The Human Resources of an organization represent one of its largest investments. The term human resources at the macro level indicate the sum of all the components (like skill, creative ability) possessed by all the people. Human resources at the organizational level include all the component resources of all employees from rank and file to top level management. So, it includes the resource, of all people who contribute their services to the attainment of organizational goals. Human resources play a crucial role in the development process of the present economy. It is often felt that though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed manpower.
A country with abundance of physical resources will not benefit itself unless human resources make use of them. Only the human resources are responsible for making use of national resources and for the transformation of traditional economies into modern and industrial economies. In the real sense, the values, attitudes, general orientation and quality of the people of a country determine its economic development. The shift from manufacturing to service and the increasing pace of technological advancement make human resources the crucial ingredient to the national well-being and growth.
The efficient use of human resources in an organization depends upon effective human resource management. HRM is an approach to the management of people based on the following main principles:
- First, human resources are the most important assets an organization has and their effective management is the key to success.
- Second, this success is likely to be achieved if the personal policies and procedure of the enterprise are also linked with the achievement of corporate objective and strategic plans.
- Third, the corporate culture and the values, organizational climate and managerial behavior that come out from the culture will exert a major influence on the achievement of excellence. The culture must be managed in such a way that organizational value may have to be changed or reinforced and that continuous effort starting from the top, will be required to get them accepted and acted upon.
- Finally, HRM is concerned with integration – getting all the members of the organization involved in the organizational practice and working together with a sense of common purpose to achieve the organizational goals.
It develops a specialized field in attempting to develop programmes, policies and activities to promote the satisfaction of both individual and organizational needs, goals and objectives. Through human resource, it tries to shape an appropriate corporate culture and introducing programmes which support the core values of the enterprise. The technique for the application of HRM will include many functions such as manpower planning, selection, performance appraisal, salary administration, training and management development. These will be overlaid by special programmes designed to improve communication systems, involvement, commitment and productivity. In fact it aims at qualitatively improving the human beings in the organization who are considered as the most valuable assets of an enterprise.
According to Peters and Watennan, to achieve productivity through people, it is essential to “treat them as adults, treat them as partners, treat them with dignity and treat them with respect”. Both the managers and workers must be persuaded to realize that they have a common objective and interest in increasing output. The following actions will be more fruitful to improve the efficient use of human resources in organizations:
- Conduct a productivity drive.
- Improve manpower budgeting and control techniques.
- Introduce work measurement.
- Use appropriate payment method by results, bonus and profit-sharing schemes.
- Improve motivation.
- Involve employees in improvement programmes.
- Introduce new technology.
- Negotiate appropriate productivity programme.
- Introduce training programme based on an analysis of productivity needs.
The efficient use of human resources could be successfully planned only when the employees are made to understand the objectives of the organization, plan to develop their own career in the organization which will make them more confident and involve them together as a quality workforce.
The efficient use of human resources must result in
Top management has to ensure that it is not sufficient to merely design the “technological sub-system” which includes work flow, information flow, job roles, job relationships, task force policies, procedures and job feedback. They must also consider “human sub-system” which includes organizational climate, level of motivation, high commitment participation, co-operation, satisfaction with work environment, willingness to accept change, work group factors, human resource development and satisfaction with compensation, company policies and procedures.