DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 1 Nature and Scope of Human Resource Management

DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 1 Nature and Scope of Human Resource Management

Question 1.
Define Human Resource Management and explain its nature.
“Human Resource Management is a basic management function to all levels and types of management.” Discuss.
Definitions Of Human Resource Management :
The success or failure of an organisation depends not on materials, machines and equipment but on the efficiency of the personnel who are to put in their best efforts for ar&efficient performance at their job. In the words, of Deyner, “Materials, machines, and even offices themselves can be replaced and any risks involved can be insured against but a good loyal team of workers cannot be replaced so easily. ” To achieve the basic objective of an organisation, efficient and effective use of people at work is essential. Human resource management is the management of people at work. Human Resource/ Personnel management is a function of the general management with the objective of ensuring that every employee makes his fullest contribution to the achievement of the objectives of business.

Human Resource/Personnel management may be defined as the art of procuring, developing and maintaining competent workforce to achieve organisational goals efficiently. Following are the leading definitions of personnel management/Human Resource Management.

According to Daje Yodev, “Personnel management effectively describles the processes of planning and directing the application, development and utilisation of human resources in employment.”

Professor Michael J. Jucius defines, ‘Personnel Management’ is ‘ ‘the field of management which has to do with planning, organising and controlling various operative functions of procuring, developing, maintaining and utilising a labour force, such that the (a) objectives for which the company is established are attained economically and effectively; (b) objective of all levels of personnel are served to the highest possible degree, and (c) objectives of the community are duly considered and served.”

In the words of Ed win B. Flippo, “The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organisation for the purpose of contributing towards the accomplishment of that organisation’s major goals or objectives. Therefore, personnel management is planning, organising, directing and controlling of performance of those operative functions. ”

Prof. E.F.L. Brech defined the term ‘Personnnel Management’ in the following words- “Personnel Management is that part of management progress which is primarily concerned with the human constitution of an organisation. ”

The definition of personnel management, as given by the U.K. Institution of Personnel Management and which has also been adopted by the Indian Institution of Personnel Management runs as follows: “Personnel management is that part of management function which is primarily concerned with the human relationship within the organisation. Its objective is the maintenance of those relationship on a basis which by consideration of the well being of the individual, enables all those engaged in the undertaking to make their maximum, contribution to the effective working of that undertaking.”

Thomas G. Spates defines the term in the following words: “Personnel, Administration is a code of the ways of organising and treating individuals 4 at work, so that they will get the greatest possible realisation of their intrinsic I abilities, thus attaining maximum efficiency of themselves and their group, and thereby giving to the enterprise of which they are a part, its determining Vv competitive advantage and its optimum results.”

It is clear from the above definitions that personnel or Human Resource management is concerned with a careful handling of relationship among the individuals at work.

Nature Or Characteristics Of Human Resource Management :

From the various definitions of Human Resource management, we may list following features of Human Resource management:

1. A Specialised branch of General Management—Human Resource ‘management is a part of the general management and therefore all the principles of management are applicable to this also. Human’Resource management is a central and pervasive subsystem of all organisations.

2. Management of Human Resources — Human resource management is management of personnel i.e., human resources. It includes the functions of employment, training development, welfare and compensation. These functions are usually performed by the Human resource Department in consultation with the officials of other departments.

3. A Pervasive Function — Human resource management is a pervasive function of management. It is performed by all managers at various levels in the organisation. As Fredrick R. Kappel observed, “personnel management is not something you turn over a personnel department staff. Since all decisions in an organisation are made by human beings and are put into operation by human beings, all activities have a human aspect and therefore a personnel aspect.” Human resource management is not a function of Human resource department alone; it is a function of all departments of the organisation.

4. Employees as individual and group — Human resource management is concerned with employees both as individuals and also as a group. It establishes relationship between (a) employer and employees and also between
(b) employees and employees. The term employees includes all types of employees whether at lower level or top level e.g. workmen, craftsmen, operators (lower level), departmental managers (middle level) or general manager or chief executive (top level) etc.

5. Development of employees — Human resource management is concerned with helping employees to develop their potential abilities fully. It considers the development of individuals at work, as an indiviudal and as a member of the group. Personnel policies, are designed in the manner so that intrinsic abilities of the employees may be developed to the best use of the organisation.

6. A technique of thinking — Human resource management is an approach, a point of view, a technique of thinking and a philosophy of management. The whole philosophy of human resource management is that labour is a human being, an humanly treatment should be given to them.

7. Based on principles — Management of work force is a difficult job. Here, the subject matter consists of human beings whose attitudes and behaviour do not conform to any set pattern. Each individual worker has his own attitudes, beliefs, and temperament make up. Personnel/human resource management is based on certain well-defined principles which have been evolved after a great deal of research and experimentation.

8. A never-ending process — Human resource management as a function needs to be performed on a continuous basis. It involves the delicate function of management of human relations. Moreover, it is to be continuously attended to and nurtured like a delicate plant.

9. Science as well as an Art. Human Resource Management (HRM) is a science as it contains an organised body of knowledge consisting of principles and techniques. It is also an art because it involves application of theoretical knowledge into practice to solve the problems of human resources. In fact handling people at work is one of the most creative arts. ‘

10. Staff Function. HRM is a staff function or its function is advisory in nature. It contributes to the success and growth of the organisation by advising the operating departments on personnel matters.

Question 2.
What are the objectives that human resource management seeks to achieve in an organisation ?
“The objective of personnel management, personnel administration or industrial relations in an organisation is to attain maximum individual development, desirable working relationship between employers and employees and effective moulding of human resources as contrasted with physical resources.”—Explain
Objectives Of Human Resource Management:
The main objectives of personnel/human resource management is the accomplishment of the goals of the enterprise. According to Indian Institute of Personnel management, “Personnel/human resource management aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other. It seeks to bring together and develop into an effective organisation. The men and women who make up an enterprise enabling each to make his own best contribution to its success both as an individual and as a member of a working group. It seeks to provide fair terms and conditions of employment and satisfying work for all those employed.” The objectives of personnel management may be summarised as below.

1. Social objectives — An enterprise is a part of the society in which it functions. As such human resource management cannot ignore the need to work for the attainment.of social objectives. Firstly, it should aim at maximising employment opportunities. This objective assumes greater importance in the context of a country faced with the problem of unemployment. Secondly, the jobs to be created should be such that they afford maximum material and mental satisfaction to the people who perform them. Thirdly, it should be ensured that the jobs are so planned that they result in maximum productivity per worker with a minimum of wastage of effort. Lastly, it is the responsibility e, of human resource management to promote healthy and mutually satisfying human relations leading to harmony and cooperative endeavour.

2. Personnel Objectives — Good human resource management implies maximum material and mental satisfaction to each individual employee. This can be done by providing him the following:

  • Firstly, worker should be provided with adequate remuneration.
  • Secondly, there should be job-security.
  • Thirdly, the worker should be given facilities for proper training and development.
  • Fourthly, the worker should be provided with increased job satisfaction.
  • Fifthly, the workers should be provided the opportunities for advancement.
  • Sixthly, the workers should also be provided with proper work environment – a clean and orderly place equipped with all necessary tools and instruments.
  • Lastly, a worker should be treated with dignity.

3. Enterprise Objectives- Pursuit of social and individual objectives should hot minimise the importance of enterprise objectives. As a matter of fact, these objectives are closely inter-linked. Thus, to subserve the enterprise objectives, Human resource management should aim at recruiting and retaining competent, loyal and mentally well-adjusted team of workers.

The object of Human resource management should ensure that the , various posts in the enterprise are manned by highly competent and contented workers. Further this should be done at the lowest costs possible. It should also seek to create a sense of belonging among the employees so that when the occasion demands, they are willing to sacrifice their individual interests v for the sake of group interests.

4. Union Objectives—Human resource management has also to deal with labour unions and often there are more than one union in an enterprise. As such it should display fact and consideration in deciding the questions relating to recognition of representative unions, formulation of personnel policies in consultation with them, and creation of an atmosphere where they are obliged to practice self-discipline and cooperate with the management.

DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 1 Nature and Scope of Human Resource Management 1

Question 3.
Discuss the scope of Human Resource Management.
Scope Of Human Resource Management :
Human Resource management may be taken to mean the task of managing the personnel of an organisation. The subject matter of human resource management is man and therefore all such functions, duties and responsibilities and powers are included in the scope of personnel management which help the management in getting the work done with the help of people. In the early stage of industrialisation, the scope of human resource management was very limited because labour was considered to be the one of the factors of production like land and machinery. But with the advent of science of management scope of human resource management was also increased. Change in the attitude of labour and the management to each other and the development in industrial field have contributed to a great extent in widening the scope of human resource management. The scope of human resource management is extremely wide.

It may be clearly pointed out that the scope of human resource management varies from organisation to organisation and from country to country. Different authorities On management include different functions in the scope of personnel management. We can summarise them as follows:

1. Procurement- Procurement includes recruitment and selection of right kinds of personnel to occupy the various posts in the organisation. It includes: (a) determination of manpower requirements; (b) job analysis;
(c) nature and scope of recruitment; (d) employee selection; and (e) placement of employees.

2. Training and development is a must to prepare the worker gaining proficiency in the methods and techniques of work assigned to them. Efforts may be made to involve the employees in actual management situations., Employees participation in committees and board meetings may also contribute toward their development.

3. Job Analysis and Job Description — Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination.

4. Remuneration — Provision of adequate remuneration for the work done by an employee involves job analysis and job evaluation. It includes determining wage rates, incentive systems of wage payment, merit-rating and performance appraisal,

5. Personnel Records — The function of personnel records includes collection of bio-data of all employees pertaining to their work e.g., training job performance, aptitude payment records etc.

6. Welfare and Industrial Relations — It includes health and safety programme, sanitary facilities, recreational facilities, group insurance employee associations etc.

The Indian Institute of Personnel Management (IIPM) has described the scope of Human Resource Management into the following three aspects—

1. Labour or Personnel Aspect. It is concerned with the personnel aspect of HRM. Functions associated this aspect include activities concerned with. manpower planning, recruitment, selection, placement, induction promotion, transfer, demotion, separation, layoff, retrenchment, training and development, wage and salary administration, Incentive etc.

2. Welfare Aspect. Welfare aspect covers activities concerning with working conditions and amenities such as canteens, creches, rest rooms, lunch rooms, housing, transport^ educations, medical help, health, safety, recreation and cultural facilities etc.

3. Industrial Relations Aspect. This aspect is concerned with the company’s relations with the employees as a group and include union- management relations, joint consultations, negotiations, collective bargaining, grievance handling, disciplinary action, settlement of industrial disputes etc.

Question 4.
What are the various functions of human resource management?
“Personnel management involves two categories of functions, managerial and operative”. Describe these functions in detail.
Functions Of Human Resource Management
Human resource management involves two categories of functions:
(A) Managerial
(B) Operative

(A) Managerial Functions
General management and personnel management are one and the same. Basic managerial functions—planning, organising, directing and controlling—are common to all managers including personnel or human resource managers and are performed by all of them. Following are the managerial functions of human resource management:

1. Planning — The planning functions of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programmes, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them. *

2. Organisation — Under organisation, the human resource manager has to organise the operative functions by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organisational objectives. In this way a personnel manager performs following functions: (a) Preparation of task force; (b) allocation of work to individuals; (c) integration of the efforts of the task force; (d) coordination of work of individual with that of the department.

3. Directing — Directing is concerned with initiation of organised action and stimulating the people to work. The personnel manager directs the activities of people of the organisation to get its functions performed properly. A personnel manager guides and motivates the staff of the organisation to follow the path laid down in advance.

4. Controlling — Controlling is concerned with the regulation of the activities in accordance with the plans. Controlling complete the managerial cycle and leads back to planning. Through direct observation, direct supervision, as well as reports, records and audit, personnel manager assures himself that the activities are being carried out in accordance with the plans. Controlling also helps the personnel manager to evaluate the performance of the human resource department in doing various operative functions.

(B) Operative Functions
Operative functions are those functions which are entrusted to the human resource department. Such functions are of the routine nature. These are concerned with procurement, development, compensation, integration and maintenance of the personnel of the organisation. Following are the important operative functions of personnel or human resource department:

1. Procurement of Personnel — It is the first operative function of ‘ Human Resource Management. It is concerned with the number of persons necessary to accomplish organisational goals. It includes following subfunctions:

  • determination of man-power requirements;
  • job-analysis and job-grading;
  • determining the nature and sources of recruitment;
  • selection of employees;
  • placement and induction.

2. Development and Training of Personnel — After the placement of employees on various jobs the next function of the human resource management is to give them training and to develop them to get their work efficiently. The personnel department devises and runs the appropriate training programme for developing the necessary skills among the personnel.

3. Remuneration — Another function of human resource management is concerned with the determination of wages and salaries policy and levels. The personnel or human resource manager has to consider various factors while fixing the remuneration viz., basic needs, requirements of the jobs, legal provisions, financial capacity of the firm, wage-level of competitors, performance rating etc.

4. Integration or Human Relations — The maintenance and promotion of harmonious relations between employees working in different departments, and between the employees and management is a function of personnel or human resource department. The personnel department has to ensure a reasonable reconciliation of the interest of the personnel with that of ‘ organisation. The personnel manager must provide an efficient system of communication. He should be in touch with the grievances of the people at work and try to remove them. In all circumstances, he should try to maintain proper discipline in the organisation.

5. Maintenance of Personnel — Maintenance of personnel means to keep the workers engaged on the work with good health and with full loyalty to their jobs and to the organisation. This functions involves provisions of better working conditions and labour welfare activities such as medical benefits, housing facilities, canteens, recreational facilities, rest rooms etc.

Question 5.
What is the importance of human resource management in industrial undertaking?
Examine carefully the place of human resource management in business organisation.
Importances Of Human Resource Management :
During the past two centuries because of the quick industrial development, a new industrial world with new industrial culture has emerged. According to this, human power has no place to importance but physical resources have been given an important place and hence labour relations have taken a new turn. Everyday new labour problems are raised and the management ‘ has to find out their solution.

Human Resource Management has a place of great importance. According to Peter F. Drucker, “The proper or improper use of the different factors of production depend on the wishes of the human v resources. Hence, besides other resources, human resources need more development. Human resources can increase cooperation but it needs proper and efficient management to guide it.”

Some scholars have compared human brain with human resource management. As the brain directs all the parts of the human body and by its illness the best parts of the body become inactive. Likewise an efficient human resource management takes work from the whole personnel and gains the objective.

Lawrence A. Appley has stressed that if management agrees to this truth that management means the development of the personnel-and pay attention to the development of human resources properly, many problems relating to management will be solved in itself and many difficulties will not arise. R. M. Aldrich calls the personnel or human resource management as the nervous system i.e., an integral part of the process of management itself.

Effective management of Human Resources is essential not only for the organisation, but also for the society and notion is discussed below-

Importance for the Organisation. Importance of personnel management is in reality the importance of labour functions of personnel department which are indispensable to the management activity itself. Because of the following reasons human resource management holds a place of importance.

  1. It helps management in the preparation, adoption and continuing evolution of personnel programmes and policies.
  2. It supplies skilled workers through scientific selection process.
  3. It ensures maximum benefit out of the expenditure on training and development and appreciates the human asset.
  4. It prepares workers according to the changing needs of industry and environment.
  5. It motivates workers and upgrades them so as to enable them to accomplish the organisation goals.
  6. Through innovation and experimentation in the field of personnel, it helps in reducing casts and helps in increasing productivity.
  7. It contributes a lot in restoring the industrial harmony and healthy employer-employee relations.
  8. It establishes mechanism for the administration of personnel services that are delegated to the personnel department.

Importance for the Society :
Sound HRM has great importance for the society in the following ways-

  • It provides suitable employment to labour that provides social and psychological satisfactions to people.
  • It develops sound personnel policies for socio-psychological satisfaction to people at work.
  • It maintains a balance between jobs available and job seekers in terms of numbers, qualifications, needs and aptitude.
  • It eliminates waste of human resources through conservation of physi-cal and mental health of the people.

Importance for the Nation :
Effective human resource management plays a vital role in the growth, development and self sufficiency of the nation. An efficient and committed manpower only can utilise the nation’s natural, physical and financial resources of the country. There are wide differences in development between countries with similar resources due to differences in quality of their people. Countries are developed or underdeveloped not because of their resources but because of educational and other standards. If the people are educated skilled and efficient, the country will progress in the desired direction. Effective management of people results in their developments which in turn, speeds up the process of economic growth leading to higher standards of living and employment opportunities.

Thus, the role of Human Resource Management is very important in an organisation and it should not be’ undermined especially in large scale enterprises. It is the key to the whole organization and related to all other activities of the management i.e. marketing productions and finance etc.

DU SOL B.Com 3rd Year Human Resource Management Notes

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