Human Resource Management

Human resource
The total knowledge , skills, creative, ability, aptitude and talents of an organisations workforce, as well as the values, attitudes and beliefs of the individuals involved.

Human resource management

Managing the functions of employing, developing, compensating and maintaining human resource resulting in the creating and development of human relations with a view to contribute proportionately to the
organisational, individual, and social goals.

It is the process of acquiring, training, appraising, & compensating employees, & of attending to their labor relations, health & safety, & fairness concerns. HRM is also a management function concerned with hiring, motivating, & maintaining people in an organization. It focuses on people in organizations.

Functions
1. Managerial Functions Planning Organizing Staffing Directing Controlling

2. Operative Functions Employment- Job Analysis- it is the process of study and collection of information relating to the operations and responsibilities of a specific job: collection of data, preparation of job description, guides for job design.

- Human Resource Planning: it is a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organisation and which provide satisfaction for the individuals involved. estimation of human resource, plans for development of HR - Recruitment: it is process of searching for prospective emloyees and stimulating them to apply for jobs in an organisation.: striking balance between internal and external source

- Selection:it is process of ascertaining the qualifications, experiences, skills, knowledge etc., an applicant with a view to appraising his/her suitability to a job. Application, testing techniques, interview techniques, checking references, medical examination - Placement: it is the process of assigning the selected candidate with the most suitable job in terms of job requirements: - Induction: technique by which a new employee is rehabiliated in the changed surrounding and introduced to the practices, policies and purpose.

Human Resource Development- it is a process of moulding and changing the skills, knowlegde, creative ability, aptitude, attitude, values, commitment etc., based on present and future job requirements . - Performance Appraisal: it is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. - Training: it is the process of imparting to the employees technical and operating skills and knowledge.

- Management Development: it is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skills of employees - Career Planning & Development: it is the planning of ones career and implementation of career plans by means of education, training, job search and acquisition of work experiences. Internal mobility:vertical and horizontal movement of an employee within an organisation.

Tranfer : it is the process of placing employees in the same level jobs where they can be utilised more effectively in consistence with their potentialities and needs of the employees and the organisation. Promotion: it deals with upward reassignment given to an employee in the organisation to occupy higher position which commands better status and/ or pay keeping in view the human resources of the employees and the job requirements. Demotion: it deals with downward reassignment given to an employee in the organisation Retention and retrenchment management Change and organisation development

Compensation- it is the process of providing adequate, equitable and fair remuneration to the employees. It includes - job evaluation: it is the process of determining relative worth of jobs -Wage and salary: this is the process of developing and operating a suitable wage and programme. - Incentive it is a process of formulating , administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary. - Bonus it includes payment of statutory bonus according to the payment bonus act 1965 and the latest amendments. - Fringe Benefits;these are the various benefits at the fringe of the wage - Social security measures:

 Human Relations : Is the process of interaction among human beings. Human relations is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. Effectiveness of HRM - Organisation health - HR accounting , HR audit, and HR research

Nature of Human Resources

Complex Dynamism
Economic physiological Psychological Socio-logical Ethical beings

Social system Challenging task

Scope of HRM
Objectives of HRM Organisation of HRM Strategic HRM Employment Development Wage and salary administration Maintenance Motivation Industrial relation Participative management Recent developments of HRM

Importance of HRM
Man vis-a-vis Machine HRM and General management Human resources system is a central Subsystem
Social significance Professional significance Significance for individual enterprise

HRM- Objectives
The Primary Objective of HRM is to ensure the availability of a competent & willing work force to an organization. - Societal Objectives:. - Organizational Objectives:. - Functional Objectives: - Personal Objectives:

Other objectives
To maintain sound organisational structure and desirable working relationship Effective utilisation of human resource

HRM policies, Procedures and Programmes

HRM policy: plan of action HRM procedure: specific applications HRM programmes: translates procedures into action

 Features

keep the workforce secure, satisfied, & motivated; help the management in deriving better employee performance, in better management & also in cost-savings need to find a balance between a number of factors like organizational objectives, individual expectations, market demands etc need to be updated to match the changing needs of the organization & the employees; should be easy to understand & implement. must be stable.

Organisation Design -Line and Staff relationships

Line Authority gives managers the right or authority to issue orders to other managers or employees. It creates a superior-subordinate relationship. Staff authority gives the manager the right or authority to advise other managers or employees. It creates an advisory relationship.. HR Managers are staff managers. They assist & advise line managers in areas like recruiting, hiring & compensation. However line managers still have HR duties. - Line Managers HR Duties: Placing the right person on the right job, Starting new employees in the organization ( orientation ), Training employees, Improving the job performance of each person, Developing the abilities of each person, Controlling labor costs, Protecting employees health & physical condition.

Human Resource Mangers Duties:

- A line Function: The HR manager directs the activities of the people in his or her own department & in related service areas. In other words, he or she exerts line authority within the HR Department. - A Coordinate Function: HR manager acts as the right arm of the top executive to ensure that line managers are implementing the firms HR policies & practices. - Staff Functions: Assisting & Advising line mangers is the heart of the HR managers job. He or she advises the CEO to better understand the personnel aspects of the companys strategic options. HR assists in hiring, training, evaluating, rewarding, promoting & firing employees. It also administers the various benefit programs like health & accident insurance, retirement, vacation & so on.

Role of Human Resources Manager The conscience role The counselor The mediator The spokesman As a specialist - source of help - As a change agent - As a controller

Qualifications and quality of HR manager

Intellectual integrity Personal Attributes Thorough with labour laws Understand human behavior Intelligence Educational skills Discriminating skills Executing skills Experience and training Professional attitudes Qualifications

Evolution of HRM
Kautilyas Arthashastra 4th BC-employee employer relationship. 1800 BC minimum wage rate and incentive wage plan were included in Babylonian code of Hammurabi. 1920 growth in the subject. 1931- appointment of Labour Welfare Officers. 1948- Factories Act IIPM Indian Institute of Personnel Management and(kolkota) NILM- National Institute of Labour Management( Mumbai) were set up 1980- NIPM 1990- human values and productivity through people reflected in American Society for Personnel Administration (ASPA) renamed as Society for Human Resources Management (SHRM)

HRM Models
HRM Models provide an analytical framework for studying. They serve as a heuristic devicesomething to help us discover & understand the world for explaining the nature & significance of key HR Practices. There are 4 HR Models:Fombrun, Tichy, & Devanna Model: The Harvard Model The guest Model The Warwick Model

Strategic Management
Crafting strategies, their implementation and evaluation of their effectiveness. Process of developing practices, programme and policies that help achieve organisational objectives aligned with organisational strategies.

Benefits
Enhanced performance Increased employee and organisational productivity Increases survival rate Reduces employee turnover Enhances customer satisfaction

Barriers
Short term mentality Inability of HR to think strategically Lack of appreciation Failure to understand GM role as an HR manager Difficulty in qualifying many HR outcomes Perception of human assets as higher risk investments Incentives for change

Strategic Management process

Environmental scanning Strategy formulation -corporate- level -business unit level - functional level Strategy implementation Evaluation and control

Chapter -2
HR FUNCTIONS -I Recruitment and Selection Interviewing candidates

Meaning of recruitment
Recruitment is understood as the process of searching for & obtaining applicants for jobs, from whom the right people can be selected. Recruitment is the process of attracting prospective employees and stimulating them for applying job in an organization. Recruitment refers to the process of receipt of applications from job seekers.

Objectives of recruitment
To attract people with multi dimensional skills and experiences that suit the present and future organisational strategies To induct outsiders with a new perspective to lead the company To infuse fresh blood at all levels of the organisation To develop an organisational culture that attracts competent people whose skills fit the companys values To search or head hunt whose skills fit the companys values To devise methodologies for assessing psychological traits To search for talent globally and not just within the company

Importance of Recruitment:
Provide a pool of potentially qualified job candidates. Determine the present & future requirements of the firm Increases the pool of job candidates at minimum cost Increase the success rate of selection process Helps to reduce the probability that job applicants, once recruited & selected will leave the organization only after a short time. Increases organizational & individual effectiveness in the short-run & in long-run.

Factors influencing recruitment

Supply and demand Unemployment rate Labour market Political- legal Sons of soil Recruitment policy HRP Size of the firm Cost Growth and expansion

Internal sources of recruitment

Present Employees: Employee Referrals: Former Employees: Previous Applicants:

External sources of recruitment

Professional or Trade Association: Advertisements: Employment exchange Campus recruitments: Walk-ins, Write-ins, & Talk-ins: Consultants: Contractors: Displaced persons Radio & Television Competitors: E-recruiting:

Recruitment process
Recruitment is the process of identifying & attracting job seekers so as to build a pool of qualified job applicants. The process comprises 5 interrelated stages:- Planning, - Strategy Development, - Searching, - Screening - Evaluation & Control.

 Recruitment Planning:
Planning Involves the translation of likely job vacancies & information about the nature of these jobs into a set of objectives that specify the number & type of applicants to be contacted. - Number of Contacts: - Type of Contacts: Job description and Job specialisation.

 Strategy Development:
- Make or Buy: - Technological Sophistication - Where to Look - How to look -When to look:

 Searching:
Once a recruiting plan & strategy are worked out, the search can begin - Source Activation: does exist or will exist - Selling

 Screening: Evaluation & Control:

- Evaluation of Recruitment Process: a. Number of suitable candidates for selection; b. Retention & performance of the candidates selected; c. Cost of the recruitment process; d. Time lapsed data; e. Comments on image projected. - Evaluation of Recruitment Methods: a. Number of initial enquiries received which resulted in completed application forms; b. Number of candidates at various stages of the recruitment & selection process, especially those shortlisted; c. Number of candidates recruited; d. Number of candidates retained in organization after 6 months.

Recruitment Policy:
The recruitment policy of an organization would normally be in alignment with the objectives & policies of the organization. It lays down the objectives of recruitment, & the channels & sources of recruitment. A good policy recruitment policy is based on the organizations objectives, identification of the recruitment needs, preferred sources of recruitment, cost of recruitment, & so on. It should reflect the reputation &image of the organization.

A good recruitment policyProvides optimum employment security & avoids frequent lay-offs; - Prevents the formation of cliques which result in employing the members of the same household or community in the organization; - Reflects the social commitment of the organization by employing handicapped people & other underprivileged people of the society whenever there is a possibility of job fit; - Is in alignment with the objectives & policies of the organization - Is flexible enough to accommodate changes in the organization - Is designed in such a way that it ensures long-term employment opportunities for its employees; - Is cost effective for the organization
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Recruitment Approaches
Realistic job preview( RJP) Job compatibility questionnaire (JCQ)

Alternatives to Recruitment
Overtime Employee leasing Temporary employment

Selection
Selection is the process of picking individuals out of the pool of applicants with requisite qualifications & competence to fill jobs in the organization. Selection is the process of choosing the most suitable candidate for a job from the available applicants.

 Selection as a source of competitive advantage - Performance - Cost

Organization for Selection:

- It is easier for the applicant because they can send their applications to a single centralized department; - It facilitates contact with applicants because issues pertaining to employment can be cleared through one central location; - It helps operating managers to concentrate on their operating responsibilities; - It can provide for better selection because hiring is done by specialists trained in staffing techniques; - Hiring costs may be cut because duplication of effort is minimized; - With increased government regulations on the selection process, it is important that people who know about these rules handle a major part of the selection process

Environmental Factors Affecting Selection:

External factors are Supply & demand of specific skills in the labour market, Unemployment rate, Labour-market, Legal & political considerations, Internal factors are Companys policy, HRP Cost of hiring.

Selection process
Preliminary Interview: Selection Tests:
- Aptitude Test help determine a persons potential to learn in a given area. E.g. MAT, GMAT; - Personality Test are given to measure a prospective employees motivation to function in a particular working condition. - Interest Test are used to measure an individuals activity preferences. These tests are particularly useful for students considering many careers or employees deciding career changes; - Graphology Test is designed to analyze the handwriting of an individual. - Polygraph Test is a lie detector are designed to ensure accuracy of the information given in the applications; - Medical Test reveal physical fitness of a candidate.

Choosing Tests:
- Reliability: - Validity - Objective: - Standardised:

 Employment Interview:

Types of Interviews:
- Structured Interview: - Unstructured Interview: - Mixed Interview: - Behavioural Interview: - Stressful Interview: - In-depth Interview:

Reference & Background Checks: Selection Decision: Physical Examination: Job Offer: Contracts of Employment: Evaluation of Selection Programme:

Assessment Centre's:

Barriers Of Effective Selection:

Perception Fairness Validity and Reliability Pressure