human resource management

What is an Organization ?

A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.

Organizational Structure

It is a framework within which an Organization arranges it’s lines of authorities and communications and allocates rights and duties.

Types of Organizational Structure

1. Tall Organizational Structure2. Flat Organizational Structure3. Virtual Organizational Structure4. Boundary less Organizational Structure

Tall Organizational Structure

• Large, complex organizations often require a taller hierarchy.

• In its simplest form, a tall structure results in one long chain of command similar to the military.

• As an organization grows, the number of management levels increases and the structure grows taller. In a tall structure, managers form many ranks and each has a small area of control.

Flat Organizational Structure

• Flat structures have fewer management levels, with each level controlling a broad area or group.

• Flat organizations focus on empowering employees rather than adhering to the chain of command.

• By encouraging autonomy and self-direction, flat structures attempt to tap into employees’ creative talents and to solve problems by collaboration.

Copyright © 2004 South-Western. All rights reserved.

Flatter Organizations

T echnica lD evelopm ent

T ea m

Ma nufa cturingEngineering

T ea m

PeopleSystem s

T ea m

Fina nceT ea m

Purcha sing a ndSuppllier Q ua lity

T ea m

Sa les, Service a ndMa rketing

T ea m

Executive andO pera tions

T ea m

3–8

Virtual Organizational Structure

• Virtual organization can be thought of as a way in

which an organization uses information and communication technologies to replace or augment some aspect of the organization.

• People who are virtually organized primarily interact by electronic mea

• For example, many customer help desks link customers and consultants together via telephone or the Internet and problems may be solved without ever bringing people together face-to-face

Boundary less Organizational Structure

• A boundary less Organizational structure is a contemporary approach in Organizational design.

• It is an organization that is not defined by, or limited to the horizontal, vertical or external boundaries imposed by a pre-defined structure.

• It behaves more like an organism encouraging better integration among employees and closer partnership with stakeholders.

• Functional

• Line

• Matrix

• product

Job Analysis

• Formal and detailed examination of jobs

• Process of defining a job in terms of its component tasks or duties and the knowledge or skills required to perform them .

.

DEFINITION• Job refers to a group of activities performed by an

employees• Tasks is a larger work segment composed of several

tasks that are performed by an individual• Responsibilities is an obligations to perform certain

tasks and duties.• Job analysis

– The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

– The process of obtaining information about jobs by determining what the duties, tasks, or activities of jobs are

Job description

Statement of the tasks, duties, and responsibilities (TDRs) of a job to be performed

Job specification

• Job Specification– Statement of the needed knowledge, skills, and

abilities (KSAs) of the person who is to perform the job

Relationship of Job Requirementsto Other HRM Functions

Copyright © 2004 South-Western. All rights reserved. 3–17

Job RequirementsJob Requirements

RecruitmentRecruitment

SelectionSelection

Performance Appraisal

Performance Appraisal

Training and Development

Training and Development

Compensation Management

Compensation Management

Determine recruitment qualificationsDetermine recruitment qualifications

Provide job duties and job specifications for selection process

Provide job duties and job specifications for selection process

Provide performance criteria for evaluating employees

Provide performance criteria for evaluating employees

Determine training needs and develop instructional programs

Determine training needs and develop instructional programs

Provide basis for determining employee’s rate of pay

Provide basis for determining employee’s rate of pay

Presentation Slide 3–1

Methods of Collecting Job Analysis Information: The Interview

• Information Sources– Individual employees– Groups of employees– Supervisors with knowledge

of the job

• Advantages– Quick, direct way to find

overlooked information

• Disadvantages– Distorted information

© 2008 Prentice Hall, Inc. All rights reserved. 4–18

Methods of Collecting Job Analysis Information: Questionnaires

• Information Source– Have employees fill out

questionnaires to describe their job-related duties and responsibilities

• Advantages– Quick and efficient way to

gather information from large numbers of employees

• Disadvantages– Expense and time consumed

in preparing and testing the questionnaire


Methods of Collecting Job Analysis Information: Observation

• Information Source– Observing and noting the

physical activities of employees as they go about their jobs

• Advantages– Provides first-hand

information– Reduces distortion of

information

• Disadvantages– Time consuming– Difficulty in capturing entire

job cycle– Of little use if job involves a

high level of mental activity


Methods of Collecting Job Analysis Information: Participant Diary/Logs

• Information Source– Workers keep a chronological

diary/ log of what they do and the time spent on each activity

• Advantages– Produces a more complete

picture of the job– Employee participation

• Disadvantages– Distortion of information– Depends upon employees to

accurately recall their activities


The process of Job analysis

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The major steps involved in job analysis are:

Organisational analysis

Selection of representative positions to be analysed

Collection of job analysis data

Preparation of job description

Preparation of job specification

Job Analysis

Job Description

• Job description is an important document which is basically descriptive in nature and contains a statement of job analysis

• It serves to identify a job for consideration by other job analysts

• It tells us what should be done, why it should be done, and where it should be performed.

Job specifications• It is a written statement of qualifications,

traits, physical and mental characteristics that an individual must possess to perform the job duties and discharge responsibilities effectively.

Job analysis information and facts

Job descriptionContains information and facts about:• Job identification• Job summary• Relation to other jobs• Supervision taken, location in the

hierarchy• Machine tools and equipments used• Materials and form used• Condition of work, location of work,

working hours, posture standing, sitting, walking, accuracy, health hazards, occupational diseases etc.

Job specificationContains information and facts about:• Education• Experience• Training• Judgment• Initiative• Physical effort• Physical skills• Responsibilities• Communication skills• Emotional characteristics• Unusual sensory demands such as

vision, smell , hearing etc.

Human Resource Planning• Human Resource is an important corporate

asset and the overall performance of the companies depends upon the way it is put to use.

• In order to realize company’s objectives, it is essential to have a human resource plan.

Human Resource Planning

• Human Resource planning (also called employment or personnel planning) is essentially the process of getting the right number of qualified people into the right job at the right time so that an organization can meet its objectives.

According to E.W. Witter,

• HRP is defined as “A process by which an organization should move from its current manpower position to its desired manpower position.

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Objective

The basic purpose of HRP is to decide what positions the organisation will have to fill and how to fill them.

Objectives of human resource planning

Forecast personnel requirements

Cope with changes

Use existing manpower productively

Promote employees in a systematic way

Importance of HRP HRP is important in a number of ways:

• Reservoir of talent

• Prepare people for future

• Expand or contract

• Cut costs

• Succession planning

Benefits of HRP

The major benefits of HR planning are:• It checks the corporate plan of the

organization• It offsets uncertainty and change• It provides scope for advancement and

development of employees through training, development etc.

• It helps to anticipate the cost of salary enhancement, better benefits etc.

• It gives an idea of the type of tests to be used and interview techniques in selection based on the level of skills, qualifications, intelligence, value etc.

• It causes the development of various sources of human resources to meet the organizational needs.

• It facilitates the control of all the functions, operations, contribution and cost of human resources.

The Process Of HRP• Forecasting the demand for human resources• Supply Forecasting (preparing

man power inventory)• Determining man power gap• Formulating HR plans

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The Process Of HRP

The HRP is a four step process: demand forecasting, supply forecasting, estimating manpower gaps and formulating HR plans. The demand for human resources is influenced by several factors

Forecasting the demand for human resources External challenges

Economic developmentsPolitical, legal, social, technological changesCompetition

Organisational decisions

Workforce factors

Forecasting technique

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External Challenges: Liberalisation, privatisation and globalisation (LPG era) have created huge demand for people in software, finance marketing, and manufacturing fields.

Organisational Decisions: Decisions such as expansion, diversification, and relocation leading to demand for people possessing requisite skills

Workforce Factors: Such as retirement, resignation, and termination etc creating manpower gaps.

The Process Of HRP

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Forecasting Techniques

HR forecasts are an attempt to find out an organisation's future demand for employees


Forecasting techniques

Expert forecasts

Trend analysis

Workforce analysis

Workload analysis

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Expert Forecasts: These are based on the judgements of those who possess good knowledge of future human resource needs

Trend Analysis: Human resource needs, as such, can be estimated by examining past trends.


An example of trend analysis2001-02 Production of Units : 5,000

2002-03 No. of Workers : 100

Ratio : 100:5000

2003-04 Estimated Production : 8,000

No. of Workers required : 8000 × = 160 1005000

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Workforce Analysis: All relevant factors in planning manpower flows in a firm such as transfers, promotions, new recruitments, retirement, resignation etc are taken into account while estimating HR needs



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Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs.


An example of workload analysisPlanned output for the year 10,000 pieces

Standard hours per piece 3 hours

Planned hours required 30,000 hours

Productive hours per person per year 1,000 hours (estimated on annual basis)

(allowing for absenteeism, turnover, idle time etc.)

No. of workers required 30

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Supply Forecasting

to find out the size and quality of personnel available within the org to various position

A) Internal labour supply: a manpower inventory in terms of the size and quality of personnel available (their age, sex, education, training, experience, job performance, etc) is usually prepared by HR departments. Several techniques are used while ascertaining the internal supply of manpower (a supply of employees to fill projected vacancies can come from within the firm or from new hires )

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Estimated internal labour supply for a given firm

The FirmSources of In flow s

Trans fe rs

Promotions

New Recruits

Recalls

Promotions

Quits

Term inations

Retirements

Deaths

Layoffs

Employees In Employees Out

Currents ta ffinglevel

Projectedou tf low sthis year

Projectedin f low sthis year

Firm’s internalsupply for thistime next year

– + =

Projected Outflow s

Current S taffingLevel

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forecasting technique

Staffing table: Shows the number of employees in each job, how they are utilised and the future employment needs for each type of job.

Marcov analysis: Uses historical information from personnel movements of the internal labour supply to predict what will happen in the future

This technique uses historical rates of promotion , transfer and turn over to estimate future availabilities in the work force .

Supply Forecasting

5-14

Marcov analysis for a hypothetical retail company


Figures in circles show the transition percentages

80%

12

20%

3

6%

2

11%

4

83%

30

11%

11

66%

63

8%

8

10%

29

72%

207

2%

6

16%

46

6%

86

74%

1066

20%

288

15%

14

2003-2004 S to re Ass t . S to re S ection D ep t. S a les ExitM a n a g e rs M a n ag e r s H eads H e ds Executives

Store Managers(n = 15)

Asst. S toreManagers(n = 36)

SectionHeads(n = 94)

DepartmentalHeads(n = 288)

SalesExecutives(n = 1440)

Forecas tedSupply 16 41 92 301 1072 353

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Skills inventory: It is a summary of the skills and abilities , experience of each

of current employees .


Supply Forecasting

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Skills inventory: an example

Name : A.K . Sen Date printed : 1-4-2004

Number : 429 D epartm ent : 41

K ey w o rds W ork ex pe rienc e

W ord D escr ip tion Activ ity F ro m To

Accounting Tax Supervision 1998 2000 Tax clerk ABC Company

and analysis

Book Keeping Ledger Supervision 2000 2002 Accoun tan t XYZ Co.

Auditing Computer Analys is 2002 2003 C hief Accounts TT Bank

reco rds O ff ice r

Education Special Qualifications M e m b e r s h ip s

Degree Major Yea r Course Date 1. AIMA

MBA Finance 1998 DBF 1996 2. ISTD

B.Com A ccoun ts 1995 Risk Management 1999 3. ICA

C o m p u te r La ng uag es P os it ion Loca t ion H obb ies

L ite racy p r e fe r e n c e cho ice

Tally French Accounting Kolkata Chess

Banking Auditing Delhi Football

Software Bangalore Boating

Employees Signature __________ HR Department________

Date _______________________ Date ________________

5-17


Replacement chart: It is a visual representation of who will replace whom

in the event of a job opening.

Supply Forecasting

5-18


Replacement chart

General ManagerV. K. Garg

A /2

Key

Names given are replacementcandidatesA. Promotable nowB. Needing developmentC. Not suitable to position1. Superior performance2. Above Average performance3. Acceptable performance4. Poor performance

P A toGeneral Manager

L. MathewsB/1

Assistant General Manager R.K. Arora A/2 B.K. Nehru B/3

Division:HR Manager

C.P. Thakur A/1

Division:Accounting &

Taxation Manager A.T. Roy C/2

Division:Planning Manager

A .N. Gupta A/1 K .P. Rao B/1

Technical Advisor N.R. Murthy B /3

Northern RegionManager

L.C. S rivatsav A/2A. Thapar C/4

C entral RegionManager

S.P. Kumar A/1 R. Pandey B/3

Southern Region Manager A. Subramanyam B/2 B.K. Menon B/1

Eastern RegionManager

R. Krishna B/3

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B) External Labour supply: External hires need to be contacted when suitable internal replacements are not available. A growing number of firms are now using computerised human resource information systems to track the qualifications of hundreds or thousands of employees. HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.


Supply Forecasting

5-20

Important barometers of labour supply


1. Net migration into and out of the area

2. Education levels of workforce

3. Demographic changes in population

4. Technological developments and shifts

5. Population Mobility

6. Demand for specific skills

7. National, regional unemployment rates

8. Actions of competing employers

9. Government policies, regulations, pressures

10. Economic Forecasts for the next few years

11. The attractiveness of an area

12. The attractiveness of an industry in a particular place

Manpower Gap Analysis

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This is used to reconcile the forecasts of labour demand and supply. This process identifies potential skill shortages or surpluses of employees, skills and jobs

Estimating manpower requirements Year

1 2 3

1. Number required at the beginning of the year2. Changes to requirements forecast during the year DEMAND3. Total requirements at the end of the year (1+2) -- - -- -- - -- - --

4. Number available at the beginning of the year5. Additions (transfers, promotions) SUPPLY6. Separations (retirement, wastage, promotions out and other losses)7. Total available at the end of year (4+5+6) - -- -- -- - -- -- -- - -- -- -8. Deficit or surplus (3-7) RECONCILIATION9. Losses of those recruited during the year OF THE ABOVE10. Additional numbers needed during the year (8+9) MANPOWER NEEDED

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Formulating HR Plans


Once supply and demand for labour is known adjustments can be made formulating requisite HR plans

A variety of HR plans Recruitment plan

Redeployment plan

Redundancy plan

Training plan

Productivity plan

Retention plan

human resource management

Business

collecting

internal labour

job analysis

forecasting

job

fill

jobs

employees