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Scope and Characteristics of HRM

Scope and Characteristics of HRM
Scope and Characteristics of HRM 1. Personnel aspect: concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc.; 2. Welfare aspect; dealing with working conditions and provision of amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health, safety, recreation facilities, etc.; and 3. Industrial Relations aspect: the legal part which covers union-management relations, joint consultation, collective bargaining, grievance redress and disciplinary procedures, settlement of disputes, etc. Small Business Management and Marketing Essentials CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT: 1. It is an art and a science: The art and science of HRM is indeed very complex. HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and demanding application of theory that is required. 2. It is pervasive: Development of HRM covers all levels and all categories of people, and management and operational staff. No discrimination is made between any levels or categories. All those who are managers have to perform HRM. It is pervasive also because it is required in every department of the organisation. All kinds of organisations, profit or non-­profit making, have to follow HRM. 3. It is a continuous process: First, it is a process as there are number of functions to be performed in a series, beginning with human resource planning to recruitment to selection, to training to performance appraisal. To be specific, the HRM process includes acquisition (HR planning, recruitment, selection, placement, socialisation), development (training and development, and career development), utilisation (job design, motivation, performance appraisal and reward management), and maintenance (labour relations, employee discipline, grievance handling, welfare, and termination). Second, it is continuous, because HRM is a never-ending process. 4. HRM is a service function: HRM is not a profit centre. It serves all other functional departments. But the basic responsibility always lies with the line managers. HRM is a staff function – a facilitator. The HR Manager has line authority only within his own department, but has staff authority as far as other departments are concerned. 5. HRM must be regulation-friendly: The HRM function has to be discharged in a manner that legal dictates are not violated. Equal opportunity and equal pay for all, inclusion of communities in employment, inclusion of tribal’s  and farmers in the benefits and non-violation of human rights must be taken care of by the HRM. 6. Interdisciplinary and fast changing: It is encompassing welfare, manpower, personnel management, and keeps close association with employee and industrial relations. It is multi- disciplinary activity utilising knowledge and inputs from psychology, sociology, economics, etc. It is changing itself in accordance with the changing environment. It has travelled from exploitation of workers to treating them as equal partners in the task. 7. Focus on results: HRM is performance oriented. It has its focus on results, rather than on rules. It encourages people to give their 100%. It tries to secure the best from people by winning the whole hearted cooperation. It is a process of bringing people and organization together so that the goals of each are met. It is commitment oriented. 8. People-centred: HRM is about people at work both as individuals and a group. It tries to help employees to develop their potential fully. It comprises people-related functions like hiring, training and development, performance appraisal, working environment, etc. HRM has the responsibility of building human capital. People are vital for achieving organizational goals. Organizational performance depends on the quality of people and employees. 9. Human relations philosophy: HRM is a philosophy and the basic assumption is that employees are human beings and not a factor of production like...
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Human Resource Management

Human Resource Management
Definitions of Human Resource Management:  1. “A series of integrated decisions that govern employer-employee relations. Their quality contributes to the ability of organisations and employees to achieve their objectives.” (Milkovich & Boudreau, 1997). 2. “Concerned with the people dimension to management. Since every organisation comprises people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue at the same level of commitment to the organisation are essential to achieving organisational goal. This is true, regardless of the type of organisation: viz. government, business, education, health, recreation, or social action.” (Decenzo & Robbins, 1989). 3.”The planning, organising directing and controlling of the procurement, development, compensation, integration, and maintenance of human resource to the end those individual, organisational, and social objectives are accomplished.” (Flippo, 1984). 4. “The organisation function that focuses on the effective management, direction, and utilisation of people; both the people who manage produce and market and sell the products and services of an organisation and those who support organisational activities. It deals with the human element in the organisation, people as individuals and groups, their recruitment, selection, assignment, motivation, empowerment, compensation, utilisation, services, training, development, promotion, termination and retirement.”(Tracey,1994 ) Knowledge Workers Human resource management is therefore understood as the all significant art and science of managing people in an organisation. Increasing research output in behavioral sciences, new trends in managing ‘knowledge workers’ and advances in training methodology and practices have led to substantial expansion of the scope of human resource management function in recent years. HRM is not just an arena of personnel administration anymore but rather a central and pervasive general management function involving specialised staff as assistants to main line managers. Managing employee relationships is the role of the Human Resource department Human Resource Management is a process of valuing and developing people at work, this includes: Recruitment and selection Employee communication and engagement (participation) to increase employee retention Training and development  Leadership WHAT IS YOUR GREATEST WEAKNESS Labour turnover & staff retention Labour turnover refers to the proportion of a workforce that leave during a period of time (usually one year) Labour turnover =  number of staff leaving during the period x 100 average number of staff Staff retention refers to the ability of a firm to keep its workers. The disadvantages of having a large proportion of staff leaving each year include: The cost of recruiting replacement workers The cost of training the new workers  Loss of productivity whilst replacements are found  Loss of experienced workers  Negative impact on reputation WHAT IS YOUR GREATEST STRENGTH Methods to control turnover: 1. Financial methods of motivation Bonuses Profit share Fringe benefits 2. Non financial methods of motivation Employee engagement and empowerment Training and development Promotion opportunities 3. Improved Human Resource Management procedures  Four Fundamental Principles of HRM: Human Resource is the organisation’s most important asset; Personnel policies should be directed towards achievement of ENTERPRISE goals and strategic plans; Corporate culture exerts a major influence on achievement of excellence and must therefore be    strengthened with consideration of employee welfare. Whilst integration of corporate resources is an important aim of HRM, it must also be recognised that all organisations are ‘pluralist societies’ in which people have differing interests and concerns, which they defend and at the same time function collectively as a cohesive group. →Evolution of...
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Functions of Management

Functions of Management
Functions of Management MANAGEMENT FUNCTIONS  The objective of this topic is to make students understand the functions of management and the role of managers in an organization. The five  basic management functions are listed below: ·  PLANNING ·  ORGANISING ·  STAFFING ·  LEADING ·  CONTROLLING PLANNING: The managerial activities aid in selecting the objectives, examine and forecast changes, develop policies, procedures and choose future course of action from among alternatives.  Planning proceeds from “Where we are” to “Where we want to go.”     Planning activities are 1.       Analysing the current situation (also called the SWOT Analysis) 2.       Anticipating or predicting the future based on the analysis 3.       Determination of organizational objectives to be achieved 4.       Deciding on the action plan 5.       Evolving proper strategies 6.       Pooling the resources (physical, financial and monetary)  to accomplish enterprise objective    ORGANISING: It is a process which integrates people and tasks; In order to achieve their tasks people are given sufficient authority, tools and information.     Organising activities include 1.       Specification of job responsibilities 2.       Grouping of jobs into respective work units 3.       Allocation of resources   STAFFING: Human resource management is one of the key areas that decides the success of a firm’s activity. Staffing involves the selection of “Right person for the right job.”   The activities are 1.       Recruitment 2.       Selection 3.       Training and Development 4.       Compensation 5.       Promotion 6.       Evaluation and 7.       Rewarding people to achieve enterprise goals.   LEADING: Leadership is the set of interpersonal behaviors that influence people to contribute to the organization and group goals.     The activities under this category are 1. Providing proper direction 2. Guidance and Motivation 3. Clarity in communication  to the work force   CONTROLLING: This is a process that is necessary to keep track of the performace of individuals by setting some standards for direction.     The activities include 1. Establishing performance standards enabling the work force to achieve the goals (both short term and long term) 2. Enhancing the employee performance through performance appraisal or rating of work 3. Comparison of performance against the standards to  identify deviation  or work problems and take corrective measures 4. Bench marking is one of the management techniques that facilitates an organization to uplift its performance levels to the best of industry standards and also catch hold of the strengths of the competitors and rectify the weaknesses prevailing in one’s own firm.   CO-ORDINATION: It is regarded as a key function of a manager to bring in harmony among individuals and an effort towards accomplishment of goals. 1. Marginal decision making and 2. Sub Optimisation are some of the new approaches developed in the field of decision making.   MANAGERIAL SKILLS: Skill is the resultant effect of knowledge, experience and expertise. It is the ability of an individual to perform a task which is obvious from the results he/ she shows.     There are 3 kinds of skills that a manager should possess in order to excel.   1. The Conceptual Skill: Assessing a situation and acting accordingly depicts the manager’s perceiving ability of the abstract elements in  force. A manager has to improve this kind of skill as he moves up the ladder in the management level or let us say that he can move up the ladder only if he possesses this kind of skill. · Management Consultants · Managing Director of a firm · President of a company · Economists · Startegists are conceptual analytic experts   2. The Technical Skill: This skill is purely based on one’s knowledge and  on the job experience. This is needed at  a lower level of management · Computer Operators · Engineers · Accountants · Machine Operators possess this kind of skill   3. The Human Relations Skill: This...
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