Human Resource Management Content, Performance, and Productivity! HRM or HR is the management of human resources. It designing to maximize employee performance in service of an employer’s strategic objectives. HR primarily concerning with the management of people within organizations, focusing on policies and on systems.
HRM departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and benefits systems). HR also concerns itself with organizational change and industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws.
Also learn, Human resources focus on maximizing employee productivity. HRM professionals manage the human capital of an organization and focus on implementing policies and processes. They can specialize in recruiting, training, employee relations, or benefits. Recruiting specialists find and hire top talent. Also, Training and development professionals ensure that employees train and have continuous development.
This is done through training programs, performance evaluations, and reward programs. Employee relations deals with concerns of employees when policies are defective, such as in cases involving harassment or discrimination. Someone in benefits develops compensation structures, family-leave programs, discounts, and other benefits that employees can get.
Learn and Study, the Strategy and Strategic Human Resource Management (HRM)!
Strategic human resource management (SHRM) has attracted the attention of many scholars in human resource management, particularly those who shaped the development of the human resource management concept. The Strategy and Strategic of HRM! PDF, PDF Reader, and Free Download. Several definitions have been developed but they are not independent of ideas of general strategic management. Also learned,┬аCritiques of HRM! The Strategy and Strategic of Human Resource Management (HRM)!
For the purpose of raising and comparing issues covered in the areas of strategic human resource management, three definitions are offered below.
The first is from Harrison (1993: 36) who defines strategic human resource management as:┬а
“An overall and coherent long-term planning and shorter-term management, control and monitoring of an organizationтАШs human resources so as to gain from them the maximum added value and best position them to achieve the organizationтАЩs corporate goals and mission.”┬а
This definition is about decision making and the process involved in terms of putting decisions into action. The main focus here is on planning for human resources, putting management systems in place so that staffing functions maximize the use of people as required by the organization. In other words, strategic human resource management exists only if the future of the organization is set and human resource strategies are developed and used to realize the future through the present.
An aspect of short-term management control and monitoring is necessary for the realization of the mission and goals.┬а Chaturvedi, in Karadjova-Stoer & Mujtaba (2009) considers strategic human resource management as тАШlinking human resource with strategic goals and objectives in order to improve business performance and develop an organizational culture that fosters innovation and flexibilityтАЩ.
This definition is derived from both resource dependency and strategic management theories within the environment where the success of the organization is based on the ability to develop the most robust business strategy, coupled with having the right people to pursue it. However, it is important to note here that the word тАШbusinessтАЩ also covers transactions for profit.
Therefore, the achievement of the desired future for the organization is seen in terms of the ability to manage employees as the only resource that can mobilize and manage other resources. Therefore, failure to make the right decisions about people management leads to failure of the future of the organization.
Walker (1992) is more interested in the means rather than the end of strategic human resource management. The author points to the need for linking such means with the strategic component of the organization, thus strategic human resource management is about the methods of aligning the management of human resource with the strategic content of the business.
The general understanding derived from this definition is that staffing functions (recruitment, selection, placement, appraisal, rewards etc), which are used as a means of managing people should be directly linked to the strategic choice of the organization. Such choice could be growth, survival, merger, closures, diversification etc. Bhatia (2007: xiii) supports the same conceptualization of linking organizational strategy with people management by defining SHRM as:
The overall direction the organization wishes to pursue in order to achieve its goal through people as a strategic resource for the achievement of competitive advantage.
From this perspective, the goal is to generate strategic capability by ensuring that the organization has talented, skilled, committed, and well-motivated staff.
From the above definitions and scope of strategic human resource management, it is tempting to suggest that as much as it is not possible to come up with a comprehensive definition of strategic human resource management that will not be too wordy and confusing, or too short to give a clear picture of the strategic issues involved, human resource management could also be defined as the process of managing the workforce such that the organisation achieves a sustained competitive advantage over others.
Here, market forces are the drivers for strategic decision-making processes and implementation of staffing functions. In this case, strategic human resource management is both a proactive and reactive management process that transcends organizational lifespan.
Learn and Study, The Critiques of Human Resource Management (HRM)!
Human resource management has become so well established that if you talk about personnel management it seems old-fashioned. The Critiques of HRM! PDF, PDF Reader, and Free Download. Yet, there are limitations, which have also triggered questions as to whether the whole debate is not more of an academic pastime rather than utility in practice. Also learned, Philosophies and Objectives, The Critiques of Human Resource Management (HRM)!
Knowledge and skills of linking human resource strategy with business strategy are taken for granted. This task is housed in the human resource department whose staff is not necessarily trained in strategic business management. This casts doubts on the ability to establish that link.
#Human resource managers may not be perceived as business partners:
The doctrine that human resource managers should be seen by fellow managers as partners in business may be wishful thinking rather than what actually happens in practice. According to Schuler (2000), in reality, human resource managers are treated by other managers as a тАШsecond-class citizenтАЩ, whose role is more of a supplier of personnel.
#Conflict of roles:
The assumption that a human resource manager takes the role of a partner in business implies that he/she should be on the side of the management and hence employees should represent themselves. This scenario increases employeesтАЩ feeling of isolation and neglect, which can give rise to conflicts and disputes.
#Role ambiguity:
The assumption that the human resource manager should be a generalist and at the same time be able to handle specific human resource functions, leaves much to be desired with regards to the type of training suitable and efficient in human resource functions.
#Subjectivity:
The use of other strategies like teamwork, 360 degrees appraisal, and performance-based pay increase the use of subjective value judgment about individuals which may de-motivate some employees and trigger counter disruptive behaviors including rent-seeking or тАШjust please the bossтАЩ attitude.
Eight years earlier, Legge (1992) had gone further in criticising the relevance of human resource management theories to the level of almost throwing the whole philosophy out of the window. To him, human resource management poses ambiguities and contradictions such that it does not offer much which is new to academia and practicing managers. It is regarded as similar to personnel management, or a different way of referring to an advanced form of personnel management, a change of emphasis on key employee management issues and others. Table 1 presents a few of the areas of skepticism, hence making personnel management (PM) seem similar to human resource management (HRM).
Table 1 Similarities personnel management (PM) and human resource management (HRM):
Item┬а
PM
HRM
Integration of PM/HRM policies with organizational goals
яА╣
яА╣
Line management involvement in employee management
яА╣
яА╣
Employee motivation and commitment
яА╣
яА╣
Adding value
яА╣
яА╣
Source: Legge (1992).
LeggeтАЩs criticisms may contribute to the understanding of where personnel and human resource management meet and therefore help us to understand why some writers in human resource management use the concepts of personnel and human resources management interchangeably. In trying to differentiate personnel management and human resource management, and indeed, based on a critical review of key chapters in StoreyтАЩs book and other contributors to the development of human resource management in the 1980s, Armstrong (1995) has summarised the comparison between PM and HRM as shown in Table 2.
Table 2 Differences personnel management (PM) and human resource management (HRM):
Item
Personnel management
Human resource management
Goals and values
Incremental interventions in attracting, retaining, motivating workers
Strategic focus. competitiveness,┬а profitability, survival, competitive┬а advantage and workforce flexibility
Professionalism
Personnel managers are accountable for employeesтАЩ┬а matters (for which they are trained)
Line managers are accountable for their staff (they are multi-skilled)
Relations
Limited trust, conflict, and differentiation, control oriented
Harmony, mutuality of interests, active employee involvement
Employee management
Narrow in focus individualized
Broad and team focused
Information and communication
Control information and┬а communication, bureaucratic, secretive
Transparency, objectivity, honesty, trust and commitment
Learn and Study, How to Sharing human resource management functions?┬а
The traditional personnel management practice housed personnel functions in the department responsible for personnel due to the dominance of functional specialization by the departments.┬аHow to Sharing HRM Functions? PDF, PDF Reader, and Free Download. Under functional specialization, managers who were not directly involved in the production line were considered staff managers and their functions were categorized as тАШstaff functionsтАЩ. Today, the distinction between line and staff managers seems to be overtaken by events in modern organizations because the concept was based on the assumption that functional specialization was the best way to manage tasks; this is no longer the emphasis in some organizations today. Also learned,┬аHRM Philosophies and Objectives! How to Sharing Human Resource Management Functions?
However, the concept is still in use in some organizations, perhaps because old habits die hard and there is an inability among organizations to develop and manage a sufficiently multi-skilled workforce. Therefore, the use of the concept of line manager here is consistent with current thinking in our organizations. Human resource philosophies and objectives have also implied that human resource management functions can no longer be centralized in any one department. They have to be decentralized to various functional departments underline managers without avoiding duties and responsibilities at the human resource department level. In this case, some of the roles of line managers include the following.
Employee resourcing:
Line managers are responsible for developing operational and annual action plans and budgets for their departments. Such plans have human resource management implications in terms of their number and quality of which the line manager should be aware and actively participate in ensuring that the departmental objectives are achieved through people. It is the responsibility of the line manager to make sure that job analysis is effectively done, job descriptions and specifications are clear enough to be able to attract, recruit and select the most appropriate people to fill the available vacancies.┬а
Employee utilization:
Effective employee utilization is critical, not only for the good of the organization but also for the good of individual employees and their teams. Underutilised staff is a lost resource to the organization in terms of opportunity cost because even if the employee has enough work to earn a salary, the added marginal labor value will not be realized. The employee will also not have the advantage of utilizing his/her full potential and get extra rewards. However, overutilization of staff will lead to stress, fatigue, and other health problems or even the risk of loss of life. It is the duty of the line manager to put in place job strategies, objectives and targets, which are challenging enough, but not overstretching the staff ability.
Performance and reward management:
This involves setting performance criteria, assessing performance and rewarding accordingly. Without performance assessment, it will be difficult to know whether the department is achieving its objectives or not and to what extent. It is the responsibility of a line manager to sit with employees and sign a performance agreement, which will be used as the basis of individual performance appraisal. The contract itself can be permanent, temporary, part-time, but in a performance management system, the rewards are based on performance. This can be in the form of salary increment, renewal of contract, bonus, promotion, training etc.
Training and development:
Common wisdom tells us that the owner of the household knows better than the neighbor. Line managers are involved in day-to-day operations of the department. They are expected to know both general and specific knowledge, skills and attitudes required to effectively perform specific tasks by individuals, teams, and the whole department. They are also expected to know the kind of competencies that will be required in the future and help staff develop such competencies through career development programmes.┬а┬а
Handling of other human resource management functions:
Other human resource management functions may be routine or occasional and would be part of the jobs of the head of a department. These would include coordination, building a departmental team spirit and culture of performance, staff promotions, transfer, leave, managing disputes, taking disciplinary measures and layoffs. Download PDF File:┬аHow to Sharing Human Resource Management Functions?
The emphasis that line managers should be responsible and accountable for human resource management in their respective departments does not deny the human resource department its central role in ensuring that strategic objectives of the organization are achieved through effective people management. Also acknowledged by Terrington & Hall (2005), in working hand in hand with line managers, human resource managers play other important roles, which are not in conflict with what line managers do; such roles include: ┬а
Formulation of human resource strategies:
Human resource managers play a pivotal role in developing human resource strategy and policies that fit the organizational and business strategy. The roles of human resource managers are as explained below.
Provision of guidance to other managers:
The human resource manager as an expert is expected to provide guidance to other managers and staff on the interpretation of personnel strategies and policies in various areas which include human resource implications of organisational and business strategies, human resourcing, staff training and development, disputes and grievance handling, employment legislation, health and safety, layoffs etc.
Facilitation of change management:
Organisations pass through various life cycles, which require change and adaptation. Human resource managers should be well placed to facilitate the required changes in terms of design, interpretation of the implications of change and how best they could be managed. They should also be involved in the process of introducing change, including creating staff awareness and putting conditions for facilitating a change process in place.
Employee empowerment:
The concept of power is not value free. It depends on the individual perception of the source of that power and how it is interpreted and used to influence human resource management functions. The employer has many sources of power including the ability to reward and punish. Similarly, employees can reward or punish employers by deciding how and when to use their knowledge, skills, and attitudes to build or destroy the organization. It is the role of the human resource manager to ensure that there is no abuse of power and employees are empowered to make the right decisions on the shop floor in order to create an enabling environment for creativity and innovation.
Support services to other departments:
A human resource department is a place where professionalism in people management is found, thus it should be well prepared and ready to provide support services to other departments as may be required. Some areas include, the design of different instruments for transacting human resources, designing and putting in place the appropriate organisational structure and jobs for each functional area, recruitment, and selection, performance management system, training needs assessment, training and development, and employees services including pension, leave, transport, retirement, retrenchment and burial.
Human resource management, HRM, or HR Philosophies and Objectives tips, is the strategic approach to the effective management of an organization’s workers; so, that they help the business gain a competitive advantage; it designs to maximize employee performance in the service of an employer’s strategic objectives.┬аBest HRM Philosophies and Objectives PDF, PDF Reader, and Free Download. Also, The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Also learn,┬аGuide to Theories in HRM, Human Resource Management Philosophies and Objectives tips.
Learn and Study, How to Human Resource Management HRM Philosophies and Objectives Tips.
As Best Philosophies of human resource management HRM:
The Harvard and British human resource management schools and the two definitions cited from John Storey and Michael Armstrong and others suggest that human resource management is not without philosophy. Also, there are six elements on which human resource management philosophy and practices are based;
First is ownership.
Human resource management is and has to be owned and driven by the top management in the interests of the key stakeholders. Also, The stakeholders include shareholders, the managing board, the workers, clients, and customers. This is unlike the old tradition in which personnel management functions were mostly vested in designated officers under a personnel department. Under human resource management, the philosophy is that the top management owns; and, drives the agenda for effective people management in an organization.
Second is Business:
Business or organizational strategies form the basis for human resource strategies, and there should be a strategic fit. Also, This opposes putting emphasis on routine activities, reactive decision making and limited vision which seemed to characterize traditional personnel management. The implication is that an organization cannot have a strategic approach to managing the workforce without organizational and business strategy. Here, an aspect of flexible human resource planning comes in, and the ability to use the best forecasting techniques is a precondition for human resource acquisition, utilization, development, and retention.
The third is Employees:
Is considering employees as assets rather than liabilities. Under traditional personnel management philosophy, training and development of employees were quite often seen as a cost that should be avoided whenever possible. Also, Now this doctrine has been turned on its head. Investment in people, like any other capital investment, is necessary for better returns in the future.
Fourth is Value:
Is getting additional value from employees. Also, Employees are capable of producing added value. It is the role of the management to obtain such added value through human resource development and performance management systems. The concept of added value borrows from production economics. It stipulates that an employee can utilize to produce marginal output if properly trained, does the right job, and reward accordingly. Work measurement and matching jobs with the right people; as well as, measuring performance against the set targets and standards stand out clearer under the human resource management school of thought.
Fifth is employee commitment.
Organizational success comes from the employeesтАЩ total commitment to the organizational mission, goals, objectives, and values. Also, EmployeesтАЩ understanding of the future of the organization; and, their own future in the organization triggers commitment and hence sustained productivity. It is the task of the management to induce and encourage that commitment.
Sixth is also based on employeesтАЩ commitment.
Building a strong organizational culture gives managers an advantage in stimulating employeesтАЩ commitment. Effective communication, training, coaching, mentoring and performance management processes are effective tools for building a strong corporate culture.
These philosophies have been accused of being insensitive to the human face of working relationships because they are, in many ways, about tightening the nuts and bolts in every aspect of employment. As a strategy to reduce what seemed too extreme hard-nosed human resource management philosophies and practices (that is employers were becoming too selfish, individualistic, and greedy тАУ trying to maximize whatever possible benefits at the expense of employees); the focus in the 1990s changed somewhat.
The direction changed more towards team working, employee empowerment; organizational learning, and competency-based human resource management. Also, Human resource management debates of the 1990s and 2000s became focused on trying to understand these new concepts, and, how useful they are in improving human resource management functions in modern organizations. Other areas are the internationalization of human resource management; and, the impact of globalization on human resource management, particularly in the developing world.
As Top Objectives of human resource management:
The objectives of human resource management derive from the philosophies; which tie the emergence and development of human resource management together, both as a discipline and profession (Beer & Spector 1985; Cuming 1985; Armstrong; 1995; Dessler 2005).
The First Objective.
The whole aim was on trying to achieve an organizational mission, vision, goals, and objectives using people as valuable resources. Unlike the traditional personnel management theory whereby employees were seen as instruments needed to accomplish work in organizations; human resource management managers recognize and appreciate the need for putting people at the top of the agenda in achieving organizational objectives. As the power of the organization depends on the nature of the workforce; putting employees first in all human resource management functions in the organization; and, making them feel that they are at the top sees as a step further in putting the organization first among competitors.
The second objective concerns the utilization of staff capacity.
Successful organizations are those that can fully utilize the potential of their employees. Also, This manifests itself in different approaches used in job design, recruitment, and placement. This includes redesigning jobs so that related jobs can be done by one person, recruitment of multi-skilled employees, part-time work arrangements, sub-contracting etc.
The third objective.
Involves ensuring that employees commit to their jobs, teams, departments, and the entire organization. Striving for total employee commitment intends to minimize unnecessary conflicts between the employees; and, the management that could result in low morale among the employees, high employee turnover, and ultimately low productivity. Also, Commitment foster by using various strategies including employees being nurtured through coaching, mentoring, and the provision of lucrative rewards.
The fourth objective.
Is to ensure that organizational systems, processes, and activities integrate and synergized through a strong organizational culture. Organizational culture makes up of values, attitudes, norms, myths, and practices that are тАШhow things are done aroundтАЩ. Different categories of jobs, professions, and departments see as a тАШwholeтАЩ rather than disjointed. Organizational symbols, songs, artifacts, etc. use to foster a culture of uniqueness; which makes employees feel proud of their jobs and the organization.
The fifth objective.
Is optimal utilization of available resources. In the language of economics, resources are always scarce. Organizations cannot succeed if resources (employees, finance, machinery and equipment, energy) overutilize, underutilized, or utilize at the wrong time or in the wrong place. Each of these scenarios would suggest that there is a waste of resources because some will easily deplete, unnecessarily leaving them idle or being uses unwisely. In this case, matching resources with performance is a mechanism for monitoring organizational efficiency. Quite often time/activity/outcome and budget schedules use to match resources with performance. Any observed underutilization or overutilization of resources has implications in terms of how the human resources were used and measures are taken accordingly.
The sixth objective.
The reason for embracing human resource management practices derives from organizational cybernetics and systems theory whereby the underlying principle is that тАШthe sum is less than the wholeтАЩ. From a human resource management perspective, each job, organizational unit, section, department, and all categories of staff see in their totality. Working together instead of as an individual is a method for improving synergy at all levels. Departmental outdoor training programs are some of the initiatives use to improve synergy at the functional level.
The last objective.
But one objective covers the utilities of creativity, innovation, teamwork, and high-quality management as key drivers in organizational excellence. Matching with changing customer needs and expectations requires the presence of an environment for creativity, innovation, team working and an obsession with quality. These ideas largely borrow from Tom Peters and Robert Waterman on an ideal situation for effective organizations in search of excellence, Joseph Schumpeter on the power of creativity and innovation, Joseph Juran, Edwards Deming, and Ishikawa Kaoru on the emphasis of тАШquality in the first time and zero defectsтАЩ as part of organizational culture in high-quality management.
These are cited as key explanations for the excelling of Japanese and other East Asian companies. Decentralization of decision making to the lowest levels in the organization structure, adaptation of flatter organizational structures, open office layouts, team-building exercises, encouragement, support, and reward for innovative ideas; and, the use of quality circles in job performance are some of the strategies used to keep the organization at the cutting edge.
The last objective is to enable managers to be flexible; and, adapt to changes required in pursuing excellence in human resource management functions. Fast-tracking a change in an organizational environment requires the ability to take prompt decisions and take the right measures before it is too late. Also, Flexibility and adaptation seek to reduce bureaucracy and inflexible working rules and regulations. Above you may understand about Best Human Resource Management HRM Philosophies and Objectives; What matters most is not тАШhow the job is done but what is achievedтАЩ.
Human Resource Management HRM Philosophies and Objectives
Learn and Understand, Why Change to Human Resource Management?
From the late 1970s and early 80s, we witnessed many developments and challenges which disturbed the stability of economic, political, technological and academic environment experienced in the 1960s. The Evolution and Development of HRM are Continue, Next, Why Change to HRM? with PDF, PDF Reader, and Free Download.┬аAlso learned, MIS, Why Change to Human Resource Management?
These challenges have had enormous impacts on people management in organizations perhaps more than at any time in human history.
The shift in global macro policy framework:
The late 1970s and early 80s was an era of neoliberalism in which market forces were a driver of institutional frameworks of nation states and organizations. This was a period when we witnessed strong arguments against direct state involvement in the economy. It is not clear what was the тАШchickenтАЩ or тАШeggтАЩ between politicians and academics or who these people, often referred to as тАШexpertsтАЩ of the World Bank and the International Monetary Fund are, and what their role in the architecture and birth of neoliberalism and marginalisation of the role of government in economic development is.
However, whatever the case may be, both politicians and consultants were important in the doctrine of neoliberalism. One of the foremost advocates of neoliberalism was the former conservative British Prime Minister Margaret Thatcher and her counterpart conservative president of the United States of America Ronald Reagan whose philosophies were known by their names, that is, Thatcherism and Reaganism respectively.
They brutally blamed earlier liberal governments for causing the economic crisis of the 70s through excessive government control of economies and overprotection of employees. The privatization of state-owned organizations, relaxation of legislation in favor of the private sector and the urge for profit maximization became the new agenda and both the desired and required framework for managing organizations and the workforce. Therefore, costs consciousness and the pressure to justify the role of employees in developing and sustaining organizations in the market became a challenge. Failure to respond to these challenges through proper personnel management strategies was seen as a slippery slope towards the collapse of companies that had long historical roots of the successful business.
Business competition:
The 1980s and early 90s witnessed an uncertain, chaotic and often turbulent business environment. Increased competition from Japan and other international companies with cheaper but high-quality goods was a challenge to American and European organizations. In reaction to the new competition and as a strategy for coping with the crisis, a substantial number of organizations experienced takeovers, mergers, and business closures. These were also accompanied by heavy losses of work, working on part-time, the need for individuals to become multi-skilled, and the contracting out of some work. Partly as a way of addressing these challenges the role of the personnel specialist had to change from reactive to proactive and from routine to strategic approach to the management of personnel functions so as to be able to match the unpredictable environment.
Change in customer needs and expectations:
A change in customer taste, fashion, and quality of goods to reflect their purchase price put more pressure on the organizations to get the best out of their production systems, processes, and employees. This could only be achieved by getting the best people from the labor market, develop, reward, and ensure that they are committed to high-quality service to the organization. In order to achieve these objectives, an enabling environment for employee creativity and innovation became a necessity. This new demand had an impact on recruitment and selection criteria, staff development and reward systems as well as the roles of personnel specialistтАЩs vis-├а-vis line managers in personnel management functions. The role of personnel had to change from that of a doer of personnel functions to that of a partner in providing support services to other departments to perform personnel functions. Also learned,┬аGuide to Theories in Human Resource Management!
Technological change:
The competition was also intensified by the organizations that could adopt and adapt flexible specialization technologies to meet customer needs and expectations. The implications were that organizations had fewer, but better-trained people, flexible to cope with rapid technological changes. Continuous learning and adaptation based on teams became a natural area of focus on people management. Information technology destroyed knowledge monopoly. The power of knowledge became how best to use it, rather than who owns it.
Change of philosophy of employee relations:
The power of employees was through legislated trade unions where thousands of employees under the industrial production system held power. Therefore, the power of individual employees in the employment relationship was vested in a collective solidarity. Mass redundancies, less protective role of the state, as well as the declining role of trade unions, made life more individualistic than collective. The change of employee relations from collectivism to individualism was an automatic consequence of the above changes. Employment relations became more based on arrangements and agreements between the employee and employer as opposed to the use of trade unions and labor legislation.
Developments in the academia:
Building on the knowledge accumulated in previous decades and research that was being conducted particularly in the 1980s and early 1990s, it appeared that organizational strategy and strategic approach to managing employees was the best option for responding to challenges facing organizations (Hendry 1995). The Human Resource Management School, advanced by academics from America and Europe, which spearheaded the concept of тАШstrategic approachтАЩ to managing people, became the center of debates and development of human resource management as a philosophy distinct from personnel management. The Excellence School propounded by Peters & Waterman and their followers on the role of strong organizational cultures and commitment to excellence also have had a remarkable influence on the development of human resource management (Storey 1989). Some areas of corporate management including the size, structure, strategy, culture, product, and organizational life cycle were now included in human resource management (Schuler 2000).
The major issue was how personnel management functions could make an impact on the functional level, as part of supporting other departments, as well as being part of business strategy. Personnel managers had to become partners in the business. As part of improving employeesтАЩ utilization, a more rigorous method of assessing the performance of employees in relation to rewards was also developed. The introduction of performance management systems and reward systems based on performance was an indication of changes in personnel management practices.
Within these changes, personnel management was redefined and the concept of тАШhuman resource тАШvis-├а-vis тАШpersonnelтАЩ was adopted, although the debate concerning the differences continues (Storey 1989). However, as may appear in the literature, the difference between тАШhuman resourceтАЩ and тАШpersonnelтАЩ may be clear or unclear (Armstrong 1995). This difference depends on the taste, or on the taste and fashion rather than on what managers do, this is notwithstanding the fact that most academics and managers in organizations use the term human resource management as opposed to personnel management when referring to people management even without making the conscious effort to distinguish between the two.
Perhaps the most popular definitions of human resource management are those suggested by Storey and Armstrong because such definitions are based on thorough reviews of earlier works from both American and European human resource management debates. Storey looks at human resource management as:
тАж A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an integrated array of cultural, structural and personnel techniques.
It is worth noting here that the focus of human resource management is on employee management techniques that are directed towards gaining competitive advantage depending on the adopted business or organizational strategy. Armstrong also appreciates the role of strategies but goes further by emphasizing the need for robust personnel systems, which will take care of employees (individuals and teams), as valuable assets where investment is crucial. Thus, he defines human resource management:
тАж As a strategic and coherent approach to the management of organizationsтАЩ most valued assets тАУ the people working there who individually and collectively contribute to the achievement of business objectives. ┬а
By looking at the various debates in academia and good practices in personnel and human resource management, human resource management may be further defined as a strategic approach and management practice of managing employees so that there is the sustainable achievement of an organizational mission, goals, and objectives. These definitions are conclusively derived from the American and European schools of thought.
The evolution and development of human resource management have relied on two traditions. These are the American, alias Harvard and European under the leadership of British academics, particularly from the University of Lancaster.
Learn and Study, The Evolution and Development of Human Resource Management!
Human resource management as a practice happens wherever there is more than one person. The Evolution and Development of HRM with PDF, PDF Reader, and Free Download. It starts at the family level where family members take different roles and responsibilities for the accomplishment of family objectives. The head of the household would harness all available resources including people to find the best in them in order to achieve whatever may be needed or desired. Indeed, the division of labor depends on the philosophies, values, and expectations of family members and which are rooted in the wider society, be it a clan, a tribe or religion. Also learned,┬аGuide to Theories in HRM! The Evolution and Development of Human Resource Management!
Managing people in an organizational setting is well documented throughout the history of mankind. Organisational structures evolved, leadership emerged or was formed, roles and responsibilities were assigned to people, accountability systems were laid down, and rewards and punishments were also provided. In this regard, the division of labor, specialization, and accountability were systematically organized to achieve a specific purpose.
However, the documentation of the evolution and development of human resource management practices can be traced back to the booming European economy of the 1900s. This economy created the necessary environment for more serious thought on the role of effective people management in the emerging labor market of the time. The economies were preparing for the First World War and its aftermath where industrial production required a mass of skilled, well organized and disciplined labor force. The challenges revolved around mobilization of resources including people, which led to the evolution and development of four stages in managing labor. The stages were mainly identified by looking at the changing titles of officers responsible for managing the workforce and different roles that were emerging over time.
Therefore, although personnel management literature often states particular dates or decades of transformation from one phase to another, as a matter of principle, such dates or decades are more for convenience and reference purposes than being actual historical events. The same recognition is used to provide a picture of the chronology of the evolution and development of human resource management as we see it today. Figure 1 displays the stages in the evolution of human resource management.
Welfare stage in industrial age:
Historically, the 1900s was a time of increasing technological and economic breakthroughs arising from continued advancement in general and scientific knowledge through creativity and innovations. Indeed, the advancements had the serious impact on economic growth and demand for goods and services in Europe and in Germany in particular for the preparations of World War I. More goods were demanded, and the massive production of goods could be done more efficiently than ever before, under one industrial roof. This was a common phenomenon across.
Figure 1 Stages in the evolution and development of human resource management.
Western Europe particularly in Britain, France, Spain, and Italy. For the Germans who were secretly preparing for war, the production of war materials created a chain of industrial networks with forwarding and backward linkages. Managing the increasing workforce in the emerging complex industrial production systems was an ever-more difficult challenge. The search for solutions, which included how to organize employees and ensure that their welfare was provided for, led to the need for better people management techniques that were not necessarily important only a few years before.
Welfare services such as a canteen and other needs required some kind of officer whose sole purpose was to take care of workers. This is the genesis of employeesтАЩ welfare services in organizations and the famous title of welfare officers we have in some organizations even today.
Change of focus from welfare to personnel administration:
The 1920s and mid-30s are generally regarded as decades of personnel administration. The growing size of organizations and pressure to improve productivity called for the need to recruit, select, train, keep records, appraise, motivate, control, and improve production of job entry level of employees and those in the job as part of job orientation. These administrative tasks were best handled by welfare officers because of their experiences in welfare matters. However, since the roles of welfare officers changed in nature and scope and became more demanding in terms of knowledge, skills and behavioral attributes, the whole situation suggested that the title of welfare officer was not good enough to describe what was actually happening. To address these new dimensions of a welfare job, the title had to change from welfare officer to personnel administrator.
Evolution and development of personnel management:
This covers the period during and after World War II. In the 1940s and 50s, there was an ever-growing role for personnel administration to cope with the rising challenges and demands of the job which included craft, supervisory training and labor disputes that were threatening employees and organizational efficiency. These new dimensions in employee management were exacerbated by developments in academia, professional managers interested in academics and consultants where efforts were devoted to study behavioral factors in job performance.
Such developments include human relationsтАЩ school, which was pioneered by Elton Mayo and Kurt Lewin, who emphasized on improving the work environment and work groups as a strategy to improve productivity. Treating employees as human beings rather than working tools was a new doctrine that was revealing other aspects of people management in other phases of personnel management. This period marked a shift in emphasis from managing an individual employee to managing groups/teams in the organization.
Other contributions were from the work of Abraham Maslow on the human hierarchy of needs and the power of employeeтАЩs motivation on productivity. Later, Chris Argyris and Frederick Herzberg wrote about the concept of employeeтАЩs satisfaction and the significant impact this concept has had on the organizational practices in improving the quality of work in organizations. The organization development school driven by Bennis & Schein provided equally useful inputs to personnel practices particularly in areas of effective communication and the need to reduce conflict in the workplace.
Therefore, to suit the fashion of the time, there appeared to be a difference between тАШadministrationтАЩ and тАШmanagementтАЩ. Likewise, there is a difference between тАШadministratorтАЩ and тАШmanagerтАШ, where the former appears to be dealing more with routine activities, the latter deals with more strategic issues. There is, however, an on-going debate in academia on the semantics and the actual substance of personnel jobs.
During the 1950s and 60s personnel management as a professional discipline matured as characterized by most personnel management theories, practices, and processes we know today. In addition to the services provided in the earlier phases, other areas covered in the functions of personnel management, particularly in the 1960s, were organizational development, management development, systematic training and manpower planning. Better processes and techniques of employee selection, training, wages and salary administration and performance appraisal were introduced. The other area was industrial relations in which personnel managers became experts in labor law and represented their organizations in industrial relations disputes.
Therefore, personnel management as a type of management in organizations has evolved into a distinctive discipline. Perhaps one of the most widely accepted descriptions of the meaning of personnel management is the one given by Michael Armstrong in 1995. This definition is not very different from the ones found in revised editions and other textbooks on human resource management throughout the 2000s. Armstrong (1995) defines personnel management as тАШthe process and practice of getting people in an organization, assessing and rewarding for performance, and developing their full potential for the achievement of organizational objectivesтАЩ.
By looking at personnel management in this perspective, as may also be noted from other work by the same author, and many other experts including Dessler (2005) and Bhatia (2007) there are many functions that ought to be performed in a designated functional department (personnel department). However, as shall be observed later, these functions are not by themselves necessarily different from those under a human resource management conceptual framework.
The personnel functions are summarised and explained below as follows.
Establishment of the organizational structure:
This involves establishing the organizational structure in a way that will enable the realization of the intended mission, vision, goals, objectives, strategies, and tasks. It is like an African saying that тАШyou scratch your back where your hand can reachтАЩ. No single organizational structure can suit all organizations because the suitability of an organizational structure will depend on where the organization is, and what its future prospects are. If the mission of the organization involves rapid growth and expansion, a tall bureaucratic structure may not be desirable because such a structure slows the decision-making process, which in turn, stifles flexibility, creativity, and innovation. A personnel officer who is fundamentally responsible for effective manning levels in the organization has the mandate to become part of the organizational structure design team.
Human resourcing:
Resourcing is a concept that has emerged with the use of the term тАШhuman resource planningтАЩ as we shall see later. It involves a process of enabling the organization to have the right people, doing the right jobs at the right time. This is in line with the challenges facing managers in staffing organizations. It is about planning for the number and quality of employees required under different job categories and to make sure that staffing process such as recruitment, selection, placement, promotions, transfers, and downsizing are effective.
Managing performance appraisal:
The personnel department has to initiate the system, process, techniques and tools for individuals, teams and organizational performance measurement. It has to ensure that performance targets for individuals, teams, sections, and departments are set and agreed upon and measures to address performance gaps are in place and are working. This is not an easy task because it requires a value judgment about employees. Indeed, there are no other areas of personnel management that make personnel officers more uncomfortable and unpopular than the appraisal function. This is because whatever process or tool is used to appraise staff and reward them accordingly, there is always tacit or explicit dissatisfaction from staff based on the feelings that such decisions were biased. Progress has been made towards improving staff appraisal systems, which will be covered later under performance management.
Personnel training and development:
Since the performance of the organization depends on the competence of the workforce, training and development are important, not only for the present job but also for the future job and organization. The head of the personnel department has to design tools for assessing the need for training that will be used to identify training and development gaps and develop effective strategies and programmes for training and developing staff. In most large organizations and more so in government ministries, there are departments and officers responsible for ensuring that personnel training and development functions are carried out effectively.
Compensation/Rewards management:
The words тАШcompensationтАЩ and тАШrewardтАЩ are often used interchangeably in contemporary personnel management. Although in principle, the two concepts may mean the same thing, they have different philosophical roots. Whereas the former is based on the interpretation that work is not necessarily a good thing and hence those who work lose something which should be compensated, the later considers work positive and something which has to be rewarded depending on the quantity and quality of accomplishment. Therefore, employees need different types of compensations or rewards for the effort they expend on the job and enable the organization function. It is the duty of the human resource department through the responsible officers to evaluate different types and levels of jobs in order to develop appropriate compensations or rewards in terms of pay and other incentive packages.
Personnel relations:
Relationships between an employer and employee and among employees in the workplace need to be nurtured to avoid conflicts and disputes which will ultimately lead to unproductive behavior. The personnel department is well placed for this job as it has staff trained in people management particularly in industrial legislation, labor laws, and conflict management. Some industrial organizations employ lawyers as industrial relations officers, but qualified personnel officers should be able to perform this role. However, other experts such as lawyers and professional counselors may be consulted where necessary.
Other routine personnel administration functions:
There is a myriad of other personnel functions, which are basically routine work and constitute day-to-day administrative activities performed by personnel officers depending on the size and scope of the organization. These functions include but not limited to, health, transport, security and safety, pensions, deaths, and personal information system.
Human resource management theorists or theories, principles, and techniques for people management in competitive organizations draw from theories found in different disciplines. Guide to Theories in HRM Study with PDF, PDF Reader, and Free Download. Indeed, it is impractical to present all the disciplines and relevant theoretical aspects. That has shaped the understanding of human resource management today. Therefore, it is believed that it is only important to give the reader a cursory view of some relevant theories underpinning human resource management, and whoever may be interested in knowing more about the genesis and developments of a specific theory may do so by taking extra homework.┬а Also learn, MIS, Guide to theorists or theories in Human Resource Management.
Learn and Study, Guide to theorists or theories in Human Resource Management.
Organization life cycle theory:
Cameron & Whetton (1981) advanced organization life cycle theory which characterizes organizational development from formation, growth, maturity, decline, and death. According to the theory, the driving force in all these stages is the nature of the workforce. Also, at the maturity stage, the organization cannot continue to grow or survive if there is no organizational structure. That supports human resource creativity, innovation, teamwork, and high performance, which will withstand pressure from competitors.
Role behavior theory:
Role behavior theory aims to explain and predict the behavior of individuals and teams in organizations. Which, in turn, informs managers about decision-making. And what steps they take on people management as well as the expected consequences. Some of the key ideas focus on the need to improve the working environment including the resources to stimulate new behavior in employees for them to cope with new demands, it includes the use of rewards to induce and promote positive work behavior, and punishments to control negative behavior.
Resource dependency theory:
One of the challenges faced by managers during the economic recession in the 1970s is how organizations can best acquire scarce resources and effectively utilize them to remain competitive in the market. Also, the ability to utilize oneтАЩs resources including (financial, technological, and labor). And acquiring more from the external environment was one of the areas of concern in many organizations.
The more organizations were able to harness resources, the more competitive they became. Therefore, resources were seen as the essence of organizational power (Emerson 1962). However, overdependence on external resources appeared to be risky due to uncertainties that cannot be controlled by the organization. Concerning useful labor, the emphasis shifted to seeing employees as scarce resources that should acquire effectively, utilize, develop and retain.
Institutional theory:
The word тАШinstitutionтАЩ means different things to different people depending on their Academic and professional orientation (Peters 2000). However, it is a discipline that combines politics, law, psychology, public administration, and economics amongst other things. To explain why certain decisions are made or actions were taken and their impact on the organization. Commons (1931: 648) defines тАШinstitutionsтАЩ as тАШcollective action in control, liberation, and expansion of individual actionтАЩ.
Collective action covers areas such as customs, law, and procedures. The main objective of collective action is less or greater control of the acts of individuals. Which results in either gains or losses in the process of executing joint transactions. Control is about prohibitions of certain acts in such a way that the control of one person or organization leads to the liberty of others and hence better gains.
According to Commons (1931), these institutions establish relationships of rights, duties, no rights, and no duties which influence the behavior of individuals. тАШThe major role of institutions in society is to reduce uncertainty by establishing a stable (not necessarily efficient) structure to human interaction.тАЩ Institutions could be formal and have explicit rules, contracts, laws, and rights (institutional arrangements) or informal in the sense of social conventions that are not designed by anybody.
Therefore organizations should set an appropriate institutional framework. That will bind and influence the behavior of employees toward an organizational commitment to excellence. Also, put by Brunsson (1999): тАШthe process of standardization of procedures affect behaviorтАЩ. Employment contracts, performance agreements, and other employment-related instruments should, therefore, see as useful aspects of human resource management.
Transaction cost theory:
Transaction cost theory is based on the economic view of the costs of conducting business transactions. The thesis is that companies will grow if the costs of exchanging resources in the company are cheaper in comparison to competitors. Such costs include bureaucratic employment structures, procedures, and the enforcement of employment contracts. For that matter employment relationships that may lead to high costs of exchange, should minimize.
Comparative advantage theory:
The main architect of comparative advantage theory is the economist David Ricardo. Who talked about the specialization and division of labor among nations and firms. Ricardo postulated that nations should produce goods in which they have a domestic comparative advantage over others. Since then, organizations and nations have focused on strengthening internal capacity to have more advantages relative to competitors and hence to reduce production and distribution costs per unit. Improving internal capacities include having the best human resources that best utilize to produce cheaper and better quality goods and services. ┬а
General systems theory:
No organization can survive without interacting with its environment. Organizations get inputs from the external environment, and the process and the outputs are released to the external environment. Which provides feedback to the organization. As well as, Customers who are part of the environment will give feedback by using different means including value judgment on quality, price, style, and fashion.
Therefore organizations see as systems with components and parts that relate and interconnect in such a manner that the failure of a component or part leads to the failure of another. The system approach to understanding organizations considers the human resource department. As a component of the organizationтАЩs system that also has other departments such as accounting, engineering, marketing, etc.
For the organization to grow and remain competitive, each department, section, or unit should support each other. One of the organizationтАЩs inputs from the environment is human resources. For example, if an organization makes an error with its recruitment strategy. It will hurt the whole organization.
Similarly, if at the input processing stage, human resources do not utilize in the best possible way. The same will reflect in the quality and price of goods and services through feedback mechanisms. This may include the failure to sell goods or services at the expected prices.
Human capital theory:
The human capital theory was initially well developed by Becker (1964) and it has grown in importance worldwide because it focuses on education and training as a source of capital. It is now widely acknowledged that one of the key explanations for the rapid development of Asian countries in the 1970s and 80s is the high investment in human capital.
Human capital theory changes the equation that training and development are тАШcosts the organization should try to minimize into training and development as тАШreturnable investmentsтАЩ which should be part of the organizational investment capital. Therefore, human resource training and development decisions and evaluations have to do based on clearly developed capital investment models.┬а
Strategic contingency theory:
There is a growing body of knowledge stipulating that since an organization operates and thrives in a complex environment, managers must adopt specific strategies that will maximize gains and minimize risks from the environment.
In this premise, the theory contends that there is no one best strategy for managing people in organizations. Overall corporate strategy and the feedback from the environment will dictate the optimal strategies, policies, objectives, activities, and tasks in human resource management.
Organizational change theory:
Gareth (2009: 291) defines organizational change as the process by which organizations move from their present state to some desired future state to increase their effectiveness. Organizations change in response to many developments taking place in the internal and external environment. Such as technology, policies, laws, customer tests, fashions, and choices that influence peoplesтАЩ attitudes and behavior.
These developments influence different aspects of human resource management and in response, organizations have to change the way organizational structure, job design, recruitment, utilization, development, reward, and retention are managed. The organizational change theory suggests the improvement of organizational change and performance by using diagnostic tools appropriate for the development of an effective change strategy in human resource management.
Organizational learning theory:
Globalization has changed knowledge monopoly. Knowledge generated in one part of the world spreads faster than a decade ago. Today, what matters for organizational competitiveness is the ability to learn from emerging knowledge and adapt the learning to suit the organizational environment faster than others.
Agyris & Schoen (1978) and Senge (1992) have emphasized the importance of total organizational learning whereby individuals and teams muster knowledge related to their work and the environment. And, share with the common vision, models, and strategies for addressing the present and future of the organization.
Therefore, poor organizational learning leads to poor organizational adaptation to the environment and less competitiveness. Which leads inevitably to decline and ultimate collapse.
Comparison:
Schuler (2000) has summarised these theories into a more manageable framework (see Table 1). This framework enables us to compare human resource theories and their main objectives.
Table 1: Human resource management theorists or theories.
Human resource theories
Source: adapted from Schuler (2000).
Theories, as stated earlier and summarized in Table 1, are useful in shaping debates and professional practice in the process of evolution. And, the development of human resource management as a discipline as well as a profession. The usefulness of the conclusions reached from these theories will unfold. As we go through the process of the evolution of human resource management over the past hundred years.
Guide to Theorists or Theories in Human Resource Management
Learn, What is Internal and External Sources of Recruitment of Employees?
Sources of Recruitment of Employees: Internal and External Sources (with its Advantages and Disadvantages)!┬аThe searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of the recruitment process. Also learn, Recruitment, Internal and External Sources of Recruitment of Employees!
The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources.
(A) Internal Sources:
Best employees can be found within the organizationтАж When a vacancy arises in the organization, it may give to an employee who is already on the payroll. Also, Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can inform of such a vacancy by internal advertisement. Also learn,┬аWhat is the Internal Sources of Recruitment?
Methods of Internal Sources:
The Internal sources are given below:
1. Transfers:
The transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.
2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities, and more pay. The higher positions falling vacant may fill up from within the organization. A promotion does not increase the number of persons in the organization.
As well as, A person going to get a higher position will vacate his present position. The promotion will motivate employees to improve their performance so that they can also get the promotion.
3. Present Employees:
The present employees of a concern are informing about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieving of looking out prospective candidates.
The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. Also, the existing employees take full responsibility for those recommended by them and also ensure their proper behavior and performance.
Advantages of Internal Sources:
The Following are The Advantages of Internal Sources:
1. Improves morale:
When an employee from inside the organization is given the higher post, it helps in increasing the morale of all employees. Generally, every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements).
2. No Error in Selection:
When an employee is selecting from inside, there is the least possibility of errors in selection since every company maintains a complete record of its employees and can judge them in a better manner.
3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secure on account of chances of advancement.
4. No Hasty Decision:
The chances of hasty decisions are completely eliminating as the existing employees well try and can rely upon.
5. The economy in Training Costs:
The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings the economy to training costs.
6. Self-Development:
It encourages self-development among the employees as they can look forward to occupying higher posts.
Disadvantages of Internal Sources:
(i) It discourages capable persons from outside to join the concern.
(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization.
(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot follow.
(iv) If the only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.
In spite of the disadvantages, it is frequently using as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may employ on the basis of their recommendation and not suitability.
(B) External Sources:
All organizations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needs when expansions are undertaking. Also learn,┬аWhat is the External Sources of Recruitment?
The external sources are discussing below:
Methods of External Sources:
1. Advertisement:
It is a method of recruitment frequently use for skill workers, clerical and higher staff. Advertisement can give in newspapers and professional journals. These advertisements attract applicants in a large number of highly variable quality.
Preparing good advertisement is a specializing task. If a company wants to conceal its name, a тАШblind advertisementтАЩ may give asking the applicants to apply to Post Bag or Box Number or to some advertising agency.
2. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often using as a source of recruitment. In certain cases, it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.
3. Schools, Colleges, and Universities:
Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spot during the course of their studies. Junior level executives or managerial trainees may recruit in this way.
4. Recommendation of Existing Employees:
The present employees know both the company and the candidate is recommending. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.
In certain cases, rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favoritism, it will impair the morale of employees.
5. Factory Gates:
Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labor. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.
6. Casual Callers:
That personnel who casually come to the company for employment may also consider for the vacant post. It is a most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.
7. Central Application File:
A file of past applicants who were not selected earlier may maintain. In order to keep the file alive, applications in the files must check at periodical intervals.
8. Labour Unions:
In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may ask to recommend candidates either as a goodwill gesture or as a courtesy towards the union.
9. Labour Contractors:
This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick kiln industry. The contractors keep themselves in touch with the labor and bring the workers to the places where they are requiring. They get the commission for the number of persons supplied by them.
10. Former Employees:
In case employees have been laid off or have left the factory on their own, they may take back if they are interested in joining the concern.
11. Other Sources:
Apart from these major sources of external recruitment, there are certainly other sources which are exploiting by companies from time to time. Also, These include special lectures delivering by the recruiter in different institutions, though apparently, these lectures do not pertain to recruitment directly.
Then there are video files which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of the company to various audiences, thus creating interest in them.
Various firms organize trade shows which attract many prospective employees. Also, Many a time advertisements may make for a special class of workforce who worked prior to their marriage.
These ladies can also prove to be the very good source of the workforce. Similarly, there is the labor market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.
Merits of External Sources:
1. Availability of Suitable Persons:
Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training, and education.
2. Brings New Ideas:
The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position.
3. Economical:
This method of recruitment can prove to be economical because new employees are already training and experience and do not require much training for the jobs.
Demerits of External Sources:
1. Demoralisation:
When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns.
2. Lack of Co-Operation:
The old staff may not co-operate with the new employees because they feel that their right has been snatch away by them. This problem will be acute especially when persons with higher positions are recruiting from outside.
3. Expensive:
The process of recruiting from outside is very expensive. Also, it starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to repeat.
4. The problem of Maladjustment:
There may be a possibility that the new entrants have not been able to adjust to the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have the adverse effect on the working of the organization.
Suitability of External Sources of Recruitment:
External Sources of Recruitment are Suitable for The Following Reasons:
(i) The requiring qualities such as will, skill, talent, knowledge etc., are available from external sources.
(ii) It can help in bringing new ideas, better techniques and improving methods to the organization.
(iii) The selection of candidates will without preconceive notions or reservations.
(iv) The cost of employees will minimal because candidates selected in this method will place the minimum pay scale.
(v) The entry of new persons with varied experience and talent will help in human resource mix.
(vi) The existing employees will also broaden their personality.
(vii) The entry of qualitative persons from outside will be in the long-run interest of the organisation.
