Monday, May 16, 2011

Explain the scope and importance of Human Resource Management.

Explain the scope and importance of Human Resource Management. In the current scenario explain the HR department’s functions in your organization or an organization you are familiar with. Describe the organization you are referring to.

Human resource management has come to be recognized as an inherent part of management which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives. In other words, personnel management is concerned with getting better results with collaboration of people.
According to the Institute of personnel Management (U.K), :Personnel management is an integral but distinctive part of management, concerned with people at work and their relationships with in the enterprise. It seeks to bring together into effective organization the men and women who staff the enterprise, enabling each to make his/her best contribution to its success, both as a member of a working group and as an individual. It seeks to provide relationships with in the enterprise that are conducive both to effective work and human satisfaction.
The field of personnel management is very wide as is obvious from the fact that it is called by several terms such as labour management, manpower management’

human relationships, human management and so on.
The Indian Institute of personnel Management has laid down the scope of personnel management as follows:-
(i) The welfare aspect concerned with working conditions and amenities such as canteens, creches, housing, personal problems of workers, schools, and recreation;
(ii) The labour or personnel aspect concerned with recruitment placement of employees, remuneration, promotion, incentives, productivity, etc.
(iii) The industrial relations aspect concerned with trade union negotiation, settlement of industrial disputes, joint consultation and collective bargaining. All these aspects are concerned with human element in industry as district from the mechanical.

1. The personnel function of management deals with the proper handling of personnel in the organization. If people working in the organization are not handling or managed properly, good industrial relations will not develop which will jeopardise the survival of the organization. I t is not possible to achieve the organizational goals without active cooperation of the personnel.

2. The various aspects of personnel function relate to procurement development, compensation and motivation of the personnel. Every manager has come responsibility towards these areas, but not it has been recognized that the functions cannot be the specialty of every line manager.

3. Personnel function has become a specialized task and so it entrusted to the person who is well conversant with the principles and techniques of personnel management. The personnel manager organizes the personnel department to carry out the functions entrusted to him. Personnel department develops the sources of recruitment, selects the people and helps the line manager to place and adjust them.

4. Personnel department is also responsible for training and development of the employees. It develops various programmes for increasing the knowledge and skills of the employees in consultation with line managers. personnel department also helps the other departments in evaluating the performance of the employees for use in the future by developing a suitable system of merit rating or performance appraisal. Determining the wages and salaries to be paid to different categories of employees in the organization is another important function of the personnel department.

Sando bank is a foreign bank and has so far reaching international network with 95 outlets in 29 countries in the U.S, Europe, Asia and Oceania. It is ranked number one in terms of profits earned and number two in terms of assets, worldwide. The Indian branch at New Delhi was set up in December 1990, Rather than merely coping with the challenges presented by liberalization, the bank in principle believes that it must go beyond and pave the way for continued growth in the years that follow.

The personnel department of Sando Bank is performing following functions :-
(A) Managerial Functions:-
The Human Resource Manager is a member of the management sore must perform the basic managerial functions of planning, organizing, directing and controlling in relation to his department.
(i) Planning:-
To get things done through his subordinates, a manager must plan ahead. Planning is necessary to give the organization its goals and directions to establish best procedures to reach the goals. Effective managers recognize that a substantial part of their time should be devoted to planning. For a personnel manager, planning means determination in advance of personnel programmes that will contribute to the goals established for the enterprise.
(ii) Organizing:-
Once the personnel manager of sando Bank has established objectives and developed plans and programmes to reach them, he must design and develop organization structure to carry out the various operations. The organization structure basically includes the following:-
- Grouping of personnel logically into functions or positions:
- Assignment of different groups of activities to different individuals.
- Coordination of activities of different individuals.
(iii) Direction:-
The plans are to be put into effect by people. But how smoothly the plans are implemented depends on the motivation of people. The direction function of the personnel manager involves encouraging people to work willingly and effectively for the goals of the enterprise.

(iv) Controlling:-
Controlling is concerned with the regulation of activities in accordance with the plans, which in turn have been formulated on the basis of the objectives of the organization. controlling completes the cycle and leads back to planning. controlling helps the personnel manager to evaluate and control the performance of the personnel department in terms of various operative functions.
(B) Operative Functions:-
The personnel department of sando Bank performs the following operative functions:-
(i) Employment:-
The first operative function of personnel department is the employment of proper kind and number of persons necessary to achieve the objectives, etc. of the personnel.
(ii) Development:-
Training and development of personnel is a follow up of the employment function. It is a duty of management to train each employee properly to develop technical skills for the job for which he has been employed and also to develop him for the higher jobs in the organization.

(c) Advisory Functions:-
Human resource manager of sando Bank has specialized education and training in managing human relations he is an expert in his area and so can give advise on matters relating to human resources of the organization.
(i) Top Management:-
Personnel manager advises the top management in formulation and evaluation of personnel programmes. policies and procedures.
He also gives advice for achieving and maintaining good human relations and high employee morale.

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