in accidents. - Maternity benefits to women employees. - Sickness benefits and medical benefits. - Disablement benefits/allowance. D) Integration: Practicing various human resources policies and programmes like employment, development, compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management. It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situations in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. It includes Employee engagement - Understanding and applying the models of perception, personality, learning, intra- and inter-personal relations, intra- and inter-group relations. - Motivating the employees. - Boosting employee morale. - Developing the communication skills. - Developing the leadership skills. - Grievance redressal - Handling disciplinary cases by means of an established disciplinary procedure. - Counseling the employees in solving their personal, family and work problems and releasing their stress, strain and tensions. - Providing a comfortable work environment by reducing fatigue, monotony, boredom and industrial accidents. - Improving quality of work life of employees through participation and other means. E) Employee Relations: The term „industrial relations‟ refers to the study of relations among employees, employers, government and trade unions. Industrial relations include: - Trade unionism - Collective bargaining - Industrial conflicts - Workers‟ participation in management 1.7 Role of Human Resource Department The primary task of the HR department is to ensure that the organization’s human resources are utilized and managed as effectively as possible. Human resource administrators help design and implement policies and programmes that enhance human abilities and improve the organization’s overall effectiveness. Top executives have learned sometimes the hard way - that inattention to personnel relations and neglect of HR programs are often the cause of poor labour management relations, excessive absenteeism and turnover, lawsuits charging discrimination, and substandard productivity. More and more leaders of public and private organization recognize that people are the organization’s primary resource and acknowledge the HR department’s role in developing the human resource. Qualities of a good Human Resource Manager Intellectual Skill Good Educator Discriminator Executor Leader Humanist Visionary A human resource manager, charged with fulfilling the objectives of an organisation, should be a leader with high intellectual powers, a visionary and a philosopher who provides the initiative to shape the future in terms of leading the human beings in an organization towards more prosperous and progressive policies. 1. Intellectual Skill: The basic skill in the human resource field as compared to technologists or financial experts is the skill to communicate, articulate, understand and above all, to be an expert when it comes to putting policies and agreements in black and white. The personnel man’s skill lies in his command over the language. A personnel man has to deal with employees and he must possess the skills of conducting fruitful and systematic discussions and of communicating effectively. He should also be in a position to formulate principles and foresee the problems of the organisation. This means that he would require the mental ability to deal with his people in an intelligent manner as well as to understand what they are trying to say. 2. Good Educator: It is not enough that a human resource man has command-over the language, which, however, remains his primary tool. He should be deeply interested in learning and also in achieving growth. Basically, human beings like to grow and realise their full potential. In order to harmonies the growth of individuals with that of the organisation, a personnel administrator must not only provide opportunities for his employees to learn, get the required training and assimilate new ideas but also he himself should be a teacher. A personnel man who simply pushes files and attends labour courts for conciliation purposes and other rituals of legal procedure for the settlement of industrial disputes is not a personnel administrator of the future. 3. Discriminator: A human resource administrator must have the capacity to discriminate between right and wrong, between that which is just and unjust and merit and non-merit. In other words, he should be a good judge when he sits on a selection board, a fair person when he advises on disciplinary matters and a good observer of right conduct in an organisation. 4. Executor: The human resource man must execute the decisions of the management and its policies with speed, accuracy and objectivity. He has to streamline the office, tone up the administration and set standards of performance. He has to coordinate the control functions in relation to the various other divisions and, in doing so he should be in a position to bring unity of purpose and direction in the activities of the personnel department. He must ask relevant questions and not be merely involved in the office routine whereby the status quo is maintained. He should have the inquisitiveness to find out causes of delay, tardy work and wasteful practices, and should be keen to eliminate those activities from the personnel functions which have either outlived their utility or are not consistent with the objectives and purposes of the organisation. 5. Leader: Being basically concerned with people or groups of people, and being placed in the group dynamics of various political and social functions of an organisation, a Human resource man must not shirk the role of leadership in an organisation. He, by setting his own example and by working towards the objectives of sound personnel management practices, must inspire his people and motivate them towards better performance. He should resolve the conflicts of different groups and build up teamwork in the organisation. 6. Humanist: Deep faith in human values and empathy with human problems, especially in less developed countries, are the sine qua non for a Human resource man. He has to deal with people who toil at various levels and partake of their joys and sorrows. He must perform his functions with sensitivity and feeling. 7. Visionary: While every leading function of an organisation must evolve its vision of the future, the primary responsibility for developing the social organisation towards purposive and progressive action falls on the personnel man. He should be a thinker who sets the pace for policy- making in an organisation in the area of human relations and should gradually work out new patterns of human relations management consistent with the needs of the organization and the society. He must ponder on the social obligations of the enterprise, especially if it is in the public sector, where one has to work within the framework of social accountability. He should be in close touch with socio-economic changes in the country. He should be able to reasonably forecast future events and should constantly strive to meet the coming challenges. 1.8 Growth and Emerging Trends of Human Resource Management in India. In an ever-evolving world driven by technological advancements and shifting work dynamics, the realm of Human Resource Management (HRM) is undergoing a transformation like never before. The role of HR professionals is no longer confined to traditional administrative tasks but has expanded to encompass strategic planning, data analysis, and fostering a dynamic workplace culture. Several emerging trends and challenges are shaping the landscape of HRM which are as follows: 1. Technology and Automation: Technology has been a driving force behind revolutionary changes in HRM. Automation and Artificial Intelligence (AI) are streamlining processes, from recruitment to employee engagement. Chatbots assist in answering employee queries, algorithms help identify suitable candidates, and data analytics predict workforce trends. While this enhances efficiency, it also raises concerns about job displacement and the need for upskilling. 2. Remote Work and Flexibility: The COVID-19 pandemic accelerated the adoption of remote work, turning it into a mainstay rather than an exception. HRM had to swiftly adapt to managing remote teams, ensuring productivity, and maintaining employee well-being. As remote and hybrid work models become more common, HR professionals need to focus on building virtual team dynamics, measuring performance equitably, and addressing the challenges of work-life balance. 3. Employee Well-being and Mental Health: The future of HRM places a strong emphasis on employee well-being, including mental health support. The pandemic highlighted the need for organizations to address the holistic wellness of their workforce. Forward-looking HR departments are implementing initiatives that promote a healthy work-life balance, provide counselling services, and create a supportive environment where employees feel valued and understood. 4. Diversity, Equity, and Inclusion (DEI): DEI is no longer just a buzzword; it's a critical aspect of HRM. The future demands that organizations not only embrace diversity but also cultivate an inclusive and equitable workplace. HR professionals are expected to implement policies that prevent discrimination, ensure pay equity, and provide equal growth opportunities for employees from all backgrounds. 5. Continuous Learning and Upskilling: The rapid pace of technological advancement necessitates a culture of continuous learning. HRM is evolving to become a catalyst for upskilling and reskilling initiatives. This involves identifying skill gaps, curating relevant training programs, and fostering a culture that values learning as a lifelong pursuit. 6. Data-Driven Decision Making: Data is transforming the way HR functions. From predicting employee turnover to analyzing engagement levels, data-driven insights enable HR professionals to make informed decisions. However, this trend also poses challenges related to data privacy and ethical considerations when utilizing personal employee data. 7. Agile Performance Management: The traditional annual performance review is giving way to agile and ongoing feedback mechanisms. Regular check-ins, real-time feedback, and goal setting are becoming integral to HRM strategies. This approach not only enhances employee performance but also fosters a culture of open communication. 8. Remote Onboarding and Company Culture: As remote work becomes more prevalent, HRM must find innovative ways to onboard new employees and integrate them into the company culture. Virtual onboarding processes, online team-building activities, and remote mentorship programs are emerging trends to ensure new hires feel connected and engaged from day one. Self-Assessment Questions: 1. What is HRM? Explain its features. 2. Define HRM. Explain the importance and objectives of HRM. 3. Elucidate the role/function performed by Human Resource Management. 4. What responsibilities does the Human Resources department fulfill in an organization? 5. What characteristics should an HR manager embody? Short Notes 1. Scope of HRM 2. Emerging trends in HRM