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Human Resource Management

Asst Prof. Pankaj Tiwari

SEMESTER-II MB-201: HUMAN RESOURCE MANAGEMENT Unit-I (6 sessions) Human Resources Management: Definition, scope, objective and functions of Human Resources Management Human Resources Policy: Definition, importance, characteristics of good HR Policy Human Resources Planning: Definition, importance, barriers of HR Planning, HR Planning Process. Unit-II ( 8 sessions) Job Analysis and Design: Definition, Process of Job Analysis, Job Design, Factors affecting job Design, Process of Job Design. Human Resource Recruitment: Definition, factors governing recruitment, recruitment process. Selection: Definition, Selection Process. Placement: Meaning, Problems in Placement Unit-III (10sessions) Orientation: Meaning, typical Orientation Program, Evaluation of and Problems in Orientation, Promotions and Transfers, Retrenchment and VRS. Training and Development: Inputs in Training and development, Training Process, deriving Instructional Objectives, Design, Implementation and Evaluation of the Training Programme. Performance Appraisal: Meaning, Objectives, Performance Appraisal, Process. Unit-IV (10 sessions) Employee Remuneration: Components of Remuneration, Fringe Benefits, Perquisites, Non Monetary benefits, Remuneration Plans, Devising Remuneration Plans, Concepts of Wages, Minimum Wages, Fare Wages. Incentive payments: Meaning, Types of Incentive system Human Resource Management and Ethics: Importance of HRM ethics, Ethical Issues in HRM Employee Welfare: Meaning, Types of Welfare Activities, welfare facilities by the Government, Welfare Activities by the Trade Unions Unit-V (6 sessions) International HRM: Definition, Cultural Differences and HRM, Economic Factors and IHRM, International Recruitment Policy, International Selection Criteria, International Training and Development.

HRM Meaning and Definition


Human Resource Management is also a function of management, concerned with hiring, motivating and maintaining people in an organisation. It focuses on people in the organisation.

Definition

Human Resource Management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employees to achieve their objectives. - Milkovich and Boudreau

Definition

Human Resource Management is concerned with the people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives. This is true regardless of the type of organisation government, business, education, health, recreation or social action. - David A. Decenzo and Stephen P. Robbins

Definition

Human Resource Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational, and social objectives are accomplished. - Edwin B. Flippo

Scope of HRM
Nature Introduction Prospects Procurement

Industrial Relations

HRM
Remuneration

Maintenance

Motivation

Human Resource Management: Objectives

To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employee's job satisfaction and selfactualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee's capabilities to perform the present job. To equip the employees with precision and clarity in transaction of business. To inculcate the sense of team spirit, team work and inter-team collaboration.

Human Resource Management: Functions

In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees. 5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing manpower management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life.

Human Resource Policies


Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce. These policies, when organized and disseminated in an easily used form, can serve to preempt(prevent) many misunderstandings between employees and employers about their rights and obligations in the business place. It is tempting, as a new small business owner, to focus on the concerns of the business at hand, and put off the task of writing up a human resource policy. All business analysts and employment lawyers will advise a new business owner to get a policy down on paper, even if it is a simple one drafted from a boilerplate model. Having policies written is important so that it is clear to all what the policies are and that they are applied consistently and fairly across the organization. Moreover, when issues concerning employee rights and company policies come before federal and state courts, it is standard practice to assume that the company's human resource policies, whether written or verbal, are a part of an employment contract between the employee and the company. Without clearly written policies, the company is at a disadvantage.

SUBJECTS COVERED BY COMPANY HR POLICIES


Equal Employment Opportunity policies Employee classifications Workdays, paydays, and pay advances Overtime compensation Meal periods and break periods Payroll deductions Vacation policies Holidays Sick days and personal leave (for bereavement, jury duty, voting, etc.) Performance evaluations and salary increases Performance improvement Termination policies

Importance

Human Resource Policies Human resources policies provide the framework by which employees are expected to behave in the workplace. These policies are written statements of the company's standards and objectives and include all areas of employment, including recruitment, compensation, termination, benefits, employee relations and leaves of absence. They contain rules on how employees must perform their jobs and interact with each other. Managers, employees and the HR department all have roles in ensuring that HR policies are effectively implemented.

CHARACTERISTICS OF SOUND HRM POLICY


1. Related to Objectives: Policies must be capable of relating objectives functions, physical factors and company personnel. 2. Easy to Understand: Policies should be stated in define, positive, clear and understandable language. 3. Precise: Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future action. 4. Stable as well as Flexible: Personnel policies should be stable enough assure people that there will not be drastic overnight changes. They should be flexible enough to keep the organization in tune with the times. 5. Based on Facts: Personnel policies should be built on the basis of facts and sound judgment and not in personal feelings or opportunistic decision. 6. Appropriate Number: There should be as many personnel policies as necessary to cover conditions that can be anticipated, but not so many policies as to become confusing or meaningless. 7. Just, Fair and Equitable: Personnel policies should be just, fair and equitable to internal as well as external groups. For example, a policy of recruitment from within may limit opportunities to bright candidates from outside: and a policy of recruitment from outside only would limit promotional avenue to promising internal candidates. To ensure justice, it is necessary to Pursue both the policies scrupulously and apply them carefully. 8. Reasonable: Personnel policies must be reasonable and capable of being accomplished. To gain acceptance and commitment from employees, the policy should be conditioned by the suggestions and reactions of those who are affected by the policy. 9. Review: Periodic review of personnel policies is essential to keep in tune with changing times, and to avoid organizational complacency or managerial stagnation. For instance, if the current thinking is in favor of workers participation in management , the personnel policy should be suitably adjusted to accommodate the latest fad, accepted by many in the organization

Importance of Human Resource Planning

Human Resource Planning is important for any organization in the following ways; Provides quality workforce, Reduces labor costs, Facilitates rise in skills, Effective motivation, Safety of health

Barriers of HRP
1)HR practitioners are perceived as experts in handling personnel matters, but are not experts in managing business. 2) People question the importance or making HR practices future oriented and the role assigned to HR practitioners in formulation of organisational strategies. There are people when needed offer handsome packages of benefits to them to quit when you find them in surplus. When the task is so simple, where is the need for elaborate and time consuming planning for human resources. 3) HR information often is incompatible with other information used in strategy formulation. Strategic planning efforts have long been oriented towards financial forecasting, often to the exclusion of other types of information. Financial forecasting takes precedence over HRP. 4) Conflict may exist between short term and long term HR needs. For example, there arises a conflict between the pressure to get the work done on time and long term needs, such as preparing people for assuming greater responsibilities. Many managers are of the belief that HR needs can be met immediately because skills are available on the market as long as wages and salaries are competitive Therefore, long time plays are not required, short planning are only needed

5) There is conflict between quantitative and qualitative approaches to HRP. Some people view HRP as a number game designed to track the flow of people across the department. 6) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR department function. Successful planning needs a co-ordinated effort on the part of operating managers and HR personnel. 1.14

HRP Process

JOB ANALYSIS

Job

Job may be defined as collection or aggregation of tasks, duties and responsibilities which as a whole, are regarded as a regular assignment to individual employees.

Job Analysis

Job Analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job description and job specification.

Job Analysis Process

Job analysis involves following steps:

Collecting and recording job information


Checking the job information for accuracy

Writing job description based on information


Using the information to determine the skill, abilities and knowledge Updating the information from time to time

Job design

Job design essentially involves integrating job responsibilities or content and certain qualifications that are required to perform the same. It outlines the job responsibilities very clearly and also helps in attracting the right candidates to the right job. Further it also makes the job look interesting and specialised. There are various steps involved in job design that follow a logical sequence, those that were mentioned earlier on. The sequence is as follows: What tasks are required to e done or what tasks is part of the job? How are the tasks performed? What amount are tasks are required to be done? What is the sequence of performing these tasks?

Job Design

More specifically the following areas are fine tuned: Checking the work overload. Checking upon the work under load. Ensuring tasks are not repetitive in nature. Ensuring that employees don not remain isolated. Defining working hours clearly. Defining the work processes clearly.

Factors affecting Job Design


Organizational factors: Characteristics of Tasks (Planning, Execution and Controlling of Task) Work Flow (Process Sequences) Ergonomics (Time & Motion Study) Work Practices (Set of ways of performing tasks) Environmental Factors: Employee Abilities and Availability Social and Cultural Expectations Behavioral Elements: Feedback Autonomy Use of Abilities Variety

The job design process

The first step in the design process is to specify the design principles to be applied in the particular situation. This first step requires those responsible for the design to form a view about the skills, abilities, needs and motivation of job incumbents.

Second Step

In the design process we have now looked at means for deciding the criteria to be adopted in designing jobs and work organization. We have also seen a method for identifying key decisions in the operation of the work system.

Final Step

Finally, a means for comparing alternative job and work organization designs is presented. This is in the form of a checklist which covers the areas of work content, work organization, working conditions, social opportunities and career opportunities

Job Description

A list of jobs duties, responsibilities, reporting relationship, working conditions, and supervisory responsibilities.

Job Specification

A list of jobs human requirements that is, the requisite education, skills, personality and so on.

JOB ANALYSIS
A process of obtaining all pertinent job facts

Job Description Job Title


Location Job summary Duties Machine tools etc Material etc Supervision Working condition Hazards

Job Specification Education


Experience Training Initiative Physical effort Responsibilities Communication skills Emotional characteristics Unusual sensory sight etc.

Use of Job Analysis Information

Job description and Job Specification

Recruiting & Selection

Performance Appraisal Health & Safety

Salary & Wages

Training & Develop Employee Discipline

Career Planning

Shift towards HRD

HRD and HR

HR can be termed as Human Resource Function or HRM Human Resource Management

HRD Stands for Human Resource Development

HRD and HR

HR is all encompassing HR includes HRD and more HR goes far beyond the traditional Personnel function HR is more proactive and change oriented HR needs competencies of a different nature from what the traditional personnel function required

Importance of HRM

Human Resource Management is important to all managers despite their various functions because of the following reasons Hire the right person for the job Low attrition rate Ensure people do their best Time saved in not conducting useless interviews Avoid legal action for any discrimination Safety laws are not ignored Equity towards employee in relation to salary etc. Effective training Avoid unfair labour practices

HUMAN RESOURCE PLANNING

Human Resource Planning


Human Resource Planning is the process of forecasting a firms future demand for, and supply of, the right type of people in the right number.

Definition

Human Resource planning includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future.

Definition

Specifically, human resource planning is the process by which an organisation ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall objectives. Human resource planning translates the organisations objectives and plans into the number of worker needed to meet those objectives. Without a clear cut planning, estimation of an organisations human resource need is reduced to mere guesswork.

David A. Decenzo and Stephen P. Robbins

Importance of HRP

Future personnel needs. Helps in strategic planning Creating high talented personnel Global strategies Foundation of personnel function Increase investments in human resources Resistance to change

Factors affecting HRP

Type and strategy of organisation Organisational growth cycle and planning Environmental uncertainties Time horizons Type and quality of forecasting information Nature of jobs being filled Outsourcing

HR Demand Forecast

Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organisation.

HR Supply Forecast

Supply forecast determines whether the HR department will be able to procure the required number of personnel. Specifically, supply forecast measures the number of people likely to be available from within and outside an organisation.

HR Supply Forecast
The supply analysis covers:

Existing human resources Internal source of supply External source of supply

RECRUITMENT

Recruitment

It is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is pool of applicants from which new employees are selected.

Initiating the Recruitment Process

Prior to initiating a recruitment procedure, the following matters should be considered:


Clarification of the scope and skill sets required to successfully perform the duties of the position Review of the Job Fact Sheet or Position Description to ensure that the skills and abilities required coincide with the current expectations of the position. If they do not, then a position evaluation should be undertaken. Review of the compensation available to the position (i.e. salary and benefit plans, etc.) Analysis of the impact that the hiring will have on the budget

Factors Governing recruitment


External factors Internal factors
Recruitment

Supply and demand Unemployment rate Labour Market Political Social Sons of soil Image

Recruitment policy HRP Size of the firm Cost Growth Expansion

Building Pool of Candidate

INTERNAL

EXTERNAL

SOURCES OF RECRUITMENT
INTERNAL Current Employee References from present employee Databank of former applicants Retired Employee Former employee EXTERNAL Advertising Employment agencies Temporary help Executive recruiters Referrals and walk-ins College recruiting Companys web site Free and fee-paying Website services

Recruiting Yield Pyramid

It is the historical arithmetic relationships between

Recruitment leads and invitees Invitees and interviews Interviews and offers made Offers made and offers accepted

Recruiting Yield Pyramid

New hires
50 100 150 200 1200 Offers made (2:1) Candidates interviewed (3:2) Candidates invited (4:3) Leads generated (6:1)

Internal
versus

External Recruitment
Advantages & Disadvantages

Internal Recruitment
Advantages
1. It is less costly

Disadvantages
1. It perpetuates the old concept of doing things

2. Candidates are already 2. It abets raiding (make a oriented toward organisation person provide something) 3. Organisation have better 3. Candidates current work knowledge about the internal may be affected candidates 4. Enhancement of employee morale and motivation 5. Good performance is rewarded 4. Politics play greater role 5. Morale problem for those not promoted

External Recruitment
Advantages
1. Benefits of new skill, new talent and experiences to organisation 2. Compliance with reservation policy becomes easy 3. Scope of resentment, jealousies and heartburn are avoided

Disadvantages
1. Better morale and motivation associated with internal recruiting is denied to the organisation 2. It is costly

3. Chances of creeping in false positive or false negative error

SELECTION

Selection

Selection is the process differentiating between applicants order to identify those with greater likelihood of success in job.

of in a a

Selection

The selection of a candidate with the right combination of education, work experience, attitude, and creativity will not only increase the quality and stability of the workforce, it will also play a large role in bringing management strategies and planning to fruition.

Factors affecting selection

External environment

Supply and demand of specific skill Unemployment rate Legal and political considerations Companys Image

Factors affecting selection

Internal environment

Companys policy HRP Cost of hiring

Process of selection

Preliminary Interview
R E J C T E D Selection tests

Employment Interview
Reference & background

Selection Decision
Medical Examination Job Offer Employment Contract Evaluation

Basic Testing Concepts

Generally tests are administered to determine the applicants


Ability Aptitude Personality Interest

Basic Testing Concepts

Ability tests
Helps to determine how well one can perform his task

Basic Testing Concepts

Aptitude tests

Helps to determine a persons potential to learn in a given area

Basic Testing Concepts

Personality tests
To measure a prospective employees motivation to function in a particular working environment

Basic Testing Concepts

Interest tests
To measure an individuals activity preferences. (For career change or when there is multiple career option available)

Selection Tests
Tests
Thomas Profiling MBTI
PAPI 16 PF ASUFA

Description
Identifying behavioural requirement for the job Understanding personality type
Behaviour in work place Measuring personality factors Locus of control

Interviews

Formal, in depth conversation conducted to evaluate the applicants acceptability. Adapted to unskilled, skilled, managerial and professional employees. Two-way exchange of information, the interviewers learn about the applicant, and the applicant learns about the organization

Shortcomings of interviews

Absence of reliability Lack of validity Biases

Preparing for the Interview

Abundant research exists that reliability and validity of the selection interview are higher when an interview is structured, planned and standardized in form. This approach fosters a comprehensive investigation of the applicant's background, precludes personal and non-jobrelated questions, and increases impartiality in qualification assessment. Therefore, an interview plan is strongly recommended. Prior to developing the interview plan, it is critical to be clear about the job requirements and stick to them throughout the hiring process. This ensures that you dont fall in love with each candidate and redefine the job to fit.

Types of Interview

Interview may be One to one Interview

Only two participants 1. Interviewer 2. Candidate

Sequential Interview
1 2 3

Involves series of interviews Candidates moves from room to room

Panel Interview

Two or more interviewers Formal

Objectives of Interview

Helps obtain additional information from applicant Facilitates giving general information to applicant Help build image of the organization