Human Resource Management is concerned with people dimension in an organization . It focuses on management of human energy,competencies, and capabilities to improve productivity.An efficiently run human resource management can provide organization with structure and the ability to meet business needs through managing organizational most valuable resources.In order to achieve organizational objectives, HRM must perform certain functions. The main function performed by HRM can be classified into four categories.
1) Acquisition :It is a staffing function that ensures entry of the right number of people at right time and at the right place.Acquisition function includes human resource planning,human resource recruiting,selection,socialization.The following activities are related to acquisition:
a. Human Resource Planning :The HRM process begins with human resource planning. Human resource planning involves an estimation of demand and supply of workforce to fulfill current and future HR requirements of the organization. Based on human resource planning, the management decides the number of vacant posts, the type of work and the qualifications of the employees required. This includes the estimation of demand and supply of labor.
b. Recruitment : It involves searching for and obtaining qualified candidates in such numbers that the organization can select the most appropriate person to fill its job needs. It is the process of making a pool of qualified candidates. It ensures more people to apply for the job.
c. Selection :Selection means to choose the right candidate from among all the prospective application.It involves a series of steps by which the candidates are screened for choosing the most suitable person for vacant posts. Selection involves the process of reviewing application blanks, organizing interviews and tests and informing candidates. Information from the job analysis and human resource planning is normally used for selecting the right candidates and rejecting the wrong ones.
d. Specialization: The acquisition function is completed when the selected applicant have been placed in the organization and have adopted to the organization’s culture and environment.
e. Socialization : It is the ongoing process of inspiring all employees the prevailing attitudes, standards, values and patterns of behavior that are expected of the organization. It is an adaptation process. Socialization formats are unique to each firm.
2) Development : Another basic function of human resource management is development.Human resource management is intended to improve the performance of employees. Training,development, and career development function consist of development function of HRM.
a. Training and development : Training is designed to help employees in acquiring better skills for their current job and development is designed to help the organization ensure that it has the necessary talent internally for meeting future human resource needs. The employee training gives emphasis on skill development to cope with the current changes.Leadership training may be required for newly hired and promoted supervisors and managers on topics such as performance management and how to handle employee relations matters at the department level.
b. Career development : Career development is related to the overall development of individuals. It is the lifelong process of managing employee's work experience within or between organizations.It is the responsibility of the individual,not organizational.Career development programs are designed to help employees in advancing their work lives in an organization. Career development involves career path of the employee to match long-term individual and organizational needs.
c. Management Development : It is a systematic process of training and growth by which individuals gain and apply knowledge, skills, insights and attitudes to manage work in the organization. It focuses on developing in a systematic manner the knowledge base, attitudes, basic skills,interpersonal skills and technical skills of managers. The management development is concerned with the enhancement of an executive’s conceptual abilities.
3) Utilization : Utilization is one of the most important functions of human resource management. It ensures willingness of employees for increasing productivity.It consists of the following function :
a) Motivation : Motivation helps individuals to perform their job with the high level of energy. Even qualified and experienced individual cannot perform effectively if he/she is not motivated. Different motivational tools can be used to motivate individuals.
b) Performance appraisal : HRM appraises employees performance. It evaluates the individual with respect to his performance on the job and his potential development.It can be done using different appraisal method such as Graphic Rating Scale Method, Alternative Ranking Method,Paired Comparison Method, Forced Distribution Method,Critical Incident Method, Essay Method,Checklist method etc.
c) Compensation Management: It is the activity by which human resource management evaluates the contribution of the employee in order to distribute direct and indirect,monetary and non-monetary reward within the organizational ability to pay legal regulation. Compensation is the financial and non-financial reward to employees for services rendered to the organization.
4) Maintenance Function: The final function of Human Resource Management is the maintenance of human resource. It is concerned with providing those working condition that employee believe are necessary in order to maintain their commitment to the organization. It is also an important function or component of HRM.This system provides a conceptual structure for integrating the various components of the HRM system. Maintenance consists of the following function.
a) Labour Relations: It denotes the relationship between workers and employers, between workers organization and employers organization and between these respective organizations and public authorities.Good labor relation enhances employees morals and it also ensures organizational effectiveness.
b) Employee Discipline : It is the condition in the organization when employees conduct themselves in accordance with the organization rules and standard of acceptable behavior.HRM need to encourage employees to behave in the way that makes sense of work.
c) Employee Welfare :Providing employee welfare is another important function of HRM. HRM operates different kinds of employees welfare programs such as a safety,health,recreation,insurance,etc.It includes various activities and programs such as recreation, canteen facilities, sports,water,lighting,safety and health etc.
HRM is a system. This system consists of inputs, processes, and outputs. Organizational objectives, human resource ability, human resource inventory, and labor market are inputs of this system. Acquisition, development, utilization and maintenance are its processes. Similarly, goal achievement, readiness to change, profit, resource .productivity and quality of work life are outputs of HRM system.
1) Inputs: HRM is a system. Organizational objectives, human resources ability, human resource inventory, and labor market are main inputs of this system.
i) Organizational Plan: The organization’s plan and strategic needs for the future determine resource.Various components of the organizational plan such as production plan, marketing plan, sales plan, plan for expansion and diversification are used as the basis for developing human resources planning. This plan helps in estimating the demand for human resources that will be required for future.
ii) HRM Policies: HRM policies are the general statement that serves to guide decision making. They direct the action of HR activities towards the achievement of its goals.
iii) HR plans: HR plans help to keep the organization supplied with the right people when they are needed. It determines the human resources required by the organization. It forecast the demand for HR by comparing the present supply of HR with organization’s projected demand for HR.
iv) Job Analysis: Job analysis is the process of determining the tasks that make up the job and the skill, abilities, and responsibilities that are required for an individual to successfully accomplish the job. This specifies the job requirement.
v) Labour Market: Labour market serves as the external sources of supply of HR that are required for the organization.
2) Processing : It is the system of converting inputs into desired outputs.Processing of HRM system consist of following factors :
i)Acquisition: It ensures that right people will be in right place at the right time so that organization can achieve its overall goal. It consists of recruitment selection and socialization.
ii)Development : Another basic function of human resource management is development.Human resource management is intended to improve the performance of employees. Training, development, and career development function consist of development function of HRM.
iii) Utilization : Utilization is one of the most important functions of human resource management. It ensures willingness of employees for increasing productivity .
Iv)Maintenance Function : The final function of Human Resource Management is the maintenance of human resource. It is concerned with providing those working condition that employee believe are necessary in order to maintain their commitment to the organization. It is also an important function or component of HRM.This system provides a conceptual structure for integrating the various components of the HRM system.
3) Outputs: Outputs of HRM Consists following factors:
i) Quality of Work life(QWL) :Quality of work life refers to the standard of the relationship between employee and also the total operating setting of the organization. It concentrates on creating an operating setting that is semiconducting to the satisfaction of worker needs. QWL includes autonomy, recognition, belonging and external rewards. It helps to increase productivity, organizational effectiveness, and worker satisfaction.
ii) Productivity: Productivity is the relationship between real inputs and real outputs. It measures how well resources are measured to combine and used to turn out a result desired by management. Higher productivity ensures the lesser cost of production, higher production and most effective utilization of accessible resources. This leads to the satisfaction of each section of society, consumer, employees, and employers.
iii) Competitive Advantages: Globalization and liberalization of business are bound to intensify competition. In such situation organization must obtain the competitive advantage to survive and succeed. Competitive advantages are obtained through the efficient and creative workforce. Continuous improvement and innovation are two essential objects to achieve and sustain competitive advantages.
iv) Readiness for change:Change is the part of organizational life. In fact, the survival, growth, and profitability of an organization depends on its ability to change its structure and process in response to changing environment. Training is important to reduce the fair associated with change. The management must create a work atmosphere that views change as a positive and progressive endeavor.
4) Feedback : Another important component of HRM system is Feedback.It provides information to improve inputs and processes and to make effective outputs of HRM system. The feedback mechanism is very essential in HRM system .
5) Environment : It affects HRM system. It may be opportunity or threats to the organization.There are several kinds of environment factor.They are divided into two categories.
i) Internal environment factor: It consists of organizational goals, policies, structure, reward system, organizational culture, stakeholders etc.
ii)External environment factor : It consists of politics/laws , economic forces, socio-cultural forces, technological forces etc.
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a. Human Resource Planning
a. Training and development
b. Career development
c. Management Development
b) Performance appraisal
c) Compensation Management
a) Labour Relations
b) Employee Discipline
c) Employee Welfare
i) Organizational Plan
ii) HRM Policies
iii) HR plans
iv) Job Analysis
v) Labour Market
i) The quality of Work life(QWL)
iii) Competitive Advantages
iv) Readiness for change
i) Internal environment factor
ii)External environment factor