Human Resource

HUMAN RESOURCE
MANAGEMENT
Prepared by,
Jubin Johny
Marian College,Kuttikkanam

“All corporate strengths are
dependent on people.”
-Adi Godrej

“ HRM is the function performed in
organizations that facilitates the most
effective use of people to achieve
organizational and individual goals.”
- Ivancevich and Glueck

The HRM process consists of planning,
attracting, developing, and retaining the
human resources (employees) of an
organization.

6
Human Resources Management
HR Planning
strategic HR planning;
job design
Attracting
employees
recruiting; selecting
Developing
employees
training & development;
performance appraisal
Retaining
employees
compensation;
maintenance; labor
relations; separation

 Human Resources Approach (1970s)
 Principles
 Employees are assets
 Policies, programmes and practices - help in work and
personal development
 Conducive environment

Importance of
“Human Resource Management”

 Staff is the most
important resource of
an organization.
 Human resource is
the key ingredient to
success.
 “Human resource”
creates organizational
accomplishments and
innovations.

Recruitment/Recruitment/
RecruitmentRecruitment
Recruitment/Recruitment/
RecruitmentRecruitment
Training/Training/
DevelopmentDevelopment
Training/Training/
Compensation &Compensation &
BenefitsBenefits
Compensation &Compensation &
BenefitsBenefits
PerformancePerformance
ManagementManagement
PerformancePerformance
ManagementManagement
Human ResourceHuman Resource
PlanningPlanning
Human ResourceHuman Resource
PlanningPlanning
OrientationOrientationOrientationOrientationSelectionSelectionSelectionSelection
CareerCareer
CareerCareer
HRMHRM

 Individuals differ from one
another.
 Customization of
stimulation and
motivation.
 Demanding personnel.

Functions of HRM
Managerial
&
Operational

1. Understanding and relating to employees as
individuals, thus identifying individual needs
and career goals.
2. Developing positive interactions between
workers, to ensure collated and constructive
enterprise productivity and development of a
uniform organizational culture.

3. Identify areas that suffer lack of knowledge
and insufficient training, and accordingly
provide remedial measures in the form of
workshops and seminars.
4. Generate a rostrum for all employees to
express their goals and provide the necessary
resources to accomplish professional and
personal agendas, essentially in that order.

5. Innovate new operating practices to
minimize risk and generate an overall sense of
belonging and accountability.
6. Recruiting the required workforce and
making provisions for expressed and promised
payroll and benefits.

7. Implementing resource strategies to
subsequently create and sustain competitive
advantage.
8. Empowerment of the organization, to
successfully meet strategic goals by managing
staff effectively.

9. The human resource department also maintains
an open demeanor to employee grievances.
Employees are free to approach the human
resource team for any conceived query or any
form of on-the-job stress that is bothering them.
10. Performance of employees is also actively
evaluated on a regular basis. These are checks
conducted by the HR to verify and thereby
confirm the validity of the employees actual
performance matching the expected performance.

11. Promotions, transfers or expulsion of
services provided by the employee are some
duties that are enforced by the human
resource department. Promotions are
conducted and are predominantly based on the
overall performance of the individual,
accompanied by the span or tenure he has
served the organization.

12. Looks at the possibilities of the employee
from one job to another, maintaining the
hierarchy in the company and considering the
stability of post and the salary obtained over a
period of time.

1. Recruitment Management
2. Workforce Planning
3. Induction Management
4. Training Management
5. Performance Management

6. Compensation & Benefits
7. Attendance Management
8.Leave Management
9.Benefits Management
10. Overtime Management

11. Pay slip Distribution
12. Timesheet Management
13. Employee Information/Skill
management
14. Employee Survey
15. Exit Interviews & Process
16. Health & Safety

These activities may vary from
one workplace to another. Large
workplaces are more likely to employ
at least one HRM/personnel. Large
org. might divide HRM activities
among several managers; one
specialist for recruitment and
selection, and one for employee
trainings and development.

HRM functions and activities are
the heart of the organization. Getting
the right people to do the right job and
in the right places will go a long way
to ensure the overall achievement of
the goals of the organization.
Therefore, the functions must be well
towards excellence.

The Role of Human Resources Department
As a specialistAs a specialist
As a facilitatorAs a facilitator
As a change agentAs a change agent
As a controllerAs a controller

 Value of Human Resource
 Competitive advantage
 Human Resource
Accounting – It is
measurement of the cost and
value of people for an
organization

Role and Responsibilities
of a HR Executive in an
Organization

 Understanding the manpower requirement
 Drafting the job description
 Sourcing candidates
 Screening candidates
 Encouraging the employees to provide reference
for better prospectus

Conduct technical interview
Communicating the employment status to
the candidates
Maintain and update the data base of the
candidates
Back ground verification of selected
candidates

II. INDUCTION AND ON-
BOARDING

 Issuing the appointment letter with brief working
agreement.
 Describe the culture and policies followed by the
company.
 Filing the relevant document of the new joiner as
required.
 Introduce the team and management to the joiner.
 Explaining the mode of communication
 Coordinating with the IT team to get his Email ID
made.

III. HR POLICIES AND HR
MANUAL

Drafting HR manual for the company.
Making or amending the existing policies.

IV. ATTENDANCE AND LEAVE
RECORDS

Keeping a track of attendance of the
employees
Filing leave forms and keep the track of
leave taken
Seeing to that there is not much absenteeism
on any given day
 take correct decisions on irregular
employees

Helping the seniors do performance
appraisal in a better way by adopting better
appraisal practices.

Keeping a track on employee turnover
and exist.
Taking initiatives to engage the staff to
their work.
Taking the surveys in order to understand
their engagement level and accordingly
take actions.
Planning events or activities with the
support of top level management.

Handling the staff so that people are not
dissatisfied with each other.
Handling cross culture things
See to it that there is no grouping or
dissatisfied person
Other employee related issues.

Leaves –as per the act that is applicable.
Minimum salary PF/ESIC/Medical
deductions as applicable other compliances.

Conduct exit interview of the candidate who
is resigning.
Trying to get feedback for company and
implement corrective measures.
Helping the person to be relieved properly
Issuing relieving letter and letter of
experience.
Doing the full and final settlement of the
person.

Designing the salary structure for
employees.
Helping the employees to save tax.
Calculating the gratuity, handling PF
accounts.

XI. EMPLOYEE MOTIVATION
AND T&D / L&D

Plan training sessions.
Hire trainers with specific skills.
Send motivational mails to employees.

Challenges to HR
Professionals

 Worker productivity
 Quality improvement
 The changing attitudes of workforce
 The impact of the government
 Quality of work-life
 Technology and Training

HUMAN RESOURCE
MANAGEMENT AND OTHER
ORGANIZATIONAL
FUNCTIONS

Product & HRProduct & HR
Production & HRProduction & HR
Marketing & HRMarketing & HR
Management Techniques & HRManagement Techniques & HR
Organization structure & HROrganization structure & HR

 Planning for the future personnel needs of an
organization,
 taking into account both internal activities and
factors in the external environment
66
HR Planning

 Job Design
 usually done prior to recruitment
 the process of describing the work that needs to be
done by an employee and
 specifying the requirements needed in fulfilling
the job
67
HR Planning

 Recruitment
 development of a pool of job candidates in
accordance with a human resource plan
 its purpose is to provide mgmt. with enough
candidates from which they can select qualified
employees
 internal versus external
68
Attracting Employees

 Selection
 the mutual process whereby the organization
decides to make a job offer and the candidate
decides whether or not to accept it.
69
Attracting Employees

70
Steps in selectionSteps in selection
Job Application
Initial Interview
Testing
Background Investigation
In-depth Interview
Physical Exam
Job Offer

 Orientation
 a program designed to help employees fit
smoothly into an organization
71
Developing Employees

 Training
 a process designed to maintain or improve current
employee performance
 Development
 a process designed to develop skills and attitudes
necessary for future work
72

Difference between Training
and Developmental Programs

 Training is for the current improvement in
the job while developmental program is for
improving the skill which will be used in the
future.
 Both managers and non-managers receive
help from training and developmental program
but mostly non-managers are concerned with
training while the managers are concerned
with developmental programs.

Why Training and Developmental
Program?

 To improve three types of
skills
1) Technical skills
2) Interpersonal skills
3) Problem solving skills

Training Methods
1) Most training takes place on the job because
this approach is simple and inexpensive.
2) Some skill training is too complex to learn on
the job. in such cases it should take place
outside the work setting.

 Performance Appraisal
 process of providing feedback to subordinates
regarding their performance on the job.
78

TYPES OF PERFORMANCE
APPRAISAL

 Informal Performance Appraisal:
“The process of continually feeding back to
subordinates information regarding their work
performance”
 Formal Performance Appraisal:
“A formalized appraisal process for rating work
performance, identifying deserving raises or
promotions, and identifying those in need of further
training”.

GraphicGraphic
RatingRating
ScaleScale
WrittenWritten
EssaysEssays
CriticalCritical
IncidentsIncidents
360 Degree360 Degree
FeedbackFeedback
MultipersonMultiperson
ComparisonsComparisons
BARSBARS
BehavioralBehavioral
AnchoredAnchored
Rating ScalesRating Scales
Performance
Appraisal
Methods

 Compensation
The adequate and
equitable
remuneration of
personnel for their
contribution in the
achievement of
organization
objectives.
82
Retaining Employees

Compensation and benefits
 Benefits of a Fair, Effective, and Appropriate
Compensation System
 Helps attract and retain high-performance
employees
 Impacts on the strategic performance of the firm
 Types of Compensation
 Base wage or salary
 Wage and salary add-ons
 Incentive payments
 Skill-based pay

Factors That Influence Compensation and Benefits
Level of
Compensation
and Benefits
Employee’s Tenure
and Performance
Size of
Company
Kind of
Job Performed
Company
Profitability
Kind of
Business
Geographical
Location
Unionization
Management
Philosophy
Labour- or
Capital-Intensive
How long has employee
been with company and
how has he or she performed?
Does job require
high levels of skills?
What industry is job in?
Is business unionized?
Is business labour- or
capital-intensive?
How large is the
company?
How profitable is the
company?
Where is organization
located?
What is management’s
philosophy toward pay?

 Labor relations
Entails recognizing the validity of unions, negotiating
for the collective bargaining agreement, and being
able to handle strikes and other forms of mass action.
85
Retaining Employees

Maintenance
 the process of providing the
following services to employees:
 career counseling
 safety & health programs
 Also involves the minimization
of absenteeism and tardiness
86
Retaining Employees

Separation
 the process of re integrating employees to
society; entails the following:
 employees should be terminated for a just
cause
 a retirement plan must be provided for old
employees as an aid when they leave the
company.
87
Retaining Employees

 To maintain
 To forecast
 To optimize
 To utilize

HRP at different planning
levels

 Corporate – level planning
 Intermediate – level planning
 Operations planning
 Planning short-term activities

Organizational plans
and objectives
Organizational plans
and objectives
Identify future human
resource requirements
Identify future human
resource requirements
Compare with the
current HR inventory
Compare with the
current HR inventory
Determine the redundant
numbers
Determine the redundant
numbers
Determine the numbers,
levels & criticality of vacancies
Determine the numbers,
levels & criticality of vacancies
Analyze the cost & time involved
in managing the demand
Analyze the cost & time involved
in managing the demand
Analyze the cost & time
required for managing surplus
Analyze the cost & time
required for managing surplus
RetrenchRetrench
Choose the resources &
methods of recruitment
Choose the resources &
methods of recruitment
RedeployRedeploy
HUMAN
RESOURCE
PLANNING MODEL
HUMAN
RESOURCE
PLANNING MODEL

 Job analysis
 HR inventory
 Generate a fairly accurate picture
existing situation
Assessing current human resources and
making inventory

 Compare future needs with current availability
 Analyze companies change plan
 Forecasting methods used are Time Series Analysis,
Regression Analysis and Productivity Ratios
Forecasting

GROWING IMPORTANCE OF
HR PLANNING

1. Right Number
2. Right Time
3. Right Skills
4. Right Case
The 4
R’s

Summary
HRM is a tool that helps managers to plan,
recruit, select, train, develop, remunerate,
motivate and make maximum utilization of
human and non human resources for the
organization and society at large.

“One machine can do the work of fifty
ordinary men. But, No machine can do the
work of one extraordinary man.”
- Elbert
Hubbard

Human Resource

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