Brief Introduction on

HUMAN RESOURCE MANAGEMENT

By- Shafie Zamil
MHRM (Reading) University of Colombo,
B.A university of Perdeniya,
Dip in Mgt, CCHRM
Human Resource, it is only live
resource. There by it is only can mange
other two resources (Money /
Materials)
The most important resource of
organization is Human Resource
Human Resource management is
management of various activities that are
designed to enhance the effectiveness of
man power in an organization, in the
achievements of organizational goal.
Human Resource management may be defined as
organizational function of Planning for Human
Resource needs & Recruitment, Selection,
development, compensation & Evaluation of
performance to fill those needs.
Functional based
The philosophy, policies, procedures & practices
related to management of people within an
organization.
Theory based
Definition of HRM
Employment Management -
Industrial Relation Management - IR
People Management -
Personnel Management
Human Talent Management
Human Resource Development - HRD
Human Resource Management - HRM
Human Performance Improvement - HPI
(New Concept)
Different terms used for HRM
Human resource management was first known as personnel management. The
history of Human Resource management is very short


Human Relations Movement
The First World War
Between the wars
The Second World War The Post War Years
The Post War Years




However the present status of the field of HRM has been achieved after years of
evolutionary development. During this century, methods of managing people have
become more organized & specialized.

Paternalistic Role
Care for injured
and sick employees
Protection for
woman & Children
- State / Trade
union partnership
- Management of
absences training
and recruitment
- Productivity
improvement
- Trade Union
negotiation
- Policy adherence
- Regulation of pay
- Focused on Improvising
efficiency and
effectiveness
- Administration and
functional / technical
expert
- HR generalist in the
field
A number of scholars, manager, entrepreneur &
various people have contributed in different
forms to growth of this important subject.

Organizations now consider the human
resources as a resource that could be developed
rather than just be managed (Fundamental
Different)

Hence the role of the HR Manager today has
become a much more challenging & a
professional one, requiring specialist skills.

Personnel Mgt VS HRM
Personnel Management Human Resource Management
Manages People
Considers people as a resource that can
be developed
Most managers can do personal
management. A manager with basic
managerial skills could handle it.
Human resource management should be
done by a specialist or professionally
qualified persons.
More admin oriented
More rules & strict controls
More development oriented
More motivation, more development &
career advancement opportunities.
Cost effective on the short term
Cost effective on the long term
An investment
Less concentration on employees future
potential & getting has best from
employees through training,
Development & motivation
A job
Identifies employees potential, areas for
improvement, strengths and
weaknesses, identifies training need &
train them. Achieves result through
motivation & job satisfaction.
A career
MODERN
HUMAN
RESOURCE
MANAGEMEN
T
HRP J &
WD
ST
T & D PR C & R
MT JS IG MC
PD BT MCH
HR IN
ORG
L CM
P R IR
LW
Scope
Personnel Management Human Resource Management
Internal
Advertisement
External
Job
Description &
Specification
Selection
Recruitment
Staffing
Human Resource
Planning
Training &
Development
Direct
Indirect
Performance
Appraisal
Non -
Monitory
Monitory
Compensation
HRM PROCESS


Key Result Area of HRM Functions
HR Planning

Administration of Compensation System

Performance Management

Human Resource Development

Employee welfare service

Industrial Relation

Formulation of Personnel procedure &
Practices

Strategic Human Resource Activities
Policy Making
Designing & developing Human
resource Strategies
Contribution to corporate plan
of organization
Integrating human resource
activities to main purpose of
organization

Operating Human Resource Activities
o Job Analysis
o Recruitment & Selection
o Job Evolution
o Salary administration
o Incentive & benefits
o Grievance Handling
o Disciplinary Procedure
o Communicating conditions of service
o Personal Record
HR Advisory Activities
Training & Development

Counseling

Industrial Relations
The recruitment and selection process
Employment
planning and
forecasting

Recruiting:
Build a pool of
candidates

Applicants
complete
application
forms

Utilize various
techniques to
identify viable
job candidates

Interview final
candidates to
make final
choice

Internal Sources and Methods of Recruitment
Sources
Promotions
Transfers and relocations
job rotation
Rehires and recalls
Internal Sources and Methods of Recruitment

Methods
1) Job posting
The organization announces position openings
through bulletin boards, company
publications, and internet/intranet. Some
union contracts require job posting to ensure
that union members get first choice of new
and better positions.
Internal Sources and Methods of Recruitment

2) Skills inventories
Manual or computerized systematic records
listing employees' education, career and
development interests, languages, special
skills, and so on to be used in forecasting
inside candidates for promotion.


1) Work experience
2) Product knowledge
3) Industry experience
4) Formal education
5) Training courses
6) Foreign language skills
7) Relocation limitations
8) Career interests
9) Performance
appraisals

External Sources and Methods of Recruitment
Sources
Employee referral programs
Walk-ins
Other companies
Employment agencies
Temporary help agencies
Trade associations and unions
Schools
Foreign nationals
Internal Sources and Methods of Recruitment
Methods
radio and television
newspapers and journals
computerized services
acquisitions and mergers
work flow management


Advantages Disadvantages
INTERNAL SOURCES INTERNAL SOURCES
Morale
Better assessment of
abilities
Lower cost for some
jobs
Motivator for good
performance
Have to hire only at
entry level
Inbreeding
Possible morale
problems of those
not promoted
Political? infighting
for promotions
Requires strong
management
development
program
EXTERNAL SOURCES EXTERNAL SOURCES
new blood, new
perspectives
Cheaper than training
a professional
No group of political
supporters in
organization already
May bring competitors,
secrets, new insights
Helps meet equal
employment needs
May not select
someone who will fit
May cause morale
problems for those
internal candidates
Longer adjustment or
orientation time
May bring in an attitude
from pervious Company
A job description (J/D)
is a written statement of the duties,
responsibilities, required qualifications and
reporting relationships of a particular job.

Job specifications (J/S)
specify the minimum acceptable qualifications
required by the individual to perform the task
efficiently. Based on the information obtained
from the job analysis procedures, job
specification identifies the qualifications,
appropriate skills, knowledge, and abilities and
experienced required to perform the job.
PAY PACKAGES
Compensation
Monetary

Direct
Salary Wages Bonus
Incentive Commission
over time payment

Non - Monetary

Indirect
Pension - Gratuity -
Insurance - Transport

Reputation , Recognition, job
environment , status,
Authority , Training,

Financial

Non financial

Incentive
An incentive is any factor that provides a motive for a
particular course of action

Incentives bridge the gas between
capacity to work and willingness to work
Capacity to
work
Willingness to
work
GAP
Salary
Wages
Earning
Take home salary
Minimum Wages
Fringe benefits
Definitions
Salary
As the remuneration paid to the manager,
professionals, Supervisors & clerical staff on monthly or
annual basis White Collar Employees
Wages
Who get payment based on time
(Hours / Daily wages ) Blue Collar Employees
Earning
The total amount received by an employee during
a given period
( Salary / COL /House Rent allowances / other
allowances / over time payment )
Take home Salary
Amount of salary left to the employee after
making certain deduction
(EPF / ETF / Life Insurance / Income Tax / other..)
Minimum Wage
The amount of remuneration which is stipulated
by government for different industries
Fringe Benefits
as supplement to workers earned wages. They
included payment in cash and kind out side of earned
wages
Principal Benefits
Leave paid
Social Insurance EPF / ETF /Accident /Maternity
Medical Service / Canteen / Death relief / loan /
housing loan / Transport
Severance payment
Gratuity / Bonus / long service award/ profit sharing
Free training Scheme / Sponsorship for education
& training


JOB EVALUATION
What is the job
What is the evaluation
What is the process
Job is set of task and activities should
be perform by individual and group.
Process - systematic way to archived
Evaluation proper evaluation has four
process set of task and activities should be perform
by individual and group.
1. Measurement (Quality & Quantities)
2. Assessment
3. Valuing
4. Rating
Job Evaluation
is process of measurement, Assessments,
valuing & Rating a set of task and activities
Job analysis
Job Rating - Study the JD & JS and assign
relative value or scope to each job
Job specification Job description
Money Allocation Assign a money rate to pay to each
job according to a define system or scale
Employee Classification - Classify all employees under proper
job title based upon the content of the worker they actually
perform
JE
methods can be divided in to two basic categories
1. Non analytical methods
i. Ranking Methods
ii. Job Grading / Classification

2. Analytical Methods
i. Points Rating System
ii. Factor Comparison
iii. Market Pricing


Job Ranking
The basic process of job ranking is to select a
representative sample of jobs (Bench Marks), prepare
basic J/D for them, compare them the basic
information in the J/D and rank them in order
Job Classification
Predetermined number of job group or classes are
established and job assigned to these classification
Class I Executives (Office manager / D. Manager / Department supervisor)
Class II Skilled Workers (Purchasing Assistant / Cashier / Receipts Clerk )
Class III - Semiskilled Workers (Machine operators / crank Operator )
Class IV Semiskilled Workers (Office Boy / File Clark)
This method is widely used currently
Job are expressed in terms of key factors. Points are
assigned to each factor after prioritizing each factor in
order of important.
Skills
Education and Training required / Depth Experience /Problem
Solving Skills / Social Skill required / Creative thinking / Degree
of discretion / use of judgment

Responsibilities / Accountability
Specialized & Breadth responsibility / for production material /
Degree of freedom

Effort
Mental & physical Demand / potential stress

Working Conditions

Points Rating Method
The most frequent factors employed in points
system are as followed
Skills
Education and Training
required
Depth Experience
Problem Solving Skills
Social Skill required
Creative thinking
Degree of discretion
use of judgment

Responsibilities /
Accountability
Specialized responsibility
Breadth responsibility
Complexity of work
Degree of freedom act
number and nature of
subordinate staff
extent of accountability
of equipment / plant
extent of accountability
of production / materials


Effort
Mental Demand
physical Demand
Degree potential stress

Working Conditions
Time scale of operation
Turbulent or Steady state
Amount of necessary
Travelling
Diversity of Subordinates
Pressure from other group
difficult or hazardous
surrounding


A more systematic and scientific methods of job
evaluation is the factor comparison methods

Factor comparison method