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  2. 2. Module 1 Introduction to human resource management – definition and scope of PM, HRM and HPM- human resource planning – concept , aims and objectives- job analysis- job description and job specification- recruitment – sources of manpower supply – selection – test, interview and reference – induction and placement- promotion and transfer.
  4. 4. CONCEPTS MANAGEMENT – Accomplishment of organisational objectives by utilizing physical, & financial resources through the efforts of human resources. RESOURCES - factors of production results in conversion of raw materials into useful goods/services.
  5. 5. Evolution of concept of HR 1. Labour / Manpower – denotes physical abilities & capacities of employees – commodity-wages based on demand & supply 2. Personnel – persons employed in service – employees as a whole 3. HR- denotes resources of all the people who contribute their services to the attainment of organisational goals
  6. 6. Evolution of concept of HR HRM – the term emerged in 1970s The state intervention to protect the rights of the employees encouraged the growth of HRM The major factors that contributed to the growth of HRM are : ◦ The First World war which resulted in scarcity of labour ◦ Emergence of Trade Unions ◦ Factories Act, 1948 (labour welfare) ◦ Formation of Indian Institue of Personnel Management ◦ Formation of National Institute of Labour Management ◦ The Second World War
  7. 7. Importance of HRM Importance to organization Importance to employees Importance to society Organizations – not mere bricks, machines or inventories. Involves application of management functions. Decisions relating to employees must be integrated. Decisions made must influence the effectiveness of organization. Applicable to non business organizations as well.
  8. 8. Importance of HRM HR – most important resource Put other resources to proper use Help transform lifeless factors of production into useful products Capable of enlargement – produce extraordinary things when inspired Can help organisation achieve results quickly, efficiently & effectively.
  9. 9. Objectives of HRM
  10. 10. Scope of Human Resource Management The personnel aspect The welfare aspect The industrial relations aspect
  11. 11. SCOPE OF HRM
  12. 12. Limitations of HRM Recent origin Lack of top management support Improper implementation Inadequate development programmes Inadequate implementation
  13. 13. Functions of HR Manager Line function Coordination function Staff function ◦ In hiring, training, evaluating, rewarding, counselling, promoting & terminating ◦ Employee Advocacy role ◦ Strategic role ◦ Statutory role
  14. 14. Planning- plan & research about wage trends,labour mkt etc Organizing- manpower and resources Staffing- recruitment & selection Directing- issuance of orders and instructions to follow plan of action Controlling – to regulate the activities Operational Functions of HRM Procurement- planning , Recruitment & Selection , Induction & Placement Development – T & D, Career Planning & Counseling Compensation- Wage & Salary administration Integration Maintenance – improving work conditions, retentions Separation - caused by resignations, retirement, death, medical reasons etc Managerial functions of HRM
  15. 15. Features of HRM Concerned with employees, both individuals and as a group Development of HR. covers all levels and all categories – unskilled/skilled/tech/prof/clerical/ managerial Applies to all types of organisation Continuous process Aims at attaining the goals of an organisation Responsibility of all line managers and a function performed by staff managers.
  16. 16. OBJECTIVES OF HRM 1. Help the organisation reach its goals 2. Employ the skills & abilities of the workforce efficiently 3. Provide the organisation with well trained & motivated employees 4. Increase to the fullest the employee's job satisfaction & self actualization 5. Develop & maintain a quality of work life 6. Communicate HR policies to all employees. 7. Ethically & socially responsive to the needs of society.
  17. 17. Personnel management Pigou & Myers A basic management function or activity permeating all levels of management in any organization. Jucius – the field of management which has to do with planning, organizing, directing and controlling the functions of procurring, developing, maintaining and utilizing a human resource force, such that the objectives for which the company is established are attained economically & effectively.
  18. 18. Personnel management Torrington & Hall – A series of activities which first enable working peeople and their employing organizations to agree about the objectives and nature of their working relationships and secondly ensures that the agreement is fulfilled. Personnel management aims at achieving efficiency and justice.
  19. 19. Functions of Personnel Management Manpower planning Recruitment Selection Training and development
  20. 20. PERSONNEL MGT HRM Mgmt of people employed Mgmt of KSA, attititudes.. Man is an economic resource/service exchanged for wage / salary Man is an economic, social & psychological resource Commodity that can be purchased & used Treated as a valuable resource Employees are cost centers, mgmt controls cost Profit centre- invest capital for development & future use Used organisational benefit Used for organisation, individual & family benefit Auxiliary function Strategic mgmt function
  21. 21. Human Potential management Latest trend or the third wave of people management The dictionary meaning of recourse – “something which can be controlled and manipulated” the superior mental capabilities of humans are not consdered. Dictionary meaning of “potential” – “capable of coming into being or into action” This calls for proactive action rather than reactive management.
  22. 22. Main principles of HPM Belief in self management Human being are not used as a resource but encouraged to use their potential HPM is and integrative and continuous process to develop human capabilities and enhance their potential The focus is on turning employees potential to their own advantage, with the organization benefitting indirectly.
  23. 23. Human resource planning Concept The process including forecasting, developing and controlling by which a firm ensures that it has the right number and the right kind of people at the right places at the right time doing work for which they are economically most useful.
  24. 24. Activities in HR planning Forecasting Inventory Anticipating labour shortages Planning
  25. 25. Need for HRP Replacement of persons Labour turnover Expansion plans Technological changes Assessing needs
  26. 26. Factors affecting HRP Time Horizons Type & quality Of Forecasting Info Nature Of Job Being filled Outsourcing Type & strategy Of organization Enivrmntl uncertainties Organizational Growth & cycle HRP
  27. 27. HRP Process HR Needs Forecast HR Programming HRP Implementation Control and Evaluation ShortageSurplus Environment Org objectives and policies HR Supply Forecast
  28. 28. HRP Process - I Environment - : 1) Economic factors 2) Technological Changes 3) Demographic changes 4) Political and legislative issues 5) Social concerns
  29. 29. HR Demand forecasting techniques Flow models Work study Technique Delphi Technique Regression analysis Managerial judgment Ratio trend Analysis HR Demand forecast
  30. 30. HR Supply Forecast The supply chain analysis covers : 1.Existing human resources 2.Internal sources of supply 3.External sources of supply
  31. 31. Aims of Human Resource planning To be prepared for fresh & increasing demands Filling the gaps due to attrition & promotions To face the changes in job requirements To avoid disruptions in business due to shortage of manpower Lead time for hr activities Understanding the surplus and shortage of personnel
  32. 32. Objectives of HRP Utility as a planning and control technique Accurate estimation of required number of employees Providing the management the information on the methods of utilization of existing personnel Matching the HR requirements with the organizational goals Saving the HR cost Indications on Lead time
  33. 33. Importance of HRP Future personnel needs Part of strategic planning Creating highly talented personnel International strategies Foundation for personnel functions Increasing investments in HR Resistance to change & move
  34. 34. Job Analysis The process of studying and collecting information relating to the operations and responsibilities of a specific job. Followed by job description and job specification. Job description – duties, responsibilities, working conditions & activities Job Specifications – employee qualifications – experience, knowledge, skills or abilities
  35. 35. Process of Job Analysis
  36. 36. Data collection methods for JD Worker oriented methods Job oriented methods
  37. 37. Techniques of Job analysis Qualitative Methods Questionnaire Observation method Interview method Record Critical incidents Job performance
  38. 38. Techniques of Job analysis Quantitative Methods Position analysis Questionnaire (194 job elements) ◦ Information input ◦ Mental process ◦ Relationships ◦ Job context ◦ Other Job characteristics Management Position description Questionnaire (274 elements)
  39. 39. Purpose of Job Analysis HRP Recruitment & Selection Training & Development Job Evaluation Remuneration Performance Appraisal Personnel Information Safety & Health
  40. 40. Job Description An organized factual statement of job contents in the form of duties and responsibilities
  41. 41. Contents of J.D. Job title Job summary Job location (dept) Duties & Responsibilities Machines, tools & Materials Working conditions Nature of Supervision Relation to others
  42. 42. Job Specification A statement of minimum acceptable human qualities necessary to perform a job properly
  43. 43. Contents of Job Specification Physical characteristics height, weight, chest, vision, hearing, age, voice) Psychological & Social Characteristics (emotional stability, flexibility, pleasing manners) Mental Characteristics (intelligence, memory, judgement, concentration) Personal characteristics (education, experience, family) Essential attributes, desirable attribute, contra indicators
  44. 44. Recruitment Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in the organisation Types of recruitment Internal – closed – entry level at the lowest level External - open
  45. 45. Initiating the recruitment process Matters to be considered before initiating the recruitment process Clarification of scope and skill sets Review of job fact sheet or JD. Review of compensation available Analysis of the impact of hiring on the budget.
  46. 46. Recruitment Process Identify vacancy Prepare job description and job Specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision making
  47. 47. Types of Recruitment needs PLANNED ANTICIPATED UNEXPECTED
  48. 48. Factors governing recruitment External factors Internal factors 1. Supply & demand 2. Unemployment rate 3. Labour market 4. Political 5. Social 6. Image 1. Recruitment policy 2. HRP 3. Size of firm 4. Cost 5. Growth 6. Expansion
  49. 49. Sources of Internal recruitment Internal 1. Current employee 2. Retired employee 3. Former employee 4. Employee Referals
  50. 50. Sources of Recruitment
  51. 51. Internal recruitment Advantages Disadvantages 1. Less costly 2. Candidates already oriented towards organization. 3. Organizations has better knowledge about the candidates 4. Enhancement of employee morale motivation 5. Good performance is rewarded. 1. Perpetuates the old method of doing things 2. Candidates present role may be affected 3. Politics play a greater role 4. Morale problem for those who are not promoted.
  52. 52. External recruitment Advantages Disadvantages 1. New skills, new talents and new experience to the organization 2. Compliance with reservation policy becomes easy 3. Scope of internal HR problems are avoided 1. Better morale and motivation chance are lost 2. It is costly 3. Chances of creeping in false positives or false negative error are more
  53. 53. Errors in Recruitment The False Positive Error The False Negative Error
  54. 54. Selection The process of differentiating between applicants in order to identify those with the greater likelihood of success in job.
  55. 55. Factors affecting selection External environment -Supply and demand of specific skill -Unemployment rate -Legal & political considerations -Company’s image Internal environment -Company’s policy -HRP -Cost of hiring
  56. 56. 1. Preliminary Interview 2. Selection Tests 3. Employment Interview 4. Reference and Background Checks 5. Selection Decision: 6. Physical Examinations 7. Job Offer 8. Contract Of Employment 9. Evaluation of Selection program
  57. 57. 1. Preliminary Interview: The purpose of this interview is to scrutinize the applicants, i.e. elimination of unqualified applications. 2. Selection Tests: Different types of selection tests may be administrated, depending on the job and the company. Generally tests are used to determine the applicant’s ability, aptitude, and personality.
  58. 58. Tests An objective and standardized measure of a sample of behavior
  59. 59. Measurements in Tests Cognitive (Mental) Abilities Achievement Motor and Physical Abilities Personality and Interests What Tests Measure
  60. 60. Types of Employment Tests Ability Tests ◦ Mental (Cognitive) Ability ◦ Psychomotor Ability ◦ Physical Ability ◦ Sensory Ability Achievement and Skill Tests ◦ Job Knowledge ◦ Performance/Work Sample
  61. 61. Types of Employment Tests Personality/Interest Inventories Other Types of Tests ◦ Integrity (honesty) ◦ Drug
  62. 62. “Successful” Intelligence Analytical intelligence ◦ “Academic” intelligence Practical Intelligence ◦ “Common sense” as well as social or emotional intelligence; “street smarts” Creative Intelligence Ability to achieve success in life and work; requires a balance among:
  63. 63. Basic Testing Concepts Test Validity The accuracy with which a test, interview, and so on measures what it purports to measure or fulfills the function it was designed to fill. Criterion Validity A type of validity based on showing that scores on the test (predictors) are related to job performance (criterion). Content Validity A test that is content valid is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question Reliability The characteristic that refers to the consistency of scores obtained by the same person when retested with the identical of equivalent tests.
  64. 64. 3. Employment Interview: The next step in the selection process is employment interview, interview can be one- to-one interview or panel interview.
  65. 65. Interviews Formal, in depth conversation conducted to evaluate the applicant’s acceptability. Adapted to unskilled, skilled, managerial & professional employees. 2 way exchange of information, the interviews learnt about the applicant and the applicant learnt about the organization.
  66. 66. Classification of Interviews According to structure ◦ Unstructured ◦ Structured According to purpose ◦ Stress interview ◦ Appraisal interview ◦ Exit interview
  67. 67. Classification of Interviews According to interview’s content ◦ Situational Interview ◦ Job related interview ◦ Behavioural interview According to administering ◦ One to one ◦ Group ◦ Panel
  68. 68. Short comings of interviews Absence of reliability Lack of validity Biases
  69. 69. Objectives of interview Helps in obtaining additional information from applicant Facilitates giving general information to the applicants Helps to build the image of the organisation
  70. 70. 4. Reference and Background Checks: Many employers request names, address, telephone numbers or references for the purpose to verify information and gaining additional background information of an applicant.
  71. 71. Background Investigations and Reference Checks Investigations and Checks ◦ Reference checks ◦ Background employment checks ◦ Criminal records ◦ Driving records ◦ Credit checks Why? ◦ To verify factual information provided by applicants. ◦ To uncover damaging information.
  72. 72. Background Investigations and Reference Checks (cont’d) Former Employers Current Supervisors Written References Social Networking Sites Commercial Credit Rating Companies Sources of Information
  73. 73. 5. Selection Decision: 6. Physical Examinations:
  74. 74. Physical Examination Reasons for preemployment medical examinations: ◦ To verify that the applicant meets the physical requirements of the position. ◦ To discover any medical limitations to be taken into account in placing the applicant. ◦ To establish a record and baseline of the applicant’s health for future insurance or compensation claims. ◦ To reduce absenteeism and accidents. ◦ To detect communicable diseases that may be unknown to the applicant.
  75. 75. 7. Job Offer: The next step in selection process is job offer. Job offer is made through a letter of appointment. Such a letter generally contains a date by which the appointee must report on duty 8. Contract Of Employment: 9 Evaluation of Selection program: The broad test of effectiveness of the selection process is a systematic evaluation .a periodic audit is conducted in the HR department that outlines and highlights the areas which need to be evaluated in the selection process
  76. 76. Induction & placement The process of familiarizing the employee with his new work. - Terms & conditions -May be brief or elaborate Placement – the positioning of the employee in the job to which he is best suited. Effecting a fit between employee competency and job requirements.
  77. 77. Promotion & transfer Demotion
  78. 78. Promotion Transfer of employee to a new position which commands higher pay, privileges or status
  79. 79. Types Limited promotions Dry promotion Multiple chain promotion Up & out promotion Hortizontal Vertical
  80. 80. Basis of promotion Seniority as a basis Merit as a basis Seniority-cum-Merit as basis
  81. 81. Purpose and Advantages of Promotion Recognize employee’s performance and commitment and Motivate employees towards better performance Develop competitive spirit among employees for acquiring knowledge and skills for higher level jobs Retain skilled and talented employees Reduce discontent and unrest Utilize more effectively the knowledge and skills of employees Attract suitable and competent employees.
  82. 82. Transfers A transfer refers to a horizontal or lateral movement of an employee from one job to another in the same organization without any significant changes status and pay.
  83. 83. Need and purpose of Transfers 1. To meet organizational needs 2. To satisfy employee Needs 3. To better utilization of Employees 4. To make the Employee More versatile 5. To adjust the work force 6. To provide Relief 7. To Punish Employees
  84. 84. Types of Transfers General Transfer Production Transfer Replacement Transfer Versatility Transfer Remedial Transfer Shift Transfer Punishment/ Penal transfer Request transfer Mutual transfer