Human Resource Management (HRM) - is the function within an organization that focuses on

recruitment of, management of, and providing direction for the PEOPLE who work in the
organization.

Human Resource Management - can also be performed by line manager.

Human Resource Management - 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

 To identify manpower needs

 Selection of right person for the right job
 Appraisal of employees
 Development of the skills of the employee
 Need for incentives
 Good human relationship
 Conducive environment

SIX MAJOR FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:

1. Human resource planning, Recruitment and selection.

2. Human resource development.

3. Compensation and benefits.

4. Safety and health.

5. Employee and labor relations.

6. Human resource research.

Human Resource Management - is the management of various activities that are designed to
enhance the effectiveness of the manpower in an organization in the achievement of
organizational goals.

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.

Human Resource Planning - is the process of determining future human resource needs
relative to an organization’s strategic plan and devising the steps necessary to meet those
needs.
Parts of HRM

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 organizational units.

Staffing - is defined as filling and keeping filled, positions in the organization.

Take into account internal factors of the firm such as Personnel Policies, Climate in
Organization, Appraisal System.

For example with changes in technology need for hiring workers who can work with high
technology demands.

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.
Job Description
(Emphasis is on the job)
 Objectives of the Job
 Work to be performed
 Skills needed
 Responsibilities involved
 Relationship of the job
to other jobs
 Working conditions
Job Specification
(Emphasis is on the individual)
• Minimum qualification required
• Listing of skills, education and
work experience needed to
perform the
job.
HR process
• Recruitment Process
• Selection Process
• Orientation Process
• Training Process
• Employee Grievances, Moral
and Motivation
Recruitment Process
 Identifying the HR Requirement
 Identifying possible sources of
HR Supply
 Communicating the Information
 Receiving Application
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 −
• Direct Recruitment
• Employment Exchanges
• Employment Agencies
• Advertisements
• Professional Associations
• Campus Recruitment
• Word of Mouth
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
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.
Goals of Orientation Programs
• 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 employee(s) to
co- workers.
• Explain company history and values.
• Set up an office or workspace.
• Make time for on-the-job training
and mentoring.
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
• Fewer operating problems
• Lower employee turnover rates
• Higher levels of work quality
• Easier to recruit new staff
• Greater
profits More
professional staff
Grievance - is a disagreement between an
employee and the employer 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 Referral Scheme
employee by the supervisor or ineffective or
inadequate supervision.  Maternity Leave

3. Unfair labor practices of the employers.  Paternity Leave

4. Violation by management of the labor New Trends in Compensation Management

agreement or violation of the law (Contd.) 5
concerning the workers.
 Work-life Balance
5. Lack of a clear-cut company labor policy.
 Pay Transperancy
COMPENSATION MANAGEMENT
 Broad banding
Compensation - The amount of money and
other items of value (e.g., benefits, bonuses,  Variable Pay (Incentive Pay)
perks) given in exchange for work
 Flexible Benefits
performed.
Work-life Balance 9
Compensation package - The sum total of
the money and other valuable items given in  Flexi-time
exchange for work performed.
 Compressed workweek
Trends in Compensation Management 6
 Job sharing
 Group Mediclaim/Insurance Scheme
 Telecommuting
 Personal Accident Insurance Scheme
 Part-time work
 Company Leased Accommodation
 Modified retirement
 Recreation/ATM facilities
 Employee Assistance Programme
 Corporate Credit Card
 Child Care Assistance
 Club memberships
 Elder Care Assistance
Trends in Compensation Management
(Contd.) Pay Transparency

 Cellular Phone/Laptop  Employees want transparency in

pay system.
 Personal Health Care
(Regular medical check-ups)  Now a days some organizations
are using transparent pay
 Loans system.

 Educational Benefits (For  Pay transparency

Higher studies) influences employees in 5
ways
 Regular Get together and
other cultural programs. • Fostering trust in management

 Wedding Day/Birthday Gift • Increasing employee engagement

 • Encouraging discretionary efforts

• Reducing turnover

• Creating competitive advantage

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.

Variable Pay (Incentive Pay) 9

 Piecework incentive

 Pay-for-performance

 Pay-for –person

 Merit pay

 Bonuses

 Sales incentives

 Profit sharing

 Gain sharing

 Employee Stock Ownership Plan

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.

Human resource functions refer to those tasks and duties performed in both large and small
organizations to provide for and coordinate human resources. Human resource functions
encompass a variety of activities that significantly influence all areas of an organization.

The Society for Human Resource Management (SHRM) has identified six major functions of
human resource management:
1. Human resource planning, recruitment, and selection.
2. Human resource development.
3. Compensation and benefits.
4. Safety and health.
5. Employee and labor relations.
6. Human resource research.
1. HUMAN RESOURCE PLANNING, RECRUITMENT, AND SELECTION
Your HR department makes sure that your company hires the right people to do the right job at
the right time.

They are constantly on the lookout for established, as well as emerging talent, and they are the
ones who will be responsible for advertising, recruiting and selecting new employees when
there is a vacancy that needs filling.

 Conducting job analysis to establish the specific requirements of individual jobs within the
organization.
 Forecasting the human resource requirements, the organization needs to achieve its
objectives.
 Developing and implementing a plan to meet these requirements.
 Recruiting the human resources the organization requires to achieve its objectives.
 Selecting and hiring human resources to fill specific jobs within the organization.

2. HUMAN RESOURCE DEVELOPMENT

Your HR department are responsible for getting new employees all settled in and ready to go.

This means everything from briefing them on company culture to integrating them into their
department and ensuring cooperation from the rest of the staff.

Orientation may also include some basic training, briefings on workplace safety, and discussions
about the awarding for benefits and their compensation package as a whole.

 Orienting and training employees.

 Designing and implementing management and organizational development programs.
 Building effective teams within the organizational structure.
 Designing systems for appraising the performance of individual employees.
 Assisting employees in developing career plans.

3. COMPENSATION AND BENEFITS

The HR department is responsible for negotiating compensation and benefits with the
employees, as well as being responsible for administering these benefits and compensations. If
an employee is having problems with a pay-cheque, for example, they'll consult the HR
department.

If they feel they are not being adequately compensated for their work, they'll negotiate the
terms of their contract with the HR department.

 Designing and implementing compensation and benefits systems for all employees.
 Ensuring that compensation and benefits are fair and consistent.
4. SAFETY AND HEALTH
Your HR department helps ensure workplace safety - whether this means offering seminars on
workplace safety if your company operates in a more dangerous sector (such as mining, for
example), or whether this means ensuring all the employees feel safe in the workplace.

Workplace safety can refer to bodily safety, such as from falling objects or sexual harassment
and assault in the workplace, or even to psychological safety, such as protecting employees
from hazing, intimidation or blackmail in the workplace.

A healthy and safe employee is a happy employee, and a happy employee is a productive one;
so by making sure your employees are safe and healthy, your HR department is having a direct
positive impact on the company's overall productivity.

 Designing and implementing programs to ensure employee health and safety

 Providing assistance to employees with personal problems that influence their work
performance

5. EMPLOYEE AND LABOR RELATIONS

If employees employ a trade union representative to negotiate or speak on their behalf, this
trade union rep will engage first and foremost with the HR department.

Similarly, if any of your employees are experiencing discomfort or conflict in the workplace,
the HR department is their first stop on the road to conflict resolution and can be called in to
mediate discussions on any level.

 Serving as an intermediary between the organization and its unions.

 Designing discipline and grievance handling systems.
QUIZ

Manager inventory chart – an organization chart of a unit having managerial positions indicated
and enter with a system of promotion of each employees.

Forecasting manpower demand – estimating the future human resource requirement in the
right quality and right number.

Human resource planning – a strategy used by a company to maintain a steady stream of

skilled employees while avoiding employee shortages or surpluses.

Job description – listing of all work to be performed by employee.

Job analysis – it can be gathered through interviews, direct observation or by using a

questionnaire that is completed by the person current holding the job and his immediate
supervisor.

Forecasting manpower supply – estimating availability of human resource through internal and
external supply.

Job specification – listing of skills, education and work experience needed to perform the job.

True – the manager inventory report has a clear indication on future supply of managers.

False – there is no clear indication on future supply of managers in managers inventory

chart. Staffing – it is defined as filling and keeping filled positions in the organization.

HR QUIZ #3

1.Internal sources of recruitment refer to hiring employees outside the organization. -

FALSE

2.

3.One of the goal of orientation program is to indicate the new staff member's role and

provides details about employee benefits. - TRUE

4.Violation by management of the labor agreement may be the cause of grievances. -

TRUE

5.hiring of employees through agency is an example of internal sourcing. - FALSE

6.Personality Test and Interest Test have no right and wrong answer however the answer

will be weight. - TRUE

7.Implementation is the last stage of training process. - FALSE

8.Saying your full name is the first sentence given during the self introduction in a job

interview. - FALSE

9.Orientation is comprises of a series of steps that needs to be followed systematically to

have an efficient training programmed. - FALSE

10.Orientation provides an overview of the organization. - TRUE