Human Resource Management

Learning Objective
Introduction to Human Resource
Management
Concept of Human Resource Planning,
 Job analysis,
 Recruitment and selection,
Performance appraisal,
Training and development
Case incident 1
Global Textile industries had its presence in
the textile industry for more than 100
years .The HR DEPT of the company was
mostly administrative in nature . But with the
changes in the company environment , the
company plan to integrate HR in strategy
formulation and implementation. What are
the challenges do you think the company HR
department would face?
Human Resource Management
Human Resource Management (HRM)
◦ The comprehensive set of managerial activities
and tasks concerned with developing and
maintaining a qualified workforce–human
resources–in ways that contribute to
organizational effectiveness.
◦ Effective human resource management is a vital
strategic concern for organizations today.
Definition and concept of HRM
According to Gluke “ Human resource
management is function performed in
organization that facilitates the most effective
use of people (Employees) to achieve
organizational and individual goals”
 HRM is a process that consists of Four Functions-
Acquiring, Developing, Motivating and retaining
human resources.
 Acquisition-starts with Planning and ends with
staffing
 Development function has three dimensions-
Employee training, Employee Development and
career development
 .Motivating function includes Identifying the
individual motivational needs of employees and
identifying ways to motivate them
 Retention function is concerned with providing a
conducive work environment
Definition and concept of HRM
Managing people is one of the biggest
challenges for any manager for following
Reasons
 Individual Differ from each other in terms of values ,
attitudes , beliefs and culture. This leads to a very complex
situation in an organizational context
 The stimulating and motivating factors might not be same for
all the employees.
 The expectation of employees of today are much greater when
compared to employees of yesteryears. They know they are
valuable assets and demand to be treated as such.
Challenges that HR Dept of Global
Textile industries would face
Global Business Environment
’Profitability through Growth
Technology
Intellectual Capital
Adaptability
HR Management
Activities
Case Incident 2
 ABC corporation is a large manufacturing organization
which have been facing problems due to constant
conflicts between human resource and production
department. While the production team resents the mere
presence of HR department the HR team on the other
hand believes that the production dept does not
appreciate the value and importance of its contribution
to the organization. What do you think could be the
probable cause for the conflict between the two
department? If you were the external consultant asked to
resolve this conflict, what would you suggest?
Line vs. Staff Perspectives
 Organizations typically divide managers into two groups:
◦ Line (now operating) managers in operations, finance, and
marketing functions supervise and direct the workforce in the
creation of goods and services. Their contributions to the
organization can be measured directly.
◦ Staff managers in legal, HR departments perform indirect or
support functions, which makes their contributions less easily
measured directly.
◦ HR departments are assigned staff functions and staff
responsibility.
responsibility HRM activities are distributed throughout
organizations, yet HR departments are responsible for monitoring
and ensuring organizational compliance with laws, regulations,
policies, procedures, and rules.
HR Staff should reorient itself and play
more strategic role
 Understanding the market and business better
 Having a complete understanding of organizational
processes
 Being emphatic to the limitation of line function
 Building an atmosphere of trust and transparency
 Trying to work towards a win-win situation rather than
trying to gain upper hand
 Being open to bouquets as well as brick bats for its
action
 Playing an active role in designing the strategy of the
organization
Case Incident 2
 The economic downturn during the recent past caused serious
problems to most organizations, especially in the IT field. Horizon
Technologies, a five-year old firm was faced with the most
common problem surplus manpower, The top management
called for a meeting to discuss strategies to help the organization
survive during those turbulent times. What do you think might be
the strategies that will help Horizon deal with surplus manpower?
HUMAN RESOURCE
PLANNING
Human Resource Planning
It can be defined as a process of ensuring the right
number of qualified people , into the right job at the
right time to deliver the results in an effective and
efficient manner . It is the system of matching the
available resources either internally or externally with
the demand the organization is going to have over a
period of time
Process of Human resource Planning
1 Analyzing the impact of the organizational strategy
and objectives on different units of the organization in
terms of the human resource requirements.
 2. Involving the line managers in determining the
human resource needs of their respective departments.
 3. Forecasting the quantity and quality of human
resources required by different departments/divisions.
 4. Matching !he current human resources supply in the
organization with the numbers required in the future.
 5. Developing an action plan to meet the future
Dealing With Surplus man power
Voluntary Retirement
Attrition
Reduced work hours
Work Sharing
Loaning
Leave of absence without pay
Lay off
Retrenchment
Estimating Internal Labor Supply for a
Given Unit
Case incident
 Triumph Electronics, a manufacturer of electronic
appliances, decided to conduct a detailed job analysis to
collect information about various aspects of the different
jobs in the organization that would provide necessary
inputs for a number of HR activities like recruitment,
selection, job design, training and appraisal. However,
problems cropped up when its employees began to view
the initiative as a threat to their job security as some
organizations use this process for downsizing the
workforce. Organizations like Triumph face such
problems while implementing the process of job
analysis. Discuss the various issues associated with job
analysis and suggest ways of tackling them
What is a job?
Job
◦ Group of related activities and duties
◦ Made up of tasks

Tasks
◦ Basic elements of jobs
◦ “what gets done”
Job Analysis
It is the process of determining and recording
all the pertinent information about a specific
job, including the tasks involved, the
knowledge and the skill set required to
perform the job, the responsibilities attached
to the job and the abilities required to perform
the job successfully.
Job Analysis Information and Facts
 Job Description (Job  Job Specification(Employee
Oriented) Oriented)
 Job Identification : Job Title,
Location, Job code, Department and  Education
unit  Experience
 Job Summary: Brief Job content,its
authority, responsibility, Hazards
 Training
 Relation to other jobs  Judgement
 Location in the hierarchy  Initiative
 Machines, tools, equipments used  Physical Efforts
 Responsibilities  Physical Skills
 Conditions of work, location of work,
Posture Etc  Communication Skills
 Emotional Characteristics
Uses Of Job Analysis
 Employment
 Organization Audit
 Training and Development
 Performance Appraisal
 Promotion and Transfer
 Preventing Dissatisfaction
 Compensation Management
 Health and Safety
 Induction
 Industrial Relation
 Career Planning
 Succession Planning
Case Incident
 To solve the problem
 Involve the employees in the process of job analysis
 Management should be Transparent
 Need to update the information gathered
 Analyze job not the person
Case Incident
 The TNB Bank Ltd. is an established private sector bank in south
India. The bank has a few vacancies in top managerial positions due
to the retirement of some of senior personnel. The HR department
has decided to identify suitable personnel from within the
organization for promotion, instead of recruiting from outside .Was
the HR department right in deciding to recruit people from within
the organization'. Will they not miss out on talent from outside?
Discuss the pros and cons of conducting an internal recruitment
drive instead of seeking potential employees from-outside
 RECRUITING
AND

SELECTING
THE

RIGHT PERSON
Recruitment
Recruitment is the process of searching for
prospective employees and stimulating them to apply
for jobs in the organization

This process starts with the identification of the need

for the human resources and ends with getting the
prospective employees to apply for the vacancies
available.
Sources of recruitment
InternalSearch-Identify Employees from within the
the organization to be groomed to take higher
responsibilities
Advantages
 -Helps in maintaining good employee relation
 Boost Morale of employees
 Encourages competent and ambitious employees as their performance is
rewarded
 Time and resources are saved on selection and induction program
External Sources
Advertisements
Employee Referrals
Employment Agencies
Education Institutes
Unsolicited Applicants
Case Incident
 Sputnik enterprises had advertised in a leading national
daily for an able and qualified production manager for
its Nagpur branch. In response to the advertisement, the
HR department received a number of applications- After
a preliminary analysis of the applications, it short listed
around sixty applicants, who had lo be further tested for
their managerial and decision-making abilities. Suggest
appropriate selection methodologies that Sputnik can
implement to decide on the most suitable candidate for a
middle-level managerial position of production
manager.
Selection
The process of choosing the most suitable
candidate for a job from among the available
applicants is called Selection.
This process starts with gathering complete
information about applicants from his
application forms and ends with inducting
them into the organization
 The TYPICAL SELECTION PROCESS

Completion of the Application Form

Initial Screening Interview

Employment test Test

Comprehensive Interview

Background Investigation

Physical Examination

Final Employment Decision

Selection Process
 Steps in Selection Process
 1. Resumes/CV review
 2. Initial Screening interview
 3. Analyze the application blank
 4. Conducting Tests and Evaluating Performance
 5. Preliminary Interview
 6. Core and departmental Interview
 7. Reference Check
 8. Medical Examination
 9. Placement
Case Analysis
Group Discussion- Candidates are tested
for initiative, lesdership qualities ,
negotiation skills and decision making
abilities
In basket Exercises – objective is how he
is able to hadle multiple tasks, prioritize
things, analyze information and delegate
tasks.
Simulated Games- ROLE PLAY
Case Incident
 Peoples Bank, a growing private sector bank has just recruited 15
new employee as senior officers to fill vacancies across the country.
On the first day at the bank the new recruits had an informal talk
among themselves. All of them had deferrer opinions about the
bank and their role in the organization. A lot of ambiguity and
uncertainty prevailed among them. They were apprehensive about
their acceptance in the organization, the functions they have to
perform, their peers superiors and other co-workers. Discuss how
Peoples Bank can reduce the apprehensions among its employees
Induction
To provide the information and
opportunity required by all new
employees to satisfactory adjust to their
work and help them to develop an
enthusiasm for the organization, its ideals,
policies and responsibilities.
Objectives of Induction

• To define the terms and conditions of work

• To acquaint the employee with the requirements of the
job
• To inculcate in the employee a confidence in his own
ability to do the job and also a confidence in the
organization.
 To bring about integration and agreement between
organization goals and personal goals.
Objectives of Induction
To provide the information and
opportunity required by all new employ­
ees to satisfactory adjust to their work and
help them to develop an enthusiasm for
the organization, its ideals, policies and
responsibilities
Organisational Issues
 History Of the organizatiom
 Names of key executives
 Employee title and dept
 Layout and physical facilities
 Probation period
 Product line and service provided
 Overview of production process
 Company policies and rules
 Discipline procedure
 Employee Handbook
 Safety procedure and enforcement
Employee Benefits
Pay scale
Vacations and holidays
Rest breaks
Training and education benefits
Insurance Benefits
Retirement programme
NTRODUCTION
To supervisors
To trainers
To co workers
Employee counsellors
Job duties
Job location
Job tasks
Job safety requirements
Overview of the job
Job objectives
Relationship with other jobs
Case Incident
 Vishnu Group of Industries is a refrigerator
manufacturing and marketing company. In the recent
past, the performance of its sales personnel was found to
be going down. An analysis revealed that the sales
personnel were not happy with their performance
appraisal. A survey was conducted, which revealed that
the appraisal of the employees did not take into
consideration the slump period and the salesmen were
expected to maintain the same standards throughout.
What dc you think would have gone wrong and how can
the management win back its employees' confidence and
commitment?
7
Appraising and
Managing Performance
Definition
Performance Appraisal is the systematic
evaluation of the individual with respect
to his or her performance on the job and
his or her potential for development.
Process of performance appraisal
 Setting performance standards
 Communicating standards
 Measuring performance
 Comparing with standards
 Discussing results
 Taking corrective actions
PURPOSES

 Training and development

 Identification of potential
 Promotion decision
 Compensation administration
 Work force planning
 Validation of selection procedure
Methods of Appraisal
1) Traditional Methods
2) Modern Methods
Traditional Methods
1) Rating Scales
2) Checklists
3) Forced Distribution Method
4) Critical incident method
5) Field review method
6) Annual confidential report
7) Essay method
Rating Scales
A simple and popular technique.
Consists of various job-related
performance criterion which are to be
rated on a scale of 1 to 5.
Graphic Rating Scale
Checklist
Method
A checklist of statements on the traits of
the employee is prepared in two columns-
‘YES’ and ‘NO’.
Forced Distribution Method

Based on the assumption that the

employee performance levels conforms to
a normal statistical distribution ( a bell-
shaped curve).
The rater is compelled to distribute the
ratees on all points on the rating scale.
Forced Distribution Example
-----5-------4-------3-------2-------1------
Excellent  Poor

 “No more than 5% of employees should

receive a “5” rating.”
 “At least 50% of employees should receive a
rating of “3” or lower.
Critical Incidents Method
Itwas developed following the research
conducted by the armed forces in the United
States during World War II.
Employee’s performance is measured in terms
of certain ‘events’ or ‘episodes’ that occur in the
performance of ratee’s job.
The critical incidents are discovered after a
thorough study of the personnel working on the
job. The collected incidents are then ranked in
the order of frequency and importance.
Field Review Method
Someone outside the Supervisor’s own
deptt., usually someone from the HR
deptt., interviews the line supervisor to
evaluate their respective subordinates.
He asks some specific questions which
are prepared in advance to the supervisor
about the subordinate’s performance.
The answers are noted and approved by
the supervisor.
Free essay method
Supervisor makes a free form, open-ended
appraisal of an employee in his own words and
puts down his impressions about the employee.
Usually the following factors are taken into
consideration:
1) Relations with fellow workers.
2) General organization and planning ability.
3) Job knowledge and potential.
4) Employee characteristics and attitude.
5) Understanding and application of company
policies and procedures.
 Confidential Report
A traditional form of appraisal used mostly in
govt. organization.
A report is prepared by the employee’s
immediate superior. It covers the strengths-
weaknesses, achievements-failures,
personality and behavior of the employees.
This report is kept confidential and is
considered while making promotion decisions.
Modern Methods
Management by Objectives (MBO)
BARS
Assessment Centers
360-Degree Feedback
 Management by Objectives
The concept of MBO was developed by
PETER F. DRUCKER in 1954.
Definition: MBO is a process whereby the
superiors and subordinates of an organization
jointly identify its common goals, define each
individual’s major areas of responsibility in
terms of results expected of him and use these
measures as guides for operating the unit and
assessing the contribution of each member.
Management by Objectives
ERRORS IN JUDGMENT
 HALO ERRORS

 The appraiser allows the single

characteristics of the appraisee to
dominate his judgment of the employee
 Eg, good communication skills/shoody
dressing
LENIENCY ERRORS
NEGATIVE –GIVES HARSHER
EVALUATION THAN DESERVED

POSITIVE—GIVES HIGHER RATINGS THAN

DESERVED
ERRORS
CENTRAL TENDENCY- RATER
UNWILLING TO GIVE EXTREME
RATINGS, USE ONLY THE MIDDLE
PART OF THE SCALE
ERRORS
Recency effect- This occurs when the
recent performance of appraisee
dominates the appraisal
ERRORS
Perceptual set- This is the tendency of the
appraisers to have expectation of
performance level , which might distort
the perception and judgement of actual
performance.
Fundamental Attribution error- When
employee performance have been affected
due to some external factors outside his
control
Possible PA Raters

 Supervisor
 Supervisor’s supervisor
 Self
 Peer
 Subordinate
 Customer

 360 degree appraisal

360° Feedback

The combination of peer,

subordinate, and self-review
Case Incident 2
An IT firm recruited fresh graduates from
the campus. The Chief HR Manager
assigned the task of training these
employees to the Assistant Manager HR.
Vipul Shah. What are the various areas in
which these new recruits should be
trained?
Training and Development
Training
◦ Effort initiated by an organization to foster learning
among its members.
◦ Tends to be narrowly focused and oriented toward
short-term performance concerns.
Development
◦ Effort that is oriented more toward broadening an
individual’s skills for the future responsibilities.
Training Methods for Non managerial
Employees
On-the-Job Training Methods
Apprenticeship Training
Job instruction training
Job rotation
Committee Assignments
Vestibule training
Training Methods for Non managerial
Employees (cont’d)
On-the-job training (OJT)
◦ Method by which employees are given hands-on
experience with instructions from their supervisor
or other trainer.
Apprenticeship training
◦ System of training in which a worker entering the
skilled trades is given thorough instruction and
experience, both on and off the job, in the practical
and theoretical aspects of the work.
Training Methods for Non managerial
Employees (cont’d)
Vestibule Training
◦ A special type of classroom facility is used to give
instruction in the operation of equipment like that
found in operating departments.
◦ Committee Assignments – A group of employee
are given an actual organization problem and are
asked to find a solution
Training Methods for Management
Development
Off-the-Jobmethod of training
Seminars and Conferences
Case Studies
GD
In basket
Management Games
Role Playing
Behavior Modeling
Quiz
1 The process of recording all pertinent
information about specific job , including
the task involved , the knowledge and
skill sets required to perform the job is
termed as
A Job Evaluation
B Job specification
C Job Analysis
D Job design
 2 An HR MANAGER WAS INVOLVED IN
THE PROCESS of HRP . The first step he
undertook was assessing current resources and
making an inventory. What is the next step
that the manager has to take in HRP
 A Start recruiting to meet the
requirement
 B Forecasting
 C Matching the inventory with future
requirement
 D Developing an action plan to meet
future requirement
3 An HR Manager in a large multinational
firm is involved in establishing an intentional
structure of roles for people and assigning
responsibilities. What is the managerial function
that the HR manager is performing?
A Managing
B Staffing
C Directing
D Controlling
4 The HR department of Magnus Textiles made sure
that any vacancies in the organization first reached
the prospective candidates in the organization.
Candidates from the organization responded to job
posting. What is the source of recruitment being used?
 A Advertisement
 B Internal Search
 C Employee Referrals
 D Campus Recruitment
5 A software firm has a vacancy for the post of Vice
president (Operations) which of the following methods
of recruitment would you suggest
 A Employment Pages of a national daily or
business magazine
 B Campus Placement
 C Advertisement in a local daily
 D Listing of the vacancy on a play card outside the
organization
6 In a process of selection, the step that
follows Analyze the application Blank
is

A Decision making interview

B Preliminary Interview
C Reference check
D Induction
7 A formal record of an individual appeal or
intention for employment that in helps in
gathering information about a prospective
candidate is called
A Application blank
B Employee data
C Employee blank
D Data blank
8 Mohan Krishna attended an interview and was very
upset with the way it progressed . The interviewer
repeatedly interrupted him, criticized his answers and
asked him unrelated questions. What is the method of
interview adopted?
 A Panel Interview
 B Stress Interview
 C In depth Interview
 D Group Interview
9 Identify the correct sequence of interview process
A Closing The interview
B Evaluation
C Conduct of interview
D Reference check

A a,b,c,d
B C,A,B,D
C B,C,D,A
D d,c,b,a
10 A new employee is being introduced to the
organization , its business organizational
culture, its value and belief? What is the
procedure termed as?
A Selection
B Placement
C Induction
D Recruitment
11 Clear and well defined goals, a definite
time plan and an action plan to achieve
these goals combined with timely
feedback are characteristics of
A Work standard approach
B Management by objectives
C BARS
D Balanced Scorecard Method
12 The method of appraisal where the
appraisee makes a list of all the important
situation and employee reaction/
behaviour at that time is
A Checklist method
B Critical Incident method
C Graphic rating Method
D Work Standard Method
13 Riana is a good salesman and works for an it
company, but his performance in 2001-02 was
affected because of the slump in the IT market .
However his boss fails to acknowledge it and
rates his performance as poor. This is an
example of
A Halo effect
B Perceptual effect
C Stereotyping
D Fundamental attribution error
14 Praveen is a new recruit in a
manufacturing firm. His job entails
operating and using expensive equipment.
Therefore, he needs to first make himself
comfortable with the various machines
and their working. What is the method
that the organization has to adopt to train
him?