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HRM (Human Resource Managment)


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HRM (Human Resource Managment)

  1. 1. CHAPTER 12
  2. 2. Topics to be covered…..• What HRM is?• Why HRM is important?• Human Resource Management Cycle• Knowledge worker concept• Function of HRM– Staffing– Training and Development– Motivation– Miantenance
  3. 3. Human Resource Management• Human Resource Management (HRM) is the process ofevaluating an organization’s human resource needs, findingpeople to fill those needs, and getting the best work from eachemployee by providing the right incentives and job environment--- with the overall aim of helping achieve organizational goals.• HRM is concerned with the most effective and efficient use ofhuman resource. It deals with organization’s staffing levels,motivating employees, managing employee relations andemployee service.• HRM is a strategic approach to manage people at work.
  4. 4. Importance of HRM ….• Our people are our most important resource.• Strategic Tool.• It increase productivity.• It enhances group learning.• It reduce staff turnover. (Service Type Businesses e.g. Banks)• It encourages initiatives.• Important source of competitive advantage.
  5. 5. Human Resource Cycle ….Selection PerformanceAppraisalRewardsTrainingandDevelopment
  6. 6. • HRM is a bridge between employee and employer.• Give something and get something concept.• When your organization has about 100 employees, then HRMbecomes necessary.• HRM focuses on personality dominance to work dominance.
  7. 7. Knowledge Worker Concept….• An employee who have the required knowledge and skills toperform a specific task or job.
  8. 8. Functions of HRMHRMStaffingTraining&DevelopmentMotivation Maintenance
  9. 9. Staffing1. Human Resource Planning (HRP)2. Recruitment3. Selection
  10. 10. 1. Human Resource Planning (HRP)• Right person for right job, in the right time, at right place.• Current Human Resource Inventory (HRI)• Future Needs• Replacement Charts/Succession Planning (Planning for persons whoare going to be replaced)• Demand and Supply of Human Resource• Job Analysis– Job Description. (Focus on Job)– Job Specification. (SKA)– Job Evaluation. (Whether you are doing rightly.)
  11. 11. 2. Recruitment• Locating, Identifying and Attracting capable applicants.• It is used to hire people.• Recruitee Future Employee• Candidates (10) Recruitee (5) Employee (1)• Sources of Recruitment– Internal Sources (Promotion, Employee referrals)– External Sources (Internet, News Papers, Colleges n Universities, Recruitment Agenciesetc)• Recruitment Constraints• De-recruitment
  12. 12. 3. Selection1 •Short Listing/Initial Interview2 •Written Test3 •Panel Interview/Employment Interview4 •Background Checking5 •Appointment Letter6 •Medical Examination
  13. 13. Training and Development1. Socialization/Orientation .2. Training3. Development4. Career Development
  14. 14. • Awareness about companyand its environment.• Organization tries toinfluence the new hire toadapt to and adapt the waythey do things around theworkplace using formal andinformal processes.• For example language,physical appearance or greetthe customers.• Socialization must be thereotherwise employees will left.Socialization Process
  15. 15. 2.• It more focused on your present job.• Training of employees takes place after orientation takes place.Training is the process of enhancing the skills, capabilities andknowledge of employees for doing a particular job. Trainingprocess moulds the thinking of employees and leads to qualityperformance of employees. It is continuous and never ending innature.• How to work, How to sit n stand, How to greet customers etc.• Training may be given to new employees as well as employeeswith no good performance appraisal.• Indoor training and outdoor training.• On the job training and off the job training.
  16. 16. 3.• It is more focused on future positions.• Companies often realize that investing in the growth anddevelopment of key employees helps improve the overallcompetence of the organization. When an employee learns skillsand responsibilities, he becomes better equipped to take onhigher-level work and leadership roles in the future. Mentoringprograms, manager-training programs and departmentalworkshops are examples of employee-development activities.Employee development typically works best when humanresources promotes and supports a culture that rewardsemployees who deliver results and learn new skills.
  17. 17. 4.• Focus on employee career.• From date of joining to Superannuation (Retirement)• Step by step promotion in service.• Career development programs place more emphasis on opportunities foremployees to improve themselves to reach personal career goals. In a 2009study, Hay Group Insight showed that employees felt much more engaged andcommitted to employers who offered chances for personal growth anddevelopment. In essence, companies that offer development opportunitiesplace a higher emphasis on employee retention. The general belief is that ifyou can motivate employees to improve their knowledge and skills, thecompany ultimately benefits.
  18. 18. Motivation1. Employee Benefits2. Employee development program3. Performance Reward System
  19. 19. 1.• Benefits Planning– Medical Facilities– Residence– Leaves– Transportation• Incentives– Cash Incentives– Haj Incentives• For efficient as well as foraverage performance.• If peoples are working wellmotivation is there.• If peoples are frustrated, thende-motivation is there, andthis creates a big hurdle inperformance.
  20. 20. 2.• Only for above average and efficient performance.• How employees are developed?– Special Trainings.– Further Education.– Participation in Decision Making.– Free Industry and Foreign Tours.– Promotions.
  21. 21. 3.• Rewards are what employees receive for performing well. Sometimesthese rewards come from the organisation in the form of money,recognition and promotions. Rewards can also consist of feelings fromhaving performed well in work. It can be said that rewards are verypowerful motivators of performance.• Organisations need various types of performance from theiremployees. They need them to become active members of theorganisation, they need them to do their job as it has been defined andthey need their employees to improve their performance. In order toachieve improvements in performance different reward systems mustbe applied.• As much better performance you will show, so better reward you willget.• Financial Vs. Non- Financial Rewards• Intrinsic Vs. Extrinsic Rewards
  22. 22. Maintenance1. Performance Appraisal2. Compensation3. Industrial relations4. Rewards
  23. 23. 1.• A performance appraisal is a review and discussion of anemployees performance of assigned duties and responsibilities.The appraisal is based on results obtained by the employee inhis/her job, not on the employees personality characteristics.• Whether you are performing good or not.• Good Performance Rewards, Incentives, Promotions• Average or Bad Performance Training• Appraisal ProcessAppraiserAppraisee
  24. 24. 2.• Wages, Salary &Payrolls, Bonuses ,IncentivesBenefitsMandatory(Necessary as per law)** Salary** Suit able workingconditions andenvironment.Optional(Optional as perCompany’sManagement)** Residence** Transportation** Mobile** Lunch Facility
  25. 25. 3.• Labor Laws• Social Security (PESSI)• EOBI• Insurance• Health issues.• Child Labor.
  26. 26. 4.• A thing given in recognition of service, effort, or achievement.• Financial Rewards– Piece rate– Wages– Salaries– Bonus Schemes– Profit related Pay– Fringe Benefits• Non-Financial Rewards– Job Enrichment– Job Enlargement– Communication– Empowerment– Quality Circles– Training– Autonomous Work Groups