INTRODUCTION TO
HUMAN RESOURCE MANAGEMENT
Human Resource Management
Human
resource management (HRM) is the process of employing people, training them,
compensating them, developing policies relating to them, and developing
strategies to retain them. As a field, HRM has undergone many changes over the
last twenty years, giving it an even more important role in today’s
organizations. In the past, HRM meant processing payroll, sending birthday
gifts to employees, arranging company outings, and making sure forms were
filled out correctly; in other words, more of an administrative role rather
than a strategic role crucial to the success of the organization. Scott,
Clothier, and Spriegel have defined HRM as that branch of management that is
responsible on a staff basis for concentrating on those aspects of operations
that are primarily concerned with the relationship of management to employees
and employees to employees and with the development of the individual and the
group. HRM is responsible for maintaining good human relations in the
organization. It is also concerned with the development of individuals and
achieving integration of goals of the organization and those of the
individuals. Northcott considered HRM as an extension of general management,
that of promoting and stimulating every employee to make his fullest
contribution to the purpose of the business.
HRM
is not something that could be separated from the basic managerial function. It
is a major component of the broader managerial function. French Wendell,
defines HRM as the recruitment, selection, development, utilization,
compensation, and motivation of human resources by the organization. According
to Edwin B. Flippo, Human resource management is the planning, organizing,
directing, and controlling of the
procurement, development, resources to the end that individual and societal
objectives are accomplished. This definition reveals that HRM is that aspect of
management, which deals with the planning, organizing, directing, and
controlling the personnel functions of the enterprise.
Objectives
of Human Resource Management
According
to Scott,Clothier, and Spriegal, the objectives of HRMin an organization are to
obtain maximum individual development, desirable working relationships between
employers and employees. However, specific objectives of HRM can include; to
ensure effective utilization of human resources, all other organizational resources
will be efficiently utilized by the human resources; to establish and maintain
an adequate organizational structure of relationship among all the members of
an organizationbydividing of organizationtasksinto functions, positions,
andjobs, and by defining clearly the responsibility, accountability, authority
for each job and its relation with other jobs in the organization; to generate
maximum development of human resources within the organization by offering
opportunities for advancement to employeesthrough training and education; to
ensure respect for human beings by providing various services and welfare
facilities to the personnel; to ensure reconciliation of individual/group goals
with those of the organization in such a manner that the personnel feel a sense
of commitment and loyalty towards it; to identify and satisfy the needs of
individuals by offering various monetary and non- monetary rewards.
The Nature of Human Resource Management
The
emergence of human resource management can be attributed to the writings of the
human relationists who attached great significance to the human factor.
Lawrence Appley remarked “Management” is personnel administration. This view is
partially true as management is concerned with the efficient and effective use
of both human as well as non-human resources. Thus, HRM is only a part of the
management process. At the same time, it must be recognized that HRM is
inherent in the process of management. This function is performed by all the
managers. A manager to get the best of his people must undertake the basic
responsibility of selecting people who will work under him and help develop,
motivate, and guide them. However, he can take the help of the specialized
services of the personnel department in discharging this responsibility. The
nature of the HRM has been highlighted based on these features; Inherent Part
of Management: HRM is inherent in the process of management. This function is
performed by all the managers throughout the organization. If a manager is to get
the best of his people, he must undertake the basic responsibility of selecting
people who will work under him. Pervasive Function: HRM is a pervasive function
of management. It is performed by all managers at various levels in the
organization. It is not a responsibility that a manager can leave completely to
someone else. However, he may secure advice and help in managing people from
experts who have special competence in people management and industrial
relations. Basic to all Functional Areas: HRM permeates all the functional
areas of management such as production management, financial management, and
marketing management. That is every manager from top to bottom, working in any
department has to perform the personnel functions. People-Centered: HRM is
people-centered and is relevant in all types of organizations. It is concerned
with all categories of personnel from top to the bottom of the organization
such as Blue-collar workers (Employees those working on machines and engaged in
loading, unloading, etc.), managerial and non-managerial personnel,
professionals (Chartered Accountant, Company Secretary, Lawyer, etc.) and
nonprofessional personnel. Personnel Activities or Functions: HRM involves
several functions concerned with the management of people at work. It includes
manpower planning, employment, placement, training, appraisal, and compensation
of employees, and so on. Continuous Process: HRM is not one short function. It
must be performed continuously if the organizational objectives are to be achieved
smoothly. Based on Human Relations: HRM is concerned with the motivation of
human resources in the organization. Every person has different needs,
perceptions, and expectations. The managers should give due attention to these
factors. They require human relations skills to deal with people at work. Human
relations skills are also required in training performance appraisal, transfer,
and promotion of subordinates.
Objectives of Human Resource Management
According
to Scott,Clothier, and Spriegal, the objectives of HRMin an organization are to
obtain maximum individual development, desirable working relationships between
employers and employees. However, specific objectives of HRM can include; to
ensure effective utilization of human resources, all other organizational
resources will be efficiently utilized by the human resources; to establish and
maintain an adequate organizational structure of relationship among all the
members of an organizationbydividing of organizationtasksinto functions, positions,
andjobs, and by defining clearly the responsibility, accountability, authority
for each job and its relation with other jobs in the organization; to generate
maximum development of human resources within the organization by offering
opportunities for advancement to employeesthrough training and education; to
ensure respect for human beings by providing various services and welfare
facilities to the personnel; to ensure reconciliation of individual/group goals
with those of the organization in such a manner that the personnel feel a sense
of commitment and loyalty towards it; to identify and satisfy the needs of
individuals by offering various monetary and non- monetary rewards.
Importance of Human Resource Management
Human Resource Management Challenges
1. Containing
Costs
If
you wish to ask most business owners what their biggest challenges are, they
will likely tell you that cost management is a major factor in the success or
failure of their business. In most businesses today, the people part of the
business is the most likely place for cuts when the economy isn’t doing well.
Consider the expenses that involve the people part of any business; healthcare
benefits, training costs, hiring process costs, and many more. These costs cut
into the bottom line of any business. The trick is to figure out how much, how
many, or how often benefits should be offered, without sacrificing employee
motivation.
2. Technology
Technology
has greatly impacted human resources and will continue to do so as new
technology is developed. Through the use of technology, many companies have
virtual workforces that perform tasks from nearly all corners of the world.
When employees are not located just down the hall, management of these human
resources createssome unique challenges. For example, technology creates an
even greater need to have multicultural or diverse understanding. Since many
people will work with individuals from across the globe, cultural sensitivity
and understanding is the only way to ensure the use of technology results in
increased productivity rather than decreased productivity due to
miscommunications. Technology also creates a workforce that expects to be
mobile.
3. Economy
The
economic status in a country usually results in tough times for businesses too.
High unemployment and layoffs are HRM and managerial issues. If a human
resource manager works for a unionized company, union contracts are the guiding
source when having to downsize owing to a tough economy. Besides union
restrictions, legal restrictions on who is let go and the process followed to
let someone go should be on the forefront of any manager’s mind when he or she
is required to lay off people because of a poor economy. Dealing with
performance issues and measuring performance can be considerations when it is
necessary to lay off employees. Likewise, in a growth economy, the HR manager
may experience a different kind of stress. Massive hiring to meet demand might
occur if the economy is doing well.
4. Size
of workforce
The
size of organizations is increasing. A large number of multinational
organizations have grown over the years. The number of people working in the
organization has also increased. The management of an increased workforce might
create new problems and challenges as the workers are becoming more conscious
of their rights.
5. Increase
in educational level
The
governments of various countries are taking steps to eradicate illiteracy and
increase the education level of their citizens. Educated consumers and workers
will create a very tough task for future managers.
6. Changes
in the political environment
There
may be greater Government interference in business to safeguard the interests
of workers, consumers, and the public at large. The government’s participation
in trade, commerce, and industry will also pose many challenges before
management. The government may restrict the scope of the private sector in
certain areas based on public interest.
7. Aspirations
of employee
Considerable
changes have been noted in the worker of today in comparison to his counterpart
of the 1950s. The workers are becoming more aware of their higher-level needs
and this awareness would intensify further in the future workers.
8. Changing
the psychosocial system
In
the future, organizations will be required to make use of advanced technology
in accomplishing their goals while satisfying human needs. In the traditional
bureaucratic model, the organizations were designed to achieve technical
functions with little consideration given to the psychosocial system. But
future management would be required to ensure effective participation of lower
levels in the management of the organization system.
9. Mobility
of professional personnel
Organizations
will expand the use of boundary agents whose primary function will be achieving
coordination with the environment. One interesting fact will be an increase in
the mobility of various managerial and professional personnel between
organizations. As individuals develop greater technical and professional
expertise, their services will be in greater demand by other organizations in
the environment.
1 Changes in the legal environment
Many
changes are taking place in the legal framework within which the industrial
relations systems in the country are now functioning. It is the duty of the
human resource professional or personnel executive to be aware of these changes
and to bring about necessary adjustments within the organizations so that
greater utilization of human resources can be achieved. This, indeed, is and
would remain a major challenge for the personnel executive.
