Human Resource Management HRM is the management function that helps managers to recruit, select, train and develap members for an organization. It is concemed with the people dimensions in the organizational context. Human Resource Management is responsible for how people ara managed in the organizations.HRM OBJECTIVES ® To recruit, develop and retain people with the appropriate skills and attitudes required for present and future jobs ® To promote a policy of continuous learning and staff development = To manage employee relations ® To design, implement and manage remuneration, reward and appraisal schemes © To maintain and improve physical and mental well being of the workforceFUNCTIONS OF HUMAN RESOURCES # Human Resource Planning « Recruitment and Selection « Training and Development = Maintenance of Personnel Records » Performance Appraisal # Compensation Planning & Remuneration « Employee Relations - welfare, health and safety « Industrial Relations # Grievance and DisciplineManpower Planning/Human resource planning Human resource planning can be defined as the process of identifying tha number of people required by an organization in terms of quantity and quality. tis the process by which an organization ensures thal Ht has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing thase tasks that help the organization achieve its overall objectives.currently Sasaly + To meet the needs arising from business expansion, diversification, ete: « To meet talent gaps and improve the skill, knowledge, ability etc; « To provide control measures to ensure availability of necessary resources when required, «To estimate the cost of human resources;Process of HRP/MPisteps in HRP/MP Human resource planning can be defined as tha process af identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/orimary activity of human resource management, —1, Personnel requirement forecast :~ This is the very first step in HRP process. Here tha HAP department finds out department wise requirements of people for the company, The requirement consists of number of people required as weil as qualification they must possess. 2. Personnel supply ferecast:- in this step, HR department finds out how many people are actually available in the departments of the company Le. the number of people alnng with their qualification, 3. Comparison:- Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison a. No difference :- It is possible that personnel requirement = personnel supplied. In this case there is no difference, Hence no change is required, b. Yes, there is a difference |» There may be difference between supply and requirement. The difference maybe ] |. Personnel surplus Wi, Personnel shortage4. Personnel surplus :- When the supply of personnel is more than the requirement, we have personnel surplus. We require 100 people, bul have 125 people. That is we have a surplus of 25 people. Since extra employees increase expenditure of company the company must try to remove excess staff by methods of L Layotf fi, Termination iii, VRS/CRS §. Personnel shortage ‘= When supply is less than the requirement, we have personnel shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can pt methods like Overtime, Recruitment, Sub-contracting to oblain new'employee.Factors that affect Human Resource Planning Employment HAP is affected by the employment situation in a country. In countries where there is greater unamployment, there may be mora pressure on the government ta appoint more penple. For example, public sector enterprises are highly overstaffec in some countries, while few private enterprises are understaffed. Similarly, same companies may have a shortage of skilled labor, and they may have to appoint people fram ather companies. Technological changes in society Technolngy changes quickly, and new people having the required knowledge are required forthe company. In same cases, the company may retain existing employees. and teach them the new technology, and in some cases, the company has to dismiss existing people and appoint fresh people. Organizational changes q Changes take place within the organization from time to time. For example, a company may diversify into new products or cose down businesses in some areas, In such cases, a company may hire or dismiss people according to- the situation.Economic factors How much money is available for salaries, training, and equipment is the most immediate concem in human resource planning. However, exlemal economics plays an equally critical rate. For example in an economic recession some industries, may have io lay olf same staff This. in tum, makes the local economy even more difficult. Social factors Social factors may influence the organization's HA planning. There is a clear discrepancy of one social group. It's a good idea te build in ways of opening up naw opportunities Legal factors Employment law is the most significant sector of the legal system that affects human resource planning, and it changes all the time. HA managers must keep themselves up ta dala and have an employment law Specialist available to consult if negassary. Emplayment law changes must be reflected in company policy,Environmental factors Environmental factors might include where the construction site is localed about finding sulficient appropriate staff or changes to the environment that mean a need for more or fewer employees. Asimple exampie of environmental factors affecting human resource planning is the consideration of how the employees get to work safely during extreme weather: the Firm's plan may need to include the possibility of telecommuting ta keep everything going. Labor market ‘The labor market comprises people with skills and abilities that can be tapped when the need arises. Allhough in many 3rd countries with surplus labor, there is a shorlage at skilled people. We should fake measures lo make more skilled workers available in Lhe country, ‘When one talks about labor supply, the following deserve due consideration: the size, age. gender, and adiucational cormpesition af the population, the demand for goods and services in the country, the nature offproduction technology, and the employability of the people.RECRUITMENT According ta Edwin B. Flippo, "Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. * Recruitment the activity that links the employers and the job seekers. A process of finding and attracting capable applicants for employment. SELECTION According t Thomas Stone, "Selection is the process of differentiating between applicants in orderto identify and hire thase with a greater likelihood of success on tha jobs." Selection is the function performed by the management of choosing the ‘ight person for the right jab as per the organization's position requirement._» Create and maintain talent pool of prospective candidates «Increase the pool of job candidates at minimum cost » Evaluate effectiveness of various recruitment techniques and sources for job applicants and improve the selection process.Sources of recruitment: Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs Companies can adopt different methods of recruitment for selecting peaple in the company. These methods are 1. Internal sources 2. External sources Internal sources of recruitment :- Internal sources of recruitment refer to obtaining people for job from inside the company. There ate different methods of intemal recruitment1. Promotion :- Companies can give promotion to existing employees. This method of recruitment saves a lot of time, money and efforts because the company does not have to train the existing employee. Since the employee has already worked with the company. He/she |s familiar with the warking culture and working style, It is a method of encouraging efficient workers. 2. Departmental exam :- This method is used by government departments to selact employees for higher level posts. The advertisement is put up on the notice board of the department. Peopla who are interested must send their application to the HR department and appear for the exam. Successful candidates are given ‘the higher level jab, The method ensures proper selection and Impartiality.3. Transfer :- Many companies adopt transfer as a method af recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of peopie. 4, Retirement :- Many companios call back personnel who have already retirad from the organization, This is a temporary measure. The methed is beneficial because it gives a sense of pride to the retired when he Is called back and helps the organization to reduce recruitment selection and training cost.5. Internal advertisement :- In this method vacancies in a particular branch are advertised in the notice board. People who are interested are asked to apply for the jab. The mathod helps in obtaining people who are ready to shift to another branch of the same company and it is also beneficial to people who want to shift to another branch. 6. Employee recommendation :- In this method employees are asked to racommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the situationExtermal mathods/sources of recruitment :- Extemal sources of recruitment refer to methods of recruitment to obtain people from outside the company. These methods are 1, Management consultant :- Management consullant helps the company by providing them with managerial personnel, when the company is on the look out for entry level management trainees and middle level managers, They generally appreach management consultants. 2. Employment agencies :- Companies may give a contract to employment agencies that search, interview and obtain the required number of people. The method can be used to obtain lower level and middle level staff.3. Campus recruitment :- ‘When companies are in search of fresh graduates or new talent thay opt for campus recruitment. Companies approach colleges, management, technical institutes, make a presentation about the ‘company and the job and invite applications, Interested candidates who have applied are made to go through a series of selection test and interview before final selection. 4. Newspaper advertisement :- This is one of the oldest and most popular methads of recruitmant. Advertisements for the job are given in leading news papers; the details , of the job and salary are also mentioned. Candidates are given a contact address where their applications must be sent and are asked to send their applications within a spacified time limit. The method has maximum reach and most preferred among all other methods of recruitment.5. Internet advertisement :- With increasing importance to internet, companies and candidates have Started using the intemet as medium of advertisement and search mand mel for jobs. There are various job sites like naul elc, candidates can also post thelr profiles on these sites, This method is growing in popularity. 6. Walk in interview :- Another method of recruitment which is gaining imponance is the walk in interview method. An advertisement about the location and time of walk in interview is givan in the news paper. Candidates require to directly appearing for the interview and have to bring a copy of their CV. with them,