The organization is made up of methods, material and men. Therefore personnel administration is a core of organization management.
Importance of Human resource
Even classical thinker Taylor realised human resource importance but they overemphasised structure and process - simplistically assumed that given the right incentive, technical training, hierarchical supervision, leadership, management and using principles of management would be sufficient. But Human relation schools offered insights into behavioural aspects and the power of informal organisation or groups i.e man responds both as an individual as well as the part of a group. i.e individual motivation and collective or group dynamics.
Even though modern market-oriented philosophies (NPM, PC) tend to blame Bureaucracy for Public Sector inefficiency - yet they also acknowledge that ultimately he is the man who is the key to solve the problem and not just money or methods. Funds are valuable only when used by trained experienced and devoted Human resource. Committed Human resource can work even with minimal resources and compelling conditions (even without basic infra).
Human resource is a strategic differentiator among the organisation. The world public sector report treats Human resource as a key variable. In Africa and Latin America, the reports speak about lost decades (post-independence era) where the emphasis is on structural adjustment and transplanting institution and less importance was given to Human resources - Knowledge, Skill and Attitude.
On the contrary, India could successfully emerge through the transition period since political leadership empowered civil services and they responded by demonstrating commitment and continuity with change. Even though the apex political leadership wanted to wind up ICS and start Indian development service, deputy PM Patel was more pragmatic and realised the criticality of having civil service. The faith was proved right with Civil service playing an important role in integration of princely states, they adapted, showed resilience and contributed to nation-building. Even in the current context where admin has become a shared space / multi-actor model civil service continues to be important as ever but in a different manner.
HDR - Human development Report 2013 pointed out the importance of investing in Human resources leading to exponential returns and triggering a virtual cycle, there is growing consensus worldwide that public sector capacity building should be people-centric not just process-centric. Human resource is the 1st customers. Therefore motivated Human resource leads to a contingent/tipping point leadership/ripple effect. World Bank studies indicate a high correlation between the quality of governance, Human development and Human resource management policies of the country. As demonstrated by Riggs, just by transplanting structure and functions objectives can't be achieved. Governance deficit is a creation and a reflection of weak Human Resource management.
Importance of Human resource management
- Attract, train and retain the best talent
- Ensure ideal job fit - Right Person for the Right Job
- HRM + HRD established an organisational climate which enhances productivity, motivation, job satisfaction, promptness, professionalism and stimulates every employee to achieve his full potential
- Synchronise self and organisational goals
- Achieve work-life balance
- Transform the organisation into learning entities - 360*, 365 days
Human Resource Development
- Sum total of KSA and organisational values of employees - Definition
- Acquisition of capabilities required to do present Job effectively and prepare for failure responsibilities. Therefore HRD helps in
- Increased sharpen capabilities
- Develop potential
- Individual and organisation Potential
- Organised learning experience
- Team Work
- Collaboration and synergy - employees take pride in organisation and organisation take pride in their employees.
- At individual level HRD contributes to Role clarity, goal clarity, Job enrichment, interpersonal trust, confidence and competence
- At group level - strengths team behaviour, coordination, multi-disciplinary talent pooling, quality interactions, symbiosis.
- At organisational level - better productivity, Industrial relations and transformations.
Paradigm shift from conventional management and Human resource management
| Dimensions | Conventional Management | HRM / HRD Approach |
|---|---|---|
| 1.Structure | Hierarchical, Centralised, Closed | Less Hierarchical / matrix/centralised, Open, even, virtual(tech based), multi-disciplinary / project approach |
| 2.Design | Pyramidical | Grid, Flatter |
| 3.Management Style or Management Assumption | theory X | Theory Y, Z, Management by Objective |
| 4.Exepected Behaviour | Rule Compliance, process-centric, discipline, obedience, doing things rightly(admin behaviour) | Goal Oriented, people centric, performance driven, change oriented, innovative |
| 5.Motivational Assumptions | Adam - Monetary incentives, lower needs of Malow's Hierarchy | Abraham - Job enrichment, satisfaction, challenging, assignment, creativity |
| 6.Culture | Command and Control | Collective Decision Making, Shared vision, employee engagement, stakeholder involvement |
| 7.HR practices | ||
| a) Recruitment | Recruitment is based on merit system but lifetime employment, Generalist Approach | Merit System but focused on performance, need-based, task orientation, specialist driven, including lateral recruitment |
| b)Training | Induction training (entry-level) | 365 days, 360*(exposure visit hands-on) |
| c)Performance Appraisal | Annual Confidential Report by Hierarchical Superior | 360* appraisal (holistic approach) and potential appraisal |
| d)Promotion | Seniority, time-bound, no-penalisation for non-performance | Performance-driven |
| e)Pay | Fixed | Fixed + performance-related payment |