Page 16 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes problems. To make decisions about personnel and to solve HR problems, managers gather
data and draw conclusions from them. Research can lead to an increased understanding of
an improvement in HRM practices. In fact, engaging in some type of research into what is
happening in the HRM discipline can be viewed as necessary for one’s survival as a manager
over the long term. Research can additionally help managers answer to the questions about
the success of programmes such as those for training and development-for which they may
bear responsibility.

1.4.7 Compensation/Benefits
Wages and salaries (the payment received for performing work) are the major components
of compensation and reward process which is aimed at reimbursing employees for their
work and motivating them to perform to the best of their abilities. In addition to pay, most
employees receive benefits such as ESI; leave travel concession, and non-financial rewards
such as security, recognition and privileges. Although individual employees value pay
differently in relation to other work rewards, for most people the pay received for work
is a necessity.
Determining wage and salary payments is one of the most critical aspects of HRM because:
• the organization’s reward system has such a profound effect on the recruitment,
satisfaction and motivation of employees, and
• wage and salaries represent a considerable cost to the employer.
A carefully-designed wage and salary programme that is administered according to sound
policies and consistently applied rule is essential if human resources are to be used effectively
to achieve organizational objectives.

1.4.8 Employee Assistance
Employee assistance focuses on providing personal problem solving, counselling to individual
employees.
1.4.9 Union/Labour Relations

Unions are born because employees are frustrated in achieving important goals on an
individual basis and unionising is the only countervailing technique available to achieve
these goals. The establishment of good labour relations depends on constructive attitude on
the part of both—the management and the union. The constructive attitude in its turn
depends on all the basic policies and procedures laid down in any organization for the
promotion of healthy industrial relations.

1.5 Environmental Influence on HRM

Personnel managers do not perform their job in a vacuum. As a number of environmental
factors affect HRM, environment furnishes the macro context and the organization is the
micro unit. Of primary importance here are the external influences of economic condition,
labour markets, laws and regulations and labour unions. Each of these external factors
separately or in combination can influence the HRM function of any organization. Changes
in the external environment have a profound impact on the personnel. These changes
include technological obsolescence, cultural and social changes, and policies of the
Government.
The external environment consists of factors that affect an organization’s human resources
from outside it. Let us examine these factors in detail:

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