Human Resource
Management System &
Function
prepared By
Faheem Ahmad EMBA-F14-19
faheemkccl@gmail.com
Superior University Lahore MBA(Executive)

Great Quotation
“The greatest tragedy in America is not the destruction
of our natural resources, though that tragedy is great.
The truly great tragedy is the destruction of our human
resources by our failure to fully utilize our abilities, which
means that most men and women go to their graves
with their music still in them.”
Oliver Wendell Holmes
Oliver Wendell Holmes, Sr. was an
American physician, poet, professor,
lecturer, and author.

Session Objectives
Introduction of HRM
Definition of HRM
HRM functions
To understand …
Recruitment &Selection process
Training& Development process
Performance Appraisal process
Pay Roll
Compensation &Benefits
To understand the Main HR Roles & Responsibilities

Introduction
Human resource management is a process of bringing people
and organization together so that the goals of each are met .it
tries to secure the best from people by winning their whole
hearted cooperation .
In short, it defined as the art of procuring ,developing and
maintaining competent workforce to achieve the goals of an
organization in an effective and efficient manner.

Definition Of Human Resource
Management (HRM)
 Human resource management (HRM, or simply HR) is a function
in organizations designed to maximize employee performance
in service of their employer's strategic objectives. HR is primarily
concerned with how people are managed within
organizations, focusing on policies and systems.

Why name human resource
management?
 Human: refer to the skilled workforce in the organization.
 Resource: refer to limited availability or scarce.
 Management: refer to maximize or proper utilization and
make best use of limited and a scarce resource.

What is HRM?
 Human Resource Management (HRM) is the function within an
organization that focuses on recruitment, management , and
providing direction for the people who work in the organization.
 It deals with issues related to people such as compensation, hiring,
performance management, organization development, safety,
wellness, benefits, employee motivation, communication,
administration, and training.

What do HR Managers Do?
Human Resource professionals create systems for managing employees
that support an organization’s overall strategy.
To accomplish this they
Analyze and design jobs.
Forecast supply and demand for workers.
Ensure legal compliance.
Implement affirmative action plans.
Recruit and select candidates to fill open positions.
 Train and develop employees to meet current and future job demands

 Manage employee performance and career progress.
 Develop basic pay structures.
 Create incentive plans.
 Administer benefit programs.
 Assure employees safety and health.
 Retain employees.
 Improve employee morale.
 Reduce turnover and carry out disciplinary actions, all while applying
constantly evolving technology.

HRM Functions
 There are seven main functions of HR . .
 Manpower planning
 Recruitment and selection of employees
 Employee education, training and development
 Compensation &Benefits (Employee motivation)
 Performance Appraisal (Employee evaluation)
 Industrial relations
 Provision of employee services (safety &Health Benefit)

What is Manpower Planning
Manpower Planning which is also called as Human
Resource Planning consists of putting right number of
people, right kind of people at the right place, right
time, doing the right things for which they are suited for
the achievement of goals of the organization. Human
Resource Planning has got an important place in the
arena of industrialization. Human Resource Planning has
to be a systems approach and is carried out in a set
procedure.

The procedure is as follows:
 Analyzing the current manpower inventory
 Making future manpower forecasts
 Developing employment programmes
 Design training programmes

Steps in Manpower Planning
 Analyzing the current manpower inventory- Before a manager makes forecast of future
manpower, the current manpower status has to be analyzed. For this the following things have
to be noted-
 Type of organization
 Number of departments
 Number and quantity of such departments
 Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting.
 Making future manpower forecasts-
Expert Forecasts:
Trend Analysis:
Work Load Analysis:
Work Force Analysis:

Other Methods
 Developing employment programmes- Once the current inventory is
compared with future forecasts, the employment programmes can be framed
and developed accordingly, which will include recruitment, selection
procedures and placement plans.
 Design training programmes- These will be based upon extent of diversification,
expansion plans, development programmes, etc. Training programmes
depend upon the extent of improvement in technology and advancement to
take place. It is also done to improve upon the skills, capabilities, knowledge of
the workers.

Importance of Manpower Planning
 It is a double –edged weapon . if used properly ,it leads to
the maximum utilization of human resources , reduce
excessive labor turnover and high absenteeism , improve
productivity and aid in achieving the objectives of an
organization.

Needs Of Manpower Planning
 Manpower Planning is a two-phased process because manpower planning not only analyses
the current human resources but also makes manpower forecasts and thereby draw
employment programmes. Manpower Planning is advantageous to firm in following manner:
 Shortages and surpluses can be identified.
 All the recruitment and selection programmes are based on manpower planning.
 It also helps to reduce the labor cost as excess staff can be identified and thereby
overstaffing can be avoided.
 It also helps to identify the available talents in a concern and accordingly training
programmes can be chalked out to develop those talents.
 It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.
 It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.

Recruitment &Selection
 Recruitment is a process of identifying and hiring best-qualified
candidate (from within or outside of an organization) for a job
vacancy, in a most timely and cost effective manner.
 The process begins when applications are brought in and ends
when the same is finished. The result is a pool of applicants, from
where the appropriate candidate can be selected.

Recruitment cycle
Identify
Vacancy
Prepare job
description
Advertising
The
Vacancy
Managing
the
Response
Short
Listing
Arrange
interview
Conduct
Interview
&Decision
making

Source of Recruitment
Internal source ..
 Transfer
 Promotion
 Upgrading
 Demotion
 Retired employee
 Retrenched employee
 Employee reference

External source
 Advertisement (print media ,mass media)
 Educational institutions
 Placement agencies/outsourcing
 Job portals (Naukari.com,Rooze.pk)
 Employment exchange
 Labor contractors
 Unsolicited applicant
 Employment at factory gate

Selection involves the series of steps by which the candidates are
screened for choosing the most suitable persons for vacant posts.

Training & Development
 Training is a process of learning a sequence of programmed behavior.
 It is a act of increasing the knowledge and skills of an employees, for
performing a particular job.
 Newly recruited employees require training so as to perform their task
effectively.
 Instruction , coaching, guidance helps them to handle jobs completely,
without any wastage .
 Development is a long -term educational process utilizing a systematic and
organized procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose.

Performance Appraisal
 Performance appraisal may be defined as a structured formal
interaction between a subordinate and supervisor, that usually
takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as
well as opportunities for improvement and skills development.
 Its rates the employees in terms of their performance
 It is necessary to understand each employee’s abilities,
competencies and relative merit and worth for the organization.
 It may be half yearly or yearly report .

360 degree performance appraisal
 The 360 degree appraisal is the appraisal given by peers,
subordinates ,workers , head of the department etc, that means
the appraisal given from all the people working in the
organization .
 In short The half yearly or yearly report of work schedule goes
from company to head quarter of all the workers performance
is the appraisal it contains all the promotion ,demotion, and
other activities related to the performance.

Pay Roll
 The term 'payroll' encompasses every employee of a company who receives
a regular wage or salary or other compensation. Payroll refers to the
administration of employees' salaries, wages, bonuses, net pay, and
deductions.
 It consist of the employee ID, employee name, date of joining, daily
attendance record, basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays, vacations and sickness, value of
meals and lodging etc. There are some deductions such as PF, taxes, loan
installments or advances taken by employee.

Figure: Components of Monthly Payroll
Figure: Components of Annual Payroll

Compensation & Benefits
 Compensation is the remuneration received by an employee
in return for their contribution to the organization.
 It is an organized practice that involves balancing the work-
employee relation by providing monetary and non-monetary
benefits to employees.
 Compensation is an integral part of human resource
management which helps in motivating the employees and
improving organizational effectiveness.

Components of Compensation System
Pay
Structure
Salary
Surveys
Job
Analysis

Two types of compensation given by any Organization
 Direct compensation
 Indirect compensation

Employees Benefits
 Benefits in kind (also called fringe benefits, perquisites, perks) are
various non-wage compensations provided to employees in addition to
their normal wage or salaries, Where an employee exchanges (cash)
wages for some other form of benefit, this is generally referred to as a
'salary sacrifice' arrangement..
 Some of these benefits are:
 Housing (employer-provided or employer-paid),
 Group insurance (health ,life ,etc.)
 Disability income & protection,
 Retirement Benefits

 Reimbursement,
 Seek leave, Vacation (paid and non-paid),
 Social security , profit sharing ,funding of education, and other specialized
benefits.
 Perk-refer to those benefits of a more discretionary nature. Often, perks are
given to employees who are doing notably well and/or have seniority.
 Common perks are
 Take –home vehicles, hotel stays
 Free refreshments, leisure activities on work time (golf etc.), stationary
allowances

HR Roles and Responsibilities in changing
Environment
The HR Roles and Responsibilities needs to react to this
basic request by the organization to keep the level of the
satisfaction.
 Nowadays, the HRM has to deliver even more. The HR
Roles and Responsibilities have to take the high level
recognition of the organization and they need to be
adjusted to make a full fit.
The HR Roles have to be adjusted to:
keep HRM Function focused on tracking and
implementing new trends in the industry.

 keep HRM Function focused on helping the line management to
implement improvements.
 keep HRM Function focused on operational excellence.
 keep HRM Function responsible for developing the Human Capital
potential in the organization.

Thank You