Human Resource Management

Human Resource Management

Human Resource Management

Shubhpreet KaurGulzar Group of InstitutesWHAT IS HR?????Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy.Other terms sometimes used include "manpower", "talent", "labor" or simply "people".

Organizations are composed of people and these people represent one of the organizations most valuable assets. But the resource is seldom given any importance because the organization does not own people like its other capital and physical assets.3What is HRM?The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.A management function that helps managers recruit, select, train and develop members for an organization.HRM may be defined as a set of policies, practices and programmes designed to maximize both personal and organizational goals.4"I believe the real difference between success and failure in a corporation can be very often traced to the question of how well the organization brings out the great energies and talents of its people."Thomas J. Watson, Jr.

(Thomas J. Watson, Jr., was chairman and chief executive officer during IBM's most explosive period of growth. He led the company from the age of mechanical tabulators and typewriters into the computer era. During his leadership, IBM grew from a medium-sized business to one of the dozen largest industrial corporations in the world. When Mr. Watson became Chief Executive Officer in 1956, IBM employed 72,500 people and had a gross income of $892 million. When he stepped down in 1971, employees numbered more than 270,000 and gross revenue was $8.3 billion. Fortune magazine once called him "the greatest capitalist who ever lived."}

5And I'd say one of the great lessons I've learned over the past couple of decades, from a management perspective, is that really when you come down to it, it really is all about people and all about leadership.Steve Case

{Stephen McConnell "Steve" Case (born August 21, 1958) is an American businessman best known as the co-founder and former chief executive officer and chairman of America Online (AOL). Since his retirement as chairman of AOL Time Warner in 2003,[3] he has gone on to build a variety of new businesses through his investment company Revolution. In addition, he serves as chair of the Case Foundation run by his wife Jean Case. In early 2011, he was selected by President Barack Obama to serve as Chairman of the Startup America Partnership [4] and named to the Presidents Council on Jobs and Competitiveness. [5] Steve Case is also a frequent guest on CNBC's Squawk Box and appeared on August 24, 2011 to discuss his initiatives to spur high growth entrepreneurship and job creation on behalf of the Startup America Partnership and the President's Council on Jobs and Competitiveness}

6Some eminent personalities

Dr. Udai Pareek

Dr. T V Rao

Frederick Winslow Taylor

King HammurabiFrederick Winslow Taylor (March 20, 1856 March 21, 1915). He was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management and was one of the first management consultants7Evolution of HRM

Procure and developProcure, develop and motivateassets

Nature of HRMIntegral part of process of management.Comprehensive FunctionPervasive FunctionPeople OrientedBased on human relationsContinuous processScience as well as artRecent originInterdisciplinaryBasic to all functional areas.Objectives of HRM12Functions of HRM w.r.t objectivesFunctionsFunctionsFunctions (cntd)

Policies, Principles and ProceduresPolicy : A plan of action.. A statement of action committing management to a general course of action.Principle: fundamental truth established by research, investigation and analysis.guide the managers in formulating policies, programs and procedures.Procedures: a method for carrying out a policy.

Importance of HRMImportance for organizationImportance for employeesImportance for society. Compare HRD and HRMHRMHRDEntire management processSubset of HRMScope is widerNarrow scopeEmphasis on employee as a wholeTraining and Development of employeesTakes decisionsDepends on decisions of HRMLimitations of HRMSystems approach to HRMAn enterprise cannot work in isolation.Has to adjust its working to suit the environment.Subsystems: Departments that are created in an organization to carry out its business effectively.Each subsystem has a number of further subsystems.

Important Subsystems HR systemProduction SystemFinance SystemMarketing SystemResearch and development System

Human Resource Management SystemTransforms inputs to outputs.

HR system interacts closely with all other subsystems.Quality of people in all subsystems depends upon policies of HRM SystemPersonnel Productive Human Resource Organizational DesignPlace Of HR DepartmentSize Matters!!!!In case of a small unit

Small unitLarge UnitCompositionDirector HRMManager - PersonnelManager AdminManager - HRDManager - IRHRPHiringGrievance handlingCompensationPRCanteenMedicalWelfareTransportLegalAppraisalTraining And DevelopmentHRM EnvironmentProactive not ReactiveFactors affecting HRM EnvironmentExternal Environment Internal EnvironmentExternal EnvironmentEconomic Factors

Political Legal FactorsSocial and Cultural FactorsTechnological FactorsUnionsProfessionalismSUPPLIERSCUSTOMERSCOMPETITORSGLOBALIZATIONInternal EnvironmentHuman Resource PlanningWhat??? When??? Where????

HOW???

HRPThe process by which a management determines how an organization should move from its current manpower position to its desired manpower position.

Right Number and Right Kind of people Right Places Right Time to do things which result in both the organization and individual receiving maximum benefit. Objectives of HRP35Process of HRPAnalysis of objectives and strategic plansMust be integrated with other business policies.Analysis of each plan into sub-plans and detailed programmes.Check out:Future organization structure.Changes in organization structure.Preparing manpower inventoryManpower inventory: refers to assessment of present and potential qualifications of present employees.Avoid situation of over/under staffing.Analysis of current manpower supply. By Department By Function By Occupation By QualificationHelps to find out gapsManpower ForecastingManpower ForecastingManpower PlansTraining and Development PlansNot only for new employees but also for the old ones.Tapping of talent required.The organization has no choice whether to provide training or not..but the only choice is to decide the method/ technique of training.

Appraisal of Manpower PlanningMonitor and control.Involves allocation and utilization of HR over timeReveal deficiencies and helps to take corrective action on timeServes as a base for future manpower planning.Types of HRPShort Term HRP - to match the individuals with the job.Long Term HRP to fulfill future vacancies.Short Term HRPLong Term HRPBenefits of HRP Job AnalysisDefinitionsJob analysis involves identification and precisely identifying the required tasks, the knowledge and skills necessary for performing them and the conditions under which they can be performed. Richard HendersonA systematic exploration of activities within a job. It is a basic technical procedure. One that is used to define the duties, responsibilities and accountabilities of a job. S P RobbinsData relating to job can be grouped under:Process TechniquesPAQ Position Analysis Questionnaire

194 job elements53MPDQ Management Position Description Questionnaire

274 item questionnaire.contains 15 sections54FJA Functional Job AnalysisWorker oriented approach.Examines fundamental components of data, people and things.Identifies performance standards and training requirements. 4 dimensionsExtent to which Specific instructions are necessary to perform the jobReasoning and judgement are required.Mathematical ability is required.Verbal and language facilities are required.

Job AnalysisJob DescriptionJob SpecificationJob DescriptionThe first and immediate product of job analysis is job description. This document is basically descriptive in nature and constitutes a record of existing and pertinent job facts.

Contents of JDJob Specification A statement of minimum acceptable human qualities necessary to perform a job properly.Also known as Standard of personnel for the selection.What it includes???Job EvaluationA systematic way of determining the value/worth of a job in relation to other jobs in an organization. Job Evaluation v/s Performance Appraisal

POINTJOB EVALUATIONPERFORMANCE APPRAISALDEFINERELATIVE WORTH OF JOBRELATIVE WORTH OF JOB HOLDERAIMDETERMINE WAGES RATES FOR DIFFERENT JOBSDETERMINE INCENTIVES AND REWARDSSHOWSHOW MUCH A JOB IS WORTHHOW WELL AN INDIVIDUAL IS DOING AN ASSIGNED WORK

Process of Job EvaluationMethods of Job Evaluation

Ranking MethodAll jobs are ranked in order of their importance from simplest to the hardest order, each job being harder than the previous one in the sequence.Method:Preparation of Job Description.Selection of RatersSelection of key jobsRanking of all jobs.

RankMonthly salaryAccounts Officer-------Accountant------Senior Accounts Officer-----Accounts clerk-----Computer operator-----Purchase Assistant-----Office Boy-----Peon-----Job Grading MethodA number of pre-determined grades or classifications are decided by the committee and each job is assigned to one of the grades.Grades like skilled, unskilled, clerical, administrative..etc..For each grade there is a different rate of wages.Steps :Preparation of grade descriptionsSelection of key jobsGrading key jobsAll job are put in relevant grades.GradeDescription1Very simple tasks requiring minimum mental ability. Basically consisting of manual work.2Jobs requiring clerical work. Basically consisting of desk work and minimum manual work. Minimum training required.3Straight forward tasks, but requiring to apply established procedures and to guide others.4Routine work but involving some elements of responsibility for answering non-routine queries and exercise some measure of control.5Involve decision making and administrative work. Professional qualifications are required.Factor Comparison MethodEach job is rated according to series of factors like mental effort, physical effort, skill needed, responsibility, working conditions etc.Different factors are assigned different weights by importance.Pay will be assigned by comparing weights of factorsSteps involvedSelect key jobsFind factors for evaluationRank selected jobs under each factorAssign value to each factorDetermine wage rates for each jobAll other jobs are compared with the list of key jobs.

Point MethodMost frequently used.Process:Select key jobs and identify factors common to all the identical jobs.Divide each major factor into number of sub factors. Assign point values to degrees after fixing relative value for each key factor.

DegreeDefine1Able to carry out simple calculations, High school educated2Does all clerical Operations, computer literate, graduate3Handles mail, develops contacts, takes initiative, post graduate.

Find maximum number of points assigned to each job. This would help in finding out relative worth of job. once the worth of job is expressed in terms of points, the points are converted into money values keeping in mind the daily/hourly wage rates.