Amity School of business

Amity University
Uttar Pradesh

HR POLICY OF KAMUNA GROUP OF COMPANIES

Under the supervision of:

Submitted By:

Ms. Supriya Jha

Aman Asthana

Lecturer

BBA General

Amity School of Business

Section D

Amity University ,Noida.

Roll No. D-18

Enrollment no- A3906413046

1 | Page

Acknowledgement

I take this opportunity to express my profound gratitude and deep regards to my guide Ms.
Supriya Jha mam for his exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance given by him time to time
shall carry me a long way in the journey of life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to HR manager of Kamuna
Group of companies for his/her cordial support, valuable information and guidance, which
helped me in completing this task through various stages.
I am obliged to staff members of Kamuna Group of companies for the valuable information
provided by them in their respective fields. I am grateful for their cooperation during the period
of my assignment.
Lastly, I thank almighty, my parents, brother, sisters and friends for their constant encouragement
without which this assignment would not be possible.

Aman Asthana

2 | Page

Abstract

3 | Page

PREFACE

4 | Page

DECLERATION BY THE STUDENT

I hereby declare that this project report entitled

HR POLICY OF KAMUNA OF GROUP OF COMPANIES

is written by me and is my own effort and that no part has been plagiarized without
Citations.

5 | Page

Table of contents

1. Objectives of study
2. Introduction
a. Introduction to Kamuna group of companies.
b. Introduction to Human Resource Management (Hrm).
c. Nature, Importance of Human resource management.
d. Functions of Human Resource Management.
e. Emerging Issues of Hrm.
3. Research Methodology
Research Type: Descriptive and exploratory type of research
Data collection method: primary and secondary
4. Review of Literature & Analysis
5. Key Findings:
Challenges to Human Resource Management.
6. recommendations & Conclusion
7. Future Prospects
8. Reference & Bibliography

Objective of study

Objectives of hr policy areFunctional objectives to maintain the needsdepartments contribution at a level

appropriate to the organizations

6 | Page

Personal objectives to assist employees in achieving their personal goals, and

enhancing the individuals contribution to the organization

Societal objectives to be ethically and socially responsible to the needs and challenges
of the society .

Organizational objectives to recognize the role of HRM in bringing about

organizational effectiveness

Introduction of kamunaKamuna is a multi Corporative Company and its main objective is to enrich rural
India by providing strength and support to its people in terms of prosperity,
education, livelihood and fulfillment of their development based needs through
mass participation .
7 | Page

8 | Page

9 | Page

10 | P a g e

Introduction-

What is Human Resource?

HRM is concerned with getting better results with the collaboration of people. It is an
integral but distinctive part of management, concerned with people at work and their
relationships within the enterprise.
A central feature of modern human resource management is the idea of engaging the
commitment of employees with the goals of the organization. This means that human
resource management is not just about administering people but also about shaping the
culture of the organization
HRM is the qualitative improvement of human beings who are considered the most
valuable assets of an organization-the sources, resources, and end-users of all products
and services.

Nature of HRM :

Pervasive force : It is present in all enterprises

Action oriented: HRM focsses attention on action ,rather than record keeping ,written
procedures & rules

Individually oriented: It tries to help employees develop their potential fully

People oriented : HRM is all about people at work both as individuals & groups

11 | P a g e

Auxiliary function: HR department exists to assists and advise the line or operating
managers to do their personnel work effectively

Continous Function : HRM requires constant alertness & awareness of human relations
and their importance in everyday operations

Introduction:
What is Human Resource Policy?
A policy is a predetermined course of action established to guide the performance of work
towards accepted objectives.

HR policies of kamuna group of companies are statements of personnel objectives of an

organization and provide a broad framework within which decisions on personnel matters
can be made without reference to higher authorities.

HR policies lay down the criteria for decision making.

There policies are framed based on the following sources of information:

1. Past experience of the organization.

2. Existing practices and experiences in other Organizations of same nature.
3. Attitudes, philosophies of the management at various levels.
4. The knowledge and experience of HR manager handling HR issues etc.

GOOD HR PRACTICES HELP

Attract and retain talent.

12 | P a g e

Train people for challenging roles.

Develop skills and competencies.

Promote team-spirit.

Develop loyalty and commitment.

Increase productivity and profits.

Improve job satisfaction.

Enhance standard of living.

Generate employment opportunities.

FUNCTIONS OF HRM- Followed in kamuna are Managerial function1.

2.
3.
4.

Planning
Organising
Directing
Controlling

Opertive Funcion
PROCUREMENTJob analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility.
DEVELOPMENTTraining and development, Performance & potential management, Career management,
feedback.
COMPENSATION & MOTIVATION13 | P a g e

Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and
benefits.
MAINTENANCE Health, Safety, Welfare, Social security.
INTEGRATIONIndustrial relations, Grievance, Discipline, Participation, Collective bargaining, Teams and
teamwork, participation, empowerment.

EMERGING ISSUESHRIS, HR audit, job stress, counselling, mentoring, International HRM.

Research Methodology-

What is Procurement?
Procurement is the acquisition of goods, services or works from an outside external source. It is
favourable that the goods, services or works are appropriate and that they are procured at the best
possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and
location. Corporations and public bodies often define processes intended to promote fair and
open competition for their business while minimizing exposure to fraud and collusion.
It IncludesJob analysis ,HRP, Recruitment, Selection, Placement, Induction.

14 | P a g e

1. JOB ANALYSISJob analysis has been defined as, the process of determining by observation and study
the tasks, which comprise the job, the methods and equipment used, and the skills and
attitudes required for successful performance of the job.
Job Analysis is a process of studying and collecting the information relating to the
operations and responsibilities of a specific job.

In kamuna Job analysis is done to collect the following InformationJob Identification : Title , Code No.
Characteristics of Job.
Materials and Equipments required.
Personal attributes required: Education, training.
It is useful in HRP, Recruitment, Selection, Training and Development, Organization
audit, Job Evaluation, Job Design, Performance Appraisal.

TypesJob Description :
It is an organised factual statement of duties and responsibilities of a specific job.
Job Specification:
It is a statement of minimum acceptable human qualities necessary to perform a job
properly.
It is the key qualifications necessary for someone to perform the job satisfactorily.
Education, skills, personality, mental and physical requirements.

Human Resource PlanningThe process by which management determines how an organization should move from its current
manpower position to its desired manpower position.
According to kamuna- HRP is the process of determining manpower needs and formulating plans
to meet these needs.
-

It includes the estimation of how many people are necessary to carry out the assigned
activities, how many people will be available and ensures that personnel supply equals
Personnel demand.

According to kamuna Importance of HRP is15 | P a g e

Future Personnel needs

Coping with changes

Creating highly talented Personnel

Protection of weaker sections

Foundation for personnel function

To ensure optimum utilization of existing hr

Part of Strategic Planning

RECRUITMENTRecruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.
Recruitment involves identifying sources of manpower and stimulating them to apply for
jobs in the organizations.
Recruitment involves attracting and obtaining as many applications as possible from
eligible job seekers.
Recruitment is a positive function as it seeks to develop a pool of eligible person from
which most suited ones can be selected.
Sources of Recruitment-

16 | P a g e

Internal Recruitment- It refers to the recruitment which is done with in the organization .
Kamuna for recruitment is mainly dependable on internal recruitment.

Advantages

Easier to access candidates

Motivates employees

Reduces training time

Faster

Less expensive

Increases job security

Sources1. Employee Referrals.

2. Job Posting.
3. Dependants of deceased employee.
4. Retired Employees.
5. Transfers.
6. Promotions.
External Recruitment- It refers to the recruitment which is done outside the organization.
Kamuna does not mostly depend on external recruitment.
17 | P a g e

Disadvantages

Expensive

Can take longer than internal hiring.

Always the risk of hiring someone who is not successful.

Limits internal promotion opportunities.

Can create internal morale problems.

Sources1.
2.
3.
4.
5.

Walk-in.
6.
Campus recruitment.
Employment exchanges.
Reruitment websites.
Advertisements.
SelectionSelection is the process of picking individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization.
Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.
SELECTION PROCESSBasis for Selection-

18 | P a g e

REJECTED
APPLICANTS

PLACEMENT- It is done in kamuna as

EMPLOYEE IS PUT TO A SPECIFIC JOB FOR WHICH HE HAS BEEN SELECTED.

IN MOST OF THE COMPANIES EMPLOYEES ARE FIRST PUT ON A
PROBATIONARY PERIOD AFTER WHICH THEY ARE MADE PERMANENT
SAME IS FOLLOWED IN KAMUNA AS NEWLY ELECTED EMPLOYEES ARE
KEPT AS OFFROLL CANDIDATE AND OLDER EMPLOYEE ARE KNOWN AS

ONROLL CANDIDATE.
PROCESS OF ASSIGNING A SPECIFIC JOB TO EACH ONE OF THE SELECTED

CANDIDATES.
ASSIGNING A SPECIFIC RANK AND RESPONSIBILITY TO AN INDIVIDUAL
MATCHING THE REQUIREMENTS OF A JOB WITH THE QUALIFICATIONS OF A
CANDIDATE.

19 | P a g e

INDUCTION/ORIENTATION-

IT IS ONE OF THE MAIN FUNCTION OF

PROCUREMENT WHICH HELPS THE NEW EMPLOYEE IN ORGANZATION AND

IT IS THE ONE THE MAIN FUNCTION ON WHICH KAMUNA FOCUSES.

It is the process of introducing the organization and the organization to the employee by
providing him/her relevant information about the changed surroundings, practices,
policies and purposes of the organization.

PROCESS OF RECEIVING AND WELCOMING AN EMPLOYEE WHEN HE FIRST

JOINS THE COMPANY.

PUTTING HIM AT EASE SO THAT HE DONT FEEL LIKE AN ALIEN IN A NEW

ENVIRONMENT.

ACQUAINTING HIM WITH THE BASIC INFORMATION HE NEEDS TO SETTLE

DOWN QUICKLY.
HAPPILY START WORK AND FOSTER A CLOSE AND CORDIAL RELATIONSHIP.
Information covered are: INFORMATION GIVEN BY HR DEPARTMENT OF

KAMUNA TO NEW EMPLOYEES HERE AREMission.

Objectives.
Product lines.
Organization Structure.
Key Functions.
History/Present scenario.
Policies, People and Work.
OBJECTIVES OF INDUCTION- ACCORDING TO KAMUNAHELP THE NEWCOMER OVERCOME HIS INHIBITIONS.
BUILD UP CONFIDENCE IN THE ORGANIZATION.
DEVELOP A SENSE OF BELONGINGNESS AND LOYALTY.
PROVIDE OPPORTUNITY TO INTERACT WITH OTHER FELLOW EMPLOYEES.

-MAKE HIM AWARE ABOUT ORGANISATIONAL DETAILS

BENEFITS OF ORIENTATION- ACCORDING TO KAMUNA1. BETTER PERFORMANCE.
2. HIGH COMMITMENT.
3. EFFICIENT USE OF RESOURCES.
4. REDUCED ANXIETY.
5. REDUCED ROLE AMBIGUITY.
6. REDUCED TURNOVER.
20 | P a g e

What is Development?
A core function of HR management is development, which entails training efforts designed to
improve personal, group, or organizational effectiveness. Employee development helps
organizations succeed.

Key Points1. For overall organizational success, it is crucial to develop employees through training,
education, and development.
2. Training should focus on an individual's current job and be evaluated based on that
current job.
3. Education should focus on jobs an individual might hold in the future and be measured
based on those potential jobs.
4. Development focuses on potential future activities of the organization and is therefore
challenging to evaluate.
5. Talent development refers to an organization's ability to align strategic training and career
opportunities for employees.
It IncludesTraining and development, Performance & potential management, Career management,
feedback.
1. Training and developmentEmployee development helps organizations succeed. Human resource development
consists of training, organization, and career development efforts to improve individual,
group, and organizational effectiveness.
Training is one of the most important ways to develop employees.

Training is

organizational activity intended to improve the performance of individuals and groups in

organizational settings. Training and development has three important steps: training,
education, and development. Training: This activity focuses on an individual's current
job and is evaluated based on that current job. Education: This activity focuses on jobs
an individual might hold in the future and is measured based on those potential jobs.

21 | P a g e

Development: This activity focuses on potential future activities of the organization and
is therefore extremely challenging to evaluate.
According to kamunaTraining refers to the methods used to give new or present employees the skills that they
need to perform their job.
Training is essentially a value-addition activity undertaken by an organization to enrich
the value of its people.
It plays a vital role in enhancing the efficiency, productivity and performance of the
employees.
The purpose of training is basically to bridge the gap between job requirements and
present competencies of an employee.
IMPORTANCE OF TRAINING- According to kamuna INCREASED EFFICIENCY
BETTER QUALITY OF LIFE
-INCREASED MORALE & MOTIVATION OF EMPLOYEE
EMPLOYEE RETENTION
CAREER ADVANCEMENT
LESS LEARNING PERIOD
ADVANCEMENT IN TECHNOLOGY
INTRO. OF NEW STRATEGIES & WORKING METHODS IN THE ORG.
INCREASED ORG. CAPABILITY
REDUCED SUPERVISION & LOW ACCIDENT CASE
TRAINING PROGRAMME-

22 | P a g e

Types of TrainingOn Job Training Methods- It is the method of training which is given at the place
of job and kamuna also mainly focuses on his method.
Methods

Orientation training.

Job Instruction training.

23 | P a g e

Apprentices training.

Job rotation.

Coaching.

Internship & assistance.

Off the job training method-It is the method of training which is given away from the
place of job.

Vestibule

Lecture

Special study

Films ,Television

Conferences & discussion

Case Study

Role playing, Simulation

Laboratory training
PERFORMANCE APPRAISALPerformance appraisal is a systematic way of reviewing and assessing the performance of
an employee during a given period of time and planning for his future.

According to Flippo, a prominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial rating of an
employees excellence in the matters pertaining to his present job and his potential for a
better job.
According to kamuna-

It is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the achievements
of the overall organizational goals.

24 | P a g e

By focusing the attention on performance, performance appraisal goes to the heart

of personnel management and reflects the management's interest in the progress of the
employees.
Objectives Of Performance appraisal-

1. To review the performance of the employees over a given period of time.

2. To judge the gap between the actual and the desired performance.
3. To help the management in exercising organizational control.
4. Helps to strengthen the relationship and communication between superior subordinates
and management employees.
5. To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future
6. To provide feedback to the employees regarding their past performance.
7. Provide information to assist in the other personal decisions in the organization.
8. Provide clarity of the expectations and responsibilities of the functions to be performed
by the employees.
9. To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development.
10.To reduce the grievances of the employees.

Career managementCareer Management is the combination of structured planning and the active management
choice of one's own professional career.
The outcome of successful career management should include personal fulfillment, work/life
balance, goal achievement and financial security.

25 | P a g e

The word career refers to all types of employment ranging from semi-skilled through skilled, and
semi professional to professional. The term career has often been restricted to suggest an
employment commitment to a single trade skill, profession or business firm for the entire
working life of a person. In recent years, however, career now refers to changes or modifications
in employment during the foreseeable future.
There are many definitions by management scholars of the stages in the managerial process. The
following classification system with minor variations is widely used:
1. Development of overall goals and objectives,
2. Development of a strategy (a general means to accomplish the selected goals/objectives),
3. Development of the specific means (policies, rules, procedures and activities) to
implement the strategy, and
4. Systematic evaluation of the progress toward the achievement of the selected
goals/objectives to modify the strategy, if necessary.
FeedbackFeedback is a process in which information about the past or the present influences the
same phenomenon in the present or future. As part of a chain of cause-and-effect that
forms a circuit or loop, the event is said to "feedback" into itself. In kamuna feedback is
given by Employer to employee by seeing his work performance and by evaluating it.
What is Compensation & Motivation?
Compensation is what employees receive in exchange for their contribution to the organization.

Pay refers to the basic wage and salaries employees receive.

Compensation includes bonuses, commissions and profit sharing plans.

It is all forms of financial returns as a part of employment.

26 | P a g e

Employees std. of living, status, motivation, and productivity depend upon it.

Internal and external factors that stimulate desire and energy in people to be continually
interested and committed to a job, role or subject, or to make an effort to attain a goal.
Motivation results from the interaction of both conscious and unconscious factors such as the
intensity of desire or need, incentive or reward value of the goal, and expectations of the
individual and of his or her peers. These factors are the reasons one has for behaving a certain
way.
It IncludesJob design, Work scheduling, Job evaluation, Compensation administration, Incentives and
benefits.
Purpose of compensation system-According to kamuna

It enables an organisation to attract and retain qualified , competent individuals.

It motivates employee performance, and provides direction to their efforts.

Its cost structure reflects the organisations ability to pay

It reduces absenteeism, grievances, strikes and job dissatisfaction.

It retains competent individuals for long and he/she becomes loyal towards the job.

Better employer / employee relationship.

27 | P a g e

COMPONENTS OF COMPENSATION-

INDIRECT

Job evaluation- According to kamuna

Job evaluation is the process of analyzing and assessing the various jobs systematically to
ascertain their relative worth in an organization.

Jobs are evaluated on the basis of their content and are placed in the order of their
importance.

In this way, a job hierarchy is established in the organization, the purpose being fixation
of satisfactory wage differentials among various jobs.

A job is rated before the employee is appointed to occupy it, and the purpose is to
establish satisfactory wage differentials.

28 | P a g e

Features: According to kamuna

It helps in establishing a rational pay structure.

It tries to assess jobs, not people.

The basic information on which job evaluation are made is obtained from job analysis.

It is carried out by groups, not individuals.

Some degree of subjectivity is present in job evaluation.

It does not fix pay scales but provides a basis for evaluating a rational wage.
Limitations-

The methods used are difficult to understand.

Wide fluctuations in factors can be seen in view of changes in technology, values etc.

Employees, trade union, management and the programme operators may have difference
of opinion in weightage to different factors leading to dispute.

Incentive- According to kamunaAn incentive is something that motivates an individual to perform an action. The study of
incentive structures is central to the study of all economic activities (both in terms of
individual decision-making and in terms of co-operation and competition within a larger
institutional structure). Economic analysis, then, of the differences between societies (and
between different organizations within a society) largely amounts to characterizing the
differences in incentive structures faced by individuals involved in these collective
efforts. Ultimately, incentives aim to provide value for money and contribute to
organizational success.
INTEGERATION- IncludesIndustrial relations, Grievance, Discipline.
Discipline- According to kamuna29 | P a g e

A process of controlling one's behaviour and actions, either through self motivation or through
teaching and punishment.
Discipline is the force that prompts individuals or groups to observe rules and regulations,
standards and procedures deemed necessary for an organization.
Causes of Indiscipline- According to kamuna1. Absence of effective leadership
2. Unfair management practices
3. Communication barrier
4. Non uniform disciplinary action
5. Divide and rule policy
6. Inadequate attention to personal problems
7. Excessive pressures
Essential of a good Disciplinary System- According to Kamuna1. Rules and performance criteria.
2. Documentation of the facts.
3. Training of supervisors.
4. Centralization Of discipline.
5. Impersonal Discipline.
6. Progressive Discipline.

30 | P a g e

7. Discipline should be fair.

8. Disciplinary action should be prompt.
9. Discipline shall be flexible and consistent.
Industrial relations- According to kamunaIndustrial relations is a multidisciplinary field that studies the employment relationship.
Industrial relations is increasingly being called employment relations or employee
relations because of the importance of non-industrial employment relationships this
move is sometimes seen as further broadening of the human resource management trend.
Indeed, some authors now define human resource management as synonymous with
employee relations. Other authors see employee relations as dealing only with nonunionized workers, whereas labour relations is seen as dealing with unionized workers.
Industrial relations studies examine various employment situations, not just ones with a
unionized workforce. However, according to Bruce E. Kaufman "To a large degree, most
scholars regard trade unionism, collective bargaining and labor-management relations,
and the national labor policy and labor law within which they are embedded, as the core
subjects of the field.
Grievance- According to kamunaWhen the organization fails to meet the expectations of the employees, the employee
develops a feeling of discontent or dissatisfaction. This is said to be having grievance.
Features of grievance

Discontent or dissatisfaction due to employment and not due to personal problems.

This discontent can arise out of real or imaginary reasons.

This discontent may be voiced or unvoiced. Initially the employee may complain orally
or in writing. If this is not looked into promptly the employee feels a lack of justice.

31 | P a g e

Thus a grievance is traceable to perceived non fulfillment of ones expectations from the
organization. It give rise to conflicts and low productivity.
Causes of Grievances- According to kamuna-

Grievances arising out of working conditions:

Poor Physical conditions of work place

Very tight Production Standards
Non Availability of proper tools & machines
Unplanned changes in schedules and procedures
Failure to maintain proper discipline
Poor relationship with the superior

Grievances arising out of management policies:

Wage rate
Overtime and incentive schemes
Seniority , transfer , promotion
Lack of opportunity for career growth
Leave policies

Grievances arising from alleged violation of:

Collective bargaining agreement

32 | P a g e

 Company rules and regulations

Central and state laws

Grievances arising out of Personal maladjustment:

Over ambition
Excessive self esteem
Impractical attitude to life.
Emerging Issues IncludesHRIS, HR audit, International HRM,SHRM.
Human Resource Information System (HRIS)- According to kamunaA Human Resources Management System (HRMS) or Human Resources Information System
(HRIS), refers to the systems and processes at the intersection between human resource
management (HRM) and information technology.[1] It merges HRM as a discipline and in
particular its basic HR activities and processes with the information technology field, whereas
the programming of data processing systems evolved into standardized routines and packages of
enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin
from software that integrates information from different applications into one universal database.
The linkage of its financial and human resource modules through one database is the most
important distinction to the individually and proprietary developed predecessors, which makes
this software application both rigid and flexible.
A HRIS, which is also known as a human resource information system or human resource management system
(HRMS), is basically an intersection of human resources and information technology through HR software. This
allows HR activities and processes to occur electronically.
To put it another way, a HRIS may be viewed as a way, through software, for businesses big and small to take care
of a number of activities, including those related to human resources, accounting, management, and payroll. A HRIS

33 | P a g e

allows a company to plan its HR costs more effectively, as well as to manage them and control them without
needing to allocate too many resources toward them.
In most situations, a HRIS will also lead to increases in efficiency when it comes to making decisions in HR. The
decisions made should also increase in qualityand as a result, the productivity of both employees and manages
should increase and become more effective.

HRIS is a systematic procedure for collecting, storing, maintaining, retriving data needed
by an organization about its Human Resources.

HRIS is a part of organizations larger Management Information System(MIS)

It is the data of persons presently available along with their present and future potentials.

Importance of HRISThe Human Resource Information Systems (HRIS) provide overall:

Management of all employee information.

Reporting and analysis of employee information.

Benefits administration including enrollment status changes, and personal information

updating.

Complete integration with payroll and other company financial software and accounting
systems.

Applicant tracking and resume management.

With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff for more strategic functions.

34 | P a g e

HR Audit- According to kamunaHuman Resource Audit is a systematic assessment of the strengths, limitations, and
developmental needs of its existing human resources in the context of organizational
performance.
HR Audit is a comprehensive evaluation of the entire gamut of HR activities: HR Cost
HR activities
Health, Environment & Safety
Legal Compliance
Quality
Compensation & Benefits
IHRM- According to kamuna

International HRM (IHRM) is the process of:

procuring
allocating,

and

effectively utilizing human resources in a multinational

corporation to achieve organisational objectives irrespective of geographical boundaries.

IHRM is the result of three dimensions: human resource activities, types of employees
and countries of operation.

IHRM requires a broader perspective, encompasses a greater scope of activities and is

subject to much greater challenges than is domestic HRM.
Objectives of IHRM-

To reduce the risk of international human resource.

35 | P a g e

To avoid cultural risks.

To avoid regional disparities.

To manage diversified human capital.

Strategic human resource management According to kamunaIt focuses on-

How organization can improve their competitive performance by utilizing their human
resource more effectively?

How company can best meet the needs of their employees while promoting company
goals.

How the organization can build the set of policies and practices that will build employee
pool of skills, knowledge, and abilities that are relevant to organizational goals
Importance of SHRM-

It enhances employee productivity and the ability of agencies to achieve their mission.

Integrating the use of personnel practices into the strategic planning process enables an
organization to better achieve its goals and objectives.

To manage future operations effectively, it is essential that companies produce "business

leaders" and "innovators" through SHRM Approach.
Benefits of SHRM-

1. Identifying and analyzing external opportunities and threats that may be crucial to the
company's success.
2. To supply information regarding the company's internal strengths and weaknesses.

36 | P a g e

3. Provides a clear business strategy and vision for the future.

4. To recruit, retain and motivate people.
5. To develop and retain highly competent people.
6. To ensure that people development issues are addressed systematically.
7. To ensure high productivity.

Information System (IS) Applications in Human Resource Management (HRM)A unified data model provides a single, accurate view of HR activities ranging from recruitment,
employment, training, performance management, compensation management and real time
management. Oracle human resource leverage workflow and internet-based processes optimize
various HRM activities. The system maintains global HR data in case of Trans-national
companies and total organizational human resource data in case of national companies in a single
location for accurate and easy availability.
The system of applications of Information Technology (IT) in HRM is referred to as Human
Resource Module. HRIS merges some of HRM functions with the IT field, wherein the planning
and programming of data processing systems have evolved into standardized routines and
packages of Enterprise Resource Planning (ERP) software. ERP integrates the human resource
module with finance, production, and sales and administration modules.
Generally, traditional HRM functions are common to all organizations. They consist of tracking
data regarding personal histories, family details, skills, capabilities, experiences, pay, benefits
and grievances. Performance of these functions are increasingly complex, must be performed at
the lowest possible cost and also at a fast rate, which pose increased challenges for HR
professionals. Organizations have started to automate these functions by introducing HRIS
technology.

37 | P a g e

Development of client -server HRIS enables HR executives to assume responsibility and

ownership of their systems compared to client-server architecture, which came largely in the
form of mainframe computers and necessitated heavy capital investment to purchase program
proprietary software. HRIS is developed around six main areas of human resource management
viz., e-recruitment/applicant tracking, e-training, e- payroll, e-benefits, e-self service and e-time
and labour management.
E-recruitment / Applicant Tracking
E-recruitment manages job descriptions and job vacancies, search for candidates and the
interview process. It is also referred to as an applicant-tracking system; this is a web-based
application that enables the electronic handling of organizational employment needs.
These activities include posting job advertisement on web sites to stimulate and attract
candidates, known as job boards. Job boards allow candidates to apply on-line and the
candidates data are stored on a database that allows searching, screening and filtering of
applications. The application tracking system shortlists the candidates and arranges for interview
and recruitment-related activities.
E-recruitment maintains profiles, searches for and refers jobs to colleagues and follows the
recruitment process. It uses event-driven applicant tracking and manages positions on multiple
external websites. E-recruitment/applicant tracking system reduce administrative tasks, cost and
time required to perform recruitment activities.
E-training
E-training provides a complete, scalable and open infrastructure that allows organizations to
manage, deliver, and track employee training participation in on-line or classroom-based
environments. Trainees interact with content and/or trainers at their own pace. Managers set the
business flow from order processing to delivery and performance management to training output
automatically. E-training systems deploy content to global learners; make use of mixed media
and multiple discrete sites on a single instance of the application, define competencies attained
by trainees, and update the trainees competency profiles. It aims to ensure that HRM provides
38 | P a g e

the right resources, competent and experienced trainers, and consolidate training initiatives on a
scalable and cost effective basis. In addition, it aims to measure training effectiveness.
E-training, provides learning opportunities not only to employees, but to customer and all other
stakeholders by providing one-stop administration, automated catalogue distribution and
enrollment and collaborative sites with other strategic partners.
E-payroll
E-payroll models automatically collect data regarding employee attendance and work record for
the purpose of evaluating work performance, they calculate various deductions including tax, and
generate periodic pay cheques and tax reports. Payroll modules in turn send data and accounting
information to the general ledger for posting and subsequent operations and they frequently
integrate e-payroll with e-finance management.
Payroll systems can define standard rules for automatically assigning and changing employee
salary by using simple formulae. They are able to control processing rules and calculations using
fast formula and use logic for complex cases. They can manage global compensation with one
application by implementing a core payroll engine and installing local extensions to add the
necessary functionality, reporting and process for individual countries.
E-payroll is able to process from data, simultaneously, fully reconciled results and multiple
employee groups. By preparing paperless online pay slips, the system is able to reduce
administrative costs and time for the total operations. Employees too can view their exclusive
data and get personalized reports.
E-benefits
E-benefits administration models enable HR professionals to track and administer diverse and
complex benefit plans, employee benefit programs which may involve transpiration medical and
health care, insurance, pension, profit-sharing, and stock option benefits. Such modules, through
internet-based automation, can enable HR to improve benefits support and analysis whilst

39 | P a g e

reducing time and costs involved in the administration, while increasing the consistency
decisions on compliance issues at various levels across the organization.
E-self service human resource
E-self service HR modeles collect process and manage all other kinds of data and information.
For example, employees demography profiles and addresses recruitment, selection training,
development, promotions, capabilities, skill mapping and compensation planning. Such a module
would allow individual employees to update and use employee-specific information,
personalized to an individuals role, experience, work content, language and information needs.
Thus, individual employee and managers are empowered to update information in order to
streamline business processes, reduce costs and errors, increase speed, and enhance service.
This module helps employees in managing everything from profiles including skills, resumes,
contact details, self-appraisal data, bank data, learning, benefits and payroll. It empowers
managers to operate transfers, employee training enrollment, performance appraisals,
competency mapping, career planning and development and terminations.
E-time and labour
E-time and labour automates entire time and attendance records keeping process and operations
through an automatically generated virtual time card. It provides an intuitive, web-based
interface. The time and labour management module, by interacting with information technology,
collects and evaluates time and work information. This module provides broad flexibility in data
collection methods, human resource distribution capabilities and data analysis, and helps in
establishing organizational cost accounting capabilities. This module allows entering time via
web browser, mobile device and time card. It defines rotation plans based on shifts and work
plans and employee mobility among departments or units. It supports policies for holidays, overtime, and rounding. It improves reporting, extracting, and processing with a single database of
employee time-related information. This module is integrated automatically with other modules
of human resource management like payroll and benefits.

40 | P a g e

ConclusionESSENTIALS OF SOUND HR-POLICYWhile developing sound HR policies, management should keep

in mind the following:
It should be related to OBJECTIVES.
It should be easy to understand.
Precise.
Stable as well as flexible.
Based on facts.
Just, fair and equitable.
Reasonable.
Capable of being executed.

HRM OBJECTIVES AT KAMUNAObjectives are pre-determined goals to which individual or group activity in an organization is
directed. Objectives of personnel management are influenced by organizational objectives and
individual and social goals. Institutions are instituted to attain certain specific objectives. The
objectives of the economic institutions are mostly to earn profits, and of the educational
institutions are mostly to impart education and / or conduct research so on and so forth.
However, the fundamental objective of any organization is survival. Organizations are not just
satisfied with this goal. Further the goal of most of the organizations is growth and / or profits.

1. To create and utilize an able and motivated workforce, to accomplish the basic
organizational goals.
2. To establish and maintain sound organizational structure and desirable working
relationships
41 | P a g e

among

all

the

members

of

the

organization.

3. To secure the integration of individual or groups within the organization by coordination of the individual and group goals with those of the organization.
4. To create facilities and opportunities for individual or group development so as to
match it with the growth of the organization.
5. To attain an effective utilization of human resources in the achievement of
organizational goals.
6. To identify and satisfy individual and group needs by providing adequate and
equitable wages, incentives, employee benefits and social security and measures for
challenging work, prestige, recognition, security, status.
7. To maintain high employees morale and sound human relations by sustaining and
improving the various conditions and facilities.
8. To strengthen and appreciate the human assets continuously by providing training
and development programs.
9. To consider and contribute to the minimization of socio-economic evils such as
unemployment, under-employment, inequalities in the distribution of income and
wealth and to improve the welfare of the society by providing employment
opportunities to women and disadvantaged sections of the society.

10. To provide an opportunity for expression and voice management.

11. To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and creation of favorable atmosphere
for maintaining stability of employment.
13. To respect the individual, as people are the greatest asset.

42 | P a g e

14. To govern individual and company relationships with the highest standard of
conduct and integrity.
15. To be close to the customer through employees.
16.To achieve and maintain leadership in people management.

Limitations of Hrm1. The future is uncertain :The future in any country is uncertain i.e. there are political, cultural, technological
changes taking place every day. This effects the employment situation. Accordingly
the company may have to appoint or remove people. Therefore HRP can only be a
guiding factor. We cannot rely too much on it and do every action according to it.
2. Conservative attitude of top management :Much top management adopts a conservative attitude and is not ready to make
changes. The process of HRP involves either appointing. Therefore it becomes very
difficult to implement HRP in organization because top management does not support
the decisions of other department.
3. Problem of surplus staff :HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,.
However when certain employees are removed from company it mostly affects the
psyche of the existing employee, and they start feeling insecure, stressed out and do
not believe in the company. This is a limitation of HRP i.e. it does not provide
43 | P a g e

alternative solution like re-training so that employee need not be removed from the
company.

4. Time consuming activity :HRP collects information from all departments, regarding demand and supply of
personnel. This information is collected in detail and each and
Every job is considered. Therefore the activity takes up a lot of time.
5. Expensive process The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc.
company has to spend a lot of money in carrying out the activity. Hence we can say the
process is expensive.

Scope of HRM
The scope of HRM is extensive and exhaustive. An understanding of HRM is important to
anyone who is employed in an organization. HR issues become important wherever there is a
group of workers. Staffing is performed by all the managers as a managerial function, either
directly or indirectly through the HR department. All managers are, in this way, HR managers
since they get involved in HR activities like choosing, training, inducting, compensating and
motivating the employees along with industrial relations activities. Thus, they must understand
the scope and application of the personnel policies of their organization in order to ensure that
their everyday personnel actions are consistent with those policies as any violation of such
policies may get them into confrontations with their subordinates.
Further, knowledge of the basics of HRM is important even to non-managerial employees as
they may be keen to know the impact of the personnel policies of their organization on their own
compensation, training and career growth aspects. Thus, the personnel aspects of management
run through the entire organization.
The Institute of Personnel Management (IPM)7 has mentioned the scope of HRM as follows:
Personnel or Labour Aspect The first aspect deals with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, lay-offs and retrenchment,
remuneration, incentives and productivity.

44 | P a g e

Welfare Aspect This aspect is concerned with the working conditions and with amenities such
as canteen, crches, rest- and lunch-rooms, housing, transport, medical assistance, education,
health and safety, and recreation facilities.
Industrial Relations Aspect This aspect pertains to unionmanagement relations, joint
consultations, collective bargaining, grievance and disciplinary actions, and settlement of
disputes.
In the last decade, there has been a realization amongst managers that good plans, effective
organizational structures, impressive plants and modern technologies may not guarantee the
success of the organization unless they hire the right persons, train them suitably, appraise them
properly, and constantly motivate them to get the desired results. This new understanding showed
the way for further research in the field of HR aspects, resulting in the development of new
techniques and styles of HR management. This has further widened the scope of HRM.

Qualities of an HR ManagerHR managers have to perform several roles to discharge their duties and responsibilities. For
instance, they have to act as recruiters, placement specialists, training and development
specialists, employee welfare experts, employee benefits specialists, compensation and job
analysis specialists, labour relations experts and human resources information system specialists,
apart from being good counsellors. For instance, Armstrong13 points out that HR practitioners
have to play the roles of business partners, strategists, interventionists, innovators, internal
consultants, monitors and volunteers (proactive role).
The successful performance of the diverse HR tasks would require a multi-disciplinary
knowledge for the HR managers. It would be good for them to have a working knowledge in the
fields of business administration, law, behavioural sciences, industrial psychology, sociology,
political science, economics, statistics, engineering, finance and computers. Apart from these,
they would require the following personal and job-related qualities and skills to become effective
performers.

45 | P a g e

Review of Literature & AnalysisA first overview of the literature suggests that when it comes to selfevaluation, HR
professionals are more interested in collecting official performance metrics than in
taking time to ask questions of their key service users. Techniques such as benchmarking,
strategy mapping and the balanced scorecard are cited considerably more
often in academic papers and published reports than are customer surveys or similar
feedback mechanisms. These former, hard performance measures, rarely or only
peripherally incorporate consultation with managers and employees, and hence are
unlikely to give a comprehensively accurate picture of what customers want from
their HR function. A little further below the surface, however, it does appear that the
department is at least listening to the views of those individuals who are on the
receiving end of it activities.
In a survey by the CIPD of almost 1,200 senior HR practitioners (Emmot, 2003), line
managers views were the most frequently cited measure of HR performance, with 70
per cent of respondents indicating that this form of assessment was used in their
organisation. Business outcomes was ranked second, with employee surveys the
third most popular measurement tool just over half of the sample reported using
these. Only a quarter spoke of relying on costbenefit analyses. These figures present a
contrasting view to that suggested by the dearth of published or otherwise available
material on the subject of soft performance measures, and suggest perhaps not
surprisingly that HRrelated communications between the department, managers
and employees tend to be informal, or, at least, unpublished outside the individual
organisation concerned.
To know what customers want, however, is not necessarily to act upon it. The almost
notoriously poor reputation of HR suggests that while the function may be to an extent
aware of customer requirements, it fails put this knowledge into practice. Reinforcing
this view, IRS (Crail, 2006) present survey data drawn from HR representatives who
claimed that communications from employees rarely influenced their priorities. Over
fourfifths reported not taking a lot of note of what workers thought. Citing a survey
by the Rialto Consultancy, the Involvement and Participation Association (IPA, 2005)
argue that HR needs a brand overhaul to deal with the negative perceptions
surrounding it, and develop a more relevant value proposition to the business.
Customer views can of course vary considerably between individuals, groups and
organisations. It is for this reason that Edgar and Geare (2004) argue against the
universal applicability of Best Practice models, and the implication that employees
46 | P a g e

can be treated as a homogeneous cluster. Their research identifies gender differences

in the relative importance assigned to different HR policies and practices. Meanwhile
Guest (1999) found that employees in nonbluecollar jobs, those in the private sector,
those on permanent contracts and those in traditional industrial and manufacturing
sectors, reported a greater awareness and experience of HRM than workers falling
under other occupational categories.
Howes (2003) similarly notes the importance of considering biographical and functional
subsets within benchmarking data, as opposed to relying on aggregate measures as a
basis for decision making. Factors such as gender, tenure, grade and occupational
group may show significant intervariation on a wide range of HR metrics, and it is
fair to assume that these differences will extend to attitudinal data also.

47 | P a g e

RESEARCH METHODOLOGY

Research Methodology :
The process used to collect information and data for the purpose of making business decision.
The methodology may include publication research , interviews , surveys and other research
techniques , and could include both present and historical information.

There are 2 Types of Research these are :

I.

Descriptive

II.

Exploratory

DESRIPRTIVE :
It is a study designed to depict the participants in an accurate way. More simply put,
descriptive research is all about describing people who take part in the study. There
are three ways a researcher can go about doing a descriptive research project, and
they are:
1 )Observational 2)Case study 3)Survey
EXPLORATORY :
Investigation into a problem or situation which provides insights to the researcher.
The research is meant to provide details where a small amount of information exists. It
may

use

variety

of methods such

as trial studies, interviews, group discussions, experiments, or other tactics for the
purpose of gaining information.

48 | P a g e

4.1 : Data collection method :

The way facts about a program and its outcomes are amassed. Data collection methods often
used in program evaluations include literature search, file review, natural observations, surveys,
expert opinion, and case studies. There are two types of Data collection methods:-

Primary Data : Data collected by an evaluation team specifically for the evaluation study.
Secondary Data : Data collected and recorded by another (usually earlier) person or
organization, usually for different purposes than the current evaluation.

The research is descriptive type of research and the data collection method is secondary type of
data.

Secondary data is collected through journals, newspapers, magazines, internet etc.

Key Findings
Challenges to HRM49 | P a g e

1. Change Management

Since this is generally not a focal point for HR professional training and development, change
management represents a particular challenge for personnel management. The WFPMA finds
that "This may also be the reason why it is cited as the foremost issue as HR continues to attempt
to help businesses move forward. An intensified focus on training may be needed to develop
added competencies to deal with change management."
2. Leadership Development

As the second of the biggest challenges for human resource management, leadership
development needs to be a critical strategic initiative. HR professionals are faced with being
expected to provide the essential structures, processes, tools, and points of view to make the best
selection and develop the future leaders of the organization. The WFPMA reports that, "Across
the globe leadership development has been identified as a critical strategic initiative in ensuring
that the right employees are retained, that the culture of the organization supports performance
from within to gain market position, and that managers are equipped to take on leadership roles
of the future so that the organization is viable in the long term."
3. HR Effectiveness Measurement

How can improvement happen without the right tools to measure HR effectiveness? As with
many other areas of business, this profession also needs to be able to measure results in terms of
transaction management, as well as in terms of the positive influence on business. "Utilizing
metrics to determine effectiveness is the beginning of a shift from perceiving HR's role as purely
an administrative function to viewing the HR team as a true strategic partner within the
organization," the WFPMA says. "In fact, the next section reports that survey participants believe
a critical future issue for HR will be organizational effectiveness - again supporting HR's critical
role as a strategic partner to management."

RECOMMENDATIONS
50 | P a g e

How to solve the challenges to HRMExpand Your Skills and Enhance Your Expertise
To meet or exceed all of these human resource management challenges, you'll need proven tools
and strategies. The best way to gain the necessary expertise is by earning your Master of Science
in Human Resource Development entirely online from U.S. News & World Report-ranked
Villanova University. In Villanova's online HR master's degree program, you'll learn how to:

Implement strategic organizational change for increased quality, productivity and employee
satisfaction

Construct an effective training program

Design a compensation system that motivates employees

Structure benefit packages and measure their success

Identify principles for developing, utilizing and conserving human resources

Use data and statistics to make informed business decisions

Leverage technology to enhance the contributions of the human resource function to an

organization

Develop financial management and budgetary skills

51 | P a g e

CONCLUSION

52 | P a g e

BIBLIOGRAPHY

53 | P a g e