HUMAN RESOURCE:

 ORGANISATIONS ARE MADE UP OF PEOPLE AND FUNCTION THROUGH

PEOPLE
 FACTORS OF PRODUCTION- MEN,MATERIAL,MONEY AND MACHINERY
 ACCORDING TO L.F.URWICK “BUSINESS HOUSE ARE MADE OR BROKEN
IN THE LONG RUN NOT BY MARKETS OR CAPITAL,PATENTS OR
EQUIPMENT BUT BY MEN”
 MANPOWER DOES NOT DEPRECIATE WITH THE PASSAGE OF TIME
 NATIONAL VIEW POINT:
 HUMAN RESOURCE IS DEFINED AS “THE KNOWLEDGE
,SKILLS,CREATIVE ABILITES,TALENTS AND APTITUDES OBTAINED IN
THE POPULATION”

CHARACTERISTICS OF HUMAN RESOURCE:

1) HR ARE THE PRODUCTS OF THEIR OWN BIOLOGICAL INHERITANCE.

2)HR ARE HETROGENEOUS

3)HUMAN RESOURCE ARE DYNAMIC

4)IMPORTANT ELEMENT OF THE ORGANISATION

5)GREATEST POTENTIAL

6) HR IS A WIDER TERM

CONCEPT OF HUMAN RESOURCE MANAGEMENT:

DEFINED AS SET OF POILICES, PRACTICES AND PROGRAMMES

DESIGNED TO MAXIMIZE BOTH PERSONAL AND ORGANISATION GOALS.

ACCORDING TO FLIPPO

“HRM IS THE PLANNING, ORGANISING, DIRECTING AND CONTROLLING OF THE

PROCUREMENT, DEVELPOMNENT, COMPENSATION, INTEGRATION,
MAINTENANCE AND REPRODUCTION OF HUMAN RESOURCES TO THE END
THAT INDIVIDUAL, ORGANISATIONAL AND SOCIAL OBJECTIVES ARE
ACCOMPLISHED

CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT:

 1) COMPREHENSIVE FUNCTION

2)PEOPLE ORIENTED

3)ACTION- ORIENTED

4)INDIVIDUAL ORIENTED

5)DEVELOPMENT ORIENTED

6) PERVASIVE FUNCTION

7)CONTINIOUS FUNCTION

8) FUTURE ORIENTED

9) CHALLENGING FUNCTION

10)SCIENCE ASWELL AS ART

11)STAFF FUNCTION

12)YOUNG DISCIPLINE

13) INTERDISCIPLINARY

14) NERVOUS SYSTEM

Organizational goals are strategic objectives that a company's management establishes to

outline expected outcomes and guide employees' efforts.

They guide employee efforts, justify a company's activities and existence, define performance
standards, provide constraints for pursuing unnecessary goals and function as behavioral
incentives.

Job satisfaction or employee satisfaction is a measure of workers' contentedness with their

job, whether they like the job or individual aspects or facets of jobs, such as nature of work or
supervision.
Job satisfaction is defined as the extent to which an employee feels self-motivated, content &
satisfied with his/her job. Job satisfaction happens when an employee feels he or she is
having job stability, career growth and a comfortable work life balance. This implies that the
employee is having satisfaction at job as the work meets the expectations of the individual.

Quality of work life (QWL) refers to the favourableness or unfavourableness of a job

environment for the people working in an organisation.

Quality of work-life or QWL can be defined as the total quality of an employee's work-life
at an organization.

Not only QWE is tied to happier employees but also better business results. When the quality
of work-life is stable, productivity is bound to increase. So does the level of employee
retention. All in all, it seeks to benefit employees, their families, and the organization as well.

High morale can be described as a positive attitude and high satisfaction levels towards work,
coupled with the willingness to freely give one’s best in the workplace. High morale results
in confidence in one’s work and the ability to weather minor setbacks on the job.

Employee morale is the relationship that a particular employee or a group of employees have
with their work and the organization they work for. High employee morale means that
employees are happy, and this is reflective in the kind of work they produce. On the other
hand, low employee morale results in less productivity and pessimism among employees. It is
important for every organization to continually keep employee morale high.

Ethical policies are guidelines for all employees of a company to do the right thing and
behave at high standards at all times. Good ethical policies create a good culture based on
trust and transparency.

Major Challenges Faced by Human Resource Managers

Some of the major challenges faced by human resource managers are as follows: 1.
Recruitment and Selection 2. Emotional and Physical Stability of Employees 3. Balance
Between Management and Employees 4. Training, Development and Compensation 5.
Performance Appraisal 6. Dealing with Trade Union.
1. Recruitment and Selection:
Finding a suitable candidate for the job from a large number of applicants is a basic problem
for the human resource manager. They have to make suitable changes from time to time in
the selection procedure and see to it that the candidate is up to the mark fulfilling the job
requirements. If required, the candidate should be provided with training to get quality
results.

2. Emotional and Physical Stability of Employees:

Providing with wages and salaries to employees is not sufficient in today’s world. The human
resource manager should maintain proper emotional balance of employees. They should try
to understand the attitude, requirements and feelings of employees, and motivate them
whenever and wherever required.

3. Balance Between Management and Employees:

The human resource manager has a responsibility to balance the interest of management and
employees. Profits, commitment, cooperation, loyalty, and sincerely are the factors expected
by management, whereas better salaries and wages, safety and security, healthy working
conditions, career development, and participative working are the factors expected by
employees from management.

4. Training, Development and Compensation:

A planned execution of training programmes and managerial development programmes is
required to be undertaken to sharpen and enhance the skills, and to develop knowledge of
employees. Compensation in the form of salary, bonus, allowances, incentives and
perquisites is to be paid according to the performance of people. A word or letter of
appreciation is also to be given, if some of them have done their jobs beyond expectations to
keep their morale up.

5. Performance Appraisal:
This activity should not be considered a routine process by the human resource manager. If
employees are not getting proper feedback from them, it may affect their future work. A
scientific appraisal technique according to changing needs should be applied and the quality
of it should be checked from time to time.

6. Dealing with Trade Union:

Union members are to be handled skillfully as they are usually the people who oppose the
company policies and procedures. Demands of the union and interests of the management
should be matched properly.

7. Recruiting talented employees:

Attracting talent is a huge investment of time and money. It’s difficult for entrepreneurs to
balance between keeping a business running, and hiring the right people at the right time. In
addition, it’s impossible to know whether a candidate will actually be a good fit until they’ve
worked for you for a period of time.

8. Retaining talented employees:

Competition for talented employees is fierce. Startups and small companies don’t have big
budgets for retirement plans, expensive insurance plans, and other costly items that their
larger competitors do—at least, not yet. Employee turnover is expensive and can negatively
impact business growth.

Onboarding is highly effective for employee. Research shows having a structured onboarding
process means employees are 58 percent more likely to stay with a company for three years
or more. Read our article on 5 Employee Onboarding Technology Solutions Your Company
Needs to Be Using to learn about your options.

Onboarding; also known as organizational socialization, is management jargon first

created in the 1970s that refers to the mechanism through which new employees acquire the
necessary knowledge, skills, and behaviors in order to become effective organizational
members and insiders.[1] In the United States, for example, up to 25% of workers are
organizational newcomers engaged in an onboarding process.[2]

Tactics used in this process include formal meetings, lectures, videos, printed materials, or
computer-based orientations that outline the operations and culture of the organization that
the employee is entering into. This process is known in other parts of the world as an
'induction'[3] or training

9. Workforce Diversity:
Multiple generations. Ethnic and cultural differences. These are just a few of the many factors
that make workplace diversity a continual challenge for small businesses. The risk of lawsuits
for failing to protect employees from harassment is real.

Creating a culture of teamwork and respect will keep the work environment positive and
productive. In addition, implementing a diversity training program is a must. Employers are
responsible for setting standards of behavior in the workplace. Standards and a system of
accountability should be set up early on

10. Adapting to innovation:

Technology is constantly changing. Businesses must be quick to adapt, or risk being left in
the dust by their competitors. The challenge for small business owners is getting employees
to embrace innovation and learn new technology.

Communication is critical. With any change, make sure your team understands the why,
when, and how. Set clear goals for the adoption of initiatives, and provide employees with the
training they need to get comfortable with it.

11. Leadership development:

A recent study showed more than a third of companies are doing an average job, at best,
at implementing leadership development programs. Thirty-six percent of companies surveyed
in Brandon Hall Group’s State of Leadership Development Study admitted that their
leadership development practices are below average.
Solution:
Leadership development is critical in keeping your management team engaged and
motivated, and prepares them to take on more responsibilities in the future. Make it part of
the culture. Create opportunities for them to use their strengths every day. Accomplishing
goals will motivate them and give them a chance to develop their skills.

12. Management Changes:

As a business grows, its strategies, structure, and internal processes grow with it. Some
employees have a hard time coping with these changes. A lot of companies experience
decreased productivity and morale during periods of change.

Solution:
Business owners should focus on communicating the benefits of the change for everyone.
Regular staff meetings are a good place to start. When your team understands the why, how,
and when of the change, they’ll be more likely to get on board.

Human Resource Management Models

Four major models have been identified for human resource management and all these serve
many purposes.

1. They provide an analytical framework [Analytical frameworks are designed to

structure an analystʼs thinking, and to help logical thinking in a systematic manner. In
short, analytical frameworks are models that aim to guide and facilitate sense making
and understanding. An analytical framework is often presented visually] for studying
Human resource management (for example, situational factors, stakeholders, strategic choice
levels, competence)

2. They legitimize (Legitimate- Reasonable and acceptable) certain HRM practices; a

key issue here is the distinctiveness of HRM practices: “It is not the presence of selection or
training but a distinctive approach to selection or training that matters”.

3. They provide a characterization of human resource management that establishes

variables and relationships to be researched.

4. They serve as a heuristic device-something to help us discover and understand the world
for explaining the nature and significance of key HR practices.

The four HRM models are: (i) The Fombrun, (ii) The Harvard, (iii) The Guest, and (iv)
The Warwick.

The Fombrun, Tichy and Devanna Model

Being the first model (dates back to 1984), this emphasizes just four functions and their
interrelatedness. The four functions are selection, appraisal, development, and rewards. These
four constituent components of human resource management and are expected to contribute
to organizational effectiveness.
The Fombrun model is incomplete as it focuses on only four functions of HRM and ignores
all environmental and contingency factors that impact HR functions.

The Harvard Model

The Harvard model claims to be comprehensive in as much as it seeks to comprise six critical
components of HRM. The dimensions included in the model are stakeholders, interests,
situational factors, HRM policy choices, HR outcomes, long-term consequences, and a
feedback loop through. The outputs flow directly into the organization and the stakeholders

The Guest Model

Yet another human resource management model was developed by David Guest in 1997 and
claims to be much superior to other models. The details will justify the claim. This model
claims that the HR manager has specific strategies to begin with, which demand certain
practices and when executed, will result in outcomes. These outcomes include behavioral,
performance-related, and financial rewards.

The model emphasizes the logical sequence of six components: HR strategy, HR practices,
HR outcomes, behavioral outcomes, performance results, and financial consequences.
Looking inversely, financial results depend on employee performance, which in turn is the
result of action-oriented employee behaviors. Behavioral outcomes are the result of employee
commitment, quality, and flexibility, which, in turn, are impacted by HR practices. HR
practices need to be in tune with HR strategies which are invariably aligned with
organizational strategies.

The claim of the Guest model that it is superior to others is partly justified in the sense that it
clearly maps out the field of HRM and delineates the inputs and outcomes. But the dynamics
of people management are so complex that no model (including the Guest model) can capture
them comprehensively.

The Warwick Model

This model was developed by two researchers, Hendry and Pettigrew of the University of
Warwick (hence the name Warwick model). Like other human resource management models,
the Warwick proposition centers around five elements

 Outer context (macro-environmental forces)

 Inner context (firm-specific or microenvironmental forces)
 Business strategy content
 HRM context
 HRM content
The Warwick model takes cognizance of business strategy and HR practices (as in the Guest
model), the external and internal context (unlike the Guest model) in which these activities
take place, and the process by which such changes take place, including interactions between
changes in both context and content

The strength of the model is that it identifies and classifies important environmental
influences on HRM. It maps the connection between the external and environmental factors
and explores how human resource management adapts to changes in the context. Obviously,
those organizations achieving an alignment between the external and internal contexts will
achieve performance and growth.