FUNCTIONS OF HRM

These are carried out by HR managers to fulfil the goals and objectives of the organisation. They are classified into two broad categories, managerial and operative functions.

MANAGERIAL FUNCTIONS:

1. Planning:It involves the process of pre-determining the personnel programmes

that are necessary to attain the organisational goals. Accurate forecasting is vital to the success of any plan. The steps involved in the planning are:

Establishing goals and objectives to be achieved Developing rules and procedures Determining plans and forecasting techniques

2. Organising:It’s a process through which the firm establishes its structure and

determines the authority, responsibility and accountability of each member in relation to the job. Organising involves:

Giving each member a specific task

FUNCTIONS OF HRM

Managerial functions:

Planning Organising Staffing Directing Controlling

Operative functions:

Induction and Orientation Placement Selection Recruitment Human Resources Planning Job Analysis Employment

Establishing departments and divisions Delegating authority to the members Establishing channel of authority and communication Creating a system to coordinate the works of the members

3. Staffing:This deals with the creation and maintenance of human resources through

employment, compensation, benefits, training and development and industrial relations measures. The steps are:

Determining the type of people to be hired Recruiting prospective employees and selecting the best ones from them Compensating the employees Training and developing the employees Setting performance standards and evaluating the employees performance Counselling the employees

4. Directing:It’s the sum of several activities like communication, leadership and

motivation. Directing as a function, aims at securing willing cooperation from the individuals and groups to achieve the predetermined goals. It includes the following activities:

Getting works done through subordinates Motivating subordinates to strive for better performance Maintaining the group morale

5. Controlling :Is the process of checking the efficiency of the individuals and the groups in fulfilling the plans and goals through follow-up measures. The processes involved are:

Establishment of standard performance Measurement of actual performance Comparison of actual performance with the standard one to find the deviation Initiation of corrective action

OPERATIVE FUNCTION

The operative functions of personnel management are related to specific activities of personnel management viz., employment, development, compensation and relations. All these functions are interacted by managerial functions. Further these functions are to be performed in conjunction with management functions.

1. Employment

It is the first operative function of HRM. Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility.

2. Job Analysis:

 It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes:

Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials.

Preparation of job description, job specification, job requirements and employee specification which help in identifying the nature, levels and quantum of human resources.

Providing the guides, plans and basis for job design and for all operative functions of HRM.

3. Human Resources Planning:

It is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. It involves

Estimation of present and future requirement and supply of human resources basing on objectives and long range plans of the organization.

Calculation of net human resources requirement based on present inventory of human resources.

Taking steps to mould, change, and develop the strength of existing employees in the organization so as to meet the future human resources requirements.

Preparation of action programs to get the rest of human resources from outside the organization and to develop the human resources of existing employees.

4. Recruitment:

It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It deals with:

Identification of existing sources of applicants and developing them. Creation / Identification of new sources of applicants. Stimulating the candidates to apply for jobs in the organization. Striking a balance between internal and external sources.

5. Selection:

It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an applicant with a view to appraising his / her suitability to a job appraising.

This function includes:

Framing and developing application blanks. Creating and developing valid and reliable testing techniques. Formulating interviewing techniques. Checking of references. Setting up medical examination policy and procedure. Line manager’s decision. Sending letters of appointment and rejection. Employing the selected candidates who report for duty.

6. Placement:

 It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employees specifications with job requirements. This function includes:

Counselling Conducting follow-up study, appraising employee performance in order to

determine employee’s adjustment with the job. Correcting misplacements, if any.

7. Induction and Orientation:

 Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes and people etc., of the organization.

Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc.

Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates.

Mould the employee attitude by orienting him to the new working and social environment.

What is Strategic Management?

Strategic management is a process, an approach to addressing the competitive challenges an organisation faces.

Strategic Human resource management can be thought of as the pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goals.

Linkage between HRM and Strategic Management Process

The strategic choice really consists of answering questions about competition – that is how the firm will compete to achieve its mission and goals. These decisions consist of addressing the issues of where to compete, how to compete and with what to compete. Often the ‘with what will we compete’ questions present ideal avenues for HRM to influence the strategic management process. This might be through either limiting strategic options or forcing thoughtfulness among the executive team regarding how and at what cost the firm might gain or develop the human resource necessary for such a strategy to be successful. A firm’s strategic management decision

External analysis-

Opportunities

Threats

Mission

Goals

Strategic

choice

Human Resource needs –

skills, behavior,

culture

Internal analysis-StrengthsWeakness

HR PracticesRecruitment

TrainingPerformance Management

Labor RelationsEmployee Relations

Job analysisJob Design

Pay structureIncentiveBenefits

Human Resource

capability – skills,

abilities, knowledge

Human Resource actions –

behaviors, results

Firms Performanc

e- productivity

, quality, profitability

making process usually takes place at its top levels, with a strategic planning group consisting of the chief executive officer, the chief financial officer, the president and various vice presidents. However each component of the process involves people related business issues. Therefore HRM function needs to be involved in each of those components. Four levels of integration seem to exist between the HRM function and the strategic management function.

Administrative Linkage

In administrative linkage, the HRM functions attention is focused on day to day activities. The HRM executive has no time or opportunity to take a strategic outlook toward HRM issues. The company’s strategic business planning function exists without any input from the HRM department. Thus in this level of integration the HRM department is completely divorced from any component of the strategic management process in both strategy formulation and strategy implementation. The department simply engages in administrative work unrelated to the company’s core business needs.

One Way Linkage

In one way linkage the firm’s strategic business planning function develops the strategic plan and then informs the HRM function of the plan. Many believe this level of integration constitutes strategic HRM- that is the role of the HRM

Strategic Planning

Strategic Planning

Strategic Planning

HRM Function

HRM Function

HRM Function

Strategic Planning

HRM Function

Administrative Linkage

One Way Linkage

Two Way Linkage

Integrative Linkage

function is to design systems and programs that implement the strategic plan. This level of integration often leads to strategic plans that the company cannot successfully implement.

Two Way Linkage

Two way linkage allows for consideration of human resources issues during the strategy formulation process. This integration occurs in three sequential steps. First the strategic planning team informs the HRM function of the various strategies the company is considering. Then HRM executives analyze the human resources implications of the various strategies, presenting the results of this analysis to the strategic planning team. Finally, after the strategic decision has been made, the strategic plan is passed on to the HRM executive who develops programs to implement it. The strategic planning function and the HRM function are interdependent in two way linkage.

Integrative Linkage

Integrative linkage is dynamic and multifaceted, based on continuing rather than sequential interaction. In most cases the HRM executive is an integral member of the senior management team. Rather than an iterative process of information exchange companies with integrative linkage have their HRM functions built right into the strategy formulation and implementation process.

Thus in strategic HRM, the HRM function is involved in both strategy formulation and strategy implementation. The HRM executive gives strategic planners information about the company’s human resource capabilities and these capabilities are usually a direct function of the HRM practices. This information about human resource capabilities helps top managers choose the best strategy because they can consider how well each strategic alternative would be implemented. Once the strategic choice has been determined, the role of HRM changes to the development and alignment of HRM practices that will give the company employees having the necessary skills to implement the strategy. In addition HRM practices must be designed to elicit actions from employees in the company.

Competitive Challenges Faced By HRM

The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization’s big picture and be able to influence key decisions and policies.

Major challenges are…..

The Global Challenge The Challenge of Meeting Stakeholders’ Needs The High Performance Work System Challenge

The Global Challenge

Expand into foreign markets.Prepare employees to work in foreign locations.Communication and CompensationCultural conflictsPerformance and Decision-making

The research has shown that the HR function in international organization has to meet a series of challenges. Three key conclusions about the role of HR professionals working in the field of international recruitment selection and assessment can be drawn:

The added value of the HR function in an international firm lies in its ability to manage the delicate, balance between globally coordinated systems and sensitivity to local needs, including cultural differences, in a way that align with both business needs and senior management philosophy.  There now appear to be a distinction to be made between international HRM and

global HRM. In this transition, the old functional divides between international recruitment, international management development and international reward management have become increasingly weak.

Over the last 20 years, the workplace has changed in more ways that one could have ever imagined, resulting from the increase in technology, innovation and globalization. The next decade will bring even greater change, impacting all facets of the workplace, including major changes for the HR department and HR managers. In order to respond to the demands of globalization, HR managers will require new skills and competencies relating to language and culture, technology capabilities to facilitate overseas communication, methods to measure and quantify effectiveness and evaluate strategies and return on investment. Evidently, these new skills and competencies will result in an emerging new role for HR managers, requiring them to be strategic business partner, supportive of the overall corporate strategy.

The future role of HR professional will change from a less administrative role to more of a strategic role. HR managers will continually be required to prove their effectiveness and their existence. They will be expected to understand international business practices and promote cultural diversity within the organization. They will need to understand the core business of the organization and become partners with line managers. They will need to prove that their initiatives and programs are result-oriented, providing specific measurable results in terms of business competitiveness that contribute positively to the bottom-line of the organization. They will be required to stay current with leading edge as more and more organization is faced with the demands of globalization and strategic alliances with other organization around the world.

The Challenge of Meeting Stakeholders’ Needs

The balanced scorecard

Meeting customer needs for quality

Labour force diversity

Structure of the economy

Skill deficiencies

Changes in employment contract

Employee values

Legal issue (EEO, Affirmative action plan)

Ethical considerations

The High Performance Work System Challenge

Change in work roles & skills -Technical Change

Use of teams

Change in nature of managerial work

Change in company structures

Availability of information on people

Increased competitiveness

Role of HR in Providing Strategic Competitive Advantage

Introduction

Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never ending changes that organizations are undergoing have led to increased importance of managing human resources. A human resource (HR) department that is highly administrative and lacks strategic integration fails to provide the competitive advantage needed for survival, thus losing its relevance. It is important not only to identify HR competencies in concurrence with the business needs and to develop

selection and development practices to secure those competencies, but also to evolve and implement a performance evaluation plan that links the performance of the employees to the strategic goals.

Strategic PlanningStrategy-The company’s long term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain competitive advantage. Thus, the president and his or her staff might decide to enter new markets, would drop product lines, or embark on a five year cost cutting plan. Then he or she would more or less leave the personal implications of that plan (hiring or firing new workers, hiring outplacement firms for those fired, and so on) for HR management to carry out. Today HR plays a more central role.

Managers engage in 3 levels of strategic planning for their firms.

Corporate level strategy – It identifies the portfolio of businesses that compromise the organization, ant the ways in which these businesses relate to one another.

Business level competitive strategy – It identifies how its managers will build and strengthen that business’s long term competitive position in the market place.

Functional strategy – It identifies the basic courses of action that each of the departments will pursue in order to help the business to attain its competitive goals.

HR’s Strategic RoleToday, it’s the firm’s workforce-its knowledge, commitment, skills & training-that provides the competitive advantage for world class companies like Microsoft, Sony… That means an upgrading role of HR’s traditional role. As new technologies in areas like testing & interviewing began to emerge, the personnel department began to play an expanded role in employee selection, training & promotion. In today’s flattened, downsized & high performing organizations, trained and committed employees-not machines-are the firm’s competitive key.

Strategic Human Resource ManagementIf a firm’s competitiveness depends on its employees, then the business function responsible for acquiring, training and compensating those employees has to play a bigger role in the firm’s success. SHRM is the linking

of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation & flexibility. Ideally HR and tom management together craft the company’s business strategy. That strategy then provides the framework that guides the design of specific HR activities such as recruiting and training.

HR’s Role as a Strategic PartnerUnfortunately, HR’s long history as a staff or advisory function has left it with a somewhat improvised reputation-some still tend to view it as less than it is. For example, one view is that HR is strictly operational and that HR activities are not strategic at all.

A second, more expansive, view is that HR’s role is to adapt individual HR practices to fit specific corporate and competitive strategies. The HRM system must be tailored to the demands of business strategy.

A third view of HRM is that it is an equal partner in the strategic planning process. Here HR’s role is not just to adapt its activities to the firm’s business strategy. Instead, the need to forge the firm’s workforce into a competitive advantage means that HRM must be an equal partner in both the formulation and the implementation of the company’sstrategies.

HR’s role in Executing Strategy – HR handles the execution of most of firm’s downsizing and restructuring strategies-by outplaying employees, instituting pay for performance plans, reducing health care costs, retraining employees. Strategy execution usually involves identifying and reducing costs, and therefore value chain analysis. A company’s value chain identifies the primary activities that create value for customers and the related support activities.

HR’s role in Formulating Strategy –Formulating a strategic plan requires identifying, analyzing and balancing the company’s external opportunities and threats & its internal strengths and weakness. HR plays a role here too. Formulating plans requires competitive intelligence, and HRM can supply useful information. Details regarding new competitors’ incentive plans about pending legislation like labor laws or mandatory health insurance are some examples.

ConclusionManagers and supervisors in every department confront human resource issues every day and are responsible not only for interactions within their own department, but also interactions between departments. The primary function of human resources management today is to ensure the effective and efficient use of human talent to accomplish an organization’s goals and objectives.

Using human resources as a competitive advantage means analyzing what factors are necessary for the organization’s long-term success. Areas such as organizational design, key work processes, teams, hiring effective employees, promotion strategies, defining competencies and performance measures, training and development programs for current jobs and preparation for future positions, reward and recognition systems, motivation and retention, and customer perceptions of the organization and employees are essential to this concept.

In order to formulate appropriate competitive advantage through employees, it is first necessary to analyze the firm's competitive strategy or business strategy and organizational human resource practices. The organization should create a complete model of HRM and employment relationship; also it should support long-term thinking, building “core competencies” and also develop “sensing” capabilities.

Accordingly, it is the responsibility of managers and supervisors to ensure that employees are motivated, productive and positive - if not enthusiastic - about their work. This means integrating human resources practices with core business practices: encouraging all departments to work together on "people" programs that bring value to the organization and improve productivity and quality in products and services. Positive human resources business programs and organizational behaviour strategies translate into a positive overall impact on the organization.

Responsibilities and Role of HR Department

There are many different roles and responsibilities that can be performed by the HR department depending on the size of the organization, the demographic profile of the employees' roster, the industry where the business belongs, values and corporate culture prevalent within, and the priorities of top management, and in the case of a small business, the priorities of its owner.

The HR in small organizations may take full responsibility for all human resource activities. Whereas in others, it may share the roles and

responsibilities of other departments such as the finance or administration. While in others, it acts as an internal consultant and makes all the HR-related decisions in support of strategic business directions.

In the recent years it is noticeable that more and more organizations are looking at HR professionals as their strategic partners in quality management, corporate planning, business operations, and business profitability. HR management now takes the forefront in strategic planning and expansions in ways that enhance the image and value of the organization.

Responsibilities of HR Department

1)Employment and Recruiting Interviewing, recruiting, testing, temporary labor coordination

2)Training and Development Orientation, performance management, skills training, productivity enhancement.

3)Compensation Wage and salary administration, job descriptions, executive compensation, incentive pay, job evaluation.

4)Benefits Insurance, vacation leave administration, retirement plans, profit sharing, stock plans.

5)Employee Services Employee assistance programs, relocation services, outplacement services.

6)Employee and Community Relations

Attitude surveys, labor relations, publications, labor law compliance, discipline

7)Health and Safety Safety inspection, drug testing, health, wellness.

8)Strategic Planning International human resources, forecasting, planning, mergers and acquisitions.

9)Personnel Records Information systems, records.

Roles of HR Department

HR Roles in Building a Competitive Organization

Future/Strategic Focus

Processes People

Day-to-Day/Operational Focus

The roles and responsibilities of the HR department are summarized in Figure above

The vertical dimension represents the focus of a future or strategic orientation versus day-to-day operational orientation. The activities are shown as people versus process along the horizontal dimension. The figure shows that the HR function can play roles in the management of strategic human resources (Strategic Partner), the management of company infrastructure (Administrative expert), the management of transformation and change (Change agent) and the management of employee contribution (Employee advocate).

1) Strategic Partner:

Management of strategic human resources

Management of transformation and change

Management of firm infrastructure

Management of employee contribution

Aligning HRM strategies to business strategies is important to help the company execute its business strategy.

2)AdministrativeExpert: Playing the role of administrative expert requires designing and delivering efficient and effective HRM systems, processes and practices. These include systems for selection, training, developing, appraising and rewarding employees.

3) Employee Advocate:

The employee advocate role entails managing the commitment and contributions of employees. No matter how skilled workers may be, if they are alienated or angry, they will not contribute their efforts to the firm’s success nor will they stay with the firm for long.

4) Change Agent:

The final role change agent requires that HRM help transform organizations to meet the new competitive conditions. In today’s fast changing competitive world HR managers need to help identify and manage processes for change.

Recruitment and Selection

-Internal and External recruitment

The Recruitment and Selection Process is one of the basic HR Processes. Recruitment and Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoring from their side.

The Recruitment and Selection Process must be simple and must be robust enough to operate excellently in the moment of the insufficient number of candidates on the job market and the process must be also able to process a large number of candidates within given time limit.

The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources Department.

External Recruitment:

The External Recruitment is the source of the fresh blood for the organization. As a very critical HR Process, the external recruitment process has to be set up very carefully. The external recruitment involves other external parties and they have to cooperate closely to bring a common success for the organization. The external recruitment is a difficult HR Process when it has to be done properly and meeting stretching requirements and goals of the top management.

The HRM Function has to take initiatives in four important areas to make the external recruitment efficient, quick and bringing the right quality of candidates:

Organization Brand Name Correct Positioning of Job Posting Channels Used to promote the job vacancy Speed of the Recruitment Process.

External Recruitment Channels

The External Recruitment Channels are the channels used to communicate job vacancies to the public audience and the correct usage of the external recruitment channels brings the right candidates for the positions.

Generally, the HRM Function is responsible for monitoring the job market and react appropriately to the changes on the job market with the right mix of the channels used to bring the expected level and number of candidates at the affordable costs. The external recruitment is a very costly HR Process and it is under the pressure for the cost savings all the time.

The HR Recruiter has always to make a complex decision based on the following criteria:

Speed Cost Quality Confidentiality Job Position Requirements Job Openings Plan and Forecast Available external recruitment budget

What to measure in external recruitment process?

The HRM Function cannot miss the opportunity to introduce clever external recruitment measures, which will show the development in the area and will provide detailed reporting to the organization.

The measures have to be defined carefully and it should cover the following areas:

Positions - the main reason for the external recruitment. The HRM Function has to keep track of all open positions in the organization, the number of positions, in departments and how complex the position are as the HRM Function has to define the limits

Time - the external recruitment process must be cut into separate pieces to take the measures, there can’t be a discussion over them and the HRM Function has to measure all the vacancies

Sources - the sources of the external recruitment, including the number of candidates and the percentage of the successful candidates, it is good for measuring the real success rate of different external recruitment channel with different positions

Costs - each external hire has costs associated with and the HRM Function has to measure the efficiency of the whole process

The external recruitment process is not easy to measure and it takes a lot of effort to implement it correctly, but reading the trends in the recruitment, it can help the HRM Function to keep the process in the right shape.

The external recruitment is not just about choosing the right or ideal candidate for the vacancy in the organization. The external recruitment is also about the competition. The competition is about the attractiveness of the job advert, communication and quick response from the organization. The communication is essential during the external recruitment process. The organization, which sends information to its potential hires, the better relationship with the job candidate can be. The organization should inform the job candidate about the step in the recruitment process and expecting time of

the next message. People love to be informed about the status of the recruitment process and the organization should allow the smooth information flow.

Internal Recruitment:

The Internal Recruitment is the most favorite source of candidates in the stable and developed companies. The Internal Recruitment needs a strong support from other HR Processes, because the unmanaged internal recruitment process can lead to disappointed managers and employees in the organization. The Succession Planning and strong and consistent Performance Management are needed to ensure the success of the internal recruitment.

The internal recruitment process has a lot of benefits and it is always difficult to decide whether to use internal or external recruitment process. The internal recruitment is a right recruitment process for the large organization, which promote friendliness in their corporate culture.

The corporate culture, which supports the employees to look for the opportunities in the organization, is well designed for the internal recruitment process and the process can be a big benefit for the organization. The corporate culture, which is focused on a strong competition among employees and with the external environment, this corporate culture does not support the internal recruitment process.

Internal Recruitment Process Weaknesses

The Internal Recruitment Process does not have just benefits; this process has some disadvantages as well. The Internal Recruitment Process is a very powerful tool, but it can be misused in hands of some employees and managers.

The Internal Recruitment Process is not a process to steal the best employees from their departments. These employees should be treated as a very scarce resource and the internal recruitment procedures should work differently for them.

Internal versus External Job Candidate

The selection of the winning internal or external job candidate is a common dilemma of the internal recruitment process. Many times, the

external and the internal final candidates compete for the job position. The HRM Function and the hiring manager have to make a correct decision.

The efficient internal recruitment needs clear rules for the decision about the winning candidate. The organization has to clearly define the condition for the final decision based on the corporate culture and habits inside the organization.

On the opposite side some organizations always prefer internal candidates for job positions and they do not have to compete with the external candidates. This is also very dangerous approach as the external candidate can bring a new knowledge or the approach to the organization.

Selection

Selection is a systematic process of identifying suitable candidates for the available jobs from the available applicant pool.

Differences between recruitment and selection

Phases of the selection process

Phase 1: Measurement

Involves the verification of accuracy and consistency of ensuring selection techniques.

Phase 2: Decision-making

Ensuring the completeness of employee data to make accurate and uncompromising hiring selection decision.

Phase 3: Evaluation

Identifying the role and effectiveness of the selection process from the organizational perspective.

Phases of the selection process

Steps in selection process

Employment application forms/blanks: Standardized format to collect the necessary information.

Selection test: This is a psychological test for comparing and contrasting the behaviour of two or more persons on the basis of a standardized measure.

Selection interview: This is a face-to-face conversation with the candidate to collect the required information.

Reference check: Cross-checking information provided by the candidates in different stages of the selection process.

Physical examination: Medical test to ensure that candidates meet the physical requirements of the job.

Job offer: A job offer is a formal communication which specifies the details of job offer made to the selected candidate.

Employment application forms/blanks

Application forms normally solicit the following information from the candidates

Biographical information

Educational qualifications

Work experience

Pay and other perquisites

Additional information

References

Selection tests

A test is a standardized assessment of a sample but critical behaviour of candidates to determine their suitability for the job.

Characteristics of psychological tests

Objectivity- It refers to the validity and reliability of the measuring tools.

Standardization- It means that there is uniformity in the procedure followed in conducting the test.

Sample of behaviour- It refers to test contents which should predict a representative sample of the eventual behaviour of the candidates.

Types of psychological tests

Types of ability test

Intelligence (IQ) test- The aim of an intelligence test is to measure the general intellectual abilities of a person.

Aptitude test- An aptitude test measures the latent talents of a person that may be crucial to performing the job successfully.

Achievement test- The aim of an achievement test is to measure the knowledge gained by a person in his or her job.

Personality test

A personality test proposes to assess and predict these basic characteristics of a person.

Its results are useful in predicting the future performance of the candidate.

Rorschach Blot Test (RBT), Thematic Apperception Test (TAT), Minnesota Multiphase Personality Inventory (MMPI) and Myers-Briggs type indicator (MBIT) are some of the popular forms of personality test.

Interest test

The aim of the interest test is to know the interest, attitude and preference of a person towards the job offered.

Kuder Preference Record and Strong Vocational Interest Blank are some well-known interest tests.

Honesty or integrity test

In an honesty or integrity test, the questions are asked in such a way that the attitude and actual behaviour of the candidates can be found out.

These are rarely used in India.

Evaluation of psychological tests

Merits

Objective in evaluation.

Ideal for large groups.

Predictor of intangible talents.

Goal-specific and target-oriented.

Record for future.

Limitations

Lack of flexibility. Unsuitable for smaller groups.

Developing a test programme-steps

Determining the job and skills requirements.

Deciding the types of test.

Developing the success criteria.

Administering the test.

Evaluating the results.

Selection interview

Interview is a face–to–face conversation to collect information from a candidate to determine his or her suitability for a job.

Kinds of interview

Structured interview- In this method, the interviewer predetermines the questions to be asked and follows the same to ask the interviewee a series of questions with little or no deviation.

Unstructured interview- In this type of interview, the interviewer does not pre-plan the questions to be asked. In fact, he or she decides on the questions as the interview proceeds.

In-depth interview- The purpose of this interview is to discuss the information concerning the candidate in detail. The intention is to ensure that no vital information is missed out.

Stress interview- The intention of the interviewer in this kind of interview is to identify sensitive candidates who have low-stress tolerance. The purpose of a stress interview is to put the candidate in an uncomfortable situation to see his or her ability to handle stress.

Panel interview- A panel of two or more interviewers is formed to interview the candidate. The interviewers are generally drawn from different fields.

Computerized interview

In computerized interviews, the applicant is asked computerized oral questions and his or her oral or computerized replies are recorded. Computerized interviews are often used as preliminary interviews.

Strategy for an effective interview process

Familiarizing oneself with the information available.

Getting ready with an interview plan.

Creating a supportive environment

Conducting the interview.

Ending the interview.

Reviewing the performance.

Weaknesses of the interview method

Lack of objectivity.

Halo effect.

Inadequacy of time.

Lack of uniformity.

The absence of training for the interviewers.

MEETING COMPETITIVE CHALLENGES THROUGH HRM PRACTICES

HRM practices that help companies deal with the competitive challenges can be grouped in to the four dimensions. These dimensions include:

1. Managing the human resource environment2. Acquiring and preparing human resources3. Assessment and development of human resources4. Compensating human resources

In addition, some companies have special issues related to labour - management relations, international human resource management, and managing human resource function.

HRM PRACTICES

• HRM strategy is matched to business strategy

• Knowledge is shared

• Work is performed by teams

• Pay systems reward skills and accomplishments

• Selection system is job related and legal

• Flexibility in where and when work is performed

• Work attitudes of employees are monitored

•

• continuous learning environment

• discipline system is progressive

• Customer satisfaction and quality are evaluated in the

performance management system

Skills and values of a diverse

Workforce are valued and used

• Technology is used to reduce the time

• for administrative tasks and to

• improve HR efficiency and• Effectiveness

1. Managing human resource environment

Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness. Creating a positive environment for human resource involves

SUSTAINABILITY CHALLENGEGLOBAL CHALLENGE

TECHNOLOGY CHALLENGE

Linking HRM practices to the company’s business objectives_ that is, strategic human resource management.

Ensuring that HRM practices comply with federal, state, and local laws.. Designing works that motivates and satisfies the employee as well as

maximizes customer services, quality and productivity

2. Acquiring and preparing human resources

Customer needs for new products or services influence the number and type of employees businesses need to be successful. Terminations, promotions and retirements also influence human resource requirements. Managers need to predict the number and type of employees who are needed to meet customer demands for products and services. This area of human resource management deals with:

Identifying human resource requirements – that is, human resource planning, recruiting employees and selecting employees

Training employees to have the skills needed to perform their jobs.

3. Assessment and development of human resources

Managers need to ensure that employees have the necessary skills to perform current and future jobs. Companies need to create a work environment that supports employees work and nonwork activities .This area of human resource management addresses

Measuring employees performance Preparing employees for future work roles and identifying employees

work interests, goals, values and other career issues Creating an employment relationship and work environment that

benefits both the company and the employee

4. Compensating human resources

Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality and customer service. Also, pay and benefits are used to reward employee’s membership in the company and attract new employees. The positive influence of new work designs , new technology and the quality movement on productivity can be damaged if employees are not satisfied with the level of pay and benefits or believe pay and benefits are unfairly distributed. This area of human resource management includes

Creating pay systems

Rewarding employee contributions Providing employees with benefits

Special issues

In some companies employees are represented by a labour union. Managing human resources in a union environment requires knowledge of specific laws, contract administration and the collective bargaining process

Many companies are globally expanding their business through joint ventures, mergers, acquisitions and establishing new operations. Successful global expansion depends on the extent to which HRM practices aligned with cultural factors as well as management of employees sent to work in another country. HRM practices must contribute to organizational effectiveness.

HRM practices of both managers and the human resource function must be aligned and contribute to the company’s strategic goals.

Job Analysis and Design

Job analysis is a process of gathering relevant information about various aspects of a job, including its content, context and the job performer’s skill requirements.

Features of job analysis:

Identification of tasks required to be performed.

Defining the role, context, conditions, human behavior, performance standards and responsibilities.

Establishing the job’s worth to an organization.

Establishes job-relatedness.

Assists in the resource management and strategy formulation.

Developing a job profile for each job and acts.

Identifying the appropriate job for each employee.

Better understanding of the impact of environmental changes on individual jobs.

Identifying and removing unnecessary skills and other requirements for a job.

Job improvements through job reengineering and job enlargement.

Job improvements through job reengineering and job enlargement.

Goals of Job analysis:

Jobs Analysis Process:

Techniques of data collection:

Types of questionnaires:

Job description

Job description is a document that specifies the tasks, duties, and responsibilities of the job and should certainly be relevant and accurate — Clyde E. Witt.

Components of a job description statement:

Job title

Alternate title (if any)

Job purpose (general purpose of the job)

Code number (job identification number)

Job holder title (title of the holder of this job.)

Job location

Job type (full-time/part-time)

Department/office (where this job is located.)

Reporting authority (job title to which this job should report)

No. of staff under this post (number and name of the job titles to be controlled by this job)

Job summary (a brief description about the job)

Job duties (day-to-day tasks to be performed)

Authority limits

Working conditions required

Technical requirements

Skills required for the job (minimum skills and competencies required for performing the job)

Experience required for the job (minimum experience required for the performance of the job)

Special circumstances (information about night shifts, overtime, extensive travelling, etc.)

Special requirements (special tools and equipment requirements for the job)

Job specification

Job specification is the process of inferring the human trait requirements presumed to be necessary for successful job performance. — R. Harvey and M. Wilson.

Broad titles in job specification:

Education and training

Work experience

Skills and competencies

Physical strength and stamina

Stress-coping ability

Special needs

Pro forma job specification statement:

Position title (title and designation of the job holder in the job).

Department/office (where the job holder would be posted).

Educational qualifications and training requirements.

Experience (minimum number of years of experience the candidate must possess).

Work-based skills and competencies required.

Behavioural skills and talents required (skills necessary for team work, effective leadership, diagnosing the problems, motivating oneself and others, effective communication, etc.).

Other attributes required (special qualities required for the performance of this job).

Challenges affecting the effectiveness of job analysis:

Employee’s anxiety

Management attitude towards job analysis

Undue importance to job holders

Environmental influence

Absence of follow-up action.

Job design

Job design is the process of determining the specific tasks to be performed, the methods used in performing these tasks, and how the job relates to other work in the organization.

— R. Wayne Mondy

Job enrichment

Job enrichment refers to the development of work practices which challenge and motivate the employees to perform better.

Job rotation

Job rotation refers to moving employees from one job to another in a predetermined way. It enables an employee to perform diverse roles and gain exposure to the techniques and challenges of doing several jobs.

Job reengineering

Job reengineering is the process of streamlining jobs in the form of combining a few jobs into one, redistributing the tasks among various jobs and reallocation of resources.

Job enlargement

Job enlargement aims at making the job more attractive by increasing the operations performed by a person in the job. It transforms the jobs to include more and/or different tasks.

Enlargement is of two types and these are:

Horizontal enlargement Vertical enlargement .

HUMAN RESOURCE PLANNING

Human resource planning is a process of identifying and then matching the human resource requirements and availability in order to determine the future HR activities of the organization on the basis of the overall organizational objective.

Significance of human resource planning

Assessing future recruitment requirements.

Optimum utilization of available human resources.

Developing training and retraining programmes.

Formulating compensation policies.

Determining management development programmes.

Gaining competitive advantage.

Shaping future plans and strategies.

Factors affecting human resource planning

Strategy of the organization.

Culture of the organization.

Competitive and financial environment.

Current organizational situation.

Quantity and skill levels of human resources required.

Step-1: Considering organizational objectives and strategies

The organizational strategy along with the mission and vision statement clearly expresses the future intent of the organization.

HR plans are generally guided by the overall organizational objectives and strategies.

Step-2: Assessment of external environment

Organizations undertake environmental scanning to identify the changes in the external environment.

Purpose of environmental scanning is to examine the business environment, to seize the opportunities and tackle the threats.

Step-3: Preparation of in-house skills and competency inventory

A compilation of skills, competencies and qualifications of the entire workforce is described as a skill inventory.

Step-2: Assessment of external environment

Skill inventory can be prepared through

Skills audit (assessing the current skill levels of a firm). It involves assessing the performance of the employees from the task perspective.

Core competency analysis (assessing the extra-ordinary abilities of the firm). These abilities may be its advanced technology, well-reputed management, problem-solving ability, employees’ and KSA.

Step-4: HR forecasting—need assessment

Forecasts involve estimating the future requirements of the organization in terms of the nature and the number of people.

Forecasting techniques commonly used for human resource forecasting are

HR forecasting— Ratio analysis

Ratio analysis is the analysis of the relationship between any two numerical variables.

It presumes a certain relationship between two given variables and using that relationship, predicts future HR requirements.

HR forecasting— Delphi technique

The Delphi technique is basically a group-based systematic forecasting method.

This technique does not require any face-to-face participation by the experts.

This method aims at maximizing the benefits and minimizing the dysfunctional aspects of group decision-making as it eliminates group dynamics and individual dominance from the process.

HR forecasting— normal group technique

It is an interactive mode of decision-making.

Each expert in a group independently develops HR requirements and presents it before other experts in the group.

Each member’s proposal is relatively graded and the top-ranked proposal is selected as the final HR forecast.

HR forecasting— managerial judgement

The forecasting in managerial judgement is based on the managers’ subjective views on the possible human resource requirements in the future.

Forecasts are made about the HR requirements, usually by the senior managers of the organization based on their experience.

Types of managerial judgement

Bottom-up approach- In this method, the process of HR forecasting begins with the lowest level of the managerial hierarchy and the managers in charge of each division or department forecast the HR requirements. This forecasting process is then moved up gradually to the higher levels of the management.

Top-down approach- In this method, experts working at the highest levels of the management forecast the HR needs of the organization on the basis of the information available and the field expertise.

HR forecasting— work study technique

It aims at examining the business operations to achieve the optimum utilization of the human and physical resources available.

The major purpose of this technique is to improve the employees’ productivity and organizational efficiency.

This technique is normally carried out through method study and work measurement techniques.

HR forecasting— zero-base forecasting

Zero-base forecasting requires lines managers to justify the need to continue with the positions or jobs that fall vacant in their department.

It does not consider any position as eligible for routine continuance.

This method requires managers to conduct a comprehensive study of the utility of each vacancy before seeking replacements. This technique is derived from the widely popular concept of zero-base budgeting.

HR forecasting— simulation model

Simulation model is a mathematics-oriented, software-enabled technique.

This model simulates the HR requirements and availability to determine the likely gap between the demand for and the supply of human resources.

The working of the simulation model involves asking several what-if questions to develop alternatives in the forecasting process.

HR forecasting— human resource allocation approach

HAPP method has four components

Employees

Functions

A matching model and

A formal rule structure

This method allows comprehensive modelling of the interaction among these components. The matching model deals with the allocation of different jobs to employees. An organization would make HR forecasting based on the specific outcome of the matching model.

HR forecasting—estimation of availability

This process involves the estimation of the availability of the required number of employees.

The techniques for forecasting HR availability through internal sources are

Replacement charts- These are records that contain details about the currently serving employees and the possible replacements for them in their position.

Turnover rate

Human resource management information system (HRIS)

Productivity level

Overtime and absenteeism

Succession planning

Step-5: Developing HR plans and programmes

The estimated HR needs are matched with the estimated HR availability to identify the skill shortage or surplus.

Based on the outcome, appropriate HR plans are developed.

The outcome of such comparisons would be either the recruitment of more employees or a reduction of the existing workforce.

Barriers to HR planning process

Insufficient realization of the importance of HR plans.

Glut in the Indian labour market.

Union resistance.

Cost–benefit misconceptions.

Absence of coordination.

Future uncertainty.