INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

The Concept of Human Resource Management Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success. Human resources has at least two related interpretations depending on context. The original usage was traditionally called labour. It is a measure of the work done by human beings. This perspective is changing as a function of new and ongoing research into more strategic approaches. This first usage is used more in terms of 'human resources development', and can go beyond ust organizations to the level of national importance. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management'. The terms !human resource management! and !human resources! "H#$ have largely replaced the term !personnel management! as a description of the processes involved in managing people in organizations. In simple sense, H#% means employing people, developing their resources, !personnel management! as a description of the processes involved in managing people in organizations. Human resource management is to maximize the return on investment from the organization's human capital and minimize financial risk. &resently Human #esource %anagement is an integral but distinctive part of management. Its ob ective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programs relating to human resources to optimize their contribution towards the realization of organizational ob ectives. H#% helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. 'enerally, human resource management refers to the management of the entire workforce of an organization in a reliable, honest and professional manner. It is the responsibility of human resource managers in a corporate context to conduct these activities in an effective, legal, fair, and consistent manner. That(s why the demand of Human #esource "H#$ management has been dramatically increased these days. )rom corporate sector to banking industry, from non profit organizations to human protection groups, from IT solution companies to printing industry* human resource management is playing a critical role in all the other sectors of the economy.

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Evolut on of Human resource management

+autilya provides a systematic treatment of management of human resources as early as ,th century -... in his treatise titled !/rtha01hastra!. There prevailed logical procedures and principles in respect of labour organizations such as 1hreni or guild system and co0 operative sector. The wages were paid strictly in terms of 2uantity and 2uality of work turned out and punishment were imposed for unnecessarily delaying the work or spoiling it. The 'overnment used to take active interest in the operation of both public and private sector enterprises and provided well0enunciated procedures to regulate employer0employee relationship. +autilya provides an excellent discussion on staffing and personnel management embracing ob descriptions, 2ualifications for obs, selection procedure, executive development, incentive systems and performance evaluation. In course of time, the guild system was followed by cooperative sector consisting of craftsmen and traders, and purporting to promote their professional interests. 3umerous professional societies were formed. /gain, there are principles of the division of labour. The concept of !4arnashram! or caste system was originally based on these principles. 5ater on, these professions emerged to be hereditary. )rom the 6,th century -... to the later half of the 67th century /.8., the relationships between the employer and employees were marked by ustice and e2uity. 8uring the %ughal rules, the India trade and commerce were revived. 1everal !+arkhanas! were established at /gra, 8elhi, 5ahore, /hmedabad and various other places. 8uring early -ritish rules, there prevailed a laissez0faire policy towards the business. The working conditions were appalling, living conditions were sub0human and several abuses prevailed in indigo plantations, in tea plantation. The above conditions prevailed till the enactment of the )actory /ct of 6996. /ccording to the /ct, the workers employed in the factories were allowed a week off0day and provisions were also made for inspection as well as limiting he hours of work for women workers to eleven per day. The act further provided that the minimum age of children for employment should be seven hours and that the maximum working hours for them should not exceed seven hours a day and that too in the day0shift. In 69:7, the first labour organization designated as -ombay %ill Hands /ssociation was established. 1ubse2uently, in 6:7;, the printers' <nion at .alcutta and in 6:7=, the &ostal union at -ombay was established. The %adras 5abour <nion was organized thereafter in 6:69. In 6:>>, the indentured labour system involving migration of Indian labour to other countries on contract basis was abolished. In the same year, the .entral 5abour -oard was established to federate the different unions in the -ombay city and the /ll India Trade <nion .ongress was organized. The early thirties witnessed a highly0weakened trade union movement. However, the conditions prevailing five years before as well as during the 1econd ?orld ?ar, were conducive to the rapid growth of the trade unionism. -etween 6:@:0,7 and 6:,,0,; the number of registered trade unions increased from AAA to 9A; "i.e., by >:.= percent$ and the total membership of union submitting returns increased from ;66, 6@, to 99:, @99 "i.e., by =7., percent$. 8uring the period 6:,=06:A7 while, industrial employment rose by >.9 times, the total claimed union membership also went up by >.@ times. In 6:A7, ,; percent of the total industrial workforce Dr. S. P. Mishra Page 2

was claimed to be unionized. Today, the total membership is estimated to be around ,.@ million i.e., >9 percent of total workforce. Bxplicitly, during post0independence period, the activities of &ersonnel 8epartment in different public and private sectors have multiplied. /ccording to the provisions of section ,: of the )actories /ct, 6:,9, it became obligatory for the0employers to employ a ?elfare Cfficer in a factory employing ;77 or more workers. 5ikewise, section ;9 of the %ines /ct, 6:;>, empowers the 'overnment to specify employment of welfare officerDofficers. However, it does not mean that the functions of &ersonnel 8epartment are entirely limited to welfare activities. %anagement of human resources is being regarded as a specialized profession such as that of medicine and law. In addition to the industrial relations functions "although sometimes the industrial relations forms a separate department$, the &ersonnel 8epartment is responsible for other varied functions including employment, safety, training, wage and salary administration and research and development. The Head of the &ersonnel 8epartment is associated with top management and helps it in the formulation of personnel policies for the company. Indeed, the activities involved in &ersonnel 8epartment are akin to those performed in this department in any other western countries. Human Resource Management! "el efs The Human #esource %anagement philosophy is based on the following beliefsE

1. Human resource is the most important asset in the organization and can be developed
and increased to an unlimited extent.

2. / healthy climate with values of openness, enthusiasm, trust, mutuality and

collaboration is essential for developing human resource.

3. H#% can be planned and monitored in ways that are beneficial both to the individuals
and the organization.

4. Bmployees feel committed to their work and the organization, if the organization
perpetuates a feeling of belongingness.

5. Bmployees feel highly motivated if the organization provides for satisfaction of their
basic and higher level needs.

6. Bmployee commitment is increased with the opportunity to discover and use one's
capabilities and potential in one's work. =. It is every manager's responsibility to ensure the development and utilization of the capabilities of subordinates. DE#INITION 1ome of the definitions are as follows. 1. Human resource management "H#%$ is the function performed in organizations that facilitates the most effective use of people "employees$ to achieve organizational and individual goals. Dr. S. P. Mishra Page 3

2. Human resource management "H#%$ s the management of the workforce of a business to ensure sufficient staff levels with the right skills, properly rewarded and motivated. 3. Human resource management "H#%$ is defined as staffing function of the organization. It includes the activities of human resources planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety. H#% aims at developing people through work. 4. Human resource management "H#%$ is defined as all methods and functions concerning the mobilization and development of personnel as human resources, with the ob ective of efficiency and greater productivity in a company, government administration, or other organization. 5. Human resource management "H#%$ encompasses those activities designed to provide for and co0ordinate the human resources of an organization. $ersonal management &ersonal management is related to administrative discipline of hiring and developing employees so that they become more valuable to the organization. It includes "6$ conducting ob analyses, ">$ planning personnel needs, and recruitment, "@$ selecting the right people for the ob, ",$ orienting and training, ";$ determining and managing wages and salaries, "A$ providing benefits and incentives, "=$ appraising performance, "9$ resolving disputes, ":$ communicating with all employees at all levels. It is the part of

management that is concerned with people and their relationships at work. &ersonnel management is the responsibility of all those who manage people, as well as a description of the work of specialists. &ersonnel managers advise on, formulate, and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations, and health and safety. There are various models of personnel management, of which human resource management is the most recent.
D fferences %et&een $ersonal Management '$M( ) Human Resources Management 'HRM( / primary goal of human resources is to enable employees to work to a maximum level of efficiency. 1o, when a difference between personnel management F human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. &ersonnel management includes administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. -y contrast, human resources involve ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company(s workforce. Dr. S. P. Mishra Page 4

&ersonnel management is considered an independent function of an organization. It is typically the sole responsibility of an organization(s personnel department. Human resource management, on the other hand, tends to be an integral part of overall company function. ?ith human resources, all of an organization(s managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel0related tasks. &ersonnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities. )rom the personnel management point of view, employee satisfaction provides the motivation necessary to improve ob performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. ?ith human resources, work groups, effective strategies for meeting challenges, and ob creativity are seen as the primary motivators. There are fifteen "6;$ differences between &ersonal %anagement "&%$ and Human #esource %anagement "H#%$. Those are as follows 6. &ersonnel mean employed persons of an organization. %anagement of these people is &%. H#% is the management of employee(s knowledge, aptitude, abilities, talents, creative abilities and skills D competencies &% is traditional, routine, maintenance oriented, administrative function whereas H#% is continuous, on going development function aimed at improving human processes. &% is an independent function with independent sub functions. H#% follows the system thinking approach. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces. &% is treated like a less important auxiliary function whereas H#% is considered a strategic management function &% is reactive, responding to demands as and when they arise. H#% is proactive, anticipating, planning and advancing continuously. &% is the exclusive responsibility of the personnel department. H#% is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the human resource related functions. The scope of &% is relatively narrow with a focus on administrative people. The scope of H#% views the organization as a whole and lays emphasis on building a dynamic culture. &% is primarily concerned with recruitment, selection and administrative of manpower. H#% takes effort to satisfy the human needs of the people at work that helps to motivate people to make their best contribution.

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:.

Important motivators in &% are compensation, rewards, ob simplification and so on. H#% considers work groups, challenges and creativity on the ob as motivators. In &% improved satisfaction is considered to be the cause for improved performance but in H#% it is the other way round "performance is the cause and satisfaction is the result$. In &%, employee is treated as an economic unit as his services are exchanged for wagesDsalary. Bmployee in H#% is treated not only as economic unit but also a social and psychological entity. &% treats employee as a commodity or a tool or like e2uipment that can be bought and used. Bmployee is treated as a resource and as a human being. In &% employee are considered as cost centers and therefore, management controls the cost of labour, H#% treats employees as profit centres and therefore, the management invests in this capital through their development and better future utility. &%(s angle is that employees should be used mostly for organizational benefits and profits. H#% angle emphasizes on the mutual benefits, both of employees and their families and also the company. &% preserves information and maintains its secrecy. In H#% communication Is one of its main tasks which take into account vertical, lateral and feedback type communication.

67.

66.

6>.

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6;.

8ifferences between Human #esource %anagement "H#%$ and Human #esource 8evelopment "H#8$ 6. H#% is a subset of the entire management processes of an organization. H#8 is a subset of H#%. 1cope of H#% is wider. 1cope of H#8 as compared to H#% is narrower. H#% manages and develops the human elements of an organization in its entirely on longer term basis. H#8 focuses on those learning experiences which are organized for a specific period to bring about the desired behavioral changes. H#% emphasizes that employees, their abilities and their attitudes constitute an important organizational as well as employee(s goals. H#8 emphasizes mainly on training and development of employees. H#% takes decisions on H#8 plans. H#8 thus depends on the decisions of H#%. Page 6

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;.

Dr. S. P. Mishra

A.

H#% is at its centre has H#8. H#8(s cooperation is important for overall success of H#%. H#8 has to work within the realm of H#% and therefore, its ob ectives should be in tandem with broader ob ectives of H#%. Thus H#% and H#8 are interdependent. H#% takes care of all human needs and tries to satisfy these needs so that the employees are motivated from all angles to contribute their best to achieve organizational goals. H#8 focuses on upgrading the skills and competencies or the employees in order to improve the performance of the employees on the ob.

=.

O%*ect ves of Human Resource Management Cb ectives are pre0determined goals to which individuals or group activity in an organization is directed. 1o ob ectives of H#% are influenced by organizational ob ectives and individual as well as social goals.

1. 2.
@.

To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well0trained and well0motivated employees. To increase to the fullest the employee's ob satisfaction and self0actualization. To develop and maintain a 2uality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee's capabilities to perform the present ob. To e2uip the employees with precision and clarity in transaction of business. To inculcate the sense of team spirit, team work and inter0team collaboration.

4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

6,.

Human Resource Management! Scope The scope of H#% is very wide and vast, as seen in the diagram. /ll ma or activities in the working life of an employee come under preview of H#%. The activities can be broadly divided into three groups.

1. $ersonnel aspect This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

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2. +elfare aspect It deals with working conditions and amenities such as canteens,
creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3. In,ustr al relat ons aspect This covers union0management relations, oint

consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

3ature Cf H#%

Bmployee 1election

Bmployee Bducation

HUMAN RESOURCE MANAGEMENT

Bmployee #emuneration

Bmployee Health F 1afety

Bmployee %otivation

Nature of Human resource management Human #esource %anagement is a process of bringing people and organizations together so that the goals of each are met. The various features of H#% includeE

1. It is pervasive in nature as it is present in all enterprises. 2. Its focus is on results rather than on rules. 3. It tries to help employees develop their potential fully.
Dr. S. P. Mishra Page 8

4. It encourages employees to give their best to the organization. 5. It is all about people at work, both as individuals and groups. 6. It tries to put people on assigned obs in order to produce good results. 7. It helps an organization meet its goals in the future by providing for competent and
well0motivated employees.

8. It tries to build and maintain cordial relations between people working at various
levels in the organization. :. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

HRM ! Strateg c Role an, #unct ons

1trategic #ole H#% should be strategic business partner of an organization 1hould support business strategies In addition to internally representing the employees, should have external focus )orward thinking and proactive /ssist the organization in creating and maintaining competitive edge. 1hould try to work as profit centre and economize its operations. 1hould add value to the organization.

#unct ons of HRM H#% involves two categories of function. Those are "a$ operative function and "b$ managerial function. The operative function belongs to such activities concerned with procuring, developing, compensating, utilizing, and maintaining an efficient workforce. The managerial functions are common to all managers and those are planning, organizing, coordinating, directing and controlling. Cne function can not work without the other and they are interrelated. 1o the important functions of H#% can be listed below E 6. 1taffing %anpower or Human #esource &lanning Gob analysis E competency matrix Gob description D position description Gob evaluation 8etermination of actual number of employees needed

#ecruitment and selection of people >. Training and 8evelopment Page 9 /ttracting talent 1election process %otivating the talent to oin the organization

Dr. S. P. Mishra

Induction Training 8evelopment .ompetency mapping and gap analysis /ppraisal Training need assessment Training process &otential assessment 8evelopment process /cclimatization process for new employees

.areer planning @. %otivation /ppraisal /ppropriate appraisal system /ppraisal process )ast track "talent management$ 3ormal career path management

.ompetition and benefits #ewards ,. %aintenance .ommunication Health 1afety Bmployee relations Dr. S. P. Mishra Bstablishing fairness 8esigning and implementing employee relations Page 10 /wareness creation 1ystem for safe working condition 8esign D selection and implementation of health schemes Installing and maintaining two way communication #ecognition motivation %onetary motivation 8etermination of salary and benefit packages

5egalities 8ispute 'rievances <nions Bmployment related legalities Health and safety related legalities

/lthough there are many functions of human resource management but the most effective of them includeE 6. >. @. ,. ;. A. =. 9. :. 67. 66. 6>. 6@. 6,. Bmployee recruitment Training and development of employees ?orkforce management Bvaluation of employee performance &romotions and transfer of employees #edundancy Bmployee relations Crganization of data Total rewards .areer development .ompetency mapping Time management .onfidentiality F &erformance appraisal

In order to achieve the above ob ectives, Human #esource %anagement undertakes the following activitiesE

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Human resource or manpower planning. #ecruitment, selection and placement of personnel. Training and development of employees. /ppraisal of performance of employees. Taking corrective steps such as transfer from one ob to another. #emuneration of employees. 1ocial security and welfare of employees. 1etting general and specific management policy for organizational relationship. .ollective bargaining, contract negotiation and grievance handling. 1taffing the organization. /iding in the self0development of employees at all levels. 8eveloping F maintaining motivation for workers by proper incentives.

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13. 14. 15. 16.

6=.

#eviewing and auditing manpower management in the organization &otential /ppraisal. )eedback .ounseling. #ole /nalysis for ob occupants. Gob #otation. Huality .ircle, Crganization development and Huality of ?orking 5ife.

#actors n Human Resource Management In the >6st century H#% will be influenced by following factors, which will work as various issues affecting its strategyE

1. 2. 3. 4. 5. 6. 7. 8.
:.

1ize of the workforce. #ising employees' expectations 8rastic changes in the technology as well as 5ife0style changes. .omposition of workforce. 3ew skills re2uired. Bnvironmental challenges. 5ean and mean organizations. Impact of new economic policy. &olitical ideology of the 'overnment. 8ownsizing and rightsizing of the organizations. .ulture prevailing in the organization etc.

Human Resource Management! #utur st c - s on Cn the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of H#% with regard to its futuristic visionE

1. 2.

There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. In every decision0making process there should be given proper weightage to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team0work and inter0team collaboration. Cpportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. 3etworking skills of the organizations should be developed internally and externally as well as horizontally and vertically. )or performance appraisal of the employee(s emphasis should be given to @A7 degree feedback which is based on the review by superiors, peers, subordinates as well as self0review. @A7 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold. Page 12

3. 4. 5.

6.

Dr. S. P. Mishra

7.

%ore emphasis should be given to Total Huality %anagement. TH% will cover all employees at all levels* it will conform to customer's needs and expectations* it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. There should be focus on ob rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future ob prospects. )or proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the H#% strategy. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning.

8.

9. 10.

66.

Or g n an, gro&th of HR funct on n In, a The various stages of growth of H#% are as follows E (1) Barly activities of H#% by +autilya E +autilya provides a systematic treatment of management of human resources during ,th century -... in his treatise titled !/rtha01hastra!. /s per this, there prevailed labour organizations such as 1hreni or guild system and co0operative sector. The wages were paid strictly in terms of 2uantity and 2uality of work. The 'overnment used to take active interest in the operation of both public and private sector enterprises and provided well0 enunciated procedures to regulate employer0employee relationship. There were staffing and personnel management embracing ob descriptions, 2ualifications for obs, selection procedure, executive development, incentive systems and performance evaluation. (2) Barly activities of H#% E The guild system was followed by cooperative sector consisting of craftsmen and traders, with their professional interests. /gain, there are principles of the division of labour. The concept of !4arnashram! or caste system was originally based on these principles. 5ater on, these professions emerged to be hereditary. )rom the 6,th century -... to the later half of the 67th century /.8., the relationships between the employer and employees were marked by ustice and e2uity. (3) Bnactment of )actory /ct 6996. There was enactment of the )actory /ct of 6996. /ccording to the /ct, the workers employed in the factories were allowed a week off0day and provisions were also made for Dr. S. P. Mishra Page 13

inspection as well as limiting he hours of work for women workers to eleven per day. The act further provided that the minimum age of children for employment should be seven hours and that the maximum working hours for them should not exceed seven hours a day and that too in the day0shift. In 69:7, the first labour organization designated as -ombay %ill Hands /ssociation was established. 1ubse2uently, in 6:7;, the printers' <nion at .alcutta and in 6:7=, the &ostal union at -ombay was established. The %adras 5abour <nion was organized thereafter in 6:69. In 6:>>, the indentured labour system involving migration of Indian labour to other countries on contract basis was abolished. (4) #eport of the #oyal .ommission on 5abour. #oyal commission on labour in India "6:>: I @6$ recommended the appointment of the labour officer to deal with selection and recruitment of labours. This is followed by establishment of The .entral 5abour -oard to federate the different unions in the -ombay city and the /ll India Trade <nion .ongress was organized. (5) Bnactment of Industrial 8ispute /ct. The enactment of Industrial 8ispute /ct 6:,= made ad udication compulsory. /s a result, the activities of &ersonnel 8epartment in different public and private sectors have multiplied. /ccording to the provisions of section ,: of the )actories /ct, 6:,9, it became obligatory for the employers to employ a ?elfare Cfficer in a factory employing ;77 or more workers to handle disputes and ad udication relating to conditions of services, wage, benefit etc. The welfare officer became Industrial #elation Cfficer. In addition to the industrial relations functions "although sometimes the industrial relations forms a separate department$, the &ersonnel 8epartment is responsible for other varied functions including employment, safety, training, wage and salary administration and research and development. The Head of the &ersonnel 8epartment is associated with top management and helps it in the formulation of personnel policies for the company. Slo& gro&th of HRM n In, a (a) (b) (c) (d) (e) 5ate arrival of the factory system 5ow status of industrial worker &rofessionalization of H#% 1ocial responsibilities of -usiness .hange of 'overnment attitude

#actors mpe, ng gro&th of HRM n In, a 1. 2. 3. 4. 5. 6. /bundance of cheap labour ?eak labour movement Highly authoritarian culture Technological backwardness Instability in employment <nhealthy trend of trade union Page 14

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7.

%igratory characteristic of Indian labour

Human Resource Outsourcing: Scope for India

Cne very important trend in the recent times has been the growth of human resource outsourcing. H# outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll, benefits, educationDtraining, recruiting personnel, administration, to realize economies of scale and achieve standardization of services. #apidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Crganizations are fast realizing that they can't be all things to all people. 1o companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost0effective manner. /s a result, human resources outsourcing is becoming increasingly prevalent. The number of companies outsourcing H# activities continues to rise, and the scope of outsourced H# activities continues to expand. H# outsourcing can happen in H# functions, like payroll administration "producing checks, handling taxes, dealing with sick0time and vacations$, employee benefits "Health, %edical, 5ife insurance, .afeteria, etc$, human resource management "hiring and firing, background interviews, exit interviews and wage reviews$, risk management, etc. Cutsourcing has become a common response to manage people and technology resources strategically, enhance services, and manage costs more effectively. Cutsourcing noncore activities allows H# professionals to move away from routine administration to a more strategic role. The organization can focus on higher value0added activities while the outsourcing provider takes care of the day0to0day administration. .ritical internal resources, such as technology and talent, can be devoted to company's core business. Cutsourcing reduces the need for large capital expenditures in noncore functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today's business environment. / growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. %any recognize outsourcing relationships as long0term partnerships created to further the strategic goals of the organization. The H# outsourcing business opportunity is large and India is likely to garner a larger and larger piece of this pie in the future. India, with its intrinsic advantages such as low cost, ready pool of Bnglish speaking manpower and geographic positioning, is emerging as a viable destination for H# outsourcing companies to set up their businesses. However, the future seems to be very promising. It's set to become a J ;6 billion market worldwide in >77;, representing @: per cent of the total business process outsourcing revenue. Bstimates show that the latent size of H# outsourcing in India is about J > billion with a current market of J >= million and it is growing at an alarming rate of about ;7 per cent. India has immense potential as more than 97K of fortune 6,777 companies are discussing H# outsourcing as a way to cut costs and increase productivity. H# outsourcing has a huge potential for employment also. 3asscom numbers are a million software obs by >77;* H#C would be about a >; per cent of that. Bxperts believe that in present times H# outsourcing is undergoing a transition phase, it would still be sometime before we see increased levels of H# activities being outsourced to India as lack of domain knowledge and 2uality are some of the critical issues. Dr. S. P. Mishra Page 15

Emerg ng Tren,s n Human Resource Management Human resource management is a process of bringing people and organizations together so that the goals of each other are met. The role of H# manager is shifting from that of a protector and screener to the role of a planner and change agent. &ersonnel directors are the new corporate heroes. The name of the game today in business is personnel . 3owadays it is not possible to show a good financial or operating report unless your personnel relations are in order. Cver the years, highly skilled and knowledge based obs are increasing while low skilled obs are decreasing. This calls for future skill mapping through proper H#% initiatives. Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations. There is a need for multi skill development. #ole of H#% is becoming all the more important. 1ome of the recent trends that are being observed are as followsE The recent 2uality management standards I1C :776 and I1C :77, of >777 focus more on people centric organizations. Crganizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on H# issues, more particularly on training. .harles Handy also advocated future organizational models like 1hamrock, )ederal and Triple I. 1uch organizational models also refocus on people centric issues and call for redefining the future role of H# professionals. To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six0 sigma practices. 1ix0 sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps in creating defect free product or services at minimum cost. Human resource outsourcing is a new accession that makes a traditional H# department redundant in an organization. Bxult, the international pioneer in H# -&C already roped in -ank of /merica, international players -& /moco F over the years plan to spread their business to most of the )ortune ;77 companies. ?ith the increase of global ob mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also re2uired to work out a retention strategy for the existing skilled manpower.

HRM n Glo%al &orl,

'lobally, Human #esource %anagement today known as a part of an organization and it has own existence world wide. It is said that management of human resources lead, mobilize and direct the efforts of people. In the stage of globalization and industrialization human resource management reveal the following trendsE

1. 2.

Increased complexity of organization and employment communication and created a distinction between owners, managers and workers. 8ecreased number of employers and self0employed, and enlarged size or workforce. Page 16

Dr. S. P. Mishra

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Bnhanced need for training in view of increased re2uirements of specialized skills &ublic interventions and legal complication in employer0employee relationships Bnhanced training and development of managers and professionalization of management education &ossibility of employment explosion in view of the ever0increasing size of workforce #ising formal level of education of rank0and0file employees who are becoming increasingly critical of management malpractices and errors #ank0and0file employees( rapidly growing demands in different employment situations Increased applications of behavioral science by enterprising managers. #ecognition of close relationship between profits and earnings and ability to manage human resources

5.
A.

7.
9.

9.
67.

These are the identified problem which occurs in an organization with the employee and owners. The need creates the role of human resource management. NE+ TRENDS IN INTERNATIONA. HRM International H#% places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country. 1election of employees re2uires careful evaluation of the personal characteristics of the candidate and hisDher spouse. Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. %anagers need to be protected from career development risks, re0entry problems and culture shock. To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information. .ompensation systems should support the overall strategic intent of the organization but should be customized for local conditions. In many Buropean countries 0 'ermany for one, law establishes representation. Crganizations typically negotiate the agreement with the unions at a national level. In Burope it is more likely for salaried employees and managers to be unionized.

Dr. S. P. Mishra

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