THE ROLE OF MANAGING PEOPLE AT WORK cH i.pptx

management

1. THE ROLE OF MANAGING PEOPLE AT WORK Introduction to Human Resource Management Every organisation is essentially a blend of material and Human Resource (HR). Material refers to money and machines pre-arranged by organisations for production or trade. Human Resource, on the other hand, refers to the knowledge, education, skills, training and ability of the members of the organisation. Human resources are the most valuable and unique assets of an organisation. The successful management of an organisation's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of change. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. Even though specific human resource functions/activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organisation. Concept of Human Resource Management Today’s organisations constantly mould itself to meet the business challenges despite economic, political and social patterns in which it exists. The efforts made by organizations to sustain business metrics like revenue, profits and growth, market share is possible only through the people in the organization who work towards making this happen within the enterprise. One of the most useful definitions of Human Resources Management (HRM) is provided by Fisher, Schoendfelt and Shaw in their book “Human Resources Management,“ HRM involves all management decisions and practices that directly affect or influence the people or Human resources who work for the organization”.

2. THE CONCEPT OF HUMAN RESOURCE The concept of human resources entails: - Total knowledge - Skills - Creative abilities - Talents - Aptitudes of an organisation’s workforce - Values - Attitudes - Belief of the individuals involved A human resource manager has to build an effective workforce, handle the expectations of the employees and ensure that they perform at their best. He or she also has to take into account the firm’s responsibilities to the society that it operates in. It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organisation. Human resource management outlines the importance of HRM and its different functions in an organisation. It examines the various HR processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organisation

3. OBJECTIVES & SCOPE Objectives of HRM The objectives of HRM can be classified into the following: - To act as a link between the top management and the employees. --To arrange and maintain adequate manpower inventory, which in turn, ensures the smooth working of the organisation. - To offer training as a way of developing skills, enhancing productivity and most importantly, increasing individual and organisational performance to achieve the desired results. - To devise employee benefit schemes for improving employee motivation and group morale, and enhancing employer-employee cooperation. - To ensure and enhance the quality of work life, which refers to the employees’ perception of their physical and psychological well-being at work. To help keep up ethical values and behaviour amongst employees both within and outside the organisation. Scope of Human Resource Management We may classify the scope of HRM under the following heads: HRM in personnel management – This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, and employee productivity. The overall objective is to ascertain individual growth, development and effectiveness which indirectly contribute to organisational development. It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, travelling policies and procedures, and other related courses of actions.

4. SCOPE OF HRM HRM in employee welfare This particular aspect of HRM deals with working conditions and amenities at the workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services . It also covers appointment of safety officers, making the environment conducive for working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits. It also relates to supervision, employee counselling, establishing harmonious relationships with employees, education and training . Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both the management and the employees . In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc HRM in industrial relations Since employment relationship is a highly sensitive area, it needs careful interactions with labour or employee unions, address their grievances and effectively settle the disputes in order to maintain peace and harmony in the organisation Industrial relations is the art and science of understanding the employment (union-management) relations, joint consultations, disciplinary procedures, solving problems with mutual efforts, understanding human behaviour and maintaining work relations, collective bargaining and settlement of disputes.

5. SCOPE & HISTORY OF HRM The main aim is to safeguard the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on the organisation . It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management. History of Human Resource Management There is a vast difference between modern HRM and the personnel management that was prevalent decades ago. By the end of the twentieth century, the managerial philosophy that had defined the personnel function had undergone radical changes. Over the past several years, scientific management approach and the human relations approach appeared and then disappeared too. However, the human resource approach has gained prominence in recent times. Scientific management approach Fredrick Taylor, who is widely considered to be the father of scientific management, focused on motions that were required for each job, the tools used and the time needed to accomplish each task. Fair performance standards were then determined for each job, on the basis of such scientific data rather than on the superior’s subjective judgment. Those workers whose output exceeded the standards were given additional incentive pay. The base of scientific management was solely motivated by money and led to many problems.

6. HISTORY OF HRM Human relations approach The Hawthorne studies conducted during the 1930 and 1940s, forced organisations to shift their attention from scientific management approach to human relations approach. Hawthorne studies suggested that employee productivity was not only influenced by the way the job was designed and the economic rewards, but also by certain social and psychological factors. Feelings, emotions and sentiments of employees were greatly influenced by work conditions such as group relationships and management support. It was recognised that treating employees with respect would improve employee satisfaction and help in achieving higher productivity. Human resources approach Human resources approach treats people as resources, rather than factors of production, or as human beings who act on the basis of emotions alone. Some of the principles of human resource approach are: - Employees are assets to an organisation. - Policies, programmes and practices must cater to the needs of employees and should help them in their work and in their personal development. - The job and tasks are the primary motivators for employees. Individual employee needs must be catered to maintain motivation. - It is necessary to create and maintain a supportive work environment, to encourage the employees to develop and harness their knowledge and skills for the benefit of the organisation . - HR policies and practices should be in alignment with the goal of balancing individual and organisation’s needs .

7. HISTORY OF HRM When employees are considered as assets and treated individually, the level of motivation improves. This leads to more committed and better employee performance. Overall increase in the performance of employees leads to an increased organisational performance. When the organisation reaps benefits out of the increased performance, it is bound to share some of it to the employees in the form of employee rewards. Employee rewards may be monetary such as hike in salary or increments or it may be non-monetary such as change in designation, status, fringe benefits, etc. When employees realise that they are rewarded and respected for their efforts they are further motivated. Thus , the human resource approach helps the employees to achieve through a mutual process where the organisation and the employees help each other to achieve their goals as shown in figure 1.1.

8. Functions of Human Resource Management Figure 1.2 depicts the major functions that an HR manager has to carry out in any organisation. The extent of activities carried out by the HR is dependent on the size and scope of the organisation, the nature of operations and the attitude of management towards the employees

9. Functions of Human Resource Management Managerial functions of HR department The managerial functions of HR department include the following: Planning – Future course of action; it also includes identifying human resource requirements and forecasting personnel needs. Organising – Division of labour; assignment of responsibility is part of the organisation’s functions. Staffing – It is the process of obtaining and maintaining capable and competent personnel in various positions at all levels, i.e., manpower planning, recruitment, selection, placement and induction. Directing – It is the process of directing all the available resources towards the common organisational goals. Controlling – It is the measurement and rectification of activities to ensure that the events conform to plans . Operative functions of HR department Operative functions of HR department are those core functions that only the HR department is assigned to perform. These include functions such as employment of new personnel, developing their skill sets, compensating them for their efforts and maintaining employee relations. Figure 1.3 depicts the operative functions of HRM.

10. Operative functions of HR department Employmen t – Employment is the first operative function of HRM. This involves procuring and employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform various jobs. It includes functions such as job analysis, human resource planning, recruitment , selection, placement and induction. Figure 1.4 shows the different functions of employment The various functions of employment are: a) Job analysis – To ensure the satisfactory performance of an employee, his skills, abilities and motives to perform a job must match the requirements of the job.Job analysis is the process by which the tasks which comprise the job are determined and the skills and abilities required to perform it successfully are identified. b) HR planning – HR planning involves forecasting the human resource requirements of an organisation and the future supply of human resources, and making suitable adjustments between the two in correlation with the organisational plans.

11. Operative functions & HR developmen t c ) Recruitmen t – Recruitment is the process of seeking and attracting prospective candidates against a vacancy in the organisation. d ) Selection – The purpose of employment selection is to choose the right candidate for a job. e) Placement – After a selected candidate conveys his or her acceptance of the offer of employment made by an organisation, his or her placement has to be decided based on the needs of the organisation. f ) Induction – Introducing a new employee to the organisation, the organisation’s business, its culture, values and beliefs, and practices and procedures is termed as induction. HR development HR development concentrates on developing the workforce so that both the employees and the organisation in turn can achieve their goals. It focuses on strengthening the skills, knowledge and aptitudes of the employees. This includes functions starting with evaluating the performance of the employees, providing necessary training and development programmes to fill the gaps between current performances to the optimum performance of employees. HR development involves functions such as: a) Performance appraisal – This is the process of evaluating the performance of an employee on the job and developing a plan for the employee’s improvement. This includes an assessment of the strengths and weaknesses of the employee, and drawing up a development plan in consultation with him or her to prepare him or her for future tasks and responsibilities in the organisation. b) Training – Training is the systematic development of knowledge, skills and attitudes required to perform a given task or job successfully, in an individual. c) Management development – It is the concept of developing the employees of an organisation to meet future changes and challenges. d) Career planning and development – Career planning and development refers to identifying one’s career goals and formulating plans for achieving them through various means such as education and work experience

12. HR development Compensation – Compensation includes all the rewards that an employee receives during the course of his or her job–for his or her contributions to the organisation. Compensation encompasses base salary, incentives, bonus and benefits, and is based on job evaluation. Job evaluation – Job evaluation is a systematic determination of the value of each job in relation to other jobs in the organisation, in the industry and in the market. b) Wage and salary administration – Wage and salary administration is the process of formulating and operating a suitable wage and salary programme. c) Incentives – Incentives are the rewards that an employee earns in addition to regular wages or salary based on the performance of the individual, the team or the organisation. d ) Fringe benefits – Fringe benefits are monetary and non-monetary benefits given to employees during their employment, and sometimes, also in the post-employment period. These include housing facilities, canteen facilities, conveyance facilities, educational facilities for employees and their children, medical and welfare facilities, company stores, etc. Employee relati ons – Employee relations deals with the employees, in the organisational context, as a social group that contributes to the organisation. It includes: a) Increasing employee productivity. b) Keeping the employees satisfied and motivated. c) Developing team building, team management, leadership skills in employees. d) Designing and implementing a fast and suitable grievance management system. e) Ensuring discipline among the employees by prompt action to correct deviations. f) Supporting employees by counselling and developing them into complete individuals and responsible citizens. g) Enhancing the quality of both work and personal life of the employees .

13. Role of HR Executives Managing people is one of the biggest challenges for a manager. Few of the reasons are: - Individuals differ from each other in terms of their values, attitudes, beliefs and culture. This leads to a very complex situation. - The stimulating and motivational factors might not be the same for all employees. It is important to understand the individual needs of the employees and cater to those needs. This involves taking up different roles by the HR. The specialist role of HR manager includes: - Services provider - Administrative expert - Facilitator - Consultant - Auditor - Change agent - Employee advocate Let us now look into each of these roles in detail. Service provider – Management needs to gather information such as market statistics, pay rates and labour laws, and legislations from the market as well as from their competitors before making decisions on various employee related issues. Administrative expert – The administrative role involves record keeping and legal compliance. The HR is responsible for maintaining all records of the employees relating to their employment and also ensuring the organisation complies to the statutory health and safety, employee welfare measures. Facilitator – They act as a facilitator when training and development actions are planned and conducted and when performance appraisals are done.

14. Role of HR Executive s Consultant While supervising the employees, managers face many problems. Their problems may be due to lack of motivation, lack of training , job misfit and grievances relating to pay.They should know how to smoothly resolve such problems. Auditor HR specialists are responsible for ensuring that all members of the management perform their respective roles efficiently and also ensures that there is effective use of the human resources of the organization. Change agent It is the HR that helps organisations to implement changes and help employees adapt to changes. The HR is the first department that recognises the changes in the external environment and makes necessary changes within the organisation to help the organisation adjust to the changes without any hitches. When the market is not favourable, the HR may be busy with downsizing and when there are new prospects in future, the HR tries to ensure that the employees are well trained to take full advantage of it. Employee advocate HR employees are the link between the top management and the employees. The concerns of the employees are first reported to the HR personnel. They report these issues to the top management and try to resolve the issues. Thus , we have seen that the HR in any organisation has multiple roles to play. No HR can perform just one role. They may have to perform all the mentioned roles at different stages in their career as HR personnel.