‘Management is nothing but development of people, not the direction of things’ In modern industry system, the production is the result of the joint efforts of all the factors of production, i.e., land, labour, capital, organization and entrepreneur. Labour, unlike other factors of production is an active factor. Human resource Management is, perhaps, the oldest and most widely researched subject in management. Yet, as technologies change, cultural diversities occur and people’s expectations undergo fundamental shifts towards newer and newer dimensions. In this rapid revolutionary changing environment, human resource development, a part of human resource management plays an important factor in determine an organization’s success. Human Resource Development is important to any growing business organization because it helps to improve business performance through the development of personnel, and, directing and enhancing talents and skills through planned activities design to improve organizational learning.
Ronald R. Sims (2007) described Human Resource Development as “strategically-driven activities designed to improved current and future learning, performance, and change” (p 2). Sims pointed out that in the early 1980s; the field of personnel management shifted its emphasis as personnel departments renamed themselves human resource department.’ It’s importance lies in its association with a strategic, integrated and highly distinctive managerial approach to the management of the people. The distinctiveness lies in labour being seen as an asset and resource and not as a cost. The strategy is to try to develop this resource to it’s maximum so that emphasis is on the individual employee and on his/her motivation, training and development.
Human Resources Management is defined as proactive rather than reactive, system-wide rather than fragmentary, treats labour as social capital rather than as a variable cost, is goal-oriented rather than relationship oriented, and ultimately is based on commitment rather than compliance.
The key themes upon which Human Resources Management is based include Human Relations psychology, Strategic Management theory, and the doctrines of quality and flexibility. The relative emphasis that is accorded to each of these themes can give rise to different ‘variants’ of Human Resources Management. In particular, it is possible to identify two extreme positions. These are Instrumental and Humanistic. Instrumental approaches draw upon the rational-outcome model of strategic management to view Human Resources Management as something which is driven by and derived directly from corporate, divisional or business level strategy, and geared almost exclusively to enhancing competitive advantage. Humanistic approaches, on the other hand, utilise ‘process’ theory to emphasise the reciprocal nature of the relationship between strategic management and Human Resources Management and the latter’s role in ensuring that competitive advantage is achieved through people but not necessarily at their expense.
One positive consequence of several new approaches to human resourcing has been to force managers to address the basic concepts and values that they routinely use in the evaluation of personnel processes, thereby encouraging a clearer understanding of the overall human resource system. Such an understanding is closely linked to the success with which the performance of human resources can be evaluated. Such evaluation has tended to take two forms: a concern with systems of performance management, and the use of flexible working patterns and organisational structures.
However Human Resources Management is not perfect when you ponder on the point of view of the business goals and interests. It’s extremely hard for a company to achieve maximum profits and efficiency if it takes too much at heart the wellbeing and interests of its employees. This problem can be defined as an ‘integration’ issue where we distinguish the external fit of Human Resources Management with the organisation’s broader business view and the internal consistency of the policy goals of Human Resources Management itself. This is particularly problematic in highly competitive or recessionary conditions where the needs of the business are likely to undermine any internal Human Resources Management issues. For example, if shedding of labour should occur this would challenge, if not destroy, an organisation’s Human Resources Management image of caring for the needs and security of it’s employees.
The fundamental problem with Human Resources Management is that in most cases Human Resources issues are subordinate and secondary to business strategy. It is not simply that the search for profit overrides the policy goals of Human Resources Management, but arguably that Human Resources Management is pursued only in the belief that by raising employee’s commitment, flexibility and quality of their work the bottom line will be improved.
The contradictions within Human Resources Management are most apparent at the level of actual practices, with simultaneous advocacy of workforce attributes such as individualism and teamwork, commitment to a job and flexibility and development of a strong culture and adaptability. In identifying the tension between individualism and teamwork, for example, what these cases demonstrate is the need for a redefinition of Human Resources Management, for despite any surface similarity with the textbook checklists of Human Resources Management policies these cases could certainly not be described as operating a form of ‘development humanism’. The internal contradictions, which plagued Human Resources Management, are well illustrated by the issue of employee commitment. For proponents of Human Resources Management, commitment represents a key dimension because it’s sometimes assumed that highly committed workers are more productive.
Conflicts are apparent too where organisations have attempted to introduce more flexible working arrangements and performance-related pay. The problems with flexibility began partly from the tensions between different sources of flexibility. While soft forms of Human Resources Management encourage employee development through the learning of a broader range of skills, hard forms of Human Resources Management advocate the securing of greater variability in the volume of labour, therefore providing management with greater scope to match labour input to demand fluctuations. In addition, however, conflicts exist within each of the major sources of flexibility. For example, the danger exists of securing high levels of functional flexibility at the cost of other organisational objectives such as stability, continuity and cohesion. Likewise forms of numerical flexibility potentially clash not only with the objective of securing employee commitment but also with establishing and sustaining high quality output and group cohesion.
Performance-related pay, to emphasise the more purposeful and ‘object achieving’ focus of Human Resources Management, would seem not only to have failed to yield high levels of commitment in many organisations, but also to have perpetuated a longstanding tradition in wage and salary administration of ‘muddling through’. While a strategy for reward may need to be part of a wider human resources development strategy, reward in itself is not sufficient to promote human resource contributions to corporate improvement. More importantly, however, individual reward systems could well act to undermine co-operation, teamwork and even individual motivation. And these are all key elements of Human Resources Management.
These and other conflicts and contradictions evidenced by the different contributions underline the problematic status of Human Resources Management as a coherent concept. Rather than seeing this as an excuse for abandoning the notion of Human Resources Management altogether, however, the evidence presented would seem to support a more careful circumscribing of Human Resources Management, and a clearer definition of its status as a set of management practices. In doing so, the relationship between Human Resources Management and the longstanding core issues of labour management like issues of power, control, conflict, resistance, dependence, consent, etc. Human Resources Management is one of a series of approaches management may take to secure the levels of compliance and co-operation it requires. Different sets of circumstances will influence the adoption of one approach over others, while changing circumstances will encourage a shift from one to another and possibly the creation of new practices and approaches.
The central objective of Human Resources Management policy is to secure the commitment of employees to innovation and commitment of employees to innovation and continual improvement of product quality. Some measures of employment security and considerable investment in training and development are seen as essential supports for management effort in this area. Equally, the recruitment and retention of competent and committed staff is supported by competitive pay and reward structures which are perceived as fair. At the level of the workplace, these strategies require significant change in management behaviour. The crude assertion of managerial prerogative, associated with short-term low-cost approaches, is eschewed in favour of employee involvement in problem solving and fostering of a climate of operation and trust.
Human Resources Management has been dependent upon the changing economic circumstances of the past decade. It grew in the boom of the last half of the past decade, when attachment, commitment and development were the watchwords. It faced it’s sternest test in the severe recession of the first half of the nineties with its emphasis on restructuring, downsizing and a big reduction in both employee and managerial confidence in the prospects for renewed growth. For this reason Human Resources Management is now tinged with suspicion and a certain hostility as to its role in organisations. The difficulty for Human Resources Management is to establish its credentials as a central part of employee management in economic conditions that make the expansionary and development aspects of the approach extremely difficult to sustain.
While Human Resources Management has proved possible for traditionally conceived industrial relations and personnel management procedures to have endured economic cycles, even though the managerial strategies underlying them reflected the realities of the labour market, Human Resources Management has still to demonstrate that it has the robustness to move beyond generalised managerial prescriptions as a sustainable model of management. In this sense, this decade will be the testing ground for the idea of Human Resources Management as a consistent and integrated approach, as opposed to a fragmented and opportunistic set of interventions. Company History
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat. Amul spurred India’s White Revolution, which made the country the world’s largest producer of milk and milk products. In the process Amul became the largest food brand in India and has also ventured into markets overseas. The Kaira District Co-operative Milk Producers’ Union Ltd. was registered on 1 December 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District of Gujarat. Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson to collect milk from Anand and supply it to Bombay city. Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel.
He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect and process milk. Milk collection was also decentralized, as most producers were marginal farmers who could deliver atmost 1–2 litres of milk per day. Cooperatives were formed for each village too. The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya. Dalaya’s innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a little later, along with Kurien’s help, making it on a commercial scale, led to the first modern dairy of the cooperative at Anand, which would successfully compete against established players in the market.
The trio’s (T. K. Patel, Kurien and Dalaya’s) success at the cooperative’s dairy soon spread to Anand’s neighbourhood in Gujarat, and within a short span, five unions in other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. In order to combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives was set up in 1973. The Kaira Union which had the brand name of Amul with it since 1955, transferred it to GCMMF. Recruitment, Selection and Induction
“Recruitment forms the first stage of the process which continues with selection and placement of the candidate.” The word recruitment means generating of application for the specific position. The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organization. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:
Identifying the vacancy:
The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
* Preparing the job description and person specification.
* Locating and developing the sources of required number and type of employees (Advertising etc).
* Short-listing and identifying the prospective employee with required characteristics.
* Arranging the interviews with the selected candidates.
* Conducting the interview and decision making
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.
Wages and Salary AdministrationWages: Compensation generally comprises cash payment include wages, bonus and shared profit. Good compensation plan have a salutary effect on employees. They are happier in the work; co-operative with management and productivity is up. There can be both monetary and non-monetary forms of compensation.Wages in the widest sense mean any economic compensation paid by the employer under some contract to his workers for the services rendered by them. They are basic salary and allowances. The basic wage is the remuneration, which is paid or payable to an employee in terms of his contract of employment for the work done by him. Allowance includes dearness allowance, bonus, overtime pay etc.Method of wage payment:Time wage: It is based on the amount of time spent wages measured on the basis of unit of time.Piece wage:It is based on the amount of work performed.Compensation Structure: There are 3 sound primary compensation structures.Wage Incentive:In the word of Hummel and Nickerson, Wage incentive: “refers to all plans that provide extra pay for extra performance in addition to regular wages for a job.”
A system of wage payment, which would maintain both quality and quantity , is called incentive wage plan. There are three broad categories of incentive schemes as classified> they are:Simple incentive plan.Sharing incentive plan.Group incentive plan.Salary Administration: in AMUL salary counting is a centralized process. That means, salary of all plant workers, chilling center and AMUL dairy workers is counting at AMUL in Account Department. Every month leave must of concern plant send in an Account Department and according to that they prepare salary slip of employee. In AMUL salary is prepared based on the Attendance report from T.K. Office.In AMUL Time Keeping department has its own importance. It plays very important role by keeping an attendance record of all employees, it sends the report to the accounts department. Attendance of all employees is analyzed and entered into the computer. On base of that record salary, wages and deduction is made and then salary is paid to them.Attendance is considered to be one of the major and important factor. The wages are paid in cash and also have a facility of bank in UTI bank for employees.
Salary transfer in that particular account of employee.Wages and Allowances:In AMUL they have various type of allowances to their employees. Some of them are mentioned below:Basic: Basic pay is the fixed salary or wage, which contribute sthe rate for the job. In AMUL basic is decided according to the designation of employee and their grade. In future the increment will be given to employee in basic according to his/her experience.Adhoc: Adhoc is a type of allowance given to employees, union decides this allowance as an extra benefit for employees.HRA: House rent allowance is given to employees as an incentive. HRA is given to that employees who are not on leave in quarter allotted by union. HRA is decided by management committee every three years according to the designation of the employee.Travel allowance: Travel allowance is given to employees as an incentive. It is decided by management committee every three years according to the designation of the employee.Medical: For the medical expenses of the employee this allowance is given.Production Bonus: In AMUL production bonus is also paid to the employees, management decides this bonus.
In this they decide some amount per day and than that amount is multiplied by the no. of days the employee has worked, whatever the resulted amount is given to the employee as production bonus.In AMUL other allowance is also given like Performance Allowance. According to the grade of the employee this allowance is given.Deduction in Salary:Credit Society: In AMUL, credit society is run by union. Almost all employees are members of this society. Every month certain amount is deducted from salary of employee. The work of society is if a worker needs financial help then he/she will take laon from the society. The amount of this loan is deducted from salary in installments.Loan: if any employee take a loan from society then it will be deducted from the salary. The other provision in AMUL is if any employee takes laon from HDFC bank or Ghruh bank then their installment is deducted from the salary of employees.LIC Premium: LIC Premium is deducted from the salary directly.
Provident Fund: Provident Fund is deducted from the salary directly every month.Canteen Coupon Charge: In AMUL there is a facility of canteen for the employees. Coupon is given of Rs. 19.50 to new employees while to old employees coupon is given of Rs. 24.50 this amount is deducted from the slary.Income Tax: Income Tax counting is done yearly for all employees who come under the government income tax policy, the taxed amount is divided by and accordingly monthly income tax is deducted from the salary of the employee.Professional Tax: Professional Tax deduction is done from the salary of employee according to his gross salary. According to the rule, the employee with gross income between 3000-6000 the tax deducted is Rs. 20; 6000-9000 tax deducted is Rs. 40; 9000-12000 the tax deducted is Rs. 60 and 12000 above the tax deducted is Rs. 80. Advance: In AMUL they give advance to their employees if he/she needs it. If such advance is paid to employees than that amount will be deducted from the salary. AMUL also gives festival advance to their employees.