Objectives of HRP

The important objectives of manpower planning in an organization are

1. To recruit and retain the human resources of required quantity and quality.
2. To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies
3. To meet the needs of the program of expansion, diversification etc.,
4. To foresee the impact of technology on work, existing employees and future human resources requirements.
5. To improve the standards skill .knowledge,, ability, discipline etc.,
6. To assess the surplus or shortage of human resources and take measures accordingly.,
7. To maintain congenial industrial relations by maintaining optimum level and structure of human resources;
8. To minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place;
9. To make the best use of its human resources; and
10. To estimate the cost of human resources.

Role of Human Resource in Industry and Society:

Role of human resource or personnel manager in the industry and society arises from the fact that personnel are indispensible resources for carrying out any productive operation. To quote Oliver Sheldon, “No industry can render efficient so long as the basic fact remains unrecognized that it is principally human. It is not a mass of machines and technical processes but a body of men. An industrial society is conspicuous by complex nature of forces which influence the behaviour of individuals and groups within and outside their workplace.  The focus of personnel management for a long has been management of industrial relations including employer’s relationship with individual employee and the relationship between management and unorganized unions. The term  ‘industrial relations’ and ‘labour relations’ were popularly used with reference to personnel function due to rise in collective bargaining and other related functions.

The role of personnel management in industry is underlined by the complex and dynamic nature of environment under which the modern large-scale industries functions. The  impact of technology on organization structure, politicization of workers’ union, and the growing consciousness of industrial employees about their rights and privileges, have made the role of personnel management increasingly more important in industrial undertaking.

EVOULUTION OF HRM

Evolution and development of HRM consist of 11 stages beginning prior to the industrial revolutions in UK and continuing up to the present.

STAGE I: PRE-INDUSTRIAL ERA (1400 AD-1700 AD)

Pre-industrial period is characterized by the absence of any formal HRM with in organizations .But there were some dramatic changes which ignited the modern HRM. They are

• Cessation of feudalism, release of labour from land and the beginning of the free employment relationship.

• Shift from subsistence agriculture to a commercial mixed economy, a diffusion of economic control and distribution of wealth and income.

• Spectacular growth of town with the middle class and villages along with the middle class that included skilled craftsmen and merchants.

• Development of putting out or domestic system.

• Science, not rule of thumb.

• Harmony not discord.

• Cooperation not individualism and

• Maximum output in place of restricted output.

• Taylor’s proposal for functional management called attention to the need for a separate human resource function in organizations.

• Taylor demonstrated the feasibility of job analysis as a basis for employee selection, training, job evaluation and compensation.

• Taylor demonstrated that work and jobs can be systematically studied, analyzed, redesigned or improved upon.

• Taylor stressed the importance of proper selection procedures and training methods.

• Taylor advanced the idea of differential pay on the basis of productivity.

• Taylor highlighted the need for workers to be won over and led by management.

• The averting of industrial conflict and unionization.

• The promotion of good management and worker relations.

• The efforts to increase worker productivity and reduce turnover.

• Organizations became productivity conscious due to the need to operate in a global economy and the realization that competitive advantage is due to managing human resources.

• Widespread downsizing, restructuring and redesigning of organizations. As a result old hierarchical type structure with tight controls has given way to flatter structures and larger spans of control.

• Need for sound human resources strategy to effectively manage the highly diverse workforce of the future.

Today’s HRM functions are different from that of the past in many ways. Firstly today’s HRM is characterised by the emphasis on the integration of traditional PM activities as well as HRM’s involvement in overall organisational planning and change. Secondly HRM today is characterized as a partner in organisational change, creator of organisational culture and facilitator of organisational commitment. Third, HRM is characterised by the decentralisation of many of the traditional HRM activities from personnel specialists to senior line management. Fourth current HRM is characterized by a focus on individual employees rather than on collective management-trade union relations. Furthermore HRM has become a partner with other management functions and has become increasingly responsible to cultivate the requisite culture that is conducive of required behaviours.

STAGE II: INDUSTRIAL REVOLUTION AND THE FACTORY SYSTEM

Industrialization replaced the human effort and skill by machines. Factory system which was developed due to the industrial revolution gave birth to rationalization of work and division of work. Necessity of supervising was also introduced.

The personal practices become autocratic, based upon a commodity concept of labour, there was a total neglect of the human factor the focus was upon materials, markets and production. The factory owner delegated the responsibility to the foreman which eventually resulted in drive system of management that was characterized by the use of force and fear.

Stage III: Emergence of the Modern Corporation and Managerial Capitalism

The period of 1860 to 1900’s witnessed a growth in corporate form of organization, the separation of the operation from the ownership of firms and the employment of salaried managers. The modern enterprise along with managerial capitalism emerged.

In spite of organizational growth and technological advances there was no improvement in HRM. The traditional factory management practices were responsible for low productivity and wages, high rates of turnover and increase in labour and management conflicts.

Stage IV: Scientific Management, Welfare Work and Industrial Psychology

Scientific management (SM) and Welfare Work were responses by management to worker related problems in the factory. SM represented an effort to deal with labour and management inefficiencies through reorganization of production methods and rationalization of work. Welfare work represented the efforts to deal with labour problems by improving worker conditions. Industrial psychology represented the application of psychological principles towards increasing the efficiency of industrial workers.

The last quarter of the 19^th century saw engineers introducing dramatic changes that rationalized factory production and industrial management system. They introduced personnel practices to rationalize employment procedures.

FW Taylor’s Scientific Management

FW Taylor was the father of scientific management. He was concerned with worker inefficiency and the need for managers to gain the co-operative effort of the employees. Time and Motion studies became the heart of SM and represented a way of accurately determining the amount of work a man could do.

Taylor sums up SM as:

Taylor proposed SM as partial solution to labour problem because it would increase production at lower cost to employers and result in higher wages for workers as they would compensated according to their output.

Contributions of SM to HRM

Welfare Work:

Welfare Work like SM was an attempt at a more systematic approach to management. It has been defined as anything done for the comfort and improvement, intellectual or social, of the employees, over and above the wages paid, which is not a necessity of the industry, nor required by the law. The primary purpose was:

Industrial Psychology:

While SM focused on the job, Industrial Psychology focused on the worker and decreasing the psychological and physiological costs of work. Industrial Psychology began in 1931 when Hugo Munsterberg published Psychology and Industrial efficiency.

Stage V: World War 1 and the emergence of HRM as a profession (1911-1914).

World War 1 provided the apt conditions that resulted in the growth of business around the world, and the emergence of HRM as a profession. The war brought attention to the need for scientific personnel administration and the activities promoting the welfare and efficiency of workers. When the war ended personnel management evolved as a primary function along with financial, production and sales departments.

Effect of war on HRM.

A large number of firms  were established in us and the UK during 1951 and 1920 firms adopted functional management which removed the hiring and firing functions from the foreman and placed the responsibility to the employment or the personnel department, in addition the was an integration of HRM activities and welfare. The year 1981 recorded the birth of personnel management as a profession.

Stage VI: the human relations movement

From the early times HRM focused on human relations. Human relations were associated with Elton mayo. Human relations were responsible for the addition of the human factor.  Welfare work into industrial psychology in personnel profession it mainly focused on increasing productivity by discovering the needs of the workers, the way of managing people.

Hawthorne experiments actually showed that working conditions affected the productivity, which led to the beginning of human relations movement in 1945 and continued till 1960, it was later on was adapted as a new area of organizational behaviour. Human relations made the manager responsible for integrating the employees into work situation in a way that would motivate them to work together co-operatively and productively.

Differences between scientific management and human relations management

Scientific management focused on the requirements of the job and the economics rewards as motivational elements whereas human relations revealed the importance of non economic and social rewards as incentives. Sm helped to realize that workers have physical and psychological needs; human relations contributed the understanding that workers have social needs.

Stage V11: the golden age of industrial relations and the personnel management maintenance function, 1935-1970.

HRM function which evolved during the world war had a set back during the great depression. After depression there was an increased need of human relations management as a result of growth in formations of unions. The provision of several labour acts led to the formation of unions which resulted in the evolution of human relation functions. The general focus of HRM functions was on IR as the primary need was to operate in the collective bargaining framework of labour relations. Government involvement in the economy during the war also led to the evolution of personnel department in every company. 

Stage VIII: Quality of Work life Era.

During the mid 1960s and throughout 1970s there was a rise of viewpoint that employees should be considered as assets rather than liabilities. Efforts were taken to satisfy interest of both employer and employee through new policies and strategies that maximised overall productivity of the organisation.

Practises and programmes implemented.

The efforts of this era were driven by not only by a realisation that investment in human resource were sound and should show a considerable return but also by the changing nature of the workforce. As the work force is becoming more educated their attitude, value and belief about the role of the work and organisations were changing.

In many ways the quality of work life era was also promoted by a series of social security legislation passed during this period. These acts collectively exercised a substantial influence on both psychological and physical quality of work life in organisation.

Stage IX: The Emergence of Contemporary HRM Function.

Since the 1970s, the PM side of the HRM function has experienced an evolution from being a maintenance function, secondary to the IR function, to representing one of critical importance to the effectiveness of the organisation.

Changes in HRM Policies

Firstly there has been a trend in management to make strategic choices that has represented aggressive union avoidance policies and have resulted in a decrease in union representation of their workers.

Secondly much more reliance has been placed on the employer employee relations and dealing with employees directly as individuals rather than on management-union relations and dealing with employees indirectly and collectively.

Thirdly HRM aims at creating a sense of mutuality among the workers and management so that the workers are considered as assets to the organisations to attain competitive advantage.

Fourthly the successful application of Total Quality management (TQM) principles by Japanese companies contributed to the recognition that employees a virtual organisational resource.

Changes in HRM functions

Following were the changed functions-

Firstly PM implies human resource as expense whereas HRM indicates emphasis on human resource to be managed.

Secondly PM signifies human resource administrative sub functions, maintenance activities that are reactive, passive and secondary to other significant business function. On the other hand, HRM indicates a proactive approach, an integration of human resources sub functions, expansion of the function, position and strategic importance of HRM within the organisation.

STAGE X: STRATEGIC FOCUS ERA

By 1970 there was a complete change in the way people perceived HR function. Meyer referred HR directors as the new corporate heroes .There occurred many chief executive officers who rose to top ranks through HR function. In the M.B.A syllabus business strategy was merged with Human Resource Management which led to the emergence of Strategic Human Resource Management. Strategic HRM had brought HR function into closer contact with the top executives of the firm and has helped to graft a role for HRM as a strategic business partner.

STAGE XI: THE HRM FUNCTIONS TODAY

In the new era the function of HR get in to wide range which focus on the core results and objectives of the organisation. Thus the HR plays a immense role in identifying the  intellectual property to organisation and to create wealth.

Role of human resource manager in an organization

The human resource or personnel manager controlling to manage his department. He has also to perform certain operative functions of recruitment, selection, training, placement etc, which the other line managers may entrust to him. He is basically a manager whatever may be the nature of his operative functions. Just as finance assesses cost, marketing emphasizes customers, personnel is people-centred. Some of the important roles of human resources manager in an organization are:-performs managerial as well as operative functions. Since he is a manager, he performs the basic functions of management like planning, organizing, directing and controlling.

·         Policy Formulation:-

      Policy formulation is one of the important tasks of the human resource manager. It is with a view to overcome problems of recurring nature, or to prevent anticipated problems in the area of human resource management that policies are framed. The human resource manager helps the top management in the formulation of policies on wage and salary administration, transfer, appraisal, welfare activities, personnel records and statistics, working environment etc.

·         Advisory Role:-

      The advisory role of the human resource manager is of crucial importance. Line managers are generally confronted with a variety of problems in their day to day operations. These problems may include grievance over distribution of overtime work, annual increase in pay, transfer, promotion, disciplinary action and so on. In all such matters, the personnel manager can offer useful advice because he is familiar with personnel policies and practices, labour agreements, labour laws, etc.

·         Linking Pin Role:-

       The human resource manager attempts to achieve and maintain good industrial relations in the organization. He is responsible for setting up various committees on discipline, labour welfare, safety, grievance etc. He helps in laying down the grievance procedure to redress the grievances of employees. He also conveys the views of the trade union leaders to the higher management. Thus he acts as a linking pin between the management and the workers.

·         Representative Role:-

       The human resource manager generally acts as a spokesman of the top management or representative of the company and communicates management policies and decisions that affect people in the organization. It is because he has better understanding and overall picture of the company’s operation. Sometimes, he also acts as worker’s representative to put forward their problems to management, particularly in non-unionized organizations.

·         Decision-making Role:-

       The human resource manager also plays an effective role in decision-making on issues related to human resources. He formulates and designs objectives, policies and programs of human resource management.

·         Mediator Role:-

       The human resource manager often acts as a mediator in the event of conflict between employees, or groups of employees, superior and sub-ordinate, and even between management and employees. Thus he attempts to maintain industrial peace and harmony in the organization.

·         Leadership Role:-

       The human resource manager provides leadership and guidance to the workers and their groups. He ensures effective communication in the organization and influences the workers for extending their co-operation in extending the organizational objectives.  

·         Welfare Role:-

       The human resource manager acts as a welfare officer in the organization. As welfare officer, he is concerned with provision of canteen, crèches, transport, hospital and other welfare services for the benefit of workers and their family members.

·         Research Role:-

       The human resource manager maintains the records of the employees working in the enterprise. On the basis of records, he undertakes research in various personnel areas such as absenteeism, labour turnover, alcoholism etc and suggests suitable measures for improvement to the top management.

FUNCTIONS OF HRM

These are carried out by HR managers to fulfil the goals and objectives of the organisation. They are classified into two broad categories, managerial and operative functions.

Managerial functions:

•  Planning
• Organising
• Staffing
• Directing
• Controlling

Operative functions:

•  Induction and Orientation
• Placement
• Selection
• Recruitment
• Human Resources Planning
• Job Analysis
• Employment

MANAGERIAL FUNCTIONS:

Planning:

It involves the process of pre-determining the personnel programmes that are necessary to attain the organisational goals. Accurate forecasting is vital to the success of any plan. The steps involved in the planning are:

·        Establishing goals and objectives to be achieved

·        Developing rules and procedures

·        Determining plans and forecasting techniques

Organising:

It’s a process through which the firm establishes its structure and determines the authority, responsibility and accountability of each member in relation to the job. Organising involves:

·        Giving each member a specific task

·        Establishing departments and divisions

·        Delegating authority to the members

·        Establishing channel of authority and communication

·        Creating a system to coordinate the works of the members

Staffing:

This deals with the creation and maintenance of human resources through employment, compensation, benefits, training and development and industrial relations measures. The steps are:

·        Determining the type of people to be hired

·        Recruiting prospective employees and selecting the best ones from them

·        Compensating the employees

·        Training and developing the employees

·        Setting performance standards and evaluating the employees performance

·        Counselling the employees

Directing:

It’s the sum of several activities like communication, leadership and motivation. Directing as a function, aims at securing willing cooperation from the individuals and groups to achieve the predetermined goals. It includes the following activities:

·        Getting works done through subordinates

·        Motivating subordinates to strive for better performance

·        Maintaining the group morale

Controlling :

Is the process of checking the efficiency of the individuals and the groups in fulfilling the plans and goals through follow-up measures? The processes involved are:

·        Establishment of standard performance

·        Measurement of actual performance

·        Comparison of actual performance with the standard one to find the deviation

·        Initiation of corrective action

OPERATIVE FUNCTION

The operative functions of personnel management are related to specific activities of personnel management viz., employment, development, compensation and relations. All these functions are interacted by managerial functions. Further these functions are to be performed in conjunction with management functions.

Employment

It is the first operative function of HRM. Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility.

Job Analysis:

 It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes:

• Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials.
• Preparation of job description, job specification, job requirements and employee specification which help in identifying the nature, levels and quantum of human resources.
• Providing the guides, plans and basis for job design and for all operative functions of HRM.

Human Resources Planning:

It is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. It involves

·        Estimation of present and future requirement and supply of human resources basing on objectives and long range plans of the organization.

·        Calculation of net human resources requirement based on present inventory of human resources.

·        Taking steps to mould, change, and develop the strength of existing employees in the organization so as to meet the future human resources requirements.

·        Preparation of action programs to get the rest of human resources from outside the organization and to develop the human resources of existing employees.

Recruitment:

It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It deals with:

·        Identification of existing sources of applicants and developing them.

·        Creation / Identification of new sources of applicants.

·        Stimulating the candidates to apply for jobs in the organization.

·        Striking a balance between internal and external sources.

Selection:

It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an applicant with a view to appraising his / her suitability to a job appraising.

This function includes:

·        Framing and developing application blanks.

·        Creating and developing valid and reliable testing techniques.

·        Formulating interviewing techniques.

·        Checking of references.

·        Setting up medical examination policy and procedure.

·        Line manager’s decision.

·        Sending letters of appointment and rejection.

·        Employing the selected candidates who report for duty.

Placement:

 It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employees specifications with job requirements. This function includes:

·  Counselling

·        Conducting follow-up study, appraising employee performance in order to determine employee’s adjustment with the job.

·        Correcting misplacements, if any.

Induction and Orientation:

 Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes and people etc., of the organization.

·        Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc.

·        Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates.

·        Mould the employee attitude by orienting him to the new working and social environment.

CHALLENGES OF HRM IN MODERN MANAGEMENT

The following are the challenges faced by Organizations in HRM due to changes in the business environment.

Globalization: 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.

Corporate Reorganizations: Reorganization relates to mergers and acquisitions, joint ventures, take over, internal restructuring of Organizations. In these situations, it is difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations itself. It is a challenge to manage employees’ anxiety, uncertainties, insecurities and fears during these dynamic trends.

New Organizational Forms: The basic challenge to HRM comes from the changing character of competitions. The competition is not between individual firms but between constellations of a firm. Major companies are operating through a complex web of strategic alliances, forgings with local suppliers, etc. These relationships give birth to completely new forms of Organizational structure, which highly depend upon a regular exchange of people and information. The challenge for HRM is to cope with the implications of these newly networked relations, in place of more comfortable hierarchical relationships that existed within the Organizations for ages in the past.

Changing Demographics of Workforce: Changes in workforce are largely reflected by dual career couples, large chunk of young blood between age and old superannuating employees, working mothers, more educated and aware workers etc. These dynamic work forces have their own implications for HR managers and from HRM point of view is a true challenge to handle.

Changed Employee Expectations: With the changes in workforce demographics, employee expectations and attitudes have also transformed. Traditional allurements like job security, house, and remunerations are not much attractive today; rather employees are demanding empowerment and equality with management. Hence, it is a challenge for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating employees.

Weaker Society Interests: Another challenge for HRM is to protect the interest of weaker sections of society. The dramatic increase of women workers, minorities and other backward communities in the workforce has resulted in the need for Organizations to re-examine their policies, practices and values. In the name of global competition, productivity and quality the interests of the society around should not be sacrificed. It is a challenge of today’s HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated against while in service.

Contribution to the Success of Organizations: The biggest challenge to an HR manager is to make all employees contribute to the success of the Organization in an ethical and socially responsible way because the well being of the society’s to a large extent depends on its Organizations