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What is the resource? Resource could be defined as any thing used in production- both good and services.

Economists have identified 5 types of resources used in the production function. Those are 1) Labor 2) Capital 3) Land/Natural resource 4) Entrepreneurship

Labor is defined as The time human beings spend producing goods and services Capital could be defined as Something produced that is long lasting and used to produce other goods

Natural resource is the naturally occurring materials that come with it. Land is also a natural resource. The ability and willingness to combine the other resources- labor, capital, and natural resources in to productive enterprise is called as Entrepreneurship Capital could be divided in to 2 basic categories; those are Physical Capital and Human Capital.

Physical Capital is the part of the capital stock consisting of physical goods, such as machinery, equipments, and factories. Human Capital is the skills and training of the labor force. So, according to this we can identify that organizations have two basic inputs. 1) Capital 2) Labor

What is Human Resource? First we should understand "What is the Human Resource?" and the following definition by Prof. Maginson, will helps to understand what is the human resource. "The total knowledge, skills, creative abilities, talents and aptitudes of an organization's work force as well as the values, attitudes and beliefs of the individual involved"

"The Process of analyzing and managing an organizations human resources needs to ensure satisfaction of its strategic objectives -Management Hellriegel/Slocum The policies and practices involved in carrying out the people or human resources aspects of a management position, including recruiting, screening, training and appraising. -Human resource management Gray Dessler

History of HRM Organizations have many operational functions. HRD is one of the functions that is engaging with the tasks of an organization. In early 70 s there was no division called as Human Resource Department or Division. By that time there was only a division called "Personnel" engaged with the labor related in the organization. Personnel Management was introduced by the end of 19th century. At that time, this was focused on the welfare of labors in the organizations. According to the tasks they have done, the officers at Personnel Department was called as "Welfare Officers". The special thing was, the employee welfare tasks were done by women at that time. During the period of 1914-1939, many organizations has showed a quick growth and quick changes in needs and wants of the operations. Therefore the tasks done by women shifted to the men's, because of the complexity of tasks. These officers has called as "Labor managers" at that time. After Second World War, during the period 1945 - 1979, this has grown up and changed to

"Personnel Management", and Personnel Management was focus basically on employee administration and the legislation. At late 70 s the economic of the world changed gradually and organizations started to consider labors work as an important resource. At the decade of 80 the concept of "Human Resource Management" was started and then it has shown growth gradually in decade of 1990. Finally the tasks and operations of personnel management was shifted to the Human Resource Management and it is functioning now in broad way in the organizations than Personnel Management.

Some Differences between Personnel management and Human Resource Management Personnel Management - Usually not practicing good relationships with other employees in the organization - Operating as different function usually - Basically operating by the instructions of Top Management, and usually can not see a care for employees - Focus on the maintain of records and legislation. Human Resource Management - Interpersonal and interpersonal relationships are practicing always - Operating as consolidated function - Considering both needs of Management and Employees/ workers - Optimum solutions are giving for the problems coming up in the organization, going beyond of maintain records etc.

Recruitment an employee to an organization Recruitment refers to the process of screening, and selecting qualified people for a job at an organization or firm, or for a vacancy in a volunteer-based some components of the recruitment process, mid- and large-size organizations and companies often retain professional recruiters or outsource some of the process to recruitment agencies. External recruitment is the process of attracting and selecting employees from outside the organization. The recruitment industry has four main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, and inhouse recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.

Human Resource Planning A HR manager of an organization is responsible for the carder plan for the organization mainly. Evaluate the needs of labor for the operating sections such as production, administration; sales etc is a sub task of a HR department. There are some of carder planning methods are available and it will be discussed in the coming posts. So there will be an only introduction part here. Human Resource Planning is defined as The development of a comprehensive staffing strategy for meeting the organizations future human resource needs (Gluick) Also it has defined as Work force planning places the right people at the right place at right time, with the right skills and education to need the organizations strategic plan and objectives (Ghame & Benet) As defined in above statements, the HR department should coordinate the labor demand and the supply of the organization. For that coordination they should follow some evaluation methods and processes, which are operating in monthly basis (usually) to make sure that the organization has the optimum work force for getting work done.

Basic Recruitment Principles - Concept of Marriotts Recruitment Principles for the modern world. Marriotts Recruitment Principles are most popular principle according to the recruitment in the modern world. A new employee should hire friendly way and trains technically to have maximum performance of the employee. It is better to hire people with the spirit to serve and train them to work than hire people who know business and try to teach them to enjoy serving guests. A manager should hire a driver who loves to drive safely and who loves to keep the vehicle clean. This is teaching that this approach works both for delivering excellent service and fro retaining their employees.

The main concern is should be the total compensation. Money is needed to have, but it is not the top concern of a person. But intangible factors taken together, such as work life balance, leadership quality, opportunity for advancements, work environment, and training far outweigh money in their decisions to stay or leave. To organization, there should have less number of pay matters and more period of work with the organization. From flexible schedules to tailored benefit packages and development opportunities are built systems to address these non monetary factors. Caring bottom line of the organization is to have for a developing organization. When employees come to work they should feel safe, secure and welcome at the work place. Committed associates are less likely to leave, and associate work commitment is one of the key drivers of guest satisfaction. Managers are accountable for associate satisfaction rating and for turn over rates. It is very good to have, associates meetings about 15 minutes in every day to discuss the matters faced on previous day or the current day and to discuss the goals that has to achieve. This kind approaches of managers is helps to earn loyalty for the organization from each and every employee. Promote employees when ever it is possible to do. By promoting current employees the organization will gain the loyalty of employee. An employee is a customer for the organization, especially for the department of Human resource. Therefore employee should treat well at all the times, when it can do. Promoting employees will make the chance to them to learn something new, and there fore their life will not be a stereotyped. The smooth changes in life are making them refresh and it will helps to them to reduce their stress while serving to the organization with high efficiency. Also, an opportunity for have a promotion will make an opportunity for has training. All this advancements are caused to make the decision in employees to stay with the organization. Build the Employment Brand is helps to have good attraction from job seekers. This concept is considering the employee as a most valuable thing in the organization, and this is same as customer attraction practicing in marketing management. If we are considering HRD as a service provider (as it is) then the customers will be employees. Appreciating care and service for the internal customers will make a good mouth of word regarding organization. It will not limit to the internal environment. It will go to the external environment and then jobs seekers will waiting till the organization advertise its vacancy. Potential employees are looking for great work experience when they shop for jobs. Communicating the promise of a great work experience is what employment branding is all about. The basement of this concept is, organizations most valuable resource is Human Resource, Human Capital, drives economic value for the company.

The main functions of Human resource Management are;


Job Design (JD) Job Analysis Human Resource Planning (HRP) Recruitment Selection Hiring Induction Performance Evaluation Compensation Management Training and Development Employee Movements Welfare Administration Health and safety Administration Discipline Administration Grievance Handling Labour Relations

Job Design (JD) JD can be defined as the function of arranging tasks duties and responsibilities in to an organizational unit of work for the purpose of accomplishing a certain objective. Techniques of JD Scientific Techniques: This is done by observing past performances. Job Enlargement: Adding more duties to a job that is related to the current duties of involved (Horizontal Loading) Job Rotation: Shifting an employee from one job to another periodically. Job enrichment: Increasing the depth of a job by increasing authority and responsibility for planning Group Technique: The job ids designed so that a group of individuals can perform it, the job being a collective job.

Job Analysis This includes the systematic analysis of the job and the characteristics of the desired job holders. The information collected through a Job Analysis is of two forms; Job Description: Describes the job, its tasks, responsibilities and service conditions of a job. Job Specification: Describes the requirements of the person for the job, including abilities, educational qualifications, special physical and mental skills, training, experience etc. Human Resource Planning (HRP) HRP can be identifies as the strategy forecasting the organizations future requirements for different types of workers, their acquisitions, utilization, improvement, employee cost control, retention and supply to meet these needs. The HR Planning Process

HRM Planing Process Factors considered when forecasting future HR requirements.


Demand for the organizations good/services Plans goals and objectives Method of productions Retirement, transfers, resignations Death Retrenchments

Recruitment This is the initial attraction and screening of the supply of prospective Human Resources available to fill a given position/s. In other words, it is the process of involving the attraction of suitable candidates to vacant positions from both internal and external sources of the organization. Eg: INTERNAL Job posting EXTERNAL Advertising

Intranet Succession plans Referrals Selection

Job Placement Agencies Internet Placement through Colleges and Universities

This is a systematic process of selecting the most appropriate and suitable person to a particular job. In other words, Selection is choosing an individual to hire from all those who have been recruited/ attracted. Methods of Selection Application Evaluation: This involves choosing the most appropriate person through evaluating the applications sent by the candidates Interviews: this is to face a meeting with a member/s of the management. One of te most commonly used methods of selection but it requires careful planning. Eg: One on one interviews, Panel interviews, Sequence interviews Tests: this is meaning the candidates for qualities relevant to performing available jobs. Eg: Knowledge Tests, Aptitude Tests, Practical Tests, IQ Tests. Background Investigations: this is assessing the appropriateness of an applicant by investigating into his/her family, financial positions, Residential Background, criminal background etc. Medical Tests: this involves assessing the applicants physical fitness for particular jobs. Hiring This is the process of appointing the person selected for a particular job. In this process, letters of appointments will be prepared, employment contracts will be signed and the new employee will be sent in for a probationary period. (Probationary period: the time period where the newly appointed employee will have to work till he/she is made permanent) Induction This is concerned with introducing an employee to the company, job and staff in a systematic way. There are two components of induction,

Introducing the employee to the organization and the organizations culture. Introducing the employee to his/her job

Performance Evaluation This is a regular systematic assessment of an employees performance in order to review whether his/her performance matches the expected performance levels. Performance evaluations are an analysis of an employees recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employees performance in a job based on considerations other than productivity alone. Compensation Management The main objective of the function is to develop and maintain a good salaried and wages system which is reasonable both internally and externally. Factors affecting Salaries and Wages

Cost of living Supply and demand of labor Government requirements (minimum wage rates) Competitor wage scales Trade Union influences Labor productivity

Training and Development Training is the process by which the employees are taught skills and given the necessary knowledge to carry out their responsibilities to the required standard. In other words, it is the improvement of the performance to carry out the current job. Development is concerned with the giving the individual necessary knowledge, skills, attitude and experience to enable an employee to undertake greater and more demanding roles and responsibilities in the future. Development is concerned with the long term prospects of a career succession plan. Methods of training and development

Apprenticing On the job training Off the job training Simulations Role playing Case studies

Employee Movements The movements of employees take place in three methods,

Promotions: this is the re-assignment of an employee to a higher ranked job in terms of responsibility, respect and salaries. Promotions are usually based on seniority, competency and merit. Transfers: this is the movement of an employee from one job to another on the same occupational level and at the same level of wage or salary. Lay off: This is the temporary stoppage or suspension of the service of the employee to various reasons.

Welfare Administration This refers to all the facilities and comforts given to the employee by the employer apart from wages, salaries and incentives.

Medical facilities Canteen facilities Housing facilities Transport facilities Recreation facilities Loan facilities Educational facilities

Health and safety Administration This is concerned with maintaining required and reasonable levels of professional Health and safety in the job and its environment. The organization should ensure the employees physical and mental health. The work place should be free of hazards. Discipline Administration It is important to control the performance and behavior of the employees according to the rules and regulations of the organization. For this very reason it is important to develop, implement and maintain an appropriate disciplinary system. Importance of a discipline administration:

To reduce conflicts and confusions To control the employees in an orderly manner

To ensure employees behavior in accordance with performance standards, rules and regulations of the organization.

Grievance Handling A grievance can be identified as a situation where the employee is in metal distress, dissatisfies or has a bad attitude, due to a work related unreasonable or unjust situation. A grievance could take place for various reasons;

Job related reasons Work services related reasons Employee management related reasons Service conditions related reasons Employee behavior related reasons

Labour Relations The continues relationship between the labour force and the management. Since labour forces are organized as Trade Unions, it is actually a relationship between Trade union representative and the management. However the Government is also an involved as a third party in order to regulate this relationship by ways of laws. This relationship is also more commonly known as a tri-partite relationship. If in case there is a dispute between the employees and the management, the most common way of dispute resolution is through negotiations or Collective Bargaining and when the two parties reach to an agreement its known as Collective Agreement. Collective Bargaining: this can be identified as the negotiation that takes place between the management and the Trade unions during a particular time period regarding labour/Industrial issues. Collective Agreement: The agreements which the management and the Trade unions get into after a collective Bargain.

Human resource management system A Human Resource Management System (HRMS) or Human Resource Information System (HRIS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible. [edit]Purpose The function of Human Resources departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "Human Capital" progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before the clientserver architecture evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to buy or program proprietary software, these internally-developed HRMS were limited to organizations that possessed a large amount of capital. The advent of clientserver, Application Service Provider, and Software as a Service SaaS or Human Resource Management Systems enabled increasingly higher administrative control of such systems. Currently Human Resource Management Systems encompass: 1. Payroll 2. Work Time 3. Appraisal performance 4. Benefits Administration 5. HR management Information system 6. Recruiting/Learning Management # TrainingSystem 7. Performance Record 8. Employee Self-Service

The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems. The work time module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions. The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement. The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information systems to:

produce pay checks and payroll reports; maintain personnel records; pursue Talent Management.

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent Managementsystems typically encompass:

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings; recruiting through online recruiting sites or publications that market to both recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or 'ATS', module. The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System if a stand

alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics. The Employee Self-Service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department. Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced Applicant Tracking System that encompasses a subset of the above.

HUMAN RESOURCE MANAGEMENT PROCESS: HR is a vast field that sets off, builds a strategy, executes and ends with a enduring solution. To deal with Human Resources seems to be very easy, but when it comes to be the player then starts the real snag in handling it. It is always easy to underscore someone or to that matter anyone about anything. However, the best is always esteemed. HR in a company is always reachable to each one of them irrespective of the levels. To start or make the first move it is the HR department that any one should get in touch with. They strategize the policies and procedures in the company for which it would have been a year, to do so provided the focus is on to Quality processes. HR includes the following processes: 1. Recruitment & selection 2. Training and development 3. Compensation and Benefits 4. Performance Management System 5. Employee relations Component should be consistent with the others, organization structure, and strategy. i. Recruitment: Develop a pool of qualified applicants.

ii. iii.

Selection: Determine relative qualifications & potential for a job. Training & Development: Ongoing process to develop workers abilities and skills.

iv. Performance Management System: Provides information about how to train, motivate, and reward workers. Managers can evaluate and then give feedback to enhance worker performance. v. Employee Relations: Managers need an effective relationship with labor unions that represent workers. Unions help establish pay, and working conditions. vi. Pay and Benefits: High performing employees should be rewarded with raises, bonuses. Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm. HR Planning There are many ways to define HR planning, or explain what it is, but the following definitions, taken from the Government of Canada human resources site, is a good, useful working definition: Rigorous HR planning links people management to the organizations mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost. Note the emphasis on linkage to strategic planning and business planning in the first sentence, and the emphasis on the arrangement and alignment of staff and employees in the last sentence. Heres another definition, perhaps a bit simpler: The processes by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization, reach its objectives. Human resource planning refers to the planning of human resource functions, or in other words, planning how human resource management will be executed. Recruiting Selecting Hiring Orienting Training and retraining Motivating Coaching Mentoring

Counseling Recognizing achievements Empowering Communicating Evaluating Promoting Laying off Dismissing So, in effect HR planning refers to the development of plans in these areas or in similar areas. You may want to develop your own list specific to your organization a list that reflects the functions that HR does in your company. Relevance of HR Planning Many people associate human resource planning with what very large companies do IBM, or Ford. Thats because, almost by necessity, large companies need to have a much more formal and comprehensive approach to HR planning because of their size and the complexity of their businesses. That said, even a business owner with a very few employees need to think (that is, plan) about various personnel and human resources issues. Many small business owners do this without really thinking about it. For example, a small business owner needs to think and plan about what benefits to offer, how to manage growth of staff, how to plan how many staff are needed, how to evaluate employee performance, and so on. So, even if you have one or two employees, its useful to plan like the big boys regarding human resource and personnel issues. The methods you use may be simpler but you still need to do it, so you are prepared.

1. Pre-Recruitment Process a. Receipt of requirement of manpower from various department heads. b. Scutinise them and take approval from concerned authorities if the post is new. c. Prepare a recruitment budget and CTC for the employee and take approval. d. Select the appropriate Recruitment process.

2. Recruitment Process a. Prepare Advertisements etc for the recruitment. b. Scrutinise and shortlist the applications received. c. Send interview call letters/mails as required. d. Conduct Interviews through panels. e. Preparation of offer letters as required. 3. Joining Formalities: a. Administrating Joining formalities. b. Pre Employment Reference checks. c. Preparation of Appointment Advice and intimating the same to other departments. d. Preparing and entering new hire paperwork. e. Co ordinating to get Employee ID Cards. f. Handing over the New hire to the concerned HOD/Manager. g. Preparation of Job Profiles co ordination with HOD/Managers for new posts. 4. Employee Personal File Maintenance: a. Opening new file and Closing the Resigned employees File. b. Make sure all Employee files are maintained safely with care. c. Make sure all personal records are available in the files. d. Periodic Personal File Auditing. 5. Employee Data Base: a. Keeping Track of Knowledge Management Software. b. Maintenance of HRIS. 6. Confirmation Formalities: a. Intimating the concerned HOD/Manager about the due dates for confirmation. b. Conducting Confirmation Appraisals. c. Co ordinating for Skill Gap Analysis. d. Co ordinating to set Quality Objectives for each job profile. e. Ensuring updation of the existing Job Profiles. f. Processing the Confirmation. 7. ISO Compliance: a. Ensuring all the updation of the ISO documentation and HR Formats. b. Learning and enforcing Standard Operating Procedures (SOP).

c. Facing the Internal and External Audits, accountable to enforce the correctional actions. 8. Statutory Compliance: a. Handling PF and ESI formalities and co ordinating with other departments. b. Handling Apprentice Training, Submitting Periodic Returns to Board. c. Submitting other returns to the labour Department as per Shops and establishment Act. 9. Training And Development: a. Conducting Induction Training for new hires. b. Training Need Analysis based on Skill Gap Analysis, Appraisal Feedback and suggestions. c. Co ordinating External and Internal Training Programs. d. Maintaining Training Records. e. Analysis of Training Feedback. 10. Performance Appraisal: a. Prepared the new Appraisal Form. b. Educated employees about self-appraisal. c. Provided inputs to HODs for Appraisals. d. Prepared Appraisal Letters. 11. Employee Relation: a. Having formal and Informal counselling with employees. b. Prepared Event Calendar of monthly recreation to motivate employees. c. Handling Corporate Medical Insurance. d. Processing required letters on employees request. 12. Report Generation: a. Generating and analyzing Employee Attrition Reports, Training Evaluation, and Manpower Status. b. Weekly and monthly recruitment reports c. Report generation of Pre appraisal, Appraisal and Post Appraisals. d. Salary Details Reports to Accounts Department. e. Reports as per the HODs request. 13. Exit Formalities: a. Administering Exit paper work including all Statutory requirements.

b. Conducting Exit Interviews. c. Preparing Exit Interview Summary. d. Giving post employment reference for relieved employees. e. Processing File to Accounts Department for final settlement.