Professional Documents
Culture Documents
SEMESTER I
BK ID B1626
Scope of HRM
Human Resource Management: Scope. The scope of HRM is very wide:
Personnel aspect-This is concerned with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
1- Employees Hiring
The process of interviewing and evaluating candidates for a specific job and
selecting an individual for employment based on certain
criteria. Employee selection can range from a very simple process to a very
complicated process depending on the firm hiring and the position.
2- Remuneration
Reward for employment in the form of pay, salary, or wage, including
allowances, benefits (such as company car, medical plan, pension plan),
bonuses, cash incentives, and monetary value of the noncash incentives.
3- Employee Motivation
4- Employee Maintenance
6- Prospect of Employees
Potential customer or client qualified on the basis or his or her buying authority,
financial capacity, and willingness to buy. Also called sales lead.
Employment prospects means what employment opportunities you currently
have available to you. For example, if you are currently being interviewed
forseveral companies, those companies are your prospects.
(B) Organising
Organising is that managerial process which seeks to define the role of each
individual (manager and operator) towards the attainment of enterprise
objectives; with due regard to establishing authority-responsibility relationships
among all; and providing for co-ordination in the enterprise-as an in-built
device for obtaining harmonious groups action.
(C) Directing
2- Operative
(A) Procurement -
The act of obtaining or buying goods and services. The process includes
preparation and processing of a demand as well as the end receipt and approval
of payment. It often involves
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.
The process of procurement is often part of a company's strategy because the
ability to purchase certain materials will determine if operations will continue.
(B) Development
The systematic use of scientific and technical knowledge to meet specific
objectives or requirements.
2. An extension of the theoretical or practical aspects of a concept, design,
discovery, or invention.
3. The process of economic and social transformation that is based on complex
cultural and environmental factors and their interactions.
4. The process of adding improvements to a parcel of land, such as grading,
subdivisions, drainage, access, roads, utilities.
(C) Compensation
Compensation is the total amount of the monetary and non-monetary pay
provided to an employee by an employer in return for work performed as
required. Essentially, it's a combination of the value of your pay, vacation,
bonuses, health insurance, and any other perk you may receive, such as free
lunches, free events, and parking.
(D)Integration
Integration is the act of bringing together smaller components into a single
system that functions as one. In an IT context, integration refers to the end result
of a process that aims to stitch together different, often disparate, subsystems so
that the data contained in each becomes part of a larger, more comprehensive
system that, ideally, quickly and easily shares data when needed. This often
requires that companies build a customized architecture or structure of
applications to combine new or existing hardware, software and other
communications.
(E) Maintenance
The objectives can vary across the several departments in the organization such
as the personnel demand may differ in marketing, finance, production, HR
department, based on their roles or functions.
Also, the future vacancies can be estimated, so as to plan for the manpower
from both the internal (within the current employees) and the external (hiring
candidates from outside) sources. Thus, it is to be ensured that reservoir of
talent is maintained to meet any vacancy arising in the near future.
Whereas, if the Demand is less than supply, there arises a surplus in the human
resources, and hence, the employees have to be removed either in the form of
termination, retirement, layoff, transfer, etc.
After the employment plan, the training programmes are conducted to equip the
new employees as well as the old ones with the requisite skills to be performed
on a particular job.
At this stage, the firm has to decide the success of the plan and control the
deficiencies, if any.
Thus, human resource planning is a continuous process that begins with the
objectives of Human Resource planning and ends with the appraisal or feedback
and control of the planning process.
HR Forecasting Techniques
Human resource planning can improve operational efficiency and increase the
profitability of a business of any size. HR planning doesnt, however, include
making staffing decisions on the fly. A strategic HR policy can eliminate
confusion, streamline the hiring process and save precious time for a small
business owner who never has enough of it. Including forecasting as an integral
part of HR planning fulfills efficiency and profitability objectives by ensuring
the business is not overstaffed or understaffed.
Forecasting Basics -
Forecasting is a systematic process of predicting demand and supply. Human
resources forecasting seeks to secure the necessary number and quality of
employees for a business to achieve strategic goals. Although forecasting
techniques can be complex and full of statistical calculations, a more practical
approach is just as effective and less difficult for a small business to implement.
Demand and supply forecasting techniques use sales or production projections
for the coming year as well as quantitative and qualitative assessments.
Quantitative assessments identify how many and when, while qualitative
assessments identify desired personal qualities and role-related qualifications.
Trend Analysis-
Ratio Analysis -
A new businesses, or one having less than five years of historical staffing data,
often uses a ratio analysis forecasting technique. Ratio analysis uses elements
called causal factors that can be linked to and help predict future staffing needs.
A business might identify production or sales volume as a causal factor and
estimate, for example, that it needs one customer service representative for
every five clients or one production line worker for every 5,000 widgets. If
projections determine the business will handle 500 clients or produce 500,000
widgets over the coming year, forecasting sets demand at 100 employees for
each.
Supply Forecasting
Benefits
A payment or entitlement, such as one made under an insurance policy or
employment agreement, or public assistance program. Or, more generally,
something of value or usefulness