Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 1INTRODUCTIONTOHUMAN RESOURCE MANAGEMENTP.RAJA RAOM.B.A.(HRM), M.A.(ENG), M.Phil, (Ph.D.)
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 2INTRODUCTION TO HRMIntroduction:According to Leon C. Megginson, the term human resources (HR) can be thought of as“the total knowledge, skills, creative abilities, talents and aptitudes of an organization’sworkforce, as well as the value, attitudes and beliefs of the individuals involved.” Theterm human resources can also be explained in the sense that it is a resource like anynatural resource. It does mean that the management can get and use the skill,knowledge, ability etc., through the development of skills, tapping and utilizing themagain and again by developing a positive attitude among employees. The aspect of‘attitude’ among the human resources aspects gained significance along withglobalization. Managing of these human resources deals with the above areas and alsoprovides an answer to the question referred above. Now, we shall discuss the meaning ofhuman resources management (HRM) and other areas.Meaning and Definition of HRMIn simple sense, human resources management means employing people, developingtheir resources, utilizing, maintaining and compensating their services in tune with thejob and organizational requirements with a view to contribute to the goals of theorganization, individual and the society. Michael J. Jucius defined PersonnelManagement as “the field of management which has to do with planning, organizing,and controlling the functions of procuring, developing, maintaining and utilizing alabour force, such that the:ü Objectives for which the company is established are attained economically andeffectively,ü Objectives of all levels of personnel are serve to the highest possible degree, andü Objective of society are duly considered and served.”According to Pulapa Subba Rao, human resources management (HRM) is managing(planning, organizing, directing and controlling) the functions of employing, developing,compensating and utilizing human resources, resulting In the creation and developmentof human and industrial relations which would shape the future policies and practices ofhuman resource management, with a view to contribute proportionately (due to them)to the organizational, individual and social goals.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 3Differences between Personnel Management and Human ResourcesManagement:Personnel Management is different from Human Resources Management. Personnelmeans persons employed. Hence, personnel management views the man as economicman who works for money or salary. Human resources management treats the people ashuman beings having economic, social and psychological needs. Thus, HRM is broaderin scope compared to personnel management. John Storey differentiated personnelmanagement from human resources management.Functions of HRMThe functions of HRM can be broadly classified into two categories:Managerial functions and Operative functions.I.Managerial Functions: Managerial functions of personnel management involveplanning, organizing, directing and controlling. All these functions influence theoperative functions.v Planning:It is a predetermined course of action. Planning pertains to formulating strategiesof personnel programmers and changes in advance that will contribute to theorganizational goals. In other words, it involves planning of human resources,requirements, recruitment, selection, training etc.v Organizing:An organization is a means to an end. It is essential to carry out the determinedcourse of action. In the words of J.C. Massie, an organization is a “structure and aprocess by which a co-operative group of human beings allocates its task amongits members, identifies relationships and integrates its activities towards acommon objective.”v Directing:The next logical function after completing planning and organizing is theexecution of the plan. The basic function of personnel management at any level ismotivating, commanding, leading and activating people. The willing and effectiveco-operation of employees for the attainment of organizational goals is possiblethrough proper direction.v Controlling:After planning, organizing and directing various actives of personnelmanagement, the performance is to be verified in order to know that thepersonnel functions are performed in conformity with the actual with the plans,identification of deviations if any and correcting of identified deviations.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 4II. Operative Functions: The operative functions of human resources managementare related to specific activities of personnel management - Employment, Development,Compensation and Relations. All these functions are interacted with managerialfunctions. Further, these functions are to be performed in conjunction withmanagement functions.1. Employment: It is the first operative function of HRM. Employment is concernedwith securing and employing the people possessing required kind and level of humanresources necessary to achieve the organizational objectives. It covers the functions suchas job analysis, HR Planning, recruitment, selection, placement, induction and internalmobility.Job Analysis: It is the process of study and collection of information relating tothe operations and responsibilities of a specific job. It includes collection of data,information, facts and ideas relating to various aspects of jobs including men,machines and materials.Human Resources Planning: It is a process for determination and assuringthat the organization will have an adequate number of qualified persons,available at proper times, performing jobs which would meet the needs of theorganization and which would provide satisfaction for the individuals involved. Itinvolves estimation of present and future requirements and supply of humanresources based on objectives and long range plans of the organization.Recruitment: It is the process of searching for prospective employees andstimulating them to apply for jobs in an organization. It deals with identificationof existing sources of applicants and creation/identification of new sources ofapplicants.Selection: It is the process of ascertaining the qualifications, experiences, skills,knowledge etc., of an applicant with a view to appraising his/her suitability to ajob. This function includes:ü Framing and developing application blanks.ü Creating and developing valid and reliable testing techniques.ü Formulating interviewing techniques.ü Checking of references.ü Placement:ü Counseling the functional managers regarding placement.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 5ü Conducting follow-up study, appraising employee performance in order todetermine employee adjustment with the job.ü Correcting misplacements, if any.ü Induction and Orientation: Induction and orientation are the techniques bywhich a new employee is rehabilitated in the changed surrounding andintroduced to the practices, policies, purposes and people etc., of theorganization.II. Human Resources Development:It is the process of improving, and changing the skills, Knowledge, creative ability,aptitude, values, commitment etc., based on present and future job and organizationalrequirements. This function includes:ü Performance Appraisal: It is the systematic evaluation of individuals withrespect to their performance on the job and their potential for development. Itincludes: Developing policies, procedures and techniques.ü Training: It is the process of imparting to the employees technical andoperating skills and knowledge. It includes: 1. Identification of training needs ofthe individuals and the company. 2. Developing suitable training programmes.ü Management Development: It is the process of designing and conductingsuitable executive development programmes so as to develop the managerialand human relations skill of employees. It includes: 1. Identification of the areasin which management development is needed. 2. Conducting developmentprogrammes.ü Career Planning and Development: It is the planning of one’s career andimplementation of career plans by means of education, training, job search andacquisition of work experiences. It includes internal and external mobility.ü Internal Mobility: It includes vertical and horizontal movement of anemployee within an organization. It consists of transfer, promotion anddemotion.ü Transfer: It is the process of placing employees in the same level jobs wherethey can be utilized more effectively in consistence with their potentialities andneeds of the employees and the organization. It also deals with:1. Developing transfer policies and procedures. 2. Guiding employees and line
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 6management on transfers.ü Promotion: It deals with upward reassignment given to an employee in theorganization to occupy higher position which commands better status and/orpay keeping in view the human resources of the employees and the jobrequirements.ü Demotion: It deals with downward reassignment to an employee in theorganization.ü Retention and Retrenchment Management: Employers prefer to retainmore talented employees while they retrench less talented employees.Employers modify existing human resource strategies and craft new strategiesin order to pay more salaries provide more benefits and create high quality ofwork life to retain the best employees. And managements pay less to the lesstalented employees and plan to retrench the misfits as well as unwantedemployees depending upon the negative business trends.ü Change and Organisation Development: Change implies the creation ofimbalances in the existent pattern or situation. Organisation development is aplanned process designed process designed to improve organizationaleffectiveness and health through modifications in individual and groupbehaviour, culture and systems of the organization using knowledge andtechnology of applied behavioural sciences.III. Compensation:It is the process of providing adequate and fair remuneration to the employees. Itincludes job evaluation, wage and salary administration, incentives, bonus, fringebenefits, social security measures etc.v Job Evaluation: It is the process of determining relative worth of jobs.• Select suitable job evaluation techniques.• Classify jobs into various categories.• Determining relative value of jobs in various categories.v Wage and Salary Administration: This is the process of developing andoperating a suitable wage and salary programme. It covers:• Conducting wage and salary survey.• Determining wage and salary rates based on various factors.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 7• Administering wage and salary programmes.• Evaluating its effectiveness.v Incentives: It is the process of formulating, administering and revising theschemes of financial incentives in addition to regular payment of wages andsalary.It includes:• Formulating incentive payment schemes.• Helping functional managers on the operation.• Review them periodically to evaluate effectiveness.v Bonus: It includes payment of statutory bonus according to the Payment ofBonus Act, 1965 and its latest amendments.v Fringe Benefits: These are the various benefits at the fringe of the wage.Management provides these benefits to motivate the employees and to meettheir life’s contingencies.These benefits include:ü Disablement benefit.ü Housing facilities.ü Educational facilities to employees and children.ü Canteen facilities.ü Recreational facilities.ü Conveyance facilities.ü Credit facilities.ü Legal clinics.ü Medical, maternity and welfare facilities.ü Company stores.v Social Security Measures: Managements provide social security to theiremployees in addition to the fringe benefits. These measures include:¶ Workmen’s compensation to those workers (or their dependents) whoinvolve in accidents.¶ Maternity benefits to women employees. Sickness benefits and medicalbenefits.¶ Disablement benefits/allowance.¶ Dependent benefits.¶ Retirement benefits like provident fund, pension, gratuity etc.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 8IV. Human Relations: Practicing various human resources policies and programmeslike employment, development and compensation and interaction among employeescreate a sense of relationship between the individual worker and management, amongworkers and trade unions and the management. It is the process of interaction amonghuman beings. Human relations is an area of management in integrating people intowork situations in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. It includes:¶ Understanding and applying the models of perception, personality,learning, intra and inter-personal relations, intra and inter-group relations.¶ Motivating the employees.¶ Boosting employee morale.¶ Developing the communication skills.¶ Developing the leadership skills.¶ Redressing employee grievances properly and in time b means of a wellformulated grievance procedure.¶ Handling disciplinary cases by means of an established disciplinaryprocedure.¶ Counseling the employees in solving their personal, family and workproblems and releasing their stress, strain and tensions.¶ Providing a comfortable work environment by reducing fatigue, monotonyboredom and industrial accidents.¶ Improving quality of work life of employees through participation andother means.V. Industrial Relations: The term ‘industrial relations’ refers to the study ofrelations among employees, employers, government and trade unions. Industrialrelations include:ü Indian labour marketü Trade unionismü Collective bargainingü Industrial conflictsü Workers’ participation in management andü Quality circles.VI. Recent Trends in HRM: Human Resources Management has beenadvancing at a fast rate. The recent trends in HRM include:¶ Quality of work life¶ Total quality in human resources¶ HR accounting, audit and research and
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 9¶ Recent techniques of HRM.SEOPE OF HUMAN RESOURCES MANAGEMENTThe scope of human resources management in the modern days is vast. In fact, thescope of HRM was limited to employment and maintenance of and payment of wage andsalary. The scope gradually enlarged to providing welfare facilities, motivation,performance appraisal, human resources management, maintenance of humanrelations, strategic human resources and the like. The scope has been continuouslyenlarging.The scope of Human Resources Management includes:ÿ Objectives of HRMÿ Organisation of HRMÿ Strategic HRMÿ Employmentÿ Developmentÿ Wage and salary administration/compensationÿ Maintenanceÿ Motivationÿ Industrial relationsÿ Participative management andÿ Recent developments in HRM.IMPORTANCE OF HUMAN RESOURCES MANAGEMENTHuman resources play a crucial role in the development process of modern economics.Arthur Lewis observed, “there are great differences in development countries whichseem to have roughly equal resources, so it is necessary to enquire into the difference inhuman behaviour.” It is often felt that though the exploitation of natural resources,availability of physical and financial resources and international aid play prominentroles in the growth of modern economies, none of these factors is more significant thanefficient and committed manpower. It is in fact said that all development comes fromthe human mind. Human Resources in the Nation’s Well-beingA nation with abundance of physical resources will not benefit itself unless humanresources make use of them. In fact, human resources with right attitude are solelyresponsible for making use of national resources and for the transformation oftraditional economies into the modern industrial and knowledge economies. Man Vis-à-
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 10vis Machine Most of the problems in organizational sectional sections are human andsocial rather than physical, technical or economic. No industry can be rendered efficient,so long as the basic fact remains unrecognized that it is principally human. It is not amass of machines and technical processes but a body of men.HRM and General Management: Management of an organisational in moderneconomies is not only complex and sophisticated but it is also vital influencing theeconomic growth of a country. One of the fundamental tasks of management is tomanage human resources in the service of the economic objectives of the enterprise.Successful management depends not solely, but significantly upon the ability to predictand control human behaviour.Role of HRM: Human Resources Management plays the most crucial role in themanagement of an organization. Human resources play crucial role in the conversionprocess of inputs. Product design, quality maintenance, rendering services etc., dependupon the efficiency of human resources. Similarly, human resources plays critical role inmarketing the products and services. Human resource also plays significant role inmanaging finances and managing information systems.Objectives of HRM: Objectives are pre-determined goals to which individual or groupactivity in an organization is directed. Objectives of HRM are influenced by socialobjectives, organizational objectives, functional objectives and individual objectives.Institutions are instituted to attain certain specific objectives. The objectives of theeconomic institutions are mostly to earn profits, and that educational institutions aremostly to impart education and/or conduct research so on and so forth. However, thefundamental objective of any organization is survival. Organizations are not justsatisfied with this goal. Further, the goal of most of the organisations is growth and/orprofits.The objectives of HRM may be as follows:µ To create and utilize able and motivated workforce, to accomplish the basicorganizational goals.µ To establish and maintain sound organizational structure and desirable workingrelationships among all the members of the organization.µ To secure the integration of individual and groups within the organization by co-ordination of the individual and group goals with those of the organization.µ To create facilities and opportunities for individual or group development so as tomatch it with the growth of the organization.µ To attain an effective utilization of human resources in the achievement oforganizational goals.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 11µ To identify and satisfy individual and group needs by providing adequate andequitable wages, incentives , employee benefits and social security and measuresfor challenging work, prestige, recognition, security, status etc.HRM Objectives at Wiproü To respect the individual, as people are the greatest assets.ü To govern individual and company relationships with the higheststandard of conduct and integrity.ü To be close to the customer through employees.ü To achieve and maintain leadership in people management.HRM Policies, Procedures and Programmes:After the establishment of objectives of HRM, human resources policies are to beformulated Policies are general statements that guide thinking and action in decision-making.Definition of HRM Policy: A Policy is a plan of action. Brewster and Richbell definedHRM policies as, “set of proposals and actions that act as a reference point for managersin their dealings with employees”. “HR polices constitute guides to action. They furnishthe general standards or bases on which decisions are reached. Their genesis lies in anorganisation”s values, philosophy, concepts and principles”. HR policies guide thecourse of action intended to accomplish personnel objectives.What is HRM Procedure?Policies are general instructions whereas procedures are specific applications. Aprocedure is a well thought out course of action. It prescribes the specific manner inwhich a piece of work is to be done. Procedures are called “action guidelines.” They aregenerally derived from policies. Where policies define a broad field, procedures show asequence of activities within that area. The emphasis is on chronological, step-by-stepsequence of required actions. For instance, a student is required to complete severalitemized steps in order to register himself to complete several itemized steps for coursesin a university. The basic purpose of a procedure is to spell out clearly the way one is togo about doing something.Role of HR Manager:Human Resources Manager plays a vital role in the modern organization. He playsvarious strategic roles at different levels in the organization. Te roles of the HR Managerinclude roles of conscience, of a counselor, a mediator, a company spokesman, aproblem solver and a change agent.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 12µ The Conscience Role: The conscience role is that of a humanitarian whoreminds the management of its morals and obligations to its employees.µ The Counsellor: Employees who are dissatisfied with the present job approachthe HR manager for counseling. In addition, employees facing various problemslike marital, health, children education/marriage, mental, physical and careeralso approach the HR managers. The HR Manager counsels and consults theemployees and offers suggestions to solve/overcome the problems.µ The Mediator: As a mediator, the HR manager plays the role of a peace-maker.He settles the disputes between employees and the management. He acts as aliaison and communication link between bothµ The Spokesman: He is a frequent spokesman for of representative of thecompany.µ The Problem-solver: He acts as a problem solver with respect to the issuesthat involve human resources management an overall long range organizationalplanning.µ The Change Agent: He acts as a change agent and introduces changes invarious existing programmes.JOB DESIGNJob design is defined as the process of deciding on the content of a job in terms of dutiesand responsibilities of the jobholders; on the methods to be used in carrying out the job,in terms of techniques, systems and procedures and on the relationships that shouldexist between the job holder and his superiors, subordinates and colleagues. Factoraffecting job design include organizational factors, environmental factors andbehavioural factors. Two important goals of job design:µ To meet the organizational requirements such as higher productivity, operationalefficiency, quality of product/service etc., andµ To satisfy the needs of the individual employees like interests, challenges,achievement or accomplishment etc. Finally, the goal of the job design is tointegrate the needs of the individual with the organizational requirements.Approaches to job Design: There are three important approaches to job design viz.,¶ (i) engineering approach¶ (ii) human approach and¶ (iii) job characteristics approach.i. Engineering Approach: This approach which studies the workscientifically is based on scientific management principles. These principlesseem to be quite rational and appealing as they point towards increased
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 13organizational performance.ii. Human Approach: Human relations approach to job design recognizes theneed to design the jobs which are interesting and rewarding.iii. Job Characteristics Approach: This approach assumes that employeeswill work hard when they are rewarded for the work they do and when thework gives them satisfaction. Therefore, motivation, satisfaction andperformance should be integrated in the job design. Jobs with skill variety,task identity, task significance, autonomy and feedback are called core jobdimensions. Core job dimensions will motivate the employees and result injob satisfaction and high performance.Job Rotation:Job rotation refers to the movement of an employee from one job to another. Jobsthemselves are not actually changed, only the employees are rotated among variousjobs. An employee who works on a routine/respective job moves to and works onanother job for some hours/days/months and backs up to the first job. This measurerelieves the employee from boredom and monotony, improves employee’s skillsregarding various jobs, prepares the competent employees and provides competitiveadvantage to the company These measures also improves worker’s self-image andprovides personal growth. However, frequent job rotations are not advisable in viewof their negative impact on the orgsnisation and the employee.Job Enlargement:Job enlargement means adding more and different tasks to a specialized job toprovide greater variety. This process is called horizontal job loading or horizontal jobenlargement. Job enlargement is a horizontal slice of the organization. It tacklesdissatisfaction and reduces monotony by increasing the variety and scope of tasks.This technique leads to specialization, it improves worker satisfaction, quality ofproduction and overall efficiency of the organization.Job Enrichment:Job enrichment loads the job vertically. Job enrichment means adding duties andresponsibilities that will provide for skill variety, task identity, task significance,autonomy and feedback on job performance. It tries to deal with dissatisfaction byincreasing job depth as work activities from a vertical slice of the organizational unitare combined in one job. As work becomes more challenging and workerresponsibility increases, motivation and enthusiasm also increase. Dale S. Beach hassuggested specific action steps for designing enriched jobs. They are:
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 14ü Creation of natural or logical work units,ü Combining several duties, requiring various skills into each job,ü The employee should have direct contact and knowledge about the people forwhom his product is meant,ü Vertical job loading is to incorporate some planning and controlling duties intothe job andü Feedback information should be provided to employees to correct and improvetheir performance.JOB ANALYSISProcurement is the first operative function of personnel management,which can be sub-divided into various sub-functions like human resourcesplanning, recruitment and selection. Management should determine the kind ofpersonnel required for a job and the number of persons to be employed. Theorganization should also find out the right man for the right job in the right time.The knowledge of the job is essential to perform these functions. In addition,establishment of the scientific standard in advance is comparing the applicantswith the job and to select the suitable personnel. This standard stipulates theminimum acceptable qualifications, skills and qualities required for adequate jobperformance. Stipulating the standard requires the knowledge regarding jobdesign, study of the job duties and responsibilities, requirements of the job,human abilities and qualities etc. job analyst is needed to know all thesefunctions and to perform various functions of HRM.¶ Job Terminology: Description of technical terminology is highly necessary inorder to facilitate the study of a job analysis. So, it is desirable to define the termsrelated to job analysis like task, position, job, occupation, job analysis, jobdescription, job specification and job classification.¶ Task: A task is an action or related group of action designed to produce a definiteoutcome or result.¶ Position: A position is a group of similar tasks and responsibilities assigned toone individual. The term is used in this narrow technical sense to facilitate moreprecise discussion of the job analysis technique.¶ Job: A job is “a group of positions that are similar as to the kind and level ofwork.” In some instances, only one position may be involved, simply because noother similar position exists. For example, in the small firm the position ofpersonnel manager also constitutes a job since there is only one personnel
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 15manager position in the organization. Further, there may be six employees, “all ofwhom are classified under the same title, yet each may perform slightly differentwork.” For example, there may be five or six cashiers in a large commercial balkbranch who may do different work.Occupation: An occupation “is a group of jobs that are similar as to the kind ofwork land are found throughout an industry or the entire country.” Anoccupation is la category of work found in many firms.¶ Job Analysis: The U.S. Department of Labour defined job analysis as “theprocess of determining, by observation and study and reporting pertinentinformation relating to the nature of a specific job. It is the determination of thetasks which comprise the job and of the skills, knowledge, abilities andresponsibilities required of the worker of a successful performance and whichdifferentiate one job from all others.”The aspects of job analysis include job description and jobspecification.¶ Job Description: A job description is “an organized, factual statement of theduties and responsibilities of a specific job.” In brief, it should tell what is to bedone, how it is done and why? It is a standard of function, in that it defines theappropriate and authorized content of a job.¶ Job Specification: A job specification is “a statement of the minimumacceptable human qualities necessary to perform a job properly.” In contrast tothe job description, it is a standard of personnel and designates the qualitiesrequired for acceptable performance.¶ Job Classification: A job classification is “a grouping of jobs on some specifiedbasis such as the kind of work or pay.” For example, a clerk, a teacher, anengineer, a chemist etc.Process of job AnalysisJob can be analysed through a process, which consists of seven basic steps. These stepsconsist of strategies, a collection of background information, selection of backgroundinformation, selection of job to be analysed, collection of job analysis data, developing ajob description, job specification and employee specification.¯ Strategies: The strategies of the company are the basis for any organizationalactivity including job analysis. If the strategy implementation needs innovativeskills and autonomy, they should be included in the job analysis.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 16According to William P. Anthony the companies have to make four strategicchoices viz.ü The extent of employee involvement in job analysisü The level of details of job analysisü Timing and frequency of analysis andü Past-oriented vs. future-oriented job analysis.¯ Collection of Background Information: Background information consistsof organization charts class specifications and existing job descriptions.Organization charts show the relation of the job with other jobs in the overallorganizations. Class-specifications describe the general requirements of the classof job to which this particular job belongs. The existing job description providesa good starting point for job analysis.¯ Selection of Representative Position to be analysed: It would be toodifficult and too time consuming to analyse all the jobs. So, the job analyst has toselect some of the representative positions in order to analyse them.iv. Collection of job Analysis Data: This step involves actually analyzing a job bycollecting data on features of the job, required employee behaviour and humanrequirements.¯ Developing a job Description: This step involves describing the contents ofthe job in terms of functions, duties, responsibilities, operations etc. Theincumbent of the job is expected to discharge the duties and responsibilities andperform the functions and operations listed in job description.¯ Developing a job Specification: This step involves conversion of the jobdescription statements into a job specification. Job specification or jobrequirements describe the personal qualities, traits, skills, knowledge andbackground necessary for getting the job done.¯ Developing Employee Specification: This final step involves conversion ofspecifications of human qualities under job specification into an employeespecification. Employee specification describes physical qualification,educational qualifications, experience etc., which specify that the candidate withthese qualities possesses the minimum human qualities listed in the jobspecification.Job Description:Job description is an important document which is basically descriptive in nature andcontains a statement of job analysis. It serves to identify a job for consideration by other
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 17job analysts. It tells us what should be done, why it should be done, and where it shouldbe performed.Characteristics of Good job Description: Earnest Dale developed the followinghints for writing the job description:µ The job description should indicate the scope and nature of the work including allimportant relationships.µ (ii) The job description should be clear regarding the work of the position, dutiesetc.µ (iii) More specific words should be selected to showü (a) the kind of work,ü (b) the degree of complexity,ü (c) the degree of skill required,ü (d) the extent t which problems are standardized,ü (e) the extent of worker’s responsibility for each phase of the work andü (f) the degree and type of accountability.Action words such as analyse, gather, plan, confirm deliver, maintain, supervise andrecommend should be used.µ (iv) Supervisory responsibility should be shown to the incumbents.Brief and accurate statements should be used in order to accomplish the purpose.µ (v) Utility of the description in meeting the basic requirements should be checkedfrom the extent of understanding the job by reading the job description by a newemployeeThe Content of Job DescriptionThe job description normally contains the information on the following lines:¯ Job title¯ Organizational location of the job¯ Supervision given and received¯ Materials, tools, machinery and equipment worked with¯ Designation of the immediate superiors and subordinates¯ Salary levels: Pay , D.A., other allowances, bonus, incentive wage, method ofpayment, hours of work, shift and break¯ Complete list of duties to e performed separated according to daily, weekly,monthly and casual, estimated time to be spent on each duty¯ Definition of unusual terms¯ Conditions of work: location, time, speed of work, accuracy, health hazardsand accident hazards¯ Training and development facilities and¯ Promotional chances and channels.JOB SPECIFICATION
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 18It is a written statement of qualifications, traits, physical and mental characteristics thatan individual must possess to perform the job duties and discharge responsibilitieseffectively.Job Specification Information:The first step in the programme of job specification is to prepare a list of all the jobs inthe company and where they are located. The second step is to secure and write up theinformation about each of the jobs in a company. Usually, this information includes:ÿ i. physical specifications,ÿ ii. mental specifications,ÿ iii. emotional and social specifications andÿ iv. behavioural specifications.¶ Physical specifications: Physical specifications include the physicalqualifications or physical capacities which vary from job to job. Physicalqualifications or capacities include physical features like height, weight, chest,vision, hearing, ability to lift weight, ability to carry weight, health, age, capacityto use or operate machines, tools equipment etc.¶ ii. Mental specifications: Mental specifications include ability to perform,arithmetical calculations to interpret data, information blueprints, to readelectrical circuits, ability to plan, reading abilities, scientific abilities, judgment,ability to concentrate, ability to handle variable factors, general intelligence,memory etc.¶ iii. Emotional and social specifications: Emotional and social specificationsare more important for the post of managers, supervisors, foremen etc. Theseinclude emotional stability, flexibility, social adaptability in human relationship,personal appearance including dress, posture, poise, features and voice requiredby the job.¶ iv. Behavioural specifications: Behavioural specifications play an importantrole in selecting the candidates for higher level jobs in the organizationalhierarchy. This specification seeks to describe the acts of managers rather thanthe traits that cause the acts. These specifications include judgments, research,creativity, teaching ability, maturity (capable of accepting responsibility) trial ofconciliation, self-reliance (self-starter sticks to own decisions), dominance (givingorders in a personal way) etc.Meaning & Objectives of HR Planning:
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 19In simple terms, human resource planning means deciding the number and type of thehuman resources required for each job, unit and the total company for a particularfuture date in order to carry our organizational activities. E.W. Vetter viewed humanresources planning as “a process by which an organization should move from its currentmanpower position to its desired manpower position. Through planning management,strive to have the right number and right kind of people at the right place at the righttime, doing things which result in both the organization and the individual receivingmaximum long-run benefit.”Objectives of Human Resources Planning: The important objectives of manpowerplanning in an organization areØ (i)to recruit and retain the human resources of required quantity and quality.Ø (ii) to foresee the employee turnover and make the arrangements for minimizingturnover and filling up of consequent vacancies.Ø (iii) to meet the needs of the programmes of expansion, diversification etc.:Ø (iv) to foresee the impact of technology on work, existing employees and futurehuman resource requirements.Ø (v) to improve the standards, skill, knowledge, ability, discipline etc.Ø (vi) to assess the surplus of shortage of human resources and take measuresaccordingly;Ø (vii) to maintain congenial industrial relations by maintaining optimum level andstructure of human resources;Ø (viii) to minimize imbalances caused due to non-availability of human resourcesof the right kind, right number in right time and right place;Ø (ix) to make the best use of its human resources andØ (x) to estimate the cost of human resources.Benefits of HR Planning:¶ Human Resources Planning (HRP) anticipates not only the required kind andnumber of employees but also determines the action plan for all the functions ofpersonnel management. The major benefits of human resources planning are:¶ It checks the corporate plan of the organization.¶ It offsets uncertainty and change. But the HRP offsets uncertainties and changesto the maximum extent possible and enables the organization to have right menat the right time and in the right place.¶ It provides scope for advancement and development of employees training,development etc.Factors Affecting HR Planning:
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 20Several factors affect HRP. These factors can be classified into external factors andinternal factors.External Factors: External Factors include:Ø (i) Government Policies: Policies of the government like labour policy, industrialrelations policy, policy towards reserving certain jobs for different communitiesand sons-of the-soil etc.,Ø (ii) Level of Economic Development: Level of economic development determinesthe level of HRD in the country and thereby the supply of human resources inthe future in the country.Ø (iii) Business Environment: External business environmental factors influencethe volume and mix of production and thereby the future demand for humanresources.Ø (iv) Information Technology: Information technology bought amazing shifts inthe way how do businesses operate? These shifts include business processreengineering, enterprise resources planning and supply drain management.Ø (v) Level of Technology: Level of technology determines the kind of humanresources required.Ø (vi) International Factors: International factors like the demand for and supplyof human resources in various countries.Internal Factors : Internal Factors affecting HRP include:ü (i) Company strategies: Company’s polices and strategies relating to expansion,diversification, alliances etc. determine the human resources demand in terms ofquality and quality.ü (ii) Human resources policies: Human resources policies of the companyregarding quality of human resources, compensation level, quality of work lifeetc. influence human resources plan.ü (iii) Job Analysis: Fundamentally, human resources plan is based on job analysis,job description and job specification. Thus, the job analysis determines the kindof employees required.ü (iv) Time horizons: Companies with a stable competitive environment can planfor the long run, whereas firms with and unstable competitive environment canplan for only short-term range. Exhibit 4.2 presents the degree of uncertainty andlength of the planning period.ü (v) Type and quality of information: Any planning process needs qualitative andaccurate information. This is more s with human resources plan. Exhibit 4.3presents HRP information.
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 21ü (vi) Company’s production/operations policy: Company’s policy regarding howmuch to produce and how much to buy from outside to prepare a final productinfluences the number and kind of people required.ü (vii) Trade unions: Influence of trade unions regarding the number of workinghours per week, recruitment sources etc., and affect HRP.The Human Resource Information System (HRIS)The Human Resource Information System (HRIS) is a software or online solution forthe data entry, data tracking, and data information needs of the Human Resources,payroll, management, and accounting functions within a business. Normally packagedas a data base, hundreds of companies sell some form of HRIS and every HRIS hasdifferent capabilities. Pick your HRIS carefully based on the capabilities you need inyour company.The Human Resource Information Systems (HRIS) provide:þ Management of all employee information.þ Reporting and analysis of employee information.þ Company-related documents such as employee handbooks, emergencyevacuation procedures, and safety guidelines.þ Benefits administration including enrollment, status changes, and personalinformation updating.þ Complete integration with payroll and other company financial software andaccounting systems.þ Applicant and resume management.The HRIS that most effectively serves companies tracks:þ attendance,þ pay raises and history,þ pay grades and positions held,þ performance development plans,þ training received,þ disciplinary action received,þ personal employee information, and occasionally,þ management and key employee succession plans,þ high potential employee identification, andþ applicant tracking, interviewing, and selection.An effective HRIS provides information on just about anything the company needs totrack and analyze about employees, former employees, and applicants. Your companywill need to select a Human Resources Information System and customize it to meetyour needs. With an appropriate HRIS, Human Resources staff enables employees to do
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 22their own benefits updates and address changes, thus freeing HR staff for more strategicfunctions. Additionally, data necessary for employee management, knowledgedevelopment, career growth and development, and equal treatment is facilitated.Finally, managers can access the information they need to legally, ethically, andeffectively support the success of their reporting employees.Strategic HR Planning:Strategic HR planning is an important component of strategic HR management. It linksHR management directly to the strategic plan of your organization. Most mid- to largesized organizations have a strategic plan that guides it in successfully meeting itsmission. Organizations routinely complete financial plans to ensure they achieveorganizational goals and while workforce plans are not as common, they are just asimportant.Strategic HR management is defined as: Integrating human resource managementstrategies and systems to achieve the overall mission, strategies, and success of the firmwhile meeting the needs of employees and other stakeholders.The overall purpose of strategic HR planning is to:ü Ensure adequate human resources to meet the strategic goals and operationalplans of your organizationü the right people with the right skills at the right timeKeep up with social, economic, legislative and technological trends that impacton human resources in your area and in the sectorRemain flexible so that your organization can manage change if the future isdifferent than anticipated.ü Strategic HR planning predicts the future HR management needs of theorganization after analyzing the organization’s current human resources, theexternal labour market and the future HR environment that the organization willbe operating in.The strategic HR planning process: The strategic HR planning process has foursteps:þ Assessing the current HR capacityþ Forecasting HR requirementsþ Gap analysisþ Developing HR strategies to support organizational strategiesþ Assessing current HR capacityBased on the organization’s strategic plan, the first step in the strategic HR planningprocess is to assess the current HR capacity of the organization. The knowledge, skills
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 23and abilities of your current staff need to be identified. This can be done by developing askills inventory for each employee.Forecasting HR requirements: The next step is to forecast HR needs for the futurebased on the strategic goals of the organization. Realistic forecasting of humanresources involves estimating both demand and supply.Gap analysis: The next step is to determine the gap between where your organizationwants to be in the future and where you are now. The gap analysis includes identifyingthe number of staff and the skills and abilities required in the future in comparison tothe current situationDeveloping HR strategies to support organizational strategies: There are fiveHR strategies for meeting your organization’s needs in the future:¯ Restructuring strategies¯ Training and development strategies¯ Recruitment strategies¯ Outsourcing strategies¯ Collaboration strategiesRestructuring strategies: This strategy includes:ü Reducing staff either by termination or attritionü Regrouping tasks to create well designed jobsü Reorganizing work units to be more efficientTraining and development strategies: This strategy includes:ü Providing staff with training to take on new rolesü Providing current staff with development opportunities to prepare them forfuture jobs in your organizationRecruitment strategies: This strategy includes:ü Recruiting new staff with the skill and abilities that your organization will need inthe futureü Considering all the available options for strategically promoting job openings andencouraging suitable candidates to apply.Outsourcing strategies: This strategy includes:
Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 24ü Using external individuals or organizations to complete some tasksü Many organizations look outside their own staff pool and contract for certainskills.ü This is particularly helpful for accomplishing specific, specialized tasks that don’trequire ongoing full-time work.Collaboration strategies: Finally, the strategic HR planning process may lead toindirect strategies that go beyond your organization. By collaborating with otherorganizations you may have better success at dealing with a shortage of certain skills.