Introduction to Human Resource Management

Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor

Human Resources
HR is the total knowledge, skills, creative abilities,

talents and aptitudes of an organisations workforce as well as the values, attitudes and beliefs of the individuals involved

What is Human Resource Management (HRM)?

Human resource management is the effective use of human resources in order to enhance organizational performance HRM is the art of procuring, developing and maintaining competent workforce to achieve goals of an organisation in an effective and efficient

manner

Evolution of HRM Concept

Labour / Manpower denotes physical abilities &

capacities of employees commodity - wages based on demand & supply Personnel persons employed in service employees as a whole HR- denotes resources of all the people who contribute their services to the attainment of organisational goals

Evolution of HRM in India

Welfare (1920s-1930s) Administration (1930s- 1940s) Employee relations (1940-1960s)

Functional expertise (1970s-1980s)

Business partner / player (1990s)

Importance of HRM
HR most important resource
Put other resources to proper use Help transform lifeless factors of production into

useful products Capable of enlargement produce extraordinary things when inspired Can help organisation achieve results quickly, efficiently & effectively

Objectives of HRM
Maximize the return on investment from the organization's human capital and minimize financial risk
To align the capabilities and behaviors of employees with the short-term and long-term goals of the organisation

Objectives of HRM
Societal objectives

To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness Functional objectives To maintain the departments contribution at a level appropriate to the organizations needs Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization

Scope of HRM
Prospects of HRM Nature of HRM

Very vast Covers all major

Employee Hiring

Industrial Relations

HRM

Employee Maintenance

Employee Motivation

Employee & Executive Remunera tion

activities in the working life of a worker - from time an individual enters into an organization until he or she leaves, comes under the purview of HRM

Human Resource Management Functions

Recruitment

Recruitment
The process by which a job vacancy is identified and potential employees are notified
The nature of the recruitment process is regulated and subject to employment law Main forms of recruitment: through advertising in newspapers, magazines, trade papers and internal vacancy lists, company websites

Recruitment
Job description outline of the role of the job holder
Person specification outline of the skills and qualities required of the post holder Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

Selection

Selection
The process of assessing candidates and appointing a

post holder Applicants short listed most suitable candidates selected Selection process varies according to organisation

Selection
Interview most common method
Psychometric testing assessing the personality of the

applicants will they fit in? Aptitude testing assessing the skills of applicants In-tray exercise activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer Presentation looking for different skills as well as the ideas of the candidate

Employment Legislation

Discipline

Discipline
Firms cannot just sack workers
Wide range of procedures and steps in dealing with workplace conflict
Informal meetings Formal meetings Verbal warnings Written warnings Grievance procedures Working with external agencies

Development

Development
Developing the employee can be regarded as investing

in a valuable asset
A source of motivation A source of helping the employee fulfil potential

Training

Training
Similar to development: Provides new skills for the employee Keeps the employee up to date with changes in the field Aims to improve efficiency Can be external or in-house

Rewards Systems

Rewards Systems
The system of pay and benefits used by the firm to

reward workers Money not the only method Fringe benefits Flexibility at work Holidays, etc.

Trade Unions

Trade Unions
Importance of building relationships with employee representatives
Role of Trade Unions has changed Importance of consultation and negotiation and working with trade unions Contributes to smooth change management and leadership

Productivity

Productivity
Measuring performance: How to value the workers contribution Difficulty in measuring some types of output especially in the service industry Appraisal
Meant to be non-judgmental Involves the worker and a nominated appraiser Agreeing strengths, weaknesses and ways forward to help both

employee and organisation

Motivation
Motivating employees to perform up to their potential

is the key to maintaining a productive, successful business Ways in which you can motivate employees Interact - Talk to your employees regularly Recognition & Appreciation - A job well done should be appreciated and encouraged Pay them Right - Pay employees for what they are worth and they will be happy to work. New challenges - Give employees new and interesting challenges to keep them stimulated and learning