What is HRM? - Definitions - Functions - Objectives - Importance - Evolution of HRM from Personnel management
Human Resource Management is the process of recruiting, selecting, inducting employees, providing orientation, imparting training and development, appraising the performance of employees, deciding compensation and providing benefits, motivating employees, maintaining proper relations with employees and their trade unions, ensuring employees safety, welfare and healthy measures in compliance with labour laws of the land and finally following the Orders / Judgements of the concern High Court and Supreme Court, if any.
Human Resource Management involves management functions like planning, organizing, directing and controlling
It involves procurement, development, maintenance of human resource
It helps to achieve individual, organizational and social objectives
Human Resource Management is a multidisciplinary subject. It includes the study of management, psychology, communication, economics and sociology.
It involves team spirit and team work.
It is a continuous process.
Human resource management as a department in an organisation handles all aspects of employees and has various functions like human resource planning, Conducting Job analysis, recruitment and conducting job interviews, selection of human resources, Orienting , training, compensating, Providing benefits and incentives, appraising, retaining, Career planning, Quality of Work Life, Employee Discipline, black out Sexual Harassments, human resource auditing, maintenance of industrial relationship, looking after welfare of employees and safety issues , communicating with all employees at all levels and maintaining awareness of and compliance with local, state and federal labor laws.
The historical rule of thumb for Human Resource staffing requirements is one full-time professional Human Resource person should be hired for every 100 employees. The actual ratio for a business can vary depending upon factors such as the degree of HR centralization, the geographic distribution of the employees served, the sophistication level of the employees, and the relative complexity of the organization.
What is the importance of Human resource?
Behind production of every product or service there is an human mind, effort and man hours (working hours). No product or service can be produced without help of human being. Human being is fundamental resource for making or construction of anything. Every organisation desire is to have skilled and competent people to make their organisation competent and best.
Among the five Ms of management, i.e., men, money, machines, materials, and methods, HRM deals about the first M, which is men. It is believed that in the five Ms, "men" is not so easy to manage. "every man is different from other" and they are totally different from the other Ms in the sense that men possess the power to manipulate the other Ms. Whereas, the other Ms are either lifeless or abstract and as such, do not have the power to think and decide what is good for them.
Why do we call it as Human Resource Management?
Human: refers to the skilled workforce in an organization.
Resource: refers to limited availability or scarce.
Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the organization goals and objectives.
Therefore, human resource management is meant for proper utilisation of available skilled workforce and also to make efficient use of existing human resource in the organisation. The best example in present situation is, construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.
Today many experts claim that machines and technology are replacing human resource and minimizing their role or effort. However, machines and technology are built by the humans only and they need to be operated or at least monitored by humans and this is the reason why companies are always in hunt for talented, skilled and qualified professionals for continuous development of the organization.
Therefore humans are crucial assets for any organisation, although today many tasks have been handing over to the artificial intelligence but they lack judgement skills which cannot be matched with human mind.
"The automation of factories has already decimated jobs in traditional manufacturing, and the rise of artificial intelligence is likely to extend this job destruction deep into the middle classes, with only the most caring, creative or supervisory roles remaining"
-British theoretical physicist Stephen Hawking
It is undisputed fact that humans are being replaced by artificial intelligence which are in the form of robots. But all jobs cannot be handed over to Robots, to say in other words robots have its own limitations and all roles cannot be handled by robots. Though British theoretical physicist Stephen Hawking, Cambridge professor expressed about destruction of middle-class jobs due to raise of artificial intelligence, he still felt that natural intelligence or need for application of human mind is inevitable in certain roles.
Great Quotations on human resource
"You must treat your employees with respect and dignity because in the most automated factory in the world, you need the power of human mind. That is what brings in innovation. If you want high quality minds to work for you, then you must protect the respect and dignity. " ---Mr N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd .
“Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource.”
- John F. Kennedy (35th President of the United States).
Human Resource Management Definitions by Authors
Many great scholars had defined human resource management in different ways and with different words, but the core meaning of the human resource management deals with how to manage people or employees in the organisation.
Edwin Flippo defines- Human Resource Management as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”
The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”.
According to Decenzo and Robbins, “Human Resource Management is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”.
Evolution of Human resource management
Human resource management is evolved form the Personnel management which was erstwhile management system which used to manage employees. To know evolution of personnel management one needs to see the history of centuries of research by great psychologists on human human behaviour and their response at particular situations. One among them was Elton Mayo who was a psychologists from the Australia, did many experiments on human behaviour at different situations in 1924. He strongly believed in work life balance for improving productivity of workers and did emphasis on human relations influence the productivity of workers and finally he has been regarded as father of Human resources management.
Going back to roots of evolution Personnel management , Robert Owen was regarded as creator and originator for introducing reforms for workers in his own Lanark cotton mills. He created a principle of 8 hours day work, 8 hours rest and 8 hours sleep. Owen identified the importance of better working conditions at workplace and its impact on the productivity and efficiency of the workers. Owen after implementation of better working conditions at workplace, he observed change in the productivity of his workers as their efficiency increased. He in those olden days implemented many social and welfare practices for his workers and saw his workers got happy, motivated and worked better. Therefore he was referred as father of Personnel management.
It's believed that the first personnel management department (later evolved as Human resource management) began at the National Cash Register Co. in the early 1900s, according to an Human Resource Magazine article. After several strikes and employee lockouts, NCR leader John H. Patterson organized a personnel department to handle grievances, discharges, and safety, as well as training for supervisors on new laws and practices.
The U.S. Office of Personnel Management (OPM) is the world's largest HR department. OPM provides Human Resource services for the federal governments workforce of nearly 2.8 million workers. It's staff carry out the tasks to recruit, interview, and promote employees; oversee merit pay, benefits and retirement programs; and ensure that all employees and applicants are treated fairly and according to the law.
What is the purpose of Human resource management?
The purpose of the Human resource management is to make the job and deal with the job holder (employee). So as to perform a job in an organisation, one needs to be identified. In order to identify right person for a particular job, notification should be issued which contains job description ( duties and responsibilities) and specifications ( academic qualifications and physical qualifications). So as to verify the correctness of the candidates invited, they should be tested by the suitable selection methods for picking-up right person. Subsequently selected candidates should be provided with the proper training for performing his duties & responsibilities mentioned in the notification. Later, assessment of employees' performance should be done to know whether employees are performing to the desired standards set by the management. Accordingly employees should be rewarded or paid for the job they did in the organisation and their safety in the job is the responsibility of Hr manager or safety officer who should instruct safety measures for the employees and see that they are scrupulously followed. Healthy and welfare measures are so-so important to keep employees happy and motivated which has direct impact on their productivity. Doing so all, maintaining proper and healthy relationships between employees and management avoids conflicts which will effect the overall performance of the organisation. Most important thing is adherence and not to ignore employment and labour laws which govern all the above said activities for a job. Contravenes of employment laws will cost to the organisation and its branding. Hence the Human resource management is like a guardian angel for the organisation to sail smoothly and long-live.
The ten "Cs" of human resources management are: cost effectiveness, competitive, coherence, credibility, communication, creativity, competitive advantage, competence, change, and commitment. The ten "Cs" framework was developed by Alan Price in his book "Human Resource Management in a Business Context".
Why Mangers must know about Human Resource Management?
Why are these concepts and techniques important to all managers? ' Perhaps it's easier to answer this by listing some of the personnel mistakes you don't want to make while managing. For example, you don't want to:
Hire the wrong person for the job.
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company taken to court because of discriminatory actions
Have your company cited under federal occupational safety laws for unsafe practices
Have some employees think their salaries are unfair and inequitable relative to others in the organization
Allow a lack of training to undermine your department's effectiveness
Commit any unfair labor practices
Difference between Personnel management and Human resource management.
Coming to the crux of difference, Personnel management is the seed and root for Human resources management. To say in simple words Human resource management is evolved from the Personnel management. Main principle of the Personnel Management was to extract work from an employee for the remuneration paid to them. Employees during the Personnel management era were not given high priority in decision making process and weren't much allowed to interact with management. Personnel management was more confined to the factories and the main focus of the Personal manager was to see that everything was in compliance with the labour laws or not but not much emphasis made on the morale of employees. Employees were just treated as tools, obligation to the organisation but not as the asset of the organisation, besides they were seen as cost & expenditure to company rather than capital and investment. Personnel officers mostly used be disciplinary oriented instead of flexible and interactive with employees. Nurturing of employees was not priority by the personnel managers and employees perspective was ignored which means personnel managers rather than understanding situation they used to be punitive if any error was committed by employee.
Human resource management see employees from the perspective as a most valuable resources for the organisation and they consider their employees as assets and capital for their organisation.
Motivating employees is a basic feature of human resource management in contrast with personal management. Main principle of the Human resource management is to see what should be given to an employee for extracting the desired work. Hr Managers always encourage participation of employees in decision making and their suggestions are most valued. Flexibility in work, welfare and Work life balance to employees is high priority for Hr managers and they show much more concern towards employee issues. Adoption of new policies and optimisation methods by the Hr manager are well encouraged and swift. The finest difference between Personnel management and Human resource management is integration and augmentation of Information Technologies in the human resources management process and functions for enhanced productivity and time savings as time is money. All above Artificial intelligence and Roberts are taking over many Hr functions ranging from employees recruitment, Testing, interviewing and many more.
Who is responsible for human resource management?
Human resource officer or Manager is responsible for human resource management in the organization.
The HR Director is a top-level manager responsible for the administration of all human resource activities and policies. The director oversees compensation, benefits, staffing, affirmative action, employee relations, health and safety, and training/development functions. They also supervise professional human resources staff.
Primary responsibilities of the Human resource manager:
To develop a thorough knowledge of corporate culture, plans and policies.
To act as an internal change agent and consultant.
To initiate change and act as an expert and facilitator.
To actively involve himself in company’s strategy formulation.
To keep communication lines open between the HRD function and individuals and groups both within and outside the organisation.
To identify and evolve HRD strategies in consonance with overall business strategy.
To facilitate the development of various organisational teams and their working relationship with other teams and individuals.
To try and relate people and work so that the organisation objectives are achieved effectively and efficiently.
To diagnose problems and to determine appropriate solution particularly in the human resources areas.
To provide co-ordination and support services for the delivery of HRD programmes and services.
To evaluate the impact of an HRD intervention or to conduct research so as to identify, develop or test how HRD in general has improved individual or organisational performance.
Core responsibilities of Human resource management
Planning for staffing needs
What is the role of a Human resource officer?
He/she is responsible for formulating and designing of Human Resource policies in compliance with labour laws and sees all Hr related activities staring from hiring to firing of an employees in an organisation.
The Human Resource Manager is responsible for overseeing human resources activities and policies according to executive level direction. They supervise human resources staff as well as see staffing, compensation , assessing and providing employee benefits, providing training & development, safety & welfare of staff, maintaining healthy labor relations, providing employee handbook and maintaining employment records as required by the employment laws.
What is an employee handbook?
An employee handbook defines your company culture. Great employee handbooks motivate and engage employees.
Conveys useful information about company policies and procedures.
The US Supreme Court has made it clear that to protect the company, legal protections should be clearly spelled out to employees.
Employee handbooks are often an essential document in agency investigations and employee claims.
Tells the story of your company - Employee Handbooks are an excellent opportunity to educate employees about the organization, its history,and its origin.
An employee handbook helps with employee orientation and getting new employees up to speed.
Many companies offer multiple employee handbooks based on location, job classification, union membership, etc.
Employee handbooks are required as a risk management essential by Employment Practices Liability insurance carriers.
More than 1/2 of companies now distribute their employee handbooks online.
Who works for Human resource management? (Supporting staff)
Chief Human Resource Officer (CHRO) is a corporate level officer, responsible for formulating and executing human resource strategy in match with overall organization's plan and strategic direction of the organization, particularly in the areas of succession planning, talent management, change management, executive compensation, organizational performance. He supervise industrial relations policies, practices and operations of an organization. CHRO may also involve in selection of board members of an arganisation.
HR Director belongs to top-level management, responsible for the administration of all human resource activities and policies. The director supervise employees' compensation, benefits, staffing, affirmative action, employee relations, health and safety, and training and development functions. They also oversee below mentioned professional human resources staff.
Recruiter (Hiring manager) who is responsible filling vacancies by finding right candidates and finally placing them in the job. The best recruiters can woo even the most passive candidates, but should have the data needed to influence their organization’s hiring strategy. They are part artists and part scientists. Here are some tips to become best recruiter.
Modern recruiters should have an innate instinct for mutual connection. They should know how to network and navigate skill sets, hiring manager personalities, to make a perfect match and suits to company culture.
They should live and die by mantra,'if you cant measure it, you can,t manage it' They should understand importance of numbers and data, will not only help them make better decisions but will also earn the trust of others in the organization
They should think about jobs the way marketers think about products. Whether through their own profiles or through employer branding promotions, they should know how to tell a great story about company.
They should love recruiting innovation. They should know what tools work best, and become masters when it comes to using them.
They should be able to read the candidate and know how to positively influence their emotions, inspire excitement. and get to a YES!.
Trainers who is responsible for imparting required skills for performing job and updating new skills and knowledge for perfection and error free.
Safety officer who see and ensures the safety of employees at workplace.The fact that is 1 in 4 workplace injuries are caused by overexertion. According to [section 40B] of The Factories Act, 1948, there must be Safety officer for thousand employees in an organisation wherein manufacturing does. The fundamental duty of safety officer is to instruct workers about about safety measures and precautions at workplace.
The general safety instructions to workers are -
To wear proper protective clothing and use required safety equipment.
To read all of the instructions and warnings on chemical labels and never mix chemicals.
To be aware of your surroundings and watch for any hazards, if there are hazards, such as wet floors, warn others with the proper signs and barricades.
To have emergency plans in place, and know where all the exits and first-aid kits are located.
Welfare officer who sees welfare of employees. According to[section 49] of The Factories Act, 1948, Welfare officer must be appointed for every 500 employees in the organisation. They usually deal with the task of solving day-to-day experiences of the industrial workers. But this method is not so effective due to the dual responsibilities on the welfare officers were basically appointed to deal with welfare measures and their applications in the industry.
Consequently newly a chapter II-B is added in the Industrial Disputes Act, 1947, by way of amendment with effect from 15th September, 2010, and a new [section 9-C] is added.
Conciliation officer who is charged with the duty of mediating in and promoting the settlement of industrial disputes. Generally small and medium-sized organisations do not appoint consideration officers, they refer settlement issues to separate conciliation officer appointed by the government and the industrial disputes act 1947.
Payroll officer who sees salaries, statutory payments & deductions as taxes and other incentives.
Counsellor who acts as friend for employees so as to resolve any dispute and issues between employees. He also acts personal friend in giving suggestions for personal issues which could hamper the efficacy at work place.
Medical officer who is qualified doctor responsible for first aid, health care and certification of fitness of employees for working or granting leaves.
Insurance officer who see the employees medical policy for securing from diseases and personal accident policy for securing employees in case of accidents so as avoid burden and risk on company.
HR Generalist is responsible for all human resource activities for an organization. He or She provides advice, assistance and follow-up on organizational policies, procedures, and documentation. Coordinate the resolutions of specific policy-related and procedural problems and inquiries.
Human Resource Auditor does a complete Human Resources Check-up and verification of employee records & files, compliance of HR procedures and policies with employment laws, employee handbook, orientation, training of employees, performance management, employee compensation and payroll and employee termination procedures. The guiding principle of HR Audits in 80% organizations is to examine the organization’s compliance with established regulations and/or company policies .
The primary objective of HR audit is to annihilate management risk of contravention with the laws, liability exposure, identifying and correcting risk gaps, litigation avoidance, cost avoidance and enhancement of human resource best practices.
The People Matters HR Audits Study 2016 surveyed 72 companies to assess and evaluate the HR Audit procedures in Indian Companies. The findings from the survey revealed that HR Audits are a routine process in a majority of organizations, very few companies employ dedicated resources that support audit procedures. Further, there is a need for companies to proactively use them for business risk assessment and process improvements.
96% of organizations do not have dedicated HR resources for auditing. They are either done by external audit firms or internal HR auditor.
And only 52% of organizations perform audits only to establish an “early warning system”
Frequency of HR audits by companies - could be Annually, Quarterly, Trimester and Semester
HR Analyst is a challenging job generally appointed by huge orgnanisations where magnitude of HR issues are high. He is the one who identifies burning issues and its causes with the help of available data and information and if it unavailable, he is responsible for exploration and collection of data and information could be with the support of Human Resource Information Systems so as to analyze and draw a clear picture of current scenario and help executives to tackle them. HR analyst should have through knowledge of HR metrics for making accurate analysis. But it is fact that very least percentage of HR managers have the skills to collect necessary data, analyze it, and present insights in a meaningful and influential way to executives.
HR analyst should be able visualize and predict the level of impact of the burning issues on the organisation and find ways to tackle them and make planning for avoiding such issues in future. The core issues which are dealt by HR analytics are about employee turnover rate and their retention, evaluation of employees, deciding salaries and benefits, designing and improving employee training programmes and measuring work burden on employees by using . Below diagram represents HR issues which can be dealt and tackled by HR analyst so as to avoid impact on the business and overall performance of the organization.
Human Resource analytics is at the intersection of three bodies of knowledge:
Human Resource Management: sets the meaning and purpose of the analytics.
Data Warehousing: knowing how to process and store HR data efficiently, automation of collection of data and cleaning data.
Statistical Analysis, Presentation and Interpretation : helps in translating the identified HR issues into appropriate analyses and communication of results.
5 FUNDAMENTAL PRINCIPLES OF ANALYTICS
A professional and good HR Analytics person will have the above bodies of knowledge and know their process and intersection.
Good communication and collaborative skills are essential. The in-depth expertise in your organization is likely to exist in HRM. IT. and Decision Support. You will need to collaborate with these groups.
HR Analytics is about metrics and measurement. Good metrics definitions, both narrative and formulaic, and their documentation are key.
The extent of HR Analytics can be vast. Having a defined model or framework can help you navigate towards your future efforts. Patience is key.
While quality preparation of metrics is important, the real value is in the analysis and interpretation.
Specialists analytics in high demand for HR roles: Study
May 14, 2018
India has seen 77% growth in specialized analytics professionals employed in human resource functions in the past five years, as an increasing number of companies are turning to analytics to address workforce planning, skills gap and employee retention, according to a study by professional network LinkedIn.
“The overall business landscape and the changing role of Human Resource as a more strategic partner in business are driving the rise of analytics in HR. It is imperative for Human Resource today to give more strategic inputs in business and build a data-driven Human Resource Management function,” said Irfan Abdulla, director-LinkedIn Talent Solutions and Learning Solutions, India and South Asia.
Compensation and benefits, talent acquisition, talent development and productivity are the established focus areas for use of analytics in the Asia-Pacific region.
In India, 14% of total jobs in Human Resource Management are analytics based, signifying that companies are increasingly trying to arm their HR functions with analytical capabilities with talent as their focus area, shows the report, titled The Rise of Analytics in Human Resource Management: An era of Talent Intelligence.
Rights of an employee
Right against discrimination at workplace
It is a right of every citizen of India to be treated without any discrimination. According to article 16 (2) of the Indian Constitution, no citizen can be discriminated against, or be ineligible for any employment or office under the state, on the grounds only of religion, race, caste, sex, descent, place of birth or residence or any of them. Adherence to the rule of equality in public employment is a being feature of Indian Constitution and the rule of law is its core, the court cannot disable itself from making an order inconsistent with article 14 and 16 of the Indian Constitution.
In the United States, Title II of the Civil Rights act, 1964 prohibits discrimination of people on certain grounds. In this regard, employers implement equal employment opportunity policies and prohibit discrimination based on race of a person, colour, sex, religious creed, nationality, age, ancestry, marital status, disability, medical condition, genetic characteristics ( of those of a family member), political affiliation, et cetera.
The equality act, 2010 of the United Kingdom prohibits discrimination and mandates equal treatment in matters of employment as well as private and public services irrespective of race, age, sex, religion or disability .
Scheduled castes and Tribes ( prevention of atrocities) act, 1989 is constituted as a social justice oriented law, which is enacted to prevent atrocities and other form of derogatory behaviour towards member of the scheduled caste and scheduled Tribes.
According to the recent Supreme Court judgment in Section 377 of Indian Penal Code 1860, LGBTQ ( lesbian, gay, bisexual and transgender queer) shall not be shown discrimination or derogate them in any manner.
Equal pay for equal work
It is an employee right though equal pay for equal work is not expressly declared by the Constitution as a fundamental right that in view of the directive principles of state policy as contained in the article 39(d) of the Indian Constitution "equal pay for equal work" has assumed the status of fundamental right.
According to article 39(d) of the Indian Constitution, the state has to ensure that there is equal pay for equal work for both men and women. Parliament has enacted the Equal Remuneration Act, 1976, to implement article 39(d). The act provides for payment of equal remuneration to men and women workers for the same work, or work of a similar nature and for the prevention of discrimination on grounds of sex. The act also ensures that there will be no discrimination against recruitment of woman and provides for the setting up of a advisory committee to promote employment opportunities for women. It is the duty of HR department and Hr managers to see that there is no such violation which is unconstitutional, therefore it should be complied by the every organization.
Supreme Court - Case law
Jaipal Vs State of Haryana, AIR 1988 SC 1504, at 1509:
The court has enunciated the doctrine as follows:
The doctrine of equal work for equal pay would apply on the premises of similar work but it does not mean that there be complete identity in all respects. If the two classes of persons do some work under the same employer, with similar responsibility, under similar working conditions, the doctrine of equal work equality would apply and it would not be open to the state to discriminate one class with the other in paying salary.
Federation of A.I custom and Central Excise stenographers (Recog) Vs Union of India. AIR 1988 SC 1291: (1988) 3 SCC 91
The Supreme Court has emphasized that equality must depend on the nature of work done and not mere volume of work as they may be quantitative differences as regards reliability and responsibility. Functions may be the same but the responsibilities make a difference. The court further observed:
"The same amount of physical work may entail different quality of work, some more sensitive, some requiring more tact, some less - it varies from nature and culture of employment. The problem about equal pay cannot always be translated into a mathematical formula....."
it is an employee right to not to work more than 9 hours in any day or 48 hours in any week in the factory. There should be interval or break for rest for at least 30 minutes after five hours continuous work of an employee according to The Factories Act 1948. The same right is applicable to the employees working in the shops and establishments like hotels, movie theatres and amusement and entertainment establishments according to the concerned state shops and Establishment act.
It is an employee right to have at least one holiday in a week in the factory or shops and establishments according to The Factories Act 1948 and shops and establishments act of the concerned state
Salary or wages
According to Minimum Wages Act, 1948 it is an employee right to claim for salary or wage for the work done to his employer. It is the duty of the employer to pay remuneration according to the work extracted from his employee.
Any deductions from the salary or wage of an employee should be made according to the employment laws only. If any employee levied fines or collected or deductions from the salary of an employee, it will be treated as illegal and such employer is liable for legal action.
Payment for overtime working
According to The Factories Act 1948., section 59, if a worker works more than nine hours in any day or for more than 48 hours in any week, it is an employee right to claim payment for overtime at the rate of double the ordinary rate of his wage or salary.
Payment of gratuity
The employee on termination of his employment from the specified establishment becomes entitled for payment of gratuity from his employer provided he has rendered continuous service of not less than five years. The gratuity is payable on superannuation or retirement as well as on resignation of the employee. It is also payable on death or disablement of the employee due to accident or disease.
It is an employee right who completes his five years of continuous service in an organisation having 10 or more employees, to claim for payment of gratuity at the rate of 15 days of his current salary for every year of service he or she completed in that organisation, according to The Payment of Gratuity Act, 1972.
Section 2(e) of the Gratuity Act defines the term 'employee' and any person who is employed for wages other than an apprentice is covered by the said definition provided the establishment in which such person is working is covered by the provisions of the said Act.
Payment of bonus
According to the section-10 of Payment of Bonus Act, 1965, it is an employee right drawing salary of Rs. 21000/- p.m. to claim for payment of minimum bonus that is 8.33% of his salary (his / her salary will be treated as maximum Rs. 7000/- for calculation of bonus) and it is the duty of the employer to pay minimum bonus to their employees irrespective of profit or loss to an organisation during that year. Section-11 says maximum percentage of bonus claimable by an employee is 20% in case of profits to an organisation. The procedure for payment of bonus to to employees irrespective of profits or losses to an organisation is mentioned under the Payment of Bonus Act, 1965.
It is an employee right that whoever employee draws salary not more than ₹ 15,000, have social security benefit in the form of provident fund. It is the duty of the employee to contribute 12% from his salary towards provident fund and it is it is the duty of employer or an organisation having 20 or more employees, to contribute equally that is 12% of his salary, according to the Employees' Provident fund and miscellaneous provisions act 1952.
According to the present rules, if an employer becomes unemployed for one month, such employee can with the 70% of amount from the provident fund. If an employer becomes unemployed for more than two months such employee can with the total amount from the provident fund.
According to the section 5 of the Maternity benefit Act 1961, it is woman employee right to claim for maternity leave for 26 weeks for 2. Such woman employee can apply maternity leave just eight weeks before the date of are expected delivery. It is the duty of employer to pay full salary for a woman employee during her maternity leave for 26 weeks. In case of miscarriage or medical termination of pregnancy, a woman is entitled to live with wage or salary for a period of six weeks immediately following that they offer miscarriage or her medical termination of pregnancy .
It is male employee right if he is working for the central government of India, he is having right as employee to claim for paternity leave for 15 days within six months from the date of delivery of his child. The central is also being followed in many reputed private organisations and companies in order to boost employee morale and employee satisfaction.
Compensation in case of accidents, injuries and death of an employee
According to the Employee's Compensation act 1923 it is an employee right to claim compensation in case of accidents or injuries occurred during the course of employment especially when worker was not under the influence of alcohol. In case of death of an employee in the course of employment and such employee is not under the influence of alcohol, his or her dependent is having right to claim compensation in accordance with the workers compensation act 1923.
Workers participation in the management
The article 43a of the Constitution of India, guarantees participation of workers in management of industries.
Protection against sexual harassment at workplace
It is an employee right to be protected against sexual harassment at workplace according to the sexual harassment of women at workplace (prevention, Prohibition and redressal) act 2013. For this purpose the organisation with 10 or more employees should constitute internal complaints committee for helping the victims of sexual harassment. Such victims are also protected under the section 354 of the Indian penal code, by punishing culprit with imprisonment.
An incident of sexual harassment of a female at a place of work, amounts to violation of her fundamental right to gender equality under the article 16(2) of the Indian Constitution. Such violation of fundamental rights can be filed before High Court of the concern state under article 226 of Constitution of India for seeking justice and for punishing such violators.
Note: Any person who is deprived of his rights which are mentioned above, such illegality can be challenged before the court of law and employee whoever commits violation of such rights shall be punishable according to law by the court of law.
Prevention and dealing with sexual harassment: is crucial duty of Human Resource Management, otherwise it may effect the organisation's culture and employer branding which would consequently lead to collapse of the organization. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 protects women at the workplace from sexual harassment. Act defines sexual harassment at the work place and creates a mechanism for redressal of complaints. It also provides safeguards against false or malicious charges. Every employer is required to constitute an Internal Complaints Committee at each office or branch with 10 or more employees. Any employer who fails to constitute an Internal Complaints Committee as per the Sexual Harassment Act shall be liable for a penalty of up to Rs. 50,000 if a complaint is made to the magistrate.
Any woman employee who has faced sexual harassment at the workplace, or any person authorized by the Internal or Local Complaints Committee can file a complaint with the Magistrate. Repeated non-compliance of this provision can result in the punishment being doubled or even cancellation of the organisation's business license by the concern government or local authority.
The Indian Penal Code 1860 Section 354A, 354B,354C, 354D was newly inserted, especially for the following acts which shall be treated as sexual harassment.
Physical contact and advances involving unwelcome and explicit sexual overtures; or
demand request for sexual favours; or
showing pornography again as the will of a woman; or
making sexually coloured remarks on women.
any man who assaults or uses criminal force to any women or abets such act with the intention of disrobing (taking off one’s clothes) are compelling her to be naked -section 354B'
Any man who watches captures images of women engaging in a private act in circumstances where she would usually have the exception are not being observed either by the perpetrator or by any other person. - section 354C
Following a woman and contacts, or attempts to contact such women repeatedly despite a clear indication of disinterest by such women.- section 354D
For the above said offences the punishment shall be for a period of one to three years of imprisonment or fine, or both
Function of Human Resource Management
5 basic (Managerial) function of Human Resource Management
PLANNING - HR
Planning is the first and basic function of the management and everything depends upon planning as it is a process of thinking about things before they happen and to make preparations in-advance to deal with them. Poor planning results in failure and effects overall system. Therefore HR Mangers should be aware of when is right time to do things, when things should be done and when things should not be done in order to achieve goals and objectives of the organization.
Establishing goals and objectives to be achieved through the employees so as to achieve the organizational mission set by the top-level management.
Developing rules and procedures which has to be followed by the employees in order to avoid any sort of discrimination among the employees in any of their functions, to enable fair and transparent treatment among employees, to avoid conflict starting from recruitment to the separation of employees, inculcate discipline among the employees, to drive performance of employees and ultimately to avoid conflict and contravenes with statutes and employment laws of the land, ultimately for smooth running of the organization.
Determining plans and forecasting techniques as a part of Human resource planning to avoid any shortfall of workforce so as to avoid impact on the output of the organisation, to draw the estimation of workforce exactly needed for the organisation and to plan for attracting talented candidates.
HR outsourcing: as that of make or buy decision in operations management, human resource manager should be able to make decisions with regard to HR activities which are to be executed by the management itself or to be outsourced when there is advantage of expertise to bring in and cost-saving for organization. The following are the most outsourced HR activities; legal advice and support, employee payroll, pensions, training and development, recruitment, employee assistance, compensation and benefits, outplacement is, human resource information systems, employee relations, policy-making, strategic partnerships, appraisal of employees and resource planning.
Most small to medium-sized business owners know the frustration of spending more time than they want on non-revenue generating activities from payroll to human resource management to benefits and compensation. The answer for many businesses maybe to outsource part of their HR functions to third party providers so that they can focus on their core business and also has following benefits-
Save money and reduce operating costs
Allow the company to focus on its core business
Reduce the number of HR staff and related staff expenses
Allow HR staff to focus more on strategy
Avoid the costs of major investment in technology
ORGANIZING - HR
HR managers should be well aware of organizing everything related to human resource and organisation as organizing is the process of making and arranging everything in the proper manner in order to avoid any confusion and conflicts.
Giving each member a specific tasks to finish overall objectives of the job given to an employee is the duty of the Human Resource Manager, besides it also to the duty of Human resource manager to define task clearly before entrusting job to an employee. HR managers should keep in mind that task entrusted to employees should be matched with their skill set and abilities and It is also lookout of HR managers to give training to employees in the area or subject which is going to be entrusted to employees, otherwise the task entrusted to employees gets failed and defeated.
Establishing departments and divisions according to the nature of jobs and works in order to improve the efficiency, expertise and speedup the work. Establishment of separate divisions and departments would give easy and effective control over employees by the management which would give better results and improve overall performance of the organisation.
Delegating authority to the members for a good cause and to make employees more responsible towards their job and organisation is a part of employee development. Delegating authority to employees makes them to be more responsible towards organisation as there is a principle called authority equals to responsibility, vice versa when you load an employee with responsibilities, he should be given authority so as to fulfil the responsibilities casted upon employee. Authority without responsibility and responsibility without authority defeats its purpose. Therefore when employees feels responsible and accepts responsibilities, it is a good sign as it makes employees to be engaged in the job.
Establishing channels of authority and communication is the primary responsibility of any human resource manager which would enable managers to effectively communicate desired goals and objectives of the organisation. Having effective communication will avoid conflicts, make staff to understand what exactly they are expected to and also enable the manager to get the things done in time.
Creating a system to coordinate the works of the members so as to make the employees to work properly and not to cause any conflict in the allocation of the work to the employees. Improper and discriminating allotment of the work we will make one or the other employee feel overburden, burnout and can create conflicts among employees among members which is not good for the organisational health and building teams will create teamwork which creates synergy among team that will bring out the best out of them.
STAFFING - HR
Staffing is one of the key functions of human resource management as staffing is the process of employing right people, providing suitable training and placing them in the right job by paying them accordingly and satisfactorily.
Determining the type of people to be hired should be emphasised as they are the fundamental resource and investment for any organisation. Every organisation wants right people with them but they come at a price. Employee compensation is a key factor in primary motivating factor to attract talented and retain them in the organisation for a long period of time.
Compensating the employees is one of the core functions of the human resource management. Among all the motivating factors money is very important and primary motivating factor for any employee. Providing right compensation for the work done by an employee will not only make an employee feel happy, it will also make the organisation in compliance with employment laws of the land, if compensation is unjustified it amounts to exploitation of employees which is against law.
Setting performance standards, measuring and evaluating the employees: A performance appraisal is meant to help employees realise their strengths and shortcomings and receive a compensation accordingly. The very purpose of appraising the performance of employees is to evaluate and compensate accordingly. Unless organisation sets performance standards to its employees, it cannot compare and measure employees actual performance with the standard performance. HR managers take performance gaps of employees for making decisions on employees with regard to rewarding them with bonus, profit-sharing, stock options and payment of incentives or not. These employee performance gaps will not only be considered for making decisions with regard to compensation but it is also considered for making decisions with regard to initiate corrective actions on said employees, promoting them to higher levels and if any employees performance gaps are high, such employees gets demoted, suspended or sometimes may be discharged from job.
Counselling the employees as a Human Resource manager, for understanding and helping people who have technical, personal and emotional or adjustment problems with an objective to reduce them, so that performance of employees are maintained at expected level or even improved upon.
Recruiting prospective employees and selecting the best ones from them is one of the primary functions of human resource management. Recruiting is the process of inviting the people who were willing to join the organisation and selecting best out of them is the crucial process in which various selection tests are conducted. Having best people in the organisation will make that organisation is best in all the ways which would create employer brand that will help to attract talented people and also make them to retain in the organisation long period of time.
HR Metrics: Application of formulas for measuring and calculating core HR issues so as to draw exact HR results and current scenario of organisation. The very purpose of HR metrics is to indicate current position and performance of the organisation.
Core HR issues where HR metrics can be applied are Time to fill an employee, Cost per hire of an employee, Employee absenteeism rate, Employee training others, Turnover cost, Turnover rate, annual Turnover of an employee, Workers compensation cost for an employee, Revenue per employee, Return on Investment (ROI) and Yield ratio.
Annual employee turnover rate = No of employees left X 100
beginning + ending No of employee in a year / 2
[(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100
Cost per Hire
(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires
Health Care Costs per Employee
Total cost of health care ÷ Total Employees
HR Expense Factor
HR expense ÷ Total operating expense
Human Capital ROI
Revenue − (Operating Expense − [Compensation cost + Benefit cost]) ÷ (Compensation cost + Benefit cost)
Human Capital Value Added
Revenue − (Operating Expense − ([Compensation cost + Benefit Cost]) ÷ Total Number of FTE
Revenue ÷ Total Number of FTE
Time to fill
Total days elapsed to fill requisitions ÷ Number hired
Training Investment Factor
Total training cost ÷ Headcount
Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss
[Number of separations during month ÷ Average number of employees during month] × 100
Workers’ Compensation Cost per Employee
Total WC cost for Year ÷ Average number of employees
DIRECTING - HR
Directing is a knowledge, discipline and formal way of communicating to others that what you are expecting from them to do for you or to an organization. Unless a HR manager has capability of directing, he / she can't be said as full-fledged HR manager. when a HR manager has right directing capabilities, it is gives clarity for employees what they are expected to perform, removes confusion in employees and gives clarity of what results are expected by the management from employees.
Getting work done through subordinates so as to meet the organisation's goals and objectives. Indeed getting work done to others is an art which every Human resource manager should possess, for which employee motivation by the Human Resource Management influences and matters a lot.
Ensuring effective two-way communication for the exchange of information with the subordinates in order to effectively communicate the goals and objectives of the organisation as it plays key role in understanding what the Human Resource manager or organisation is expecting from employees to perform. Miscommunication between employees block the progress and even would lead to conflicts which eventually affects the overall performance of the organisation.
Motivating subordinates to strive for better performance by way of providing employee recognition, rewards, intrinsic benefits, paid vacations, increments in salary, gifts, any social security benefits to employees and their family members is one of the functions of Human Resource Management.
Maintaining the group morale by way of fair treatment among employees, being ethical and generous towards employees, management being loyal to its employees and giving priority to employee concerns. It is the responsibility of human Resource Manager to guide always to its employees, otherwise lack of guidance often kills the morale of employees. Training and development programmes not only improve the skills of employees but also boost their morale, thereby making them happy and leading to longer tenures. Apart from breaking the monotony in the workplace, training programmes offer employees a learning platform where they are able to master new skills and become more marketable.
CONTROLLING - HR
HR managers should have the knowledge of controlling all HR related matters, as they should be able to think and decide what should be done and what should not be done and which should be done and which should not be done while dealing with employees.
Operative function of Human Resource Management
PROCUREMENT - HR
Job analysis is a systematic process of gathering all the data & information pertaining to the job for preparing of job specification which determine the skills, qualifications & traits for job and preparation of job description which describes the duties and responsibilities so as to recruitment and selection of employee, give satisfaction on the job, and feel motivation while doing the job, etc. Harry L. Wylie defines "Job analysis deals with the anatomy of the job.....This is the complete study of the job embodying every known and determinable factor, including the duties and responsibilities involved in its performance; the conditions under which performance is carried on; the nature of the task; the qualifications required in the worker; and the conditions of employment such as pay, hours, opportunities and privileges"
Job design is the process of deciding on the content of a job in terms of its duties and responsibilities; on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exist between the job holder and the superiors, subordinates and colleagues. Job enlargement, job enrichment, job rotation, and job simplification are the various techniques used in a job design exercise. Job design goal is to minimize physical strain on the worker by structuring physical work environment around the way the human body works.
Recruitment & selection - Recruitment and selection of the human resources for an organisation is the major and basic function of human resource management. Human resources planning and recruiting precede the actual selection of people for positions in an organisation. Recruiting is the process of inviting qualified job seekers by using different platforms like issuing notification in regular newspapers or employment newspapers which are exclusively meant for employment news and notifications, television media, online and on social networking websites which have become mostly used resources for recruitment and hiring people. There are two major source of recruitment of employees, one is recruitment through internal sources and the other is recruitment through external sources. Internal recruitment is the process of inviting or giving chance to the people relating to concern organisation or to the people relating to the existing employees or directly giving opportunity to the existing employees. External recruitment is the process of inviting job seekers who do not belong to or anyway related with an organisation, which simply means inviting outside candidates.
Subsequently, selection of right person form the pool of candidates by administering various selection tests like preliminarily screening, written tests, oral tests and interviews etc.
Human resource planning (HRP) may be defined as strategy for acquisition, utilization, improvement and preservation of the human resources of an enterprise. The objective is to place right personnel for the right work and optimum utilization of the existing human resources. HRP exists as a part of the planning process of business.
The major activities of Human resource planning include:
Placement of employee in the job where he exactly fit
forecasting (future requirements),
inventorying (present strength),
anticipating (comparison of present and future requirements) and
planning (necessary programme to meet future requirements).
Induction & Orientation: Induction of Employee is the first step towards gaining an employees' commitment, Induction is aimed at introducing the job and organization to the recruit and him or her to the organization. In a nutshell, it covers the organization’s history, philosophy, mission and vision, and the managerial style of the organization. Inform the financial benefits and different taxation policies offered. Addresses trainings offered, performance expectations, and the work schedules of the organization. Educate new employees on the laws, regulations and company policies that applies to their role. Highlight the different safety and security aspects related to the work environment. Orientation is the planned introduction of new employees to their jobs, coworkers, and the organization so as to alien an employee with their job role.
Explain the role employees have to play to achieve organization's goals.
Portray the organization structure demonstrating the various departments, the people involved and their respective designation.It covers all the information starting from customer profile, to the competitors’ product and services.
Socialization is a process of making employees to mingle up with everyone for team-spirit
DEVELOPMENT - HR
Career planning and Career development; process of establishing personal career objectives by employees and acting in a manner intended to bring them about. HR managers should help their employees in knowing their strengths for placing them in suitable job, guide employees what skills and knowledge should be acquired for attaining higher positions, planning for suitable training for polishing existing skill set and providing good work-life-balance to make balance between career and personal life, after all, every one work for their personal life . Career development according to Schuler, "It is an activity to identify the individual needs, abilities and goals and the organization’s job demands and job rewards and then through well designed programmes of career development matching abilities with demands and rewards". Career development does not guarantee success but without it employees would not be ready for a job when the opportunity arises. HR managers should encourage their employees by providing them suitable opportunities to grow for promoting them to higher jobs according to their skills and knowledge, identify and provide opportunities to employees to learn new skills in the job and compensate accordingly and guiding employees in right career path to develop in their career.
Top preferences for employees in India
* Career development
* Learning and training opportunities
* Good work-life balance
* Good relationship with superiors
Executive development ; developing the skills and competencies of those that (will) have executive positions in organisations.
Employee training and development is the subsystem of an organization and core function of human resource management. It ensures continuous skill development of employees working in organisation and habituates process of learning for developing knowledge to work. Imparting Training and Development to employees through various methods is the foundation for obtaining quality output from employees. Employee training methods or categorised into on-the-job training methods and off the job training methods.
On-the-job training methods: job rotation, coaching, job instruction, committee assignments, apprenticeship and internship
Of the job training methods: classroom lecture method, audio-visual training method, simulation, case studies, role playing and the programmed instruction method.
Overall development of organisation: Though human resource department is one of the departments in organization, but it is linked to overall development of organisation as employees are center for final output and organisation's performance. Whatever type of job or department in any organisation is made up-of employees alone. HR department should keep in mind that it isn't just simply dealing with employees, but it's every HR activity effects the performance of employees in turn it will show cascade effect on final output of employees and finally on overall performance of organisation. If employees aren't provided with proper and relevant training, it would effect their performance, likewise if all employees have same situation it would badly effects the organisation. If employees aren't kept motivated continuously by way of providing benefits and perks will lead them to become lethargy or if HR department fails to maintain and comply with employment laws would sometime lead cancellation of business licence.
To make this point clear, Human resource department's failure to maintain employee safety, welfare and healthy measures according to The Factories Act 1948 or failure to have an ICC (Internal Complaints Committee) according to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 will sometimes lead to closure or cancellation of business. Like that there are other employment laws which makes organisation to be in compliance with it for smooth running of organisation, if not it will invite unnecessary troubles to an organisation.
COMPENSATION - HR
Job evaluation; analyzing and assessing various jobs systematically to ascertain their relative worth in an organization.
Performance evaluation is also called as performance appraisal of employees. Human Resource Managers can adopt various methods for assessing the performance of the employees So as to take decisions with regard to compensating and rewarding employees, training of employees if performance is poor and it would take corrective actions on employees whose performance is poor. In order to evaluate the performance of employees, HR managers first have to set up performance standards for comparing with actual performance of employees to find out gaps of employee performance. Performance evaluation or appraising performance of employees is the core and major task when compared with other human resource management functions.
Establishment of standard performance so as to measure the actual performance of the employees by conducting performance evaluation for appraisals
Measurement of actual performance with the established performance standards of employees for finding out gaps in employee performance.
Comparison of actual performance with the standard one to find the deviation for initiation of corrective actions, if there are any deviations. Corrective actions include giving proper and suitable training to such employees or withholding of increments in payments until performance gaps are none. Demotion of employee, suspension and discharge from job is initiated when serious deviations are identified
How to Give an Effective Employee Evaluation?
• Define what is expected of the employee
• Make sure goals are measurable and observable
• Discuss the goals with the employee
• Obtain the employee’s agreement and signature
Provide Written Evaluations
• Every six months, discuss performance
• For struggling employees, consider once-a-month evaluations
• Ensure written performance reviews reflect the entire evaluation period
Maintain a Performance Record
• Make written notes throughout the year
• Do both praising and correcting—in real time
Ensure Integrity of Evaluation
• Written comments should be factual, detailed, and constructive
• Performance criteria shouldn’t be changed after the review
• Evaluations shouldn’t digress from the measures initially defined
Wages or salary administration as prescribed by the labour laws, Wages for workers or salary for employees is the basic and primary thing for which employee's work for an organization. It's administration of salaries by HR managers is very crucial function as financial implications and legal compliance is involved. Any deviations in payment of salaries will lead to immediate dissatisfaction of employees and effects their moral and any failure in payment of salaries, statutory contributions by employee and statutory deductions from salary of an employee in accordance with the employment laws will invite unnecessary complications and will be liable for penal action by the court of law. Hence it is lookout of the Human resource management department to avoid such costly mistake which also effects the organization's reputation (Employer branding). wages are classifieds as
Minimum wage - It is also called as irreducible wage, which should be sufficient for worker to get food clothing and shelter.
Fair wage - Wage which is paid according to the work of the work
Living wage - It is just above minimum wage, which is sufficient to meet minimum health expenses, children education with food, clothing and shelter.
Salary nomenclature is used in the context of employees. Generally salary of employees is paid monthly and it consist of various components like basic pay, dearness allowance and house rent allowance especially in the case of government employees. Whereas private employees' salary normally doesn't consist of said components as it is paid under single head that is salary and benefits of employees doesn't come under salary head, therefore employee benefits could be monitory or nonmonetary cannot be counted with salaries of employees, they are specifically provided for providing social security and motivating employees. Especially government employee salary format will be Salary = Basic pay+ Dearness allowances+ House rent allowance.
Employee rewards, perks and benefits payments according to the employment and labour laws. Employee benefits are categorised into statutory or mandatory and voluntary benefits. Statutory benefits are compulsory benefits for employees, its denial for payment of such benefits to their employees by the management, can be challenged in the court of law. Whereas voluntary benefits claims cannot be legally enforceable in the court of law in case management fails to pay to their employees. The purpose of payment of voluntary benefits to employees is to attract talent, for retention of employees in the organisation and for motivating employees, ultimately to keep employees happy. Most of the voluntary benefits are non-monetary.
The Best PERKS or rewards of the job
When a Google employee passes away surviving spouse or partner of a deceased employee 50% of their salary for the next 10 years.
Free gourmet food and never ending snacks!
24/7 in-house tech support from their Tech Stop service Dogs are welcome into the office
Employee s given 'massage credits’ for a job well done
The 80/20 rule allows Google employees to dedicate 80% of their time to their primary job and 20% on passion projects
Xoogler alumni support for the rest of their lives
Top employee benefits
Additional fixed pay
flexible work arrangements
professional development support
health care assistance
Compulsory employee benefits: Payment of bonus, Gratuity, Provident fund, Compensation in case of accidents, Paid Leaves, Maternity leave for 26 weeks with full pay and Paternity benefit of 15 days with full pay for male employee.
Employees State insurance provides following benefits to the employees whoever got covered under employees State insurance scheme.
Sickness benefit: ESIC provides 70% of average daily wages in cash during medical leave, upto 91 days in two consecutive benefit periods.
Medical benefit: ESIC provides reasonable Medical Care for self and family from day one of entering into insurable employment.
Disablement benefit: ESIC provides continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent disablement.
Maternity benefit: ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.
Unemployment allowance: ESIC Provides monthly cash allowance for a duration of maximum 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury.
Voluntary employee benefits: Payment for time not worked, paid vacations, Surrogacy leave, Adoption leave, Menstrual leave, Health and security benefits.
MAINTENANCE / MOTIVATION - HR
Employee well-being; Providing good working conditions at workplace is the fundamental duty of Human Resource Management department. Treating employees inhumane is against to the Constitution of India according to [Article 42 under Chapter XXXIV of Directive Principles of State Policy of the Constitution of India].
It is also the duty of Human Resource Management to provide welfare measures like Pure water drinking facilities, restrooms, lunchroom in an organisation having more than 150 employees, minimum medical aid facility for 150 employees, maintenance of an ambulance in an organisation having more than 500 employees, canteen in an organisation having more than 250 employees, crèches for children in the organisation having more than 30 women employees and sitting facilities for employees wherever it is required and possible.as prescribed under The Factories act 1948.
Social security for employees: Providing and contributing Employee Provident fund, Payment of Bonus, compensation, payment of gratuity, maternity benefit, paternity benefit and employee insurance. In India there are few social security legislation which are to be followed and complied by any organisation and it is the duty of the Human Resource Manager to look after it.
Worker's participation encouragement either individually or collectively, become involved in one or more aspects of organizational decision making within the enterprises in which they work Would make employees feel motivated, satisfaction and stay loyal to the management. Therefore it would avoid unnecessary conflicts in between employees and management while implementing management decisions. Management should ensure decisions should not be taken arbitrarily without considering or consulting their employees who work for their organisation. Especially human resource managers should not take management decisions on their whims and fancies, especially in decisions relating to their employees.. Article 43A of the Constitution of India guarantees 'Participation of workers in management of industries' and falls under Part IV - Directive Principles of State Policy and it should be ensured and honoured by an organisation's human resource management.
Providing Good work-life balance
Motivating employees stimulate the desire and energy in employees to be continuously interested in a job and committed it, role, or subject, and to exert persistent effort in attaining a goal. The most important motivating factors for employees are to have a healthy and good working environment, to have good monitory benefits, compensation and rewards, to have encouragement and support from management and to have a chance of professional growth and raise.
WHAT MATTERS & MOTIVATES MOST FOR EMPLOYEES AT WORK?
Top 10 global employees preferences
Job security & stability
Work appreciation by employer
Good & healthy relationship with colleagues
Good work-life balance
Good relationship with superiors
Learning & training opportunities
Financial stability of employer
Job rotation is the human resource management technique in which employee is moved between two or more jobs in a systematic and planned manner. The objective is to expose an employee to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them.
Advantages of job rotation of an employee are eliminate boredom of an employee, encourage development, give employees a break from strenuous job duties, helps HR manager identify where employee work best and gives HR manager a backup plan if an employee leaves.
Maintaining HR records in accordance with employment laws and oranisational needs is the basic function of Human Resource Management, conducting research for identification of HR issues and find suitable solutions, doing Human Resource audit by systematic verification strategies, policies, procedures, documentation, structure, systems and practices with respect to the organization’s human resource management.
Human Resource information system implementation lets you keep track of all your employees and all information about them. It is usually done in a database or, more often, in a series of inter-related databases.
INTEGRATION - HR
Industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract. Maintaining proper industrial relationships is the core activity of Human Resource Management so as to avoid industrial disputes.
Employee Discipline is a systematic procedure the set-rights and corrects or punishes a subordinate by superior because a rule of procedure has been disobeyed or violated. Discipline is the force that prompts employees to observe rules, regulations, standards and procedures deemed necessary for an organization.
Grievance redressed; Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance of employees. Grievance procedures differ from organization to organization as grievances can be very damaging if not handled properly. The key causes of employee grievances are
Grievance resulting from management policies include
Grievance resulting from working conditions
Grievance resulting from inter-personal factors
Dispute settlement : Causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. (The Industrial Disputes Act, 1947 governs rules for the settlement of disputes between the management of industrial establishments and workmen.)
Now recently in the year 2010, a new chapter II-B is inserted in the Industrial Disputes Act, 1947 by way of amendment w.e.f 15th September, 2010, and a new section 9-C is added for having grievance redressal committee.
Grievance Settlement Machinery
Any organisation having 20 or more employees should have grievance redressal committee for the resolution of disputes.
The committee should consist of equal members from employer and employee.
The committee members should not exceed more than six members.
The committee should consist of one woman and male members equally.
The grievance redressal committee should complete its proceedings within 45 days on the receipt of written complaint by the party who is having grievance.
Collective bargaining: The collective bargaining as a policy has been in vogue in the United Kingdom, the United States of America, Australia, New Zealand and other countries. However in India the trade unions have more to learn from these countries to tackle the industrial problems. The phrase ‘Collective Bargaining’ is coined by famous authors Sydney and Beatrice Webb in their celebrated treatise on ‘History of Trade Unions’. Collective Bargaining is a method of determining the terms and conditions of employment and settling disputes arising from those terms by negotiating between the employer and the employees or their trade union. The very fact that the parties reserve the ultimate right to use economic weapons of strike and lock out helps in stimulating the parties to arrive at an agreement.
The Encyclopaedia Americana states that the American Federation of labour “insists upon the equity of workers in their right to bargain collectively with employers through representatives of their own choosing”.
Being a spokesman of employees and organization: It is the responsibility of human resource manager to be as, spokesman, negotiator and middlemen between management and employees for smoothening the flow of communication of management decisions from top-level to bottom level and vice versa, for cushioning conflicts if any by misunderstandings or misinterpretation and to establish healthy relations and good culture within the organisation. In sometimes HR manager should take the responsibility of a spokesman of organization when representing or dealing with other stakeholders.
Resolving conflicts among employees is major task of human Resource Management. Hr manager could follow the below steps for resolving conflicts. According to recent study human resource managers are spending considerable amount of their job time on resolving conflicts in between employees as diversity in conflicts are in raise and showing impact on performance of employees and on organization.
Understanding the cause, root and nature of the conflict.
Encourage employees to solve conflicts themselves.
Do not widen or magnify conflicts, Nip it in the bud quickly.
Give an opportunity to both sides to say and listen to them
Determine the real cause of issue, together.
Check your employee handbook for solution and guidance.
Come to a solution.
Put it on paper for make them binding and for future reference in such cases.
Train them how to communicate and avoid conflicts
HR manager should be an idealistic and set an example himself.
Objectives of Human Resource Management
To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions.
“The greatest tragedy in America is not the destruction of our natural resources, though that tragedy is great. The truly great tragedy is the destruction of our human resources by our failure to fully utilize our abilities, which means that most men and women go to their graves with their music still in them.” - Oliver Wendell Holmes.
To recognize that Human resource management exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization.
"I emphasize this - no matter how good or successful you are or how clever or crafty, your business and its future are in the hands of the people you hire". --- Akio Morita (Late) (Businessman and co-founder of Sony Corporation. Japan) Ref: The Book : MADE IN JAPAN. Page.No.145
To maintain the department's contribution at a level appropriate to the organisation's needs. Resources are wasted when Human Resource Management is more or less sophisticated than the organisation demands. A department's level of service must be appropriate for the organisation it serves.
To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organisation. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organisation.
Human Resource Information Systems
Human Resource Planning
Quality of Work Life
Problem Solving Tools Used by Quality Circles,
Recruitment & Selection
Mentoring & Counselling
Wages or Salary (Indian context)
Minimum wage -
Fair wage -
Living wage -
Whitley Commission’s Recommendations
Training & Development
Job Instruction Technique
Art.39(D) Constitution of India 1949
that there is equal pay for equal work for both men and women
Service Law – the principle of ‘equal pay for equal work’ would be applicable to all the concerned temporary employees, so as to vest in them the right to claim wages, at par with the minimum of the pay-scale of regularly engaged Government employees, holding the same post. State of Punjab Vs. Jagjit Singh [Supreme Court of India, 26-10-2016]
More organizations are replacing their annual salary increases and holiday bonuses with pay-for-performance plans. According to HR consulting firm Hewitt Associates, 78% of American companies use some form of variable pay plan to reward employees based on performance with the main incentive of aligning employee actions with corporate goals and objectives.
Standard Hour Plan
Team Awards and Bonus
Employee Stock Option Plan (ESOP)
(The Constitution of India, Art 43A)