WHAT IS HRM? HRM Definition Function of hrm Scope of HRM
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WHAT IS HRM?
HRM DefinitionFunction of hrmScope of HRM
HRM DefinitionManagement process:- The five basic functions of planning, organizing, staffing,
leading, and controlling.
Human resource management (HRM):- The policies and practices involved in carrying out the
“people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.
Organizing
Leading
Controlling
Planning
Scope of HRM
HRM
Nature of
HRM
Employee
hiring
remuneration
motivation
Industrial
relation
Prospects of
HRM
Functions of HRM
Various function of hrm is planning forecasting recruiting training and development and compensating
Click icon to add picture
Human Resource
management
Functions
Human Resource
DevelopmentEmployee and
Labour Relations
Safety and Health
Compensation
Staffing
Human Resource
Management
FUNCTIONAL AREAS WITHIN HR
EMPLOYMENT / STAFFINGrecruitmentselection
TRAINING & DEVELOPMENT appraisaleducation and development
COMPENSATIONsalaries, wages and benefitsincentive plans
EMPLOYEE RELATIONS grievance resolution union relations
HR PLANNING & RESEARCH forecasting job analysis attitude surveys validation studies
The importance of HRMPeople is the key factor of production.Productivity is the key to measure a
nation’s economic growth potential, and labour quality is the key to improving productivity.
Competition today is the competition for talents.
Since man is the most uncontrollable and unpredictable variable of all production variables, organizational success depends on the management of people.
Key Terms
Organization & individual Organization needs:
Profits, productivity and markets.
Individual needs: Maslow's Need Hierarchy
Physiological needs, security, belonging, self-respect and self-actualization.
Coordinating organization and individual needs: goal of HRM.
People & productivityProductivity:- the measurement of economic growth potential. Productivity formula: input : output
Measurement of productivity:- Productivity of worker is the output per hour. Productivity of equipment is the output per every
dollar invested. Productivity of energy is the output per every unit of
energy consumed.
Managers’ HRM Responsibilities
Line managers Staff managers
Job placing. Orienting new employees. On-job training of
employees. Interpreting company policies
and procedures. Conducting job appraisals. Controlling labour costs. Labour protection and
disciplines.
A line function: directing and managing people in the HRM department.
A coordinating function: coordinating HRM activities across the organization.
Staff functions: Same as the HRM functions
plus labour relations and collective bargaining with the trade unions
Activities of the Major Human Resource Functions
HRM Practices
Human Resource Management Practices
Analysing work and designing jobs
(recruiting)
(selection)
training and development
performance management
compensation
employee relations
Imp
act
of H
um
an R
esou
rce
Man
agem
ent
Type of human capital
Judgment
Experience
training• Intelligence• Relationship• insight
Organizational performance• Quality• Profitability• Customer satisfaction
Behavior of human capital• motivation• Effort
Steps in Recruitment & Selection Process
Planning and ForecastingEmployment or personnel planning:- The process of deciding what positions the firm will have
to fill, and how to fill them.
Succession planning:- The process of deciding how to fill the company’s most
important executive jobs.
What to forecast?:- Overall personnel needs The supply of inside candidates The supply of outside candidates
Forecasting Personnel Needs
Trend analysis:- The study of a firm’s past employment needs
over a period of years to predict future needs.
Ratio analysis:- A forecasting technique for determining future
staff needs by using ratios between a causal factor and the number of employees needed.
Assumes that the relationship between the causal factor and staffing needs is constant
The Scatter Plot
Scatter plot A graphical method used to help identify the relationship between two variables.
Initial Screening
Application Blank
Pre-employment Testing
Interviews
Reference Checks
Medical Examination
Job offer
.
Recruitment
Recruitment
Definition and Meaning of Recruitment:-
According to Edwin B. Flippo,“ Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organisation
Meaning:- Recruitment is the activity that links the employers and the job seekers. A
process of finding and attracting capable applicants for employment
Recruitment
Internal
Recruitment
External
Recruitment
Effective RecruitingExternal factors affecting
recruiting:-Looming undersupply of workersLessening of the trend in outsourcing of jobsIncreasingly fewer “qualified” candidates
Internal factors affecting recruiting:-
The consistency of the firm’s recruitment efforts with its strategic goals
The available resources, types of jobs to be recruited and choice of recruiting methods
Non recruitment HR issues and policies Line and staff coordination and cooperation
planning
processing
selection
recruiting
Selection
Recruitment & Selection
Pool of applicant
selection Job performance
recruitment
Staffing needs
Human Resources planning
Job analysis
The civil service staffing process
28
Planning and approval for staffing
Position announcement
Selection of recruitment strategies
Selection of „tests”
Screen, interview, and checks (reference and other)
Final selection / Negotiate and hire
Postselection considerations
Rec
ruit
men
tS
elec
tion
SelectionSelectionChoosing from a pool of applicants the person or
persons who offer the greatest performance potential.
Selection StepsCompletion of a formal application form. Interviewing.Testing.Reference checks.Physical examination.Final analysis and decision to hire or reject.
Staffing
Job AnalysisHuman Resource Planning RecruitmentSelection
testing hiring
Intelligence
Honesty
Aptitude
Drug
Reference checking
Background investigation
Job descriptio
n
Job specification
Personal
specification
Selection
Training & development
Compensation
& benefits
Labor relationships
Job analysis
Basic Building Blocks of HR Management
Job analysis
Job description
Job specifition
Process of selection
Job Analysis: A Basic Human Resource Management Tool
34
Tasks Responsibilities Duties
Job Analysis
Job Descriptions
Job Specifications
Knowledge Skills Abilities
Human Resource Planning
Recruitment
Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Safety and Health
Employee and Labor Relations
Legal Considerations
Job Analysis for Teams
Job description work to b
done
Job specification (necessary personal
characters
Job analysis
Job analysisWorkEffort directed toward producing or accomplishing results.
JobA grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee.
Task
distinct activity for specific purpose
Duty large segment of work
Position
one or more duties for 1 person
Cont.
Job DesignOrganizing tasks, duties, and responsibilities into a productive unit of work.Person/job FitMatching characteristics of people with characteristics of jobs.
Job Requirements
Relationship of Job Requirements
Recruitment
Selection
Performance Appraisal
Training and Development
Training and Development
Compensation Management
Compensation Management
Determine recruitment qualificationsDetermine recruitment qualifications
Provide job duties and job specifications for selection process
Provide job duties and job specifications for selection process
Provide performance criteria for evaluating employees
Provide performance criteria for evaluating employees
Determine training needs and develop instructional programs
Determine training needs and develop instructional programs
Provide basis for determining employee’s rate of pay
Provide basis for determining employee’s rate of pay
Nature of job design
Nature of Job DesignJob Enlargement Broadening the scope of a job by expanding
the number of different tasks to be performed.
Job Enrichment Increasing the depth of a job by adding the
responsibility for planning, organizing , controlling, and evaluating the job.
Job Rotation The process of shifting a person from job to
job. a process whereby employees rotate in and
out of different jobs.
Job Descriptions and Job Specifications
Job DescriptionIdentification of the tasks, duties, and responsibilities of a job
Job SpecificationThe knowledge, skills, and abilities an individual needs to perform a job satisfactorily.
Personal specifition means qualities and gets to perform
specific job
Job description and personal specification
Testing
TestingUsed to further screen applicants by
gathering additional job-relevant information.
Common types of employment tests:IntelligenceAptitudePersonalityInterests
Cognitive (Mental) Abilities
AchievementMotor and
Physical Abilities
Personality and
Interests
What Tests Measure
Other testing methodPersonality
testingPhysical testingHonesty testingDrug testingReferences
The Big Five Personality Dimensions
Personality DimensionCharacteristics of Person Scoring
Positively on Dimension
Extraversion 2) Agreeableness 3) Conscientiousness 4) Emotional stability 5) Openness to
experience
Outgoing, talkative, social, assertive
Trusting, good-natured, cooperative, soft-hearted
Dependable, responsible, achievement-oriented, persistent
Relaxed, secure, unworried
Intellectual, imaginative, curious, broad-minded
Interviewing
Why an Interview? Exchange sufficient & necessary
information to decide suitability Social and ritual aspects. Audition.
Group/power vetting Candidate asserts abilities & presents
experience. Communicate relevant information about
job/organisation - objective & subjective Seduce candidate to become an
organisational member Satisfy candidate - give fair opportunity Importance of not over-selling
Basic Features of Interviews
Interview StructureInterview
Administration
Selection Interviews
Interview Content
Interview Formats
Unstructured or
Nondirective Interview
Interview Formats
Structured or
Directive Interview
Structured Interview directive interview following a set of sequence of questions
Non-structured Interview: non directive ask questions as they come to mind
Interview Content
Situational Interview
Stress Interview
Behavioral Interview
Job-Related Interview
Types of Questions
Reference And Background
Checks
investigation Inquiries to previous employers, academic
advisors, co-workers and/or acquaintances regarding applicant’s:
Qualifications. Experience. Past work records. Can better inform potential employer. Can enhance candidate’s credibility.
Final Decision To Hire Or Reject
Hire Or Reject
Best selection decisions will involve extensive consultation among multiple parties.
Selection decision should focus on all aspects of the candidate’s capacity to perform the designated job.
Training and development
Training
Training A set of activities that provides the opportunity to
acquire and improve job-related skills.
On-the-job trainingJob rotation
Coaching
Mentoring
Modeling
Off-the-job trainingManagement development
Compensation and benefits
Compensation And Benefits
Base compensation Salary or hourly wages Fringe benefits Additional non-wage or non-
salary forms of compensation Flexible benefits Employees can select a set of
benefits within a certain dollar amount
Performance Appraisal
Performance appraisal Formally assessing someone’s work
accomplishments and providing feedback.
Purposes of performance appraisal:
Evaluation lets people know where they stand
relative to objectives and standards.
Development assists in training and continued
personal development of people.
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