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HUMAN RESOURCE MANAGEMENT

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INTRODUCTION
Human Resource Management is An Art for Businesses,
Science for Corporations, and a Subject for Others....
Human Resource Management (HRM) act as a catalyst for
overall development of nations economy. HRM is a way of
management that links people-related activities to the strategy of
a business or organisation. HRM is often referred to as strategic
HRM. !t has several goals"
#o meet the needs of the business and management (rather
than $ust serve the interests of employees)%
#o link human resource strategies & policies to the business
goals and ob$ectives%
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HUMAN RESOURCE MANAGEMENT
#o find ways for human resources to add value to a
business%
#o help a business gain the commitment of employees to its
values' goals and ob$ectives.
!t is an approach to the management of people in an
organi(ation. )rgani(ations are made up of people i. e employees
and function through them. !t is the human resource which brings
success and prosperity to a business enterprise. Human Resource
Management also called *ersonnel Management' deals with various
problems relating to manpower employed. +uch problems include
personal planning' recruitment and selection' induction'
performance appraisal' employee training and development'
promotions and transfer of employees' compensation payment'
career planning and participative management. #he person who
looks after personnel functions& problems is called
*ersonnel&Human Resource Manager. HRM is relatively a new term
for what was earlier called as personnel management. #he term
HRM got popularity in the ,+- by ./01s. #his is a management
function which helps managers to plan' recruit' select' train'
develop' remunerate and maintain members for an organi(ation.
HRM is the latest nomenclature use to denote personnel
management. #he policies of management relating to personnel
matters&problems are called policies. Human Resource
Management in a 2usiness 3onte4t provides an international focus
on the theory and practice of people management. - thorough and
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comprehensive overview of all the key aspects of HRM' including
case studies' articles from HRM 5uide and other sources' key
concepts' review 6uestions and problems for discussion and
analysis.
The link between Human Resources and Business
trateg!
-ll elements of the business strategy have implications for
human resources' as illustrated in the table below. #he
challenge for management is to identify and respond to these HR
challenges"
Exampes of !e" Strateg"
#ssues
$ossibe Human Resource
#mpications.
7hat markets should the
business compete in8
7hat e4pertise is re6uired in these
markets8 9o e4isting management
and employees theright e4perience
and skills.
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7here the business should be
located to compete optimally8
7here do we need our people8 How
many do we need8
How can we achieve
!mprovements in our unit
production costs to
remain competitive8
How productive is the workforce
currently8 How does this compare
with competitors8 7hat investment
in the workforce (e.g. training'
recruitment) and their e6uipment is
re6uired to achieve the desired
improvement in productivity8
How can the business effect
cultural change8
7hat are the current values of the
workforce8 How can the prevailing
culture be influenced&changed to
help implement a change
programmed8
How can the business respond
to rapid technological change
in its markets8
7hat technological skills does the
business currently possess8 7hat
additional skills are needed to
respond to technological change8
3an these skills be ac6uired through
training or do they need to be
recruited8
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-n important part of HRM is the Human Resources *lan. #he
purpose of this plan is to analyse the strategic re6uirements of the
business in terms of manpower - and then to find a way of
meeting the re6uired demand for labour. #his is the sub$ect of a
separate revision note.
Human Resource Management' in the sense of getting things
done through people. !t:s an essential part of every manager:s
responsibilities' but many organi(ations find it advantageous to
establish a specialist division to provide an e4pert service
dedicated to ensuring that the human resource function is
performed efficiently.
*eople are our most valuable asset is a clich; which no
member of any senior management team would disagree with.
<et' the reality for many organi(ations is that their people remain
under valued
under trained
under utili(ed
poorly motivated' and conse6uently
perform well below their true capability
#he rate of change facing organi(ations has never been greater
and organi(ations must absorb and manage change at a much
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faster rate than in the past. !n order to implement a successful
business strategy to face this challenge' organi(ations' large or
small' must ensure that they have the right people capable of
delivering the strategy.
#he market place for talented' skilled people is competitive and
e4pensive. #aking on new staff can be disruptive to e4isting
employees. -lso' it takes time to develop :cultural awareness:'
product& process& organi(ation knowledge and e4perience for new
staff members.
-s organi(ations vary in si(e' aims' functions' comple4ity'
construction' the physical nature of their product' and appeal as
employers' so do the contributions of human resource
management. 2ut' in most the ultimate aim of the function is to"
ensure that at all times the business is correctly staffed by the
right number of people with the skills relevant to the business
needs' that is' neither overstaffed nor understaffed in total or in
respect of any one discipline or work grade.
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%E&#'A(#O'S O& $ERSO''E) MA'A*EME'(+HRM
1. According to Ed,in &ippo-
=*ersonnel management is the planning' organi(ing' directing
and controlling of the procurement' development' compensation'
integration' maintenance and separation of human resources to
the end that individual' organi(ational and social ob$ectives are
accomplished>.
2. According to *eorge R. (err"-
=*ersonnel management is concerned with the obtaining and
maintaining of a satisfactory and satisfied work force>.
3. According to Michae Armstrong-
=HRM is strategic approach to the ac6uisition' motivation'
development and management of the organi(ations human
resources. !t is develop to shaping an appropriate corporate
culture' and introducing programmes which reflects and support
the core values of the enterprise and ensure its success>.
?. =HRM is a process of bringing people and organi(ations
together so that the goals of each are met. !t is a part of
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management process which is concerned with the management of
human resources in an organi(ation>.
&EA(.RES of HRM -
)rgani(ational management
*ersonnel administration
Manpower management
!ndustrial management
2ut these traditional e4pressions are becoming less common for
the theoretical discipline. +ometimes even employee and industrial
relations are confusingly listed as synonyms' although these
normally refer to the relationship between management and
workers and the behavior of workers in companies.
#he theoretical discipline is based primarily on the assumption
that employees are individuals with varying goals and needs' and
as such should not be thought of as basic business resources' such
as trucks and filing cabinets. #he field takes a positive view of
workers' assuming that virtually all wish to contribute to the
enterprise productively' and that the main obstacles to their
endeavors are lack of knowledge' insufficient training' and failures
of process.
HRM is seen by practitioners in the field as a more innovative
view of workplace management than the traditional approach. !ts
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techni6ues force the managers of an enterprise to e4press their
goals with specificity so that they can be understood and
undertaken by the workforce and to provide the resources needed
for them to successfully accomplish their assignments. -s such'
HRM techni6ues' when properly practiced' are e4pressive of the
goals and operating practices of the enterprise overall. HRM is also
seen by many to have a key role in risk reduction within
organi(ations.
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OB/EC(#0ES Of HRM
)b$ectives are pre-determined goals to which individual or
group activity in an organi(ation is directed. )b$ectives of
personnel management are influenced by organi(ational ob$ectives
and individual and social goals. !nstitutions are instituted to attain
certain specific ob$ectives. #he ob$ectives of the economic
institutions are mostly to earn profits' and of the educational
institutions are mostly to impart education and & or conduct
research so on and so forth. However' the fundamental ob$ective
of any organi(ation is survival. )rgani(ations are not $ust satisfied
with this goal. @urther the goal of most of the organi(ations is
growth and & or profits.
!nstitutions procure and manage various resources including
human to attain the specified ob$ectives. #hus' human resources
are managed to divert and utili(e their resources towards and for
the accomplishment of organi(ational ob$ectives. #herefore'
basically the ob$ectives of HRM are drawn from and to contribute
to the accomplishment of the organi(ational ob$ectives. #he other
ob$ectives of HRM are to meet the needs' aspirations' values and
dignity of individual employees and having due concern for the
socio-economic problems of the community and the country.
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The objecti"es of HR# are as follows$
.. #o create and utili(e an able and motivated workforce' to
accomplish the basic organi(ational goals.
A. #o establish and maintain sound organi(ational structure and
desirable working relationships among all the members of the
organi(ation.
B. #o secure the integration of individual or groups within the
organi(ation by co-ordination of the individual and group goals
with those of the organi(ation.
?. #o create facilities and opportunities for individual or group
development so as to match it with the growth of the organi(ation.
C. #o attain an effective utili(ation of human resources in the
achievement of organi(ational goals.
D. #o identify and satisfy individual and group needs by providing
ade6uate and e6uitable wages' incentives' employee benefits and
social security and measures for challenging work' prestige'
recognition' security' status.
0. #o maintain high employees morale and sound human relations
by sustaining and improving the various conditions and facilities.
E. #o strengthen and appreciate the human assets continuously by
providing training and development programs.
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/. #o consider and contribute to the minimi(ation of socio-
economic evils such as unemployment' under-employment'
ine6ualities in the distribution of income and wealth and to
improve the welfare of the society by providing employment
opportunities to women and disadvantaged sections of the society.
.1. #o provide an opportunity for e4pression and voice
management.
... #o provide fair' acceptable and efficient leadership.
.A. #o provide facilities and conditions of work and creation of
favorable atmosphere for maintaining stability of employment.
Management has to create conductive environment and provide
necessary prere6uisites for the attainment of the personnel
management ob$ectives after formulating them.
#o be socially responsible to the needs and challenges of society
while minimi(ing the negative impact of such demands upon the
organi(ation. #he failure of organi(ations to use their resources for
society:s benefit may result in restrictions. @or e4ample' societies
may pass laws that limit human resource decisions.
)rgani(ational ob$ective. #o recogni(e that HRM e4ists to
contribute to organi(ational effectiveness. HRM is not an end in
itself% it is only a means to assist the organi(ation with its primary
ob$ectives. +imply stated' the department e4ists to serve the rest
of the organi(ation.
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Functional objecti"e$
#o maintain the department:s contribution at a level appropriate
to the organisation:s needs. Resources are wasted when HRM is
more or less sophisticated than the organisation demands. -
department:s level of service must be appropriate for the
organisation it serves.
%ersonal objecti"e$
#o assist employees in achieving their personal goals' at least
insofar as these goals enhance the individual:s contribution to the
organisation. *ersonal ob$ectives of employees must be met if
workers are to be maintained' retained and motivated. )therwise'
employee performance and
satisfaction may decline' and employees may leave the
organisation
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(HE SCO$E O& H.MA' RESO.RCE MA'A*EME'(
#he scope of human resource management outlined below
includes an outline of transformation and development issues'
tentative generic skills re6uired in performing HRM roles' as well
as the roles of a human resource management practitioner (line
management and HRM professionals). 7ith regard to the latter'
the assumption is made that roles are inter-linked and
interdependent' even though these relationships may not be
e4pressly stated in each case.
#ransformation and development issues
Fnowledge management which entails accumulating G capturing
Fnowledge in large organisations for future application G use
(organisation memory)
Reconciliation management
7ork creation as opposed to $ob creation
Manage the transfer of HRM functions and skills to line
management
Marketing of HRM to line management
9evelopment of conte4tual approaches to HRM
Multi-skilling and &or multi-tasking
!ncreased societal responsibility
Managing people in virtual work environments
@ocus on deliverables rather than doable
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9evelop additional means of assessing HRM
-ppreciation and assessment of intellectual capital
#ake HRM from a business partner to a business itself &
Managing HRM as a business unit
-dviser & consultant to line management
upporti"e generic skills
#his is not intended to be final outline of human resource skills
but the following have emerged during the process as important
skills for human resource practitioner to possess. #hese are"
*ro$ect management
3onsulting skills
Hntrepreneurship
+elf management
3ommunication skills
@acilitation skills
*resentation skills
+kills for transforming groups into self-directed mutually
controlled high performing work teams
#rans-cultural skills
Mediation G arbitration skills
@inancial skills
*roblem-solving
9iagnostic skills
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&ore roles in Human Resource #anagement
#he core roles of human resource management are grouped
below into four categories. #he titles of the clusters are tentative'
and are open for comment.
*I-JJ!J5 -J9 )R5-J!+!J5 @)R 7)RF'
*H)*IH -J9 HRM
+trategic perspective
)rganisation design
3hange management
3orporate 7ellness management
*H)*IH -3K,!+!#!)J -J9 9HLHI)*MHJ#
+taffing the organisation
#raining G development
3areer Management
*erformance Management
!ndustrial relations
-9M!J!+#R-#!)J )@ *)I!3!H+ ' *R)5R-MMH+ G *R-3#!3H+
3ompensation management
!nformation management
-dministrative management
@inancial management
HRM 1is2321is HR%
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HRM (Human Resource Management)
HR9 (Human Resource 9evelopment)
-s these two words cannot be one and the same nor synopsis.
#hey are used in different conte4ts and they represent different
concepts. -t the same time HR9 is at the centre of HRM. HR9 is
e4amined in detail elsewhere.
-s a result of the fundamental changes in attitudes'
approaches' outlook' philosophy' perspective and practices
emerged in the personnel area in the form of HRM strategy' it has
become a necessary for every organisation to develop skills'
talent' potentialities' capabilities and active of companys own
people to meet the emerging challenges. Hence HR9 policies have
been adopted by many companies. !t is now-a-days spreading to
many others. HR9 strategies are suppose to bring fourth
necessary changes in skills' capabilities and attitude of people who
are re6uired to cope with the emerging changes. #hus' HR9 has
become an integral part HRM.
#he new HR9 approach' that stress the need for developing
the companys own people to suit the update technology'
modernisation of machinery and e6uipments and changing trends
in attitudes and approaches' necessities to develop individual
employee in accordance with his aspiration and potentialities on
the one hand' and the companys re6uirement on the other. #his is
what the HR9 does. Kuiet often organisation development ()9)
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programs are effectively integrated with the HR9 programs. )
fcourse' )9 programs are the programms which the )9
interventionists prescribed for the effectiveness of the
organisation. !t need not be what the individuals members of the
organisation seek. HR9 interventionists primarily seek to know
what the individuals seek to have' and then try to match it with
the organisational needs. #raining and development programs
from part of )9 while training and development are the most
decisive aspects of HR9 too.
-t present' therefore' the end result of both HR9 and )9 are
pre-received as synonymous. )f course' no change can be
effectively and totally incorporated nor their result achieved'
overnight. !t need constant effort and continuous monitoring for a
considerably long period. #his efforts must go on simultaneously
HRM strategy.
HRM has its various tools like appraisal schemes feedback
system' 6uality circle and organisation development interventions'
#eam-grouping' Mb) ob$ective setting' consensus in decision
making' and so on. -ll such tools are useful in HR9 also at
present' however training programms seem to dominated the HR9
scene. -n effective management information system backed by
information collecting' storing and retrial system and research and
analysis must be the basis for every HR9 program. #his would
enable the organisation to motivate its own people to strive to be
develop in accordance with the organisational needs(e4isting and
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e4pected). #his HRM is the integrated approach to actuating and
managing the companys own people while deals with the process
of developing people in accordance with their aspirations and to
suit the organisational needs. 2oth are not synonyms% the letter is
at the centre of the former' and both are interdependent and
integrated into one system.
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&unctions o1er1ie, and strateg" for HRM
#hese issues motivate a well thought out human resource
management strategy' with the precision and detail of say a
marketing strategy. @ailure in not having a carefully crafted human
resources management strategy' can and probably will lead to
failures in the business process itself.
#hese sets of resources are offered to promote thought'
stimulate discussion' diagnose the organi(ational environment and
develop a sound human resource management strategy for your
organi(ation. 7e begin by looking at the seven distinguishable
functions human resource management provide to secure the
achievement of the ob$ective defined above.
@ollowing on from this overview we look at defining a human
resource strategy.
@inally' some 6uestions are posed in the form of a HRM systems
diagnostic checklist for you to consider' which may prove helpful
for you to think about when planning your development programs
for the human resources in your organi(ation' if they are truly
your most valuable asset.
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Function '$ #anpower planning
#he penalties for not being correctly staffed are costly.
,nderstaffing loses the business economies of scale and
speciali(ation' orders' customers and profits.
)verstaffing is wasteful and e4pensive' if sustained' and it is
costly to eliminate because of modern legislation in respect of
redundancy payments' consultation' minimum periods of notice'
etc. Lery importantly' overstaffing reduces the competitive
efficiency of the business.
*lanning staff levels re6uires that an assessment of present and
future needs of the organi(ation be compared with present
resources and future predicted resources. -ppropriate steps then
be planned to bring demand and supply into balance.
#hus the first step is to take a :satellite picture: of the e4isting
workforce profile (numbers' skills' ages' fle4ibility' gender'
e4perience' forecast capabilities' character' potential' etc. of
e4isting employees) and then to ad$ust this for .' B and .1 years
ahead by amendments for normal turnover' planned staff
movements' retirements' etc' in line with the business plan for the
corresponding time frames.
#he result should be a series of crude supply situations as would
be the outcome of present planning if left unmodified. (#his'
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clearly' re6uires a great deal of information accretion' classification
and statistical analysis as a subsidiary aspect of personnel
management.)
7hat future demands will be is only influenced in part by the
forecast of the personnel manager' whose main task may well be
to scrutini(e and modify the crude predictions of other managers.
@uture staffing needs will derive from"
+ales and production forecasts
#he effects of technological change on task needs
Lariations in the efficiency' productivity' fle4ibility of labor as a
result of training' work study' organi(ational change' new
motivations' etc.
3hanges in employment practices (e.g. use of subcontractors or
agency staffs' hiving-off tasks' buying in' substitution' etc.)
Lariations' which respond to new legislation' e.g. payroll ta4es
or their abolition' new health and safety re6uirements
3hanges in 5overnment policies (investment incentives'
regional or trade grants' etc.)
7hat should emerge from this :blue sky ga(ing: is a :thought
out: and logical staffing demand schedule for varying dates in the
future which can then be compared with the crude supply
schedules. #he comparisons will then indicate what steps must be
taken to achieve a balance.
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#hat' in turn' will involve the further planning of such
recruitment' training' retraining' labor reductions (early
retirement&redundancy) or changes in workforce utili(ation as will
bring supply and demand into e6uilibrium' not $ust as a oneMoff
but as a continuing workforce planning e4ercise the inputs to
which will need constant varying to reflect :actual: as against
predicted e4perience on the supply side and changes in production
actually achieved as against forecast on the demand side.
Function ($ Recruitment and selection of emplo!ees
Recruitment of staff should be preceded by"
-n analysis of the $ob to be done (i.e. an analytical study of the
tasks to be performed to determine their essential factors) written
into a $ob description so that the selectors know what physical and
mental characteristics applicants must possess' what 6ualities and
attitudes are desirable and what characteristics are a decided
disadvantage%
!n the case of replacement staff a critical 6uestioning of the
need to recruit at all (replacement should rarely be an automatic
process).
Hffectively' selection is :buying: an employee (the price being
the wage or salary multiplied by probable years of service) hence
bad buys can be very e4pensive. @or that reason some firms (and
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some firms for particular $obs) use e4ternal e4pert consultants for
recruitment and selection.
H6ually some small organi(ations e4ist to :head hunt:' i.e. to
attract staff with high reputations from e4isting employers to the
recruiting employer. However' the :cost: of poor selection is such
that' even for the mundane day-to-day $obs' those who recruit and
select should be well trained to $udge the suitability of applicants.
#he main sources of recruitment are"
!nternal promotion and internal introductions (at times desirable
for morale purposes)
3areers officers (and careers masters at schools)
,niversity appointment boards
-gencies for the unemployed
-dvertising (often via agents for specialist posts) or the use of
other local media (e.g. commercial radio)
7here the organi(ation does its own printed advertising it is
useful if it has some identifying logo as its trade mark for rapid
attraction and it must take care not to offend the se4' race' etc.
antidiscrimination legislation either directly or indirectly. #he form
on which the applicant is to apply (personal appearance' letter of
application' completion of a form) will vary according to the posts
vacant and numbers to be recruited.
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!t is very desirable in many $obs that claim about e4perience
and statements about 6ualifications are thoroughly checked and
that applicants unfailingly complete a health 6uestionnaire (the
latter is not necessarily in$urious to the applicants chance of being
appointed as firms are re6uired to employ a percentage of disabled
people).
2efore letters of appointment are sent any doubts about medical
fitness or capacity (in employments where hygiene considerations
are dominant) should be resolved by re6uiring applicants to attend
a medical e4amination. #his is especially so where' as for e4ample
in the case of apprentices' the recruitment is for a contractual
period or involves the firm in training costs.
!nterviewing can be carried out by individuals (e.g. supervisor
or departmental manager)' by panels of interviewers or in the
form of se6uential interviews by different e4perts and can vary
from a five minute :chat: to a process of several days. ,ltimately
personal skills in $udgment are probably the most important' but
techni6ues to aid $udgment include selection testing for"
-ptitudes (particularly useful for school leavers)
-ttainments
5eneral intelligence
(-ll of these need skilled testing and assessment.) !n more
senior posts other techni6ues are"
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Ieaderless groups
3ommand e4ercises
5roup problem solving
(#hese are some common techni6ues - professional selection
organi(ations often use other techni6ues to aid in selection.)
#raining in interviewing and in appraising candidates is clearly
essential to good recruitment. Iargely the former consists of
teaching interviewers how to draw out the interviewee and the
latter how to 4rate4 the candidates. @or consistency (and as an aid
to checking that) rating often consists of scoring candidates for
e4perience' knowledge' physical&mental capabilities' intellectual
levels' motivation' prospective potential' leadership abilities etc.
(according to the needs of the post). -pplication of the normal
curve of distribution to scoring eliminates freak $udgments.
Function )$ *mplo!ee moti"ation
#o retain good staff and to encourage them to give of their best
while at work re6uires attention to the financial and psychological
and even physiological rewards offered by the organi(ation as a
continuous e4ercise.
2asic financial rewards and conditions of service (e.g. working
hours per week) are determined e4ternally (by national bargaining
or government minimum wage legislation) in many occupations
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but as much as C1 per cent of the gross pay of manual workers is
often the result of local negotiations and details (e.g. which
particular hours shall be worked) of conditions of service are often
more important than the basics. Hence there is scope for financial
and other motivations to be used at local levels.
-s staffing needs will vary with the productivity of the workforce
(and the industrial peace achieved) so good personnel policies are
desirable. #he latter can depend upon other factors (like
environment' welfare' employee benefits' etc.) but unless the
wage packet is accepted as :fair and $ust: there will be no
motivation.
Hence while the technicalities of payment and other systems
may be the concern of others' the outcome of them is a matter of
great concern to human resource management.
!ncreasingly the influence of behavioral science discoveries are
becoming important not merely because of the widely-
acknowledged limitations of money as a motivator' but because of
the changing mi4 and nature of tasks (e.g. more service and
professional $obs and far fewer unskilled and repetitive production
$obs).
#he former demand better-educated' mobile and multi-skilled
employees much more likely to be influenced by things like $ob
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satisfaction' involvement' participation' etc. than the economically
dependent employees of yesteryear.
Hence human resource management must act as a source of
information about and a source of inspiration for the application of
the findings of behavioral science. !t may be a matter of drawing
the attention of senior managers to what is being achieved
elsewhere and the gradual education of middle managers to new
points of view on $ob design' work organi(ation and worker
autonomy.
Function +$ *mplo!ee e"aluation
-n organi(ation needs constantly to take stock of its workforce
and to assess its performance in e4isting $obs for three reasons"
#o improve organi(ational performance via improving the
performance of individual contributors (should be an automatic
process in the case of good managers' but (about annually) two
key 6uestions should be posed"
what has been done to improve the performance of a person
last year8
what can be done to improve his or her performance in the year
to come8).
#o identify potential' i.e. to recogni(e e4isting talent and to use
that to fill vacancies higher in the organi(ation or to transfer
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individuals into $obs where better use can be made of their abilities
or developing skills.
#o provide an e6uitable method of linking payment to
performance where there are no numerical criteria (often this
salary performance review takes place about three months later
and is kept 6uite separate from .. and A. but is based on the same
assessment).
)n-the-spot managers and supervisors' not HR staffs' carry out
evaluations. #he personnel role is usually that of"
-dvising top management of the principles and ob$ectives of an
evaluation system and designing it for particular organi(ations and
environments.
9eveloping systems appropriately in consultation with
managers' supervisors and staff representatives. +ecuring the
involvement and cooperation of appraisers and those to be
appraised.
-ssistance in the setting of ob$ective standards of evaluation &
assessment' for e4ample"
9efining targets for achievement.
H4plaining how to 6uantify and agree ob$ectives.
!ntroducing self-assessment.
Hliminating comple4ity and duplication.
*ublici(ing the purposes of the e4ercise and e4plaining to staff
how the system will be used.
29
HUMAN RESOURCE MANAGEMENT
)rgani(ing and establishing the necessary training of managers
and supervisors who will carry out the actual evaluations&
appraisals. Jot only training in principles and procedures but also
in the human relations skills necessary. (Iack of confidence in their
own ability to handle situations of poor performance is the main
weakness of assessors.)
Monitoring the scheme - ensuring it does not fall into disuse'
following up on training&$ob e4change etc. recommendations'
reminding managers of their responsibilities.
@ull-scale periodic reviews should be a standard feature of
schemes since resistance to evaluation & appraisal schemes is
common and the temptation to water down or render schemes
ineffectual is ever present (managers resent the time taken if
nothing else).
2asically an evaluation & appraisal scheme is a formali(ation of
what is done in a more casual manner anyway (e.g. if there is a
vacancy' discussion about internal moves and internal attempts to
put s6uare pegs into :s6uarer holes: are both the results of casual
evaluation). Most managers approve merit payment and that too
calls for evaluation. Made a standard routine task' it aids the
development of talent' warns the inefficient or uncaring and can be
an effective form of motivation.
30
HUMAN RESOURCE MANAGEMENT
,e"eloping a HR# strateg!
@aced with rapid change organi(ations need to develop a more
focused and coherent approach to managing people. !n $ust the
same way a business re6uires a marketing or information
technology strategy it also re6uires a human resource or people
strategy.
!n developing such a strategy two critical 6uestions must be
addressed.
7hat kinds of people do you need to manage and run your
business to meet your strategic business ob$ectives8
7hat people programs and initiatives must be designed and
implemented to attract' develop and retain staff to compete
effectively8
!n order to answer these 6uestions four key dimensions of an
organi(ation must be addressed. #hese are"
&ulture$ the beliefs' values' norms and management style of
the organi(ation
-rgani.ation$ the structure' $ob roles and reporting lines of the
organi(ation
%eople$ the skill levels' staff potential and management
capability
31
HUMAN RESOURCE MANAGEMENT
Human resources systems" the people focused mechanisms
which deliver the strategy - employee selection' communications'
training' rewards' career development' etc.
@re6uently in managing the people element of their business
senior managers will only focus on one or two dimensions and
neglect to deal with the others. #ypically' companies reorgani(e
their structures to free managers from bureaucracy and drive for
more entrepreneurial flair but then fail to ad$ust their training or
reward systems.
7hen the desired entrepreneurial behavior does not emerge
managers fre6uently look confused at the apparent failure of the
changes to deliver results. #he fact is that seldom can you focus
on only one area. 7hat is re6uired is a strategic perspective aimed
at identifying the relationship between all four dimensions.
!f you re6uire an organi(ation which really values 6uality and
service you not only have to retrain staff' you must also review the
organi(ation' reward' appraisal and communications systems.
#he pay and reward system is a classic problem in this area.
@re6uently organi(ations have payment systems which are
designed around the volume of output produced. !f you then seek
to develop a company which emphasi(es the product:s 6uality you
must change the pay systems. )therwise you have a contradiction
32
HUMAN RESOURCE MANAGEMENT
between what the chief e4ecutive is saying about 6uality and what
your payment system is encouraging staff to do.
#here are seven steps to developing a human resource strategy
and the active involvement of senior line managers should be
sought throughout the approach.
teps in de"eloping HR# strateg!
tep '$ /et the 0big picture0
,nderstand your business strategy.
Highlight the key driving forces of your business. 7hat are
they8 e.g. technology' distribution' competition' the markets.
7hat are the implications of the driving forces for the people
side of your business8
7hat is the fundamental people contribution to bottom line
business performance8
tep ($ ,e"elop a #ission tatement or tatement of
1ntent
#hat relates to the people side of the business.
33
HUMAN RESOURCE MANAGEMENT
9o not be put off by negative reactions to the words or
references to idealistic statements - it is the actual process of
thinking through the issues in a formal and e4plicit manner that is
important.
7hat do your people contribute8
tep )$ &onduct a 2-T anal!sis of the organi.ation
@ocus on the internal strengths and weaknesses of the people
side of the business.
3onsider the current skill and capability issues.
Ligorously research the e4ternal business and market
environment. High light the opportunities and threats relating to
the people side of the business.
7hat impact will& might they have on business performance8
3onsider skill shortages8
#he impact of new technology on staffing levels8
@rom this analysis you then need to review the capability of
your personnel department. 3omplete a +7)# analysis of the
department - consider in detail the department:s current areas of
operation' the service levels and competences of your personnel
staff.
34
HUMAN RESOURCE MANAGEMENT
tep +$ &onduct a detailed human resources anal!sis
3oncentrate on the organi(ation:s 3)*+ (culture' organi(ation'
people and HR systems)
3onsider" 7here you are now8 7here do you want to be8
7hat gaps e4ists between the reality of where you are now and
where you want to be8
H4haust your analysis of the four dimensions.
tep 3$ ,etermine critical people issues
5o back to the business strategy and e4amine it against your
+7)# and 3)*+ -nalysis
!dentify the critical people issues namely those people issues
that you must address. #hose which have a key impact on the
delivery of your business strategy.
*rioriti(e the critical people issues. 7hat will happen if you fail
to address them8
Remember you are trying to identify where you should be
focusing your efforts and resources.
35
HUMAN RESOURCE MANAGEMENT
tep 4$ ,e"elop conse5uences and solutions
@or each critical issue highlight the options for managerial action
generate' elaborate and create - don:t go for the obvious. #his is
an important step as fre6uently people $ump for the known rather
than challenge e4isting assumptions about the way things have
been done in the past. #hink about the conse6uences of taking
various courses of action.
3onsider the mi4 of HR systems needed to address the issues.
9o you need to improve communications' training or pay8
7hat are the implications for the business and the personnel
function8
)nce you have worked through the process it should then be
possible to translate the action plan into broad ob$ectives. #hese
will need to be broken down into the specialist HR +ystems areas
of"
employee training and development
management development
organi(ation development
performance appraisal
employee reward
employee selection and recruitment
manpower planning
36
HUMAN RESOURCE MANAGEMENT
communication
9evelop your action plan around the critical issues. +et targets
and dates for the accomplishment of the key ob$ectives.
tep 6$ 1mplementation and e"aluation of the action
plans
#he ultimate purpose of developing a human resource strategy
is to ensure that the ob$ectives set are mutually supportive so that
the reward and payment systems are integrated with employee
training and career development plans.
#here is very little value or benefit in training people only to
then frustrate them through a failure to provide ample career and
development opportunities.
HRD
Hmployee needs e4tend beyond the training classroom
!ncludes coaching' group work' and problem solving
37
HUMAN RESOURCE MANAGEMENT
Jeed for basic employee development
Jeed for structured career development
-+#9 changes its name to the -merican +ociety for
#raining and 9evelopment
Reationship Bet,een HRM and HR%
Human resource management (HRM) encompasses many
functions
Human resource development (HR9) is $ust one of the
functions within HRM
Primary Functions of HRM
Human resource planning
H6ual employment opportunity
+taffing (recruitment and selection)
3ompensation and benefits
Hmployee and labor relations
Health' safety' and security
Human resource development.

Secondary HRM Functions


)rgani(ation and $ob design
*erformance management& performance appraisal
systems
Research and information systems.
HRD Functions
#raining and development (#G9)
38
HUMAN RESOURCE MANAGEMENT
)rgani(ational development
3areer development
'. Training and ,e"elopment 7T8,9$
#raining M improving the knowledge' skills and attitudes of
employees for the short-term' particular to a specific $ob or
task M e.g.'
Hmployee orientation
+kills G technical training
3oaching
3ounseling
9evelopment M preparing for future responsibilities' while
increasing the capacity to perform at a current $ob
Management training
+upervisor development
(. -rgani.ational ,e"elopment$
#he process of improving an organi(ations effectiveness
and members well-being through the application of
behavioral science concepts
@ocuses on both macro- and micro-levels
HR9 plays the role of a change agent
).&areer ,e"elopment$
)ngoing process by which individuals progress through
series of changes until they achieve their personal level of
ma4imum achievement.
3areer planning
3areer management
Iearning G *erformance
39
HUMAN RESOURCE MANAGEMENT
&ritical HR, 1ssues
40
HUMAN RESOURCE MANAGEMENT
.. +trategic management and HR9
A. #he supervisors role in HR9
B. )rgani(ational structure of HR9
'.trategic management$
!t aims to ensure organi(ational effectiveness for the
foreseeable future M e.g.' ma4imi(ing profits in the ne4t B to C
years.
HR9 aims to get managers and workers ready for new
products' procedures' and materials.
(. uper"isor:s Role in HR,$
!mplements HR9 programs and procedures.
)n-the-$ob training ()N#).
3oaching&mentoring&counseling.
3areer and employee development.
- =front-line participant> in HR9.
). -rgani.ational tructure of HR, ,epartments$
9epends on company si(e' industry and maturity.
Jo single structure used.
9epends in large part on how well the HR9 manager
becomes an institutional part of the company M i.e.' a
revenue contributor' not $ust a revenue user.
Challenges for HRD
3hanging workforce demographics
3ompeting in global economy
Hliminating the skills gap
Jeed for lifelong learning
Jeed for organi(ational learning
; Framework for the HR, %rocess
41
HUMAN RESOURCE MANAGEMENT
HR9 efforts should use the following four phases (or
stages)"
.. Jeeds assessment
A. 9esign
B. !mplementation
?. Hvaluation
Training 8 HR, %rocess #odel
'.Needs ;ssessment %hase$
Hstablishing HR9 priorities
9efining specific training and ob$ectives
Hstablishing evaluation criteria
(.,esign %hase$
+electing who delivers program
+electing and developing program content
+cheduling the training program

). 1mplementation %hase$
!mplementing or delivering the program
+. *"aluation %hase$
9etermining program effectiveness M
e.g.'
Feep or change providers8
)ffer it again8
7hat are the true costs8
3an we do it another way8
HR9 is too important to be left to amateurs. HR9 should be
a revenue producer' not a revenue user. HR9 should be a
central part of company. <ou need to be able to talk M)JH<.
42
HUMAN RESOURCE MANAGEMENT
43
HUMAN RESOURCE MANAGEMENT
Challenges efore HR Management
!n fact in the face of enornous and the rapid changes in the
business environment in !ndia backed by liberalisation of economy'
globalisation of business' modernisation of technology and large
scale employment' a need e4ist for a fresh look at the human
resources. Multinationals' foreign investors and JR!s entering the
!ndian business in a big way communist countris adopting the path
of capitalism and large scale technology transfer' all such factors
necessitate a wider perspective of human resoures in the days to
come.some of the factors'which pose grater challagenes to the
HRM in future are "
..- larger' faster and greater growth of industriali(ation is
e4pected in the ne4t decade.
A.#here is a possibility for more takeovers' ac6uisations and
mergers in future in !ndia.
B.7ith the presence and influence of more multinational and
tranationals' as well as higher standards and competitions' there is
a possibility for many small indigenous units to be sick
?.#here is a possibility for the emergence of many large and giand
enterprises havening economies of scale' leading the units without
the merits of economies of scale and large scale production to
wind up.
44
HUMAN RESOURCE MANAGEMENT
C.!+) /111 and other international standardi(ation re6uirement
are bound to dictate higher 6uality specification making it difficult
for less 6uality conscious business enterprises to survive.
D.Iarge investment and moderni(ation would re6uire highly skilled
and technically trend people who would replace less train'
unskilled and redundant workforce.
0.!ncreasing number of industrial houses are bound to introduce
scheme for golden handshake.
E.!mport of technology may become more common in the days to
come resulting in increasing re6uirement of highly skill manpower.
/.5reater and greater training needs are bound to be identified for
updating the technological behavior skill.
.1.#here would arise greater needs for interpersonal skill'
behavioral and counciling skills of e4ecutive and hence greater
training needs in his directions are bound to arise.
...5reater privati(ation of business and increase of employment in
the private sector may leads to greater training needs in the
private sector.
.A.Kuality of work life and 6uality circle programmes may receive
greater acceptance.
45
HUMAN RESOURCE MANAGEMENT
HRM Challenges faced y Managers
#he HR Managers of today may find it difficult because of the
rapidly changing business environment and therefore they should
update their knowledge and skills by looking at the organi(ation:s
need and ob$ectives. #he HRM challenges are
'. #anaging the Vision $
Lision of the organi(ation provides the direction to business
strategy and helps managers to evaluate management practices
and make decisions. +o vision management becomes the integral
part of Man management in future.
(. 1nternal en"ironment $
3reating an environment which is responsive to e4ternal changes'
providing satisfaction to the employees and sustaining through
culture and systems is a challenging task.
). &hanging 1ndustrial Relations $
2oth the workers and managers has to be managed by the same
HRM *hilosophy and this is a daunting task for the managers.
46
HUMAN RESOURCE MANAGEMENT
+. Building -rgani.ational capabilit! $
Hven in the adverse circumstances the employees have to be
made to live in psychological state of readiness to continually
change.
3. <ob ,esign 8 -rgani.ational structure $
!nstead of depending on foreign concepts we need to focus on
understanding the $ob' technology and the people involved in
carrying out the tasks.
4. #anaging the large work force $
Management of large workforce poses the biggest problem as the
workers are conscious of their rights.
6. %s!cho=ocial en"ironment $
Jowadays employees participation re6uired not only in performing
$ob but also in democrati(ing and humani(ing the institution.
>. *mplo!ee atisfaction $
Managers should be aware of techni6ues to motivate their
47
HUMAN RESOURCE MANAGEMENT
employees so that their higher level needs can be satisfied.
?. #odern technolog! $
#here will be an unemployment due to modern technology and this
could be corrected by assessing manpower needs and finding
alternate employment.
'@. &omputeri.ed 1nformation !stem $
#his is revolutionary in managerial decision making and is having
impact on coordination in the organi(ation.
''. Aegal en"ironment $
#o meet the changes in legal environment' ad$ustments have to be
made to the ma4imum utili(ation of human resources.
'(. #anaging Human Relations $
-s the workforce comprises of both educated and uneducated'
managing the relations will be of great challenge.
!n spite of all the problems HR Managers are able to
overcome all these problems with the support of management and
48
HUMAN RESOURCE MANAGEMENT
employees. !n the current business world managing employees are
becoming comple4 task and this can be handled effectively only by
our great HR Ieaders.
49
HUMAN RESOURCE MANAGEMENT
)imitation of HRM
Human resource management has its own limitations also.
#hough personnel management has been in practice for 6uite
sometime now' human resource management is of recent origin.
+ome companies have already has their personnel management
departments while some have taken initiative to appoint human
resource managers to look after their personnel function. +uch
superficial actions may not bear much fruit. 7hat is actually
needed is the fundamental change in attitudes' approaches and
the very management philosophy. 7ithout such a change'
particularly at the top management level renaming of personnel
department or predestinating the personnel officer may not serve
the people.
-t least some HR9 people hold the view that HRM people hold
the view that HRM is something very distinct from personnel
management and neglect the importance of personnel
management. #his is very dangerous approach. !t must be
understood that a balanced and integrated approach is necessary.
-ctually speaking the philosophy outlook' attitude' and approach
to the company own people may undergo a change not only of top
management but other levels of management. #hen an integrated
approach is to HRM is necessary that is it becomes the part of the
50
HUMAN RESOURCE MANAGEMENT
personnel management' while the whole personnel function must
be viewed through the human resource angle.
HRM *hilosophy and thrust must come from the top and
accepted by people at all levels. 2ut unfortunately in many
organi(ation top bosses remains passive leaving the HR9 functions
to be carried out by the personal manager waiting for the result to
come. !f good result emerges the credit will go to the
magnanimity of the boss and all the discredit remains with the
personal manager. Hence the personnel manager may look at the
HR9 programme with suspicion. #his is very serious limitation.
Management must be not satisfied with the few training
programme at it happens in some organi(ation now. HRM
functions must constantly strive to determine the actual needs and
an aspiration of the companies own people and plans to satisfy
them' develop their potentiality and use them. 2ut unfortunately
managements productivity and profitability approach still remains
undisturbed in many organi(ations.
HRM is of recent origin as it lacks universally approved academic
base. 9ifferent professionals tent to decline the term in different
ways. ,ntil a general definition is accepted and operational frame
work is universally approved' the approach of the practitioner may
continue this is another draw back. However' a generally accepted
approach is e4pected to emerge in near future because of the
strenuous efforts of HRM professionals and thinkers.
51
HUMAN RESOURCE MANAGEMENT
Most of the HR9 programmers are limited to the classroom
training in many organi(ations. #his is another drawback of HR9.
)n the $ob training developmental programmers' carrier planning
and counseling are used to develop people. -ctually' speaking'
unless a proper learning atmosphere is created no training
programmed would be able to produce e4pected results.
!n many organi(ations ade6uate information and data base may
be lacking. #his is serious threat to accuracy of information without
which HRM practice is difficult. 3ollection storing and retrieval of
information must therefore be given first priority which many
manager neglect.
!n many organi(ations even the personal professionals
misunderstand HRM as synonymous to HR9. +ome classroom
training programmers are generally arranged which are called HR9
programmers. #hese programmers are understood as Human
Resource Management. +uch cursory classrooms are not the
actual HR9 programmers even a well-planned and e4ecuted HR9
programmed is not HRM. HR9 is the only part of HRM' which is
integrated approach to management. Human Resource
Management suffers from such limitation. However' the impact' it
has made on the managerial effectiveness has been spectacular
wherever it was introduce. -ctually speaking a real need e4ists in
every !ndian )rgani(ation for an HRM approach
52
HUMAN RESOURCE MANAGEMENT
*mplo!ment 8 tructural &hanges
Human Resources in 1N,1;
!ndia is a vast country with e6ually vast population' second only
to china. -ccording to official admission about B11 million people
in !ndia are below poverty line. -ccording to planning commission'
an annual income of Rs.0/E1 for rural and Rs./.A1 for urban
areas. -lthough the life e4pectancy has increased during the years
after independence' infant mortality is still very high--/C per .111
births. )ut of every .1 illiterates in the world' three are in !ndia.
Hvery 0 out of .1 illiterates are women. -bout AC O of girls are
illiterate. #he drop-out in school ranged between ?0 and 00 O
during ./EC-ED' according to latest information available. 9uring
the A1 years after the adoption of constitution' the number of
illiterate persons in the country had risen from B11 million in ./C.
to BE0 million in ./0.. -ccording to ./E. census' the literacy rate
continues to be only BDO. +chool dropouts in the case of
scheduled tribes are as much as E0.AO and for scheduled castes
0/O.
!ndia has also got one of the largest child labor populations in
the world' some ?1 million mostly engaged in ha(ardous $obs.
53
HUMAN RESOURCE MANAGEMENT
H,M-J RH+),R3H+ 9HLHI)*MHJ# is not an academic pursuit'
nor isolated from the strategy and pattern of economic
development. #he two are interrelated--one subserves the other.
!t cannot be gainsaid that despite diversified industrial
development during the planning period' the spectacular growth of
public sector in building up infrastructure' growth in agricultural
sector' the vast human resources' urban and rural go largely
wasted and are hardly utili(ed.
HB#;N R*-BR&* ,*V*A-%#*NT
!t should not be confined to short-run narrow sectional
interests' but should have wider perspective of social development
towards a progressive direction for the benefits of our people at
large. -n efficient and satisfied in organi(ational effectiveness and
managerial e4cellence. 9ynamic employees are essential for any
organi(ation that would like to be dynamic and growth-oriented.
H,M-J RH+),R3H+ 9HLHI)*MHJ# aims at developing such
dynamism in employees along with several other 6ualities that in
combination make the organi(ation perform well.
#he central theme in the H,M-J RH+),R3H+ 9HLHI)*MHJ#
approach is the development of the individual and the
development of work groups. #he emphasis has shifted from
=Ma4imi(ation of performances =and compensation towards
employee potential awareness creation and employee potential
54
HUMAN RESOURCE MANAGEMENT
reali(ation. #he *ersonnel function has reduced human resources
in organi(ations history and destiny. #he employees are no longer
cogs in the organisational wheels but as the active agents shaping
not only their own futures but also future of the organisation. #he
H,M-J RH+),R3H+ 9HLHI)*MHJ# approach' therefore'
postulates a proactive rather than a reactive approach.
Human Resources are organic and comple4 and so is their
development. 7hile education is an instrument for the general
development of the individual' H,M-J RH+),R3H+ 9HLHI)*MHJ#
in the conte4t of an organisation refers to the improvement in the
capacities and capabilities of the personnel in relation to the needs
of the organisation. !t involves the creation of a climate in which
the flower of human knowledge' skill' capabilities and creativity
care bloom. !t involves the setting up of systems through which
human capabilities and potential can be identified and topped to
the mutual satisfaction of the individual and the organi(ation.
H,M-J RH+),R3H+ 9HLHI)*MHJ#' in the organi(ational
conte4t' is a process by which employees of an organi(ation are
continuously held in a planned way. Human resources are thought
of as =the total knowledge' skills' creative abilities' talents and
aptitudes of an organisations work-force' as well as the values
and attitudes of an individual involved. !t is the sum total of
inherent abilities' ac6uired knowledge and skills represented by
the talents and aptitudes of the employed persons. =#he H,M-J
RH+),R3H+ 9HLHI)*MHJ# is concerned with the improvement of
55
HUMAN RESOURCE MANAGEMENT
the above said attributes of an individual as well as a group of
persons. !t is the process of increasing the knowledge' the skills
and the capacities of all the people in an undertaking and a
society.
Human resources can be developed by providing formal
education from elementary to the higher level' technical and
professional' on-the-$ob training' adult education programmes'
correspondence or distance education' improvement in the health
of masses through medical facilities and improvement in nutrition.
#he process of economic development tends to be associated
with fundamental structural change in an economy. #hese
structural changes take place in the form of sectoral composition
as wll as occupational structure of the work force. +uch a change
emerges as a result of rising productivity in agriculture and the
industrial and the tertiary sectors. #he si(e of a country and its
population has also an influence on the structural changes in the
the economy brought about by the process of economic growth.
HB#;N R*-BR&*
Human resources are a term used to refer to how people are
managed by organi(ations. #he field has moved from a
traditionally administrative function to a strategic one that
recogni(es the link between talented and engaged people and
organi(ational success. #he field draws upon concepts developed in
56
HUMAN RESOURCE MANAGEMENT
!ndustrial&)rgani(ational *sychology and +ystem #heory. Human
resources have at least two related interpretations depending on
conte4t. #he original usage derives from political economy and
economics' where it was traditionally called labor' one of four
factors of production although this perspective is changing as a
function of new and ongoing research into more strategic
approaches at national levels.
#his first usage is used more in terms of :human resources
development:' and can go beyond $ust organi(ations to the level of
nations. #he more traditional usage within corporations and
businesses refers to the individuals within a firm or agency' and to
the portion of the organi(ation that deals with hiring' firing'
training' and other personnel issues' typically referred to as
:human resources management:.
#;N;/*#*NT
Human resource management:s ob$ective' on the other hand' is
to ma4imi(e the return on investment from the organi(ation:s
human capital and minimi(e financial risk. !t is the responsibility of
human resource managers in a corporate conte4t to conduct these
activities in an effective' legal' fair' and consistent manner.
C*D FBN&T1-N
Human resource management serves these key functions"
.. Recruitment G +election
57
HUMAN RESOURCE MANAGEMENT
A. #raining and 9evelopment (*eople or )rgani(ation)
B. *erformance Hvaluation and Management
?. *romotions&#ransfer
C. Redundancy
D. !ndustrial and Hmployee Relations
0. Record keeping of all personal data.
E. 3ompensation' pensions' bonuses etc in liaison with *ayroll
/. 3onfidential advice to internal :customers: in relation to
problems at work
.1. 3areer development
... 3ompetency Mapping
.A. #ime motion study is related to HR @unction
.B. *erformance -ppraisal
#-,*RN ;N;AD1
Modern analysis emphasi(es that human beings are not
commodities or resources' but are creative and social beings in
a productive enterprise. #he A111 revision of !+) /11. in contrast
re6uires identifying the processes' their se6uence and interaction'
and to define and communicate responsibilities and authorities. !n
general' heavily unioni(ed nations such as @rance and 5ermany
have adopted and encouraged such $ob descriptions especially
within trade unions. #he !nternational Iabour )rgani(ation also in
58
HUMAN RESOURCE MANAGEMENT
A11. decided to revisit' and revise its ./0C Recommendation .C1
on Human Resources 9evelopment.
)ne view of these trends is that a strong social consensus on
political economy and a good social welfare system facilitates labor
mobility and tends to make the entire economy more productive'
as labor can develop skills and e4perience in various ways' and
move from one enterprise to another with little controversy or
difficulty in adapting. -nother view is that governments should
become more aware of their national role in facilitating human
resources development across all sectors.
*#%A-D#*NT TR*N,
-s person BEth round' there were ACC.0 million persons
employed in the Pusual status sense' that is employed for ma$or
part of time of BDC days reference period. @or the purposes of
comparing the BEth round employment estimates with the BAnd
and A0th round employment estimate' an estimate of B..0 million
marginally employed obtained on the basis of usual subsidiary
status of the non-workers was added to ACC.0 million to make it
AE0.? million employed.
#his number constituted ?E.C.O of the respective total
population.in ./00-0E' as per BAnd round' the total employed
which included marginal workers constituted ?A.B?O of the
respective total population. #his indicated an overall increase of
59
HUMAN RESOURCE MANAGEMENT
D..0O in total employment in relation to population during the
period ./00-0E to ./EB.
*&T-R;A &H;N/* 1N 1N,1;
#he sectoral composition of the working force' in general'
indicates the type and level of economic development of the
country. )ne aspect of structural change manifests itself in the
form of a change in the industrial structure involving a greater
shift of the working force to the tertiary sector and that to the
secondary sector from the primary sector of the economy. #he
sectoral composition of the working force which had remined
constant till ./0. is now-changing.
60
HUMAN RESOURCE MANAGEMENT
Current status of HRM in #ndia
1NTR-,B&T1-N
)ver many centuries !ndia has absorbed managerial ideas and
practices from around the world. Harly records of trade' from ?C11
2.3. to B11 2.3.' not only indicate international economic and
political links' but also the ideas of social and public
administration. #his treatise presented notions of the financial
administration of the state' guiding principles for trade and
commerce' as well as the management of people. !ncreasing
trade' that included engagement with the Romans' led to
widespread and systematic governance methods by AC1 -.9.
9uring the ne4t B11 years' the first !ndian empire' the 5upta
9ynasty' encouraged the establishment of rules and regulations
for managerial systems' and later from about .111 -.9. !slam
influenced many areas of trade and commerce. - further powerful
effect on the managerial history of !ndia was to be provided by the
2ritish system of corporate organisation for A11 years. 3learly' the
socio cultural roots of !ndian heritage are diverse and have been
61
HUMAN RESOURCE MANAGEMENT
drawn from multiple sources including ideas brought from other
parts of the old world. !nterestingly' these ideas were essentially
secular even when they originated from religious bases.
!n the contemporary conte4t' the !ndian management
mindscape continues to be influenced by the residual traces of
ancient wisdom as it faces the comple4ities of global realities. )ne
stream of holistic wisdom' identified as the Ledantic philosophy'
pervades managerial behaviour at all levels of work organisations.
#his philosophical tradition has its roots in sacred te4ts from A111
2.3. and it holds that human nature has a capacity for self
transformation and attaining spiritual high ground while facing
realities of day to day challenges (Iannoy ./0.). +uch cultural
based tradition and heritage can have a substantial impact on
current managerial mindsets in terms of family bonding and
mutuality of obligations. #he caste system' which was recorded in
the writings of the 5reek -mbassador Megasthenes in the third
century 2.3.' is another significant feature of !ndian social heritage
that for centuries had impacted organisational architecture and
managerial practices' and has now become the focus of critical
attention in the social' political and legal agenda of the nation.
)ne of the most significant areas of values and cultural
practices has been the caste system. #raditionally' the caste
system maintained social or organisational balance. 2rahmins
(priests and teachers) were at the ape4' Fshatriya (rulers and
warriors)' Laishya (merchants and managers) and +hwdra
62
HUMAN RESOURCE MANAGEMENT
(artisans and workers) occupied the lower levels. #hose outside
the caste hierarchy were called Puntouchables. Hven decades ago'
a typical public enterprise department could be dominated by
people belonging to a particular caste. @eelings associated with
caste affairs influenced managers in areas like recruitment'
promotion and work allocation (Lenkatranam G 3handra .//D).
!ndian institutions codified a list of lower castes and tribal
communities called Pscheduled castes and scheduled tribes. -
strict 6uota system called' Preservation in achieving affirmative
e6uity of castes' has been the eye of political storm in !ndia in
recent years. #he central government has decreed .C per cent of
recruitment is to be reserved for scheduled castes' and a further
seven and half per cent for scheduled tribes. !n addition' a further
A0 per cent has been decreed for other backward castes. However'
the liberalisation of markets and global linkages have created
transformation of attitudes towards human resource (HR) policies
and practices (Fhalil(adeh-+hira(i G Qagha .//?' 5opalan G
Rivera .//0). @aced with the challenge of responding to the
rationale of 7estern ideas of organisation in the changing social
and economic scenario of !ndian organisation' practitioners are
increasingly taking a broader and reflective perspective of human
resource management (HRM) in !ndia.
#his manuscript has three main parts. !n the first part is
provided an overview of important historical events and activity
that has influenced contemporary managerial tenets' the second
63
HUMAN RESOURCE MANAGEMENT
part of the manuscript describes the emerging contemporary
!ndian HRM practices and indicates some interesting challenges.
Much of the second part is also summarised on four informative
@igures. #he concluding section' the third part of the manuscript'
succinctly integrates the two preceding parts.
V;AB* -F &-NT*ET -F HR# 1N 1N,1;
#he managerial ideologies in !ndian dates back at least four
centuries. -rthRshastra written by the celebrated !ndian scholar-
practitioner 3hanakya had three key areas of e4ploration' .) public
policy' A) administration and utilisation of people' and B) ta4ation
and accounting principles (3hatter$ee A11D). *arallel to such
pragmatic formulations' a deep rooted value system' drawn from
the early -ryan thinking' called vedanta' deeply influenced the
societal and institutional values in !ndia. )verall' !ndian collective
culture had an interesting individualistic core while the
civilisational values of duty to family' group and society was
always very important while vedantic ideas nurtured an inner
private sphere of individualism.
#here has been considerable interest in the notion that
managerial values are a function of the behaviours of managers.
Hngland' 9hingra and -garwal (./0?) were early scholars who
contended that managerial values were critical forces that shape
organisational architecture. #he relevance of managerial values in
shaping modern organisational life is reflected in scholarly
64
HUMAN RESOURCE MANAGEMENT
literature linking them to corporate culture (9eal G Fennedy
./EA)' organisational commitment and $ob satisfaction ()Reilly'
3hatham G 3aldwell .//.)' as well as institutional governance
(Mowday' *orter G +teers ./EA). #hus' understanding the source
of these values and in particular societal work values (which link
the macro-micro relationships and in turn organisational practices)
had become a popular line of en6uiry' and a great deal of evidence
has been presented to support the importance of national culture
in shaping managerial values. )ne of the most widely read
formulations of this literature is the seminal work of Hofstede
(./E1) who popularised the notion of clustering culture in generic
dimensions such as power distribution' structuring' social
orientation' and time hori(ons. !n turn' these dimensions could be
employed to e4plain relevant work attitudes' $ob incumbent
behaviors and the working arrangements within organisational
structures. #wo of these dimensions were individualism and
collectivism.
#he traditional social ethos from the ancient roots' which was
developed over centuries' underwent profound transformation
during the 2ritish rule. 3onse6uently' in the contemporary conte4t
multiple layers of values (core traditional values' individual
managerial values' and situational values) have emerged
(3hatter$ee G *earson A111). #hough the societal values largely
remain very much anchored in the ancient traditions they are
increasingly reflecting corporate priorities and values of global
65
HUMAN RESOURCE MANAGEMENT
linkages. 2ut in the arena of globalisation where priorities of
consumerism' technological education' mass media' foreign
investment and trade union culture predominate' newer tensions
are becoming evident. @or instance' contemporary !ndian multi
national companies and global firms in !ndia have started shifting
their emphasis to human resources with their knowledge and
e4perience as the central area of attention in e4tending new
performance boundaries (Fhandekar G +harma A11C).
3onsiderable research evidence attests to this trend with particular
relevance to greenfield organisations with little or no historical
baggages in their organisational culture (+ettt A11?' Roy A11D).
7ithin !ndian traditions the choice of individualistic or
collectivistic behavior depends on a number of culturally defined
variables. #he dynamics of these variables are underpinned
through three key elements guiding !ndian managerial
mindscapes. #hese three constructs are 9esh (the location)' Faal
(the timing)' and *atra (the specific personalities involved). +inha
and Funungo (.//0) claim that the interaction of these three
variables determines the guidelines for decisional cues. #his
managing or nurturing of the outer layer of collectivism in an inner
private sphere of individualism is e4pressed in @igure . which
demonstrates the behavioural anchors in !ndian organisational life.
@igure .
2ehavioral -nchors in !ndian )rganisational Iife
9H3!+!)J-I 9esh Faal *atra
66
HUMAN RESOURCE MANAGEMENT
3,H+ (place) (#iming) (-ctors)
+*!R!#,-I
)R!HJ#-#!)J
+attava guna
(Lirtue focus)
#amas guna
(Jegative focus)
Ra$as guna
(-ction focus)
!J#HR*HR+)
J-I
RHI-#!)J+
+radha
(,pward respect &
Ioyalty)
+neha
(9ownward
affection)
2andhan
(2onding)
@igure . also presents another powerful insight of the !ndian
tradition of the notion of P5una dynamics. -ccording to +harma
(.//D)' this culture based framework' which has three types of
gunas (attraction)' is being increasingly used in employee
assessment and organisational team building strategies. #he
contention is that each guna is a separate contribution to the core
of human personalities. #he +attava (or truth orientation) is the
sentiment of e4alted values in people' organisations or society.
-lternatively' the #amasik guna depicts a negative orientation
which can be e4pressed behaviourally as ignorance' greed or
corruption. #hose individuals with a Ra$asik guna are inherently
driven by a desire to make a worthwhile contribution to their
surroundings. 3ollectively' these spiritual orientations' which
manifest as +attava' #amas or Ra$as gunas' articulate as positive
or negative HRM functions such as leadership' motivation or other
institutional behavioural activity. #he third row of @igure .
highlights the linking of HRM trends to socio cultural roots. #he
67
HUMAN RESOURCE MANAGEMENT
culture of +radha (upward loyalty) and +neha (mentoring with
affection) outline the behavioural anchors derived from the
civilisational roots. #he acceptance of P+radha by youngers and
the display of P+neha by the seniors have been the root of
sustainability of all types of !ndian oragnisations. #his has a
striking similarity to the concepts of Poyabun and Pkobun in the
Napanese cultural conte4t.
&-NT*#%-R;RD 1N,1;
!n a recent survey of !ndian 3H)s' it was suggested that !ndian
managerial leaders were less dependent on their personal
charisma' but they emphasised logical and step by step
implementation processes. !ndian leaders focused on
empowerment and accountability in cases of critical turnaround
challenges' innovative challenges' innovative technology' product
planning and marketing or when other similar challenges were
encountered (+pencer' Ra$ah' Jarayan' Mohan G Iatiri A110).
#hese social scientists contend.
Ieaders in other countries often tell about why they chose a
peculiar person for a certain role per task' detailing the personal
characteristics that made that person right for that situation. #hey
may also consider' in detail' how an assignment would help
someone grow and develop their abilities. !n general' !ndian
leaders simply did not discuss how they matched particular people
to certain roles or tasks' nor did they usually consider in detail how
68
HUMAN RESOURCE MANAGEMENT
the personal characteristics of individuals might shape or inform
the best way to influence that person.
1ndian HR# in Transition
)ne of the noteworthy features of the !ndian workplace is
demographic uni6ueness. !t is estimated that both 3hina and !ndia
will have a population of ..?C billion people by A1B1' however'
!ndia will have a larger workforce than 3hina. !ndeed' it is likely
!ndia will have /ED million people of working age in A1B1' which
well probably are about B11 million more than in A110. -nd by
A1C1' it is e4pected !ndia will have AB1 million more workers than
3hina and about C11 million more than the ,nited +tates of
-merica (,.+.). !t may be noted that half of !ndias current
population of ... billion people are under of AC years of age. 7hile
this fact is a demographic dividend for the economy' it is also a
danger sign for the countrys ability to create new $obs at an
unprecedented rate. -s has been pointed out by Meredith (A110).
7hen !ndias young demographic bubble begins to reach
working age' !ndia will need far more $obs than currently e4ist to
keep living standards from declining. !ndia today doesnt have
enough good $obs for its e4isting workers' much less for millions of
new ones. !f it cannot better educate its children and create $obs
for then once they reach working age' !ndia faces a population
time bomb" #he nation will grow poorer and not richer' with
hundred of millions of people stuck in poverty.
69
HUMAN RESOURCE MANAGEMENT
7ith the retirement age being CC to CE years of age in most
public sector organisations' !ndian workplaces are dominated by
youth. !ncreasing the retirement age in critical areas like
universities' schools' hospitals' research institutions and public
service is a topic of considerable current debate and agenda of
political parties.
#he divergent view' that each society has an uni6ue set of
national nuances' which guide particular managerial beliefs and
actions' is being challenged in !ndian society. -n emerging
dominant perspective is the influence of globalisation on
technological advancements' business management' and
education and communication infrastructures are leading to a
converging effect on managerial mindsets and business
behaviours. -nd when !ndia embraced liberalisation and economic
reform in the early .//1s' dramatic changes were set in motion in
terms of corporate mindsets and HRM practices as a result of
global imperatives and accompanying changes in societal
priorities. !ndeed' the onset of a burgeoning competitive service
sector compelled a demographic shift in worker educational status
and heightened the demand for $ob relevant skills as well as
regional diversity. H4pectedly' there has been a marked shift
towards valuing human resources (HR) in !ndian organisations as
they become increasingly strategy driven as opposed to the culture
of the status 6uo. -ccordingly' competitive advantage in industries
like software services' pharmaceuticals' and biotechnology (where
70
HUMAN RESOURCE MANAGEMENT
!ndia is seeking to assert global dominance)' the significance of
HRs is being emphasised. #hese relativities were demonstrated in
a recent study of three global !ndian companies with (ABC
managers) when evidence was presented that positively linked
the HRM practices with organisational performance. !n spite of this
trend of convergence' a deep sense of locality e4ists creating more
robust Pcross vergence in the conceptual as well as practical
domain.
71
HUMAN RESOURCE MANAGEMENT
Figure (
,ri"ers of &ontemporar! 1ndian HR# Trends
@igure A presents the key drivers for contemporary
!ndian HRM trends. !n @igure A there are four e4ternal spheres of
intervention for HRM professionals and these spheres are
72
HUMAN RESOURCE MANAGEMENT
integrated in a comple4 array within organisational settings. #he
intellectual sphere' which emphasiss the mindset transaction in
work organisations' has been significantly impacted by the forces
of globalisation. !ndeed' 3hatter$ee and *earson (A111) argued'
with supporting empirical evidence from ?A. senior level !ndian
managers' that many of the traditional !ndian values (respect for
seniority' status and group affiliation) have been complemented by
newer areas of attention that are more usually linked to
globalisation' such as work 6uality' customer service and
innovation. #he most important work related attribute of the study
was the opportunity to learn new things at work. +uch cross
verging trends need to be understood more widely as practitioners
face a new reality of human resource development of post
industrial economic organisations.
#he other three spheres' of @igure A' namely the emotional' the
socio cultural and the managerial domains are undergoing' similar
profound changes. @or instance' the socio cultural sphere confronts
the dialects of the national macro level reform agenda as well as
the challenge of innovating by addressing the hygiene and
motivational features of the work place. 3onse6uently' this sphere'
which is underpinned by the anchors of +radha and +neha' has the
opportunity to leverage work setting creativity in dimensions of
autonomy' empowerment' multiskilling and various types of $ob
design. -nd the emotional sphere' which focuses on creativity and
innovation to encapsulate the notions of workplace commitment
73
HUMAN RESOURCE MANAGEMENT
and collaboration as well as favorable teamwork' brings desirable
behavioral elements of transparency and integrity into
organisational procedures and practices. #he managerial sphere
provides the mechanisms for shifting mindsets' for in !ndian
organi(ations. HRM is viewed to be closely aligned with managerial
technical competency. #hus' understanding of the relativity
of HRM to strategic intended organisational performance is less
well articulated in !ndian firms. #he current emphasis of
reconfiguring cadres (voluntary and nonvoluntary redundancy
schemes)' downsi(ing' delayering and similar arrangements will
become less relevant as holistic perspectives gain ground. -
hallmark of future !ndian workplaces is likely to be a dominant
emphasis on managerial training' structural redesign and
reframing of institutional architectures to achieve enterprise
e4cellence. #hus' a primary role of !ndian managers will be to
forge new employment and industrial relationships through
purposeful HRM policies and practices. !n @igure B is presented a
variety of HRM practices that are being employed in !ndian
organisations.
74
HUMAN RESOURCE MANAGEMENT
Progress of !ersonnel management in India
*ersonnel management - #he renewed emphasis on the
importance of human resources in the ./E1s and /1s drew
attention to the way in which people management was organi(ed.
+pecifically' this meant a critical review of the functions of
personnel management.
*ersonnel management has been a recogni(ed function in the
,+- since J3R opened a personnel office in the .E/1s. !n other
countries the function arrived more slowly and came through a
variety of routes. #his e4cerpt from Human Resource Management
in a 2usiness 3onte4t looks at *ersonnel Management from a
historical perspective.
pecialist %ersonnel Functions$
Recruitment - advertising for new employees and liaising with
employment agencies.
+election - determining the best candidates from those who
apply' arranging interviews' tests and references.
*romotion - running similar selection procedures to determine
progression within the organi(ation.
*ay - a minor or ma$or role in pay negotiation' determination
and administration.
75
HUMAN RESOURCE MANAGEMENT
*erformance assessment - coordinating staff appraisal and
counseling systems to evaluate individual employee performance.
5rading structures - as a basis for pay or development'
comparing the relative difficulty and importance of functions.
#raining and development - coordinating or delivering
programmes to fit people for the roles re6uired by the organisation
now and in the future.
7elfare - providing or liaising with specialists in a staff care or
counseling role for people with personal or domestic problems
affecting their work.
3ommunication - providing an internal information service'
perhaps in the form of staff newspapers or maga(ines' handouts'
booklets' videos.
Hmployee Relations - handling disputes' grievances and
industrial action' often dealing with unions or staff representatives.
9ismissal - on an individual basis as a result of failure to meet
re6uirements or as part of a redundancy' downsi(ing or closure
e4ercise' perhaps involving large numbers of people.
Personnel !"#n#s$r$#on % re&or!%'ee(#n) n! "on#$or#n) o* le)#sl$#+e re,-#re"en$s rel$e! $o
e,-l o((or$-n#$#es n! (oss#.l/ (ens#ons n! $0.
#anagement theor!
#he human relations and human factors approaches were
absorbed into a broad behavioral science movement in the ./C1:s
and ./D1:s. #his period produced some influential theories on the
76
HUMAN RESOURCE MANAGEMENT
motivation of human performance. @or e4ample' Maslow:s
hierarchy of needs provided an individual focus on the reasons why
people work. He argued that people satisfied an ascending series
of needs from survival' through security to eventual :self-
actuali(ation:.
!n the same period' concepts of $ob design such as $ob
enrichment and $ob enlargement were investigated. !t was felt that
people would give more to an organi(ation if they gained
satisfaction from their $obs. Nobs should be designed to be
interesting and challenging to gain the commitment of workers - a
central theme of HRM.
2y the ./01s most managers participating in formal
management training were aware of" #heory S and #heory <
(Mc5regor' ./D1)% of Maslow and Her(berg:s motivation theories%
and knew where they should be in terms of the managerial grid
(2lake and Mouton' ./D?). #hese theorists advocated
participative' :soft: approaches to management. However' only a
minority of managers in the ,+- received such training' with even
fewer in other countries. Most operational managers - concerned
with production' engineering' or distribution - had worked their
way up from low-level $obs" they were probably closer in spirit to
@.7. #aylor than the theorists of the ./C1s and ./D1s. #his
contrasted with personnel departments with a higher proportion of
people who had received academic training% additionally'
77
HUMAN RESOURCE MANAGEMENT
:personnel: was an area where women were prevalent - as
opposed to production which was male dominated. 7ere women
naturally more open to human relations concepts than men8
,e"elopment of the personnel specialism
*ersonnel management has been a recogni(ed function in the
,+- since J3R opened a personnel office in the .E/1s. -merican
personnel managers worked within a unitarist tradition' identifying
closely with the ob$ectives of their organi(ation. !t was natural for
HRM to emerge comparatively smoothly from this perspective.
!n other countries the personnel management function arrived
more slowly and came from a number of routes. Moreover' its
orientation was not entirely managerial. !n 2ritain its origins can
be traced to the :welfare officers: employed by Kuaker-owned
companies such as 3adburys. -t an early stage it became evident
that there was an inherent conflict between their activities and
those of line managers. #hey were not seen to have a philosophy
compatible with the worldview of senior managers. #he welfare
officer orientation placed personnel management as a buffer
between the business and its employees. !n terms of
:organi(ational politics: this was not a politically viable position for
individuals wishing to further their careers' increase their status
and earn high salaries.
78
HUMAN RESOURCE MANAGEMENT
#anagement thinking
Iike fashions in hairstyle and clothing' management ideas come
and go. #oday:s best-selling management concept will not survive
long before being overtaken by the ne4t :big idea:. +ignificantly'
however' a consistent theme has prevailed for more than two
decades" the most successful organi(ations make the most
effective use of their people - their human resources.
#he emergence of HRM was part of a ma$or shift in the nature
and meaning of management towards the end of the twentieth
century. #his happened for a number of reasons. *erhaps most
significantly' as we will see in *art A of this book' ma$or
developments in the structure and intensity of international
competition forced companies to make radical changes in their
working practices .
@rom the ./01s onwards' managers in the industriali(ed
countries felt themselves to be on a roller-coaster of change'
e4pected to deliver improved business performance by whatever
means they could muster. #heir own careers and rewards were
increasingly tied to those improvements and many were
dispatched to the ranks of the unemployed for not acting 6uickly
and imaginatively enough. 3aught between the need to manage
decisively and fear of failure' managers sought credible new ideas
as a potential route for survival.
79
HUMAN RESOURCE MANAGEMENT
CONC"USION
80
HUMAN RESOURCE MANAGEMENT
#he 7orld 3ompetitiveness Report rated !ndias human resource
capabilities as being comparatively weaker than most -sian
nations. #he recognition of world class human resource capability
as being pivotal to global success has changed !ndian HRM
cultures in recent years. 7hile the historical and traditional roots
remain deeply embedded in the sub$ective world of managers'
emphasis on ob$ective global concepts and practices are becoming
more common. #hree very different perspectives in HRM are
evident. @irstly' !ndian firms with a global outlook% secondly'
global firms seeking to adapt to the !ndian conte4t% and thirdly'
the HRM practice in public sectors undertakings (*+L+). -s the
!ndian economy becomes more globally linked' all three
perspectives will move increasingly towards a cross verging
strengthening. !nterestingly' within the national conte4t' !ndia
itself is not a homogenous entity. Regional variations in terms of
industry si(e' provincial business culture' and political issues play
very relevant roles. #he nature of hierarchy' status' authority'
responsibility and similar other concepts vary widely across the
nations synerging system maintenance. !ndeed' organisational
performance and personal success are critical in the new era.
C#S$ STUD%&'
81
HUMAN RESOURCE MANAGEMENT
Ra$asthan steel manufacturing company is a well established
company manufacturing and marketing steel furniture items. #he
head office of the company is at Naipur and the plant is also
located near Naipur. Jearly .?1employee are working in the plant.
#he foundry of the plant provides employment to A? workers
and use high technical e6uipment. However foundry has always
been regarded as one of the worst places to work in steel
manufacturing units. #he same is the position in Ra$asthan steel
manufacturing company. #he atmosphere of the foundry is hot'
dirty and tense. *hysical fitness is the basic re6uirement of the
workers for working in the foundry. #echnical education'
intelligence' skill' etc. are secondary $ob re6uirement. However as
per the $ob evaluation plan of the company. =*hysical ability> and
=working condition> are weighted relatively lower than =training>'
=skill> and =responsibility>. -s a result' most of the $ob in the
foundry rated at the bottom of the wage scales of the company.
#he people working in the foundry are low paid and have low
status among the total labour force of the company.
!n the course of the last two years' the company finds it difficult
to get workers for foundry work. ,nsuitable person are appointed
because of the non-availability of suitable person such unsuitable
person work for one or two months and leave the $ob due to hard
82
HUMAN RESOURCE MANAGEMENT
work' unsuitable work atmosphere and low wage rate. #he labour
turnover is also high in the case of foundry workers' which reduce
the sale. Lacancies are always available but $ob seekers rarely
accept foundry $obs. !n the same months' out of A? workers
re6uired' only C to .1 workers working and .C to A1 posts are
vacant. !n spite of all efforts' the personal manager finds its
difficult to appoint ade6uate staff for the foundry. *eople not
getting $ob elsewhere accept foundry $obs but are eager to leave
foundry $obs immediately when any other $ob are available. #his
situation affects the foundry work. #he unit works slowly creating
inconvenience to other departments. #he 6uality of production is
inferior and minor accidents are also common. Jow recruitment for
foundry is a continuous problem before the personnel manager.
!n Nune A11A' the situation in the foundry was e4tremely bad.
)ut of AC workers re6uired' only seven workers were working. #he
pending work was substantial and other departments were
complaining due to limited supply of material from the foundry.
)ne new worker from the foundry was caught in an accident on
.1
th
Nune A11A. He died in the hospital after five days. #he
company is mew facing police case in this regard. -ll efforts for
appointment of new workers are ineffective due to low wage rate
offered to foundry $obs.
83
HUMAN RESOURCE MANAGEMENT
#he general manager of the company has noted the seriousness
of the problem. He instructed personnel manager to give
immediate attention to this urgent problem. He also assured that
the management is willing to take all necessary steps to solve this
problem of foundry department. #he personal manager was asked
to make his recommendation within ten days. #he personal
manager Mr. +amant has difficult task. However he can now make
suitable recommendation to solve the problem on permanent
basis.
Mr. +amant studied the whole issue once again and submitted
his concrete recommendation to the general manager.
T.U 7hich policy of the company increases the labour turnover
ratio8
TAU How the high labor turnover ratio increases the cost and
reduces the sale8
TBU 7hich' of the following' is the appropriate measure for
solving the present problem8
F'G 2hich polic! of the compan! increases the labor
84
HUMAN RESOURCE MANAGEMENT
turno"er ratioH
-ns" #here are various polices of the company which increases
the worker turnover ratio are as "

V.W #hey use high technical e6uipment but weighted on
=*hysical ability> and =working condition> and not on
=training>' =skill> and =responsibility>.

VAW Iow wages scales

VBW Iow status among the total labor force of the company.

V?W ,nsuitable work atmosphere for worker
9ue to these polices of the company' workers leave the $obs
with in two to three month% this is the main reason for high labor
turnover ratio.
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85
HUMAN RESOURCE MANAGEMENT
F(G How will the high labour turno"er ratio increases the
cost and reduces the saleH
-ns" #his can be e4plained with the help of triangle diagram"
#he right side of the triangle shows the e4ternal marketing i.e.
setting promises. !t is the normal activity of the firm to develop
price' promotion and distribute the service offering to the
86
&-#%;ND
*Iternal #arketing 1nternal #arketing
1nteracti"e #arketing
*#%A-D** &BT-#*R
HUMAN RESOURCE MANAGEMENT
customers. -nything that is communicated to the customers
before service delivery is seen as a part of e4ternal marketing.
!n the figure at the bottom of the triangle is !nteractive
marketing or real-time marketing' where the focus is on the skills
of the employees in handling customers contact. Here the actual
service delivery takes place and the firms employees interact
directly with the customers. 3ustomer $udges the service 6uality
not only on the basis of the technical 6uality of the product-service
package' but also by its functional 6uality. Hence' having a
positive link between what is delivered through e4ternal marketing
and what is delivered through internal marketing is useless if
promises cannot be kept.
#he left side of the triangle shows the internal marketing i.e.
enabling the promise. #he internal marketing activities of the firm
are to train and motivate its employees to work as a team in order
to deliver the service. !t emphasi(es on the critical role that
enables the employee to keep the promises made to the customer.
!n an organi(ation every single individual plays some role in
marketing' a product or service' and therefore any effort by the
organi(ation by way of training in product handling' customer
knowledge' product knowledge etc. Motivation is an internal
marketing tool. Hmployee satisfaction and customer satisfaction
are closely linked. #herefore' services marketing #riangle will
collapse' if service employs are unable to deliver the promises
87
HUMAN RESOURCE MANAGEMENT
made' which in turn would adversely affect customer satisfaction
and e4pectations.
2ut in the case of the Ra$asthan steel manufacturing company'
they not motivated the employee by providing the good working
environment% training facilities' fair wages rate.
*erson work for one or two months and leave the $ob due to
hard work' unsuitable work atmosphere and low wage rate and for
a new appointed worker company not provide any training facilities
so that the new appointed worker not liable to complete his $ob
and supply the raw-material to his internal customer with in a sate
time period which increase the cost of production and reduce the
sale because when we marketing the our product that time we
promise the customer to supply good 6uality of product with in a
time period' if we not supply the product
with in a fi4ed period that time customer canceling the order.
9ue to cancellation of the order sale of the company is decline.

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HUMAN RESOURCE MANAGEMENT
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F)G ;s a human resource manager what appropriate
measure will !ou follow for sol"ing the present problemH
-ns" #he appropriate measures for solving the present problem
are
T-U !mprovement in the working condition of factory.

T2U !ncrease in the wages rate of factory workers.

T3U -ppointing the right worker for right $ob.

T9U *rovide training facilities.

THU Motivate the employee by delegation of authority.
89
HUMAN RESOURCE MANAGEMENT
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Bibiograph"
Human Resource Management
% Lipul *rakashan
Human Resource Management
% @isher' +choenfeldt' +haw
90
HUMAN RESOURCE MANAGEMENT
Human Resource 9evelopment
- *. *. -rya' 2. 2. #andon
Management *aradise *ublication.
7ikipedia.
Human Resource Management G Human Relation
% 9r. L. *. Michael
Himalaya *ublications
Human Resource Management
% Mir(a +. +aiyadain
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Meeting %etais
91
HUMAN RESOURCE MANAGEMENT
.) 9-#H- AE&10&A11/ 9ay " #uesday
#ime " A..C-A.?1pm Lenu- Iibrary
#opic " - brief discussion about topic
Roll Jo. 5roup Members +!5J
1? +heshnath 2arai (Ieader)
1B Renu 2a$a$
.? *ratiksha 5aikwad
B? Laibhav *armar
?? -niket +atam
C? *ratik 7aghmare
A) 9-#H- B1&10&A11/ 9ay " #hursday
#ime " ..?C-A.A1pm Lenu- Iibrary
#opic " Reffered different books
Roll Jo. 5roup Members +!5J
1? +heshnath 2arai (Ieader)
1B Renu 2a$a$
.? *ratiksha 5aikwad
B? Laibhav *armar
?? -niket +atam
C? *ratik 7aghmare

B) 9-#H- ..&1E&A11/ 9ay " #uesday
#ime " ..?C-A.A1pm Lenu- Iibrary
#opic " #opics were distributed to each member
92
HUMAN RESOURCE MANAGEMENT
Roll Jo. 5roup Members +!5J
1? +heshnath 2arai (Ieader)
1B Renu 2a$a$
.? *ratiksha 5aikwad
B? Laibhav *armar
?? -niket +atam
C? *ratik 7aghmare
?) 9ate- 10&1/&A11/ 9ay " Monday
#ime " ..?C-A.A1pm Lenu- Iibrary
#opic " 3ase +tudy discussed
Roll Jo. 5roup Members +!5J
1? +heshnath 2arai (Ieader)
1B Renu 2a$a$
.? *ratiksha 5aikwad
B? Laibhav *armar
?? -niket +atam
C? *ratik 7aghmare

C) 9ate- .C&1/&A11/ 9ay " #uesday
#ime " A.B1-B..Cpm Lenu- Iibrary
#opic " 3omplete #opic +tudy discussed
Roll Jo. 5roup Members +!5J
93
HUMAN RESOURCE MANAGEMENT
1? +heshnath 2arai (Ieader)
1B Renu 2a$a$
.? *ratiksha 5aikwad
B? Laibhav *armar
?? -niket +atam
C? *ratik 7aghmare
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For more project reports, Notes etc.
94

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