Professional Documents
Culture Documents
Human Focus:
HRM is concerned with the effective management of people possessing energy
and capabilities. It is individual oriented. It is specially focused on the human
oriented approach. The detailed investigation of human resource in
organization is made.
Pervasive:
HRM is a pervasive function of management. It is performed in all levels of
management. The responsibility of human resource can not be delegated to
others. HRM is practically implemented in the organization at various levels
Continuous:
HRM is a continuous function of management. In other words, it is not a onetime process. It will continue till the organization exists. It is continuously
monitored at every step of organization existence.
Dynamic:
HRM is not a static concept but a dynamic function. It is also affected by
internal environment like human resource policies, goals of the organization,
structure etc. it is also affected by external environment like PESTEL factors.
System:
HRM is a system of input, processing and output. It utilizes the input, process
it and also provide output. Therefore, human resource management is the
combination of input, processing and output, which is considered as a system.
3. Goal Harmony:
In an organization, there are individual and organizational goals, it brings
harmony in organizational goals and individual goals of employees. It recognize
and satisfies individual need in order to achieve overall organizational goals.
4. Productivity Improvement:
Human resource management is concentrated in providing different training
and other opportunities to the employees in order to increase skill and
productivity of individual employees. Better quality of human resources result
in improved productivity.
5. Efficiency:
Human resource management avoid wastage and promote efficiency of human
resources. It ensures cost-effective utilization of human resources. The higher
the productivity, higher is the efficiency of employees. In this way, the main
objective of human resource management (HRM) is also to increase the
efficiency of individual employee.
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2. Investment.
3. Main concerns
4. Information and
Communication.
5. Aims
Personnel Management
Personnel management has shortterm focus & therefore react specific
personal problems by providing
immediate solution. Whenever there
is problem, it makes plan.
Personnel management regards
investment in people as a variable
cost.
The personnel function in unionizes
organization was mainly concerned
with negotiating & administering
collective bargaining. It focuses on
rules and regulations.
Personnel management specialist
used communication and
information mainly as a source of
power and controlling activities.
Personnel management aims at nonmanager specialist and professionals
6. Outcome.
1. Globalization:
Globalization is the process by which, transaction of business organization
have been globalized across the world. Globalization provide platform for selling
goods and services from one country to another country. Only those companies
can survive from these processes which are able to employ and retain qualified
people. The challenges for human resource department are to review current
HR policies in order to meet globalization.
2. Increasing concern for security and employment:
Security and employment is also the major concern for HRM. The increasing
worldwide terrorism is a major challenge not only for nation but also for the
organization all over the world. Therefore, national security provided to people
is equally important. The 9/11 terrorist attack in the USA (World Trade Centre
& Pentagon) was a great challenge for the world. Million of people and
thousands of business organizations were affected by this incident. Therefore,
the internal security problem and external challenges is a major threat for any
country.
3. Work force Diversity:
The success of organization depends on how much it can respond to the
situation of workforce diversity, workforce from different countries with
different value, cultures, language, education, training background
representing different races and religions are participating in work place. The
role and responsibility of HRM is to handle diversity related problems.
4. Contingent Workforce:
Contingent workforce refers to the part time, temporary workers appointed for
short-term contract. Employers are now interested in appointing workers on
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Meaning:
There has been increasing competition in the market to provide quality and low
cost product and services. In this situation the human resource department in
the organization has to plan human resource activities in order to ensure
quality manpower, however many organization pay less attention to the proper
plan and utilization of human resources. HR/ employment/ manpower
planning/ human resource planning is the process of acquiring and utilizing
human resources in the organization. If the organization has right number of
employees at the right time, critical problems can easily be solved.
HR planning is prepared by human resource department in consultation
with line department by determining the right number of people the demand
and supply of manpower. The HR planning and supply of manpower. The HR
planning matches the demand and supply of human resources in order to meet
future activities.
According to Schuler, Personnel and HR planning involves forecasting human
resource needs for the organization planning the step necessary to meet those
need.
According to Decenzo & Robbins, Employment planning is the process of
determining organizations human resources.
From the above definitions, the characteristics of human resource planning are
as follows:It is related with the planning of human resources based on strategic plan.
It estimates demand and supply of manpower.
It assures that sufficient numbers of skilled and motivated employees are
available.
It helps to utilize human resources in a cost-effective manner.
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Human Resource Strategy:Meaning and Concept:HR strategy is an important tool to implement HRP in order to achieve business
objectives. HR strategies are generally linked vertically with business strategy
and horizontally with marketing, production and other strategy.
HR strategy is concerned with establishing relationship between longterm direction and business strategy. It is used to design the structure and
functions of an organization to improve the situation of co-ordination. To make
this clear, it is important to understand the concept of three order strategy. The
first order strategy is concerned with the long-term impact which affects
second order strategy. Second order strategy is related to organizational
structure and system of control. Finally, there is the third order strategy, which
is known as HR strategy. Without the third order strategy, other order strategy
can not be implemented.
>>According to Hall and Torrington, HR strategy involves a central philosophy of
the way that people are managed in an organization and transition of this in to
personnel policies and practices, and its interrelation with business strategy and
within itself.
>>According to Gary Dessler, HR strategy refers to the specific human resource
course of action the company plans to pursue to achieve its aims.
Features of Human Resource Strategy:-
1. Goal Oriented:HR strategy is always goal oriented. HR strategy is helpful to achieve the overall
organizational goals as well as the goal of HR department. In order to achieve
such goals, different courses of action related to HR strategy are important.
2. Environmental Consideration:HR strategy considers different environmental factors to implement it. Different
environmental factors such as, economic, social, cultural, political,
technological, trade organizations are considered before making human
resource strategy.
3. Long-term Perspective:HR strategy is made for short-term as well as long-term. However, many
strategic planning are made for long-term perspective. In the same way, HR
strategy is also made for long-term perspective. In other words, HR strategy has
long-term impact.
4. Integrated Approach:While designing HR strategy not only environmental factors are considered, but
also other factors of the organization like overall strategy, organizational
features, plans and policies are also considered. In this sense, HR strategy is
an integrated approach of many components.
1. Business Planning:Business planning is the plan made for achievement of business objectives. It
includes the following planning activities:a). Strategic Planning:It is prepared for a long period of time. The plan includes corporate philosophy,
environmental scanning, and constraints and the objectives goals of the
organization. Such plans are prepared with the involvement of the CEO.
b). Operational Planning:
Operational planning is made for a period of 3-5 years. It includes the middle
range operational activities of the business. It comprises plan programme,
organizational strategies and plan for the entry of new business. This plan
implements the strategic planning.
Figure:1
Strategic Approach:
Figure:2
1. Traditional Approach:This approach considered Hard technique to forecast the demand and supply
of manpower for the organization. It also considers the quantitative aspect of
human resources. This method provides ways and agreed method as technique
to work out manpower planning. According to this approach, HRP comprises
the following: - (see fig. 1)
Forecasting future demand of human resource.
Analysis of current human resource.
Forecasting internal human resource supply.
Reconciliation of forecasts.
Decision and plans.
2. Strategic Approach:According to this approach, HRP is taken to be the result of interaction among
the environmental development. This approach assumes that, together with the
Hard prediction of HR requirement. It is also necessary to make the prediction
of Soft factors such as, employees creativity, innovation and flexibility
required. The Soft HRP is directed towards the following activities (see fig. 2): Defining where the organization wants to be in the future.
Defining where the organization is at the moment.
Analysis environmental influence.
Formulation of plans to affect the desired changes and to ease transition.
2. Determining HR Objectives and Policies:After an analysis of internal and external environment, it is important to
develop HR objectives and policies. These objectives and policies are important
to tap (use) the HR in business opportunities. The human resource information
system (HRIS) helps by providing related information in this course of action.
3. Human Resource Forecast:Once the information is analyzed regarding current human resources, the next
step is to make a human resource forecast in order to meet the future
requirement. It consists of demand and supply forecasting (internal and
external supply).
4. Action Plan:Action plan is known as implementation plan. It is the execution of HRP and
objectives. The major activities required for the implementation of HRP are
recruitment, selection, socialization, training, development, transfer, promotion
etc.
5. Control and Evaluation:Once HRP is executed, it is important to monitor and evaluate in order to know
how the HRP matches human resource objectives. The best way to monitor and
evaluate the effect of human resource planning (HRP) on human resource
manager is to develop certain indicators. The result of evaluation is feed-back
to the human resource managers.
Assessing Current Human Resources:1. Human Resource Inventory:It is also called skilled inventory. A human resource inventory consists of up to
date information about the qualification and experience of selected categories
of employees. The information available from the HR inventory includes
personal data, educational qualification, result of performance appraisal,
training and career goals. This information facilitates the assessment of
current skilled manpower, which is useful to determine the need of special type
of manpower in the organization. Such inventory is useful at the time of
promotion, management, planning and reporting, compensation planning,
career planning etc.
2. Human Resource Information System (HRIS):HRIS has been implemented to assist HR inventory. This is designed to provide
quick information about the employees working in the organization. HRIS
include information on all employees (local and across the border) currently on
the organization and provide computerized information about the position and
skill available. HRIS consists the following categories:-
Group : 1
Group : 2
Group : 3
Group : 4
Group : 5
Basic-Non-Confidential Information:
-Employees Name
-Organizations Name
-Work Location
-Work Phone Number
General Non-confidential Information:
-Information in the previous category.
-Social insurance / Security Number.
-Other organizational information.
-Position related informational (code, title, effective date).
General Information with Salary:
-Information in the previous categories.
-Current salary, effective date, amount of last change, reason of last change.
Confidential Information with Salary:
-Information in the previous categories.
-Position ranking.
-Gender or minority status if needed for tracking employment equity programs.
-Educational data.
Extended Confidential Information with Salary:
-Bonus Information.
-Projected salary increase information.
-Performance evaluation Information.
3. Succession Planning:-
Succession Planning.
Vacancy on Managerial Post.
Vacancy within one year.
Vacancy within 2-5 years.
Vacancy beyond 5 years
Make short-term planning
Make long-term planning
Ready Now.
to fulfill the vacancy.
fulfill the vacancy.
In the post, organizational success was defined in terms of market growth,
diversification and financial resources. HRP and succession of managers were
based on intuition. These have affected the timely supply of qualified manpower
and many organizations have ultimately become less competitive. In this
competition age, it is very important to determine the right number of people at
the right time, at the right place and position.
Widely known as succession planning or management succession, it
ensures that the organization has individual ready to move in to position of
Delphi Technique.
Normal Grouping Technique
Managerial Estimate.
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In this technique, two variables are considered for the estimation of future HR.
the factors may be age, salary, production level, investment etc. in this
technique instead of X & Y, other factors are considered.
Multiple Linear Regression:
The difference between simple and multiple linear regression is that multiple
linear regression considers many variables. In this technique, instead of two
variables, many variables related to employees like, age, salary, capital,
investment and others are considered for HR demand.
Time Series:
In this technique, time is considered for the prediction of HR. in this technique,
the statistical tool called time series is considered. It depends up on the
increasing and decreasing trend of employees in the organization. A time series
figure is used to estimate future number of employees.
Once the number of manpower required for the future is estimated, the next
important task is to ensure the supply of manpower at the right time, at the
right place, and the right number. Supply forecasting helps in this purpose.
Internal supply of manpower and external supply of manpower is important for
the organization. The forecasting of HR supply are as follows:1. Judgmental Technique:
According to this technique, internal and external supply of manpower is based
on individual or group judgment. The popular techniques are as follows:
Replacement Planning:
Mr. A
Mr. B
Mr. C
*
*
*
Mr. D
Mr. E
Mr. F
?
#
*
Mr. G
Mr. H
Mr. I
#
*
*
Mr. *
J
Mr. K
#
Mr. L
?
Present Performance
Detail
Symbol
Outstanding
*#
Satisfactory
**
Need Improvement
*?
Promotional Potential
Detail
Symbol
Ready Now
#
Need Further
*
Training
Questionable.
?
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because of this, Nepalese organization lacks right numbers and kinds of people
at the right place and at the right time.
2. Lack of Assessment of Current Human Resource:
Most Nepalese organizations lack up-to-date human resource inventory which
describes the skills current available. They also lack effective human resource
data base information.
3. Missing Demand Forecast:
Nepalese organization lack proper demand forecast in terms of number and
skills of people required. Business organizations relate revenue forecast which
serve as the basis for the forecast of human resource demand.
4. Missing Supply Forecast:
Nepalese organization lack proper supply forecast of human resource from
inside and outside sources. Promotion and transfer are not planned in advance.
Given the professionals and skilled technicians are suffering from
unemployment.
Mismatch of Demand and Supply:
Nepalese organizations do not proper attention to matching demand and supply
forecast to determine shortage and surplus. Succession planning is not done
by Nepalese manager.
Short-term Horizon:
Human resource planning in Nepal has generally one year horizon strategic
planning is very much lacking. Implementation of human resource planning is
not effective.
Over Staffing and Under Staffing:
Most government agencies and public enterprises in Nepal suffer from over
staffing. The number one priority of Nepalese politician is not done by Nepalese
managers.
Private Sector Performance:
The family owned and managed private sector organizations do not bother
about human resource planning. They prefer to hire relatives, friends and near
and dear
From the above definition, it is clear that job refers to the work content
performed by a group of people with similar work, such as title described by
the title section officer or police officer when the job of a section officer is
analyzed, it sufficiently represent job of many other section officer too.
Meaning of Task:
A task is the collection of activities that are directed towards the achievement
of specific objectives. It is considered as to be a describe unit of work performed
by an individual. For example, the task of a police officer is to talk with political
leaders to settle political disturbance in an area.
Position:
According to McCormick, A position consists of the tasks and duties for any
individual. A position exists, whether occupied or vacant.
It refers to a set of duties, tasks, activities and elements to be performed
by a single worker. It means each employed person has a position rather than a
job. For example, a position of a police officer is Ram Sharma, sub-inspector,
kaski district police officer.
Occupation:
According to McCormick, the term occupation refers to a job of general class,
an across the board basis, without organizational line.
Some examples of occupation categories are accountant, engineer, doctor
etc. This occupation also clearly indicate what a person expertise lies on him.
Concept of Job Design:
Job design specifies the content of job and the method of doing the job. It is the
process of determining specific task to be included in a job and the method of
performing those tasks.
Job design integrates job content and method of doing the job in a way
that meet the need of the employer and employees. The key to successful job
design lies in balancing the need of the organization and employees.
>>According to Decenzo and Robbins, Job design is the way in which, job tasks
are organized in to a unique of work.
Job design involves mainly three steps: Specification of individual task.
Combination of task in to jobs that can be assigned to individual or group.
Specification of method of performing each task.
Job design affects productivity, cost, quality and cost-effectiveness of the
organization. It also affects the motivation and job satisfaction of employees.
Labor relations are affected by job design