Human Resource Managment

HUMAN RESOURCE MANAGEMENT

At the heart of every business venture is its 'human' capital. All the state-of-the-art equipment and sophisticated software cannot match the human behind it. Human resources is the real wealth of an organization. It is, therefore, abundantly clear why every company needs to focus on its manpower if it has to attain true growth and success. Whether it is Wal-Mart or Sony, the greatest of enterprises have built their business empires by embracing this philosophy.

Many businesses around the world employ young management professionals with degrees from premier business schools and pay them astronomical salaries. Experience, however, has shown that all that needs to be learnt about human resource management does not lie in the printed pages of lofty texts. To actually deal with workers, to solve a tricky problem, to stave off a crisis, one has also to use common sense, possess a liberal approach and function without prejudice. Many a knotty problem has been solved by giving a patient hearing to affected workers, by gentle persuasion, and by demonstrating a will to arrive at an amicable settlement where the worker feels happy that his problems have been addressed.


Managing human resources is at once challenging and frustrating – challenging, because of the myriad complications that arise at the workplace, and frustrating because these problems sometimes are seemingly intractable. It is evident that one has to deftly combine a good monetary compensation with a welfare package and ensure that employees are given a decent wage with benefits that should accrue to them as per the prevailing law of the land, realistic promotion opportunities and above all accorded due respect. On the contrary, an archaic wage structure, lop-sided labour policies and lack of proper communication with workers can result in the company being saddled with a dissatisfied, disgruntled and unhappy workforce that can only spell disaster for it.

An organization has to, primarily, have a dynamic recruitment policy that will enable the induction of the right people with the right skills and then it should set about nurturing them. While professional qualifications are necessary, very many companies insist on hiring graduates only from the best business schools of the country, paying them initial salaries that are totally out of sync with their capabilities, as fresh management graduates, at that point in time – a trend set up by big multinational companies and also coinciding with the liberalization policies (that presume, everything, including salaries, is determined by market forces) introduced by the Government when we opened up our economy to global markets in1991. It is nobody’s case that they should not recruit or pay them good salaries but the question is should we create such disparities between individuals within organizations?. In fact, basic economics teaches us that disparities will exist in incomes between employees at the lower levels and those at higher levels in any business set-up but they have to be kept within reasonable limits.

Exemplary, however, are a few big Indian companies who have followed a very healthy remuneration policy where the hiatus in salaries between different classes of employees are within just parameters and these are functioning extremely successfully in our country.

Money is one of the biggest motivators for any employee, so it is vital that salaries are fixed according to individual skills and abilities. A wage structure has to be realistic keeping in mind the nature of the job performed, and the minimum wage required for sustaining a family on the basic amenities of modern living. It is a simple truth that satisfied employees ensure the healthy growth of a business. Often, entrepreneurs and companies fail to grasp this truth. To stint on wages would only prove counterproductive for the employer. It must be remembered right at the outset that employees and employer together form a team that can forge ahead and make meaningful progress, but if an employee is perceived as a mere cog in the wheel he will soon lose zest for his job and will slide back in his performance. Ultimately, it will hinder the growth of the business and this is what a wise management should foresee and avoid.
A short sighted policy of cutting costs by paying meager salaries, keeping short term gains in focus but losing out on long term profit, can only emanate from a management that has not studied or understood the true worth of its employees. Businesses that commence their operations often complain that they are burdened with a high wage bill, without their profits starting to accumulate. The basics of costing should help an entrepreneur or businessman understand that ‘standing expenses’ like electricity, telephone charges, rent and salaries will always be present, whether or not a company is earning profits, and provisions have to be made for these expenses while chalking out a business plan. Everyone is aware that there is a gestation period for profits – short or long, depending on the type of product or service that the business is embarking upon offering. Wages have also to be flexible, allowing for incentives for better performance. If a company is not seized of employee needs but has only set its sights on profits “at any cost” it will certainly be a losing proposition for it in the long run.

Many organizations perceive leave as a special benefit conferred on an employee. In many companies asking for a mere week’s leave would bring a frown on the boss's face. It has to be understood that work and relaxation go hand in hand. Unless tired, beleaguered employees can rest, refresh and recharge themselves, their energy levels would be depleted and their performance will suffer. Mistakes are bound to follow and this will cause the company dear. An employee who goes on a holiday can return to work totally energized. What management may perceive as loss of 'man days' when employees go on leave is, in reality, not so. Even inanimate machinery needs to be maintained through an annual shut-down and overhauling if optimal output has to be ensured. It now seems dated to mention that there used to be a time when companies not only paid their employees handsome leave travel benefits but insisted that they use it for a holiday giving them no option for encashment. These businesses were also success stories.

In today’s commercial business context the number of working hours has increased to such an extent that most employees spend 10-12 hours, if not more, at the workplace, leaving them little or no time to attend to their own or the personal needs of their family, let alone any time for leisure. Most companies believe that flogging their employees is the only way of realizing the maximum return for the salary that they pay them. Unfortunately, this is flawed thinking. What is important is not the number of hours that a person puts in, but the qualitative output that is generated in that time. The 9-5 office job is now a thing of the past. The question that pops up in my mind is “Need an employee be so overworked and overstressed”? “ Is this good human resource management or even good business sense”? I would think not. Much of the work that lands on the desk of an overworked employee at the official closing hours of the day is that which could have either been completed earlier or could be shelved for the next day. In spite of all the Time Management Training Progammes that are conducted in house in companies, work is not completed as per schedule. Today, many businesses having American clients or doing work for American companies simply stretch their own employees’ work schedule to suit the time zones of the US. However, reality is that it soon becomes impossible for the increasingly overstressed, overworked employees to function for long in an incessantly efficient mode. Even computers suffer breakdowns and this neo office timing that allows its employees to neither see sunrise nor sunset can only harm the employees’ growth and with that the company’s growth as well since the two are closely intertwined.

Genuine acknowledgement of the good work done by workers/junior executives not only enthuses them to perform better but also spurs them on in their professional growth in the company. How often do superior officers give their subordinates due credit for a well executed task? While strong criticisms for minor errors are quick to come, rarely do employees get a note applauding them on a job well-done. It is this that can stand as a barrier between worker and management, between employee and employer and between a subordinate and his boss. Enlightened management is hard to come by these days,( never mind all the impressive management jargon that floats in the hallowed corridors of powerful corporations) and this is one of the main reasons that has caused many a business to flounder where it could have flourished. While the pundits of management wax eloquent about the worth of the human being in the organization, rarely do we see theories translate into action. It is not uncommon to observe that in many an organization, a worker becomes a mere statistic, or worse, just a digital entity in its computer! It is also no secret that sometimes a person throws up a well-paying job only because he does not get the necessary recognition, and the 'pat on the back' for the effort that he puts in day after day.

A hierarchy is essential in every organization. In every company there are people with different levels of intelligence, skills and abilities and it is natural to place them in varying categories, allotting them suitable designations with commensurate salaries, but it is vital that the workers on the lower rungs of the corporate ladder are treated with respect and their contribution to the company receives commendation. In most companies lower-level employees tend to be dismissed as unimportant human beings and this lowers the dignity of employees and proves ruinous to their morale. Economic necessity prevents many unhappy employees from quitting their jobs but a good management team should see that such a situation is either avoided or remedied so that the worker feels a sense of pride in his/her work. In keeping the big picture in mind one cannot afford to forget the fine details. A business sustains itself on its workers. Time and again, it has been proven that where organizations have failed to address employee problems they have had to concede defeat in the long run.

There has to be consistency in management policies when dealing with workers’ problems. Prejudices often colour the judgment of the people who are expected to render justice to employees. Objectivity is a prerequisite in the person who is arbitrating between workers and management. There are too many stated rules and policies (fair and just) in the Human Resource Department of most companies but they are hardly, if ever, put into practice. Often, in family managed business houses favoritism and nepotism sets in and these can be dangerous portents for the future of such companies.

On the flip side, workers too can be militant or lackadaisical, and the resultant situation could be one fraught with unnecessary complications, but it is a seasoned manager who will not only anticipate such a problem but also be able to diffuse a crisis in the making. While handling recalcitrant employees it is unnecessary to be ruthless in the first instance A system of punitive measures can be put in place to deal with such employees. If a worker adamantly continues to perform badly without reason, or is consistently late for work, then he can be suitably proceeded against. Here, it is important to make the difference between a constantly erring worker and one who may have genuine reasons for poor performance. This is where one must see human resource management as a process where one is discerning enough to observe and distinguish between the ‘habitual offender’ and the genuine worker beset by a health or some personal problem and accordingly deal with such situations in a just manner. The infamous American ‘hire and fire’ policy is the worst thing to hit Indian companies and business ethos in general. Yet, again, it is heartening to note that a few Indian companies have admirably managed to stay afloat in tough times without resorting to this pernicious practice.

In recent times, too much emphasis has been laid on the technical and technological advancements in machinery and software and this has tended to displace the employee from his pre-eminent position in a business organization. The importance and worth of the human factor in any establishment cannot be overstated. Unlike the other assets of a company, like plant, machinery and capital, workers are the very foundation on which the edifice of a business stands. Any amount of financial capital along with the best that modern technology can offer will simply be valueless without a hard-working, diligent and industrious workforce.

Human resource management is not as simple as many aver. A good human resource manager has to possess a variety of skills if he has to carry out his job successfully. All the knowledge that one imbibes from theoretical dissertations and text book examples can never prepare one for the ultimate problem that will present itself before the person in charge of employees and employee related problems. Ideally, managing the human component at the work place, requires the right blend of patience, understanding, compassion and a keen insight into workers’ thinking .A happy combination of these qualities can help effectively tackle the most formidable of problems.

A sound human resource management philosophy is one that sees its workers as the most vibrant and precious asset, one that has to be constantly tended, motivated and inspired to rise to higher levels of efficiency and is willing to spare no efforts in attaining this goal. Indeed, the essence of management lies in the belief that people (employees) are the life and breath of a healthy business organization.