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Human resource management
1. HUMAN
RESOURCE
MANAGEMENT
A QUICK REVISION FOR
NET/GSET EXAMINATIONS
Anuj Bhatia [BBA, M.Com, Ph.d (pur), UGC NET, GSET]
Shah Tuition Classes
Contact: avbhatia_anuj@yahoo.com, 9898251471
2. CONCEPT OF HRM
• Human Resource- “the total knowledge, skills,
creative abilities, talents and aptitudes of an
organization's workforce, as well as the value,
attitude and beliefs of the individual involved”
• Human Resource Management- “ HRM means
employing people, developing their resources,
utilizing, maintaining and compensating their
services in tune with the job and organizational
requirements with a view to contribute to the
goals of the organisation, individual and society.”
2
3. FUNCTIONS OF HRM
1. Managerial Functions
i. Planning
ii. Organizing
iii. Directing
iv. Controlling
3
4. 2. Operative Functions
1. Employment
1. Job Analysis
2. Human Resource Planning
3. Recruitment
4. Selection
5. Placement
6. Induction and Orientation
2. Human Resource Development
1. Performance Appraisal
2. Training
3. Management Development
4. Career Planning and Development
5. Internal Mobility
6. Transfer
7. Promotion
8. Demotion
9. Retention and Retrenchment
10. Change and Organisational Development
4
5. 3. Compensation
1. Job Evaluation
2. Wage and salary administration
3. Incentives
4. Bonus
5. Fringe benefits
6. Social security Measures
4. Human Relations
5. Industrial Relations
5
6. ROLE OF HRM
HR in the nations well-being
Man vis-à-vis Machine
HRM and General Management
HR system is a central Sub-system
Social Significance
Professional Significance
Significance for Individual enterprise
6
16. HUMAN RESOURCE PLANNING
• HRP means deciding the number and types of
HR required for each job, unit and the total
company for a particular future date in order to
carry out organizational activities.
• Coleman defines HRP as “ the process of
determining manpower requirements and the
means for meeting those requirements in order to
carry out the integrated plan of the
organisation.”
16
17. BENEFITS OF HRP
• Checks the corporate plan of the organization
• Offsets uncertainty and change
• Provides scope for advancement through training and
development
• Anticipate the cost of HR and formulation of Budgets
• To plan for physical facilities, working conditions etc
• Development of HR to meet organizational needs
• To meet the HR requirements in case of high turnover
• Needed to identify the areas of surplus personnel
17
18. FACTORS AFFECTING HRP
External Factors Internal Factors
Government policies
Company’s strategies
HR policy of the
Economic development
company
and supply of HRs
Formal and Informal
Business Environment
Groups
Information Technology Job Analysis
Levels of Technology Time Horizons
Natural Factors Type and Quality of
International Factors Information
Companies production
and operation policy
Trade Unions
18
19. PROCESS OF HRP
1. Deciding the objectives
2. Estimating future organizational structure and
manpower requirements
3. Auditing HR
4. Planning job requirements and job descriptions
5. Developing a HRP
19
20. JOB ANALYSIS
• JA is a procedure by which pertinent information is
obtained about a job, i.e., it is a detailed and
systematic study of information relating to the
operations and responsibilities of a specific job.
• Contents of JA:
• Job identification
• Significant characteristics of a job
• What the typical worker does
• Which equipment and materials a worker uses
• How a job is performed
• Required personnel attributes
20
21. JOB DESCRIPTION
• JD describes ‘jobs’ and not ‘job holders.’
• JD is a descriptive document
• It contains statement of JA
• Provides organizational and functional information.
• It defines the scope of job activities, major
responsibilities, and positioning of the job in the
organisation.
• It must provide worker and supervisor with a clear
idea of what the work must do to meet the demands
of the job.
21
22. Contents of a JD:
1. Job identification or organizational position
2. Job summary
3. Job duties and responsibilities
4. Relation to other
5. Supervision
6. Machine, tools and equipment
7. Working conditions
8. Hazards
22
23. JOB SPECIFICATION
• “what traits and experiences are required to the job
well?”
• JS tells what kind of person to recruit and for what
qualities that person should be tested.
• JS translates the JD in terms of the human
qualifications which are required for a successful
performance of a job.
• These Specifications are related to:
– Physical characteristics
– Psychological characteristics
– Personal characterizes or traits
– Responsibilities
– Other features of Demographic nature
23
27. RECRUITMENT
• Flippo – “ Recruitment is the process of searching for
prospective employees and stimulating them to apply
for jobs in the organisation.”
• Objectives:
– To attract people with multidimensional skills and
experiences
– To infuse fresh blood in the organisation
– To attract competent people
– To search for talent globally
– To anticipate and find people for positions that do not exists
27
28. SOURCES OF RECRUITMENT
TRADITIONAL SOURCES
Internal External
Present employees • Campus recruitment
Retrenched or Retired • Private Employment
employees Agencies/ Consultants
Dependents of Deceased,
• Public employment
exchange
Disabled, Retired and
present employees
• Professional associations
• Data Banks
• Casual Applicants
• Similar Org./Competitors
• Trade Unions
28
29. MODERN SOURCES
Internal External
Employee Referrals Walk-in
Consult in
Head Hunting
Body Shopping
M & A
Tele- Recruitment
Outsourcing
29
30. FACTORS AFFECTING RECRUITMENT
Internal Factors External Factors
• Companies pay packages • Socio-economic Factors
• Quality of work life • Supply and Demand
• Organization culture Factors
• Career planning and • Employment rate
Growth
• Company’s size
• Labour Market Conditions
• Companies Products/ • Political, Legal and Govt.
Services Factors
• Location • Information System like
• Companies Growth Rate Employment Exchanges/
• Role of Trade Union Tele-Recruitment like
• Cost of Recruitment internet
• Companies name and fame 30
31. SELECTION
The function of selecting the right employees at
right time
To choose the individual who can most
successfully perform the job from the pool of
qualified candidates.
JA, HRP and Recruitment are necessary
prerequisites of selection.
31
32. PROCESS OF SELECTION
1. Job Analysis
2. Recruitment
3. Application Blank
4. Written Examination
5. Preliminary Interview
6. Business Games
7. Tests
8. Final Interview
9. Medical Examination
10. Reference Checks
11. Line Managers Decisions
12. Job offer
13. Employment 32
33. TYPES OF TESTS
• Aptitude Test
– Intelligence test
– Emotional Quotient
– Skill Tests
– Mechanical aptitude
– Psychomotor test
– Clerical Aptitude Test
• Achievement Test
– Job Knowledge Test
– Work Sample Test
33
34. • Situational Tests
– Group Discussion
– In Basket
• Interest Test
• Personality Test
– Objective test
– Projective test
• Other Tests
– Cognitive Ability Test
– Wechsler Adult Intelligence Scale
– Wonderlic Personal Tests
– Polygraph Tests
– Honesty Tests
34
35. INDUCTION
• Induction is the process of receiving and welcoming
the employee when he firsts joins the company and
giving him basic information he needs to settle down
quickly and happily and start work.
• Lecture, Handbook, film , group seminar, are used to
impart information to the new employees about the
environment of the job and the organisation in order to
make the new employee acquaint himself with the
following heads:
– About the Company
– About the Department
– About the superiors and subordinates
35
51. TRAINING
• After Selection and Induction, training must be
provided to adjust to the job
• It is the act of increasing the knowledge and skill of an
employee for doing a particular job.
• It is an organised procedure by which people learn
knowledge and/ or skill for a definite purpose.
• Training refers to teaching and learning activities
carried o the primary purpose of helping members of
an organisation to acquire and apply the knowledge,
skills, abilities and attitudes needed by a particular
job or organisation.
51
52. TRAINING METHODS
On-the-job Methods Off-the-job Methods
Job rotation Vestibule Training
Coaching Role Playing
Job instruction Lecture Methods
Training through Conference or
step-by-step Discussion
Committee Programmed
assignments instruction
Internships
52
54. MANAGEMENT DEVELOPMENT
Systematic process of growth and development
by which the managers develop their abilities to
manage.
Concerned with improving the performance of
managers by giving them opportunities of growth
and development, which in turn depends on
organisation structure of the company.
54
55. METHODS OF MANAGEMENT
DEVELOPMENT
Off-the-job
On-the job techniques techniques
Coaching The Case study
Job Rotation Incident Method
Under Study
Role Playing
Multiple Management
In Basket method
Business game
Sensitivity training
Simulation
Grid training
Conferences
Lectures
Behaviour Modeling 55
63. SUCCESSION PLANNING
SP is to identify, develop and make the people
ready to occupy higher level jobs as and when
they fall vacant.
Succession mat be from internal or external
employees.
Organizations appraise employee potentialities,
identify training gaps for future vacancies,
develop them for higher and varied jobs.
The Scope of succession plan would be more
when the organizations grow steadily and
employees have potentialities to take up higher
responsibilities. 63
67. WAGE AND SALARY
ADMINISTRATION
Wage- the remuneration paid by the employer
for the services of hourly, daily, weekly and
fortnightly employees.
Salary- The term salary is defined as the
remuneration paid to the clerical and
managerial personnel employed on the
monthly or annual basis.
Incentive wage- the amount of remuneration
paid to a worker over and above the normal
wage as an incentive for employees
contribution to the increased production or
savings in time or material.
67
68. OBJECTIVES OF WAGES AND SALARY
ADMINISTRATION
To acquire qualified competent personnel
To retain the present employees
To secure internal and external equity
To ensure desired behaviour
To keep labour and administration cost at
minimum
To facilitate pay roll
To simplify collective bargaining
To promote organisation
68
69. FACTORS AFFECTING
WAGES/SALARY LEVEL
Remuneration in comparable industries
Firms ability to pay
Cost of Living
Productivity
Union Pressure and Strategies
Government Legislations
69
70. TYPE OF WAGES
Time Wage- workers are paid according to the
work done during a certain period of time, at the
rate of so much per hour, per day, per week, per
month or any fixed period of time.
Piece Wage- Workers are paid according to the
amount of work done or the numbers of units
completed, the rate of each unit being settled in
advance, irrespective of the time taken to do the
task.
Balanced or Debt Method- Combination of time
and piece method. 70
71. INCENTIVES
Incentive scheme is a plan or programe to motivate
individual and group performance.
It can be monetary as well as non-monetary
Factors Affecting Incentives are:
The individual and the incentives
The work situation
It Increacses the motivation in a person
71
72. FRINGE BENEFITS
Also known as:
Welfare Expenses
Wage Supplements
Subwages
Social Charges
Perquisites other than wages
Transparency Incentives
Extra Wages
Hidden Pay roll
Non-Wage Labour Costs
72
73. Meaning-
Supplements to wages received by workers at a cost to
employers.
The term encompasses a number of benefits- paid
vacations, pension, health and insurance plans etc.
Cockman – “those benefits which are supplied by an
employer to or for the benefits of an employee, and
which are not in the form of wages, salaries and time-
rated payments.”
73
74. Features
In addition to wage and salary
To stimulate their work and increase productivity
Fringe benefits represents a labour cost for employer, it is
an expenditure which he incurs on supplementing the
average money rates due to his employees.
It is never a direct reward geared to the output, effort or
merit of an employee.
It should be intended by an employer as a benefit desired
by his staff.
74
78. MORALE
A state of mind of a willingness to work which in
turn affects individuals and organizational
objectives.
Importance:
Sound superior-subordinate relations
High employee satisfaction
Reduce employee grievances
Avoidance of Industrial Disputes
Build teams and maximize contribution
78
79. Morale results in:
High commitment
Low turnover
Increase in disciplene
Reduction in conflicts
Increase in employee pride
Team building
Employee empowerment
Easy implementation of ERP
79
80. MEASUREMENT OF MORALE
Observations
Attitude surveys
Interview method
Questionnaire method
Company records and Reports
80
81. IMPROVING MORALE
It is essential to change the policy or to correct it
immediately.
Misconceptions should be removed, and the
correct position should be explained to the
employees.
A reasonable attempt should be made to educate
and convince the employees.
81
85. PERFORMANCE APPRAISAL
PA is the process of evaluating the
performance of a job in terms of its
requirements.
Process of judging the value, excellence,
qualities or status of some object, person or a
thing.
Process of evaluating the performance of an
employee ad communicating the results of the
evaluation to him for the purpose of rewarding
or developing the employee.
85
86. OBJECTIVES OF PA
Setting targets and goals as performance
standards.
Evaluating employee performance.
Identifying training and development needs.
Rewarding performance.
Improving performance.
86
87. PROCESS OF PA
Establish performance standards
Communicate performance expectations to
employees
Measure actual performance
Compare actual performance with standards
Discuss the appraisal with the employee
If necessary, initiate corrective action
87
88. METHODS OF PA
Traditional Methods Modern Methods
Ranking Method Assessment Centre
Paired Comparison MBO
Grading
BARS
Graphic rating Method
Human Resource
Forced choice Method
Accounting Method
Forced Distribution
360 Degree Appraisal
Method
Check lists
Essay Method
Critical Incidents
Field Review Method
88
Group Appraisal
104. JOB EVALUATION
JE is an attempt to determine and compare
demands which the normal performance of a
particular job makes on normal workers
without taking into account the individual
abilities or performance of the workers
concerned.
It is a process of determining the relative
worth of jobs, ranking and grading them by
compounding the duties, responsibilities,
requirements like skill, knowledge of a job
with other jobs with a view to fix compensation
payable to the concerned job holder
104
105. OBJECTIVES OF JE
To gather data and information relating to JD and
JS.
To compare the duties, responsibilities and demands
of a job with that of other jobs.
To determine hierarchy and place of various jobs in a
organisation
To determine ranks or grades of various jobs
To ensure Fair and Equitable wages
To minimize discrimination
105
106. PROCESS OF JE
1. Analyze and Prepare JD
2. Select and prepare a JE plan
3. Classify jobs
4. Install the Programme
5. Maintain the Programme
106
112. INDUSTRIAL RELATIONS
IR is used to denote the collective relationship between
management, employees and Government in any form
of industrial or non-industrial organisation.
IR deals with either the relationship between the state
and employers and workers of organization or the
relationship between the occupational organizations
themselves.
112
113. SIGNIFICANCE OF IR
To help in economic progress of a country
Establising and maintaining true industrial
democracy
Formulation of informed laboyr relations policies
Encourage collective bargaining
Help govt. in making laws
Boost Discipline and Morale of workers
113
114. CONDITIONS FOR GOOD IR
1. History of IR
2. Economic satisfaction of workers
3. Social and Psychological satisfaction of workers
4. Off-the-job conditions of workers
5. Role of Labour Unions
6. Negotiating skills and attitude of mgt. and workers
7. Public policy and legislation
8. Eduaction of workers
9. Natue of industry and business cycles
10. Systematic data base
114
115. CAUSES OF POOR IR
Uninteresting nature of Work
Political nature of Unions
Poor Wages
Occupational instability
Poor behaviour climate
115
116. EFFECTS OF POOR IR
Multiplier Effect (losses)
Fall in normal tempo
Resistance to Change
Frustration and Social Cost
116
117. SUGGESTIONS TO IMPROVE IR
Both mgt. and unions should develop
constructive attitudes towards each other
All basic policies and procedures relating to IR
should be clear to everybody in the org. and
union leaders.
The HR manager should remove distrust by
convicing the unions
The HR manager should not vie with the union
to gain workers loyalty.
Mgt. should encourage the right kind of Union
leadership
Agreement should be properly Administered.
117
118. INDUSTRIAL DISPUTES
According to Sec. 2(k) of the Industrial Dispute
Act, an ID means any dispute or difference
between employers and employers, or between
employers and workman, or between workman
and workman, which is connected with the
employment or non-employment of the terms of
employment or with the conditions of labour, of
any person.
118
119. FORMS OF DISPUTES
Strike
Stay-in strike, sit-down strike, pen-down strike or tool
down strike
Go slow
Hunger Strike
Lightening/Wild Cat Strike
Work-to-rule
Lock out
Gherao
119
120. METHOD FOR PREVENTION OF ID
Collective Bargaining
Code of Discipline
Arbitration
Permanent Negotiating Machinery and Joint
Consultative Machinery
Tripartite Bodies
120
121. TRADE UNIONS
A TU means an association of workers in in one or
more occupations- an association carried on mainly for
the purpose of protecting and advancing the members
economic interest in connection with daily work.
TU is an association of employees designed primarily
to maintain or improve the condition of employment of
its members.
121
122. NEED FOR TU
To oppose mgt.
To participate in union activities
To excersise leadership
To fall in line with others
To get employment
122
123. OBJECTIVES OF TU
To defend or improve the wages or working conditions
of workers and to bring a change in economic order
To overthrow capitalism and to bring about a
revolutionary and fundamental change in political
order.
To replace managerial dictatorship by workers
democracy and to bring about a change in the social
order.
123
126. EMPLOYEES HEALTH AND SAFETY
Industrial Accidents
An Occurrence which interrupts or interferes with the
orderly progress of work in an industrial establishment
Factories Act, 1948 defines it as “an occurrence in an
industrial establishment causing bodily injury to a person
which makes him unfit to resume his duties in the next 48
hours.”
126
127. CAUSES OF INDUSTRIAL ACCIDENTS
1. Unsafe Conditions/ Work Related Causes
1. Improperly guarded equipment
2. Defective equipment
3. Hazardous arrangement or procedure in and or around,
machines or equipment.
4. Unsafe storage, congestion, overloading.
5. Inadequate safety devices
6. Faulty lay-out, bad location
7. Insufficient light
8. Improper ventilation
9. Other work related Causes:
1. The Job Itself
2. Work schedules, accidents increase late in the day
3. Psychological climate of work place
127
128. Unsafe Acts
Operating without authority
No warning of possible danger
No safe attire or protective equipment
Throwing materials on floor carelessly
Operating or working at unsafe levels of speed
Making safety devices inoperative
Using unsafe equipments
Using equipments unsafely
Lifting improperly
Taking unsafe positions
128
129. Other Causes
Unsafe situation
Unsafe climatic conditionsbad working conditions
Rough and slippery floors
Excessive glares
Heat
Humidity
Dust and Fume laden environment
Long working hours
Unsatisfactory behaviour of supervisors
129
130. EMPLOYEE SAFETY
Every org. should have a safety policy
Safety policy depends upon:
Size of the company
The number of plants it operates
Nature of industry
Production technology
Attitude of top management
After formulating policy, a company should establish a
safety programme, to reduce the number of hazardous
factors which are likely to cause accidents, and to
develop safe working habits among its employees.
130
131. SAFETY COMMITTEE
Appraisal of employee attitude to safety programmes.
Safety engineering
The adoption of proper engineering procedures to minimize
and, if possible, eliminate work hazards is fundamental to any
organised safety programme.
Safety education and training
131
132. SAFETY OF WORKERS
PROVISIONS OF FACTORIES ACT
Fencing of Machinery
Work on or near machinery in motion
Employment of young near danger machines
Device for cutting off power
Hoists and lifts
Proper construction and maintenance of floors
and stairs
No excessive weights
Suitable precautions against excessive light
Safety of building and Machinery
132
Appointment of Safety officers
133. INDUSTRIAL HEALTH
Health- a state of complete physical, mental, and social
well-being and not merely the absence of disease or
infirmity.
Industrial Health- a system of public health and preventive
medicine which is applicable to industrial concerns.
According to ILO/WHO: Industrial Health means:
1. The prevention and maintenance of physical, mental and
social well-being of workers in all occupations.
2. Prevention among workers of ill health caused by the
working conditions
3. Protection of workers in their employment from risks
resulting from factors adverse to health
4. Placing and maintenance of workers in an occupational
environment adapted to his physical and psychological
equipment.
133
134. OCCUPATIONAL HAZARDS
According to Ronald Blake, the normal occupational
health hazards may be classified into chemical,
biological, environmental and psychological hazards.
Chemical substances cause injury when they are
absorbed by the skin or when they are ingested and
inhaled.
Gases, fumes and dust inhaled by workers causes
serious injury or death.
134
135. Among the biological hazards are included diseases
which are caused by bacteria, fungi, viruses, insects,
dietary deficiencies, imbalances, allergies, brain fever,
emotional stress and psychological concomitants of
fear, rage, worry and anxiety.
Environmental hazards may be included radiation,
noise, vibration, shocks and improper atmospheric
conditions.
Other Hazards caused due to-
Noise, Vibration, Shocks, Atmospheric Conditions etc.
135
136. HEALTH OF WORKERS
PROVISIONS OF FACTORIES ACT,
1948
1. Cleanliness
2. Disposal of wastes and effluents
3. Ventilation and temperature
4. Dust and Fume
5. Artificial Humidification
6. Overcrowding
7. Lighting
8. Drinking water
9. Latrines and Urinals
10. Spittoons 136
140. LABOUR WELFARE
Oxford Dictionary- “efforts to make life worth
living for women.”
Objectives-
To give expression to philanthropic and paternalistic
feelings.
Win employees loyalty and increase morale.
To combat trade unionism and socialist ideas.
Reduce turnover and absenteeism
Increase efficiency and productivity
Earn goodwill and enhance public image
Reduce govt. intervention
Make recruitment more effective.
140
141. PRINCIPLES OF LABOUR
WELFARE SERVICES
The Service should satisfy the real need of workers
The Services should be such as can be handled best by
group approach
The employer should not assume a benevolent posture
The cost of services should be calculable
Periodic evaluation of services, timely improvement
and feedback
141
142. SAFETY SERVICES
Components of Safety Service:
Appointment of Safety officer
Support by line mgt.
Elimination of Hazards
Job safety analysis, Placement
Personal protective equipment
Safeguarding machinery
Materials handling, Hand tools
Maintenance, Layout and Design
Housekeeping
Safety training, education and publicity
Safety inspections
Periodic Safety audits
142
143. SOCIAL SECURITY
According to the Social Security Conventions adopted
by ILO in 1952 following are the Nine Components of
Social Security
1. Medical Care
2. Sickness Benefit
3. Unemployment Benefit
4. Old-age Benefit
5. Employment injury Benefit
6. Family Benefit
7. Maternity Benefit
8. Invalidity Benefit
9. Survivor’s Benefit
143
144. SOCIAL SECURITY IN INDIA
The Workmen’s Compensation Act, 1923
The Employees State Insurance Act, 1948
The Employees Provident Fund and
Miscellaneous Provisions Act, 1952
The Maternity Benefit Act, 1961
The Payment og Gratuity Act, 1972
The Industrial Dispute Act, 1947
144
145. WORKERS’ PARTICIPATION IN
MANAGEMENT
WPM is a mental and emotional involvement of a
person in a group situation which encourages
him to contribute to goals and share
responsibilities in them.
It is Institutional and formal arrangements
resulting into creation of various participative
forums to associate worker representative with
mgt.
145
146. OBJECTIVES OF WPM
Increased productivity and efficiency
Better understanding to employees about their
role
Satisfy workers social and esteem needs
Maintain industrial peace and harmony
Tapping latent resources
Develop self management in industry
Build most dynamic HRs
Build nation through Entrepreneurship and
Economic Development 146
147. FACTORS INFLUENCING WPM
The subject matter of participation
The level of participation
The personal characteristics of the individuals
who are asked to participate in the Decision-
making
The extent of participation
147
148. FORMS OF WPM
Works Committee
Joint Management Council
Joint Councils
Shop Councils
148
149. OBSTACLES IN WPM
Conflict between employees and Management
Belief that workers are inferior to mgt.
Fact that system is management dominated
Managers are averse to share responsibility
149
![HUMAN
RESOURCE
MANAGEMENT
A QUICK REVISION FOR
NET/GSET EXAMINATIONS
Anuj Bhatia [BBA, M.Com, Ph.d (pur), UGC NET, GSET]
Shah Tuition Classes
Contact: avbhatia_anuj@yahoo.com, 9898251471](https://image.slidesharecdn.com/humanresourcemanagement-121110122521-phpapp01/85/human-resource-management-1-320.jpg)
