Human Resource Management Nature, Scope and Objectives

Meaning Human Resource simply means the people. It is a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components. Human Resource Management is the process of making the efficient and effective use of Human Resources so that the set goals are achieved.

Definition Flippo states that: “ Personnel management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of Human Resources to the end that individual, organizational and social objectives are accomplished ”

Scope of HRM HRM Acquisition Development Maintenance Control

Scope of HRM National Institute of Personnel Management has specified the scope of HRM as: The Labour or Personnel Aspect : concerned with HR planning, recruitment, selection, placement, promotion, transfer, training & development, compensation, etc. Welfare Aspect : deals with working conditions and amenities Industrial Relations Aspect : covers union-management relations, joint consultations, collective bargaining, grievance and disciplinary actions, etc.

Objectives of HRM The primary objective is to ensure the availability of right people for right jobs so that the organizational goals are achieved effectively To help the organization attain its goals by providing competent and motivated employees To utilize the available human resources effectively To increase to the fullest the employee’s job satisfaction and self-actualization

Objectives of HRM To develop and maintain the QWL which makes the employment a desirable personal and social situation To help maintain ethical policies and behaviour inside and outside the organization To establish and maintain cordial relations between employees and management To reconcile individual/group goals with organizational goals

Nature of HRM It is concerned with managing people to “rank and file employees at work”. In other words, it covers all levels of personnel It is concerned with employees, both as individuals as well as groups It is concerned with helping employees develop their potentialities and capacities to the maximum possible extent

Nature of HRM It is an integral part of any organization It is continuous in nature It aims at getting the willing co-operation of the people for the attainment of the desired goals

Functions of HRM Managerial Functions Operative Functions Planning Organizing Staffing Directing Controlling Operative Functions Procurement Development Compensating Integration Maintenance

The Role of a Personnel Manager Welfare Role Administrative Role Legal Role Advisory Research Time-keeping Grievance handling HRP, Recruitment and Selection Managing services Salary and Wage Administration Settlement of disputes Training and Development Group dynamics Handling disciplinary actions Maintenance of records Measurement and Assessment of Individual and Group Behaviour Human Engineering Collective bargaining Joint consultation

Organizational structure of the HR Department The internal organizational structure of the HR department varies widely in different companies, depending upon their size In small organizations, HR functions are discharged by line executives A separate HR department is organized for large companies, where personnel activities are generally of a complex nature

Social Security Records Personnel Functions in a Small Company President Production Manager Sales Manager Treasurer Shop Superintendent Employment Dept. Employee Insurance Accountant Foreman Social Security Records General Accounting Cost Accounting Workers

Personnel Functions in a Large Company President Vice President Marketing Vice President Production Vice President Personnel Vice President Finance Wage & Salary Labour Relations Training & Development Health, Safety & Benefits

Organizational structure of the HR Department Personnel Departments or units may be organized on three basis: Functional basis Service basis Clientele basis

Employee Service & Benefits Functional basis According to functional basis, departments are grouped into different functions Personnel Director Employment Wage & Salary Safety Employee Service & Benefits Training Industrial Relations

Service basis This basis takes into consideration the service rendered or the purpose achieved. It tries to prevent dissatisfaction through hygiene maintenance, and promotion of satisfaction through motivators Personnel Director Motivational Needs Programme Hygiene Needs Programme Education Motivation Services Industrial Relation Job Design Salary

Cliental basis Propounded by Soholik whose thesis is that requirements of different types of employees’ is different Personnel Director Managers for Scientific and Technical Personnel Management Development & Compensation Industrial Relations Integration of new workers Handicapped Persons Women Employees