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UNIT: 01
INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
Structure
1.1 Introduction
1.2 Objectives
1.3 Concept of Human Resource Management (HRM)
1.3.1 Definition of HRM 1.3.2 Nature of HRM 1.3.3 Objective of HRM 1.3.4 Scope of HRM 1.3.5 Functions of HRM 1.3.6 Importance of HRM
1.4 Growth drivers of HRM in India
1.5 Role of HRM
1.5.1 Role of HR manager
1.6 Characteristics of Hospitality Industry
1.7 HR Challenges
1.8 Man Power Planning/Human Resource Planning (HRP) 1.8.1 Need of HRP 1.8.2 Objective of HRP 1.8.3 Process of HRP 1.8.4 Importance of HRP
1.9 Managing Workers
1.10 Summary
1.11 Key Terms
1.12 References 1.13 Suggested Reading
1.14 Terminal Questions
1.1 INTRODUCTION
The revolution in the Information technology has brought significant and drastic changes in our day-to-day life. Indian software professionals made significant strides in the information technology industry of USA. Employees of Rourkela Steel Plant turned the loss-making unit into a profit-making company, whereas most of the public sector
companies like Hindustan Machine Tools Ltd. (HMT), and Hindustan Cables Ltd., became sick. Thus, there are several number of live examples available where people or employee can make or mar an organisation. Therefore every company or organisation is deeply interested in having an answer to this question that How to induce the employees or people to make an organisation but not to mar it.
Today it is unanimously accepted by all the organizations that Human resource or manpower has a paramount importance in the success of any organization because most of the problems in organizational setting are human and social rather than physical, technical or economical failure. In the words of Oliver Shelden, ―No industry can be rendered efficient so long as the basic fact remains unrecognized that it is principally human.‖
1.2 LEARNING OBJECTIVES
After reading this unit the student will be able to understand:
The meaning & objectives of Human Resource Management in today‘s scenario. The importance and role of HRM in the organisation &for society. The origin and growth of HRM in India. The challenges faced by HRM in India. The general characteristics of hospitality industry. The meaning and objectives of Human Resource Planning. The process and importance of HRP in the organisation. How to manage the workers in the organisation.
1.3 CONCEPT OF HRM
HRM is concerned with the human beings in an organization. ―The management of man‖. Though it is a very important and challenging job because of the dynamic nature of the employees .As no two people are similar in nature – in every aspect of mental abilities, tacticians, sentiments, and behaviors; they differ widely not only individually but also as a group and are subjected to many varied influences. People are responsive, they feel, think and act therefore they cannot be handled like a machine or shifted and altered like template in a room layout. They therefore need a tactful handing by management personnel.‖
HRM is the process of managing people of an organization with a human approach. Human resources approach to manpower enables the manager to view the people as an important resource. It is the approach through which organization can utilize the manpower not only for the benefits of the organization but for the growth, development and self satisfaction of the concerned people. Thus, HRM is a system that focuses on human resources development on one hand and effective management of people on the other hand so that people will enjoy human dignity in their employment.
- To help the organization to attain its goals effectively and efficiently by providing competent and motivated employees.
- To utilize the available human resources effectively.
- To increase to the fullest the employee‘s job satisfaction and self-actualization.
- To develop and maintain the quality of work life (QWL) which makes employment in the organization a desirable personal and social situation.
- To help maintain ethical policies and behavior inside and outside the organization.
- To establish and maintain cordial relations between employees and management.
- To reconcile individual/group goals with organizational goals.
1.3.4 Scope of Human Resource Management
1. Personnel Aspect Human Resource Planning – It is the process by which the organisation identifies the number of jobs vacant.
Job Analysis and Job Design – Job analysis is the systematic process for gathering, documenting, and analyzing data about the work required for a job. Job analysis is the procedure for identifying those duties or behaviour that defines a job.
Recruitment and Selection – Recruitment is the process of preparing advertisements on the basis of information collected from job analysis and publishing it in newspaper. Selection is the process of choosing the best candidate among the candidates applied for the job.
Orientation and Induction – Making the selected candidate informed about the organization‘s background, culture, values, and work ethics.
Training and Development – Training is provided to both new and existing employees to improve their performance.
Performance Appraisal – Performance check is done of every employee by Human Resource Management. Promotions, transfers, incentives, and salary increments are decided on the basis of employee performance appraisal.
Compensation Planning and Remuneration – It is the job of Human Resource Management to plan compensation and remunerate.
Motivatio n – Human Resource Management tries to keep employees motivated so that employees put their maximum efforts in work.
2. Welfare Aspect – Human Resource Management have to follow certain health and safety regulations for the benefit of employees. It deals with working conditions, and
amenities like - canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union members to avoid strikes or lockouts to ensure smooth functioning of the organisation. It also covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and dispute settlement.
1.3.5 Functions of HRM
We have already defined HRM and suggested that it is a management function ie it is
based on what managers do and the functions performed by managers are common to all
organizations. For the convenience of study, the function performed by the resource
management can broadly be classified into two categories, ie Managerial functions and
Operative functions
1. Managerial Functions: It includes Planning, Organising, Staffing, Directing and controlling (POSDC)
a. Planning: Planning is to plan for future or predetermine the course of actions to be taken in future. It is a process of identifying the organisational goals and formulation of policies and programmes for achieving those goals.
b. Organising: Organising is a process by which the structure and allocation of jobs are determined. Thus organising involves giving each employee a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on.
c. Staffing: This is a process by which managers select, train, promote and remove their employees This involves deciding what type of people should be hired, recruiting, selecting employees, setting the performance standard, compensation of employees, evaluation of performance of employees, counseling employees, training and developing employees.
d. Directing/Leading: Directing is the process of initiating or activating group efforts to achieve the desired organizational goals, which includes activities like getting subordinates to get the job done, maintaining their morale, motivating subordinates etc, for achieving the organizational goals.
e. Controlling: It is the process of setting the standards for performance, measuring the actual performance of the employees and then comparing the
1.3.6 Importance of HRM
Human resources play a crucial role in the development process of modern economics. The importance of human resource management:
- Social Significance: Proper management of employees/people helps in enhancing their dignity by satisfying their social needs. This is done by:
HRM maintains a balance between the jobs available and the jobseekers, according to the qualifications and needs. HRM helps in providing healthy work environment, which might bring them psychological satisfaction HRM makes the maximum utilization of the resources in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him By helping people make their own decisions, and supporting their decisions.
- Professional Significance: By providing healthy working environment it promotes team work in the employees. This is done by: Maintaining the dignity of the employee as a ‗human-being‘ Providing maximum opportunity for personal development Providing healthy relationship between different work groups so that work is effectively performed Improving the employees‘ working skill and capacity Correcting the errors of wrong postings and proper reallocation of work. 3. Significance for Individual Enterprise: It can help the organization in achieving its goals by: Generating right attitude among the employees through effective motivation Utilizing effectively the available goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualization. 4. Nation’s Well-being: A nation might be rich in physical resources will not get its benefit itself, unless human resource make proper use of them. In fact, human resources with right attitude are solely responsible for making use of national resources and for the transformation of traditional economies into the modern industrial and knowledge economies 5. Man vis-à-vis Machine: Most of the problems in organisation are human and social rather than physical, technical or economic. No industry can be considered efficient, as long as the basic fact remains unrecognized that it is principally human. It is not a mass of machines and technical processes but a body of men.
Thus not only the Dynamic and growth - oriented organizations requires an effective management of people in a fast - changing environment. Organizations flourish only
through the efforts and competencies of their human resources. Employee capabilities must continuously be acquired, sharpened, and used. Any organization will have proper human resource management To improve the capabilities of an individual To develop team spirit of an individual and the department To obtain necessary co - operation from the employees To promote organizational effectiveness this in turn will help in overall development of the society as a whole and thereby causing overall growth and development of the nation.
CHECK YOUR PROGRESS - I
Q1. Define HRM?
Q2. Discuss the objectives of HRM?
Q3.What is the functions of HRM in the organization?
1.4 GROWTH DRIVERS OF HRM IN INDIA
The history of development of HR management in India is not very old rather it is of recent origin. Though if we search ancient era, there are facts available that Kautilya had dealt with some of the important aspects of Human Resources Management in his ―Arthasastra,‖ written in 400 B.C. Rulers of those days adapted the techniques of HRM as suggested by
In the year 2014, emphasis is shifted to talent management and flexible human resource policies and practices.
Period Development Outlook Emphasis Status
1920 - 1930
Beginning Legalistic Statuary , Welfare, Paternalism
Clerical
1940 - 1960
Struggling Recognitio0n
Technical Paternalism Administrative Legalistic
1970 - 1980
Achieving Sophistication
Professional And Legalistic
Regulatory Conference
Management
1990s Promising Philosophical Human Values, Productivity Through People
Executive
Fig 1.2 Evolution of HRM in India (source:http://www.whatishumanresource.com/the-historical-background-of-human- resource-management)
Fig 1.3 Graphical Representation of evolution of HRM in India (source: hrdictionaryblog.com/2012/10/28/evolution-of-human-resource-management)
1.5 ROLE OF HRM
Human Resources Management plays the most crucial role in the management of an organisation. The role of HRM is to plan, develop and administer policies and programs designed to make optimum utilization of the organization‘s human resources. It is that part of management which is concerned with the people at work and their relationship within enterprises. According to R.L Mathis and J. H. Jackson (2010) several roles can be fulfilled by HR management. The nature and extent of these roles depend on both what upper management wants HR management to do and what competencies the HR staff have demonstrated. Three roles are typically identified for HR. Administrative Operational Actions Strategic HR
1. Administrative Role of HR: The administrative role of HR management is concerned with the administration and record keeping including essential legal paperwork and policy implementation. Earlier it was a tedious job but with the advancement of technology the record keeping is becoming easy and huge data can be easily stored. Classification of HR Roles
Administrative Personnel practices Legal compliance forms and paperwork
Operational Actions Managing employee relationship issues Employee advocate
Strategic HR Organizational business strategies HR strategic or planning Evaluation of HR Effectiveness
Fig 1.4 Role of HRM (Source: Mathis R. L. & Jackson J. H. {2010}: Human Resource Management Thompson/South Western.)
The Conscience Role: The conscience role is that of a role of moral teacher or guru who reminds the management of its morals and obligations which they have towards their employees.
The Counsellor : HR manager act as a counsellor for the employees who are not satisfied with the present job approach, beside that employees are facing various other problems like marital, health, etc for that also the HR Manager counsels and consults the employees and offers suggestions to solve/overcome the problems.
The Mediator: As a mediator, the HR manager plays the role of a peace-maker and settles the disputes between employees and the management.
The Spokesman: HR manager act as a spokesman for or representative of the company as well as for the employees.
The Problem-solver: He also acts as a problem solver and solves the issues related to the human resources management and overall long range organizational planning.
The Change Agent: He acts as a change agent and brings changes in various existing programmes so as to keep the organisation and employees update as according to the current scenario.
1.6 CHARACTERISTICS OF THE HOSPITALITY INDUSTRY
The first thing for the HR to do while designing and drafting the business strategies and policies for any industry, is to have in-depth knowledge of its most important product. We belong to Hospitality Industry so it is essential here to understand for Human resource to understand the basic characteristics or features of Hospitality industry before laying down the policy for Hospitality Industry. Following are the characteristics of Hospitality Industry:
Intangibility: Intangible service means the things which can be felt only and cannot take along with you. Hospitality & Tourism products are mostly services and, most of them intangible in nature though with tangible, concrete elements. A basic meaning of intangibility is that the properties of hospitality products cannot be transmitted, displayed or tested in advance. It is their use, feelings, memories which is transmitted. This means that the purchased product is unique and, in contrast to tangible products, tourism products are fundamentally experiences. Besides, intangibility implies that buyers are not sure about what they buy or about what they will get.
Perishable: Hospitality products cannot be stored so, unless consumed and if not planned, they are waste. Perishable service characteristic in hospitality industry means they won‘t last long and will not be able to experience the same
experience. For Example Airplane Seat if not booked will go empty forever revenue loss for that day. Aggregating: A tourism product can be formed by aggregating or combining various products, and this makes its commercialization and quality control very difficult. Prices can vary by eliminating or adding services to the existing pack, creating new, customized, products.
Heterogeneity: Hospitality products are heterogeneous in nature ie they are of mix nature as they are formed by combining various products, and this makes its commercialization and quality control more difficult.
Simultaneous production and consumption: As most of the products are created, stored, purchased and then used, hospitality products are purchased first and then produced and consumed simultaneously, at the same place and time. This means that services cannot be separated from their guest or consumer and, therefore, consumers have to travel to the location of the product, not vice versa. For this reason, the human component in the provision of services is extremely important
1.7 HR CHALLENGES
The most critical challenge of Human Resource department in hospitality industry is
employment-related. According to the International Society of Hospitality Consultants
suggest that labor and skills shortages as among the industry's top 10 challenges. As seen
more people are leaving than entering the hospitality workforce, keeping hotels, restaurants
and other hospitality businesses short-handed. The reasons suggested in the report are
substandard wages as one of the most important reason by which hospitality industry in India is not able to retain and attract skilled workers. Beside that Long hours, including
nights and weekends, make jobs in the industry undesirable career choices for college-
educated Some major challenges faced by HR in hospitality industry in India are:
Turnover -As already mentioned High Turnover is a major problem for HR in the hospitality sector. According to a survey by the Bureau of Labor Statistics, leisure and hospitality had some of the highest turnover rates, with an average between 4. and 5.5 percent from February to June 2013. Varied schedules, Job Shifts and low pay with lot of work pressure are some of the major reasons of high turnover in hospitality industry.
Recruitment -With relatively high turnover rates, Next problem that comes with no surprise is that of recruiting the right type of employee at the right time and at right position is a huge challenge for the HR in the hospitality industry. Even finding candidates with the skills to clear at entry-level positions has become an
socially responsible way. As society‘s well being is also depended to a large extent on its organizations.
CHECK YOUR PROGRESS-II
Q1. Discuss the role HR Manger in the organisation?
Q2. List the characteristics of hospitality industry?
1.8 MAN POWER PLANNING
Manpower Planning also called as Human Resource Planning suggest of putting right number of people, right kind of people at the right place, at right time, and doing the right things for which they are selected and suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization.
As according to Geisler, ―Manpower planning or HR Planning is the process which
includes forecasting, developing and controlling by which a organization ensures that it
has-
The right number of people, The right kind of people, At the right places, At the right time, doing work for which they are economically most useful‖.
Manpower planning as defined by stainer is the ―strategy for the requisition, utilization,
improvement and preservation of an enterprise‘s human resource. It relates to establishing
job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower.‖ Thus Manpower planning is a
process determining the requirement of right number and right kind of human force at right
place and right time.
1.8.1 Need of Manpower Planning/HRP
Manpower Planning is actually a two-phase process as manpower planning not only make the analyses of the current or present human resource requirement but also makes manpower forecasts for future and thereby help in drawing employment programmes. Manpower Planning is advantageous to firm in following manner:
- Shortages and surplus of employees can be identified so that quick action can be taken wherever required.
- Manpower Planning becomes the base for all the recruitment and selection programmes..
- It helps to reduce the labour cost by keeping a check on excess staff in the firm thereby controlling overstaffing.
- It also helps to identify the available talents in a firm so that training programmes can be framed as accordingly to develop those talents.
- It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.
- It helps the organization to understand the importance of manpower management which finally helps in the stability of a concern.
1.8.2 Objectives of Manpower Planning
Each organisation needs manpower planning. An organisational unit is started to accomplish certain goals. Which requires human resources with necessary qualification? These are provided through effective manpower planning. Comprehensive manpower planning helps to optimize effectiveness of human resources. Thus the main objective of manpower planning is to ensure optimum use of human resources. Beside that the other objectives are:
To determine present requirement level of human resource so as to ensure smooth functioning of the organisation. To analyze and calculate future skills requirement, To provide control measures so as to ensure that necessary resources are available as and when required.
iv. Work Force Analysis: Whenever production and time period has to be analyzed, due allowances have to be made for getting net manpower requirements. v. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.
- Design training programmes- These will be based upon extent of diversification, expansion plans, development programmesetc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.
1.8.4 Importance of Manpower Planning
Human Resource Planning (HRP) is a needed for following reasons:
Ensure optimum utilization of manpower and capitalize on the strength of HR. The organization can have a reservoir of talent at any point of time. To forecast future requirements and helps in controlling the availability of labor. Advance planning will help in getting continuous supply of people with desired skills who can handle challenging jobs easily. To be ready to face the technological, social, economic and political challenges To determine recruitment/induction levels. With the proper manpower planning it can decide what level of induction is required by the employees To determine training and development levels needs of the employees To know the cost of manpower if new project is being taken up. To assist in productivity bargaining. To assess in accommodation requirements which includes the physical facilities such as canteen, school, medical help, etc., can also be planned in advance. HRP is also responsible for motivating employee so as to reduce labour turn over.
1.9 MANAGING WORKER
To achieve the organizational goals, employees need to motivated at all time and at all levels thus it becomes the duty of all managers especially of HR department to keep their all employees motivated so as to achieve organizational goals and as we know all
employees are of different nature so their level of motivation is also different and it becomes the duty of the HR department to find and execute the ways to motivate and
mange the employees in their organization so as to achieve organization goals. Workers can be managed in the following ways-
Job Design- HR should design the jobs in such a way that it creates both challenging and interesting task for the employee the job designing should be based on factors such as feedback, job significance, identifying tasks and skills. These elements should be taken into consideration in order to create dynamic and satisfying jobs for the workers.
Increased independence and authority- The HR should take care that while performing the task or work workers should have the liberty and judgment to choose the method of
performing the job. The workers should be informed about the desired results in the advance and the decisions on how to complete the job should be left on the workers .This gives them more freedom to work upon the 'how to achieve' the desired outcomes. When a certain level of autonomy or freedom is provided it gives them liberty to work. But this freedom should be in controlled and monitored regularly as total autonomy will also leads to chaos.
Loyalty towards organization- The main role of a good human resource manager is to develop a feeling of faithfulness towards the organization among the workers. When the faithfulness of the employees as well as sense of belongingness towards the organization increases, their dedication and loyalty towards the job also increases. Thereby leading to less turnovers of employees with improved performance. The best way to develop faithfulness among workers is by trusting them to the maximum which helps to boost their confidence and helps them perform better.
Extensive training and development- The role of training and development in the organization can be easily seen by differentiating between a smoothly functioning organization and an unorganized one. The efficiency of workers can be increased if HR works on enhancing the employees‘ knowledge, skills and abilities instead of forcing them to do some work. A proper training session or a workshop can be organized to make
employees more efficient.
Motivation- As already mentioned workers can only perform well if they are properly motivated. When challenging tasks are assigned to these employees they get motivated. These employees should be occupied in decision making and planning which creates a sense of belongingness. Motivation is the key way to accomplishment of the job
Communication channels- Communication is the key to achieve success in the organization which is connected with teamwork and coordination. There should not be any communication barriers among the employees. The tasks in the organisation are multifaceted and require knowledge for completion which almost makes it impossible for a single person to understand or to be able to achieve everything single handed. The goals of the organisation can only be achieved through teamwork.
