HUMAN RESOURCE MANAGEMENT

UNIT 1 - HUMAN RESOURCE

MANAGEMENT
Human Resource is :
• Total knowledge
• Skill
• Creative abilities
• Talents and
• Aptitudes of an organization's workforce as well as
the values , attitudes and beliefs of the individuals involved.
 Meaning and Definition of
HRM
• HRM means employing people, developing their
resources, utilizing, maintaining and services in tune with
the job and the organizational requirements;
• with a view to compensating their services with a view to
contribute to the goals of the organization, individual and
the society.
 FACTORS INFLUENCING HRM
• Size of the work force.
• Rising employees expectations.
• Changing technologies.
• Changing life styles.
• New skill requirements.
• Environmental changes.
• Culture prevailing in the organization.
• Politics.
• Impact of new economic policy.
 SCOPE OF HRM

PERSONNEL WELFARE
ASPECT ASPECT

INDUSTRIAL
ASPECT
 Personal Aspect

1.HR PLANNING • Human Resource Planning – It is the process by which the

organization identifies the number of jobs vacant.
2.JOB ANALYSIS AND JOB
DESIGN • Job Analysis and Job Design – Job analysis is the
systematic process for gathering, documenting, and
analyzing data about the work required for a job.
3.REMENTCRUITMENT AND •
SELECTION Recruitment and Selection – Recruitment is the process of
preparing advertisements on the basis of information
collected from job analysis and publishing it in newspaper.
4.ORIENTATION AND Selection is the process of choosing the best candidate
INDUCTION among the candidates applied for the job.

• Orientation and Induction – Making the selected candidate

5.TRAINING AND informed about the organization’s background, culture,
DEVELOPMENT values, and work ethics.

• Training and Development – Training is provided to both

6.PERFORMANCE new and existing employees to improve their performance.
APPRAISAL
• Performance Appraisal – Performance check is done of
every employee by Human Resource Management.
7.COMPENSATION Promotions, transfers, incentives, and salary increments are
PLANNING AND decided on the basis of employee performance appraisal.
REMUNERATION
• Compensation Planning and Remuneration – It is the job
8.MOTIVATION of Human Resource Management to plan compensation and
remunerate.

• Motivation – Human Resource Management tries to keep

employees motivated so that employees put their maximum
efforts in work.
 WELFARE ASPECT
• Human Resource Management have to follow certain
health and safety regulations for the benefit of
employees. It deals with working conditions, and
amenities like - canteens, creches, rest and lunch rooms,
housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
•
 INDUSTRIAL ASPECT
• HRM works to maintain co-ordinal relation with the union
members to avoid strikes or lockouts to ensure smooth
functioning of the organisation. It also covers - joint
consultation, collective bargaining, grievance and
disciplinary procedures, and dispute settlement.
 FUNCTIONS OF HRM
• MANAGERIAL FUCTION
• OPERATIVE FUNCTION
 MANAGERIAL FUNCTION
PLANNING
Planning involves activities
with an objective to achieve
organisational goals.
ORGANISING
Organizing involves
development of
organizational structure by
allocating duties and
delegating responsibilities
to individuals as and when
required.

STAFFING
Staffing involves hiring the
right quality of people in
the right number and at the
right time.
CONTROLLING
DIRECTING
The process of controlling
The process of directing
involves keeping a track of
involves effectively
whether a plan has been
implementing the
implemented as required
formulated plan to achieve
and conducting
the organisational
performance evaluation
objectives.
activities.
 OPERATIVE FUNCTION
• Human Resource Planning: Maintaining an adequate pool of talented workforce.

• Recruitment and Selection: Searching suitable candidate and opting the best.

• Placement and Induction: Placing the candidate in the right type of job and familiarizing them with
the work environment.

• Training and Development: Providing relevant training as per the job requirement.

• Employee Compensation: Remunerating the employees for their service.

• Performance Appraisal: Evaluating employees performance for appraisal.

• Employees health and safety: Clean and safe working conditions for employees.

• Motivating employees: Inspiring employees to contribute towards organizational goals.

• Grievance Management: Addressing the problem and grievances of employees.

 NATURE OF HRM
1. HRM is based on certain principles and policies contribute to the
achievement of organisational objectives.
2. HRM is a pervasive function – Human resource management is not
specific to an individual department,
3. HRM is people oriented – People or human resource is the core of
all the activities of human resource management.
4. HRM is continuous activity – All factors of production are required
to be continuously updated and improved to cope up with the
changes and increased competition.
5. HRM is a part of management function.
6. HRM aims at securing maximum contribution.
7. HRM aims at optimum use of personnel power.
 IMPORTANCE OF HRM
• According to Peter F. Drucker ―The proper or improper use of
the different factors of production depend on the wishes of the
human resources.
• Human resources can increase cooperation but it needs proper
and efficient management to guide it.
Because of the following reasons human resource management
holds a place of importance.
1. It helps management in the preparation adoption and
continuing evolution of personnel programs and policies.
2. It supplies skilled workers through scientific selection
process.
3. It ensures maximum benefit out of the expenditure on
training and development and appreciates the human assets.
HRM MODELS
HARD AND SOFT MODELS
 HARD HRM
• Treats employees simply as a
resource of the business (like
machinery & buildings)
• what resources do we need,
how do we get them and how
much will they cost
• Focus of HRM: identify
workforce needs of the business
and recruit & manage
accordingly (hiring, moving and
firing)
• KEY FEATURES OF HARD
HRM
• Short-term changes in employee
numbers (recruitment,
redundancy)
• Minimal communication, from
the top to down
• Pay – enough to recruit and
retain enough staff (e.g.
minimum wage)
• Little empowerment or
delegation
• Appraisal systems focused on
making judgements (good and
bad) about staff
• Taller organisational structures
• Suits autocratic leadership style
 SOFT HRM
• Treats employees as the most
important resource in the
business and a source of
competitive advantage
• Employees are treated as
individuals and their needs are
planned accordingly
• Focus of HRM: concentrate on
the needs of employees – their
roles, rewards, motivation etc
• Key features
• Strategic focus on longer-term
workforce planning
• Strong and regular two-way
communication
• Competitive pay structure, with
suitable performance-related
rewards (e.g. profit share, share
options)
• Employees are empowered and
encouraged to seek delegation
and take responsibility
• Appraisal systems focused on
identifying and addressing
training and other employee
development needs
• Flatter organisational structures
HARD AND SOFT HRM MODEL
HARVARD MODEL
• It incorporates recognition of a range of stakeholder
interests.
• It emphasizes choice – it is not driven by situational or
environmental determinism.
HARVARD MODEL
CONTENTS
• NEED OF HR PLANNING
• NATURE OF HR PLANNING
• IMPORTANCE OF HR PLANNING
• PROCESS OF HR PLANNING
• FACTORS OF HR PLANNING
• REQUISITES OF HR PLANNING
• BARRIERS OF HR PLANNING
HUMAN RESOURCE OR MANPOWER PLANNING

• Manpower Planning which is also called as Human

Resource Planning consists of putting
• right number of people
• at the right place,
• at right time,
• doing the right things for which they are suited for the
achievement of goals of the organization.
NEED OF HR PLANNING
Manpower planning not only analyses the current human
resources but also makes manpower forecasts.
• Shortages and surpluses can be identified so that quick
action can be taken wherever required.
• All the recruitment and selection procedures are based on
manpower planning.
• It also helps to reduce the labour cost as excess staff can
be identified and thereby overstaffing can be avoided.
NEED OF HR PLANNING
• It also helps to identify the available talents in a concern
and accordingly training programmes can be chalked out
to develop those talents.
• It helps in growth and diversification of business. Through
manpower planning, human resources can be readily
available and they can be utilized in best manner.
• It helps the organization to realize the importance of
manpower management which ultimately helps in the
stability of a concern.
IMPORTANCE OF HR PLANNING
• Key to managerial functions- The four managerial
functions, i.e., planning, organizing, directing and
controlling are based upon the manpower.
• Efficient utilization- Efficient management of personnel
becomes an important function in the industrialization
world of today.
• Motivation- Staffing function not only includes putting
right men on right job, but it also comprises of
motivational programmes , i.e., incentive plans to be
framed for further participation and employment of
employees in a concern.
IMPORTANCE OF HR PLANNING
• Better human relations- A concern can stabilize itself if
human relations develop and are strong. Human relations
become strong trough effective control, clear
communication, effective supervision and leadership in a
concern.
• Higher productivity- Productivity level increases when
resources are utilized in best possible manner.
• Higher productivity is a result of minimum wastage of
time, money, efforts and energies. This is possible
through the staffing and it's related activities (
Performance appraisal, training and development,
remuneration)
NATURE OF HR PLANNING

• Inherent Part Of Management

• Pervasive Function
• Basic To All Functional Areas
• People Centered
• Personal Activities Or Functions
• Continuous Process
• Based On Human Relations
HUMAN RESOURCE PLANNING
PROCESS OF HR PLANNING
• Analysing the corporate level strategies
• Demand forecasting

i. Executive or Managerial Function

ii. Statistical Tool
iii. Work –study Method
iv. Delphi Method
• Analysing Human resource supply
• Estimating Manpower gaps
• Action Planning
DEMAND FORECAST
1. Executive or managerial
judgment
• a. Bottom –up Approach.
• b. Top –down Approach.
• c. Participative approach.
2.Statistical Techniques
a. Ratio –trend analysis.
Past data is taken for study
• 4. Delphi Method
Named after Greek Oracle at the
city of Delphi.
“A process in which the forecasts
and judgments of a selected
group of experts are solicited and
summarized in an attempt to
determine the future HR demand.”

3. Work study Method

Demand is estimated based on work
load
Appropriate of repetitive jobs
FACTORS AFFECTING HRP
• Internal environment
• Promotion
• Policy of open competition
• Responsibility for staffing
• Overcoming resistance
• Effects of external environment
BARRIERS OF HRP
• Coordination with other Managerial functions:-
To be effective, manpower planning must be
integrated with other management functions.
• Communication Barriers:-
Whether communication barriers stem from
language or cultural differences, or whether a manager
simply is an ineffective communicator, poor
communication can make it hard to express goals and
organizational mission.
• Poor Leadership:-
Leaders who are insecure or fearful in their own
position within an organization are ineffective when it
comes to planning. A leader must inspire those around
him to work to their full capability.
• Identify Crisis:-
Till the specialists develop a strong sense of purpose, planning
cannot be effective.
• Management Information System:-
In the absence of reliable data, it would not be possible to have
effective planning.
• Uncertainties:-
It is risky, to depend upon general estimates of manpower, in the
face of rapid changes in the environment.
Absenteeism, turnover, seasonal employment, technological
changes and market fluctuations are the uncertainties, which serve
as a constraints to manpower planning.
Although discounts are made for these factors, while preparing
the plan, but these factors cannot be estimated correctly.

Expensive and Time Consuming:-

Manpower planning is an expensive and time consuming process.
Employers may resist manpower planning, feeling that I increases the
cost of manpower.
REQUISITES OF HRP
• HRP must be recognized as an integral part of corporate
planning.
• Support of Top management is needed.
• Responsibilities must be centralised in order to co-
ordinate consultation.
• Records must be complete, up-to-date and readily
available.
• Planning should be suited to the data available.
STRATEGIC MANAGEMENT
CONCEPT OF STRATEGY
The term strategy began to be used in business with increase in
competition and complexity of business operations.
A strategy is an administrative course of action designed to
achieve success in the face of difficulties. It is a plan for meeting
challenges posed by the activities of competitors and
environmental forces.
Strategy is the complex plan for bringing the organization from a
given state to a desired position in a future period of time.
For example, if management anticipates price-cut by
competitors, it may decide upon a strategy of launching an
advertising campaign to educate the customers and to convince
them of the superiority of its products.
JOB ANALYSIS
Job analysis in human resource management (HRM) refers
to the process of identifying and determining the duties,
responsibilities, and specifications of a given job.
It encompasses the collection of data required to put
together a job description that will attract the right person to
fill in the role.
Helps establish the level of experience, qualifications,
skills and knowledge needed to perform a job successfully.
JOB ANALYSIS METHOD
3 METHODS IN JOB ANALYSIS

1. INTERVIEW
2. QUESTIONNAIRE
3. OBSERVATION
1.INTERVIEW
Job analysts conduct interviews with incumbents to collect
information about their tasks and how they are coping with them.
Interviews can be structured and unstructured depending on your
corporate culture.
1. STRUCTRURED INTERVIEW
2. UNSTRUCTURED INTERVIEW
 1.STRUCTURED INTERVIEW
• follow a systematic approach
where employees are
interviewed accurately and
consistently, following a preset
format. In a structured
interview, you typically see that:
• All interviewees are asked the
same questions in the same
order.
• Interviewers record, compare
and evaluate answers against
standardized criteria.
• The interview process remains
the same even if the
interviewer changes.
2.UNSTRUCTURED INTERVIEW
• Unstructured interviews, on the other
hand, unravel without a preset
structure. The interview process is
carried out as a conversation with no
specific questions predefined.
• Interviewees may receive different
questions or the same questions
may be asked in a different order.
• Interviewers don’t always use
standardized criteria for recording,
comparing and evaluating answers.
• The interview process varies
depending on the interviewer.
2. QUESTIONNAIRE
As the name suggests, this method requires employees, supervisors, and managers to
fill out forms, namely questionnaires. It’s one of the most widely used job analysis
methods because it’s inexpensive to create and easy to distribute to numerous
individuals at a faster rate. Questionnaires can have different question forms, such as
open-ended questions, multiple choice, checklists or a mix of all of them.
These are the most common areas that questionnaires focus on:
• Knowledge, skills, experience, and qualifications
• Duties performed daily
• Duties performed less frequently
• Equipment and materials used for duties
• Time spent on different job duties
Physical and emotional input
• Level of job satisfaction
• Salary and compensation
• Work conditions
• Additional comments
3.OBSERVATION
The observation method enables job analysts to observe employees in their
daily routines. The information collected through observation is extremely
useful and reliable since it’s via first-hand knowledge. Observation is the only
job analysis method that allows the job analyst or HR professional to directly
obtain the data, whereas other job analysis methods collect data indirectly and
in an orchestrated environment.
Some of the disadvantages of using the observation job analysis
method include:
1. Distortion of information if an employee is aware of the observation.
2. Awareness may affect the work output during the observation.
3. Not all job duties and reactions can be observed in the set time
frame.
4. Higher managerial and executive roles may be difficult to observe
fully.
JOB DESIGN
Job design is the process of Work arrangement (or
rearrangement) aimed at reducing or overcoming job
dissatisfaction and employee alienation arising from
repetitive and mechanistic tasks. Through job design,
organizations try to raise productivity levels by offering non-
monetary rewards such as greater satisfaction from a
sense of personal achievement in meeting the increased
challenge and responsibility of one's work. Job
enlargement, job enrichment, job rotation, and job
simplification are the various techniques used in a job
design exercise.
JOB DESIGN PROCESS
• a) Deciding the contents of the job.
b) Deciding methods & processes to carry out the job.

• c) Making optimize use of job/work-time so that job/work-time

should not be wasted as time is money and time cannot be
earned, but can be saved by making efficient use of it.
• d) Avoiding manual task if can be handled by machines or
automated.

• e) Synchronization of work, and no conflict with other jobs

• f) Deciding the relationship which exists in the organization.

•
METHODS OF JOB DESIGN
1. Job simplification: under this method the complete job is broken into
small sub parts which do not require much specialized training.

2. Job rotation: it means shifting the people from one job to another within
the working group. So that there is variety of job as well as relief from the
boredom. As per Hertzberg it is one zero for other as there is transfer of
job to same level and status. Job rotation may be horizontal where the
employee spends two to three months in one activity or it may be
situational where the person is shifted to another job because when the
first one is no longer challenging to him,

3. Job enlargement: here job is horizontally enhanced. it means giving

variety of tasks or duties to be performed by the employees at the same
level. So it is adding zero to zero which means giving the employees more
tasks to do at the same level. For example clerk in an office only do typing
work so his job enlargement can be done by providing him the task of
drafting letters, filling the letters etc.

4. Job enrichment: it is a motivational technique. Where the content of the

job is increased or upgrading the scope or challenges of the work. It is a
vertically enhanced job by adding functions from other organizational
levels, making it contain more variety and challenges and offer pride to the
employee. In this way, he gains the feeling of higher status and power.
RECRUITMENT & SELECTION
• Recruitment and Selection process is defined as the
process through which the best individuals are selected
among a pool of applicants for particular positions of job.
Mostly managers consider selection process as one of
their critical decision functions in the organization. In
selection process, the managers actually try to match
knowledge, skills & abilities of the applicants with the
requirements of the jobs. There is no single selection
process that can be considered as standard one for all the
organizations. Rather the steps & procedure of selection
process varies from organization to organization.
PROCESS OF RECRUITMENT & SELECTION

1. Legal Considerations
2. Speed of Decision Making
3. Organizational Hierarchy
4. Applicant Pool
5. Types of Organization
6. Probationary Period
7. Selection Criteria
1.Legal Considerations: HRM is influenced by the court decisions, executive
orders & legislation. The management of the organization should use the legally
defensive selection tools in the selection process.
2.Speed od Decision Making : The recruitment and selection process is directly
influenced by the available time to make the decision of selection. In general
cases the selection process is followed by the specified policies & procedures to
protect the organization from legal issues. But in certain situations there is
much pressure on the organization that leads the management to follow the
exceptional selection process.
3. Organizational Hierarchy: Recruitment and selection process varies
according to the filling posts of different levels of hierarchy in the
organizational structure.
4. Applicant Pool: The recruitment and selection process is also influenced by
the number of applicants for a particular job. In case of many qualified
applicants for a particular post, the selection process becomes selective. For this
purpose, selection ratio is ascertained by comparing the number of selected
applicants to the number of applicants in a pool.
5.Type of Organization: The type of the organization like government
organization, private or non-profit organization etc, also affects the selection
process for the hiring individuals.
6.Probationary Period: Certain organization adopts the procedure
of probation period in the selection process to check the potential
of the individual on the basis of his performance. This may take
the form of either validity check on the selection process or as a
substitute of some steps of the selection process.
7. Selection Criteria :In most of the cases the applicants are
selected on the basis of following factors or criterion.
Education
Competence
Experience
Skills & Abilities
Personal Characteristics
PLACEMENT AND INDUCTION
PLACEMENT

Placement is a process of assigning a specific job to each of the selected candidates. It

involves assigning a specific rank and responsibility to an individual. It implies matching the
requirements of a job with the qualifications of the candidate.
The significances of placement are as follows: -
* It improves employee morale.

* It helps in reducing employee turnover.

* It helps in reducing absenteeism.

* It helps in reducing accident rates.

* It avoids misfit between the candidate and the job.

* It helps the candidate to work as per the predetermined objectives of the organization.
INDUCTION
• Once an employee is selected and placed on an appropriate job, the process
of familiarizing him with the job and the organization is known as induction.
Induction is the process of receiving and welcoming an employee when he
first joins the company and giving him basic information he needs to settle
down quickly and happily and stars work.
• OBJECTIVES
• Induction is designed to achieve following objectives: -
* To help the new comer to overcome his shyness and overcome his shyness
nervousness in meeting new people in a new environment.
* To give new comer necessary information such as location of a café, rest
period etc.
* To build new employee confidence in the organization.
* It helps in reducing labor turnover and absenteeism.
* It reduces confusion and develops healthy relations in the organization.
* To ensure that the new comer do not form false impression and negative
attitude towards the organization.
CAREER PLANNING
Career planning is the process by which one selects career
goals and the path to these goals. The major focus of
career planning is on assisting the employees achieve a
better match between personal goals and the opportunities
that are realistically available in the organization. Career
programmers should not concentrate only on career growth
opportunities. Practically speaking, there may not be
enough high level positions to make upward mobility a
reality for a large number of employees. Hence, career-
planning efforts need to pin-point and highlight those areas
that offer psychological success instead of vertical growth.
CAREER OBJECTIVES
Attract and retain talent by offering careers, not jobs.
ii. Use human resources effectively and achieve greater
productivity.
iii. Reduce employee turnover.
iv. Improve employee morale and motivation.
v. Meet the immediate and future human resource needs of
the organization on a timely basis