general hrms overview

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Human Resources Overview Scope of this presenta tion is: To make the participants aware of the General HRMS. Understand the building blocks of HRMS. Understand the Employment cycle in HRMS.

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Page 1: General HRMS Overview

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Human Resources Overview

Scope of this presentation is:

To make the participants aware of the General HRMS.Understand the building blocks of HRMS.

Understand the Employment cycle in HRMS.

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Human Resources Overview

Human resources is a term used to describe the individuals who comprise the workforceof an organization, although it is also applied in labor economics to, for example, business

sectors or even whole nations. Human resources is also the name of the function within

an organization charged with the overall responsibility for implementing strategies and

policies relating to the management of individuals (i.e. the human resources). This

function title is often abbreviated to the initials 'HR'.

History

Human resources is a relatively modern management term, coined in the 1960s. The

origins of the function arose in organizations that introduced 'welfare management'

practices and also in those that adopted the principles of 'scientific management'. where

organizations such as Cadburys at its Bournville factory recognized the importance of 

looking after the welfare of the workforce, and their families. The employment of women

in factories in the United Kingdom during the First World War lead to the introduction of 

"Welfare Officers".

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An organization's human resource management strategy should :

Maximize return on investment in the organization's human capital and minimize financial risk. Aligning the supply of skilled and qualified individuals and the capabilities of the current workforce.

Maximize return on investment and secure future survival and success.

Taking account of legal, ethical and as far as is practical in a manner that retains the support and

respect of the workforce.

In ensuring such objectives are achieved, the human resource function purpose in this context is to

implement the organization's human resource requirements effectively but also pragmatically,

Key functionsSet strategies and develop policies, standards, systems, and processes that implement these strategies

in a whole range of areas. The following are typical of a wide range of organizations:

Recruitment, selection, and on boarding (resourcing)

Organizational design and development

Business transformation and change management

Performance, conduct and behavior management

Industrial and employee relations

Human resources (workforce) analysis and workforce personnel data managementCompensation, rewards, and benefits management

Training and development (learning management)

Implementation of such policies, processes or standards may be directly managed by the HR function

itself, or the function may indirectly supervise the implementation of such activities by managers, other

business functions or via third-party external partner organizations.

Human resources purpose and role

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Human resources management trends and influences

In organizations, it is important to determine both current and future organizational requirements for both core

employees and the contingent workforce in terms of their skills/technical abilities, competencies, flexibility etc.

The analysis requires consideration of the internal and external factors that can have an effect on the resourcing,

development, motivation and retention of employees and other workers.

Major trends

To know the business environment an organization operates in, three major trends must be considered:

Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type

of trend may have an effect in relation to pension offerings, insurance packages etc.

Diversity: the variation within the population/workplace. Changes in society now mean that a larger proportion

of organizations are made up of older employees in comparison to thirty years ago. Advocates of "workplace

diversity" simply advocate an employee base that is a mirror reflection of the make-up of society insofar as race,

gender, sexual orientation, etc.

Skills and qualifications: As industries move from manual to more managerial professions so does the need for

more highly skilled graduates. If the market is "tight" (i.e., not enough staff for the jobs), employers must

compete for employees by offering financial rewards, community investment, etc..

Business practice

Human resources management involves several processes. Together they are supposed to achieve the abovementioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced

or performed by line-managers or other departments. When effectively integrated they provide significant

economic benefit to the company.[8]

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Human resources Functional Areas

HR can be divided into some broad functional groups, namely:

Personnel administration

Workforce planning

Recruitment (sometimes separated into attraction and selection)

Induction, Orientation and Onboarding

Skills management

Training and development

Compensation in wage or salary

Time management

Travel management (sometimes assigned to accounting rather than HRM)

Payroll (sometimes assigned to accounting rather than HRM)

Employee benefits administration

Performance appraisal

Labor relations

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The scope of personnel administration is quite wide. It includes all activities which help the management in getting the work done by the labour force inthe best manner possible to accomplish the organizational objectives. The main objective in any organization is the optimum utilization of available

resources. Personnel administration is primarily concerned with the organization of men; therefore, the main objective may be summarized as to utilizethe available human resources in a a way so as to get the work done effectively to the maximum satisfaction of the individual worker to seek their 

cooperation in accomplishing the general goals of the organization. Specific objectives1. Selection of the right type and number of persons

2. Proper orientation and introduction of new employees to their jobs3. Organization of suitable training facilities

4. Provision of better working conditions and facilities.5. Provision of sound, fair and effective wage and salary administration and incentives.

6. Good industrial relations with representative trade unions7. Personnel research

Personnel Administration

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Workforce Planning Process Model

Workforce Planning model has been developed to capture the common elements of workforce planning processes that are relevant to

the public sector. The model has six elements that describe key steps that need to be considered when implementing workforce planning.

Each department or agency needs to identify how these elements should be customized to meet their business needs as a one size does

not fit all.

The key elements of the model are:

Workforce Analysis  involves establishing a clear understanding of the department or agencys direction and external environment, and

analyzing the internal and external factors that influence labor supply and demand

Forecast Needs  involves identifying changes to the service delivery and labor force requirements of the department or agency.

Analyze Gaps  involves comparing current and future requirements to identify gaps.

Develop Strategies  involves the planning and design of specific programs and projects to meet future business needs.

Implement Strategies  involves the execution of specific programs and projects to develop and maintain the workforce capability and

capacity requirements.Monitor and Evaluate  involves determining the effectiveness and efficiency of the workforce planning strategies implemented.

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Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization

or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional

recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has five main

Job analysis

The proper start to a recruitment effort is to perform a job analysis, to document the actual or intended requirement

of the job to be performed. This information is captured in a job description and provides the recruitment effort with

the boundaries and objectives of the search.

Sourcing

Sourcing involves 1) advertising, a common part of the recruiting process, often encompassing multiple media, such

as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job

centers, and campus graduate recruitment programs; and 2) recruiting research, which is the proactive identification

of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1.

Candidate matching , Screening and selection

Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills.

Qualifications may be shown through résumés, job applications, interviews, educational or professional experience,

the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeracy, and literacy,

through psychological tests or employment testing.

On boarding

"On boarding" is a term which describes the process of helping new employees become productive members of an

organization. A well-planned introduction helps new employees become fully operational quickly and is often

integrated with a new company and environment.

Recruiting Process

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Recruiting Process Model

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Skills management is the practice of understanding, developing and deploying people and their skills. Well-implemented skills management should identify

the skills that job roles require, the skills of individual employees, and any gap between the two.

The skills involved can be defined by the organization concerned, or by third party institutions. They are usually defined in terms of a skills framework, also

known as a competency framework or skills matrix. This consists of a list of skills, and a grading system, with a definition of what it means to be at particular

level for a given skill.

To be most useful, skills management needs to be conducted as an ongoing process, with individuals assessing and updating their recorded skill sets

regularly. These updates should occur at least as frequently as employees' regular line manager reviews, and certainly when their skill sets have changed.

Skills management systems record the results of this process in a database, and allow analysis of the data.

Knowledge Management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable

adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizational

processes or practice. Knowledge Management efforts typically focus on organizational objectives such as improved performance, competitive advantage,

innovation, the sharing of lessons learned, integration and continuous improvement of the organization. KM efforts overlap with organizational learning,

and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of 

knowledge.

A broad range of thoughts on the KM discipline exists with no unanimous agreement; approaches vary by author and school. As the discipline matures,

academic debates have increased regarding both the theory and practice of KM, to include the following perspectives:

Techno-centricwith a focus on technology, ideally those that enhance knowledge sharing and creation.

Organizationalwith a focus on how an organization can be designed to facilitate knowledge processes best.

Ecological with a focus on the interaction of people, identity, knowledge, and environmental factors as a complex adaptive system akin to a natural

ecosystem.

Skills Management / Operation Process

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Training and development is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including employee development,human resource development, and learning and development.

Training and development encompasses three main activities: training, education, and development.Training This activity is both focused upon, and evaluated against, the job that an individual currently holds.Education This activity focuses upon the jobs that an individual may potentially hold in the future, and is evaluated againstthose jobs.Development This activity focuses upon the activities that the organization employing the individual, or that the individual ispart of, may partake in the future, and is almost impossible to evaluate.

The "stakeholders" in training and development are categorized into several classes.The sponsors of training and development are senior managers.

The clients of training and development are business planners.Line managers are responsible for coaching, resources, and performance.

The participants are those who actually undergo the processes.The facilitators are Human Resource Management staff.The providers are specialists in the field. Each of these groups has its own agenda and motivations, which sometimes conflictwith the agendas and motivations of the others

Training and development

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Compensation is the total pay or financial compensation an executive officer within a company receives within

a corporation. A normal executive would receive a basic salary, any and all bonuses, shares, options, and any

other company benefit.

There are six basic tools of compensation or remuneration.

a base salary

short-term incentives, or bonuses

long-term incentive plans (LTIP)

employee benefits

perquisites, or perks

compensation protection

LTIP

Cash based (LTIP)

Long Term Cash Incentive Pay is a performance driven award that pays compensation based on a three to five

year performance period and calculated as a multiple of base salary. Performance can be measured against an

industry peer group of companies and the projected long term growth of the company, just to name a few.

Awards are based on a multiple of base salary.

Equity Based

STOCK OPTIONSThe award of stock options represents the most commonly used form of long term performance incentives. The

grant awards are designed to incentivize the executive to perform because he or she has a long term stake in

the future of the company, through eventual stock ownership. A majority of public companies issue fixed priced

stock options (fair market value determined on the date of the grant). Start up companies and other privately

held companies often engage in the issuance of "in the money" stock options, options that have a strike price

that is below the fair market value.

Compensation

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Time management refers to a range of skills, tools, and techniques used to manage time when accomplishing specific tasks,

projects and goals. This set encompasses a wide scope of activities, and these include planning, allocating, setting goals,

delegation, analysis of time spent, monitoring, organizing, scheduling, and prioritizing. Initially time management referred to just

business or work activities, but eventually the term broadened to include personal activities as well.

Types of time tracking software

Timesheet software - allows to enter time spent performing different tasks while working.

Time tracking/recording software - automatically records activities performed on a computer.

Time tracking software can be:

Standalone - used only to record timesheets, and generate reports

Integrated into accounting system - where timesheet data is directly fed into company accounts

Integrated into billing system - used to generate invoices, especially used by contractors and professionals such as lawyers

Integrated into pro ject management systems - timesheet data is used in project management software to graph the effort being

spent on each project or task.

Integrated into payroll system - timesheet data is used in payroll software to pay employees based on their time worked.

Time Management

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Travel management is the function of managing a companys strategic approach to travel (travel policy), the

negotiations with all vendors, day-today operation of the corporate travel program, traveler safety & security,

credit-card management and T&E data management.

CTM should not be confused with the work of a traditional Travel Agency. While agencies provide the day-to-

day travel services to corporate clients, they are the implementing arm of what the corporation has negotiatedand put forth in policy. In other words CTM decides on the class of service that employees are allowed to fly,

negotiate corporate fares/rates with airlines and hotels as well as set forth the use of the corporate credit card.

The agency on the other hand makes the actual reservation within the parameters given by the corporation.

Travel Management

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In a company, payroll is the sum of all financial records of salaries, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to

employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons.

From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are

subject to laws and regulations (e.g. in the U.S. payroll is subject to federal and state regulations).

From ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale

requires payroll to be paid timely and accurately.

The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions,

and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a

paycheck.

Pay Cheque

 A Pay Cheque is traditionally a paper document issued by an employer to pay an employee for services rendered. In recent times, the physical

paycheck has been increasingly replaced by electronic direct deposit to bank accounts.

Pay slip

 A pay stub, paystub, pay slip, pay advice, or sometimes paycheck stub, is a document an employee receives either as a notice that the direct

deposit transaction has gone through, or as part of their paycheck.

Payroll card A payroll card is a plastic card allowing an employee to access their pay by using a debit card.

Payroll Frequencies

Companies typically generate their payrolls on regular intervals, for the benefit of regular income to their employees. The regularity of the

intervals, though, varies from company to company, and sometimes between job grades within a given company. Common payroll frequenciesinclude: daily, weekly, bi-weekly (once every two weeks), semi-monthly (twice per month), and to somewhat of a lesser extent, monthly. Less

common payroll frequencies include: 4-weekly (13 times per year), bi-monthly (once every two months), quarterly (once every 13 weeks),

semi-annually (twice per year), and annually.

Payroll Outsourcing

Businesses may decide to outsource their payroll functions to an outsourcing service like a Payroll service bureau or a fully managed payroll

service. These can normally reduce the costs involved in having payroll trained employees in-house as well as the costs of systems and

software needed to process a payroll. In many countries, business payrolls are complicated in that taxes must be filed consistently and

accurately to applicable regulatory agencies.

Payroll

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Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or perks) are various non-wage

compensations provided to employees in addition to their normal wages or salaries.[1] Where an employee exchanges (cash) wages for some other form of 

benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree.

Some of these benefits are: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement

benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized

benefits.

The purpose of the benefits is to increase the economic security of employees.

CanadaEmployee benefits in Canada might include additional health coverage that are not included in the provincial plan such as (medical, prescription, vision and

dental plans); health and dependent care; retirement benefit plans (in addition to Canada Pension Plan (CPP); group-term life and long term care insurance

plans; legal assistance plans; transportation benefits; and possibly other miscellaneous employee discounts wellness programs, discounted shopping, hotels

and resorts, and so on.

United StatesEmployee benefits in the United States might include relocation assistance; medical, prescription, vision and dental plans; health and dependent care flexible

spending accounts; retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care insurance plans; legal assistance plans; adoption

assistance; child care benefits; transportation benefits; and possibly other miscellaneous employee discounts (e.g., movies and theme park tickets, wellness

programs, discounted shopping, hotels and resorts, and so on).

United Kingdom

In the UK, Employee Benefits are categorized by three terms: Flexible Benefits (Flex) and Flexible Benefits Packages, Voluntary Benefits and Core Benefits.

Flexible Benefits, usually called a "Flex Scheme", is where employees are allowed to choose how a proportion of their remuneration is paid. Currently around

a quarter of UK employers operate such a scheme.[4] . This is normally delivered by allowing employees to sacrifice part of their pre-tax pay in exchange for a

car, additional holiday, a shorter working week or other similar benefits, or give up benefits for additional cash remuneration.

Voluntary Benefits is the name given to a collection of benefits that employees choose to opt-in for and pay for personally. These tend to be schemes such as

the government-backed (and therefore tax-efficient) Bike2Work and Childcare Vouchers (Accor Services, Busybees, Sodexho, Fideliti, KiddiVouchers, Imagine,

Early Years Vouchers Ltd) and also specially arranged discount schemes for employees such as group ISAs.

Core Benefits is the term given to benefits which all staff enjoy, such as holiday, sick pay and sometimes flexible hours.

Employee Benefits

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 A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job

performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or

supervisor[2]. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording

information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes andfailures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a

 job based on considerations other than productivity alone.

Aims

Generally, the aims of a performance appraisal are to:

Give employees feedback on performance

Identify employee training needs

Document criteria used to allocate organizational rewards

Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc.

Provide the opportunity for organizational diagnosis and developmentFacilitate communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

To improve performance through counseling, coaching and development.

Methods

 A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an

individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers,

subordinates, and customers, while also performing a self assessment. This is known as a 360-degree appraisal and forms good

communication patterns.

The most popular methods used in the performance appraisal process include the following:M anagement by objectives

360-degree appraisal 

Behavioral observation scale

Behaviorally anchored rating scales

Performance appraisal

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Labour Relations is increasingly being called employment relations because of the importance of non-

industrial employment relationships.

Labour Relations has three faces: science building, problem solving, and ethical.

In the science building face, industrial relations is part of the social sciences, and it seeks to understand the

employment relationship and its institutions through high-quality, rigorous research. In this vein, industrial

relations scholarship intersects with scholarship in labor economics, industrial sociology, labor and socialhistory, human resource management, political science, law, and other areas.

In the problem solving face, industrial relations seeks to design policies and institutions to help the

employment relationship work better.

In the ethical face, industrial relations contains strong normative principles about workers and the

employment relationship, especially the rejection of treating labor as a commodity in favor of seeing workers

as human beings in democratic communities entitled to human rights.

Labour Relations

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A typical Employment Cycle

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Thank You