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HUMAN RESOURCE CHAPTER 4

MANAGEMENT
FUNCTIONS OF HRM
•Human resources (HR) needed in identifying, attracting, and hiring the
type of employees who will be most qualified to help the company
achieve its goals
•Key roles of HRM dept:
• attract the right employees to the company,
• identify metrics to help employees
• stay on target to meet the company goals,
• reward them appropriately for
• their efforts so that they stay engaged and motivated.
• designing a high-performance work system to improve organisational
performance and develop employees talent.
FUNCTIONS OF HRM
7 key functions of HRM:
1. Recruitment
2. Selection
3. Training & development
4. Performance appraisal
5. Compensation
6. Employee separation/termination of employment
7. HR planning
HUMAN RESOURCE
PLANNING (HRP)
•process of forecasting the forthcoming HR requirements of the
organisation and defining as to how the existing HR capacity of the
organisation can be utilised to accomplish these requirements
• planning human resource capacity of the organisation.
• helps the management of the organisation in achieving the future
demand of human resource in the organisation with the supply of
the applicable people in appropriate numbers at the appropriate
time and place.
•analysis of the HR requirements can the process of recruitment and
selection be initiated by the management
HRP - 2 MAIN COMPONENTS OF HRP:

Job analysis Forecasting


•process to identify and determine in
detail the particular job responsibilities •process of predicting the total
and requirements of human resources number and types of employees
needed to perform the job. with the knowledge, skills and
•gather information about the abilities needed by an
obligations, responsibilities, necessary organisation in the future.
skills, outcomes, tools and equipment
and also work environment of a
particular job.
•asking employees using
questionnaires, observations, and
interviews or filming the tasks
HR FORECASTING
INTERNAL FORECASTING EXTERNAL FORECASTING
Internal factors influencing dd & External factors:
ss of HR:  Economic situation & unemployment
 Fin performance of org rate
 Productivity level  Labor unions
 Mission  Demographic trend
 Change in technology  Migration
 Retrenchment  Compeition
 Promotion  Market growth
 Retirement
 Mortality
RECRUITMENT
SELECTION
1. Application and Résumé Review
2. Interviewing
3. Test Administration
4. Making the Offer
TRAINING AND
DEVELOPMENT
 opportunities for employees to develop the job specific skills, experience
and knowledge they need to do their jobs or improve their performance.
 1st step in training - employee orientation.
Employee orientation is the process used for welcoming a new employee
into the organisation to gain an understanding of the company policies
and learn how their specific job requirement & introduce employees not
only to the company policies and procedures staff.
 internal and external training
Methods – on the job training, apprentice training & off the job training
PERFORMANCE APPRAISAL
Performance evaluation of an
employee done by:
Supervisors
Colleagues
Subordinates
360 degree evaluation
METHODS FOR
PERFORMANCE EVALUATION
1. Essay Writing: employee being evaluated explains about the strengths,
weaknesses, earlier performances, potential and suggestions in increasing
performance, good or poor performance is determined by the writing skill
and level of true performance of the evaluated employee.
2. Critical Incidents - identifying and describing specific events (or incidents)
where the employee did something really well or something requiring
improvement.
3. Measurement of Objective Performance - simple and countable performance
measurement, frequently using outputs, scraps, wastes, sales, customer
complaints or level of default.
4. Employee Comparisons - evaluators rank employees according to
performance and value to the organisation
COMPENSATION
Employee reward refers to the payment granted to the employee
as an exchange for the job that is carried out, either financial or
non-financial reward
COMPENSATION & BENEFITS
EMPLOYEE SEPARATION
Occurs when an employer or employee terminates/ends, maybe
voluntary on the employee’s part, or it may be influenced by the
employer, in the form of dismissal (firing) or layoff.
1. Employee Termination
2. Downsizing
3. Retirement
4. Employee Turnover
EMPLOYEE SEPARATION
EMPLOYEE SEPARATION
EMPLOYEE TURNOVER
takes place when an employee voluntarily ends his service with an
organisation,
aim is to retain a low turnover rate in order to reduce cost in terms
of recruiting, employing, training and seeking replacement,
can be functional turnover where a poorly performing employee
decides to resign voluntarily
Can be dysfunctional turnover when a high-performance employee
chooses to leave voluntarily leading to loss of a talented employee.
EMPLOYEE DOWNSIZING
RETIREMENT

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