D2K Technologies       Human Resource        Management                                Prince Verma                       ...
What Is Human Resource Management?       Human Resource Management (HRM) is the function within an organization that focus...
Human Resource Management: Scope1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, plac...
Human Resource Management: FunctionsIn order to achieve the above objectives, Human Resource Management undertakes the fol...
1. Manpower PlanningManpower Planning which is also called as Human Resource Planning consists of putting rightnumber of p...
The importance of selection and placement;      To fairly and without any element of discrimination evaluate job applican...
Performance measurement uses the following indicators of performance, as well as assessments of thoseindicators.          ...
manufacturing environments, where objective criteria such as units produced prevail.                Recently, peer apprais...
2. Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of unitsor pieces produced...
employment, younger workers in particular realize that continuing to learn is the way to stay employable,said Leslie G. Gr...
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Human Resource Management

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Human Resource Management

  1. 1. D2K Technologies Human Resource Management Prince Verma 2012 D2K Technologies
  2. 2. What Is Human Resource Management? Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. It also deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. It also has a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organizations goals and objectives.Human Resource Management: NatureHuman Resource Management is a process of bringing people and organizations together so that the goalsof each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well- motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.HRM[Type text] Page 1
  3. 3. Human Resource Management: Scope1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement,transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives,productivity etc.2. Welfare aspect-It deals with working conditions and amenities such as canteens, crèches, rest andlunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.3. Industrial relations aspect-This covers union-management relations, joint consultation, collectivebargaining, grievance and disciplinary procedures, settlement of disputes, etc.Human Resource Management: Objectives To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employees job satisfaction and self-actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employees capabilities to perform the present job. To equip the employees with precision and clarity in transaction of business. To inculcate the sense of team spirit, team work and inter-team collaboration.HRM[Type text] Page 2
  4. 4. Human Resource Management: FunctionsIn order to achieve the above objectives, Human Resource Management undertakes the followingactivities:1. Human resource or manpower planning.2. Recruitment, selection and placement of personnel.3. Training and development of employees.4. Appraisal of performance of employees.5. Taking corrective steps such as transfer from one job to another.6. Remuneration of employees.7. Social security and welfare of employees.8. Setting general and specific management policy for organizational relationship.9. Collective bargaining, contract negotiation and grievance handling.10. Staffing the organization.11. Aiding in the self-development of employees at all levels.12. Developing and maintaining motivation for workers by providing incentives.13. Reviewing and auditing manpower management in the organization14. Potential Appraisal, Feedback Counseling.15. Role Analysis for job occupants.16. Job Rotation.17. Quality Circle, Organization development and Quality of Working Life.HRM[Type text] Page 3
  5. 5. 1. Manpower PlanningManpower Planning which is also called as Human Resource Planning consists of putting rightnumber of people, right kind of people at the right place, right time, doing the right things for which theyare suited for the achievement of goals of the organization. Human Resource Planning has got animportant place in the arena of industrialization. Human Resource Planning has to be a systems approachand is carried out in a set procedure. The procedure is as follows:1.Analyzing the current manpower inventory2.Making future manpower forecasts3.Developing employment programs4.Design training programme 2. Recruitment, selection and placement of personnelRecruitmentThis is the process of searching for and obtaining sufficient number and quality of potential job seekers orapplicants to enable the organization to select the most appropriate people to fill its job needs. It ispertinent to note that the process of recruitment must begin with a clear specification or understanding ofmanpower needs. It should consider the time that the manpower requirement must be met for instance theLabor market for fresh graduates with less than year experience in the National Youths Service Corps.Labor market simple means an area where employers could easily get the type of workers they need tocarry out relevant duties and employees are available to sell their labor or seek employment .Selection and PlacementSelection is a process of gathering information for the purposes of evaluating and deciding who should beemployed or hired for the short and Long-term interests of the individual and the organization.In otherwords it is the process of getting the best of most qualified candidates from the pool of job seekersadjudged to have potential for job performance.HRM[Type text] Page 4
  6. 6. The importance of selection and placement;  To fairly and without any element of discrimination evaluate job applicants in view of individual differences and capabilities.  To employ qualified and competent hands that can meet the job requirement of the organization  To place job applicants in the best interest of the organization and the individual.  To help in human resources manpower planning purposes in organization.  To reduce recruitment cost that may arise as a result of poor selection and placement exercises. 3. Training and development of employees. Employee Training and Development is a key ingredient in performance improvement. However, the first step in designing an employee training and development program is to identify the training needs. The training needs are based on what is needed to achieve the organization’s strategic objectives. Key steps for performance improvement include  Assess and define performance improvement issues and gaps  Gain management commitment for performance improvement  Develop a business plan to manage performance improvement  Establish best practices for work processes and performance standards  Provide employee training and development to develop required skills  Establish new practices that support improved performance  Measure and monitor results and provide coaching where needed 4. Appraisal of performance of employeesOnce an annual ritual, performance appraisal has become a continuous process by which an employeeunderstands of a company’s goals and his or her progress toward contributing to them are measured.Performance measurement is an ongoing activity for all managers and their subordinates.HRM[Type text] Page 5
  7. 7. Performance measurement uses the following indicators of performance, as well as assessments of thoseindicators. I. Quantity: The number of units produced, processed or sold is a good objective indicator of performance. II. Quality: The quality of work performed can be measured by several means. The percentage of work output that must be redone or is rejected is one such indicator. In a sales environment, the percentage of inquiries converted to sales is an indicator of salesmanship quality. III. Timeliness: How fast work is performed is another performance indicator that should be used with caution. In field service, the average customer’s downtime is a good indicator of timeliness. In manufacturing, it might be the number of units produced per hour. IV. Cost-Effectiveness: The cost of work performed should be used as a measure of performance only if the employee has some degree of control over costs. For example, a customer-service representative’s performance is indicated by the percentage of calls that he or she must escalate to more experienced and expensive reps. V. Absenteeism/Tardiness: An employee is obviously not performing when he or she is not at work. Other employees’ performance may be adversely impacted by absences, too. VI. Creativity: It can be difficult to quantify creativity as a performance indicator, but in many white-collar jobs, it is vitally important. Supervisors and employees should keep track of creative work examples and attempt to quantify them. VII. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well aligned with those of the company. VIII. Gossip and Other Personal Habits: They may not seem performance-related to the employee, but some personal habits, like gossip, can detract from job performance and interfere with the performance of others. The specific behaviors should be defined, and goals should be set for reducing their frequency. IX. Personal Appearance/Grooming: Most people know how to dress for work, but in many organizations, there is at least one employee who needs to be told. Examples of inappropriate appearance and grooming should be spelled out, their effects upon the employee’s performance and that of others explained, and corrective actions defined. X. Manager Appraisal: A manager appraises the employee’s performance and delivers the appraisal to the employee. Manager appraisal is by nature top-down and does not encourage the employee’s active participation. It is often met with resistance, because the employee has no investment in its development. XI. Self-Appraisal: The employee appraises his or her own performance, in many cases comparing the self-appraisal to managements review. Often, self-appraisals can highlight discrepancies between what the employee and management think are important performance factors and provide mutual feedback for meaningful adjustment of expectations. XII. Peer Appraisal: Employees in similar positions appraise an employee’s performance. This method is based on the assumption that co-workers are most familiar with an employee’s performance. Peer appraisal has long been used successfully inHRM[Type text] Page 6
  8. 8. manufacturing environments, where objective criteria such as units produced prevail. Recently, peer appraisal has expanded to white-collar professions, where soft criteria such as “works well with others” can lead to ambiguous appraisals. Peer appraisals are often effective at focusing an employee’s attention on undesirable behaviors and motivating change. XIII. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold different positions, are asked to appraise each other’s work and work styles. This approach assumes that the team’s objectives and each member’s expected contribution have been clearly defined. XIV. Assessment Center: The employee is appraised by professional assessors who may evaluate simulated or actual work activities. Objectivity is one advantage of assessment centers, which produce reviews that are not clouded by personal relationships with employees. XV. 360-Degree or “Full-Circle” Appraisal: The employee’s performance is appraised by everyone with whom he of she interacts, including managers, peers, customers and members of other departments. This is the most comprehensive and expensive way to measure performance and it is generally reserved for key employees. XVI. MBO (Management by Objectives): The employee’s achievement of objective goals set in concert with his or her manager is assessed. The MBO process begins with action statements such as, “reduce rejected parts to 5 percent.” Ongoing monitoring and review of objectives keeps the employee focused on achieving goals. At the annual review, progress toward objectives is assessed, and new goals are set. 5. Remuneration of employeesEmployee Remuneration refers to the reward or compensation given to the employees for their workperformances. Remuneration provides basic attraction to an employee to perform job efficiently andeffectively. Remuneration leads to employee motivation. Salaries constitute an important source ofincome for employees and determine their standard of living. Salaries affect the employee’s productivityand work performance. Thus the amount and method of remuneration are very important for bothmanagement and employees.There are mainly two types of Employee Remuneration 1. Time Rate Method 2. Piece Rate Method1. Time Rate Method: Under time rate system, remuneration is directly linked with the time spent ordevoted by an employee on the job. The employees are paid a fixed pre-decided amount hourly, daily,weekly or monthly irrespective of their output. It is a very simple method of remuneration. It leads tominimum wastage of resources and lesser chances of accidents. Time Rate method leads to quality outputand this method is very beneficial to new employees as they can learn their work without any reduction intheir salaries. This method encourages employee’s unity as employees of a particular group/cadre getequal salaries.HRM[Type text] Page 7
  9. 9. 2. Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of unitsor pieces produced by an employee. In this system emphasis is more on quantity output rather thanquality output. Under this system the determination of employee cost per unit is not difficult becausesalaries differ with output. There is less supervision required under this method and hence the per unitcost of production is low. This system improves the morale of the employees as the salaries are directlyrelated with their work efforts. There is greater work-efficiency in this method. How to motivate an employee???Almost all employees want to do interesting work, secure a good salary and earn recognition for theircontributions. But motivating employees takes more than money and an occasional “thank-you.” Itrequires a strategy tailored to each worker’s needs.1. Ask what they want out of work. Just knowing that an HR manager or boss is interested in a workersgoals will make many employees feel better about their jobs. It can be difficult to get a quick and accurateanswer to this question, however. Some workers may say that they want to work on a prestigious project,for example, only to discover once they have been assigned to the project that it isn’t what they expected.2. Consider each employee’s age and life stage. There are exceptions to every generalization, of course,but workers nearing the end of their careers are often less focused on the next promotion than those whoare just starting to climb the corporate ladder. Younger workers may also be less accustomed than olderones to waiting patiently in a job they don’t find interesting.3. Match motivators to the company or department culture. Again, there are exceptions, but engineersare likely to be motivated by working on cutting-edge projects. On the other hand, sales professionalstend to use money as a way to measure how well they’re doing.4. Pinpoint each employee’s personality. Some people love public praise; others are mortified by it andwould much prefer a sincere, in-person “thank-you.” Make sure you take this into account if you areplanning a ceremony to give awards or other recognition.5. Use flexibility wisely. Allowing employees to telecommute some of the time or to set their own officehours can have big benefits. It makes employees’ lives more manageable — and it shows them that theyare trusted.6. Put money in its place. How well does money motivate workers? The answer isn’t simple. Anemployee who demands a raise might really be unhappy because his or her suggestions are being ignored,for example. And surveys and experts offer different answers about how important money is, dependingon how the question is phrased.7. Don’t rely on stock options. If money is an unreliable motivator, stock options are even less likely tomotivate most workers. Employee worth goes up and down with a company’s stock price something veryfew workers feel they can control.8. Offer help with career goals. When you ask workers what kind of work they enjoy, also find out aboutwhat they’re hoping to do in the future. Giving workers opportunities to build the skills and make theconnections they need to get ahead in their careers will build loyalty and motivation.9. Help employees learn. It’s very important for workers to keep learning new skills on the job. Withpeople changing jobs more often than they used to and companies no longer promising long-termHRM[Type text] Page 8
  10. 10. employment, younger workers in particular realize that continuing to learn is the way to stay employable,said Leslie G. Griffen, managing partner of Career Management Associates, in Overland Park, Kan.“Kids today are really under pressure to keep adding knowledge,” Griffen said. “I think learning is huge:the ability to gather new knowledge on the job.”Organized classes and seminars are one way to help with this, as are tuition-reimbursement programs. Butin many cases, it’s a matter of listening to what skills a worker is interested in acquiring, then giving theperson a chance to work on a project that will develop those skills.10. Recognize that motivation isn’t always the answer. If your motivation efforts aren’t working, itmay not be your fault. “Not everyone can be motivated for that particular job,” Beasley said. If anemployee would really rather be doing something else, it may be best to encourage him or her to pursuesomething new.HRM[Type text] Page 9

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