Meaning of HRM: is planning, organizing, directing & controlling of the procurement, development, compensation, integration, maintenance, separation of HR to the end that individual, organization & societal objectives are accomplished.
PM is concerned with people at work & their relationships with each other. It is defined as a set of programmes, functions, & activities designed to maximise both personal & orgnl.goals.PM mainly focused on 3 major dimensions ie, Personnel aspect, Welfare aspect, Industrial aspect.
HRM have 2 different versions- hard & soft
The ‘hard’ model focuses on close integration of human resources policies, systems & activities with business strategy in order to attain org.goals.
The ‘soft’ version is ‘developmental humanism’ model emphasizing the importance of integrating HR policies with business objectives, treating employees as valued assets.
This concept embodies that people are different from other resources like land, money, power etc which are inanimate & as such cannot be compared. Understand the potential of each individual & thus the mgmt can do the promotions, career growth etc.
Objectives of HRM
Orgnl objective: creation of effective workforce to achieve orgnl. goals.
Individual objective: satisfying employees through monetary & non-monetary devices.
Social objective: satisfaction of community & social needs.
Overview of HRM in Organization
Internal env. Functions Responsibility
Top mgmt HRP Top Mgmt
Technology Job analysis Line mgrs Objective
Org.Strgy Recruitment HR dept Attract
Size Selection Employees Retain
Structure Appraisal Motivate
External env . Compensation What level
Economy T&D Strategic Purpose
Competition Safety Managerial QWL
Law Control Operation Prodty
Role of HR Manager
- providing inputs for corporate policies
- helping line mgrs to solve problems
Re engineering traditional HR processes
Creating better performance mgmt.
- Building synergetic org. culture
Fostering & working as mediator
Bringing new perspectives
Catalyzing change through effective communication.
Human Resource Planning
Is a process of forecasting an orgn’s future demand for, & supply of, the right type of people in the right number. HRP is a sub-system in the total orgnl. planning.
HR demand forecast : estimating the future quantity & quality of people required.
HR supply forecast : measures the no. of people likely to be available from within & outside an org. The supply analysis covers
Existing human resources
Internal sources of supply
External sources of supply
The simplest way to forecast internal supply is the inflows & outflows method.
Sources of Sources of
Transfers in Current Resignations
Promotions in Personnel Demotions
Current personnel level- outflows+ inflows=internal
HR programming : Once the demand & supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time.
HR Plan Implementation : converting HR plan into action. It includes;
- Recruitment, Selection & placement
Retraining & Redeployment: New skills are to be imparted to existing staff when technology changes.
Retention Plan: covers actions which would help to reduce avoidable separations of employees.
Downsizing Plan (Redundancy): where there is surplus workforce, trimming of labor force will be necessary.
. Control & Evaluation: The HR plan should include budgets, targets, & stds.It should also clarify responsibilities for implementation & control, & establish
reporting procedures which will enable achievements to be monitored against the plan.
JOB ANALYSIS: is a process of collecting information about a job. The process of job analysis results in two sets of data:
Job title: Name of the position & code
Nature of the job.
Duties specified to be performed
Equipments & machineries used during performing his duties.
Skills, Abilities & Knowledge required for the job.
Physical effort / mental effort, hazards, supervision etc.
Use of Job Analysis:
Helps in forming org. structure:
2. Helps manpower planning:
Future job requirements
- Matching job requirements & skills
What is expected from the orgn. when he hold that post.
5. Performance Appraisal:
-Performance std. fixes.
6. Career path planning:
Job Analysis A process of obtaining all pertinent job facts
A statement containing items:
Machines, tools & equipments
Supervision given or received
A statement of human
qualifications necessary to
do the job.
Unusual sensory demands
such as sight, smell, hearing.
Recruitment: is the process of searching for prospective employees & stimulating them to apply for jobs in the orgn.
Steps in Recruitment Process:
1.Recruitment policy (mention the criteria)
2.Recruitment orgn: (a team is formed who has to do the activities)
3.A forecast of manpower. (how many people required)
Place of recruitment in selection process
personnel HRP Recruiting needed personnel Selecting Qualified personnel Placing New employee Developing Sources of Potential employees Search for Potential employee Evaluating Recruiting effectiveness Internal sources External sources Personnel research Job posting (redeployment) Employee referrals Advertising Scouting (investigation) Upgrading in same position Transferring to new job Promoting to higher responsibilities Evaluating for selection
Sources of Recruitment
Internal Sources: it refers to the sources of filling up a vacancy by the existing working force of an orgn. Some of the sources were promotions, transfers, up gradation.
External Sources: mainly from outside ie, through Adv, employment exchanges, educational institutions, labor contracts etc.
Selection: The selection procedure is the system of functions & devices adopted in a given company to ascertain whether the candidates specification are matched with the job specification & requirements or not.
Significance of selection process: if we select right candidates;
The employee contribution & commitment will be at optimum level.
Environmental factors: Both the internal & external factors affect the selection process.
Preliminary Interview: the applications received from job seekers would be subject to scrutiny so as to eliminate unqualified applicants.
Selection tests: Job seekers who pass the screening are called for tests. Different types of tests are used.
1. Ability tests (achievement test): to check how well an individual can perform task related job.
2.Aptitude test: a person’s potential to learn a given job.
3. Personality test: to measure a prospective employee’s motivation to function in a particular working envm.
4. Interest test: used to measure an individuals activity preferences.
5. Intelligence test: measure the IQ of a person.
Employment interview: can be
one-to-one: only two participants; interviewer & interviewee
sequential interview: usually utilizing the strength & knowledge-base of each interviewer, so that each interviewer can ask questions in relation to his/her subject area of each candidate, as the candidate moves from room to room.
Panel interview: consists of two or more interviewers & the figure may go up to as many as 15.
Reference & background checks: many employers request names, addresses, & telephone numbers or references for the purpose of verifying information.
Selection decision: the most critical of all the steps. The HR manager plays a crucial role in the final selection.
Physical examination: in some orgn. Fitness test is necessary. The reason is
- To detect if the individual carries any infectious diseases.
Test whether an applicant is physically fit to perform the work.
. Job offer: is the next step in selection process for those applicants who have crossed all previous hurdles. job offer is made through a letter of appointment.
. Contracts of employment: After the acceptance of offer ,certain documents need to be executed by the employer which is called attestation form. This form contains