These are carried out by HR managers to fulfil the goals and objectives of the
organisation. They are classified into two broad categories, managerial and
operative functions.
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|t involves the process of pre-determining the personnel programmes
that are necessary to attain the organisational goals. Accurate forecasting is
vital to the success of any plan. The steps involved in the planning are:
R Establishing goals and objectives to be achieved
R Developing rules and procedures
R Determining plans and forecasting techniques
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|t¶s a process through which the firm establishes its structure and
determines the authority, responsibility and accountability of each member in
relation to the job. Organising involves:
R Giving each member a specific task
R Establishing departments and divisions
R Delegating authority to the members
R Establishing channel of authority and communication
R Creating a system to coordinate the works of the members
V
This deals with the creation and maintenance of human resources through
employment, compensation, benefits, training and development and industrial
relations measures. The steps are:
R Determining the type of people to be hired
R Recruiting prospective employees and selecting the best ones from them
R Compensating the employees
R Training and developing the employees
R Setting performance standards and evaluating the employees performance
R Counselling the employees
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|t¶s the sum of several activities like communication, leadership and
motivation. Directing as a function, aims at securing willing cooperation from
the individuals and groups to achieve the predetermined goals. |t includes the
following activities:
R Getting works done through subordinates
R Motivating subordinates to strive for better performance
R Maintaining the group morale
|s the process of checking the efficiency of the individuals and the groups in
fulfilling the plans and goals through follow -up measures. The processes
involved are:
R Establishment of standard performance
R Measurement of actual performance
R Comparison of actual performance with the standard one to find the deviation
R |nitiation of corrective action
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|t is the process of assigning the selected candidate with the most suitable
job in terms of job requirements. |t is matching of employees specifications
with job requirements. This function includes:
R Counselling
R Conducting follow-up study, appraising employee performance in order to
determine employee¶s adjustment with the job.
R Correcting misplacements, if any.
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Two way linkage allows for consideration of human resources issues during
the strategy formulation process. This integration occurs in three sequential
steps. First the strategic planning team informs the HRM function of the
various strategies the company is considering. Then HRM executives analyze
the human resources implications of the var ious strategies, presenting the
results of this analysis to the strategic planning team. Finally, after the
strategic decision has been made, the strategic plan is passed on to the HRM
executive who develops programs to implement it. The strategic planning
function and the HRM function are interdependent in two way linkage.
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The role of the Human Resource Manager is evolving with the change in
competitive market environment and the realization that Human Resource
Management must play a more strategic role in the success of an
organization. Organizations that do not put their e mphasis on attracting and
retaining talents may find themselves in dire consequences, as their
competitors may be outplaying them in the strategic employment of their
human resources. With the increase in competition, locally or globally,
organizations must become more adaptable, resilient, agile, and customer -
focused to succeed. And within this change in environment, the HR
professional has to evolve to become a strategic partner, an employee
sponsor or advocate, and a change mentor within the organization . |n order to
succeed, HR must be a business driven function with a thorough
understanding of the organization¶s big picture and be able to influence key
decisions and policies.
The added value of the HR function in an international firm lies in its ability
to manage the delicate, balance between globally coordinated systems and
sensitivity to local needs, including cultural differences, in a way that align
with both business needs and senior management philosophy. There now
appear to be a distinction to be made between international HRM and
global HRM. |n this transition, the old functional divides between
international recruitment, international management development and
international reward management have become increasingly weak.
Over the last 20 years, the workplace has changed in more ways that one
could have ever imagined, resulting from the increase in technology,
innovation and globalization. The next decade will bring ev en greater
change, impacting all facets of the workplace, including major changes for
the HR department and HR managers. |n order to respond to the demands
of globalization, HR managers will require new skills and competencies
relating to language and culture, technology capabilities to facilitate
overseas communication, methods to measure and quantify effectiveness
and evaluate strategies and return on investment. Evidently, these new
skills and competencies will result in an emerging new role for HR
managers, requiring them to be strategic business partner, supportive of
the overall corporate strategy.
Stakeholders
- Skill deficiencies
- Employee values
- Ethical considerations
- Use of teams
- |ncreased competitiveness
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Strategy-The company¶s long term plan for how it will balanc e its internal
strengths and weaknesses with its external opportunities and threats to
maintain competitive advantage. Thus, the president and his or her staff might
decide to enter new markets, would drop product lines, or embark on a five
year cost cutting plan. Then he or she would more or less leave the personal
implications of that plan (hiring or firing new workers, hiring outplacement
firms for those fired, and so on) for HR management to carry out. Today HR
plays a more central role.
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Today, it¶s the firm¶s workforce-its knowledge, commitment, skills & training -
that provides the competitive advantage for world class companies like
Microsoft, Sony« That means an upgrading role of HR¶s traditional role. As
new technologies in areas like testing & interviewing began to emerge, the
personnel department began to play an expanded role in employee selection,
training & promotion. |n today¶s flattened, downsized & high performing
organizations, trained and committed employees -not machines-are the firm¶s
competitive key.
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Unfortunately, HR¶s long history as a staff or advisory function has left it with a
somewhat improvised reputation-some still tend to view it as less than it is.
For example, one view is that HR is strictly operational and that HR activities
are not strategic at all.
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HR handles the execution of most of firm¶s downsizing and restructuring
strategies-by outplaying employees, instituting pay for performance plans,
reducing health care costs, retraining employees. Strategy execution usually
involves identifying and reducing costs, and therefore value chain analysis. A
company¶s value chain identifies the primary activities that create value for
customers and the related support activities.
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The HR in small organizations may take full responsibility for all human
resource activities. Whereas in others, it may share the roles and
responsibilities of other departments such as the finance or administration.
While in others, it acts as an internal consultant and makes all the HR -related
decisions in support of strategic business directions.
|n the recent years it is noticeable that more and more organizations are
looking at HR professionals as their strategic partners in quality management,
corporate planning, business operations, and business pro fitability. HR
management now takes the forefront in strategic planning and expansions in
ways that enhance the image and value of the organization.
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Playing the role of administrative expert requires designing and delivering
efficient and effective HRM systems, processes and practices. These include
systems for selection, training, develop ing, appraising and rewarding
employees.
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The final role change agent requires that HRM help transform organizations to
meet the new competitive conditions. |n today¶s fast changing competitive
world HR managers need to help identify and manage processes for change.
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The External Recruitment is the source of the fresh blood for the organization.
As a very critical HR Process, the external recruitment process has to be se t
up very carefully. The external recruitment involves other external parties and
they have to cooperate closely to bring a common success for the
organization. The external recruitment is a difficult HR Process when it has to
be done properly and meeting stretching requirements and goals of the top
management.
The HRM Function has to take initiatives in four important areas to make the
external recruitment efficient, quick and bringing the right quality of
candidates:
R Organization -(
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of Job Posting
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R Speed of the & .
Generally, the HRM Function is responsible for monitoring the j?
and
react appropriately to the changes on the job market with the right mix of the
channels used to bring the expected level and number of candidates at the
affordable costs. The external recruitment is a very costly HR Process and it is
under the pressure for the cost savings all the time.
R Speed
R Cost
R Quality
R Confidentiality
R Job Position Requirements
R Job Openings Plan and Forecast
R Available external recruitment budget
The HRM Function cannot miss the opportunity to introduce clever external
recruitment measures, which will show the development in the area and will
provide detailed reporting to the organization.
The measures have to be defined carefully and it should cover the following
areas:
R Positions - the main reason for the external recruitment. The HRM
Function has to keep track of all open positions in the organization, the
number of positions, in departments and h ow complex the position are
as the HRM Function has to define the limits
R Time - the external recruitment process must be cut into separate
pieces to take the measures, there can¶t be a discussion over them and
the HRM Function has to measure all the vacanc ies
R Sources - the sources of the external recruitment, including the number
of candidates and the percentage of the successful candidates, it is
good for measuring the real success rate of different external
recruitment channel with different positions
R Costs - each external hire has costs associated with and the HRM
Function has to measure the efficiency of the whole process
The external recruitment process is not easy to measure and it takes a lot of
effort to implement it correctly, but reading the trends in the recruitment, it can
help the HRM Function to keep the process in the right shape.
The external recruitment is not just about choosing the right or ideal
candidate for the vacancy in the organization. The external recruitment is also
about the competition. The competition is about the attractiveness of the job
advert, communication and quick response from the organization. The
communication is essential during the external recruitment process. The
organization, which sends information to its potent ial hires, the better
relationship with the job candidate can be. The organization should inform the
job candidate about the step in the recruitment process and expecting time of
the next message. People love to be informed about the status of the
recruitment process and the organization should allow the smooth information
flow.
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The & is the most favorite source of candidates in the
stable and developed companies. The | ?
needs a strong
support from other HR Processes, because the unmanaged internal
recruitment process can lead to disappointed managers and employees in the
organization. The Succession Planning and strong and consistent
Performance Management are needed to ensure the success of the internal
recruitment.
The & ! has a lot of benefits and it is always
difficult to decide whether to use internal or external recruitment process. The
internal recruitment is a right recruitment process for the large organization,
which promote friendliness in their corporate culture.
The corporate culture, which supports the employees to look for the
opportunities in the organization, is well designed for the internal recruitment
process and the process can be a big benefit for the organization. The
corporate culture, which is focused on a strong competition among employees
and with the external environment, this corporate culture does not support the
internal recruitment process.
The & does not have just benefits; this process
has some disadvantages as well. The |nternal Recruitment Process is a very
powerful tool, but it can be misused in hands of some employees and
managers.
The & is not a process to steal the best
employees from their departments. These employees should be treated as a
very scarce resource and the internal recruitment procedures should work
differently for them.
|nternal versus External Job Candidate
The & needs clear rules for the decision about
the winning candidate. The organization has to clearly define the condition for
the final decision based on the corporate culture and habits inside the
organization.
On the opposite side some organizations always prefer int ernal candidates for
job positions and they do not have to compete with the external candidates.
This is also very dangerous approach as the external candidate can bring a
new knowledge or the approach to the organization.
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Phases of the selection process
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|dentifying the role and effectiveness of the selection p rocess from the
organizational perspective.
Application forms normally solicit the following information from the candidates
- Biographical information
- Educational qualifications
- Work experience
- Additional information
- References
Selection tests
Personality test
- A personality test proposes to assess and predict these basic
characteristics of a person.
- |ts results are useful in predicting the future performance of the
candidate.
- Rorschach Blot Test (RBT), Thematic Apperception Test (TAT),
Minnesota Multiphase Personality |n ventory (MMP|) and Myers-
Briggs type indicator (MB|T) are some of the popular forms of
personality test.
|nterest test
- The aim of the interest test is to know the interest, attitude and
preference of a person towards the job offered.
Merits
- Objective in evaluation.
Limitations
- Lack of flexibility.
- Unsuitable for smaller groups.
Selection interview
Kinds of interview
Computerized interview
- Lack of objectivity.
- Halo effect.
- |nadequacy of time.
- Lack of uniformity.
HRM practices that help companies deal with the competitive challenges can
be grouped in to the four dimensions. These dimensions include:
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Customer needs for new products or services influence the number and type
of employees businesses need to be successful. Terminations, promotions
and retirements also influence human resource requirements. Managers need
to predict the number and type of employees who are needed to meet
customer demands for products and services. This area of human resource
management deals with:
4.
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Besides interesting work, pay and benefits are the most important incentives
that companies can offer employees in exchange for contributing to
productivity, quality and customer service. Also, pay and benefits are used to
reward employee¶s membership in the company and attract new employees.
The positive influence of new work designs , new technology and the quality
movement on productivity can be damaged if employees are not satisfied with
the level of pay and benefits or believe pay and benefits are unfairly
distributed. This area of human resour ce management includes
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Many companies are globally expanding their business through joint ventures,
mergers, acquisitions and establishing new operations. Successful global
expansion depends on the extent to which HRM practices aligned with cultural
factors as well as management of employees sent to work in another country.
HRM practices must contribute to organizational effectiveness.
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