Human Resource Management(HRM)

Shubhpreet KaurGulzar Group of Institutes

Financial Resources

Physical Resources

Human Resources

Organizational Goals

WHAT 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".

What 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.

"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.

And 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

Some eminent personalities…

Dr. UdaiPareek

Dr. T V Rao

Frederick Winslow Taylor

King Hammurabi

Evolution of HRM

Procure and develop

Procure, develop and motivate

assets

Nature of HRM Integral part of process of management.

Comprehensive Function

Pervasive Function

People Oriented

Based on human relations

Continuous process

Science as well as art

Recent origin

Interdisciplinary

Basic to all functional areas.

Scope of

HRM

Introduction to HRM

Employee Hiring

Employee Remune-

ration

Employee motivatio

n

Employee Mainte -

nance

Industrial Relations

Prospects of HRM

Scope of HRM

Industrial Relation Aspect

Welfare Aspect

Personnel Aspect

Objectives of HRMPersonnel Objectives

Functional Objectives

Organizational Objectives

Societal Objectives

Functions of HRM w.r.t objectives

Societal Objectives

Legal Compliance

Union-Management

Relations

Functions

Organizational

HRP

Employee Relations

Selection

T nd D

Appraisal

Placement

Assessment

FunctionsFunctional

Appraisal

Placement

Assessment

Functions (cntd…)

Personal

T nd D

appraisal

Placement

Compensation

Assessment

Policies, Principles and Procedures Policy : 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 HRM

Importance for organization

Importance for employees

Importance for society.

Compare HRD and HRMHRM HRD

Entire management process

Subset of HRM

Scope is wider Narrow scope

Emphasis on employee as a whole

Training and Development of employees

Takes decisions Depends on decisions of HRM

Limitations of HRM

Recent origin

Lack of Top Management Support

Improper Implementation

Inadequate Development Programmes.

Inadequate Information.

Systems approach to HRM An 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

Human Resource Management System

Transforms inputs to outputs.

HR system interacts closely with all other subsystems.

Quality of people in all subsystems depends upon policies of HRM System

Personnel Productive Human Resource

Organizational Design

PlaceCompositi

on

Place Of HR Department Size Matters!!!!

In case of a small unit…………

Small unit

owner

Production manager

Sales Manager

Office Manager

Personnel assistant

Accountant

Large Unit

Chairman / MD

Director Production

Director Finance

Director HRM

Director Marketing

Director R&D

Composition

Director HRM

Manager -Personnel

Manager Admin Manager - HRD Manager - IR

HRP

Hiring

Grievance handling

Compensation

PR

Canteen

Medical

Welfare

Transport

Legal

Appraisal

Training And Development

HRM Environment Proactive not Reactive………

Factors affecting HRM Environment

External Environment

Internal Environment

External Environment Economic Factors

Political – Legal Factors

Social and Cultural Factors

Technological Factors

Unions

Professionalism

SUPPLIERS CUSTOMERS COMPETITORS GLOBALIZATION

Internal Environment

MISSION

POLICIES

ORGANIZATIONAL CULTURE

ORGANIZATIONAL CONFLICT

Human Resource Planning What??? When??? Where????

HOW???

HRP…… The 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 HRPAssessing manpower

Assessing skill requirement.

Determining T&D needs

Anticipating shortage and surplus of staff.

Controlling wage and salary costs

Optimum use of HR

Process of HRPAnalysis of

objectives and strategic plans of the company

Preparing manpower inventory

Manpower forecasting

Manpower plans

T& D Programmes

Appraisal of manpower planning

Analysis of objectives and strategic plans Must 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 inventory Manpower 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 Qualification…

Helps to find out gaps…

Manpower Forecasting• Analysis of staff

during past 5 yearsEmployment

Trends

• Death, resignation

• retirementReplacement

Needs

• Utilization of existing manpowerproductivity

Manpower Forecasting• A situation when person fails

to come for work when he is scheduled for work.

Absenteeism

• Timely steps needed.Expansion and Growth

• Workload analysis to be done.

Work Study

Manpower Plans

Decide required number of

people.

Develop programmes

and strategies.

Development plans are designed

Training and Development Plans Not 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 Planning Monitor and control….

Involves allocation and utilization of HR over time…

Reveal deficiencies and helps to take corrective action on time…

Serves as a base for future manpower planning.

Types of HRP Short Term HRP - to match the individuals with the

job.

Long Term HRP – to fulfill future vacancies.

Short Term HRPA weak

Incumbent

Changing of the man

Change in contents of

the job

Changing the job and the

man

Removal of incumbent.

A strong incumbent

Assigning additional

duties

Assigning some special

problems

Advice

Change in job

An unexpected vacancy.

Long Term HRP

Projecting Manpower

Requirements

Taking stock of Existing Manpower

Recruitment and Selection

Manpower Development

Benefits of HRP Reduced Labor Costs.

Optimum Utilization of manpower

Identification of Gaps in existing manpower.

Improvement in overall business planning.

Career Succession Planning

Creates awareness in an organization.

Growth of Organization

Beneficial to the country.

Job Analysis

Definitions… Job 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 Henderson

A 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 Robbins

Data relating to job can be grouped under:

Job Identification

Nature of job

Operations involved

Materials and equipment required

Personnel qualities required

Relation of job with other jobs.

Process

Organizing and planning

Obtaining current job

design information

Conducting “needs research”

Establishing priorities

Collecting job data

Redesigning the job

Preparing job descriptions and

classifications

Developing job specifications

Techniques

PAQ – Position Analysis Questionnaire

MPDQ – Management Position Description Questionnaire

FJA – Functional Job Analysis Worker oriented approach.

Examines fundamental components of ‘data, people and things’.

Identifies performance standards and training requirements.

4 dimensions

Extent to which –

Specific instructions are necessary to perform the job

Reasoning and judgement are required.

Mathematical ability is required.

Verbal and language facilities are required.

Job Analysis

Job Description

Job Specification

Job Description The 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 JDProper Job Title

Job Summary

Job Location

Duties and responsibilities

Machines, Tools and Materials

Working Conditions

Relation to other jobs

Job 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???

Physical Characteristics.

Psychological and Social Characteristics

Mental Characteristics

Personal Characteristics.

Job Evaluation A systematic way of determining the value/worth of a

job in relation to other jobs in an organization.

Job Evaluation v/s Performance Appraisal

POINT JOB EVALUATION PERFORMANCE APPRAISAL

DEFINE RELATIVE WORTH OF JOB RELATIVE WORTH OF JOB HOLDER

AIM DETERMINE WAGES RATES FOR DIFFERENT JOBS

DETERMINE INCENTIVES AND REWARDS

SHOWS HOW MUCH A JOB IS WORTH HOW WELL AN INDIVIDUAL IS DOING AN ASSIGNED WORK

Process of Job EvaluationGaining Acceptance

Creating Job Evaluation team

Finding jobs to be evaluated.

Analyzing and preparing Job Description

Selecting method of evaluation

Classifying Jobs

Installing the programme

Reviewing Periodically

Methods of Job Evaluation

• Ranking Method

• Job Grading Method

Qualitative

• Point System

• Factor-Comparison Methods

Quantitative

Ranking Method All 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 Raters

Selection of key jobs

Ranking of all jobs.

Rank Monthly salary

Accounts Officer -------

Accountant ------

Senior Accounts Officer -----

Accounts clerk -----

Computer operator -----

Purchase Assistant -----

Office Boy -----

Peon -----

Merits

• Easy to understand and explain

• Requires less time

• Economical

Demerits

• Not based on any standard criterion.

• Chances of inaccurate ranking

• Leaves out some factors

Job Grading Method A 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 descriptions

Selection of key jobs

Grading key jobs

All job are put in relevant grades.

Grade Description

1 Very simple tasks requiring minimum mental ability. Basically consisting of manual work.

2 Jobs requiring clerical work. Basically consisting of desk work and minimum manual work. Minimum training required.

3 Straight forward tasks, but requiring to apply established procedures and to guide others.

4 Routine work but involving some elements of responsibility for answering non-routine queries and exercise some measure of control.

5 Involve decision making and administrative work. Professional qualifications are required.

Merits

• Systematic criterion is followed.

• Simple to understand and operate

• Easy to determine pay scales.

• Used in government services

Demerits

• Not suitable for large organizations

• With increase in number of jobs, difficulty increases.

• Likelihood of human bias.

Factor Comparison Method Each 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 factors

Steps involved Select key jobs

Find factors for evaluation

Rank selected jobs under each factor

Assign value to each factor

Determine wage rates for each job

All other jobs are compared with the list of key jobs.

Merits

• Analytical

• Relative and valid

• Money values are assigned in fair way

• Flexible

Demerits

• Difficult to understand, explain and operate.

• Time consuming.

• Use of same criteria to assess all jobs.

Point Method Most 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.

Degree Define

1 Able to carry out simple calculations, High school educated

2 Does all clerical Operations, computer literate, graduate

3 Handles 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.

Merits

• Superior and widely used

• Elimination of bias at every stage

• Remains unaffected even if jobs change

Demerits

• Complex

• Time consuming