Unit 1: Basic Concept of Human Resource Management PDF

Unit 1:- BASIC CONCEPT OF HUMAN RESOURCE MANAGEMENT  Introduction : Human beings are social beings and hardly ever live and work in isolation. We always plan, develop and manage our relations both consciously and unconsciously. The relations are the outcome of our actions and depend to a grea...

Unit 1:- BASIC CONCEPT OF HUMAN RESOURCE MANAGEMENT  Introduction : Human beings are social beings and hardly ever live and work in isolation. We always plan, develop and manage our relations both consciously and unconsciously. The relations are the outcome of our actions and depend to a great extent upon our ability to manage our actions. From childhood each and every individual acquire knowledge and experience on understanding others and how to behave in each and every situations in life. Later we carry forward this learning and understanding in carrying and managing relations at our workplace. The whole context of Human Resource Management revolves around this core matter of managing relations at work place. Since mid 1980’s Human Resource Management (HRM) has gained acceptance in both academic and commercial circle. HRM is a multidisciplinary organizational function that draws theories and ideas from various fields such as management, psychology, sociology and economics. There is no best way to manage people and no manager has formulated how people can be managed effectively, because people are complex beings with complex needs. Effective HRM depends very much on the causes and conditions that an organizational setting would provide. Any Organization has three basic components, People, Purpose, and Structure. The goal of HRM is to maximize employees’ contributions in order to achieve optimal productivity and effectiveness, while simultaneously attaining individual objectives (such as having a challenging job and obtaining recognition), and societal objectives (such as legal compliance and demonstrating social responsibility).  What is Human Resource Management? HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match an organization’s needs to the skills and abilities of its employees.  Definitions of HRM Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization’s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo) 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” In short Human Resource Management (HRM) can be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.  Nature of HRM HRM is a management function that helps manager’s to recruit, select, train and develop members for an organization. HRM is concerned with people’s dimension in organizations. The following constitute the core of HRM 1. HRM Involves the Application of Management Functions and Principles. The functions and principles are applied to acquiring, developing, maintaining and providing remuneration to employees in organization. 2. Decision Relating to Employees must be integrated. Decisions on different aspects of employees must be consistent with other human resource (HR) decisions. 3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will result in betterment of services to customers in the form of high quality products supplied at reasonable costs. 4. HRM Functions are not confined to Business Establishments Only but applicable to non- business organizations such as education, health care, recreation and like. HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness.  Scope of HRM The scope of HRM is indeed vast. All major activities in the working life of a worker – from the time of his or her entry into an organization until he or she leaves the organizations comes under the purview of HRM. The major HRM activities include HR planning, job analysis, job design, employee hiring, employee and executive remuneration, employee motivation, employee maintenance, industrial relations and prospects of HRM. The scope of Human Resources Management extends to: All the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people as employees in any type of organization. All the dimensions related to people in their employment relationships, and all the dynamics that flow from it. The scope of HRM is really vast. All major activities and the working life of a worker – from the time of his or her entry into an organization until he or she leaves it comes under the purview of HRM. American Society for Training and Development (ASTD) conducted fairly an exhaustive study in this field and identified nine broad areas of activities of HRM. 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 objective of HR Planning is to ensure that the organization has the right types of persons at the right time at the right place. It prepares human resources inventory with a view to assess present and future needs, availability and possible shortages in human resource. Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning develops strategies both long-term and short-term, to meet the man-power requirement. b) Design of Organization and Job: This is the task of laying down organization structure, authority, relationship and responsibilities. This will also mean definition of work contents for each position in the organization. This is done by “job description”. Another important step is “Job specification”. Job specification identifies the attributes of persons who will be most suitable for each job which is defined by job description. Personnel Research and Information System Human resource planning Design of the Organization and Job Selection and Staffing Training and Development Organizational Development Employee Assistance Compensation and Benefits Union/Labour Relations 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 involves an organized attempt to find out training needs of the individuals to meet the knowledge and skill which is needed not only to perform current job but also to fulfil the future needs of the organization. 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 area of wages and salaries administration where wages and compensations are fixed scientifically to meet fairness and equity criteria. In addition labour welfare measures are involved which include benefits and services. 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 happy. 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 on behavioural science and industrial psychology throws better insight into the workers expectations, aspirations and behaviour. Advancement of technology of product and production methods have created working environment which are much different from the past. Globalization of economy has increased competition many fold. Science of ergonomics gives better ideas of doing a work more conveniently by an employee. Thus, continuous research in HR areas is an unavoidable requirement. It must also take special care for improving exchange of information through effective communication systems on a continuous basis especially on moral and motivation. HRM is a broad concept; personnel management (PM) and Human resource development (HRD) are a part of HRM.  Functions of HRM 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. For example personal objectives is sought to be realized through functions like remuneration, assessment etc. The functions can be grouped as follows:  Strategic HR Management: As a part of maintaining organizational competitiveness, strategic planning for HR effectiveness can be increased through the use of HR metrics and HR technology. Human resource planning (HRP) function determine the number and type of employees needed to accomplish organizational goals. HRP includes creating venture teams with a balanced skill-mix, recruiting the right people, and voluntary team assignment. This function analyses and determines personnel needs in order to create effective innovation teams. The basic HRP strategy is staffing and employee development.  Equal Employment Opportunity: Compliance with equal employment opportunity (EEO) laws and regulations affects all other HR activities.  Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to fill jobs in an organization. Job analysis, recruitment and selection are the main functions under staffing. Workers job design and job analysis laid the foundation for staffing by identifying what diverse people do in their jobs and how they are affected by them. Job analysis is the process of describing the nature of a job and specifying the human requirements such as knowledge, skills, and experience needed to perform the job. The end result of job analysis is job description. Job description spells out work duties and activities of employees. Through HR planning, managers anticipate the future supply of and demand for employees and the nature of workforce issues, including the retention of employees. So HRP precedes the actual selection of people for organization. These factors are used when recruiting applicants for job openings. The selection process is concerned with choosing qualified individuals to fill those jobs. In the selection function, the most qualified applicants are selected for hiring from among the applicants based on the extent to which their abilities and skills are matching with the job.  Talent Management and Development: Beginning with the orientation of new employees, talent management and development includes different types of training. Orientation is the first step towards helping a new employee to adjust himself to the new job and the employer. It is a method to acquaint new employees with particular aspects of their new job, including pay and benefit programmes, working hours and company rules and expectations. Training and Development programs provide useful means of assuring that the employees are capable of performing their jobs at acceptable levels and also more than that. All the organizations provide training for new and in experienced employee. In addition, organization often provide both on the job and off the job training programmes for those employees whose jobs are undergoing change. Likewise, HR development and succession planning of employees and managers is necessary to prepare for future challenges. Career planning has developed as result of the desire of many employees to grow in their jobs and to advance in their career. Career planning activities include assessing an individual employee’s potential for growth and advancement in the organization. Performance appraisal includes encouraging risk taking, demanding innovation, generating or adopting new tasks, peer evaluation, frequent evaluations, and auditing innovation processes. This function monitors employee performance to ensure that it is at acceptable levels. This strategy appraises individual and team performance so that there is a link between individual innovativeness and company profitability. Which tasks should be appraised and who should assess employees’ performance are also taken into account.  Total Rewards: Compensation in the form of pay, incentives and benefits are the rewards given to the employees for performing organizational work. Compensation management is the method for determining how much employees should be paid for performing certain jobs. Compensation affects staffing in that people are generally attracted to organizations offering a higher level of pay in exchange for the work performed. To be competitive, employers develop and refine their basic compensation systems and may use variable pay programs such as incentive rewards, promotion from within the team, recognition rewards, balancing team and individual rewards etc. This function uses rewards to motivate personnel to achieve an organization’s goals of productivity, innovation and profitability. Compensation is also related to employee development in that it provides an important incentive in motivating employees to higher levels of job performance to higher paying jobs in the organization. Benefits are another form of compensation to employees other than direct pay for the work performed. Benefits include both legally required items and those offered at employer’s discretion. Benefits are primarily related to the area of employee maintenance as they provide for many basic employee needs.  Risk Management and Worker Protection: HRM addresses various workplace risks to ensure protection of workers by meeting legal requirements and being more responsive to concerns for workplace health and safety along with disaster and recovery planning.  Employee and Labour Relations: The relationship between managers and their employees must be handled legally and effectively. Employer and employee rights must be addressed. It is important to develop, communicate, and update HR policies and procedures so that managers and employees alike know what is expected. In some organizations, union/management relations must be addressed as well. The term labour relation refers to the interaction with employees who are represented by a trade union. Unions are organization of employees who join together to obtain more voice in decisions affecting wages, benefits, working conditions and other aspects of employment. With regard to labour relations the major function of HR personnel includes negotiating with the unions regarding wages, service conditions and resolving disputes and grievances.  Emerging Trends The Future of Work: Emerging Trends in HRM in Detail. The world of work is undergoing a significant transformation, and Human Resource Management (HRM) is at the forefront of navigating this change. Here's a closer look at some key emerging trends that are reshaping the HR landscape. 1. Hybrid Work is here to Stay: The rise of remote work during the pandemic has led to a new normal: hybrid models that combine in-office and remote work. HR needs to develop strategies to keep employees engaged and connected in this new landscape. 2. Employee Experience Takes Centre Stage: It's not just about a pay check anymore. Today's employees seek a positive company culture, opportunities for growth, and a  healthy work-life balance. HR plays a crucial role in designing and promoting a work environment that fosters employee well-being and satisfaction. 3. Tech is Transforming HR: Artificial intelligence (AI) and data analytics are streamlining HR processes, from automated recruitment to performance management. HR is leveraging technology to free up time for more strategic work. 4. Focus on Global Expansion: Remote work makes it easier than ever to tap into a global talent pool. HR is adapting to source, recruit, and on board international employees, considering cultural sensitivities and fostering a diverse and inclusive workplace. 5. The Rise of People Analytics: HR is using data to make better decisions about everything from talent acquisition to retention. Data analytics helps HR identify trends, measure the effectiveness of programs, and predict future workforce needs.  ROLE OF HRM :- Human Resources (HR) plays a vital role in any organization by keeping the workforce happy, productive, and following the rules. Here's a breakdown of their key jobs:  Finding Great People: HR helps recruit, interview, and hire talented employees who are a good fit for the company.  Happy Employees, Happy Workplace: HR manages benefits, training, and company culture to keep employees motivated and engaged.  Keeping Things Fair: HR ensures everyone is treated according to company policies and employment laws.  Numbers and Records: HR handles payroll, keeps track of employee information, and makes sure everything is documented properly. Basically, HR is like the backbone of a company's workforce, making sure everything runs smoothly for both the employees and the business.  CHALLENGES IN MANAGING HRM :- HR professionals face a number of challenges in today's workplace. Here are some of the biggest hurdles they need to overcome:  1. Finding Top Talent: In a competitive job market, attracting and hiring the best employees can be tough. HR needs to find creative ways to stand out and showcase what makes their company a great place to work. 2. Keeping Employees Happy: Today's employees have high expectations. HR needs to create a positive work environment that offers opportunities for growth, work-life balance, and well-being to keep employees engaged and prevent them from leaving. 3. Managing a Changing Workforce: The rise of remote work, multi-generational teams, and a focus on diversity, equity, and inclusion (DE&I) means HR needs to be adaptable and develop strategies to manage a more complex workforce. 4. Keeping Up with Technology: New technologies like AI are transforming HR processes. HR needs to stay informed and embrace these advancements to improve efficiency and decision-making. 5. Balancing Work and Compliance: HR needs to ensure the company follows all employment laws and regulations, while also fostering a positive and flexible work environment for employees. These are just some of the challenges HR faces. By staying innovative and adaptable, HR professionals can play a key role in an organization's success.  Hrm In Changing Environment The world of work is constantly evolving, and Human Resource Management (HRM) needs to adapt to keep pace. Here are some key points to consider about HRM in a changing environment: Challenges:  Finding & Keeping Talent: A competitive job market and changing employee expectations make attracting and retaining top talent a constant challenge.  Managing a Diverse Workforce: HRM needs to adapt to a more diverse workforce with varying backgrounds, needs, and work styles.  Embracing Technology: New technologies like AI and automation are transforming HR processes, requiring continuous learning and adaptation.  Remote & Hybrid Work Models: HR needs to develop strategies for managing a workforce that may not always be physically present in the office.  Focus on Employee Wellbeing: Keeping employees engaged and healthy requires a focus on work-life balance, mental health, and overall well-being. Opportunities:  Data-Driven HR: Using data analytics to make evidence-based decisions about talent acquisition, development, and retention.  Reskilling & Up skilling: Preparing the workforce for the future by providing opportunities to learn new skills and adapt to changing needs.   Building a Strong Employer Brand: Creating a positive and attractive company culture to stand out in the competitive job market.  Improving Employee Experience: Fostering a positive work environment that promotes engagement, productivity, and satisfaction.  Promoting Diversity & Inclusion: Creating a workplace where everyone feels valued and respected, leveraging the strengths of a diverse workforce. How HR Can Adapt:  Focus on Strategic Planning: Align HR strategies with the overall organizational goals to ensure a talent pool that contributes to success.  Continuous Learning: HR professionals need to stay updated on the latest trends and technologies in the field.  Embrace Flexibility: Develop adaptable HR policies and practices to accommodate a changing workforce and work styles.  Invest in Technology: Leverage HR technology tools to streamline processes, improve efficiency, and gain data-driven insights.  Focus on Employee Communication: Keep employees informed and engaged through clear and transparent communication. By embracing change and focusing on these key areas, HRM can play a vital role in an organization's success in a constantly evolving environment.