HRM PRELIMS REVIEWER
Topic 1 - HRM Personnel Administration
What is Human Resource Management?
• is the function within an organization
that focuses on recruitment of,
management of, and providing
direction for the PEOPLE who work
in the organization.
*Greatest asset of a company is the
people
• HRM can also be performed by line
managers.
• HRM is the organizational function
that deals with ISSUES related to
people such as compensation, hiring,
performance management,
organization development, safety,
wellness, benefits, employee
motivation, communication,
administration, and training.
IMPORTANCE (7)
1. To identify manpower needs
2. Selection of right person for the right
job
3. Appraisal of employees
4. Development of the skills of the
employee
*They cannot be stagnant
5. Need for incentives
6. Good human relationship
7. Conducive environment
SIX MAJOR FUNCTIONS OF HUMAN
RESOURCE MANAGEMENT:
1. Human resource planning,
Recruitment and selection.
2. Human resource development.
(Training)
3. Compensation and benefits.
*You are included in the payroll
even though you are training or on
probation
4. Safety and health.
*Everyone deserves safety including
contractual workers, on probation and etc.
5. Employee and labor relations.
6. Human resource research.
(Innovations)
*There’s no rule in the organizational chart.
They just need respective description
Topic 2- Staffing
Overview
• HRM is the management of various
activities that are designed to
enhance the effectiveness of the
manpower in an organisation in the
achievement of organisational goals.
*training, compensation and benefit,
motivation. (you will stay if you
have atleast the three)
• Human Resource Management
(HRM) is also a function of planning
for human resource needs and
recruitment, selection, development,
compensation and evaluation of
performance to fill those needs.
*recruitment doesn’t mean you are
hired right away because they have
selection process
Human Resource Planning
Human Resource Planning is the process of
determining future human resource needs
relative to an organisation’s strategic plan
and devising the steps necessary to meet
those needs.
1. Forecasting Manpower Demand
2. Forecasting Manpower Supply
3. Human Resource Actions
ADVANTAGES OF MANAGER
INVENTORY CHART
1. Clear Idea about staffing situation.
2. Clear indication on future supply of
managers
3. Reduces migration or resignations.
4. Identifies not performing employees
and to be trained or replacement.
5. Managers can be transferred from
one dept. to another department and
helps weak dept.'s.
DISADVANTAGES OF MANAGER
INVENTORY CHART
1. Doesn't show position to which one
can be promoted. Not necessarily fit
for other dept.(E.g. - Sales to
Purchase Dept.)
2. Data insufficient for Fair Assessment
of an individual
3. Updating chart Time Consuming and
requires a lot of effort.
4. Top Level Managers fear losing to
competent subordinates to other
organisational units.
STAFFING
• Staffing is defined as filling and
keeping filled, positions in the
organisation.
• Take into account internal factors of
the firm such as Personnel Policies,
Climate in Organisation, Appraisal
System.
For example with changes in
technology need for hiring workers
who can work with high technology
demands.
JOB ANALYSIS
• Job Analysis is often done through
interviews, direct observation or by
using a questionnaire that is
completed by the person current
holding the job and his immediate
supervisor.
• It forms the basis for Job Description
and Job Specifications.
Topic 3 – HRM Management Process
HR PROCESS (5)
A. Recruitment Process
B. Selection Process
C. Orientation Process
D. Training Process
E. Employee Grievances, Moral
and Motivation
RECRUITMENT PROCESS
1.Identifying the HR Requirement
2.Identifying possible sources of HR Supply
3.Communicating the Information
4.Receiving Application
 F. Recruitment Process
1. Identifying the HR Requirement
• Number of positions to be
filled
• Duties and responsibilities to
be performed
• Qualification and experience
required
2. Identifying possible sources of HR
Supply
Internal Sources
➢ Internal sources of
recruitment refer to hiring
employees within the
organization through –
• Promotions
• Transfers
• Former Employees
• Internal Advertisements (Job
Posting)
• Employee Referrals
External Sources
➢ External sources of
recruitment refer to hiring
employees outside the
organization through
Goals of Orientation Programs
• Direct Recruitment
• Employment Exchanges
• Employment Agencies
• Advertisements
• Professional Associations
• Campus Recruitment
• Word of Mouth
3. Communicating the Information
4. Receiving Application
G. Selection Process
Step 1. Screening of Applicants
Step 2. Preliminary Interview
Step 3. Employment Tests
a. Intelligence Tests
b. Aptitude Tests
c. Proficiency Tests
Step 4. Selection Interview
Step 5. Checking of References
Step 6. Medical Examination
Step 7. Final Selection/Hiring
H. Orientation Process
➢ Orientation is the process of
providing basic information about
the hospitality organization that must
be known by all staff members in
every department.
➢ Discussions about basic policies and
procedures help new staff members
learn about matters of personal
importance such as their employer's
expectations and job-related benefits
for which they qualify.
• It provides an overview of the
organization
• It indicates the new staff member's
role
• It explains policies, rules, and other
information
• It outlines specific expectations
• It provides details about employee
benefits
• It motivates new staff members
How should the job orientation process be
administered?
• Provide a tour of the workplace.
• Review company policies.
• Wrap up administrative details.
• Introduce the new employees) to co-
workers.
• Explain company history and values.
• Set up an office or workspace.
• Make time for on-the-job training
and mentoring.
I. Training Process
➢ The Training Process comprises of a
series of steps that needs to be
followed systematically to have an
efficient training programed. The
Training is a systematic activity
performed to modify the skills,
attitudes and the behavior of an
employee to perform a particular job.
Training Benefits
• Improved performance
• Reduced operating costs
• More satisfied guests
• Few operating problems
• Lower employee turnover rates
Learns
• Higher levels of work quality
• Easier to recruit new staff
• Greater profits
• More professional staff
J. Employee Grievances, Moral
and Motivation
➢ Grievance is a disagreement between
an employee and the emplover on the
terms or conditions of employment.
The causes for a grievance may
include, but are not limited to,
complaints concerning wages, hours
of work, working conditions,
performance evaluations, job
assignments or the interpretation or
application of a rule, regulation or
policy.
Causes of Grievances
1. Differing application and
interpretation of the collective
bargaining agreement (CBA).
2. Perceived unfair treatment of the
employee by the supervisor or
ineffective or inadequate
supervision.
3. Unfair labor practices of the
employers.
4. Violation by management of the
labor agreement or violation of the
law concerning the workers.
5. Lack of a clear-cut company labor
policy.
TOPIC 4 – Trends in compensation
New Trends in Compensation Management
The following are the new trends in
compensation management
➢ Group Mediclaim /Insurance Scheme
➢ Personal Accident Insurance Scheme
➢ Company Leased Accommodation
➢ Recreation/ ATM facilities
Corporate Credit Card
➢ Club memberships
New Trends in Compensation Management
(Contd.)
• Cellular Phone/Laptop
• Personal Health Care (Regular
medical check-ups)
 • Loans
• Educational Benefits (For Higher
studies)
• Regular Get together and other
cultural programs
• Wedding Day/Birthday Gift
• Employee Referral Scheme
• Maternity Leave
• Paternity Leave
New Trends in Compensation Management
(Contd.)
A. Work-life Balance
B. Pay Transperancy
C. Broad banding
D. Variable Pay (Incentive Pay)
E. Flexible Benefits
A. Work-life Balance
• Flexi-time
• Compressed workweek
• › Job sharing
• Telecommuting
• Part-time work
• Modified retirement
• Employee Assistance Programme
• Child Care Assistance
• Elder Care Assistance
B. Pay Transperancy
➢ Employees want transparency in pay
system.
➢ Now a days some organisations are
using transparent pay system.
➢ Pay transparency influences
employees in
• Fostering trust in management
• Increasing employee engagement
• Encouraging discretionary efforts
• Reducing turnover
• Creating competitive advantage
C. Broad banding
➢ Consolidating salary grades and
ranges into just a few wide levels or
"bands," each of which contains a
relatively wide range of jobs and
salary levels.
D. Variable Pay (Incentive Pay)
• Tying pay to some measure of
individual, group, or
organizational performance.
• Piecework incentive
• Pay-for-performance
• Pay-for -person
• Merit pay
• Bonuses
• Sales incentives
• Profit sharing
• Gain sharing
• Employee Stock Ownership
Plan
E. Flexible Benefits
➢ Flexible benefits allow employees to
pick benefits that meet their needs.
The idea is to allow each employee
to choose a benefit package that is
individually tailored to his or her
own needs and situation.