HUMAN RESOURCE MANAGEMENT

Competitive challenges and HR

1. 2. 3. 4. 5. 6.

Going global Embracing new technology Managing change and organisation culture Developing human capital Responding to the market Containing costs
  

Downsizing Outsourcing and employee leasing Enhancing productivity

Other challenges faced



Demographic and Employee concerns

    

Demographic changes Diversity of backgrounds Age distributions Gender distribution Rising level of education Concern for employee rights Changing attitude towards work Balancing work and family

Cultural changes
  

Functions of HR
MANAGERIAL FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation Maintenance Integration

Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

DEVELOPMENT

COMPENSATION & MOTIVATION

Operative functions of HR (contd.)

MAINTENANCE
Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining

INTEGRATION

Scope of HRM


Labour or Personnel aspect Recruitment, Selection, Transfer, Promotion etc.  Welfare aspect Housing, Lunch room, Health and Safety, Transport, education etc.  Industrial relation aspect Union Management relations, Negotiation, Grievance handling etc.

HRM Environment - External

Technology

Professionalism

Economic

HRM

Social & cultural

Political & legal

Union

HRM Environment - Internal

Policies

HRM

Mission

Organisational Conflict

HRM Policies


Policy is predetermined course of action established to guide the performance of work towards accepted objectives. Importance -:

(1) Clear Thinking (2)Uniformity & Consistency of Admin. (3)Sence of Security (4)Control

Types of HR Policies


Originated policies Made by top Management. Appealed policies Made on request to handle certain situation, or if certain aspects are missing in the main policy. Imposed policies Imposed by Govt & Legal authorities. General policies Do not relate any issue, may represent the priority of Top Mgmt. (WPM). Specific Policy Related to specific issues like Recruitment, Transfer, Promotion etc.

System Approach to HRM

Systematic functioning as per the external environment.  Org cant change external environment but try to use it to the fullest extent.  Need to fulfill various demands i.e. (1) Customer demand Quality product, Reasonable price. (2) Employee demand Higher wages, stable employment. (3) Govt demand Payment of taxes, Compliance of various laws. Thus, proper management of all the activities is crucial.


HRM and Relations with other Departments



Departments Marketing, Finance, Production

Relationship on the basis of Growth & Development, Procurement, Benefits.

Human Resource Planning



Meaning Assessment of Human Resource Requirements & also the time & stages of requirement. Right person ---At Right place ---At Right ---At ---At time. Definition HRP is defined as the process by which management determines how an org should move from its current manpower position to its desired manpower position.

Objectives of HRP


To ensure optimum use of existing HR.  To forecast future requirement for HR.  To provide control measures to ensure that necessary HR are available as and when required.  To asses the surplus and shortage of HR. (Downsizing).  To anticipate the impact of technology on jobs and HR.

Objectives of HRP Contd.



To determine the level of Recruitment and Training.  To estimate the cost of HR and Housing needs of employees. (Or HRA).  To provide the basis of MDP.  To meet the needs of expansion and diversification programmes.

Importance of HRP


Future Personnel needs Creating highly talented personnel International Strategies Foundation of personnel function Resistance to change and move

Factors Affecting HRP

Organisational growth cycle & planning

HRP

Outsourcing

Environmental Uncertainties

HRP Process (contd.)



HR Programming-: Programming Once the Orgs HR Demand and Supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employee at the right time. HR Plan Implementation-: Implementation Implementation requires converting an HR plans into action. (Recruitment, Training, Succession plan etc.)


HRP Process
Environment
Org objectives & policies

HR Need Forecast HR Programming

HRP Implementation Control & Evaluation

HR Supply Forecast

Surplus

Shortage

HRP Process (Contd.)



Environmental Scanning - : Economic factors Technological Changes Demographic changes Political and legislative issues Social concerns

1) 2) 3) 4) 5)

HRP Process (Contd.)



Org objectives and policies-: policiesHR plans need to be based on org objectives, this implies that the objectives of the HR plan must be derived from Org objectives.

HRP Process (Contd.)



HR Demand forecast-: forecastThe process of estimating the future quantity and quality of people required. The basis of forecast will be annual budget and long term corporate plans. Demand forecasting must consider several factors like internal (Budget constraints, employee separations, production level) and external (Competition, laws, change in technology).

HRP Process (Contd.)

    

Demand forecasting techniques are-: areManagerial judgment Ratio trend analysis Delphi technique Regression analysis HR Supply forecasting-: forecastingSupply forecasting measures the number of people likely to be available from within and outside an org.

HRIS


HRIS is a database system that keeps important information about employees in a central and accessible location. The information provided by HRIS can help the organisation to gain competitive advantage. (SWOT of org.)

Information categories of HRIS



Basic non confidential information-: informationEmployee name, Org name, Work location

General non confidential information -: Social security number, Position related information (codes, tittles, effective date)

Info categories of HRIS (contd.)



General information with salary -: Current salary, Effective date, Amount of last change, Reason for last change. Confidential information with salary -: Information of previous category, Educational data

Info categories of HRIS (contd.)



Extended information with salary -: Information of previous category, Bonus information, Projected salary increase information, Performance evaluation information.

Job Analysis


Job analysis is the process of collecting job related information. Such information helps in the preparation of job description and job specification. Job Analysis

Job Description

Job Specification

Job Analysis (contd.)



Job description -: A statement containing items such as Job title, Location, Job summary, Working condition etc.  Job specification -: A Statement of human qualifications necessary to do the job. Usually contains items such as Education, Experience, Training, Communication skills etc.

Purposes of Job Analysis



HRP  Recruitment & Selection  Training & Development  Remuneration  Safety & Health  Performance Appraisal

Methods of Collecting Job Data



Observation  Interviews  Questionnaire  Technical Conference Method

Process of Job Analysis

Strategic Choices Gather Information Process Information Job Description Job Specification

Process (contd.)
 1. 2. 3. 4.  1. 2. 3.

Strategic Choices : Employee Involvement Level of Details When and How often Past oriented and Future oriented Gather Information : What type of Data to Collected (machine, tools & work activities) Data collection methods Who to collect Data (Trained analyst, Supervisors, Job incumbents)

Process (contd.)


Information Processing -: How collected information will be used in forming Job Description and Job Specification. Job description : Job Specification -:

Recruitment


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 a pool of applicants from which new employees are selected.  Recruitment is a process of inviting applications from prospective employees.  Recruitment is a positive process.

Sources of Recruitment


Internal Sources -: Transfer , Promotions. External Sources-: SourcesPress Advertisements , Educational Institutions, Placement Agencies, Employment Exchange, Labour Contractors, Recruitment at factory Gate.

Recruitment Process
Recruiting Required Personnel Search for Perspective Employees Internal Sources External Sources Evaluating effectiveness of process

Recruitment Process


Personnel Requisition -: Requisition for recruitment from other deptt., Contains info like no of person required, duties to be performed, desired qualification, time of appointment, info about job.  Locating and developing sources of required no and type of employees.  Identifying the prospective employees with required characteristics.

Process (contd.)


Communicating the info about the org, the job and the terms and condition of service.  Encouraging the identified candidates to apply for jobs in the org.  Evaluating the effectiveness of recruitment process.

Alternatives to Recruitment


Overtime Employee Leasing Temporary Employment

Selection


Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organisation. Selection is a negetive process.

Selection Procedure


Preliminary Interview  Application blank  Selection Test  Employment Interview  Reference Check and Background Analysis  Medical Examination  Final Approval  Evaluation

Test and Interview



Psychological tests -: Aptitude test

Informal Interview  Formal Interview  Depth Interview  Stress Interview



Induction Or Orientation


Planned introduction of employees to their jobs, their co workers and the organisation. Orientation also called Induction, is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organisation.

Objectives of Induction


To help new comer overcome his natural shyness and nervousness in meeting new people in the environment.  To develop among the newcomers a sense of belonging and loyalty to the organisation.  To develop a close and cordial relationship between newcomers and the old employees and their supervisor.

Objectives (contd.)


To ensure that the newcomers do not form negative or false impression and attitude towards the organisation or the job because first impression is the last impression.  To give newcomers necessary information such as leave rules, rest period, locker room etc.

Advantages of Formal Induction

Helps in build up a two way channel of communication between management and workers.  Proper induction facilitates informal relations and teamwork among employees.  Effective induction helps to integrate the new employees into the organisation and to develop the sense of belonging.


Types of Induction Programme



Formal  Informal  Individual  collective

Contents of Induction Programme



History and operation of company  Products and services of company  Policies and procedures of company  Grievance procedure  Benefit and services for employees  Opportunities for training and development, promotion, transfer etc.

Placement


Placement refers to the allocation of people to jobs. It includes initial assignment of new employees and promotion, transfer, or demotion of present employees.

Placement Problems


Difficulty with the placement is that we tend to look at the individual but not at the job. Job in this context may be classified into three categories. Independent Sequential Pooled

1. 2. 3.

Training & Development



Training is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge.  Training refers to the process of imparting specific skills. (Employees)

T&D


Development refers to learning opportunities designed to help employees grow. (Executive) Education is theoretical learning in classroom.

T&D


The need for training and development is determined by the employees performance deficiency computed as followsfollows-:

Training & Development need = Standard Performance Actual Performance

Difference between T & Edu

Training -: 1. Application base, 2.Job Experience, 3. Specific Task, 4. Narrow Perspective.


Education -: 1.Theoretical Orientation, 2. Classroom learning, 3. General Concepts, 4. Broad Perspective.



Inputs in T & D


Skills  Education  Development  Ethics  Attitudinal Changes  Decision making and Problem solving skills

T & D as a source of Competitive Advantage



T & D offer competitive advantage to a firm by removing performance deficiencies, making staff stay long, minimising accidents, Scrap & damage and meeting future employees needs.

Training Program
Need Assessment Deriving Instructional Objectives Designing Training & Development Program Implementation of Training Program Evaluation

Training Process


Need Assessment -: Diagnoses the present problems & future challenges to be met through training and development. Need Assessment Methods -: As follows Group Assessment Org goals & objectives. Personnel skill inventories Exit interviews Customers Satisfaction data

  1. 2. 3. 4.

Training process
 1. 2. 3. 4.

Individual Analysis -: Performance Appraisal Interviews Questionnaires Attitude Surveys. Issues in need assessment -: Org Support Org Analysis Task and KSA analysis Person Analysis

 1. 2. 3. 4.

Training Process


Deriving an instructional objectives -: It help to know the inputs for the training program and as well as for the measures of success that would help assess effectiveness of the training program.  Designing training & development program -: 1. Who are the trainees? 2. Who are the trainers? 3. Methods & techniques? 4. Level of training? 5. Learning principles? 6. Where to conduct the program?

Training process


Implementation of training program Evaluation

Types of training


1. 2. 3. 4. 5. 6.

On the job -: Orientation Training Job instruction Apprentice training Internship Job rotation Coaching

Types of training


1. 2. 3. 4. 5.

Off the job -: Vestibule Lecture Role playing Simulation Laboratory training