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Deepak Sharma
Rana Shubhendu Pratap Singh
Ravi Ranjan
Sake Ramesh
Supriya Soni
Suresh Rajan
Tomar Singh Chauhan
Vag Singh
Vikas Kumar
Vikash Kumar Singh
Definition of HRM
1. Managerial functions
2. Operative functions
3. Advisory functions
1. Managerial functions
2. Operative functions
The operative functions are those tasks or duties which are
specifically entrusted to the HR.
a) Employment
Employment of proper kind and number of persons necessary to
achieve the objectives of the organization.
b) Development
Training and development of personnel is a follow up of the
employment function.
c) Compensation
This function is concerned with the determination of adequate
and equitable remuneration of the employees in the organization of
their contribution to the organizational goals
d) Maintenance (Working Conditions and Welfare)
Provide good working conditions so that employees may like
their work and workplace and maintain their efficiency.
e) Motivation
Design a system of financial and non-financial rewards to
motivate the employees.
f) Industrial Relations
The human resource manager can do a great deal in
maintaining industrial peace in the organization as he is deeply
associated with various committees on discipline, labor welfare,
safety, grievance, etc.
g) Seperation
The personnel manager has to ensure the release of retirement
benefits to the retiring personnel in time.
3. Advisory functions
Human resource manager is an expert in his area and so can
give advise on matters relating to human resources of the
organization.
The aim of recruitment is to get the best person suited to the job
based on objective criteria for a particular job
Types of Recruitment
Based on the source recruitment is divided into categories:
1. Internal Recruitment: This involves recruiting candidates
within an organization to fill the vacancy.
2. External Recruitment: This involves recruiting a candidate
through references, networks, job portals or they may approach
recruitment agencies.
Internal Recruitment
Internal sources of recruitment are readily available to an
organization. Internal sources are primarily three -
1. Transfers: It implies shifting of an employee from one job to
another without any shift in change of responsibilities.
2. Promotion: It refers to shifting of an employee to a higher
position carrying higher status, responsibilities and pay.
3. Re-employment of ex-employees: It is one of the internal
sources of recruitment in which employees can be invited and
appointed to fill vacancies in the concern. There are situations when
ex-employees provide unsolicited applications also.
Advantages of Internal Recruitment
1. No cost and less time consuming
2. No need of training
3. Builds strong relationship with employees.
4. Motivates others of hard work to get high positions.
5. Easy to pick best talents within an organization very quickly
6. Long stay with the company when promoted to high position.
Disadvantages of Internal
Recruitment
1. The positions of the persons who is promoted will be vacant.
2. There may be partiality in promoting employees.
3. No new opportunities for external candidates.
4. Dissatisfied employees may quit if his co-worker is promoted to
high positions.
5. All vacancies cannot be filled from within organization.
External Recruitment
External sources are external to a concern. But it involves lot of time
and money. The external sources of recruitment includes
1. Educational Institutions:
Various companies visit many colleges which have made
arrangements for campus interviews and recruit candidates.
2. Recruiting Agencies:
There are certain professional organizations which look towards
recruitment and employment of people.
3. Employment exchanges:
These exchanges provide information about job vacancies to
jobseekers. These can be private and also government exchanges.
4. Labor Contractors:
These are the specialist people who supply manpower to the
Factory or Manufacturing plants.
5. Recommendations:
Employees recruited through recommendations by trade unions.
6. Gate recruitment:
In this method a notice on the noticeboard of the company
specifying job details of job vacancies can be put. This method is
also called direct recruitment.
7. Advertisement:
It is an external source which has got an important place in
recruitment procedure. Medium used is Newspapers and
Television.
Advantages of External
Recruitment
1. Create new opportunities for external employees.
2. Best candidates can be placed for the roles
3. Cost of employees can be minimized.
4. Increase in the selection ratio.
5. There are less chances of partiality.
6. Uniqueness in employees worked for different companies can
take the current company to extra mile.
7. Able to recruit the skills it needs.
Disadvantages Of External
Recruitment
1. Time consuming and expensive.
2. Employees unfamiliar with organization and its orientation.
3. If higher level jobs are filled from external sources,
motivation and loyalty of existing staff effected.
4. Sourcing quality candidates becomes difficult for the
companies.
SELECTION PROCEDURE
Selection:
The Process of making a “Hire” or “No Hire” decision
regarding each applicant for a job.
OR
It is the process of choosing qualified individuals who
are available to fill the positions in organization.
Selection Criteria
A C
Cut-Off
Points
B D
Selection Criteria
Diagram description :-
1. Testing
2. Gathering Information
3. Interviewing
1. Testing
Tests measure knowledge, skill, and ability, as well as other
characteristics, such as personality traits.
TESTING TYPES
Work
Cognitive Personality Physical Integrity
Ability Test Ability Test
Drug Test Sample
Test Test Testing
2. Information Gathering
Common methods for gathering information include application
forms and resumes, biographical data, and reference checking.
I. Application Forms and Resumes
Generally ask for information such as address and phone number,
education, work experience, and special training.
II. Biographical Data
Historical events that have shaped a person’s behavior and
identity.
III. Reference Checking
Involves contacting an applicant’s previous employers, teachers, or
friends to learn more about the applicant issues with reference
checking.
3. Interviewing
Structured interview
There is a set of standardized questions based on the job
analysis, not on individual candidates’ resumes.
Different Techniques of Interview:
1. Traditional interview
Takes place in the office and consists of the interviewer and the
candidate, and a series of questions are asked and answered.
2. Telephone interview
A telephone interview is often used to narrow the list of people
receiving a traditional interview.
3. Panel interview
A panel interview occurs when several people are interviewing
one candidate at the same time.
4. Information interview
Informational interviews are usually used when there is no
specific job opening, but the candidate is exploring possibilities in
a given career field.
5. Meal interviews
Many organizations offer to take the candidate to lunch or dinner
for the interview. To gather more information about the person, such
as their manners and treatment of wait staff.
6. Group interview
Two or more candidates interview at the same time.
7. Video interviews
Same as traditional interviews, except that video technology is
used. This can be cost saving if one or more of your candidates are
from out of town. For example, Skype.
8. Nondirective interview (Unstructured interview)
In a nondirective interview, some very general questions that are
planned ahead of time may be asked, but the candidate spends
more time talking than the interviewer. It can give candidates a
good chance to show their abilities.
WAGES, INCENTIVES, BONUS,
AND SALARY
Wages:
A Wage is a monetary compensation (or remuneration,
personnel expenses, labor) paid by an employer to an
employee in exchange for work done.
Wages are an example of expenses that are involved in
running a business.
Incentives:
An incentive is something that motivates an individual to
perform an action.
Incentives can be classified according to different ways in
which they motivates agents to take a particular course of
action.
Salary:
A salary is a form of periodic payment from an employer to an
employee which may be specified in a employment contract.
It’s a fixed amount of money or compensation paid to an
employee by an employer in return for work done. Salary is
determined by comparing market pay rates for performing
similar work in similar industries in the same region.
Bonus:
A bonus is an incentive payment that is given to an employee
beyond one's normal standard wage. It is generally given at
the end of the year and does not become part of base pay.
TYPES OF WAGES
1. Minimum Wages.
2. Capacity of the industry to pay.
3. Prevailing rates of wages in the same or similar occupations in
the same or neighboring localities.
4. Productivity of labor.
5. Level of national income and its distribution.
6. The place of the industry in the economy of the country.
TYPES OF WAGE PAYMENT
PLANS
All wage system must satisfy the basic need of the employee
for food, shelter, clothing and reasonable compensation for their
efforts.
Thus, if the worker finishes the job in 15 hours for standard time
of 20 hours and the hourly rate of wage is Rs. 60 , a worker will
get a total of Rs. 1125 .
c) Emerson's Efficiency Bonus Plan
This plan is the most popular for shaving the gains from
increase in productivity.
It provides for payment of 10% participating bonus for every
10% increase in productivity.
The benefit is extended to all employees except the members of
top management.
Under the plan, workers are not paid the entire amount of
bonus earned by them in any month.
One half of the first 15% of such bonus is set apart for the
creation of a reserve fund.
This fund is used to neutralize the effects of any fluctuations in
labor costs.
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