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)
Semester: 4th Semester
Name of the Subject:
HUMAN RESOURCE MANAGEMENT
INTRODCUTION

Define HRM
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.”

HRM Components
– Component should be consistent with the others,
organization structure, and strategy.
Recruitment
Selection
Training & Development
Performance appraisal & feedback
Pay and Benefits
Labor Relations

Nature of HRM
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.

Human Resource Management
Challenges
Lack of Skills
Job & Family Roles
Technology
Legislation
Globalization
Work Force Diversity
Rapid Change

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
Confidentiality
Continuous improvement programs
Re-engineering work processes for improved productivity
Contingent workforce

Semester: 4th Semester
HUMAN RESOURCE MANAGEMENT
UNIT-II

HUMAN RESOURCE PLANNING
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

HUMAN RESOURCE 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
• economic climate,
• laws and regulatory bodies,
• changes in technology
• social factors
External
Factors
• budget constraints
• production levels
• new products and services
• organizational structure
• employee separation
Internal
Factors

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

Selection Process
After a pool of applicants are identified, qualifications related to the job
requirements are determined:
• Background Information: includes education, prior employment,
college major, etc.
• Interview: almost all firms use one of two types:
– Structured interview: managers ask each person the same job-
related questions.
– Unstructured interview: held like a normal conversation.
– Usually structured interviews preferred; bias is possible.
• Physical Ability Test: measure strength & endurance.
– Good for physically demanding jobs.

Paper & Pencil Tests: Either an ability and personality test.
– Ability test: assess if applicant has right skills for the job.
– Personality test: seek traits relevant to job performance.
– Be sure test is a good predictor of job performance.
Performance Tests: measure job performance.
– Typing speed test is one example.
– Assessment Center: candidates assessed on job-related
activities over a period of a few days.
References: outside people provide candid information about
candidate.
– Can be hard to get accurate information.

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.

Semester: Fourth
HRM
UNIT- III

DEFINE TRAINING
• Training as defined by some experts of the
management as:
• In the words of Dale, I. Beach, “Training is the
organised procedure in which people learn
knowledge and/or skill for definite purpose.”
• According to Jucius, “The term training is used here
to indicate only the process by which the aptitudes,
skill and ability of employee to perform specific jobs
is increased.”

Importance of Training
Increased Productivity
Improvement in Employee Morale
Better Safety
Reduced Supervision
Personal Growth

Types of Training
Job Training Safety Training
Apprenticeship
Training
Internship
Training
Refresher
Training
Promotional
Training
Remedial
Training

Methods Of Training

Training Program Framework
Development

Semester: Fourth
HRM
UNIT- IV

DEFINE 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

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

Procedure of job evaluation:

Components of Employee
Compensation:

• Basic 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:
Supplementary compensation refers to
payment of allowances and provision of perks
or perquisites. Allowances refers to amounts
of money which are given to employees
regularly for particular purposes

Social Security System in India
• India’s social security system is composed of a
number of schemes and programs spread
throughout a variety of laws and regulations.
Keep in mind, however, that the government-
controlled social security system in India
applies to only a small portion of the
population.

India’s social security schemes cover the
following types of social insurances:
Pension
Health Insurance and Medical
Benefit
Disability Benefit
Maternity Benefit
Gratuity

Employee Grievance Procedure
Timely Action:
Accepting the Grievance:
Identifying the Problem
Collecting the Facts
Analysing the cause of the Grievance
Taking Decision
Implementing the Decision

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