HUMAN RESOURCE MANAGEMENT

Definition
Human Resource Management is the
planning, organizing, directing and controlling
of
the
procurement,
development,
compensation integration, maintenance and
separation of human resources to the end that
individual,
organisational,
and
social
objectives are accomplished.

Importance of HRM
Human Resource Management is important to all
managers despite their various functions because of the
following reasonsHire the right person for the job
Low attrition rate
Ensure people do their best
Time saved in not conducting useless interviews
Avoid legal action for any discriminatory
Safety laws are not ignored
Equity towards employee in relation to salary etc.
Effective training
Avoid unfair labour practices

Distinction between
Personnel Management,
Human Resource
Management
And
Human Resource
Development

Difference Between HRM and PM - 1

Sr.No

Dimension

PM

HRM
Aim to go beyond
contract

Employment
contract

Careful dimension
of written contract

Rules

Importance of
Impatience with
devising clear rules rules

Guide to
Procedures
management action

Business need

Behaviour referent

Norms/ customs &

practices

Values/mission

Managerial task
vis--vis labour

Monitoring

Nurturing

Key relations

Labour

Customer

Initiatives

Piecemeal

Integrated

Speed of decision

Slow

Fast

Difference Between HRM and PM - 2

Sr.No
Dimension
PM
HRM
9

Management role

Transactional

Transformational

10

Communication

Indirect

Direct

11

Management skill

Negotiation

Facilitation

12

Selection

Separate

Integrated

13

Pay

Job evaluation

Performance related

14

Conditions

Separately
negotiated

Harmonisation

15

Labour
management

Collective
bargaining
contracts

Individual contracts

16

Job categories and

grades

Many

Few

17

Job design

Division of
labour

Team work

Difference Between HRM and PM - 3

Sr.No
Dimension
PM
HRM
18

Conflict handling

Temporary

Climate & culture

19

Training &
Development

Controlled
courses

Learning
Organization

20

Focus for attention

for interventions

Personnel
procedures

Cultural &
structural
strategies

21

Respect for
employees

Labour a tool
expendable &
replaceable

People are assets

& to be used fro
benefit of
organization

22

Shared interests

Organization
interest is
uppermost

Mutuality of
interests

23

Evolution

Precedes HRM

Latest

HRD and HR
HR can be termed as Human Resource
Function or HRM Human Resource
Management
HRD Stands for Human Resource
Development

HRD and HR
HR is all encompassing
HR includes HRD and more
HR goes far beyond the traditional Personnel function
HR is more proactive and change oriented
HR needs competencies of a different nature from
what the traditional personnel function required

HUMAN RESOURCE
MANAGEMENT

Importance of Managing Human Resources

The Importance of Human resource can have
following standpoints:
1. Social Significance
2. Professional Significance
3. Significance for individual Enterprise

Social Significance
Maintain balance
Between Jobs
available and
Job seekers

Making Maximum
Utilization of
resources

HRM,
Enhance Dignity
By Satisfying
Social Needs

Eliminate Waste
or improper use
of Human resource

Providing Suitable
And most
productive
Employment

By helping
people make
their own
decisions

Professional Significance
Maintain Dignity
Of the employee
As human being

Providing
Healthy work
Environment

Proper
Reallocation
of work

Providing Maximum
Opportunities for
Personal
development

Providing healthy
Relationship
between
Work groups

Improving working
Skill and
Capacity

Significance for Individual

Enterprise
Creating
Right attitude

Organization
goals can be
accomplished
by

Effective utilisation
Of available
Human resource

Securing
co-operation of the
Employees to
Achieve Orgn. goals

The Role, Responsibilities and

Functions of HRM
PLANNING

CONTROLLING
Management
Processes

ORGANISING

LEADING
STAFFING

Human Resource Management

Function
1. Conducting job analysis
2. Planning labour needs
3. Selecting candidates
4. Managing wages and salaries
5. Providing incentives and benefits
6. Performance appraisal
7. Communication
8. Training and Development
9. Building employee commitment
10.Employee health and safety
11.Grievance and labour relations

Importance of HRM to all Managers

1. To hire right person for the right job
2. To avoid high manpower turnover
3. To ensure people doing their best
4. To conduct proper interview
5. To avoid legal implications
6. To ensure proper compensation management
7. To ensure safety of workmen and avoid unsafe practices
8. To ensure equity and justice and right pay for right person
9. To ensure implementation of training and development
10. To avoid unfair labour practices

HUMAN RESOURCE PLANNING

Man power planning is now more known as

Human Resource Planning
Man power planning is the first step in
Recruitment and Selection process

It is to decide what position you will have to fill in,

by engaging in
Personnel Planning and Forecasting

Human Resource Planning and Forecasting

HRP is the process by which an organization ensures
that it has the right number and kind of people, at the
right place, at the right time, capable of effectively and
efficiently completing those tasks that will help
organization achieve its overall objectives.
The process of deciding what positions the firm will
have to fill, and how to fill them.

HUMAN RESOURCE FORECASTING

Assess trends in
External labor markets
Current employees
Future organizational plans
General economic trends
Forecast
internal supply

Predict demand

Forecast
external supply

Compare future demand

and internal supply

Plan for dealing with predicted shortfalls or overstaffing

Forecasting Personnel Needs

Staffing plans analyses the expected demand of
manpower and reflect:
1. Projected turnover (by termination and resignation).
2. Quality and skills of employees as per changing needs
3. Strategic decision to upgrade the quality of product or
services or for entering into a new market.
4. Technological and other changes.
5. The Financial resources available

Methods of
Human Resource Planning

Methods of Human Resource Planning

Trend Analysis
It is Study of firms past employment needs over a period
of years to predict future needs
A computation of employees in the firm at the end of
each year for the last five year or so may be done in
order to identify the trends that might continue in future..
Trend analysis can provide an initial estimate.
Employment levels rarely depend upon passage of time
It also depends upon factors like sales volume and productivity.

Methods of Human Resource Planning

Ratio Analysis
A forecasting technique for determining future staff needs
by using ratios between two factors like sales volume and
number of people
It assumes that productivity remains the same.
A forecast based on historical ratio may not be accurate as
every sales person does not have same level of motivation
and hence productivity.

Methods of Human Resource Planning

Scatter Plot
A graphical method used to help identify the relationship
between two variables.
The scatter plot shows how graphically two variables
such as a measure of business activity and firm's staffing
levels are related.

Methods of Human Resource Planning

Scatter Plot
No. of beds in Hosp
200

300
400
500
600
700
800
900

No. of Nurses
240
260
470
500
620
660
820
860

Methods of Human Resource Planning

No. of Nurses

Scatter Plot

No of Beds in a Hospital

Methods of Human Resource Planning

Computerized Forecast
Determination of future staff needs by projecting sales,
volume of production, and personnel required to maintain
this volume of output, using software packages.
Employers can quickly translate projected productivity and
sales levels into forecasts of personnel needs.

Methods of Human Resource Planning

Managerial Judgment
Whichever forecasting is used, managerial judgment play a
big role. Historical trend, ratio, or relationship may not be
similar in future and likely to change. Management
therefore modify the forecast based on projected turnover
and various other issues.

JOB ANALYSIS

Job
Job may be defined as collection or
aggregation of tasks, duties and
responsibilities which as a whole,
are regarded as a regular assignment
to individual employees.

Job Analysis
Job Analysis is the process of studying
and collecting information relating to
the operations and responsibilities of a
specific job. The immediate products of
this analysis are job description and job
specification.

Job analysis involves following steps:

Collecting and recording job information
Checking the job information for accuracy
Writing job description based on information
Using the information to determine the skill, abilities
and knowledge
Updating the information from time to time

Job Description
A list of jobs duties, responsibilities,
reporting relationship, working
conditions, and supervisory
responsibilities.

Job Specification
A list of jobs human requirements
that is, the requisite education, skills,
personality and so on.

JOB ANALYSIS
A process of obtaining all pertinent job facts

Job Description
Job Title
Location
Job summary
Duties
Machine tools etc
Material etc
Supervision
Working condition
Hazards

Job Specification
Education
Experience
Training
Initiative
Physical effort
Responsibilities
Communication skills
Emotional characteristics
Unusual sensory sight etc.

Use of Job Analysis Information

Job description and

Job Specification

Recruiting
&
Selection

Performance
Appraisal

Salary
&
Wages

Training
&
Develop

RECRUITMENT

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

Factors Governing recruitment

External factors

Internal factors
Supply and demand
Recruitment policy
Unemployment rate
HRP
Labour Market
Recruitment Size of the firm
Political
Cost
Social
Growth
Sons of soil
Expansion
Image

Building Pool of Candidate

INTERNAL

EXTERNAL

SOURCES OF RECRUITMENT
INTERNAL
Current Employee
References from present
employee
Databank of former
applicants
Retired Employee
Former employee

EXTERNAL
Advertising
Employment agencies
Temporary help
Executive recruiters
Referrals and walk-ins
College recruiting
Companys web site
Free and fee-paying
Website services

Recruiting Yield Pyramid

It is the historical arithmetic relationships
betweenRecruitment leads and invitees
Invitees and interviews
Interviews and offers made
Offers made and offers accepted

Recruiting Yield Pyramid

50
100

New hires
Offers made (2:1)

150

Candidates interviewed (3:2)

200

Candidates invited (4:3)

1200

Leads generated (6:1)

SELECTION

SELECTION

Selection is the process of

differentiating between
applicants in order to identify
those with a greater likelihood of
success in a job.

Promotion or Transfer
Not dealt with
Recruitment and Selection
- Interchangeable Terms
- Positive and negative process

Factors affecting selection

External environment
Supply and demand of specific skill
Unemployment rate
Legal and political considerations
Companys image

Internal environment
Companys policy
HRP
Cost of hiring

Process of selection

Starts with the preliminary interview

Ends with contract of employment
Different Process for different organization
Different process for different job in same organization
Selection easy for shop floor worker
Selection of managers are crucial
Affected by internal and external environment
Mutual decision making

Process of selection

R
E
J
C
T
E
D

Preliminary Interview
Selection tests
Employment Interview
Reference & background
Selection Decision
Medical Examination
Job Offer
Employment Contract
Evaluation

Basic Testing Concepts

Generally tests are administered

to determine the applicants
- ability,
- aptitude and
- personality.

Ability tests
Helps to determine how well one can perform his task
Aptitude tests
Helps to determine a persons potential to learn in a given area
Personality tests
To measure a prospective employees motivation to
function in a particular working environment
Interest tests
To measure an individuals activity preferences. (For
career change or when there is multiple career option
available)

Selection Tests
Tests

Description

Thomas Profiling Identifying behavioural requirement for

the job
MBTI

Understanding personality type

PAPI

Behaviour in work place

16 PF

Measuring personality factors

ASUFA

Locus of control

Interviews
Formal, in depth conversation conducted to evaluate
the applicants acceptability.
Adapted to unskilled, skilled, managerial and
professional employees.
Two-way exchange of information, the interviewers
learn about the applicant, and the applicant learns
about the organization

Shortcomings of interviews
Absence of reliability
Lack of validity
Biases

Interview may be
One to one Interview

Only two participants

1. Interviewer
2. Candidate

Sequential Interview
1

Involves series of interviews

Candidates moves from room to room

Panel Interview

Two or more interviewers

Formal

Objectives of interview
1. Helps obtain additional information from applicant
2. Facilitates giving general information to applicant
3. Help build image of the organization

INDUCTION
61

INDUCTION

A welcoming process
The idea to welcome a newcomer
Make the employee feel at home
Generate in him a feeling that it is his own job

62

INDUCTION

Induction therefore is a technique by

which
a
new
employee
is
rehabilitated into his surroundings
and introduced to the practices,
policies and purposes of the
organisation.
63

INDUCTION

It is important to introduce new employees into an organization

The subject seldom receives careful attention
Higher turnovers during the first year of employment occur
The wastage in financial and human terms needs no elaboration
can be because of to faulty recruitment and selection procedures
People leave organizations shortly after joining.
Attrition may be attributed to treatment initial received
Social adjustment that newcomers face are not appreciated
Unfamiliar environment may cause loneliness

64

The Organizations Responsibility for Induction

To help new employees to adjust to their new surroundings, to
gain their confidence and commitment and to avoid costly levels
of employee turnover all require positive attitude and actions on
the part of employing organizations.
Organisations responsibility are based on:
The induction phase is much more critical and stressful to the
new employee than it is often recognized to be.
The length of the critical phase will naturally vary and depend
on the adaptability of each individual, but it may well last for
many months.
65

The Organizations Responsibility for Induction

The causes contributing to the general problem may be found

in the psychological and sociological factors affecting
organizational and group behaviour, as described above.
The induction phase needs to be very carefully planned and
supervised, as the first stage in staff development.

66

Induction Programme
The induction of new employees has to be
continuously monitored and evaluated.
Very short induction programme may
cause harm
Confusion may occur
Increase in insecurity

67

Induction Programme

It needs to be comprehensive and effective

it needs a clear view
Aim and set objectives have to be produced
Responsibility lies with HR
Line and HR managers have complementary parts to play

68

PURPOSE AND OBJECTIVE OF INDUCTION

That they should understand the function, aims and

objectives of the organization as a whole.
That they should understand the specific objectives to be
achieved by their actions, and their personal responsibilities
and expected contributions to the achievement of these
objectives.
That the necessary initial training and work experience
should be planned to enable them to fulfill these
responsibilities
69

PURPOSE AND OBJECTIVE OF INDUCTION

That comprehensive information should be provided on

the following subjects:
1. Conditions of employment, salary, pension
arrangements, holidays, sickness rules
2. Working arrangements in particular, software
packages used, reporting relationship and any key facts about
the job not yet covered
3. The system of HR management and especially the
arrangements and opportunities for staff development.
4. The whole range of facilities provided for the
benefit, welfare and recreation of employees
5. Basic information about catering arrangements,
health and safety rules, and what to do if there are any
problems are most important
70

PURPOSE AND OBJECTIVE OF INDUCTION

That positive measure should be taken to

facilitate the social adaptation of new employees
(e.g. notifications in house journals, introducing
newcomers).
That the induction programme should be
continuously monitored and its total effectiveness
assessed.
71

Interviews for Induction

Induction interviews need to be given to all

employees taking up jobs for the first time
Should for both internal and external
candidate
HR manager responsibility to supervise
career building of newcomer
Line manager undertakes the interviews
72

The three main purposes of the interviews

To provide all the necessary information

that new jobholder need about the job and its
attendant circumstances.
To allow them to ask questions about any
matters on which they are uncertain.
To give reassurance and to develop positive
attitudes, confidence and motivation
73

Induction interviews should cover following points:

The job description and person specification so that job holders
fully understand what is required of them.
How the job relates to the work and purposes of the group and
the organization as a whole.
All the attendant circumstances of the job (e.g. pay, conditions,
welfare, etc.)
The performance appraisal system and what part the jobholder
will be required to play.
An assessment of any training and developmental needs that
require immediate action.
The norms or unwritten rules, if any, in the organization (e.g.
Friday is always dress-down day.)
74

Social Adaptation
A source of difficulty in the induction phase.
Managers cannot control the intragroup
relationships
Develop psychological awareness of group and
individual behavior in order to settle down
The process of socialization is infinitely subtle
and varies with each individual
Induction programme need to be very flexible
and to take full account of individual differences
and needs.

The summary of the main elements of

INDUCTION SYSTEM
Initial Interviews
Conducted by line manager and HRM, covering :
Details of the induction programme
Organizational objectives and functions
Personal objectives and job
Work conditions and facilities
Personal needs, problems etc.

Training
On the job
specific courses
(internal / external)

Work Experience
Job variety
Visits & attachments

Training
Assistance by line
manager and members
of the work group

Follow-up interviews
Conducted by line manager and personnel officer in the form of performance appraisal
and career development interviews. Check programmes and general welfare