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Personnel Management was considered a staff function, i.e. keeping records of attendance and productivity of workers and administration of wages Later on, ‘welfare of staff and ‘industrial relations’ etc. were added to the functions of a personnel department of an organization. Thus personnel management came to be known as hiring, training, compensation and welfare of employees.
In modern times, Human Resource Management treats labour as social capital or resource rather than a variable cost i.e. it is proactive rather than reactive and it has now acquired a strategic focus. Now human resources or the people at work are considered as vital resource of any organization and their management, as a process concerned basically with the management of people. Thus Human Resource Management is the reincarnation of Personnel Management. Some eminent academicians and professional managers have defined the human resource management as follows:
Edwin B. Flippo, “Personnel Management is the planning, organizing directing, controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.”
Milkovich and Boudreau, “a series of integrated decisions that form the employment relationship, their quality contributes to the ability of the organization and the employees to achieve their objectives.”
Dale Yoder, “Personnel Management is that phase of management which deals with the effective control, and use of manpower as distinguished from other sources of power. The methods, tools and techniques designed and utilised to secure the enthusiastic participation of labour to represent the subject matter for study in Personnel Administration.
E.F.L. Brech, “Personnel Management is that part of the management process which is primarily concerned with the human constituents of an organisation.”
Indian Institute of Personnel Management, Calcutta, “Personnel Management is that part of management functions which is primarily concerned with human relationships in an organisation, its objective is the maintenance of those relations which enable all those engaged in the undertaking to make their maximum contribution to the effective working of that undertaking.
On the basis of above definitions, it may be concluded that Human Resource Management or Personnel Management, as hitherto called, is that part of management which is related with human resources of an enterprise. The object of Human Resource Management is to recruit, develop and to retain the employees in the organisation. It includes planning, organising, directing and controlling of the performance of employees and workers in the organisation.
Following are the important characteristics of Human Resource Management:
1. The part of General Management: Human Resource Management is a part of General Management because Human Resource Management is the management of workers and employees of an organisation and these workers and employees are a part of the whole organisation.
2. Development of Human Resources: Human Resource Management is the development of human resources working in an organisation. In this part of management, efforts are made to provide best education and training facilities to the workers.
3. Harmonious Relations between Human and other Resources of the Organisation: Human Resource Management establishes harmonious relations between human and other resources of an organisation. It stresses upon the establishment of sweet relations between labour and capital on one hand and between labour and management on the other.
4. Uses of Principles of General Management: Human Resource Management is based upon the same principles that are used in General Management.
5. It deals with Labour Unions also: Human Resource Management deals with labour unions also. Labour Unions help in preventing industrial disputes, strikes, and lock-outs etc. These unions help in solving the labour problems also.
6. Departmental Responsibility: A very important characteristic of Human Resource Management is that it has, a particular Departmental Responsibility. It is responsible only for the matters related with employees.
Main objective of Human Resource Management is to manage the workers and employees of an industrial enterprise in the best possible manner. In the process. of Human Resource Management, the employees are recruited, trained and developed so that they may contribute to achieve the objectives of the enterprise. Following are the important objectives of Human Resource Management in an industrial enterprise :
1. To Establish harmonious relations between labour and capital: The very first objective of Human Resource Management is to establish harmonious and friendly relations between labour and capital in the enterprise. The philosophy of modern management is that the contribution of labour is not less important than that of the capital. Managers realise that they cannot make the best use of capital without co-operation of the labour. Therefore, it stresses upon the development of trust and faith between employees and employers.
2. Development of employees: Second important object of Human Resource Management is the development of employees working in an enterprise. Employees. are provided the facilities of training and education so that the efficiency and ability of the employees may be increased.
3. To Increase the welfare of human resources: Another very important object of Human Resource Management is to increase the welfare of workers and employees engaged in an enterprise. Best working conditions should be provided and many other welfare programmes must be launched so that employees may get the facilities of health and recreation.
4. To Arrange for effective communication with employees: Another very important object of Human Resource Management is to maintain effective communication with employees so that the orders and directions of management may be passed to the employees and the problems and grievances of workers may also be communicated to the management.
5. Other Objects: Other objects of Human Resource Management are:
a. To arrange for the sufficient number of efficient, capable and expressed employees in all the departments and at all the levels of management.
b. To increase the morale of employees.
c. To motivate the employees so that the productivity of enterprise may be increased.
d. To provide best working conditions to the employees so that they may complete their work in most efficient manner.
Main object of an industrial enterprise is to get the maximum possible production of best possible quality at minimum possible price. This objective can be achieved only when all the employees of the enterprise co-operate in desired directions. Human Resource Management is of the highest importance in this regard because this part of management is related with the recruitment, training, remunerating and motivating the employees. There is significant difference in the opinion of scholars regarding nature of Human Resource Management. Some of the scholars feel that it is a job and a department responsibility, while some other scholars recognise it as a profession. Many other scholars have described it as universal activity of management. Important views about the nature of Human Resource Management may be summarised as follows:
1. Human Resource Management is a departmental responsibility and a staff function: Human Resource Management is departmental responsibility. It is responsible for recruitment of employees, providing training to them, placement of employees on work, to fix their remuneration, to determine the code of conduct for them and to motivate them to work more and more. Human Resource Management is also considered as a staff function. All the departments of enterprise such as Production Department, Marketing Department, Finance Department, Accounts Department etc. all require employees. Human Resource Management is responsible for recruitment of suitable employees for all the departments. Thus, it is clear that the nature of Human Resource Management is related with all the departments of the enterprise.
2. Human Resource Management is a profession: According to modern philosophy of management, Human Resource Management is a profession. Professional persons are the persons who have complete and deep knowledge of their field and adopt a scientific approach. This way, a Human Resource Manager is professional because he has complete and detailed knowledge of Human Resource Management. He knows how to recruit the employees, how to provide the training to them, how to place them on their jobs, how to motivate them to work more and how to control their activities. Thus, Human Resource Management is a profession.
3. The utility of Human Resource Management is universal: Human Resource Management is useful in all the fields of life such as industrial, social, political and religious. In every field of life, support of man-power is essential and no work can be done without manpower, as a train cannot move without engine. Human Resource department is responsible for planning, organisation, control, direction, co-ordination and control of man-power. Thus, utility of Human Resource Management is universal.
At the initial stage of development, the scope of Human Resource Management was very limited. With the growth and development of business and industrial enterprises, the activities of these enterprises became more and more complicated and diversified. With this, the scope of Human Resource Management also continued to increase.
Indian Institute of Personnel Management (I.I.P.M.) has described the scope of Human Resource Management as follows:
1. To determine personnel policies.
2. To determine the methods of recruitment, training, placement and promotion etc.
3. To determine the wage system and the conditions of employment.
4. To provide good working conditions and facilities to the workers and employees.
5. To establish harmonious relations between labour and capital.
Strauss and Sayels have described the following functions in the scope of Human Resource Management :
1. Recruitment selection and placement of employees.
2. Job analysis, job description and job evaluation.
3. Scheme of compensation payable to the employees.
4. Maintenance of Personnel Accounts.
5. Personnel welfare programmes.
6. Specialised services, such as safety, supervision and control etc.
7. Programmes of workers education and training.
8. Labour relations.
9. Public relations.
10. Personnel planning and evaluation.
1. Recruitment, Selection and Job Determination for the employees: The workers are motivated to apply for jobs in the organisation with the help of advertisement and other measures. The best workers and employees are selected through written test and interview. After selecting them, they are placed on a suitable job.
2. To adopt suitable wage system: An important function of Human Resource Management is to adopt a suitable wage system to remunerate employees so that they may be motivated to extend their full co-operation in the achievement of objectives of the organisation. The wage system must be of the nature that may motivate them to work more and more.
3. Education and training of employees:Another very important function of Human Resource Management is to provide the best possible facilities of education and training to the employees. The programmes of education and training may be started for the benefit of both the old and new employees. During training period employees are paid an allowance at a fixed rate. After completing training, they are placed on a job according to their ability.
4. Job Analysis, Job Distribution and Job Evaluation: All the works to be done in business and industrial enterprise are critically analysed so that it may be determined that which job should be assigned to an individual employee.
5. Labour Welfare activities: Human Resource Management has to perform many activities for the sake of the labour welfare. It includes health and safety programmes, recreation facilities and educational activities etc. These activities increase efficiency and ability of employees.
6. Personnel Accounts: Human Resource Management has to maintain all the relevant accounts regarding employees of the organisation, such as the number of workers, absenteeism, work one by employees, wage roll etc.
7. Public Relations: Human Resource Management has to perform some activities for public relations also. These activities include maintaining contacts with social welfare organisations, to provide necessary information about the organisation, to publish magazines etc.
8. Personnel Planning and Evaluation: It includes following activities also,
a. to determine personnel policies and programmes.
b. to evaluate these policies and programmes to conduct personnel audit etc.
Human Resource Management is the most important field of management. The importance of Human Resource Management has increased in modern times with the growth and development of business and industrial activities. Problems of Human Resource Management have increased immensely. In a big industrial and business enterprise, thousands of workers work together. In such a unit, it is not possible for a General Manager to look after the interests of each individual. Therefore, this responsibility is entrusted to a separate department under the charge of a Human Resource Manager. Human Resource Manager is responsible for recruiting, developing and maintaining the labour force in an organisation. All the aspects of human relations are covered in the scope of Human Resource Management. Human relations problems are multifarious and for this reason, different authors have described different functions of Human Resource Management. Edwin B. Flippo has divided the functions of Human Resource Management into two parts:
Managerial functions and Co-operative functions: Managerial functions include the primary functions of General Management, such as planning, organising, directing and controlling. Co-operative functions are the functions, which are of routine nature of Human Resource Management.
E.F.L. Brech has divided the functions of Human Resource Management into four parts:
1. To formulate the policies.
2. To advise
3. Welfare activities and
4. Controlling activities.
On the basis of above discussion, it can be concluded that the Functions of Human Resource Management can be divided into three parts:
1. Managerial functions,
2. Staff functions and
3. Line function.
These are the functions, which help the management in discharging its primary duties. Main functions under this category are as follows:
a. Planning: Human Resource Management has to prepare the plans regarding the workers and employees required to the organisation. The plans are prepared as to how many employees and of which caliber are required.
b. Organising: Human Resource Management is responsible for organising the human resources in the best possible manner. It is responsible for establishing harmonious relationship between various factors of production so that the employees may prove helpful in achieving the objectives of the organisation.
c. Directing: It involves motivation and leadership. In the absence of effective direction, the organisation cannot achieve the desired results. Direction includes issuing instructions to the workers, developing communication network and integrating workers.
d. Controlling: Human Resource Management is responsible for controlling and regulating the activities of Personnel Department also. It includes the determination of targets, analyzing actual performance, comparing the results with pre-determined targets and correcting deviations, if any.
e. Motivating: Human Resource Management motivates the employees of the organisation by providing monetary and non-monetary incentives. This enables the management to get the maximum advantage out of their capability and efficiency.
f. Co-ordinating: Human Resource Management is responsible for establishing effective co-ordination between labour and capital resources of the enterprise.
These are the functions, which help the management in discharging its duties and primary functions properly in indirect manner. These functions do not contribute in the accomplishment of organisational objectives directly. Main functions under this category are as follows:
a. Policy determination and formation: An important function of Human Resource Management is to determine the personnel policies and to advise Top Management in the formation of policies and in the renewal of old policies.
b. Advise: Human Resource Management has to advise all the departments of the enterprise regarding the selection, placement, transfer, promotion and remuneration of employees. This department has also to deal with the labour problems of various departments.
c. Service: Human Resource Department renders the valuable services to all other departments of the enterprise by making the selection of employees required for these departments and by providing proper training to them.
d. Control: Human Resource Management is liable to control the affairs of enterprise regarding employees. It has to see whether the policies, rules and strategies regarding employees are being implemented in all the departments or not.
Line functions are the functions, which directly help the management in discharging its duties. These functions contribute in the accomplishment of organisational objectives in direct manner. Main functions under this category are as follows:
a. Planning of labour: Human Resource Management plans requirements of labour force of the enterprise and estimates the number of workers and employees that may be required by the enterprise in the future. It also determines the abilities of the employees to be appointed.
b. Security of workers: Human Resource Management is responsible for the security of workers of the enterprise. For it, provisions of security of workers under Factory Act are implemented.
c. Welfare activities: Human Resource Management provides the welfare facilities to the workers. Various schemes are prepared and implemented for the welfare of workers such as refreshment house, club, schemes of savings, facilities of recreation, facilities of residence, facilities of conveyance, scheme of pension after retirement etc.
d. Recruitment of labour : Main functions of Human Resource Management is to recruit the labour force for the enterprise. It includes the following functions:
(i) To study the source of supply of labour
(ii) To collect the data regarding the
needs of job and the rates of wages etc.;
(iii) To invite applications;
(iv) To hold the written tests;
(v) To hold the interviews;
(vi) Checking of reference;
(vii) Appointment of workers and employees;
(viii) To estimate present and future needs of employees.
It is not sufficient to recruit the best employees, Proper development of employees is equally important. For this proper training must be given to the employees and workers.
It includes the following functions:
a. To prepare the rules regarding training of new workers;
b. To arrange for the training;
c. To supervise the arrangement of training;
d. To train the workers regarding the policies of enterprise.
Administrative functions of Human Resource Department include the dealing with the problems, grievance and feelings of workers. It includes the discussions with the labour union and to arrive at different compromises.
These functions include the following functions:
a. Evaluation of work;
b. To prepare and implement the programme;
c. Analysis of job;
d. To hold the periodical surveys regarding wages and salaries;
e. Amendment in levels of remuneration.
8. Organisation chart: This function includes the preparation and implementation of organisation chart relating to Human Resource Department.
9. Communication: Communication is an important function of Human Resource Management. It includes to arrange for the effective communication between workers and management. The orders and directions of management are communicated to the workers so that they may implement these orders and directions. On the other hand, the suggestions, feelings, opinions and problems of workers are communicated to the management.
10. Personnel Research: Personnel research is becoming an important function of (Human Resource Management these days because the personnel problems are becoming more and more complicated. This function includes the study, analysis, interpretation and research on the behaviour of workers, the behaviour of a group of workers, the designing of working organisation and employees motivation etc.
11. Other functions: In addition to the above functions, Human Resource Management has to perform some other functions also as under:
a. Determination of the work to be allocated to the workers and to allocate it to them.
b. To advise the management in determining the principles of promotion.
c. To maintain necessary report so that the principles of personnel management may be implemented effectively
d. To help the management in the implementation of personnel policies.
e. To remove the possibilities of termination from services as far as possible
f. Determination of the policy of termination and to take the necessary action at the required time.
g. To communicate the personnel policies to the supervision and workers.
h. To scrutinise all the voluntary retirement.
i. To take necessary actions.
Principles of the Human Resource Management are the fundamental rules, which guide the executives in discharging their responsibilities properly. Thus, the principles of Human Resource Management are the fundamental-rules and directions, which guide personnel executives in preparing, directing, administrating and controlling the personnel policies. As Human Resource Management is the branch of General Management, therefore, the Principles of General Management are the Principles of Human Resource Management also. Different authorities have presented principles of Human Resource Management as follows:
1. Principle of Maximum Individual Development: This principle emphasises upon the maximum development of employees. It emphasises upon the proper training of employees. This principle is based on the assumption that the object of getting maximum production at minimum cost of an enterprise can be successful only if its workers and employees are capable enough.
2. Principle of scientific selection: The essence of this principle is “the right job for the right person.” The object of this principle is to make scientific selection of employees so that best possible employees may be selected.
3. Principle of dignity of labour: This principle is a very important principle to be followed these days. The ideal of this principle is the dignity of work and workers. This principle is based on the assumption that a worker is a man and not machine. He can make his best efforts only if he is properly rewarded and regarded.
4. Principle of high moral: It includes the improvement in working conditions, the improvement in the abilities of the workers and the proper arrangement of training and security of workers. This principle aims at raising the moral of workers.
5. Principle of team spirit: This principle includes all efforts which may develop thinking of workers to co-operate with others and to work with team spirit.This principle is based on the assumption that the combined efforts of workers may get the best results.
6. Principle of effective communication: This principle emphasises that there must be effective communication in the enterprise. Lack of effective communication may cause various problems to the enterprise. The policies, programmes and objects of the management must be properly communicated to the workers and the problems and feeling of workers must be properly communicated to the management.
7. Principle of participation in management: This principle emphasises that workers must participate in management so that they may contribute their best. efforts in the accomplishment of pre-determined objectives of the enterprise.
8. Principle of contribution national prosperity: This principle develops the feeling among the workers of the enterprise that the success of an enterprise contributes to the national prosperity. Therefore, it encourages them to contribute their best efforts for the success of enterprise.
9. Principle of fair reward: According to this principle, all the employees must be rewarded on a fair and justified base. The Wage System must be adopted in the manner that it may satisfy the workers and they may be motivated to do more and more work.
10. Principle of effective utilisation of Human Resources: According to this principle, man-power of the enterprise must be fully utilised so that the cost of labour may be minimum. To achieve this object, it is essential that the employees must be asked to do the work that they can do. Proper training facilities should be provided to the employees so that the ability and efficiency of workers may be increased.
11. Principle of motivation: The employees of the enterprise must be motivated. They must be inspired to take more interest in their work.
Human Resource Management is considered to be the most important part of management these days. Commenting upon the importance of human resource management, Pigours and Myres have rightly stated, “While human resources available to management in an organisation are only one part of resources which must be co-ordinated, it is through combined efforts of people that monetary and material resources are utilised for organisational objectives. Without human efforts, the organisations can never accomplish their objectives. Consequently, the organisation and motivation of human efforts-the Human Resource Function of Management is a central responsibility of management everywhere”.
The importance of Human Resource Management in modern business and industrial enterprise can be explained as follows:
1. It facilitates the rapid economic development of a country.
2. It encourages the tendency of socialism in the modern society.
3. It facilitates in the earliest possible solution of the problems and complications of a business and industrial enterprise.
4. It helps in the fulfilment of objectives of labour unions.
5. It provides to the recognition to the workers of the enterprise, which is necessary for the success of enterprise.
6. Employees and workers feel themselves a part of the enterprise because of Human Resource Management.
7. It develops the feeling of unity between labour and capital.
8. It establishes sweet human relations in the enterprise.
9. It enables the best possible utilisation of labour and material resources of the enterprise.
According to Richard P. Calhon, a Human Resource Manager must have following qualifications and qualities:
1. Mental ability: A Human Resource Manager must have the mental ability of very high standard. He must be able to understand different types of people. He must possess immense tact, practical mind and cool temperament.
2. Personality: The Human Resource Manager must possess attractive and effective personality. He must be trained in behavioural science so that he may predict and control the human behaviour. He must be capable enough in getting the work done by others.
3. Character: A Human Resource Manager must be of high character. He must have the qualities of courage and boldness. He must be aware of social responsibilities.
4. Operational ability: A Human Resource Manager must be a good leader and organiser. He must be able in motivating the workers. He must have the ability of analyzing problems from every angle.
5. Communication scheme: A Human Resource Manager is required to address several verbal and written communication to the employees working under his supervision. A Personnel Manager must be able to communicate his ideas and opinions effectively and clearly so that all the employees may understand and implement the message.
6. Freedom from bias: A Human Resource Manager must be free from biased attitude. He should not take a judgement on the basis of fear or favour. He must consider all the matters and alternatives on the basis of their merit. He should be known for his honesty, integrity, character, justice and fair play.
7. Foresightedness: A Human Resource Manager must have foresightedness also. He must be able in predicting the problems of business in advance. He must be able in evaluating the merits and demerits of all the alternatives.
Thus, it can be said that a good Human Resource Manager is a blend of many. talents. He must be a psychologist, negotiator, planner, organiser, supervisor, leader. advisor and controller.
Human Resource Manager is the chief officer of his department. His responsibilities very wide. He advises to the top management in respect of personnel matters and helps in the formulation of the personnel policies. He determines important personnel functions such as the development of sources of recruitment, selection and placement; transfer and promotion; maintenance of personnel records etc. George Henon has described the following responsibilities of a Human Resource Manager.
1. Responsibilities towards human resource system: A Human Resource Manager is responsible towards personnel system of the enterprise in which he is working. He is to do the following works in this regard:
a. To recruit the able personnel for different posts.
b. To select the best and most efficient personnel out of the available personnel.
c. To provide training facilities to the employees.
d. To determine the wages and salaries of employees according to their ability and work.
2. Responsibilities towards financial resources: A Human Resource Manager is responsible for the following:
a. Expenses on education and training programmes.
b. Expenses on medical department.
c. Expenses on security measures.
d. Expenses on advertisement and sales promotion.
e. Expenses on labour-employer relations.
f. Expenses on books, magazines and library etc.
g. Expenses on Vehicle.
h. Expenses on transportation.
3. Responsibilities towards physical resources: Human Resource Manager is responsible for the proper and economical use of physical resources employed in the enterprise. He must assure that all the available physical resources are being utilised most efficiently and economically.
4. Responsibilities as an advisor: From this point of view the responsibilities of a Human Resource Manager are:
a. To formulate personnel policies.
b. Arrange for the implementation of these policies.
c. If there is any problem in the implementation of these policies he must suggest the ways to overcome such problems.
5. Responsibilities toward control and expenditure: From this point of view a Human Resource Manager is responsible for:
a. Division of labour.
b. Maximum utilisation of efficiency of workers.
c. To have effective control over labour. wastages.
d. To maintain minimum machine hour rate and labour hour rate.
6. Responsibilities towards personnel records: A Human Resource Manager is also responsible for the maintenance of proper records of wages, overtime, bonus, absenteeism etc.
7. Other Responsibilities: A Human Resource Manager is responsible for the following also:
a. To conduct personnel research.
b. To arrange for the effective communication.
c. To provide the best possible facilities to the workers.
d. To maintain sound and harmonious relations between labour and capital.
e. To evaluate various programmes of Personnel Administration.
f. To execute personnel or Human Resource policies, systems and progress.
g. To draft a plan for future requirements of man-power.
h. To work as consultant at all the levels of management to solve their labour problems.
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