Human Resource Management Introduction

HUMAN RESOURCE MANAGEMENT: DEFINITION, EVOLUTION, SCOPE

HUMAN RESOURCE MANAGEMENT

INTRODUCTION

For any organisation to run effectively, money is not enough, it must have resources of men (Human Resource), materials and machinery also. The resources by themselves cannot fulfil the objectives of an organisation, they need to be collected, co-ordinated and utilised through human resources. And, the effective management of human resources came in to its existence. Hence, Human Resource Management (HRM) has emerged as a major function in organisations.

DEFINITION OF 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. 

Human Resource Management involves management functions like planning, organizing, directing and controlling

·       It involves procurement, development, 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 involves team spirit and team work.

·       It is a continuous process.

STAGES OF HRM EVOLUTION:

HRM activities have probably been performed since ancient times. The pioneering work of Peter Drucker and Douglas McGregor in the 1950s laid its formal foundation.

Modern concept of HRM has developed through the following stages (Gupta, 1997).

a) The Commodity Concept: Before industrial revolution, the guild system was the beginning of personnel management. Guild was a closely-knit group concerned with selecting, training, rewarding and maintaining workers. Labour began to be considered a commodity to be bought and sold.

b) The Factor of Production Concept: Employees were considered a factor of production just like land, materials, machinery. Taylor’s scientific management stressed proper selection and training of employees so as to maximise productivity.

c) The Paternalistic Concept: Employees organised together on the basis of their common interest and formed trade unions to improve. Also employers began to provide schemes to workers. Employers assured a fatherly and protective attitude towards their employees.

d) The Humanitarian Concept: It is based on the belief that employees had certain inalienable rights as human beings and it is the duty of the employer to protect. Rather social and psychological satisfaction was equally important. Hawthorne Experiments of Douglas McGregor also generated considerable interest in human problems of work place. This is also known as human relations concept.

e) The Behavioural Human Resource Concept: It aimed at analysing and understanding human behaviour in organisation. Motivation, group dynamics, organisational climate, organisational conflict etc. became popular under this concept. Employees began to be considered as valuable assets of an organisation. Efforts were made to integrate employee with the organisation so that organisational goals and employees’ aspirations could be achieved simultaneously. Focus shifted towards management practices like two-way communication, management by objectives, role of informal groups, quality circles etc.

f) The Emerging Concept: Now employers are considered as partners in industry. They are given share in company’s stock membership. Slowly and steadily, HRM is emerging as a discipline.

SCOPE OF HUMAN RESOURCE MANAGEMENT

According to Dale Yoder, the scope of human resource management is very wide. It consists of the following functions:

i) Setting general and specific management policy for organisational relationships, and establishing and maintaining a suitable organisation for leadership and co-operation.

ii) Collective bargaining, contract negotiation, contract administration and grievance handling.

iii) Staffing the organisation, finding, getting and holding prescribed types and number of workers.

iv) Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as well as for acquiring requisite skill and experience.

v) Developing and maintaining motivation for workers by providing incentives. 

vi) Reviewing and auditing manpower management in the organisation.

vii) Industrial relations research—carrying out studies designed to explain employee behaviour and thereby effecting improvement in manpower management.

The Indian Institute of Personnel Management has described the scope of human resource management into the following aspects:

1) The Labour or Personnel Aspect: 

It is concerned with manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training and development, layoff and retrenchment, wage and salary administration (remuneration), incentives, productivity, etc.

2) The Welfare Aspect: 

This aspect is concerned with working conditions and amenities such as canteens, creches, rest rooms, lunch rooms, housing, transport, education, medical help, health and safety, washing facilities, recreation and cultural facilities, etc.

3) The Industrial Relations Aspect: 

This is concerned with the company’s relations with the employees. It includes union-management relations, joint consultation, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc.

All the above aspects are concerned with human element in industry as distinct from the mechanical element.

Great Quotations on human resource

"You must treat your employees with respect and dignity because in the most automated factory in the world, you need the power of human mind. That is what brings in innovation. If you want high quality minds to work for you, then you must protect the respect and dignity. " ---Mr N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd .

“Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource.” 

- John F. Kennedy (35th President of the United States).