Human Resource Management : Session 1

Introduction to Human Resource Management

 What do you
wish to learn
from the
“You can get capital and erect
buildings, but it takes people
of Human
to build a business”- Thomas J Resource
Watson, Founder of IBM Management?
 DISCUSSION

EMPLOYEES – A COST OR
AN ASSET
 How do we
define an
organization?
 Organisation as input – output system

Acquiring
inputs from Conversion Exporting to
Output
environment process environment

Using financial By human

By human
resources by resources
resources
human
resources
 Organization

Organization consists of people with formally

assigned roles who work together to achieve
the organization’s goals
 Manager

A person who is responsible for

accomplishing the organization’s goals, and
who does so by managing the efforts of the
organization’s people
Functions of Management Process

Planning Staffing Controlling

Organizing Leading
 What are the resources an
 organization has?
 Human Resource Management

The process of acquiring, training, appraising,

and compensating employees, and of
attending to their labor relations, health &
safety, and fairness concerns
 Why HRM is Important to All
Managers?
To Avoid Personnel Mistakes

To Improve Profits and Performance

You May Spend Some Time as an HR Manager

You may end up as your own human resource manager

Evolution of HRM
 Evolution of HRM
Human
Paternalistic Resource
Commodity Concept Concept
Concept • Protective • Employees are
• Labor is attitude towards most valuable
commodity workers asset

Factor of Humanitarian Emerging

Production Concept Concept
Concept • Organization is • Employees are
• Workers are like a social system partners in the
machine tool company
Responsibilities of HR Manager
Activity -1
• Job Analysis • Recruitment
• Job Design • Human Resource Planning
• Selection • Promotion/Demotion/
• Development Transfer/ Incentives
• Training • Orientation
• Compensation • Placement
• Performance Management • Employee Welfare
• Grievance handling
 HRM functions

Planning Organising Directing Controlling MANAGERIAL

O
HR Appraisal & Integration & IR
HR
maintenance
P
Acquisition Development Compensation
IR system E
HR planning HRD system Performance Integration of Discipline R
Training appraisal HR Grievance
Recruitment
Motivation redressal
A
Selection Management Base
development compensation Empowerment Manageme T
Placement
Induction Organisation Incentives Participation nt of I
development benefits Communication disputes
HR mobility
V
Safety & health E
HR Information system Stress
management
HR records
HR research
HR audit
HR valuation
 Responsibilities of HR Manager

Analysis and Recruitment Training and Performance

design of work and selection development management

Employee data
Compensation Employee Personnel
and information
and benefits relations policies
systems

Compliance Support for

with laws strategy
 Analysing and Designing Jobs

 This function involves the activities of job analysis and job

design.

 Job analysis is the process of getting detailed information

about jobs.

 Job design is the process of defining the way work will be

performed and the tasks that a given job requires
 Recruiting and Hiring Employees

 Based on job analysis and design, an organization can determine the kinds
of employees it needs

 With this knowledge, it carries out the function of recruiting and hiring
employees

 Recruitment is the process through which the organization seeks applicants

for potential employment

 An organization makes selection decisions in order to add employees to its

workforce, as well as to transfer existing employees to new positions.
 Training and Developing Employees

 Organizations provide ways for their employees to broaden or deepen

their knowledge, skills, and abilities

 Training is a planned effort to enable employees to learn job-related

knowledge, skills, and behaviour

 Development involves acquiring knowledge, skills, and behaviours that

improve employees’ ability to meet the challenges of a variety of new
or existing jobs, including the client and customer demands of those
jobs
 Managing Performance

 Managing human resources includes keeping track of how well employees are
performing relative to objectives such as job descriptions and goals for a
particular position.

 The process of ensuring that employees’ activities and outputs match the
organization’s goals is called performance management

 Then various measures are used to compare the employee’s performance over
some time period with the desired performance

 Often, rewards are developed to encourage good performance

 Planning and Administering Pay &
Benefits
 The pay and benefits that employees earn play an important role in
motivating them

 Decisions about pay and benefits can also support other aspects of an
organization’s strategy

 It includes decisions about salary, wages, bonuses, commissions and

other performance-related pay

 Other decisions involve retirement plans, insurance which have

implication for organization’s performance & employee motivation
 Maintaining Positive Employee Relations

 Organizations often depend on human resource professionals

to help them maintain positive relations with employees

 This function includes preparing and distributing employee

handbooks that detail company policies and, in large
organizations, company publications such as a monthly
newsletter or a website on the organization’s intranet
Managing & Using Human Resource Data

 All aspects of human resource management require careful and discreet

record keeping, from processing job applications, to performance
appraisals, benefits enrolment, and government-mandated reports

 Data about employees can show, for example, what kinds of employees
tend to perform best in particular positions, and in which departments the
need for hiring will be most pressing, etc.

 HR analytics use quantitative tools and scientific methods to analyse data

from human resource databases and other sources to make evidence-
based decisions that support business goals
 Ensuring Compliance with Labour
Laws
 The government has many laws and regulations concerning the treatment
of employees

 These laws govern matters such as equal employment opportunity,

employee safety and health, employee pay and benefits, employee
privacy, and job security, etc.

 Government requirements include filing reports and displaying posters, as

well as avoiding unlawful behaviour

 Most managers depend on human resource professionals to help them

keep track of these requirements
Role of HRM in Organizational
Performance
 Strategic Human Resource
Management

Formulating and executing human resource

policies and practices that produce employee
competencies and behaviors the company
needs to achieve its strategic aims
HR Mission of
Bank of Baroda
 Strategic Human Resource
Management

Pinpoint the Decide HR

Set the firm’s
employees policies &
strategic aims
behaviors & skills practices
 HR, Performance and Sustainability

 It is about measuring companies in terms of maximizing profits

but also on their environmental and social performance as well
 HR and Employee Engagement

 Employee Engagement refers to being psychologically involved

in, connected to, and committed to getting one’s jobs done

 Committed employees experience high level of connectivity with

their tasks

 Leadership development programs, employee recognition,

internal communication, employee development, compensation &
other policies facilitate employee engagement
NEW HR ROLES IN MODERN
ORGANISATIONS

• Recruiters • Labor Relation specialists

• Diversity officer • Employee welfare officers
• Job Analysts • Happiness officer
• Compensation Managers • Talent management specialist
• Training or learning and • HR Analytics officer
development specialists
 Line and Staff Aspects of Human Resource
Management

Authority is the right to make decisions, to direct the work of

others, and to give orders. Managers usually distinguish
between line authority and staff authority.
 Line and Staff Managers
 Line authority
gives you the right
to issue orders

 Staff
authority
gives you the right
to advise others in
the organization
 Line Manager’s HR Management
Responsibilities (1 of 3)
 Placing the right
person in the right
job

 Starting new
employees in the
organization
(orientation)
 Line Manager’s HR Management
Responsibilities (2 of 3)

Training employees for jobs that are new to them

Improving the job performance of each person

Gaining creative cooperation and developing smooth working

relationships

Interpreting the company policies and procedures

 Line Manager’s HR Management
Responsibilities (3 of 3)

 Controlling labor cost

 Developing the abilities of each person

 Creating and maintaining departmental morale

 Protecting employees’ health and physical conditions

 The Human Resources Department

FIGURE 1-1 Human Resource Department Organization Chart Showing

Typical HR Job Titles
Source: “Human Resource Development Organization Chart Showing Typical HR Job Titles,” www.co.pinellas.fl.us/persnl/pdf/orgchart.pdf. Courtesy of Pinellas
County Human Resources. Reprinted with permission.
Trends Shaping Human
Resource Management
 Trends in Human Resource Management

 Workforce Demographics and Diversity Trends

 Trends in How People Work

 Improving Performance at Work: HR as a Profit Center

 Globalization Trends

 Economic Trends

 Technology Trends
 More on HR Technology Trends

 Thereare 5 main types of digital technologies driving HR

professionals to automation:
• Social Media

• Mobile Applications

• Gaming

• Cloud Computing

• Data Analytics (as known as Talent Analytics)

 Human Resource Management : Session 3

Human Resource Planning

Strategic and Human Resource
Planning
 Strategic Planning

An organization’s decision about what it

wants to accomplish (its mission) and how it
wants to go about accomplishing it
 Strategic Planning

Define the Perform Translate the

Formulate a
current external & mission into
new direction
business internal audits strategic goals

Formulate
Evaluate Implement the
strategies to
performance strategies
achieve goals
Strategy at Each
Corporate Level
Level Strategy
(What business are
we in?)

Business 1 / Business 2/ Business 3/

Competitive Strategy Competitive Strategy Competitive Strategy
(How will we (How will we (How will we
compete?) compete?) compete?)

Functional Strategy Functional Strategy Functional Strategy

Sales dept. Production dept. HR dept.
 Strategic Human Resource
Management

Formulating and executing human resource

policies and practices that produce the
employee competencies and behaviors the
company needs to achieve its strategic aims
 Human Resource Planning

 E. W. Vetter, “Human resource planning is the process by which the

management determines how an organization should move from its
current manpower position to its desired manpower position. Through
planning the management strives to have the right number and the
right kinds of people at the right places, at the right time, to do things
which result in both the organization and the individual receiving the
maximum long-range benefit”.
 Activity- 1

 You are appointed as HR manager of the XYZ company. You

need to develop a human resource plan for the next 2 years.

 Discuss in groups how you will develop the HRP.

 The company is expecting changes in employment rules, sales

increase etc.
Human Resource Planning Process
 Situational
Analysis & Human Resource Compar Human Resource
Environmental Demand e Supply
Scanning With

None
Variance END
The Human
Resource Planning Surplus Shortage

Process
Decision Decision

END END
 Situational Analysis & Environmental
Scanning
 The first stage is the point at which HRM and strategic planning initially
interact

 The strategic plan must adapt to environmental circumstances

 HRM is a primary mechanism that an organization can use during the

adaption process

 Effective HR plan would support functions like recruitment and selection

to move fast enough to stay competitive
Forecasting Demand for Employees
 Forecasting Demand for Employees

 The next phase of effective HR planning process is estimating not only

how many but also what kinds of employees will be needed

 Forecasting yields advance estimates or calculations of the organization’s

staffing requirement

 The demand for employees is closely tied to the strategic direction that
the organization has chosen

 Despite of many quantitative tools, human judgement has great

importance in forecasting
 Delphi Technique

Elicits expert estimates from a number of

individuals in an iterative manner –
estimates are revised by each individual
based on knowledge of the other individuals’
estimates
 Nominal Group Technique

Individual generation of estimates is followed

by group brainstorming sessions in the hope
of generating one group decision that is
preferred over any other individual decision
 Trend Projection

 It is a forecast based on a past relationship between a factor

related to employment and employment itself

 The planner can develop a table or graph showing the past

relationship between the factor and the employment
 Trend Projection – Example
Year Sales Employee Census

2015 Rs. 100,00,00,00,000 5000

2016 Rs. 120,00,00,00,000 6000

2017 Rs. 140,00,00,00,000 7000

2018 Rs. 160,00,00,00,000 8000

Forecast Sales Forecast Employee Forecast

2019 Rs. 180,00,00,00,000 9000

2020 Rs. 200,00,00,00,000 10000

 Modelling with Multiple-Predictive
Techniques
 Trend projection relate a single factor (for example, sales) to
employment

 The more advanced approach relate many factors like sales,

gross national product, discretionary income, etc.

 Markov Chain Analysis involves developing matrix to show the

probability of an employee’s moving from one position to another
or leaving the organization
 Markov Analysis : Example
Business 2017 Level of 2018 Level of
Gain Loss
Unit Employees Employees
A 200 60 40 220
B 500 40 50 490
C 300 35 45 290

Business Employees Employees

2017 Probability of Retention
Unit Lost Retained
A 200 40 160 160 / 200 = 0.80
B 500 50 450 450/500 = 0.90
C 300 45 255 255 / 300 = 0.85
 Regression Analysis

 It is a mathematical procedure that predicts dependent variable

on the basis of the knowledge of factors known as independent
variables

 When only one dependent and one independent variables are

studied, it is called ‘simple regression’

 When there is more than one independent variable being

considered, the technique is referred as ‘multiple regression’
 Regression Analysis in HR Planning

 Multiple regression is widely used in HR planning as it

emphasizes two or more independent variables

 HR planning specialist can quickly and easily determine the

relationship between a large number of predictors and
dependent variable

 Statistical packages like SPSS, SAS are widely used

 Unit Demand Forecasting

 It is the bottom-up approach to forecasting demand

 The unit (department, team, or any other group) manager

analyzes the person-by-person, job-by-job needs in the
present as well as the future

 When units forecast their own needs, the HR executive would

sum their estimates to arrive the forecast
 What if Forecasts Conflict?

 The manager reconciles the two totals by averaging them or

examining more closely the major variances between the two

 Delphi technique could be used to arrive at the conclusion

 Nominal Group Technique can also be useful in resolving any

discrepancies between different expert’s opinions

 One or several forecast techniques can be used together to

produce a single employment forecast
Analyzing Current Supply of Employees
 Analyzing the Current Supply of
Employees

This phase of HR Planning is designed to answer

the important question – “how many employees
and what kinds of employees do we currently
have in terms of skills and training necessary for
the future?”
 Skill Inventory

 Skill Inventory in its simplest form is a list of names, characteristics,

and skills of the people working for the organization

 It is essential to note what kinds of skills, abilities, experiences, and

training the employees currently have

 By keeping the track of these, the organization can quickly

determine whether a particular skill is available when it is needed
Main Categories of Skill Inventory
Headings

Data summarizing employee’s past

Data summarizing the status of present skills

Data that focus on the future

 Data Summarizing Employee’s Past

 Titles and brief job description highlights from positions held in

last 2 -5 years

 Critical Skills needed or developed while in these positions

 Educational Qualification

 Significant projects accomplished during the last three years

Data Summarizing Employee’s Present
Skills
 Skill related highlights: Last three performance appraisal

 Employee’s perception of what is done well on present job

 Same data from the employee’s supervisor

 Data that focus on future

 Personal career goals

 Views of the individual’s present supervisor

 Specific training and development efforts the individual is

motivated to undertake
 Actions decisions in HRP

 Action decision with a shortage of employees- Overtime,

promotion, part- time worker, subcontractors, independent
professionals, moonlighting

 Action Decisions in surplus- attrition, early retirement (Golden

handshake), demotions, lay off and terminations
 What Is Job Analysis?

Job Analysis – is the procedure through which you determine

the duties and skill requirements of a job and the kind of person
who should be hired for it.
 The Basics of Job Analysis
 Work activities

 Human behaviors

 Machines,tools,
equipment, and work aids

 Performance standards

 Job context

 Human requirements
Uses of Job Analysis Information
• Recruitment
and selection
• EEO
compliance
• Performance
appraisal
• Compensatio
n FIGURE 4-2 Uses of Job Analysis Information
• Training
 Conducting a Job Analysis

1. How will information be used?

2. Background information

3. Representative positions

4. Collect and analyze data

5. Verify

6. Job description and specification

Step1 - How will information be used?

 Some data collection techniques like interviewing the

employee- are good for writing job descriptions. Other
techniques like the position analysis questionnaire provide
numerical ratings for each job; these can be used to compare
jobs for compensation purposes.
 Step 2- Background information
 It is important to understand the job context. For example
organisation charts show the organisation wide division of work
and where the job fits in the overall organisation. A process
chart provides detailed picture of the workflow.
 Step 3- Representative positions

 With a job to analyse, the manager then generally selects a

sample of positions to focus on. For example to analyse an
assembler’s job it is usually unnecessary to analyse the jobs of
all the firm’s 200 assembly workers; instead a sample of 10
jobs will do.
 Step 4 Collect and analyze data

 The actual job analysis involves greeting each job holder;

briefly explaining the job analysis process and the participants
roles in the process; spending about 15 minutes interviewing
the employee to get agreement on a basic summary of the job;
identifying the job’s broad areas of responsibility and then
interactively identifying specific duties/ tasks within each area.
Step 5- Verify the job analysis information
with the worker and his/her immediate
supervisor.
 This will help confirm that the information is factually correct
and complete and help to gain their acceptance.
Step- 6 Job description and specification

 Job analysis leads to development of two documents related to

a particular job- Job description and Job specification

 Job description lists the duties, activities, and responsibilities

of the job as well as its important features such as working
conditions.

 Job specification summarises the personal qualities, traits and

background required for getting the job done.