Module 1: HRM

By: Prachi Agarwal r.prachiagarwal@gmail.com

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Meaning
HRM is the part of the organization concerned with the people dimension. Human Resource Management is a process of bringing people and organisations together so that the goals of each are met. HRM is both a staff, or support function that assists line employees, and a function of every managers job. The policies and practices involved in carrying out the people or human resource aspects of a management position (recruiting, screening, training, rewarding, and appraising).
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Definition
Acc. To Flippo, human resource management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished.

Features of HRM
People oriented Action oriented Individual oriented Development oriented Pervasive function Continuous function Future oriented Staff function Integrating Mechanism Comprehensive Function
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Scope of HRM
The Indian Institute of Personnel Management has specified the scope of HRM as: Personnel aspect: Manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc. Welfare aspect: It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
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 Industrial relations aspect: This covers unionmanagement relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Objectives of HRM To help the organisation reach its goals To employ the skills and abilities of the workforce efficiently To provide the organisation with well-trained and well-motivated employees To increase to the fullest the employees job satisfaction and self-actualisation To develop and maintain a quality of work life To communicate HR policies to all employees To be ethically and socially responsive to the needs of society
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Evolution of HRM The commodity concept The factor of production concept The paternalistic concept The humanitarian concept The human resource concept The emerging concept

Functions of HRM

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Staffing Function Activities Recruitment the process of attracting a pool of qualified applicants that is representative of all groups in the labor market Selection the process of assessing who will be successful on the job, and the communication of information to assist job candidates in their decision to accept an offer

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Goals of Training and Development Function Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities Orientation and socialization help employees to adapt Four phases of training and development
Employee training Employee development Organization development Career development
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Motivating Function Activities in HRM concerned with helping employees exert at high energy levels. Managing motivation includes: Job design Setting performance standards Establishing effective compensation and benefits programs Understanding motivational theories

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Maintenance Function Activities in HRM concerned with maintaining employees commitment and loyalty to the organization.
Health Safety Communications Employee assistance programs

Effective communications programs provide for 2way communication to ensure that employees are well informed and that their voices are heard.
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Composition of a HR / Personnel Department

Owner/Manager

Manager-Personnel

ManagerAdministration

Manager-HRD

Manager-IR

Appraisal

Training & Development

PR

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievances Handling

Compensation

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Qualification of HR Manager Educational qualification Personal attributes : a. Intelligence b. Communicative ability c. Decisiveness d. Human skills e. Executing skills f. Leadership skills Training and experience Professional Attributes
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Role of HR Manager
As a specialist As an information source As a change agent As a controller As a liaison man As a housekeeper As a fire fighter

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Duties and Responsibilities

Placing the right man on the right jobs. Orientation of new employees. Training employees on the jobs. Developing cooperative relationships in the organization. Interpreting the companys policies and procedures. Developing potential of every employee. Protecting health and safety of employees.

 Administering various employee benefit programmes. Ensuring that the various labour laws are duly complied with. Coordinating human resource activities of different departments.

Opportunities and Challenges Size of workforce Composition of workforce Employee expectations Changes in technology Life style changes Environmental challenges

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HRP - Definition

The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.

In light of the organizations objectives, corporate and business level strategies, HRP is the process of analyzing an organizations human resource needs and developing plans, policies, and systems to satisfy those needs

Introduction Human resource planning is a process by which an organization ensures that

it has the right number and kinds of people at the right place at the right time capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.

RIGHT PLACE

RIGHT PEOPLE

RIGHT TIME

RIGHT CAPABILITIES

Importance Future Personnel needs Optimum utilization of available human resource Developing training and retraining programmes Formulating compensation policies Gaining competitive advantage Meet needs of expansion / downsizing programmes

Factors affecting HRP

HRP Process
Environment
Organizational Objectives and Policies

HR Needs Forecast HR Programming

HR Supply Forecast

HRP Implementation Control and Evaluation of Programme Surplus Restricted Hiring, Reduced Hours, VRS etc Shortage Recruitment and Selection

1) Environmental Scanning The systematic monitoring of the external forces influencing the organization: Economic factors Technological changes Demographic changes Political and legislative issues

2) Organizational Objectives & Policies

Downsizing / Expansion Acquisition / Merger / Sell-out Technology upgradation / Automation New Markets & New Products External Vs Internal hiring Training & Re-training

3) HR Demand Forecast Process of estimating future quantity and quality of manpower required for an organization 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

Good reasons to conduct demand forecasting Quantify the jobs Determine the staff-mix Prevent shortages of people Monitor compliance with legal requirements.

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

Ratio-Trend Analysis - Studying past ratios, ie No. of Workers Vs Volume of Sales, forecasting future ratios and adjusting for future changes in the organisation

Forecasting Techniques Work-Study Technique - Used when length of operations and amount of labour required can be calculated.

Delphi Technique - From a group of experts the personnel needs are estimated.

4) HR Supply Forecast Process of estimating future quantity and quality of manpower available internally & externally to an organization

Supply Analysis Existing Human Resources Internal Sources of Supply External Sources of Supply

Internal Supply Inflows & Outflows - The number of losses & gains of staff is estimated. Turnover Rate - refers to rate of employees leaving. = ( No. of separations in a year / Avg no. of employees during the year ) x 100. Absenteeism - unauthorised absence from work = ( total absentees in a year / Avg no. of employees x No. of working days) x 100

Internal Supply

Current personnel level outflows + inflows = internal supply Inflows ( transfers, promotions) Outflows (resignations, discharges, demotion, retirements, promotions)

External Supply External recruitment Selection & placement Advertisements Manpower Consultants Campus Recruitment Employee Referrals

5) HR Programming Balancing Demand and Supply

Vacancies filled in by the right employee at the right time

6) HR Plan Implementation

Recruitment, Selection & Placement Training & Development Retraining & Redeployment Retention Plan Downsizing Plan

7) Control & Evaluation

Are Budgets, Targets & Standards met? Responsibilities for Implementation & Control Reports for Monitoring HR Plan

Barriers to HRP Process Insufficient realization of importance of HR plans. Union resistance. Cost-Benefit misconceptions. Absence of coordination. Future uncertainity.

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

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Need Swift changes in the environment like Technology Labor market conditions Competition etc.

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Job Analysis: A Basic Human Resource Management Tool

Tasks Responsibilities Duties
Human Resource Planning Recruitment Selection Training and Development Performance Appraisal Compensation and Benefits Safety and Health

Job Descriptions

Job Analysis

Job Specifications

Employee and Labor Relations

Knowledge

Skills

Abilities

Legal Considerations
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Process of job analysis

Determining the purpose of job analysis

STEP 1
Gathering background information about the job

STEP 2
Choosing representative jobs for analysis

STEP3
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Collecting the relevant job information

STEP 4
Reviewing gathered information

STEP 5

STEP 6
Job Description Job Specification
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Techniques for data collection

Interviews

Observation

Questionnaire

Job Data
Checklists Dairy

Technical Conference

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Observation Method

Analyst observes incumbent

Directly Videotape

Useful when job is fairly routine Drawbacks: Workers may not perform to expectations Time consuming

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Interview Method Individual

Several workers are interviewed individually The answers are consolidated into a single job analysis

Group
Employees are interviewed simultaneously Group conflict may cause this method to be ineffective

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Questionnaires Employees answer questions about the jobs tasks and responsibilities Each question is answered using a scale that rates the importance of each task Position Analysis Questionnaire (PAQ)
A structured, behavioral questionnaire 194 items in 6 categories
Information input Mental processes Work output Relationships Job context Other characteristics
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Diary Method Employees record information into diaries of their daily tasks
Record the time it takes to complete tasks

Must be over a period of several weeks or months

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 Technical Conference Method Uses experts to gather information about job characteristics

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Job Description Job Description is a document that specifies the tasks, duties, and responsibilities of the job and should certainly be relevant and accurate. - Clyde E. Witt

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A Pro Forma Job Description Statement Job title Job purpose Code number Job holder title Job location Job type Department Reporting authority

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Number of staff members reporting to this post Job summary Job duties Authority limits Working conditions required

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Job Specification Job specification is the process of inferring the human trait requirements presumed to be necessary for successful job performance. - R. Harvey and M.Wilson It is a statement of human qualifications necessary to do the job.

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A Pro Forma Job Specification Statement Position title Department/office Educational qualifications Training requirements Work based skills Competencies Behavioral skills Other attributes required

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Challenges Affecting the Effectiveness of Job Analysis

Employees Anxiety Management attitude towards job analysis Undue importance to job holders Environmental influence Absence of follow up action

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Job Evaluation
The process of determining the relative value of each job to the company. A systematic process of analyzing and evaluating jobs to determine the relative worth of each job in an organization. Different from job analysis and performance appraisal.

Objectives of Job Evaluation

To determine position and place of a job in the organizational hierarchy. To clarify responsibility and authority associated with each job. To maintain internal and external consistency. To ensure employee satisfaction with respect to the compensation. To avoid discrimination of any kind in wage administration. To provide the basis for classification of new or changed jobs.

 Internal consistencyPay structure that corresponds to high-worth jobs being paid more than low-worth jobs, with clear relationships between jobs.

External consistencyPay structure that corresponds to the community wage structure.

Equity Theory
Pay Equity (also Distributive Fairness) An employees perception that compensation received is equal to the value of the work performed. A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve. Individuals form a ratio of their inputs to outcomes in their job and then compare the value of that ratio with the value of the ratio for other individuals in similar jobs.

Equity Perceptions

Outcomes Outcomes Inputs Inputs

Equity Theory Predictions

Person A
Outputs Inputs Outputs Inputs Outputs Inputs

Person B
Outputs Inputs Outputs Inputs Outputs Inputs

<

Under-reward

= >

Equity
Over-reward

Thank You

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