Human Resource Management

System & Function

Made by Rita
Choudhary

Session Objectives
Introduction of HRM
Definition of HRM
HRM functions
To understand
Recruitment &Selection process
Training& Development process
Performance Appraisal process
Pay Roll
Compensation &Benefits
To understand the Main HR Roles & Responsibilities

Introduction
Human resource management is a process of bringing

people and organisation together so that the goals of each

are met .it tries to secure the best from people by winning
their whole hearted cooperation .
In short, it defined as the art of procuring ,developing and

maintaining competent workforce to achieve the goals of an

organisation in an effective and efficient manner.

What is HRM?
Human Resource Management (HRM) is the function within

an organization that focuses on recruitment, management ,

and providing direction for the people who work in the
organization.
It deals with issues related to people such as compensation,

hiring,

performance

development,

safety,

management,
wellness,

benefits,

organization
employee

motivation, communication, administration, and training.

What do HR Managers Do?

Human Resource professionals create systems for managing

employees that support an organizations overall strategy.

To accomplish this they

Analyze and design jobs.

Forecast supply and demand for workers.
Ensure legal compliance.
Implement affirmative action plans.
Recruit and select candidates to fill open positions.
Train and develop employees to meet current and future

job demands

 Manage employee performance and career progress.

Develop basic pay structures.
Create incentive plans.
Administer benefit programs.
Assure employees safety and health.
Retain employees.
Improve employee morale.
Reduce turnover and carry out disciplinary actions, all while

applying constantly evolving technology.

HRM Functions
There are seven main functions of HR . .
Manpower planning
Recruitment and selection of employees
Employee education, training and development
Compensation &Benefits (Employee motivation)
Performance Appraisal (Employee evaluation)
Industrial relations
Provision of employee services (safety &Health Benefit)

 Manpower planning is the

process of determining

manpower requirements and the means for meeting those

requirements in order to carry out the integrated plan of the
organization.
It is a double edged weapon . if used properly ,it leads to

the maximum utilization of human resources , reduce

excessive labour turnover and high absenteeism , improve
productivity and aid in achieving the objectives of an
organization.

Recruitment &Selection
Recruitment is a process of identifying and hiring best-

qualified candidate (from within or outside of an organization)

for a job vacancy, in a most timely and cost effective manner.
The process begins when applications are brought in and

ends when the same is finished. The result is a pool of

applicants, from where the appropriate candidate can be
selected.

Recruitment cycle

Source of Recruitment
Internal source ..
Transfer
Promotion
Upgrading
Demotion
Retired employee
Retrenched employee
Employee reference

 External source
Advertisement (print media ,mass media)
Educational institutions
Placement agencies/outsourcing
Job portals (Naukari .com, monster .com)
Employment exchange
Labour contractors
Unsolicited applicant
Employment at factory gate

 Selection involves the series of steps by which the

candidates are screened for choosing the most suitable

persons for vacant posts.

Training & Development

Training is a process of learning a sequence of programmed

behavior.

It is a act of increasing the knowledge and skills of an employees,

for performing a particular job.

Newly recruited employees require training so as to perform their

task effectively.

Instruction , coaching, guidance helps them to handle jobs

completely, without any wastage .

Development is a long -term educational process utilizing a

systematic and organized procedure by which managerial personnel
learn conceptual and theoretical knowledge for general purpose .

Performance Appraisal
Performance appraisal may be defined as a structured formal

interaction between a subordinate and supervisor, that usually

takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as
well as opportunities for improvement and skills development.
Its rates the employees in terms of their performance
It

is

necessary

to

understand

each

employees

abilities,

competencies and relative merit and worth for the organization.

It may be half yearly or yearly report .

360 degree performance appraisal

The

360

degree

appraisal

is

the

appraisal

given

by

peers,

subordinates ,workers , head of the department etc, that means the

appraisal given from all the people working in the organisation .

In short The half yearly or yearly report of work schedule goes from

company to head quarter of all the workers performance is the appraisal

it contains all the promotion ,demotion, and other activities related to
the performance.

Pay Roll
The term 'payroll' encompasses every employee of a company

who receives a regular wage or salary or

other compensation .

Payroll refers to the administration of employees' salaries, wages,

bonuses, net pay, and deductions.
It consist of the employee ID, employee name, date of joining,

daily attendance record, basic salary, allowances, overtime pay,

bonus, commissions, incentives, pay for holidays, vacations and
sickness, value of meals and lodging etc. There are some
deductions such as PF, taxes, loan installments or advances taken
by employee.

Figure: Components of Monthly Payroll

Figure: Components of Annual Payroll

Compensation & Benefits

Compensation is the remuneration received by an employee

in return for their contribution to the organization.

It is an organized practice that involves balancing the work-

employee relation by providing monetary and non-monetary

benefits to employees.
Compensation is an integral part of human resource

management which helps in motivating the employees and

improving organizational effectiveness.

Components of Compensation System

Two types of compensation given by any Organization

Direct compensation
Indirect compensation

Employees Benefits
Benefits in kind (also called fringe benefits, perquisites,

perks) are various non-wage compensations provided to

employees in addition to their normal wage or salaries, Where
an employee exchanges (cash) wages for some other form of
benefit, this is generally referred to as a 'salary sacrifice'
arrangement..
Some of these benefits are:
Housing (employer-provided or employer-paid),
Group insurance (health ,life ,etc.)
Disability income & protection,
Retirement Benefits

 Reimbursement,
Seek leave, Vacation (paid and non-paid),
Social security , profit sharing ,funding of education, and other specialized

benefits.

Perk-refer to those benefits of a more discretionary nature. Often, perks

are given to employees who are doing notably well and/or have seniority.
Common perks are
Take home vehicles, hotel stays
Free refreshments, leisure activities on work time (golf etc.), stationary

allowances

HR Roles and Responsibilities in changing Environment

The HR Roles and Responsibilities needs to react to this

basic request by the organization to keep the level of the

satisfaction.

Nowadays, the HRM has to deliver even more. The HR Roles

and Responsibilities have to take the high level recognition
of the organization and they need to be adjusted to make a
full fit.
The HR Roles have to be adjusted to:
keep HRM Function focused on tracking and implementing
new trends in the industry.
keep HRM Function focused on helping the line management
to implement improvements.
keep HRM Function focused on operational excellence.
keep HRM Function responsible for developing the Human
Capital potential in the organization.

 The HR Responsibilities have to be adjusted to:

Demonstrate the Line Management the will to keep the

responsibility for the Human Capital costs

keep the competitive advantage on the market (and not just

the job market)

Demonstrate the will to drive the main HR Processes to keep

the organization in the excellent health.

keep HRM Function supporting the Business Strategy to reach

the business initiatives.

keep HRM responsible for the tasks resulting from the

Business Strategy

THANK YOU