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WHAT IS HRM?
According to P Subba Rao, HRM is managing the functions of employing, developing and compensating human resources resulting in creating and developing human relations and
utilization of human resources with a view to contribute proportionately to the organizational, individual and social goals.
WHAT IS ENVIRONMENT ?
Environment are all those forces which have their bearing on the functioning of a system (in this case the HR department )
Why do we analyse the environment?
ENVIRONMENT of HRM
External
PEST model
Political-legal eg Labour laws (article 15-prohibits discrimination on race, religion, sex, 24prohibits employment of children in factories, hazardous jobs) Economic Economic growth, industrial production, agriculture,population, national per capita income, money, suppliers, customers etc
Social/cultural People influenced by heredity, cultural experiences eg. Culture of Tata's is different from Birla's , in Japanvalue long term associations
Technological When technology changes- employees need to be trained, way hiring is done changes, telecommuting
Internal
Strategy - the direction in which the organisation moves, objectives Task skills, required , task significance have an impact on motivation and satisfaction Leadership- experience and style of leadership will influence HRM programmes Organisation culture and conflicts
contd..
Organisation culture and conflicts get the best people and set them free - late JRD Tata This belief shaped the culture of the Tatas IBM is known for service GE- product innovation is the hallmark L & T known for professional approach
Conflicts Personal v/s organisational goals Rights v/s duties Personal ethics v/s organisational ethics
SCOPE OF HRM
CONTROL Human Resource Audit Human Resource Accounting Human Resource Information System MAINTENANCE Remuneration Motivation Safety Social Security Industrial Relations Appraisal
HRM
DEVELOPMENT Training Career Development Organization Development Internal Mobility
OBJECTIVES OF HRM
To create and utilize an able and motivated workforce To establish desirable working relationships To create facilities and opportunities for individual or group development To maintain high employee morale To identify and satisfy individual and group needs To provide fair, acceptable and efficient leadership To create a favorable atmosphere
FUNCTIONS OF HRM
Need to align organizational goals with that of the HR strategy To ensure effective use of people and provide better returns to the organizations in terms of ROI
Based on the objectives, competitive scenario, strategies, major initiatives and action plan- each functional head draws up the resource plans at all levels for the year such requirements are supported and justified The plan is finally broken into month wise requirement
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Process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives Also known as Manpower Planning
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Shortage of certain categories of employees and/or variety of skills Rapid changes in technology, marketing, management, etc., and the consequent need for new skills Change in organization design and structure affecting manpower demand Labour laws affecting the demand for and supply of labor
PURPOSE OF HRP
HR PLANNING CONSIDERATIONS
Organizational growth
New products, services, areas, industries New skills required Organizational stage
Strategy of the organization whether organisation wants to grow, acquisitions, mergers-may mean more employees or lay offs etc Growth and Expansion of Business whether in embryonic stage, growth, maturity- will affect HRP
Labour market people with skills and abilities that can be tapped as per need- emergence of professional, technical, educational institutes(CII estimates that by 2015, 30 million skilled workers in sectors like health care, banking & financial services, construction will be needed in India
OBJECTIVES OF HRP
To recruit and retain the human resource of required quantity and quality To foresee the employee turnover and make the arrangements for minimizing turnover To meet the needs of the programmes of expansion, diversification, etc. To assess the surplus or shortage of human resources and take measures
To minimize imbalances caused due to nonavailability of human resources of right kind, right number in right time and right place
IMPORTANCE OF HRP
"if you don't know where you are going, any road will get you there." Lewis Carrol
HR PLANNING PROCESS
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ENVIRONMENTAL SCANNING
External Forces
Economic Factors Technological changes Demographic changes Political issues Social concerns Government Regulation Employment opportunities vis--vis unemployment levels Competitors strategy
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Internal factors
Product mix and capacity utilization Acquisition and mergers Expansion operations and technological up gradation Wages revision and bonus payment Working environment and conditions Changes in ownership and Boards of Directors Morale and motivation of new managers Reorganization and induction of new managers
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Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organization
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HR DEMAND FORECASTING
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FORECASTING TECHNIQUES
Managerial Judgment Ratio trend analysis Mathematical Work Study Techniques Others
Managerial Judgment
Estimatesasking
down or bottom-up
Rule
Delphi
techniqueasking a group of experts, distinguishing feature is the absence of interaction among experts groupsreaching a group consensus in open discussion
Nominal
Study of past ratios and forecasting future ratios, making some allowances for changes
(eg. The ratio between the number of workers and sales in an organisation )
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Mathematical
Statistical
regression analysis
Productivity
employee
Staffing
EXAMPLE
1. Planned output for next year
20,000 units 2. Standard hours per unit 5 3. Planned hours for the year 100,000 4. Productive hours per man/year 2,000 (allowing normal overtime, absenteeism, idle time) 5. Number of direct workers required
(3 divided by 4)
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HR SUPPLY FORECASTING
Supply analysis covers Existing human resources Internal sources of supply External sources of supply
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Existing human resources (through HR Audit) Skills Inventory: personal data, skills, salary & job, company data, capacity of individual etc. Management Inventory: work history, strength & weakness, career goals, personal data, previous duties etc. Internal Sources: Techniques generally used are: Inflow and outflow Productivity level(increase in productivity will reduce the requirement and vice versa) Movement among jobs Turnover rate (no. of separations during the year X 100 avg. no. of employees during the year
External Supply: University, college, Recruiting agency, open job market, Experienced employee market. individuals after early retirement. Ex-Army Etc.
GAP ANALYSIS :
After the forecasting of HR demand and supply, the two must be balanced Gap
SOLUTION ANALYSIS:
Solution analysis is the development of strategies for closing the gaps through applying different strategies like: Recruitment & selection Placement, Training and development Retention activities, Downsizing plan etc..
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STRATEGIC HR INITIATIVES
Strategic HR initiatives
Recruit new employees Rehire retirees part time Work current staff overtime Subcontract work to another company Hire temporary staff Redesign job process so that fewer employees are needed
Freeze hiring Reduce work hours Across the board pay cuts Layoffs Employee training Switch to variable plan ay Expand operations Reduce outsourced work
HR PLAN IMPLEMENTATION
Managerial Succession Planning Deciding how to fill the most important executive posts in the organization Ensuring a suitable supply of successors for current and future senior or key jobs
Includes Development of replacement charts Portray middle-to-upper level management positions that may become vacant in the near future List information about individuals who might qualify to fill the positions
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BENEFITS OF HRP
Offsets uncertainties Helps to anticipate the cost of salary enhancement, better benefits, etc. Lower HR costs through better HR management Foresee the need for redundancy and plans to check it More timely recruitment Create reservoir of talent Prepares people for future Expand or Contract Cut Costs Succession Planning
HR plan to be integrated with the organisations strategic plan Top management to be supportive Not to start with an overly complex system Balance between qualitative and quantitative approaches HR personnel to understand the role of HRP processes Healthy communications between HR personnel and line managers
JOB ANALYSIS
WHAT IS A JOB?
A job is a bundle of related tasks
DEFINITION.
The US Department of labor defined job analysis as the process of determining, by observation and study, and reporting pertinent information relating to the nature of a specific job.
It is the determination of the tasks which comprise the job of the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others.
JOB ANALYSIS
The job and not the person an important consideration in job analysis
It simply highlights what are the minimum activities that are entailed in a job
1. Organizational Analysis Overview of various jobs in the organization and the linkages between them and the contribution o various jobs towards achieving organizational efficiency and effectiveness 2. Selection of jobs for analysis 3. Collection of Data 4. Preparation of Job description tasks, duties, responsibilities 5. Preparation of Job Specification personal attributes required in terms of education, training aptitude and experience to fulfill the job description
Tasks
Responsibilities
Duties
Training and Development Performance Appraisal Compensation and Benefits Safety and Health Employee and Labor Relations Legal Considerations Job Analysis for Teams
Job Analysis
Job Descriptions
Job Specifications
Knowledge
Skills
Abilities
SKILLS RANGE
Does the job cover a reasonable but not too extensive range of different tasks? Are there opportunities to use knowledge and skills associated with effective performance of the job?
Can the individual make full use of their skills and develop their skill base?
JOB PURPOSE
RELATIONSHIPS
Are the formal relationships clearly specified and related to the achievement of the objectives? Is there opportunity to develop working relationships within and across the departments boundaries? Are colleagues available with whom the post holder can discuss professional issues ?
JOB OUTCOMES
Can the post holder see the result of their efforts? Can the results of the post holders efforts be recognised? Does the post holder have the opportunity to influence their own levels of performance?
Rewards Are the rewards appropriate and obtainable? Are the rewards linked directly with the performance of the post holder?
Difficult to have a perfect and fully inclusive JD as one moves up in the hierarchy of the organization, a detailed JD becomes very difficult Most orgs would prefer not to describe the job fully, because employees would stick to it and not do anything beyond
Observation Interviews Questionnaire Diary One or more incumbents note duties and frequency of tasks performed Critical Incidents Incumbents brainstorm of critical incidents that happen routinely and infrequently Video recording Review of records
DATA COLLECTED
List of tasks List of decisions made Amount of supervision received Supervision exercised Diversity of functions performed Interaction with other staff Physical conditions Software used
What is the position's objective? What is the Role of the position ? (including key relationships) Essential job functions (State the major responsibilities, indicate and the estimated percent of time devoted to each include descriptive statements)
State briefly the relationship of the position with other positions in your work area
Duty statements should focus on primary, current, normal, daily duties and responsibilities of the position
Related
or similar duties should be combined and written as one statement are to be listed in order of importance, not necessarily frequency
Duties
Commence each statement with a verb eg 'processes', 'maintains', 'records' etc, Avoid using the term 'responsible for' rather describe the action e.g. 'obtains', 'coordinates' etc. Use action verbs which tell what the position does. Examples include "supervises", "programs", "directs" and "analyzes".
Avoid ambiguous terms such as "oversees" or "manages", instead, describe the activities involved in overseeing or managing
Quantify activities when possible. ( Examples may include: How often is the activity performed? How much money does this position manage? What is the volume of work handled? )
Attainment: What educational requirements and specialist knowledge are required? Experience: What roles and tasks should have been occupied? Abilities: What skills need to be deployed for the competent performance of the tasks? Aptitude: What particular talents do they need to possess? Interests: What interest relevant to the work will suggest possession of sought after skills /aptitudes?
The employee
The employees immediate supervisor Other key stakeholders in the organization
Places more emphasis on specifying the individual characteristics that are associated with effective performance
Primary objective is to describe the skills, knowledge, abilities, values, interests and personal characteristics
Competencies are demonstrable characteristics of the person that make performance possible
They are always observable and measurable behaviours In order to perform this job competently, what should the employee be able to do?
Competency based job analysis means describing the job in measurable, observable, behavioral competencies( knowledge, skills and behaviour) that an employee must exhibit to do the job well
Competency based analysis is more worker focused
Traditional job analysis is more job focused (what are the jobs duties) Simply said it is identifying the basic skills required to do a job
EXAMPLES OF COMPETENCIES
General competencies ( reading, writing, mathematical reasoning)
Job Design is a conscious effort to organise tasks, duties and responsibilities into a unit of work to achieve certain objectives
Job Design follows Job Analysis Job Analysis focus is on- job, duties, and specification whereas Job Design focuses on the interest of the individual
Involves 3 steps
1.
2.
3.
The specification of individual tasks The specifications of the methods of performing each task The combination of tasks into specific jobs to be assigned to individuals
Step 1 and 3 determine the content of the job Step 2 -indicates precisely how the job shall be performed
Job Design
The way tasks are grouped can affect productivity and costs (eg assembly line- automobiles) Poorly designed jobs-lead to lower productivity, employee turnover, absenteeism, complaints, unionisation, resignations and other problems
POPULAR APPROACHES
Job enrichment
JOB ROTATION
Job rotation means systematically moving workers from one job to another Moved to a job at the same level that has similar skill requirement Adds variety and reduces boredom Employees gain more skills- gives management more flexibility in scheduling work, adapting to changes and filling vacancies Flip side: training costs increase, rotated employees take time to adjust, may de-motivate ambitious trainees
EXAMPLE
In HDFC Bank all employees are involved in the Job Rotation Schedule
The staff gets rotated in every 6 months and the officers get rotated in every 3 years The flexibility and consideration is given to those employees who have physical difficulty Helps new comers to show their work as per their knowledge and to avoid frauds
Copywriters write the words that help sell the features and benefits of your products to customer, but they rarely come into contact with the customers they're trying to attract. Sales representatives, on the other hand, work directly with clients and have an understanding of their buying behavior. By rotating your copywriter into a sales position, you can give the copywriter a chance to hear first-hand the language customers use when talking about your products or services, objections they have and their core needs and wants
JOB ENGINEERING
Job engineering focuses on:the tasks to be performed methods to be used workflows among employees layout of the workplace performance standards interdependencies among people and machines
JOB ENLARGEMENT
Job enlargement means assigning workers additional same-level activities Motivates employees, psychological value, reduces monotony
Instead of building just one component part of a air conditioner, a team of employees builds the entire product from start to finish.
JOB ENRICHMENT
Job enrichment means redesigning jobs in a way that increases opportunities to experience feelings of responsibility, achievement, growth and recognition Means adding more motivators to a job to make it more rewarding Job becomes enriched when it gives a job holder more decision making, planning and controlling powers
EXAMPLES
In a newsletter publishing company, for instance, one can enrich your assistant editors' jobs by giving an opportunity to move from editing 500-word articles to editing 1,200-word features Letting employees approve checks for vendors for amounts higher than they have in the past Rather than handling all of the details for your next marketing brainstorming meeting, allow your marketing assistant to take the lead
JOB EVALUATION
What a job is? How to analyse a job? How to bring human touch to the job that motivates employee to perform better? When employee performs the job how can it be evaluated? Job Evaluation measures the input required of the employee(skill, responsibility, efforts etc.) for minimum job performance and to translate into specific monetary terms
Job Evaluation
EXERCISES
How do you enrich each of these jobs?
Management Trainee Security guard Computer Lab assistant Professor Receptionist
INDIVIDUAL ASSIGNMENT
From the career section of the national dailies, pick up advertisements (for careers of your choice) of firms from 3 different sectors Compare the various job descriptions for similar positions in each of these sectors
GROUP EXERCISE
Identify a particular job in an organisation Now research the job incumbents roles and responsibilities (interview a person too) Submit an assignment covering 1. What methods could be adopted to best understand this job? 2. Write a JD 3. Discuss and research the web/literature to draw up a set of atleast 8 competencies required to do the job 4. In your opinion what can be the jobs that this incumbent can aspire to climb?