Human Resource Management system II HRM system

HRM system 

A system  is a group of interrelated parts acting together to accomplish organizational goals. HRM is a sub-system of an organizational system. HRM is viewed as a group of interrelated parts with a unified purpose. Like other systems, HRM system is composed of three basic elements viz., input, process and output. It also has the feedback mechanisms. HRM system operates, interacts, with both internal and external environment. A brief explanation of the components of HRM systems are as follows:

1.Inputs of HRM system

a. Objective and strategies of the organization: Every organization is goal oriented. They are established to attain goals. Strategies are developed to achieve the stated goals. Strategies provide a means for achieving some goals or producing some desired results. It also includes HR objectives and strategies. 

b. Plans, Policies and Procedure: Other input for HR system are plans, policies and procedures of the organization. Based on those inputs HR department sets its HR plans, policies and procedures. 

c. Organization structure: It is a framework of authority-responsibility relationship.  It indicates the way in which the organization's activities are divided, organized and coordinated. Based on it, number and types of employees required are determined.

d. Communication and decision making: Good communication is highly essential for HR effectiveness. HR functions viz., acquisition, development, motivation and maintenance all demand communication. Decision making, on the other hand, is the process of identifying and choosing alternatives courses of action. They also affect HRM system.

e. Environmental and social obligations: In the last couple of decades, public attention has been  focused on the issues of environmental and social responsibility of business. They work on input factors for designing and implementing HRM system. An organization gets its inputs from societies and its outputs are also consumed by the societies. 

2. Processes of HRM System

Those inputs received by the HRM system (discussed above) are processed together to bring the desired outputs. Inputs received by an HRM system are processed by (acquisition, development, motivation and maintenance ) four components of HRM.

a. Acquisition : This component of processing (HRM)  is composed of human resource planning, recruiting (both internal and external) and employee socialization. HR planning is a process by which an organization ensures that it has the right number of people, at the right post, at the right time which is cost effective. Recruitment is a process to discover the possible sources of manpower to meet the requirements of staffing plan. It also ensures application of effective selection. Employee socialization is a process of adaptation that takes place as individual attempts to learn the values and norms of work roles.

b. Development: This component of processing (HRM) is a composed of employee training, management development, and career development. Employee training is a process of learning. a sequence of programmed behaviour/ activity. It is a learning experience. It seeks a relatively permanent change in an individual that will improve his/her ability to perform on the job. Management development is a systematic process of learning and growth by which managerial levels employees gain and apply knowledge, skills and attitudes to manage work organizational effectively. Career development provides a supply of talents and abilities demanded by the organization. The employees also gain from career development activities (i.e., a higher and more challenging jobs and rewards) . 

c. Motivation : This component of processing (HRM) is composed of job design, performance evaluation, rewards, job evaluation, compensation/benefits, and discipline. Job design motivates employees in several ways. Performance evaluation tries to establish relationship/ equity between employee effort (input) and rewards(output) employees get from doing the job. Job evaluation is the process of determining the relative worth/value of various jobs within the organization. Compensation refers to all the forms of pay/rewards going to employees arising from individual's employment in organization. It can directly influence major elements like job satisfaction, acquisition, and performance and labour relations.  Discipline tries to prepare a work condition in the organization where employees conduct themselves in accordance with firm's rules and standards of acceptable behaviour.

d. Maintenance: This component of processing (HRM) is composed of employee safety and health, and employee/labour relations.  Employee safety refers to the protection of employees/workers from the danger of accidents. Occupational health tries to prepare the workplace which is free from unnecessary risks. It insures that the conditions surrounding the workplace are safe for employee's physical and mental health. Employee/labour relation incorporates many factors. They are freedom of establishing employees association, collective bargaining, grievance/dispute handing  and cooperation between employers and employees. 

3. Outputs of HRM System

They are also called dependent variables of HRM system. They are the end results/ outcomes of the HRM system which an organization wants to achieve. In fact, the major outputs of HRM systems are productivity, quality of work life and readiness for change. The desired outputs of HRM system are : 

• Higher levels of productivity,
• Higher levels of quality of work life,
• Employees who are always ready to accept and boost organizational change (rather than resisting change),
• Reasonable /optimum level of profit generation, goal achievement,
• Attainment of goals by using less inputs, and 
• Relatively higher level of employee job satisfaction.

4. Environments of HRM System 

HRM system is also influenced by both internal and external environment in which it operates.

Internal environment: These forces are internal to the organization which influences HR activities. They are within the control of an organization. Important internal elements are: strategy of the organization, organizational structure and culture, labour unions, organizational activities, etc. They offer strengths and weaknesses to the HRM system.

External environment: It is outside the organization. So, it is not within the control of single organization. It offers opportunities and threats to the HRM system. Some of the important components of external environment of HRM are: physical environment, economic environment, socio-cultural environment, political/legal environment, technological environment, labour market/ environment, trade union environment, global business environment, etc.