Human Resource Management - Lsms.ac

2Human Resources Managementnew ones. There is an urgent need to understand these problems, anticipate them and to find solutionto them. The responsibility to find out the solutions to these problems lies with every manager whohas prepared to deal with different change effectively through educational and developmentalprograms. Obviously, every manager is responsible for management of human resources of coursewith the advice and help of personnel department. Management of human resources is the essence ofbeing manager who has to get things done through the people without whom he can be a technicianbut not a manager. Thus, every manager has to develop and maintain his competency in managinghuman resources, which have assumed utmost significance in modern organizations.1.2HUMAN FACTOR AND THEIR IMPORTANCEThe macroeconomic and management issues facing the Indian economy are the removal of the twinevils of employment and poverty. How to remove these twin evils and more important, promoteoptimum utilization of human capacities would be a major concern of not only the State but alsoIndian business and management. In addition, the following major macro and micro issues pose theserious problems to management and it is time that Indian business and management face thechallenges of these issues and make a contribution in solving these issues.The macro and micro issues: Capacity utilization-machine as well as human.Combating the inflation and holding the price line.Population problem.Motivation, involvement and consultation.Meeting basic physiological and other needs.Reducing the absenteeism, accidents, loss and damage.Generating employment opportunities, almost to the level of full employment.Human assets accounting, profits and growth.Eliminating strikes and lockouts through voluntary measures.Job redesigning, enlargement, enrichment.Promoting the health, self-renewal and creativity.Promoting exports and economic growth.Conservation of resources (renewal and non-renewal.)Increase the productivity of finance.Waste and cost reduction.Promoting the arts and culture, religion, sports, leisure activities.Adoption of village and communities.Promoting entrepreneurship, barefoot entrepreneurs and managers.Eliminating discrimination of all types.Promoting a sense of national identity, awareness and contribution.Promoting industrial and national security.Eliminating poverty completely.Improving the quality of working life.Improving the quality of life.

Human Resources Management: Context, Concept and Boundaries3The human resources (total sum of knowledge, skills, creative abilities, talents and attitudes obtainedin the population: National point of view) have also been designed a human factors. According toMichael J. Jucious, “human factor refers to a whole consisting of inter-related, interdependent andinteracting physiological, psychological, social, and ethical components”. It has physiological needs(food, rest, environmental conditions, security etc.), psychological needs (autonomy, achievement,power, acquisitiveness) social needs (affiliation, status, approval, prestige etc.) and it has an ethicalcreature, it has concepts of right and working. It tends to do what it thinks right. Obviously, the humanfactor is dynamic in nature as is revealed in motivation and defense mechanism. It is the on goingprocess involving the four sub-processes.The human resources are assuming increasing significance in modern organizations. Obviously,majority of the problem in organizational setting are human and social rather than physical, technicalor economic. The failure to recognize this fact causes immense loss to the nation, enterprise and theindividual. It is a truism that productivity is associated markedly with the nature of human resourcesand their total environment consisting of interrelated, interdependent and interacting economic andnon-economic (political, religious, cultural, sociological and psychological) factors. Thus, thesignificance of human resources can be examined from time to time.1.3DEFINITION OF HUMAN RESOURCES MANAGEMENT Personnel Management is that part of management concerned with people at work and theirrelationship within the organization. It seeks to bring together men and women who make upan enterprise, enabling each to make his own best contribution to its success is both as anindividual and as a member of a working group . NIPM It is planning, organizing, directing and controlling of the procurement, developmentcompensation, integration, maintenance and separation of human resources to the end thatindividual, organizational and societal objectives are accomplished . Edwin B. Flippo It is that field of management which has to do with planning, organizing and controlling thefunctions of procuring, developing, maintaining and utilizing a labor force such as that the :( ) objectives for which the company is established are effectively, ( ) objectives of all levels ofpersonnel are served to the highest possible degree, (?) objectives of society are dully consideredand served . Michael J. JuciousHuman resources management can be defined as that part of management concerned with: All the decisions, strategies, factors, principles, operations, practices, functions, activities andmethods 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 dynamicsthat flow from it; and Adding value to the delivery of goods and services and to the quality of work life for employees,hereby helping to ensure continuous organizational success in transformative environments(www.hrsgb.org.za/HR scope and definition.html).Human Resource Management (HRM) is a process of bringing people and organizations togetherso that the goals of each are met. It is part of the management process which is concerned with themanagement of human resources in an organization. It tries to secure the best from people by winningtheir wholehearted cooperation. In short, it may be defined as the art of procuring, developing andmaintaining competent workforce to achieve the goals of an organization in an effective and efficient

4Human Resources Managementmanner. According to the Invancevich and Glueck, “HRM is concerned with the most effective use ofpeople to achieve organizational and individual goals. It is the way of managing people at work, sothat they give their best to the organization”.1.4A NEW MANDATE FOR HUMAN RESOURCESHuman resources have never been more necessary. The competitive forces that we face today and willcontinue to face in the future demand organizational excellence. To achieve this excellence byfocusing on learning, quality, teamwork, and reengineering are driven by the way organizations getthings done and how employees are treated. To achieve this excellence we look at the work of Humanresources. By designing an entirely new role and agenda that results in enriching the organization’svalue to customers, investors and employees, HR can help deliver organizational excellence byhelping line managers and seniors move planning from the conference room to the market place, bybecoming an expert in the way work is organized and executed, they should be a representative for theemployees and finally by helping the organization improve their capacity for change. The responsibility for transforming the role of HR belongs to the CEO and to every line manager. HR will helporganizations meet competitive challenges such as globalization, profitability through growth, technology, intellectual capital, and the greatest competitive challenge companies face, adjusting tononstop change. HR’s new role would be able to quickly turn strategy into action; to manageprocesses intelligently and efficiently; to maximize employee contribution and commitment; and tocreate the conditions for seamless change. HR should also become a partner in strategy executions byimpelling and guiding serious discussions of how the company should be organized to carry out itsstrategy. Creating the conditions for this discussion involves four steps. First HR would define anorganizational architecture by identifying the company’s way of doing business. Next HR must beaccountable for conducting an organizational audit. The third role for HR as a strategic partner is toidentify methods for renovating the parts of the organizational architecture that need it. Fourth andfinally, HR must take stock of its own work and set clear priorities. In their new role as administrativeexperts they will need to shed their traditional image and still make sure all routine work for thecompany is done well. HR must be held accountable for ensuring that employees feel committed tothe organization and contribute fully. They must take responsibility for orienting and training linemanagement about the importance of high employee morale and how to achieve it. The new HRshould be the voice of employees in management discussions. The new role for HR might also involvesuggesting that more teams be used on some projects or that employees be given more control overtheir own work schedules.The new HR must become a change agent, which is building the organization’s capacity to embraceand capitalize on change. They don’t execute change but they make sure it is carried out. The newmandate for HR requires dramatic change in how HR professionals think and behave. Investing innew HR practices is another way to let the organization know that HR is worthy of the company’smoney and attention. Finally, the most important thing managers can do to drive the new mandate forHR is to improve the quality of the HR staff itself. Senior executives must get beyond the stereotypesof HR professionals as incompetent support staff and unleash HR’s full potential.The new role for HR is evident at the company I work for. They are present at any team orcompany meeting to make sure any issues the employees have are taken care of. They are the voice ofthe employees. They are responsible for training the line managers in keeping up the morale of the

Human Resources Management: Context, Concept and Boundaries5employees. They take care of any changes that need to be made and we have changes every 6 months.Whether in scheduling or seating arrangements, they are there to help. Often the HR departmentwhere I work is very involved in aspects of everyday operations, that, traditionally, Human resourcesnever involved themselves in. Specifically, HR and upper management hold training seminars on aregular basis for the middle management team. They discuss ways to improve employee attitudes andperformance. They are very active in our daily operations and employees know that while HR is a toolof the company, they do serve the employees as well. We also hold sensing sessions, which gives theemployees an opportunity to address concerns about the company and about personnel issues. Humanresource management would also be to guide staff with their career path and researching certaincourses and learning institutes best suited to their work to develop all the necessary skills to achievehigh results in the workplace. Encouragement is a big factor in job training and career courses tostimulate staff in their current role or to further their career options within the company. With today’sworkforce becoming increasingly diverse and organizations doing more to maximize the benefits ofthe differences in employees. Human resource managers are evolving from the “old school” sidelineplayer to the front-line fighters. Personally, every time I have had questions about my future in thecompany, HR was there to provide answers and guidance to me so that I better understood my fullpotential. I now understand, the amount of work the HR department has. It’s not just the payroll.1.5CHANGING ROLE OF THE HUMAN RESOURCE MANAGEMENTThe times have changed and the role of human resources within the organization needs to change. Wecan no longer be keepers of the records; we must become keepers of the flame. It is human resources’responsibility to lead the organization in tapping the one remaining resource it has people. In today’sglobal economy, everyone can have the latest computers and software. They can have identicalproducts. What they cannot have are the same people. Each organization is made up of a unique groupof people. It becomes the responsibility of human resources to mesh the people with varyingbackgrounds with its vision and goals to create a merger that will accomplish the objectives of boththe organization and the individual. Management needs to realize that in the future, raw materials,finished products and money will not be the keys to organizational success. People will be that key.Future success will depend on how we use the things that do not appear on a balance sheet or a Profitand Loss Statement, the intellectual capital of the organization, the knowledge its people possess. Arecent study of U.S. businesses showed that the best way to improve goods and services and becomemore competitive.There has been considerable research on the issues of board-level representation by personnel/HRdirectors and senior HR managers’ involvement in strategic decision-making. Since the early 1990sthere has been a growing interest in international HRM, reflecting the growing recognition that theeffective management of human resources internationally is a major determinant of success or failurein international business. There is also evidence that HR constraints often limit the effective implementation of international business strategies. More recently, it has been argued that the more rapidpace of internationalization and globalization leads to a more strategic role for HRM as well aschanges in the content of HRM. Yet, while there have been some attempts to integrate internationalcorporate strategy and human resource strategy, surprisingly, the role of the corporate humanresources function has been neglected, particularly in the context of the international firm. This seeksto redress the balance. The question addressed is, what is the role of the corporate HR function in the

6Human Resources Managementinternational firm? We found an emerging agenda for corporate HR in international firms whichfocuses on senior management development, succession planning and developing a cadre of international managers. We conceptualize this as a strategic concern with developing the core managementcompetences of the organization, and argue that it can be usefully analyzed from the perspective ofthe learning organization.“The point is the difference in attention to each persons can maximize his or her potential, so thatorganizations can maximize their effectiveness and so that the society as a whole can make the wisestuse of its human resources” (Cascio). The challenges of HR managers today is to recognize talent andnurture the same carefully and achieve significant productivity gains over period of time. Theorganization is nothing but people. Technological advances globalize competition, demographicchanges, the information revolution and trends towards service society have changed the rules of thegame significantly. “In this scenario, organizations with similar set of resources gain competitiveadvantage only through effective and efficient management of human resources” (Dessler). The roleof HR manager is shifting from a protector and screener to the planner and change agent. In presentday competitive world, highly trained and committed employees are often a firm’s best bet. HRmanagers plays an important role in planning and implementing down sizing, restructuring and othercost-cutting activities. They make the organization into more responsive to innovations and technological changes. Employees are the assets of corporate success. HR professionals can help theorganization in selecting and train the employees for any emerging situations and promote commitments of all employees at various levels. In this case the employees can work willingly and enthusiastically and thus a competitive advantage to the organization. Now, employees are seen as the sourcesof competitive advantages.A companies human resources represents one of the most potent and valuable resources. Consequently, the extent to which a workforce is managed effectively is a critical element in improving andsustaining organizational performance. Managing people is one of the most difficult aspects oforganizational management; it means dealing with people who differ physically and psychologically.Human Resources Management emerged as a practiced personnel function, promising flexibility, andresponsiveness and marked increased in the value of the employee. The organizational context inwhich the human resources management finds itself currently is one of the rapid change andconsiderable uncertainty. Human resources management is also in the process of change with regardto the nature of the role performed. In the past, human resources management professionals performed many functions themselves. The role they are taking on now is one of consultant to linemanagers, where line managers perform many functions traditionally handled by human resourcesmanagement professionals. Similarly, the trend is for business to shed all functions not directlyrelated to core business.The changes surrounding us are not mere trends but the working of large, unruly forces,globalization, which has opened enormous new markets and a necessary corollary, enormous numbersof new competitors; the spread of information technology and the growth of networks; the dismantling of the corporate hierarchy and the politically charged down sizing and job disruption thataccompany it.The new economy is moving away from being asset-intensive towards becoming more knowledgeintensive. The focus is thus moving from providing product to providing services. As most organizations have access to the Internet and the latest technology, the people within the organization providethe competitive advantage, not the product or the technology. In the new economy, people are an

Human Resources Management: Context, Concept and Boundaries7organizations greatest asset. It is the role of human resource management and the human resourceprofessional to nurture this asset. The new sources of sustainable competitive advantage in the neweconomy have the people at the center-creativity and talent, their aspirations and hopes, their dreamsand excitement. The companies that flourish in this decade will do so because they are able to providemeaning and purpose, a context and frame that encourage individual potential to flourish and grow.Thus human resources management has an important and essential role to play in organizations in thenew economy. To fulfill this role, organizations will needs to evaluate their exist

1.3 Definition of Human Resources Management 3 1.4 A New Mandate for Human Resources 4 1.5 Changing Role of the Human Resource Management 5 1.6 Managing human resources in the emerging scenario 7 1.7 Evolution of Management of Human Resources: An Indian Perspective 10 References 16 2. THE CONCEPT, SCOPE AND FUNCTION OF HUMAN RESOURCE OF .