Human resource management

Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
PAPER CODE- BBALLB 215
NAME OF THE SUBJECT:
HUMAN RESOURCE MANAGEMENT
INTRODCUTION
UNIT-I

WHAT IS HUMAN RESOURCE MANAGEMENT?
According to the British Institute of Personnel Management :
“Personnel Management can be defined as “that part of management which
is concerned with people at work and with their relationship within an
organization.”

According to American Management Association:
Human Resource Management is that field of management which has to do
with planning, organizing and controlling various operative functions of
procuring, developing, maintaining and utilizing a work force in order that
(a) the objectives for which the company is established are attained as
efficiently and economically as possible;
(b) the objectives of all levels of personnel are served to the highest degree;
and
(c) the objectives of the community are duly considered and served.”

EVOLUTION OF HRM

HRM COMPONENTS
• Recruitment: develop a pool of qualified applicants.
– Selection: determine relative qualifications & potential for a job.
• Training & Development: ongoing process to develop worker’s abilities
and skills.
• Performance appraisal & feedback: provides information about how to
train, motivate, and reward workers.
• Labor relations: managers need an effective relationship with labor unions
that represent workers.
– Unions help establish pay, and working conditions.
• Pay and Benefits: high performing employees should be rewarded with
raises, bonuses.

• Increased pay provides additional incentive.
• Benefits, such as health insurance, reward membership in firm.
If management moves to a decentralized structure, HRM should be adjusted as
well.

HUMAN RESOURCE MANAGEMENT-NATURE
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for
competent and well-motivated employees.
• It tries to build and maintain cordial relations between people working at
various levels in the organization.
• It is a multi-disciplinary activity, utilizing knowledge and inputs drawn
from psychology, economics, etc.

HUMAN RESOURCE MANAGEMENT CHALLENGES
Environmental Challenges
• Rapid Change
• Work Force Diversity
• Globalization
• Legislation
• Technology
• Job & Family Roles
• Lack of Skills

Organizational Challenges
• Controlling Costs
• Improving Quality
• Developing Distinctive Capabilities
• Restructuring
Individual Challenges
• Productivity
• Empowerment
• Brain drain
• Ethics & social responsibility
• Job insecurity
• Matching people & organization

PERSONNEL MANAGEMENT V/S HUMAN RESOURCE
MANAGEMENT
PERSONNEL
MANAGEMENT
• It is traditional approach of
managing people at workplace
and is concern of personnel
department.
• It is a routine function.
• Efficient management is given
priority.
HUMAN RESOURCE
MANAGEMENT
• It is modern approach of
managing people at workplace
and is concern of managers of all
level (from top to bottom).
• It is a strategic function.
• Human values and individual
needs are given priority.

(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of
Delhi & Bar Council of India)
CONTINUED…..
• It manages people in accordance
with organization’s goal.
• Organization’s interest is valued
the most.
• It determines human resource
needs and formulate policies by
matching individual’s needs with
organization’s needs.
• Interest of organization and
interest of employee is
harmonized.

HRM vs Strategic HRM
HRM
• Human resource management
(HRM) implies the governance of
manpower of the organization in a
thorough and structured manner.
• Responsibility lies with Staff
specialist
• Fragmented Approach
• Concerned with employee
relations
SHRM
• SHRM is a managerial function
which implies framing of HR
strategies in such a way to direct
employees efforts towards the
goals of organization.
• Responsibility lies withLine
manager
• Integrated Approach
• Concerned with internal and
external relations

CONTINUED….
• Short term
• Follows change
• Stringent control over employees
• Long term
• Initiates change
• It exhibits leniency.

CURRENT TRENDS IN HUMAN RESOURCE
MANAGEMENT
• Globalization and its implications
• Work-force Diversity
• Changing skill requirements
• Continuous improvement programs
• Re-engineering work processes for improved productivity
• Contingent workforce
• Mass Customization
• Decentralized work sites
• Employee involvement
• Technology
• Health
• Family work life balance

HUMAN RESOURCE PLANNING
UNIT-II

MEANING
• In simple words, HRP is understood as the process of forecasting an
organization's future demand for, and supply of, the right type of people in
the right number.
• After this only the HRM department can initiate the recruitment and
selection process
• Its called by manpower planning, personal planning or employment
planning

DEFINITION
• It includes the estimation of how many qualified people are necessary to
carry out the assigned activities, how many people will be available, and
what, if anything, must be done to ensure that personal supply equals
personnel demand at the appropriate point in the future.
• Basically it’s the process by which an organization ensures that it has the
right number & kind of people, at the right place, at the right time, capable
of effectively & efficiently completing those tasks that will help the
organisation achieve its overall objectives.

IMPORTANCE OF HRP
FUTURE PERSONNEL NEEDS
• Surplus or deficiency in staff strength
• Results in the anomaly of surplus labour with the lack of top executives
COPING WITH CHANGE
• Enables an enterprise to cope with changes in competitive forces, markets,
technology, products & government regulations

CREATING HIGHLY TALENTED PERSONNEL
• HR manager must use his/her ingenuity to attract & retain qualified & skilled
personnel • Succession planning
PROTECTION OF WEAKER SECTIONS
• SC/ST candidates, physically handicapped, children of the socially disabled &
physically oppressed and backward class citizens
INTERNATIONAL STRATEGIES
• Fill key jobs with foreign nationals and reassignment of employees from within
or across national borders
FOUNDATION FOR PERSONNEL FUNCTIONS
• Provides information for designing & implementing recruiting, selection,
personnel movement(transfers, promotions, layoffs) & training & development

HR DEMAND FORECAST
• Demand forecasting is the process of estimating the future quantity and
quality of people required. The basis of the forecast must be the annual
budget and long-term corporate plan, translated into activity levels for each
function and department.

DEMAND FORECASTING MUST CONSIDER SEVERAL
FACTORS BOTH INTERNAL AND EXTERNAL
• Among external factors are competition(foreign and domestic), economic
climate, laws and regulatory bodies, changes in technology and social
factors.
• Internal factors include budget constraints, production levels, new products
and services, organizational structure and employee separation.

DEMAND FORECASTING HELPS TO
• Quantify the jobs necessary for producing a given number of goods
• Prevent shortage of people where and when they are needed most
• Determine what staff-mix is desirable in the future
• Monitor compliance with legal requirements with regard to reservation of
jobs
• Asses appropriate staffing levels in different parts of the organization so
as to avoid unnecessary costs

DEMAND FORECASTING TECHNIQUES
• Managerial judgment
• Ratio-trend analysis
• Work study techniques
• Delphi technique
• Flow models
• Other techniques

HR SUPPLY FORCAST
Supply forecasting measures the no of people likely to be available from
within and outside an organisation, after making allowance for
absenteeism, internal movements and promotions, wastage and changes in
hours and other conditions of work.

NEED FOR SUPPLY FORECAST
• Quantify no of people and positions expected in near future.
• Clarify the staff mixes.
• Prevent shortage of people
• Asses present staffing levels in different parts of organization.

SUPPLY ANALYSIS
• Existing human resources
• Internal sources of supply
• External sources of supply

JOB ANALYSIS
• process of collecting and studying information process of collecting and
studying information relating to the operations and responsibilities of a
relating to the operations and responsibilities of a specific job. specific job.
• determination of tasks which comprise the job and of determination of
tasks which comprise the job and of skills, knowledge, abilities and
responsibilities skills, knowledge, abilities and responsibilities required of
the worker for a successful performance required of the worker for a
successful performance and which differentiates one job from all others.
and which differentiates one job from all others. products of Job
Analysis are Job Description & Job products of Job Analysis are Job
Description & Job Specification

STEPS IN JOB ANALYSIS
• Collection of Organisational Structure Information
• Selection of Representative Position to be Analysed Collection of Job
Analysis Data
• Developing Job Description
• Developing Job Specification

JOB ANALYSIS PROCESS OF OBTAINING ALL
PERTINENT JOB FACTS
Job Description
A proper definition & design A proper definition & design of work. A
statement of work. A statement containing :
Job Title
• Location
• Job Summary
• Duties & Responsibilities Duties & Responsibilities Materials,
• Tools & Equipment Materials used
• Forms & reports handled
• Supervision given / received
• Working conditions Hazards & Safety precaution

Job Specification
A statement of human qualifications necessary to qualifications
necessary to do the job containing:
•Education & Qualifications
•Experience & Training
•Knowledge & Skills
•Communication skills
•Physical requirements - Height, Weight, Age
•Personality requirements
• Appearance,
•Judgment,,
•Initiative,
•Emotional stability

RECRUITMENT
External recruiting: managers look outside the firm for people who have
not worked at the firm before.
• Managers advertise in newspapers, hold open houses, recruit at
universities, and on the Internet.
– External recruitment is difficult since many new jobs have
specific skill needs.
– A multi-prong approach to external recruiting works best.
Internal Recruiting: positions filled within the firm.
• Internal recruiting has several benefits:
– Workers know the firm’s culture, may not have new ideas.
– Managers likely already know the candidates.
– Internal advancement can motivate employees.

SELECTION TOOLS
Background
Information
Interviews References
Paper tests
Physical
Ability tests
Performance tests
Selection

WHAT IS INDUCTION?
• Once an employee is selected and placed on an appropriate job, the process
of familiarizing him with the job and the organization is known as
induction.
• Induction is the process of receiving and welcoming an employee when he
first joins the company and giving him basic information he needs to settle
down quickly and happily and stars work.

JOB CHANGES
• Mobility of employees from one job to another through transfer, promotion
and demotion is internal mobility and some employees leave the
organization due to resignation, retirement and termination is called
external mobility. Taking internal and external together makes job change.

WHY JOB CHANGES EMERGE?
• Changes in the structure of the organization involving job redesign, job
regrouping etc.
• Changes in technology.
• Changes in political environment.
• Changes in legal policies.
• Fluctuation in volume of work due to expansion, diversification etc.
• Changes in demand of trade union.
• Changes in the knowledge, skills and values of employees.

Training and Development
UNIT-III

MEANING OF TRAINING
“Training refers to the process of educating and developing selected
employees so that they have the knowledge, skills, attitudes and
understanding needed to manage in future position.”

NEED FOR TRAINING
The need for training arises because of following reasons:
1. Environmental changes
2. Organizational complexity
3. Human relations
4. To match employee specifications with the job requirements and
organizational needs

IMPORTANCE OF TRAINING
1. Increased Productivity:
2. Improvement in Employee Morale
3. Better Safety
4. Reduced Supervision
5. Personal Growth
6. Ensure better Placement
7. .Organizational Stability

TYPES OF TRAINING
• Induction Training
• Job Training
• Safety Training
• Promotional Training
• Refresher Training
• Remedial Training
• Internship Training

TRAINING PROGRAM FRAMEWORK DEVELOPMENT

EXECUTIVE DEVELOPMENT
Executive development means not only improvement in job performance,
but also improvement in knowledge, personality, attitude, behaviorism of
an executive, etc.

EXECUTIVES DEVELOPMENT PROGRAMMES:
On-the-job techniques
(a) The coaching method,
(b) Understudy method,
(c) Job rotation,
(d) Special projects,
(e) Committee assignments, and
(f) Selective

Off-the job methods
(a) Case studies,
(b) Role playing,
(c) In-basket methods,
(d) Business games,
(e) Sensitivity training,
(f) Simulation,
(g) Incident method,
(h) Conferences,
(i) Lectures, and
(j) Syndicate method.

PERFORMANCE APPRAISAL
• Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth and
development. Performance appraisal is generally done in systematic ways
which are as follows:
• The supervisors measure the pay of employees and compare it with targets
and plans.
• The supervisor analyses the factors behind work performances of
employees.
• The employers are in position to guide the employees for a better
performance.

PERFORMANCE APPRAISAL METHODS
Traditional Trait Appraisal Methods:
• Ranking methods
• Graphic Rating Scale method
• Critical Incidents Method
• Checklist Methods
• Essay Method
• Field Review Method.

Modern Appraisal Methods:
• Management by Objectives
• 360 – Degree Feedback Appraisal
• Behaviorally Anchored Rating Scales,
• Assessment Genre
• Human Resource Accounting
• Balanced Scorecard

ADVANTAGES OF PERFORMANCE APPRAISAL
It is said that performance appraisal is an investment for the company which
can be justified by following advantages:
• to chalk out the promotion programmes
• helps in chalking out compensation packages for employees
• helps the supervisors to frame training policies and programmes
• helps the supervisors to understand the validity and importance of the
selection procedure
• helps in maintaining cordial and congenial labour management relationship
• It develops the spirit of work and boosts the morale of employees.
• Performance appraisal serves as a motivation tool.

LIMITATIONS OF PERFORMANCE APPRAISAL METHODS
Some of the major limitations of performance appraisal are:
1. Bias of Appraiser
2. Ambiguity in Standards
3. Insufficient Evidence
4. Several Qualities Remain Without Appraisal
5. Leniency or Strictness Tenancy
6. Average Rating Problem
7. Influence of Man’s Job and
8. Similarity Error

COMPENSATION AND MANAGEMENT
UNIT-IV

WHAT IS COMPENSATION?
Compensation is the total cash and non-cash payments that you give to an
employee in exchange for the work they do for your business. It is typically
one of the biggest expenses for businesses with employees. Compensation
is more than an employee’s regular paid wages. It also includes many other
types of wages and benefits.

TYPES OF COMPENSATION
• Base pay (hourly or salary wages)
• Sales commission
• Overtime wages
• Tip income
• Bonus pay
• Recognition or merit pay
• Benefits (insurances, standard vacation policy, retirement)
• Stock options
• Other non-cash benefits

JOB EVALUATION
Job evaluation is the rating of jobs in an organisation. This is the process of
establishing the value or worth of jobs in a job hierarchy. It attempts to
compare the relative intrinsic value or worth of jobs within an organisation.
Thus, job evaluation is a comparative process.

OBJECTIVES OF JOB EVALUATION
1. Provide a standard procedure for determining the relative worth of each job
in a plant.
2. Determine equitable wage differentials between different jobs in the
organization.
3. Eliminate wage inequalities.
4. Ensure that like wages are paid to all qualified employees for like work.
5. Form a basis for fixing incentives and different bonus plans.
6. Serve as a useful reference for setting individual grievances regarding wage
rates.
7. Provide information for work organisation, employees’ selection, placement,
training and numerous other similar problems.
8. Provide a benchmark for making career planning for the employees in the
organisation.

PROCEDURE OF JOB EVALUATION

COMPONENTS OF EMPLOYEE COMPENSATION

•Basic compensation refers to the basic pay of an employee which is usually
expressed in terms of a pay scale e.g. 5,000-200-10,000- 500 -20000 etc.
•Supplementary compensation refers to payment of allowances and provision
of perks or perquisites
i. Allowances refers to amounts of money which are given to employees regularly
for particular purposes;
ii. Perks refer to privileges enjoyed by a person because of his/her organizational
status and paid/provided in addition to wages/ salaries.

MAINTENANCE
• Employee Maintenance refers to the maintenance of employee master data.
• It allows the management of employee data such as contact information,
cost involved and share of compound costs.
• The sum of monthly costs for an internal resource will be broken down to
an hourly rate that is used to calculate costs on activities (project tasks,
RFC's, incidents, etc.)

EMPLOYEE WELFARE
Employee welfare means “the efforts to make life worth living for
workmen.” According to Todd “employee welfare means anything done for
the comfort and improvement, intellectual or social, of the employees over
and above the wages paid which is not a necessity of the industry.”

EMPLOYEE INVOLVEMENT AND PARTICIPATION AT
WORK
• Participative management is a tool that is used to motivate the employees.
When subordinates are involved in decision-making at all levels it is known
as participation.
• According to New-storm and Davis, ‘participation is the mental and
emotional involvement of people in group situations that encourages them
to contribute to group goals and share responsibility for them’.

FLEXTIME
• Flextime or Flexitime is a non-traditional approach to work hour
scheduling.
• This allows employees to select their working hours on their own.
• There is, however, a particular core time period for which all employees
have to be present at work.
• The rest of the work hours can be adjusted as per the employee’s
convenience.

ESOP : EMPLOYEE STOCK OWNERSHIP PLAN
• An ESOP is a defined contribution employee benefit plan that allows
employees to become owners of stock in the company they work for.
• It is an equity based deferred compensation plan. Several features make
ESOPs unique as compared to other employee benefit plans.
• First, only an ESOP is required by law to invest primarily in the securities
of the sponsoring employer.
• Second, an ESOP is unique among qualified employee benefit plans in its
ability to borrow money.

Human resource management

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Similar to Human resource management

Similar to Human resource management (20)

More from cpjcollege

More from cpjcollege (20)

Recently uploaded

Recently uploaded (20)

Human resource management