Solutions to Assignments
MBA and MBA (Banking & Finance)
MMPC 002 - Human Resources Management
MMPC-002/TMA/JULY/2022
Question No. 1. How did the concept of human resource management emerge? By explaining the functions of HRM describe the various perspectives of human resource management briefly.
HRM has evolved from the Personnel Management (which was the earstwhile management system to manage employees). Going back to the roots of
evolution of personnel management the contributions of Psychologists and
management experts such as Elton Mayo, F.W. Taylor and Robert Owen play
a significant role.Elton Mayo was the founder of the human relations
movement in the 1920s. In the famous Howthorne study, he measured the
relationship between productivity and the work environment. He emphasized
the influence of human relations on worker productivity. Similarly, Robert
Owen is considered to be the creator and initiator of reforms introduced for
workers. He introduced the principle of 8 hours work per day‘ . Owen
recognised the importance of improving working conditions in the workplace
and its impact on worker productivity and efficiency. Also worth mentioning
is the contribution of Frederick W. Taylor. Taylor has developed a
differentiated compensation system that rewards employees with higher
performance levels , that are still used in the company. He promoted
Scientific Management through fours principles:
1. Evaluate a task by dissecting its components;
2. Select employees that had appropriate skills for a task;
3. Provide workers with inventives and training to do a task; and
4. Use science to plan how workers perform their jobs.
HRM essentially emphasizes and incorporates those expectations which are
not being fulfilled through the traditional personnel management. However,
few management scholars have opened HRM as ―old bottle with a new label‖
(Armstrong, 2020). It integrates in a meaningful way the numerous
subsystems like performance appraisal, career development, organizational
development, rewards management, employee relations etc.
HRM and its evolution in India
The history of HRM in India dates back to the early 1980s when Mr. Udai
pareek and Mr. T.V. Rao championed the cause of the HRM movement. The
early adopters of the HRM movement include public sector enterprises such
as Bharat Heavy Electricals Limited (BHEL), State Bank of India, etc.
Initially, Indian organizations used to have an industrial relations (IR)
department, which was subsequently re-christened ad the personnel & IR
department, with the welfare department as one of its sub-departments. The
personnel department predominantly suited the blue-collar employees since
their general awareness and educational levels were low and the approach
was more of administrative nature. The growing importance of the service
sector in the Indian economy has also highlighted the importance of change
in approach by the personnel and administrative departments. The profile of
an employee in the new scenario has the following features.
- Employees are mostly in their mid-twenties or early thirties.
- All employees are educated and their level of general awareness is high.
- Employees are more committed to the profession than to the
organization.
- The rates of attrition and the level of mobility of employees among the
organizations are high.
The organizations have to compete for scarce resources, the most important
among them being the human resources, more so in the case of the service
sector. This has called for the radical transformation of personnel and
administrative departments into human resource departments to reflect the
human facet of organizations. A glance at the structure of various Indian
organizations indicates that the majority of the organizations have
rechristened their personnel and administrative department as human
resource development (HRD) departments. However, this transformation into
the HRM mode is at various stages in different organizations. The
progressive players and market leaders, especially in the IT and service
sectors, have fully adopted this approach while other players are in the
process of adoption.
The transformed HR department performs the following functions:
- Participating in the strategizing sessions of business policy
- Preparing the HR strategies in coordination with the corporate strategies
- Implementing the various HR policies and practices including HR planning, recruitment and induction, compensation structuring, career planning, competence mapping, performance management, etc.
Overall, the HR department has outgrown its mere functional role and has
come to assume the responsibility of building the brand for all company to
attract the best available talent in the market and also to retain the existing
talent. This helps in reducing the recruitment cost and the replacement cost
apart from reducing the attrition rates, which helps the organization to
complete its projects in time.
FUNCTIONS OF HRM
HRM plays the centre stage role in an organisation to meet the challenges of
a dynamic and competitive environment. Due to the changes in the business
environment, the work, workplaces and demographics HR managers need to
reconfigure their roles. However, in general the HRM functions are broadly
of two categories: Managerial and Operational.
Managerial functions of human resource management involve planning,
organising, directing and controlling.All these functions influence the
operative functions.
A) Planning: It is a predetermined course of action. Planning pertains
to formulating strategies of programmes and changes in advance that
will contribute to the organisational goals. In other words, it
involves planning of human resources, requirements, recruitment,
selection, training etc. It also involves forecasting of HR needs,
changing values, attitudes and behaviour of employees and their
impact on the organisation.
B) Organising: Organising is essential to carry out the determined
course of action. In the words of J.C. Massie, an organisation is a
“structure and a process by which a co-operative group of human
beings allocates its task among its members, identifies relationships
and integrates its activities towards a common objective.” Thus, an
organisation establishes relationships among the employees so that
they can collectively contribute to the attainment of company goals.
C) Directing: The next logical function after completing planning and
organising is the execution of the plan. The willing and effective cooperation of employees for the attainment of organisational goals is
possible through proper direction. Tapping the maximum
potentialities of the people is possible through motivation and
command. Co-ordination deals with the task of blending efforts in
order to ensure successful attainment of an objective.
D) Controlling: Controlling involves checking, verifying and
comparing of the actuals with the plans, identification of deviations
if any and correcting of identified deviations. Thus, action and
operation are adjusted to pre-determined plans and standards
through control. Auditing training programmes, analysing labour
turnover records, directing morale surveys, conducting separate
interviews are some of the means for controlling the HRM function
and making it effective.
II. Operative Functions
The operative functions of human resources management are related to
specific activities of managing employees, viz., employment,
development, compensation and relations. All these functions are
interacted with managerial functions. There are five major operative
functions that HR managers carry out.
With the changing business scenario these are emerging functions which HR
managers carry out. All these functions will be dealt in detail in the
subsequent blocks of the course, however an essence is presented in the
following paragraphs.
1. HR Resourcing: It is the first operative function of Human Resources
Management (HRM). It is concerned with employing the people
possessing the required kind and level of human resources necessary to
achieve the organisational objectives. It covers functions such as job
analysis, human resources planning, recruitment, selection, placement,
induction and orientation.
i) Job Analysis: It is the process of study and collection of information
relating to the operations and responsibilities of a specific job. It
includes:
- Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials.
- Preparation of job description, job specifications, job requirements and employee specifications which will help in identifying the nature, levels and quantum of human resources.
- Providing the guides, plans and basis for job design and for all operative functions of HRM.
ii) Human Resources Planning: It is a process for determination and
assuring that the organisation will have an adequate number of
qualified persons, available at proper times, performing jobs which
would meet the needs of the organisation and which would provide
satisfaction for the individuals involved. It involves:
- Estimation of present and future requirements and supply of human resources based on objectives and long range plans of the organisation.
- Calculation of net human resources requirements based on present inventory of human resources.
- Taking steps to mould, change and develop the strength of existing employees in the organisation so as to meet the future human resources requirements.
- Preparation of action programmes to get the rest of human resources from outside the organisation and to develop the human resources in terms of existing employees.
iii) Recruitment: It is the process of searching for prospective
employees and stimulating them to apply for jobs in an organisation.
It deals with:
- Identification of existing sources of applicants and developing them.
- Creation/identification of new sources of applicants.
- Stimulating the candidates to apply for jobs in the organisation.
- Striking a balance between internal and external sources.
iv) Selection: It is the process of ascertaining the qualifications,
experiences, skills, knowledge etc., of an applicant with a view to
appraising his/her suitability to a job. This function includes:
Framing and developing application blanks.
- Creating and developing valid and reliable testing techniques.
- Formulating interviewing techniques.
- Checking of references.
- Setting up a medical examination policy and procedure.
- Line manager‟s decision.
- Sending letters of appointment and rejection.
- Employing the selected candidates who report for duty.
- Counselling the functional managers regarding placement.
- Conducting follow-up study, appraising employee performance in order to determine employee adjustment with the job.
- Correcting misplacements, if any.
vi) Induction and Orientation: Induction and orientation are the
techniques by which a new employee is rehabilitated in the changed
surrounding and introduced to the practices, policies, purposes and
people etc., of the organisation.
- Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc.
- Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates.
- Mould the employes attitude by orienting him to the new working and social environment.
2. Performance and Development: It is the process of improving,
moulding and changing the skills, knowledge, creative ability, aptitude,
attitude, values, commitment etc., based on present and future job and
organisational requirements.
i) Performance Appraisal: It is the systematic evaluation of
individuals with respect to their performance on the job and their
potential for development. It includes:
- Developing policies, procedures and techniques.
- Helping the functional managers.
- Reviewing of reports and consolidation of reports.
- Evaluating the effectiveness of various programmes.
ii) Training: It is the process of imparting to the employees technical
and operating skills and knowledge.
It includes:
- Identification of training needs of the individuals and the company.
- Developing suitable training programmes.
- Helping and advising line management in the conduct of training programmes.
- Imparting of requisite job skills and knowledge to employees.
- Evaluating the effectiveness of training programmes.
iii) Management Development: It is the process of designing and
conducting suitable executive development programmes so as to
develop the managerial and human relations skill of employees. It
includes:
- Identification of the areas in which management development is needed.
- Conducting development programmes.
- Motivating the executives.
- Designing special development programmes for promotions.
- Using the services of specialists, and/or utilising of the institutional executive development programmes.
- Evaluating the effectiveness of executive development programmes.
iv) Career Planning and Development: It is the planning of one‟s
career and implementation of career plans by means of education,
training, job search and acquisition of work experiences. It includes
internal and external mobility.
v) Internal Mobility: It includes vertical and horizontal movement of
an employee within an organisation.
It consists of transfer, promotion and demotion.
vi) Transfer: It is the process of placing employees in the same level
jobs where they can be utilised more effectively in consistence with their potentialities and needs of the employees and the organisation.
It also deals with:
Developing transfer policies and procedures.
Guiding employees and line management on transfers.
Evaluating the execution of transfer policies and procedures.
vii) Promotion: It deals with upward reassignment given to an employee
in the organisation to occupy higher position which commands
better status and/or pay keeping in view the human resources of the
employees and the job requirements. This function covers.
Formulating of equitable, fair and consistent promotion policies
and procedures.
Advising line management and employees on matters relating to
promotions.
Evaluating the execution of promotion policies and procedures.
viii) Demotion: It deals with downward reassignment to an employee in
the organisation.
Develop equitable, fair and consistent demotion policies and
procedures.
Advising line managers on matters relating to demotions.
Oversee the implementations of demotion policies and
procedures.
ix) Retention and Retrenchment Management: Employers prefer to
retain more talented employees while they retrench less talented
employees. Employers modify existing human resource strategies
and craft new strategies in order to pay more salaries, provide more
benefits and create high quality of work life to retain the best
employees. And managements pay less to the less talented
employees and plan to retrench the misfits as well as unwanted
employees depending upon the negetive business trends.
x) Change and Organisation Development: Change implies the
creation of imbalances in the existing pattern or situation.
Organisation development is a planned process designed to improve
organisational effectiveness and health through modifications in
individual and group behaviour, culture and systems of the
organisation using knowledge and technology of applied behavioural
sciences.
C. Compensation Management:
It is the process of providing adequate,
equitable and fair remuneration to the employees. It includes job
evaluation, wage and salary administration, incentives, bonus, fringe
benefits, social security measures etc.
i) Job Evaluation: It is the process of determining relative worth of
jobs.
- Select suitable job evaluation techniques
- Classify jobs into various categories.
- Determining relative value of jobs in various categories.
ii) Wage and Salary Administration: This is the process of developing
and operating a suitable wage and salary programme. It covers:
Conducting wage and salary survey.
Determining wage and salary rates based on various factors.
Administering wage and salary programmes.
Evaluating its effectiveness.
iii) Incentives: It is the process of formulating, administering and
reviewing the schemes of financial incentives in addition to regular
payment of wages and salary. It includes:
Formulating incentive payment schemes.
Helping functional managers on the operation.
Review them periodically to evaluate effectiveness.
iv) Bonus: It includes payment of statutory bonus according to the
Payment of Bonus Act, 1965 and its latest amendments.
v) Fringe Benefits: These are the various benefits at the fringe of the
wage. Management provides these benefits to motivate the
employees and to meet their life‟s contingencies.
vi) Social Security Measures: Managements provide social security to
their employees in addition to the fringe benefits. These measures
include:
Workmen‟s compensation to those workers (or their
dependents) who involve in accidents.
Maternity benefits to women employees.
Sickness benefits and medical benefits.
Disablement benefits/allowance.
D. Integration:
Practicing various human resources policies and
programmes like employment, development, compensation and
interaction among employees create a sense of relationship between the
individual worker and management, among workers and trade unions
and the management.
It is the process of interaction among human beings. Human relations is
an area of management in integrating people into work situations in a
way that motivates them to work together productively, co-operatively
and with economic, psychological and social satisfaction. It includes:
- Employee engagement
- Understanding and applying the models of perception, personality, learning, intra- and inter-personal relations, intra- and inter-group relations.
- Motivating the employees.
- Boosting employee morale.
- Developing the communication skills.
- Developing the leadership skills.
- Grievance redressal
- Handling disciplinary cases by means of an established disciplinary procedure.
- Counseling the employees in solving their personal, family and work problems and releasing their stress, strain and tensions.
- Providing a comfortable work environment by reducing fatigue, monotony, boredom and industrial accidents.
- Improving quality of work life of employees through participation and other means.
E. Employee Relations:
The term "industrial relations‟ refers to the study
of relations among employees, employers, government and trade unions.
Industrial relations include:
Trade unionism
Collective bargaining
Industrial conflicts
Workers‟ participation in management
Emerging Functions in HRM: Apart from the above mentioned
functions of HRM, these are some emerging functions. Human
Resources Management has been advancing at a fast rate. The recent
trends in HRM include:
Strategic HRM
Ethics and HRM
HR accounting, audit and research and
International HRM
HR outsourcing
