The history of development of HR management in India is a comparatively of recent origin.
But Kautilya had dealt with some of the important aspects of human resources management in his Arthasastra, written in 400 B.C. government in those days adapted the techniques of H.R.M. as suggested by kautilya.
RECENT DEVELOPMENTS:--
Recent developments in the area of H.R.M. includes : Treating the employees as economic, social, psychological and spiritual men and women. The important aspects of development of human resources management in India are: 2000 Emphasis has been shifted towards empowerment of employees. 2001 Emphasis has been on smart sizing of the organization. 2002 Emphasis has been shifted to positive attitude of the candidate/employee rather than the skill and knowledge. 2003 shift from intelligent quotient to emotional quotient 2004 shift from skilled workers to knowledge workers. 2005 shift from hierarchical structure to flexible and virtual structures. 2006 HRM has become the core of strategic management level. 2007 The concept of HRM has been relegated to human capital management.
FUNCTIONS OF HRM:--
The functions are classified into two types. (1) Managerial functions (2) Operative functions. Managerial functions include Planning, Organising, Directing, Controlling. Operative functions include Employment, Human resource, Development, Compensation, Human relations, Industrial relations, recent trends in HRM.
1. Planning: It is a predetermined course of action. In other words, it involves planning of human resources, requirements, recruitment, selection, training etc, it also involves forecasting of personnel needs, changing values, attitudes and behavior of employees and their impact on the organization. 2. Organizing: In the words of J.C.Massie, an organization is a structure and a process by which a co-operative group of human beings allocates its task among its members, identifies relationships, and integrates its activities towards a common objective. 3. Directing: The next logical function after completing the planning and organizing is the execution of plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing effective co- operation of employees for the attainment of the organizational goals is possible through proper direction. 4. Controlling: The performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of the organization. Controlling also involves checking, verifying and comparing of the actuals with the plans, identifications of deviations if any and correcting of identified deviations.
Operative functions:
1. Employment: it is the first Operative function of HRM. Employment is concerned with securing and employing the people possessing the required king and level of human resources necessary to achieve the organizational objectives. (i) Job Analysis: it is the process of study and collection of information relating to the operations and responsibilities of a specific job. (II) Human Resources planning: it is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. (iii) Recruitment: it is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. (iv) Selection: it is the process of ascertaining the qualifications, experiences, skills, knowledge etc, of an applicant with a view to appraising his/her suitability to a job. (v) Placement: it is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employee specifications with job requirements. (vi)Induction and Orientation: these are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people etc,. of the organization.
2. Human Resources Development: it is the process of improving, moulding and changing the skills, knowledge create ability and so on. It includes (i) Performance appraisal: it is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. (ii) Training: it is the process of imparting to the employees technical and operating skills and knowledge. (iii) Management Development: it is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees. (iv)Career Planning and Development: it is the planning of ones career and implementation of career plans by means of education, training, job search and acquisition of work experiences. (v) Internal mobility: it includes vertical and horizontal movement of an employee within an organization. It consists of transfer, promotion and demotion. (vi) Transfer: it is the process of placing employees in the same level jobs where they can be utilized more effectively in consistence with their potentialities and needs of the employees and the organization. (vii) Promotion: it deals with upward reassignment given to an employee in the organization to occupy higher position which commands better status and/or pay keeping in view the human resources of the employees and the job requirements. (viii) Demotion: it deals with downward reassignment to an employee in the organization.
3.Compensation : it is the process of providing adequate, equitable and fair remuneration to the employees. (i) job evaluation: it is the process of determining relative worth of jobs. (ii) wage and salary administration: this is the process of developing and operating a suitable wage and salary programme. (iii) Incentives: it is the process of formulating, administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary.. (iv) Bonus: it includes payment of statutory bonus according to the payment of bonus act , 1965 and the latest amendments. (v) Fringe Benefits: Management provides these benefits to motivate the employees and to met their life contingencies. (vi) Social Security Measures: Managements provide social security to their employees in addition to the fringe benefits. It includes maternity benefits to women employees, disablement benefits/allowances, dependent benefits etc,. 4. Human Relations: it includes Motivating the employees Boosting employee morale Developing communication skill Providing a comfortable environment 5. Industrial relations: it includes Indian labour market trade unionism Collective bargaining 6. Recent Trends in HRM: it includes Total quality in human resources HR accounting, audit and research
MEANING AND OBJECTIVES OF HUMAN RESOURCES PLANNING
In simple terms, HRP means deciding the number and type of the human resources required for each job, unit and the total company for a particular future date in order to carryout organizational activities. According to Leon C.Megginson, HRP is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members.
OBJECTIVES OF HRP: 1. To recruit and retain the human resources of required quantity and quality. 2. To meet the needs of the programmes of expansion, diversification, etc,. 3. To improve the standards, skills, knowledge, ability, discipline etc,. 4. To assess the surplus or shortage of human resources and take measures accordingly. 5. To maintain congenial industrial relations by maintaining optimum level and structure of human resources. 6. To estimate the cost of human resources.
FACTORS AFFECTING THE HRP:
External Factors are 1. Government policies. 2. Level of economic development 3. Business Environment 4. Information technology 5. level of technology 6. International factors
Internal Factors are 1. Strategies of the company 2. Human resources policy 3. Job analysis 4. Time horizons 5. Type and quality of information 6. Companys production/operations policy 7. trade unions
1. Government Policies: it includes labour policy, industrial relations policy, policy towards reserving certain jobs to different communities and sons-of the-soil etc,. 2. Level Of Economic Development: it determines the level of HRD in the country and thereby the supply of human resources in the future in the country. 3. Business Environment: External Business Environmental factors influence the volume and mix of production and thereby the future demand for human resources. 4. Information Technology: The computer-aided design and computer-aided technology also reduced the existing human resources. 5. Level Of Technology: it determines the kind of human resources required. 6. International Factors: International Factors like the demand for and supply of human resources in various countries.
1. Company Strategies: Companys policies and strategies relating to expansion, diversification, alliances etc,. determine the human resources demand in terms of quality. 2. Human resources policies: Human resources policies of the company regarding quality of Human resources, compensation level, quality of worklife etc,. influence Human resources plan. 3. Job Analysis; fundamentally Human resources plan is based on job analysis, job description and job specification. Thus the job analysis determines the kind of employees required. 4. Time horizons: companies with a suitable competitive environment can plan for the long run, whereas firms with an unstable competitive environment can plan for only short-term range. 5. Type and quality of information: any planning process needs qualitative and accurate information. This is more so with Human resources plan. 6. Companys production/operations policy: companys policy regarding how much to produce and how much to buy from outside to prepare a final product influences the number and kind of people required. 7. Trade unions: influence of trade unions regarding the number of working hours per week, recruitment sources etc,. affect HRP.
PROCESS OF HUMAN RESOURCES PLANNING:
Process of Human resources planning consists of the following steps:
1. Analyzing the corporate and unit level strategies. 2. Demand Forecasting: Forecasting the overall Human resources requirements in accordance with the organizational plans 3. Supply Forecasting: Obtaining the data and information about the present inventory of Human resources and forecast the future changes in the Human resources inventory. 4. Estimating the net Human resources requirements 5. In the case of future surplus, plan for redeployment, retrenchment and lay-off. 6. In case of future deficit, forecast the future supply of Human resources from all sources with references to plans of other companies. 7. Plan for recruitment, development and internal mobility if future supply is more than or equal to the net Human resources requirements. 8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements.
REDEPLOYMENT PROGRAMMES:
1. Outplacement: Outplacement programmes also intended to provide career guidance for displaced employees. This programmes covers retaining the prospective displaced employees who can be redeployed else where in the organization, helping in resume writing, interview techniques, job searching etc,. 2. Employment in the sister Organization: The surplus employees are offered in sister organizations either at the similar level or at the lower level under the same management. This programme is undertaken when the jobs are vacant in the sister organizations.
REDUNDANCY OR RETRENCHMENT PROGRAMMES:
1. Reduced work hours: Under this technique each worker work less hours and receives less pay, so that the jobs are saved. 2. Work sharing: Some Organizations offer employees the opportunity to share jobs or two employees work half time each. This technique solves the problem of retrenchment in the short run. 3. Layoffs: Layoffs can be temporary or permanent. Temporary layoffs are due to the slackness in business, machinery breakage, power failure etc,. workers are called back as soon as work resumes to the normal position. Permanent layoffs is due to liquidation of the company. 4. Voluntary retirement or early retirement: Government of India introduced Voluntary Retirement Scheme(VRS) under the caption Golden Handshake in order to solve the problem of overstaffing in the public sector. 5. Compulsory retirement or Iron handshake: Under this programme, the HR manager, with the help of the line manager, identifies surplus employees and discharges them from the service. 6. Creation of ad-hoc projects: Some companies create ad-hoc projects in order to provide employment to the surplus staff for a short span of time.