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Human resource management (mba)


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HRM 2nd semester 2013

Published in: Education, Business, Technology

Human resource management (mba)

  1. 1. Human ResourceManagement
  2. 2. HRM Meaning and DefinitionHuman Resource Management is also afunction of management, concerned withhiring, motivating and maintainingpeople in an organisation.It focuses on people in the organisation.
  3. 3. HRM Meaning and Definition Organisations does not only consist of building,machines or inventories. It is people they manageand staff the organisation HRM applies management principles in procuring,developing, maintaining people in the organisation. Aims at integrated decision making and decisions ondifferent aspects of employees are consistent withother HR decisions HR Decisions must influence effectiveness of theorganisation leading to better service to customerand high quality product and services at reasonableprice. It is not confined to business establishment only,HRM is applicable also to the non businessorganisation, like government department,education, health care etc.
  4. 4. Definition Human Resource Management is aseries of integrated decisions thatform the employment relationship;their quality contributes to theability of the organisations and theemployees to achieve theirobjectives.- Milkovich and Boudreau
  5. 5. Definition Human Resource Management is concerned withthe people dimension in management. Sinceevery organisation is made up of people,acquiring their services, developing their skills,motivating them to higher levels of performanceand ensuring that they continue to maintain theircommitment to the organisation are essential toachieving organisational objectives. This is trueregardless of the type of organisation –government, business, education, health,recreation or social action.- David A. Decenzo and Stephen P. Robbins
  6. 6. Definition Human Resource Management is theplanning, organising, directing andcontrolling of the procurement,development, compensation, integration,maintenance and separation of humanresources to the end that individual,organisational, and social objectives areaccomplished.- Edwin B. Flippo
  7. 7. Scope of HRMHRMNatureIntroductionProcurementProspectsIndustrialRelationsRemunerationMotivationMaintenance
  8. 8. Difference Between HRM and PM - 1S.No Dimension PM HRM1 EmploymentcontractCareful dimensionof written contractAim to gobeyond contract2 Rules Importance ofdevising clear rulesImpatience withrules3 Guide tomanagementactionProcedures Business need4 Behaviour referent Norms/ customs &practicesValues/mission5 Managerial taskvis-à-vis labourMonitoring Nurturing6 Key relations Labour Customer7 Initiatives Piecemeal Integrated8 Speed of decision Slow Fast
  9. 9. Difference Between HRM and PM - 2S.No Dimension PM HRM9 Management role Transactional Transformational10 Communication Indirect Direct11 Management skill Negotiation Facilitation12 Selection Separate Integrated13 Pay Job evaluation Performancerelated14 Conditions SeparatelynegotiatedHarmonisation15 LabourmanagementCollectivebargainingcontractsIndividualcontracts16 Job categories andgradesMany Few17 Job design Division oflabourTeam work
  10. 10. Difference Between HRM and PM - 3S.No Dimension PM HRM18 Conflict handling Temporary Climate & culture19 Training &DevelopmentControlledcoursesLearningOrganization20 Focus for attentionfor interventionsPersonnelproceduresCultural &structuralstrategies21 Respect foremployeesLabour – a tool– expendable &replaceablePeople are assets& to be used forbenefit oforganization22 Shared interests Organizationinterest isuppermostMutuality ofinterests23 Evolution Precedes HRM Latest
  11. 11. Shift towards HRD
  12. 12. HRD and HR HR can be termed as HumanResource Function or HRM HumanResource Management HRD Stands for Human ResourceDevelopment
  13. 13. HRD and HRHR is all encompassingHR includes HRD and moreHR goes far beyond the traditional Personnel functionHR is more proactive and change orientedHR needs competencies of a different nature fromwhat the traditional personnel function required
  14. 14. Importance of HRM Human Resource Management is important to allmanagers despite their various functions becauseof the following reasons- Hire the right person for the job Low attrition rate Ensure people do their best Time saved in not conducting useless interviews Avoid legal action for any discrimination Safety laws are not ignored Equity towards employee in relation to salary etc. Effective training Avoid unfair labour practices
  16. 16. Human Resource PlanningHuman Resource Planning is theprocess of forecasting a firm’s futuredemand for, and supply of, the righttype of people in the right number.
  17. 17. Definition Human Resource planning includesthe estimation of how manyqualified people are necessary tocarry out the assigned activities,how many people will be available,and what, if anything, must be doneto ensure that personnel supplyequals personnel demand at theappropriate point in the future.
  18. 18. Definition Specifically, human resource planning is theprocess by which an organisation ensures thatit has the right number and kind of people, atthe right place, at the right time, capable ofeffectively and efficiently completing thosetasks that will help the organisation achieve itsoverall objectives. Human resource planningtranslates the organisation’s objectives andplans into the number of worker needed tomeet those objectives. Without a clear cutplanning, estimation of an organisation’shuman resource need is reduced to mereguesswork. David A. Decenzo and Stephen P. Robbins
  19. 19. Importance of HRP Future personnel needs. Helps in strategic planning Creating high talented personnel Global strategies Foundation of personnel function Increase investments in humanresources Resistance to change
  20. 20. Factors affecting HRP Type and strategy of organisation Organisational growth cycle and planning Environmental uncertainties Time horizons Type and quality of forecastinginformation Nature of jobs being filled Outsourcing
  21. 21. HR Demand Forecast Demand forecasting is the processof estimating the quantity andquality of people required to meetfuture needs of the organisation.
  22. 22. Forecasting Techniques Ratio trends analysis Regression analysis Work study techniques Delphi techniques Managerial judgments
  23. 23. HR Supply Forecast Supply forecast determines whetherthe HR department will be able toprocure the required number ofpersonnel. Specifically, supplyforecast measures the number ofpeople likely to be available fromwithin and outside an organisation.
  24. 24. HR Supply ForecastThe supply analysis covers: Existing human resources Internal source of supply External source of supply
  25. 25. JOB ANALYSIS
  26. 26. Job Job may be defined as “collection oraggregation of tasks, duties andresponsibilities which as a whole,are regarded as a regularassignment to individualemployees.”
  27. 27. Job Analysis Job Analysis is the process ofstudying and collecting informationrelating to the operations andresponsibilities of a specific job. Theimmediate products of this analysisare job description and jobspecification.
  28. 28. Job analysis involves following steps: Collecting and recording job information Checking the job information for accuracy Writing job description based oninformation Using the information to determine theskill, abilities and knowledge Updating the information from time to time
  29. 29. Job Description A list of job’s duties, responsibilities,reporting relationship, workingconditions, and supervisoryresponsibilities.
  30. 30. Job Specification A list of job’s “human requirements”that is, the requisite education,skills, personality and so on.
  31. 31. JOB ANALYSISA process of obtaining all pertinent job factsJob Description• Job Title• Location• Job summary• Duties• Machine tools etc• Material etc• Supervision• Working condition• HazardsJob Specification• Education• Experience• Training• Initiative• Physical effort• Responsibilities• Communication skills• Emotional characteristics• Unusual sensory sight etc.
  32. 32. Use of Job Analysis InformationJob description andJob SpecificationRecruiting&SelectionPerformanceAppraisalSalary&WagesTraining&DevelopCareerPlanningHealth &SafetyEmployeeDiscipline
  34. 34. Recruitment It is the process of finding andattracting capable applicants foremployment. The process beginswhen new recruits are sought andends when their applications aresubmitted. The result is pool ofapplicants from which newemployees are selected.
  35. 35. Initiating the Recruitment Process Prior to initiating a recruitment procedure, thefollowing matters should be considered: Clarification of the scope and skill sets required tosuccessfully perform the duties of the position Review of the Job Fact Sheet or Position Descriptionto ensure that the skills and abilities requiredcoincide with the current expectations of theposition. If they do not, then a position evaluationshould be undertaken. Review of the compensation available to theposition (i.e. salary and benefit plans, etc.) Analysis of the impact that the hiring will have onthe budget
  36. 36. Factors Governing recruitmentExternal factorsSupply and demandUnemployment rateLabour MarketPoliticalSocialSons of soilImageInternal factorsRecruitment policyHRPSize of the firmCostGrowthExpansionRecruitment
  37. 37. Building Pool of CandidateBuilding Pool of CandidateINTERNALINTERNAL EXTERNALEXTERNAL
  38. 38. SOURCES OF RECRUITMENTSOURCES OF RECRUITMENTCurrent EmployeeCurrent EmployeeReferences from presentReferences from presentemployeeemployeeDatabank of formerDatabank of formerapplicantsapplicantsRetired EmployeeRetired EmployeeFormer employeeFormer employee• AdvertisingAdvertising• Employment agenciesEmployment agencies• Temporary helpTemporary help• Executive recruitersExecutive recruiters• Referrals and walk-insReferrals and walk-ins• College recruitingCollege recruiting• Company’s web siteCompany’s web site• Free and fee-payingFree and fee-payingWebsite servicesWebsite servicesINTERNALINTERNAL EXTERNALEXTERNAL
  39. 39. Recruiting Yield Pyramid It is the historical arithmeticrelationships between- Recruitment leads and invitees Invitees and interviews Interviews and offers made Offers made and offers accepted
  40. 40. 501001502001200Leads generated (6:1)Candidates invited (4:3)Candidates interviewed (3:2)Offers made (2:1)New hiresRecruiting Yield Pyramid
  41. 41. InternalversusExternalRecruitmentAdvantages & Disadvantages
  42. 42. Internal RecruitmentAdvantages Disadvantages1. It is less costly 1. It perpetuates the oldconcept of doing things2. Candidates are alreadyoriented toward organisation2. It abets raiding (make aperson provide something)3. Organisation have betterknowledge about theinternal candidates3. Candidate’s current workmay be affected4. Enhancement of employeemorale and motivation4. Politics play greater role5. Good performance isrewarded5. Morale problem for thosenot promoted
  43. 43. External RecruitmentAdvantages Disadvantages1. Benefits of new skill, newtalent and experiences toorganisation1. Better morale andmotivation associatedwith internal recruiting isdenied to the organisation2. Compliance withreservation policy becomeseasy2. It is costly3. Scope of resentment,jealousies and heartburnare avoided3. Chances of creeping infalse positive or falsenegative error
  44. 44. SELECTION
  45. 45. Selection Selection is the process ofdifferentiating between applicants inorder to identify those with agreater likelihood of success in ajob.
  46. 46. Selection The selection of a candidate withthe right combination of education,work experience, attitude, andcreativity will not only increase thequality and stability of theworkforce, it will also play a largerole in bringing managementstrategies and planning to fruition.
  47. 47. Factors affecting selection External environment Supply and demand of specific skill Unemployment rate Legal and political considerations Company’s Image
  48. 48. Factors affecting selection Internal environment Company’s policy HRP Cost of hiring
  49. 49. Process of selectionPreliminary InterviewSelection testsEmployment InterviewReference & backgroundSelection DecisionMedical ExaminationJob OfferEmployment ContractEvaluationREJCTED
  50. 50. Basic Testing Concepts Generally tests are administered todetermine the applicant’s – Ability Aptitude Personality Interest
  51. 51. Basic Testing Concepts Ability tests Helps to determine how well one canperform his task
  52. 52. Basic Testing Concepts Aptitude tests Helps to determine a persons potentialto learn in a given area
  53. 53. Basic Testing Concepts Personality tests To measure a prospective employee’smotivation to function in a particularworking environment
  54. 54. Basic Testing Concepts Interest tests To measure an individual’s activitypreferences. (For career change orwhen there is multiple career optionavailable)
  55. 55. Selection TestsTests DescriptionThomasProfilingIdentifying behavioural requirementfor the jobMBTI Understanding personality typePAPI Behaviour in work place16 PF Measuring personality factorsASUFA Locus of control
  56. 56. Interviews Formal, in depth conversation conductedto evaluate the applicant’s acceptability. Adapted to unskilled, skilled, managerialand professional employees. Two-way exchange of information, theinterviewers learn about the applicant,and the applicant learns about theorganization
  57. 57. Shortcomings of interviews Absence of reliability Lack of validity Biases
  58. 58. Preparing for the Interview Abundant research exists that reliability andvalidity of the selection interview are higher whenan interview is structured, planned andstandardized in form. This approach fosters acomprehensive investigation of the applicantsbackground, precludes personal and non-job-related questions, and increases impartiality inqualification assessment. Therefore, an interviewplan is strongly recommended. Prior to developing the interview plan, it is criticalto be clear about the job requirements and stickto them throughout the hiring process. Thisensures that you “don’t fall in love with eachcandidate and redefine the job to fit”.
  59. 59. Types of Interview
  60. 60. Interview may beOne to one InterviewOnly two participants –1. Interviewer2. Candidate
  61. 61. Sequential Interview1 2 3Involves series of interviewsCandidates moves from room to room
  62. 62. Panel InterviewTwo or more interviewersFormal
  63. 63. Objectives of Interview Helps obtain additional informationfrom applicant Facilitates giving general informationto applicant Help build image of the organization