Vaish mahila mahavidhyalya rohtak

HR Challenges
 COMPANY PROFILE
DESAN MEIN DES HARYANA JIT DUDH DAHI KA KHANA……
Haryana is the region where milk is an important constituent of the daily fare. The Haryana state
came into existence on the 1st day of November 1966 as a separate state of union of India. Earlier
to this day, the state was a part of combined Punjab state. For the development of dairy activities,
the state govt. formed a corporation in the public sector under the name and style of “HARYANA
DAIRY DEVLOPMENT CORPORATION LTD” (HDDC) with its registered office at
Chandigarh. HDDC provided the marketing facilities to the milk producers for their surplus
quantity of milk products, the HDDC set up its first milk plant in the heart of the state in the city of
JIND with an installed capacity of 50000 liters per day. The JIND plant came into existence in the
year 1969 and the infrastructure enabled the milk plant to process the milk and manufacture
GHEE, BUTTER and POWDER under the brand name of VITA.

It was the time when the success of ANAND PATTERN co-operative milk producer’s societies
was on everyone’s mind. NATIONAL DAIRY DEVELOPMENT BOARD (NDDB), ANAND
AND INDIAN DAIRY CORPOTATION (a govt. of India venture) decided to replicate the
ANAND PATTERN for the purpose. It is primarily a three-tier system i.e. state level ‘CO-
OPERATIVE FEDERTION’, district level ‘MILK UNIONS’ and village level ‘MILK
SOCIETIES’. All these work on the co-operative system.

• Organization of village level milk societies on ANAND PATTERN.

• Purchase of milk testing equipment, stationery and balanced cattle feed etc. from the
manufacturers in bulk and supply the same to the societies.

• Supervise the working of the societies through its staff.

The union was paid a fixed amount of commission on the quantity of milk so collected by the co-
operative societies by the corporation to meet its expenses.

To replicate further the ANAND PATTERN in the state of Haryana, a state federation was formed
under the name and style of “Haryana Dairy Development Co-operative Federation Ltd.” w.e.f.
1.4.1977 and all the milk plants, setup by the corporation, along with the staff were transferred to
the federation on lease basis. Even after the formation of state level federation, responsibilities and
activities of the milk unions remained the same as before at the district level.
In the year 1982, the federation decided to transfer its “P and I” activities along with the staff to the
ten district milk unions existing at the time, in view of the demand for implementation of ANAND
PATTERN in the state in true spirit. But the powers of deciding the policies in regards to milk
procurement i.e. milk procurement rates to be given to the societies, rate of commission to the
union to meet its expenses and milk processing facilities remained with the federation.

Initially the federation was declaring milk procurement rates based on the realization of the value
of milk products minus the federation expenses. Milk producers did not consider the rates declared
by the federation very remunerative and thus milk procurement remained much below the installed
capacity of the plants all the time. Due to lower milk procurement and less rate of commission to
the unions, the unions went into heavy losses. Since the procurement was very less as compared to
the capacity utilization, the federation also went into the red. There had been heavy losses in the
organization at all the levels and in-discipline amongst the staff also grew.

To overcome this situation and to bring the organization out of red, the then management of the
federation took some hard steps. These included taking disciplinary action against the erring
employees, amalgamation of nearby unions into a single union (to reduce overheads by pooling of
available sources) and combining of efforts so that the organization could be taken out of red. The
main change in the federation policy was to change the milk procurement policy. This was now
linked to the market rates of procurement of milk rather than the previous policy of realization
value of milk products.

Under this decision, following five milk unions were formed in the year 1991:

• The Ambala district co-operative milk producer’s union ltd.

• The karnal & Kurukshetra co-operative milk producer’s union ltd.

• The Hissar and Jind co-operative milk producer’s union ltd.

• The Gurgaon and Rohtak co-operative milk producer’s union ltd.

• The Sirsa district co-operative milk producer’s union ltd.

The average milk procurement for 1998-99 was at 45109 LPD at jind. However, the daily hand
and jind 110450 LPD respectively. The union has reached a turnover of Rs. 180 crores.

Besides custom packing of fluid milk in poly packs for Mother Dairy, Delhi, the union is also
manufacturing milk and products like butter, ghee and paneer under the HDDCF brand name of
“VITA” for which the union has a well trained, experienced and committed work force.

Close interaction with Mother Dairy, Delhi has opened the gateway to modern management ideas
for the workforce, which wants to implement international quality and food safety systems in the
milk plants. Milk plant hisar-jind had gone in for modernization and certification under ISO-9002
Quality Management System and IS-15000 Food Safety System (HACCP) in August 1999.

A turn around had been achieved and the future is promising with an investment of Rs. 1.46 crores,
generated internally by the milk plant, during 1998-99 for up gradation and automation of the
plant. During the year 1999-2006 too modernization projects costing Rs. 56 lakhs were
implemented.

COMPANY LOGO

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

The National Dairy Development Board (NDDB) was founded to replace exploitation with
empowerment, tradition with modernity, stagnation with growth and transforming dairying into an
instrument for the development of India farmers.

The National Dairy Development Board was created in 1965 in response to the Prime Minister Lal
Bahadur Shastri’s call to “transplant the spirit of ANAND in many other places”. He wanted the
ANAND MODEL of dairy development – with institutions owned by rural producers, which were
sensitive to their needs and responsive to their demands – replicated in other parts of the country.

The Board’s creation was routed in the conviction that our nation’s socio-economic progress lies
largely on the development of rural India.
Thus NDDB’s mandate is to promote, finance and support producer-owned and controlled
organizations. NDDB’s programmers and activities seek to strengthen farmer co-operatives and
support national policies that are favorable to the growth of such institutions.

With a mission to make dairying a vehicle for a better future for millions of grassroots milk
producers in rural India, the NDDB launched “Operation Flood”, the world’s largest dairy
development programmer, in 1970. It made India the world’s largest milk producing nation and
within three decades, “Operation Flood” led to the creation of more than 100000 village level diary
co-operatives nationwide. These co-operatives procured an average of 25.09 million kg of milk per
day and marketed an average of 20.04 million liters of milk per day in the year 2014-09.

NDDB has embarked upon a national campaign to create an umbrella brand identity for associated
co-operative milk brand. This is based on quality guidelines, standardized presentation and
packaging. The Operation Flood Logo – ‘Milk Drop’ has been adopted as the symbol for fresh
and pure milk. To enhance visibility, milk pouch designs have been standardized through an
established colour code to distinguish different types of milk.

The ‘Milk Drop’ is used on milk sachets, retail signs and distribution vehicles to promote a better
recall for all co-operative brands in the marketplace. As a prelude to the campaign, NDDB worked
out strict quality guidelines that a participating brand must conform before it qualifies for the
campaign. These guidelines relate to improving quality at various levels.

At present 16 brands across 15 states and one union territory are participating in the
campaign.

HARYANA DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION

HARYANA is one of the most progressive states of Republic of India. In the domain of dairy
development it is well known for its productive milk cattle particularly the ‘Murrah’ Buffaloes and
Haryana Cows. The economy of the state is predominantly based on agriculture. People rear and
breed cattle subsidiary occupation. Milk production in the state was estimated around 147 lakhs
liters per day during 2012-07.

The essence of various programmes launched in the State has been to adopt the ANAND
PATTERN of Milk Co-operatives. Under this system, all the functions of dairying like milk
procurement, processing and marketing are controlled by the Milk producers themselves. It has
three tier system comprising milk Producers Societies at the village level, Milk Producers Co-
operative Union at the district level and the state Milk Federation as an apex body at the state level.

The Haryana Dairy Development Co-operative Federation Ltd. registered under Haryana
Co-operative Societies Act came into existence on April 1, 1977. Its authorized share capital is
Rs.4000 lakhs. It was established with the primary aim to promote economic interests of the milk
producers of Haryana particularly those belonging to weaker sections of the village community by
procuring and processing milk into milk products and marketing thereof by itself or through its
unions. In furtherance of the above objects, the Federation undertakes a number of activities such
as establishment of milk plants, marketing of VITA BRAND milk products of the Milk Unions. Its
turnover during is Rs.768.00 crores. It also extends technical guidance to the Unions in all spheres
of personnel, technical, marketing and financial management as well as makes them quality
conscious, through use of modern methods of laboratory testing of various products.
Quality –VITA the Hallmark of Quality
As part of stringent quality measures, milk required for processing VITA products is procured
from Dairy Co-operative Societies only. It is ensured that the milk is transported to chilling canters
and plants in clean and sterilized milk cans as quickly as possible. All quality measures as per
Standard of Bureau of Indian Standards/ Agmark are being applied before the products are
marketed. Well-equipped laboratories are functioning in the chilling centers and milk plants to
maintain ideal quality standards. VITA is the endorsement of quality, a commendation we are
Proud of. Milk Plant Rohtak, Ballabgarh, Ambala and Jind have obtained ISO-9002 and IS-
15000 certificates. Remaining Plants would also obtain ISO-9002 shortly. Each Plant has taken
steps for implementing Hazard Analysis and Critical Control Points (HACCP).

DISTRICT MILK PRODUCER’S CO-OPERATIVE UNIONS

The Primary Milk Societies (PMS) functioning at the village level join to form a Milk Union for
carrying out such activities which are conducive and essential for the socio-economic development
of milk producers, by procuring and processing of milk and marketing of milk products. The Board
of Directors comprising 8 members elected out of the Chairmen of affiliated Primary Milk
Societies run the day-to-day administration through Chief Executive officer.

These Unions either process milk at their own level or pass the same to the milk plants of other
milk unions for processing. They also organize new Primary Milk Societies at the village level. A
brief matrix of the Milk Unions is as follows:
 MILK UNIONS IN HARYANA

Sr. No. Name of the Union Date of Regis.

1 The Ambala District Co-operative Milk Producer’s Union Ltd., Ambala 10.03.1973

2 The Rohtak District Co-operative Milk Producer’s Union Ltd., Rohtak 01.04.2009

3 The Hisar-Jind Co-operative Milk Producer’s Union Ltd., Jind 10.07.1991

4 The Kurukshetra-Karnal Co-operative Milk Producer’s Union Ltd., Kurukshetra 05.07.1991

5 The Sirsa District Co-operative Milk Producer’s Union Ltd., Sirsa 10.01.1978

6 The Ballabgarh Co-operative Milk Producer’s Union Ltd., Ballabgarh 01.04.2009

There are five milk plants operating in the Co-operative Sector in Haryana. These are located at
Ambala, Jind, Rohtak, Sirsa and Ballabgarh having a handling capacity of 470000 liters per day.

PRIMARY MILK SOCIETY

The Primary Milk Society is the foundation of the Co-operative structure. The efficiency of the
movement solely lies in the strength of these Societies. Primary Milk Societies are organized at the
rate of one society per village. The purpose of such a society is to promote the economic interests
of its members by improving quality, and increasing quantity of milk production per buffalo or
cow and to provide necessary guidance and assistance to its members and supply milk to Milk
Unions. These societies also supply cattle feed etc. to their members with a view to enhancing milk
production. The Managing Committee of the Society comprises members elected by those
members who are eligible to participate and vote in the General Body Meeting.

GROWTH AT A GLANCE
Functional 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014-
Year
Societies 01 02 03 04 05 06 07 08 09
(Avg)
Nos. 2710 2885 3166 3350 3906 4127 5028 5980 6167

Status of Milk Booths under Union

As On 31.10.2016

Sr. No. Name of the Union No. of Booths

1 The Ambala District Co-operative Milk Producer’s Union Ltd., Ambala 85

2 The Rohtak District Co-operative Milk Producer’s Union Ltd., Rohtak 61

3 The Hisar-Jind Co-operative Milk Producer’s Union Ltd., Jind 80

4 The Kurukshetra-Karnal Co-operative Milk Producer’s Union Ltd., Kurukshetra 26

5 The Sirsa District Co-operative Milk Producer’s Union Ltd., Sirsa 17

6 The Ballabgarh Co-operative Milk Producer’s Union Ltd., Ballabgarh 99

SWEETENED FLAVOURED
DOUBLE TONED MILK
MANGO DRINK

NAMKEEN LASSI
MITHI LASSI
TABLE BUTTER GHEE (AGMARK)

JAL JEERA
DAHI

MILK
PANEER
 KHEER
COW MILK GHEE

MILK CAKE KAJU PINNI

 INTRODUCTION TO THE PROJECT

Challenges of Human Resources Management

Introduction
Human beings are the most important resource in an organization. A firm‟s success depends on
the capabilities of its members. Most problems, challenges, opportunities and frustrations in an
organization are people related.

Human resources are the life blood of an organization. Despite the application of technology in
modern business management, human resources are still relevant and most adaptive resources of
the organization. The strategic values of HR stem from the fact that apart from other resources
employed in the course of production (land, capital, technology etc) which are passive, human
resources are endowed with discretionary decision-making power and thus have competitive
advantage over the other resources. Besides, HR combines other resources in the right mix to
formulate appropriate strategies for the accomplishment of the desired objectives of the
enterprise. This essential attribute of HR assist the enterprise to make rightful decisions and
respond effectively to the threats and opportunities within the environment of the organization.
Thus the enterprise depends highly on its HR for success and survival. This dependence
continuously is increasing considering the complex and turbulent nature of the business
environment of this century.

The management of HR is complex and problematic because the individuals as workers hardly
adapt or voluntarily embrace the objectives of the organization. As individuals, the employees
have needs, aspirations, motivations, desires and interests which influence their behavior at work
but unfortunately these objectives are sometimes in conflict with the corporate objectives of the
enterprise. In reconciling this conflicting interests Human Resources Management and Planning
are useful tools employed in harmonizing the needs of the employees with the goals and
objectives of the organization on a continuous basis.

In a nutshell, the primary task of HRM is to ensure that the organization HR are utilized and
managed effectively. HR practitioners are saddled with the responsibility of designing and
implementing policies andprogrammers that will enhance human abilities and improve the
organization‟s overall effectiveness. Empirical studies have shown that poor human relations at
work, neglect of staff welfare programmer and lack of motivation are often the factors that cause
industrial strife and declining productivity in the work setting. The modern day entrepreneurs
recognize that the HR are vital element in the organization and concomitantly acknowledge the
role the HR practitioners play in developing these valuable resources. To acquire and retain HR
in the organization, the HR practitioners in brief perform four critical roles:

i. Create and implement policies, which should be in writing and communicated to all employees
through circulars or the employee handbook.

ii. Offer advice and counsel the employees on matters bordering on productivity, safety at work,
career path or management, morale, honesty and integrity, human relations etc.

iii. Provision of services that assist Line Managers in performing their jobs or serving the
organizational units i.e. recruitment, selection and placement, compensation management,
training and development, staff welfare programs, industrial and labor relations, research and
planning.

iv. Control of HR programmer and laid down procedures i.e. to monitor and ensure that HR
policies and guidelines are implemented religiously or to the letters e.g. grievance handling and
disciplinary procedures, Federal Character principles or Quota system, fairness of appraisal
exercise, granting of loans etc.

Each of the above functions is a complex flow of activities and it underscores HR management
functions as integral part of the overall corporate plans of the enterprise. It follows therefore, that
HR management function is a joint responsibility for all managers within the enterprise.

The pace of globalization is increasing continuously in terms of markets for goods and
services, investment opportunities across borders amongst others. Enterprises face
competition from all fronts. Human resource management is not left out in this
transformation crusade as it has obligation to move along with the changing demands of
the globalization process. One of the objectives of this paper is to show that effective
managers should constantly be aware of the changes taking place in domestic (home
country) environment, as well as around the globe (international and foreign environments)
on HR issues and developments. By so doing, they can scan their environment on an
ongoing basis, and when they detect opportunities and/or threats, they can transform their

organization to seize the opportunities and/or combat or neutralize the threats as the case
may be(C.Anyin.Ph.D, 2011).
CHALLENGES OF HRM IN MODERN MANAGEMENT
The environment faced by HR management is a challenging one; changes are occurring rapidly
across a wide range of issues. A study by the Hudson Institute, entitled Workforce 2020, has
highlighted some of the most important workforce issues. From that and other sources, it appears
that the most prevalent challenges facing HR management are as follows:

1. Globalization

2. Workforce Diversity

3. Technological Advances

4. Changes in Political and Legal Environment

5. Change in Economic Environment

6. Revolution in Information Technology

7. Mobility of Professional personal

The environment faced by human resource is challenging one; changes are occurring rapidly
across a wide range of issues(Shahi Raz Akhtar, 2012). It appears that the most prevalent
challenges facing HR management are as follows:

Globalization

At a political and economic level, globalization is the process of denationalization of markets,

politics and legal systems i.e. the use of the so-called global economy. Globalization refers to an
extension beyond national borders of the same market forces that have operated for centuries at
all levels of human economic activity (village markets, urban industries, or financial centers). It
means that world trade and financial markets are becoming more integrated.

Growing internationalization of business has its impact on HRM in terms of problems of

unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics
etc. HR managers have a challenge to deal with more functions, more heterogeneous functions
and more involvement in employee‟s personal life.
 Workforce Diversity
According to Thomas (1992), dimensions of workplace diversity include, but are not limited to:
age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational
background, geographic location, income, marital status, military experience, religious beliefs,
parental status, and work experience.The role of the Human Resource Manager is evolving with
the change in competitive market environment and the realization that Human Resource
Management must play a more strategic role in the success of an organization. Organizations that
do not put their emphasis on attracting and retaining talents may find themselves in dire
consequences, as their competitors may be outplaying them in the strategic employment of their
human resources.

With the increase in competition, locally or globally, organizations must become more adaptable,
resilient, agile, and customer-focused to succeed. And within this change in environment, the HR
professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a
change mentor within the organization. In order to succeed, HR must be a business driven
function with a thorough understanding of the organization‟s big picture and be able to influence
key decisions and policies. In general, the focus of today‟s HR Manager is on strategic personnel
retention and talents development. HR professionals will be coaches, counselors, mentors, and
succession planners to help motivate organization‟s members and their loyalty. The HR manager
will also promote and fight for values, ethics, beliefs, and spirituality within their organizations,
especially in the management of workplace diversity.

The future success of any organizations relies on the ability to manage a diverse body of talent
that can bring innovative ideas, perspectives and views to their work. The challenge and
problems faced of workplace diversity can be turned into a strategic organizational asset if an
organization is able to capitalize on this melting pot of diverse talents. With the mixture of
talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond
to business opportunities more rapidly and creatively, especially in the global arena, which must
be one of the important organizational goals to be attained. More importantly, if the
organizational environment does not support diversity broadly, one risks losing talent to
competitors. This is especially true for multinational companies (MNCs) who have operations on
a global scale and employ people of different countries, ethical and cultural backgrounds. Thus, a
 Technological advances

There is a challenging task of adapting workplace to rapid technological changes which

influence the nature of work and generate obsolescence Advanced technology has tended to
reduce the number of jobs that require little skill and to increase the number of jobs that require
considerable skill, a shift we refer to as moving from touch labour to knowledge work.. There is
new-new working technology. In this situation organizations have to change it technology. New
technology creates unemployment and in other hand, there comes scarcity of skilled manpower.
Like this, technological change brings difficulties and challenges in organization.

Changes in political and legal environment

Changes in political and legal environment means changes in political parties and rules
regulation due to which new laws are come and you have to follow all laws while doing
business. Many changes taking place in the legal and political framework within which the
industrial relation system in the country is now functioning. It is the duty of human resource and
industrial relations executives to fully examine the implication, of these changes and brings
about necessary adjustment within the organization so that later utilization of human resource
can be achieved. It is the responsibility of Human Resource manager to anticipate the changes
and prepare organization to face them without any breakdown in its normal functioning

Changes in the Economic Environment

This includes examination of the impact of a number of factors on production. Some of the key
factors are the scarcity of raw materials and other inputs including power and electricity,
encouragement of the culture of consumerism, increasing consumer awareness and demand for
quality products, continuing upward trend in the inflationary pressures with decrease in the

purchasing power of rupee and its spiraling effects in the ever increasing aspirations of workers
for higher wages and other material benefits and mounting costs on the employee welfare and
other benefits. In an inflationary economy, the resources tend to become scarce and the costs of
machine, materials and labour multiply. These push up the capital and running costs.

Revolution in Information Technology

Information technology has influenced HRM through human resources information systems
(HRIS) that streamline the processing of data and make employee information more readily
available to managers. More recently, there has been and in the future there will be impact of
revolutionary computerized information system in the management it covers two primary areas
Application of computer in the managerial decision making process

1. Use of electronic computers managerial decision making process

2. In future computerized information system will have increasing impact at the coordinate and
strategic levels of organization

Organizational Restructuring
Many organizations have restructured in the past few years in order to become more competitive.
Also, mergers and acquisitions of firms in the same industries have been made to ensure global
competitiveness. The “mega-mergers” in the banking, petroleum, and telecommunications
industries have been very visible, but mergers and acquisitions of firms in many other industries
have increased in recent years. As part of the organizational changes, many organizations have
“rightsized” either by (1) eliminating layers of managers, (2) closing facilities, (3) merging with
other organizations, or (4) outplacing workers. A common transformation has been to flatten
organizations by removing several layers of management and to improve productivity, quality,
and service while also reducing costs. As a result, jobs are redesigned and people affected. One
of the challenges that HR management faces with organizational restructuring is dealing with the
human consequences of change. The human cost associated with downsizing has been much
discussed in the popular press: a survivor‟s mentality for those who remain,

unfulfilled cost savings estimates, loss of loyalty, and many people looking for new jobs.

Whereas many large firms have cut jobs by reducing their workforces, many smaller firms have
continued to create jobs. This is particularly true in high technology industries, such as software

development. These entrepreneurial firms are faced with growth, while trying to attract sufficient
workers with flexible capabilities and to conserve financial resources. More discussion on HR‟s
role in organizational restructurings is found in Chapter 2, focusing on strategic HR planning.
Consequently, in both large and small organizations the management of HR activities is crucial.

Mobility of Professional Personnel

One of the interesting facts will be increase in the mobility of various managerial and
professional personnel between the organizations. As individual develop greater technical and
professional expertise, their services will be greater demand by organization in the environment.
 HOW CAN WE OVERCOME WITH THESE CHALLENGES?
1. Cross cultural training of HR personnel so that they understand other cultural people

2. Motivate Professional personnel more and more so that do not change organization more
frequently financial motivation is not always required you can motivate through non-financial
motivation like encouragement, training of employee, job satisfaction

3. HR should adopt the change at internet speed.

4. Shifting HR strategy with changing economy – strategy of HR should be agile, capable of

flexing and adaptive to changes in the economy.

5. Technical changes in the workplace often require the implementation of additional training for
workers. As training and development is generally the realm of the HR department, this creates
yet another challenge for human resource managers. HR must first determine what training is
necessary and then implement training measures to ensure all workers can keep up with technical
changes. Human resource managers must also determine when it may train existing employees,
and when it must search for new workers to fill technical positions within the organization

6. Training of HRIS – Human resource information system should be given to the HR managers
or HR professional so that they can overcome Information Technology challenges.

7. Proper performance evaluation system and proper career development plans should be used in
the organization to reduce professional mobility.
Strategies for Changes

The first corner stone to achieve is the development of new initiatives, programs and
agendas. Human Resources must move beyond being the “police of policy” and “regulatory
guard”. Instead, HR must be the pioneers in assisting the organizations achieve results,
especially by helping employees to enhance their capabilities to ensure organizational
objectives are met.

The future of HR depends on its ability to align HR with the changes that are happening in
the workplace and the economy. New models of competitiveness are needed so that
organizations can better service their customers. Consequently HR must be the champions to
help gear employees to provide added value.

The new approach of HR is to emphasize new mindsets and new ways of thinking about
business instead of sticking to policies and bureaucratic patterns. HR professionals should
and must focus on cultural change, and the development of human capital, especially in
international organizations. „Think globally. Act locally”.

HR should sponsor a model of change, which will help the employees adapt to and be
comfortable with changes. Here, a lot of question may arise, such as: How do we decide
which practices to be transformed and which should be kept for purpose of continuity? How
do we change and learn rapidly? How do we honor the past yet change the future? How do
we capture the hearts and minds of employees?

Growing Importance of HRM

The success of organizations increasingly depends on people-embodied know-how- the
knowledge, skill, Attitude.

Nature of HRM:
 HRM involves management functions like planning, organizing, staffing, directing
and controlling.

 It involves procurement, development, maintenance and management of human

resource.

 It helps to achieve individual, organizational and social objectives.

  HRM is a mighty disciplinary subject. It includes the study of management
psychology communication, economics and sociology.

 It involves team spirit and team work.

HRM plays important role in creating organizations and helping them survive. Our world is
an Organizational world. We are surrounded by organizations and we participate in them as
members, Employees, customers, and clients. Most of our life is spent in organization, and
they supply the goods and services on which we depend to live. Organizations on the other
hand depend on people, and without people, they would disappear.

Factors Contributing to the Growing Importance of HRM

Accommodation to workers' needs
Workers are demanding that organizations accommodate their personal needs by instituting
such programs as flexible work schedules, parental leave, child-care and elder-care
assistance, and job sharing. The human resource department plays a central role in
establishing and implementing policies designed to reduce the friction between
organizational demands and family responsibilities.

Increased complexity of the Manager’s job

Management has become an increasingly complex and demanding job for many reasons,
including foreign competition, new technology, expanding scientific information, and rapid
change. Therefore, organizations frequently ask human resource managers for assistance in
making strategic business decisions and in matching the distinctive competencies of the
firm's human resources to the mission of the organization. Executives need assistance from
the human resource department in matters of recruitment, performance evaluation,
compensation, and discipline.

Legislation and litigation

The enactment of state laws has contributed enormously to the proliferation and importance
of human resource functions. The record keeping and reporting requirements of the laws are
so extensive that to comply with them, many human resource departments must work
countless hours and often must hire additional staff. Four areas that have been influenced
most by legislation include equal employment, Compensation, safety, and labor relations. An
organization's failure to comply with laws regulating these areas can result in extremely
costly back-pay awards, class action suits, and penalties.

Consistency
Human resource policies help to maintain consistency and equity within an organization.
Consistency is particularly important in compensation and promotion decisions. When
managers make compensation decisions without consulting the human resource department
the salary structure tends to become very uneven and unfair promotion decisions also may be
handled unfairly when the HR department does not coordinate the decision of individual
manger.

Expertise
Now days there exist sophisticated personnel activities that require special expertise. For
example, researchers have developed complex procedures for making employee-selection
decisions; statistical formulas that combine interviews, test scores, and application-blank
information have replaced the subjective interviews traditionally used in making selection
decisions. Similarly, many organizations have developed compensation systems with
elaborate benefits packages to replace simple hourly pay or piece rate incentive system

Cost of Human Resource

Human resource activities have become increasingly important because of the high cost of
personal problem. The largest single expense in most organizations is labor cost, which is
often considerably higher than the necessary because of such problems as absenteeism
tardiness and discrimination.

The New Environment

The 1990s have been called the era of Employee Empowerment. This means the management
delegates as much power and authority as possible to low level employees to enable them to
make their own decisions and participate in the managerial decision-making as well. This way,
the employees will be more motivated and productive(Biyani Girls College, 2009).

The empowerment process is effective under the following conditions:

The employee must be given adequate training and knowledge regarding his job and
responsibilities, which includes technical knowledge, decision-making skills and group
process skills.

Both employees and management share a common vision and goals, and are really
committed to achieve them.

both employees and management possess common values, in term of job implementation,
behavior standards and ethics.

Benefits and profits are to be shared together (shares, bonuses...)

Management should show and have trust in lower level employees.

Reshaping HR
The changes which affect the HR performance are:

 HR should not act as a therapy clinic

 HR must measure their outcomes
 HR practices must create value by increasing the organization‟s intellectual capital
 HR must attempt to make employees committed to achieving organizational goals,
and not merely to make employees happy
 HR practices must be aligned with company strategies
 HR must champion the needs and development of employees and yet become partners
in the business
 HR should receive corporate priority. Business firms should be ready to boost their
investment in staff development; this is rewarding on the long run if its properly
implemented
 HR should focus on the skills to be acquired taking into consideration the
understanding of the international dimensions of political, economic and social
development
 HR should promote the collaboration between public training institutions, the
universities and the public sector in terms of planning an effective training program.
HR Management Activities
The central focus for HR management must be on contributing to organizational success. The
key to enhancing organizational performance is ensuring that human resources activities support
organizational efforts focusing on productivity, service, and quality(Tyson, 2006).
Productivity:As measured by the amount of output per employee, continuous improvement of
productivity has become even more important as global competition has increased. The
productivity of the human resources in an organization is affected significantly by management
efforts, programs, and systems.
The amount of output per unit of input (labor, equipment, and capital). There are many different
ways of measuring productivity. For example, in a factory productivity might be measured based
on the number of hours it takes to produce a good, while in the servicesector productivity might
be measured based on the revenue generated by an employee divided by his/her salary. E.G
number of cars over a specified period.example: productivity = (number of cars produced) ÷
(man-hours to produce these).
Quality: The quality of products and services delivered significantly affects organizational
success over the long term. If an organization gains a reputation for providing poor-quality
products and services, it reduces its organizational growth and performance. An emphasis on
quality requires continuous changes aimed at improving work processes. That need opens the
door for reengineering the organizational work done by people. Customer value received and
satisfaction become the bases for judging success, along with more traditional HR measures of
performance and efficiency.
Service: Because people frequently produce the products or services offered by an organization,
HR management considerations must be included when identifying service blockages and
redesigning operational processes. Involving all employees, not just managers, in problem
solving often requires changes in corporate culture, leadership styles, and HR policies and
practices.
Summary and Conclusion
To conclude that it can be said that HR practice is becoming more and more challenging day by
day, they have to face lot of problems like retention, attraction of employee, dealing with
different cultural people, managing work force diversity, technological and informational
changes to overcome with these challenges training (Cross cultural training and technological
and informational training) is necessary of HR people.
To reduce mobility of professional personnel HR people have to motivate them from monetary
and non-monetary techniques. Proper performance evaluation system and proper career
development plans should be used in the organization to reduce professional mobility.
Following the challenges posed by globalization, it is hoped that the HR professionals will not
only destroy the stereotype routine methods of doing job but would launch HR full potentials for
more positive contributions to employees‟ wellbeing and organization building.
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