HRM

What is HRM?
Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. It can be done by the line Managers HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

Importance of HRM
Human Resource Management has a place of great importance. According to Peter F. Drucker, The proper or improper use of the different factors of production depend on the wishes of the human resources. Hence, besides other resources human resources need more development. Human resources can increase cooperation but it needs proper and efficient management to guide it. Importance of personnel management is in reality the importance of labour functions of personnel department which are indispensable to the management activity itself. Because of the following reasons human resource management holds a place of importance

Importance of HRM
1. It helps management in the preparation adoption and continuing evolution of personnel programmes and policies. 2. It supplies skilled workers through scientific selection process. 3. It ensures maximum benefitout of the expenditure on training and development and appreciates the human assets. 4. It prepares workers according to the changing needs of industry and environment. 5. It motivates workers and upgrades them so as to enable them to accomplish the organisation goals. 6. Through innovation and experimentation in the fields of personnel, it helps in reducing casts and helps in increasing productivity. 7. It contributes a lot in restoring the industrial harmony and healthy employer-employee relations. 8. It establishes mechanism for the administration of personnel services that are delegated to the personnel department.

Importance of HRM
Thus, the role of human resource management is very important in an organisation and it should not be undermined especially in large scale enterprises. It is the key to the whole organisation and related to all other activities of the management i.e., marketing, production, finance etc. Human Resource Management is concerned with the managing people as an organizational resources rather than as factors of production. It involves a system to be followed in business firm to recruit, select, hire, train and develop human assets. It is concerned with the people dimension of an organization. The attainment of organizational objectives depends, to a great extent, on the way in which people are recruited, developed and utilized by the management. Therefore, proper co-ordination of human efforts and effective utilisation of human and others material resources is necessary.

Objectives of HRM
(i) To ensure effective utilisation of human resources, all other organisational resources will be efficiently utilised by the human resources. (ii) To establish and maintain an adequate organisational structure of relationship among all the members of an organisation by dividing of organisation tasks into functions, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organisation. (iii) To generate maximum development of human resources within the organisation by offering opportunities for advancement to employees through training and education.

 (iv) To ensure respect for human beings by providing various services and welfare facilities to the personnel. (v) To ensure reconciliation of individual/group goals with those of the organisation in such a manner that the personnel feel a sense of commitment and loyalty towards it. (vi) To identify and satisfy the needs of individuals by offering various monetary and nonmonetary rewards.

To achieve the objectives, HRM undertakes the following activities

(i) Human Resource Planning, i.e., determining the number and kinds of personnel required to fill various positions in the organisation. (ii) Recruitment, selection and placement of personnel, i.e., employment function. (iii) Training and development of employees for their efficient performance and growth. (iv) Appraisal of performance of employees and taking corrective steps such as transfer from one job to another. (v) Motivation of workforce by providing financial incentives and avenues of promotion. (vi) Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieve higher standard of living and to motivate them to show higher productivity. (vii) Social security and welfare of employees.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT. The main functions of human resource management are classified into two categories: (a) Managerial Functions and (b) Operative Functions (a) Managerial Functions Following are the managerial functions of Human Resources Management.

(a) Managerial Functions.

1. Planning : The planning function of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programmes, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them. 2. Organisation : Under organisation, the human resource manager has to organise the operative functions by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organisational objectives. In this way a personnel manager performs following functions : (a) preparation of task force; (b) allocation of work to individuals; (c) integration of the efforts of the task force; (d) coordination of work of individual with that of the department. 3. Directing : Directing is concerned with initiation of organised action and stimulating the people to work. The personnel manager directs the activities of people of the organisation to get its function performed properly. A personnel manager guides and motivates the staff of the organisation to follow the path laid down in advance. 4. Controlling : It provides basic data for establishing standards, makes job analysis and performance appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts of workers.

(b) Operative Functions

1. Procurement of Personnel : It is concerned with the obtaining of the proper kind and number of personnel necessary to accomplish organisation goals. It deals specifically with such subjects as the determination of manpower requirements, their recruitment, selecting, placement and orientation, etc. 2. Development of Personnel : Development has to do with the increase through training, skill that is necessary for proper job performance. In this process various techniques of training are used to develop the employees. Framing a sound promotion policy, determination of the basis of promotion and making performance appraisal are the elements of personnel development function. 3. Compensation to Personnel : Compensation means determination of adequate and equitable remuneration of personnel for their contribution to organisation objectives. To determine the monetary compensation for various jobs is one of the most difficult and important function of the personnel management. A number of decisions are taken into the function, viz., job-evaluation, remuneration, policy, inventive and premium plans, bonus policy and copartnership, etc. It also assists the organisation for adopting the suitable wages and salaries, policy and payment of wages and salaries in right time..

(b) Operative Functions

4. Maintaining Good Industrial Relation : Human Resource Management covers a wide field. It is intended to reduce strifies, promote industrial peace, provide fair deal to workers and establish industrial democracy. It the personnel manager is unable to make harmonious relations between management and labour industrial unrest will take place and millions of man-days will be lost. If labour management relations are not good the moral and physical condition of the employee will suffer, and it will be a loss to an organisation vis-a-visa nation. Hence, the personnel manager must create harmonious relations with the help of sufficient communication system and co-partnership. 5. Record Keeping : In record-keeping the personnel manager collects and maintains information concerned with the staff of the organisation. It is essential for every organisation because it assists the management in decision making such as in promotions. 6. Personnel Planning and Evaluation : Under this system different type of activities are evaluated such as evaluation of performance, personnel policy of an organisation and its practices, personnel audit, morale, survey and performance appraisal, etc

HRM v/s PM
Human Resource Management derives its origin from the practices of the earlier personnel management, which assisted in the management of people in an organisation setup. Human Resource Management leverages setting up the systems and procedures for ensuring efficiency, controlling and providing equality of opportunities for all working for the organisation. Human Resource Management (HRM) differs from Personnel Management (PM) both in scope and orientation. HRM views people as an important source or asset to be used for the benefit of organisations, employees and society. It is emerging as a distinct philosophy of management aiming at policies that promote mutuality-mutual goals, mutual respect, mutual rewards and mutual responsibilities.

HRM v/s PM
The belief is that policies of mutuality will elicit commitment, which in turn, will yield both better economic performance and greater Human Resource Development (HRD). Though a distinct philosophy, HRM cannot be treated in isolation. It is being integrated into the overall strategic management of businesses. Further, HRM represents the latest term in the evolution of the subject.

HRM v/s PM
There are several similarities between Human Resource Management (HRM) and Personnel Management (PM) (a) Both models emphasize the importance of integrating personnel/HRM practices with organisational goals. (b) Both models vest Personnel/HRM firmly in line management. (c) Human Resource Management (HRM) and Personnel Management (PM) both models emphasise the importance of individuals fully developing their abilities for their own personal satisfaction to make their best contribution to organisational success. (d) Both models identify placing the right people into the right jobs as an important means of integrating personnel/HRM practice with organisational goals.

FUTURE CHALLENGES BEFORE THE MANAGERS

Because of continuous changing socio-economic, technological and political conditions, the human resource managers of the future shall have to face more problems in the management of labour. The human resource managers of today may find themselves obsolete in the future due to changes in environment if they do not update themselves some of the important challenges which might be faced by the managers in the management of people in business and industry are discussed below

Challenges for Managers

1. Increasing Size of Workforce : The size of organisations is increasing. A large number of. multinational organisations have grown over the years. The management of increased workforce might create new problems and challenges as the workers are becoming more conscious of their rights. 2. Increase in Education 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 very tough task for the future managers. 3. Technological Advances : With the changes coming in the wake of advanced technology, new jobs are created and many old jobs become redundant. There is a general apprehension of immediate unemployment. In the competitive world of today, industry cannot hope to survive for long with old technology. The problem, of unemployment resulting from modernisation will be solved by properly assessing manpower needs and training of redundant employees in alternate skills

Challenges for HR Managers

4. Changes in Political Environment : There may be greater Governments interference in business to safeguard the interests of workers, consumers and the public at large. The Government may restrict the scope of private sector in certain areas in public interest. It does not mean chances of co-operation between the Government and private sector are ruled out. In fact, there will be more and more joint sector enterprises. 5. Increasing Aspirations of Employees : Considerable changes have been noted in the worker of today in comparison to his counterpart of 1950s. The workers are becoming more aware of their higher level needs and this awareness would intensify further in the future workers. 6. Changing Psychosocial System : In future, organisations will be required to make use of advanced technology in accomplishing their goals while satisfying human needs. In the traditional bureaucratic model, the organisations were designed to achieve technical functions with a 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 organisation system

Challenges for HR Managers

7. Computerised Information System : In the past, the automation of manufacturing processes had a major effect upon the systems of production, storage, handling and packaging, etc. This revolutionary development would cover two primary areas of personnel management which are as follows : (a) The use of electronic computers for the collection and processing of data, and (b) The direct application of computers in the managerial decision making process. 8. Mobility of Professional Personnel : Organisations 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 organisations. As individuals develop greater technical and professional expertise, their services will be in greater demand by other organisations in the environment. 9. Changes in Legal Environment : Many changes are taking place in the legal framework within which the industrial relationssystems in the country are now functioning. It is the duty of the human resource or personnel executive to be aware of these changes and to bring about necessary adjustments within the organisations so that greater utilisation of human resources can be achieved. This, indeed, is and would remain a major challenge for the personnel executive.

Challenges for HR Managers

10. Management of Human Relations : On the industrial relations front, things are not showing much improvement even after so many efforts by the government in this direction. Under the present conditions, it appears that inter-union rivalries would grow more in the coming years and might create more problems in the industry. Management of human relations in the future will be more complicated than it is today. Many of the new generation of employees will be more difficult to motivate than their predecessors. This will be in part the result of a change in value systems coupled with rising educational levels. Greater skepticism concerning large organisations and less reverence for authority figures will be more common. Unquestioning acceptance of rules and regulations will be less likely.

New Role of Human Resource Management

Human Resource Management in theNew Millenium has undergone a great revolution Many traditional practices have been thrown out. As an example, it can be seen that hierarchies are vanishing and there is greater emphasis on flat organisations. It means a great deal of specialisation and skills. It also means upgrading the norms and standards of work as well as performance. The new role of human resource management is much more strategic than before.

Some of the new directions of the role of HRM

1. A Facilitator of Change : To carry people through upheaval requires the true management of human resources. 2. An Integrated Approach to Management : Rather than being an isolated function, human resource is regarded as a core activity, one which shapes a companys values. In particular, this can have an impact on customer service. 3. A Mediator : Establishing and balancing the new and emerging aspirations and requirements of the company and the individua

The future creative careers, will require more involved approach to career development,
which will include : (i) Share employees with strategic partner organisations (customers of suppliers) in lieu of internal moves. (ii) Encourage independence : Employees may go elsewhere for career development, possibly to return in a few years. (iii) Fund-groups of employees to set-up as suppliers outside the organisation. (iv) Encourage employees to think of themselves as a business and of the organisations various departments as customers. (v) Encourage employees to develop customers outside the organisation. (vi) Help employees develop self-marketing, networking and consultancy skills to enable them to search out, recognise or create new opportunities for both themselves and the organisation. (vii) Identify skilled individuals in other organisations who can contribute on a temporary project basis or part-time.

 (viii) Regularly expose employees to new people and ideas to stimulate innovation. (ix) Balance external recruitment at all levels against internal promotion to encourage open competition, competitive tendering for jobs to discourage seeing positions as someones territory which causes self-protective conformity. (x) Forster more cross-functional teamwork for self-development. (xi) Eliminate the culture of valuing positions as career goals in favour of portraying a career as a succession of bigger projects, achievements and new skills learned. The concept of position is part of the outside static concept of the organisation. Positions are out. Processes and projects are in. (xii) Abandon top-down performance appraisal in favour of selfappraisal based on internal customer satisfaction surveys and assessing people as you would suppliers. (xiii) Replace top-down assessment processes with self-assessment techniques and measure performance in term of results.

Functions of Todays HR manager

1. Human Resource Man as an Intellectual : 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. 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..

Todays HR manager
2. Human Resource Man as an 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 harmonise 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.

Todays HR manager
3. Human Resource Man as a 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

Todays HR manager
4. Human Resource Man as an Executive : 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.

Todays HR manager
5. Human Resource Man as a 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.

Todays HR manager
6. Human Resource Man as a 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.

Todays HR manager
7. Human Resource Man as a 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 fall 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 organisation 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.