1 | Page Chapter 1 Introduction to human resource management Definition - Edwin Flippo defies HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” Features of HRM or characteristics or nature 1. HRM involves management functions like planning, organizing, directing and controlling 2. It involves procurement, development, maintenance of human resource 3. It helps to achieve individual, organizational and social objectives 4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology. 5. It involves team spirit and team work. Scope of HRM/functions of HRM The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows 1. Human resources planning :- Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design :- Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. 3. Recruitment and selection :- Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM. 4. Orientation and induction :- Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. 5. Training and development :- Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot
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Chapter 1 Introduction to human resource management
Definition - Edwin Flippo defies HRM as
“planning, organizing, directing, controlling of procurement, development, compensation,
integration , maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”
Features of HRM or characteristics or nature
1. HRM involves management functions like planning, organizing, directing and
controlling
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management
psychology communication, economics and sociology.
5. It involves team spirit and team work.
Scope of HRM/functions of HRM
The scope of HRM refers to all the activities that come under the banner of HRM. These
activities are as follows
1. Human resources planning :-
Human resource planning or HRP refers to a process by which the company to
identify the number of jobs vacant, whether the company has excess staff or shortage of
staff and to deal with this excess or shortage.
2. Job analysis design :-
Another important area of HRM is job analysis. Job analysis gives a detailed
explanation about each and every job in the company. Based on this job analysis the
company prepares advertisements.
3. Recruitment and selection :-
Based on information collected from job analysis the company prepares
advertisements and publishes them in the news papers. This is recruitment. A number of
applications are received after the advertisement is published, interviews are conducted
and the right employee is selected thus recruitment and selection are yet another
important area of HRM.
4. Orientation and induction :-
Once the employees have been selected an induction or orientation program is
conducted. This is another important area of HRM. The employees are informed about the
background of the company, explain about the organizational culture and values and work
ethics and introduce to the other employees.
5. Training and development :-
Every employee goes under training program which helps him to put up a better
performance on the job. Training program is also conducted for existing staff that have a lot
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of experience. This is called refresher training. Training and development is one area were
the company spends a huge amount.
6. Performance appraisal :-
Once the employee has put in around 1 year of service, performance appraisal is
conducted that is the HR department checks the performance of the employee. Based on
these appraisal future promotions, incentives, increments in salary are decided.
7. Compensation planning and remuneration :-
There are various rules regarding compensation and other benefits. It is the job of
the HR department to look into remuneration and compensation planning.
8. Motivation, welfare, health and safety :-
Motivation becomes important to sustain the number of employees in the
company. It is the job of the HR department to look into the different methods of
motivation. Apart from this certain health and safety regulations have to be followed for
the benefits of the employees. This is also handled by the HR department.
9. Industrial relations :-
Another important area of HRM is maintaining co-ordinal relations with the union
members. This will help the organization to prevent strikes lockouts and ensure smooth
working in the company.
Challenges before the HR manager/before modern personnel management
Personnel management which is know as human resource management has adapted itself to the
changing work environment, however these changes are still taking place and will continue in
the future therefore the challenges before the HR manager are
1. Retention of the employees :-
One of the most important challenge the HR manager faces is retention of labour
force. Many companies have a very high rate of labour turnover therefore HR manager
are required to take some action to reduce the turnover
2. Multicultural work force :-
With the number of multi cultural companies are increasing operations in
different nations. The work force consists of people from different cultures. Dealing
with each of the needs which are different the challenge before the HR manager is
integration of multicultural labour work force.
3. Women in the work force :-
The number of women who have joined the work force has drastically increased
over a few years. Women employees face totally different problems. They also have
responsibility towards the family. The organization needs to consider this aspect also. The
challenge before the HR manager lies in creating gender sensitivity and in providing a
good working environment to the women employees.
4. Handicapped employees :-
This section of the population normally faces a lot of problems on the job, very
few organization have jobs and facilities specially designed for handicapped workers.
Therefore the challenge before the HR manager lies in creating atmosphere suitable for
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such employees and encouraging them to work better.
5. Retrenchment for employees :-
In many places companies have reduced the work force due to changing
economic situations, labourers or workers who are displaced face sever problems. It also
leads to a negative atmosphere and attitude among the employees. There is fear and
increasing resentment against the management. The challenge
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before the HR manager lies in implementing the retrenchment policy without hurting
the sentiments of the workers, without antagonizing the labour union and by creating
positive attitude in the existing employees.
6. Change in demand of government :-
Most of the time government rules keep changing. While a lot of freedom is given
to companies some strict rules and regulations have also been passed. The government
has also undertaken the disinvestment in certain companies due to which there is fear
among the employees regarding their job. The challenge before the HR manager lies in
convincing employees that their interest will not be sacrificed.
7. Initiating the process of change :-
Changing the method of working, changing the attitude of people and changing
the perception and values of organization have become necessary today. Although the
company may want to change it is actually very difficult to make the workers accept the
change. The challenge before the HR manager is to make people accept change.
Chapter 2 Job analysis, job design, job evolution
Define job analysis
A job is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information relating
to operations and responsibilities of a specific job.
Need/importance/purpose/benefits of job analysis
Def: - A job is defined as a collection of duties and responsibilities which are given together to
an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job.
The following are the benefits of job analysis.
1. Organizational structure and design :-
Job analysis helps the organization to make suitable changes in the organizational
structure, so that it matches the needs and requirements of the organization. Duties are
either added or deleted from the job.
2. Recruitment and selection :-
Job analysis helps to plan for the future human resource. It helps to recruit and
select the right kind of people. It provides information necessary to select the right
person.
3. Performance appraisal and training/development :-
Based on the job requirements identified in the job analysis, the company decides
a training program. Training is given in those areas which will help to improve the
performance on the job.
Similarly when appraisal is conducted we check whether the employee is able to work
in a manner in which we require him to do the job.
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4. Job evaluation :-
Job evaluation refers to studying in detail the job performance by all individual.
The difficulty levels, skills required and on that basis the salary is fixed. Information
regarding qualities required, skilled levels, difficulty levels are obtained from job
analysis.
5. Promotions and transfer :-
When we give a promotion to an employee we need to promote him on the basis
of the skill and talent required for the future job. Similarly when we transfer an employee
to another branch the job must be very similar to what he has done before. To take these
decisions we collect information from job analysis.
6. Career path planning :-
Many companies have not taken up career planning for their employees. This is
done to prevent the employee from leaving the company. When we plan the future career
of the employee, information will be collected from job analysis. Hence job analysis
becomes important or advantageous.
7. Labour relations :-
When companies plan to add extra duties or delete certain duties from a job,
they require the help of job analysis, when this activity is systematically done using
job analysis the number of problems with union members reduce and labour relations
improve.
8. Health and safety :-
Most companies prepare their own health and safety, plans and programs based
on job analysis. From the job analysis company identifies the risk factor on the job and
based on the risk factor safety equipments are provided.
9. Acceptance of job offer :-
When a person is given an offer/appointment letter the duties to be performed by
him are clearly mentioned in it, this information is collected from job analysis, which is
why job analysis becomes important.
Methods of job analysis
Def: - A job is defined as a collection of duties and responsibilities which are given together to
an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job.
There are different methods used by organization to collect information and conduct the job
analysis. These methods are
1. Personal observation :-
In this method the observer actually observes the concerned worker. He makes a
list of all the duties performed by the worker and the qualities required to perform those
duties based on the information collected, job analysis is prepared.
2. Actual performance of the job :-
In this method the observer who is in charge of preparing the job analysis actually
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does the work himself. This gives him an idea of the skill required, the difficulty level of
the job, the efforts required etc.
3. Interview method :-
In this method an interview of the employee is conducted. A group of experts
conduct the interview. They ask questions about the job, skilled levels, and difficulty levels.
They question and cross question and collect information and based on this information job
analysis is prepared.
4. Critical incident method :-
In this method the employee is asked to write one or more critical incident that has
taken place on the job. The incident will give an idea about the problem, how it was
handled, qualities required and difficulty levels etc. critical incident method gives an idea
about the job and its importance. (a critical means important and incident means anything
which takes place in the job)
5. Questioner method :-
In this method a questioner is provided to the employee and they are asked to answer
the questions in it. The questions may be multiple choice questions or open ended questions.
The questions decide how exactly the job analysis will be done. The method is effective
because people would think twice before putting anything in writing.
6. Log records :- (2 marks concept)
Companies can ask employees to maintain log records and job analysis can be done
on the basis of information collected from the log record. A log record is a book in which
employees record /write all the activities performed by them on the job. The records are
extensive as well as exhausted in nature and provide a fair idea about the duties and
responsibilities in any job.
7. HRD records :-
Records of every employee are maintained by HR department. The record contain
details about educational qualification, name of the job, number of years of experience,
duties handled, any mistakes committed in the past and actions taken, number of
promotions received, area of work, core competency area, etc. based on these records job
analysis can be done.
Job design
Definitions: -
Job design is the process of
a) Deciding the contents of the job.
b) Deciding methods to carry out the job.
c) Deciding the relationship which exists in the organization. Job analysis helps to
develop job design and job design matches the requirements of the job with the human
qualities required to do the job.
Methods of job design
There are various methods in which job design can be carried out. These methods
help to analysis the job, to design the contents of the and to decide how the job must be carried
out .these methods are as follows :- (5 marks each)
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I. Job rotation
II. Job enlargement
III. Job enrichment
I. Job Rotation :-
Job rotation involves shifting a person from one job to another, so that he is able
to understand and learn what each job involves. The company tracks his performance on
every job and decides whether he can perform the job in an ideal manner. Based on this he
is finally given a particular posting.
Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to
the marketing department whole he learns all the jobs to be performed for marketing at his
level in the organization .after this he is shifted to the sales department and to the finance
department and so on. He is finally placed in the department in which he shows the best
performance
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II. Job enlargement :-
Job enlargement is another method of job design when any organization
wishes to adopt proper job design it can opt for job enlargement. Job enlargement
involves combining various activities at the same level in the organization and adding
them to the existing job. It increases the scope of the job. It is also called the horizontal
expansion of job activities.
Jon enlargement can be explained with the help of the following example - If
Mr. A is working as an executive with a company and is currently performing 3
activities on his job after job enlargement or through job enlargement we add 4 more
activities to the existing job so now Mr. A performs 7 activities on the job.
It must be noted that the new activities which have been added should belong
to the same hierarchy level in the organization. By job enlargement we provide a
greater variety of activities to the individual so that we are in a position to increase the
interest of the job and make maximum use of employee’s skill. Job enlargement is also
essential when policies like VRS are implemented in the company.
III. Job enrichment :-
Job enrichment is a term given by Fedric herzberg. According to him a
few motivators are added to a job to make it more rewarding, challenging and
interesting. According to herzberg the motivating factors enrich the job and
improve performance.
In other words we can say that job enrichment is a method of adding some
motivating factors to an existing job to make it more interesting. The motivating
factors can be
a) Giving more freedom.
b) Encouraging participation.
c) Giving employees the freedom to select the method of working.
d) Allowing employees to select the place at which they would like to work.
e) Allowing workers to select the tools that they require on the job.
f) Allowing workers to decide the layout of plant or office.
Job enrichment gives lot of freedom to the employee but at the same time increases
the responsibility. Some workers are power and responsibility hungry. Job
enrichment satisfies the needs of the employees.
Human resource planning/manpower planning
Def. of human resource planning :-
Human resource planning can be defined as the process of identifying the number of
people required by an organization in terms of quantity and quality. All human resource
management activities start with human resource planning. So we can say that human
resource planning is the principle/primary activity of human resource management.
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From human resource planning the organization identifies how many people it
has currently and how many people will be required in future. Based on this information
major human resource decisions are taken.
Process of HRP/MP//steps in HRP/MP
Human resource planning can be defined as the process of identifying the number of
people required by an organization in terms of quantity and quality. All human resource
management activities start with human resource planning. So we can say that human
resource planning is the principle/primary activity of human resource management.
1. Personnel requirement forecast :-
This is the very first step in HRP process. Here the HRP department finds out
department wise requirements of people for the company. The requirement consists of
number of people required as well as qualification they must posses.
2. Personnel supply forecast :-
In this step, HR department finds out how many people are actually available in
the departments of the company. The supply involves/includes number of people along
with their qualification.
3. Comparison:-
Based on the information collected in the 1st and 2
nd step, the HR department
makes a comparison and finds out the difference. Two possibilities arise from this
comparison
a. No difference :-
It is possible that personnel requirement = personnel supplied. In this
case there is no difference. Hence no change is required.
b. Yes, there is a difference :-
There may be difference between supply and requirement. The
difference may be
i. Personnel surplus
ii. Personnel shortage
4. Personnel surplus :-
When the supply of personnel is more than the requirement, we have personnel
surplus. We require 100 people, but have 125 people. That is we have a surplus of 25
people. Since extra employees increase expenditure of company the company must try to
remove excess staff by methods of
i. Layoff
ii. Termination
iii. VRS/CRS
5. Personnel shortage :-
When supply is less than the requirement, we have personnel shortage. We require
100 people; we have only 75 i.e. we are short of 25 people. In such case the HR
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department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new
employee
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Advantages of HRP/need/importance/role/benefits
Human resource planning can be defined as the process of identifying the number of
people required by an organization in terms of quantity and quality. All human resource
management activities start with human resource planning. So we can say that human resource
planning is the principle/primary activity of human resource management.
The process of HRP plays a very important role in the organization. The
importance of HRP can be explained as follows.
1. Anticipating future requirement :-
Thru this process of HRP, the company is able to find out how many people
will be required in future. Based on this requirement the company could take further
actions. This method also helps the company to identify the number of jobs which
will become vacant in the near future.
2. Recruitment and selection process :-
The recruitment and selection process is a very costly affair for a company.
Many companies spend lakhs of rupees on this process. Therefore recruitment and
selection must be carried out only if it is extremely necessary. HRP process helps to
identify whether recruitment and selection are necessary or not.
3. Placement of personnel :-
Since the HRP process is conducted for the entire organization, we can
identify the requirements for each and every department. Based on the requirement,
we can identify existing employees and place them on those jobs which are vacant.
4. Performance appraisal :-
HRP make performance appraisal more meaningful. Since feedback is provided
in performance appraisal and employee is informed about his future chances in same
company, the employee is motivated to work better. Information for all this is collected
from HRP process.
5. Promotion opportunity :-
HRP identifies vacancies in the entire organization including all the branches of
all the company. Therefore when the company implements promotion policy it can
undertake its activities in a very smooth manner.
Recruitment selection and induction
Define recruitment :-
Recruitment is a process of searching for prospective employees and stimulating
them to apply for jobs.
Objectives of recruitment
Recruitment fulfills the following objectives
1. It reviews the list of objectives of the company and tries to achieve them by
promoting the company in the minds of public.
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2. It forecasts how many people will be required in the company.
3. It enables the company to advertise itself and attract talented people.
4. It provides different opportunities to procure human resource.
Methods of recruitment/sources (10/5 marks)
Recruitment is a process of searching for prospective employees and stimulating
them to apply for jobs
Companies can adopt different methods of recruitment for selecting
people in the company. These methods are
1. Internal sources
2. External sources
The sources can be further explained with the help of following diagram
Sources of recruitment (manpower supply)
Internal source External sources
1. Promotion 1. Management consultant
2. Departmental exam 2. Employment agency
3. Transfer 3. Campus recruitment
4. Retirement 4. News paper advertisement
5. Internal advertisement 5. Internet advertisement
6. Employee recommendation 6. Walk in interview
Internal sources of recruitment :-
Internal sources of recruitment refer to obtaining people for job from inside the company.
There are different methods of internal recruitment
1. Promotion :-
Companies can give promotion to existing employees. This method of
recruitment saves a lot of time, money and efforts because the company does not have
to train the existing employee. Since the employee has already worked with the
company. He is familiar with the working culture and working style. It is a method of
encouraging efficient workers.
2. Departmental exam :-
This method is used by government departments to select employees for higher
level posts. The advertisement is put up on the notice board of the department. People
who are interested must send their application to the HR department and appear for the
exam. Successful candidates are given the higher level job. The method ensures proper
selection and impartiality.
3. Transfer :-
Many companies adopt transfer as a method of recruitment. The idea is to
select talented personnel from other branches of the company and transfer them to
branches where there is shortage of people.
4. Retirement :-
Many companies call back personnel who have already retired from the
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organization. This is a temporary measure. The method is beneficial because it gives a
sense of pride to the retired when he is called back and helps the organization to
reduce recruitment selection and training cost.
5. Internal advertisement :-
In this method vacancies in a particular branch are advertised in the notice
board. People who are interested are asked to apply for the job. The method helps in
obtaining people who are ready to shift to another branch of the same company and it is
also beneficial to people who want to shift to another branch.
6. Employee recommendation :-
In this method employees are asked to recommend people for jobs. Since the
employee is aware of the working conditions inside the company he will suggest
people who can adjust to the situation. The company is benefited because it will
obtain.
Advantages of internal recruitment
1. Internal methods are time saving.
2. No separate induction program is required.
3. The method increases loyalty and reduces labour turnover.
4. This method is less expensive.
Disadvantages of internal recruitment
1. There is no opportunity to get new talent in this method.
2. The method involves selecting people from those available in the company so there is
limited scope for selection.
3. There are chances of biased and partiality.
4. Chances of employee discontent are very high.
External methods/sources of recruitment
External sources of recruitment refer to methods of recruitment to obtain people from outside
the company. These methods are
1. Management consultant :-
Management consultant helps the company by providing them with managerial
personnel, when the company is on the look out for entry level management trainees
and middle level managers. They generally approach management consultants.
2. Employment agencies :-
Companies may give a contract to employment agencies that search, interview
and obtain the required number of people. The method can be used to obtain lower level
and middle level staff.
3. Campus recruitment :-
When companies are in search of fresh graduates or new talent they opt for