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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
to the business goals and objectives;
- To find ways for human resources to "add
value" to a business;
- To help a business gain the commitment of
employees to its values, goals and objectives
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Nature of HRM
Broader function : 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.
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Nature of HRM
Development oriented: Development of employees is
an essential function of human resource management in
order to get maximum satisfaction from their work so
that they give their best to the organization.
Integrating 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 function
HRM can be applied in business as well as other
organizations organisations such as schools, colleges,
hospital, religious organisations, etc.
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As a Process : HRM is a process of four
functions & FEATURES
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.
Motivation of human resources : This function includes
giving recognition and rewards to the staff. It also includes
Performance Appraisal and handling the problems of staff
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Scope of the HRM
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ROLE OF HRM
The Human Resource Department deals with management
of people within the organisation. There are a number of
responsibilities that come with this title.
First of all, the Department is responsible for hiring
members of staff; this will involve attracting employees,
keeping them in their positions and ensuring that
they perform to expectation.
Besides, the Human Resource Department also clarifies and
sets day to day goals for the organisation.
It is responsible for organisation of people in the entire
Company and plans for future ventures and objectives
involving people in the Company.
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roles:
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The Human
Resources Department also covers five
key roles.
Executive role in this role the HR department are viewed as the
specialists in the areas that encompass Human Resources or people
management.
Audit role in this capacity the HR department will check other
departments and the organisation as a whole to ensure all HR
policies such as Health & Safety, Training, Staff Appraisal etc are
being carried out in accordance with the companys HR policy.
Facilitator role in this role, the HR department help or facilitate
other departments to achieve the goals or standards as laid out in
the HR policies of the organisation. This will involve training being
delivered for issues that arise in the areas relating to people
management.
Consultancy role the HR department will advise managers on how
to tackle specific managing people issues professionally.
Service role in this capacity the HR department is an information
provider to raise awareness and inform departments and functional
areas on changes in policy
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Function of HRM
The main function of human resource management is
classified into two types: (a) Managerial Function; (b)
Operative Function.
Operative Function
Procurement It involves attracting and employing individuals
with suitable knowledge, skills,
experience, and aptitude necessary to perform various jobs.
Development It aims to train and develop employees to
improve and update their knowledge and skills in order to help
them perform better.
Compensation It involves rewarding employees monetarily
and through fringe benefits for their contributions to the
organization.
Integration It deals with employees as a social group; it
contributes to the organization and enhances group
interaction and communication.
Maintenance It deals with maintaining employee safety and
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creating a sense of security among the employees.
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Recruitment and selection
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Employees should therefore be
carefully selected, managed and
retained, just like any other resource
.
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Sources Of Recruitment
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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.
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Difference Between Recruitment And
Selection
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 organisation 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 organisation, 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.
5. There is no contract of recruitment established in recruitment WHEREAS selection results
in a contract of service between the employer and the selected employee.
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objectives of Recruitment and
selection
Recruitment and selection objectives include a
variety of components related to finding,
hiring and retaining qualified employees. Clear
definitions of the job qualifications allow
easier identification of potential candidates.
Recruitment consists of attracting capable
individuals using methods such as outsourcing
and the internet. Selection objectives consist
of evaluation techniques such as interviews,
background checks and competence tests.
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the Employee selection Process
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
.
Application 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
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the Employee selection 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 examination- Medical tests are conducted to
ensure physical fitness of the potential employee. It
will decrease chances of employee absenteeism.
Appointment Letter- A reference check is made about
the candidate selected and then finally he is appointed
by giving a formal appointment letter.
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Manpower planning
Manpower planning is the process of reviewing an
organizations 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
thatrequires careful analysis and consideration to
achieve the desired outcome.
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Importance of Manpower Planning
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Induction
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Performance appraisal
"Performance appraisal is the systematic description of
an employee's job relevant strengths and weaknesses.
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Terms in Performance Appraisal
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Objectives Of Performance appraisal:
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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
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Remuneration
Reward for employment in
the form of pay, salary, or wage,
including allowances, benefits (such
as company car, medical plan, pension plan),
bonuses, cash incentives, and monetary value of
the noncash incentives.
Remuneration is the compensation that one
receives in exchange for the work or services
performed
Remuneration occupies an important place in the
life of an employee
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Remuneration program objectives
for the organisation
Attract and keep the desired quality and mix of employees
Ensue equitable treatment
Motivate employees to improve their performance
continually and to strive to achieve the organisations
strategic business objectives
Reinforce the organisations key values and desired
organizational culture
Drive and reinforce desired employee behaviour
Ensure remuneration is maintained at the desired
competitive level
Control remuneration costs
Ensure optimum value for each remuneration dollar spent
Comply with company requirements
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Employee Remuneration Method
1: Time Rate Method
Under time rate system, remuneration is directly linked
with the time spent or devoted by an employee on the
job. The employees are paid a fixed pre-decided amount
hourly, daily, weekly or monthly irrespective of their
output. It is a very simple method of remuneration. It
leads to minimum wastage of resources and lesser
chances of accidents. Time Rate method leads to quality
output and this method is very beneficial to new
employees as they can learn their work without any
reduction in their salaries. This method encourages
employees unity as employees of a particular
group/cadre get equal salaries.
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Employee Remuneration Method
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.
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And also There are various others ways
of rewarding employees such as:
1. Basic pay for standard hours
2. Additional hours rewards.
3. Commission
4. Bonuses are another form of incentive to meet
particular targets.
5. Performance related pay
6. Profits related pay
7. Payment by results
8. Piece rate reward systems relate to paying
employees according to their level of output.
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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 : Incentives :-
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
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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
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WHAT IS VARIABLE PAY?
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Remuneration Influencing Factors
Remuneration
External Internal
Cost of Living
Job Evaluation and
Labor Unions Performance Appraisal
Government Legislations
The Employee
Society
Economy
www.a2zmba.com
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Challenges of remuneration
Skill Based Pay
Pay Reviews
Pay Secrecy
Comparable worth
International Pay
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4th unit
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training and development
Training is the process of planned programs and
procedures undertaken for the improvement of
employee's performance in terms of his attitude,
skills, knowledge and behavior. This training
programs can significantly improve the overall
performance of organization.
Main Aim
Training Aims to improve employees current work
skills and behavior
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Training
Training is normally viewed as a short process.
It is applied to technical staff, lower, middle,
senior level management. When applied to
lower and middle management staff it is
called as training and for senior level it is
called managerial development
program/executive development
program/development program.
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The Objectives of training and
development
The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that,
there are other objectives as follow :
Individual Objectives help employees in achieving their personal goals, which in
turn, enhances the individual contribution to an organization.
Organizational Objectives assist the organization with its primary objective by
bringing individual effectiveness.
Functional Objectives maintain the departments contribution at a level suitable to
the organizations needs.
Societal Objectives ensure that an organization is ethically and socially responsible
to the needs and challenges of the society.
TO INCREASE PRODUCTIVITY
An instructor can help employees increase their level of performance on their
assignment. Increase in human performance leads to increase in the operational
productivity and also the increase in the profit of the company.
TO IMPROVE QUALITY
Better-trained workers are less likely to make operational mistakes. It can be in
relationship to the company or in reference to the intangible organizational
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difference between training and development
Training is a process of learning a sequence of
programmed behavior. It improves the employee's
performance on the current job and prepares
them for an intended job.
Development not only improves job performance
but also brings about the growth of the
personality. Individuals not only mature regarding
their potential capacities but also become better
individuals.
Training: Development:
1.It's a short term process. 1.It is a long term educational
2.Refers to instruction in process.
technical and mechanical 2.Refers to philosophical and
problems theoretical educational concepts
3.Targeted in most cases for 3.Managerial personnel
non-managerial personnel 4.General knowledge purpose
4.Specific job related purpose 5 Training methods are limited
5 Development is a never 6 Training is one of the tools of
ending process development.
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PURPOSE OF TRAINING and DEVELOPMENT
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training process
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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 attaining 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 better
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 for NIAZfuture
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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:
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1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the
weak areas and tries to focus on them. It also offers the benefit of
transferring theory learning to practice. The biggest problem is that
it perpetrates the existing practices and styles. In India most of the
scooter mechanics are trained only through this method.
2. Mentoring:
The focus in this training is on the development of attitude. It is
used for managerial employees. Mentoring is always done by a
senior inside person. It is also one-to- one interaction, like coaching.
3. Job Rotation:
It is the process of training employees by rotating them through a
series of related jobs. Rotation not only makes a person well
acquainted with different jobs, but it also alleviates boredom and
allows to develop rapport with a number of people. Rotation must
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4. Job Instructional Technique (JIT):
It is a Step by step (structured) on the job training method in which
a suitable trainer (a) prepares a trainee with an overview of the
job, its purpose, and the results desired, (b) demonstrates the task
or the skill to the trainee, (c) allows the trainee to show the
demonstration on his or her own, and (d) follows up to provide
feedback and help. The trainees are presented the learning
material in written or by learning machines through a series called
frames. This method is a valuable tool for all educators (teachers
and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)
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5. Apprenticeship:
Apprenticeship is a system of training a new generation of
practitioners of a skill. This method of training is in vogue in
those trades, crafts and technical fields in which a long period is
required for gaining proficiency. The trainees serve as
apprentices to experts for long periods. They have to work in
direct association with and also under the direct supervision of
their masters.
6. Understudy:
In this method, a superior gives training to a subordinate as his
understudy like an assistant to a manager or director (in a film).
The subordinate learns through experience and observation by
participating in handling day to day problems. Basic purpose is to
prepare subordinate for assuming the full responsibilities and
duties.
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B. Off-the-job Training Methods:
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3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation.
There are four basic simulation techniques used for imparting training:
management games, case study, role playing, and in-basket training.
4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training
is about making people understand about themselves and others reasonably,
which is done by developing in them social sensitivity and behavioral flexibility.
It is ability of an individual to sense what others feel and think from their own
point of view.
5. Transactional Analysis:
It provides trainees with a realistic and useful method for analyzing and
understanding the behavior of others. In every social interaction, there is a
motivation provided by one person and a reaction to that motivation given by
another person.
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EMPLOYEE ENGAGEMENT
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EMPLOYEE ENGAGEMENT
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What is Employee Engagement ?
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Components of engagement
Rational Engagement: the involvement,
understanding and motivation an employee
has in his/her job.
Emotional Engagement: the attitudinal
attachment an employee has to his/her
company.
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Categories of Employee Engagement
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.
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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.
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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
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Engagement activities
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Engagement activities
3:Show them the money
Give your team a quick presentation of the financial state of your
company, every quarter or at the end of the year.
4: Encourage and provide learning opportunities
Create your own Academy, where employees can access the
knowledge and development opportunities that they need.
5: Create your own internal magazine
Create your internal employee-focused magazine with fun columns,
news, featured stories and opportunities. Who wouldnt like to be
featured on the cover as Employee of the Month?
6: I am my own hero
Encourage individuals to design and own their career paths, instead
of relying on the company or on their manager.
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Engagement activities
7:Celebrate people
Birthdays, promotions, retirements, newcomers welcoming, there are plenty of important
moments where people can be put at the front of the company. Show them they matter
8: Have team photos
Have photos of your team on a wall, or frame
them around the office.
9: Raise salaries
10: Celebrate achievements
11: Show respect
12:Make sure that people have all the resources they need
13: Build long-term engagement
14: Make sure that people have all the resources they need
15. Empower your employees
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