Overview of human resource management system & function
Made by Rita Choudhary
Session Objectives Introduction of HRM Definition of HRM HRM functions To understand … Recruitment &Selection process Training& Development process Performance Appraisal process Pay Roll Compensation &Benefits To understand the Main HR Roles & Responsibilities
Introduction Human resource management is a process of bringing people and organisation together so that the goals of each are met .it tries to secure the best from people by winning their whole hearted cooperation . In short, it defined as the art of procuring ,developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner.
What is HRM? Human Resource Management (HRM) is the function within an organization that focuses on recruitment, management , and providing direction for the people who work in the organization. It deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
What do HR Managers Do? Human Resource professionals create systems for managing employees that support an organization’s overall strategy. To accomplish this they Analyze and design jobs. Forecast supply and demand for workers. Ensure legal compliance. Implement affirmative action plans. Recruit and select candidates to fill open positions. Train and develop employees to meet current and future job demands
Manage employee performance and career progress. Develop basic pay structures. Create incentive plans. Administer benefit programs. Assure employees safety and health. Retain employees. Improve employee morale. Reduce turnover and carry out disciplinary actions, all while applying constantly evolving technology.
HRM Functions There are seven main functions of HR . . Manpower planning Recruitment and selection of employees Employee education, training and development Compensation &Benefits (Employee motivation) Performance Appraisal (Employee evaluation) Industrial relations Provision of employee services (safety &Health Benefit)
Manpower planning is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. It is a double –edged weapon . if used properly ,it leads to the maximum utilization of human resources , reduce excessive labour turnover and high absenteeism , improve productivity and aid in achieving the objectives of an organization.
Recruitment &Selection Recruitment is a process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a job vacancy, in a most timely and cost effective manner. The process begins when applications are brought in and ends when the same is finished. The result is a pool of applicants, from where the appropriate candidate can be selected.
Recruitment cycle Identify Vacancy Conduct Interview Prepare Job &Decision Description making Arrange Advertising interview the Vacancy Managing short listing the response
External source Advertisement (print media ,mass media) Educational institutions Placement agencies/outsourcing Job portals (Naukari .com, monster .com) Employment exchange Labour contractors Unsolicited applicant Employment at factory gate
Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.
Training & Development Training is a process of learning a sequence of programmed behavior. It is a act of increasing the knowledge and skills of an employees, for performing a particular job. Newly recruited employees require training so as to perform their task effectively. Instruction , coaching, guidance helps them to handle jobs completely, without any wastage . Development is a long -term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose.
Performance Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. Its rates the employees in terms of their performance It is necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. It may be half yearly or yearly report .
360 degree performance appraisal The 360 degree appraisal is the appraisal given by peers, subordinates ,workers , head of the department etc, that means the appraisal given from all the people working in the organisation . In short The half yearly or yearly report of work schedule goes from company to head quarter of all the workers performance is the appraisal it contains all the promotion ,demotion, and other activities related to the performance..
Pay Roll The term payroll encompasses every employee of a company who receives a regular wage or salary or other compensation. Payroll refers to the administration of employees salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There are some deductions such as PF, taxes, loan installments or advances taken by employee.
Figure: Components of Monthly Payroll Figure: Components of Annual Payroll
Compensation & Benefits Compensation is the remuneration received by an employee in return for their contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.
Components of Compensation System Pay Structure Job Salary Analysis Surveys
Two types of compensation given by any Organization Direct compensation Indirect compensation
Employees Benefits Benefits in kind (also called fringe benefits, perquisites, perks) are various non-wage compensations provided to employees in addition to their normal wage or salaries, Where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a salary sacrifice arrangement.. Some of these benefits are: Housing (employer-provided or employer-paid), Group insurance (health ,life ,etc.) Disability income & protection, Retirement Benefits
Reimbursement, Seek leave, Vacation (paid and non-paid), Social security , profit sharing ,funding of education, and other specialized benefits. Perk-refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are Take –home vehicles, hotel stays Free refreshments, leisure activities on work time (golf etc.), stationary allowances
HR Roles and Responsibilities in changing Environment The HR Roles and Responsibilities needs to react to this basic request by the organization to keep the level of the satisfaction. Nowadays, the HRM has to deliver even more. The HR Roles and Responsibilities have to take the high level recognition of the organization and they need to be adjusted to make a full fit. The HR Roles have to be adjusted to: keep HRM Function focused on tracking and implementing new trends in the industry. keep HRM Function focused on helping the line management to implement improvements. keep HRM Function focused on operational excellence. keep HRM Function responsible for developing the Human Capital potential in the organization.
The HR Responsibilities have to be adjusted to: Demonstrate the Line Management the will to keep the responsibility for the Human Capital costs keep the competitive advantage on the market (and not just the job market) Demonstrate the will to drive the main HR Processes to keep the organization in the excellent health. keep HRM Function supporting the Business Strategy to reach the business initiatives. keep HRM responsible for the tasks resulting from the Business Strategy