Human Resource Management

OR
Staffing
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PEOPLE AS RESOURCE: After an organization's structural
design is in place, it needs people with the right skills,
knowledge, and abilities to fill in that structure. People are an
organization's most important resource, because people
either create or undermine an organization's reputation for
quality in both products and service.
RESPONSIVNESS TO CHANGE: To remain competitive, and
carry organization through change, to ensure its future, in
order to remain competitive.

Because of the importance of hiring and maintaining a
committed and competent staff, effective human resource
management is crucial to the success of all organizations.
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Human resource management (HRM), or
staffing, is the management function devoted
to acquiring, training, appraising, and
compensating employees.
In effect, all managers are human resource
managers, although human resource
specialists may perform some of these
activities in large organizations.
HRM practices-mould workforce into a
motivated and committed team-manage
change and achieve organizational objectives

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Identifying workforce requirements
Taking inventory of available people and Forecasting
Recruiting
Selecting
Orienting and Placing
Promoting
Appraising
Career Planning
Compensating
Training/Development
Of current/new employees to achieve organizational
objectives effectively and efficiently. It is the
responsibility of every manager, and not only of the
HR Dept.
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1.All Managers are human resource managers.
2.Employees are much more important assets
than buildings or equipment; good employees
give a company the competitive edge. Success of
other Managerial functions contingent upon good
human resources
3.Staffing is a continuous activity- This is
because staffing function continues throughout
the life of an organization due to the transfers
and promotions that take place.


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4.Efficient management of personnel- Human
resources can be efficiently managed by a system
or proper procedure, that is, recruitment,
selection, placement, training and development,
providing remuneration, etc.
5. Staffing helps in placing right men at the right
job. It can be done effectively through proper
recruitment procedures and then finally selecting
the most suitable candidate as per the job
requirements. It must match the needs of the
organization with the needs of the employee.
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Strategy determines structure, which in turn
determines number and type of managers
required-compared to available inventory-
internal/external sources-recruitment/selection-
placement-promotion-separation,alongwith
appraisal, career planning, training and
development
Staffing affects Leading and Controlling
Staffing-open system approach, involving
internal factors(policies,org. climate, air rewards)
and external factors(trained,educated,skilled
workforce to meet demands made by high
technology)

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Factors affecting number and kinds of
managers:size,complexity,expansion plans, TO rate,
span of control/delegation parameters
Management Inventory Chart-Ready for promotion
immediately/after one year/in the long
run/satisfactory but not promotable/unsuitable to
continue in present post
Demand/Supply-Plans, available pool, along-with
intl./ext forces, international/sectoral imbalances.
Recruitment-Selection-Placement-Training-
Promotion along-with Appraisal-Career Planning-
Training and Development are aspects of Systems
Approach to Staffing.
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1. Analyzing the current manpower inventory
2. Making future manpower forecasts-Techniques
commonly employed by the organizations are:
Expert Forecasts: This includes informal decisions, formal
expert surveys and Delphi technique.
Trend Analysis: Manpower needs can be projected through
extrapolation (projecting past trends), indexation (using
base year as basis), and statistical analysis
Work Load Analysis: It is dependent upon the nature of
work load in a department, in a branch or in a division.
Work Force Analysis: Whenever production and time period
has to be analyzed, due allowances have to be made for
getting net manpower requirements.
Mathematical models- computer aided, like budget and
planning analysis, regression, new venture analysis.
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3. 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
4. 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.

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1. Key to managerial functions- The four
managerial functions, i.e., planning, organizing,
directing and controlling are based upon the
manpower. Human resources help in the
implementation of all these managerial activities.
Therefore, staffing becomes a key to all
managerial functions.
2. Efficient utilization- Efficient management of
personnel becomes an important function in the
industrialized world of today. Setting of large
scale enterprises require management of large
scale manpower. It can be effectively done
through staffing function
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3. Motivation- Staffing function not only includes
putting right men on right job, but it also
comprises of motivational programmes, i.e.,
incentive plans to be framed for further
participation and employment of employees in a
concern. Therefore, all types of incentive plans
becomes an integral part of staffing function.
4. Better HR- Stabilization through strong HR -
through effective control, clear communication,
effective supervision and leadership. Staffing
function also looks after training and
development of the work force which leads to
co-operation and better human relations.
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5. Higher productivity-when resources are utilized
optimally-minimum wastage of time, money, efforts and
energy through staffing and related activities (
Performance appraisal, training and development,
remuneration)
6. Shortages and surpluses can be identified so that quick
action can be taken wherever required.
7.Recruitment and Selection programmes are based on
manpower planning.
8.Reduces labour cost-excess staff can be identified and
overstaffing can be avoided.
9.Promotion of Talent Development through appropriately
designed training programmes
10.Promotes growth,diversification,and stability of
business.


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1. Under Utilization of Manpower
2. Degree of Absenteeism
3. Lack of Education and Skilled Labour
4.Assessing Level of Satisfaction/Dissatisfaction-
Exit Interviews, the rate of turnover and rate of
absenteeism are source of vital information
5.Extent of Overtime-Amount of OT paid may be
due to real shortage of men, ineffective
management or improper utilization of
manpower. Careful study of overtime statistics is
a must. Few Organizations maintain sufficient
records and information on manpower and have
appropriate retrieval systems.
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HIGH SUPPLY

LOW SUPPLY

HIGH DEMAND

SELECTION
PLACEMENT
PROMOTION

INTERNAL TRG/DEV
COMPENSATION
EXTL. RECRUITMENT


LOW DEMAND

CHANGE IN PLANS
OUTSOURCING
LAYOFFS
DOWNSIZING
VRS SCHEMES

TRAINING AND
DEVELOPMENT,BASED
ON ASSUMED FUTURE
TRENDS
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External factors: education level, social
attitudes,rules&regulations,state of economy,
demand/supply of managers
Internal factors: organizational
goals,structure,policies,internal dynamics of
demand/supply
Responsibility for staffing vests with all
managers
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Selection-choosing among most suitable
candidates for current/future position
Systems Approach-Requirement Plan based
on firms goals/objectives-translated into
position requirement/job design-matched
with skill sets of available candidates-
selection-placement-orientation-
performance-evaluation-rewards or
termination/transfer-organizational
development programs
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Identifying Job Requirement-job description
based on job analysis
Appropriate scope of Job
Matching job design with managerial skills
Job design-appropriate job structure-individual
vs. group tasks-workstations-job enrichment
through direct relationship with clients-
feedback-vertical loading i.e. increasing
individual's responsibility for planning/doing and
controlling job. For team jobs-
autonomy,rotation,training,group rewards.

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Firms requirements, individual
differences,technology,costs associated with
re-structuring jobs,org. structure and climate
Skills and personal characteristics in
individuals-desire to manage,communication
skills,empathy,honesty and integrity,past
record as manager
Matching qualifications with job
requirements-internal/external sources
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Recruitment-attracting appropriate
candidates to fill identified positions in
organizational structure
Selection-choosing among available
candidates for current/future opening-fitting
person to job
Placement-S&W of individual are evaluated
and a suitable position is found or designed
Promotion and Peter Principle
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Selection Process-validity and reliability of data-
Application(ext candidate)formal Screening
interview-formal interview-validation of
information-medical tests-selection/rejection
Interview process-trained interviewers, right
questions in structured/unstructured manner,
multiple interviews with different sets of
interviewers.
References, Recommendation letters
Tests-IQ,Aptitude/Proficiency, Personality tests
Assessment Centres-technique for selection and
promotion-psychological tests, management
games,presentations,case studies
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Orientation-introduction to organization
functions, tasks and people
Socialization-acquisition of work skills and
abilities, adoption of appropriate role
behaviour,adjustment to norms/vales of
organization(internalization)
Interviews-Structured /non structured, multiple
interviews with different panelists
Tests-
Intelligence/Proficiency/Vocational/Personality
Assessment Centers to assess how managers will
act in typical managerial situations
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Choosing Appraisal Criteria:

1. Performance in achieving GOALS-role of luck
and /factors beyond managers control
2. Performance as MANAGERS-success in
managerial functions

Appraising against Verifiable Objectives
Appraisal is not the sole objective of MBO.
In Systems approach towards MBO, appraisal
is merely the last step.
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Questions to be considered in GOAL SETTING:
1.Were the goals adequate?
2.Were goals stretched or reasonably attainable?
3.Any facilitating/hindering factors?
4.Were the goals obsolete in changed scenario?
Different views on Appraisals:
Subjective vs.. Objective Evaluation
i.e. should one focus on limited verifiable criteria OR
also on valid reasons for deviations?
Judging V.S. Self-Appraisal
MBO emphasis on self-control and self-
direction.Inaddition to comprehensive appraisal,
periodic and constant monitoring can uncover
deviations

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Assessing Past Performance vs.. Future Development
Focus of appraisal should be to focus on strengths, preparing action plans to
overcome short-comings, and provide insights to develop strategies for the future.
Types of reviews:
1.Comprehensive 2.Periodic 3.Continuous
Strength of appraisal against verifiable objectives-promotes objectivity and
reduces element of subjectivity. Carried out in positive atmosphere.
Weakness of appraisal against verifiable objectives-
Part played by Luck/Unforeseen positive or negative factors, Managers may
neglect individual development while focusing on immediate goals rather than
long-term goals, Reduced focus on achievement as MANAGERS
Dealing with critical functions of management, and rating through series of
questions on a scale ranging from 0 inadequate to 5 superior
To further reduce subjectivity, comprehensive annual appraisal giving specific
examples to support ratings, review of ratings at one higher level, and
informing appraisees that their own appraisal would depend on how thay
factored in performances of their own subordinates .

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Advantages:
Management concepts/techniques are
disseminated and communication improves,
focus as tool for management development
by highlighting basic areas of concern,
overcoming weaknesses, and also balances
managerial functions vis a vis goal
achievement.
Disadvantages: No focus on core skills of
manager e.g. technical,marketing,financial
etc,subjectivity element.
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Team Evaluation Approach:
Selection of job related criteria-development of
examples of observable behavior-selection of
multiple raters from peers/associates/immediate
supervisor-preparation and completion of rating
forms-integration of results-analysis and report
This approach is used for promotions and personal
development programmers also. Multiple raters can
reduce subjectivity by correcting raters bias
Performance Review Software: Web based
electronically completed evaluation forms by multiple
raters and reviews by other managers,with inputs
from appraisee himself. Timely submission ensured.
Can be used for identifying training needs,MD
programmes,promotability of employees
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Rewards of Managing:
Managers have motives,needs,desires which vary according to
age,education,economic situation ,maturity
Most managers look for opportunities,power,income,challenging
work, career development, depth/breadth of managerial experience.
Compensation includes perks/fringe benefits, variable bonuses etc
Stress of Managing: Hans Selye-Rate of Wear and Tear caused
by Life.Stress places psychological and physical demands on
individuals.
Can be due to physical aspects like workload,tension,iregular work
hours/eating habits/sleep and rest or psychological issues like
boring /tedious job, lack of autonomy,unrealitic objectives, dual
career marriage etc-may lead to drug/alcohol
abuse,accidents,absenteeism,labout turnover etc
Can be overcome through time management, healthy food
habits,meditation,exercise,career planning etc
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Performance Appraisal and analysis of S&W of individual is
the starting point of Career strategy
1.Preparation of Personal Profile
2.Development of Long term Personal & Professional
Goals-resistance to career plan as it involve decision
making!, making commitments in uncertain environment,
fear of failure and blow to personal ego
Solution: If setting Performance Goals is part of Appraisal
Process, identifying career goals becomes easier, goals
setting is a continuous process and can be reviewed in
changing circumstances, commitment time frame
3. Analysis of Environment for Threats/Opportunities
4.Analysing personal Strengths/Weaknesses
5.Development of Strategic Career Alternatives
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6. Consistency Testing and Strategic Choices-
rational and systematic analysis of trade-offs
required. personal choice, ambition and personal
values need to be factored in
7.Development of Short-Range Career Objectives
&Action Plans
8.Development of Contingency Plans
9.Implementation-personal growth be
considered while designing training
&development programmes
10.Monitoring progress
Strategy for Dual-career couples-working spouse
and requirements regarding leave,re-location etc
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Manager Development-long term, future
oriented programmes and progress made in
learning to manage
Managerial Training-Programmes facilitating
learning process,short term activity to help
managers manage better
Organizational Development-systematic,
integrated and planned approach to
improving the effectiveness of groups of
people and entire organization or major
units.
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3 Needs should be considered before designing
training & development programmes-
A-Needs of organization i.e. objectives,
availability of managers and TO rate
B-Needs of job itself-job description and
performance standards
C-Data about individual training needs-
performance appraisals,interviews,surveys and
career plans
Steps in Manager Dev Process-Present job/next
job in career ladder/long term needs of
organization
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On the Job Training
Planned Progression e.g. Supervisor-Works Manager-
Production Manager. Downside?-Focus may shift on next
job from current job
Job Rotation-flip side-short time may not be enough, no
line authority, but can assist only, suitable vacancies may
not be available.
Creation of Assistant to positions.
Temporary Promotions-when incumbent may be ill, away
temporarily, or position is vacant.
Committee membership-submit reports/proposals,
demonstrate analytical/conceptual skills
Coaching-Mentoring "in atmosphere of trust &
understanding, proper delegation to develop strengths
and potential of candidates
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Conference Programmes-Internal/External. May cover broad
topics or specific managerial techniques/challenges
Management Development Programmes-
Courses/Workshops/Conferences/Full fledged degree or
diplomas. Knowledge about latest developments in
theory,exchaning notes with practicing managers from different
backgrounds
In-house Universities-GEs Center for Learning, McDonalds
University at Chicago, SAP & BASF have supplemented
apprenticeship training with programmers at Univ for Applied
Sciences at Ludwigshafen, Germany.
Self-learning through Reading, TV/Video, On-line programmes
thru Tests, Distance learning, Business Simulations thru ABSEL,E-
Training modules
Special Programmes for physically challenged,
educationally/socially disadvantaged ,programmes emphasizing
ethics and /or corporate culture
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From External /Internal sources like:
Use of computers, concept of Adult-
Learning,Knowlegge workers rather than
merely skilled workers, increasing focus on
Services, Focus on Globalization
Kurt Levin's Field Force Theory-Driving and
Restraining forces for Change maintain
Equilibrium
Change process involves-
unfreezing/changing/refreezing(stabilizing)
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Why??....Fear of unknown, possible adverse impact on
career path,benefits,power.Also inertia, wrong perception
through miscommunication/lack of it
Organizational Conflict-may be approached in a positive
way as opportunity to clarify issues
Sources of Conflict-Interdependence of jobs, incompatible
goals, competition for resources/opportunities, line vs.
staff managers, production vs. marketing perspective,
working style of managers
Managing Conflict-Thru focus on inter-relationships and
/or Structural changes by emphasizing areas of
agreement/common goals,compromising,behavioural
modification,etc OR rearranging task/work locations,
modifying and integrating objectives of divergent
views,re-location
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It is a Systematic, Integrated and Planned approach to improving
organizational effectiveness through focus on problem solving
(problems due to excess decentralization, poor communication,
lack of co-operation)
Typical OD approaches may include Survey feedbacks, team
building, job enrichment, changing job design
OD PROCESS-Problem Recognition(low morale,complaints,rising
costs)-Organzational Diagnosis( Consultant thru
interviews/qnnaires/observations-analysis and feedback-
Findings presented wrt org goals,inter-dept relations-Ranking of
problems in order of importance-Change Strategy formulated-
Interventions in the form of changes in structure, team for
implementing cost reduction programmes, modified customer
handling process-Measuring and evaluating progress
periodically.
OD is a continuous process-planned, systematic and focused on
change.
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Peter Senge:The Fifth Discipline- where
people continually expand their capacity to
create the results they truly desire, where new
and expansive patterns of thinking are
nurtured, where collective aspiration is set
free, and where people are continually
learning how to learn together
The 5 component technologies are:
Systems thinking, Personal mastery, Mental
models, Shared vision, and Team learning.

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A learning organization is an organization skilled
at creating, acquiring, and transferring
knowledge, and at modifying its behaviour to
reflect new knowledge and insights.
New ideas: essential for learning-Sometimes they
are created de novo, through flashes of insight or
creativity; at other times they arrive from outside
the organization or are communicated by
knowledgeable insiders.
New ideas must be translated into action for
Learning to be effective thru proper structures
and practices

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Learning organizations are skilled at five main
activities:
Systematic problem solving,
Experimentation with new approaches,
Learning from their own experience and past
history,
Learning from the experiences and best
practices of others, and
Transferring knowledge quickly and
efficiently throughout the organization.
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Organizational learning can usually be traced through
three overlapping stages:
1.Cognitive- Members of the organization are
exposed to new ideas, expand their knowledge, and
begin to think differently.
2.Behavioural- Employees begin to internalize new
insights and alter their behaviour.
3.Performance improvement- with changes in
behaviour leading to measurable improvements in
results: superior quality, better delivery, increased
market share, or other tangible gains.
Because cognitive and behavioural changes typically
precede improvements in performance, a complete
learning audit must include all three.


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