Introduction to HRM

People are vital for effective operation of an organization. It is people, not buildings that make a company successful. Assets make things possible but people make things happen. Employees play dual role-first as a factor of production and second as a motive force fore other factors of production. It makes other factors operative and productive. People are the most valuable asset of an organization. Yet human assets are virtually never shown on the balance sheet. Characteristics of HR Multiplicity of roles assumed by individuals. A person plays many different roles in the society. These roles are conflicting in nature. There is no average person. Two persons are not the same; they are different. Dignity of people. People are dignified. Treat them with respect and dignity. People appreciate as times goes on. People gain more knowledge and experience. HUMAN FACTOR IN MANAGEMENT Consideration of whole person. Human being is a total person influenced by internal and external factors. People have synergetic ability. The whole is greater than total o fits parts. It may be positive or negative. People can be motivated. Motivation is the willingness to exert more efforts to achieve organizational goal, provided organization meet individual needs of employees. Perceptual difference. Perception is a process through which people interpret and give meaning to an event or environment. Factors influencing perception are many. These are: attitudes, motives, interests, experience, expectations, social setting and time.

Nature of people People may perceive the same thing differently. A lot of problems may arise because of perceptual difference. Self-serving bias. Attribute own success to internal factors and failure to the external factors. Selective perception. People selectively interpret what they see on the basis of their interest, backgrounds, and experience. Halo effect. Drawing a general impression about a person on the basis of a single characteristic. Contrast effect. Evaluation of a persons characteristics that are affected by comparison with other people recently encountered who rank higher or lower on the same characteristics.

Projection. Attributing ones characteristics to other people. You are honest and trustworthy, so you take it for granted that other people are equally honest and trustworthy. Stereotyping. Judging a person on the basis of ones perception of the group to which that person belongs. Generalization of characteristics of people on the basis of gender, age. religion, color, locality, or wealth. Examples. Older workers cannot learn new skills. Men are not interested in child care. Women would not relocate for a promotion. Poor people are bad. People have a desire for involvement. They want to participate in decision making, which affect their interests. They have right to express their views, emotion and sentiments.

Competitive advantage through people Productivity is through people. People provide organization with the source of competitive advantage. Traditional source of competitive advantage has been eroded. People are becoming a great differentiating factor. Selection people, who are smarter, better trained, more motivated, and more committed. Gaining competitive advantage through people requires following guidelines: Employment security, selectivity in recruiting, high wages, incentive pay, employee ownership, employee empowerment and participation, information sharing, training and skills, treat people with respect and dignity, wage compression, Promotion from within.

Definition of HRM Management is getting things done through other people. Management is nothing but managing people at work. Managers manage people- employees, customers, suppliers, and other stakeholders. HRM is concerned with people at work. HRM is a filed of management involves planning, organizing, directing and controlling the functions of procuring, developing, maintaining and motivating a labor force. It is the process of acquiring, retraining, terminating, developing and properly using the human resources in an organization.

HRM consists of four functions.

Acquisition function. It deals with human resource planning. It includes recruitment, selection and socialization of employees. Recruitment is a process of finding and attracting qualified people for job. Selection is a process of hiring suitable people for job. Right person for right job is the main goal of selection. Socialization is a process of getting new employees acquainted with the organization, its culture. Rule sand regulations, objectives and supervisors and other employees. Training and development. Develop up to date skills and knowledge and abilities. It includes employee training, education and career development. Ongoing retraining is necessary to accommodate technological changes. It is a process of acquiring new skills to do job properly. Training changes employees attitudes and behavior. Development of employee is necessary to prepare organizations for future challenges. Career planning identifies paths and activities for individual employees as they develop within the organization. Motivation (helping employee to exert high energy levels). Motivation function begins with the recognition that individuals are unique e and the motivational technique such as job satisfaction, employee performance appraisal and compensation must reflect the needs of each individual. Assessing how employees perform their jobs is the focus of per romance appraisal. Employees may be appraised against absolute or relative standards. Compensation rewards people for performing organizational work through pay, incentives and benefits. It is the reward for price. It is financial remuneration given by the organization to its employees in exchange for their work. Maintenance. Maintaining employee commitment and loyalty to the organization. It is willingness to stay in the company. Growing recognition that effective use of people in the organization can provide a competitive advantage. Getting people, preparing them, stimulating them, and keeping them are the main functions of HRM. HRM draws on a number of disciplines such as industrial psychology, sociology, social psychology, and economics. Function of HRM is advisory in nature. It is a staff function. HRM is the responsibility of managers at all levels.

Line and staff function of HRM HR mgt is part of every managers responsibilities. These line responsibilities include: placing right person in the right position, Orienting, Training

Compensating to improve his or her job performance, HR manager and HR department carry out two main functions. HR manager exerts line authority in his unit or department. He ensures that the organizations HR objectives and policies are coordinated and implemented. H is often involved in both the formulation and implementation of a companys strategies, given the need for the firm to galvanize employees to promote the firms competitive advantage. He also provides various staff services to line management, such as assisting in the hiring, training, evaluating, rewarding, promoting and disciplining of employees at all levels.

Purpose of HRM The purpose of HRM is to improve the productive contribution of people to the organization in ways that are strategically, socially and ethically responsible. HR actions contribute to improved productivity directly by findings better and more efficient ways to meet objectives and indirectly by improving the quality of life for employees

Objectives of HRM Managers and human resource departments achieve their purpose by meeting objectives. Objectives are the benchmarks against which actions are evaluated. Objectives guide the HR function in practice. HR objectives are of mainly four types: Organizational objective. HR department exist to help managers achieve the objectives of the organization. Functional objective. Societal objective. To be ethically and socially responsive to the needs and challenges of society. Personal objective. Personal objectives of employees may be net if workers are to be maintained, retained and motivated, otherwise employee performance and satisfaction may decline and employees may leave the organization.

Principles of HRM Treat people with respect and dignity. Treat people as adults. Deal with people as complete individuals. Treat all employees with justice. Provide people with opportunities for growth and development. Make people feel that are important. Rewards should be earned, not given. Do not underestimate the potentials of people.

Supply people with all relevant information.

Approach to HRM Strategic approach. People are the strategic asset of an organization. People have core competency, the basis of competitive advantage. HR management must contribute to the strategic success of the organization. Human resource approach. HR mgt is the management of people. Importance and dignity of people cannot be ignored. People are human beings with a lot of potentials and intellectual abilities. Management approach: HRM is a part of management. HR management is the responsibility of every manager. HR department exists to serve managers and employees through its expertise. In the final analysis, the performance and wellbeing of each worker are the dual responsibility of that workers immediate supervisor and the HR department. Commodity approach. People are commodity. They are viewed as a cog of a machine. They can be bought and sold with money. Only money motivates people. Proactive approach. Anticipate challenge or problem before they arise. Prevention is better than cure. Reactive approach. It occurs when decision makers respond to problems. Problems may be compounded and opportunities may be lost. System approach. HR management takes place within a larger system: the organization. HR management model is an open system of interrelated parts. Each part affects the others and is influenced by the external environment.

Philosophy of HRM Labor is viewed as a technical factor of production. The are treated as a commodity and they can be bought and sold. They are hired and fired at will. It is consistent with theory X. ] Labor is viewed as human factor with a lot of positive potentials, so they must be treated with respect and dignity. This is consistent with theory Y of McGregor.