HRM CHAPTER 1.pptx

MOHAMAD SHUKRI BIN MUDA
COMMERCE DEPARTMENT
POLITEKNIK METrO BETONG SARAWAK

Definition of human resource
 Development and implementation of systems in an
organization designed to attract, develop and retain a high-
performing workforce.
 Policies and practices on the people or HR aspects of
management: recruit, train, appraise and reward.
 Functions and activities of HR Managers:-
 Staff: Recruit, select and train staff. Evaluate performance and
reward staff.
 Plan: Set goals and standards. Develop rules and procedures.
 Control: Set standards, compare performance and take corrective
actions.
 Organize: Give each subordinate a specific task. Delegate
authority, set up channels of communication and coordinate work
of subordinate.
 Lead: Get subordinates to do the work, maintain morale and
motivate subordinate.

Objectives of human resource
 Achieve organizational goals
 Work culture
 Team integration
 Training and development
 Employee motivation
 Workforce empowerment
 Retention
 Data and compliance

Achieve organizational goals
 One major HRM objective is to fulfil organizational goals.
 Utilizing human resource to achieve business
requirements and goals is very important for an effective
HRM.
 Organizational objectives include workforce handling, staff
requirements like hiring and onboarding, payroll
management and retirement.
 To succeed at organizational objective, HR requires
efficient planning and execution.
 Without a set parameter for goals and mission and
resources, HRM is incomplete. After HR managers know
resources and planning at place, achieving HRM objective
is not so difficult.

Work culture
 When it comes to handling HRM effectively and following objectives, employee and work
environment are the prior factors.
 Work culture plays an important role in defining HRM and business performance.
 An HR manager needs to be active while calling for strategies to foster better work culture.
Automated activities like leave approvals, reimbursement request acknowledgement, etc.
can help the organization.
 Quick operations and empowerment to employees help in creative positive vibes at
workplace.
 Developing and maintaining healthy and transparent relations among team members and
teams contribute to building a good example of work culture.
 Adopting right solutions like employee management software can solve more than half of
the job.

Team integration
 One of the prime roles and objectives of HRM is to make sure team co-ordinate efficiently.
Easy communication is the need for teams at an enterprise. An HR here must ensure a tool
to assist in making the integration easier and smooth.
 Proper connect between individuals is a must to ensure productivity. To make the HR
management a success, HR manager needs to search better integration portals to make
data availability easier for people. Functional objectives like team integration is to produce
streamlined operations and tasks.
 With right tool like self-service portal can bring employees closer to HR folks.

Training and development
 Workforce being effective and performing are two important and basic elements to work
upon for achieving basic objectives at an organization. With proper training and providing
future opportunities, employees feel safe and organized.
 Effective employment is highly dependent upon the training practices. Providing
opportunities to employees is one great step to ensure workforce management.
 There might be difficulties such as planning, scheduling, training sessions, and evaluation
of each on-boards. To lessen the pain, solution like training management software can help
HR manager with auto-reminders, easy scheduler, reporting, and tracking capability. The
HR manager can ensure effective training practice at firm.

Employee motivation
 The prime objective of an HR folk is to keep things on right path. Keep distractions and
negative vibes away. Employees need to be attended and kept motivated throughout and
HR department needs to motivate employees as well.
 HR must take employees’ views on things by involving them into weekly meets or decisions
including newly recruited employee. Keep the morale always high.
 Employee recognition like yearly appraisal based on their performance can too help.
 Automated feedback system for performance appraisal management can keep employees
motivated and ensure productivity throughout service. When the employees are satisfied
and fulfilled, nothing else can prevent the organization from losing the objectives and goals.

Workforce empowerment
 Employee empowerment is defined as the
ways in which organizations provide their
employees with a certain degree of autonomy
and control in their day-to-day activities.
 This can include having a voice in process
improvement, helping to create and manage
new systems and tactics, and running smaller
departments with less oversight from higher-
level management.
 A key principle of employee empowerment is
providing employees the means for making
important decisions and helping ensure those
decisions are correct.
 When deployed properly, this should result in
heightened productivity and a better quality of
employee work and work life.

Data and compliance
 Functional and organizational objectives also include
managing company/employee data and managing
compliances.
 Managing payroll compliances and keeping the
company out of any penalties or fine is huge challenge
for HR people and managers.
 Even a small error or miscalculation can owe the
organization huge penalties and even may lose respect.
When committing to tasks like employment and
payroll, the organization needs to be careful about laws
and regulations. Objective here is to keep any
unwanted claims at bay for smooth functioning.
 Automated software like HRMS system can help keep
errors at side and leave no window for owing any
penalty from Internal Revenue Service (IRS). It is the
responsibility of HR to follow IRS guidelines and
standards for effective employment at company and
stay assured with all the legalities.

Retention
 Providing leadership qualities and opportunities, healthy working area, and employee
retention are some prime objectives and deliverables of HR manager.
 Keeping employees retained and motivated needs to be a top priority for HRM.
 Other than employee hiring, onboarding, and training cycle, keeping the employees
retained for long is the biggest challenge - objective of the HR people.
 Due to ineffective training management or rough hiring process, it often occurs that
employees leave the organization within 2 months of onboarding.
 Employee experience needs to be carefully attended. Keeping employees retained can help
maintain good state of employee turnover. To keep it stable, the HR manager needs to learn
the best retention tips for business.

 Factors of establishment of human resource in the organization
 Size of organization
 Unionization of workforce
 Ownership of company
 Philosophy of top management

Factors of establishment of human resource
Size of organization
 A larger organization with number of employees is likely
to have a separate human resource department as a
small company cannot afford to employ staffs who do not
bring in an income to the company.
 Head of department or ‘line’ manager must ensure the
workers in need, with right skills and willing to work.
 Medium-sized company may establish an administration
department to provide a support service to line
departments – correspondence, handling, liaison with
government departments, legal matters, office
administration, HRM.
 A separate human and specialist HR department is
needed once a company grows bigger – the technical
requirements of recruitment, training and record keeping
become heavy for the administration department to
handle.
Size of the
company
Responsibility
for HR
Small company HOD/All
managers
Medium-sized
company
Administration
department
Large-sized
company
HR department
Very large
company
HR, Training
and Industrial
Relations
department

Unionization of the workforce
 The company must be wise to employ specialists in the field of industrial relations and
human resource management staff who are knowledgeable about labor laws
 In a unionized environment, management needs specialized knowledge in the area of
management of human resources.

Ownership of the company
 Multinational companies and joint ventures with foreign partners can be expected to need a
human resource department
 They need to provide input and knowledge in the areas of industrial relations and labor
laws which unlike production, marketing and finance - need local expertise.

Philosophy of top management
 A company may hire human resource specialists and employ them in a special department
depending on top management concerning the importance of human resources.
 If the management believes the organization’s success and profits linked to the cooperation
and effort of the workers, they are more likely need human resource department.
 However, certain managers believe in this maxim, but refuse to invest on establishing
human resource department.

 Job analysis and Human Resource Strategic Planning
 Recruitment and selection
 Training and development
 Performance appraisal
 Compensation management
 Industrial relations

Job analysis and human resource strategic planning
 A technique of studying a job to identify skills, knowledge, experience and other
requirements necessary to perform the job.
 Involves gathering information and analysis of information of crucial information about a
job. In this analysis judgements are made on the data collected of a job - Job Description
and Job Specification
 Includes an assessment of the nature of the job as well as the knowledge, skills and
attitude of the jobholder. In other words, Job Description provides details regarding the
content of the job in a written format and Job specification is a written record of the
qualities and qualifications which a Jobholder should be having for handling a job.
 The job analysis is useful in developing selection, training, and performance evaluation.
Job analysis is the process of studying and collecting information about the responsibilities
and operations of a given job.

 The steps of job analysis as below:
 Analyzing the Job interrelationship with the organizational strategies and vision.
 Determining the Uses of Job Analysis like Recruitment & Selection, Compensation, Training
& Development, etc.
 Identification of Job which would be analyzed
 Collection of Data for Job Analysis through observation, Interviews and Questionnaire
Administration.
 Preparing the Job Description which is essentially a written account of the job.
 Preparing the Job Specifications which should essentially provide details regarding the
specific skills, qualities and qualifications which a job holder should possess.
 Reviewing and updating the information ideally in every three years and the
interrelationship collecting job information.

 Human resources planning can be described as a process of ascertaining the manpower
requirements of an organization which should be aligned with the strategic goals of the
organization.
 According to E.W. Vetter, human resource planning is “the process by which a
management determines how an organization should make from its current manpower
position to its desired manpower position”.
 Some of the features are:
 Well defined objectives of human resource planning.
 Human resource plan needs of the organization.
 Manpower planning in advance.
 Creating Proper Work Environment.

Recruitment and selection
 Recruitment: the process in which people are offered selection in an organization. It is when
prospective employees are searched for and are then encouraged to apply for jobs within the
organization.
 Specific tasks involved in the process of recruitment include:
 Analyzing job requirements
 Advertising the vacancy
 Attracting candidates to apply for the job
 Managing response
 Scrutinizing applications
 Shortlisting candidates
 Recruitment activities are typically performed by Human Resource practitioners, either internally
or externally. Internal recruitment sources are promotion, transfers, retrenched employees,
contact or references, ex-employees, retired employees, etc. External recruitment sources are
recruitment through advertisement, campus recruitment, recruitment by employee exchanges,
recruitment by third parties, internet recruitment, unsolicited applicants, etc.

Recruitment and selection
 Selection: the process of identifying an individual from a pool of job applicants with the requisite
qualifications and competencies to fill jobs in the organization.
 This is an HR process that helps differentiate between qualified and unqualified applicants by
applying various techniques.
 The term ‘selection’ comes with the connotation of placing the right person in the right job.
Selection is the process in which various strategies are employed to help recruiters decide which
applicant is best suited for the job. Some activities include:
 Screening
 Eliminating unsuitable candidates
 Conducting an examination (aptitude test, intelligence test, performance test, personality test,
etc.)
 Interviews
 Checking references
 Medical tests
 The selection process is a largely time-consuming step in an employee’s hiring experience. HR
managers must carefully identify the eligibility of every candidate for the post, being careful not to
disregard important factors such as educational qualification, background, age, etc.

 Training and Development in HRM is defined as a system used by an organization to improve the
skills and performance of the employees.
 It is an educational tool which consists of information and instructions to make existing skills
sharp, introduce new concepts and knowledge to improve the employee performance.
 An effective training and development initiative helps the company to enhance the skills of
working manpower and improve productivity.
 Need of Training and Development
 The training and development activity is required when company revises its objectives and goal
to adjust the changing market conditions.
 Companies often endorse training and development programs to improve the performance of
the employees.
 The training and development is needed to set up a benchmark of performance which
employees are expected to achieve in a financial year.
 There is always a need of training and development efforts to teach the employee new skills
such as team management, communication management and leadership behavior.
 Training and development is also used to test new methods of enhancing organizational
productivity.

 Importance of Training and Development
 In Human Resource Management (HRM) Training and development is important aspect
when company wants optimum utilization of their manpower.
 Training and development is a key for the succession planning of the organization as it
helps in improvement of skills like team management and leadership.
 Training and development activities are vital to motivate the employee and to increase
their productivity.
 Training and development in HRM is significant aspect to develop a team spirit in the
organization.
 Training and development programs are also important from the safety point of view as it
teaches employee to perform job properly without any life risk.
 From the organizational point of view the training and development programs are
important tools to increase profitability and enhance corporate image.

Performance appraisal
 Performance appraisal: a systematic process in which employee performance at work is
evaluated in relation to the projects on which employee has worked and his contribution to
the organization. It is also known as an annual review or performance review.
 A systematic appraisal system helps the managers to properly identify the performance of
employees in a systematic manner and their areas of talent and areas where they are
lacking.
 It helps the management to place the right employees for the perfect jobs depending on
their skills in particular areas.
 It helps employees identify the areas in which they need to improve. The managers can also
use this information to provide constructive criticism of the way employees perform their
work.

Compensation management
 Compensation management: the process of managing, analyzing, and determining the
salary, incentives, and benefits each employee receives.
 Compensation managers aim to attract, retain, and engage employees by offering broad and
competitive compensation plans within the company budget.
 Compensation management ensures that employees get paid a fair salary based on:
 Work performance
 Position
 Responsibilities
 Experience
 Job market
 Company budget

Industrial relations
 Known as labor/employee relations. The relationship between an employer and his
employees, particularly when the latter are members of a trade union.
 Objectives of industrial relations are a s follows:
 Handling grievance - Industrial relations aim to maintain cordial relationship between the
management and the employees by resolving the disputes and setting up a mechanism to
address the grievances of both the parties.
 Mental revolution - It emphasizes on transforming the way of thinking of both the
management and the workers. The employer must value the worker’s contribution towards
the organization, and at the same time, the employees must respect the authority of the
management.
 Employees’ rights protection - Under industrial relations, various acts and associations
were formed to safeguard the rights and interests of the employees (irrespective of their
membership of the labor union).
 Contract interpretation - Industrial relations emphasizes on providing proper training to
the supervisors and the managers on the labour law contracts to clarify any
misunderstanding.

Internal factors
 Internal factors (also known as organizational factors) lie within the organization
and affect human resource management practices. These factors include:
 Organization’s strategies - a way in which an organization, reacting to its environment,
deploys its principal resources and marshals its main efforts in pursuit of its purpose.
 Organizational culture - the set of assumptions, beliefs, values, and norms that are shared
by an organization’s members.
 Trade unions – treated as an internal factor because organization’s employees (particularly
operatives) are members of the trade union.
 Organization’s financial position - affects human resource management practices,
particularly those having substantial financial implications. The ability to pay the wages and
salaries, funds for retraining human resources, etc., are affected by an organization’s
financial position and its cash flow.

 External factors
 External factors which lie outside an organization and affect its working, including
human resource management. These factors include:
 Economics factors - give shape and form to the development of economic activities and
include factors like nature of economic system, general economic conditions, various economic
policies, and various factors of production including human resources.
 Socio-cultural factors - quite comprehensive and affect various aspects of organizational
operations, including human resource management consisting of attitudes, beliefs, desires,
expectations, and customs of the society.
 Technological factors - consist of sum total of knowledge providing ways to do things.
These include inventions and techniques which affect the ways of doing things, that is,
designing, producing, and distributing products and services.
 Political-legal factors - include political system, role of government in business, various
government policies related to business operations, laws formulated by governments, both
central and state levels.

Answer all questions below.
1. Describe the importance of human resource management to the
organization. [8 marks]
2. Discuss the concept of size of an organization and the philosophy of top
management in the establishment of human resource department. [6 marks]
3. Elaborate effectively with two examples on each following factor affecting
human resource management activities.
 Organizational culture [3 marks]
 Technological factors [3 marks]

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