HRM involves evaluating an organization's human resource needs, recruiting and selecting employees to fill those needs, and motivating employees to help achieve organizational goals. The key functions of HRM include staffing through recruitment and selection, training and developing employees, motivating performance, and maintaining employees through performance appraisal and compensation. An effective HRM system is important for maximizing employee productivity and retention, and provides a competitive advantage.

1. CHAPTER 12

2. Topics to be covered…..
• What HRM is?
• Why HRM is important?
• Human Resource Management Cycle
• Knowledge worker concept
• Function of HRM
– Staffing
– Training and Development
– Motivation
– Miantenance

3. Human Resource Management
• Human Resource Management (HRM) is the process of
evaluating an organization’s human resource needs, finding
people to fill those needs, and getting the best work from each
employee by providing the right incentives and job environment
--- with the overall aim of helping achieve organizational goals.
• HRM is concerned with the most effective and efficient use of
human resource. It deals with organization’s staffing levels,
motivating employees, managing employee relations and
employee service.
• HRM is a strategic approach to manage people at work.

4. Importance of HRM ….
• Our people are our most important resource.
• Strategic Tool.
• It increase productivity.
• It enhances group learning.
• It reduce staff turnover. (Service Type Businesses e.g. Banks)
• It encourages initiatives.
• Important source of competitive advantage.

5. Human Resource Cycle ….
Selection Performance
Appraisal
Rewards
Training
and
Development

6. • HRM is a bridge between employee and employer.
• Give something and get something concept.
• When your organization has about 100 employees, then HRM
becomes necessary.
• HRM focuses on personality dominance to work dominance.

7. Knowledge Worker Concept….
• An employee who have the required knowledge and skills to
perform a specific task or job.

8. Functions of HRM
HRM
Staffing
Training
&
Development
Motivation Maintenance

9. Staffing
1. Human Resource Planning (HRP)
2. Recruitment
3. Selection

10. 1. Human Resource Planning (HRP)
• Right person for right job, in the right time, at right place.
• Current Human Resource Inventory (HRI)
• Future Needs
• Replacement Charts/Succession Planning (Planning for persons who
are going to be replaced)
• Demand and Supply of Human Resource
• Job Analysis
– Job Description. (Focus on Job)
– Job Specification. (SKA)
– Job Evaluation. (Whether you are doing rightly.)

11. 2. Recruitment
• Locating, Identifying and Attracting capable applicants.
• It is used to hire people.
• Recruitee Future Employee
• Candidates (10) Recruitee (5) Employee (1)
• Sources of Recruitment
– Internal Sources (Promotion, Employee referrals)
– External Sources (Internet, News Papers, Colleges n Universities, Recruitment Agencies
etc)
• Recruitment Constraints
• De-recruitment

12. 3. Selection
1 •Short Listing/Initial Interview
2 •Written Test
3 •Panel Interview/Employment Interview
4 •Background Checking
5 •Appointment Letter
6 •Medical Examination

13. Training and Development
1. Socialization/Orientation .
2. Training
3. Development
4. Career Development

14. • Awareness about company
and its environment.
• Organization tries to
influence the new hire to
adapt to and adapt the way
they do things around the
workplace using formal and
informal processes.
• For example language,
physical appearance or greet
the customers.
• Socialization must be there
otherwise employees will left.
Socialization Process

15. 2.
• It more focused on your present job.
• Training of employees takes place after orientation takes place.
Training is the process of enhancing the skills, capabilities and
knowledge of employees for doing a particular job. Training
process moulds the thinking of employees and leads to quality
performance of employees. It is continuous and never ending in
nature.
• How to work, How to sit n stand, How to greet customers etc.
• Training may be given to new employees as well as employees
with no good performance appraisal.
• Indoor training and outdoor training.
• On the job training and off the job training.

16. 3.
• It is more focused on future positions.
• Companies often realize that investing in the growth and
development of key employees helps improve the overall
competence of the organization. When an employee learns skills
and responsibilities, he becomes better equipped to take on
higher-level work and leadership roles in the future. Mentoring
programs, manager-training programs and departmental
workshops are examples of employee-development activities.
Employee development typically works best when human
resources promotes and supports a culture that rewards
employees who deliver results and learn new skills.

17. 4.
• Focus on employee career.
• From date of joining to Superannuation (Retirement)
• Step by step promotion in service.
• Career development programs place more emphasis on opportunities for
employees to improve themselves to reach personal career goals. In a 2009
study, Hay Group Insight showed that employees felt much more engaged and
committed to employers who offered chances for personal growth and
development. In essence, companies that offer development opportunities
place a higher emphasis on employee retention. The general belief is that if
you can motivate employees to improve their knowledge and skills, the
company ultimately benefits.

18. Motivation
1. Employee Benefits
2. Employee development program
3. Performance Reward System

19. 1.
• Benefits Planning
– Medical Facilities
– Residence
– Leaves
– Transportation
• Incentives
– Cash Incentives
– Haj Incentives
• For efficient as well as for
average performance.
• If peoples are working well
motivation is there.
• If peoples are frustrated, then
de-motivation is there, and
this creates a big hurdle in
performance.

20. 2.
• Only for above average and efficient performance.
• How employees are developed?
– Special Trainings.
– Further Education.
– Participation in Decision Making.
– Free Industry and Foreign Tours.
– Promotions.

21. 3.
• Rewards are what employees receive for performing well. Sometimes
these rewards come from the organisation in the form of money,
recognition and promotions. Rewards can also consist of feelings from
having performed well in work. It can be said that rewards are very
powerful motivators of performance.
• Organisations need various types of performance from their
employees. They need them to become active members of the
organisation, they need them to do their job as it has been defined and
they need their employees to improve their performance. In order to
achieve improvements in performance different reward systems must
be applied.
• As much better performance you will show, so better reward you will
get.
• Financial Vs. Non- Financial Rewards
• Intrinsic Vs. Extrinsic Rewards

22. Maintenance
1. Performance Appraisal
2. Compensation
3. Industrial relations
4. Rewards

23. 1.
• A performance appraisal is a review and discussion of an
employee's performance of assigned duties and responsibilities.
The appraisal is based on results obtained by the employee in
his/her job, not on the employee's personality characteristics.
• Whether you are performing good or not.
• Good Performance Rewards, Incentives, Promotions
• Average or Bad Performance Training
• Appraisal Process
Appraiser
Appraisee

24. 2.
• Wages, Salary &
Payrolls, Bonuses ,
Incentives
Benefits
Mandatory
(Necessary as per law)
** Salary
** Suit able working
conditions and
environment.
Optional
(Optional as per
Company’s
Management)
** Residence
** Transportation
** Mobile
** Lunch Facility

25. 3.
• Labor Laws
• Social Security (PESSI)
• EOBI
• Insurance
• Health issues.
• Child Labor.

26. 4.
• A thing given in recognition of service, effort, or achievement.
• Financial Rewards
– Piece rate
– Wages
– Salaries
– Bonus Schemes
– Profit related Pay
– Fringe Benefits
• Non-Financial Rewards
– Job Enrichment
– Job Enlargement
– Communication
– Empowerment
– Quality Circles
– Training
– Autonomous Work Groups