Human Resource Management

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 Meaning
‡ Human Resource - Individuals who make up
the workforce of an organization
‡ Management - achieving organizational
objectives
‡ Human Resource Management is consists of
the achievement of organizational objectives
through the people of the organization.

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 HRM involves
‡ Planning ± Organizational goals and
objectives
‡ Organizing ± Jobs and decisions
‡ Leading ± Direction
‡ Controlling ± Monitoring to ensure goals are
met

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 =actors for growing importance

‡ Needs of employees
‡ Complexity of Manager¶s job
‡ Legislation
‡ Consistency
‡ Expertise
‡ Cost of Human Resource

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 Objectives

‡ Societal
‡ Organizational
‡ =unctional
‡ Personal

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‡ Legal
‡ Benefits
‡ HRP
‡ ER
‡ TD
‡ Appraisal
‡ Career
‡ Compensation

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 Environmental Context


 
‡ Legislature, executive and judiciary
‡ Equality before law
‡ Prohibition of child labour
‡ Welfare of the employees
‡ Participative management

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 Economic

‡ Competitors
‡ Customers
‡ Quality labour
‡ Work force Diversity
‡ Globalization
‡ Per Capita Income

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‡ Reduces use of Man power
‡ Introduction of new machines
‡ Upgraded tasks
‡ Challenging jobs
‡ Training
‡ Impact on Productivity
‡ Quality


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‡ Countries and their culture
‡ Sub cultures
‡ Work ethics
‡ Regions

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 Emergence of HRM
‡ Commodity : Demand and supply
‡ =actor of Production : Land,labour,capital, org.
‡ Goodwill : Welfare
‡ Humanitarian : Social & psychological needs
‡ HR : Assets
‡ Emerging : Partners

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 Personnel Human Resource
Management Management
‡ Employee Relations ‡ Partnering
‡ =ollower ‡ Leader
‡ Production ‡ Service
‡ Slow and reactive ‡ =ast and proactive
‡ Specialization ‡ Cross training
‡ Invest on Capital ‡ Invest in knowledge
‡ Bureaucratic ‡ =ocus on success
‡ Individualism ‡ Team work

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 Önowledge Management

‡ Önowledge Management includes the strategies and

practices used in an organization to identify, create,
represent, distribute, and enable adoption of insights
and experiences which comprises the knowledge,
either embodied in individuals or embedded in
organizational processes or practice.
‡ Assess the data and information that exist within
them, and is a response to the concern that people
must be able to translate their learning into usable
knowledge
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 Learning Organization

 

  
     


      

          

 

  
     
  
 

      
      

   

          



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 Human Resource Planning

‡ It is a process by which an organisation

ensures that it has the right number & kind of
people at the right place and at the right time,
capable of effectively and efficiently
completing those tasks that help the
organisation achieve its overall objectives.

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 Importance
‡ Need for Replacement of Personnel - Replacing old, retired or
disabled personnel.
‡ Meet manpower shortages due to labour turnover
‡ Meet needs of expansion / downsizing programmes - IT
companies
‡ Cater to =uture Personnel Needs
‡ Nature of present workforce in relation with Changing
Environment

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 Uses
‡ Quantify people & positions required
‡ Determine future staff-mix
‡ Assess staffing levels to avoid unnecessary costs
‡ Reduce delays in procuring staff
‡ Prevent shortage / excess of staff
‡ Comply with legal requirements

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 Process
Organizational Objectives

HR Demand =orecast HR Supply =orecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus - Restricted Hiring, Shortage - Recruitment &

Lay Off, VRS, Reduced Hours Selection
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 HR Demand =orecast

Process of estimating future quantity and quality

of manpower required for an organisation.

External factors - competition, laws & regulation,

economic climate, changes in technology and social
factors

Internal factors - budget constraints, production

levels, new products & services, organisational
structure & employee separations

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 =orecasting Techniques

Managerial Judgement - Managers discuss and arrive at a
figure of inflows & outflows which would cater to future
labour demand.

Delphi Technique - =rom a group of experts the personnel

needs are estimated.

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 HR Supply =orecast

Process of estimating future quantity and quality

of manpower available internally & externally to
an organisation.

Supply Analysis

Existing Human Resources

Internal Sources of Supply

External Sources of Supply
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 Job Analysis
‡ Process of collecting and studying information
relating to the operations and responsibilities of a
specific job.
‡ Determination of tasks which comprise the job and
of skills, knowledge, abilities and responsibilities
required of the worker for a successful performance
and which differentiates one job from all others.
‡ Job analysis results in job description & job
specification

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 Purpose / Use Of Job Analysis

‡ Human Resource Planning

‡ Recruitment & Selection
‡ Job Evaluation
‡ Wage & Salary administration
‡ Employee Training & Managerial Development
‡ Performance Appraisal
‡ Health & Safety
‡ Job design

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Steps in Job Analysis
Collection of Organisational Structure Information

Selection of Representative Position to be Analysed

Collection of Job Analysis Data

Developing Job Description

Developing Job Specification

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Collection of Data
Who Collects ?
- On-the-job Employees, Supervisors, Consultants / trade
job analyst

What to Collect
- Physical & Mental activity involved
- Each task essential to achieve overall result
- Skill / Educational factor needed for the job

How to Collect ?
- Checklist, Interview, Observation, Diary Method

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 Job Analysis
Job Description
A proper definition &
design of work.
Job Title
Location
Job Summary
Duties & Responsibilities
Materials, Tools & Equipment used
=orms & reports handled
Supervision given / received
Working conditions
Hazards & Safety precautions
Job Specification
A statement of human
qualifications necessary to
do the job
Education & Qualifications
Experience & Training
Önowledge & Skills
Communication skills
Physical requirements - Height,
Weight, Age
Personality requirements -
Appearance, Emotional stability
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 Recruitment
Meaning : ³Recruitment is the process of
searching the candidates for employment and
stimulating them to apply for jobs in the
organisation´
- Edwin B. =lippo

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‡ Process of finding & attracting capable
applicants for employment.
‡ The process begins when new recruits are
sought and ends when their applications are
submitted.
‡ The result is a pool of applications from which
new employees are selected.

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‡ 
  i.e. the needs arising from changes
in organization and retirement policy.
‡


  Anticipated needs are those
movements in personnel, which an
organization can predict by studying trends in
internal and external environment.
‡  
  Resignation, deaths,
accidents, illness give rise to unexpected
needs. !!
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‡ Attract and encourage more and more candidates to
apply in the organization.
‡ Create a talent pool of candidates to enable the
selection of best candidates for the organization.
‡ Determine present and future requirements of the
organization in conjunction with its personnel planning
and job analysis activities.
‡ Recruitment is the process which links the employers
with the employees.
‡ Increase the pool of job candidates at minimum cost.
‡ Help increase the success rate of selection process by
decreasing number of visibly under qualified or
overqualified job applicants.
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‡ Help reduce the probability that job applicants
once recruited and selected will leave the
organization only after a short period of time.
‡ Meet the organizations legal and social
obligations regarding the composition of its
workforce.
‡ Begin identifying and preparing potential job
applicants who will be appropriate candidates.
‡ Increase organization and individual effectiveness
of various recruiting techniques and sources for
all types of job applicants

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 ÷
‡ OUTSOURCING
‡ Advantages:
‡ Company need not plan for human resources much in
advance.
‡ b. Value creation, operational flexibility and
competitive advantage
‡ c. turning the management's focus to strategic level
processes of HRM
‡ d. Company is free from salary negotiations, weeding
the unsuitable resumes/candidates.
‡ e. Company can save a lot of its resources and time
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 POACHING/RAIDING
Buying talent´ (rather than developing it) is the
latest mantra being followed by the organizations
today. Poaching means employing a competent and
experienced person already working with another
reputed company in the same or different industry;
the organization might be a competitor in the
industry.

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 Selection
‡ Employee Selection is the process of putting
right men on right job. It is a procedure of
matching organizational requirements with the
skills and qualifications of people.

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‡   !"' It is used to eliminate
those candidates who do not meet the minimum
eligibility criteria laid down by the organization.
The skills, academic and family background,
competencies and interests of the candidate are
examined during preliminary interview.
Preliminary interviews are less formalized and
planned than the final interviews. The candidates
are given a brief up about the company and the job
profile; and it is also examined how much the
candidate knows about the company. Preliminary
interviews are also called screening interviews. |!
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  # $' 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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‡ % ' Various written tests
conducted during selection procedure are
aptitude test, intelligence test, reasoning test,
personality test, etc. These tests are used to
objectively assess the potential candidate.
They should not be biased.

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‡  !"' 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.
But such interviews consume time and money
both. Moreover the competencies of the candidate
cannot be judged. Such interviews may be biased
at times. Such interviews should be conducted
properly. No distractions should be there in room.
There should be an honest communication
between candidate and interviewer.

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‡   &  ' Medical tests are
conducted to ensure physical fitness of the
potential employee. It will decrease chances of
employee absenteeism.
‡
 ' 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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 (( #") 
Recruitment
Y. It the process of searching the
candidates for employment and
stimulating them to apply for jobs in
the organization.
V. 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.
. Recruitment is a positive process i.e.
encouraging more and more
employees to apply .

. Recruitment is concerned with tapping
the sources of human resources.
5. There is no contract of recruitment
established in recruitment
Selection
It Involves the series of steps by which
the candidates are screened for choosing
the most suitable persons for vacant
posts.
The basic purpose of selection process is
to choose the right candidate to fill the
various positions in the organisation.
Selection is a negative process as it
involves rejection of the unsuitable
candidates.
Selection is concerned with selecting the
most suitable candidate through various
interviews and tests.
Selection results in a contract of service
between the employer and the selected
employee. |'