Effective HR

Introduction to HRM for

Project management
By
Suman Poudel
Suman.boston@gmail.com

We Learn A Continuous Learning For

Objectives
After completing this chapter, you should be
able to:
Understand Human Resource Management.
Learn about the activities involved in HRM
implementation
Realize the focus of HRM and understand the role,
position, and structure of HRM departments.
Evaluate HRM methods in an organization
Understand the various forces that are changing
HRM.
Understand the nature and importance of training.

Introduction to human resource

management (HRM)
Human resource management (HRM) entails
planning, implementing, and managing
recruitment, as well as selection, training,
career, and organizational development
initiatives within an organization.
The goal of HRM is to maximize the
productivity of an organization by optimizing
the effectiveness of its employees while
simultaneously improving the work life of
employees and treating employees as
valuable resources.

Introduction to human resource

management (HRM)
Consequently, HRM encompasses efforts to
promote personal development, employee
satisfaction, and compliance with employmentrelated laws.
To achieve equilibrium between employer and
employee goals and needs, HRM departments
focus on these three general functions or
activities:
planning,
implementation, and
evaluation.

Introduction to human resource

management (HRM)
The planning function refers to the
development of human resource policies
and regulations.
Implementation of HRM plans involves four
primary activities: acquisition, development,
Compensation, and maintenance.
Finally, the evaluation function includes the
assessment of a companys HRM policies to
determine whether they are effective

HRM Situational Analysis

Posits four stages follower readiness:

R1: followers are unable and
unwilling
R2: followers are unable but willing
R3: followers are able but unwilling
R4: followers are able and willing

HRM implementation
activities

Acquisition
Acquisition duties consist of human resource
planning for employees, which includes activities
related to analyzing employment needs,
determining the necessary skills for positions,
identifying job and industry trends, and forecasting
future employment levels and skill requirements.
These tasks may be accomplished using such tools
and techniques as
questionnaires, interviews,
statistical analysis, building skill inventories, and
designing career path charts

Development
The second major HRM function, human
resource development, refers to performance
appraisal and training activities.
The basic goal of appraisal is to provide
feedback to employees concerning their
performance.
This feedback allows them to evaluate the
appropriateness of their behavior in the eyes
of their co-workers and managers, correct
weaknesses, and improve their contribution.

Development
Training and development activities include:
the determination,
design,
execution, and
analysis of educational programs.

Training initiatives may include:

apprenticeship,
internship,
job rotation,
mentoring, and
new skills programs.

Compensation
Compensation, the third major HRM function,
refers to HRM duties related to paying
employees and providing incentives for them.
HRM professionals are typically charged with
developing wage and salary systems that
accomplish specific organizational objectives,
such as employee retention, quality,
satisfaction, and motivation.
Ultimately, their aim is to establish wage and
salary levels that maximize the companys
investment in relation to its goals.

Maintenance
The fourth principal HRM function,
maintenance of human resources,
encompasses HRM activities related to
employee benefits, safety and health, and
worker-management relations.
Employee benefits are non-incentiveoriented compensation, such as health
insurance and free parking, and are often
used to transfer non-taxed compensation
to employees.

Maintenance

The three major categories of benefits managed

Evaluation of HRM methods

One of the most critical aspects of
HRM is evaluating HRM methods and
measuring their results.
Even the most carefully planned and
executed HRM programs are
meaningless without some way to
judge their effectiveness and confirm
their credibility.

Evaluation of HRM methods

The evaluation of HRM methods & programs should inclu

Forces changing HRM

In the 1990s several forces were shaping
the broad field of HRM, such as .
New technologiesparticularly information
technologybrought about the
decentralization of communications and the
shake-up of existing paradigms of human
interaction and organizational theory.
Satellite communications, computers and
networking systems, fax machines, and
other devices were facilitating rapid change

Forces changing HRM

In the 1990s several forces were shaping
the broad field of HRM, such as .
One more change factor was accelerating
market globalization, which was increasing
competition and demanding greater
performance out of workers, often at
diminished levels of compensation.
To compete abroad, companies were looking
to their HRM professionals to augment
initiatives related to quality, productivity, and
innovation.

Forces changing HRM

In the 1990s several forces were
shaping the broad field of HRM, such
as.
Other factors changing HRM include:
an accelerating rate of change and
turbulence, resulting in higher employee
turnover and the need for more responsive,
open-minded workers;
rapidly changing demographics; and
increasing income disparity as the demand
for highly educated workers increases at the
expense of lower-wage employees.

Nature of training and development

Training can be introduced simply as a process of

assisting a person for enhancing his efficiency and
effectiveness to a particular work area by getting
more knowledge and practices.
Also training is important to establish specific skills,
abilities and knowledge to an employee.

Nature of training and development

For an organizations training and
development as well as
organizational growth are important,
because the organizational growth
and profit are also dependent on the
training.
But the training is not a core of
organizational development; it is a
function of the organizational
development.

Nature of training and development

Training and Development is the framework
for helping employees to develop their
personal and organizational skills,
knowledge, and abilities.
The focus of all aspects of Human Resource
Development is on developing the most
superior workforce so that the organization
and individual employees can accomplish
their work goals in service to customers.

Nature of training and development

Trainings in an organization are mainly of
two types;
Internal and External training sessions.
Internal training
when training is organized in-house by the human
resources department or training department
using either a senior staff or any talented staff in
the particular department as a resource person

On the other hand external training is

normally arranged outside the firm and mostly
organized by training institutes or consultants.

Nature of training and development

Training employees not only creates
a more positive corporate culture,
Business
but
alsodevelopment
adds a value to
organizations key resources.

Importance of training and

development
Optimum Utilization of Human Resources
Training and Development helps in optimizing the
utilization of human resource that further helps the
employee to achieve the organizational goals as
well as his/her individual goals.

Development of skills of employees

Training and Development helps in increasing the
job knowledge and skills of employees at each level
It helps to expand the horizons of human intellect
and an overall personality of the employees.

Importance of training and

development
Team spirit
Training and Development helps in inculcating the
sense of team work, team spirit, and inter-team
collaborations.
It helps in inculcating the zeal to learn within the
employees.

Organization Climate
Training and Development helps building the
positive perception and feeling about the
organization.
The employees get these feelings from leaders,
subordinates, and peers.

Importance of training and

development
Healthy work environment
Training and Development helps in
creating the healthy working
environment.
It helps to build employee relationship
so that individual goals are aligned with
organizational goals.

Morale
Training and Development helps in
improving the morale of the work force.

Importance of training and

development
Profitability
Training and Development leads to
improved profitability and positive
attitudes towards profit orientation.

Training and Development helps in

developing leadership skills,
motivation, loyalty, better attitudes,
and other aspects that successful
workers and managers usually
display.

Role of professional in
training
In general, education is mind preparation and
is carried out remote from the actual work
area, training is the systematic development of
the
attitude,
knowledge,
skill pattern

required by a person to perform a given task or

job adequately and development is the growth
of the individual in terms of ability,
understanding and awareness.

Role of professional in
training
Within an organization all three are
necessary in order to:
Develop workers to undertake highergrade tasks;
Provide the conventional training of new
and young workers;
Raise efficiency and standards of
performance;
Meet legislative requirements;
Inform people.

Role of professional in
training
This is the era of cut-throat competition and with
this changing scenario of business; the role of
professionals in training has been widened.
HR role now is:
Involvement in employee education.
Rewards for improvement in performance.
Rewards to those associated with self- esteem and selfworth.
Providing pre-employment market oriented skill
development education and post-employment support
for advanced education and training.
Flexible access i.e. anytime, anywhere training.

HRM is a subset of management. It has five

main goals:

attract
employees

retain
employees

Goals
of
HRM

hire
employees

motivate

train

employees

employees

Strong employees = competitive advantage.

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m

Recruiting Sources
internal
searches
employee
referrals
external
searches
The Internet is
blazing trails in
recruiting practices
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online and
alternative

The Selection Process

The selection
process
typically
consists of
eight steps.

initial screening

Failed to meet minimum qualifications

Passed

completed
application
Passed
employment test

Failed to complete application or

failed job specifications
Failed test

Passed

conditional
job offer

Passed

comprehensive interview
Failed to impress interviewer and/or
meet job expectations

background examination
if required

Problems encountered

Passed

permanent
job offer

medical/physical examination
(conditional job offer made) Unfit to do essential
elements of job

Able to perform essential

elements of the job
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reject applicant

Linking Organizational Strategy to HR

Planning
STRATEGIC DIRECTION
mission

objectives and goals

strategy

structure

people
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HR LINKAGE
determining organizations
business
setting goals and
objectives
determining how to
attain goals and
objectives
determining what jobs need
to be done and by whom
matching skills,
knowledge, and abilities
to required jobs

Discipline and Employee Rights

Disciplinary
Actions
written/verbal warning

written warning

suspension

dismissal

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Discipline and Employee Rights

When firing an employee:
1. review all facts
2. set the stage
3. be very clear
4. allow a little dignity
5. let the employee talk
6. give severance pay
7. sign waiver of right to sue
8. pay for earned time
9. have person leave that day
10. inform person of benefits
11. take protective steps (change
passwords, etc.)
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12. inform staff of firing