UNIT 1

•Meaning, Nature and Scope

•Difference between HRM and Personnel Management
•HRM functions and objectives
•Evolution of HRM environment – external and internal.
•Human Resources Development in India: evolution and principles
of HRD, HRD Vs. Personnel functions, Role of HR managers
•Strategic Human Resource Management : Nature of
Strategies and Strategic Management, Strategic
Management Process – Environmental Scanning, Strategy
Formulation, implementation and evaluation.
CONCEPTS

 MANAGEMENT: Accomplishment of
organisational objectives by utilizing physical
and financial resources through the efforts of
Human Resource.
 Resources: Factors of production results in
conversion of raw material into useful
goods /services.
 Definition of HRM

According to Leon C.Megission,” HR is the total

knowledge,skills,creative abilities, talents and aptitudes
of an organization's workforce as well as the values,
attitudes and belief of the individuals involved.”

Defined as a art of procuring ,developing and maintaining

competent workforce to achieve goals of an
organisation in an effective and efficient manner.
 HRM
Human Resources help in
transforming the lifeless factors
of production into useful
products.
Capable of producing an output
that is greater than the sum of
inputs.
Can help an organisation
achieve results quickly, efficiently
and effectively.
Process

HR
Competence Building Planning

Recruitment
Managing and Selection
Corporate
Culture
Compensation/Re
muneration/Wag
Leadership & es&Salary admn
Team Building Performance
Management
NATURE OF HRM

 Pervasive force
 Action oriented
 Individually oriented
 People oriented
 Future-oriented
 Development oriented
 Integrating mechanism
 Comprehensive function
 Continuous process
Scope of HRM

 Personnel Aspect: concerned with manpower

planning,recruitment,selection,promotion,training
and development,incentives,productivity etc.
 Welfare Aspect: deals with working conditions and
amenities such as canteen,creches,transport,medical
assistance,education,recreation facilities.
 Industrial Relation Aspects: covers union-
management relations, joint consulatation,collective
barganing,grievances and settlement of disputes
,etc.
Objectives of HRM

 To help the organisation reach its goals

 To employ the skills and abilities of the workforce
efficiently
 To provide the organisation with well-trained and well-
motivated employees.
 To increase to the fullest the employ’s job satisfaction and
self-actualisation
 To develop and maintain a quality of work life.
 To communicate HR policies to all the employees
 To be ethically and socially responsive to the needs of
society.
Difference between HRM and Personnel
Management

Dimensions Personnel Management Human Resource

Management
Rules Importance of devising Can do outlook,
clear rules impatient with rules
Guide to management Procuders Business needs
action
Key relation Labour Management Customer
Speed of Decisions Slow Fast
Communication Indirect Direct
Managerial Task vis-à-vis Monitoring Nurturing
labour
Management Role Transactional Transformational
Leadership
 Difference between HRM and
Personnel Management Cont..

Respect for employees Labour is treated as a tool As assets to be used for

which is expendable and the benefits of an
replaceable organisation, its
employees and society as
a whole
Job Categories and grades Many Few
Job Design Divison of Labour Team work
HRM :Functions and Objectives
HRM OBJECTIVES SUPPORTING FUNCTIONS
1.)Societal Objectives 1.Legal Compliance
2.Benefits
3.Union-Management Relation
2.)Organisational Objectives 1.Human Resource Planning
2.Employee Relations
3.Selection
4.Training and Development
5.Appraisal
6.Placement
7.Assesment
3.)Functional Objectives 1.Appraisal
2.Placement
3.Assesment
4.)Personal Objectives 1.Training and Development
2.Appraisal
3.Placement
4.Compensation
5.Assessment
Importance of HRM
Human Resource Management helps an Organisation and its people to
realise their respective goals thus:
 At the Enterprise level: Attract and retain talent
Train People for challenging Roles
Develop skills and competencies
 At the individual level: Promote Team Spirit
Growth Opportunities to people
Develop loyalty and Commitment
Improve Job Satisfaction
 At the Society level: Generate Employment Opportunities
Increase Productivity and profit
 At the national Level: Enhance Standard of Living
Evolution of HRM Environment

Period Emphasis Status Roles

1920-30 Welfare management Clerical Welfare Administrator
Paternalistic practices Policeman

1940-60 Expanding the role to Administrative Appraiser

cover Advisor
Labour,Welfare,Indust Mediator
rial Relations and Legal Advisor
Personnel
Administration

1970-1980 Efficiency, Development Change Agent

Effectiveness Integrator
dimensions added Trainer
Emphasis on Human Educator
values, aspirations,
dignity, usefulness
Evolution of HRM Environment Cont….

1990s-Onwards Incremental Proactive,growth Developer

Productivity gains oriented Counsellor
through human Coach
assests Mentor
Problem Solver
Human Resources Development

Development is acquisition that are needed to

do the present job, or the future expected
job.
The purpose of Human resource Development
is to enhance an employee’s capacity to
successfully handled greater responsibilities,
through formal and informal means.
It is a positive concept in Human Resources
Management.
HRD Cont….
According to Prof.T.V Rao,HRD is a process by which the
employees of an organisation are helped in a continuous and
planned way to (1)acquire or sharpen capabilities required to
perform various functions associated with their present or
expected future roles (2)Develop their general capabilities as
individual and discover and exploit their own inner potential for
their own and /or organisational development
purposes(3)Develop an organisational culture in which superior-
subordinates relationships, team work and collaboration among
sub units are strong and contribute to the professional well
being, motivation and pride of employees.
In short,HRD aims at helping people to acquire competencies
required to perform all their functions effectively and make their
organisation do well.
Features of HRD

 HRD is a system
 HRD is a planned process
 HRD involves development of competencies
 HRD is an inter-disciplinary concept
 HRD improves quality of life
Objectives of HRD
 HRD,basically ,aims at developing:
The capabilities of each employees as an individual;
The capabilities of each individual in relation to his or her
present role;
The capabilities of each employee in relation to his or her
expected future roles(s);
The relationship between each employee and his or her
employers;
The team spirit and functioning in every organisational unit;
Collaboration among different units of the organisation;
The organisation ‘s overall health and self –renewing
capabilities,which,in turn ,increase the enabling capabilities
of individuals,teams and the entire organisation.
Benefits of HRD

 Improves the capabilities of people.

 Improves Team work
 Leads to greater organisational effectiveness
 Performance related rewards help employees
realise the importance of utilising their skills
fully in the service of organisational goals.
Difference between HRD and
Personnel
Points of Distinction Personnel Functional HRD
Orientation Maintenance Oriented Development Oriented
Structure An independent function Consist of inter-
with independent sub- dependent parts
function
Philosophy Reactive function, Proactive function, trying
responding to the events to anticipate and get
as and when they take ready with appropriate
place responses
Responsibility Exclusive responsibility Responsibility of all
of personnel department managers in the
organisation
Motivators Emphasis is put on Emphasis is on higher-
monetary rewards order needs such as
design jobs with stretch,
improve creativity and
problem solving skills
Difference between HRD and
Personnel cont…..
Personnel Function HRD
Outcomes Improved performance is Better use of human
the results of improved resources leads to
satisfaction and moral improved satisfaction
and morale
Aims Tries to improve the It tries to develop the
efficiency of people and organisation as a whole
administration and its culture
Evolution of the Concept of
HRD
The early part of the century saw a concern for
improved efficiency through careful design of
work. Improving employee productivity and
efficiency was the next big thing to hit the
business world. Recent years have witnessed
an increasing towards the quality of working
life, product and quality and speedy and
efficient delivery of work.
Evolution of the personnel
Function
Concept
The Commodity Concept
The Factor of Production Concept
The Goodwill Concept
The Paternalistic Concept/Paternalism
What’s it all about
Labour was regarded as a commodity
to be bought and sold. Wages were
based on demand and supply.
Government did very little to protect
workers.
Labour is like any other factor of
production,viz,money,materials,land
etc.Workers are like machine tools.
Welfare measures look safety, first aid,
lunch room, rest room will have a
positive in productivity.
Management must assume a fatherly
and protective attitude towards
employers. Paternalism does not
means merely providing benefits but it
means satisfying various needs of the
employers just as parents meet the
requirements of the children
Evolution of the personnel
Function
Humanitarian Concept To improve productivity, physical
social and psychological needs of
workers must be met.As Mayo and
other stated, money is less a factor in
determining output, than group
standards, group incentives and
security. The organisation is a social
system that has both economic and
Social dimensions.
The Human Resource Concept Employees are the most valuable
assests of the organisation. There
should be a conscious efforts to realise
organisational goals by satisfying
needs and aspirations of employees.
Evolution of the personnel
Function
The Emerging Concept:HRD Employees should be accepted as
partner s in the progress of a
company. They feeling that the
organisation is their own. To this end,
managers must offer better quality of
life and provide opportunities to
people to exploit their potential fully.
Their should be opportunities for
self-fulfilment in one’s work. The
focus should be on Human Resource
Development.
HRD Mechanisms or Subsystems
 The following HRD mechanisms are currently
in use in a development competencies of
people and improve the organisational
climate :
HRD Mechanisms
• Performance Appraisal
• Potential Appraisal
• Career planning
• Training and employee development
HRD Mechanisms or Subsystems
cont..
• Role Analysis
• Job Rotation
• Performance Counselling
• Job Enrichment
• Organisational Development
 Diagnosis of the problem
 Planning Strategy for change
 Use of Change agents
 Implementing the changes
 Evaluation
The Contribution of HRDSubsystems to
Development Dimensions
Development HRD Subsystem Mechanism
Dimensions
Individual Training Career Planning Potential Appraisal
and Development
Feedback and Rewards
Coaching
performance
Individual in the Performance Training Feedback and
present role Appraisal Rewards Performance
Coaching
Individual in regards Potential appraisal Training Performance
to likely future roles and Development Appraisal
Feedback and
Performance
Coaching
Dyadic Relationship Feedback and Performance Training
Performance appraisals
Coaching
The Contribution of HRDSubsystems to
Development Dimensions cont…

Teams & Team Organisational Training Team Rewards

Work Development
Collaboration Organisational Training
among different Development
units/Teams
Self-Renewing Performance Organisational Training
Capability and Appraisal Development
Health of
Organisation
Principles in Designing HRD Systems

 Management Support
 Focus of the HRD System
 Structure of the HRD System
 Functioning of the System
Role of HR Managers
“We cannot do today’s Job with yesterday’s
methods and be in business Tomorrow.”
Main Purpose of the Manager’s Job
• To achieve and Exceed the assigned
objectives by ensuring that each and Every
member of the Team achieves and for
surpasses his/her respective objectives.
• A good Manger has the capacity to get
people of ordinary ability to perform in an
extraordinary manner.
Key Responsibilities
• Ensuring achievement of assigned Team’s and individual
team member’s objective.
• Decision Making
• Ensuring his objectives achievement covering up deficits
of anyone in his team.
• Focus on Brands/New Products
• Distribution Channel Management
• Timely Reporting and Feedback
• Developing Team Members
• Market Development
• Market Intelligence
• Strong Customer focus –Planning,Monitoring and
Controlling
Key Responsibilities Cont…

• Appraising and Reviewing

• Necessary Course Corrections
• Strong Customer focus
Meaning and Nature Of
Strategy
 According to Glueck and Jauch,”A strategy is
unified, comprehensive and integrated plan
designed to ensure that the basic objectives
of the enterprise are achieved.”
A strategy is a plan that is unified; it ties all the
parts of the enterprise together. A strategy is
integrated in the sense that all parts of the
plan are compatible with each other and fit
together well.
Features of Strategy
 Usually relates to several areas of operation of
the business. So the strategic decisions are taken
by the top management.
 Are expected to have a significance impact on
the firm’s future growth and prosperity.
 Are based on the expected behaviour of forces in
the external environment.
 Are based mostly on the future scenario,i.e.what
is the forecast by management.
Meaning & Nature of Strategic
Management
According to A.Sharplin,”Strategic management is the
formulation and implementation of plans and carrying
out of activities relating to the matters which are of
vital,pervasive,or continuing importance to the total
organisation.”
Because of the critical role of human resources in enabling
the organisation to effectively deals with the external
environmental challenges, the human resource
management function has been accepted as a strategic
partner in the formulation of organisation’s strategies
and in the implementation of such strategies through
human resource planning ,employment, training
,appraisal and rewarding of personnel.
Features of Strategic
Mangement
 It emphasis the basic mission and goals of the
organisation.
 It determines the basic policies and programs of the
organisation. It provides a framework for operational
planning and day-to-day decision-making.
 It provides for coherence in organisation’s policies,
decisions and activities over a long period of time.
 It deals with the uncertain environment by forecasting
opportunities and threats in the environment .
 It designs the corporate strategy and oversees its
implementation.
Strategic Human Resource
Management

Strategic Human Resource Management may be defined

as the linking of human resource management with
strategic goals and objectives in order to improve
business performance and develop organisational
culture that fosters innovation and flexibility.
Thus, Strategic HRM means look at human resource
functions in line with the business functions of an
organisation.
Significance of Strategic
Planning
 Plan of Action to meet the challenges of
environment in future..
 Clarifies the objectives of the organisation
towards which its resources will be directed.
 It facilities the implementation of long-range
plans to achieving organisational objectives.
 Helps to predict the outcome of planning.
 Is useful to fight competitions in the market
and to have control over the market.
Stages In Strategic
Management
• Determination of Mission or Purpose
• Environmental Scanning
• Organisational Analysis
• Developing Strategic Alternatives
• Evaluation of Strategic Alternatives
• Choice of Strategic Alternatives or formulation
of Strategy
• Implementation of Strategy
• Evaluation of Strategy
Stages in Strategic
Management Cont…
 Determination of Mission or Purpose
• A long term Vision of what the organisation seeks to do and
the reason why it exists.
• Mission is often stated in Abstract terms such as ,”To provide
dependable, standard drugs to the public at low prices”.
• ‘Objectives ‘ and ‘Goals’ have different meaning in
management literature
• Objectives are desired states or outcomes whereas Goals are
objectives that are scheduled for attainment during the plan
period. Thus Objectives are Open-Ended and have no time
frame.
Stages in Strategic
Management Cont…
 Environmental Scanning
• Diagnostic Phase
• External Environment Consists of
Economic,Social,Technological,Market and other forces which affect
its functioning.
• The management can develop Environmental Threat and Opportunity
Profile (ETOP).
• Information for environment scanning comes from several sources:
(a)Verbal information
fromCustomers,wholesalers,retails,distributorsetc. (b)Record of
Companies ©publication of government, financial institutions and
international organisations (d)formal studies conducted by the
Strategic planners.
• SWOT analysis
Organisational Analysis
In order to analyse organisational strength and
weaknesses, it is essentially to know the current
domain of the firm. It includes:
 Range of the products or services provided by the firm
 Geographic coverage of the firm-local,national or
international
 Firm’s differential advantage
 A review of financial position, productivity capacity,
marketing effectiveness, the extent of research and
development, the human resource skills
(Operational,Financial,Managerial Strength)
Developing Strategic
Alternatives
 Involves SWOT analysis
 After the identification of the environmental
opportunities and threats and the
organisational Strength and weaknesses one
can reformulate the objective, if needed.
Stages in Strategic
Management Cont…
 Evaluation of Strategic Alternatives
 Formulation of Strategy: It must utilise the
existing strengths of the organisation to the
maximum extent.
 Implementation of strategy
 Evaluation of the strategy
 UNIT II

Human Resource
Planning:Definition,Purposes,processes and
limiting factors
 Some Facts

HRM= People Dimension in Management

HRM has 4 steps:ATMM(Acquisition,Training
and Development,Motivation &Maintenance)
Getting and keeping Good People is critical to
the success of every organisation whether it
be private or Public.
What is HR Planning
 Human Resource Planning is the process by which an
organization ensures that it has the right number and
kind of people, at the right time, capable of effectively
and efficiently completing those tasks that will help
the organization achieve its overall objectives.
 HR/Man Power Planning is the process of acquiring
and utilizing human resources in the organization has
the right number of employees in the right place at
the right time.
 Employment planning is the process of formulating
plans to fill future opening based on an analysis of the
positions that are expected to be open and whether
these will be filled by insider or outside candidates.
Definitions of Human
Resource Planning
According to Vetter," the process by which
management determines how an organisation
should move from its current manpower
position to its desired manpower position. “
In the word of Coleman," Manpower planning is
the process of determining manpower
requirements and the means for meeting
those requirements in order to carry out the
integrated plan of the organisation.”
Nature of Human Resource or
Man Power Planning
 Aims at ascertaining the future manpower needs
of the organisation both in numbers and kinds.
 Is an on-going and continuous process
 Presents an inventory of existing manpower of
the organisation (skilled and untapped talent)
 Helps in determining the shortfall (or surplus) of
manpower by comparing the total manpower
needs with the present supply of manpower.
 Plans are made for both long-term or short-term.
Objectives Of Human Resource
Planning
 Forecast personnel requirements:
 Cope with Changes
 Use existing manpower productively
 Promote employees in a systematic manner
 To assess the surplus and shortage of human
resources
 To link Human Resources planning with
organisational planning
 To determines need of recruitment and
training of personnel.
Why Human Resource Planning
is Important?
Linking Business Strategy with operational
strategy

HRP is a important process to maintain the link

between business strategy and its operation.
It follows different procedures including the
need to assess the impact of technological
changes on new jobs and new skills.
Why Human Resource Planning
is Important?

Minimizing the risk of loosing

By forecasting the needs of technical and other
human resources it can be minimize the
future risk of loosing. Delay in recognizing
human resources might be costly and
expensive in the future.
Why Human Resource Planning
is Important?
HRP needs for HRD
HRP is important for planning the investment in the
development and utilization of human resources. Any
investment in the HR activities is considered an
investment for the future growth and development of
the organization.
(when curriculum has to be changed, required
knowledge and skills of teachers/instructors should
be developed prior to implement the new
curriculum.So,educational institutions have to be
aware of that.)
Why Human Resource Planning
is Important?
HRP is pro- active, not reactive
For solving any sort of future HR problem HRP
is pro-active rather than re-active.
Why Human Resource Planning
is Important?
HRP promotes Awareness
HRP promotes the awareness that human
resources activities are equally important at
every level of the organization. Both lone and
staff managers have to involved in HR
planning activities.
Steps in Human Resource
Planning
 Determination of Objectives of Human Resources
Planning
 Preparation of Current Skill
 Demand Forecasting(estimating future manpower
needs by references to corporate and functional
plans and forecasts of future activity levels.)
• Employment Trend (Stable and Unstable)
• Replacement Need
• Productivity
• Absenteeism
• Growth and Expansion
Steps in Human Resource
Planning Cont…
 Supply forecasting
• Human Resource Audit
• Replacement Chart
 Gap analysis
 Action plan for redeployment and redundancy
o Redeployments may include the following measures: Transfer
,Employment in Sister Concerns, Create Projects to
accommodate surplus staff, Provide trainings
Redundancy programmes may include the following measures:
o Voluntary Retirement/Golden Hand Shake
o Compulsory Retirement/Iron Hand Shake
o Attrition
o Leave of Absence without Pay
Steps in Human Resource
Planning Cont…
 Employment plan
(Recruitment,Selection,Placement,transfer
and Promotion).
 Training and development program
 Human Resource Planning
Process
Organisational Objectives,
Plans and policies

Human Resource
Planning

Forecasting Needs for Forecasting supply of

Forecasting Needs for Human
Human Resources human resources
Resources

Identification of
human gap

Surplus Human Shortage of Human

Resources Resources

Action Plans for Bridge

gap
Barriers to effective Human
Resource Planning
 Identity Crisis
 Lack of Support of Top Management
 Insufficient Initial Efforts
 Coordination with other Managerial Functions
 Expensive and Time Consuming
 Environmental Uncertainty
 Conflict between Long-term and Short term
HRP
 Insufficient Information
Guidelines for Effective
Human Resource Planning
o Organized Effort
o Support of Top Management
o Size of initial Effort
o Coordination with other Management
Functions
o Integration with Organisational Plans
o Involvement of Operative Managers
Job Analysis – Job
Description, Job
Specification.
 Some Terms
 Task: It refers to a distinct work activity with an
identifiable beginning and end,e.g. typing a letter
 Duty: it means a related sequence of tasks,e.g.,pickup
,sort and deliver incoming mail.
 Job: A job may be defined as an assignment of work
calling for a set of duties ,responsibilities and conditions
that are different from those of other work assignments.
For example, two salesmen who are performing similar
duties and who require similar training, experience and
personal characteristics would be said to hold the same
kind of job through they may be working in widely
separated parts of the store. The term “job "describes
the contents or duties and locations.
 Position: A position is a set of duties and tasks
assigned to an individual. A position is
personal,i.e.it is represented by a position-holder.
 Job Classification: It means grouping of jobs into
certain categories on some specified basis such as
nature of work performed or the level of pay. It is
often used as a simplified method of job analysis.
 Job Analysis: It is a systematic analysis of each job
for the purpose of collecting information as to what
the job –holder does, under what circumstances it is
performed and what qualifications are required for
doing the job. Job descriptions and job specification
are the immediate products of job analysis.
 Job Description: It is a statement of the
purpose,scope,duties and responsibilities of a
specific job.
 Job specification: It is a statement which lays
down the minimum qualifications, training,
and experience essential foe each job.
Concept of Job Analysis
According to Harry L.Wyile,”Job analysis deals
with the anatomy of the job embodying every
known and determinable factor including the
duties and responsibilities involved in its
performance; the conditions under which
performance is carried on; the nature of the
task; the qualifications required in the worker;
and the conditions of employment, such as
pay,hours,opportunities and privileges.”
 Job Analysis cont…
A Job analysis provides the following information:
 Job Identification: its title
 Significant Characteristics of a job: its location, physical
setting,supervision,union jurisdiction, hazards and
discomforts .
 Operations involved in doing the job: Specific operations
and tasks that make up an assignment, their relative timing
and importance, their simplicity, routine or complexity, the
responsibility or safety of others for
property,funds,confidence and trust.
 Materials and equipments to be used in doing the
job:Metals,plastics,grains,milling machines,puch presses and
micrometers….
 How a job is performed: Nature of Operation-
lifting,handling,cleaning,washing,feeding,re
moving,drilling,driving,setting up and many
others;
 Required Personnel Attributes:
Experience,training,apprenticeship,physical
strength,co-ordination,physical demands,
mental capabilities,aptitudes,social skills;
Uses of Job Analysis

 Human Resource Planning

 Recruitment
 Selection
 Placement and Orientation
 Training
 Organisation Audit
 Job Evaluation
 Job Design
 Performance Appraisal
 Career Planning
 Safety and Health
Process of Job Analysis
 Organisational Analysis
 Obtaining Information About Jobs
 Selecting Representative Jobs for Analysis
 Responsibility for Collecting Information
 Collection of Data
 Developing Job Description
 Preparing Job Specifications
Techniques Of Data
Collection
 Questionnaires
 Written Narratives
 Observations
 Interviews
Job Description
A job description is a written statement of what
the job holders does, how it is done, under
what conditions it is done and why it is done.
It describes what the job is all about ,throwing
light on job content, environment and
conditions of employment. It is descriptive in
nature and defines the purpose and scope of
a job. The main purpose of writing a job
description is to differentiate the job from
other jobs and state its outer limits.
Contents
A job description usually covers the following
Information:
Job Title: Tells about the job title, code number and
the department where it is done.
Job Summary: A brief write-up about what the job is
all about.
Job Activities: A description of the tasks done,
facilities used etc.
Working Condition: The physical environment of job
in terms of heat,light,noise .
Social Environment: Size of work group and
interpersonal interactions required to do the job.
Job Specification

Job Specification summarises the human

characteristics needed for satisfactory job
completion. It tries to describe the key
qualifications someone needs to perform the
job successfully. It spells out the important
attributes of a person in terms of
education,experience,skills knowledge and
abilities to perform a particular job. For each
job description, it is desirable to have a job
specification.
Human Resources Information
system (HRIS): HR accounting
and audit.
Human Resource Information
System (HRIS)
The Human Resource information Systems (HRIS) is a method
by which an organisation collects, analyses and reports
information about people and jobs. It applies to information
needs at micro and macro levels.HRIS is basically a data base
system that offers important information about employees
in a central and accessible planning decisions.
HRIS refers to the system of
gathering,classifying,processing,recording and
disseminating the information required for efficient and
effective management of human resources in the
organisation.
Elements of HRIS
 Recruitment and Selection sub-system
 Manpower Planning Sub-system
 Personnel Administration Sub-system
 Training Sub-system
 Appraisal Subsystem
 Maintenance Sub-system
 Payroll Sub-system
 Job Analysis Sub-system
 Personnel Research Sub-System
Benefits of HRIS
 HRIS can process, store and retrieve enormous
quantities of data in an economical way.
 The records can be updated quickly.
 There is a improved accuracy.
 HRIS can greatly reduce fragmentation and
duplication of data.
 Information can be readily manipulated, merged
and disaggregated in response to special and
complex demands and presented promptly.
 Important uses of a Human Resource
•Job Posting
Information System •Internal Job Matching
Labour Relations
•Union Negotiation HR Planning and Analysis •Job description tracking
•Organisation Charts •Workforce utilization
Records
•Staffing Needs •Availability Analysis
•Attitude Survey Results
•Skills Inventories HR DEVELOPMENT
•Exit Interview Analysis
•Turn over analysis •Employee Training
•Employee Work History
•Absenteeism Analysis profile
Safety ,Health and •Training Needs
Security •Succession Planning
HRIS
•Safety Training •Career Interests and
•Accident Rewards Experience
•Employee Health
Compensation and
Record
Benefits STAFFING
PERFORMANCE •Pay Structure •Recruiting Sources
APPRAISAL •Wages/Salary •Application Tracking
•Employee Competency Administration •Job Offer refusal
Data •Benefits Plans and Usage analysis
•Matching Actual analysis
performance with •Vocation Usage
standards.
Setting up HRIS

 Plan
 Design
 Implement
 Evaluate
Computerised HRIS
A computerised HRIS is designed to monitor, control and
influence movement of people from the time they join
the organisation till the date they decide to leave the
organisation. It consists of the following Subsystems:
 Recruitment Information: includes advertisement
module, applicants profile, appointment and placement
data.
 Personnel Administration Information: consists of
personnel needs of an employee concerning
leaves,transfer,promotion,increment etc.
 Manpower Planning Information: offers data that could
be help Human resource mobilisation,career planning,
succession planning, and inputs for skill development.
Computerised HRIS
 Training information: provides information for
designing course material, arranging need-based
training and appraising the training
programme,etc.
 Health Information: data relating to health,
safety and welfare of employees
 Appraisal information: consists of performance
appraisal information that serves as input for
promotions, career and succession planning.
 Payroll information: provides data related to
wages,salaries,incentives,allowances,benefits,de
ducations for provident fund etc.
The Costs of Human resources
 Recruitment Costs: Include advertising, travel expenses,
consultant’s fee, incidental expenses.
 Selection Costs: Include costs of application forms, testing
and interviewing expenses and other administrative costs.
 Orientation Costs: Costs incurred in offering orientation
courses to new employees(about the
companypolicies,procedures,programmes,rules,regulation
s,etc.)
 Training Costs: Trainer’s Salary, facilities cost, trainees time
spent in the programme measured financially, low
productivity during training.
 Development Costs :Costs incurred in enhancing employee
skills and expertise.
HUMAN RESOURCE ACCOUNTING
 HRA is similar in principles to the preparation
of an accounting statement.HRA thus, shows
the investment the organisation makes in its
people and how the value of these people
change s over time.
 Flamhoitz defined HRA as,”accounting for
people as an organisational resource. It involve
measuring the costs incurred by organisations
to recruit,select,hire,train,and develop human
assest.It also involves measuring the economic
value of people to the organisation. “
Objectives
According to Likert,the Objectives of HRA are:
 Provide cost and the value information about
acquiring,developing,allocating and maintaing
human resource so as to meet organisational goals.
 Enable management to effectively monitor the use
of human resources.
 Find whether human assests are appreciating or
depreciating over a period of time.
 Assist in the development of effective management
practices by classifying the financial consequences
of various practices.
Advantages:
HRA offers the following advantages:
 Throws light on the strength and the weakness
of the existing workforce in an organisation. In
turns, helps management in recruitment
planning, whether to hire people or not.
 Provides Valuable feedback to managers
regarding the effectiveness of HR policies and
practices.
 Helps management in taking appropriate
decisions regarding the use of human assests in
an organisation.
Limitations

 It is not easy to value the human assets in an

organisation.
 HRA is full of measurement problems.
 No empirical evidence to support the idea
that HRA is an effective tool to measure the
economic value of people of value to the
organisation.
Human Resource Audit
An audit is a systematic examination of records
to obtain, compile and analyse data for a
given period of time for the purpose of
identifying weakness and suggesting
measures for improvement.
Human Resource Audit may be defined as the
examination and evaluation of the personnel
activities of an organisation.
Importance of Personnel
Audit
 Increased Managerial awareness of the value
of Human Resources.
 Better Decisions about people, based upon
Human Resource Audit.
 Developing new measures of effective man
power utilization.
 Better Human Resource Planning
 Enabling a longer time Horizon for planning
and budgeting
Scope
 Information
 Forecasting
 Training
 Performance Appraisal
 Management Succession Planning
 Development of Future Outlook
Objectives of Human Resource
Audit
 To review the management policies and programmes
relating to human resource
planning,recruitment,selection,placement,promotion
,transfer,training and development of employees,
administration of employees compensation plans and
welfare schemes ….
 To evaluate the extent to which the line managers
have implemented the human resources policies and
programmes.
 To identify the gaps and deficiencies in the policies
and programmes as well as in their implementation.
 To evaluate the functioning of personnel staff and
specialists.
Conduct of Personnel Audit
 Identifying various officials responsible for various
personnel functions.
 Identifying indicators, statistical ratios and gross
number in some cases.
 Examining the variations in time-frame in comparison
with a similar previous corresponding period.
 Comparing the variations of different departments
during different periods.
 Examining the variations of different periods and
comparing them with similar units and industries in the
same region.
 Drawing trend lines, frequency distributions and
calculating statistical correlations.
Conduct of Personnel Audit
Cont…
 Preparing and submitting a detailed report to
top management and to managers at
appropriate levels for information and
necessary actions.
 RECRUITING HUMAN RESOURCES
In simple terms, recruitment is understood as the
process of searching and obtaining applicants for
jobs, for among whom the right people can be
selected.
Recruitment is the process of locating and
encouraging potential applicants to apply for
existing or anticipated job
openings.Recruitment,logically aims at (1)attracting
a large number of qualified applicants who are
ready to take up the job if it’s offered and (ii)
offering enough information for unqualified persons
to self-select themselves out
Recruitment ,Recruitment
Procedures,Recruitment
Methods and Evaluation.
Meaning and Nature of
Recruitment
According to Dale S.Beach ”Recruitment is the
development and maintenance of adequate
manpower resources. It involves the creation of a
pool of available labour upon whom the organisation
can draw when it needs additional employees.”
According to Roger H.Hawk,” The purposes of a
recruitment function are primarily straight forward:
to seek out, to evaluate ,obtain commitment from
,place and orient the employees to fill positions,
required for the successful conduct of the work of an
organisation.
Features of Recruitment
 A positive function as it seeks to develop a pool of
eligible persons from which most suitable ones can
be selected.
 Is to locate the sources of people required to meet job
requirements and attracting such people to offer
themselves for employments in the organisation.
 Is a linking activity as it brings together those with job
(employer) and those seeking jobs (prospective
employees)
 Is a process or a series of activities rather than a
single act of event.
 Is a pervasive function as all the organisations engage
in recruiting activity.
Purpose of Recruitment
 To begin identifying and preparing potential job
applicants who will be appropriate candidates.
 To increase the pool of candidates at the
minimum cost.
 To increase the success rate of the selection
process.
 To increase organizational effectiveness
 To meet organisations legal and social obligation.
 To help reduce the probability that job applicants,
once recruited and selected will leave the
organisation only often a short period of time.
Recruitment policy
Recruitment policy of an organisation may cover the following areas:
• Should be recruitment be centralised or decentralised at unit levels?
• Degree of Emphasis would be placed on recruiting from inside the
organisation or outside the organisation, and different outside
sources.
• The weightage that would be given to certain categories of people
such s local population, physically handicapped personnel,
personnel from scheduled castes/tribes and other backward classes.
• Degree of flexibility with regards to
age,sex,qualifications,compensation structure and other service
condition.
• The budget for meeting the expenditures incurred in carrying out
the recruitment process.
• Evaluation of recruitment process.
Factors Affecting Recruitment
Policy
There are a number of factors that affect
recruitment. These may be classified into two
categories: (1) Internal Factors and (2)
External Factors
Internal factors: Organisational Image
Personnel Policies
Job Attractiveness
Union Interference
Size of the organisation
External Factors

 Labour Market
 Unemployment Situation
 Demographic Factors
 Legal Factors
Sources Of Recruitment
Basically ,there are two sources of recruitment
• Internal Sources,i.e present employees.
• External Sources, i.e. workforce outside the
organisation
Transfers and Promotions
Transfer involves the shifting of an employee from
one job to another.
A Promotion is the transfer of an employee to a job
that pays more money or one that enjoys same
preferred status. It leads to carrying higher
responsibilities,facilities,status and pay.
Advantages of Internal
Recruitment
 Promotes greater loyalty and morale among the
employees.
 Encourage self-development among employees.
They look forward to develop skills for rising to
higher posts.
 Creates a sense of security,stability,and continuity
of employment.
 It eliminates the chances of hasty decisions.
 It is a cheaper source of recruitment as compared
to external sources.
Limitations of internal
Recruitment
 When Vacancies are filled through internal
promotions, the scope for fresh blood
entering the organisation is reduced.
 The employees may become lethargic if they
are sure of time bound promotions.
 The spirit of competition among the
employees may be hampered.
 Frequent transfer reduce the overall
productivity of the organisation.
External Recruitment

1) Recruitment at Factory Gate

2) File for unsolicited Applications
3) Advertisement
4) University or institute campus
5) Employment Exchange
6) Employee Referrals
7) Labour Contractors
8) Head Hunter or Management Consultants
9) Telecasting
10) E-Recruitment
Advantage of External
Recruitment
 Provides a large number of applicants.
 Enterprise can expect to get fresh, talented
candidates from outside. This means infusion of
new blood and new ideas into the enterprise.
 It serves as inducement for the existing
employees to show better performance.
 Sometimes recruitment from internal sources
or promotions creates an atmosphere of jealous
feelings in the firm.
Limitations
 It may cause dissatisfaction and frustration
among the existing employees who aspire for
promotion.
 Time consuming
 Costly
 There is no guarantee that the enterprise will
be able to attract suitable applicants even
after advertisement and other steps.
Methods of Recruitment

 Direct Method or Channels

• Campus Recruitment
• Internships
• Walk-in Interviews
• Telerecruiting
• Direct Mail
Methods of Recruitment

 Indirect Methods or Channels: it involves

dissemination of recruitment message through public
media,i.e news papers ,T.V,magazines and radio.
 Third Party Channels: Employment agencies and
exchange.
 Management consultants or professional search firms
known as head hunters.
 Professional Associations.
 Placement officers of educational and technical
institutes.
Recruitment Evaluation
Most of the big organisations use a mix of both internal and
external sources depending on the availability of originality
and initiative within the organisation, need for new blood,
focus on seniority in promotions, level of specialization
required, impact of recruitment on attitudes of
employees,etc.However,the alternatives sources of
recruitment can be evaluated and the most appropriate
sources can be chosen on the basis of the following criteria:
• Time lag between personnel requisition and placement
• Cost per hire for different sources of recruitment
• Correlation between sources of recruitment and job success
of the persons selected.
• Employee reaction towards different sources of recruitment.
• Surveys and Studies