Management and Human Resources Development

Introduction To Human Resource Management 

Every business unit needs human resource (manpower) for the conduct of different business activities. In fact, no organisation can exist or operate efficiently without the support of human resource. Such human resource includes top level managers, executives, supervisors and other subordinate / lower level staff / employees. A business organisation has to estimate its future manpower needs and adjust its manpower planning and development programmes accordingly. This is called 'staffing' function of management. Human resource management is also described as personnel management or manpower management.

According to Edwin Flippo, "Personnel Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and social goals".

Various areas such as recruitment and selection, wage payment and industrial relations are covered under human resource management.

Meaning of Human Resource 

In an industrial unit, large number of persons are employed in order to conduct various operations and activities. This is treated as human resource or manpower employed. A business unit needs material resources as well as human resource for the conduct of various activities. Of all the "M"s in management (such as Materials, Machines, Methods and Money) the most important "M" stands for Men i.e., manpower working in the organisation. It is through manpower/employees that all other ingredients of an enterprise-money, machines, materials, marketing, etc., are managed. In brief, Human Resource (HR) constitutes the most important and the most productive resource of an industrial / business unit.

It is rightly said that "machines are important in the production process but the man behind the machines is more important". He transforms the lifeless factors of production into useful products. Human resource (HR) is an important asset of a business unit. Well-trained, loyal and efficient team of workers brings success and stability to a business unit. This suggests the importance of human resource in business. People and the organisation in which they work are inter-related and interdependent. organisation moves towards prosperity only by using its available human resource purposefully. Similarly, employees get various monetary and other benefits through the prosperity of their organisation.

What is Human Resource Development? HRD 

Human Resource Development (HRD) means to develop available manpower through suitable methods such as training, promotions, transfers and opportunities for career development. HRD programmes create a team of well-trained, efficient and capable managers and subordinates. Such team constitutes an important asset of an enterprise. One organisation is different from another mainly because of the people (employees) working therein. According to Peter F. Druker, "the prosperity, if not the survival of any business depends on the performance of its managers of tomorrow." The human resource should be nurtured and used for the benefit of the organisation.

Importance of Human Resource in Management 

Human resource is most important resource in management and needs to be used efficiently. This is because success, stability and growth of an organisation depend on its ability in acquiring, utilizing and developing the human resources for the benefit of the organisation. In the final analysis, it is the people (i.e employees) who produce promising results and generate a climate conductive to the growth and development of an organisation. HR is a highly productive corporate asset and the overall performance of companies and corporations depends upon the extent to which it is effectively developed and utilised. It is the most delicate factor of production and need not be treated merely as a commodity to be bought and used in factories.

According to Peter Drucker, "The function of management is to manage managers, workers and work". The importance of manpower in business management is now universally accepted. Employees have a capacity to grow and develop, if suitable opportunities are offered. They give positive response to monetary and non-monetary incentives, training opportunities, favorable work environment and motivation. According to Pigors and Myers, "Good management means getting effective results with people". This suggests the importance of human resource.

Human resource is certainly important even in this age of extensive use of computer technology. This is because machine cannot be used as a substitute for human brain which has capacity to think, assess and react. It is correct to say that man is a power rather than man has a power. Progressive / professional managements invest huge funds on training and development of human resource and this suggests the importance of human resource and its contribution in industrial and economic development. Professionally managed companies in India such as Larsen and Toubro Ltd, TELCO, Reliance, etc., give special importance and good attention to HRD.

The following remark of Shri Dhirubhai Ambani, former chairman of Reliance Industries Ltd. (made in the 21st AGM held on 3/8/95), is worth noting in this regard. "Our People : People are assets you can never show on a balance sheet. Our company has a human resource asset of around 12,500 people; 3,000 of which constitute scientific and technical manpower. Every year we add over 450 young professionals. These motivated and well-trained people are the backbone of our business. The team is young in spirit, conscious of its responsibilities and committed to building world class assets for the country".

Meaning of Personnel Management 

Personnel refer to the employees working in an organisation. They represent the manpower which is an important asset of a business unit. Employees are the real supporters of a business unit and they contribute substantially for the stability and prosperity of a business unit. Employees have various problems relating to wage payment, promotions, transfers, working conditions, welfare facilities, training and so on. All such problems are treated as personnel problems. These problems come within the scope of personnel management which is one important area of total business management. Naturally, a separate department called 'Personnel Department' is created in every organisation. It looks after the personnel problems. The manager in charge of this department is called personnel manager. He has to perform various functions which are responsible in nature and also delicate. He needs tact and imagination while dealing with personnel problems. He also needs active support of the top management for dealing with personnel problems effectively.

A personnel manager must be a specialist in organisation theory. In addition, he should be an expert in the personnel administration with knowledge of relevant Labour laws, procedures and so on. A personnel manager needs sound academic qualifications, communication skill, broad social outlook, sympathy and consideration for employees. Knowledge of subjects like philosophy, logic, sociology and ethics is also useful while discharging his duties and responsibilities. He needs a keen sense of social justice and also rights and interest of men (employees) at work. A personnel manager also needs other qualities which are normally required by a successful manager.

In short, personnel management deals with the people working in an organisation. It studies and solves their problems in order to create an efficient, loyal and co-operative labour force for the benefit of a business enterprise.

Personnel management deals with "personnel" of the organisation. It is concerned primarily with the manpower resource inputs.

Definitions of Personnel Management 

According to Edwin Flippo, "Personnel management is the planning, organising, directing and controlling of the procurement, development, compensation, integration and maintenance of the people for the purpose of contributing to organizational, individual and social goals."

According to George R. Terry, "Personnel management is concerned with the obtaining and maintaining of a satisfactory and a satisfied, workforce."

According to British Institute of Personnel Management, in London, "Personnel management is that part of management which is concerned with the people at work and with their relationship within an enterprise."

Features of Personnel Management ↓

Personnel management relates to managing people at work. It covers all levels of personnel’s and their needs, expectations and so on. In this sense, it is a comprehensive function and is basically concerned with managing people at work.

Personnel management is concerned with employees, both as individuals as well as a group. The aim of personnel management is to get better results (for the Organisation) through their involvement, motivation and co-operation. It is a people-oriented process of bringing people and organisations together so that the goals of each are met property.

Personnel management is concerned with helping the employees to learn and develop their potentialities to the highest level for their benefits as well as for the benefits of their Organisation.

Personnel management is inherent in all organisations as all organisations (including industrial and commercial) need manpower for the conduct of their activities. They are concerned with recruitment, selection, utilisation and development of manpower available. Personnel management is an integral aspect of total business management.

Personnel management is a continuous activity/function in an Organisation as personnel problems continue to exist as long as employees are working in an Organisation. They need constant attention as they may disturb normal working of an Organisation, if neglected.

Personnel management aims as securing willing co-operation of employees for achieving organizational objectives. This is natural as industrial and other activities can be conducted only with the support of human resources.

Objectives / Purposes of Personnel Management 

To attain maximum individual development (self development) of the members of an Organisation and also to utilise available human resources fully and effectively.

To mould effectively the human resources.

To establish desirable working relationships between employer and employees and between groups of employees.

To ensure satisfaction to the workers so that they are freely ready to work.

To improve the service rendered by the enterprise to the society through better employee morale which leads to more efficient individual and group performance.

To establish and maintain a productive and self respecting relationship among the members of an Organisation.

To ensure the availability of a competent and willing workforce to the Organisation for its progress and prosperity.

To help Organisation to achieve its goals by providing well trained, efficient and property motivated employees.

To maintain high morale and good human relations within the Organisation for the benefit of employer and employees.

To secure the integration of all the individuals and groups with the Organisation by reconciling individual/group goals with those of an Organisation.

Functions of Personnel / HR Management 

The functions of HRM are directly or indirectly related to the human resource available in the organisation. HR manager has to perform the basic functions of management in the area of HRM. These managerial functions include planning, organising, directing and controlling the manpower of his department. The operative functions of the HRM include procurement of manpower, development of manpower, and payment compensation to manpower and so on. In short, HRM involves the following functions and these functions are to be performed by the HRM department of the Organisation:

Functions of Personnel / HR Management are :-

Procurement of manpower : Procurement means acquiring or resourcing the human resources or the manpower required by an Organisation from time-to-time. Such procurement will be from the employment market. The basic principle in procurement is "right man for the right job". The procurement function includes manpower planning and forecasting, recruitment, selection, appointment, placement and induction of employees so as to have a team of efficient and capable employees for the benefits of the Organisation. Even promotions and transfers are covered by this broad personnel function. At present, scientific methods are used for recruitment and selection of most suitable manpower for the benefit of the Organisation.

Training and Development of manpower : Development of manpower (human resource development) means planning and execution of the training programmes for all categories of employees in order to develop new skills and qualities required for working at the higher level. Manpower development is possible through training programmes and not simply by offering attractive wages to workers. Such manpower development (possible through systematic training programmes) is required for meeting the growing and changing needs of manpower along with the expansion and diversification of business activities. Executive development programmes are introduced for the benefit of higher level managers. Promotions and transfers are possible when manpower development programmes are introduced regularly. Similarly, future manpower requirement will be met properly through such manpower development programmes. This suggests the importance / significance of human resource development. It aims at educating and training employees for the improvement of overall performance of an Organisation. HRD programmes are for education, training and development of existing manpower in an Organisation. This is for facing new problems and challenges likely to develop in the near future.

Compensation payment and reward to manpower employed : One function of HRM department is to pay compensation (in monetary form) to employees for the services rendered. For this, a fair system of remuneration payment (wages and salaries) needs to be introduced. Remuneration to employees should be attractive so that the labour force will be satisfied and disputes, etc., will be minimized. Fair wage payment acts as a motivating factor. Along with compensation payment, HRM also deals with reward system. It is a type of appreciation of exceptional good work and offer some monetary or non-monetary incentive to suitable employees.

Integration of interests of manpower and the Organisation : Manpower is interested in wage payment while Organisation is interested in higher profits, consumer loyalty market reputation and so on. Personnel management has to reconcile the interests of the individual members of the Organisation with those of the Organisation. This will ensure cordial industrial relations. Reconciliation of individual, social and organizational goals and interest is one challenge before HRM.

Maintenance of manpower : This HRM function relating to maintaining of satisfied manpower in the Organisation through the provision of welfare facilities. For this attention needs to be given to health and safety measures, maintenance of proper working conditions at the work place, provision of welfare facilities and other non-monetary benefits so as to create efficient and satisfied labour force with high morale. Even collective bargaining and workers participation come within this broad personnel function. Maintenance of stable manpower is difficult due to the availability of ample employment opportunities.

Provision of welfare facilities : Employees are offered various welfare facilities. They include medical, educational, recreation, housing, transport and so on. These facilities are given for raising their efficiency and also for making their life happy. Welfare facilities create efficient and satisfied Labour force. To introduce new labour welfare facilities and to maintain the existing facilities is one of the functions of HRM.

Sumber :
http://kalyan-city.blogspot.com/2009/12/human-resource-management-human.html


resource = sumber
subordinate = bawahan
procurement = pembelian
wage = upah
manpower = tenaga kerja
conduct = mengadakan
Welfare = kesejahteraan
Labour = buruh
raising = pemeliharaan
existing = ada