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Unit 21: Human Resources Management
Executive
Summary
•
The People department
serves as the backbone to every organization. Traditionally referred to
as human resources, the people team defines how a company manages its employees
and establishes company culture. As today’s HR managers know, HR manages
numerous processes that occur in constant cycles. Incremental
improvements in the accessibility and security of employee information can
result in significant increases in efficiency and cost-savings.
•
In all established companies, from the growing software
start-up to multi-national banks, the HR department operates in a multi-faceted
role. As an independent business unit, HR owns the management of its
employees. As a business partner to other internal departments, the
people team often works with department heads on various organizational
development initiatives, including resource planning, employee relations, risk
management and performance management.
Introduction
The
terms ‘human resource management’ (HRM) and ‘human resources’ (HR) have largely
replaced the term ‘personnel management’ as a description of the processes
involved in managing people in organizations. The concept of HRM underpins all
the activities, the
Various
models of HRM and discussing it’s aims and characteristics.
Human
resource management is defined as a strategic and coherent approach to the
management of an organization’s most valued assets – the people working there
who individually and
Collectively
contribute to the achievement of its objectives. Storey (1989) believes that
HRM can be regarded as a ‘set of interrelated policies with an ideological and
philosophical underpinning’.
HUMAN RESOURCE MANAGEMENT
What Is
Human Resource Management?
An Organization entails of people with formally delegated
roles who work together to achieve the organizations goals. A Manager is
the person responsible for carrying out the organizations goals, and who does
so by overseeing the efforts of the organization’s people.
•
Human Resource Management is the
process of acquiring, training, appraising, and compensating employees, and of
attending to their labor relations, health and safety, and fairness concerns.
These Include:
•
Conducting Job analyses
•
Planning labor needs
•
Selecting Job candidates
•
Orienting and training new employees
•
Managing wages and salaries
•
Providing incentives and benefits
•
Appraising performance
•
Communicating
•
Training and developing
•
Building employee commitment
Human
Resource Manager’s Duties?
•
Line Function
The human resource manager guides the activities of the
people in his or her department, and perhaps in related areas (like Company’s
Warehouse).
•
A Coordinative Function
The human resource manager organizes personal activities, a
duty often referred to as functional authority (or functional control). Here he
or she ensures that line managers are contravening the firm’s human resource
policies and practices (for example, adhering to ethic’s policies)
•
Staff (assist and advise) Functions
•
Assisting and advising Line managers
is the nucleus of the human resource manager’s Job. Here he or she counsels the
CEO, so the CEO can better understand the personal aspects of the company’s
strategic options
What is
Personnel Management?
•
"Personnel Management is that
stage of management which deals with the effective control and use of manpower
as illustrated from other sources of power. The methods, tools, and techniques
designed and operated to secure the enthusiastic participation of labor
represent the subject matter for study in personnel administration." ~
Dale Yoder
It is the sub-system of the whole management structure in an
organization. The production and distribution of goods and services is
succeeded by the Personnel department. This department assesses the efficiency
of the workers and also provides them incentives which can be either monetary
or non-monetary. They also assign the departments such as sales and marketing,
production, maintenance, etc., where the employee has to work, depending on the
skills and knowledge occupied by the employee.
Functions
of Personnel Management
•
Building the organizational
structure and planning
•
Managing the wage and salary of the
employees and provide appraisals
•
Offering employee benefits and
services such as insurance plans, pension plans, fringe benefits, Provident
Funds (PF), etc.
•
Negotiating on labor union
activities like collective bargaining, trade union issues, contract agreements,
grievance handling, etc.
•
Auditing the employee policies and
practices, to ensure the adeptness of those policies.
MANPOWER
PLANNING
Manpower Planning which is also called as Human Resource
Planning comprises of putting right number of people, right kind of people at
the right place, right time, doing the right things for which they are
befitting for the achievement of goals of the organization. Human Resource
Planning has got a crucial place in the arena of industrialization. Human
Resource Planning has to be a systems approach and is carried out in set
formulae.
The system
as follows:
•
Analyzing the current manpower
inventory
•
Crafting future manpower forecasts
•
Evolving employment programmers
•
Designing training programs
Importance
of Manpower Planning
•
Key to managerial functions
•
Efficient utilization
•
Motivation
•
Better human relations
•
Higher productivity
Functions
of Human Resource Manager
The human resources of a corporation consist of all people
who perform its activities. "Human resource management (HRM) is affected
by the personnel policies and managerial practices and systems that impact the
workforce. It can be defined as a strategic and articulate approach of an
organization’s most valued assets - the people working there, who individually
and collectively donate to the achievements of the objectives of the business.
Professor Pfeffer (Bernadin, H.J.,) clarifies that
"traditional sources of success (e.g., speed to market, financial,
technological) can still endow competitive leverage, but to a lesser degree now
than in the past, withdrawing organizational culture and capabilities, derived
from how people are managed, as comparatively more vital."
The performing’s of HRM (Human Resource Management) are to
employ people, to develop their resources and to employ maintain and to
reimburse their services for the organization etc.
Organizational
Design
Acquiring HRM capability should begin at the origins and
involves collaborations between people, technology and the tasks to be
performed in framework with the organizations objectives, goals and strategic
plan (e.g. job design, team building, restructuring etc.)
Furthermore the staffing, which involves recruitment, employee
orientation, selection, promotion and termination and the performance
management including individual calculations, improving progressions and
measuring work performance
HRM is also concerned with employee and organizational
development programs to sustain and improve employee skills as well as reward
systems, benefits and acquiescence available for staff (similarly: laws,
policies, health and safety)
Each and every of these functions influences concurrently
performance. One can say that HMR is affected with maintaining and ideally
enlarging organizational performance and profit. This is done by managing the
human resources with a focus on intensifying customer base that gives profit to
the company
HRM can clout the motivation in several ways, for example it
can implement merit pay or incentive compensation systems for achieving
specific goals. For example, changes in merit pay and promotion policies might
transform employee perceptions of reward orientation and of equity and fairness
conceivably.
Contributing
To Organizational Purposes
If a retail business like Marks & Spencer offers its
employees rewards in kindred to their individual sales it will increase their
impelling power and make them more sales oriented and cut-throat, due to the
personal advantage. These will instantaneously increase the sales of the
organization and thus the profit. Marks and Spencer`s have more well defined
three-month bonus periods in which if a store makes a higher profit than
anything they forecast, they will receive a bonus etc.
HRM also sets the responsibilities to be performed within
the organization, how many staff is required and which position involves which
tasks, which is why the staffing level performs for example an important role
for organizational performance and staff`s motivation leads to an optimum of
workforce use and to good organizational performance
Finally, Delaney et al, states that how the workplace is
structured should affect organizational performance to the degree that skilled
and motivated employees are involved in determining what caliber work is
performed and how this work gets undertaken
An effective work structure will proliferate financial
performance as indexed by productivity, cash flow, and market value because it
raises employee’s motivation and thus productivity / performance.
Roles and
Responsibilities of Line Managers
Line authority gives managers the right (or authority) to
issue influence to issue orders to other managers or employees. It creates a
superior-subordinate relationship. Line managers have line authority. The
direct conduct of people has been an integral part of every line manager’s
duties, from president down to first-line supervisors.
Responsibilities
Include
•
Placing the right person on the
right Job
•
Starting new employees in the
organization (orientation)
•
Training employees for jobs that are
new to them
•
Improving the job performance of
each person
•
Gaining Cooperation and developing
smooth working relationships
•
Creating and developing maintaining
department morale
•
Protecting employee’s health and
physical condition
•
Interpreting the company’s policies
and procedures
•
Developing the abilities of each person
Line Managers
Line staff relationship is generally
collaborative. For example, in recruiting and hiring, the line manager
describes the credentials employees need to fill specific posts. Line managers,
who interviews and selects the one he or she wants.
In training, the line manager again
describes again describes what he or she describes what he or she expects the
employee expects the employee to be able to do.
Legal and Regulatory Framework
