HUMAN RESOURCE MANAGEMENT

ASSIGNMENT
BY, ANIL KUMAR CHAURASIYA ROLL NO:- 05 T.Y.B.M.S MUMBAI UNIVERSITY

Human Resource management

1] Definition of HRM
1st definition:The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Author: Carter McNamara, MBA, PhD 2nd definition:In any organization, there has to be someone concerned with the welfare and performance of persons who are a part of the operation. When an individual or a team of individuals takes on this task of seeing to programs and setting policies that impact everyone associated with the company, they are engaged in the process of personnel management, sometimes referred to as human resources management. One aspect of company organization that definitely requires the input of effective personnel management is the drafting of a company handbook. Establishing operation policies and procedures, requirements for employment, commendation and disciplinary procedures, guidelines for dismissals and promotions, and even something as simple as a dress code has to be compared with state and federal guidelines before the handbook is ready for release to the company at large. Personnel managers and the HR

staff are ideal for drafting and reviewing the company handbook. Written by: Malcolm Tatum 3rd definition :Human Resource Management is based on ideas and techniques developed to enhance worker motivation, productivity and performance The HRM model emphasises: * the need to search for new ways of working * the central role of managers in promoting change * the treatment of workers as individuals rather than part of a collective workforce * the encouragement of workers to consider management as 'partners' rather than as opponents - 'us and us', rather than 'us and them'

4th definition:Personnel Management is responsible for the provision of specialist personnel and human resource management advisory services to departments, and the development and implementation of a relevant, coherent and modern framework of employment policies and practices throughout the University. Each member of Personnel Management is responsible for the provision of these services to a number of departments. This distribution is known as the Personnel Management Portfolio. Personnel Management is also responsible for the delivery of the Human Resource Strategy and associated programmes of work. 5th definition:Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people

in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. 6th definition:By: David E. Guest Human resource management (HRM) comprises a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work. Within this model, collective industrial relations have, at best, only a minor role. Despite the apparent attractions of HRM to managements, there is very little evidence of any quality about its impact. Furthermore very few UK organizations appear to practise a distinctive form of HRM, although many are moving slowly in that direction through, for example, policies of employee involvement. 7th definition:By:Ryan Allis Personnel management is concerned with the effective use of the skills of people. They may be salespeople in a store, clerks in an office, operators in a factory, or technicians in a research laboratory. In a business, personnel management starts with the recruiting and hiring of qualified people and continues with directing and encouraging their growth as they encounter problems and tensions that arise in working toward established goals.Human resource management is a balancing act. At one extreme, you hire only qualified people who are well suited to the firm's needs. 8th definition:By:Malcolm Tatum In any organization, there has to be someone concerned with the welfare and performance of persons who are a part of the operation. When an individual or a team of individuals takes on this task of seeing to programs and setting policies that impact everyone associated with the company, they are engaged in the process of personnel management, sometimes referred to as human resources management.

9th definition:By: Marco Kster Storey regard HRM as a radically different philosophy and approach to the management of people at work (1989: 4). In this view, HRM provides a completely new form of managing personnel and can therefore be regarded as a departure from [the] orthodoxy (Storey 1989: of traditional personnel management 10th definition:By: Bnet personnel management focuses on the individual rather than taking a collective approach. Responsibility for human resource management is often devolved to line management. It is characterized by an emphasis on strategic integration, employee commitment, workforce flexibility, and quality of goods and services. SELF DEFN 11th definition:HRM is "The Process of analyzing and managing an organizations human resources needs to ensure satisfaction of its strategic objectives 12 th definition:Human resource management is the part of management, concerned with people at work & with their relationship with in the organization. It seek to bring to together men & women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual & as a member of working Group. 13th definition:Human resource management is The policies and practices involved in carrying out the people or human resources aspects of a management position, including recruiting, screening, training and appraising.

11th definition:HRM is a system by which we plan organize human being systematically and execute on earlier decided plans of growth for satisfaction of employees. 12 th definition:HRM is a people oriented process for achieving future goals. 13th definition:HRM is a people oriented process for future oriented goals through people contribution in development of self and organization. 11th definition:HRM is a system by which we plan organize human being systematically and execute on earlier decided plans of growth for satisfaction of employees. 12 th definition:HRM is that part of management which makes people work. 13th definition:Human resource management is the part of management, concerned with people at work & with their relationship with in the organization. It seek enabling each to make his own best contribution to its success both as an individual & as a member of working Group

2] Needs/ Importance of HRM

HRM becomes significant for business organization due to the following reasons. 1. Objective:HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc. 2. Facilitates professional growth :Due to proper HR policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future. 3. Better relations between union and management :Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced. 4. Helps an individual to work in a team/group :Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves. 5. Identifies person for the future :Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future. 6. Allocating the jobs to the right person :If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour turnover.

7. Improves the economy :Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter into new business and start new ventured thus industrial development increases and the economy improves.

Human Resource Planning:1. Definition of HRP

Colemn has defined human resource planning as "the process of determining manpower requirements and the means for meeting those requirements in order to carry an integrated plan at the organisation". Stainer defines manpower planning as "strategy for the acquisition, utilisation, improvement and preservation of an enterprise's human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing resources of manpowe Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. From human resource planning the organization identifies how many people it has currently and how many people will be required in future. Based on this information major human resource decisions are taken.

2. Process of HRP:Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

The process of HRP involves various steps they can be explained with the help of the following diagram. Human resource planning

Personal requirement Forecast

Personal supply Forecast

Comparison

Differences

Yes

No

Personal Surplus (100=125)

Personal Shortage (100=75)

Layoff Termination VRS

Overtime Recruitment/hiring Subcontracting

Personnel requirement forecast :This is the very first step in HRP process. Here the HRP department finds out department wise requirements of people for the company. The requirement consists of number of people required as well as qualification they must posses.

Personnel supply forecast :In this step, HR department finds out how many people are actually available in the departments of the company. The supply involves/includes number of people along with their qualification. Comparison:Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison No difference :It is possible that personnel requirement = personnel supplied. In this case there is no difference. Hence no change is required. Yes, there is a difference :There may be difference between supply and requirement. The difference may be Personnel surplus Personnel shortage Personnel surplus :When the supply of personnel is more than the requirement, we have personnel surplus. We require 100 people, but have 125 people. That is we have a surplus of 25 people. Since extra employees increase expenditure of company the company must try to remove excess staff by methods of Layoff Termination VRS/CRS Personnel shortage :When supply is less than the requirement, we have personnel shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employee

3. Advantages/Need of HRP:Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows. Anticipating future requirement :Thru this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future. Recruitment and selection process :The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not. Placement of personnel :Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant. Performance appraisal :HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process. Promotion opportunity :HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.

Promotion:1. Definition of Promotion:Promotion is advancement of an employee to a better job better in terms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay or salary. - Paul Pigors and Charles A. Myers The upward assignment of an individual in an organizations hierarchy, accompanied by increased responsibilities, enhances status and usually with increased income though not always so. - Arun Monappa & Mirza S. Saiyadain

2. Need / Importance of Promotion

Promotion places the employees in a position where an employees skills and knowledge can be better utilized. It creates and increases the interest of other employees in the company as they believe that they will also get their turn. It creates among employees a feeling of content with the existing conditions of work and employment. It increases interest in acquiring higher qualifications, in training and in self development with a view to meet the requirements of promotion. Promotion improves employee morale and job satisfaction. It improves organizational health.

Human Resource Information Management System:1. Definition of HRIMS

Human Resources Management (HRM) is the attraction, selection, retention, development, and utilization of labor resource in order to achieve both individual and organizational objectives. Human Resources Information Systems (HRIS) is an integration of HRM and Information Systems (IS). HRIS

or Human resource Information system helps HR managers perform HR functions in a more effective and systematic way using technology. It is the system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organization's human resources. A human resource information system (HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information about an organization's human resources (Tannenbaum, 1990). The HRIS system is usually a part of the organization's larger management information system (MIS) which would include accounting, production, and marketing functions, to name just a few. Human resource and line managers require good human resource information to facilitate decision-making.

2. Importance of HRIMS:Why is it that a company that is willing to spend big bucks on Enterprise Resource Planning software is sometimes reluctant to make a significant investment in a Human Resource Management System? There are usually several reasons: HR processes often receive serious attention only when things go wrong. Executives are used to taking a reactive approach rather than a proactive approach for handling needs and requirements in this department. Historically, HR has been given only limited access to the strategy table where long term business goals are discussed. Many HR professionals lack experience gathering objective data on HR processes, developing a strategy for improvement, and communicating this information to executives in a compelling way. Employers are well versed in outside market factors that can influence profitability but unaware of internal compliance issues that greatly increase financial risk. A business that wouldnt dream of using outdated technology to track customer orders or inventory may still be using a legacy system for HR. If an employer believes that HR needs only a database to store information on employees, this mindset makes a certain amount of sense. However, the functionality necessary to retain, distribute, analyze, audit, and leverage data to effectively manage a workforce is only available in an actual HRMS. A Human Resources department cannot reach its full potential without this tool.

Transfer:1. Definition
A transfer is a lateral move to a position in the same classified pay range (classified position) or to a position with comparable duties and responsibilities (nonclassified positions).

Principle of Sound Transfer Policy:Company managements must frame a policy on transfers and apply it to all transfers instead of treating each transfer on its own merits. Such policy must be based on the following principles of transfers: 1. Necessary Transfer: Transfers should be made only when absolutely necessary. The frequency of transfers and the minimum period between transfers need to be decided clearly and made know to all employees. The basis of transfers should be properly decided. Large scale transfers, frequent transfers and transfers for the sake of transfers should be avoided by laying down adequate selection and placement procedures for the purpose. 2. Responsibility of Transfers: Responsibility for initiating and approving transfer decisions should be clearly defined and properly located. The authority to handle transfers should be decided clearly. The best course is to centralize the authority handling transfers and make the personnel/HR department responsible for all transfers. 3. Fair Transfers: Transfer should not be made as a punishment or as revenge on an employee or simply to trouble an employee and his family members. 4. Consideration of Employees: Transfers should be made after taking concerned employee in to confidence and after explaining how transfer is in the best interest of the organization and employee. 5. Interest of Organization: All transfers should be made in the best interest of the organization. In addition, there should be sound justification in the case of all transfers made. The management should be able to prove its objectivity and impartiality as regards transfers made.

6. Sound Transfer Policy: Management should prepare a sound transfer policy for a long period. It should be given wide publicity for the information of employees. The interests of the organization should not be forgotten while framing a policy of transfers. 7. Employees View: An employee should be given an opportunity to appeal to an appropriate authority with full opportunity to an employee to express his views. 8. And request for transfer by an employee on sound personal grounds (e.g. family problems, health, schooling of children, unsuitability of climate, etc.) Should be considered sympathetically and granted promptly.

Importance of Transfer :1.A transfer provides a career path for an employee when a promotion is not available. A transfer provides advantages for an employee. In a transfer, the employee: 2.Gains new knowledge and skills by performing a different job that requires new skills and provides different responsibilities. 3.Overcomes boredom and dissatisfaction with his or her job by having a new and different job with changed responsibilities and tasks. 4.Receives a new challenge, a chance for the employee to expand his or her accomplishments, reach, impact, and potentially, influence different aspects of the workplace and organization. 4.Will learn about different components, activities, and jobs in the organization and how work is accomplished in different departments or job functions. (This will build his or herorganizational knowledge and ability to get things done.) 5.Prepares for a promotion or broader organizational role, by expanding his or her skill set and responsibilities, and gain broader knowledge about the total organization.

6.Gains visibility with a new group of coworkers and managers. Visibility for a good employee brings potential opportunities.