HUMAN RESOURCE MANAGEMENT
Unit - I
In all activities men and resources are involved. For a long time men or workers were taken for granted. Greater accent was given to resources, production machinery and top managers. But at present in the modern large scale production of innumerable products with a wide market, (where sky is the limit) in the last few decades the importance of human resources and their development has come to the fore. The importance of human resources to any organization need not be over-emphasized. Human resource is the wealth of a nation and an organization. The development process is wide and varied. In this lesson, let us understand the importance and concept of Human Resources Management.(HRM).
Sumantra Ghosal considers human resources as human capital. He classifies human capital into three categories – intellectual capital, social capital and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity and learning capacity. Social capital is made up of network of relationships, sociability, and trustworthiness. Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability and resilience”. In simple words, HRM are a process of making the efficient and effective use of human resources so that the set goals are achieved.
According to flippo-“human resource management is the planning, organizing, directing, controlling of the procurement, development ,compensation, integration, maintenance and reproduction of human resources to the end that individual ,organizational and social objectives are accomplished”
The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”.
According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is an essential to achieve organizational objective. This is true, regardless of the type of organization –government, business, educa tion, health or social action”.
Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers.
HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
OBJECTIVES OF HRM
1. To help the organization reach its goals: HR department, like other departments in an organization, exists to achieve the goals of the organization first and if it does not meet this purpose, HR department (or for that matter any other unit) will wither and die.
2. To employ the skills and abilities of the workforce efficiently: The primary purpose of HRM is to make people’s strengths productive and to benefit customers, stockholders and employees.
3. To provide the organization with well-trained and well-motivated employees: HRM requires that employees be motivated to exert their maximum efforts, that their performance be evaluated properly for results and that they be remunerated on the basis of their contributions to the organization.
4. To increase to the fullest the employee’s job satisfaction and self-actualization: It tries to prompt and stimulate every employee to realize his potential. To this end suitable programmes have to be designed aimed at improving the quality of work life
5. To develop and maintain a quality of work life: It makes employment in the organization a desirable, personal and social, situation. Without improvement in the quality of work life, it is difficult to improve organizational performance.
6.To communicate HR policies to all employees: It is the responsibility of HRM to communicate in the fullest possible sense; tapping ideas, opinions and feelings of customers, non-customers, regulators and other external public as well as understanding the views of internal human resources
7. To be ethically and socially responsive to the needs of society: HRM must ensure that organizations manage human resource in an ethical and socially responsible manner through ensuring compliance with legal and ethical standards
CHARACTERISTICS OF HRM
1. Pervasive force: HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization
2. Action oriented: HRM focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees at works are solved through rational policies.iii.
3. Individually oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organization. It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage policies.
5. future-oriented: Effective HRM helps an organization meet its goals in the future by providing for competent and well-motivated employees.
6. Development oriented: HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improves their skills. Employees are rotated on various jobs so that they gain experience and exposure. Every attempt is made to use their talents fully in the service of organizational goals.
7. Integrating mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human assets in the best possible manner in the service of an organization.
8. Comprehensive function: HRM is, to some extent, concerned with any organizational decision which has an impact on the workforce or the potential workforce. The term ‘workforce’ signifies people working at various levels, including workers, supervisors, middle and top managers. It is concerned with managing people at work. It covers all types of personnel. Personnel work may take different shapes and forms at each level in the organizational hierarchy but the basic objective of achieving organizational effectiveness through effective and efficient utilization human resources, remains the same. “it is basically a method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organization”.
9. Auxiliary service: HR departments exist to assist and advise the line or operating managers to do their personnel work more effectively. Hr manager is a specialist advisor. It is a staff function.
10. Inter-disciplinary function: HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, anthropology, economics, etc. To unravel the mystery surrounding the human brain, managers, need to understand and appreciate the contributions of all such ‘soft’ disciplines.
SCOPE OF HRM
The scope of HRM is very wide. Research in behavioral sciences, new trends in managing knowledge workers and advances in the field of training have expanded the scope of HR function in recent years. The Indian Institute of Personnel Management has specified the scope of HRM thus:
i. Personnel aspect: This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc.
ii. 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.
iii. Industrial relations aspect: This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
At the enterprise level:
1. It can help in attracting and retaining the best people in the organization.
2. It helps in training people for challenging roles right attitudes towards job and company.
At the individual level:
1. It promotes team work and team sprit among employees
2. It offers excellent growth opportunities to people who have the potential to rise.
3. It allows people to work with commitment
At the society level:
1. Employment opportunities multiply
2. Scare talents are put to best use
At the national level:
1. Efficient use of human resources
2. Proper use of peoples and resources help the nation to get ahead.
3. It increases standard of living and better employment.
Human resource management is the new version of personnel management. There is no any watertight difference between human resource management and personnel management. However, there are some differences in the following matters.
1. Personnel management is a traditional approach of managing people in the organization. Human resource management is a modern approach of managing people and their strengths in the organization.
2. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output.
4. Under personnel management, personnel function is undertaken for employee's satisfaction. Under human resource management, administrative function is undertaken for goal achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/team work.
6. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities.
7. In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc.
8. Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee's participation.
9. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a strategic function.
HISTORICAL PERSPECTIVE OF THE PERSONNEL FUNCTION
1. Industrial revolution-increase technology, specialty, work shifted from residence to factory. The Industrial revolution: During this period machines were brought in; technology made rapid progress; jobs were more fragmented where the worker did only a small portion of the total job and specialization increased speed and efficiency but left workers with dull, boring and monotonous jobs. Workers were treated like glorified machine tools. Employers were keen to meet production targets rather than satisfy workers’ demands. Government did very little to protect the interests of workers.
2. Trade union-formed by group of people, grievance purpose. Workers joined hands to protect against the exploitative tendencies of employees and the prohibitive unfair labor practices through unions. Unions tried to improve the lot of workers through collective bargaining resolving the grievances of workers relating to working conditions pay and benefits disciplinary actions etc.
3. Scientific management-scientific methods and techniques used-to improve efficiency and speed F W Taylor advocated scientific management. Scientific management is nothing but a systematic analysis and breakdown of work into its smallest mechanical elements and rearranging them into their most efficient combination. In addition to the scientific study of the task itself, Taylor argued that individuals selected to perform the tasks should be as perfectly matched, physically and mentally to the requirements of the task as possible and that overqualified individuals should be excluded. Employees should also be trained carefully by supervisors to ensure that they performed the task exactly as specified by prior scientific analysis. A differential piece rate system was also advocated by Taylor to provide an incentive for employees to follow the detailed procedures specified by supervisors.
4. Industrial psychology-deals with mental and emotional-The branch of applied psychology that is concerned with efficient management of an industrial labor force and especially with problems encountered by workers in a mechanized environment. Psychologists explore human behavior with a focus on perception, cognition, emotion, personality, behavior, and interpersonal relationships. Human resource management is a dynamic and evolving area related to the management of people within organizations.
5. Human relations movement-attitude and feelings of employee effect production-The famous Hawthorne experiments conducted by Elton Mayo and his Harvard colleagues during 1930s and 1940s demonstrated that employees productivity was affected not only by the way the job was designed and the manner in which employees were rewarded economically but by certain social and psychological factors as well. The human relations movement led to the wide scale implementation of behavioral science techniques in the industry for the first time which included supervisory training programs emphasizing support and concern for workers programs to strengthen the bonds between labor and management and counseling programs whereby employees were encouraged to discuss both work and personal problems with trained counselors. The movement was also influenced by the growing strength of unions during the late 1930s and 1940s. The rise of unionism during this period was due to the passage of the Wagner Act which gave workers the legal right to bargain collectively with employers over matters concerning wages job security benefits and many other conditions of work.
6. Behavioral science-deals with psychology and sociology-A scientific discipline, such as sociology, anthropology, or psychology, in which the actions and reactions of humans and animals are studied through observational and experimental methods. The behavioral approach views the enterprise as a social organism. It is termed as behavioral sciences approach because it adopts a multi-dimensional and inter-disciplinary study of employee’s behavior applying principles from behavioral sciences like psychology, sociology and anthropology
7. Human resource specialist Employee welfare-employee benefit programmes and industrial relations-However, during early 60s the pet milk theory (advocating that happy workers are productive workers or happy cows give more milk) of human relations had been largely rejected. Recognizing that fact that workers are unique in their own way – having individual needs. It was recognized that each employee is a unique and highly complex individual with different wants, needs and values. What motivates an employee may not motivate another and being happy or feeling good have little or no impact on the productivity of certain employees. Slowly but steadily, the trend towards treating employees as resources or assets emerged. The Human Resource Approach assumes that the job or the task itself is the primary source of satisfaction and motivation to employees. The emphasis in the human resource approach is on individual involvement in the decisions made in the organization.
FUNCTIONS- HUMAN RESOURCE MANAGEMENT
I. Planning: This function deals with the determination of the future course of action to achieve desired results. Planning of personnel today prevents crises tomorrow. The personnel manager is expected to determine the personnel programme regarding recruitment, selection and training of employees.
II. Organizing: This function is primarily concerned with proper grouping of personnel activities, assigning of different groups of activities to different individuals and delegation of authority. Creation of a proper structural framework is his primary task. Organizing, in fact, is considered to be the wool of the entire management fabric and hence cannot afford to be ignored.
III. Directing: This involves supervising and guiding the personnel. To execute plans, direction is essential for without direction there is no destination. Many a time, the success of the organization depends on the direction of things rather than their design. Direction then consists of motivation and leadership. The personnel manager must be an effective leader who can create winning teams. While achieving results, the personnel manager must, invariably, take care of the concerns and expectations of employees at all levels.
IV. Controlling: Controlling function of personnel management comprises measuring the employee’s performance, correcting negative deviations and industrial assuring an efficient accomplishment of plans. It makes individuals aware of their performance through review reports, records and personnel audit programmes. It ensures that the activities are being carried out in accordance with stated plans.
The operative functions of P/HRM are related to specific activities of personnel management
1. Procurement functions:
The first operative function of personnel management is procurement. It is concerned with procuring and employing people who possess necessary skill, knowledge and aptitude. Under its purview you have job analysis, manpower planning, recruitment, selection, placement, induction and internal mobility.
I. Job analysis: It is the process of collecting information relating to the operations and responsibilities pertaining to a specific job.
II. Human resources planning: It is a process of determining and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet their needs and provide satisfaction for the individuals involved.
III. Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
IV. Selection: It is the process of ascertaining qualifications, experience, skill and knowledge of an applicant with a view to appraising his/her suitability to the job in question.
V. Placement: It is the process that ensures a 360º fit, matching the employee’s qualifications, experience, skills and interest with the job on offer. It is the personnel manager’s responsibility to position the right candidate at the right level.
VI. Induction and orientation: Induction and orientation are techniques by which a new employee is rehabilitated in his new surroundings and introduced to the practices, policies, and people. He must be acquainted with the principles which define and drive the organization, its mission statement and values which form its backbone.
VII. Internal Mobility: The movement of employee from one job to another through transfers and promotions is called internal mobility. Some employees leave an organization due to various reasons leading to resignation, retirement and even termination. These movements are known as external mobility. In the best interest of an organization and its employees, such job changes should be guided by well-conceived principles and policies.
2. Development function- It is the process of improving, molding, changing and developing the skills, knowledge, creative ability, aptitude, attitude, values and commitment based on present and future requirements both at the individual’s and organisation’s level.
i. Training: Training is a continuous process by which employees learn skills, knowledge, abilities and attitudes to further organizational and personnel goals.
ii. Executive development: It is a systematic process of developing managerial skills and capabilities through appropriate programmes.
iii. Career planning and development: It is the planning of one’s career and implementation of career plans by means of education, training, job search and acquisition of work experiences. It includes succession planning which implies identifying developing and tracking key individuals for executive positions
iv. Human resource development: HRD aims at developing the total organization. It creates a climate that enables every employee to develop and use his capabilities in order to further both individual and organizational goals.
3. Motivation and compensation function
It is a process which inspires people to give their best to the organization through the use of intrinsic (achievement, recognition, responsibility) and extrinsic (job design, work scheduling, appraisal based incentives) rewards.
I. Job design: Organizing tasks and responsibilities towards having a productive unit of work is called job design. The main purpose of job design is to integrate the needs of employers to suit the requirements of an organization.
ii. Work scheduling: Organizations must realize the importance of scheduling work
to motivate employees through job enrichment, shorter work week’s flexi-time, work sharing and home work assignments. Employees need to be challenged at work and the job itself must be one that they value. Work scheduling is an attempt to structure work, incorporating the physical, physiological and behavioral aspects of work.
iii. Motivation: Combining forces that allow people to behave in certain ways is an integral aspect of motivation. People must have both the ability and the motivation if they are to perform at a high level. Managers generally try to motivate people through properly administered rewards (financial as well as non-financial).
iv. Job evaluation: Organizations formally determine the value of jobs through the process of job evaluation. Job evaluation is the systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within the organization. Job evaluation helps to establish internal equality between various jobs.
v. Performance appraisal: After an employee has been selected for a job, has been trained to do it and has worked on it for a period of time, his performance should be evaluated. Performance evaluation or appraisal is the process of deciding how employees do their jobs. It is a method of evaluating the behavior of employees at the workplace and normally includes both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating work-related behavior and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing and ideally, establishing a plan of improvement.
vi. Compensation administration: Compensation administration is the process of dividing how much an employee should be paid. The important goals of compensation administration are to design a low-cost pay plan that will attract, motivate and retain competent employees-which is also perceived to be fair by these employees.
vii. Incentives and benefits: In addition to a basic wage structure, most organizations nowadays offer incentive compensation based on actual performance. Unlike incentives, benefits and services are offered to all employees as required by law including social security, insurance, workmen’s compensation, welfare amenities etc. Organizations’ have been offering of other benefits and services as well as a means of ‘Sweetening the pot (employee stock options, birthday gifts, anniversary gifts, paid holidays, club membership)
4. Maintenance function
It aims at protecting and preserving the physical and psychological health of employees through various welfare measures.
i. Health and safety: Managers at all levels are expected to know and enforce safety and health standards throughout the organization. They must ensure a work environment that protects employees from physical hazards, unhealthy conditions and unsafe acts of other personnel. Through proper safety and health programmes, the physical and psychological well-being of employees must be preserved and even improved.
ii. Employee welfare: Employee welfare includes the services, amenities and facilities offered to employees within or outside the establishment for their physical, psychological and social well being. Housing, transportation, education and recreation facilities are all included in the employee welfare package.
iii. Social security measures: Managements provide social security to their employees in addition to fringe benefits. These measures include: (a) Workmen’s compensation to those workers (or their dependents) who are involved in accidents; (b) Maternity benefits to women employees; (c) Sickness benefits and medical benefits; (d) Disablement benefits/allowance; (e) Dependent benefits; (f) Retirement benefits like Provident Fund, Pension, Gratuity, etc.
5. Integration function: This tries to integrate the goals of an organization with employee aspirations through various employee-oriented programmes, like redressing grievances promptly, instituting proper disciplinary measures, empowering people to decide things independently, encouraging a participative culture, offering constructive help to trade unions etc.
i. Grievance redress: A grievance is any factor involving wages, hours or conditions of employment that is used as a complaint against the employer. Constructive grievance handling depends first on the manager’s ability to recognize, diagnose and correct the causes of potential employee dissatisfaction before it converts into a formal grievance.
ii. Discipline: It is the force that prompts an individual or a group to observe the rules, regulations and procedures, which are deemed necessary for the attainment of an objective
iii. Teams and teamwork: Self-managed teams have emerged as the most important formal groups in today’s organizations. They enhance employee involvement and have the potential to create positive synergy. By increasing worker interaction, they create camaraderie among team members. They encourage individuals to sublimate their individual goals for those of the group. Teams have inherent strengths which ultimately lead to organizational success at various levels.
iv. Collective bargaining: It is the process of agreeing on a satisfactory labour contract between management and union. The contract contains agreements about conditions of employment such as wages, hours, promotion, and discipline; lay off, benefits, vacations, rest pauses and the grievance procedure. The process of bargaining generally takes time, as both parties tend to make proposals and counter- proposals. The resulting agreement must be ratified by unions, workers and management.
v. Employee participation and empowerment: Participation means sharing the decision-making power with the lower ranks of an organization in an appropriate manner. When workers participate in organizational decisions they are able to see the big picture clearly and also how their actions would impact the overall growth of the company. They can offer feedback immediately based on their experiences and improve the quality of decisions greatly. Since they are now treated with respect, they begin to view the job and the organization as their own, and commit themselves to organizational objectives whole-heartedly.
vi. Trade unions and employees association: Trade union is an association either of employees or employers or independent workers. It is a relatively permanent a body formed by workers with the objective of countering exploitation and harassment. It strives towards providing economic and social benefits to the labour community. Trade unions have always played a powerful role in improving the lot of workers in India, using aggressive bargaining tactics. However since the 90’s, the situation changed dramatically. Unable to fight the forces of competition, many employers have been forced to shut down units and scale down operations. This has made both parties realize the importance of bargaining for their rights in an atmosphere of ‘give and take’.
vii. Industrial relations: Harmonious industrial relations between labour and management are essential to achieve industrial growth and higher productivity. When the relationship between the parties is not cordial, discontentment develops and conflicts erupt abruptly. It is not always easy to put out the fires with the existing dispute-settlement-machinery, created by the government. Hence both labour and management must appreciate the importance of openness, trust and collaboration in their day-to-day dealings.
6. Emerging issues: Effective management of human resources depends on refining HRM practices to changing conditions. Hence the need to look at other important issues that can motivate people to give their best in a dynamic and ever-changing environment.
i. Personnel records: Personnel records such as papers, files, cards, cassettes and films are maintained to have tangible record of what is actually happening in an organization and to formulate appropriate HR policies and programmes(based on historical records, actual experience and future trends) from time to time.
ii. Human resource audit: Human resource audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of HRM. Personnel audit (a) measures the effectiveness of personnel programmes and practices and (b) determines what should or should not be done in future.iii.
iii. Human resources research: It is the process of evaluating the effectiveness of human resource policies and practices and developing more appropriate ones.
iv. Human resources accounting (HRA): It is a measurement of the cost and value of human resources to the organization. Human resource management is said to be effective if its value and contribution in any organization is more than its cost.
v. Human resource information system: HRIS is an integrated system designed to improve the efficiency with which HR data is compiled. It makes HR records more useful to the management by serving as a source of information.vi.
vi. Stress and counseling: Stress is the psychological and physical reaction to certain life events or situations. At an organizational level, stress results in burn out, substance abuse in the form of alcohol or drug use/dependence reduced job satisfaction, increased absenteeism and increased turnover. Companies, therefore, are closely looking at what should be done to promote the physical and mental well being of employees through proper counseling and employee development programmes.
iv. International human resource management: International business is important to almost every business today and so firms must increasingly be managed with a clear global focus. This of course, poses many challenges before managers including coordinating production, sales and financial operations on a worldwide basis. International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and training services to help employees adapt to a new and different environment outside their own country.
HUMAN RESOURCE DEVELOPMENT
Introduction to human resource development:
A human resource development is set of planned and systematic activities designed by an organization to provide opportunities to its members to learn skills necessary for the present and future job requirements. The process of HRD involves the development of expertise in the employee through organizational development and training and development. The aim of HRD is to improve the performance of the employees. The three main areas of human resource development are human resource management, quality improvement and career development.
A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.
According to the American Society of Training and Development (ASTD), HRD is the integrated use of training and development, organizational development, and career development to improve individual group, and organizational effectiveness. Society ‘is faced with new challenges and changes daily which increase the need to provide employees with appropriate learning experiences. Moreover, HRD helps organizations to provide learning related to the goals of the organization and to its employees. This learning is accomplished by providing training, education, and development.
OBJECTIVES OF HRD
1. The capabilities of each employee as an individual
2. The capabilities of each individual in relation to his present role
3. The capabilities of each employee in relation to his expected future role
4. The dyadic relationship between each employee and his employer
5. The team spirit and function in every organizational unit
NEED AND SCOPE OF HRD
1. Growth of organization: Growth of organization is associated with the development of its workforce. In changing situation HRD must be viewed as the total system interrelated and interacting with other systems at work: production, finance, and marketing.
2. Development of work culture: The need of HRD is felt as it improves the efficiency of employees, checks monotony at work, better communication, development of mutual cooperation and creativity of all the members comes into limelight.
3. Developing potentialities: The focus of HRD manager essentially is on enabling people to self-actualize through a systematic approach by which their existing talents are further developed.
4. Growth of employees: HRD is associated with growth of employees. It helps employees to know their strengths and weaknesses and enable them to improve their performance. The management should provide adequate opportunity for the development of human resource management for the development of their talents so that their development will benefits the organizational growth.
IMPORTANCE OF HRD
1. HRD improves the capabilities of people
2. HRD improves team work
3. HRD leads to greater organizational effectiveness
4. The organization health and quality will improve
FUNCTIONS OF HRD
Training and development is aimed at improving or changing the knowledge skills and attitudes of the employees.
OD is the process of increasing the effectiveness of an organization along with the well being of its members with the help of planned interventions that use the concepts of behavioral science.
it is a continuous process in which an individual progress through different stages of career each having a relatively unique set of issues and tasks. Career development comprises of two distinct processes.
Human Resource Development in Education (HRDE) Program aims to respond to this challenge. It is designed to meet the competency needs of training and development specialists who are seeking to gain knowledge, understanding and expertise in the area of HRDE. This program is suitable both for new graduates wishing to make a career move into HRDE and for those who are currently working in this area but wish to strengthen their capabilities. Those who graduate from the proposed program are expected to enhance their ability in thinking creatively and producing solutions to training problems of their institutions/organizations the introduction of human resources-related work readiness courses for high school and college graduates as part of the curriculum was one of the positive outcomes of the economic downturn that began in 2007. These individuals often lack the interpersonal skills necessary for successful networking and job interviews. With most HR departments requiring online applications, technical education and familiarization with computers and keyboarding are the new educational basics. Even government agencies are creating educational programs aimed at making the unemployed work-ready.
IMPORTANCE OF HRD IN EDUCATION
Workplace Readiness-Human resources are moving into the classroom. High schools and colleges are putting more emphasis on workplace readiness. Student jobseekers still need math, English and grammar skills, but may fail in the workplace because they are not ready for the harsh realities of a regular work schedule. They have to be on time, every day. The boss won't like everything they do and they have to comply with a set of policies and rules they may not like. Some school districts are forming career education advisory councils, made up of local business and industry professionals, to help create programs based on the reality of everyday work.
Soft Skills Training-A new employee may have graduated at the top of her class, but may not know how to compromise or effectively work with a team. She may not have any idea of how to manage time or multiple work assignments. These soft skills are essential when working with others to produce a common result. This type of essential human relations education teaches new employees how to get along with co-workers and interact effectively.
Interpersonal Communication-The Internet and communications technology such as Skype, webinars and video conferencing are quickly replacing the stand-up two-day training session or corporate meeting. Public speaking, making proper introductions, presentation skills, and the use of media and visual aids are everyday requirements in today's workplace. Human resources often considers experience and education in these skills a plus, giving one candidate an edge over another.
Work-Ready Communities-State and local governments are using education to gain the competitive edge. Georgia has introduced the Ready to Work Program to assess and train the state's workforce and provide a skilled labor pool to encourage corporations and businesses to relocate in the state. Through training, education and job-profiling, individuals, companies and communities can take advantage of training, assessments and certification. Schools can use the Ready to Work criteria and testing to certify students as ready to work before they seek employment. Certification gives human resources a measure of comfort knowing that the candidate has already qualified under this program.
1. The major goal of the program is to enhance and develop the key competencies required of current and future practitioners in the training and development field.
2. Goals include the preparation of practitioners who can contribute to enhancing the effectiveness of training and development programs, and to positively affecting performance of their human resource units through an integrated program.
3. It is integrated in the sense that it meshes theory and experiential training for its students in various areas of education such as administration, curriculum development and instruction, assessment and counseling.
Work planning and performance review meetings on a regular basis. This system allows both the supervisor and the employee to evaluate performance and to plan ahead for training or other career development activities, if needed. A work planning and performance review system can improve individual staff performance and increase staff motivation. If you use the system as the basis for creating a staff development plan, it will also help you align staff development efforts more closely with your organization’s goals.
HR/ MANPOWER PLANNING
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization.
According to Geisler, “Manpower planning (HRP) is the process – including forecasting, developing, implementing and controlling, by which a firm ensures that it has the right number of people and right kind of people, at the right place, at the right time, doing things for which they are economically most suitable”.
Decenzo and Robbins have defined HRP as “specifically, human resource planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives”.
According to Vetter, “HRP is the process by which management determines how the organization should move from its current man power position to desired manpower position. Through planning, management strives to have the right time, doing things which result in both the organization and individual receiving
maximum long run benefits”.
According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower requirements and Planning of Manpower supplies”.
EXECUTIVE RESOURCE PLANNING
Executive Resource Management
Organizations typically plan their future needs for supplies, equipment, building capacity, and financing. Organizations must also plan to ensure that their human resource needs are satisfied. Human resource planning involves identifying staffing needs, forecasting available personnel, and determining what additions or replacements are required to maintain a staff of the desired quantity and quality to achieve the organization’s goals. The human resource planning function involves at least three different elements: job analysis, forecasting demand and supply, and legal restraints.
This new approach is exhibited in DDI’s Executive Resource Management (ERM) model. ERM represents an emerging organizational function that aligns all activities associated with managing executive talent under one structure. The purpose of the alignment is to bring strategic focus to this leadership group and allow for the type of decision making and leveraging of resources necessary to transform executive talent into a competitive edge.The ERM model is structured around the core of the organization that includes the vision, business strategy, and cultural strategy or, in other words, those components which define the focus of the organization. The model has five primary components that encompass all of the activities necessary to transform the management of executive talent into a competitive advantage. These components include:
• Organizational Core—the elements defining direction and future success of the organization
• Executive Selection—applying tools and techniques to ensure the highest caliber talent enters and ascends the organization.
• Strategic Executive Development—using focused development to strengthen the ability of executives to execute the elements of the organizational core.
• Performance Assurance—measuring performance and providing the feedback to enable executives’ to calibrate and adjust behavior to achieve success.
• Competitive Retention—implementing tactics to achieve effective retention of executive talent, while maintaining a competitive industry profile.
• Succession Management—monitoring executive talent in relation to the organizational core and executing an action plan that maximizes the use of talent in achieving elements of the core.
ELEMENTS OF EXECUTIVE RESOURCE PLANNING
Humans are considered as primary resource of the organization. Recruitment and retaining the human resource in the concern is a big challenge in now a day. Executive resource planning refers –to recruit and maintain a executives’ in a proper way.
It consists four elements
1. Executive resource inventory
3. Career development plans
4. Management succession system
1. Executive resource inventory-Human Resources Inventory is an inventory of skills of human resources currently employed in the organization. It tells management what individual employees can do. The profile of the human resource inventory can provide information for identifying current or future threats to the organization's ability to perform .It is necessary for a firm to identify the current capability and skills of their employees.
2. Forecasting-Forecasting demand involves determining the numbers and kinds of personnel that an organization will need at some point in the future. Forecasting supply involves determining what personnel will be available
3. Career development plans- Career development, a major aspect of human development, is the process through which an individual's work identity is formed. It spans one's entire lifetime. Career development begins with a person's earliest awareness of the ways in which people make a living, continues as he or she explores occupations and ultimately decides what career to pursue, prepares for it, applies for and gets a job and advances in it. It may, and probably will include, changing careers and jobs.
4. Succession planning-it is a process for identifying and developing internal people with the potential to fill key business leadership positions in the company. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.
New Trends in international HRM
International HRM 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.
1. Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse.
2. 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. Managers need to be protected from career development risks, re -entry problems and culture shock.
3. To balance the pros and cons of home country and host c country evaluations, performance evaluations should combine the two sources of appraisal information.
4. Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.
5. In many European countries - Germany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized.
1. HR as a spacing board for success: Executives with people management skills would be able to steal the show, since they help integrate corporate goals with employee expectations in a successful way. Senior HR executives would be able to smoothly move into top management positions, using their soft skills to good advantage.
2. Talent hunting, developing and retaining: Clear focus areas: The 21stcentury Corporation would be looking for people with cross-functional expertise strong academic background and team management skills. The new recruits are is expected to utilize the scarce resources judiciously and produce excellent results- in line with the expectations of internal as well as external groups. As companies realize the importance of human element in gaining a sustainable competitive advantage, there would be a mad scramble for 'talent'. This would in turn, compel corporate houses to pay close attention to talent acquisition development and retention through novel developmental efforts compensation packages and incentive schemes apart from flexible working schedules. More and more workers would be able to process information by working at homes, forcing companies to evaluate each employee’s contribution carefully and pay accordingly.
3. Lean and mean organizations: Organizations will be forced to eliminate low-end job, say good-bye to older employees with limited skill-sets, outsource work to specialized institutions in an attempt to save costs and remain highly competitive. As a result layoffs would occur and unemployment rates will go up; large outlays of cash may be required while buying out older employees and obtaining employee loyalty and commitment would be quite challenging in such a scenario.
4. Labour relations: Deregulation, privatization, global competition and the like would in a way, mean the end of the road for trade unions. They will lose their count slowly but steadily. The political support enjoyed by them hitherto would also come down drastically. Economic compulsions would make both the employers and employees realize the folly of pulling down shutters or going on strike, however genuine the cause might be. Governmental influence inlabour-management relations would have only historical significance as employment-related issues begin to be dictated by market forces’.
5. Health care benefits: To attract talented workforce healthier work environments would be an absolute necessity. Employees would be obliged to give their employees safe, healthy and secure work environments. Wellness programmes also need to be designed to help employees identify potential health risks and deal with them before they become problems. More importantly, organizations need to pay more attention to issues such as office decor, furniture design, space utilization with a view to improve the comfort levels of employees.
After having spent time placing HR Management in a wider societal context, this session will bring the discussion back to your own organisation. We will look at what role HR Management can play in your organisation. In doing so, we will repeat aspects of previous discussions (which is useful revision), and we will lead into some of the issues and discussions which will follow in the units that follow.
THE ROLE OF HR DEVELOPMENT AND MANAGEMENT IN CORPORATE
At the organisational level HR Development (HRD) involves linking management and the development of human resources to an organisation's strategic plan, goals, and objectives. Establishing these links is an essential management strategy. It involves assessing the capacity of an organisation's human resources in six areas — HRD capacity, HRD planning, personnel policy and practice, HRD data, performance management, and training. These HRD areas are relevant in any organisation, regardless of its size, purpose, and degree of complexity, and whether it is public or private. We examine the expanding role of HRD in helping an organisation deliver on its mission and discuss factors related to performance management.
1. A quick look at your current HR Development system
HRD is perhaps the most misunderstood and poorly utilized management system in the health sector today. As a result, determining your organization’s current view of its human resources and how it should strengthen its systems can be a challenging task. Whether you work at the national, regional, or local level, taking the following Human Resources Quiz for Managers will help you begin to think about some of the issues involved and begin the process of establishing an HRD system that improves productivity and helps you provide quality services that meet your clients' needs.
2. Looking at human resource issues at the national level
In many countries, the health-sector workforce is dissatisfied, underpaid, poorly motivated, and sceptical of decision makers' ability to solve the problems facing the health sector. Yet, it is people—the managers and staff working in health—who are responsible for implementing the changes resulting from health-sector reform. A comprehensive HRD system is essential for ensuring an efficient and motivated workforce capable of contributing to the ultimate success of the reforms.
In an era of health-sector reform and shrinking budgets, providing quality health services requires leadership. Leaders and managers need to have:
These human resource concerns will drive national policy development regarding the training and education that your workforce needs in order to provide essential services to your client populations.
3. Considering the implications of health-sector reform - Countries throughout the world are seeking better ways to structure and finance their health services. If your country undertakes health-sector reform, you may be expected to participate in the reform process, while at the same time ensure that clients receive quality services. To accomplish this, you need to:
Your staff must also understand and support the goals of health-sector reform, appreciate the impending changes in health-service organisations and structures, and be ready to adapt and respond appropriately to these changes. Human resources are the essential engine of health-sector reform. Without the support and participation of people, reforms are impossible to implement. But changes in organisational structures, levels of responsibility, and financing arrangements under reform can influence the motivation and productivity of staff. You may face both opportunities and challenges in developing, maintaining, and motivating a work force that will be effective both in implementing reforms and delivering services.
Civil service reform. One opportunity you might have under civil service reform, for example, is an increase in salaries for different types of jobs, which can enhance your ability to attract and keep qualified staff. Civil service reform might also involve efforts to improve the human resource information system, which can provide you with better data on staff numbers, types, distribution, and costs. This can greatly strengthen your capacity to undertake human resource planning. Further, civil service reform sometimes involves transferring health workers from the national civil service to local health boards, which can give local health managers greater flexibility in deciding how many staff to hire and how much to pay them.
Civil service reform also brings challenges. Radical civil service reform, for example, can interrupt essential human resource management functions such as hiring, firing, and paying salaries and benefits. If your country is considering implementing radical civil service reform, you may need to clarify in advance how you will implement these functions to avoid confusion and a swift drop in staff morale. Further, if civil service reform includes an ambitious program to reduce the size of the workforce, you may have to be creative in determining ways to implement reforms and to deliver quality services with a limited number of staff.
Decentralization: a tool of health-sector reform - Decentralizing the authority for financial and programmatic management of health services from central to local levels is intended to bring the planning and management of health services closer to the clients. It is also intended to make them more efficient. The magnitude of the human resource issues related to decentralization depends on the form and type of decentralization that your country has adopted. Transferring budgetary and staffing authority from a central to a municipal level, for example, has far greater implications than delegating limited powers to a provincial health office. A fully functional human resource system and good HRD planning can facilitate the transfer of power to lower levels by making it easier for you to restructure jobs, revise job descriptions, and carry out ongoing supervision and training of the people at lower levels who will assume new responsibilities.