Essentials of HRM

1. ‘Sundaram Ltd’ is an electronics company in Chandigarh. The top management

plans to open new branches pan India so they want to create a dynamic human
resource department for managing employee functions. You have been
appointed as their VP - HR. Explain to the top management, what will be the
scope of your department in this expansion. Give some examples in the context
of this company.

INTRODUCTION
Sundaram Ltd’ is an electronics company in Chandigarh. The top management plans to
open new branches pan India so they want to create a dynamic human resource
department for managing employee functions. Work done isn't enough. Work done right
is the requirement. That’s precisely what constitutes the scope of human resource
management. Obtaining the correct ones that perceive the company’s goals and play a
task in forwarding these goals is the key to the success of any organization.
Understanding employees’ financial and non-monetary desires and using them to boost
productivity is the nature and scope of human resource management.

CONCEPTS AND APPLICATIONS

Scope of Human Resource Management
Human resource management could be a pervasive and interdisciplinary activity that,
over the years, has become indispensable in each organization. Let’s verify however
human resource management’s scope is thus huge and why it plays such a crucial role
within the company.

➢ Assessment of company human resources

➢ Reviewing jobs within the organization
➢ Interviewing and selection
➢ Introduction and Orientation
➢ Remuneration and edges
➢ Employee’s growth prospects
➢ Training on the work
➢ Employee Satisfaction
➢ Employee’s Grievance Redressal system
➢ Labour and Trade unions

1. Assessment of company Human Resources

First and foremost, within the huge functions of HRM is an assessment of the human
resources of the company. It means that evaluating this payroll and whether or not it's
proportional to the work requirement. This provides an inspiration regarding whether
roles are missing or quite needed within the organization. This whole method can even
be known as human resource planning.

2. Reviewing jobs within the organization

Getting a comprehensive detail regarding every title within the company and what
profile is going to be required to satisfy a vacant job title comes underneath human
resource management. This helps with finding and choosing the correct candidates for
the company. Job analysis must be done very carefully, considering the company’s
money budget.

3. Interviewing and selection

The next step in her scope is the selection of the correct candidate. the correct
candidate would be the one who, aside from his educational qualification, conjointly fits
the company’s culture. One in all the activities of HRM is coming up with the necessities
for a selected job title. Deciding what percentage steps the interview selection process
would have also come under the scope and functions of HRM

4. Introduction and Orientation

After the candidate is selected, he's introduced to its work culture, ethics, and setting.
He's adjusted with the team he can work with and also the supervising manager. This
helps in building the comfort level of the new worker. The target of the entire induction
method is to acquaint the worker with structure values. It's an informal method.

5. Remuneration and benefits

Discussing the base salary and alternative perks to that a worker is entitled could be a
part of the scope of human resource management. The human resource manager’s role
is to obviously describe all the advantages, together with medical, travel, vacation
leaves, etc. of these perks facilitate in achieving a superior work efficiency setting.

6. Employee’s growth prospects

The better the expansion opportunities an organization offers, the a lot of the loyalty of
the staff. The nature and scope of HRM comprise a way to keep the worker driven and
gain their loyalty. It’s the HR who has all the knowledge regarding employees’
performance and who is better than him to review his past performance and discuss
future growth opportunities with him. A performance appraisal, coupled with incentives
and increments, motivates the staff to realize more and more targets if done from time
to time.

7. Training on the job

Human resource management is an alternative called employee-oriented performance.
Its job is to continuously provide different learning programs to its workers. One in all
the most activities of HRM involves the event of its workers. Each organization’s
success depends on how up-to-date an employee is with new ways of doing the work.
These coaching programs aim to boost and build the employee’s skills as per skills from
around the world.

8. Employee Satisfaction
The health, Wealth, and prosperity of workers are all the responsibility of her. Building a
healthy work setting and motivating the staff at every step conjointly comes underneath
the scope of human resource management. This includes non-monetary amenities like
medical, canteen, or alternative recreational areas. A secure and secure work setting
plays a large role within the potency of workers.

9. Employee’s Grievance Redressal system

Human resource managers ought to use a mechanism to handle employees’
grievances in a very secure setting. This helps in building the trust of workers within the
long run. Feeling their voices are heard also gives the employee a different level of
satisfaction. making certain this method is carried out firmly and confidentially is one in
all the crucial jobs of HRM.

10. Labour and Trade unions

Building strong relations within the trade is one in all the key attributes to the success of
any organization. The wide scope of human resource management also involves
building and maintaining healthy, strong relations with totally different trade unions for
the company’s smooth functioning.

CONCLUSION
With dynamic changes in the world these days, the scope of human resource
management must be widespread and desires to evolve to suit the organization’s
current needs. It won’t be wrong to mention that to win within the market, one has to win
in the workplace, and also the key thereto is implementing a strong and adaptable
human resource management function.

2. An FMCG company wants to focus on improving the structure of the human

resource department. They have hired you as an HR advisor for this purpose.
Suggest what should be the various activities under the new subdivisions in the
HR Department. Elaborate them with corporate examples.

INTRODUCTION
An FMCG company wants to focus on improving the structure of the Human resource
department. They have hired you as an HR advisor for this purpose. HR plays a very
important role in the company structure and hence we set up a new branch, we need to
start from fresh for most of the part.

CONCEPTS AND APPLICATIONS

Followings are the activities that should be the various activities under the new
subdivisions in the HR Department.

Many small organizations begin out with the owner or a non-HR government handling
employment problems. Someone must oversee administrative duties and policies
regarding pay and benefits, unemployment compensation, withholding taxes and
administering workers' compensation, if applicable. As organizations grow, department
managers might handle general worker problems, whereas accounting or finance
handles payroll. Or organizations might use outside consultants to deal with temporary
desires.
The strategy of spreading her duties among numerous managers and departments, or
hiring 60 minutes assistance on an as-needed basis, could also be satisfactory up to a
point. However, once extra federal laws kick-in some at the edge of 15 employees
maintaining a spotlight on myriad compliance laws, growing the business will become
troublesome. Having an HR skilled onsite is a lot of economical to deal with problems
like hiring, firing, leave management, training, discipline, policy development and
enforcement, and advantages. At the moment, a little organization might want to have
confidence in establishing a dedicated HR department. See Federal Labor Laws by
range of staff.

HR Staff setting up
Hiring a qualified and experienced HR professional isn't a straightforward task for a
startup, and a few employers might communicate with an external recruiter, HR
authority or outsourced HR organization to assist employees in the HR department.
Most often a one-person HR department, or solo professional person, would be staffed
with an HR generalist or HR manager. Once screening candidates, organizations ought
to contemplate the subsequent attributes:
➢ Number of years of HR experience and therefore the level of responsibility in
those years of expertise (i.e., was the candidate a scholarly person, a manager
or a specialist?).
➢ Experience working with startups or organizations of similar industry or size.
➢ Education level and HR-related certifications.
➢ Knowledge of employment laws and alternative compliance problems.
➢ Ability to conduct analysis, access resources, range and juggle multiple comes,
go with the quickly changing needs of a startup, and communicate directly with
higher management.

HR Budget
The Human resource practitioner's responsibility is to align the HR department's budget
with the organization's strategic goals whereas following structure tips and procedures.
Budgeting involves the systematic collection of information and data in order that the
financial resources required to support an organization's objectives are projected. New
organizations haven't any previous budget to use for comparison; thus, protruding and
estimating are needed for the initial HR budget. From a person's resource perspective,
the information required to form a brand new budget embody the following:

➢ Number of staff projected for the year.

➢ Benefits price projections.
➢ Projected ratio.
➢ Costs already incurred within the current year.
➢ New advantages or programs planned.
➢ Anticipated legal expenses.
➢ Recurring or new coaching desires.
➢ Other policies, business methods, laws or rules which will have an effect on
prices.

Tax Obligations
New organizations should be registered with the internal Revenue Service (IRS). HR
will need to ensure the organization encompasses a federal employer identification
number (EIN) and is registered with state and native revenue agencies for payroll tax
functions. Betting on the dimensions and structure of the organization, these functions
could also be handled by the accounting or finance departments.

Payroll system and administration

Setting up a payroll system may be a high priority. HR professionals may need to figure
with a payroll merchant to help reduce body burden and to help with payroll compliance.
Outsourcing to third-party directors for payroll and connected tax duties helps busy
employers meet filing deadlines and deposit necessities.
Once a payroll system is established, payroll should be administered frequently. The
organization has to verify if payroll administration can fall into human resources or
finance. The payroll administrator should perceive federal and state wage and hour
laws, including minimum wage, overtime pay and eligibility, meal and rest break laws,
record-keeping, and the way to work out hours worked.

Company wide staffing set up

HR ought to work with management to realize an understanding of the short- and long-
term staffing desires and budget. A staffing set up can verify the composition and
content of the workforce needed to position the organization for current and future
business objectives. operating with the owners, founders or management, HR creates a
3-6 month staffing setup and budget to work out what proportion time and activity have
to be compelled to be spent on properly staffing the organization. Longer-term staffing
plans might influence her department staffing desires also.

Job Descriptions
A job description may be a helpful, plain-language tool that explains the tasks, duties,
operations and responsibilities of an edge. It details who performs a selected form of
work, how that work is to be completed, and therefore the frequency and therefore the
purpose of the work because it relates to the organization's mission and goals. Job
descriptions are used for a range of reasons, like determining salary levels, conducting
performance reviews, clarifying missions, establishing titles and pay grades, and
making reasonable accommodation controls, and as a tool for recruiting. Job
descriptions are helpful in career designing, providing coaching exercises and
establishing legal necessities for compliance functions. an employment description
offers an employee a clear and concise resource to be used as a guide for job
performance. Likewise, a supervisor will use an employment description as an activity
tool to make sure that the worker is meeting job expectations.

Employee handbook
Human resource professionals recognize the employee reference as a necessary tool
for human activity work culture, advantages and employment policy info to staff. An
employee handbook generally describes info regarding the employer's employment
practices, benefits, equal opportunity commitments, attending tips, pay practices, leave-
of-absence procedures, safety issues, labor relations matters and consequences for
misconduct.

Safety Procedures
Employees have the proper to figure in an exceedingly safe and healthy work
environment. The Activity Safety and Health Act of 1970 (OSH Act) legislation ushered
in an exceedingly important body of rules designed to safeguard the health and safety
of every employee and placed the first responsibility for health and safety on the leader.

Hiring Procedures
The hiring method includes multiple steps and numerous practices, together with the
employment of application forms, interviews and pre-employment testing. whether or
not to use a written contract and also the terms of an employment provided also acquire
play at this stage. Finally, he should oversee the process of organizational entry, stated
as "onboarding" or "orientation."

Performance evaluation method

The performance review method includes each continuous informal feedback and
periodic usually annual formal feedback. an organization's HR department is usually the
linchpin of the effective and economical administration of the performance management
system. Having an educated HR team that's well-prepared to coach the organization's
managers within the system and to help them once they have problems or queries is
crucial to the sleek functioning of the method.

CONCLUSION
We have seen that new organizations need to follow many different types of HR roles.
There are many activities that need to be done in the new subdivision of the company.
We have mentioned all the points that we need to do while setting up the new
subdivision.

3. Maria, the HR Head of ‘Aztec Tech Solutions Ltd’ assigned the task of
assessing the human resource planning to the HR Department. However, his
team informed him that this assessment is not going well as they had expected.
Keeping this context in mind, answer the following:
a. Explain the process of human resource planning. Give some examples also.

INTRODUCTION
Maria, the HR Head of ‘Aztec Tech Solutions Ltd’ assigned the task of assessing the
human resource planning to the HR Department. However, his team informed him that
this assessment is not going well as they had expected. Human resource planning
permits corporations to set up ahead so that they will maintain a steady supply of
competent staff. That is why it's additionally spoken as workforce planning. The method
is employed to assist corporations appraise their desires and to set up ahead to fulfill
those desires.

CONCEPTS AND APPLICATIONS

Steps to Human Resource planning
There are four general, broad steps concerned within the human resource planning
process. Every step has to be taken in sequence so as to hit the tip goal, that is to
develop a technique that allows the corporation to with success realize and retain
enough qualified staff to fulfill the company's desires.

Analyzing Labor supply

The first step of human resource designing is to spot the company's current human
resources. During this step, the HR department studies the strength of the organization
supporting the quantity of staff, their skills, qualifications, positions, benefits, and
performance levels.

Forecasting Labor Demand

The second step needs the company to stipulate the future of its workforce. Here, the
HR department will think about problems like promotions, retirements, layoffs, and
transfers anything that factors into the future needs of a company. The HR department
may also check out external conditions impacting labor demand, like new technology
which may increase or decrease the requirement for employees.

Balancing Labor Demand With provide

The third step within the HRP method is to state the employment demand. HR creates a
spot analysis that lays out specific needs to narrow the availability of the company's
labor versus future demand. This analysis can usually generate a series of queries,
such as:
 ➢ Should employees learn new skills?
➢ Does the company want additional managers?
➢ Do all staff play to their strengths in their current roles?
➢ Developing and Implementing a concept
➢ The answers to questions from the gap analysis facilitate HR determine a way to
proceed, that is, the final section of the HRP method. HR should currently take
sensible steps to integrate its set up with the remainder of the corporate. The
department desires a budget, the flexibility to implement the set up, and a
cooperative effort with all departments to execute that set up.

Example : How HR do the planning of hiring a new team for the upcoming project in a
given timeframe.
How HR plans the sudden leave from the office staff working on important projects.

CONCLUSION
The goal of her planning is to have the optimal range of workers to make the most
money for the company. As a result of the goals and methods of a company changing
over time, human resource designing may be a regular occurrence. To boot, as
globalization increases, her departments can face the requirement to implement new
practices to accommodate government labor rules that change from country to country.
The increased use of remote workers by several firms will impact human resource
designing and will need her departments to use new ways and tools to recruit, train, and
retain employees.

b. Discuss the qualitative methods for Human Resource Demand forecasting that
the company can utilize. Which one do you think is best suited for this
company?
INTRODUCTION
Qualitative approaches to statements are less statistical. it's making an attempt to
reconcile the interests, abilities, and aspirations of individual staff with the future staffing
desires of a company. In each large and small organization, her planners could rely on
experts. These experts assist in getting ready forecasts to anticipate staffing
necessities.
For example, within the expert forecasts methodology, managers estimate future
human resource requirements, their experiences and judgments to good impact.
Management forecasts are the opinions of supervisors, department managers, experts,
or others knowledgeable about the organization’s future employment desires.

CONCEPTS AND APPLICATIONS

Followings are the qualitative methods:
Delphi technique is another qualitative statement methodology within which it makes
an attempt to decrease the subjectivity of forecasts by involving a group of preselected
people and soliciting and summarizing the judgments. Therefore a group decision-
making method is invoked that, in turn, needs a good deal of method orientation to
boost coordination and cooperation for satisfactory forecasts and this methodology
works best in things wherever dynamic technological changes have an effect on staffing
levels. Ideally, HRP ought to include the use of each quantitative and qualitative
approach as per the need. Together, the 2 approaches serve to enrich each other.
Thus, the mix provides an additional complete forecast by transportation along the
contributions of each theoretician and practitioner.

Whatever technique the involved person may utilize, they have to be done consistently.
The HR planners many times go more and analyze the demand on the basis of the
following:

Workforce analysis methodology is employed to see the speed of influx and outflow
of workers. Through this analysis one will calculate the labor turnover rate, absenteeism
rate, etc. Qualitative ways are a protracted method in analyzing the inner flow created
by promotions, transfers etc.

Workload analysis is employed to calculate the numbers of persons needed for varied
jobs with reference to planned output and this takes into thought varied factors like
absenteeism, and idle time, etc. Each quantitative and qualitative technique is utilized
for accurate results.

Job analysis is helps find out the skills or skills needed to do the roles with efficiency
i.e. KSA (knowledge, skills and abilities). An in depth study of jobs is sometimes created
to spot the qualifications and skills needed for the staffing purpose. Job analysis
includes 2 things: job description and job specification.

CONCLUSION
I will choose the Workforce analysis methodology. It is employed to see the speed of
influx and outflow of workers. Through this analysis one will calculate the labor turnover
rate, absenteeism rate, etc. Qualitative ways are a protracted method in analyzing the
inner flow created by promotions, transfers etc.