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HUMAN RESOURCE MANAGEMENT UNIT-I

INTRODUCTION & MEANING:

 Before we define HRM, it seems pertinent to first define the term ‘human resources’.
 In common parlance, human resources means the people.
 However, different management experts have defined human resources differently.
 For example, Michael J. Jucius has defined human resources as “a whole consisting of inter-
related, inter-dependent and interacting physiological, psychological, sociological and ethical
components”.
 According to Leon C. Megginson “From the national point of view human resources are
knowledge, skills, creative abilities, talents, and attitudes obtained in the population; whereas
from the view-point of the individual enterprise, they represent the total of the inherent
abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its
employees”.
 Sumantra Ghosal considers human resources as human capital.
 He classifies human capital into three categories-intellectual capitals, social capital and
emotional capital.
 Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive
complexity, and learning capacity.
 Social capital is made up of network of relationships, sociability, and trustworthiness
Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability, and
resilience.
 Now it is clear from above definitions that human resources refer to the qualitative and
quantitative aspects of employees working in an organisation.
 In simple words, HRM is a process of making the efficient and effective use of human
resources so that the set goals are achieved.

CONCEPT OF HUMAN RESOURCE PLANNING:


 Human resource is the most important asset of an organisation.
 Human resources planning are the important managerial function.
 It ensures the right type of people, in the right number, at the right time and place, who are
trained and motivated to do the right kind of work at the right time, there is generally a
shortage of suitable persons.
 The enterprise will estimate its manpower requirements and then find out the sources from
which the needs will be met.
 If required manpower is not available then the work will suffer.
 Developing countries are suffering from the shortage of trained managers.
 Job opportunities are available in these countries but properly trained personnel are not
available.
 These countries try to import trained skill from other countries.
 In order to cope-up human resource requirements, an enterprise will have to plan in advance
its needs and the sources.
 The terms human resource planning and manpower planning are generally used
interchangeably.
 Human resource planning is not a substitute for manpower planning.
 Rather the latter is a part of the former i.e., manpower planning is integrated with human
resource planning.

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DEFINITIONS:

1. According to Edwin B. Geisler:


Manpower planning is, “the process by which a firm ensures that it has the right number of
people and the right kind of people, at the right places, at the right time, doing things for
which they are economically mast useful”.
2. According to Bruce P. Coleman:
Manpower Planning is, “the process of determining manpower requirements in order to carry
out the integrated plan of the organization.
3. According to Leon C. Megginson:
Human resource planning is “an integrated approach to performing the planning aspect of the
personal function in order to have a sufficient supply of adequately developed and excepted
people to perform the duties and task required to meet organizational objective and satisfy the
individual needs and goals of organizational members”.

FEATURES/CHARACTERISTICS/OBJECTIVES:

 From the study of various definitions, the following features of human resource planning can
be derived:
1. Well Defined Objectives:
 Enterprise’s objectives and goals in its strategic planning and operating planning may form
the objectives of human resource planning.
 Human resource needs are planned on the basis of company’s goals.
 Besides, human resource planning has its own objectives like developing human resources,
updating technical expertise, career planning of individual executives and people, ensuring
better commitment of people and so on.
2. Determining Human Resource Reeds:
 Human resource plan must incorporate the human resource needs of the enterprise.
 The thinking will have to be done in advance so that the persons are available at a time when
they are required.
 For this purpose, an enterprise will have to undertake recruiting, selecting and training
process also.
3. Keeping Manpower Inventory:
 It includes the inventory of present manpower in the organisation.
 The executive should know the persons who will be available to him for undertaking higher
responsibilities in the near future.
4. Adjusting Demand and Supply:
 Manpower needs have to be planned well in advance as suitable persons are available in
future.
 If sufficient persons will not be available in future then efforts should be .made to start
recruitment process well in advance.
 The demand and supply of personnel should be planned in advance.
5. Creating Proper Work Environment:
 Besides estimating and employing personnel, human resource planning also ensures that
working conditions are created.
 Employees should like to work in the organisation and they should get proper job satisfaction.

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PROCESS OF HUMAN RESOURCE PLANNING:

 Human resource planning is a process through which the right candidate for the right job is
ensured.
 For conducting any process, the foremost essential task is to develop the organizational
objective to be achieved through conducting the said process.
 The Process of Human Resource Planning are:
1. Analysing the corporate and unit level strategies
2. Demand forecasting of the overall human resource requirement
3. Supply forecasting
4. Estimating the net human resource requirement
5. Action plan for redeployment, redundancy/retrenchment
6. Forecast future supply from all sources
7. Modify the organizational plan strategy
1. Analysing the corporate and unit level strategies:
 Corporate and unit level strategies have an influence on human resource planning.
 Corporate level strategies are expansion, diversification, mergers, acquisition and joint
ventures.
 Implementation of these strategies demands for additional human resource.
 In opposite, implementation of turnaround, divestment and other retrenchment strategies
result in reduction of existing human resources.
 Unit level strategies like low-cost leadership demands for reduction of staff cost per unit of
output through staff reduction.
 Thus, HR manager has to first of all understand type of strategies that company is going to
implement as it affects directly the HRP.
2. Demand Forecasting of the overall Human Resource Planning:
 Demand forecasting means forecasting the quality and quantity of human resource after
implementing the above discussed strategies.
 For that existing job design and job analysis may thoroughly reviewed keeping in view the
future capabilities, skills and knowledge of present employees as they may also contribute to
the new implemented strategies.
 Further the job should be reanalysed and redesigned keeping view the strategy to be
implemented for prospective and present employees.
3. Supply forecasting:
 The first step of forecasting the future supply of human resource is to obtain data and
information about the present human resource inventory.
 Information about existing human resources can be collected by department-wise, age-wise,
gender-wise, designation-wise, skill-wise, payroll-wise, etc.
4. Estimating the Net Human Resource Requirement:
 Net human resource requirement is determined on the basis of overall human resource
requirement at future date and supply forecast for that day.
 The difference between overall human resource requirement and future supply of human
resource is to be found out.
 This difference is the net human resource requirements.
5. Action plan for redeployment, redundancy/retrenchment:
 If surplus is estimated means future supply of human resource are more than overall human
resource requirements, organization has to make a plan for redeployment or
retrenchment/redundancy.
 If there is deficit in one department and surplus in another department then employees can be
redeployed in department where deficit is occurred.
 Redeployment is one of the forms of transfer.

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 But if deficit is not estimated in any department and surplus is estimated for entire
organization, the organization, in consultation with trade union, has to plan for redundancy or
retrenchment.
 Redeployment Programmes are:
Outplacement: It is concerned with the retraining to the prospective displaced employees so
that they can be redeployed elsewhere in the same organization.
Employment in Sister Organization: Surplus employees are offered employment in sister
organization if there is any vacancy in sister organization.
Employment in other organization:HR manager contact other similar organization to
redeploy surplus employees if vacancy is available is there.
 Redundancy/ Retrenchment Programmes are:
Reduced Work Hours
Work Sharing: Two employees work half time job.
Layoffs: It may be temporary or permanent. Temporary layoff means stop in working of firm
due to machine breakage, power facilities, etc. Permanent layoff means shutdown or
liquidation of firm.
Leave of Absence without pay: To make an employee to be remain absent at work and not
to pay wage of that particular day.
Voluntary Retirement or Early Retirement:VRS system introduced by government of
India. Employees who opt for VRS get some additional benefits over normal benefits.
It is also known as “Golden Handshake”.
Compulsory Retirement: Discharge the surplus employees forcefully. Only normal
retirement benefits are given. It is known as “Iron Handshake”.
6. Forecast Future Supply from all the sources:
 If deficit is estimated in any department and in the entire organization, the management has to
make plan for employing the candidates to fill the deficit/ vacancy.
 For that management can for various action plans like, outsourcing, recruitment, etc.
 Outsourcing Plan: Outsourcing means employment function carried out by other organization
and not by the organization which actually requires human resources.
 Recruitment and Selection Plan: Recruitment is the process of searching for prospective
employees and stimulation them to apply for the job. Selection means finding out most
suitable candidates for the job out of total candidate attracted through recruitment.
 Training & Development Plan: It is the process of imparting skill and knowledge to the
employees of an organization.
 Productivity Plan: the productivity plan includes the maximization of productivity or
minimisation of labour cost per unit of output through technological change, improving
methods, procedures or system.
7. Modify the organizational strategy:
 If the future supply of human resource from all the external sources is estimated to be
inadequate or less than the requirement, the HR manager has to suggest to the management to
alter or modify the organizational strategy.

CONCEPT OF JOB ANALYSIS:

 Procurement is the first operative function of HRM, which can be sub-divided into various
sub-functions like human resource planning, recruitment, selection, etc.
 Management should determine the kind of person and number of persons required to be
employed.
 The organization should find out the right man for the right job at the right time.
 The knowledge of job is essential to perform all these functions.

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JOB TERMINOLOGY:
 Knowledge of certain job terminology is highly required to understand the concept of job
analysis.
 So, it is desirable to define the term related to job analysis like task, position, occupation, job
analysis, job description, job specification and job classification.
1. TASK: A definite piece of work that is assigned to employees to produce definite outcome.
2. POSITION: A position is a group of similar tasks & responsibilities assigned to one
individual.
3. JOB: A job may be defined as a group of positions involving some duties, responsibilities,
knowledge and skills.
4. OCCUPATION: An occupation is group of jobs that are similar as to the kind of work and
are found throughout an industry or the entire country.
5. JOB ANALYSIS: It refers to the process of collecting information about a job as well as job
holder.
6. JOB DESCRIPTION: Job description is prepared on the basis of data collected through job
analysis.
 Job description describes the job.
 It is a description of the activities and duties to be performed in a job, the relationship of the
job with other jobs, the equipment and tools involved, the nature of supervision, working
conditions and hazards of the job and so on.
7. JOB SPECIFICATION: While Job description focuses on the job, job specification focuses
on the person i.e., the job holder.
 Job specification is a statement of the minimum levels of qualification, skill, physical and
other abilities, experience, judgement and attributes required for performing job effectively.
 In other words, it is a statement of the minimum acceptable qualifications that an incumbent
must possess to perform a given job.
 It sets forth the knowledge, skills and abilities required to do the job effectively.
 Job specification specifies the physical, psychological, personal, social and behavioural
characteristics of the job holders.
8. JOB CLASSIFICATION: A job classification is “a grouping of jobs on some specified
basis such as the kind work or pay.” For example, a clerk, a teacher, an engineers, etc.

JOB ANALYSIS:
 Job analysis refers to the process of collecting information about a job.
 In other words, it refers to the anatomy of the job.
 Job analysis is performed upon on-going jobs only.
 It contains job contents.
 For example, what are the duties of a supervisor, grade II, what minimal knowledge, skills
and abilities are necessary to be able to adequately perform this job?
 How do the requirements for a supervisor, grade II, compare with those for a supervisor,
grade I?
 These are the questions that job analysis answers.

DEFINITIONS:

1. According to Jones and Decothis “Job analysis is the process of getting information about
jobs: specially, what the worker does; how he gets it done; why he does it; skill, education
and training required; relationship to other jobs, physical demands; environmental
conditions”.

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2. Edwin B. Flippo has defined job analysis as the process of studying and collecting
information relating to the operations and responsibilities of a specific job. The immediate
products of this analysis are job descriptions and job specifications”.
3. In the opinion of Herbert G. Hereman III, et. al., “A job is a collection of tasks that can be
performed by a single employee to contribute to the production of some product or service
provided by the organisation. Each job has certain ability requirements (as well as certain
rewards) associated with it. Job analysis is the process used to identify these requirements”.

PROCESS:
 Job analysis is as useful is not so easy to make. In fact, it involves a process.
 Though there is no fool-proof process of making job analysis, following are the main steps
involved in job analysis:
1. Strategies:
 The strategies of the company are the basis for any organizational activity including job
analysis.
 If the strategy implementation needs additional employees having different innovative skills
then it should be involved in job analysis.
2. Collection of background information:
 Background information consists of organization charts, class specification and existing job
descriptions.
 Organization chart show the relation of one job with another job.
 Class specification describes the general requirements of the class of the job to which the
particular job belongs.
 The existing job description provides a good starting point for job analysis.
3. Selection of representative position to be analysed:
 It would be too difficult and too time consuming to analyse all the jobs.
 So, the job analyst has to select some of the representative position in order to analyse them.
4. Collection of job analysis data:
 This step involves actually analysing a job by collecting data on features of job, required
employees behaviour and human requirement.
5. Developing a job description:
 This step involve describe the content of the job in terms of duties, responsibilities, functions,
operations, etc.
 The job holder is expected to discharge the duties, responsibilities, functions, operations, etc,
listed in job description.

6. Developing a job specification:


 This step involves conversion of the job description into job specification.
 Job specification or job requirement involve personal qualities, skills, traits, skill, knowledge,
etc, required to do specific job.

7. Developing employee specification:


 This is the final step which involves matching job description with job specification of
employee.

CONTENTS OF JOB DESCRIPTION:

 Job description document contains the following information:


1. Job Title:
 A suitable title to the job is given that suggests the nature of the job, required skills and other
distinctive features of the job.
 For example accounts clerk, record keeper, lathe machine operator, computer programmer,
system analyst etc.

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2. Functions:
 The functions of the jobs are clearly and precisely stated.
 For example account clerk’s functions include maintaining accounts books, ledgers etc.
3. Duties and Responsibilities:
 The duties and responsibilities of the jobholder are classified into primary and secondary and
the time taken for performance of the job should be mentioned.
4. Nature of Supervision:
 The degree of supervision needed should be prescribed.
 Reporting authority should be mentioned.
 Certain jobs require close supervision while the jobs at higher level require less supervision.
 Some managerial jobs require no supervision but others do require.
 It should be clearly mentioned.
5. Place of Job:
 Place means the place where job is to be performed by the jobholder i.e., the department,
section, shop or office etc.
6. Tools, Implements, Machines:
 The performance of certain jobs require tools and implements, some require machines e.g.
lathe machine, computer etc.
 All these details are to be included in the job description.
 This will disclose the nature of the job and the complications involved in it which enable for
planning training programme.
7. Environment at Workplace:
 The environments at workplace, the related hazards, possibility of accidents are to be
mentioned so that it will help in evaluating the job.
8. Future Prospects:
 Anyone who is working on any job wants to be promoted after some period of time.
 It is, therefore, pertinent for the job analyst to mention the relationship, vertical and horizontal
both of the job.
 It will make the jobholder aware of his future growth by way of promotion.
 Job description is an important document which determines wages and salary and the future
promotional avenues of the employees working in an organisation, hence it should be flexible,
and described in such a manner that it should cover complete information in respect of the job
in clear and understandable language.

CONTENT OF JOB SPECIFICATION:

 Content of Job specification is classified into four categories and they are:
1. Physical Specification:
 Physical specification involves physical fitness (height, weight, chest, vision, hearing, ability
to lift weight) which is crucial aspect for good performance.
 Hence, body structure, physical ability and other aspects of health and fitness is a must in
order to perform well in the organization.
2. Required Education:
 Required level of education for each post that an incumbent is supposed to hold is listed in job
specification statement.
 It varies from job to job.
 It also helps to determine the level or category of job in terms of rank.
3. Appearance:
 Appearance refers to an outlook of an employee, which must be attractive and good looking.
 The cleanliness and neatness of an individual shows his/her appearance.
4. Mental specification:
 The employee must be mentally fit to perform the desired task.
 If not, the problems may arise at the work floor.

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 Mental fitness is associated with the ability of decision making, interpretation of data, ability
to plan, judgement, ability to concentrate, etc.

5. Emotional and Social specification:


 These are the more important for the post of managers, supervisors, foremen, etc.
 These include emotional stability, flexibility, social adaptability in human relationship, etc.

CONCEPT & MEANING OF JOB DESIGN:

 Job design means to decide the content of job.


 It fixes the duties and responsibilities of the job, the method of doing the job and the
relationship between job holder with his colleagues, superiors and subordinates.
 Two important goals of the job design are:
1. To meet the organizational requirements such as higher productivity, operational efficiency,
quality of product/services, etc.
2. To satisfy the need of individual employees like interests, challenges, achievements or
accomplishments, etc.

FACTORS:

1. Proper scope of job:


 The scope of the job should be proper.
 If the scope is narrow (less), then the job will not be challenging.
 It will not give an opportunity for development.
 The manager will not get satisfaction after completing an easy job.
 If the scope of the job is very wide, then the manager will not be able to handle it properly.
 This will cause stress, frustration and loss of control.
 Therefore, scope of the job must be balanced and proper.
2. Full-time challenge of the job:
 The job should be so challenging that it takes up the full-time and effort of the manager.
 So, the service of the manager must be fully utilised.
 If not, the manager will have a lot of free time.
 He will use this free time to interfere in the work of his subordinates.
 This will cause problems and conflicts because subordinates do not like unnecessary
interference from their superiors.
3. Managerial skills:
 The skills of the manager should be considered before designing his job.
 All managers do not have equal skills.
 So, job should be designed after considering the skills of the manager.
 So, a manager having high level of skill should be given very challenging jobs while a
manager having a low level of skill should be given fewer challenging jobs.
 Jobs must be made flexible so that it can be changed according to the skills of the manager.
4. Organization’s requirement:
 Jobs must be designed according to the requirements of the organization.
 We cannot use the same job design for all organization.
5. Individual likes & dislikes:
 People have different likes & dislikes.
 Some people like to work alone while some people prefer to work in groups.
 Some people want to do only planning and decision making while other people like to
implement these plans and decisions.
 So, individual likes & dislikes must be considered while designing the job.
6. Organizational structure:
 Organizational structure also affects the job design.

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 Individual jobs must fit into the organization’s structure.

7. Technology:
 The level of technology used by the organization also affects the job design.
 An organization having a high level of technology will have different job designs compared
to an organization having a low level of technology.

METHODS:

 Job design is critical in understanding the various factors of a job like duties, techniques
required, hierarchies, skill-sets required, motivation of employees etc. There are several ways
in which the requirements of a job can be identified.

 The main job design methods are mentioned as below:

Job Rotatoon:

 A job design technique in which employees are moved between two or more jobs in a planned
manner.
 The objective is to expose the employees to different experiences and wider variety of skills
to enhance job satisfaction and to cross-train them.
 Job rotation in the workplace is a system where employees work at several jobs in a business,
performing each job for a relatively short period of time.
 Job rotations allow employees to learn about different types of work, giving individual
employees a better sense of what their colleagues do and a better overall understanding of the
entire organization.
 The advantages of job rotation are- it relieves the employees from the boredom and monotony
of doing a single task.
 The organization also stands to benefit as the worker become competent in several jobs rather
than only one.
1. Job Simplification:
 The job simplification means breaking the job into relatively easier sub-parts with the
intention to enhance the individual’s productivity by minimizing the physical and mental
efforts required to perform a complex job.
 Work simplification is done so that less-trained and the less paid employees can do these jobs.
 This method has limitations.
 Over simplification results in boredom which lead in turn to errors.

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2. Job Enlargement:
 It is the process of increasing the scope of a job by adding more tasks to it.
 Job enlargement involves expanding the numbers of task or duties assigned to a given job.
 Job enlargement therefore, naturally is opposite to work simplification.
 Adding more tasks/duties to a job does not mean that new skill and abilities are needed to
perform it.
 There is only a horizontal expansion.
 Job enlargement reduces monotony and boredom.
 It helps to increase interest in work and efficiency.
3. Job Enrichment:
 Job enrichment means adding more tasks and responsibilities vertically which are reserved for
higher positions.
 Thus additional task does not match with existing task.
 For performing these tasks additional skill is required to be improved.
 There is a greater scope for personal achievement and recognition, more challenging and
responsible work and more opportunity for individual advancement.
 The limitations are, if the employee is lazy or does not give due attention to his/her job, job
enrichment will not have the desired outcomes.

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