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Human resources is a term used to describe the individuals who comprises the workforce of a organization although it is also applied in labor economics too, for example business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategy and politic relating to the management of individuals.
Human resourses is a relatively modern management term having been coined in the 1960s.The origins of the functions arose in those organizations which introduced 'welfare management' practices and also in those that adopted the principles of 'scientific management'.From these terms emerged a largly administrative management activities.
Human resources progressively became the more usual name for this functions. In the first instant in the united states as well as multinational cooperation reflecting the adoption of a more quantitative as well as strategic approach to workforce managementby corporate management and the greater competitiveness for limited and highly skilled workers.
History of hrm:
The early development of the function can be traced back to atleast two distinct movements. One element has its origins in the late 19th century, where organizations such as Cadburys at its Bournville factory recognized the importance of looking after the welfare of the workforce and their families. The employment of women in factories in the United kingdom during the first world war lea to the introduction of ' Welfare officers', Meanwhile in the united states the concept of human resources developed as a reaction to the efficiency focus of taylorism or scientific management in the early 1900s which was developed as a response to the demand for ever more efficient working practices within developed as a response to the demand for ever more efficient working practices within highly merchandised factories such as those of the Ford Motor company. By 1920,psychologists and employment experts in the united states started the human relations movement which viewed workers in the terms of their psychology and fit with companies rather than as interchangeable parts.
During the middle of the last century larger corporations typically those in the united states which had emerged after the second world war recruited personnel from the us military and were able to apply new selection, training,leadership and management development techniques,originally developed by the armed services working with for example, university based occupational psychologists. Similarly ome leading European multinationals such as shell and Philips had developed new approaches to personnel development and also drew on similar approaches already in use by Civil Service sophisticated politics and processe requiring more centralized management via a Personnel Department comprising a range of both specialists and generalist teams.
The role what would become more universally known as human resources grew throughout the middle of the 20th century. Tensions remained between academics placing emphasis either on what became known as Soft or Hard HR. Those professing so called soft HR stressing the importance of such areas as leadership, cohesion and loyally which played important roles in organizational success. Meanwhile those promoting hard HR continued to champion the advantage the more quantitively rigorous and less soft management techniques of the 1960s.
In the later part of the last century, both the title and traditional role of the personnel functions was progressively being superseded with the emergence, in larger organizations at least, of so called strategic human superseded with the emergence,in larger organizations at least, of so called strategic human resources management and the development of sophisticated human resources departments. Initially this may have involved little more than a renaming of the function,but where a transformation has occurred it has become distinguished by the human resource departments. Initially this may have involved little more than a rnaming of the function but where a transformation has occurred it has become distinguished by the Human Resources functions also having a uch more significant influence on the strategic direction of the organization and becoming positioned in the organization with designated board level representations.
Human resources planning refers to classic HR administrative functions, and the evaluation and identification of human resources requirements for meeting organizational goals. It also requires an assessment of the availability of the qualified resources that will be needed. Human resources planning should be a key component of nearly every corporation's strategic business planning. To ensure their competitive advantage in the marketplace, organizations must implement innovative strategies that are designed to enhance their employee retention rate and recruit fresh talent into their companies.
Effective human resources planning strategies are those that include having sufficient staff, with the right mixture of talent, and who are in the appropriate locations, performing their jobs when needed. It moves beyond the traditional role of human resources as primarily an administrative control function. In today's corporate environment, it is viewed as a valuable component for adding value to an organization. Both employees and the company will often realize many benefits of planning over the long-run. In uncertain business settings, the significance of strategic human resources planning can become obvious very quickly. A company that reacts to circumstances by cutting staff as a measure to reduce short-term overhead can create unwanted repercussions. What initially looked like a smart and necessary move to economize in lean times can end up costing the company much more in the long-run. The resources that will be needed to subsequently recruit, hire, and train new employees may well exceed any short-term cost savings. Forward-looking human resources planning typically anticipates future staffing requirements. It can help organizations avoid cost errors. Strategies are formulated to not only anticipate their needs over time, but to consider optimal solutions for the long term and under challenging economic conditions. This approach minimizes the chance of short-sighted and reactive choices being implemented by decision-makers. Organizations with a plan in place, and a keen understanding of their long-range objectives, may instead decide to weather the economic storm and keep trained, talented, and dedicated staff in place for the inevitable business uptrend. Linking human resources policies, systems, and processes with a company's overall strategic planning and practices can have immediate advantages. Along with providing the company a road map for forecasting their staffing demand, effective human resource planning documents the talents and skills of the people who are in place. It also considers what current skill set and abilities are required to meet future needs and any new capabilities and talents the company may need to recruit and hire in the future.
Recruitment process :
Recruitment is an important part of an organization's human resource planning and their competitive strength. Competent human resources at the right positions in the organisation are a vital resource and can be a core competency or a strategic advantage for it.
The objective of the recruitment process is to obtain the
number and quality of employees that can be selected in
order to help the organisation to achieve its goals and
objectives. With the same objective, recruitment helps to
create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool.
Recruitment acts as a link between the employers and the
job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organisation.
Sources of Recruitment:
Every organisation has the option of choosing the
candidates for its recruitment processes from two kinds of
sources: internal and external sources. The sources within
the organisation itself (like transfer of employees from
one department to other, promotions) to fill a position are
known as the internal sources of recruitment. Recruitment
candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of
Internal Sources of Recruitment:
1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals
are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.
2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges,
medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.
3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment
functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO
(Recruitment Process Outsourcing)
4. UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies
on their own. Such callers are considered nuisance to the
daily work routine of the enterprise. But can help in
creating the talent pool or the database of the probable
candidates for the organisation.
5. EMPLOYEE REFERRALS / RECOMMENDATIONS
Many organisations have structured system where the current employees of the organisation can refer their friends and relatives for some position in their organisation. Also,
the office bearers of trade unions are often aware of the
suitability of candidates. Management can inquire these
leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.
Selection procedure :
Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested.
But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.
The Employee selection Process takes place in following order-
1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.