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Define HRM
Human Resource Management (HRM) is a management function that helps managers recruit, select, train & develop members for an organization. Obviously, HRM is concerned with the peoples dimension in organization
Functions of HRM:
1. 2. 3. 4. Managerial Functions Planning Organizing Directing Controlling
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1. 2. 3. 4. 5. 6. Operative functions : Job analysis Human resource planning Recruitment Selection Placement Induction & orientation
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Human resource development:
1. 2. 3. 4. 5. 6. 7.
Performance appraisal Training Management development Career planning & development Internal mobility Transfer Promotion
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Compensation: 1. Job evaluation 2. Wage & salary administration 3. Incentives 4. Bonus 5. Fringe benefits 6. Social security measures
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Human relations : 1. Understanding & applying the models of perception, personality, leaning, intra & interpersonal relations 2. Motivating the employees 3. Boosting employees morale 4. Developing the communication skills 5. Developing the leadership skills 6. Redressing employee grievances properly & in time by means of a well formulated grievance procedure
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Industrial Relations : 1. Indian labour market 2. Trade unionism 3. Collective bargaining 4. Industrial conflicts 5. Workers participation in management & 6. Quality circles
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Recent Trends in HRM : 1. Quality of work life 2. Total quality in human resources 3. HR accounting, audit & research & 4. Recent techniques of HRM
Scope of HRM
The scope of HRM is indeed vast. All major activities in the working life of a worker from time of his or her entry into an organization until he or she leaves come under the preview of HRM
Specifically the activities included are HR Planning, job analysis & design, recruitment & selection, orientation & placement, training & development, performance appraisal & job evaluation, employee & executive remuneration, motivation & communication, welfare, safety & health, industrial relations (IR)
7 sections of functions :
Introduction to HRM Employee hiring Employee & executive remuneration Employee motivation Employee maintenance IR Prospects of HRM
Diagram
Nature of HRM Prospects Of HRM EMPLOYEE HIRING
Industrial Relations
Employee Maintenance
Employee Motivation
Speed of decision
Slow
Fast
Objectives of HRM
Societal Objectives Organizational Objectives Functional Objectives Personal Objectives
Diagram :
Personal Objectives
Functional Objectives
Organizational Objectives
Societal Objectives
Objectives of HRM
Nature of HRM Human Resource Planning Job Analysis Recruitment Selection Placement Training & Development Remuneration Motivation Participative Management Communication Safety & health Welfare Promotions, etc
set of decisions and subsequent actions used to formulate and implement strategies that will optimize the fit between the organization and its environment in an effort to achieve organizational Objectives
Strategy Implementation
Project
Behavioral Functional
External Factors Government Policies Level of Economic Development including future supply of HRs Business Environment Information Technology Level of Technology Natural Factors International Factors
Internal Factors Strategies of the company Human Resources policy of the company Formal and Informal Groups Job Analysis Time Horizons Type and quality of information Companys production operations policy Trade Unions
Importance of HRP :
Future personnel needs Coping with change Creating highly talented personnel Protection of weaker sections International strategies
HR Programming
HRP Implementation
Job analysis
Job analysis is the process of studying & collecting information
relating to the operations & responsibilities of a specific job. The immediate products of this analysis are job descriptions & job specifications.
Job Description :
A Job description is an organized, factual statement of the duties & responsibilities of a specific job.
Job Specification :
A Job Specification is a statement of the minimum acceptable human qualities necessary to perform a job properly.
Diagram :
Job Analysis
Job Description
Job Specification
Collection of Information
Process of Information Drafting Job Description Drafting Job Specification
Performance Analysis & Development Job Evaluation Wage & salary levels Internal Mobility Discipline & Grievances Work Scheduling Health & Safety
Define Recruitment :
Recruitment is the process of finding & attracting capable applicants for employment. The process begins when new recruits are sought & ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.
Objectives of Recruitment :
To attract people with multi-dimensional skills & experiences that suit the present & future organizational strategies To induct outsiders with a new perspective to lead the company. To infuse fresh blood at all levels of the organization. To develop an organizational culture that attracts competent people to the company. To search or head hunt/ head pouch people whose skills fit the companys values To devise methodologies for assessing psychological traits To seek out non-conventional development grounds of talent To search the talent globally & not just within the country To anticipate & find people for positions that do not exist yet.
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Meet the organizations legal & social obligations regarding the composition of its workforce Begin identifying & preparing potential job applicants who will be appropriate candidates Increase organizational & individual effectiveness in the short term & long term Evaluate the effectiveness of various recruiting techniques & sources for all types of job applicants
Recruitment Process :
There are 5 stages: Planning Strategy development Searching Screening Evaluation & Control
Recruitment Process :
Personnel Planning Job Analysis Employee Requisition S C R E E N I N G To selection
Job Vacancies
Applicant Pool
Potentials Hires
Applicant Population
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1. Recruitment planning Translation of likely job vacancies and information about the nature of the job into set of objectives or targets. Number of contacts (yield ratios; yRs) Types of contacts (tasks and responsibility, qualification and experience expected)
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2. Strategy Development
Make or Buy Technological Sophistication Where to Look How to Look i] Internal Recruitment ii] External Recruitment When to Look
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Internal Recruitment Present Employees. Employee Referrals. Former Employees. Previous Applicants.
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External Recruitment Advertisements Employment Exchanges Walk- ins, Write-ins and Talks- ins Consultants Radio and Television Competitors Campus Recruitment
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3.
Searching Source activation Selling
ALTERNATIVES TO RECRUITMENT
Overtime Employee Leasing Temporary Employment
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INTRODUCTION TO SELECTION
What is Selection? It is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success of a job.
Contd.
Role of Selection It is related to work performance. Cost effectiveness.
Contd.
Organization for Selection In a simple terms it is structure or body created for selection. Advantages: Easy for applicants. Helps operating managers to concentrate on own activities. Provide better selection, smooth process and reduce cost.
SELECTION PROCESS
External Environment Internal Environment
Selection Decision
Cost of hiring.
5.
8. Contracts Of Employment
9. Concluding The Selection Process
Pressure
Inputs in Training :
Skills
Education
Development :
An organization expects the following from its managers when they are deputed to attend any training & development programme: How do we make our managers self-starters? How do we imbune them with a sense of commitment & motivation so that they become self-generating? How do we make them subordinates their parochial, functional loyalties to the interests of the organization as a whole?
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How do we make result-oriented? How do we help them see & internalize the difference between activity & results, & between efficiency & effectiveness? How do we make them sensitive to the environment in which they function, both at the workplace & outside? How do we make them aware of themselves ---- their potential & their limitations? How do we help them see themselves as others see them & accept this self image as a prelude to change?
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How do we teach them communicate without filters, to see & feel points of view different from their own? How do we help them understand power & thereby develop leadership styles which inspire & motivate others? How do we instill a zest for excellence, a divine discontent, a nagging dissatisfaction with the status quo?
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Ethical Orientation is significant for the following reasons : Ethics correspond to the basic human needs. All of us want to be ethical in our personal lives & in business dealings Values create creditability with the public. An organization perceived by the public to be ethically & socially concerned will be honored & respected even by those who have no intimate knowledge of its actual functioning
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Values lend management credibility with employees. They provide a common language for aligning a companys leadership & its people Values help in better decision making. Ethical attitudes help managements make better decisions which are in the interest of the public, the employees & in the long term the company itself
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Attitudinal changes : Attitudes represent feelings & beliefs of individuals towards others. Attitudes affect motivation, satisfaction & job commitments Negative attitudes need to be converted into positive attitudes
Evaluation of Results
Organizational objectives :
The first step in the training process in organization is the assessment of its objectives and strategies
What business are we in? At what level of quality do we wish to provide this product or service? Where do we want to be in future?
Needs assessment :
Need assessment diagnoses present problems and future challenges to be met through training and development Before committing such huge resources, organizations would do well to assess the training needs of their employees Organizations that implement training programmes without conducting needs assessment may be making errors.
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Needs assessment occurs at 2 levels i.e. : group and individual
An individual obviously needs training when his or her performance falls short of standards, that is, when there is performance deficiency The problem of performance deficiency caused by absence of skills or knowledge can be remedied by training
Diagram :
Performance Deficiency
Other causes
Training
Non-Training Measures
Individual Analysis
Performance appraisal Work sampling Interviews Questionnaires Attitude Survey Training progress Rating scales
Diagram :
Steps in Training programme
Off-the-job
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On-the-job methods refer to methods that are applied in the workplace, while the employee is actually working such as orientation training, job-instruction training, internships and assistantship, job rotation, coaching Off-the-job methods are used away from workplace such as vestibule, lecture, special study, films, television, conference or discussion, case study, role playing, simulation, programmed instruction, laboratory training
Evaluation of programme :
The main objective of evaluating the training programmes is to determine if they are accomplished specific training objectives, that is, correcting performance deficiencies
A 2nd reason for evaluation is to ensure that any changes in trainee capabilities are due to the training programme and not due to any other conditions
Advantages of Training :
Increased productivity Heightened Morale Reduced supervision Reduced accidents Increased organizational
Principles of Evaluation :
Evaluation specialist must be clear about the goals and purposes of evaluation Evaluation must be continuous Evaluation must be specific Evaluation must be based on objective methods and standards
To effect promotions based on competence & performance To confirm the services of probationary employees upon their completing the probationary period satisfactorily To assess the training & development needs of employees To decide upon a pay raise where regular pay scales have not been fixed To let the employees know where they stand insofar as their performance is concerned & to assist them with constructive criticism & guidance for the purpose of their development
Appraisal Process :
Objectives of Performance Appraisal
Objectives of Appraisal :
Objective of appraisal, as stated above, including effecting promotions & transfers, assessing training needs, awarding pay increases, & the like These objectives are appropriate as long as the approach in appraisal is individual In the systems approach, appraisal aims at improving the performance, instead to merely assessing it.
Future-Oriented Appraisals
Management by Objectives Psychological Appraisals Assessment Centres 360-Degree Feedback Performance Interview Use of Appraisal
Appraisers :
360 degree performance appraisal : The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents & who observes the employee while performing a job. The appraiser should be capable of capable of determining what is more important & what is relatively less important.
Supervisors :
Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee & department head or manager. General practice is that immediate superiors appraise the performance which in turn is reviewed by the departmental
Peers :
Peer appraisal may be reliable if the work group is stable over a reasonably long period of time & performs tasks that require interaction. However, little research has been conducted to determine how peers establish standards for evaluating others or the overall effect of peer appraisal on the groups attitude.
Subordinates:
The concept of having superiors rated by subordinates is being used in most organizations today, especially in developed countries.
Self Appraisal :
If individuals understand the objectives they are expected to achieve & the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance.
Users of Services/Customers:
Employee performance in service organizations relating to behaviors, promptness, speed in doing the job & accuracy can be better judged by the customers or users of services.
Consultants :
Sometimes consultants may be engaged for appraisal when employees or employers do not trust supervisor appraisal and the management does not trust self- appraisal, peer appraisal or subordinate appraisal
In this situation, consultants are trained and they observe the employee at work for a sufficiently long time for the purpose of appraisal.
Past-Oriented Methods :
Rating Scales Ranking Method Paired Comparison Method Forced Choice Method Checklist Methods Critical Incidents Methods
Ranking Method :
Under this method, the employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance & the employees with the lowest performance in that particular job category & rates the former as the best & the latter as the poorest. Then the rater selects the next highest & the next lowest & so on until he rates all the employees in that group.
Checklist Methods:
1. Simple checklist Method: the checklist consists of a large number of statements concerning an employee behavior. The rater checks to indicate if the behavior of an employee is positive or negative to each statement. Employee performance is rated on the basis of the number of positive checks. The negative checks are not considered in this method.
Weighted checklist :
The weighted checklist method involves weighting different items in the checklists, having a series of statements about an individual, to indicate that some are more important than others. The rater is expected to look into the questions relating to the employees behavior, the attached rating scale & tick those traits that closely describe the employee behavior.
Feedback Mechanism:
Design jobs and work systems to accomplish organizational goals Hire individuals with capabilities to discharge the jobs effectively Train motivate, remunerate employees for their performance & productivity.
Wage :
The remuneration paid by the employer for the
services of hourly, daily, weekly, & fortnightly employees
Salary:
The term salary is defined as the remuneration paid to
the clerical & managerial personnel employed on monthly or annual basis.
Earnings :
Earnings are the total amount of remuneration received by an employer during a given period. These include salary, pay) dearness allowance, house rent allowance, city compensatory allowance, other allowances, overtime payments etc.
Incentive Payments :
Incentive are monetary benefits paid to workmen in
recognition of their outstanding performance. They are defined as variable rewards granted according to variations in the achievement of specific results.
Nominal wage:
It is the wage paid or received in monetary terms .
It is also known as money wage.
Real wage
Real amount is the wage arrived after discounting nominal wage by the living cost. It represents the purchasing power of money wage.
Minimum wage :
It is the amount of remuneration which could meet the normal needs of the average employee regarded as human being lining in a civilized society
Importance :
The primary advantage of incentives is the inducement and motivation of workers for higher efficiency and greater output. It may not be difficult to get people for fixed wages and salaries. Earnings of employees would enhanced due to incentives There are instances where incentive earnings exceed two or three times the time-rated wages or salaries.
Disadvantages :
On the other hand, systems of payment by results may have disadvantages Difficulties may arise over the introduction of new machines or methods A sound incentive schemes would depend upon an understanding of the problems of human relations as well as those of engineering.
A policy is pre-determined, selected course established as a guide towards accepted goals & objectives they (policies) establish the framework of guiding principles that facilitate delegation to lower levels & permit individual mangers to select appropriate tactics or programme In contrast to these, personnel policies are those that individuals have developed to keep them on the track towards their personnel objectives management policies are developed by working organizations to keep them on course headed & directed toward their organizationa objectives. These define the intentions of the organization & serve as guidelines to give consistency & continuity to total operations. They provide a base for management by principle as contrasted with management by expediency.
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To provide for a consultative participation by employees in the management of an organization & the framing of conditions for this participation, which however, shall not take place in technical, financial, or trading policy,
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It should recognize the desire of many workers for recognition as groups in many of their relationships It should be formulated with the due regard for the interests of all the concerned parties, the employers, employees & the public community It should be the result of a careful analysis of the available facts. It must be two-way communication system between the management & the employees so that the latter are kept informed of the latest developments in the organization & the employees are aware of the actions & reactions of the employees on particular issue It should be generally known to all interested parties It must have not only the support of the management but the co-operation of employees at the shop floor level & in the office