Unit - I Introduction to Human Resource Management

Management Essentials
‡ Primary Functions of Management
± Planning establishing goals ± Organizing determining what activities need to be done ± Leading assuring the right people are on the job and motivated ± Controlling monitoring activities to be sure goals are met

1. Human Resource Management (HRM):
Human Resource Management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

2. Personnel Management (PM):
‡ Personnel Management is an important branch in Management of any organisation. ‡ The main aim is to establish a better coordination between all the members from top level management to down below the subordinates to have: ‡ better cooperation, ‡ better focus to bring out innovative ideas, ‡ their objectives, understanding in the enterprise. ‡ Co-operative relationship is achieved within the enterprise by creating harmonious relations, genuine consultation and participation and system of effective communication.

Human Resource Development (HRD): This is a function more concerned with training and development. . career planning and development and organization development.3.

. ± Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. HRM jobs today require a new level of sophistication.Why is HRM Important to an Organization? ‡ The role of human resource personnels has changed. ± Global competition has increased demands for productivity. ± Employment legislation has placed new requirements on employers. ± Jobs have become more technical and skilled.

. ± concerned with the total cost of its function and for determining value added to the organization. and assist the organization in maintaining competitive advantage. support the organization strategy.Why is HRM Important to an Organization? ‡ The Strategic Nature HRM must be ± a strategic organization partner and represent employees. ± forward-thinking.

. ‡ HRM is both a staff. ‡ HRM Certification ± Colleges and universities offer HR programs. and support function that assists line employees. and a function of every manager s job.Why is HRM Important to an Organization? ‡ HRM is the part of the organization concerned with the people dimension.

Why is HRM Important to an Organization? Four basic functions: ‡ Staffing ‡ Training and Development ‡ Motivation ‡ Maintenance .

How External Influences Affect HRM ‡ ‡ ‡ ‡ Strategic Environment Governmental Legislation Labor Unions Management Thought .

How External Influences Affect HRM ‡ HRM Strategic Environment includes: ± ± ± ± ± ± ± ± ± ± Globalization Technology Work force diversity Changing skill requirements Continuous improvement Work process engineering Decentralized work sites Teams Employee involvement Ethics .

How External Influences Affect HRM ‡ Governmental Legislation ± Laws supporting employer and employee actions .

knowledge and abilities needed to be successful in a particular job ± defining the essential functions of the job .Staffing Function Activities ‡ Employment planning ± ensures that staffing will contribute to the organization s mission and strategy ‡ Job analysis ± determining the specific skills.

and ± the communication of information to assist job candidates in their decision to accept an offer .Staffing Function Activities ‡ Recruitment ± the process of attracting a pool of qualified applicants that is representative of all groups in the labour market. ‡ Selection ± the process of assessing who will be successful on the job.

and abilities ‡ Orientation and socialization help employees to adapt ‡ Four phases of training and development ± ± ± ± Employee training Employee development Organization development Career development .Goals of the Training and Development Function ‡ Activities in HRM concerned with assisting employees to develop up-to-date skills. knowledge.

‡ Compensation analyst. . ‡ Benefits coordinator. ‡ Job analyst and ‡ Trainer.Characteristics of an HR Specialist The chareateristics/role of the HR specialist is as following: ‡ Interviewer.

This is because the HR Manager has to oversee the implementation of the HR policies at the facility and advise line managers on HR issues. The HR Manager is a top ranking person in an Organisation and is expected to know about all the areas of HRM.HR Manager: The HR Manager is a generalist who administers and coordinates programmes cutting across functional areas. .

. ‡ Good listening skills. ‡ Willingness to work hard. ‡ Knowledge of overall design Organisation . ‡ Ability to form relationships with a wide variety of different people. ‡ Broad based knowledge of HR management and personnel law.Qualities of an HR Manager The 7 basic qualities of an HR manager are as follows: ‡ Selling Skills. ‡ Superior verbal and written communication abilities.

e. ‡ Personnel (or manpower) management involves procedures and practices through which human resources are managed (i. ‡ By controlling and effectively using manpower resources. organized and directed) towards the attainment of the individual.Objectives of Personnel Management ‡ The main objective of personnel management is to understand what has happened and is happening and to be prepared for what will happen in the area of working relationships between the managers and the managed (Employees). . management tries to produce goods and services for the society. social and organizational goals.

. experts have generally classified the functions into two major categories: ‡ Managerial: ‡ Operative functions: Others have classified functions as general and specific functions.Functions Of Personnel Management: Broadly speaking. or on the basis of authority. and yet others as Personnel Administration Functions . Functions have also been classified on the basis of the capacities.

Organizing.Functions of PM Contd ‡ Managerial functions: management may be thought of as the process of allocating an organizations inputs (human and economic resources) by Planning. . Directing and Controlling for the purpose of producing outputs (goods and services) so that organisation objectives are accomplished.

.Contd ‡ Operative functions: The operating functions of personnel management are concerned with the activities specifically dealing with Procuring. Developing. Compensating and Maintaining an efficient workforce.

. established by an organization.Human Resource Policies: Human resource policies are systems of codified decisions. employee relations and resource planning. performance management. to support administrative personnel functions.

‡ What they should expect from the organisation. ‡ What is acceptable and unacceptable behaviour. . ‡ How policies and procedures work in the organisation. ‡ What the organisation expects of them. ‡ The consequences of unacceptable behaviour.Purpose of Policies: HR policies allow an organisation to be clear with employees on: ‡ The nature of the organisation.

. ‡ Prevailing practice in the rival/competing oganisations. ‡ Attitudes and philosophy of middle and lower management. ‡ Attitudes and philosophies of founders of the organisation and also its directors and top management.Formulating Policies: There are 5 principle sources for determining the content and meaning of policies: ‡ Past practice in the organisation. ‡ Knowledge and experience gained from handling countless personnel problems on a day-to-day basis.

‡ Policy regarding housing. marital status. transfer. ‡ Policy on terms and conditions of employment compensation policy and methods. etc. overtime. . transport and other allowances. ‡ Policies regarding training and development. etc. promotion.Personnel Policies Few specific personnel policies are: ‡ Policy of hiring people with due respect to factors like reservation. hours of work. gender.

‡ Employee classifications. and pay advances. paydays. ‡ Sick days and personal leave (for bereavement. ‡ Payroll deductions. ‡ Holidays.Sound Hr Policies Organisation owners should make sure that they address the following basic human resource issues when putting together their personnel policies: ‡ Equal Employment Opportunity policies. ‡ Vacation policies. ‡ Workdays. . ‡ Overtime compensation. etc. voting. ‡ Meal periods and break periods.).

Contd
‡ Performance evaluations and salary increases. ‡ Performance improvement. ‡ Termination policies.

Contd..
In addition, a broad spectrum of other issues can be addressed via human resource policies, depending on the nature of the Organisation. ‡ Promotion policies; ‡ Medical/dental benefits provided to employees; ‡ Use of organisations equipment/resources (access to Internet, personal use of fax machines and telephones, etc.); ‡ Continuity of policies; sexual harassment; substance abuse and/or drug testing; smoking;

Contd..
‡ Pension, profit-sharing, and retirement plans; ‡ Reimbursement of employee expenses (for traveling expenses and other expenses associated with conducting company business); ‡ Child or elder care; ‡ Educational assistance; ‡ Grievance procedures; ‡ Employee privacy; ‡ Dress codes; ‡ ETC

Unit - II
HumanResource Planning, Recruitment, Selection, Orientation and Placement

Introduction ‡ Human resource planning is a process by which an organization ensures that ± it has the right number and kinds of people ± at the right place ± at the right time ± capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives. .

‡ Senior HRM staff need to lead top management in planning for HRM issues.Introduction ‡ Linked to the organization s overall strategy and planning to compete domestically and globally. . ‡ Overall plans and objectives must be translated into the number and types of workers needed.

Linking Organizational Strategy to Human Resource Planning ‡ Ensures that people are available to meet the requirements set during strategic planning. ‡ Human Resource Information Systems ± HRIS are increasingly popular computerized databases that contain important information about employees. ‡ Assessing current human resources ± A human resources inventory report summarizes information on current workers and their skills. .

Linking Organizational Strategy to Human Resource Planning ‡ Assessing current human resources ‡ Succession planning ± includes the development of replacement charts ± portray middle-to-upper level management positions that may become vacant in the near future ± lists information about individuals who might qualify to fill the positions .

± Forecasts must be made of the need for specific knowledge.Linking Organizational Strategy to Human Resource Planning ‡ Determining the Demand for manpower ± A human resource inventory can be developed to project year-by-year estimates of future HRM needs for every significant job level and type. skills and abilities. ? .

.Linking Organizational Strategy to Human Resource Planning ‡ Predicting the Future manpower Supply ± A unit s supply of human resources comes from: ‡ ‡ ‡ ‡ new hires contingent workers transfers-in individuals returning from leaves ± Predicting these can range from simple to complex.

Linking Organizational Strategy to Human Resource Planning ‡ Predicting the Future manpower Supply ± Decreases in internal supply come about through: ‡ ‡ ‡ ‡ ‡ ‡ ‡ Retirements Dismissals Transfers-out Lay-offs Voluntary quits Prolonged illnesses Deaths .

Linking Organizational Strategy to Human Resource Planning Employment Planning and the Strategic Planning Process .

responsibilities and accountabilities of a job and the conditions under which a job is performed. ? .Job Analysis ‡ Job Analysis is a systematic exploration of the activities within a job. ‡ It defines and documents the duties.

Job Analysis ‡ Job Analysis Methods ± Observation method job analyst watches employees directly or reviews film of workers on the job. ± Individual interview method a team of job incumbents is selected and extensively interviewed. . ± Group interview method a number of job incumbents are interviewed simultaneously.

.Job Analysis ‡ Job Analysis Methods ± Structured questionnaire method workers complete a specifically designed questionnaire. ± Technical conference method uses supervisors with an extensive knowledge of the job. ± Diary method job incumbents record their daily activities. ‡ The best results are usually achieved with some combination of methods.

.Job Analysis ‡ Job Evaluations ± Specify relative value of each job in the organization. ± Used to design equitable compensation program.

Recruitment and Selection .

.Introduction ‡ Recruiting ± Once an organization identifies its human resource needs through employment planning. it can begin the process of recruiting potential candidates for actual or anticipated organizational vacancies.

Introduction ‡ Recruiting brings together those with jobs to fill and those seeking jobs. .

Recruiting Goals ‡ To provide information that will attract a significant pool of qualified candidates and discourage unqualified ones from applying. .

family adjustment and hostile political environments. ‡ HCN s minimize potential problems with language.Recruiting: A Global Perspective ‡ Host-country nationals (HCNs) are targeted as recruits when companies want each foreign subsidiary to have its own distinct national identity. .

Recruiting Sources ‡ Sources should match the position to be filled. ‡ Sources: ± Internal Searches ± Employee Referrals/ Recommendations ± External Searches ± Alternatives .

Recruiting Sources The internal search ‡ Organizations that promotes from within and identifies current employees for job openings: ± by having individuals bid for jobs ± by using their HR management system ± by utilizing employee referrals .

Recruiting Sources The internal search ‡ Advantages of promoting from within include ± morale building ± encouragement of ambitious employees ± availability of information on existing employee performance ± cost-savings ± internal candidates knowledge of the organization .

Recruiting Sources The internal search ‡ Disadvantages include: ± possible inferiority of internal candidates ± infighting and morale problems .

Recruiting Sources Employee referrals/recommendations ‡ Current employees can be asked to recommend recruits. . ‡ Advantages include: ± the employee s motivation to make a good recommendation ± the availability of accurate job information for the recruit ± Employee referrals tend to be more acceptable applicants. to be more likely to accept an offer and to have a higher survival rate.

Recruiting Sources Employee referrals/recommendations ‡ Disadvantages include: ± the possibility of friendship being confused with job performance .

depending on job. ‡ Two factors influence the response rate: ± identification of the organization ± labor market conditions . decide whether to focus on job (job description) or on applicant (job specification).Recruiting Sources External searches ‡ Advertisements: Must decide type and location of ad.

Recruiting Sources External searches ‡ Employment agencies: ± Public or state employment services focus on helping unemployed individuals with lower skill levels to find jobs. ± Private employment agencies provide more comprehensive services and are perceived to offer positions and applicants of a higher caliber. .

Recruiting Sources External searches ‡ Schools. . colleges. ± May also help companies establish cooperative education assignments and internships. and universities: ± May provide entry-level or experienced workers through their placement services.

± Temporary employees help organizations meet short-term fluctuations in HRM needs. which provides them to employers when needed for a flat fee. ± Typically remain with an organization for longer periods of time. ‡ Employee leasing.Recruiting Sources Recruitment alternatives ‡ Temporary help services. . ± Older workers can also provide high quality temporary help. ± Trained workers are employed by a leasing company.

Selection .

considering current environmental conditions .Selection ² the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available.

Internal Environmental Factors Influencing Selection ‡ Organization characteristics that can influence the selection process: ± Size ± Complexity ± Technological ability .

External Environmental Factors Influencing Selection ‡ Government employment laws and regulations ‡ Size. and availability of local manpower markets . composition.

Reliability of Selection Criteria ‡ Reliability how stable or repeatable a measurement is over a variety of testing conditions. .

Validity of Selection Criteria ‡ Validity addresses the questions of: ± What a selection tool measures ± How well it has measured it ‡ It is not sufficient for a selection tool to be reliable ‡ The selection tool must also be valid .

± Job description information is shared along with a salary range.The Selection Process Initial Screening ± Involves screening of inquiries and screening interviews. .

Training managers on best interview techniques . Structuring the interview to be reliable and valid 2.The Selection Process Employment Interview Interviews involve a face-to-face meeting with the candidate to probe areas not addressed by the application form or tests ‡ Two strategies for effective use of interviews: 1.

The Selection Process Types of Interviews: ‡ Unstructured interview ‡ Structured interview ‡ Behavioral Interviews ± Candidates are observed not only for what they say. but how they behave. ± Role playing is often used. ‡ Stress Interviews. .

. tours.The Selection Process Realistic Job Preview ± RJP s present unfavorable as well as favorable information about the job to applicants. work sampling. ± May include brochures. films. or verbal statements that realistically portray the job.

± aptitudes ± intelligence ± personality ‡ Should be validated before being used to make hiring decisions .g. e.The Selection Process Employment Tests ‡ Mechanism that attempts to measure certain characteristics of individuals..

The Selection Process Employment Tests ‡ Estimates say 60% of all organizations use some type of employment tests. ± Performance simulation tests: requires the applicant to engage in specific job behaviors necessary for doing the job successfully. ± Work sampling: Job analysis is used to develop a miniature replica of the job on which an applicant demonstrates his/her skills. .

± Testing in a global arena: Selection practices must be adapted to cultures and regulations of host country. .The Selection Process Employment Tests ‡ Assessment centers: A series of tests and exercises. is used to assess managerial potential or other complex sets of skills. including individual and group simulation tests.

The Selection Process Background Investigation: ‡ Verify information from the application form ‡ Typical information verified includes: ± former employers ‡ previous job performance ± education ± legal status to work ± credit references ± criminal records .

The Selection Process Background Investigation ‡ Do not always provide an organization with meaningful information about applicants ‡ Concerns over the legality of asking for and providing confidential information about applicants .

. ± Adjustments must be made whenever individuals change jobs ± The most profound adjustment occurs when an individual first enters an organization.The socialization Process ‡ Socialization ± A process of adaptation to a new work role.

. which motivates them to learn the values and norms of the organization. ± New members suffer from anxiety.The socialization Process The assumptions of employee socialization: ± Socialization strongly influences employee performance and organizational stability ± Provides information on how to do the job and ensuring organizational fit.

employees. ± Individuals adjust to new situations in remarkably similar ways. ± All new employees go through a settling-in period. clients and others. management. .The Socialization Process Cont d Assumptions of employee socialization cont d: ± Socialization is influenced by subtle and less subtle statements and behaviors exhibited by colleagues.

The socialization Process A Socialization Process .

. attitudes and expectations which they have developed from previous experience and the selection process.The socialization Process The Socialization Process ± Prearrival stage: Individuals arrive with a set of values.

socialization occurs to instill the employee with the organization s standards.The socialization Process ± Encounter stage: Individuals discover how well their expectations match realities within the organization. . ± Where differences exist.

feel accepted and know what is expected of them.The socialization Process ± Metamorphosis stage: Individuals have adapted to the organization. .

the HRM staff or some combination. depending on the size of the organization. ‡ Formal or informal.New-Employee Orientation Purpose ‡ Orientation may be done by the supervisor. ‡ Covers such things as: ± ± ± ± ± ± ± The organization s objectives History Philosophy Procedures Rules HRM policies and benefits Fellow employees .

. ± Socialized employees know how things are done. and which behaviors and perspectives are acceptable. what matters.New-Employee Orientation ‡ Learning the Organization s Culture ± Culture includes long-standing. often unwritten rules about what is appropriate behavior.

training. ‡ Participant Role: HRM offers its assistance for future employee needs (career guidance. provides information about benefits choices. etc.). .New-Employee Orientation HRM s Role in Orientation ‡ Coordinating Role: HRM instructs new employees when and where to report.