HUMAN RESOURCE MANAGEMENT (HRM)

ORGIN OF HRM
Organizations have many operational functions. HRD is one of the functions that is engaging with
the tasks of an organization. In early 70 s there was no division called as Human Resource
Department or Division. By that time there was only a division called "Personnel" engaged with
the labor related in the organization. Personnel Management was introduced by the end of 19th
century. At that time, this was focused on the welfare of labors in the organizations. During the
period of 1914-1939, many organizations has showed a quick growth and quick changes in needs
and wants of the operations. Therefore the tasks done by women shifted to the men's, because of
the complexity of tasks. After Second World War, during the period 1945 - 1979, this has grown
up and changed to "Personnel Management".
CONCEPT AND MEANING OF HUMAN RESOURCE MANAGEMENT (HRM)
Human resource management may be defined as a process in which human resources are recruited
and mobilized in such a way that it helps in achieving the objective of the organization. HRM is
concerned with the people dimension in management under which the consideration is given
towards recruitment and selection, development, motivation and maintenance of human resources
in an organization. Therefore, human resource management is an art of managing and mobilizing
people in the organization Features of Human Resource Management
Management of an Individual
Continuous Process

-oriented
Components or Elements of Human Resources Management
Human resource management is a process which involves around four basic functions- acquisition,
development, motivation and maintenance of human resources. These basic elements are the key
steps for achieving organizational goals.
1. Acquisition
Acquisition function is concerned with recruitment and selection of manpower requirement for an
organization.
2. Development
It is concerned with imparting knowledge and skill to perform the task properly.

Prepared By: Md. Saiful Islam, Lecturer, Dept. of Finance and Banking, University of Barishal
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3. Motivation
Motivation includes job specification, performance evaluation, reward and punishment, work
performance, compensation management, discipline and so on.
4. Maintenance
It is concerned with the process of retaining the employees in the organization. This requires that
the organization should provide additional facilities, safe working conditions, friendly work
environment, and satisfactory labor relations.
Importance and Objectives of Human Resource Management

good relations between employer and management.

Productivity
Functions and Roles of Human Resource Department/Manager
1. Managerial Functions of Human Resource Department
Managerial function is concerned with the activities performed by top management in the
organization.
Planning
Organizing
Directing/leading
Controlling
2. Operative Functions of Human Resource Department
Operative function is concerned with day-to-day management of organizational activities and
human resources.
Employment
Development
Compensation

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Motivation
Maintenance
Personnel record
Industrial relation or employee relation
3. Advisory Functions of Human Resource Department
Human resource manager has specialized knowledge, education and training in managing human
relations. So, he/she can provide advice on matters relating to human resources of the organization.
The advice may be to the top management or departmental heads.
Concept and Meaning of Human Resource Planning
Human resource planning is one of the crucial aspects of human resource management because it
helps to ensure the needed manpower for organizational goal.
Balancing demand and supply of workers
Controlling cost of human labor
Formulating policies on transfer, succession, relocation of manpower * Ensuring right kind of
people at the right time and right place.
Characteristics of Human Resource Planning
Future Oriented
Continuous Process.
Optimum Utilization of Human Resources
Right Kinds and Numbers
Determination of Demand and Supply.
Human Resource Planning Approaches
Quantitative Approach
It is also known as top down approach of HR planning under which top level make and efforts to
prepare the draft of HR planning. It is a management driven approach. The focus of this approach
is to forecast human resource surplus and shortages in an organization. In this approach major role
is played by top management.
Qualitative Approach
This approach is also known as bottom up approach of HR planning under which the subordinates
make an effort to prepare the draft of HR planning. Hence, it is also called sub-ordinate-driven
approach. It is concerned with matching organizational needs with employee needs. In this
approach, major role is played by lower level employees.

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Mixed Approach
This is called mixed approach because it combines both top-down and bottom-up approaches of
HR planning. In fact, the effort is made by employees and the management equally. There is a
equal participation of each level of employees of the organization.
Concept and Meaning of Job Design
Job design is a process through which job related data are revealed and the contents as well as
methods of performing different tasks are specified. It plays a key role in bringing organizational
productivity and employee motivation at work. Job design is a process by which required and job-
related information is gathered to determine different tasks to be included in the job.
Methods of Job Design
1. Classical Approach
Under this approach, the job is designed in the basis of organizational requirements. Its purpose is
to simplify the tasks and break them down into small work units. The primary focus of this
approach is planning, standardizing and improving human effort at work in order to optimize
organizational productivity.
2. Socio-technical Approach
This is another important approach of job design in which social and technical aspects of the
organization are considered. Under it, jobs are designed according to individual needs and
organizational requirements. Furthermore, this approach considers both job-related technical
systems as well as accompanying social forces of the job. The technical and social aspects of job
are analyzed in order to create jobs which have supportive relationship.
3. Behavioral Approach
Behavioral approach is concerned with behavioral factors such as: autonomy, variety, task identity,
task significance, feedback mechanism etc. It means the above mentioned behavioral factors are
analyzed and considered while designing the jobs under this approach.
Concept and Meaning of Job Analysis
Job analysis collects and analyses the information related to jobs and various aspects of jobs. Job
analysis is a process of gathering or collecting information relating to job description and job
satisfaction. It is the systematic process of gathering and organizing the information relating to
various aspects of job, which describes the job contents and minimum job requirements in terms
of skills, efforts, responsibilities and working conditions.

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Objectives of Job Analysis
Job Description
Job description is a job profile which describes the contents, environment and condition of jobs. It
provides information relating to activities and duties to be performed in a job. It differentiate one
job from another by introducing unique characteristics of each job.
Job Specification
It includes the information relating to the requirements of skills and abilities to perform a specific
task. The job specification statement identifies the knowledge, skills, abilities needed to perform
that task effectively.
Job Evaluation
Job analysis also provides required information which are necessary for evaluating the worthiness
of jobs. After the preparation of job description and job specification statements, it assists for the
evaluation of actual performance against the predetermined standard.
Steps Involved In Job Analysis or Job Analysis Process
Information Collection through different methods such as interview, observation, questionnaire,
etc.

f Job by Collecting Data

Description

Concept and Meaning of Job Evaluation

Job evaluation is concerned with a process of establishing value of different jobs. Job evaluation
provides a basis for ranking or grading different jobs and developing a pay structure for them. Job
evaluation is the rating of job in an organization which attempts to compare the relative intrinsic
value of each job and forms a job hierarchy.
Importance and Features of Job Evaluation

aluation helps to determine pay structure

labor and management

production

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Concept and Meaning of Job Specification
Job specification is a document or statement which spells out the minimum levels of qualification,
skills, physical and other abilities, experience, judgement and attributes required to perform the
efficiently and effectively. Job specification is prepared along with job description statement to
explain the minimum acceptable human qualities necessary to perform the task effectively. It
specifies the physical, psychological, personal, social and behavioral characteristics of each job-
holder.
Contents of Job Specification Statement
Required Level of Education
Health and Physical Fitness
Appearance - outlook of an employee
Mental and Other Abilities
Experience.
Concept and Meaning of Recruitment
Recruitment process begins after preparing HR planning and conducting job analysis .Recruitment
is a process of identifying and preparing potential candidates to fill the application form.
Recruitment may be defined as a process of bringing right people for right position, at the right
time to perform organizational activities in order to achieve the objectives.
ies different sources of manpower supply,

Factors Affecting Recruitment

rganization
- how many candidates from outside the organization.

Labor market

Prepared By: Md. Saiful Islam, Lecturer, Dept. of Finance and Banking, University of Barishal
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Recruitment Process or Steps of Recruitment
Identifying the HR Requirement
Assess the requirement of human resource in an organization to carry out the organizational
mission, goals and objectives.
Identifying Possible Sources of HR Supply
The probable sources are identified for generating a pool of qualified candidates.
Communicating the Information
The potential candidates are informed about vacancy announcement.
Receiving Application
Recruitment process ends receiving the application forms dropped by different applicants who are
interested to apply for a job. It provides a pool of candidates for selection.
Internal Sources and Methods of Recruitment
Internal sources refer to recruiting employees from within the organization.
Promotions
It refers to promoting or upgrading an employee who is already existed in the pay roll and
contributed for organizational performance.
Transfers
Under it, employees are internally recruited through transfer from one work place to another.
Recalling of laid-off employees.
Advantages of Internal Recruitment
ses employee Moral
Labor Relation

Prepared By: Md. Saiful Islam, Lecturer, Dept. of Finance and Banking, University of Barishal
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Disadvantages of Internal Recruitment

f Traditional System - limits the scope of fresh talent in the organization.

– giving opportunity to friends, & relatives.

– Payment of higher salary and benefits to promoted and transferred personals.

Methods of External Recruitment
External recruitment is concerned with generating a pool of qualified candidates from outside of
the organization.
1. Direct Recruitment
Direct recruitment refers to a process of recruiting qualified candidates from external sources by
placing a notice of vacancy in an organization's notice board.
2. Casual Callers
This method of recruitment is concerned with using previously applied candidates as a source of
recruitment.
3. Advertising
Advertising is one of the most common and popular methods of external recruitment under which
the job vacancy is announced through different print and electronic media
4. Employment Agencies
Employment agencies run by private, public or government sectors are regarded as an important
source of recruitment for unskilled, semi-skilled and skilled jobs.
5. Schools, Colleges and Universities
It is also known as campus recruitment. Under this method of external recruitment, educational
institutions such as schools, colleges and universities offer opportunities for recruiting fresh
candidates.
6. Labor Contractors
Labor contractors are an important source of recruitment under which workers are recruited
through contractors.
7. Recommendations

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Under this method of external recruitment, applicants are introduced by friends and relatives.
Advantages of External Recruitment
1. Wider Choice
2. Qualified Personnel
3. Fresh Talent
4. Competitive Spirit
5. Widens opportunity for all.
Disadvantages of External Recruitment
Too much Expensive

It is too Long Process

Concept and Meaning of Selection

Selection is a process of choosing the most qualified and suitable candidate to fill organizational
vacancies. The process of selection provides an employment opportunity to the persons who
possess the abilities and qualifications to perform a specific job.
Selection Process

Concept and Meaning of Selection Test

A selection test is a systematic and standardized procedure of sampling human behavior in order
to obtain qualified applicants for organizational activities. It is used to assess the ability, aptitude

Prepared By: Md. Saiful Islam, Lecturer, Dept. of Finance and Banking, University of Barishal
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and personality of prospective candidates. Selection test is conducted in order to select a right
person for the right job who will be capable of performing organizational activities if hired.
Types of Selection Tests
1. Intelligence Test
Intelligence test is used to judge the mental ability of the candidates
2. Aptitude Test
It measures the probability of performing the job in terms of how often and how well.
3. Personality Test
It is the measurement of personal characteristics of the candidates. It is also known as personality
inventory.
4. Interest Test
The personal interests such as like and dislikes are identified by interest test.
5. Situational Test
It evaluates whether a particular candidate can perform the job in a given situation.
6. Honesty Test
Honesty test measures to what extent the information provided by the prospective candidates is
accurate.
Concept and Meaning of Interview
An interview is a face-to-face interaction between interviewer and interviewee. Interview is a
procedure designed to obtain information through the exchange of ideas and the answering of
queries. It attempts to secure maximum amount of information that cannot be obtained from other
methods
Steps Involved For Conducting Interview or Interview Process
Preparation
Under this an interview schedule or plan for the interview is prepared.
Conducting
The prepared plans and actions are implemented which is called conduction of the interview.
Evaluation
In this the information received from the interviewee or candidate is evaluated.
Types of Interview

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A. Preliminary Employment Interview – For collecting preliminary data.
B. Final Selection Interview – at the time of final selection.
C. Follow-up Placement Interview - to provide the selected applicant with permanent duties and
responsibilities
D. Exit Interview-at the time of leaving the organization.
2. Types Of Structured Interview - follows a standard list of questions or plan F. Unstructured
Interview - follows a list of questions which are not prepared in advance.
The Stress Interview - to evaluate the patience of an employee.
The Depth Interview - for higher level or managerial jobs.
Board Interview - one candidate is interviewed by a group of experts
Group Interview - , a group of candidates are interviewed at a time
Concept, Meaning and Nature of Human Resource Development (HRD)
Human Resource Development (HRD) is a process of developing skills, competencies, knowledge
and attitudes of people in an organization. The people become human resource only when they are
competent to perform organizational activities HRD imparts the required knowledge and skill in
them through effective arrangement of training and development programs.
Nature of HRD

well-integrated system

focuses on all round development of human resources

Importance of Human Resource Development (HRD)
1. HRD Develops Competent HR
2. HRD Creates Opportunity for Career Development
3. Increase in Employ Commitment
4. Gives Job Satisfaction
5. Change Planning & Management in an organization.
6. Opportunities for Training and Development
7. Performance Improvement.
Concept and Meaning of Training

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Training can be defined as an on-going process of teaching new employees the basic skills they
need to perform their task effectively and efficiently. Training is a short term skill development
campaign intended to impart the basic skills of work to middle and lower level employees. It
focuses on teaching operational skills to the technical persons.
Objectives of Training

he attitude Of Workers

Increase Productivity And Profit

Training Process or Steps Involved For Conducting Training

Techniques or Methods of Training

1. On-the-job Training (OJT)
OJT is the most commonly used method of employee training which is concerned with the
philosophy, "Learning by doing". OJT method is suitable for imparting operative or technical skills
to operative personnel.
Following methods may be used under on-the-job training:
Apprenticeship training
Jon instruction training
Program instruction
Coaching and counselling

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Internship
2. Off-the-job Training
Off-the-job training is another method of employee training which is concerned with the
arrangements organized away from organizational work station. It takes place outside the work
station and is mostly classroom base.
Class room lecturers Films - Simulation exercise - Program instruction.
Concept and Meaning of Motivation
The term "Motivation" is derived from the Latin word "Movire" meaning to move. Motivation
thus, is to move to do or not to do something. Motivation is one of the essential aspects of HRM
which is concerned with the process of inducing, inspiring, organizing and stimulating employees
to do the better job in organization. Motivation activates people for better job performance and
high productivity. Motivation is a step-by-step process that prompts an individual into action. The
three basic elements of motivation are: needs, drives and goals.
Techniques or Methods of Motivation

Behavioral Motivation - enhancing employee's behavior

nd Financial Benefits
me interest.

Importance of Motivation
Utilization of Human Resources
f Other Resources
o do a particular Work
or Changes in organizational environment.

-operation between Employees

Brings Organizational Effectiveness

Prepared By: Md. Saiful Islam, Lecturer, Dept. of Finance and Banking, University of Barishal
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Concept and Meaning of Job Satisfaction
Job satisfaction can be defined as an employee's attitude towards the job. It is not same as
motivation, rather it is concerned with the attitude and internal state of an individual regarding a
particular job. It is a pleasurable feeling that results from an employee's perception of achieving
the desired level of need or satisfaction
Effects of Job Satisfaction

Job satisfaction helps to reduce employee's absenteeism.

employee’s satisfaction.
er.

Factors Affecting Job Satisfaction

bout Job
nd Punishment

organization.
attitude.
ups or work teams [co-workers]

Concept and Meaning of Performance Appraisal

Performance appraisal is a process of identifying, measuring and managing employee's
performance in order to enhance organizational efficiency and effectiveness. Performance
appraisal systematically evaluates the personality and performance of each employee so that the
productivity can be measured in terms of efficiency and effectiveness. The primary purpose of
performance appraisal is to facilitate the orderly determination of an employee's worth in
comparison to his/her fellow employees and expected level of performance Importance of
performance appraisal in an organization:
s the work performance of their subordinates.

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 for better performance.

ograms being implemented in the

organization have been effective.
sal helps to prepare pay structure for each employee working in the
organization.
employees so that their future
capability is anticipated.
Performance Appraisal Process
f Performance Standards
cation of Standards to Employees

ith Standards
he Employee

Purposes and Uses of Performance Appraisal

ion

nd Development

Concept and Meaning of Reward Management

Reward means a thing given to any one because of his contribution to organization. Rewards and
incentives contribute to strategy implementation by shaping individual behavior in the
organization. Reward is defined as the total return given by an employer to an employee for
rendering his/her services towards the organizational objectives. This is the overall return from the
work.
Types of Rewards
nd Extrinsic Rewards

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Financial Rewards and Non-financial Rewards
Financial rewards means those direct and indirect payments that enhance an employee's wellbeing.
Direct payment consists of salary, wages, commissions, incentives, bonus, allowances etc. Indirect
payment include pensions, medical insurance, paid leaves, paid sick leaves, purchases, discounts
etc.
Non-financial rewards are those employee benefits that do not enhance an employee's financial
wellbeing. Preferred lunch hours, preferred office furnishing, parking spaces, impressive job title,
desired work assignments, , own secretary etc. are some of its examples.
Performance Based Rewards and Membership Based Rewards Performance based rewards are
such benefits which are provided on the basis of an employee's job performance ability.
Membership based rewards are those rewards that are paid on the basis of being a member of an
organization. It means, the basis of allocating rewards is employee's organizational membership.
Criteria for Distributing Rewards
b performance ability of an individual.

- those individuals who have served relatively for longer period

- individuals having special skills
Difficulty - the complexities of the job

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