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HRM
The human resources of an organization consist of all people who perform its activities.
Human resource management (HRM) is concerned with the personnel policies and managerial practices
and systems that influence the workforce.
In broader terms, all decisions that affect the workforce of the organization concern the HRM function.
According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to
achieve organizational and individual goals”.
Human Resource Management outlines the importance of HRM and its different functions in an
organization. It examines the various HR processes that are concerned with attracting, managing,
motivating and developing employees for the benefit of the organization.
GOAL of HRM
To meet the needs of the business and management (rather than just serve the interests of
employees);
To link human resource strategies / policies to the business goals and objectives;
To find ways for human resources to "add value" to a business;
To help a business gain the commitment of employees to its values, goals and objectives
Nature of HRM
i. Broader function: Human Resource Management is a comprehensive function because it is about
managing people in the organization. It covers all types of people in the organization from
workers till the top level management.
ii. People oriented: Human resource is the core of all the processes of human resource management.
So HRM is the process which brings people and organizations together so that their goals can be
achieved.
iii. Action oriented: Human resource management believes in taking actions in order to achieve
individual and organizational goals rather than just keeping records and procedures.
iv. Development oriented: Development of employees is an essential function of human resource
management in order to get maximum satisfaction from their work so that they give their best to
the organization.
v. Integrating Mechanism: HRM tries to build and maintain cordial relations between people
working at various levels in the organization.
vi. Future oriented: HRM is very important activity which helps organization to achieve its
objectives in future by providing well motivated and competent employees.
ROLE OF HRM
The Human Resource Department deals with management of people within the organization. There are a
number of responsibilities that come with this title.
First of all, the Department is responsible for hiring members of staff; this will involve attracting
employees, keeping them in their positions and ensuring that they perform to expectation.
Besides, the Human Resource Department also clarifies and sets day to day goals for the organization.
It is responsible for organization of people in the entire Company and plans for future ventures and
objectives involving people in the Company.
Function of HRM
The main function of human resource management is classified into two types:
Managerial Function;
Operative Function.
Operative Function
1. Procurement – It involves attracting and employing individuals with suitable knowledge, skills,
experience, and aptitude necessary to perform various jobs.
2. Development – It aims to train and develop employees to improve and update their knowledge
and skills in order to help them perform better.
3. Compensation – It involves rewarding employees monetarily and through fringe benefits for
their contributions to the organization. •
4. Integration – It deals with employees as a social group; it contributes to the organization and
enhances group interaction and communication.
5. Maintenance – It deals with maintaining employee safety and creating a sense of security among
the employees.
Sources of Recruitment
Every organization has the option of choosing the candidates for its recruitment processes from two kinds
of sources: internal and external sources.
The sources within the organization itself (like transfer of employees from one department to other,
promotions) to fill a position are known as the internal sources of recruitment.
Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the
external sources of recruitment.
Manpower Planning
Manpower planning is the process of reviewing an organization’s employee, or manpower, needs and
then selecting the best people for certain jobs. The end goal of successful manpower planning is a
smoothly running operation, and the long-term result of manpower planning is a company able to achieve
its goals, because its employees fill the right places within the organization.
Induction
After a new employee is hired into an organization, it is necessary he or she be familiar to organization's
philosophies, goals and objectives, policies, procedures, rules and regulations and practices. This
orientation is called employee induction
Induction can be defined as The HRM function that systematically and formally introduces new
employees to the organization, the jobs, the work groups to which they will belong and the work
environment where they will work.
Induction is designed to achieve following objectives:-
UNIT 3
PERFORMANCE APPRAISAL
"Performance appraisal is the systematic description of an employee's job relevant strengths and
weaknesses. “ In a Performance appraisal, the employee's merits such as initiative, regularity, loyalty,
personality, etc., are compared with others. Then each employee is rated or ranked. That is, he is given a
particular rank such as First Rank, Second Rank, etc. So if an employee has the best attendance then he is
given First Rank in attendance and so on.
Terms in Performance Appraisal Terms involved in performance appraisal are:-
Rater: The person who evaluates the employees is called the Rater or Appraiser.
Ratee: The employee who is rated is called the Ratee.
Rating: The process of performance appraisal is called Rating
Ranking
Employee ranking is an attempt to evaluate employees relative to each other, by using some criteria to
identify the better performers versus the less better performance. The result, at least in theory, is a list of
employees in some sort of ranked order.
Rating - This involves rating an employee on a scale which ranges from ‘poor’ to ‘excellent’
performance. The employee is assessed on this scale based on their performance or traits which are
considered relevant to the job.
Components of remuneration
Wages and Salary:-Wages refer the hourly rates of pay, salary refers to the monthly rate pay, wages and
salaries are subject to annual increments. They differ temp. To emp. Depend upon the nature of job,
seniority and merits
Incentives:- also called ‘payment by result’- paid in addition to wages and salaries. Depend upon
productivity, sale profit- there are
Individual incentives scheme
group incentives scheme
Fringe benefits:- These include such employee benefits as provident fund, medical care, hospitalization,
accident relief, health insurance, canteen uniform and like
Perquisites:- These are allowed to executives and include company car, club membership, paid holidays,
furnished house and like
Challenges of remuneration
Skill Based Pay
Pay Reviews
Pay Secrecy
Comparable worth
International Pay
4th Unit
TO INCREASE PRODUCTIVITY
An instructor can help employees increase their level of performance on their assignment. Increase in
human performance leads to increase in the operational productivity and also the increase in the profit of
the company.
TO IMPROVE QUALITY
Better-trained workers are less likely to make operational mistakes. It can be in relationship to the
company or in reference to the intangible organizational employment atmosphere.
Training:
1. It's a short term process.
2. Refers to instruction in technical and mechanical problems
3. Targeted in most cases for non-managerial personnel
4. Specific job related purpose
5. Development is a never ending process
Development:
1. It is a long term educational process.
2. Refers to philosophical and theoretical educational concepts
3. Managerial personnel
4. General knowledge purpose
5. Training methods are limited
6. Training is one of the tools of development.
PURPOSE OF TRAINING
1. To improve Productivity: Training leads to increased operational productivity and increased
company profit.
2. To improve Quality: Better trained workers are less likely to make operational mistakes.
3. To improve Organizational Climate: Training leads to improved production and product quality
which enhances financial incentives.
4. To increase Health and Safety: Proper training prevents industrial accidents.
5. Personal Growth: Training gives employees a wider awareness, an enlarged skill base and that
leads to enhanced personal growth.
PURPOSE OF DEVELOPMENT
Management development attempts to improve managerial performance by imparting Knowledge,
Changing attitudes, Increasing skills
Training Process
Identifying Training Needs- Training need is a difference between standard performance and actual
performance. Hence, it tries to bridge the gap between standard performance and actual performance. The
gap clearly underlines the need for training of employees. Hence, under this phase, the gap is identified in
order to assess the training needs.
Establish Specific Objectives- After the identification of training needs, the must crucial task is to
determine the objectives of training. Hence, the primary purpose of training should focus to bridge the
gap between standard performance and actual performance. This can be done through setting training
objectives. Thus, basic objective of training is to bring proper match between man and the job.
Select Appropriate Methods- Training methods are desired means of attaining training objectives. After
the determination of training needs and specification of objectives, an appropriate training method is to be
identified and selected to achieve the stated objectives. There are number of training methods available
but their suitability is judged as per the need of organizational training needs.
Implement Programs- After the selection of an appropriate method, the actual functioning takes place.
Under this step, the prepared plans and programs are implemented to get the desired output. Under it,
employees are trained to develop for better performance of organizational activities.
Evaluate Program- It consists of an evaluation of various aspects of training in order to know whether
the training program was effective. In other words, it refers to the training utility in terms of effect of
training on employes' performance.
Feedback Finally, a feedback mechanism is created in order to identify the weak areas in the training
program and improve the same in future. For this purpose, information relating to class room, food,
lodging etc. are obtained from participants. The obtained information, then, tabulated, evaluated, and
analyzed in order to mark weak areas of training programs and for future improvements.
Training Methods
A large variety of methods of training are used in business. Even within one organization different
methods are used for training different people. All the methods are divided into two classifications for:
On-the-job Training Methods:
Coaching
Mentoring
Job Rotation
EMPLOYEE ENGAGEMENT
“A heightened emotional connection that an employee feels for his or her organization, that influences
him or her to exert greater discretionary effort to his or her work". “Employee engagement is the level
of commitment and involvement an employee has towards their organization and its values.”
What is Employee Engagement ? Its a step ahead than Employee Satisfaction:
Components of engagement
- Rational Engagement: the involvement, understanding and motivation an employee has in his/her
job.
- Emotional Engagement: the attitudinal attachment an employee has to his/her company.
Categories of Employee
1. Engagement Engaged--"Engaged" employees are builders.
2. Not Engaged--Not-engaged employees tend to concentrate on tasks rather than the goals Actively
3. Disengaged--The "actively disengaged" employees are the "cave dwellers.
Measurement of Employee Engagement
Step I: Listen.
Step II: Measure current level of employee engagement.
Step III: - Identify the problem areas.
Step IV: Taking action to improve employee engagement by acting upon the problem areas.
Engagement activities
“This is about how we create the conditions in which employees offer more of their capability and
potential.” –David Macleod
1. Involve employees in your business planning process- Every 6 months, or even quarterly, present
the most important issues in your company and the actions made to address those issues. Involve
your team in planning ahead, assessing opportunities and coming up with improvement ideas for
your business strategy