Human Resource ManagementHRM Report Submitted to Sir Tanzeen Qadri“HRM is a series of integrated decisions that form theem...
1Table of ContentsIntegration................................................................................................
2Functions of the HR Manager........................................................................10A line function .......
3Foundation of personnel functions:...................................................................14Increasing investm...
4Integration“HRM is a series of integrated decisions that form the employment relationships;their quality contributes to t...
5OBJECTIVES OF HRM1. Societal Objectives: To be ethically and socially responsible to the needs andchallenges of the socie...
6What is HRM?We use the answer to the question as to “what is HRM?” is that it is all aboutpeople in organizations. No won...
7HRM ActivitiesØ HR PlanningØ Job AnalysisØ Job DesignØ Recruitment & SelectionØ Orientation & PlacementØ Training & Devel...
8Role of HR Managers (Today)Ø Humanitarian Role: Reminding moral and ethical obligations to employeesØ Counselor: Consulta...
9ü Controlling: Regulating personnel activities and policies according to plans.Observations and comparisons of deviations...
10Basic HR ConceptsHR creates value by engaging in activities that produce the employee behaviorsthe company needs to achi...
11HR and AuthorityAuthorityThe right to make decisions, direct others’ work, and give orders.Implied authorityThe authorit...
12HR Department Organizational Chart (Large Company)Cooperative Line and Staff HR ManagementØ The line manager’s responsib...
13information about customer complaints, information about pendinglegislation etc.can be provided by HRM. Unique HR capabi...
14NEED & IMPORTANCE OF HRPForecast future personnel needs: To avoid the situations of surplus or deficiency ofmanpower inf...
15effectively throughout their careers. Becausehuman assets can increase theorganization value tremendously as opposed to ...
16HRP SYSTEMHRP System as such includes following elements or sets for planning.Ø Overall Organization ObjectivesØ Busines...
17HRP PROCESSOrganizational Objectives & Policies: -The objectives of HR plan must be derived from organizational objectiv...
18Reasons for Manpower Demand ForecastingØ To quantify jobsØ To determine the Staff-mixØ To assess staffing levels and avo...
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Human resouce management

  1. 1. Human Resource ManagementHRM Report Submitted to Sir Tanzeen Qadri“HRM is a series of integrated decisions that form theemployment relationships; their quality contributes to theability of the organizations and the employees to achieve theirobjectives.”Engr. Faizan Saleem (25504)
  2. 2. 1Table of ContentsIntegration............................................................................................................. 4Influencing............................................................................................................. 4Applicability .......................................................................................................... 4Introduction .......................................................................................................... 4OBJECTIVES OF HRM ............................................................................................. 5SCOPE OF HRM...................................................................................................... 5What is HRM?........................................................................................................ 6Features of HRM ................................................................................................... 6HRM Activities....................................................................................................... 7ROLE OF HRM........................................................................................................ 7Role of HR Managers (Today)................................................................................ 8Ø Counselor: .................................................................................................... 8Ø Problem Solver: ............................................................................................ 8Role of HR Managers (Future)............................................................................... 8Managerial Functions of HRM............................................................................... 8ü Planning:....................................................................................................... 8ü Organizing..................................................................................................... 8ü Staffing ......................................................................................................... 8ü Directing....................................................................................................... 8ü Controlling.................................................................................................... 9Personnel Aspects of a Manager’s Job.................................................................. 9Personnel Mistakes ............................................................................................... 9Basic HR Concepts................................................................................................10Line and Staff Aspects of HRM...........................................................................10Line Managers’ HRM Responsibilities..................................................................10
  3. 3. 2Functions of the HR Manager........................................................................10A line function ...................................................................................................10A coordinative function......................................................................................10Staff (assist and advise) functions ......................................................................10HR and Authority .................................................................................................11Authority ...........................................................................................................11Implied authority...............................................................................................11Line authority ....................................................................................................11HR Job Duties .......................................................................................................11Recruiters ..........................................................................................................11Equal employment opportunity (EEO) coordinators...........................................11Job analysts........................................................................................................11Compensation managers ...................................................................................11Training specialists .............................................................................................11Labor relations specialists..................................................................................11Cooperative Line and Staff HR Management.......................................................12Strategic Management.........................................................................................12ROLE OF HRM IN STRATEGIC MANAGEMENT.......................................................12Role in Strategy Implementation: .....................................................................13HUMAN RESOURCE PLANNING ( H R P ) ..............................................................13PURPOSE OF HRP .................................................................................................13NEED & IMPORTANCE OF HRP..............................................................................14Forecast future personnel needs: ......................................................................14Cope with change: .............................................................................................14Creating highly talented personnel: ...................................................................14Protection of weaker sections............................................................................14International strategies:.....................................................................................14
  4. 4. 3Foundation of personnel functions:...................................................................14Increasing investments in HR:............................................................................14Other benefits: Following are the other benefits of HRP.......................................15HRP SYSTEM .........................................................................................................16HRP PROCESS .......................................................................................................17Organizational Objectives & Policies: -...............................................................17Manpower Demand Forecasting...........................................................................17Internal Factors..................................................................................................17External Factors .................................................................................................17Reasons for Manpower Demand Forecasting........................................................18Summary ..............................................................................................................18
  5. 5. 4Integration“HRM is a series of integrated decisions that form the employment relationships;their quality contributes to the ability of the organizations and the employees toachieve their objectives.”Influencing“HRM is concerned with the people dimensions in management. Since everyorganization is made up of people, acquiring their services, developing their skills,motivating them to higher levels of performance and ensuring that they continueto maintain their commitment to the organization are essential to achievingorganizational objectives. This is true, regardless of the type of the organization –government, business, education, health, recreational, or social action.”Applicability“HRM planning, organizing, directing and controlling of the procurement,development, compensation, integration, maintenance and separation of humanresources to the end that individual, organizational and social objectives areaccomplished.”IntroductionDefinition of HRM encompasses the management of people in organizations froma macro perspective i.e. managing people in the form of a collective relationshipbetween management and employees. This approach focuses on the objectivesand outcomes of the HRM function. What this means is that the HR function incontemporary organizations is concerned with the notions of people enabling,people development and a focus on making the “employment relationship”fulfilling for both the management and employees.These definitions emphasize the difference between Personnel Management asdefined in the second paragraph and human resource management as describedin the third paragraph. To put it in one sentence, personnel management isessentially “workforce” centered whereas human resource management is“resource” centered. The key difference is HRM in recent times is about fulfillingmanagement objectives of providing and deploying people and a greateremphasis on planning, monitoring and control.
  6. 6. 5OBJECTIVES OF HRM1. Societal Objectives: To be ethically and socially responsible to the needs andchallenges of the society while minimizing the negative impact of such demandsupon the organization.2. Organizational Objectives: To recognize the role of HRM in bringing aboutorganizational effectiveness. HRM is only means to achieve to assist theorganization with its primary objectives.3. Functional Objectives: To maintain department’s contribution and level ofservices at a level appropriate to the organization’s needs.4. Personal Objectives: To assist employees in achieving their personal goals, atleast in so far as these goals enhance the individual’s contribution to theorganization. This is necessary to maintain employee performance and satisfactionfor the purpose of maintaining, retaining and motivating the employees in theorganization.SCOPE OF HRMFrom Entry to the Exit of an employee in the organization.Scope of HRM can be described based on the following activities of HRM. Basedon these activities we can summarize the scope of HRM into 7 different categoriesas mentioned below after the activities. Let’s check out both of them.7 Categories of Scope of HRM1. Introduction to HRM2. Employee Hiring3. Employee and Executive Remuneration4. Employee Motivation5. Employee Maintenance6. Industrial Relations7. Prospects of HRM
  7. 7. 6What is HRM?We use the answer to the question as to “what is HRM?” is that it is all aboutpeople in organizations. No wonder that some MNC’s (Multinationals) call the HRmanagers as People Managers, People Enablers and the practice as peoplemanagement. In the 21st century organizations, the HR manager or the peoplemanager is no longer seen as someone who takes care of the activities describedin the traditional way. In fact, most organizations have different departmentsdealing with Staffing, Payroll, and Retention etc. Instead, the HR manager isresponsible for managing employee expectations vis-à-vis the managementobjectives and reconciling both to ensure employee fulfillment and realization ofmanagement objectives.Features of HRMHuman Resource Management is a process of bringing people and organizationstogether so that the goals of each are met.The various features of HRM include:• 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 forcompetent and well-motivated employees.• It tries to build and maintain cordial relations between people working atvarious levels in the organization.• It is a multidisciplinary activity, utilizing knowledge and inputs drawn frompsychology, economics, etc.
  8. 8. 7HRM ActivitiesØ HR PlanningØ Job AnalysisØ Job DesignØ Recruitment & SelectionØ Orientation & PlacementØ Training & DevelopmentØ Performance AppraisalsØ Job EvaluationØ Employee and Executive RemunerationØ MotivationØ CommunicationØ WelfareØ Safety & HealthØ Industrial RelationsROLE OF HRMAdvisory Role: HRM advises management on the solutions to any problemsaffecting people,personnel policies and procedures.Personnel Policies: Organization Structure, Social Responsibility, EmploymentTerms &Conditions, Compensation, Career & Promotion, Training & Developmentand Industrial Relations.Personnel Procedures: Relating to manpower planning procedures,recruitment and selectionprocedures, and employment procedures, trainingprocedures, management development procedures,performance appraisalprocedures, compensation procedures, industrial relations procedures andhealthand safety procedures.Functional Role: The personnel function interprets and helps to communicatepersonnel policies. Itprovides guidance to managers, which will ensure thatagreed policies are implemented.Service Role: Personnel function provides services that need to be carried outby full time specialists.
  9. 9. 8Role of HR Managers (Today)Ø Humanitarian Role: Reminding moral and ethical obligations to employeesØ Counselor: Consultations to employees about marital, health, mental,physical and career problems.Ø Mediator: Playing the role of a peacemaker during disputes, conflictsbetween individuals and groupsand management.Ø Spokesman: To represent of the company because he has better overallpicture of his company’soperations.Ø Problem Solver: Solving problems of overall human resource managementand long-termorganizational planning.Ø Change Agent:Introducing and implementing institutional changes andinstalling organizationaldevelopment programsØ Management of Manpower Resources: Broadly concerned with leadershipboth in the group andindividual relationships and labor-managementrelations.Role of HR Managers (Future)Ø Protection and enhancement of human and non-human resourcesØ Finding the best way of using people to accomplish organizational goalsØ Improve organizational performanceØ Integration of techniques of information technology with the humanresourcesØ Utilizing behavioral scientists in the best way for his peopleØ Meeting challenges of increasing organizational effectivenessØ Managing diverse workforce.Managerial Functions of HRMü Planning: Plan and research about wage trends, labor market conditions,union demands and other personnel benefits. Forecasting manpower needsetc.ü Organizing: Organizing manpower and material resources by creatingauthorities and responsibilities for the achievement of organizational goalsand objectives.ü Staffing: Recruitment & Selectionü Directing: Issuance of orders and instructions, providing guidance andmotivation of employees to follow the path laid-down.
  10. 10. 9ü Controlling: Regulating personnel activities and policies according to plans.Observations and comparisons of deviations.Personnel Aspects of a Manager’s JobØ Conducting job analyses (determining the nature of each employee’s job)Ø Planning labor needs and recruiting job candidatesØ Selecting job candidatesØ Orienting and training new employeesØ Managing wages and salaries (compensating employees)Ø Providing incentives and benefitsØ Appraising performanceØ Communicating (interviewing, counseling, disciplining)Ø Training and developing managersØ Building employee commitment.Personnel MistakesØ Hire the wrong person for the jobØ Experience high turnoverØ Have your people not doing their bestØ Waste time with useless interviewsØ Have your company in court because of discriminatory actionsØ Have your company cited by OSHA for unsafe practicesØ Have some employees think their salaries are unfair and inequitable relativeto others in the organizationØ Allow a lack of training to undermine your department’s effectivenessØ Commit any unfair labor practices
  11. 11. 10Basic HR ConceptsHR creates value by engaging in activities that produce the employee behaviorsthe company needs to achieve its strategic goals.Line and Staff Aspects of HRMLine managerA manager who is authorized to direct the work of subordinates and isresponsible for accomplishing the organization’s tasks.Staff managerA manager who assists and advises line managers.Line Managers’ HRM ResponsibilitiesØ Placing the right person on the right jobØ Starting new employees in the organization (orientation)Ø Training employees for jobs new to themØ Improving the job performance of each personØ Gaining creative cooperation and developing smooth working relationshipsØ Interpreting the firm’s policies and proceduresØ Controlling labor costsØ Developing the abilities of each personØ Creating and maintaining department moraleØ Protecting employees’ health and physical conditionFunctions of the HR ManagerA line functionThe HR manager directs the activities of the people in his or her owndepartment and in related service areas (like the plant cafeteria).A coordinative functionHR managers also coordinate personnel activities, a duty often referred to asfunctional control.Staff (assist and advise) functionsAssisting and advising line managers is the heart of the HR manager’s job.
  12. 12. 11HR and AuthorityAuthorityThe right to make decisions, direct others’ work, and give orders.Implied authorityThe authority exerted by an HR manager by virtue of others’ knowledge thathe or she has access to top management.Line authorityThe authority exerted by an HR manager by directing the activities of thepeople in his or her own department and in service areas.HR Job DutiesRecruitersSearch for qualified job applicants.Equal employment opportunity (EEO) coordinatorsInvestigate and resolve EEO grievances, examine organizational practicesfor potential violations, and compile and submit EEO reports.Job analystsCollect and examine information about jobs to prepare job descriptions.Compensation managersDevelop compensation plans and handle the employee benefitsprogram.Training specialistsPlan, organize, and direct training activities.Labor relations specialistsAdvise management on all aspects of union–management relations.
  13. 13. 12HR Department Organizational Chart (Large Company)Cooperative Line and Staff HR ManagementØ The line manager’s responsibility is to specify the qualifications employeesneed to fill specific positions.Ø HR staff then develops sources of qualified applicants and conduct initialscreening interviewsØ HR administers the appropriate tests and refers the best applicants to thesupervisor (line manager), who interviews and selects the ones he or shewants.Strategic Management“A Process of formulating, implementing and evaluating business strategies toachieve organizational objectives is called Strategic Management”ROLE OF HRM IN STRATEGIC MANAGEMENTRole in Strategy Formulation: HRM is in a unique position to supply competitiveintelligence that maybe useful in strategy formulation. Details regarding advancedincentive plans used by competitors, opinionsurvey data from employees, elicit
  14. 14. 13information about customer complaints, information about pendinglegislation etc.can be provided by HRM. Unique HR capabilities serve as a driving force instrategyformulation.Role in Strategy Implementation: HRM supplies the company with a competent andwilling workforcefor executing strategies. It is important to remember that linkingstrategy and HRM effectively requiresmore than selection from a series of practicechoices. The challenge is to develop a configuration of HRpractice choices thathelp implement the organization’s strategy and enhance itscompetitiveness.HUMAN RESOURCE PLANNING (H R P)Need, Availability, Supply=Demand“HRP includes estimation of how many qualified people are necessary to carry outthe assigned activities,how many people will be available, and what, if anything,must be done to ensure personnel supply equalspersonnel demand at theappropriate point in the future.”PURPOSE OF HRPØ In simple words HRP is understood as the process of forecasting anorganization’s future demand forand supply of the right type of peoplein the right numbers.Ø It is only after HRP is done, that the company can initiate and plan therecruitment and selectionprocess.Ø HRP is a sub-system in the total organizational planning.Ø HRP facilitates the realization of the company’s objectives by providingright type and right number ofpersonnel.Ø HRP is important because without a clear-cut manpower planning,estimation of a organization’shuman resource need is reduced tomere guesswork.
  15. 15. 14NEED & IMPORTANCE OF HRPForecast future personnel needs: To avoid the situations of surplus or deficiency ofmanpower infuture, it is important to plan your manpower in advance. For thispurpose a proper forecasting of futuresbusiness needs helps you to ascertain ourfuture manpower needs. From this angle, HRP plays animportant role to predictthe right size of manpower in the organization.Cope with change:HRP enables an enterprise to cope with changes in competitiveforces, markets,technology, products and government regulations. Such changesgenerate changes in job content, skillsdemands and number of human resourcesrequired.Creating highly talented personnel: Since jobs are becoming highly intellectual andincumbentsgetting vastly professionalized, HRP helps prevent shortages of laborcaused by attritions. Furthertechnology changes would further upgrade or degradejobs and create manpower shortages. In thesesituations only accurate humanresource planning can help to meet the resource requirements. FurtherHRP is also an answer to the problems of succession planning.Protection of weaker sections: A well-conceived personnel planning would alsohelp to protectthe interests of the SC/ST, physically handicapped, children ofsocially oppressed and backward classeswho enjoy a certain percentage ofemployments notwithstanding the constitutional provisions of equalopportunityfor all.International strategies: International expansion strategies largely depend uponeffective HRP.With growing trends towards global operations, the need for HRPfurther becomes more important as theneed to integrate HRP more closely intothe organization keeps growing. This is also because the processof meeting staffingneeds from foreign countries grows in a complex manner.Foundation of personnel functions: HRP provides essential information fordesigning andimplementing personnel functions such as recruitment, selection,personnel development, training anddevelopment etc.Increasing investments in HR: Another importance is the investment that anorganization makesin human capital. It is important that employees are used
  16. 16. 15effectively throughout their careers. Becausehuman assets can increase theorganization value tremendously as opposed to physical assetsOther benefits: Following are the other benefits of HRP.1. Upper management has a better view of HR dimensions of business2. Management can anticipate imbalances before they become unmanageable andexpensive.3. More time is provided to locate talent4. Better opportunities exists to include women and minorities in future growthplans5. Better planning of assignments to develop managers6. Major and successful demands on local labor markets can be made.
  17. 17. 16HRP SYSTEMHRP System as such includes following elements or sets for planning.Ø Overall Organization ObjectivesØ Business EnvironmentØ Forecasting Manpower NeedsØ Assessing Manpower SupplyØ Matching Manpower Demand-Supply factorsBased on these elements we can draw “HRP System Architecture” as under.
  18. 18. 17HRP PROCESSOrganizational Objectives & Policies: -The objectives of HR plan must be derived from organizational objectives likespecific requirements of numbers and characteristics of employees etc. HRP needsto sub-serve the overall objectives by ensuring availability and utilization of humanresources. Specific policies need to be formulated to address the followingdecisions.Ø Internal Hiring or External Hiring?Ø Training & Development plansØ Union ConstraintsØ Job enrichment issuesØ Rightsizing organizationØ Automation needsØ Continuous availability of adaptive and flexible workforceManpower Demand ForecastingIt is the process of estimating the future quantity and quality of people required.The basis should be annual budget and long term corporate plansDemand forecasting should be based on following factors.Internal FactorsØ Budget constraintsØ Production levelsØ New products and servicesØ Organizational structureØ Employee separationExternal FactorsØ Competition environmentØ Economic climateØ Laws and regulatory bodiesØ Technology changesØ Social Factors
  19. 19. 18Reasons for Manpower Demand ForecastingØ To quantify jobsØ To determine the Staff-mixØ To assess staffing levels and avoid unnecessary costsØ Prevent shortages of peopleØ Monitor compliances of legal requirements with regards to reservations.SummaryA human resource management system (HRMS) or human resource informationsystem (HRIS), refers to the systems and processes at the intersectionbetween human resource management (HRM) and information technology. Itmerges HRM as a discipline and in particular its basic HR activities and processeswith the information technology field, whereas the programming of dataprocessing systems evolved into standardized routines and packages of enterpriseresource planning (ERP) software. On the whole, these ERP systems have theirorigin on software that integrates information from different applications intoone universal database. The linkage of its financial and human resource modulesthrough one database is the most important distinction to the individually andproprietary developed predecessors, which makes this software application bothrigid and flexible.

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