HUMAN RESOURCE MANAGEMENT

UNIT 1

Human Resource Management (HRM) comprises of planning, organizing, directing, controlling for procurement(recruitment and staffing), development, compensating and maintenance to achieve individual objectives, organizational objectives and societal objectives.

HRM is the process of managing people in organizations in a structured and thorough manner.

HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training

the purpose of HRM is to maximize the productivity of an organization by optimizing theeffectiveness of its employees.

Human Resource Management(HRM), is a process of bringing people and organization together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resources in an organization. It tries to secure the best from people by winning the whole hearted cooperation. HRM may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in a effective and efficient manner.

FUNCTIONS OF HRM (NOTES)

SCOPE

Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage! The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally.

Human Resource Management is not just limited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Considering the intricacies involved, the scope of HRM is widening with every passing day. It covers but is not limited to HR planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say that it’s about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals.

he scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we may classify the same under following heads:

HRM in Personnel Management: This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training

and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.

It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions.

HRM in Employee Welfare: This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.

It also relates to supervision, employee counseling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes.

The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

Importance of HRMSignificance of HRM can be discussed at four levels which are as follows:

1. Corporate LevelFor an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM helps enterprise in the following ways.

Hiring required skill set and retaining them through effective human resource planning, recruitment, selection, placement, orientation and promotion policies.

Development of employees by enhancing necessary skills and right attitude among employees through training, development, performance appraisals etc.

HRM also takes care of optimum utilization of available human resource. HRM also ensures that organization has a competent team and dedicated

employees in future.

2. Significance at Professional Levela. HRM also leads to improved quality of work life, it enables effective team work among employees by providing healthy working environment. It also contributes to professional growth in various ways such as

b. By providing opportunities for personal development of an employeeEnabling healthy relationships among teams and allocating work properly to employees as well as teams.

3. Significance at Social Levela. HRM plays important role in the society, it helps labour to live with pride and dignity by providing employment which in turn gives them social and psychological satisfaction.

b. HRM also maintains balance between open jobs and job seekers.

4. Significance at National LevelHRM plays a very significant role in the development of nation. Efficient and committed human resource leads to effective exploitation and utilization of a nations natural, physical and financial resources. Skilled and developed human resource ensures the development of that country. If people are underdeveloped then that country will be underdeveloped. Effective HRM enhances economic growth which in turn leads to higher standard of living and maximum employment.ROLE OF HR MANGER(NOTES)

UNIT 2HUMAN RESOURCE PLANNING

DEFINITION OF HRP(4M NOTES)Human resources planning is a process that identifies current and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning.The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.PROCESS OF HRP (4M NOTES)

PERSONNEL POLICY Person- individual human being Personnel- people employed in an organization/staff of an organization.

Program- blend of HR objectives, policies and procedures( overall plan for HR) Policy- a plan of action. A policy statement contains general philosophy and

principles regarding concern matter. Guide for action (frame work) Procedure- chronological sequence of steps in order to accomplish means of policy.

Methods to carry out policy. Personnel policy- a policy which deals with directives ans guidelines regarding HR of

an organization.

Personnel policy is designed to providemanagerial and supervisory staff with uniformknowledge in order to assure equitable andconsistent application of the policies. It is theresponsibility of each manager and supervisor toadminister these policies consistently andimpartially to promote the equitable treatment of employees”.

Importance of Personnel Policy To bring uniformity & continuity in work Standard of Performance Stability in actions Loyalty among workers Provides guideline for HR planning Ensures discipline Compliance with government legislation

Kinds of Personnel Policy1.Idealistic Personnel Policy2.Realistic Personnel Policy3.Flexible Personnel Policy4.Inflexible Personnel Policy5.General Personnel Policy6.Specific Personnel Policy

Personnel Policy FormulationPolicies are not created in vacuum. There are five principle sources to determine the contents and meaning of policies.1.Past practices in organization2.Prevailing practices among other companies of samenature in a region.3.Attitude & philosophy of board of directors and topmanagement.4.Attitude & philosophy of middle & lower management.5.Day to day problems faced by organization

MANPOWER INVENTORY

The term inventory is often used in relation to counting of physical objects like raw materials, work in progress, finished products etc. It may also include the qualities and the abilities of persons working in a company. In that case an inventory is called a manpower inventory the items that are to be included in it are hard to pin down.

It is because it involves the classification of characteristics of personnel in an organization, in addition to counting their number. Both present and future characteristics of personnel are recorded in the manpower inventory.

The first step in manpower inventory is to decide who should form a part of it. Whether inventory should be in relation to only executives or it should cover all persons in the organization.

Generally it is prepared for persons working on significant posts. For example, the executives and some persons from the working staff are covered in it.

While taking persons from the operative staff only those persons are included in the inventory who have the potential of taking up higher responsibility tasks.

After determining the persons to be included in manpower inventory, information regarding them is collected in considerable detail. Some information is collected from records while some may be collected through meetings or talks with the concerned people.

The factual information such as age, sex, experience, education, wealth, health, etc. is noted from the records. The brief interview with a person helps in understanding his caliber, mind-set, aspirations, etc.

A summary statement of information is prepared about each person and is kept ready for consultation. This information helps management to find out the suitable person in an organization for taking up senior position in future.

The next step is to pass on to talent catalogue. The present and future capabilities of persons are assessed. Some scale is prepared for the appraisal of persons.Besides appraisal tests, remarks about persons are also given. The remarks may relate to their talent, choice taking ability, training required, etc. In this way promotions are also dealt with easily as manpower inventory says much about job specialization of the concerned persons.

RECRUITMENT Process of finding and attracting capable applicants for employment Represents the first contact that a company makes with potential employees Well-planned and well-managed recruiting effort will result in high quality

applicants, whereas, a haphazard and piecemeal efforts will result in mediocre ones. The stages of the recruitment process include: job analysis and developing a person

specification; the sourcing of candidates by networking, advertising, or other search methods; matching candidates to job requirements and screening individuals using testing (skills or personality assessment); assessment of candidates' motivations and their fit with organisational requirements by interviewing and other assessment techniques. The recruitment process also includes the making and finalising of job offers and the induction and onboarding of new employees.

Internal factors + external factors = sources of recruitment

Internal factors- Recruitment Policy (Internal Hiring or External Hiring?) Human Resource Planning (Planning of resources required) Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans

External factors- Demand and Supply (Specific Skills) Unemployment Rate (Area-wise) Labour Market Conditions Political and Legal Environment (Reservations, Labour laws) Image

SELECTION

Process of picking up individuals (out of the pool of job applicants)with requisite qualifications and competence to fill jobs in theorganization

Purpose of selection : To find out which job applicant will besuccessful, if hired. Managers can use a number of selection devices to reduce acceptand reject errors. Best-known devices include-analysis of the applicant's completed application form,-

written and performance-simulation tests, interviews,-background investigations,-a physical examination

Basis Recruitment Selection

Meaning It is an activity of establishing contact between employers and applicants.

It is a process of picking up more competent and suitable employees.

Objective It encourages large number of Candidates for a job.

It attempts at rejecting unsuitable candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross over many hurdles.

Many hurdles have to be crossed.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Consuming

Less time is required. More time is required.