-Human Resource Management is the process of planning, organizing,
directing and controlling of the acquisition, utilization and maintenance
(preservation) of human (people) resource in organizations in order to
achieve objectives.
 Nature of HRM
Inherent Part of Management: It is inherent in the process of
management performed by all the managers throughout the organization.
Pervasive Function: It is performed by all managers at various levels in the
organization; not left to someone else.
Basic to all Functional Areas : permeates all the functional area of
management such as production, financial, and marketing management.
People Centered: It is concerned with all categories of personnel from top
to the bottom of the organization.
Personnel Activities or Functions: It involves in planning, employment,
placement, training, appraisal and compensation.
Continuous Process: It must be performed continuously.
Based on Human Relations: Human Resource Management is concerned
with the motivation of human resources in the organization.
The objective of HR Planning is to ensure that the organization has the
right types of persons at the right time at the right place.
Design of Organization and Job: This is the task of laying down
organization structure, authority, relationship and responsibilities. Job
specification identifies the attributes of persons who will be most suitable
for each job which is defined by job description.
Selection and Staffing: This is the process of recruitment and selection of
staff. Training and Development: This involves an organized attempt to
find out training needs of the individuals to meet the knowledge and skill
which is needed not only to perform current job but also to fulfill the
future needs of the organization. Organizational Development: This is an
important aspect whereby “Synergetic effect” is generated in an
organization i.e. healthy interpersonal and inter-group relationship within
the organization. Compensation and Benefits: This is the area of wages
and salaries administration where wages and compensations are fixed
scientifically to meet fairness and equity criteria. Employee Assistance:
Each employee is unique in character, personality, expectation and
temperament. Union- Labour Relations: Healthy Industrial and Labour
relations are very important for enhancing peace and productivity in an
organization.
Objectives of HRM: Societal Objectives: seek to ensure that the
organization becomes socially responsible to the needs and challenges of
the society while minimizing the negative impact of such demands upon
the organization. Organizational Objectives
Functional Objectives: is to maintain the department’s contribution at a
level appropriate to the organization’s needs. Personnel Objectives: it is to
assist employees in achieving their personal goals, at least as far as these
goals enhance the individual’s contribution to the organization.
HR roles 1. Administrative Role of HR 2. Operational and Employee
Advocate Role for HR 3. Strategic Role for HR: 4. Change agents:
Strategic HRM is an approach that defines how the organization’s goals
will be achieved through people by means of HR strategies and integrated
HR policies and practices.
Strategic HRM is underpinned by three concepts The resource-based
view: Strategic fit: Strategic flexibility:
SHRM approaches The Best-Practice Approach: The Best-Fit Approach:
Trends Shaping Human Resource Management
-Globalization and Competition Trends; Globalization refers to the
tendency of firms to extend their sales, ownership, and/or manufacturing
to new markets abroad.
-Indebtedness (Leverage) and Deregulation
-Technological Trends
-Trends in the Nature of Work; Changes in How We Work; High-Tech
Jobs, Service Jobs, Knowledge Work and Human Capital
-Workforce and Demographic Trends; RETIREES: Many human resource
professionals call the aging workforce the biggest demographic trend
affecting employers. NONTRADITIONAL WORKERS: At the same time,
there has been a shift to nontraditional workers. Nontraditional workers
include those who hold multiple jobs, or who are contingent or part-time
workers, or who are working in alternative work arrangements (such as a
mother daughter team sharing one clerical job)
-Economic Challenges and Trends
HRP is the process of systematically reviewing human resource
requirements to ensure that the required number of employees with the
required skills are available when and where they are needed
Importance of HRP 1 Uncertainty Reduction 2 Objectives achievement 3.
Environmental Adaptation 4. Effective and Efficient Utilization of Human
Resources 5. Human Resource Development 6. Control
Methods to Predict Employment Needs, 1. Statistical approaches, Trend
analysis: Ratio analysis: Regression analysis/Scatter plot
2.Judgmental methods, Qualitative analysis-
Barriers while formulating an HRP. 1)HR practitioners are perceived as
experts in handling personnel matters but are not experts in managing
business. 2)People question the importance or making HR practices future
oriented and the role assigned to HR practitioners in formulation of
organizational strategies. 3) HR information often is incompatible with
other information used in strategy formulation. 4) Conflict may exist
between short term and long-term HR needs. 5) There is conflict between
quantitative and qualitative approaches to HRP. 6) Non-involvement of
operating managers renders HRP ineffective.
Job analysis (JA) is a purposeful and systematic process for investigation of
job content, the physical circumstances in which the job is carried out, and
the qualifications needed to carry out job responsibilities. It refers to a
scientific and systematic analysis of a job in order to obtain all pertinent
facts about a given job.
Task: refers to a distinct work activity with an identifiable beginning and
end Duty refers to a related sequence of tasks Position: refers to a
collection of tasks & duties regularly assigned to one person. Job: refers to
a group of positions involving some duties, responsibilities, knowledge &
skills. Job family: implies jobs of a similar nature. Job classification: refers
to grouping of jobs into certain categories on some specified basis like
nature of work performed or the level of pay. Occupation: implies a group
of jobs which are similar as to the type of work & which contain common
characteristics.
Job analysis is performed on three occasions.
1. When the organization is founded & a job analysis program is
initiated for the first time.
2. When new jobs are created.
3. When jobs are changed significantly as a result of new technologies,
methods, procedures, or systems.
Job Description is a written statement of what the jobholder does. It
describes job title, duties and responsibilities, authority, accountabilities
and job relationships.
The key difference between a job description and a job specification is
that
a job description expands on the characteristics of the job, while a job
specification expands on the characteristics of the person doing the job
job specification states personal characteristics and qualifications needed
to perform the job. It identifies knowledge, skills and abilities needed to do
the job effectively.
Job Evaluation specifies the relative value of each job in the organization.
It ranks all jobs in a hierarchy. Benefits of job evaluation: It serves as the
basis for fixing a fair and equitable salary and wage structure.
What are Job Performance Standards? They are the statement of
attainable as well as acceptable levels of job achievement. They indicate
quality and quantity of job performance.
Steps in job analysis 1. Examine the total organization and the fit of each
job 2. Determine how the job analysis information will be used 3. Select
jobs to be analyzed. These would be representative job positions especially
if there are too many jobs to be analyzed 4. Collect data by using
acceptable job analysis techniques 5: prepare job descriptions 6: prepare
job specification 7: Use the information in step 1 – 6 purpose it was meant
to - recruitment, selection and training, performance evaluation,
compensation and benefits etc
There are four basic methods of data collection: Observation; Interview;
Questionnaire; Job incumbent diaries or logs
Job Design Process of structuring work and designating specific work
activities of an individual or group of individuals to achieve certain
organizational objectives.
Job design process are divided into, Specification of individual tasks –
Specification of the method of performing each task – Combination of
individual tasks into specific jobs to be assigned to individuals
Approaches of Job Design
1. Job rotation-This is the movement of employees from one task to
another to reduce monotony by increasing variety.
2. Job enlargement-This means combining previously fragmented tasks
into one job, again to increase the variety and meaning of repetitive
work.
3. Job enrichment-This goes beyond job enlargement to add greater
autonomy and responsibility to a job and is based on the job
characteristics approach.
4. Self-managing teams (autonomous work groups)-These are self-
regulating teams who work largely without direct supervision.
Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.
Sources of Recruitment:
(a) Internal Sources: This refers to the recruitment from within the
company. The various internal sources are promotion, transfer, past
employees and internal advertisements. (b) External Sources: External
sources refers to the practice of getting suitable persons from outside.
Purpose of Selection The purpose of selection is to pick up the most
suitable persons who would match the requirements of the job and the
organization.
Selection Process involves in:
1. Criteria development 2. Application and résumé review. 3.
Interviewing. 4.Test administration.
Placement is the assignment or reassignment of an employee to a new
job. Most placement decisions are made by line managers.
There are three types of Placement decisions: promotions, transfers and
demotions.
A promotion occurs when an employee is moved from a job to another
position that is higher in pay, responsibility or organizational level.
Transfers occur when the employee is moved from one job to another
position that is relatively equal in pay, responsibility, or organizational
level. Demotions occur when an employee is moved from one job to
another position that is lower in pay, responsibility or organizational level.
Socialization is the process by which Employees learn to adopt the norms,
values, attitudes and behaviors accepted and practiced by the ongoing
System.
A typical socialization process includes three phases:
1. Anticipatory socialization: This stage occurs before new hires join
the organization.
2. Encounter: When new employees begin a new job, they start to
learn about job tasks and receive training.
3. Settling in: New employees begin to feel comfortable with their job
demands and social relationships.
Training is short term, task oriented and targeted on achieving a change
of attitude, skills and knowledge in a specific area. It is usually job related.
Education is a lifetime investment. It tends to be initiated by a person in
the area of his/her interest Development is a long-term investment in
human resources.
Training Process
 Conducting needs assessment: gap identification
 Planning and carrying out the training
 Evaluating the training
Training Approaches
On-the-Job Techniques; On-the-job training
Off-the-Job Techniques; Off-the-job training
Three Levels of Training Evaluation
 Immediate Feedback; Survey or interview directly after training
 Post-Training Test; Trainee applying learned tasks in workplace?
 Post-Training Appraisals; Conducted by immediate supervisors of
trainees
HR Development is more career-orientated than job-oriented and is
concerned with the longer-term development and potential of the
individual.
Challenges in HRD:
– Changing workforce demographics -Competing in global economy -
Eliminating the skills gap -Need for lifelong learning -Need for
organizational learning
A career is a pattern of work-related experiences that span the course of a
person’s life. Career goals are the future positions one strives to reach as
part of a career. These goals serve as benchmarks along one’s career path.
Career Path: lines of advancement in an occupational field within an
organization.
Empowerment - giving employees authority and responsibility to make
decisions about their work without traditional managerial approval and
control
Benefits of Empowerment
– All employees view themselves as ‘owners’ of the business
– Improved productivity
– Creativity & Innovation
– Customer-focus
– Faster decision-making
– Organizational learning
– Making full use of Human resources-
Performance Appraisal is the specific and formal evaluation of an
employee conducted to determine the degree to which the employee is
performing his or her job effectively. Performance management is the
general set of activities carried out by the organization to change
(improve) employee performance.
Problems in Performance Rating
 Halo Effect: rating the employee high even if the employee doesn’t
deserve. (high level of positivity).
 A Horns Error occurs when the manager downgrades other aspects
of an employee’s performance because of a single performance
dimension.
 Stereotypes – personal bias -Overweight negative information -Lack
of sufficient observation -Memory: primacy / recency -Leniency -
Central tendency
 Lack of objectivity -Ability to write
Job evaluation is a Process of systematically determining the relative
worth of jobs to create a job structure for the organization.