Human Resource Management

Submitted by: Amandeep Kaur

Contribution of Human Resource Management in achievement of organisational objectives

Human Resource Management seeks to achieve - Individual, Social Organizational Goals: Organization is a social unit that is composed of number of people and function through people only. All the resources such as men, money, materials and machinery are collected, co-ordinate and fictionalized by the people. Without human efforts, no organization can achieve its goals. Therefore, this resource is called human resource, which is the most significant resource of any organization. We also consider that human resource become unending source of ability, power, skill, efficiency, knowledge, creativity for accomplishment of organizational objectives and also play crucial role in management process. These days, organizations have realized that the most valuable asset in the organization is its people. The growth of an organization depends on talent of its human assets as people act as change agents for the implementation of any initiatives in an organization.(Baptiste, 2004) Human resource management is a set of policies, practices and programs formulated to achieve both personal and organizational goals as it is the process of binding people and organizations together. According to Flippo, Human Resource Management the planning, organizing, directing and controlling of the various aspect of human resources to the end that individual, organizational and social objectives are accomplished. Human resource Management is also known by different names such as Personnel management, Manpower management, Staff management, Personnel administration etc.

According to National Institute of personnel management in India, HRM is the part of management concerned with people at work and with their relationships within the organization. Objectives

Increase morale and good human relation within the organization. Maintain the quality of work life. Maintain policy and behavior in an organization. Increase job satisfaction so that organizational goals achieve economically.

To achieve organizational goals provides well-trained and well motivated employee.

Promote effective utilization of human resources that is the primary goals of Human Resource Management. (Baptiste, 2004)

All these objectives help to achieve individual, organizational, social goals. Importance of Human Resource Management Importance of Human Resource Management can be explained at four levels such as corporate, social, national, professional etc. Corporate importance: Through Human Resource Management, an organization can achieve its goals more efficiently and effectively in the following ways: a) Motivating and retaining the required talent by effective human policies such as human resource planning, recruitment,

resource

selection, placement, orientation, compensation and promotion etc. b) Developing the necessary skills through training and development, performance appraisal etc among the employees.
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c) Establish the willing co-operation of employees through motivation and participation. (Baptiste, 2004) Effective Human Resource Management provides facilitation to improve the quality of work life and teamwork among employees through better healthy working environment. The professional growth can be achieved in the following ways: a) Facilitating maximum opportunities for individual growth of each

employee. b) Establishing healthy relationships between individual and different work groups.

Box-1: Role of Human Resource Manager Source: (Gupta , 2004)

Human Resource Manager play an important role in investing in employee development and also assisting employees to prepare themselves for internal positions in an organization.

Recruitment: Function of HR Manager starts with recruitment of personnel. If properly managed, the recruitment system determines the needs, skills and recruit the person at right time to meet organizational needs.
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Retention: Retention is another aspect of HR Manager which keeps the records of all the employees about the nature of the job, department etc. Retirement: Maintain all the necessary formalities for providing various retirement packages.

Figure1: Function of Human Resource

Source: Compiled by author We consider that Human Resource Management is the central subsystem of an organization as it continuously interacts with all other subsystems of an organization. In all subsystems the quality of people mainly depends on the various policies , programs and practices of HRM subsystem which determines in turn the success of an organization. Box-2: HRM as central subsystem in an organization

Source: Murdick, and Thomas C.Fuller (1979) Functions of Human Resource Management Human Resource Management function mainly goes through by 2 things: 1. By Whom i.e Human Resource Department or Human Resource Manager. 2. By What i.e. Human Resource Policy. (Murdick and Fuller, 1979) The management of Human These Resources functions consists are of several to all interrelated functions. common

organization. It is mainly divided into two categories: Managerial Function: Managing people is the important aspect of every manager so like other managers; a human resource manager performs the various functions such as: Planning - Planning is a deciding stage that what is to be done exactly. As it involves identification of alternatives and decision making. Organizing - Organizing includes identification and grouping of work activities.

Staffing - People could be the dynamic elements of management so without proper sort of people things will remain immaterial. It involves communication, Counseling. Directing - Relates to all levels of management that includes guiding, supervising, communication, motivation, leadership. (Murdick and Fuller, 1979) Co-coordinating - Concerned with the unifying the action of a group of people. Controlling - Involves some restriction, corrective action, handling situation. (Murdick and Fuller, 1979) Operating Functions: These functions is concerned with specific activities of procurement, developing, compensating & maintaining an efficient work force. Procurement function: Concern with the right kind and right number of people required to accomplishment the organizational objectives. It consists of the following activitiesJob Analysis - Job analysis identify the nature of job and what type of people required to perform these job effectively. Job description and job specification are prepared with the help of information provided by job analysis. Recruitment - Recruitment is the process of identifying prospective employees, stimulating, encouraging them to apply for a particular job or jobs in an organization.

Selection - Selection is the process of examining the applicants with regard to their suitability for the given job and choosing the best from the suitable candidates. Human Resource Planning - Human resource planning is the process of estimating the present and future manpower requirements of the organization. Placement -The selected candidates are assigned to a specific job known as placement. Orientation/Induction - Orientation is the process of introducing new employees to an organization that includes introducing new employee to an existing employee, in their specific jobs and departments. (Murdick and Fuller, 1979) Development function: Human Resource Development is the process of improving the knowledge, skill, and values of employees so that they can perform the present and future job more effectively. The activities are as suchPerformance Appraisal - Performance Appraisal is a systematic

evaluation of present potential capabilities of personnel. It is a process of collecting, analyzing and evaluating data relative to job behavior and results of individuals. (Murdick and Fuller, 1979) Training - Training is an organized procedure for improving the knowledge and skill of the employees for doing a particular job or for a definite purpose. Through training people learn and acquire new skills and job knowledge. Career planning and development - Career planning and development involve the planning for the career of employees and implementing these plans. It is only possible through promotions and transfers.
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Compensation functions: Provides appropriate remuneration to employees for their contribution to achieve organizational objectives. It consists of the following activitiesJob evaluation - Job evaluation is a process of determining the relative with of a job. Salary Administration - Salary Administration is to determine the salary structure for various jobs in the organization. (Murdick and Fuller, 1979) Maintenance function: Maintenance function is concerned with promoting the physical and mental health of employees by providing various facility and social security. All the functions of Human Resource Management are performed in conjunction with each other. (Murdick and Fuller, 1979)

Box-4: Function of Human Resource Management

Source: Partha Sarathi Das(2005)

ROLE

OF

NESTLE

IN

VARIOUS

HUMAN

RESOURCE

MANAGEMENT ACTIVITIES
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The Nestl People Development Review Nestl is today the worlds leading food company, with a 135-year history and operations in virtually every country in the world. Our principal assets are not office buildings, factories, or even brands. Rather, it is the fact that we are a global organisation ethnic comprised all of many nationalities, religions, and backgrounds working

together in one single unifying corporate culture. Our culture unifies people on all continents, with roughly half our factories and people located in the developing world. One of the most important parts of Nestles business strategy and culture is the development of human capacity in each country where we operate. As described in The Nestl Sustainability Review (published with Nestles 2001 Management Report),Nestles business model is to establish strong national and regional companies. We begin by offering free educational assistance and loans to dairy farmers, then building factories, educating managers, technical staff, and factory personnel, and then maintaining long-term relationships with them. This model, which started first in the developing world in Brazil in the 1920s, has now been extended to scores of countries, including Mexico, Philippines, India, Pakistan, and the Peoples
Bulcke, 2009)

Republic of China .( Paul

The average number of years of service at retirement is 27 years (in the top 20 countries that employ 80% of our people), and we believe that one of the basic reasons that our employee turnover is so low (less than 5% per year) is that we help people grow in their personal capabilities on an ongoing basis. A survey carried out in 2002 covering over 180 000Nestl employees around the world showed that 65% received some form of training during that year. This amounted to over 354 000 days of formal training. 27% of the training was at factory production level; 61% of the training was given by internal trainers, the rest by external providers. (Das, 2005)

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Indeed, learning is an integral part of our company culture. This is firmly stated in The Nestl Human Resources Policy, a totally new policy that encompasses the guidelines that constitute a sound basis for efficient and effective human resource management. People development is the driving force of the policy, which includes clear principles on non-discrimination, the right of collective bargaining as well as the strict prohibition of any form of harassment. The policy deals with recruitment, remuneration and training and development and a and emphasises to individual life-long responsibility, learning as strong required leadership commitment

characteristics for Nestl managers. Das, 2005) The willingness to learn is therefore an essential condition to be employed by Nestl. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his/her position. The Nestl Culture: Values and Principles Regarding People NESTLES overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential. HRM in NESTLE offers following development programmes to their employees Literacy Training Most of Nestls people development programmes assume a good basic education on the part of our employees. However, in a number of countries, we have decided to offer employees the opportunity to upgrade their essential literacy skills. A number of Nestl companies have therefore set up special programmes for those who, for one reason or another, missed a large part of their elementary schooling. In Mexico 83 employees are currently involved in the basic education programme. This effort was started some 15 years ago and has now
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expanded to include Primary and High School courses in several factories. As the level of technology in Nestl factories has steadily risen, the need for training has increased at all levels. Much of this is on-the-job training to develop the specific skills to operate more advanced equipment. For example, more flexibility and more independence among work teams are sometimes needed if equipment is to operate at maximum efficiency. (Nestle annual report 2008-09) A special remedial programme has been designed and put in place for them: ABET, Adult Based Education Training. As a result, it involves a two-hour session twice a week; one hour is donated by Nestl from the working day, the other is in the employees time. The objective is to prepare workers to operate new equipment and production methods. This requires the ability to read, write and do basic calculations. This process is part of what is called the Mission-directed Work Team approach. (Paul Bulcke,2009) Nestles Apprenticeship Programme Apprenticeship programmes have been an essential part of Nestl training since the companys foundation in 1867. In addition to running its own apprenticeship programmes, in 1959 Nestl was also one of the founding members of Swisscontact, a non-governmental organisation dedicated to training people in developing countries. Since its creation, Swisscontact has trained around 200 000 apprentices and a total of over 700 000 persons in total. In the 1960s, as Nestl companies began to experience strongly accelerating growth rates, it was clear that they would have to rely more and more on locally trained people at all levels. Currently some 1115 Nestl apprentices are training around the world, either in joint programmes or those entirely run by the company. These positions are highly sought after, as they offer the promise of higher responsibilities and pay. At least 20 times that number of applications is received each year.(Zuma,2004)

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Life After Work At Nestl we believe that the employees private and professional life should have a good balance. This helps attract and retain people and reconciles economical imperatives with wellbeing. Nestl is willing to support employees who wish to take an active part in the life of the community by assuming responsibilities in professional, civic, cultural, religious or voluntary organisations. In the same spirit, Nestl encourages flexible working conditions whenever possible and encourages its employees to have interests and motivations outside work. Everyone has to find their own balance between work and other activities, but as a company we encourage all our employees to pursue interests outside the workplace. Sports are the natural favourite and most Nestl units sponsor at least one football team. The other most popular sports vary according to the country concerned, but cricket, baseball, tennis, sailing and golf are all on the list. There is good evidence that many people succeed in finding a good work / life balance at Nestl because an unusually high percentage of employees have stayed with the company for most of their working life. Because of this, we feel a special responsibility to help them prepare for and enjoy their retirement when it arrives. (Nestle annual report 2008-09) Data source The main quantitative and qualitative information is based on answers to questionnaires that were sent to the training managers in all countries and regions where there are operations. Additional information was based on interviews with heads of various departments at the Corporate Centre in Human Resources, Environmental Affairs, Public Affairs, Quality Management, Agricultural Services and Consumer Services, and on consolidated information where available. (Nestle annual report 200809)

The three key HRM activities of NESTLE are:14

1) Training and Development

Nestls NQ (Nutrition Quotient) training programme equips people with the right nutrition skills and insights to make informed choices for themselves and their families. As part of our overall commitment to training and learning,

Employees undertake a general Foundation Module, while those with product development or product communication responsibilities attend further advanced and specialised workshops. Twelve different modules in numerous local versions had already been deployed by the end of 2009, each representing between four to eight hours of learning. More than 121 360 employees around the world have undergone NQ training to date. To supplement classroom and workshop sessions for the Foundation Module, we deployed an interactive e-learning programme version in 2009; in 2010, we will launch an innovative approach for our hard-toreach audiences, such as factory-based employees. Since nutrition training is now a continuous effort at Nestl, follow-up campaigns and tools have been put in place and will be renewed on a regular basis . (Veritas,2010)

2) REMUNERATION
Nestl favours competitive, stimulating and fair remuneration structures offering an overall competitive and attractive compensation package. Remuneration includes salary, any variable part of remuneration as well as social, pension and other benefits. Nestls policy is to strive to position itself as an employer offering remuneration levels above the average of the relevant benchmark. Nestl reviews regularly its competitive position with other companies so as to keep in line with the market trends. However, the evolution of remuneration is in the first instance determined by the capacity of the Company to improve its productivity. Wage and salary structures should be kept simple and avoid unnecessary complexity so as to provide effective compensation and reward. Remuneration structures should specifically facilitate the implementation of flat organisational

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structures and be flexible so as to be able to adapt to the evolution of the market conditions. (Nestle annual report 2008-09) It is the responsibility of each manager to propose, within the framework of the company policy, the remuneration of her/his employees, taking into account the local market, individual performance, skills and potential for development. It is also the responsibility of each manager, if needed with the support of HR management, to communicate properly, clearly and with sufficient transparency, the individual remuneration of each staff member taking into account her/his professional performance and her/his specific responsibilities. The HR management sees to it that the implementation of the remuneration policy is fair throughout the organisation and that its spirit is duly reflected. ( Peter

Brabeck,2006)

3) RECRUITMENT
The long-term success of the Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis. This is a primary responsibility for all managers. The Nestles policy is to hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. Each new member joining Nestl is to become a participant in developing a sustainable quality culture which implies a commitment to the organisation, a sense for continuous improvement and leaves no place for complacency. Therefore, and in view of the importance of these Nestl values, special attention will be paid to the matching between a candidates values and the Company culture. (Nestle annual report 2008-09) Hence, a clear communication of these principles and values from the very beginning of the recruitment process is required. Those who are not willing to adhere to the Corporate Business Principles and/or to the Nestl Management and Leadership Principles cannot be part of the Company, as both these documents express the basic values and principles of the
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Organisation. Moreover, for managerial positions specific leadership qualities and business acumen will be required. Nestl wishes to maintain and develop its reputation as an employer of high repute. Contacts with universities, attendance at recruitment events and other contacts are to be undertaken so as to ensure good visibility of the Company vis--vis relevant recruitment sources. As mentioned in the Nestl Management and Leadership Principles, only relevant skills and experience and the adherence to the above principles will be considered in employing a person. No consideration will be given to a candidates origin, nationality, religion, race, gender or age. It is as important to hire the right person as it is to integrate newcomers in the organisation so that their skills and behaviour can merge smoothly with the company culture. Whereas from new employees it is expected to respect our companys culture, it is accordingly required from all employees to show an open mind towards new ideas and proposals coming from outside.(Paul Bulcke,2006)

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Nestl Careers website

There is a dedicated Nestl Careers website where one can find out about vacancies, the recruitment process and how to submit the CV. following links can be used for the same. Join Nestl Worldwide Join Nestl in Switzerland The

Human Resource Management - Two Models

For any social group to perform its tasks efficiently and achieve its common objectives, the management of its most important resources the people - is of utmost importance. Until about the 1970s the task of finding and controlling people was handled by Personnel Management which was largely an administrative function, dealing with the management and control of subordinates. The concept of Human Resource Management developed with a more strategic level of thinking about the nature and role of people (as total 24hr per day human beings) working in organisations which are cultures in their own right (Lundy o,1994)

Recent thinking has moved from the control-based model to the compliance model. The soft edge of the latter involves eliciting employee commitment and expecting effectiveness and efficiency to follow. The hard edge of the latter involves ridding the organisation of unnecessary layers of middle management which, when stripped of control functions, have very little by way of value added

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Conclusion
In this computerization and automation world, machine is useless without proper sort of people to run it. So Human Resource management has become play very significant role in recent decades. This significance have takes place in the social, economic, technological environment of administration. HRM professionals will have to act as change agents to build up learning organization and ability to learn from experimentation and experience and transfer the learning to all human resources for greater organizational effectiveness. Human Resource Management is tends to be an integral part of overall company function. It is a proactive as it involves on going strategy for continuous development of functions and policies for the purposes of improving companys workforce. So from above discussion we know about how Human Resource Management helps by linking various functions in a structure way such as performance management and training to departmental aims and values.

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References
C.B.Gupta (2004), Human Resource Management, Sixth Edition ,Sultan Chand & Sons. Murdick, and Thomas C.Fuller (1979), Subsystems for MIS, Journal of Systems Mangament, Partha Sarathi Das(2005), Organizational Behavior ,First Edition ,Alok publications. Lundy O (1994) ,Personnel Management to Strategic Human Resource Development, International Journal of Human Resource Management Vol 5 pp 687-720 Nicole Renee Baptiste, (2008) "Tightening the link between

employee wellbeing at work and performance: A new dimension for HRM", Management Decision, Vol. 46 Iss: 2, pp.284 309 John Storey, (1995) "Is HRM catching on?", International Journal of Manpower, Vol. 16 Iss: 4, pp.3 10 Peter Brabeck, Paul Bulcke (2006) In annual general meeting.

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