HUMAN RESOURCE MANAGEMENT

Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation integration, maintenance and separation of human resources to the end that individual, organisational, and social objectives are accomplished.Definition

Importance of HRMHuman Resource Management is important to all managers despite their various functions because of the following reasons-Hire the right person for the job Low attrition rateEnsure people do their bestTime saved in not conducting useless interviewsAvoid legal action for any discriminatory Safety laws are not ignoredEquity towards employee in relation to salary etc.Effective trainingAvoid unfair labour practices

Distinction between Personnel Management, Human Resource Management AndHuman Resource Development

Difference Between HRM and PM - 1

Sr.NoDimensionPMHRM1Employment contractCareful dimension of written contractAim to go beyond contract2RulesImportance of devising clear rules Impatience with rules3Guide to management actionProceduresBusiness need4Behaviour referentNorms/ customs & practicesValues/mission5 Managerial task vis--vis labourMonitoringNurturing6Key relationsLabourCustomer7InitiativesPiecemealIntegrated8Speed of decisionSlowFast

Difference Between HRM and PM - 2

Sr.NoDimensionPMHRM9Management roleTransactionalTransformational10CommunicationIndirectDirect11Management skillNegotiationFacilitation12SelectionSeparateIntegrated13PayJob evaluationPerformance related14ConditionsSeparately negotiatedHarmonisation15Labour managementCollective bargaining contractsIndividual contracts16Job categories and gradesManyFew17Job designDivision of labourTeam work

Difference Between HRM and PM - 3

Sr.NoDimensionPMHRM18Conflict handlingTemporaryClimate & culture19Training & DevelopmentControlled coursesLearning Organization20Focus for attention for interventionsPersonnel proceduresCultural & structural strategies21Respect for employeesLabour a tool expendable & replaceablePeople are assets & to be used fro benefit of organization22Shared interestsOrganization interest is uppermostMutuality of interests23EvolutionPrecedes HRMLatest

HRD and HRHR can be termed as Human Resource Function or HRM Human Resource ManagementHRD Stands for Human Resource Development

HRD and HRHR is all encompassing HR includes HRD and moreHR goes far beyond the traditional Personnel functionHR is more proactive and change orientedHR needs competencies of a different nature from what the traditional personnel function required

HUMAN RESOURCE MANAGEMENT

Importance of Managing Human ResourcesThe Importance of Human resource can havefollowing standpoints:

Social SignificanceProfessional SignificanceSignificance for individual Enterprise

Social Significance HRM,Enhance Dignity By Satisfying Social Needs

Maintain balance Between Jobs available and Job seekers

Providing SuitableAnd most productive Employment

Making Maximum Utilization of resources

Eliminate Waste or improper use of Human resource

By helping people make their owndecisions

Professional SignificanceProviding Healthy workEnvironment

Maintain DignityOf the employee As human being

Providing MaximumOpportunities for Personal development

Proper Reallocation of work

Providing healthyRelationshipbetween Work groups

Improving workingSkill and Capacity

Significance for Individual EnterpriseOrganization goals can be accomplished by

Creating Right attitude

Effective utilisation Of available Human resource

Securing co-operation of the Employees toAchieve Orgn. goals

The Role, Responsibilities and Functions of HRMManagement ProcessesPLANNINGORGANISINGSTAFFINGLEADINGCONTROLLING

Human Resource Management FunctionConducting job analysisPlanning labour needsSelecting candidatesManaging wages and salariesProviding incentives and benefitsPerformance appraisalCommunicationTraining and DevelopmentBuilding employee commitmentEmployee health and safetyGrievance and labour relations

Importance of HRM to all ManagersTo hire right person for the right jobTo avoid high manpower turnoverTo ensure people doing their bestTo conduct proper interviewTo avoid legal implicationsTo ensure proper compensation managementTo ensure safety of workmen and avoid unsafe practicesTo ensure equity and justice and right pay for right personTo ensure implementation of training and developmentTo avoid unfair labour practices

HUMAN RESOURCE PLANNING

Man power planning is now more known as Human Resource PlanningMan power planning is the first step in Recruitment and Selection processIt is to decide what position you will have to fill in, by engaging in Personnel Planning and Forecasting

Human Resource Planning and ForecastingHRP is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help organization achieve its overall objectives.The process of deciding what positions the firm will have to fill, and how to fill them.

Assess trends in External labor marketsCurrent employeesFuture organizational plansGeneral economic trendsPredict demandCompare future demand and internal supplyPlan for dealing with predicted shortfalls or overstaffingForecastinternal supplyForecastexternal supplyHUMAN RESOURCE FORECASTING

Forecasting Personnel NeedsStaffing plans analyses the expected demand of manpower and reflect:1. Projected turnover (by termination and resignation).2. Quality and skills of employees as per changing needs3. Strategic decision to upgrade the quality of product or services or for entering into a new market.4. Technological and other changes. 5. The Financial resources available

Methods of Human Resource Planning

Methods of Human Resource PlanningTrend AnalysisIt is Study of firms past employment needs over a period of years to predict future needsA computation of employees in the firm at the end of each year for the last five year or so may be done in order to identify the trends that might continue in future..Trend analysis can provide an initial estimate.Employment levels rarely depend upon passage of timeIt also depends upon factors like sales volume and productivity.

Methods of Human Resource PlanningRatio AnalysisA forecasting technique for determining future staff needs by using ratios between two factors like sales volume and number of peopleIt assumes that productivity remains the same.A forecast based on historical ratio may not be accurate as every sales person does not have same level of motivation and hence productivity.

Methods of Human Resource PlanningScatter PlotA graphical method used to help identify the relationship between two variables.The scatter plot shows how graphically two variables such as a measure of business activity and firm's staffing levels are related.

Scatter PlotMethods of Human Resource Planning

No. of beds in HospNo. of Nurses200240300260400470500500600620700660800820900860

No of Beds in a HospitalNo. of NursesScatter PlotMethods of Human Resource Planning

Methods of Human Resource PlanningComputerized ForecastDetermination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages.Employers can quickly translate projected productivity and sales levels into forecasts of personnel needs.

Methods of Human Resource PlanningManagerial JudgmentWhichever forecasting is used, managerial judgment play a big role. Historical trend, ratio, or relationship may not be similar in future and likely to change. Management therefore modify the forecast based on projected turnover and various other issues.

JOB ANALYSIS

JobJob may be defined as collection or aggregation of tasks, duties and responsibilities which as a whole, are regarded as a regular assignment to individual employees.

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

Job analysis involves following steps:

Collecting and recording job information

Checking the job information for accuracy

Writing job description based on information

Using the information to determine the skill, abilities and knowledge

Updating the information from time to time

Job DescriptionA list of jobs duties, responsibilities, reporting relationship, working conditions, and supervisory responsibilities.

Job Specification A list of jobs human requirements that is, the requisite education, skills, personality and so on.

JOB ANALYSISA process of obtaining all pertinent job facts

Job Description Job Title Location Job summary Duties Machine tools etc Material etc Supervision Working condition Hazards

Job Specification Education Experience Training Initiative Physical effort Responsibilities Communication skills Emotional characteristics Unusual sensory sight etc.

Use of Job Analysis Information

Job description andJob SpecificationRecruiting &SelectionPerformanceAppraisalSalary&WagesTraining&Develop

RECRUITMENT

It is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is pool of applicants from which new employees are selected.Recruitment

Factors Governing recruitmentExternal factorsSupply and demandUnemployment rateLabour MarketPoliticalSocialSons of soilImageInternal factorsRecruitment policyHRPSize of the firmCostGrowthExpansionRecruitment

Building Pool of CandidateINTERNALEXTERNAL

SOURCES OF RECRUITMENTCurrent EmployeeReferences from present employeeDatabank of former applicantsRetired Employee Former employee

Advertising Employment agencies Temporary help Executive recruiters Referrals and walk-ins College recruiting Companys web site Free and fee-paying Website servicesINTERNALEXTERNAL

It is the historical arithmetic relationships between-

Recruitment leads and inviteesInvitees and interviewsInterviews and offers madeOffers made and offers accepted

Recruiting Yield Pyramid

50

100

150

200

1200

Leads generated (6:1)Candidates invited (4:3)Candidates interviewed (3:2)Offers made (2:1)New hiresRecruiting Yield Pyramid

SELECTION

SELECTIONSelection is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job.

Promotion or Transfer Not dealt with Recruitment and Selection

- Interchangeable Terms- Positive and negative process

Factors affecting selectionExternal environment Supply and demand of specific skill Unemployment rate Legal and political considerations Companys image Internal environment Companys policyHRPCost of hiring

Process of selection Starts with the preliminary interview Ends with contract of employment Different Process for different organization Different process for different job in same organization Selection easy for shop floor worker Selection of managers are crucial Affected by internal and external environment Mutual decision making

Process of selectionPreliminary InterviewSelection testsEmployment InterviewReference & backgroundSelection DecisionMedical ExaminationJob OfferEmployment ContractEvaluationR E J C T E D

Basic Testing ConceptsGenerally tests are administered to determine the applicants - ability, - aptitude and - personality.

Ability tests Helps to determine how well one can perform his taskAptitude tests Helps to determine a persons potential to learn in a given areaPersonality tests To measure a prospective employees motivation to function in a particular working environmentInterest tests To measure an individuals activity preferences. (For career change or when there is multiple career option available)

Selection Tests

TestsDescriptionThomas ProfilingIdentifying behavioural requirement for the job MBTI Understanding personality typePAPI Behaviour in work place 16 PF Measuring personality factors ASUFA Locus of control

InterviewsFormal, in depth conversation conducted to evaluate the applicants acceptability.

Adapted to unskilled, skilled, managerial and professional employees.

Two-way exchange of information, the interviewers learn about the applicant, and the applicant learns about the organization

Shortcomings of interviews Absence of reliability

Lack of validity

Biases

Interview may be One to one InterviewOnly two participants InterviewerCandidate

Sequential Interview123Involves series of interviewsCandidates moves from room to room

Panel InterviewTwo or more interviewers

Formal

Objectives of interviewHelps obtain additional information from applicant

Facilitates giving general information to applicant

Help build image of the organization

INDUCTION*

*A welcoming processINDUCTIONThe idea to welcome a newcomerMake the employee feel at homeGenerate in him a feeling that it is his own job

Induction therefore is a technique by which a new employee is rehabilitated into his surroundings and introduced to the practices, policies and purposes of the organisation. INDUCTION*

* It is important to introduce new employees into an organization The subject seldom receives careful attention Higher turnovers during the first year of employment occur The wastage in financial and human terms needs no elaboration can be because of to faulty recruitment and selection procedures People leave organizations shortly after joining. Attrition may be attributed to treatment initial received Social adjustment that newcomers face are not appreciated Unfamiliar environment may cause loneliness INDUCTION

*The Organizations Responsibility for InductionTo help new employees to adjust to their new surroundings, to gain their confidence and commitment and to avoid costly levels of employee turnover all require positive attitude and actions on the part of employing organizations.Organisations responsibility are based on:

The induction phase is much more critical and stressful to the new employee than it is often recognized to be.

The length of the critical phase will naturally vary and depend on the adaptability of each individual, but it may well last for many months.

The Organizations Responsibility for Induction* The causes contributing to the general problem may be found in the psychological and sociological factors affecting organizational and group behaviour, as described above.

The induction phase needs to be very carefully planned and supervised, as the first stage in staff development.

Induction Programme The induction of new employees has to be continuously monitored and evaluated. Very short induction programme may cause harm Confusion may occur Increase in insecurity*

Induction Programme It needs to be comprehensive and effective

it needs a clear view

Aim and set objectives have to be produced

Responsibility lies with HR

Line and HR managers have complementary parts to play

*

*PURPOSE AND OBJECTIVE OF INDUCTION That they should understand the function, aims and objectives of the organization as a whole.

That they should understand the specific objectives to be achieved by their actions, and their personal responsibilities and expected contributions to the achievement of these objectives.

That the necessary initial training and work experience should be planned to enable them to fulfill these responsibilities

* That comprehensive information should be provided on the following subjects:1. Conditions of employment, salary, pension arrangements, holidays, sickness rules2. Working arrangements in particular, software packages used, reporting relationship and any key facts about the job not yet covered3. The system of HR management and especially the arrangements and opportunities for staff development.4. The whole range of facilities provided for the benefit, welfare and recreation of employees5. Basic information about catering arrangements, health and safety rules, and what to do if there are any problems are most importantPURPOSE AND OBJECTIVE OF INDUCTION

That positive measure should be taken to facilitate the social adaptation of new employees (e.g. notifications in house journals, introducing newcomers).

That the induction programme should be continuously monitored and its total effectiveness assessed.PURPOSE AND OBJECTIVE OF INDUCTION*

Interviews for Induction Induction interviews need to be given to all employees taking up jobs for the first time Should for both internal and external candidate HR manager responsibility to supervise career building of newcomer Line manager undertakes the interviews*

The three main purposes of the interviews To provide all the necessary information that new jobholder need about the job and its attendant circumstances. To allow them to ask questions about any matters on which they are uncertain. To give reassurance and to develop positive attitudes, confidence and motivation*

*Induction interviews should cover following points:

The job description and person specification so that job holders fully understand what is required of them. How the job relates to the work and purposes of the group and the organization as a whole. All the attendant circumstances of the job (e.g. pay, conditions, welfare, etc.) The performance appraisal system and what part the jobholder will be required to play. An assessment of any training and developmental needs that require immediate action. The norms or unwritten rules, if any, in the organization (e.g. Friday is always dress-down day.)

Social Adaptation A source of difficulty in the induction phase. Managers cannot control the intragroup relationships Develop psychological awareness of group and individual behavior in order to settle down The process of socialization is infinitely subtle and varies with each individual Induction programme need to be very flexible and to take full account of individual differences and needs.

The summary of the main elements of INDUCTION SYSTEMInitial InterviewsConducted by line manager and HRM, covering :Details of the induction programmeOrganizational objectives and functions Personal objectives and jobWork conditions and facilitiesPersonal needs, problems etc.Work ExperienceJob varietyVisits & attachmentsTrainingOn the jobspecific courses(internal / external)TrainingAssistance by linemanager and membersof the work groupFollow-up interviewsConducted by line manager and personnel officer in the form of performance appraisal and career development interviews. Check programmes and general welfare

*