Human Resource Management (Hrm)
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  • 1. CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT (HRM). 1
  • 2. 1.1) WHAT IS HUMAN RESOURCE MANAGEMENT? Human resource management (HRM) is the 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 the objectives of the business.The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, eg, career development, training, organization development, etc. There is a long-standing argument about where HR-related functions should be organized into large organizations, eg, "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. 2
  • 3. 1.2) FEATURES OF HUMAN RESOURCE MANAGEMENT (HRM). • HRM involves management functions like planning, organizing, directing and controlling • It involves procurement, development, maintenance of human resource • It helps to achieve individual, organizational and social objectives • HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology. • It involves team spirit and team work. 3
  • 4. 1.3) EVOLUTION OF HUMAN RESOURE MANAGEMENT (HRM) The evolution of HRM can be traced back to Kautilya Artha Shastra where he recommends that government must take active interest in public and private enterprise. He says that government must provide a proper procedure for regulating employee and employee relation In the medieval times there were examples of kings like Allaudin Khilji who regulated the market and charged fixed prices and provided fixed salaries to their people. This was done to fight inflation and provide a decent standard of living During the pre independence period of 1920 the trade union emerged. Many authors who have given the history of HRM say that HRM started because of trade union and the First World War. The Royal commission in 1931 recommended the appointment of a labour welfare officer to look into the grievances of workers. The factory act of 1942 made it compulsory to appoint a labour welfare officer if the factory had 500 or more than 500 workers. The international institute of personnel management and national institute of labour management were set up to look into problems faced by workers to provide solutions to them. The Second World War created awareness regarding workers rights and 1940’s to 1960’s saw the introduction of new technology to help workers. The 1960’s extended the scope of human resource beyond welfare. Now it was a combination of welfare, industrial relation, administration together it was called personnel management. With the second 5 year plan, heavy industries started and professional management became important. In the 70’s the focus was on efficiency of labour wile in the 80’s the focus was on new technology, making it necessary for new rules and regulations. In the 90’s the emphasis was on human values and development of people and with liberalization and changing type of working people became more and more important there by leading to HRM which is an advancement of personnel management. 4
  • 5. 1.4) HUMAN RESOURCE MANAGEMENT GOAL The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management. One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function. 1) Strategic business partner 2) Change agent 3) Employee champion 4) Administration However, many HR functions these days struggle to get beyond the roles of administration and employee champion, and are seen rather as reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value. 1.5) SCOPE OF HUMAN RESOURCE MANAGEMENT (HRM) 5
  • 6. The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows 1. Human resources planning :- Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design :- Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. 3. Recruitment and selection :- Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM. 4. Orientation and induction :- Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. 5. Training and development :- Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount. 6. Performance appraisal :- Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. 7. Compensation planning and remuneration :- There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8. Motivation, welfare, health and safety :- 6
  • 7. Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. 9. Industrial relations :- Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company. 7
  • 8. 1.5) SIGNIFICANCE / IMPORTANCE / NEED OF HUMAN RESOURCE MANAGEMENT (HRM) HRM becomes significant for business organization due to the following reasons. 1. Objective :- HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc. 2. Facilitates professional growth :- Due to proper HR policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future. 3. Better relations between union and management :- Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced. 4. Helps an individual to work in a team/group :- Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves. 5. Identifies person for the future :- Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future. 6. Allocating the jobs to the right person :- If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour turnover. 7. Improves the economy :- Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter into new business and start new ventured thus industrial development increases and the economy improves. 8
  • 9. CHAPTER 2 INTRODUCTION TO LAWKIM 9
  • 10. 2.1) COMPANY PROFILE LAWKIM is a part of the 109-year young Godrej group, which grosses over US $ 1.35 Billion (Rs.62 Billion) and has been one of the most trusted brand names in India for decades. It spans 22,000 people, 100 manufacturing locations in India & abroad, diversified into 18 companies (4 publicly traded) with operations in 10 countries. There are at least 4 Godrej products in use in every household in India. Lawkim has been a leader pioneering in India for the manufacturing of specialized motors since its inception in 1961. We have a dedicated state-of-the-art manufacturing facility in India at Shindewadi, near Pune and a Services Complex at Thane, near Mumbai. Lawkim established its name in 1965, pioneering in India the manufacture of specialized custom-built compressor motors, in technical collaboration with Emerson Electric, the giant US conglomerate. Lawkim was one of the first companies in the country to qualify for both ISO 9001 and ISO 14001 certifications. It has UL-approved motors in its range. The company also caters to the open market for motors and has introduced a wide range of domestic and agricultural pump sets. Today Lawkim is a multifaceted company, having diversified into the areas of Contact Management Services & BPO, Knowledge Management Solutions and Quality Services. In these new areas also we are aiming to create a reputation amongst our valued customers for performance, based on the values of quality, trust & commitment to provide world class services. At Lawkim, we believe that we must go beyond customer satisfaction to delight our customers. 10
  • 11. 2.2) COMPANY MANAGEMENT Senior Management: Steered by a team of highly experienced and proficient management professionals, we have kept pace with the rapids in technological growth over the last forty years and more, and are poised to ride the surge in the forthcoming years. VIJAY M. CRISHNA Managing Director, Lawkim Limited; Godrej Upstream Limited A graduate in Economics from St. Stephen’s College, University of Delhi, Mr. V. M. Crishna handled several major brands, before becoming CEO of Lawkim Ltd. taken over by M/s. Godrej in 1977. In 1991, He formed a joint venture company - Statomat Special Machines, India and went on to be appointed to the Board of Directors, Godrej- GE Appliances in 1993. In 2003, having extended Lawkim's activities to light engineering and IT Enabled Services he bought over their American partner’s Call Centre business in the US Travel vertical. When he is not attending board meetings or traveling across time-zones, Mr. Crishna enjoys trekking and participation in amateur theatre. He is on the Board of Trustees, Bombay Scottish Orphanage Society. XERCSIS. K. MARKER Executive VP, CFO & Company Secretary, Lawkim Limited Director, Godrej Upstream Limited Associated with the company’s strategies & initiatives of profit improvement, for over 16 years, Mr. Marker has a wide experience in Project Consultancy, Pharmaceutical, FMCG & Service Industry. He is a Chartered Accountant & has additional qualifications of Cost & Works Accountancy & Company Secretary-ship from prestigious Institutes in India. Besides heading the Lawkim Motors business for several years, he is also on the Board of some Godrej Associated Companies. He enjoys Western Classical Music & reading Human Psychology. ABHAY M. PENDSE Vice President – Operations, Motors Lawkim Limited A certified Sigma Black Belt from American Society for Quality, Mr. Pendse is responsible for manufacturing, engineering & quality functions for the Motors business. He has 20 years of experience in Motor industry. Besides B.E (Mechanical Engineering) he has MFM and LLB degrees added to his qualifications. 11
  • 12. ARTHUR GOMES Head - Operations, Godrej Upstream Limited Heading Operations, Quality, Training, IT & MIS across India. A certified lead auditor for ISO 9001, Arthur has completed his Leadership Management International certification from Paul J. Meyer, USA. He has 14 year's of professional experience of which 10 years has been in the BPO landscape. A Major in Economics and English Literature, he has a diploma in Marketing and a Management Degree in Travel, Tourism and Hospitality. He is also a certified Six Sigma Black Belt practitioner from Six Sigma Alchemy. He is actively involved in Kennel, and club cricket administration. ALOK SRIVASTAVA Head - Business Development, Godrej Upstream Limited Associated in the past with various organizations like Asian Paints, Mobilink-Caretel, Web-Ex Corp and Merittrac, Mr. Srivastava has more than 6 years’ experience in the Contact Management Services & BPO Sector. Instrumental in the Division's growth at 60-70% YOY for last 4 years, he has explored new avenues for revenue generation for the organization and has successfully moved clients up the value chain by providing specialized services in the Outsourcing sphere. He has a PGDBA (Marketing) besides a Bachelor’s degree in Mathematics. PRIYA IYER Head - Knowledge Management Solutions, Lawkim Limited Responsible for heading the training across businesses nationally, Ms. Iyer has more than a decade long rich experience spread over Corporate & Retail Sales, Customer Relationship & Operations. A post graduate in Early Child Education & Abnormal Behavior from St. Xavier’s College. RADHIKA SINGH Head - HRD, Lawkim Limited Responsible for HRD Functions across our businesses, Ms. Singh has more than 10 years’ Domestic as well as International experience. She is a Major in Economics and a Master in Human Resources Development. 12
  • 13. 2.3) LAWKIM’ NEW INITIATIVES. To keep pace with the latest advances in technology, we have taken the following new initiatives: Lawkim Motors • Six Sigma: A methodology that employs techniques which focus on eliminating mistakes, waste and rework. Besides 3 certified Blackbelts from American Society for Quality, USA, Lawkim has 19 internally certified Blackbelts & 47 internally ceritified Greenbelts & we are still adding to their number. Godrej Upstream • ISO 27001 (Certificate of Information Security Management from International Security Standard) • ISO 9001 (Certificate awarded for Standards of Quality) • Six Sigma COMPANY ACTIVITIES Naoroji Godrej Centre for Plant Research (NGCPR) : NGCPR is established in the year 1992 in the fond memory of Late Shri Naoroji Godrej of Godrej group of industries with an objective to carry out purposeful research in the areas of Plant biodiversity & conservation with a special reference to medicinal plants. The research center is approved as Scientific and Industrial Research center by Department of Scientific and Industrial Research organization of Government of India. The center has a pool of young scientists headed by Dr. P. Tetali. It has 2.5 hectare Botanical garden where examples of local endemic medicinal and aromatic plants are being propagated. The team is evaluating a number of commercially viable plants for various properties and to enhance their local exploitation using tissue culture and plant breeding techniques. Plants maintained at NGCPR nursery include 200 Medicinal, 40 Aromatic, 38 Wild edible, 18 Timber & Energy, 33 Bamboos, 60 Orchids, 80 Threatened & endemic species. Areas of Research : • Cultivation, Improvement and mass propagation of medicinal and aromatic plants. • Conservation and cultivation of endemic & threatened plant species. • Domestication & Improvement of wild edible and ornamental plants. • Autecological studies of selected timber, energy and plantation tree species. • Maintenance of bambusetum and orchidarium. • Development of ideal village. 13
  • 14. Conservation of Sacred Groves • Published 8 International Papers. • Published 27 National Papers. 14
  • 15. CHAPTER 3 TOOLS OF HUMAN RESOURCE MANAGEMENT USED IN LAWKIM 15
  • 16. 3.1) JOB ANALYSIS, JOB DESIGN , JOB DECRIPTION. 1) Job analysis A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. It can be explained with the help of the following diagram Job analysis Job description Job specification Job title/ name of the job Qualification Working hours Qualities Duties and responsibilities Experience Working conditions Family background Salary and incentives Training Machines to be handled on the job Interpersonal skills As mentioned in the above table job analysis is divided into 2 parts a) Job description Where the details regarding the job are given. b) Job specification Where we explain the qualities required by people applying for the job. Job design Job design is the process of a) Deciding the contents of the job. b) Deciding methods to carry out the job. c) Deciding the relationship which exists in the organization. Job analysis helps to develop job design and job design matches the requirements of the job with the human qualities required to do the job. Factors affecting job design: - There are various factors which affect job design in the company. They can be explained with the help of diagram. 16
  • 17. Factors affecting job design Organizational factors Environmental factors Behavioral factors 1. Task characteristics 1. Employee 1. Feed back availability and ability 2. Process or flow of 2. Social and cultural 2. Autonomy work in expectations organization 3. Ergonomics 3. Variety 4. Work practices Methods of job design There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows:- I. Job rotation II. Job enlargement III. Job enrichment. 17
  • 18. 3.2) HRM PLANNING/ PERSONNEL PLANNING Human resource planning:- Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. From human resource planning the organization identifies how many people it has currently and how many people will be required in future. Based on this information major human resource decisions are taken. Process of HRP/MP//steps in HRP/MP Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. The process of HRP involves various steps they can be explained with the help of the following diagram. Human resource planning Personal requirement Personal supply Forecast Forecast Comparison Differences Yes No 18
  • 19. Personal Personal Surplus Shortage (100=125) (100=75) Layoff Overtime Termination Recruitment/hiring VRS Subcontracting 1) Personnel requirement forecast: - This is the very first step in HRP process. Here the HRP department finds out department wise requirements of people for the company. The requirement consists of number of people required as well as qualification they must posses. Personnel supply forecast: - In this step, HR department finds out how many people are actually available in the departments of the company. The supply involves/includes number of people along with their qualification. 2) Comparison: - Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison a. No difference: - It is possible that personnel requirement = personnel supplied. In this case there is no difference. Hence no change is required. b. Yes, there is a difference: - There may be difference between supply and requirement. The difference may be i. Personnel surplus ii. Personnel shortage 3) Personnel surplus: - When the supply of personnel is more than the requirement, we have personnel surplus. We require 100 people, but have 125 people. That is we have a surplus of 25 people. Since extra employees increase expenditure of company the company must try to remove excess staff by methods of i. Layoff ii. Termination iii. VRS/CRS 19
  • 20. 4) Personnel shortage: - When supply is less than the requirement, we have personnel shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employee 20
  • 21. 3.3) RECRUITMENT, SELECTION AND INDUCTION 1. RECRUITMENT Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs. Objectives of recruitment Recruitment fulfills the following objectives 1. It reviews the list of objectives of the company and tries to achieve them by promoting the company in the minds of public. 2. It forecasts how many people will be required in the company. 3. It enables the company to advertise itself and attract talented people. 4. It provides different opportunities to procure human resource. Methods of recruitment/sources Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs Companies can adopt different methods of recruitment for selecting people in the company. These methods are 1. Internal sources 2. External sources The sources can be further explained with the help of following diagram Sources of recruitment (manpower supply) Internal source External sources 1. Promotion 1. Management consultant 2. Departmental exam 2. Employment agency 3. Transfer 3. Campus recruitment 4. Retirement 4. News paper advertisement 5. Internal advertisement 5. Internet advertisement 6. Employee recommendation 6. Walk in interview 21
  • 22. Internal sources of recruitment :- Internal sources of recruitment refer to obtaining people for job from inside the company. There are different methods of internal recruitment 1. Promotion :- Companies can give promotion to existing employees. This method of recruitment saves a lot of time, money and efforts because the company does not have to train the existing employee. Since the employee has already worked with the company. He is familiar with the working culture and working style. It is a method of encouraging efficient workers. 2. Departmental exam: - This method is used by government departments to select employees for higher level posts. The advertisement is put up on the notice board of the department. People who are interested must send their application to the HR department and appear for the exam. Successful candidates are given the higher-level job. The method ensures proper selection and impartiality. 3. Transfer: - Many companies adopt transfer as a method of recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of people. 4. Retirement: - Many companies call back personnel who have already retired from the organization. This is a temporary measure. The method is beneficial because it gives a sense of pride to the retired when he is called back and helps the organization to reduce recruitment selection and training cost. 5. Internal advertisement: - In this method vacancies in a particular branch are advertised in the notice board. People who are interested are asked to apply for the job. The method helps in obtaining people who are ready to shift to another branch of the same company and it is also beneficial to people who want to shift to another branch. 6. Employee recommendation: - In this method employees are asked to recommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the situation. The company is benefited because it will obtain. 22
  • 23. External methods/sources of recruitment External sources of recruitment refer to methods of recruitment to obtain people from outside the company. These methods are 1. Management consultant :- Management consultant helps the company by providing them with managerial personnel, when the company is on the look out for entry level management trainees and middle level managers. They generally approach management consultants. 2. Employment agencies :- Companies may give a contract to employment agencies that search, interview and obtain the required number of people. The method can be used to obtain lower level and middle level staff. 3. Campus recruitment: - When companies are in search of fresh graduates or new talent they opt for campus recruitment. Companies approach colleges, management, technical institutes, make a presentation about the company and the job and invite applications. Interested candidates who have applied are made to go through a series of selection test and interview before final selection. 4. News paper advertisement: - This is one of the oldest and most popular methods of recruitment. Advertisements for the job are given in leading newspapers; the details of the job and salary are also mentioned. Candidates are given a contact address where their applications must be sent and are asked to send their applications within a specified time limit. The method has maximum reach and most preferred among all other methods of recruitment. 5. Internet advertisement: - With increasing importance to Internet, companies and candidates have started using the Internet as medium of advertisement and search for jobs. There are various job sites like naukri.com and monster.com etc. candidates can also post their profiles on these sites. This method is growing in popularity. 6. Walk in interview: - Another method of recruitment, which is gaining importance, is the walk in interview method. An advertisement about the location and time of walk in interview is given in the newspaper. Candidates require to directly appearing for the interview and have to bring a copy of their C.V. with them. This method is very popular among B.P.O and call centers. 23
  • 24. 2. SELECTION- Selection can be defined as process of choosing the right person for the right job. Process of selection: - The process of selection is different in different companies; however a general procedure of selection can be framed. This process of selection can be explained with the help of following diagram Process of selection Job analysis Advertisement Application blank/form Written test Interview Medical examination Initial job offer Acceptance/rejection letter Final offer/letter of appointment Induction 1. Job analysis: - The very first step in the selection procedure is the job analysis. The HR department prepares the job description and specification for the jobs which are vacant. This gives details for the jobs which are vacant. This gives details about the name of the job, qualification, qualities required and work conditions etc. 2. Advertisement: - Based on the information collected in step 1, the HR department prepares an advertisement and publishes it in a leading news papers. The advertisement conveys details about the last date for application, the address to which the application must be sent etc. 24
  • 25. 3. Application blank/form: Application blank is the application form to be filled by the candidate when he applies for a job in the company. The application blank collects information consisting of 4 parts- 1) Personal details 2) Educational details 3) Work experience 4) Family background. 4. Written test: - The HR department screens the applications, which have been received, and those applications, which are incomplete, are rejected. The other candidates are called for the written test. Arrangement for the written test is looked after the HR department i.e. question papers, answer papers, examination centers and hall tickets etc. 5. Interview:- Candidates who have successfully cleared the test are called for an interview. The entire responsibility for conducting the interview lies with the HR department i.e. they look after the panel of interviewers, refreshments, informing candidates etc. 6. Medical examination: - The candidates who have successfully cleared the interview are asked to take a medical exam. This medical exam may be conducted by the organization itself (army). The organization may have a tie up with the hospital or the candidate may be asked to get a certificate from his family doctor. 7. Initial job offer: - Candidates who successfully clear the medical exam are given an initial job offer by the company stating the details regarding salary, terms of employment, employment bond if any etc. The candidate is given some time to think over the offer and to accept or reject. 8. Acceptance/ rejection :- Candidates who are happy with the offer send their acceptance within a specified time limit to show that they are ready to work with the company. 9. Letter of appointment/final job offer :- Candidates who send their acceptance are given the letter of appointment. The letter will state the name of the job. The salary and other benefits, number of medical leaves and casual leaves, details of employment bond if any etc. It will also state the date on which the employee is required to start duty in the company. 25
  • 26. 10. Induction :- On the date of joining the employee is introduced to the company and other employees through am elaborate induction program. 3. INDUCTION Induction = orientation Induction can be defined as a process of introducing the employee who is newly elected to the organization. When an employee is given a letter of appointment he joins the company on duty. The very first thing that the company does is, introduces the new employee to the organization and people working there. An induction program may be conducted at a particular center for all employees or at different places (branches of the company) for different employees. Normally the new employee is called together to the staff training college for the induction program. The induction starts with an introduction secession about the company, number of branches, a brief history of the company, number of products, number of countries operating in, organizational structure, culture, values, beliefs, the names of top management personnel etc. Apart from this introductory secession there will be other secessions also like secessions on behavioral science, soft skill training, secessions on giving details about the job, salary, bonus, information about different leaves that can be taken by the employee about upward mobility in the organization etc. There are different ways in which secessions can be conducted i.e. using lecture method, power point presentation, group discussion, psychological test, roll play secessions etc. The induction program concludes with the employee reporting for duty at his respective branch after induction. When he reports for duty the senior most people in the branch takes the new employee around the office and introduces to all other employees and gives information about the working of the branch. The senior people regularly stay in touch with the new employee in the first week so that he can make the new employee comfortable and help him to adjust to the company. After this the company may start a training program for the new employee. 26
  • 27. 3.4) Training and Development Wayne Cascio defines training as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.” Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program. Objectives/purpose/goals of training and development Wayne Cascio defines training as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.” The purpose of training and development can be explained as follows. 1. Improving quality of work force :- Training and development help companies to improve the quality of work done by their employees. Training programs concentrate on specific areas. There by improving the quality of work in that area. 2. Enhance employee growth :- Every employee who takes development program becomes better at his job. Training provides perfection and required practice, therefore employee’s area able to develop them professionally. 3. Prevents obsolescence :- Through training and development the employee is up to date with new technology and the fear of being thrown out of the job is reduced. 4. Assisting new comer:- Training and development programs greatly help new employees to get accustomed to new methods of working, new technology, the work culture of the company etc. 5. Bridging the gap between planning and implementation :- Plans made by companies expect people to achieve certain targets within certain time limit with certain quality for this employee performance has to be accurate and perfect. Training helps in achieving accuracy and perfection. 6. Health and safety measures:- Training and development program clearly identifies and teaches employees about the different risk involved in their job, the different problems that 27
  • 28. Methods of performance appraisal can arise and how to prevent such problems. This helps to improve the health and safety measures in the company. 3.5) PERFORMANCE APPRAISAL Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness defines performance appraisal. Performance appraisal may be conducted once in every 6 months or once in a year. The basic idea of the appraisal is to evaluate the performance of the employee, giving him a feedback. Identify areas where improvement is required so that training can be provided. Give incentives and bonus to encourage employees etc. Method of performance appraisal Wayne Casco as “the systematic description of employee’s job relevant, strength, weakness defines performance appraisal. Companies use different methods of appraisal for identifying and appraising the skills and qualities of their employees. The different methods used can be explained with the help of following diagram. Traditional method Modern method 1.Check list method 1.Role analysis 2.Confidential report 2.Assessment centers 3.Critical incident method 3.management by objective 4.Ranking method 4.Behavioral anchored rating scale 5.Graphic rating scale 5.Psychological testing 6.Narrated essay 6.Human resource accounting 7.360* Appraisal 28
  • 29. Traditional method Companies have used traditional method of performance appraisal for very long time. A common feature of these methods is they are all relatively simple and involve appraisal by one senior. 1) Check list method: - In this method the senior, the boss is given a list of questions about the junior. These questions are followed by check boxes. The superior has to put a tick mark in any one of the boxes This method can be explained with the following eg. Y N Does the employee have leadership qualities? Y N Is the employee capable of group efforts? Y N Has the employee shown analytical skills? on the job As seen in the above eg. A questioner containing questions is given to the senior. This method is an extremely simple method and does not involve a lot of time. The same set of questioners can be given foe every employee so that there is uniformity in selecting employee. 2) Confidential report: - This method is very popular in government departments to appraise IAS officers and other high level officials. In this method the senior or the boss writes a report about the junior giving him details about the performance about the employee. The +ve and – ve traits, responsibilities handled on the job and recommendations for future incentives or promotions. The report is kept highly confidential and access to the report is limited. 3) Critical incident method: - In this method critical or important incidents, which have, taken place on this job are noted down along with employee’s behavior and reaction in all these situations. Both +ve and –ve incidents are mentioned. This is followed by an analysis of the person, his abilities and talent, recommendations for the future incentives and promotions. 4) Ranking method:- In this method ranks are given to employees based on their performance. There are different methods of ranking employees. • Simple ranking method • Alternate ranking method • Paired comparison method 29
  • 30. i. Simple ranking method :- Simple ranking method refers to ranks in serial order from the best employee eg. If we have to rank 10 best employees we start with the first best employee and give him the first rank this is followed by the 2nd best and so on until all 10 have been given ranks. ii. Alternate ranking :- In this method the serial alternates between the best and the worst employee. The best employee is given rank 1 and then we move to the worst employee and give him rank 10 again to 2nd best employee and give him rank 2 and so on. iii. Paired comparison :- In this method each and every person is the group, department or team is compared with every other person in the team/group/department. The comparison is made on certain criteria and finally ranks are given. This method is superior because it compares each and every person on certain qualities and provides a ranking on that basis. 5) Graphic rating scale: - Graphic rating scale refers to using specific factors to appraise people. The entire appraisal is presented in the form of a chart. The chart contains certain columns, which indicate qualities that are being appraised, and other columns, which specify the rank to be given. Eg. Employee A Quality of work Quantity of work Intelligence Excellent Very good Good Satisfactory Poor The senior has to put a tick mark for a particular quality along with the ranking. Such charts are prepared for every employee. According to the department in which they work. Sometimes the qualities which are judged may change depending upon the department. 6) Narrated essay: - In this method the senior or the boss is supposed to write a narrative essay describing the qualities of his junior. He may describe the employees strength and 30
  • 31. weakness, analytical abilities etc. the narrative essay ends with a recommendation for future promotion or for future incentives. Modern methods Companies are increasingly using modern methods of appraisal. Now days one of the striving feature that appraisal involves is, the opinion of many people about the employee and in some cases psychological test are used to analyze the ability of employee. These methods are as follows 1. Role analysis :- In this method of appraisal the person who is being apprised is called the focal point and the members of his group who are appraising him are called role set members. These role set members identify key result areas (KRA 2 marks) (areas where you want improvement are called KRA) which have to be achieved by the employee. The KRA and their improvement will determine the amount of incentives and benefits which the employee will receive in future. The appraisal depends upon what role set members have to say about the employee. 2. Assessment centers :- Assessment centers (AC) are places where the employee’s are assessed on certain qualities talents and skills which they possess. This method is used for selection as well as for appraisal. The people who attend assessment centers are given management games, psychological test, puzzles, questioners about different management related situations etc. based on their performance in these test an games appraisal is done. 3. Management by objective :- This method was given by Petter Druckard in 1974. It was intended to be a method of group decision making. It can be use for performance appraisal also. In this method all members of the of the department starting from the lowest level employee to the highest level employee together discus, fix target goals to be achieved, plan for achieving these goals and work together to achieve them. The seniors in the department get an opportunity to observe their junior- group efforts, communication skills, knowledge levels, interest levels etc. based on this appraisal is done. 4. Behavioral anchored rating scale :- In this method the appraisal is done to test the attitude of the employee towards his job. Normally people with +ve approach or attitude view and perform their job differently as compared to people with a –ve approach. 5. Psychological testing :- 31
  • 32. In this method clinically approved psychological test are conducted to identify and appraise the employee. A feedback is given to the employee and areas of improvement are identified. 6. Human resource audit/accounting :- In this method the expenditure on the employee is compared with the income received due to the efforts of the employee. A comparison is made to find out the utility of the employee to the organization. The appraisal informs the employee about his contribution to the company and what is expected in future. 7. 360* appraisal :- In this method of appraisal and all round approach is adopted. Feedback about the employee is taken from the employee himself, his superiors, his juniors, his colleagues, customers he deals with, financial institutions and other people he deals with etc. Based on all these observations an appraisal is made and feedback is given. This is one of the most popular methods. Process of performance appraisal Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness defines performance appraisal. Process of performance appraisal followed by different companies is different. A general procedure is explained below with the help of a diagram. Process of performance appraisal Setting performance standards Communicating standards set to the employee Measuring performance Comparing performance with standard Discussing result Collective action 32
  • 33. Implementation and review 1. Setting performance standards :- In this very first step in performance appraisal the HR department decides the standards of performance i.e. they decide what exactly is expected from the employee for each and every job. Sometimes certain marking scheme may be adopted eg. A score 90/100 = excellent performance, a score os 80/100 = good. And so on. 2. Communication standard set to the employee :- Standards of performance appraisal decided in 1st step are now conveyed to the employee so that the employee will know what is expected from him and will be able to improve his performance. 3. Measuring performance :- The performance of the employee is now measure by the HR department, different methods can be used to measure performance i.e. traditional and modern method. The method used depends upon the company’s convenience. 4. Comparing performance with standard :- The performance of the employee is now judged against the standard. To understand the score achieved by him. Accordingly we come to know which category of performance the employee falls into i.e. excellent, very good, good, satisfactory etc. 5. Discussing result: - The results obtained by the employee after performance appraisal are informed or conveyed to him by the HR department. A feedback is given to the employee asking him to change certain aspects of his performance and improve them. 7. Collective action :- The employee is given a chance or opportunity to improve himself in the areas specified by the HR department. The HR department constantly receives or keeps a check on the employee’s performance and notes down improvements in performance. 8. Implementation and review :- The performance appraisal policy is to be implemented on a regular basis. A review must be done from time to time to check whether any change in policy is required. Necessary changes are made from time to time. 33
  • 34. CHAPTER 4 FIELD WORK (INTERVIEW) 34
  • 35. INTERVIEW As a part of fieldwork I visited LAMKIM PVT. LTD, there I met Mr. Ramesh Memani he is a team co-coordinator there. The profile is as follows: Corporate Office Address Lawkim Limited S.V. Road, Chitalsar, Manpada, Thane - 400610, Maharashtra, India. Telephone : 91-22 25893333 - 39 Fax : 91-22 25893030, 3367 Factory Address Lawkim Limited Gat No.431, Village Shindewadi Post : Shirwal Tal. Khandala Dist. Satara – 412 801 Telephone: 91-2169-244401- 05 Fax: 91-2169-244409 Email : Lawkim Limited > Motors - marketing@lawkimindia.com > Quality Services - q_services@lawkimindia.com > Knowledge Management Solutions - trainingsolutions@lawkimindia.com 35
  • 36. Questions that were asked to the HR manager: - Q 1. Before doing every job does your organization take up job analysis? Ans: Yes, our organization take up job analysis process by studying & collecting information related to the special operators & responsibility of specific job. It is done by systematic exploration of the activities within a job the various components of job analysis included are job description. Q2. What are the various recruitment procedure observed by the organization? Ans: When our organization feels the need to acquire manpower in the organization we try to recruit personnel firstly from the internal sources ,like we do carry internal job posting, transfers, promotions, recalls etc. if still need persists we opt for external sources which involves press advertisement, walk-ins, talk-ins, write-ins and recruitment through management consultants & private employment exchange. Q3. What are the steps taken after selection procedure? Ans: Once the selection process is done or newly selected employee is placed in a particular department for actual work. Placement is based on the qualifications & qualities of the candidates selected. Placement process is followed by Induction Orientation Program, which involves giving brief introduction about organization to newly selected employees. Q4. According to you which is the most important function of your HR department? Ans: According to me training and development activities are the most vital functions as the main purpose of training is to develop the human resources within the organization. Training is the process to improve employee knowledge, skill, attitudes and social behavior so that the performance of the organization improves considerably. Q5. How is personnel management different for HRM? Ans: HRM is more focused on talent management. It considers HRM as a business function, with a goal of effective handling of its talent as a main focus. PM is rather more focused on managing people and their jobs. Personnel Management is more of a system that is followed for handling and managing people with profitability as a main concern. 36
  • 37. HRM develops and motivates people to attain their goals rather than company’s goals and in this manner becomes more profitable Q6. Qualities and Profiles of a good HR manager Ans Qualities and profile of a HR manager are as follows: - 1. He should have EMPATHY. 2. LEADERSHIP skills are a must. 3. INSIGHT of each job and related situation. 4. CONCERN for its employees. 5. PERSUASSIVENESS Profiles of a HR manager are as follows: - 1. Must have attended at least one LEADERSHIP camp. 2. Effective SOCIAL knowledge. 3. MBA in human resources management. 4. MBA from XLRI, TISS and form IIM (L) is an added advantage. Q7. What are the Future challenges of HR in India and in corporate world? Ans: The biggest challenge for future of HR in India is its implementation and penetration in all the industries and family run businesses. The top class management has to understand its importance so as to give a boost to HR in corporate India. The biggest challenge would be to develop such policies and developments so as to generate maximum employee satisfaction and efficiency by which the corporate India will become a much happier land to work and progress in. Technically, the future will see HR in every face of life. A day might come when even a college and school will have a HR dept. Thus at those times IMPLEMENTATION will be seen as a great challenge. 37
  • 38. Q8. HR = Blessing or an evil? Ans: HR has always being a blessing to almost all organization. A simple example would be the practicing of HR in TATA’s have made its employees very loyal to company and jobs. The employees perceive the goals as their own and work hard for it they consider strikes as a sign of disloyalty towards the company. Thus HRM has always been to the positive side of the company. Q9. What will you rate HR? Good or bad for your organization? Ans: HR cannot only be rated good, but very good for our company .HR has improved the overall functioning of the company. The workers have developed interest in performing more accurately and profitably. The working conditions have changed and the atmosphere has become more amiable. Q10. What is the most important aspect of HRM? Ans: The most important aspect of HR is aligning the people’s policy to the business objectives. It is very important for a HRM to see to it that he is creating an effective environment that increases employee’s morale and interest. After all in HRM employees are considered as the customers of the organization. Q11. What are the points that are looked while employing people? Ans: Employing is not a line type of a function that can be done by following a basic procedure. It has various aspects such as: - 1. What does company want? 2. What are the situations in which company needs people? 3. Why does the company need them? 4. For how long does it want to get engaged with them viz. temporary or permanent? 5. Qualifications needed for the application of the job? 6. Training is needed or not? 7. Personal qualities of the applicant? 8. Job profile 38
  • 39. 9. Faith of the applicant towards organization and his interests? The above points are a necessity while recruiting people. Q12. How is your personal experience as a HR manager? Ans: HRM has helped me to understand people in a better manner. The complexity of human can be well managed with the help of HRM. HRM is a tool to develop good relationship with every one and in the course of time acquire leadership qualities. In short HRM makes oneself realize how people can really be an asset to an organization. Q13. What do you think is the most effective motivator of employees? Ans: HRM gives importance to human relations and thus motivation is also based on the same grounds, thus we at lawkim believe in motivating employees by giving them the perfect job profile which suits them and from which they can get their job satisfaction. Though HR gives less importance to money, but still in India money are high influencer and motivator of the employees. Thus in lawkim we make sure that we offer a right mix of motivators because each individual gets motivated by different means. For example some employee gets a great boost even if you just pat on his back. While other feels good if he gets some monetary benefit. The company always makes sure that the policies that are framed by the company are kept transparent and the employees are aware of it. Such activities act as an effective motivator. Q14. What are some of the limitations of HR? Ans:The only limitation with HR is that you cannot judge a person accurately and thus at such times HR fails to work with such people. Q15. What qualities do you look for in an employee while selection of an employee? Ans: Qualities that are been looked while employing people are as follows: - 1. Integrity 39
  • 40. 2. Flexibility 3. Initiative. 4. Foresight. 5. Understanding 6. Empathy Q16. What do you do to keep in touch with the recent HR developments? Ans: The Company has its own library and also research works conducted by lawkim gathers lot of information. The company also appoints consultants to help them in their HR activities. And lastly Internet is one of the biggest sources of information that helps the HR managers to keep in touch with the resent trends of HRM. Q17. What do you do for development of employees? Ans: Development of employees is done through their regular training and making their concepts more perfect. Mentoring the employees develops a great enthusiasm in employees and in this way they also learn new and better ways of doing their job. Q18. What qualities do seek in a B.M.S student to become a successful HRM? Ans: For a BMS student to become a HRM, He should have a high persuasiveness towards the attainment of the goals in his life. If he decides to become a HRM he should put his all efforts and zeal to get his goal i.e. to become a HRM. Q19. What are the resent trends in HRM? Ans: Recent trends have made HRM to become more focused on bottom line of the organization. Introduction of IT has made all the employees work more efficiently with lightening speed. HRM considers people as not only assets but as their profits. Godrej Upstreams ltd considers its employees as its customers and its customers as its employees. Thus lawkim is a Family that is working together for a “giving best of the services” CONCLUSION It is true that HRM is one of the subjects that have to change with times. After meeting Mr. Ramesh I was made aware with resent HRM concepts and was able to see the practical application of Human Resources Management. The best part of the interview was the answer given by Mr. Ramesh for becoming a successful HR Manager from a BMS student. I was highly influenced by his words and will make sure that I will follow them. 40
  • 41. CHAPTER 5 FINDINGS OF THE PROJECT 41
  • 42. FINDINGS After having taken the interview about the godrej upstreams pvt ltd, I have come to know about the practical aspect of human resource management. While doing the through out process I have come across the various problems that the organizations come across in their human resource management process. These challenges are needed to be treated with professional care. Here in my project I am listings out various challenges that a Human resource manager or department faces in every kind of organizations. Therefore these are my findings about the complete project on human resource management. Personnel management which is know as human resource management has adapted itself to the changing work environment, however these changes are still taking place and will continue in the future therefore the challenges before the HR manager are 1. Retention of the employees: - One of the most important challenge the HR manager faces is retention of labour force. Many companies have a very high rate of labour turnover therefore HR manager are required to take some action to reduce the turnover 2. Multicultural work force: - With the number of multi cultural companies are increasing operations in different nations. The work force consists of people from different cultures. Dealing with each of the needs, which are different, the challenge before the HR manager is integration of multicultural labour work force. 3. Women in the work force: - The number of women who have joined the work force has drastically increased over a few years. Women employees face totally different problems. They also have responsibility towards the family. The organization needs to consider this aspect also. The challenge before the HR manager lies in creating gender sensitivity and in providing a good working environment to the women employees. 4. Handicapped employees: - This section of the population normally faces a lot of problems on the job, very few organization have jobs and facilities specially designed for handicapped workers. Therefore the challenge before the HR manager lies in creating atmosphere suitable for such employees and encouraging them to work better. 42
  • 43. 5. Retrenchment for employees: - In many places companies have reduced the work force due to changing economic situations, laborers or workers who are displaced face sever problems. It also leads to a negative atmosphere and attitude among the employees. There is fear and increasing resentment against the management. The challenge before the HR manager lies in implementing the retrenchment policy without hurting the sentiments of the workers, without antagonizing the labour union and by creating positive attitude in the existing employees. 6. Change in demand of government: - Most of the time government rules keep changing. While a lot of freedom is given to companies some strict rules and regulations have also been passed. The government has also undertaken the disinvestment in certain companies due to which there is fear among the employees regarding their job. The challenge before the HR manager lies in convincing employees that their interest will not be sacrificed. 7. Initiating the process of change: - Changing the method of working, changing the attitude of people and changing the perception and values of organization have become necessary today. Although the company may want to change it is actually very difficult to make the workers accept the change. The challenge before the HR manager is to make people accept change. 43
  • 44. DATA COLLECTION METHOD The following data needed for the completion of this project report is taken from various means. These means are as follows: 1) Firstly all the information related to Human Resource Management activity is taken from the net and then college library is also used to the fullest in conjuring information related. The various projects of the last year is also referred in order to find out the structure and skeleton of the projects to be given to the university as there are certain guide lines which one has to abide by while completing the project report. 2) These informations are then formulated and manipulated in order to serve to my purpose. In order to find out the standard Human Resource activities various books of various authors are referred, also many informations are taken from tybms course book. 3) Various online books are also referred for better and clear understanding of few concepts. 4) As a part of practical understanding of the project and management related activities and function I have visited an organization named ‘Godrej-Upstream’ where I have taken an interview with one of the active member and volunteer of that institution. Therefore this interview has been of great help in making the project report successful. 44
  • 45. BIBLIOGRAPHY AND WEBLIOGRAPHY Bibliography • Human Resource Management, Vipul Prakashan, Kale- Ahmed • Human Resource Management K. Ashwathapa 45
  • 46. Webliography • http://www.hrmguide.net/Bookstore/hrmbooks.html • http://www.managementparadise.com • http://en.wikipedia.org/wiki/Public_relations. • http://www.managementhelp.org/hr_mgmnt/hr_mgmnt.htm 46