HUMAN RESOURCE

MANAGEMENT
Dr Ravikiran Dwivedula
 INTRODUCTION TO HRM

Employee Retention

Performance Appraisal

Grievance Handling

Organization vision
Achievement of Objectives
Job Analysis

HR planning Training & Development

Recruitment & Selection

Organization goals

Compensation

Career Planning & Management Quality of Work life &

Motivation
 Recruitment & Selection
Where do you want
Organization vision
To be?

How do we get the best people suited

How do you get
To the job to apply (online job postings;
There?
Organization goals Referrals)

What kind of people How do you select the right people

HR planning Do we have right now? (knowledge+ (tests+GD+personal Interview…)
Skills+ Attitude

What kind of people do we need Training & Development

(GAP Analysis; retirements,
Attrition…)
Job Analysis Grievance Handling
How do you develop
Their knowledge/skills/
behavior
Job Description– What is it
To be done? Career Planning & Management

Job requirements—What kind of

People do we need for this job QWL & Motivation

Performance Appraisal

Assessment of employee’s performance

Employee Retention Assessment of task success

ACHIEVEMENT OF THE ORGANIZATION’S OBJECTIVES

 INTRODUCTION TO HRM

Definition of HRM

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 its objectives
 INTRODUCTION TO HRM

Definition of HRM

HRM comprises of those activities designed to provide for and

coordinate the resources of an organization
 INTRODUCTION TO HRM

Functions of HRM

HRM is important for organizations because

• Different people working in the organization have a different set of values, attitudes,
beliefs…THEREFORE THEY MAY NOT TOTALLY AGREE WITH EACH OTHER ALL
THE TIME!

• Motivational needs are not the same for all the employees…THEREFORE
INDIVIDUAL ASPIRATIONS HAVE TO BE IDENTIFIED

• Expectations of today’s employees are very different…finding the right employees

and retaining them is a challenge…THEREFORE RIGHT TALENT HAS TO BE
NURTURED IN THE ORGANIZATION
 INTRODUCTION TO HRM

HUMAN RESOURCE
MANAGEMENT

MANAGERIAL OPERATIVE

EMPLOYEE
PLANNING ORGANIZING STAFFING DIRECTING CONTROLLING EMPLOYMENT COMPENSATION
RELATIONS
 INTRODUCTION TO HRM

MANAGERIAL FUNCTIONS OF HRM

PLANNING

• What is the vision of the organization…what are the objectives

• Identifying the personnel programs such as training & development to meet these objectives

• Foresee the changes in the employees’ attitudes & identify ways of effectively dealing with them

ORGANIZING

• Creating an organization structure

• Mapping People (Skills)—Roles—Processes/Tasks for effective utilization of

resources
 INTRODUCTION TO HRM
MANAGERIAL FUNCTIONS OF HRM

STAFFING

• Obtaining & maintaining competent people at all levels in the organization

• Includes recruitment, selection, placement, induction, transfer, career progression

DIRECTING

• Coordination between different departments to ensure maximum utilization of resources

CONTROLLING

• Comparing the performance against a baseline

• Training program evaluations, employee performance audits, exit interviews

Can be examples
 INTRODUCTION TO HRM

OPERATIVE FUNCTIONS OF HRM JOB

ANALYSIS

HR
INDUCTION
PLANNING

EMPLOYMENT

PLACEMENT RECRUITMENT

SELECTION
 INTRODUCTION TO HRM
What kind of job
EMPLOYMENT & people do I want!

JOB ANALYSIS:

Mapping Job Requirements to an individuals skills & motives

Involves preparation of Job Description (what kind of job) and Job specification (what kind of
person fits the job)

HUMAN RESOURCE PLANNING:

What’s my
What are the future requirements of the organization
Status Quo?

Forecasting the HR requirements to meet these future goals

Taking stock of existing manpower inventory by taking into account attrition, downsizing, retirements,
Sabbaticals…

How to develop the required HR pool

 INTRODUCTION TO HRM

How do I reach out to

EMPLOYMENT The kind of people that
I want!
RECRUITMENT:

It’s all about encouraging the candidates to apply for the job!

What are the current sources of applicants in the organization

Developing new source of applicants

Encouraging & Attracting candidates to apply

Deciding the recruitment procedure (online, referrals, advertise)

PRE PLACEMENT TALKS ARE AN EXAMPLE FOR RECRUITMENT

 INTRODUCTION TO HRM

How do I select the kind

EMPLOYMENT Of people that I want!

SELECTION:

It’s all about selecting the right candidate for the job!

Scanning the applications + CVs

Developing suitable techniques to chose the candidates (tests + GD + Interview)

Evaluating the candidate and fixing their salaries + benefits

Informing all the candidates about the results

Employing the selected candidates

 INTRODUCTION TO HRM

EMPLOYMENT How do I make sure that

They adapt to the
Organization!
PLACEMENT:

Candidate accepts the job

A mentor is assigned to the candidate

Follow-up study on how well the candidate has adjusted to the new job and the organization

INDUCTION:

Getting the employee acquainted with the new job, organization, it’s culture, colleagues, practices…procedures,
responsibilities….

Can be formal….or Informal…..is ongoing at least in the first few days!

 INTRODUCTION TO HRM

HUMAN RESOURCE DEVELOPMENT

Process of training & developing the employees to improve their knowledge, skills, and
attitude so that it meets the organization’s needs

PERFORMANCE
APPRAISAL

CAREER
PLANNING MANAGEMENT
&
HRD DEVELOPMENT
DEVELOPMENT

TRAINING
 INTRODUCTION TO HRM

HRD

PERFORMANCE APPRAISAL:

Assess the strengths and weaknesses of all the employees on the job…develop & implement a
suitable improvement plan

It Involves:

Developing a Performance Appraisal System in accordance with Organization’s needs

Developing processes so that the system can be implemented

Training the employees to conduct the appraisal

Obtain feedback on the effectiveness and improving the appraisal system

 INTRODUCTION TO HRM

HRD

TRAINING:

Systematic development of Knowledge, Skills, & Attitudes of an individual for a job!

It involves:

Identify the Organization’s needs

Identify the training needs of the individuals

Design the training program to bridge the gap (knowledge, skills, attitude)

Implement the training program

Assess the success of the training program

 INTRODUCTION TO HRM

HRD

MANAGEMENT DEVELOPMENT:

Developing the employee to meet the future challenges of the organization

Includes developing the competency of the employee along with his/her personality

It may not be as specific as a training program where the employee is taught niche knowledge and skills

CAREER PLANNING & DEVELOPMENT:

Identifying individual’s goals and facilitating their achievement…

Career plan: where the individual wants to be!

Career Development: Where the organization wants the individual to be!

 INTRODUCTION TO HRM
HRD

COMPENSATION:

Providing ADEQUATE, EQUITABLE, and FAIR compensation to all the employees

Includes Base Salary + Incentives + Bonus + Benefits

Based on Job evaluation

JOB EVALUATION:

Classifying each job based on its importance with other jobs (in the organization & industry)

Involves

Identifying suitable job evaluation techniques

Evaluating various jobs

Ascertaining the worth of jobs in each category

 INTRODUCTION TO HRM

Uses these criteria to differentiate

The jobs
Example
Of
Job Evaluation

Uses these criteria to fix the

compensation
 INTRODUCTION TO HRM
HRD

WAGE & SALARY ADMINISTRATION: Wage:

Wage:Best
Best
associated
associatedwithwith
Process of formulating and operating a suitable wage and salary hourly jobs (30
hourly jobs (30
hours
hoursaaweek
weekonon
program
the job floor; paid
the job floor; paid
$15
$15per
perhour;
hour;30*
30*
Involves 15= Wages
15= Wages

Conducting Wage & Salary Survey in the Market

Determining the wage and salary rate (using Job Analysis)

Salary:
Salary:Employee
Employee
Implementing the program compensation
compensation
quoted
quotedononannual
annual
Evaluating the effectiveness of the program basis;
basis;
Given
Giventotothe
the
employee
employeeevery
every
month
month
 INTRODUCTION TO HRM

Challenges to HRM

GOING NEW
GLOBAL TECHNOLOGY

MANAGING
MANAGING
CHANGE
HUMAN CAPITAL

RESPONDING CONTAINING
TO COSTS
MARKET
 HRM CHALLENGES

GOING GLOBAL
Different geographies

culture
expatriation

impatriation Employment laws

Business practices
Understanding
Of foreign cultures
Knowledge & Skill sets

Understanding these issues is a major challenge for organizations today

 HRM CHALLENGES

EMBRACING NEW TECHNOLOGY

Information technology
Internet
Unlimited amount of data stored & retrieved
HRIS

TECHNOLOGY
& HR APPLICATIONS
Payroll Knowledge workers lateral growth
Benefits Administration Hold more responsibilities with
Recruitment-Application Respect to planning, decision making &
Tracking Problem solving
Training & Development
Employer Self Service
Manager Self Service
Higher Productivity
Lower Administrative Costs
Speeding up of response time
Improved decision making
Better customer service
 HRM CHALLENGES

MANAGING CHANGE

Examples of change can be… CREATING A CULTURE OF TOTAL QUALITY,

CONTINUOUS IMPROVEMENT, DOWNSIZING, OUTSOURCING…

These changes can either be REACTIVE (in response to external environment)

Or PROACTIVE (initiated by the management to leverage opportunity or
Neutralize threat)

From the HR standpoint…this will mean

•Changes in responsibilities
•Job assignments
•Changes in work processes…

However, major reasons why Organizational Change projects do not yield

The desired results are because of the HR problems…
 HRM CHALLENGES

MANAGING CHANGE
Resistance to Change
Fear of modifying the status Quo

SEEN IN THE ORGANIZATION AS

• Not having a sense of urgency

•Lack of commitment and collective effort from the top management

•Leaders without Vision

•Leaders who fail to communicate the Vision

•Lack of planning short term and long term goals

•Celebrating too soon!

•Not making changes in the corporate culture

 HRM CHALLENGES

MANAGING CHANGE

Effective Change Management

• Linking change to business strategy

•Creating Quantifiable benefits

•Engaging key employees, customers, and suppliers early

•Behavioral changes

•Leading clearly and consistently

•Communicating personally and continuously

 HRM CHALLENGES
MANAGING TALENT—HUMAN CAPITAL
HUMAN CAPITAL IS THE ECONOMIC VALUE OF THE EMPLOYEES’ KNOWLEDGE,
SKILLS, and CAPABILITIES

Identifying & recruiting the best –

Right knowledge + Skills + Attitude

Training programs
Documenting the To complement this
Learning and making Employee selection
Them available to the
employees
Managing Training people
Human In skills specific
Capital To the organization and which cant
Be transferred when employee leaves

Providing platforms
Where employees can share Providing job assignments
Their knowledge—team work that offer learning & growth to employees
 HRM CHALLENGES

RESPONDING TO THE MARKET

• How well does a company understand its customers?

•How fast can it develop a new product and launch it in the market?

•How well is it able to provide customized solutions to its customers?

Total Quality Management

(TQM); Process Re-engineering
SIX SIGMA

issues
HR
Translating customer needs into
Radical redesigning of
Specific tasks; and identifying Business processes to achieve
Best way to perform each task; Dramatic results
Better quality products and customer service

Formation of the teams; Creating an environment for change

Commitment of the leadership
Training the teams;
Communicating the need for change
Performance management; Review of the processes (job descriptions;
reward management; communication Training, career planning, appraisal,
Culture training Compensation to meet the
Changed requirements
 HRM CHALLENGES
CONTAINING COSTS
Labor costs are the highest for the organizations…especially those engaged
In service/ knowledge intensive industries

The onus is on the HR managers to reduce these costs

OUTSOURCING, OFFSHORING,
DOWNSIZING: EMPLOYEE LEASING

Planned elimination of jobs Outsourcing: hiring someone from outside

Financial savings not the only reason
May be to consolidate organization’s position;
Mergers & Acquisitions; Realignment of staff
May lead to hidden costs such as:
• pension & benefits payouts
•Potential law suits by workers who have
been laid off
•Lack of right workers in the
organization when
The economy rebounds
the company to perform the internal tasks
Example: outsourcing tasks such as catering
And payroll administration
Offshoring: moving jobs overseas
•Cost savings major motivator
•India, China, Russia, Eastern Europe,
Vietnam, Philippines major vendors for
services
Employee Leasing:
• a PEO (Professional Employer Organization)
Takes over the management of smaller
company’s HR tasks for a fee