INTRODUCTION TO HRM DEFINITION:

It is defined as the art of procuring, developing & maintaining competent workforce to achieve goals of an organization in an effective & efficient manner. Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. It is the process of acquiring, training, appraising & compensating employees & attending to their labour relations, health, safety & fairness concerns.

NATURE:

Pervasive force: It is present in all enterprises. It permeates all levels of management in an organization. Action oriented: HRM focuses attention on action, rather than on record keeping, written procedures or rules. Individually oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organization. It motivates employees through a systematic process of recruitment, selection, training & development coupled with fair wages policies. People oriented: HRM is all about people at work, both as individuals & groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people motivate them toward further improvements in productivity. Future oriented: It helps the organization in meeting its goals in the future by providing for competent & well-motivated employees. Development oriented: HRM intends to develop the full potential of employees. the reward structure is tuned to the needs of employees. Training is offered to sharpen & improve their skills. Employees are rotated on various jobs so that they gain experience & exposure. Every attempt is made to use their talents fully in the service of organizational goal.

Integrating mechanism: It tries to build cordial relations between people working at various levels in the organization. in short it tries to integrate human assets in the best possible manner in the service of an organization. Comprehensive function: It is concerned with managing people at work. It covers at all types of personnel. It is basically a method of developing potentialities of employees so that they get maximum satisfaction out of their work & give their best efforts to the organization. Auxiliary service: HR departments exist to assist & advise the line or operating managers to do their personnel work more effectively. HR manager is a specialist advisor. It is a staff function. Inter-disciplinary function: It is a multidisciplinary activity, utilizing knowledge & inputs drawn from psychology, sociology, anthropology, economics etc. Continuous function: It cannot be practiced only one hour each day or one day a week. It requires a constant alertness & awareness of human relations & their importance in every day operation.

SCOPE:

Personnel aspect: This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training & development, lay-off & retrenchment, remuneration, incentives, productivity etc. Welfare aspect: It deals with working conditions & amenities such as canteens, crches, rest & lunch rooms, housing, transport, medical assistance, education, health & safety, recreation facilities etc. Industrial relations aspect: This covers union-management relations, joint consultation, collective bargaining, grievance & disciplinary procedures, settlement of disputes etc.

OBJECTIVES:
To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees.

 To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employee's job satisfaction and self-actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee's capabilities to perform the present job. To equip the employees with precision and clarity in transaction of business. To inculcate the sense of team spirit, team work and inter-team collaboration.

EVOLUTION:

Concept

What is it all about?

The commodity factor

Labour was regarded as a commodity to be bought & sold. Wages are based on demand & supply. Govt. did very little to protect workers. Labour is like any other factor of production, viz, money, materials, land etc. Workers are like machine tools. Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity. Mgmt must assume a fatherly & protective attitude towards employees. paternalism does not mean merely providing benefits but it means satisfying various needs to he employees as parents meet he requirements of the children. To improve productivity, physical, social & psychological needs of workers must be met. As Mayo & others stated, money is less a factor in determining output, than group standards, group incentives & security. The organization is a social system that has both economic & social dimensions.

The factor of production concept

The goodwill concept The paternalistic concept/ paternalism

The humanitarian concept

The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs & aspirations of employees. Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life & offer opportunities to people to exploit their potentiality. The focus should be on Human Resource Development.

The Emerging concept

DIFFERENCE B/W HRM & PERSONNEL MGMT:

Dimensions Employment contract Rules Guide to mgmt actions Behaviour referent Managerial labour Key relations Initiatives Speed of decision Mgmt role Communication Prized mgmt skills Pay Labour mgmt Job categories & grades task Personnel mgmt Human resource mgmt

Careful delineation of written Aim to go beyond contract contracts Importance of devising clear Can do outlook, impatience rules with rules Procedures Norms/customs & practices vis--vis Monitoring Labour mgmt Piecemeal Slow Transactional Indirect Negotiation Job evaluation(fixed grades) Collective-bargaining contracts Many Business need Values/mission Nurturing Customer Integrated Fast Transformational Direct Facilitation Performance related Individual contracts Few

Job design Conflict handling Respect for employees

Division of labour Reach temporary (ceasefire)

Team work truce Manage climate & culture

Labour is treated as a tool People are treated as assets to which is expendable & be used for the benefit of an replaceable organization, its employees & the society as a whole. Interests of the organization Mutuality of interests are uppermost Precedes HRM External Latest in the evolution of the subject Internal

Shared interests Evolution Locus of control Planning

HRM FUNCTIONS:
Job analysis Training

P/HRM Job design Work scheduling Motivation Job evaluation Performance & Motivation potential &appraisal Compensation Compensation administration Incentives benefits & services

Health

Grievanc es Disciplin e

Personnel records Personnel audit

Organising Managerial functions

HRP

Executive developme nt

Safety

Welfare Maintenance Social security

Recruitme nt Procurement Selection

Development Career planning

Directing

Succession planning

Teams Operative Personnel functions & team research work HR Integration Emerging Collectiv issues accountin e g bargaini HRIS ng Participa tion Empowe rment TU Employe rs associati on IR Job stress Counselin g Mentoring Internatio nal HRM

Placement HRD strategies

Induction Controlling Internal mobility

Managerial functions:
Planning: This function deals with the determination of the future course of

action to achieve desired results. Planning of personnel today prevents crises tomorrow. The personnel manager is expected to determine the personnel programme regarding recruitment, selection & training of employees.
Organizing: This function is primarily concerned with proper grouping of

personnel activities, assigning of different groups of activities to different individuals & delegation of authority. It infact, is considered to be the wool of the entire mgmt fabric & hence cannot afford to be ignored.
Directing: This involves supervising & guiding the personnel. To execute plans,

directing is essential for without direction of things there is no destination. Many a time, the success of the organization depends on the direction of things rather on design. Direction then consists of motivation & leadership. The personnel manager must be an effective leader who can create winning teams.
Controlling: Controlling function of personnel mgmt comprises measuring the

employees performance, correcting negative deviations & industrial assuring an efficient accomplishment of plans. It makes individuals aware of their performance through review reports, records & personnel audit programmes. It ensures that the activities are being carried out in accordance with stated plans.

Operative functions:
Procurement function: It is concerned with procuring & employing people who

possess necessary skill, knowledge & aptitude.

1. Job analysis: It is the process of collecting information relating to the

operations & responsibilities pertaining to a specific job.

2. Human resource planning: It is a process of determining & assuring that

the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet their needs& provide satisfaction for the individuals involved.
3. Recruitment: It is the process of searching for prospective employees &

stimulating them to apply for jobs in the organization.

4. Selection: It is the process of ascertaining qualifications, experience, skill

& knowledge of an applicant with a view to appraising his/her suitability to the job in question.
5. Placement: It is the process that ensures a 360 degree fit, matching the

employees qualifications, experience, skills & interest with the job an offer. It is the personnel managers responsibility to position the right candidate at the right level.
6. Induction & orientation: They are techniques by which a new employee

is rehabilitated in his new surroundings & introduced to the practices, policies & people. He must be acquainted with the principles which define & drive the organization, its mission statement & values which form its backbone.
7. Internal mobility: The movement of employees from one job to another

through transfers & promotions is called internal mobility. Some employees leave an organization due to various reasons leading to resignation, retirement & even termination. These movements are known as external mobility.

Development: It is the process of improving, moulding, changing & developing

the skills, knowledge, creative ability, aptitude, attitude, values & commitment based on present & future requirements both at the individuals & organisationals level. This function includes:
1. Training: It is a continuous process by which employees learn skills,

knowledge, abilities & attitudes to further organizational & personnel goals.

2. Executive development: It is a systematic process of developing

managerial skills & capabilities through appropriate programmes.

3. Career planning & development: It is the planning of ones career &

implementation of career plans by means of education, training, job search & acquisition of work experiences. It includes succession planning which implies identifying developing & tracking key individuals for executive positions.
4. Human resource development: HRD aims at developing the total

organization. It creates a climate that enables every employee to develop

& use his capabilities in order to further both individual & organizational goals.

Motivation & compensation: It is a process which inspires people to give their

best to the organization through the use of intrinsic & extrinsic rewards.
1. Job design: Organising tasks, & responsibilities towards having a

productive unit of work is called job design. The main purpose of job design is to integrate the needs of employers to suit the requirements of an organization.
2. Work scheduling: Organisation must realize the importance of

scheduling work to motivate employees through job enrichment, shorter work weeks flexi-time, work sharing & home work assignments. Employees need to be challenged at work & the job itself must be one that they value. Work scheduling is an attempt to structure work, incorporating the physical, psychological & behavioural aspects of work.
3. Motivation: Combining forces that allow people to behave in certain

ways is an integral aspect of motivation. People must have both the ability & the motivation if they are to perform at a high level. Managers generally try to motivate people through financial as well as non-financial rewards.
4. Job evaluation: It is the systematic process of determining the relative

worth of jobs in order to establish which jobs should be paid more than other within the organization. job evaluation helps to establish internal equality b/w various jobs.
5. Performance appraisal: Performance evaluation or appraisal is the

process of deciding how employees do their jobs. It is a method of evaluating the behaviour of employees at the workplace & normally includes both the quantitative & qualitative aspects of job performance. It is a systematic & objective way of evaluating work-related behaviour & potential of employees. It is a process that involves determining & communicating to an employee how he or she is performing & ideally, establishing a plan of improvement. The appraisal process consists of 6 steps: (1) establish performance standards with employees; (2) set measurable goals; (3) measure actual performance; (4) compare actual performance with standards; (5) discuss

the appraisal with the employees & (6) if necessary initiate correction plan.
6. Compensation administration: It is the process of dividing how much an

employee should be paid. The important goals of compensation administration are to design a low-cost pay plan that will attract, motivate & retain competent employees.
7. Incentives & benefits: In addition to a basic wage structure, most

organizations nowadays offer incentive compensation based on actual performance. Unlike incentives, benefits & services are offered to all employees as required by law including social security, insurance, workmens compensation, welfare amenities etc.

Maintenance: It aims at protecting & preserving the physical & psychological

health of employees through various welfare measures.

1. Health & safety: Managers at all levels are expected to know & enforce

safety & health standards throughout the organization. They must ensure a work environment that protects employees from physical hazards, unhealthy conditions & unsafe acts of other personnel. Through proper safety & healthy programmes, the physical & psychological well-being of employees must be preserved & even improved.
2. Employee welfare: Employee welfare includes the services, amenities &

facilities offered to employees within or outside the establishment for their physical, psychological & social well being. Housing, transportation, education & recreation facilities are all included in the employee welfare package.
3. Social security measures: Managements provide social security to their

employees in addition to fringe benefits. These measures include: (a) workmens compensation to those workers who are involved in accidents; (b) maternity benefits to women employees; (c) sickness benefits & medical benefits; (d) disablement benefits/allowance; (e) dependent benefits; (f) retirement benefits like provident fund, pension, gratuity etc.

Integration function: This tries to integrate the goals of an organization with

employee aspirations through various employee-oriented programmes, like redressing grievances, instituting proper disciplinary measures, empowering

people to decide things independently, encouraging a participative culture, offering constructive help to trade unions etc.
1. Grievance redressal: A grievance is any factor involving wages, hours or

conditions of employment that is used as a complaint against the employer. Constructive grievance handling depends first on the managers ability to recognize, diagnose & correct the causes of potential employee before it converts into a formal grievance.
2. Discipline: It is the force that prompts an individual or a group to observe

the rules, regulations & procedures, which are deemed necessary for the attainment of an objective.
3. Teams & teamwork: Self-managed teams have emerged as the most

important formal groups in todays organizations. They enhance employee involvement & have the potential to create positive energy. By increasing worker interaction, they create amity among team members. They encourage individuals to sublimate their individual goals for those of the group. Teams have inherent strengths which ultimately lead to organizational success at various levels.
4. Collective bargaining: It is a process of agreeing on a satisfactory labour

contract b/w mgmt & union. The contract contains agreements about conditions of employment such as wages, hours, promotion, & discipline; lay-off, benefits, vacations, rest pauses & the grievance procedure. The process takes time, as both parties tend to make proposals & counter proposals. The resulting agreement must be rectified by workers & mgmt.
5. Employee participation: Participation means sharing the decision-

making power with the lower ranks of an organization in an appropriate manner. When workers participate in organizational decisions they are able to see the big picture clearly & also how their actions would impact the overall growth of the company. They can offer feedback immediately based on their experiences & improve the quality of decisions greatly. Since, they are now treated with respect, they begin to view the job & the organization as their own, & commit themselves to organizational objectives whole-heartedly.
6.

Trade union & employee organization: It is an association either of employees or employers or independent workers. It is relatively permanent a body formed by workers with the objective of countering exploitation & harassment. It strives towards providing economic & social benefits to the

labour community. It has always played a powerful role in improving the lot of workers in India, using aggressive bargaining tactics.
7. Industrial relations: Harmonious industrial relations b/w labour & mgmt

are essential to achieve industrial growth & higher productivity. When the relationship b/w the parties is not cordial, discontentment develops & conflicts erupts abruptly.

Emerging issues: Effective mgmt of human resources depends on refining HRM

practices to changing conditions. Hence, the need to look at other important issues that can motivate people to give their best in a dynamic & ever changing environment.
1. Personnel records: Personnel records such as papers, files, cards,

cassettes & films are maintained to have tangible record of what is actually happening in an organization & to formulate appropriate HR policies & programmes.
2. HR audit: It refers to an examination & evaluation of policies, procedures

& practices to determine the effectiveness of KRM. Personnel audit (a) measures the effectiveness of personnel programmes & practices & (b) determines what should or should not be done.
3. HR research: It is the process of evaluating the effectiveness of human

resource policies & practices & developing more appropriate ones.

4. HR accounting (HRA): It is measurement of the cost & value of human

resources to the organization.

5. Human resource information system(HRIS): It is an integrated system

designed to improve the efficiency with which HR data is compiled. It makes HR records more useful to the mgmt by serving as of information.
6. Stress & counseling: Stress is the psychological & physical reaction to

certain life events or situations. At an organizational level, stress results in burn out, substance abuse in the form of alcohol or drug use reduced job satisfaction, increased absenteeism & increased turnover. Companies, therefore, are closely looking at what should be done to promote the physical & mental well being of employees through proper counseling & employee development programmes.

7. International HRM(IHRM): International business is important to

almost every business today & so firms must increasingly be managed with a clear global focus. This of course, poses many challenges before managers including coordinating production, sales & financial operations worldwide. IHRM places greater emphasis on number of responsibilities & function such as relocation, orientation & training services to help employees adapt new & different culture & environment outside the country.

HRM & ITS ENVIRONMENT:

External forces: It includes political-legal, economic, technological & cultural factors, the influence of which oh HRM is considerable.
1. Political-legal: The political environment covers the impact of political

institutions on the HRM deptt. In a democratic political setup, there are 3 institutions which together constitute the total political environment. They are: (i) the legislature, (ii) the executive & (iii) the judiciary. The legislature, also called Parliament at the central level & assembly at the state level, is the law making body. The executive popularly known as govt. is the law implementing body. The legislature decides & the executive acts. Above these 2 is the judiciary which has the role of watching. The main function of the judiciary is to ensure that the legislature & the executive work within the confines of the constitution & the public interest. The interface b/w political environment & labour takes place through labour laws. There are so many enactments relating to the labour that we are the largest labour-legislated country in the world. The important labour laws enacted in India affecting HRM are: The Factories Act, 1948; Trade Union Act, 1926; The Payment of Wages Act, 1936; The Minimum Wage Act, 1948; The Employees State Insurance Act, 1948; Workmens Compensation Act, 1923; The Payment of Bonus Act, 1965; The Industrial Employment Act, 1946; The Employment Exchange Act, 1959; Payment of Gratuity Act, 1972; The Maternity Benefit Act, 1961 & The Apprentice Act, 1961. In addition to enacting & implementing labour laws, political stability, political parties & their ideologies & political gimmicks, formation of new parties, splits in & amalgamation of existing parties naturally affect the human resource mgmt via Trade unions. This in turn results in intra & inter union rivalry, formation of new trade unions, splits in & amalgamation of existing trade unions. These changes in trade unions complicate the task of HRM.
2. Economic: It refers to all those economic forces which have a bearing on the HR

function. Economic growth, industrial production, agriculture, population, national & per capita income, money & capital markets, suppliers, competitors,

customers & industrial labour are the components of the economic environment. The last 4 are highly relevant to HR activities. Another component of economic environment is globalization.
Suppliers: For the HR deptt, suppliers are those who provide human

resource to an organization. Employment exchanges, universities, colleges, training institutes, consulting firms, casual-labour contractors, competitors, & the like are the sources that supply human resources. The type of employees the organization receives depends on the suppliers.
Competitors: Competition plays a significant role in some of the HR

functions & activities. As the number of organizations competing for human resources increases, so does the importance of the staffing function & its appraisal & compensation activities. If several companies make job offers to one individual, the organization with more attractive terms & conditions will win. When employees with particulars skills are hard to obtain, the organization may need to groom its own employees through well-managed HRP programmes co-ordinated with training & development activities.
Customers:

They have their own influence on companys personnel functions. it needs no mention that customers want high-quality products at reasonable prizes. So everybody in the organization must endeavour to offer products which give satisfaction for the money customers pay. Sale are often affected by product quality which is directly related to skills & qualifications of the organisations employees. Bosch, India has 12 quality principles. The 5th & 6th principles are worth quoting here. They are illustrative customers influence on personnel. The 5th principle: Our customers are final judges of our quality. The 6th principle: Each & every employee in the company contributes towards achieving our quality goods. It is therefore the responsibility of every employee-from apprentice to the member of the Board-to ensure that their work is of the highest standard. Anyone who identifies quality, but does not have the authority to remedy it himself, must report it immediately to his superior.

Economic growth: Whether a country is economically developed or not

affects the quality of labour. Quality of labour depends on education & health available for its citizens. In advanced countries people & govt. spend more on education & health; with greater wealth & education

better quality labour is assured, which in turn ensures higher productivity. The inverse is likely to happen in low income countries which spend less on education & health. Uneducated citizens with poor health cannot contribute to productivity. Therefore, development policies tend to focus on health, education, quality of labour & productivity simultaneously.
Industrial labour: There are certain changes in industrial labour, they

are:
a) Commitment to industry: Labour is now committed to industrial

setting, thus contributing to stabilizing the workforce. The worker who takes up a job in urban area might have their moorings in a village. But, it is unlikely to go back their village. The worker who settles down in the city, admits their children in city schools, buys a new residential house in the city & would gradually becomes an alien in their native village. Thus, the present generation of young workers is mostly born & bought-up in urban areas & has accepted industrial employment as a way of life.
b) Protective legislation: The govt. been enacting one legislation

after one another to protect the interests of the workers. Consequently, working conditions, job security, compensation, compensation, health & safety have improved considerably over the years. These improvements have a great impact on HRM.
c) Status: The economic & social status of todays workers has

vastly improved. Improved skill contents of the jobs, matching educational & training inputs & increased emoluments have made industrial employment the first attraction of young job seekers. Industrial employment is now not restricted only to the socially backward castes. The status of an industrial worker of today has enhanced as a result of the readjustment in the value system in favour of industrial employment which is, in turn the aggregate effect his/her improved skills & enlarged pay packets.
d) Employment pattern: Another feature is the change in the

employment pattern of labour. This is due to the changes in industrial activity, which has tremendously expanded & diversified & also undergone a technical transformation. In the early years, unskilled predominated the industrial employment scenario, when traditional industries like textile & mining were in the forefront. In the process of expansion & diversification, new

avenues of industrial activity, which has tremendously expanded & diversified & also undergone a technical transformation. In the early years, unskilled labour predominated the industrial employment scenario, when traditional industries like textile & mining were in the forefront. In electronics, informatics & pharmaceuticals have assumed importance & have changed the composition of industrial employment. The improved technology of these new industries created jobs with greater jobs with greater skill content, thereby raising the minimum required standard of education.
e) Trade unionism: Industrial labour is organized today, primarily

to protect & promote its own economic interests. Industrial workers in the early days, being mostly ignorant & illiterate, were led by outside sympathizers & their organizations had close links with political parties. These legacies have proved to be serious hurdles in the path of building up strong trade unions.
f) Diversity: Finally, the industrial labour is characterized by

increasing diversity. Workforce of any factory comprises people from different countries. Within this diversity of national origins, there is an even wider diversity of cultures, religions, languages & dialects, educational attainment, skills, values, ages, races, genders, & other differentiating variables.
g) Impact of globalization:

Globalisation has considerable influence on HR functions. Employee hiring, training, motivation, compensation retaining are to be guided by the global perspective. By discharging these & other functions effectively & by helping the best quality people execute the companys strategy on a global scale, the deptt. can become the source of competitive advantage for the company. Every factor of production, other than workforce skills, can be duplicated anywhere in the world. Capital moves freely across the national boundaries, seeking the lowest costs. A workforce that is knowledgeable & skilled at doing complex things keeps a company competitive & attracts foreign investment. The benefits b/w globalization & workers are mutual. In fact, the relationship forms a good circle-well trained workers attract MNCs, which invest & offer workers good jobs; the good jobs; in turn, generate additional training & experience.

3. Technological: Skill building in employees is of considerable significance. When

technology changes & new technology is being adopted, employees need to be trained in the ways of handling operations & machines. There has been no time in the past where upgradation of technical skills was more important than it is today. For employees who are trained in new skills, opportunities are aplenty. Technology, particularly information technology influences the organization structure, relationships & the nature of mgmt work. Major areas & functions of business like production, marketing, finance, HR & supply chain are now integrated with the Enterprise Software systems like Enterprise Resource Planning, Oracle, Sap, People Soft & Business Process Reengineering packages. HR managers now experienced that these changes require new skills, increase in the number of managerial, introduction of alternative job assignments & opportunities for higher-level managerial positions. These shifts, in turn, resulted in the design of flat, team & virtual organization. IT reduced the need for middlelevel managers & low skilled managers. Advanced IT would result in blurring of distinctions b/w mgmt & labour. Added to this, employee empowerment programmes tend to enhance the level as well as knowledge power of employees. These shifts resulted in designing less hierarchial structures, project structures & virtual structures. In addition, organizations tend to become highly flexible, adaptive, porous, less pyramidal & a set of concentric circles. Shifts in IT enabled HR managers to perform most of the HR functions on-line by using HR software. Implementation of technologies resulted in restructuring of HR deptt, jobs, relationships & processes, redeployment of HR specialists from HR deptt to individual operating units to provide efficient service to the units.

4. Cultural factors: It has an influence on the HR function in various manner: Culture creates the type of people who become members of an

organization. culture trains people along particular lines, tending to put a personality stamp upon them. When people with different cultural backgrounds promote, own & manage organizations, they themselves tend to acquire distinct cultures. Thus, the culture of TATA group of companies is different from that of the enterprises owned & managed by the Birlas. The attitude of workers towards work is the result of their cultural background. In this respect Indians score over others. For Indians, work is not means of living-it is equated with God.

 Time dimension, which influences HRM, has its roots in culture. Time orientation refers to peoples orientation-past, present or future. In some societies, people are oriented towards the past. In others, they tend to be more focused on the present. Still others are futuristic in their outlook.
Work ethics, achievement needs & effort-reward expectations, which are

significant inputs determining individual behaviour, are the results of culture. The word ethics is associated with moral principles. In the context of an organisation, ethics implies hard work & commitment to work. A strong work ethics ensures motivated employees whereas the opposite is true when work ethics is weak. Culture makes people confine themselves to certain occupations & regions. Workers employed in coffee estates or tea plantations in Malnad region cannot probably work in places like Bangalore. Their food habits, dress sense, language & the physical labour they put in-all seem to have been contrived to make them fit to work in such places.

Internal factors: It includes: (i) strategy, (ii) task, (iii) leadership, (iv) unions, (v) organizational culture & conflict & (vi) professional bodies.
1. Strategy, task & leadership: As a plan, strategy takes the organization

into the area of competition in environment & into alignment with the resources of the firm. Some company believe that long term success is more important & towards this objective they invest more in human resources-in terms of employee training, safety, security, welfare & harmonious industrial relations.

Task has implications on employee motivation & satisfaction. Several job characteristics such as skills required, task significance, autonomy & feedback of results have motivational effects. In fact, impact on employee motivation is so significant that Herzberg advocated the concept of job enrichment. Employee derive satisfaction from the jobs they occupy. Jobs give them opportunities to put their talents to use & work for organizational growth.

It is the leader who matters in any functional area of business. HRM is no exception. A leader provides direction, encouragement & authority to

evoke desired behaviours. A leader chooses right people & motivates them to consistently strive towards making them overreach themselves.
2. Unions: A trade union may be understood as an association of workers or

mgmt formed to protect their own individual interests. All HR activitiesrecruitment, selection, training, compensation, IR & separation are carried out in consultation with union leaders.
3. Organizational culture: It is the product of all the organisations feature-

its people, its successes, & its failures. It reflects the past & shapes the future. It is the job oh HR specialists to adjust proactively to the culture of the organization. There is often conflict b/w organizational culture & employees attitude. HR deptt are expected to develop & enforce policies so that conflict does no arise.
4. Professional bodies: National Institute of Personnel Mgmt supplies

academic inputs to HR professionals. Periodic training programmes, seminars & conferences are organized by NIPM for the benefit of HR experts. NIPM offers PG diploma in Personnel mgmt. NIPM has laid down a code of ethics & the HR practitioners are expected to declare their allegiance to the code.

HRD IN INDIA DEFINITION:

It is a process by which the employees of an organization are helped in a continuous & planned way to:

1. Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles; 2. Develop their general capabilities as individuals & discover & exploit their own inner potential for their own &/or organizational development purposes; 3. Develop an organizational culture in which superior-subordinate relationships, team work & collaboration among sub units are strong & contribute to the professional well being, motivation & pride of employees In short, HRD aims at helping people to acquire competencies required to perform all their functions effectively & make their organization do well.

FEATURES OF HRD:
It is a system of several interdependent sub-systems such as procurement, appraisal, development etc. It is a planned process of developing people on a perpetual basis. It basically involves development of competencies at individual & organizational level. It upholds career planning & ensures all round growth of employees. it makes effective use of manpower by employing right man to the right job at the right time. It maintains transparency in administration. It maintains transparency in administration. It is action-oriented. It brings about an atmosphere of mutual trust & confidence. It fights resistance to change & make employees more willing to accept the change.

OBJECTIVES OF HRD:
HRD, basically, aims at developing: The capabilities of each employee as an individual. The capabilities of each individual in relation to his/her present role. The capabilities of each employee in relation to his/her expected future role(s). The dyadic relationship b/w each employee & his/her employer.

The team spirit & functioning in every organizational unit. Collaboration among different units of the organization. The organisations overall health & self-renewing capabilities, which in turn, increase the enabling capabilities of individuals, dyads, teams & the entire organization.

PRINCIPLES IN DESIGNING HRD SYSTEM:

There have been many queries regarding the principles of Human Resource development. Many a times we get confused between principles and functions of HRD however there is a clear cut distinction between the two. The main functions of HRD are Training, Personal development, Organisational development, Career planning and development, Change Management. The principles therefore are not the functions. HRD systems must be designed differently for different organizations. Although the basic principles may remain the same, the specific components, their relationships, the processes involved in each, the phasing, and so on, may differ from one organisation to another organisation. Designing an integrated HRD system requires a thorough understanding of the principles and models of human resource development and a diagnosis of the organisation culture, existing HRD practices in the organisation, employee perceptions of these practices, and the developmental climate within the organisation. The following principles related to focus, structure, and functioning should be considered when designing integrated HRD systems. Focus on enabling capabilities: The primary purpose of HRD is to help the organisation to increase its enabling capabilities. These include development of human resources, development of organisational health, improvement of problem solving capabilities, development of diagnostic ability (so that problems can be located quickly and effectively), and increased employee productivity and commitment.

Balancing adaptation and change in the organisational culture: Although HRD systems are designed to suit the organisational culture, the role of HRD may be to modify that culture to increase the effectiveness of the organisation. There always has been a controversy between those who believe that HRD should be designed to suit the culture and those who believe that HRD should be able to change the culture. Both positions seem to be extreme. HRD should take the organisation forward, and this can be done only if its design anticipates change and evolution in the future.

Attention to contextual factors: What is to be included in the HRD systems, how is it to be sub-divided, what designations and titles will be used, and similar issues should be settled after consideration of the various contextual factors of the organisationits culture and tradition, size, technology, levels of existing skills, available support for the function, availability of outside help and so on.

Building linkages with other functions: Human resource development systems should be designed to strengthen other functions in the company such as long-range corporate planning, budgeting and finance, marketing, production, and other similar functions. These linkages are extremely important.

Balancing specialisation and diffusion of the function: Although HRD involves specialised functions, line people should be involved in various aspects of HRD. Action is the sole responsibility of the line people, and HRD should strengthen their roles.

Ensuring respectability for the function: In many companies, the personnel function does not have much credibility because it is not perceived as a major function within the organisation. It is necessary that HRD be instituted at a very high level in the organisation and that the head of the HRD department is classified as a senior manager. Both the credibility and usefulness of HRD depend on this.

Balancing differentiation and integration: The human resource development function often includes personnel administration, human resource development and training, and industrial relations. These three functions have distinct identities and requirements and should be differentiated within the HRD department. One person may be responsible for OD, another for training, another for potential appraisal and assessment, etc. At the same time, these roles should be integrated through a variety of mechanisms. For example, inputs from manpower planning should be available to line managers for career planning and HRD units for potential appraisal and development. Data from recruitment should be fed into the human resources information system. If salary administration and placement are handled separately, they should be linked to performance appraisals. Differentiation as well as integration mechanisms are essential if the HRD system is to function well.

Establishing linkage mechanisms: HRD has linkages with outside systems as well as with internal sub-systems. It is wise to establish specific linkages to be used to manage the system. Standing committees for various purposes (with membership from various parts and levels of the organisation), task groups, and ad hoc committees for specific tasks are useful mechanisms.

Developing monitoring mechanisms: The HRD function is always evolving. It therefore requires systematic monitoring to review the progress and level of effectiveness of the system and to plan for its next step. A thorough annual review reappraisal every three years will be invaluable in reviewing and planning the system. It may be helpful to include persons from other functions in the organisation in the HRD assessment effort.

HRD V/S PERSONNEL:

Points of distinction Orientation Structure Philosophy Responsibility Motivators

Personnel function Maintenance oriented An independent function with independent sub-functions Reactive function, responding to events as & when they take place Exclusive responsibility of personnel department Emphasis is put on monetary rewards

Outcomes AIMS

HRD Development oriented Consist of interdependent functions. Proactive function, trying to anticipate & get ready with appropriate responses. Responsibility of all managers in the organisation. Emphasis is on higher order needs such as- how to design jobs with stretch, pull & challenge; how to improve creativity & problem solving skills; how to empower people in all respects etc. Improved performance is the Better use of human resources result of improved satisfaction leads to improved satisfaction & morale & morale. Tries to improve the efficiency It tries to develop the of people & administration organisation as a whole & its culture.

ROLE OF HR MANAGER:
HR Manager is one of the most important key to open a lock hanging on the door of success in an organisation. If an HR Manager is efficient enough to handle and to take out best from his team members any oragnisation and can achieve more from his target goals. HR manager plays an very important role in hierarchy, and also in between the higher management and low level employees. Stated below are major responsibilities of HR Manager:Responsibilities: 1. To maintain and develop HR policies, ensuring compliance and to contribute the development of corporate HR policies. 2. To develop the HR team, to ensure the provision of a professional HR service to the organization. Manage a team of staff. Responsible for mentoring, guiding and developing them as a second line to the current position. 3. To ensure timely recruitment of required level / quality of Management staff, other business lines staff, including non-billable staff with appropriate global approvals, in order to meet business needs, focusing on Employee Retention and key Employee Identification initiatives. 4. Provide active support in the selection of Recruitment agencies which meet the corporate standard. Ensure Corporate Branding in recruitment webs and advertisements.

5. Develop, refine and fine-tune effective methods or tools for selection / or provide external consultants to ensure the right people with the desired level of competence are brought into the organization or are promoted. 6. Prepare information and input for the salary budgets. Ensure compliance to the approved salary budget; give focus on pay for performance and salary benchmarks where available. Ensure adherence to corporate guideline on salary adjustments and promotions. Coordinate increments and promotions of all staff. 7. To develop the HR business plan. 8. Ensure appropriate communication at all staff levels. 9. To maintain and develop leading edge HR systems and processes to address the effective management of people in relation to the following in order to maintain competitive advantage for: Performance Management. Staff Induction. Reward and Recognition. Staff Retention. Management Development / Career Development. Succession Planning. Competency Building / Mapping. Compensation / Benefit programs.

10. To facilitate / support the development of the Team members 11. To facilitate development of staff with special focus on Line Management 12. To recommend and ensure implementation of Strategic directions for people development within the organization. 13. Ensure a motivational climate in the organization, including adequate opportunities for career growth and development. 14. Administer all employee benefit programs with conjunction with the Finance and Administration department. 15. Provide counsel and assistance to employees at all levels in accordance with the company's policies and procedures as well as relevant legislation. 16. Oversee the central HR Administration employee offer letters salary letters and employment contracts. Approve updated organizational charts on a monthly basis and maintain complete/accurate personnel records.

17. Co-ordinate the design, implementation and administration of human resource policies and activities to ensure the availability and effective utilization of human resources for meeting the company's objectives. 18. Responsible for Corporate HR function. 19. Responsible for overall centralized HR admin function

20. Counseling and Guidance cell - provide support to Managers in case of disciplinary issues.

STRATEGIC HRM

DEFINITION OF STRATEGY:

It is a future-oriented plan for interacting with the competitive environment to achieve organizational goals.

STRATEGIC MGMT:
It refers to the process of crafting strategies, their implementation & evaluation of their effectiveness.

STRATEGIC HRM:
It refers to the process of developing practices, programmes & policies that help achieve organizational objectives. There are 4 roles of HR executives in this context: 1. HR should define an organisations architecture. In other words, it should identify the underlying model of the companys way of doing business. After the architecture is defined it needs to be articulated explicitly. Without such clarity, managers tend to become more myopic about how the company runs. 2. HR needs to be accountable for conducting an organisational audit. Audit helps identify which components of the architecture should be changed in order to facilitate strategy execution.
3. The 3rd role of HR as strategic partner is to identify methods for renovating the

parts of the organizational architecture that need it. In other words, HR manager should be assigned to take the lead in proposing, creating, & debating best practices that can help implement strategies. 4. HR must take stock of its own work & set clear priorities. At any given time, the HR staff might have several initiatives in its sights, such as pay-for-performance, global team work, & action-learning development experiences. But to be truly tied to business outcomes, HR needs to join forces with line managers to continuously assess the impact & importance of each one of these initiatives.

STRATEGIC MGMT PROCESS:

Environmental scanning: Environment needs to be scanned in order to determine trends & projections of factors that will affect fortunes of the organization. Scanning must focus on task environment. Scanning helps identify threats & opportunities prevailing in the environment. In formulating a strategy, a company seeks to take advantage of the opportunities while minimizing the threats. HR professionals play key roles in scanning the environment. They are in an advantageous position to give inputs about the rivals-their direction, their strategies, their strengths & their weakness. Strategy formulation: Strategies are formulated at 3 levels:
1. Corporate level strategy: It is formulated by top mgmt of an organization

made up of more than one line of business. In formulating these strategies, the company should decide where it wants to be-in 10 or 15 yrs hence, in at least 8 areas-market standing, innovation, productivity, physical & financial resources, profitability, managerial performance development, worker performance & attitudes, & social responsibility. 2. Business level strategy: A business unit is an organizational subsystem that has a market, a set of competitors, & a goal distinct from those of the other subsystems in the group. The concept of SBU was pioneered by GE.

The strategies are formulated at different business units. In some cases, corporate strategy & business unit strategy are same. 3. Functional-level strategy: Each business unit will consist of several departments, such as manufacturing, sales, finance & HRD. It identify the basic courses of action that each of the departments must pursue in order to help the business unit to attain goals. In formulating functional level strategies, managers must be aware that the different functions are interrelated. A change in one deptt. will invariable affect the way other deptt. Hence, the strategy of one functional area cannot be viewed in isolation.

Strategy implementation: Implementation of strategies is often more difficult

than their formulation. Implementing strategies requires such as altering sales territories, adding new deptt, closing facilities, hiring new employees, changing an organisations pricing strategies, developing financial budgets, formulating new employee benefits, establishing cost-control procedures, changing advertising strategies, building new facilities, transferring managers among divisions, & building a better computer information system. While implementing strategy HR function can help in the following way:
1. Encouragement of pro-active rather than reactive behaviour: Being

proactive means that the firm has a vision of where it wants to go 10 yrs hence, & has human resources who help it reach there. By being reactive the firm tends to lose sight of the long-term direction. It is people who can make the firm proactive or allow it to simply rest on past success.
2. Explicit communication of goals: Generally, every firm shall have a goal

& this must be communicated to all the employees. Everyone should work towards reaching the goal.
3. Stimulation of critical thinking: Managers often depend on their

personal views & experiences to solve problems & make decisions. The assumptions on which they make decisions can lead to success if they are appropriate to the environment in which the firm operates. The strategic HRM process can help a firm critically examine its assumptions & determine whether the decisions that follow from those assumptions need modification or need to be held back.
4. Productivity as an HR based strategy: The more productive an

organization, the better is its competitive advantage. Perhaps none of the

resources used for productivity in organizations are as critical as human resources. Many of the HR functions contribute to productivity. Pay, appraisal systems, training, selection & job design are HR activities that directly contribute to productivity.
5. Quality & service are HR based: Quality can come from people, &

realizing this firms are spending vast sum of money on quality training. The fig. shows that out of 5, 3 dimensions are HR related. Physical facilities & equipment

Care & concern Confidence in employee knowledge Service excellenc e Timely assistance

Dependable & accurate performance

6. Proficient strategic mgmt: It depends on competent personnel, better-

than-adequate competent capabilities & effective internal organization. Building a capable organization is top priority. 3 types of organizational building actions are crucial: Staffing the organization: It includes putting together a strong mgmt team, & recruiting & retaining employees with the needed expertise & experience. Building core competencies & competitive advantage: That will enable effective strategy execution & then keeping competence/capability portfolio updated as strategy & external conditions change. Structuring the organization & work force: By organizing business functions & processes, value chain activities & decision making in a manner conducive to successful strategy execution.

Strategy evaluation: It helps in determining the extent to which the companys strategies are successful in attaining its objectives. Basic activities involved in evaluation are:
1. Establishing performance targets, standards & tolerance limits for the

objectives, strategies & implementation plan. 2. Measuring the performance in relation to the targets at a given time. If outcomes are outside the limits, inform the managers to take action. 3. Analyze deviations from acceptable tolerance limits. 4. Execute modifications where & are feasible.