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0% found this document useful (0 votes)
14 views12 pages

Module 1 RM

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vijaaykumar20
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module I: Introduction and Scope

HRM: Introduction and Scope

HRM is the process of managing people of an organization with a human approach. Indeed, “The
management of man” is a very challenging job because of the dynamic nature of people. HRM is involved
in providing human dignity to the employees taking into account their capacity, potential, talents,
achievements, motivation, skill, commitment, great abilities and so on. If an organization can trust,
depend and draw from their bank account, they can surely depend, trust and draw more from their
talented, dedicated and capable workforce. It is a process of binding people and organizations together so
that the objectives of both the sides are achieved. Therefore, the HRM is involved in every business,
managerial activity or introduction.

Concept of HRM

The principal component of an organization is its human resource or ‘people at work’. The thing that
makes the difference in a certain organization is the service and professionalism of the people at work. As
per Leon C. Megginson from a national point of view Human Resources as, “the knowledge, skills, creative
abilities, talents and aptitudes obtained in the population; whereas from the view point of the individual
enterprise, they represent the total of inherent abilities, acquired knowledge and skills as exemplified in
the talents and aptitudes of its employees.”

Practically speaking, HRM is a management function that deals with recruiting, selecting, training and
developing human resources in an organisation. It is not only concerned with the development of a highly
motivated, smoothly functioning workforce but also with the ‘people’ dimension in management. It is
manpower management which effectively describes the processes of planning and directing the
application, development and utilisation of human resources in employment.”

Some of the definitions given by experts are as follows:


 As per Michael Armstrong, human resource management can be defined as “a strategic and
coherent approach to the management of an organisation’s most valued assets: the people
working there, who individually and collectively contribute to the achievement of its objectives.”
 As said by Edwin B. Flippo, “Human resource management is the planning, organizing, directing
and controlling of the procurement, development, compensation, integration, maintenance and
separation of human resources to the end that individual, organizational and societal objectives
are accomplished.”
 As per the Indian Institute of Personnel Management, “Human resource management is a
responsibility of all those who manage people as well as being a description of the work of those
who are employed as specialists. It is that part of management which is concerned with people at
work and with their relationships within an enterprise. It applies not only to the industry and
commerce but to all fields of employment.”

The traditional approach to HRM defines HRM as the process of managing people in organizations in a
structured and a thorough manner. This includes staffing, retention of people, pay and perks setting and
management, performance management, change management and taking care of exits in order to round
off the activities of an organization.

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From a macro-perspective point of view, it can be defined as managing people in the form of a collective
relationship between management and employees.

Characteristics of HRM:

Based on all the definitions of HRM, the characteristics of human resource management as follows:

1) A universal force and an integral part: HRM is present in all organisations and at every level of
management in an organisation. HRM is closely associated with the strategic decision making
process concerned with all the departments and functions of an organisation. In fact, as per Gray
Dessler, “Personnel management is very much a part of every line manager’s responsibility.
Whether you are a first line supervisor, or middle manager, or president, getting results through
people is the ‘name of the game’.
2) People-Oriented: Human resource function is concerned with the management of human
resources of organisation, in contrast to the material or financial resources. It is the task of
dealing with human relationships within an organisation. It is the process of achieving the best fit
between individuals. It is the task of bringing people and organisations together.
3) Staff Function: HRM is a supportive and service function. As per Gray’s words, “Service to line
management is the bread and butter of the personnel manager’s job.” Personnel manager assists
in the hiring, training, evaluating, rewarding, counselling, promoting and firing of employees at all
levels. It also administers the various benefit programmes. The staff personnel manager is there
to assist, advice, counsel and guide the line manager in the performance of his functions.
4) Comprehensive function: Personnel management is concerned with managing people at work. It
covers all types of people at all levels in the organisation. It applies to workers, supervisors,
officers and managers. It also covers skilled, technical, professional, clerical, managerial,
organised and unorganised types of personnel.
5) Line Responsibility: Basically, HR management is a staff function. But the personnel manager
performs a “line function also by directing the activities of the people in his own department and
other service areas. He exerts line authority within his own personnel department. In essence, a
personnel administrator should not issue orders to members of the line organisation or
employees, except for his own department.
6) Pervasive Responsibility: HRM function is all pervasive, transcends all other managerial functions
and is ubiquitous. In this sense, every manager who plans, staffs, organize, directs and controls
necessarily accomplishes these functions through people and applies them to people.”

Scope of HRM:

The scope of HRM is very extensive and wide. In fact, after years of research in behavioural and science
trends in the field of training, the scope has expanded greatly. As per the Indian Institute of Personnel
Management, the scope of HR is distributed in these three areas:

 Personnel Aspect: This related to manpower planning, recruitment, selection, placement,


transfer, promotion, training and development, layoffs and retrenchment, remunerations,
incentives, productivity and many more.
 Welfare Aspect: This is concerned with the working conditions and amenities provided to the
employees like canteens, crèches, rest and lunch room, medical assistance, education, health and
safety, recreation facilities, etc.

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 Industrial Relations: This entails union-management relations, joint consultation, collective
bargaining, grievance and disciplinary systems, settlement of disputes etc.

Meanwhile, along the years many other areas have been added which include:

 Human Resource planning


 Employee Assistance
 Human Resource Information System
 Organizational Development
 Selection and Staffing
 Employee training and development

Human Resource Planning:

One of the main objectives of the HR is to make sure that the organisation has people for the right work
and at the right place. It has an upper hand on the human resources inventory so that they can detect
present and future needs of the organisation, and any availability and shortage in human resource. Not
only does the HR Planning focus on identifying sources of selection based on the forecast of demand and
supply, but also creates strategies for short-term and long-term goals in order to meet the man-power
requirement.

Employee Assistance:

Each employee is unique in character, personality, expectation and temperament. They should be assisted
with anything that is worrying them so that they can be productive and happy.

Human Resource Information System:

Knowledge regarding behavioural science and industrial psychology gives a better insight into workers
expectations, aspirants and behaviour. Technological advancement of product and production methods
has created a working environment which is much different from the past.

Organizational Development:

This enables better healthy interpersonal and inter-group relationship in an organisation also known as
the “Synergetic effect”.

Selection and Staffing:

This is the process of recruitment and selection of the staff within an organisation. It is the HR’s duty to
match the people and their expectations with the job profile and description and career path in that
organisation.

Employee Training and Development:

This includes an organized attempt to find out the training needs of different individuals so that the
workforce can give their best to perform the current job and fulfil the future needs of the organisation.

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Objectives of HRM:

Human resource management seeks to attain organisational goals economically and effectively. It helps
preserve and promote the general welfare of the employees. It gets maximum contribution from the
human factor in industry.

Specifically, the objectives of human resource management are:

1) Procurement of the Personnel: The first objective of human resource management is to obtain
capable people who can produce, sell and distribute the products manufactured. It manages to
appoint such personnel who may deal with all the activities of the organisation.
2) Effective Utilisation of Human Resources: In order to achieve organization’s purposes, personnel
management utilizes employees’ efforts, talents and skills effectively. It makes rational use of
work qualities, knowledge and potential. It engages employees in proper hands on proper place
at proper time. It increases their efficiency by creating proper atmosphere for work.
3) To build Desirable Working Relationship: HRM aims to establish and maintain productive, self-
respecting and satisfying working relationships among all the members of the organisation. For
this, it divides the organizational tasks into functions, position and jobs. It defines the
responsibility and authority of each job and its relation with other jobs.
4) Raising Morale of the Employees: Healthy climate of work is the essential need of an
organisation. But workers should also have an enthusiastic body and mind to work. They should
an energetic attitude. HR manager builds morale of his employees by involving them in decisions,
by providing good leadership and satisfying their needs.
5) Cost Containment: In the present-day business environment, keeping expenses down or cost
containment is a critical goal for the HR.
6) Integration of goals: HRM seeks to integrate all the individuals and groups within the
organisation by reconciling individual/group goals with those of the organisation.
7) Maximum Individual Development: HRM provides opportunities for advancement to employees
through training and education on job. It encourages every employee to realize his full potential.
8) Satisfy Individual needs and Group Goals: Human resource management offers an adequate and
equitable remuneration, economic and social security to employees. It offers monetary incentives
as well.
9) Maintaining a healthy relation between Employer and Employees: HRM tries its best to provide
best satisfaction to the employees. It also follows the principle of “minimum cost and maximum
profit” for the employer. It co-ordinates their interest and goals. It brings them on a common
platform to understand each other. It also develops cordial relations and confluence among them.
10) To create disciplined atmosphere at work: Human resource management aims to develop a
sense of discipline among the human force engaged in any organisation. Discipline is essential in
any firm. It creates obedience and just behaviour among employees. It helps maintain ethical
policies and behaviour inside an organisation.

Importance of HRM:

People have always been central to organisations but their strategic importance is growing rapidly in
today’s knowledge based industries. An organisation’s success increasingly depends on the knowledge,
skills and abilities of employees, particularly as they help establish a set of core competencies that
distinguish an organization from its competitors. With appropriate HR policies and practices an
organisation can hire, develop and utilise the best brains in the market, realise its prefixed goals and
deliver best results within time.

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The significance of human resource management can be discussed at these four levels:

1) Significance for an Enterprise: Human resource management can help an enterprise in achieving
its goals more efficiently and effectively in the following ways:
 Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement, orientation, compensation and promotion policies.
 Developing the necessary skills and right attitudes among the employees through
training, development, performance appraisal, etc.
 Securing willing co-operation of employees through motivation, participation, grievance
handling, etc.
 Utilizing effectively the available human resources.
 Ensuring that the enterprise will have in future a team of competent and dedicated
employees.
2) Professional Significance: Effective management of human resources helps to improve the quality
of work life. It permits team work among employees by providing a healthy, working
environment. It also contributes to professional growth in the following ways:
 Providing maximum opportunities for personal development of each employee.
 Maintaining healthy relationships between individuals, and different work groups.
 Allocating work properly.
3) Social significance: Sound human resource management has a great significance for the society. It
helps to enhance the dignity of labour in the following ways:
 Providing suitable employment that provides social and psychological satisfaction to
people.
 Maintaining a balance between the jobs available and the jobseekers in terms of
numbers, qualifications, needs and aptitudes.
 Eliminating waste of human resources through conservation of physical and mental
health.
4) National Significance: Human resources and their management play a vital role in the
development of a nation. The effective exploitation and utilization of a nation’s natural, physical
and financial resources require an efficient and committed manpower. There are wide differences
in development between countries with similar resources due to differences in the quality of their
people for instance.

The development of a country depends on the skills, attitudes and values of its human resources.
Effective management of human resources helps to speed up the process of economic growth which in
turn leads to higher standards of living and fuller employment.

Functions of HRM:

The functions of human resources are broadly classified as follows:

 Managerial Functions
 Operative Functions

Managerial Functions

Managing people is the essence of being a manager. Like other managers, a human resource manager
performs the functions of planning, organizing, directing and controlling as discussed below:

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Planning: A plan is a predetermined course of action. Planning is the process of deciding the goals and
formulating policies and programmes to achieve the goals. Planning involves forecasting and research.
Forecasting implies scientific anticipation of the future environment. Human resource management
involves forecasting needs for human resources, predicting trends in labour market, wages, union
demands and more. It bridges the gap between where we are and where we want to go. Without
planning events are left to chance. Planning is the means to change, and avoids crisis for tomorrow. It
involves deciding personal goals, formulating personnel policies and programmes, etc.

Organizing: In order to implement the plans, a sound organisation structure is required. Organizing is the
process of allocating tasks among the members of the group, establishing authority-responsibility
relationships among them and integrating their activities towards the common objectives. In this way a
structure of relationships among jobs, personnel and physical factors is developed. The right organisation
structure is the foundation of effective management because without it best performance in other areas
will be ineffective. Organisation is the framework through which management directs, controls and
coordinates the efforts of people.

Directing: It is the process of motivating, activating, leading and supervising people. Directing includes all
those activities by which a manager influences the actions of subordinates. It involves getting others to
act after all preparations have been made. Directing is the heart of the management process because it is
concerned with initiating action. It helps securing the willing and effective cooperation of employees
through proper direction. Directing also helps in building sound individual and human relations in the
organisation.

Controlling: It implies checking, verifying and regulating to ensure that everything occurs in conformity
with the plans adopted and the instructions issued. Such monitoring helps to minimize the gap between
desired results and actual performance. Controlling the management of human resources involves
auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting
separation interviews and such other means.

Operative Functions

The operative and service functions of human resource management are the tasks which are entrusted to
the personnel department. These functions are concerned with specific activities of procuring,
developing, compensating, and maintaining an efficient workforce.

1) Procurement Function: It is concerned with securing and employing the right kind and exact
number of people required to accomplish the organisational objectives. It consists of the
following activities:
a) Job Analysis: It is the process of studying in detail the operations and responsibilities involved in a
job so as to identify the nature and level of human resources required to perform the job
effectively. Job descriptions and job specifications are prepared with the help of information
provided by job analysis.
b) Human Resource Planning: It is the process of estimating the present and future manpower
requirements of the organisation, preparing inventory of present manpower and formulating
action programmes to bridge the gaps in manpower.
c) Recruitment: It is the process of searching for required personnel and stimulating them to apply
for jobs in the organization. A proper balance should be maintained between the internal and
external sources of recruitment.

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d) Selection: It implies judging the suitability of different candidates for jobs in the organisation and
choosing the most appropriate people.
e) Placement: It means assigning suitable jobs to the selected candidates so as to match employee
qualifications with job requirements.
f) Induction or Orientation: It involves familiarizing the new employees with the company, the work
environment and the existing employees so that the new people feel like home and start work
comfortably.

2) Development Function: Human resource development is the process of improving the


knowledge, skills, aptitudes and values of employees so that they can perform the present and
future jobs more effectively. This function comprises the following activities:
a) Performance and Potential Appraisal: It implies systematic evaluation of employees with respect
to their performance on the job and their potential for development.
b) Training: It is the process by which employees learn knowledge, skills and attitudes for further
organisational and personal goals.
c) Executive Development: It is the process of developing managerial talent through appropriate
programmes.
d) Career Planning and Development: It involves planning the career of employees and implementing
career plans so as to fulfil the career aspirations of people. It involves the mobility of personnel
through promotions and transfers.

3) Compensation Function: It refers to providing equitable and fair remuneration to employees for
their contribution to the attainment of organisational objectives. It consists of the following
activities:
a) Job evaluation: It is the process of determining the relative worth of a job.
b) Wage and Salary Administration: It implies developing and operating a suitable wage and salary
programme. Surveys are conducted to determine wage and salary structure for various jobs in the
organization.
c) Bonus: It involves payment of bonus under the payment of Bonus Act, 1965 as well as non-
statutory bonus and other incentives.

4) Integration Function: It is the process of reconciling the goals of the organisation with those of its
members. Integration involves motivating employees through various financial and non-financial
incentives, providing job satisfaction, handling employee grievances through grievance
procedures, collective bargaining, workers’ participation in management, conflict resolution,
developing sound human relations, employee counselling, improving quality of work life, etc.

5) Maintenance Function: It is concerned with protecting and promoting the physical and mental
health of employees. For this purpose several types of fringe benefits such as housing, medical
aid, educational facilities, conveyance facilities, etc are provided to employees. Social security
measures like provident fund, pension, gratuity, maternity benefits, injury/disability allowance,
group insurance, etc. are also arranged. Health, safety and welfare measures are designed to
preserve the human resources of the organisation.

Personnel records and research are also important elements of the maintenance function.
The managerial functions and operating functions of human resource management are
performed in conjunction with each other.

Role of HRM:

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HR manager plays a variety of roles in accordance with the changing needs and circumstances of
organisation as discussed below-
1) As a Specialist: A specialist HR manager advises the different functional heads on various aspects
of personnel function such as manpower planning, recruitment, selection, orientation, training,
appraisal, compensation etc.
2) Humanitarian Role: Reminding moral and ethical obligations to employees.
3) Counsellor: Consultations to employees about marital, health, mental, physical and career
problems.
4) Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and
groups or management.
5) Spokesman: To represent the company in Media and other forums because he has better overall
picture of his company’s operations.
6) Problem Solver: Solving problems of overall human resource management and long-term
organizational planning.
7) Change Agent: Introducing and implementing institutional changes and installing organizational
development programs.
8) Management of Manpower Resources: Broadly concerned with leadership both in the group and
individual relationships and labour-management relations.

Origin, Evolution and Development of HRM:

The seeds of HRM were sown during the industrial revolution 1850s in Western Europe and USA. The
wind gradually reached to India as well in the beginning of twentieth century. Since then to the present
era, the development of HRM may be classified as follows:

Trade Union Movement Era:

The conditions of workers in the aftermath of factory system as an outcome of industrial revolution were
very pathetic. The First World War further worsened their conditions. This was the period when state
intervention to protect the workers’ interest was felt necessary.

The Royal Commission of Labour in India (1911) under the chairmanship of J H, Whitley recommended the
abolition of the ‘jobber’ system and the appointment of labour officers in industrial enterprise to perform
the recruitment function as well as to settle the worker’s grievances. Also, workers started forming their
associations which was subsequently known as ‘trade unions’ to improve their lots. Trade Union Act, 1926
was passed in India.

The basic philosophy underlying trade unions was to safeguard the worker’s interest and to sort out of
their problems such as use of child labour, long hours of work and poor working conditions. These unions
used strikes, slowdowns walkouts picketing, boycotts, and sabotage as weapons for the acceptance of
their problems.

These activities of trade unions gave rises to personnel practices such as collective bargaining, grievance
handling system, arbitration, disciplinary practices, employee benefit programmes, installation of rational
and defensible wage structures.

Social Responsibility Era:

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In the starting decade of 20th century, some factory owners/employers started showing humanistic
approach towards the workers. Robert Owen, a British industrialist viewed that the principal social and
economic environments influence the physical mental and psychological development of workers.
Therefore, in order to improve the productivity, it is necessary to improve, conditions of employees by
removing them from an adverse environment or by changing the environment with the provisions of
more satisfactory living and working conditions.

The philosophy underlying in Owen’s paternistic approach was that worker’ is just like a child and owner
is just like a father. Therefore, the owner should take care of a worker just like a father takes care of his
child. Accordingly, Owen himself implemented this philosophy in his cotton mill at Scotland by introducing
facilities such as shower baths and toilets in the factory premises, model villages for workers, raising
minimum wage of employment of child labour to 11 years and reducing working hours from 12 to 10
hours.

Owen also appealed to other industrialists to introduce the similar facilities in their factories. However,
some critics view that, in the event of increasing trade unionism in factories, factory owners adopted
these facilities to control over the labour problems and unrest. According to them, adoption of such
practices was a compulsion for factory owners rather than their paternistic philosophy.

Scientific Management Era:

The concept of scientific management was introduced by Fredrick Winslow Taylor’ in the USA early in the
20th century as an alternative to the prevailing system of management by initiative and incentive.

Based on his shop floor job experience, Taylor developed four principles of scientific management:

1. Development and use of scientific methods in setting work standards, determining a fair day’s work,
and best way of doing work.

2. Scientific selection and placement of workers best suited to perform the various tasks and provision of
their training and development for maximum efficiency.

3. Clear cut division of work and responsibility between management and workers.

4. Harmonious relations and close cooperation with workers to secure performance of work in
accordance with the planned jobs and tasks.

Human Relations Era:

By 1920, it was felt that earlier approaches to human resource management were incomplete as these did
not recognize workers as human beings having their feelings, attitudes and needs. It was between 1925
and 1935; many experts expressed their opinions towards the human aspects of organisational activities.

A psychologist namely Hugo Munsterberg in his book “Psychology and Industrial Efficiency” suggested the
use of psychology in selection, placement, testing and training of employees in an organisation. Elton
Mayo and his associates conducted a series of experiments from 1924 to 1932 at the Hawthorne plant of
the Western Electric company in the USA.

The main findings of the Hawthorne Experiments were as follows:

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1. Physical environment at the work place do not have any material impact on the efficiency of work.

2. Favourable attitudes of workers and work-team towards their work were more important factors
determining efficiency.

3. Fulfilment of the worker’s social and psychological needs had a beneficial impact on the morale and
efficiency of workmen.

4. Employee groups based on social interactions and common interests exercised a strong influence on
worker’s performance.

5. Workers cannot be motivated solely by economic rewards. More important motivators are job security,
recognition, right to express their opinion on matters related to them.

Based on these findings, the researchers developed a human relations approach to HRM. It was based on
the view that the modern organisation is a social system in which the social environment and inter-
personal relations govern the behaviour of employees.

The relationship between the superiors and subordinates should relate to the social and psychological
satisfaction of the employees. In ultimate sense, the objective of human relations approach was to make
employees productive and it was realized that employees’ satisfaction is the best means of making the
employee productive.

Behavioural Science Era:

We have just seen that human relations era assumes that a happy worker is a productive worker. As a
corollary to this, the behavioural science era assumes human behaviour as a means to achieve efficiency
in performance. Behavioural approach to HRM is based on the findings of intensive research carried out
by behavioural scientists belonging to the disciplines of sociology, social psychology, anthropology and
management experts.

The major contributions made by the behavioural scientists are in the areas of motivation, leadership,
communication, organisational change and development, organisational culture, and individual and group
dynamics On the whole, behavioural science approach of HRM was concerned with the social and
psychological aspects of human behaviour in organisations.

Some of the important elements of the behavioural approach of HRM are outlined below:

1. Individual behaviour is linked with the group behaviour. For example, a person be inclined to
resist to change has behaviour as an individual. But, he/ she will readily do so if the group to
which he/ she belongs, decides to change its behaviour.
2. Informal leadership rather than the formal leadership of manager is more effective in influencing
people to achieve standards of performance. From this viewpoint, democratic leadership style of
the manager is more acceptable to the subordinates and hence, more effective.
3. By nature, people do not dislike work. Most people enjoy work and are motivated by self- control
and self development. In fact, job itself is a source of motivation and satisfaction to employee.
4. Expanding subordinate influence, self- control and self- direction can improve operating
efficiency.

Contingency Approach:

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Offer a solution which is responsive to the characteristics of the total situation faced. The above solutions
may be suitable to different situations. As regards work simplification, it would be ideal where there is a
limited resource, unskilled labour and limited training opportunities available.

Job enrichment would be ideal for that organisation where there are abundant skilled labour forces. Thus,
this clearly shows that management function depends upon given situations present in an organisation.
Managers are supposed to systematically diagnose a given situation and then find out solutions to meet
the situation.

In short, contingency approach of management and for that matter HRM emphasizes on two points:

1. It focuses attention on situational factors that influence managerial decision.

2. It highlights the need for developing skills for managers in situational analysis.

Ideas like contingency were also expressed by Mary Parker Follett (1865-1933) way back during 1920s.
She was greatly interested in social work and had a gift for relating individual experience to general
principles. Her concept of the Law of the Situation referred to the necessity of acting in accordance with
the specific requirements of a given situation.

She noted that these requirements were constantly changing and needed continued efforts to maintain
effective working relationship F.W. Taylor also emphasized the importance of choosing the general type
of management best suited to a particular case.

Similarly Henry Fayol emphasized the point that there is nothing rigid or obsolete in management efforts.
Thus, it is clear that contingency approach is not new, but has been expanded in the modern times. This is
the modem recent approach in management and for that matter in HRM as well.

Systems Approach Era:

A system may be defined as a set of interdependent parts forming an organised unit or entity. The system
is defined as “an organised and complex whole: an assemblage or combination of things or parts forming
a complex unitary whole.” The parts, also known as sub­systems, interact with each other and are subject
to change. These sub-systems are inter-related and interdependent.

Any working organisation usually consists of the following three broad sub-systems:

1. Technical Sub-system, i.e., formal relationships among the members of an organisation.

2. Social Sub- system, i.e., social satisfaction to the members through informal group relations.

3. Power Sub-system, i.e., exercises of power or influence by individual or group.

The interaction of the various sub-system forms the total system. There is also interaction between total
system/sub-systems and environment. Environment itself may influence or be influenced by the system
or sub-system.

The system approach is characterized by the following features:

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1. A system is a group of inter-related elements which are separate entities/units.

2. All the elements are inter-related in an orderly manner.

3. There is the need for proper and timely communication to facilitate interaction between the elements.

4. The interaction between the elements should lead to achieve some common goal.

Let us also see how the system works. Activities relating to procuring and transforming inputs into
outputs are viewed as enterprise operations. Materials, information and energy that flow into the
organization are inputs and products and services offered by an organization are outputs.

The organization through its operations transforms inputs into output. Men, money and managers
become the part of system. Sale of outputs provides energy called ‘feedback’ to repeat the system.

At the heart of the systems approach lays a management Information System (MIS) and communication
network for collection, analysis, and flow of information to facilitate the functions of planning and control.
Modem thinkers consider HRM as a system that integrates activities with an objective to make the best
use of resources which are always scarce.

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