Nature of HRM (Human resources management) HRM is process of bringing people and organizations together so that the goals of each are met. It tries to secure the best from people by winning their whole hearted cooperation. In short, it may be defined as the art of procuring developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. It has the following features: Pervasive force: HRM in pervasive(omnipresent) in nature. It is present in all enterprises.
It permeates all levels of management in organizations Action oriented: HRM focuses attention on action, rather than on record keeping written procedures or rules. The problems of employees at work solved through rational policies. Individually oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organizations. It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage policies. People oriented: HRM is all about people at work both as individuals and groups.
It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity. Future oriented: Effective HRM helps an organization meet its goals in the future by providing for competent and well motivated employees. 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 improve 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. Integrating mechanism: HRM tries to build and maintain cardinal relations between people working at various levels in the organization. In short it tries to integrate human assets (An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity) in the best possible manner the service of an organization.
Comprehensive functions: 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 an forms at each level in the organizational hierarchy but the basic objective of achieving organizational effectiveness through effective ad efficient utilization of 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 organizations Auxiliary service: HR departments exist to assist an advice the line or operating managers to do their personnel work more effectively. HR manager is a specified advisor. It is staff function. Inter disciplinary function: HRM is a multi disciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, economics etc.
To unravel the mystery surrounding the human brain managers, need to understand and appreciate the contributions of all such soft disciplines. Continuous functions: According to Terry, HRM is not a one shot deal. It cannot be practiced only one hour each day or one day a week. It requires a constant alertness and awareness of human relations and their importance in every day operations. 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 functions in recent years. The Indian Institute of personnel management has specified the scope of HRM thus: 1) Personnel aspect: This is concerned with manpower planning, recruitment, selection, placement, transfer promotion, training ad development lay off and retrenchment remuneration incentives productivity etc. ) Welfare aspect: It deals with working conditions and amenities such as canteens, creches rest and lunch room housing transport medical assistance education , healthy and safety recreation facilities etc 3) Industrial relations aspects: This covers union management relations joint consultation collective bargaining grievances and disciplinary procedures settlement of disputes etc. Objectives and Importance of HRM The principal objectives of HRM may be listed thus: )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 these purposes, 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. )To provide the organization with well trained and well motivated employees: HRM requires that employees are 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 organizations. 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 programs have to be designed aimed at improving the quality of work life (QWL). )To develop and maintain 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. )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. People have always been central to organizations, but their strategic importance is growing in today’s knowledge based industries. An organization’s success increasingly depends on the knowledge skills and abilities (KSAs) of employees particularly as they help establish a set of core competencies that distinguish an organization from its competitors.
With appropriate HR policies and practices an organization can hire develop and utilizes best brains in the marketplace realize its professional goals and deliver results better than others. Human resources management helps an organization and its people to realize their respective goals thus: At the enterprise levels: 1) Good human resource practices can help in attracting and retaining the best people in the organization. Planning alerts the company to the types it will need in the short medium and long run. ) it helps in training people for challenging roles, developing right attitudes towards the job and the company promoting team spirit among employees and developing loyalty and commitment through appropriate reward schemes. At the individual level: Effective management of human resources helps employees thus: 1) it promotes team work and team spirit among employees. 2) It offers excellent growth opportunities to people who have the potential to rise. 3) It allows people to work with diligence and commitment.
At the society level: Society, as a whole is the major beneficiary of good human resources practices 1) Employment opportunities multiply. 2) Scarce talents are put to best use. Companies that pay and treat people well always race ahead of others and deliver excellent results At the national level: Effective use of human resources helps in exploitation of natural, physical and financial resources in a better way. People with right skills, proper attitudes and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard. Importance of HRM
Good HR practices help: 1) attract and retain talent 2) train people for challenging roles 3) develop skills and competencies 4) promote team spirit 5) develop loyalty and commitment 6) increase productivity and profits 7) improve job satisfaction 8) enhance standard of living 9) Generate employment opportunities. Systems Approach to HRM A SYSTEM IS A SET OF INTERRELATED but separate elements or parts working towards a common goal. A university for example, is made up of students, teachers administrative and laboratory staff who relate to one another in an orderly manner.
What one group does have serious implications for others? So they are communicating with each other in order to achieve the overall goal for imparting education. The enterprise operations similarly must be viewed in terms of interacting and interdependent elements. The enterprises procure and transform inputs such as physical, financial and human resources into outputs such as products services and satisfactions offered to people at large. To carry out its operations each enterprise has certain departments known as subsystems such as production subsystem, finance subsystems, marketing subsystem, and HR subsystem etc .
Each consists of a number of other subsystems. For example the HR subsystem may have parts such as procurement, training compensation appraisal rewards etc If we were to view HR subsystem a crucial to organizational performance an organizations performance an organization presents itself thus: The various internal subsystems it should be noted here, of an organizational operate within the frame work of external environment consisting of potential social economic and technological forces operating within and outside a nation.
HRM and Competitive Advantage Competitive advantages refers to the ability of an organization formulate strategies to exploit rewarding opportunities thereby maximizing its return on investment. Competitive advantages occur if customers perceive that they receive value from their transaction with an organization. This requires single minded focus on customers’ needs and expectations. To achieve this, the organizations need to tune its policies in line with changing customer’s requirements.
The second principle of competitive advantage derives from offering a product or services that your competitor cannot easily imitate or copy. An organization should always try to be unique in its industry along dimensions that are widely valued by customers. For example Apple stresses its computers usability. Mercedes Benz stresses reliability and quality; Maruti emphasizes affordability of its lower end car Maruti 800. In order to enjoy the competitive advantage the firm should be a cost leader delivering value of money.
It must have a committed and competent workforce. Workers are most productive if (1) they are loyal to the company, informed about its mission, strategic and current levels of success, (2) involved in teams which collectively decide how things are to be done and (3) are trusted to take the right decisions rather tan be controlled at every stage by managers above them (Thompson). A good team of competent and c committed employees will deliver the goals if they are involved in all important activities and are encouraged to develop goals that they are supposed to achieve.
In recent years, a new line of thinking ha emerged to support this view known as strategic human resources management (SHRM). Competitive advantage through people: Organizations have come to realize over the years that improving technology and cutting costs enhance performance only up to a point. To move beyond that point, the organization’s people are its most important resources. In the end everything an organization does depends on people. Low cost and high quality cars like Toyota and Saturns are not just a product of sophisticated automated machines.
Instead they are the result of committed employees all working hard to produce the best cars that they can at the lowest possible cost (Dessler). To get the best out of people the organization must offer a healthy work climate where they can us their knowledge skills and abilities fully while organizational goals. There is where HR managers play a crucial role – that of bridging gaps between employee and organizational requirements by adopting appropriate Hr policies strategies and practices.