Human recourse management and development

Human Resource Management
and Development
Anusha Jain H D
Asst. Professor
Sri Basaweshwara College, Tumkur

• you must treat your employees with respect
and dignity because in the most automated
factory in the world, you need the power of
human mind. That is what brings in
innovation. If you want high quality minds to
work for you, then you must protect the
respect and dignity. "
• ---Mr N.R. Narayana Murthy, Chairman
Emeritus, Infosys Ltd

• Human Resource Management is the process
of recruiting, selecting, inducting employees,
providing orientation, imparting training and
development, appraising the performance of
employees, deciding compensation and
providing benefits, motivating employees,
maintaining proper relations with employees
and their trade unions, ensuring employees
safety, welfare and healthy measures in
compliance with labour laws of the land.

• Human: refers to the skilled workforce in
organization.
• Resource: refers to limited availability or
scarce.
• Management: refers how to optimize and
make best use of such limited and scarce
resource so as to meet the organization goals
and objectives.

•
Hence, human resource management is the
process of proper utilisation of available skilled
workforce. The core purpose of the human
resource management is to make efficient use of
existing human resource in the organisation. The
best example in present situation is, construction
industry has been facing serious shortage of
skilled workforce. It is expected to triple in the
next decade from the present 30 per cent, will
negatively impact the overall productivity of the
sector, warn industry experts.

Definitions on HRM
• Edwin Flippo defines- HRM as “planning, organizing,
directing, controlling of procurement, development,
compensation, integration , maintenance and separation of
human resources to the end that individual, organizational
and social objectives are achieved.
• “HRM is concerned with the people dimension” in
management. Since every organization is made up of
people, acquiring their services, developing their skills,
motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment
to the organization is essential to achieve organsational
objectives. This is true, regardless of the type of
organization – government, business, education, health or
social action”. - Decenzo and Robbins

Human Resource management deals
With:
• Conducting job analyses,
• Planning personnel needs, and recruitment,
• Selecting the right people for the job,
• Orienting and training,
• Determining and managing wages and salaries,
• Providing benefits and incentives,
• Appraising performance,
• Resolving disputes,
• Communicating with all employees at all levels. Formerly called
personnel management.
• Maintaining awareness of and compliance with local, state and
federal labor laws.
• These are also called as functions of human resource management
for the purpose of effect you utilisation of human resource.

Importance of Human Resource
Management:
• Human resources are the valuable assets of
the corporate bodies. They are their strength.
To face the new challenges on the fronts of
knowledge, technology and changing trends in
global economy needs effective human
resource management. Significance of HRM
can be seen in three contexts: organisational,
social and professional

Organisation Significance
HRM is of vital importance to the individual organisation
as a means for achieving their objectives.
• 1. Good human resource practice can help in attracting
and retaining the best people in the organisation.
• 2. Developing the necessary skills and right attitudes
among the employees through training, development,
performance appraisal, etc.
• 3. Securing willing cooperation of employees through
motivation, participation, grievance handling, etc.
• 4. Effective utilisation of available human resources.
• 5. Ensuring that enterprise will have in future a team of
competent and dedicated employees.

Social Significance:
• Social significance of HRM lies in the need satisfaction
of personnel in the organisation. Since these personnel
are drawn from the society, their effectiveness
contributes to the welfare of the society. Society, as a
whole, is the major beneficiary of good human
resource practice.
• 1. Employment opportunities multiply.
• 2. Eliminating waste of human resources through
conservation of physical and mental health.
• 3. Scare talents are put to best use. Companies that
pay and treat people well always race ahead of others
and deliver excellent results.

Professional Significance
Professional significance of HRM lies in developing
people and providing healthy environment for effective
utilisation of their capabilities.
• 1. Developing people on continuous basis to meet
challenge of their job.
• 2. Promoting team-work and team-spirit among
employees.
• 3. Offering excellent growth opportunities to people
who have the potential to rise.
• 4. Providing environment and incentives for developing
and utilising creativity.

Evolution of HRM.
• HRM As a history of a Century’s history.HRM
draws many theories and practice of
Sociologist, psychologist and management
theories. Through out 20 century and earlier,
Practitioners and academics developed
theories and practices to explain and influence
of human behaviour at work. HRM has
observed ideas and techniquies from wide
range of these theories and technical tools.

Evolution of HRM.
• The history of development of HR
management in India is comparatively of
recent origin. But Kautilya had dealt with
some of the important aspects of human
resources management in his “Arthasastra,”
written in 400 B.C. Government in those days
adapted the techniques of HRM as suggested
by Kautilya. In its modem sense, it has
developed only since independence

• Though the importance of labour officers was
recognised as early as 1929, the appointment
of officers to solve labour and welfare
problems gained momentum only after the
enactment of the Factories Act of 1948.
Section 49 of the Act required the
appointment of Welfare Officers in companies
employing more than 500 workers. At the
beginning, Government was concerned only
with limited aspects of labour welfare.

• The earliest labour legislation in India dealt
with certain aspects ofIndian labourers
(Regulation of Recruitment, Forwarding and
Employment) sent to various British colonies
in 1830. Important phases of evolution ofHRM
are presented in Exhibit:

Period Development
Status
Outlook Emphasis Status
1920s1930s Beginning Pragmatism of
capitalists
Statutory,
welfare
paternalism
Clerical
1940s - 1960s Struggling for
recognition
Technical,
legalistic
Introduction of
Techniques
Administrative
1970s Achieving Professional Regulatory,
conforming,
imposition
Managerial
1980s Sophistication Legalistic,
impersonal
Standards on
other
functions
Executive
1990s Promising Philosophical Human values,
productivity
through
people
Executive

Recent Development
• RECENT DEVELOPMENTS: Recent
developments in the area of human resources
management include treating the employees
as economic, social, psychological and
spiritual men and women. The important
aspects of development of human resources
management year wise is shown below:

• In the year 1995, emphasis has been shifted to human resources
development (HRD).
• • In the year 1998, emphasis on HRD, cultural diversity, teamwork
and participative management has been continuing. Further, the
emerging areas are total quality in management in HRM,
empowering the employees and developing empowered teams and
integrating HRM with strategic management as the top
management, realised that HRM is the core of competencies of the
21st century corporations.
• • In the year 1999, second National Commission on Labour was
setup to study the labour conditions.
• • In the year 2001, emphasis has been on 'smart sizing ofthe
organisations'

• • In the year 2001, emphasis has been on 'smart sizing of the organisations'.
• • In the year 2002, emphasis has been shifted to positive attitude of the
candidate/employee rather than skill and knowledge.
• • In the year 2003, shift from intelligence quotient (IQ) to emotional quotient (EQ).
• • In the year 2004, shift from skilled workers to knowledge workers.
• • In the year 2005, shift from hierarchical structure to flexible and virtual
structures.
• • In the year 2006, HRM has become the core of strategic management level.
• • In the year 2007, the concept of HRM has been relegated to human capital
management.
• • In the year 2008, emphasis has been on retention management and
development of own human resources by companies through alliances with
universities/colleges. In the same year, there was decline in business operations
due to global economic recession and crisis

• In the year 2009, continuation ofjob cuts, pay
costs and lay-offs due to prolonged global
recession and crisis.
• • In the year 2014, emphasis is shifted to
talent management and flexible human
resource policies and practices.

Role ofHR Manager
• The Conscience Role: The conscience role is that of a
humanitarian who reminds the management ofits morals
and obligations to its employees.
• The Counsellor. Employees who are dissatisfied with the
present job approach the HR manager for counselling. In
addition, employees facing various problems like marital,
health, children education/marriage, mental, physical and
career also approach the HR managers. The HR Manager
counsels and consults the employees and offers
suggestions to solve/overcome the problems.
• The Mediator. As a mediator, the HR manager plays the role
of a peace-maker. He settles the disputes between
employees and the management. He acts as a liaison and
communication link between both ofthem.

• The Spokesman: He is a frequent spokesman
for or representative of the company
• The Problem-solver: He acts as a problem
solver with respect to the issues that involve
human resources management and overall
long range organizational planning.
• The Change Agent: He acts as a change agent
and introduces changes in various existing
programmes.

(Source: Mamoria C.B. & Gankar S.V., PERSONNEL MANAGEMENT (TEXT & CASES), HPH, 21st )

Unit 02:
Strategies for hiring talent

HRIS
It is a systematic way of storing data &
information for each individual employee to
aid planning, decision making & submitting of
returns and reports to the external agencies.
It is a method by which an organization
collects, analyses & reports the information
about people and job.

A HRIS, which is also known as a
human resource information system or human
resource management system (HRMS), is
basically an intersection of human resources
and information technology through HR
software.
This allows HR activities and
processes to occur electronically.

Objectives of HRIS
• To offer sufficient, comprehensive & ongoing
information about people & jobs.
• To supply up to date information at a
reasonable cost.
• To offer data security & personal privacy.

BENEFITS OF HRIS
• Higher speed of retrieval and processing of data
• Reduction in duplication of efforts leading to reduced cost
• Ease in classifying and reclassifying data
• Better analysis leading to more effective decision making
• Higher accuracy of information/report generated
• Fast response to answer queries
• Improved quality of reports
• Better work culture
• Establishing of streamlined and systematic procedures
• More transparency in the system

LIMITATIONS OF HRIS
• It may be expensive in terms of finance and
manpower
• It may be inconvenient for computer illiterates
or people with mere knowledge of computer
• Computers can not substitute human

Human Resource Plannning
• Human resource is the most important asset of an
organisation. Human resources planning are the
important managerial function. It ensures the right
type of people, in the right number, at the right time
and place, who are trained and motivated to do the
right kind of work at the right time, there is generally a
shortage of suitable persons.
• Human resource planning is not a substitute for
manpower planning. Rather the latter is a part of the
former i.e., manpower planning is integrated with
human resource planning.

• According to E.W. Vetter, human resource planning is
“the process by which a management determines how
an organisation should make from its current
manpower position to its desired manpower position.
• Dale S. Beach has defined it as “a process of
determining and assuring that the organisation will
have an adequate number of qualified persons
available at the proper times, performing jobs which
meet the needs of the enterprise and which provide
satisfaction for the individuals involved.”

Importance of HRP
1. Future Manpower Needs
2. Coping With Change
3. Recruitment Of Talented Personnel
4. Development Of Human Resources
5. Proper Utilization Of Human Resources
6. Uncertainty Reduction

External Factors
• Government Policies : Policies of the government like labour policy,
industrial relations policy, policy towards reserving certain jobs for
different communities and sons-of-thesoils, etc. affect the HRP.
• Level of Economic Development : Level of economic development
determines the level of HRD in the country and thereby the supply
of human resources in future in the country
• Business Environment : External business environmental factors
influences the volume and mix of production and thereby the
future demand for human resources.
• Level of Technology : Level of technology determines the kind of
human resources required.
• International Factors : International factors like the demand for the
resources and supply of human resources in various countries.

Internal Factors
• Company Policies and Strategies: Company’s policies and strategies
relating to expansion diversification, alliances, etc. determines the
human resource demand in terms of quality and quantity.
• Human Resource Policies: Human resources policies of the company
regarding quality of human resource, compensation level, quality of
worklife, etc. influences human resource plan.
• Job Analysis: Fundamentally, human resource plan is based on job
analysis. Job description and job specification determines the kind
of employees required.
• Time Horizons: Companies with stable competitive environment can
plan for the long run whereas the firms with unstable competitive
environment can plan for only short-term range.

1. Analysing Organizational Objectives:
The objective to be achieved in future in various fields such as production, marketing,
finance, expansion and sales gives the idea about the work to be done in the
organization.
2. Inventory of Present Human Resources:
From the updated human resource information storage system, the current number of
employees, their capacity, performance and potential can be analysed. To fill the
various job requirements, the internal sources (i.e., employees from within the
organization) and external sources (i.e., candidates from various placement
agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile are
to be estimated. The available internal and external sources to fulfill those
requirements are also measured. There should be proper matching of job
description and job specification of one particular work, and the profile of the
person should be suitable to it.

4. Estimating Manpower Gaps:
Comparison of human resource demand and human resource supply will provide with
the surplus or deficit of human resource. Deficit represents the number of people
to be employed, whereas surplus represents termination. Extensive use of proper
training and development programme can be done to upgrade the skills of
employees.
5. Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the
organization. Accordingly, the plan may be finalized either for new recruitment,
training, interdepartmental transfer in case of deficit of termination, or voluntary
retirement schemes and redeployment in case of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human
resources are allocated according to the requirements, and inventories are
updated over a period. The plan is monitored strictly to identify the deficiencies
and remove it. Comparison between the human resource plan and its actual
implementation is done to ensure the appropriate action and the availability of the
required number of employees for various jobs.

Job Analysis and Job Descriptions
• The job analysis is a formal system developed to determine
what tasks people actually perform in their jobs. The
purpose of a job analysis is to ensure creation of the right
fit between the job and the employee and to determine
how employee performance will be assessed. A major part
of the job analysis includes research, which may mean
reviewing job responsibilities of current employees,
researching job descriptions for similar jobs with
competitors, and analyzing any new responsibilities that
need to be accomplished by the person with the position.
According to research by Hackman and Oldham (Hackman
& Oldham, 1976), a job diagnostic survey should be used to
diagnose job characteristics prior to any redesign of a job.

Job description
• Job description is an informative documentation of the
scope, duties, tasks, responsibilities and working conditions
related to the job listing in the organization through the
process of job analysis. Job Description also details the skills
and qualifications that an individual applying for the job
needs to possess. It basically gives all the details which
might be good for both the company and the applicant so
that both parties are on the same page regarding the job
posting.
• The job description is used in the recruitment process to
inform the applicants of the job profile and requirements,
and used at the performance management process to
evaluate the employee’s performance against the
description.

Job Specification
A job specification defines the knowledge, skills and
abilities that are required to perform a job in an
organization. Job specification covers aspects like
education, work-experience, managerial experience etc
which can help accomplish the goals related to the
job. Job specification helps in the recruitment &
selection process, evaluating the performance of
employees and in their appraisal & promotion. Job
specification, along with job description, is actually
derived from job analysis. Collectively, job specification
and job description help in giving a overview of the job
in terms of its title, position, roles, responsibilities,
education, experience, workplace etc.

Job evaluation
• Job evaluation is the process of analyzing and assessing various
jobs systematically to ascertain their relative worth in an
organization.
Job evaluation is an assessment of the relative worth of various
jobs on the basis of a consistent set of job and personal factors,
such as qualifications and skills required.
The objective of job evaluation is to determine which jobs should
get more pay than others. Several methods such as job ranking, job
grading, and factor comparison are employed in job evaluation.
Research indicates, however, that each method is nearly as accurate
and reliable as the other in ranking and pricing different jobs. Job
evaluation forms the basis for wage and salary negotiations

Recruitment of human resources
• Recruitment :Recruitment is the process of
locating potential applicants and encouraging
them to apply for existing or anticipated job
opening. During this process, efforts are made
to inform the applicants about requirement of
the job, qualification required to perform the
job and the career opportunity available to
the candidate in the organization.

• The process of finding and hiring the best-
qualified candidate (from within or outside of an
organization) for a job opening, in a timely and
cost effective manner. The recruitment process
includes analyzing the requirements of a job,
attracting employees to that job, screening and
selecting applicants, hiring, and integrating the
new employee to the organization.

INTERNAL Sources of Recruitment
1. Promotions:
The promotion policy is followed as a motivational technique for the
employees who work hard and show good performance. Promotion
results in enhancements in pay, position, responsibility and authority. The
important requirement for implementation of the promotion policy is that
the terms, conditions, rules and regulations should be well-defined.
2. Retirements:
The retired employees may be given the extension in their service in case of
non-availability of suitable candidates for the post.
3. Former employees:
Former employees who had performed well during their tenure may be called
back, and higher wages and incentives can be paid to them.

4. Transfer:
Employees may be transferred from one department to
another wherever the post becomes vacant.
5. Internal advertisement:
The existing employees may be interested in taking up
the vacant jobs. As they are working in the company
since long time, they know about the specification and
description of the vacant job. For their benefit, the
advertisement within the company is circulated so that
the employees will be intimated.

External Sources of Recruitment
1. Press advertisement:
A wide choice for selecting the appropriate candidate for the post is available through
this source. It gives publicity to the vacant posts and the details about the job in
the form of job description and job specification are made available to public in
general.
2. Campus interviews:
It is the best possible method for companies to select students from various
educational institutions. It is easy and economical. The company officials
personally visit various institutes and select students eligible for a particular post
through interviews. Students get a good opportunity to prove themselves and get
selected for a good job.
3. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and
agencies get commission in return.
4. Employment exchange:
People register themselves with government employment exchanges with their
personal details. According to the needs and request of the organization, the
candidates are sent for interviews.

5. Walk in interviews:
These interviews are declared by companies on the
specific day and time and conducted for selection.
6. E-recruitment:
Various sites such as jobs.com, naukri.com, and
monster.com are the available electronic sites on which
candidates upload their resume and seek the jobs.
7. Competitors:
By offering better terms and conditions of service, the
human resource managers try to get the employees
working in the competitor’s organization

Induction
• Induction can be defined as a process of
introducing the employee who is newly
elected to the organization. When an
employee is given a letter of appointment he
joins the company on duty.
• The very first thing that the company does is,
introduces the new employee to the
organization and people working there

• The induction starts with an introduction secession about the
company, number of branches, a brief history of the company,
number of products, number of countries operating in,
organizational structure, culture, values, beliefs, the names of top
management personnel etc
• Apart from this introductory secession there will be other
secessions also like secessions on behavioral science, soft skill
training, secessions on giving details about the job, salary, bonus,
information about different leaves that can be taken by the
employee about upward mobility in the organization etc. There are
different ways in which secessions can be conducted i.e. using
lecture method, power point presentation, group discussion,
psychological test, roll play secessions etc

• objectives:
• 1. To reduce the initial anxiety all new entrants feel
when they join a new job in a new organisation.
• 2. To familiarize the new employees with the job,
people, work-place, work environment and the
organisation.
• 3. To facilitate outsider – insider transition in an
integrated manner.
• 4. To reduce exploitation by the unscrupulous co-
workers.
• 5. To reduce the cultural shock faced in the new
organisation

Placement
• The selection procedure ends with the placement
of a worker to the job. Placement is the process
of assigning a specific job to each one of the
selected candidates.
• In very simple words placement means sending
the newly employed person to some department
for work. It also implies assigning a specific rank
and responsibility to an individual. Matching the
requirements of the job with the qualifications of
a candidate is the essence of placement

• According to Pigors and Myers “Placement is
the determination of the job to which an
accepted candidate is to be assigned and his
assignment to that job. It is a matching of
what the supervisor has reason to think he
can do with the job demands. It is a matching
of what he imposes (in strain, working
conditions etc.) and what he offers (in the
form of payroll, companionship with others,
promotional possibilities etc.).

Objectives Of Placement
• To help the new comer to overcome his shyness and overcome his shyness nervousness in meeting
new people in a new environment.
* To give new comer necessary information such as location of a café, rest period etc.
* To build new employee confidence in the organization.
* It helps in reducing labor turnover and absenteeism.
* It reduces confusion and develops healthy relations in the organization.
• * To ensure that the new comer do not form false impression and negative attitude towards the
organization.
* To develop among the new comer a sense of belonging and loyalty to the organization.

Probation
• Probation is a formal arrangement at the start
of an appointment, whereby new members of
staff demonstrate their suitability for a
particular job within a set timescale. The
probation period for your appointment is set
out in your offer letter and contract of
employment. During this time, you will be
given an induction programme, guidance and
training and your performance will be
monitored and reviewed.

Objectives of Probation
• Specific: What, and how, it should be doneM
• Measurable: Identifies how it will be known that the
activity has been achievedA
• Achievable or Action-orientated: A plan to deliver the
objective is identifiedR
• Realistic: The staff member has the resources and is
equipped to be able to do the activity successfullyT
• Time-based: Clarity on any date/deadline by which the
activity needs to be completed. Allocating too much
time can sometimes negatively affect the achievement
of the objective

Confirmation
• Confirmation is the successful outcome of
probation. In case the things go wrong either
from the employee’s side or from the side of
company, in that case the employment gets
annulled or cancelled. In certain situations the
probation period can also be extended

Probation Confirmation
Definition
Probation refers to status of
a new employee of a
company or business whose
work is closely evaluated
Confirmation generally
means to confirm the
services of new employee.
Accompanied by Appointment letter
Successful Probation letter/
Confirmation letter
Objective
Train employee, check job
performance and behavior,
provide time to adapt new
environment.
Retain good employees.
Privileges
Few can be restricted
depending upon the
organization
All as in case of other
confirmed employees.

Human recourse management and development

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