Behind the production of every product or service there is human mind, effort and man hours (working hours). no product or service can be produced without help of human being. Human being is the fundamental resource for making or constructing anything. Today many experts claim that machines and technology are replacing human resource and minimizing their role or effort. But even machines and technology have been build by the human aid and besides companies have been continuously in search for talented, skilled and qualified professionals to further develop latest machines and technology, which again have to be controlled or used by humans to bring out products.
Meaning:
Human Resource Management is the process of recruitment, selection of employee, providing proper orientation and induction, providing proper training and the developing skills, assessment of employee (performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper relations with labour and with trade unions, maintaining employees safety, welfare and health by complying with labour laws of concern state or country.
Why name human resource management?
Altogether, human resource management is the process of proper and maximise utilisation of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organisation. The Best example at present situation is, construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.
Every organisations' desire is to have skilled and competent people to make their organisation more effective than their competitors. humans are very important assets for the organisation rather than land and buildings, without employees ( humans ) no activity in the organisation can be done. Machines are meant to to produce more goods with good quality but they should get operated by the human only.
"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, Infosys Ltd
Origin of HRM
It's believed that the first personnel management department began at the National Cash Register Co. in the early 1900s, according to an HR Magazine article. After several strikes and employee lockouts, NCR leader John H. Patterson organized a personnel department to handle grievances, discharges, and safety, as well as training for supervisors on new laws and practices.
Human Resource Management
For any organisation to function effectively, it must have resource of men (Human Resource), money, materials and machinery. 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 is also vital. Hence, Human Resource Management (HRM) has emerged as a major function in organisations. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
The administrative discipline of hiring and developing employees so that they become more valuable to the organization.
Human Resource management includes:
Conducting job analyses,
planning personnel needs, and recruitment,
selecting the right people for the job,
orienting and training,
determining and managing wages and salaries,
providing benefits and incentives,
appraising performance,
resolving disputes,
communicating with all employees at all levels. Formerly called personnel management.
Maintaining awareness of and compliance with local, state and federal labor laws.
These are also called as functions of human resource management for the purpose of effect you utilisation of human resource.
The historical rule of thumb for HR staffing requirements is one full-time professional HR person should be hired for every 100 employees. The actual ratio for a business can vary depending upon factors such as the degree of HR centralization, the geographic distribution of the employees served, the sophistication level of the employees, and the relative complexity of the organization.
The U.S. Office of Personnel Management (OPM) is the world's largest HR department. OPM provides HR services for the federal governments workforce of nearly 2.8 million workers. It's staff carry out the tasks to recruit, interview, and promote employees; oversee merit pay, benefits and retirement programs; and ensure that all employees and applicants are treated fairly and according to the law.
The ten "Cs" of human resources management are: cost effectiveness, competitive, coherence, credibility, communication, creativity, competitive advantage, competence, change, and commitment. The ten "Cs" framework was developed by Alan Price in his book "Human Resource Management in a Business Context".
The HR Director is a top-level manager responsible for the administration of all human resource activities and policies. The director oversees compensation, benefits, staffing, affirmative action, employee relations, health and safety, and training/development functions. They also supervise professional human resources staff.
Definitions: many great scholars had defined human resource management in different ways and with different words, but the core meaning of the human resource management deals with how to manage people or employees in the organisation.
Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”
The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”.
According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”.
OBJECTIVES OF HRM
Societal objective.To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions.
Organizational objective. To recognize that HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization.
Functional objective. To maintain the department's contribution at a level appropriate to the organisation's needs. Resources are wasted when HRM is more or less sophisticated than the organisation demands. A department's level of service must be appropriate for the organisation it serves.
Personal objective. To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organisation. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organisation.
Nature of Human Resource Management
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.
Why Is Human Resource Management Important to All Managers? Why are these concepts and techniques important to all managers? ’Perhaps it's easier to answer this by listing some of the personnel mistakes you don't want to make while managing. For example, you don't want to:
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company taken to court because of discriminatory actions
Have your company cited under federal occupational safety laws for unsafe practices
Have some employees think their salaries are unfair and inequitable relative to others in the organization
Allow a lack of training to undermine your department's effectiveness
Commit any unfair labour practices.