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  • Human Resource Management Unit 1

    Sikkim Manipal University Page No. 1

    Unit 1 Introduction to Human Resource Management

    Structure:

    1.1 Introduction to Human Resource Management

    Objectives

    1.2 Concept of Human Resource Management

    1.3 Scope of Human Resource Management

    1.4 History of Human Resource Management

    1.5 Function of Human Resource Management

    1.6 Role of HR Executives

    1.7 Summary

    1.8 Glossary

    1.9 Terminal Questions

    1.10 Answers

    1.11 Case Study

    1.1 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.

    In this unit, we shall look into the concept of Human Resource Management

    (HRM), its functions and roles in detail.

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    Objectives:

    After studying this unit, you should be able to:

    describe the concept of HRM

    define the scope of HRM

    describe the history of HRM

    explain the functions of human resource

    recognise the role of HR executives

    1.2 Concept of Human Resource Management

    Todays 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.

    The concept of human resources entails:

    Total knowledge

    Skills

    Creative abilities

    Talents

    Aptitudes of an organisations 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 firms 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

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    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.

    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.

    Self Assessment Questions

    Fill in the blanks:

    1. A HR Manager has to build an effective ____________, handle the

    expectations of the employees and ensure that they perform at their

    best.

    2. One of the major objectives of HRM is to act as a link between the

    ____________ and __________.

    3. HRM examines the various HR processes that are concerned with

    attracting, managing, ______ and ______ employees for the benefit of

    the organisation.

    1.3 Scope of Human Resource Management

    In the previous section we discussed the concept and objectives of HRM.

    Let us now discuss the scope of HRM in an organisation.

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    The scope of HRM is wide and far-reaching. An understanding of HRM is

    important to anyone who is employed in an organisation. HR issues become

    important wherever there is a group of workers. Staffing is performed by all

    the managers as a managerial function, either directly or indirectly through

    HR department. All managers are, in this way, HR managers, since they get

    involved in HR activities such as selecting, training, inducting, compensating

    and motivating the employees along with industrial relations activities.

    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.

    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,

    crches, rest and lunch rooms, housing, transport, medical assistance,

    education, health and safety, recreation facilities, etc.

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    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.

    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.

    Self Assessment Questions

    Match the following:

    4. Personnel management (a) working conditions and workplace

    amenities

    5. Employee welfare (b) promotes industrial democracy

    6. Industrial relations (c) Direct manpower management

    1.4 History of Human Resource Management

    In the previous unit we discussed the scope of HRM and its classification

    under different headings. Let us now discuss the history of HRM.

    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.

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    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 superiors 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.

    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.

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    HR policies and practices should be in alignment with the goal of

    balancing individual and organisations needs.

    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

    Employee

    Motivation

    Employee

    Performance Employee

    Rewards

    Organisational

    Performance

    Fig. 1.1: Human Resource Approach

    [Source: ICFAI Center for Management Research]

    Self Assessment Questions

    Fill in the blanks:

    7. _________ is considered to be the father of scientific management.

    8. __________ 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.

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    9. __________ approach states that HR policies and practices should be

    in alignment with the goal of balancing individual and organisations

    needs.

    Activity 1:

    Browse the Internet and prepare a report on the implications of

    Hawthorne Studies.

    (Hint: Refer to:

    1. http://www.enotes.com/hawthorne-experiments-

    reference/hawthorne-experiments

    2. http://www.nwlink.com/~donclark/hrd/history/hawthorne.html)

    3. http://www.accel-team.com/motivation/hawthorne_02.html

    1.5 Function of Human Resource Management

    In the previous section we discussed the history of HRM and analysed the

    various approaches towards HRM. Let us now describe the functions of

    HRM.

    Human resource management involves blending the traditional

    administrative functions along with the changing concepts of employee

    welfare in the organisation. Organisations now regard employees as a

    precious resource and spend more efforts to retain them. The retention of

    employees is dependent on how they are perceived and treated in the

    organisation based on their performance, abilities and skills.

    Human resource managers are involved right from identifying potential

    candidates for jobs to their separation from the organisation. They

    encourage communication amongst the employees and also promote better

    employer employee relationship.

    Organisational performance depends directly on how efficiently and

    effectively the HR department functions. It is the quality of the human

    resources available to the organisation that primarily determines the quality

    of the products and services produced by the organisation. The HR

    personnel are the key link between the top management and the

    employees. Today, HRM operates in tune with other essential organisational

    requirements and co-exists with the topmost management cadre. It thrives

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    on the strength of the relationship between the management and the

    workers of the company.

    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.

    10

    MISSION OF AN ORGANISATION

    VISION & OBJECTIVES

    HRM OBJECTIVES

    STRATEGIES AND POLICIES OF HRM

    MANAGERIAL FUNCTIONS OF HRM

    OPERATIVE FUNCTIONS OF HRM

    P

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    G EMPLOYMENT HUMAN

    RESOURCES

    DEVELOPMENT

    EMPLOYEE

    RELATIONS

    CONPENSATION

    MANAGEMENT

    HUMAN

    RESOURCES

    DEVELOPMENT

    RECRUITMENT

    SELECTION

    PLACEMENT

    PERFORMANCE APPRAISAL

    TRAINING

    MANAGEMENT DEVELOPMENT

    PERFORMANCE APPRAISAL

    JOB

    EVALUATION

    WAGE AND

    SALARY

    FRINGE

    BENEFTS

    ORGANISATION CHANGE AND

    ORGANISATION DEVELOPMENT

    MOTIVATION

    MORALE

    JOB SATISFACTION

    COMMUNICATION

    GRIEVANCE AND

    DISCIPLINARY PROCEDURE

    INDUCTION

    Fig. 1.2: Flow Chart of Functions of HRM

    [Source: Rao, Subba (2011). Essentials of HRM and Industrial Relations,

    3rd

    Ed. Himalaya Publishing Pvt Ltd.]

    HRM functions can be broadly classified into the following two categories:

    1. Managerial functions

    2. Operative functions

    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.

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    Organising Division of labour; assignment of responsibility is part of

    the organisations 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.

    Fig. 1.3: Operative Functions of HRM

    Let us now discuss the operative functions of HRM.

    Employment 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,

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    recruitment, selection, placement and induction. Figure 1.4 shows the

    different functions of employment.

    Fig. 1.4: 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.

    c) Recruitment 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.

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    f) Induction Introducing a new employee to the organisation, the

    organisations 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 employees 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 ones career goals and formulating

    plans forachieving them through various means such as education

    and work experience.

    Compensation Compensation includes all the rewards that an

    employee receives during the course of his or her jobfor his or her

    contributions to the organisation. Compensation encompasses base

    salary, incentives, bonus and benefits, and is based on job evaluation.

    a) Job evaluation Job evaluationis a systematic determination of the

    value of each job in relation to other jobs in the organisation, in the

    industry and in the market.

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    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 relations 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.

    Self Assessment Questions

    10. __________ is the future course of action that includes identifying

    human resource requirements and forecasting personnel needs.

    11. ___________ are the rewards that an employee earns in addition to

    regular wages or salary based on the performance of the individual,

    team or the organisation.

    12. ____________ are monetary and non-monetary benefits given to

    employees during their employment.

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    1.6 Role of HR Executives

    In the previous section, we discussed the various functions involved in

    HRM. Let us now discuss the 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.

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    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.

    Self Assessment Questions

    13. The administrative role of the HR involves record keeping and

    ____________.

    14. As an ___________ HR employees link the top management and

    employees.

    15. As an _______ HR specialists are responsible for ensuring that all

    members of the management perform their respective roles concerned

    with the effective use of HR.

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    1.7 Summary

    Let us recapitulate the important concepts discussed in this unit:

    Human resource management is one of the most complex and

    challenging field of management study. It mainly deals with people

    dimension in management.

    Over the past several years various approaches to human resource

    management have been adopted by companies. Scientific management

    approach gave rise to the human relations approach. The human

    resource approach has gained prominence in recent times valuing

    employees as the prime asset in any organisation.

    The primary objective of HRM is to take care of the work life of

    employees even while ensuring their best possible cooperation for

    achieving the organisational goals and objectives.

    The scope of HRM can be divided into HRM in personnel management,

    HR in employee welfare, HR in industrial relations.

    Basically, HRM includes the four functions of acquiring, developing,

    motivating and managing the human resources. HRM functions are

    broadly classified into two categories managerial and operative

    functions.

    Managerial functions include planning, organising, directing and

    controlling.

    The operative functions of HRM are related to specific activities of HRM

    such as employment, development, compensation and employee

    relation.

    The specialist role of the HR professional takes a number of roles, which

    is that of an auditor, service provider, administrative expert, facilitator,

    consultant, the change agent and employee advocate.

    1.8 Glossary

    Manpower inventory: A record of all the employees that lists all

    relevant employment related information such as age, sex, educational

    qualification, job history, type of employment, years of work experience.

    It helps in knowing the number of employees in a department and the

    job that they carry out.

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    Employee Retention: Employee retention refers to the various policies

    and practices which let the employees stick to an organization for a

    longer period of time.

    Hawthorne studies: In the 1920s Harvard Business School professor,

    Elton Mayo, and his Fritz J. Roethlisberger led a landmark study of

    worker behavior at Western Electric, Chicago. The study began by

    examining the physical and environmental influences of the workplace

    (e.g. brightness of lights, humidity) and later, moved into the

    psychological aspects (e.g. breaks, group pressure, working hours,

    managerial leadership). The major finding of the study was that almost

    regardless of the experimental manipulation employed, the production of

    the workers seemed to improve. The Hawthorne experiments brought to

    light ideas concerning motivational influences, job satisfaction;

    resistance to change, group norms, worker participation, and effective

    leadership.

    1.9 Terminal Questions

    1. What is human resources management? Discuss the scope of HRM.

    2. Explain the functions of HRM.

    3. Discuss the main features of human relation approach. How does it

    differ from scientific management?

    4. Briefly describe the different roles of HR professional in business.

    1.10 Answers

    Self Assessment Questions

    1. Workforce

    2. Top management and the employees

    3. motivating, developing

    4. (c) direct manpower management

    5. (a) Working conditions and workplace amenities

    6. (b) promotes industrial harmony

    7. Fredrick Taylor

    8. Hawthorne studies

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    9. Human Resource

    10. Planning

    11. Incentives

    12. Fringe benefits

    13. Legal compliance

    14. Employeee Advocate

    15. Auditor

    Terminal Questions

    1. Human resource refers to total knowledge, skills, creative abilities,

    talents and individual aptitudes of an organisations workforce, as well

    as values, attitudes and beliefs 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.For more details, refer section 1.2

    2. HRM includes the four functions of acquiring, developing, motivating and

    managing the human resources. HRM functions are broadly classified

    into two categories-managerial and operative functions.For more details,

    refer section 1.5

    3. 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 by the way the job was

    designed and the economic rewards, but also by certain social and

    psychological factors. For more details, refer section 1.4

    4. HR professional takes a number of forms: the auditors role, the

    executives role, the facilitators role, the consultants role, and the

    service providers role. HRM objectives should align with the

    organisational objectives, and should balance them with the individual

    and social goals. For more details, refer section 1.6

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    1.11 Case Study

    HR, The trendsetter?

    No longer is HR just a recruitment function; it is part of the company's

    overall strategy to achieve its business goals. With increased competition in

    every industry, the challenge for companies is to remain competitive, and

    are they doing just that? Industry experts give a bird's-eye view of a few HR

    trends in the months to come.

    Dayanand Allapur, Head HR, Tesco HSC, feels that in the months to come,

    there would be an increased focus on strengthening the employee brand

    and creating a workplace of choice' through various initiatives such as

    smarter employee policies, increased workplace interaction through new

    age social media tools and using technology to optimise systems and

    processes. "This would be augmented with greater focus on talent planning

    and development, thereby providing better career options to employees.

    The trend would also lean more towards the "human side" of companies

    such as how "green" are we and also focus on diversity and giving back to

    the community," says Allapur.

    What is in store?

    Ashish Srivastava, Director - HR, Canara HSBC Oriental Bank of

    Commerce Life Insurance:

    Work-life balance Organisations will look at ensuring higher flexibility with

    enhanced focus on overall productivity rather than mere number of hours.

    Employees would be encouraged to constantly up-skill themselves and

    learn to work "smarter" and carve time for value-added initiatives with

    colleagues and family.

    Staffing and Compensation Staffing will remain lean with higher

    demands on individual productivity - beyond specified KRAs, albeit all within

    the parameter of core organisational values. The concept of "Total

    Rewards" will be earnestly applied as organisations will make compensation

    more creative and competitive. Expect deliberate focus on variable pay

    plans and a higher ROI on compensation. "Recognition" would be a focal

    point to ensure sustained engagement whilst simultaneously encouraging

    increased performance differentiation. What the high-performing

    organisations will choose to do is to give a staff an overall sense of "a great

    total-deal" and not just a good fixed base in compensation.

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    Sikkim Manipal University Page No. 20

    Talent Management What will matter is the "Employment Brand" and

    existent talent, just as much as product loyalty will differentiate the top

    players in the industry. For instance, propel increase in the breadth of

    experience resulting in versatile workforce within the organisation through

    means of short-term and cross functional projects and assignments.

    Deepak Kaistha, Director, Planman Consulting

    Work-life Balance Work-life balance is just not a simple term but the way

    one should maintain/divide their work hours effectively. What will matter in

    the months to come is how you work smart and complete a defined task at a

    given time frame. Employees who are able to manage the same will be

    termed smart' workers.

    Staffing and Compensation Hiring plans for the next quarter is on its

    spree and looks optimistic. As per a study, employers in various industry

    sectors and all four regions of India report positive hiring plans for the next

    three months. Job seekers in the wholesale and retail trade sector (+51 per

    cent) and service sector (+48 per cent) can look forward to the most

    vigorous hiring in the next three months. Globally, the third quarter hiring

    expectations are positive, India being the strongest country, apart from

    Brazil, Taiwan, Turkey and Singapore.

    Talent Management Given ample evidence that companies with highly

    engaged employees outperform companies with neutrally or negatively

    engaged employees, over the next few years we'll see more companies

    adopt - not just talk about - best practices such as closer scrutiny of

    manager quality, continuous feedback, talent mining and mobility, workforce

    segmentation, employee recognition programmes and differentiated pay.

    Rajesh Padmanabhan, Head-HR, Capgemini India

    Work-life balance is an important ingredient of driving company culture

    and employer of choice value proposition. India Inc. will see more

    expectations around this and will need to ready organisations keeping this

    important aspect in mind.

    Staffing and Compensation as a recruitment channel is set to increase,

    going forward. More structured compensation options in the form of time-off,

    remote working, project allowance and performance accelerators would

    slowly start coming into play.

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    Sikkim Manipal University Page No. 21

    Talent Management Structured capability building models and building

    future leaders will be the way forward.

    Whatever the route, HR is all set to pull up its sleeves and become the new

    trend-setter.

    Discussion Questions

    1. What are the trends in staffing ?

    2. What are the ways of ensuring talent management ?

    (Source: http://www.itsmyascent.com/web/itsmyascent/hr-zone/-/

    asset_publisher/4htH/content/hr-the-trendsetter

    (Retrieved on 27th February, 2012)

    References:

    Bearwell, I, & Holden, L. (1995). Human Resource Management: A

    Contemporary Perspective. New Delhi: Macmillan India Limited.

    Dessler, G, & Verkkey, B. (2011). Human Resource Management. New

    Delhi: Pearson Prentice Hall.

    Durai, P. (2010). Human Resource Management. New Delhi: Pearson

    Publication.

    E-Reference:

    http://www.managementstudyguide.com/scope-of-human-resource-

    management.htm (Retrieved on 20 December 2011 )

    http://www.slideshare.net/hemanthcrpatna/procedures-for-handling-

    disciplinary-matters-in-ktms (Retrieved on 20 December 2011 )