Functions of HRM

Conducting job analyses (determining the nature of each employee's job)

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing Wages and Salaries (how to compensate employees) Providing

incentives and benefits

Appraising performance and Communicating (interviewing, counseling,

disciplining)

Training and developing

Building employee commitment

Building employee commitment

Equal opportunity and affirmative action

Employee health and safety

Grievances and labor relations

WHAT ARE THE HRM ACTIVITIES?

Organizational, work, and job design

Planning

Recruitment and Selection

Recruitment and Selection

Training and Development

Performance Management

Compensation

Occupational health and safety

Employee and labour relations Importance of HRM functions

As managers none of us would like to make the following mistakes.

To hire the wrong person for the job

To experience high turnover

To find our people not doing their best

To waste time with countless and useless interviews

To have our company sued for our discriminatory actions.

To be quoted under bad example of unsafe practices

To have some of your employees think their salaries are

unfair and inequitable relative to others in the organization

unfair and inequitable relative to others in the organization

To allow a lack of training to undermine your department's effectiveness

To commit any unfair labor practices Personnel Management

Standard definition given by experts of personnel management

“ It is that phase of management which deals with the effective control

and use of manpower as distinguished from other sources of power.”

Personnel Functions

The procurement function-

obtaining of a proper kind and number of personnel necessary to

accomplish an organization’s goals 2. The development function-personnel
development of employees, training

The compensating function- securing adequate and equitable

remuneration to personnel

4. The Integration function-an “integration” of human resources with

organization through job enlargement, job evaluation, variable
compensation plans, disciplinary action programme’\s.

5. The maintenance function-maintaining the physical conditions of

employees (health and safety measures) and employee service
programmes PM vs HRM

There are two schools of opinions prevailing between the differences

between both.

Some experts assert that there is no difference between human resources

and personnel management
. They state that the two terms can be used interchangeably, with no
difference in meaning.

For those who recognize a difference between personnel management and

human resources, the difference can be described as philosophical.

Definition

Personnel Management

Personnel Management is basically an administrative

record-keeping function, at the operational level.

Personnel Management attempts to maintain fair terms and conditions of

employment, while at the same time, efficiently managing personnel
activities for individual efficiently managing personnel activities for
individual departments etc. It is assumed that the outcomes from
providing justice and achieving efficiency in the management of personnel
activities will result ultimately in achieving organizational success.

Human Resource Development

Human resource management is concerned with the development and

implementation of people strategies, which are integrated with corporate
strategies, and ensures that the culture, values and structure of the
organization, and the quality, motivation and commitment of its members
contribute fully to the achievement of its goals.

Main Differences between Personnel Management and HRM

Personnel management is workforce centered

, directed mainly at the organization’s employees; such as finding and

training them, arranging for them to be paid, explaining management’s
expectations, justifying management’s actions etc. While on the other
hand, HRM is resource centered, directed mainly at management, in terms
of devolving the centered, directed mainly at management, in terms of
devolving the responsibility of HRM to line management, management
development etc.

Personnel Management is basically an operational function, concerned

primarily with carrying out the day-to day people management activities.
While on the other hand, HRM is strategic in nature, that is, being
concerned with directly assisting an organization to gain sustained
competitive advantage.
HRM is more proactive than Personnel Management. Whereas personnel
management is about the

Maintenance of personnel and administrative systems,

HRM is about the forecasting of organizational needs, the continual

monitoring and adjustment of personnel systems to meet current and
future requirements, and the management of change.

HUMANRESOURCEDEVELOPMENT

Human resource development refers to the process whereby the

employees are continuously helped in a planned way to planned way to
Acquire or sharpen capabilities required to perform various tasks
associated with their present/future expected roles.

Develop their general capabilities as individuals so that they are able to

discover and exploit their own inner potential for their own and/or
organizational development purpose.

Develop an organizational work culture where: superior-subordinate

relationships, team work and collaboration among different units are
strong and contribute to the professional well-being, motivation and
pride.”

Job Analysis
Definition

Job analysis is the procedure for determining the duties and skill requirements of a
job and the kind of person who should be hired for it.

Organizations consist of positions that have to be staffed. Job analysis is the

procedure through which you determine the duties of these positions and the
characteristics of the people who should be hired for them .The analysis produces
information on job requirements, which is then used for developing job descriptions
(what the job entails) and job specifications (what kind of people to hire for the job).

Why is Job Analysis Required?

What is Job Analysis -Job Analysis is obtaining info about jobs.

Why is Job Analysis important -Without sufficient knowledge of what employees do,
organizations an not develop other human resource employees do, organizations
cannot develop other human resource

Practices and procedures. Job analysis is a systematic procedure for studying jobs to
determine their various elements and requirements. The job analysis for a particular
position typically consists of two parts.

Job Description

is a list of the elements that make up a particular job.

Job Specification

is a list of the qualifications required to perform particular job.

Job Description Vs. Job Specification

Job Description

-written narrative describing activities performed on a job; includes information

about equipment

used and working conditions under which job is performed.

Job Specification

-outlines specific skills, knowledge, abilities, physical and personal characteristics

necessary to perform a job -What about physical and personal characteristics?
Strength, patience, intestinal fortitude, risk-taker. Job Analysis helps to find
following information

•Work activities

•Human behaviors

•Human behaviors

•Machines, tools, equipment, and work aids used

•Performance standards

•Job context

•Human requirements.

Types of Information Gathered Work Activities

•Work activities performed

•How, why, when activity is performed Human Behaviors

•Communicating, decision making, and

•Other physical job demands, e.g., lifting Tools, equipment, etc used

•Products made

•Knowledge dealt with / applied

•Services rendered Types of Information Gathered Conti. Performance standards

•Quantity, quality, speed

•Used to evaluate employee performance Job Context

•Physical work conditions

•Work group

•Incentives for doing job Human Requirements

•Job-related knowledge, skills

•Personal attributes, e.g. personality, aptitudes Areas in which Job Analysis

Information is used Recruitment and Selection

Job analysis provides information about what the job entails and what human
characteristics are required to carry out these activities. Such job description and
job specification information is used to decide what sort of people to recruit and
hire.

Compensation

Job analysis information is also essential for estimating the value of and appropriate
compensation for each job. This is so because compensation. (such as salary and
bonus) usually depends on the job's required skill and education level, safety
hazards, degree of responsibility and so on-all factors that are assessed through job
analysis. Job analysis provides the information determining the relative worth of
each job so that each job can be classified.

Ensure Complete Assignment of Duties

The job analysis is also useful for ensuring that all the duties that have to be done
are in fact assigned to particular positions. For example, in analyzing the current job
of your company's production manager, you may find she reports herself as being
responsible for two dozen or so specific duties including planning weekly production
schedules, purchasing raw materials, and supervising the daily activities of each of
her first-line supervisors. Areas in which Job Analysis Information is used Conti.

Training

Job analysis information is also used for designing training and development
programs because the analysis and resulting job description show the skills-and
therefore training-that are required.

Performance Appraisal

A performance appraisal compares each employee's actual performance with his or

her performance standards. It is often through job analysis that experts determine
the standards to be achieved and the specific activities to be performed.

Performance Appraisal
What is Performance Appraisal

In simple terms, performance appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured
against such factors as job knowledge, quality and quantity of output, initiative,
leadership abilities, supervision, dependability, co-operation, judgment, versatility,
health and the alike. Assessment should not be

condensed to past performance alone. Potentials of the employee

condensed to past performance alone. Potentials of the employee

for future performance must also be assessed. A formal definition of performance

appraisal is: It is the systematic evaluations of the individual with respect to his her
performance on the job and his or her potential for development. Performance
Appraisal Comparison

Job Analysis:

Describe work and requirement of a particular job.

Performance Standards
: Translate job requirements into levels of acceptable or

unacceptable performance

Performance Appraisal

: Describe the job-relevant strengths and weaknesses of each individual Objectives

of Performance Appraisal Broadly, performance appraisal serves four major
objectives-

I)Development uses,

II)Administrative uses/decisions,

II)Administrative uses/decisions,

III)Organizational maintenance/objectives, and

IV)Documentation purposes. Performance

Appraisal Process:

Various Steps involved into process are as follows1. Objectives of Appraisal: 2.

Establish job Expectation

3. Design Appraisal programme

4. Appraise performance 5. Performance review 6. Use appraisal Data for

appropriate purposes Objectives of Performance Appraisal

Data relating to performance assessment of employees are recorded, stored, and

used for several purposes. The main purposes of employee assessment are: 1. To
effect promotions based on competence and performance 2. To confirm the
services of probationary employees upon their completing the probationary period
satisfactorily. 3. To assess the training and development needs of employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay
scales have not been fixed.

5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development. 6. To improve communication. Performance appraisal
provides a format for dialogue between the superior and the subordinate, and
improves understanding of personal goals and concerns. This can also have the
effect of increasing the trust between the rater and the rate. 7. Finally, performance
appraisal can be used to determine whether HR programmers such as selection,
training, and transfers have been effective or not. Establish Job Expectations
The second step in the appraisal process is to establish job expectations. This
includes informing the employee what is expected of him or her on the job.
Normally, a discussion is held with his or her superior to review the major duties
contained in the job description. Individuals should not be expected to begin the job
until they understand what is expected of them. Design appraisal Programme:

Formal versus Informal Appraisal

: The first step in designing an appraisal programme is to decide whether the

appraisal should be formal or informal. Formal appraisals usually occur at specified
time periods-once or twice a year.

Formal appraisals are most often required by the a year. Formal appraisals are most
often required by the organization for the purpose of employee evaluation. Informal
performance appraisal can occur whenever the supervisor feels the need for
communication. For example, if the employee has been consistently meeting or
executing standards, and informal appraisal may be in order to simply recognize
this fact. Discussions can take to be ensuring that the discussion in held in private.
Who are Raters?

Raters can be immediate supervisors, specialists from the HR department,

subordinates, peers, committees, clients, self-appraisals, or a combination of
several.

Immediate Supervisor is the fit candidate to appraise the performance of his or her
subordinates. There are three reasons in support of this choice. No one is more
familiar with the subordinate’s performance than his or her superior. Another
subordinate’s performance than his or her superior.

Another reason is that the superior has the responsibility of managing a particular
unit. When the task of evaluating a subordinate a given to another person, the
superior authority may be undermined seriously. Finally, training and development
of subordinates is an important element in every supervisor may be the logical
choice to conduct the performance evaluation. Who are Raters?

Subordinates

can assess the performance of their superiors. The use of this choice may be useful
in assessing an employee’s ability to communication, delegate work, allocate
resources, disseminate information, resolve intra-personal conflict, and deal with
employees on a fair basis. But the problem with subordinate evaluation is that the
supervisors tend to become more popular, not effective leadership, but by mere
gimmicks.

Peers
are in a better position to evaluate certain facts of job performance that the
subordinates or supervisors cannot do. Such facts include contribution to workgroup
projects, interpersonal effectiveness, communication skills, reliability and initiative.
Unfortunately, friendship or animosity may result in distortion of evaluation.
Further, when reward allocation is based on peer evaluation, serious conflicts
among co-workers may develop. Finally all peers may join together to rate each
other high.

Who are Raters

Clients may be members within the organization who have direct contact with the
rate and make use of an output (good and services) this employee provides.
Interest, courtesy, dependability and innovativeness are but few of the qualities for
which

clients can offer rating information. Clients, external

clients can offer rating information. Clients, external

to the organization, can also offer similar kinds of information.

Where superiors, peers, subordinates and clients, make appraisal it is called the
360-degree system of appraisal .

Problems of Rating

Performance appraisals are subject to a wide variety of inaccuracies and biases

referred to as ‘rating errors’. These errors occur in the rater’s observation;
judgment, information procession and can seriously

affect assessment results.

The most common rating errors are leniency or severity, central tendency, halo
effect, rater effect, primacy and regency effects, perceptual set, performance
dimension behavior, spill over effect and status effect. What should be rated?

One of the steps in designing an appraisal programme is to determine the

evaluation criteria .It is obvious that the criteria should be related to the job. The six
criteria for assessing performance are:

1.Quality

: The degree to which the process or result of carrying out an activity approaches
perfection in terms of either conforming to some ideal way of performing the
activity, or fulfilling the activity’s intended purpose.

2.Quantity
: The amount produced, expressed in monetary terms, number of units, or number
of competed activity cycles.

3. Timeliness

: The degree to which an activity is completed or a result produced, at the earliest

time desirable from the standpoints of both coordinating with the outputs of others
and of maximizing the time available for other activities.

4. Cost of Effectiveness

: the degree to which the use of the organizations resources9e.g.human, monetary,

technological and material) is maximized in the sense of getting the highest gain or
reduction in loss from each unit or instance of use of a resource.

5.Need for supervision:

The degree to which a job performer can carry out a job function without either
having to request supervisory assistance or requiring supervisory intervention to
prevent an adverse outcome.

6. Interpersonal impact

: The degree to which a performance promotes feeling of self-esteem, goodwill and

cooperation among co-workers and subordinates.

Methods of Appraisal

Numerous methods have been devised to measure the quantity and quality of
employees’ job performance. Each of the methods discussed could be effective for
some purposes, for some organizations. None should be dismissed or accepted as
appropriate except as they relate to the particular needs of the organization or of a
particular type or employees. Broadly, all the approaches to appraisal can be
classified into I) Past-oriented methods II) Future-oriented methods Past-oriented
Methods

Rating scales

Checklists

Forced choice method

Critical incident method

Field review method

Field review method

Performance tests and observations

Annual confidential reports

Essay method

Cost accounting approach

Comparative evaluation approach Future Oriented tests:

Management by objective

360-Degree appraisal

Psychological appraisals

Assessment centers Use of appraisal data

The final step in evaluation process is the use of appraisal data. The data and
information generated through performance evaluation must be used by the HR
dept. In one way or the other, data and information outputs of performance-
appraisal programme can critically influence these coveted employer-employee
reward opportunities. Specifically, the data and information will be useful in the
following areas in HRM:

Remuneration administration

Validation of selection programmes

Employee training and development programmes

Promotion, transfer and lay-off decisions

Grievance and discipline programmes