An Insight into Human Resource (HR)

By: Ansar Ahmed Khan

Introduction to Human Resources (HR)

Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include "manpower", "talent", "labor", and simply "people".

Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization.

Objectives of HR

Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives.

Key Objectives of HR

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 well-trained and well-motivated employees.

To increase to the fullest the employee's job satisfaction. To develop and maintain a quality of work life.

Functions of Human Resource

In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees. 5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. (contd)

9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing man-power management in the organization 14. Potential Appraisal. Feedback Counseling.

15. Role Analysis for job occupants.

16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life.

Scope of Human Resource

The scope of HRM is very wide:

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

2. Welfare 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. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Significance of HR

HR is the legal liaison between the organization and the employees, they are to uphold the employment and safety laws as well as follow the practices, which may differ within federal guidelines, that the employer authorizes.
Corporations are always searching for better ways to produce goods and services. When new technological developments give some organizations a competitive advantage, their rivals try to catch up by adopting and improving on the new technologies. Ford has put many of Toyota's technical advances to work in its own plants, and General Motors has spent over $50 billion in the last decade to modernize its production facilities to develop skills in flexible manufacturing. A large part of this growth is the Human Resources department of these companies, who are responsible for hiring the people with the knowledge to bring new technology into a company. To be successful in the automotive market, these companies needs a highly skilled, flexible and committed work force, a flexible and innovative management, the ability to retain developed talent, and a strong partnership between management and labour unions. (Contd)

To achieve these goals, the company needs a talented HR strategy. Besides hiring the right people to manage and perform specific jobs, HR managers have to build up commitment and loyalty among the workforce by keeping them up to date about company plans, and laying out the implications for job security and working conditions.

Ideology of HR

HR concerns the approach and ideology a business adopts for its employment life cycle and its organizational development and culture. The recruiting, selecting, compensating, motivating, maintaining and promoting employees are all part of HR. HR further includes strategic, budget and succession planning. Moreover, to some extent, all businesses practice HR, and a business HR philosophy may be multidisciplinary or may be singular in approach.

For example, an HR ideology may focus more on labor and employee relations than on organizational culture and development. Yet, an effective HR philosophy has to acknowledge that because employees affect every facet of business, and are the human face of business, employees have the greatest impact on productivity and profits. Therefore, in simple words to sum up the ideology of the HR: in order to improve productivity and profits and decrease employment related expenses, management must know how to treat employees in a fashion which enhances their value. Ultimately, effective HR helps to maximize profits and productivity by minimizing employment related expenses and maximizing employee performance.

Difference between Personnel Management & HR

Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more administrative in nature and the Personnel Managers main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management.

With the advent of resource centric organizations in recent decades, it has become imperative to put people first as well as secure management objectives of maximizing the ROI (Return on Investment) on the resources. This has led to the development of the modern HR function which is primarily concerned with ensuring the fulfilment of management objectives and at the same time ensuring that the needs of the resources are taken care of. In this way, HR differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HR goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the resources to contribute to the success of the organization.

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