Human Resource

Management

Shubhpreet Kaur
Gulzar Group of
Institutes

Financial
Resource
s

Physical
Resources

Human
Resourc
es

Organization
al Goals

WHAT
IS
HR?????
Human resources is the set of
individuals who make up the
workforce of an organization,
business sector or an economy.
Other terms sometimes used
include "manpower", "talent",
"labor" or simply "people".

What
is
HRM?
The process of acquiring, training, appraising,
and compensating employees, and of attending
to their labor relations, health and safety, and
fairness concerns.
A management function that helps managers
recruit, select, train and develop members for
an organization.
HRM may be defined as a set of policies,
practices and programmes designed to
maximize both personal and organizational
goals.

"I believe the real difference

between success and failure in a

corporation can be very often
traced to the question of how well
the organization brings out the
great energies and talents of its
people."
Thomas J. Watson, Jr.

And I'd say one of the great

lessons I've learned over

the past couple of decades,
from a management
perspective, is that really
when you come down to it,
it really is all about people
and all about leadership.
Steve Case

Some eminent
personalities

Dr. Udai
Pareek

Dr. T V
Rao

King
Hammurabi

Frederick
Winslow
Taylor

Evolution of HRM
Procure,
develop
and
motivate
Procure and develop

assets

Nature of HRM
Integral part of process of management.
Comprehensive Function
Pervasive Function
People Oriented
Based on human relations
Continuous process
Science as well as art
Recent origin
Interdisciplinary
Basic to all functional areas.

Introduc
tion to

HRM

Prospec
ts of
HRM

Employ
ee
Hiring

Scope
of
HRM

Industri
al
Relation
s

Employ
ee
Mainte
-nance

Employ
ee
Remune
-ration
Employ
ee
motivat
ion

Objectives of HRM

Functions of HRM w.r.t objectives

Functions

Functions

Functions (cntd)

Policies, Principles and Procedures

Policy : A plan of action.. A statement of

action committing management to a

general course of action.
Principle: fundamental truth established
by research, investigation and
analysis.guide the managers in
formulating policies, programs and
procedures.
Procedures: a method for carrying out a
policy.

Importance of HRM
Importance for organization
Importance for employees
Importance for society.

Compare HRD and HRM

HRM

HRD

Entire management
process

Subset of HRM

Scope is wider

Narrow scope

Emphasis on
employee as a whole

Training and
Development of
employees

Takes decisions

Depends on decisions
of HRM

Limitations of HRM

Systems approach to
HRM
An enterprise cannot work in isolation.
Has to adjust its working to suit the

environment.
Subsystems: Departments that are created
in an organization to carry out its business
effectively.
Each subsystem has a number of further
subsystems.

Important Subsystems
HR system
Production System
Finance System
Marketing System
Research and development System

Human Resource Management

System
Transforms inputs to outputs.
Personne
l

Productive Human
Resource

HR system interacts closely with all other

subsystems.
Quality of people in all subsystems depends
upon policies of HRM System

Organizational Design

Place
Of
HR
Department
Size Matters!!!!
In case of a small unit

Small unit

Large Unit

Composition
Director HRM

Manager Personnel
HR
P
Hirin
g
Grievance
handling
Compensati
on

Manager
Admin

Manager - HRD
PR

Manager - IR

Apprais
al

Canteen
Medical
Welfare
Transport
Legal

Training
And
Developm
ent

HRM Environment
Proactive not Reactive
Factors affecting HRM Environment
External Environment
Internal Environment

External Environment
Economic Factors

SUPPLIER
S

CUSTOME
RS

COMPETITORS GLOBALIZATION

Political Legal Factors

Social and Cultural Factors
Technological Factors
Unions
Professionalism

Internal Environment

Human Resource
Planning

What??? When??? Where????

HOW???

HRP

The process by which a management

determines how an organization should move

from its current manpower position to its
desired manpower position.
Right Number and Right Kind of people

Right Places Right Time to do things

which result in both the organization and
individual receiving maximum benefit.

Objectives of HRP

Process of HRP

Analysis of objectives and strategic

plans
Must be integrated with other business
policies.
Analysis of each plan into sub-plans and
detailed programmes.
Check out:
Future organization structure.
Changes in organization structure.

Preparing manpower
inventory
Manpower inventory: refers to assessment of
present and potential qualifications of present
employees.
Avoid situation of over/under staffing.
Analysis of current manpower supply. By
Department By Function By Occupation
By Qualification
Helps to find out gaps

Manpower Forecasting

Manpower Forecasting

Manpower Plans

Training and Development Plans

Not only for new employees but also for the

old ones.
Tapping of talent required.
The organization has no choice whether to
provide training or not..but the only choice
is to decide the method/ technique of training.

Appraisal of Manpower Planning

Monitor and control.
Involves allocation and utilization of HR over

time
Reveal deficiencies and helps to take
corrective action on time
Serves as a base for future manpower
planning.

Types of HRP
Short Term HRP - to match the individuals

with the job.

Long Term HRP to fulfill future vacancies.

Short Term HRP

Long Term HRP

Benefits of HRP

Job Analysis

Definitions
Job analysis involves identification and precisely
identifying the required tasks, the knowledge and
skills necessary for performing them and the
conditions under which they can be performed.
Richard
Henderson
A systematic exploration of activities within a job.
It is a basic technical procedure. One that is used
to define the duties, responsibilities and
accountabilities of a job.
S P Robbins

Data relating to job can be grouped

under:

Process

Techniques

PAQ Position Analysis Questionnaire

MPDQ Management Position

Description Questionnaire

FJA Functional Job

Analysis
Worker oriented approach.
Examines fundamental components of data,

people and things.

Identifies performance standards and training
requirements.
4 dimensions
Extent to which
Specific instructions are necessary to perform the job
Reasoning and judgement are required.
Mathematical ability is required.
Verbal and language facilities are required.

Job
Descriptio
n

Job
Analysis
Job
Specificatio
n

Job Description
The first and immediate product of job

analysis is job description. This document is

basically descriptive in nature and constitutes
a record of existing and pertinent job facts.

Contents of JD

Job Specification
A statement of minimum

acceptable human qualities

necessary to perform a job
properly.
Also known as Standard
of personnel for the
selection.

What it includes???

Job Evaluation
A systematic way of determining the

value/worth of a job in relation to other jobs in

an organization.
Job Evaluation v/s Performance Appraisal
POINT

JOB EVALUATION

PERFORMANCE APPRAISAL

DEFINE

RELATIVE WORTH OF JOB

RELATIVE WORTH OF JOB

HOLDER

AIM

DETERMINE WAGES RATES

FOR DIFFERENT JOBS

DETERMINE INCENTIVES
AND REWARDS

SHOWS

HOW MUCH A JOB IS

WORTH

HOW WELL AN INDIVIDUAL

IS DOING AN ASSIGNED
WORK

Process of Job Evaluation

Methods of Job
Evaluation

Ranking Method
All jobs are ranked in order of their

importance from simplest to the hardest

order, each job being harder than the previous
one in the sequence.
Method:

Preparation of Job Description.

Selection of Raters
Selection of key jobs
Ranking of all jobs.

Rank

Monthly salary

Accounts Officer

-------

Accountant

------

Senior Accounts Officer

-----

Accounts clerk

-----

Computer operator

-----

Purchase Assistant

-----

Office Boy

-----

Peon

-----

Job Grading Method

A number of pre-determined grades or

classifications are decided by the committee

and each job is assigned to one of the grades.
Grades like skilled, unskilled, clerical,
administrative..etc..
For each grade there is a different rate of
wages.
Steps :
Preparation of grade descriptions
Selection of key jobs
Grading key jobs
All job are put in relevant grades.

Grade

Description

Very simple tasks requiring minimum mental ability.

Basically consisting of manual work.

Jobs requiring clerical work. Basically consisting of

desk work and minimum manual work. Minimum
training required.

Straight forward tasks, but requiring to apply

established procedures and to guide others.

Routine work but involving some elements of

responsibility for answering non-routine queries
and exercise some measure of control.

Involve decision making and administrative work.

Professional qualifications are required.

Factor Comparison
Method
Each job is rated according to series of factors

like mental effort, physical effort, skill needed,

responsibility, working conditions etc.
Different factors are assigned different
weights by importance.
Pay will be assigned by comparing weights of
factors

Steps involved
Select key jobs
Find factors for evaluation
Rank selected jobs under each factor
Assign value to each factor
Determine wage rates for each job
All other jobs are compared with the list of

key jobs.

Point Method
Most frequently used.
Process:
Select key jobs and identify factors common to
all the identical jobs.
Divide each major factor into number of sub
factors. Assign point values to degrees after
fixing relative value for each key factor.
Degree

Define

Able to carry out simple calculations, High school educated

Does all clerical Operations, computer literate, graduate

Handles mail, develops contacts, takes initiative, post

graduate.

Find maximum number of points assigned to

each job. This would help in finding out

relative worth of job.
once the worth of job is expressed in terms of
points, the points are converted into money
values keeping in mind the daily/hourly wage
rates.