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• The human resources of an organization Consist of all people who perform its activities. Human resource
management (HRM) is concerned with the personnel policies and managerial practices and systems that
influence the workforce. In broader terms, all decisions that affect the workforce of th Organization concern
the HRM function.
• According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to
achieve organizational and individual goals”.
• Human Resource Management outlines the importance of HRM and its different functions in an
organization. It examines the various HR processes that are concerned with attracting, managing,
motvatng and developing employees for the benefit of the organization
GOAL of HRM
• To meet the needs of the business and management (rather than just serve the interests of
employees);
• - To link human resource strategies / policies
value" to a business;
• - To help a business gain the commitment of employees to its values, goals and objectives
Nature of HRM
Broader functon : Human Resource Management is a comprehensive function because it is about
managing people in the organization. It covers all types of people in the organization from workers till the
top level management.
• People oriented : Human resource is the core of all the processes of human resource management. So
HRM is the process which brings people and organizations together so that their goals can be achieved.
• Action oriented : Human resource management believes in taking actions in order to achieve individual
and organizational goals rather than just keeping records and procedures
management in order to get maximum satisfaction from their work so that they give their best to the
organization.
• Integratng Mechanism : HRM tries to build and maintain cordial relations between people working at
various levels in the organization. Future oriented HRM is very important activity which helps
organization to achieve its objectives in future by providing well motivated and competent employees.
• Universal functon
HRM can be applied in business as well as other organizations such as schools, colleges,
hospital,religious,organizations,etc.
As a Process : HRM is a process of four
Acquisition of human resources : This function includes Human Resource Planning, Recruitment,
Selection, Placement and Induction of staff.
• Development of human resources : This function includes Training and Development and Career
development. The knowledge, skills, attitudes and social behavious of the staff are developed.
• Motvaton of human resources : This function includes giving recognition and rewards to the staff. It also
includes Performance Appraisal and handling the problems of staff
Maintenance of human resources : This function includes
providing the best working conditions for employees. It
also looks after the health and safety of the staff.
• The scope of HRM is very immense. HRM plays a vital role of a worker from the time he enters into any
organization till he leaves. HRM activities include –
• 1. Procurement : It the placement of right kind of personal to the right post. It includes, determination of
manpower requirements. Job analysis, Nature and scope of requirement, employee selection and
placement of employment.
• 2. Training and Development : Training and Development is a must in any organization. It prepares the
roles:
• Every organization has the option of choosing the candidates for its recruitment processes from two
kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of
employees from one department to other, promotions) to fill a position are known as the internal sources of
recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as
the external sources of recruitment Recruitment , selection and induction
• Recruitment is the process of attracting the most suitable people for the position, selection is the process
of choosing the best person for the position, and induction is introducing the person to the position
• This module describes a series of well-tested steps to help you identify the right person, to ensure he
or she will fit well with your farm business, and to meet the various legal obligations of an employer.
• If recruitment is done well, the business benefits from happier and more productive people, reduced
staff turnover, good working relationships and ultimately a more profitable farm.
• Both recruitment and selection are the two phases of the employment process. The
differences between the two are:
1. Recruitment is the process of searching the candidates for employment and stimulating them to apply
for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are
screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of
best candidates for the organization, by attracting more and more employees to apply in the
organisation WHEREAS the basic purpose of selection process is to choose the right candidate to fill the
various positions in the organization.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS
selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is
concerned with selecting the most suitable candidate through various interviews and tests.
• Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum
eligiblity criteria laid down by the organization. The skills, academic and family background,
competencies and interests of the candidate are examined during preliminary interview
• Applicaton blanks- The candidates who clear the preliminary interview are required to fill application
blank. It contains data record of the candidates such as details about age, qualifications, reason for
leaving previous job, experience, etc the Employee selecton Process
• Employment Interviews- It is a one to one interaction between the interviewer and the potential
candidate. It is used to find whether the candidate is best suited for the required job or not.
• Medical examinaton- Medical tests are conducted to ensure physical fitness of the potential
employee. It will decrease chances of employee absenteeism.
• Appointment Leter- A reference check is made about the candidate selected and then finally he is
appointed by giving a formal appointment letter.
Manpower planning
• Manpower planning is the process of reviewing an organization’s employee, or manpower, needs and then
selecting the best people for certain jobs. The end goal of successful manpower planning is a smoothly
running operation, and the long-term result of manpower planning is a company able to achieve its goals,
because its employees fill the right places within the organization. Manpower planning typically falls
under the human resources department and it's not something that occurs quickly. Instead, it is a
process that requires careful analysis and consideration to achieve the desired outcome
Type of organization
Number of departments
Number and quantity of such departments
Future forecasting
2 Making future manpower forecasts- Once the factors affecting the future manpower forecasts are
known, planning can be done for the future manpower requirements in several work units
Steps in Manpower Planning
• Developing employment programmes- Once the current inventory is compared with future forecasts, the
employment programmes can be framed and developed accordingly, which will include recruitment, selection
procedures and placement plans.
• Design training programmes- These will be based upon extent of diversification, expansion plans,
development programmes,etc. Training programmes depend upon the extent of improvement in technology and
advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.
Inducton
• After a new employee is hired into an organization, it is necessary he or she be familiar to organization's
philosophies, goals and objectives, policies, procedures, rules and regulations and practices. This orientation is
called employee induction
• Induction can be defined as The HRM function that systematically and formally introduces new employees to the
organization, the jobs, the work groups to which they will belong and the work environment where they will work.
Induction is designed to achieve following objectives:-
• Help the new employee overcome shyness and nervousness in meeting new people in a new environment.
• Give the new employee the necessary information such as the location of a cafe and other locations.
organization.
• Develop among the new comers a sense of belonging and loyalty to the organization
• :
General orientaton by the staff It gives necessary general information about the history and the
operations of the firm. The purpose is to help an employee to build up some pride and interest in the
organization.
• Specific orientaton by the job supervisor: The employee is shown the department and his place of
work; the location of facilities and is told about the organization’s specific practices and customs. The purpose
is to enable the employee to adjust with his work and environment.
• Follow-up orientaton by either the personnel department or the supervisor: This is conducted
within one week to six months of the initial induction and by a foreman or a specialist. The purpose is to find out
whether the employee is reasonably well satisfied with him. Through personal talks, guidance and counseling
efforts are made to remove the difficulties experienced by the newcomer
3
UNITS
Performance
appraisal
Performance
appraisal
• Performance appraisal is the systematic description of an employee's job relevant strengths and
weaknesses.“
•
In a Performance appraisal, the employee's merits such as initiative, regularity, loyalty,
personality, etc., are compared with others. Then each employee is rated or ranked. That is,
he is given a particular rank such as First Rank, Second Rank, etc. So if an employee has the
best attendance then he is given First Rank in attendance and so on.
The critical incidents for performance appraisal is a method in which the manager writes down positive
and negatve performance behavior of employees throughout the performance period
2. Weighted checklist
This method describe a performance appraisal method where rater familiar with the jobs being
evaluated prepared a large list of descriptve statements about effective and ineffective behavior on
jobs
Paired comparison analysis is a good way of weighing up the relatve importance of optons. A range of
plausible optons is listed. Each opton is compared against each of the other optons. The results are
tallied and the opton with the highest score is the preferred opton.
• 4. Graphic ratng scales
The Ratng Scale is a form on which the manager simply checks off the employee’s level of
performance. This is the oldest and most widely method used for performance appraisal.
5. Essay Evaluaton
This method asked managers / supervisors to describe strengths and weaknesses of an employee’s
behavior. Essay evaluaton is a non- quanttatve technique. This method usually use with the graphic
ratng scale method.
This method used to describe a performance ratng that focused on specific behaviors or sets as
indicators of effective or ineffective performance. It is a combinaton of the ratng scale and critical
incident techniques of employee performance evaluaton.
• 7. Performance ranking method
Manager will compare an employee to another employee, rather than comparing each one
to a standard measurement.
MBO is a process in which managers / employees set objectves for the employee, periodically
evaluate the performance, and reward according to the result.
For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in
the middle, and 10 percent in the bottom.
Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.
Ranking
• Employee ranking is an attempt to evaluate employees relatve to each other, by using some criteria to
identfy the better performers versus the less better performance. The result, at least in theory, is a list
of employees in some sort of ranked order.
• Ratng
- This involves ratng an employee on a scale which ranges from ‘poor’ to ‘excellent’ performance. The
employee is assessed on this scale based on their performance or traits which are considered relevant to the
job.
360 Degree Appraisal
• An appraisal made by top management, immediate superior, peers, subordinates, self and customers is
Called 360 Degree Appraisal. Here, the performance of the employee or manager is evaluated by six
parties, including himself. So, he gets a feedback of his performance from everyone around him. This
method is very reliable because evaluation is done by many different parties. These parties are in the best
position to evaluate the employee or manager because they are continuously interacting and working
with him. This method is mostly used to evaluate the performance of the employees. However, it is also
used
to evaluate other qualities such as talents, behaviour, values, ethical standards, tempers, loyalty, etc
• 360 degree appraisal was first developed by General Electric (GE), USA in 1992. Today it is used by all major
organizations.
• In India, it is used
• by Crompton Greaves
Wipro, Infosys, Reliance
Industries, etc
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360 Degree Appraisal
2: Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of units
or pieces produced by an employee. In this system emphasis is more on quantity output rather than quality
output. Under this system the determination of employee cost per unit is not difficult because salaries differ
with output. There is less supervision required under this method and hence the per unit cost of production is
low. This system improves the morale of the employees as the salaries are directly related with their work
efforts. There is greater work-efficiency in this method.
And also There are various others ways of rewarding employees such as:
• 1. Basic pay for standard hours
• 3. Commission
• 7. Payment by results
• 8. Piece rate reward systems relate to paying employees according to their level
of output .
Components of remuneration
• 1 Wages and Salary
• :-Wages refer the hourly rates of pay, salary refers to the monthly rate pay, wages and
salaries are subject to annual increments. They differ temp. To emp. Depend upon the
nature of job , seniority and merits
• 2 : Incentves :-
• also called ‘payment by result’- paid in addition to wages and salaries. depend upon
productivity, sale profit- there are
• A. individual incentives scheme
•B. group incentives scheme
Components of remuneration
• 3: Fringe benefits
• :- These include such employee benefits as
provident fund, medical care, hospitalization,
accident relief, health insurance, canteen
uniform and like
• 4: Perquisites :
• - These are allowed to executives and include
company car, club membership, paid holidays,
furnished house and like
WHAT IS VARIABLE PAY?
External Internal
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1. Identifying Training Needs
Training need is a difference between standard performance and
actual performance.Hence, it tries to bridge the gap between
standard performance and actual performance. The gap clearly
underlines the need for training of employees. Hence, under this
phase, the gap is identified in order to assess the training needs.
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3. Select Appropriate Methods
Training methods are desired means of ataining training objectives. After the
determination of training needs and specification of objectives, an appropriate
training method is to be identified and selected to achieve the stated objectives.
There are number of training methods available but their suitability is judged as
per the need of organizational training needs.
4. Implement Programs
After the selection of an appropriate method, the actual functioning takes place.
Under this step, the prepared plans and programs are implemented to get the
desired output. Under it, employees are trained to develop for beter
performance of organizational activities.
5. Evaluate Program
It consists of an evaluation of various aspects of training in order to know whether
the training program was effective. In other words, it refers to the training utility
in terms of effect of training on employes' performance.
6. Feedback
Finally, a feedback mechanism is created in order to identify the weak areas in the
training program and improve the same in future. For this purpose, information
relating to class room, food, lodging etc. are obtained from participants. The
obtained information, then, tabulated, evaluated, and analyzed in order to mark
weak areas of training programs and foNIrAZfSuAtHuILre improvements.
Training Methods
• A large variety of methods of training are used in
business. Even within one organization different
methods are used for training different people. All
the methods are divided into two classifications
for:
A. On-the-job Training Methods: B. Off-the-Job Training
1. Coaching Methods:
2. Mentoring 1. Lectures and
3. Job Rotation Conferences
4. Job Instruction Technology 2. Vestibule Training
5. Apprenticeship 3. Simulation Exercises
6. Understudy 4. Sensitivity Training
5. Transactional Training
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A. On-the-job training Methods:
Engaged--"Engaged" employees
are builders.
Not Engaged--Not-engaged
employees tend to concentrate on
tasks rather than the goals
Actively Disengaged--The
"actively disengaged" employees
are the "cave dwellers.
Measurement of Employee
Engagement
Step I: Listen.
Step II: Measure current level of employee
engagement.
Step III: - Identify the problem areas.
Step IV: Taking action to improve employee
engagement by acting upon the problem areas.
Model of Employee Engagement
• Say :Speak positively about the organization
• Stay : Desire to be a member of the
organization
• Strive : Go beyond what is minimally required
Engagement activites
• “This is about how we create the conditions in which employees
offer more of their capability and potential.” –David Macleod
Subject: HRM
Email: maazahmadmalik@yahoo.com