Meaning And Definition Of Human Resources Management

 

As human resource management is concerned with the people dimension in organization, at first, we should know organization in detail. Organizations are human associations in which two or more people seek to achieve a common goal or set of goals. In other word, organizations are established by the people and for the people. It consists of people working together through interrelationships and interactions. Organizations are created to achieve different goals. To achieve goals it should run various activities. Therefore an organization must consist of a structure, which defines jobs and relationships. In organization, different levels and division of jobs are defined to achieve specialization through division of labours. Organization design and job descriptions are the part of organizational structure, which limit the behaviour of the members in organizations.

Organizations depend on people to make them operate. An organization is nothing without resources. If we remove the employees from the organization, there is nothing but a pile raw material, machines, and physical commodities. Organization consists of the combination of different resources, among which human resource is the superior. But how did these people come to be employees in the organizations; How were they found and selected? Why do they come to work on a regular basis? Hoe do they know what to do on their jobs? How does management know if the employees are performing adequately? It they are not, what can be done about it?

Answers of these questions lie in the subject of human resource management. But before we attempt to understand how and organization should manage its human resources, we need to answer the generic question, what is management?

Management is the process of efficiently getting work activities completed with and through other people. An organization consists of goals and limited resources. To achieve goals, different activities are to be done. As there is limited resources, to get activities completed, the resources should be allocated properly. Simply, management is the act of allocating scare resources to achieve goals and getting required activities completed with and through other people. The management process includes the planning, organizing, leading and controlling activities that take place to accomplish objectives.

Managing people in an organization is human resource management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of organization-government, business, education, health or social organizational objectives. This is true regardless of the type of organization-government, business, education, health or social welfare. Organizational

effectiveness depends largely on the performance of people working in organizations. Management concerned to increase in performance of human resources is human resource management. It aims at achieving organizational goals through improvements in the productive contribution of people. It is concerned with philosophy, principles and practices related to human aspects of management. It keeps balance between the goals of organization and the goals of the individual.

According to Decenzo and Robbins:-

"Human resource management is a process consisting of four functions-acquisition, development, motivation and maintenance of human resources."

According to Gary Dessler:-

"Human resource management refers to the policies and practices one needs to carry out the people or human resource aspects of management position including recruiting, screening, training, rewarding and appraising."

According to G.R. Agrawal:-

"Human resource management is a process concerned with the management of human energies and competencies for achieving organizational goals through acquisition, development, utilization and maintenance of a competent and committed workforce in a changing environment."

Human resource management regards people as the must important resource of an organization. Its all policies and practices are oriented towards improving human resources' performance, which directly contribute to the achievement of organizational goals.

While looking human resource management more specifically, we can find the four major functions of it. They are respectively:-

1.                   Acquisition functions:- It begins with planning of man power. It includes job analysis, recruitment, selection and socialization of employees.

2.                   Development functions:- It has four dimensions.

i.      Analyzing development needs:- It involves human resource development planning for employees to predetermine future human resource development needs.

ii.        Employee training:- It involves skill development and change of attitude of human resources.

iii.      Management development:- It involves knowledge acquisition and executives conceptual ability.

iv.       Career development:- It matches the long-term individual and organizational needs.

3.                   Utilization functions:- This function ensure willingness of employees for increasing productivity by doing jobs effectively. It consists of employing people productively through: motivation, job design and work scheduling, performance appraisal and compensation management.

4.                   Maintenance function:- This function maintains the commitment of the employee to the organization. It consists of: employee discipline, labour relations and employee welfare.

 

Development of Personnel Management to Human Resource Management

Prior to the twentieth century, there were unorganized and sporadic efforts at improving the management of people at work. In some instances, personnel specialists' positions were established in private industries to assist with hiring, safety, training and health issues. After industrial revolution, there developed a greater need for planning, recruitment, selection and placement. The theme "the right man in right job" became familiar and popular. And it was during this same period that one of the most important movement in management was taking place: scientific management. Taylor, an industrial engineer, advocated separate responsibilities for workers and management. Utilizing time studies toward the scientific determination of a proper job design, Taylor proposed methods and standards for performing each job, for training and supervising employees in the proper use of tools and equipments and for evaluating each worker's performance.

After II world war managing employees became the most concerning matter for every organization. Realization that workers were human beings, not just mere pieces of equipment, promoted the humanism movement. Focus was placed on employee participating especially on those decisions that directly affected the employees. Attention were focused on reducing or eliminating the boredom, fatigue and stress that many behavioural scientists believed were primarily caused of worker alienation and reduced job productivity. It was felt that organizational objectives could not be achieved until and unless employees were satisfied and motivated toward works. Much of our current knowledge on motivation and reward system came out of this period.

Upto 1970 the management of employees was called personnel management. There was a great movement. The narrow view that human resources are something managed from within the personnel department changed to the wider recognition that the management of human resources is the responsibility of every manager. The opinion that all the managers in an organization must be familiar with human resource management concept in the same way that they should understand marketing and accounting concepts, was widely accepted. Currently, human resource management has grown into matured profession.

 

The rising interest in HRM of the modern management philosophy

From all these discussions, we came to know that passing through different stages employee management has gained current name human resource management. It has undergone extraordinary changes in the past. We can predict that the next generation will bring changes of similar magnitude. The past quarter century has seen significant changes in our society brought about by technological advancements, social alternations, economic influences and political pressures. These changes has directly affected the human resource practices and the changes that era likely to occur furthermore will also make affect on it. In this situation the role of human resource management has got more crucial. Specially, the following changes in the environment can be considered as the factors for rising interest in human resource management.

1.               Increasing cut-throat competition:- Currently, organizations are facing increasing internal and external competitions. Due to this, product life cycles are getting shorter. It one starts to produce a new product, in no time, the same kind of product, produced by another company will be found in the market. Beside this, the size and complexity of organizations are increasing day by day. To face these growing challenges of competition, innovative human resource management and practices are needed.

2.                 Globalization:- Globalization is the tendency of the firm to extend their sales or manufacturing into new market abroad. It has facilitated trade without borders. Globalization of markets and manufacturing has vastly increased international competition. In global competition, some firms are doing well while others are failed. Those firms who have been successful have highly focused on their human resources activities in selection, training and compensation policy. Due to this fact many firms are paying their interest in human resource management.

3.                 Technological changes:- Technology is changing rapidly. Organizations must keep up pace with technological changes and implement them in the workplace. Technology is only the mean to increase productivity. To utilize this mean needs the skilled man power, who can handle it easily and efficiently. Due to this fact, there is the need of human resource management. Besides, information technology has brought a change in organizational structure. The pyramid shaped organizations are now flattening. The hierarchy has fallen down to flattened. In the changing condition, to adjust with these changes, new job has to be written in a new way, new organization structure is needed to be designed, evaluation and selection method is needed to be changed. This all necessities have increased the interest in human resource management.

4.                 Work-force diversity:- Diversity means different. In human resource management context, different regards in the sense of sex, colour, age, caste, creed, culture, religion and language etc. Moreover, different also

regards in the sense of highly educated, mid-educated, highly skilled, mid-skilled, low-skilled etc. Today composition of work-force has been quite diversified. Different people have different need and interest. They have different perception, experiences, learning habit, personality etc. To understand the need of different people, to manage them, to create organizational climate and culture, to develop the feeling of team-work, human resource management plays the important role through its activities. it is human resource management which brings all the people of different nature under the same umbrella of organization. It is the most significant task done by human resource management, which other management cannot perform. This has played a vital role in rising interest in human resource management.

5.                 Nature of work:- Technological and globalization trend has changed the nature of jobs and works. Development on information technology has completely changed the formulation of working style. 1 person with the help of computer can do a work, which needs 10 people to complete before. To work with computers, trained human resources are needed. This is also a reason, which has caused rising interest in human resource management.

6.                 Changing Environment:- Now days, everything in this world is changing at a nano-second pace. The future belongs to those who can best manage change. Committed and competent employees are essential to manage change. It is human resource management that plays and important role in fostering employee commitment to change. The interest in human resource management is increasing because it enables organizations to better manage change.

7.                 Other:- There are other changes also shaping human resource management. Many laws are passed, related to human resource management. Occupational safety and health, requirements, minimum wages, equal employment opportunity, are laws managers have to deal frequently with the help of human resource management. Due to this the interest in human resource is rising.

 

Conclusion:-

            Without human resources, no organization can achieve its goals. Among all the resources in organization, human resource is the most important. It regards to the management of human resource in organizations. It consists of different processes and policies which make the human resource satisfied and motivated to their works. It is Human resource management that brings great success to the organization.

            Since its primitive beginnings, human resource management has been successful to attract the managers. Interest in HRM is continuously rising, due to the various reasons. In conclusion, causes of the rising interest in HRM can be listed as:-

1.                  Managing human resources is one of the key elements in the co-ordination and management of work.

2.                  HRM is different from the traditional practice of personnel management.

3.                  HRM represents a wider conception of the employment relationship to incorporate on enabling and developmental role for individual employee.

4.                  HRM can be viewed as the part of strategic managerial function in the development of business policy.

HRM represents the personnel management and industrial relations

 

Objectives of human resource management

by ADMIN  on MARCH 6, 2006

OBJECTIVES OF HUMAN RESOURCES MANAGEMENT (HRM)

Objectives are pre-determined goals to which individual or group activity in an organization is directed. Objectives of personnel management are influenced by organizational objectives and individual and social goals. Institutions are instituted to attain certain specific objectives. The objectives of the economic institutions are mostly to earn profits, and of the educational institutions are mostly to impart education and / or conduct research so on and so forth. However, the fundamental objective of any organization is survival. Organizations are not just satisfied with this goal. Further the goal of most of the organizations is growth and / or profits.

Institutions procure and manage various resources including human to attain the specified objectives. Thus, human resources are managed to divert and utilize their resources towards and for the accomplishment of organizational objectives. Therefore, basically the objectives of HRM are drawn from and to contribute to the accomplishment of the organizational objectives. The other objectives of HRM are to meet the needs, aspirations, values and dignity of individual employees and having due concern for the

socio-economic problems of the community and the country.

The objectives of HRM may be as follows:

1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.2. To establish and maintain sound organizational structure and desirable working relationships among all the members of the organization.3. To secure the integration of individual or groups within the organization by co-ordination of the individual and group goals with those of the organization.4. To create facilities and opportunities for individual or group development so as to match it with the growth of the organization.5. To attain an effective utilization of human resources in the achievement of organizational goals.6. To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige, recognition, security, status.7. To maintain high employees morale and sound human relations by sustaining and improving the various conditions and facilities.8. To strengthen and appreciate the human assets continuously by providing training and development

programs.9. To consider and contribute to the minimization of socio-economic evils such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged sections of the society.10. To provide an opportunity for expression and voice management.11. To provide fair, acceptable and efficient leadership.12. To provide facilities and conditions of work and creation of favorable atmosphere for maintaining stability of employment.Management has to create conductive environment and provide necessary prerequisites for the attainment of the personnel management objectives after formulating them.

more at http://www.citeman.com/245-objectives-of-human-resource-management.html#ixzz2NJlAMd90

Human Resource Management- Functions and Objectives1

SUBMITTED BY DEEPTI PANDE AUGUST 30, 2011 - 1 YEAR 27 WEEKS AGO

HRM and its importance started to be considered as an integral function of the organization and as a specialized field of study with the realization of the fact that employees, independently or jointly, play a pivotal role in the achievement of the overall organizational goals and objectives. HRM aligns the employee’s skills with the present and future needs of the organization and utilizes it towards the achievement of the desired goal. It analyses the workforce profile, skills, abilities, qualifications, potential, capabilities etc. and assign them various responsibilities as per the requirement of the job and the workers profile. Moreover it also facilitates acquiring, training and retaining the talent. HRM does not only takes care of the present organizational objectives but it also examines and determines the future organizational needs for developing strategies as per the future requirements. Moreover, after identifying the fact that employee turnover is directly proportional to the employee dissatisfaction, taking care of the needs of the employees also became one of the major considerations of HRM. Unsurprisingly, now days, HRM is looked up as a prominent department and shares its existence with the top management functions and figures of the organization.Today, HR is an exclusive department in almost all organizations and has a number of important functions to perform. These are as follows:

1. Employee Career Goals: To understand that the employees are also individual and have their own set of needs. They also have certain goals and they also want reach the pinnacle of the career ladder. The HR has to identify those needs and work upon them to make the employees feel important and motivated by providing them time to time training related to their field of interest. It is to be kept into consideration that if the employee will not find any career advancement in the kind role he is assigned in the organization, his inclination towards performing will be really low due to lack of motivation.

2. Organizational Goals: To understand and define the overall objectives and goals of the organization, its mission as well as vision. It also calls for aligning the skills of the workforce with the company’s mission/vision statement and encouraging them to work towards achieving those organizational objectives. It does not only include the present organization requirements but also forecasting the future needs and making strategies for fulfilling them.

3. Training and Development: To ensure proper availability of latest tools and methods for training the employees as required for their respective competencies. Identifying the imperfect areas which requires training and also working towards filling the need gap with the best available training tools. HR should realize that training is not an unnecessary expenditure which can be discarded; instead they should understand that if the employees

are properly trained and developed, it can prove to be the best investment made by the company which will definitely furnish quality returns in future. HR’s job does not just ends with the training. They should also scrutinize the post training transformation in the performance the employees and should provide adequate feedback if further improvement is required.

4. Recruitment: Selecting the best workforce from the labor market by using the recruitment options like internal job portals, job websites, advertisements, employment agencies etc. Personal interviews, GD’s, Aptitude test should be unbiased and very seriously performed, for getting the cream employee. The candidates should be informed well in advance about the profile of the job, required skills, attitude and the workload a candidate can experience so that they may come with a defined mindset and give their best to the job offered to them. Before moving ahead with recruiting, the HR manager should ensure the adequacy of the funds to be invested on the recruitment procedure.

5. Staffing: To assign the right job to the right employee if the proper utilization of the talent is needed. The HR should understand that the employee will not be able to give his 100% if his talent is not utilized in the right direction. They also require making them understand the overall objective, mission and vision statements and also providing them proper resources which will help him attain those objectives.

6. Ensuring employee health and safety by abiding to the employee safety and health regulations.

7. Managing grievances

8. Ensuring provisions for adequate and promised compensation with fixed and variable benefits to keep them motivated.

9. Making strategies for reducing the employee turnover rate.

10. To ensure a positive work environment in the organization.

11. To continuously stimulate a sense of belonging, responsibility and accountability in employees.

12. Ensuring effective communication between employees and minimizing conflicts.

13. To ensure latest appraisal methods, fair and unbiased salary hikes for keeping the employees motivated.

14. To keep a record of the employee profiles and database so that it can be readily available at the time of recruitment and staffing and also ensuring its confidentiality.

15. To keep a bird eye view on each employees performance and regularly providing feedbacks on the same.

There are also some objectives for which HRM performs its aforesaid functions in an organization. Some of the objectives are as follows:

1. To achieve the organizational goals and objectives.2. To ensure employee satisfaction at every level.3. To instill team spirit in employees.4. To explore employees capabilities for performing a given job.5. To ensure maintaining the quality of work life.6. To respect the employees as individuals and also respect their individual careergoals.7. To equip the employees with proper resources.8. To keep the employees motivated.9. To encourage the feeling of organizational loyalty in employees.10. To ensure a positive environment of mutual trust and understanding in theorganization

The Significance of Human Resource Management Systemsby Alfred Sarkissian, Demand Media

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Information Systems The Role of Human Resource Management in Organizations Goals of Human Resource Management What Is the Difference Between Human Resource Management & Human Resource

Planning? What Are the Disadvantages of a Human Resource Management System?

In a broad definition, a human resource management system, or HRMS, encompasses the highest level of human resource management activities. It is a program of multiple human resource policies that are internally consistent in relation to a human resource objective. HRMS also refers to the integration of human resource management and information technology to automate and facilitate human resource activities. The general notion of an HRMS helps small-business managers craft suitable human resource systems based on their field of business and business growth stage.

Organizational EffectivenessThe human resource management system of a company has a significant impact on individual and organizational effectiveness. A good HRMS brings consistency in human resource management practices and improves human relations in the company. An effective HRMS is focused on a strategic objective and works by improving employee knowledge, skills, motivation and contribution opportunities. Based on their overarching goal, human resource management systems contribute to organizational effectiveness in multiple ways.

Employee CommitmentAn HRMS focused on increasing employee commitment will recruit selectively, provide employees with intensive training, and offer a high level of compensation. For example, a small medical clinic serving local senior citizens may focus on recruiting and retaining caring staff to provide quality service. Recruiting will require conducting multiple interviews to make sure the personality of the applicant matches the requirements of the position. Once the right person is selected, intensive job training and goods compensation will be provided to increase employee satisfaction, job performance and organizational commitment.

Empowering EmployeesThe focus of an HRMS can be increasing the involvement of employees and empowering them. Under such a system, employees are given more decision-making power, and teamwork is encouraged. For example, a small-business owner may want to shift from

focusing on the day-to-day functions of the business to expanding the business. This requires trusting employees, training them, and giving them more decision-making authority.

Occupational SafetyOccupational injuries and fatalities can have devastating consequences for employee morale. Such incidents can also potentially jeopardize the business. In a small manufacturing company, managers may focus the HRMS on improving occupational safety. This requires hiring reliable, trained and detail-oriented people and providing intense safety training.

Customer ServiceSmall businesses have typically limited market share. Providing excellent customer service is one strategy to defend market share. An HRMS focused on delivering good customer service includes improving the physical work environment, a supportive and collaborative spirit to cover possible mistakes, and use of appropriate service delivery technologies such as computers

Effects of Human Resource Management Activities to Improve

Innovation in Enterprises

Nooshin Eslami 1

Hamid Nakhaie 2

1

management industry of education & research ( MIER) Kerman,Iran

2 Mahan Center, Islamic Azad University, Mahan, Kerman, Iran

Abstract. In this study, a model for improvement activities of human resource management (HRM), which

is include: training, payment system, selection, valuation functions of organizations is proposed. It leads to

development innovation in organization by improving the knowledge in staff and transfer knowledge

between staff and use of knowledge in organizations. Today in all the word emphasis on the innovation that

increased amongst all companies. Effects of information globalization and also factors (such as increasing

comparison, in certain industrial boundaries, etc.) change the business environment. In this situation the

companies for survive need to innovation. Key factors of successful in active organization in new

technologies are having the innovation in offering productions and services by using special knowledge. In

this organization the most important factor is having creation and expert human resource by high motivation.

The most important problems are lacking use of human resource in innovation in organization that contains:

lacking the suitable payment system, valuating function of staff, don’t attention to dynamic activity in

organization and don’t offer sufficient training to staff.

Keywords: Effectiveness, Human Resource Management, Activity, Innovation.

1. Introduction

With ever more rapid technical change, and increasing global competition, it has become clear that the

ability of organizations to develop and field innovative new products and services is a crucial influence on

long-term performance [1].Innovation is at the heart of organizations’ success because it allows them to

improve the quality of products, increase efficiency, cut costs, meet the changing needs of customers,

increase sales and profits, gain a greater market share and differentiate themselves from competitors [2,3].

Firms with greater innovativeness will be more successful in responding to changing environments and in

developing new capabilities that allow them to achieve better performance [4]. Innovation initiatives tend to

depend heavily on employees’ knowledge, expertise, and commitment as key inputs in the value creation

process [5].

In studying of innovation in organizations, most important factor that must be considered is human

resource management (HRM). Although in the past didn’t give innovation ones consideration but today in

surveying about activities of human resources accomplished, indicate clear relationship between human

resource management and innovation. The strategy of human resource management must be improving

innovation in organization coordinate to improving innovation in organization and to cause creation, transfer

and operating knowledge in organization. Human resource practices (HR practices) are the primary means by

which firms can influence and shape the skills, attitudes, and behavior of individuals to do their work and

thus achieve organizational goals [6,7].

In this paper, a model for development activities of HRM, which is consist of: training, payment system,

selection, valuation functions of organizations is proposed. It leads to development innovation in

organization by improving the knowledge in staff and transfer knowledge between staff and use of

knowledge in organizations.

518

2011 3rd International Conference on Information and Financial Engineering

IPEDR vol.12 (2011) © (2011)IACSIT Press, Singapore 2. Effectiveness

Effectiveness means the potential of producing an effect, and is most frequently applied in connection

with degree to which something is able of producing a specific, desired effect. In management, effectiveness

relates to getting the right things done. Drucker [8] reminds us that effectiveness is an important discipline

which “can be learned and must be earned. In other worlds, effectiveness indicates to what extent

accomplished attempts provides the considerable results. Erlendsson [9] defines effectiveness as: the extent

to which objectives are met (‘doing the right things’). Effectiveness means the capability of producing an

effect, and is most frequently used in connection with the degree to which something is capable of producing

a specific, desired effect.

3. Management

Management in all business and organizational activities is the act of getting people together to

accomplish desired goals and objectives using available resources efficiently and effectively. Management

comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of

one or more people or entities) or effort for the purpose of accomplishing goal. Management is the

process of designing and maintaining an environment in which individuals, working together in groups,

efficiently accomplish selected goals [10].

4. Human Resources (HRs)

Human resources (HRs) is a term used to describe the individuals who make up the workforce of

an organization, although it also applied in labor economics to, 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 strategies and policies relating to the management of

individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR" [11]. HR is

a relatively modern management term, coined as late as the 1960s. The origins of the function arose in

organizations that introduced 'welfare management' practices and also in those that adopted the principles of

'scientific management'. From these terms emerged a largely administrative management activity,

coordinating a range of worker related processes and becoming known, in time, as the 'personnel function'.

Human resources progressively became the more usual name for this function, in the first instance in the

United States as well as multinational or international corporations, reflecting the adoption of a more

quantitative as well as strategic approach to workforce management, demanded by corporate management to

gain a competitive advantage, utilizing limited skilled and highly skilled workers.

The number one glossary suggestion and question that people request is: “What is the definition of

human resources?” William R. Tracey, in The HRs Glossary defines HRs as: “The people that staff and

operate an organization … as contrasted with the financial and material resources of an organization. The

organizational function that deals with the people ...” Long a term used sarcastically by individuals in the

line organization, because it relegates humans to the same category as financial and material resources,

human resources will be replaced by more customer-friendly terms in the future [12].

HRs are the human labor, the physical abilities, and mental abilities that produce the goods and services

of businesses. In a business, the terms HRs are often used to refer to management of the people employed by

the business. HRs management specialists recruit and interview employees, advising on hiring decisions in

accordance with policies and requirements that have been established in conjunction with management,

provide training to enhance employee skills, and develop compensation plans and incentive programs to

motivate employees. In some businesses this is called personnel management.

5. Human Resource Management (HRM)

Human Resource Management (HRM) is the management of an organization's employees. This includes

employment and arbitration in accord with the law, and with a company's directives. A HRM system refers

to the systems and processes at the intersection between HRM and information technology. It merges HRM

519as a discipline and in particular its basic HR activities and processes with the information technology field,

whereas the programming of data processing systems evolved into standardized routines and packages of

enterprise resource planning software.

HRM is the function within an organization that focuses on recruitment of, management of, and

providing direction for the people who work in the organization. HRM can also be performed by line

managers. HRM is the organizational function that deals with issues related to people such as compensation,

hiring, performance management, organization development, safety, wellness, benefits, employee motivation,

communication, administration, and training [11].

6. Activity of Human Resource Management

Currently Human Resource Management Systems encompass:

1. Payroll

2. Work Time

3. Appraisal performance

4. Benefits Administration

5. HR management Information system

6. Recruiting

7. Training/Learning Management System

8. Performance Record

9. Employee Self-Service

The payroll module automates the pay process by gathering data on employee time and attendance,

calculating various deductions and taxes, and generating periodic pay checks and employee tax reports. Data

is generally fed from the HRs and time keeping modules to calculate automatic deposit and manual check

writing capabilities. This module can encompass all employee-related transactions as well as integrate with

existing financial management systems. The work time module gathers standardized time and work related

efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution

capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions. The

benefits administration module provides a system for organizations to administer and track employee

participation in benefits programs. These typically encompass insurance, compensation, profit sharing and

retirement [13].

The HRM module is a component covering many other HR aspects from application to retirement. The

system records basic demographic and address data, selection, training and development, capabilities and

skills management, compensation planning records and other related activities. Leading edge systems

provide the ability to "read" applications and enter relevant data to applicable database fields, notify

employers and provide position management and position control. Human resource management function

involves the recruitment, placement, evaluation, compensation and development of the employees of an

organization. Initially, businesses used computer based information systems to:

• Produce pay checks and payroll reports;

• Maintain personnel records;

• Pursue Talent Management.

Online recruiting has become one of the primary methods employed by HR departments to garner

potential candidates for available positions within an organization. Talent Management systems typically

encompass:

• Analyzing personnel usage within an organization;

• Identifying potential applicants;

• Recruiting through company-facing listings;

• Recruiting through online recruiting sites or publications that market to both recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and

across general or industry-specific job boards and maintaining a competitive exposure of availabilities has

520given rise to the development of a dedicated Applicant Tracking System, module. The training module

provides a system for organizations to administer and track employee training and development efforts. The

system, normally called a Learning Management System if a standalone product, allows HR to track

education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs,

web based learning or materials are available to develop which skills. Courses can then be offered in date

specific sessions, with delegates and training resources being mapped and managed within the same system.

Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance

management and appraisal metrics.

The Employee Self-Service module allows employees to query HR related data and perform some HR

transactions over the system. Employees may query their attendance record from the system without asking

the information from HR personnel. The module also lets supervisors approve O.T. requests from their

subordinates through the system without overloading the task on HR department. Many organizations have

gone beyond the traditional functions and developed human resource management information systems,

which support recruitment, selection; hiring, job placement, performance appraisals, employee benefit

analysis, health, safety and security, while others integrate an outsourced Applicant Tracking System that

encompasses a subset of the above.

7. Innovation

The purpose of innovation is revealed and operated creativity, in other words, innovation means operated

and creative thought; that is presentation of product, process and new services to market. It is mental

creativity for making one thought and originality with use of a new concept.

In the following has referred to several definition of innovation:

“The act of introducing something new”

“A new idea, method or device”

“Change that creates a new dimension of performance” [8]

“The introduction of new goods, new methods of production, the opening of new markets, the conquest

of new sources of supply and the carrying out of a new organization of any industry” [14, 15]

“Innovation is a new element introduced in the network which changes, even if momentarily, the costs of

transactions between at least two actors, elements or nodes, in the network” [16]

“The three stages in the process of innovation: invention, translation and commercialization” [17]

“The ability to deliver new value to a customer”

“Innovation is the way of transforming the resources of an enterprise through the creativity of people

into new resources and wealth” [18]

“Innovation does not relate just to a new product that would come into the marketplace. Innovation can

occur in processes and approaches to the marketplace” [19]

8. Discussion and Conclusions:

Today organization based on their structures follow the certain goals and managers force to imply the

goals. Manager should use of equipments and materials, systems, methods of vestment, make production

engineering and by helping the human resources reach their purposes.

Generally, the goals of HRM determine the goals that include: production, distribution and sell. Thus the

goals of HRM are mentioned in presentation services to these tree units. In this study we consider the effect

of human resources management in innovation in organization. The results show that human resources

management has direct relationship with innovation in organizations. Finding shows that by consideration to

human resources and development of their activities improvement occurred in organization. The purpose of

development of human resources management is training the staff, on time payment, give extra services to

the staff, instead of their creative activities, and choose the staff and experts, evaluation function of staff, in

all of mentioned cases lead to improve staff knowledge, transfer knowledge in staff and use of knowledge in

organization

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Human Resource Management "An Organization's Tool For Competitive Advantage"In the world of globalisation and free market, organizations are facing increasing competition and therefore faced with issues on how to ensure survival and competitive advantage. In meeting the external pressures, measures such as mergers, acquisitions, strategic alliances, downsizing and restructuring are common responses. In a nutshell, the integral part of these responses is the method of using human resources (HR) more effectively.

Competitive advantage refers to the ability of an organization to formulate strategies to exploit profitable opportunities, thereby maximizing its return on investment. One of the main source for a company seeking competitive advantage will be its' organizational capability. Organizational capability represents the business's ability to manage the organizational systems and people in order to match customer and strategic needs.

The primary organization systems that affect employees are a business's HRM practices i.e. the set of organizational activities that directly affect how employees perceive their jobs. These are:

Organizational Design

Staffing

Employee & Organizational Development

Performance Management

Reward systems, Benefits and Compliance

Communications and Public Relations

Basically there are three specific ways that HRM activities can build organizational capability and sustain a business's competitive advantage:

Implementing a StrategyAny business that wants to remain successful must continually assess and formulate new strategies to meet the needs of its customers in more effective ways. It is important that employees be informed about the organization's

strategic mission. HRM practices should be the mechanisms used to focus people's attention on the major strategic issues in the organization i.e. altering the HRM practices to meet their strategic goals. As an example, a differentiation strategy calls for specialists in product design and development, higher budgets for research and development, rewards for innovative ideas related to quality, and customer-based performance appraisal.

Dealing with ChangeIn an increasingly competitive environment, organizations with a greater capacity for change are more likely to satisfy, retain, and attract customers. In organizations, the capacity to change may be increased by using HRM tools correctly. As an example, hiring people who are flexible and develop people that they will realize that change is an important part of growth. Moreover, performance standards should be set to encourage flexibility and diversity and should reward employees’ innovative.

Building Strategic UnityStrategic unity represents the extent to which stakeholders inside (e.g. employees) and outside a business (e.g. customers) share a core set of values and assumptions about the business. As an example, if the stakeholders believe that customer service is of central importance to corporate performance, this core values can be developed and nurtured among employees, suppliers and customers of the business. The benefit of the internal quality is that it channels employees' attention toward an important organizational goal e.g. helps the company to provide a unique service to customers that cannot easily be copied by competitors.

Skills Required For HRM Competitiveness

Both General Managers and HRM professionals must have a set of skills or competencies (knowledge, skills, abilities, and activities) that build competitiveness i.e. they should know the business, keep aware of current HR developments, manage the process of change, and integrate all these roles in the context of the organization’s mission. Therefore they must be proficient in oral and written communication, decision-making, leadership, innovative thinking, planning and organizing, and objectivity about themselves.

In order to ensure HRM practices are taken into account in ensuring the organization’s competitiveness, HR practitioners must be accepted as a strategic business partner. Therefore as a strategic business partner, these HR competencies is critical:

1. Business competencies

2. HRM Design and Delivery competencies

3. Management-of-Change competencies

In general, the view of HRM outlined above provides a foundation for integrating HRM activities into the organization’s mission and goals. HRM professionals should be actively involved in building more competitive organizations through the HRM practices mentioned above. One final competency beside the HR competencies mentioned above which is necessary for both line managers and HRM professionals is a knowledge of the legal implications of all HRM activ