Notes Module 1Bangalore UniversityHRADINTRODUCTIONStrategic Human Resource Management (SHRM) is an area that is constantly emerging and evolving asto what actually the "people" factor can do as an organizations strategic tool. Can be understood as thepattern of planned human resource activities intended to enable an organization to achieve its goals(Wright and McMahan 1992). Strategic Human Resource Management (SHRM) is a concept thatintegrates traditional human resource management activities within a firms overall strategic planningand implementation. SHRM is the HRM customized as per the demands of overall strategy.Q .What is HRM (Human Resource Management) (2 marks) All the activities of an employee from the entry into the organization till he or she leaves fall within thescope of HRM which include Human Resource Planning, job analysis and design, recruitment andselection, placement, training and development, performance appraisal, job evaluation, remuneration,motivation, communication, welfare, safety and health etc.HRM is a management function concerned with hiring, motivating, and maintaining people in anorganizationQ. What is SHRM (Strategic Human Resource Management?)HRM integrated with Strategy Strategic Management refers to the process of formulating, implementing and evaluating businessstrategies to achieve organizational objectives and it involves a team comprising of CEO and other topexecutives."Strategic Human Resource Management is the development of aligned collection of practices,programs and policies to facilitate the achievement of the organizations strategic objectives." - Jeffrey AMelloHuman resources if managed effectively add competitive advantage to the organization. So,management should try to identify people who can align their personal goals with organizational goalsand should try to recruit, train and develop them. Reward System should be developed such that itmotivates the employees to perform better. While the leadership and team work cannot be denied forsuccessful accomplishment of organizational objectives, better performance can be achieved byemployee empowerment wherever necessary.
Q. Describe Model of SHRM (2 marks)1. Resource Based View for Competitive Advantage2. Behavioral approach, where HR practices are designed to control and influence attitudes and behaviorof Personnel.3. Cybernetic System that adopts or abandons practices based on feedback on contributions to Strategy4. Agency and Transaction cost which explains the control systems like performance evaluation andreward systems which are needed for implementation of strategy5. Institutional/ Political factors are not driven by strategic considerations, but they influence thestrategic changes and make the framework comprehensive.6. Resource Dependence and power variable explains the power and political factors, unionization,expectations of corporate social responsibility etc.Q. Describe Steps in Developing Human Resource Strategy (10 marks)1)Understand Business Environment2)HR Mission statement3)SWOT Analysis for HR4)Human Resources Analysis5)Determine critical people issues6)Develop consequences and solutions7)Implement and evaluate the action plan-Understand the Business EnvironmentHighlight the key driving forces of your business like technology, distribution, competition, markets etc.Understand the implications of the driving forces for the people side of your business.Figure out the fundamental people contribution to bottom line business performance.Develop a Mission Statement for HR
That relates to the people side of the business and what the human factor should contribute to theorganization.Do not be put off by negative reactions to the words or references to idealistic statements - it is theactual process of thinking through the issues in a formal and explicit manner that is important.Conduct a SWOT analysis of the organizationFocus on the internal strengths and weaknesses of the people side of the business.• Consider the current skill and capability issues.• Vigorously research the external business and market environment. High light the opportunities andthreats relating to the people side of the business.• What impact will/ might they have on business performance?• Consider skill shortages.• The impact of new technology on staffing levels.From this analysis you then need to review the capability of your personnel department. Complete aSWOT analysis of the department - consider in detail the departments current areas of operation, theservice levels and competences of your personnel staff.Conduct a detailed human resources analysisConcentrate on the organizations COPS (culture, organization, people, HR systems)• Consider: Where you are now? Where do you want to be?• What gaps exists between the reality of where you are now and where you want to be?Exhaust your analysis of all the four dimensions.Determine critical people issuesGo back to the business strategy and examine it against your SWOT Analysis.• Identify the critical people issues namely those people issues that you must address. Those which havea key impact on the delivery of your business strategy.• Prioritize the critical people issues. What will happen if you fail to address them?• Remember you are trying to identify where you should be focusing your efforts and resources.Develop consequences and solutions for each critical issue highlight the options for managerial actiongenerate, elaborate and create - dont go for the obvious.
This is an important step as frequently people jump for the known rather than challenge existingassumptions about the way things have been done in the past. Think about the consequences of takingvarious courses of action.Consider the mix of HR systems needed to address the issues. Do you need to improve communications,training or pay? What are the implications for the business and the personnel function? Once you haveworked through the process it should then be possible to translate the action plan into broad objectives.These will need to be broken down into the specialist HR Systems areas of:• Employee training and development• Management development• Organization development• Performance appraisal• Employee reward• Employee selection and recruitment• Manpower planning• CommunicationDevelop your action plan around the critical issues. Set targets and dates for the accomplishment of thekey objectives.Implementation and evaluation of the action plansThe ultimate purpose of developing a human resource strategy is to ensure that the objectives set aremutually supportive so that the reward and payment systems are integrated with employee training andcareer development plans. There is very little value or benefit in training people.,only to then frustratethem through a failure to provide ample career and development opportunities.Q. What are the responsibilities of SHRM?(2 marks)HR Strategy follows Business strategy.• Attracting a quality workforce• Human resource planning, recruitment, and selection• Developing a quality workforce
• Employee orientation, training and development, and performance appraisal. • Maintaining a quality workforce • Career development, work-life balance, compensation and benefits, employee retention and turnover, and labor-management relationsQ. What is the Role of HR managers in Strategy(4-5 marks)The HR managers have keen role in the effective planning and implementation of the policies anddecisions that in tune with the business changes. They should act as strategic partners and be proactive in their role than mere reactive, passivespectators. The HR managers should understand how far their decisions contribute to business surplusincorporating human competency and performance to the organization.Strategic HR managers need a change in their outlook from seeing themselves as relationship managersto strategic resource managers.According to Kossek (1987, 1989), major HRM innovations occur when senior management takes thelead and adoption of innovative SHRM practices is dependent on the nature of relationship of the HRDepartment with the CEO and the line managers. Legge (1978) opines on the actions of the personnel practitioner in the innovation process thatadoption of an innovation by an organization depends largely on HR practitioners credibility withinformation and resource providers HR Department and HR managers in these innovative organizations play a strategic role (Ulrich, 1997)linking the HR strategy with the business strategy of the organization. A crucial aspect concerning SHRMis the concepts of fit and flexibility. The degree of fit determines the human resource systems integration with organization strategy. It isthe role of HR Managers to ensure this fit in between Human Resource System with the OrganizationStrategy.Q. What are the Barriers to SHRM ?(4-5 marks)Barriers to successful SHRM implementation are often complex.The main reason is a lack of growth strategy or failure to implement one. Other major barriers aresummarized as follows:• Focus on short term benefits and losing the sight of long term effects.
• High resistance due to lack of cooperation from the bottom line.• Difficulty to quantify HR outcomes.• Interdepartmental conflict.• The commitment of the entire senior management team.• Plans that integrate internal resource with external requirements.• Limited time, money and the resources.• The status quo approach of employees.• Inability of HR to think strategically.• Diverse work-force with competitive skill sets.• Fear towards victimization in the wake of failures.• Improper strategic assignments and leadership conflict over authority.• Vulnerability to legislative changes.• Resistance that comes through the legitimate labour institutions.• Presence of an active labour union.• Rapid structural changes.• Economic and market pressures influenced the adoption of strategic HRM.Q. What is HCM (Human Capital Management)?(2 marks)HCM refers to the task of measuring the cause and effect relationship of various HR programs andpolicies on the bottom line of an organization. It seeks to obtain additional productivity. As Human Capital developers-HR executives focus on thefuture, at times at individual level, offering opportunities to develop future abilities and prepare forchange management.Unlike HRM, HCM seeks to identify what is best for that particular company and it puts the responsibilityof Human Resource Management on everyone in the business from employees to executives.Q. What is HRP(Human Resource Planning)(2 marks) HRP is all about managing right number of people with right skills at right place at right time toimplement organizational strategies in order to achieve organizational objectives. In light of theorganizations objectives, corporate and business level strategies, HRP is the process of analyzing an
organizations human resource needs and developing plans, policies, and systems to satisfy those needsAccording to Geisler—"Human Resource Planning is the process-including forecasting, developing andcontrolling—by which a firm ensures that it has the right number of people and the right kind ofQ. What are the Characteristics of Human Resource Planning (4-5 marks)• Human resource must be incorporated keeping organizational goals in view.• HRP is a subsystem of the total organizational planning.• Human Resource plan must have well defined objectives.• HRP should ensure right number of people, right kind of people at the right time doing work for whichthey are economically most useful.• HRP should take into account periodical developments and extension plans of the organization.• While planning adequate flexibility must be maintained to suit the changing needs of theorganization.• HRP includes the inventory of present manpower, supply and demand of the manpower and thepossibilities of using the man power to its full capacity.• HRP includes determination of human resource both in quantitative and qualitative terms.• Human resource is an important asset of an organization, which is affected by its social, cultural,economic and psychological backgrounds. Therefore it should be planned and utilized carefully.Q. Define the Need for HRP (4-5 marks)• Human Resource audit includes capabilities, skills, and potentialities of each individual. Many a timereplacement charts and succession charts are prepared to locate potential candidates for every positionduring the given future period. Non-availability of HR due to turnover, death, superannuation can beplanned. It identifies and develops personnel to move up and assume greater responsibility. • The concept of Human resource planning arises from the realization that organizational successdepends on the success of Human Resource and instead of thinking employees as a necessary evil,should be considered as an asset for competitive advantage. Human Resource Planning must be tied tothe Strategic Planning and thus it is required to translate the strategic plans to people managementplans.• HRP must respond to the structural changes in one hand and to emerging human expectations on theother hand.
• Innovating companies must focus on adequate investment in human capital with systematic planningto quality of work-life balance backed by TQM, which may in turn promotes highly creative and talentedpool of personnel.• Human Resource Planning must be backed by scientific performance appraisals and evaluations bothin quantitative and qualitative terms which can identify the gaps existing and allow corrective measuresto be taken.• HRP helps in anticipating the training and development needs for the employees from time to time.• Ultimately HRP reduces the cost of production by providing adequate personnel and utilizes thehuman force effectively.Q Give an account of HRP (HUMAN RESOURCE PLANNING)(4 -5marks)In achieving the objectives, failure of HR planning may be a limiting factor. If the number of personshired is less than required, production may be hampered & pace of production may be slow andemployees burdened with work. If the employees are more than required, organization may incur largepay bill. So, it is necessary to plan for adequate number of persons. It also aids in planning training anddevelopment programs.HRP plays a significant role in the following aspects.• In estimating future Personnel Needs• As a part of strategic planning.• Creating highly talented personnel.• Developing International Strategies.• As a foundation for personnel functions.• For increasing investments in human resource.• To plan ahead in case of resistance to change from the workforce.• In uniting the perspectives of line and staff managers.Q.What are the Factors Affecting HRP (4-5 marks)HRP is influenced by several factors.• Type and strategy of organization
The type of organization determines the production process involved and the number of staff retained.In addition, the strategic plan of the organization defines its HR needs. Manufacturing organizations aremore complex than service organizations in this context. Primarily an organization decides to be eitherproactive or reactive in HRP that is either it may anticipate the needs in advance and systematicallyplans or it may simply react when the need arises.The strategic choices could be:Internal growth/ Growth through mergers and acquisition Narrow/ broad Informal/ formal Reactive/proactive Inflexible/ flexible• Organization growth cycles and planningThe stage of an organizations growth has considerate influence on HRP.- Small organizations which are in their infancy may not have heavy personnel planning.-Need for planning is felt generally when the organization enters the growth stage.- Mature organizations are less flexible as the workforce gets stabilized and planning becomes moreformal and innovative. Issues like retirement and retrenchment dominate planning.- In the declining stage, planning is done for layoff, retrenchment, retirements etc.• Environmental uncertaintiesHR managers have to operate under highly dynamic environment influenced by political and economicalchanges. The HR mechanisms like recruitment, selection, training, and development policies should beformulated carefully to be able to sustain like .succession planning, layoffs, job-sharing, VRS etc. • Timehorizons HR planners have to handle both short term plans of six to twelve months as well long termplans stretching from three to twenty years, depending upon the organizational environment.• Type and quality of forecasting informationHR managers must maintain well developed job analysis information and HRIS that provide accurate andtimely data. Organizations operating in a stable environment are in a better position to obtain,comprehensive, timely and accurate information because of longer planning horizons, clearer definitionof strategy and objectives.• Nature of jobs being filled Normally job vacancies arise because of employee separations, promotions, and expansion strategies. Itis relatively easier to recruit shop floor workers rather than management personnel.• Off-loading the work / outsourcing
Several organizations outsource part of their work to outside parties either in the form of subcontractingor ancillarization, which helps them to focus on their core competencies as well as to meet productiondeadlines.Q Give details about HRP process (THE HUMAN RESOURCE PLANNING PROCESS)(8-10 marks)Steps in the HR planning process:• Step I - Review organizational mission, objectives, and strategies.• Step 2 - Review HR objectives and strategies.• Step 3 - Assess current HR needs(demand Forecasting).• Step 4 - Forecast HR needs( HR supply Forecasting)• Step 5 - Develop and implement HR plans• Step 6 — Evaluation and feedback of the System.• Step 7 — Control measures appropriately whether then is surplus or shortage of Human Resource.Step 1. Review of Organizational Mission, Objectives and StrategiesHR plans are derived from organizational objectives! Organizational Objectives are defined by topmanagement and the role of HRP is to sub serve the overall objectives by ensuring availability andutilization of human resource.Step 2. Review of HR Objectives and StrategiesOrganizational Objectives must be translated into HR objectives. Specific HR policies should be framed informulating the strategy regarding vacancy filling from internaU external sources, union, constraints, jobenrichment, human resource development, the exten1 ,Step 3. HR Demand Forecasting It is the process of estimating the future requirements of manpower by function and by skill level.Demand assessment is not a problem for operating personnel, but for supervisory and managerial levelsit is difficult.Judgmental forecasts: 1. Managerial Judgment In this method, managers who are well acquainted with workload andcapabilities of employees and future needs sit together, discuss and arrive at a number indicating thefuture demand for labour. This may involve "bottom-up" approach where managers submit theirdepartmental proposals to top managers who arrive at the forecast or "top-down" approach where top
managers prepare organizational and departmental forecasts and let the managers review. In both thecases Departmental Heads are provided with broad guidelines, which eventually help them to arrive atthe forecasting. Though neither of them is accurate, the combination of both them will yield a positiveresult.2. Delphi MethodNamed after the ancient Greek oracle at the city of Delphi, the Delphi technique is a method offorecasting personnel needs using surveys. It is a structured approach to get a number of experts on tocomment on a specific issue. It is a group decision making system, wherein experts who can analyzeinternal and external factors affectng the business are chosen who are usually top level managers orfirst line supervisors. The distinguishing feature of the Delphi technique is that it does not allow face-to-face interaction among expert to avoid difference of opinion and conflicts. Intermediaries are used tosummarize the various responses and report the findings back to the experts. After receiving thisfeedback, experts survey again. This summaries and surveys are repeated until the experts opinionsbegin to agree on the forecast of the personnel needs. To make Delphi method more effective: Expertsshould be given enough information and they should be given an opportunity to explain how sure theyare of the forecasted figures. Limitations of Delphi method: though it is the most popular method, it is atime consuming and expensive process.Statistical Techniques:1. Ratio-Trend AnalysisThis is the quickest forecasting technique. It involves studying past ratios like the number of workerswith sales in an organization and forecasting future ratios, making some allowances for Changes in theorganization or its methods. Activity level forecasts are used to determine the direct human resourcerequirements. This method depends on the availability of past records and the environmental changesthat are likely to occur in future.2. Work—study techniqueThese are generally used to study work measurement. Under the workload analysis, the volume ofworkload in the coming years is analyzed. If the planners forecast expansion in the operations,additional operational workers may be required. If the organization decides to reduce its operations inone area, there is need to downsize workforce. These techniques are more suitable where volume ofwork can be easily measurable. The work study technique also takes into account the productivitypattern for present and future, internal mobility of the workers like promotions and transfers andexternal mobility like retirement, deaths , VRS etc.3. Flow Model/ Markov ModelThis is a simple technique which contains the following components.
• Determine the time that should be covered. The time horizon depends on the length of HR plan, whichin turn is determined by strategic plan of the organization. Shorter lengths of time are more accurate.• Establish "Categories" or "States" to which employees can be assigned. These categories should notoverlap and at the same time every employee must belong to at least a possible category. Number ofstates should not be too large or too small.• Count annual movements (flows) for among different states for several time horizons. These statesmay be either absorbing or non-absorbing. Absorbing indicates losses or gains to the company. Lossesinclude death, disability, absences, resignations, retirements etc. Gains include hiring, transfers ormovement by position level. Non-Absorbing indicates change in position levels or employment status.• Estimate the probability of transitions from one state to another state based on past trends. Demandis a function of replacing those who make a transition. - A simple modification to Markov model called"semi — Markov" model takes into account even the tenure of the individual in the state, because withthe tenure there will be increased likelihood of movement in states. Another modification, "vacancymodel" predicts the probability of movements and number of vacancies.4. Scatter PlotsScatter Plots (also called scatter diagrams) are used to investigate the possible relationship between twovariables that both relate to the same "event." A straight line of best fit, using the least squares method,is often included. Scatter plot shows the projected staff size.A scatter plot shows graphically how two variables such as a measure of business activity and your firmsstaffing levels are related. If they are, then if you can forecast the level of business activity, you shouldalso be able to estimate your personnel requirementsThe chart shows the number of units to be manufactured on the horizontal axis. Number of personnelneeded on the vertical axis. If the two factors are related, then the points will tend to fall along astraight line, as they do here. If you carefully draw in a line to minimize the distances between the lineand each one of the plotted points, you will be able to estimate the number of workers needed for eachgiven units production.Things to look for in a scatter plot:• If the points cluster in a band running from lower left to upper right, there is a positive correlation (if xincreases, y increases).• If the points cluster in a band from upper left to lower right, there is a negative correlation (if xincreases, y decreases).• Imagine drawing a straight line or curve through the data so that it "fits" as well as possible. The morethe points cluster closely around the imaginary line of best fit, the stronger the relationship that existsbetween the two variables.
• If it is hard to see where you would draw a line, and if the points show no significant clustering, thereis probably no correlation.Step 4. HR Supply ForecastingSupply forecasting measures the number of people likely to be available from within and outside anorganization, after making allowances for absenteeism, internal movements and promotions, • wastageand changes in hours and other conditions of work. Fewer organizations estimate HR supplies thandemand. Forecasting as a Part of Human Resource PlanningDoes aggregate supply meet aggregate DemandThe reasons for supply forecast areI. Helps quantify number of people and positions expected to be available in future to help theorganization realize its plans and meet its objectives.2. Helps clarify likely staff mixes that will exist in the future3. Assess existing staffing levels in different parts of the organization4. Prevents shortage of people where and when they are most needed.5. Monitors expected future compliance with legal requirements of job reservationsThe supply analysis includes• Existing Human Resources,• Internal Sources of supply and• External Sources of Supply.Existing Human Resources:Human Resource Audits: Existing Human Resources analysis is facilitated by HR audits which include "Skill Inventories" of non-managers and "Management Inventories" of Managers. This gives Human Resource Planners acomprehensive understanding of the capabilities in the organizations workforce. Skill Inventory: SkillInventories consolidate information about non-managers in the organization. This information is used asinput into transfer and promotion decisions. They contain information about each employees currentjob. There are seven broad categories of information in each skill category.They are: - Personal data ( age, sex, marital status), Skills ( education, job experience, training), - Specialqualifications (membership in professional bodies, special achievements). - Salary and Job History—
present and past salary, dates of pay raises, various jobs held - Company data—benefit plan data,retirement information, seniority - Capacity of individual scores on psychological and other tests, healthinformation• Internal Supply:Inflows and OutflowsThis analysis considers the vacancies likely due to promotions, transfers etc. and the total number ofmoves are used to forecast the resource supply in various departments.Current personnel level - outflows +inflows = internal supplySources of inflows: transfers, promotions etc.Sources of outflows: resignations, discharges, demotions, retirements and promotionsAs the resignations happen due to labour - market conditions, promotion policies within organizations,and job vacancies in the organization etc. this is not a reliable indicator of future turnover.Turnover rate: Turnover rate is the traditional and simple method of forecasting internal supply.Turnover rate=no. of employees leaving in one year /average no. of employees during the year *100Special preference of individual-geographic location, type of job.Management Inventories: It includes - Work history - Strengths & Weaknesses - Promotion potential -Career goalsIt includes estimation of future losses due to retirements, ill health, death, absenteeism, layoffs,employee turnover etc. Management should calculate the rate of turnover, conduct exit interviews etc.This helps to forecast the rate of potential loss, reasons for loss and reduce loss also called EmployeeWastageConditions of work and Absenteeism:Working conditions include normal weekly working hours, overtime policies, length and timing ofholidays, retirement policy, shift system etc.Absenteeism is unauthorized absence from the work that is when an employee is scheduled to work,but fails to report for the duty. It is required to analyze the trends in absenteeism.Absenteeism = no. of persons-days lost / Average no. of persons X number of working days *100Productivity level:Any change in productivity would affect the number of persons required per unit of output. Increase inproductivity will reduce requirement while decrease would have the opposite effect.
Succession PlanningIn organizational development, succession planning is the process of identifying and preparing suitableemployees through mentoring, training and job rotation, to replace key players - such as the chiefexecutive officer (CEO) - within an organization as their terms expireExternal supply:External sources are important for the company as they bring new experience, lost personnel areneeded to be replenished and expansion plans need more people than the internal supply.Using Computers to Forecast Personnel RequirementsDetermination of future staff needs by projecting sales, volume of production, and personnel requiredto maintain this volume of output, using software packages Employers also use software programs toforecast personnel requirements. The Typical data needed include direct labor hours required toproduce one unit of product (a measure of productivity), and three sales projections. Minimum,maximum, and probable, for the product line in question.Step 5: Develop and implement HR PlansDevelop and implement HR plans Once the employee forecasting is completed, the vacancies should befilled by right employees in right time. Implementation includes converting HR plan into action. Some ofthese programs are:For shortages of employees:• Recruit new permanent employees Once the vacancies are known, recruitment efforts should bemade to identify the sources and search for right candidates. Selection procedures must beprofessionally designed and should be valid. Special care must be taken to ensure compliance withgovernment policies before inducting.• Rehire retirees on part time or consultancy basis• Retention Plans Retention plans cover actions that will help to reduce avoidable separations byemployees. These measures include revised compensation plan, unbiased performance appraisals, allocation ofreasonable workloads, providing better career opportunities within. conflict management, jobenrichment, and most importantly selecting the right candidate to fit for the job specifications to avoidinduction crisis.• Planning overtime for existing staff• Outsourcing works to another company• Hiring employees on temporary/ contract basis
• Automating/ simplifying the job processes so that fewer employees are needed. For surplusworkforce:• Downsizing (or Right sizing?) Whenever there is surplus workforce, it needs trimming. - hiring freezeoffering incentives for early retirement such as VRS (Golden Shake Hand)- Reducing no. of working hours & thus realizing it in payroll savings.- Switch to variable pay planHelp redundant employees find new jobs. - Laying-off Training, Retraining and Development These arerequired for new entrants, existing staff at all levels to gain new skills, unlearn obsolete practices and toupdate with emerging trends. These are essential for both individual and organizational developmentSuccession Planning:Succession Planning includes training programs and series of job assignments leading to top positions.Succession plans are centered on important jobs and try to identify the key skills required for the jobs.From the risk management aspect, provisions are made in case no suitable internal candidates areavailable to replace the loss of any key person. It is usual for an organization to insure the key person sothat funds are available if she or he dies and these funds can be used by the business to cope with theproblems before a suitable replacement is found or developed. Succession Planning involves havingsenior executives periodically review their top executives and those in the next lower level to determineseveral backups for each senior position. This is important because it often takes years of grooming todevelop effective senior managers. There is a critical shortage in companies of middle and top leadersfor the next five years. Organizations will need to create pools of candidates with high leadershippotential.A careful and considered plan of action ensures the least possible disruption to the personsresponsibilities and therefore the organizations effectiveness. Examples include such a person who is:• Suddenly and unexpectedly unable or unwilling to continue their role within the organization;• accepting an approach from another organization or external opportunity which will terminate orlessen their value to the current organization;• indicating the conclusion of a contract or time-limited project; or• Moving to another position and different set of responsibilities within the organization. • A succession plan clearly sets out the factors to be taken into account and the process to be followedin relation to retaining or replacing the person.
Step 6 & 7. Evaluation, Feedback, and control of the SystemThe HR plan must include budgets, targets and standards and clarifications on responsibilities forplanning, implementation and evaluation. HR programmes should be constantly evaluated against theobjectives and deviations must be handled appropriately.HRIS (Human Resource Information System) HRIS is a computerized system that aids in the processing of information relating to Human ResourceManagement. HRIS stores the skill inventory and management inventory into the system and helps themanagers in decision making with regard to wage fixing, promotions, recruitment, training etc. It is acybernetic system involving input-process-output-feedback-control loop.Application Areas of HRIS:HR Planning and AnalysisOrganizational chartsStaffing projectionsSkill inventoriesTurnover analysisAbsenteeism analysisRestructuring costingInternal Job matchingJob Description Tracking.Compensation and BenefitsHealth, Safety and SecurityStaffingQ. Name some strategies for successful HRP(4-5 marks)HRP Human Resource Planning starts with analyzing the Organizational plan. The purpose here is torelate human acquisition for enterprise needs so as to maximize the Return on Investment in Humanresources.• HRP must be an integrated plan of corporate plan• HRP must have the support of top management
• Collect, maintain, and interpret relevant information regarding human resources.• Periodical reports on changing requirements of organization and the manpower.• Developing procedures and techniques to determine different types of manpower requirement.• Suitable techniques must be employed leading to effective allocation of work to improve manpowerutilization.
Module 2HRADBU SEM IIIJob AnalysisINTRODUCTIONA Job is a bundle of related tasks. Job as a synonym to work understood as "the physical and mentalactivity that is carried out a particular place and time, according to instructions in return f4 money."Analysis of each managerial, production or clerical job is ( determine the nature of work, thequalification necessary, amount training required, the amount of supervision required, tli;.remuneration etc.Q. What is Job Analysis? (2 marks)Job Analysis involves collection of Job related information. focus is on the job, but not on theindividual holding the job. Job analysis refers to the process of gathering information about a joband it results in two sets of data—Job Description and Job Specification.Job Analysis is the process of collecting job related information be needed in the near future.Q. What is the purpose of job analysis?(4 marks)Job analysis is useful for overall management of all personal activities especially in Human ResourcePlanning, recruitment training, job evaluation, compensation designing, performance appraisal,maintaining Computerized Personnel Information etc.• Recruitment and SelectionJob Analysis helps the HR managers to locate places whet, prospective employees are available foropenings a0 understand the qualifications and type of skills required for the jobs. The objective ofemployee hiring is to place right people for the right jobs, which is not possible without havingadequate job information.• Training and DevelopmentTraining and Development programs can be design depending upon the job requirements, which inturn can decided by Job analysis.• Job EvaluationJob Evaluation involves relative worth of each job for the purpose of establishing wage and salarydifferentials and this is facilitated by Job analysis.
• Compensation Design Compensation which includes fringe benefits, bonus, and other benefits is decided following Job Evaluation, which is the result of Job Analysis. A perception of inequity in remuneration de-motivates the employees. • Performance appraisal Performance appraisal involves assessment of the actual performance of an employee against what is expected of him or her. Such assessment helps as a basis for awarding promotions, increments, transfers, training needs etc. Job analysis helps in fixing standards for performance, against which actual performance should be measured. • Personnel Information Organizations normally maintain computerized personnel information for administrative efficiency and Decision support. Job analysis facilitates in managing such information. • Safety and Health The detailed Job Analysis provides an opportunity to uncover and identify hazardous conditions and unhealthy environmental practices like heat, noise, dust, fumes and helps to take corrective measures.Q. What issues does Job analysis addresses?(4 marks)• The tools, materials, and equipment are used to perform the tasks in the job.• Methods or processes are used to perform the tasks in the job• The specific duties for the position (broad responsibilities).• The critical tasks and key result areas of the position, which helps to isolate the most criticalactivities that the position holder is expected to perform.• The discrete outcomes of the job for which the person appointed will be held accountable andevaluated on.• The behaviors, skills, knowledge and experience are the most important to the program inachieving the key results and outcomes and focuses on the specific personal qualities that arenecessary to best meet the job requirements.