DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT PREPARED BY: SZUSA HUSANA LPT, RPm , CHRA
What is Human Resource Management? Human Resource Management is the process of recruiting , selecting , inducting employees , providing orientation , imparting training and development , appraising the performance of employees, deciding compensation and providing benefits , motivating employees , maintaining proper relations with employees and their trade unions, ensuring employees safety, welfare and healthy measures in compliance with labour laws of the land and finally following the Orders / Judgements of the concern High Court and Supreme Court, if any.
What is Human Resource Management?
What is Human Resource Management? Human Resource Management deals with the management functions like planning, organizing, directing and controlling It deals with procurement of human resource , training & development and maintenance of human resource. It helps to achieve individual, organizational and social objectives Human Resource Management is a multidisciplinary subject. It includes the study of management, psychology, communication, economics and sociology. It also deals with building team spirit and team work. It is a continuous process.
Historical Milestones In HRM Development George Elton Mayo Mayo is known as the founder of the Human Relations Movement, and is known for his research including the Hawthorne Studies (The "Hawthorne effect" refers to improvements in worker productivity or quality that results from the mere fact that workers are being studied or observed Father of Human Resource Management
Historical Milestones In HRM Development Frederick Taylor , known as the father of scientific management, played a significant role in the development of the personnel function in the early 1900s
Historical Milestones In HRM Development 1890-1910 Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive-based compensation systems to motivate employees. 1910-1930 Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection. 1930-1945 The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity. 1945-1965 In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage. 1965-1985 The Civil Rights movement in the U.S. reaches its apex with passage of the Civil Rights Act of 1964. The personnel function is dramatically affected by Title VII of the Civil Rights Act , which prohibits discrimination on the basis of race, color, sex, religion, and national origin. In the years following the passage of the CRA, equal employment opportunity and affirmative action become key human resource management responsibilities. 1985-present Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to "managing diversity." A second trend is the globalization of business and the accompanying technological revolution. These factors have led to dramatic changes in transportation, communication, and labor markets. The third trend, which is related to the first two, is the focus on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency.
What is the importance of Human resource? Behind production of every product or service there is an human mind, effort and man hours (working hours). No product or service can be produced without help of human being. Human being is fundamental resource for making or construction of anything. Every organization desire is to have skilled and competent people to make their organization competent and best. Among the five Ms of Management , i.e., men, money, machines, materials, and methods , HRM deals about the first M, which is men. It is believed that in the five Ms , "men" is not so easy to manage. "every man is different from other" and they are totally different from the other Ms in the sense that men possess the power to manipulate the other Ms. Whereas, the other Ms are either lifeless or abstract and as such, do not have the power to think and decide what is good for them.
Difference between Personnel Management and Human Resource Management Personnel management is the seed and root for Human resources management. To say in simple words Human resource management is evolved from the Personnel management. Main principle of the Personnel Management was to extract work from an employee for the remuneration paid to them. Employees during the Personnel management era were not given high priority in decision making process and weren't much allowed to interact with management. Personnel management was more confined to the factories and the main focus of the Personal manager was to see that everything was in compliance with the labour laws or not but not much emphasis made on the morale of employees. Employees were just treated as tools, obligation to the organisation but not as the asset of the organisation , besides they were seen as cost & expenditure to company rather than capital and investment. Personnel officers mostly used be disciplinary oriented instead of flexible and interactive with employees. Nurturing of employees was not priority by the personnel managers and employees perspective was ignored which means personnel managers rather than understanding situation they used to be punitive if any error was committed by employee.
Difference between HRD and HRM Both are very important concepts of management specifically related with human resources of organisation . Human resource management and human resource development can be differentiated on the following grounds: The human resource management is mainly maintenance oriented whereas human resource development is development oriented. Organisation structure in case of human resources management is independent whereas human resource development creates a structure, which is inter-dependent and inter-related. Human resource management mainly aims to improve the efficiency of the employees whereas aims at the development of the employees as well as organisation as a whole. Responsibility of human resource development is given to the personnel/human resource management department and specifically to personnel manager whereas responsibility of HRD is given to all managers at various levels of the organisation . HRM motivates the employees by giving them monetary incentives or rewards whereas human resource development stresses on motivating people by satisfying higher-order needs.