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  2. Definition of human resource  Development and implementation of systems in an organization designed to attract, develop and retain a high- performing workforce.  Policies and practices on the people or HR aspects of management: recruit, train, appraise and reward.  Functions and activities of HR Managers:-  Staff: Recruit, select and train staff. Evaluate performance and reward staff.  Plan: Set goals and standards. Develop rules and procedures.  Control: Set standards, compare performance and take corrective actions.  Organize: Give each subordinate a specific task. Delegate authority, set up channels of communication and coordinate work of subordinate.  Lead: Get subordinates to do the work, maintain morale and motivate subordinate.
  3. Objectives of human resource  Achieve organizational goals  Work culture  Team integration  Training and development  Employee motivation  Workforce empowerment  Retention  Data and compliance
  4. Objectives of human resource Achieve organizational goals  One major HRM objective is to fulfil organizational goals.  Utilizing human resource to achieve business requirements and goals is very important for an effective HRM.  Organizational objectives include workforce handling, staff requirements like hiring and onboarding, payroll management and retirement.  To succeed at organizational objective, HR requires efficient planning and execution.  Without a set parameter for goals and mission and resources, HRM is incomplete. After HR managers know resources and planning at place, achieving HRM objective is not so difficult.
  5. Objectives of human resource Work culture  When it comes to handling HRM effectively and following objectives, employee and work environment are the prior factors.  Work culture plays an important role in defining HRM and business performance.  An HR manager needs to be active while calling for strategies to foster better work culture. Automated activities like leave approvals, reimbursement request acknowledgement, etc. can help the organization.  Quick operations and empowerment to employees help in creative positive vibes at workplace.  Developing and maintaining healthy and transparent relations among team members and teams contribute to building a good example of work culture.  Adopting right solutions like employee management software can solve more than half of the job.
  6. Objectives of human resource Team integration  One of the prime roles and objectives of HRM is to make sure team co-ordinate efficiently. Easy communication is the need for teams at an enterprise. An HR here must ensure a tool to assist in making the integration easier and smooth.  Proper connect between individuals is a must to ensure productivity. To make the HR management a success, HR manager needs to search better integration portals to make data availability easier for people. Functional objectives like team integration is to produce streamlined operations and tasks.  With right tool like self-service portal can bring employees closer to HR folks.
  7. Objectives of human resource Training and development  Workforce being effective and performing are two important and basic elements to work upon for achieving basic objectives at an organization. With proper training and providing future opportunities, employees feel safe and organized.  Effective employment is highly dependent upon the training practices. Providing opportunities to employees is one great step to ensure workforce management.  There might be difficulties such as planning, scheduling, training sessions, and evaluation of each on-boards. To lessen the pain, solution like training management software can help HR manager with auto-reminders, easy scheduler, reporting, and tracking capability. The HR manager can ensure effective training practice at firm.
  8. Objectives of human resource Employee motivation  The prime objective of an HR folk is to keep things on right path. Keep distractions and negative vibes away. Employees need to be attended and kept motivated throughout and HR department needs to motivate employees as well.  HR must take employees’ views on things by involving them into weekly meets or decisions including newly recruited employee. Keep the morale always high.  Employee recognition like yearly appraisal based on their performance can too help.  Automated feedback system for performance appraisal management can keep employees motivated and ensure productivity throughout service. When the employees are satisfied and fulfilled, nothing else can prevent the organization from losing the objectives and goals.
  9. Objectives of human resource Workforce empowerment  Employee empowerment is defined as the ways in which organizations provide their employees with a certain degree of autonomy and control in their day-to-day activities.  This can include having a voice in process improvement, helping to create and manage new systems and tactics, and running smaller departments with less oversight from higher- level management.  A key principle of employee empowerment is providing employees the means for making important decisions and helping ensure those decisions are correct.  When deployed properly, this should result in heightened productivity and a better quality of employee work and work life.
  10. Objectives of human resource Data and compliance  Functional and organizational objectives also include managing company/employee data and managing compliances.  Managing payroll compliances and keeping the company out of any penalties or fine is huge challenge for HR people and managers.  Even a small error or miscalculation can owe the organization huge penalties and even may lose respect. When committing to tasks like employment and payroll, the organization needs to be careful about laws and regulations. Objective here is to keep any unwanted claims at bay for smooth functioning.  Automated software like HRMS system can help keep errors at side and leave no window for owing any penalty from Internal Revenue Service (IRS). It is the responsibility of HR to follow IRS guidelines and standards for effective employment at company and stay assured with all the legalities.
  11. Objectives of human resource Retention  Providing leadership qualities and opportunities, healthy working area, and employee retention are some prime objectives and deliverables of HR manager.  Keeping employees retained and motivated needs to be a top priority for HRM.  Other than employee hiring, onboarding, and training cycle, keeping the employees retained for long is the biggest challenge - objective of the HR people.  Due to ineffective training management or rough hiring process, it often occurs that employees leave the organization within 2 months of onboarding.  Employee experience needs to be carefully attended. Keeping employees retained can help maintain good state of employee turnover. To keep it stable, the HR manager needs to learn the best retention tips for business.
  12.  Factors of establishment of human resource in the organization  Size of organization  Unionization of workforce  Ownership of company  Philosophy of top management
  13. Factors of establishment of human resource Size of organization  A larger organization with number of employees is likely to have a separate human resource department as a small company cannot afford to employ staffs who do not bring in an income to the company.  Head of department or ‘line’ manager must ensure the workers in need, with right skills and willing to work.  Medium-sized company may establish an administration department to provide a support service to line departments – correspondence, handling, liaison with government departments, legal matters, office administration, HRM.  A separate human and specialist HR department is needed once a company grows bigger – the technical requirements of recruitment, training and record keeping become heavy for the administration department to handle. Size of the company Responsibility for HR Small company HOD/All managers Medium-sized company Administration department Large-sized company HR department Very large company HR, Training and Industrial Relations department
  14. Factors of establishment of human resource Unionization of the workforce  The company must be wise to employ specialists in the field of industrial relations and human resource management staff who are knowledgeable about labor laws  In a unionized environment, management needs specialized knowledge in the area of management of human resources.
  15. Factors of establishment of human resource Ownership of the company  Multinational companies and joint ventures with foreign partners can be expected to need a human resource department  They need to provide input and knowledge in the areas of industrial relations and labor laws which unlike production, marketing and finance - need local expertise.
  16. Factors of establishment of human resource Philosophy of top management  A company may hire human resource specialists and employ them in a special department depending on top management concerning the importance of human resources.  If the management believes the organization’s success and profits linked to the cooperation and effort of the workers, they are more likely need human resource department.  However, certain managers believe in this maxim, but refuse to invest on establishing human resource department.
  17.  Job analysis and Human Resource Strategic Planning  Recruitment and selection  Training and development  Performance appraisal  Compensation management  Industrial relations
  18. Job analysis and human resource strategic planning  A technique of studying a job to identify skills, knowledge, experience and other requirements necessary to perform the job.  Involves gathering information and analysis of information of crucial information about a job. In this analysis judgements are made on the data collected of a job - Job Description and Job Specification  Includes an assessment of the nature of the job as well as the knowledge, skills and attitude of the jobholder. In other words, Job Description provides details regarding the content of the job in a written format and Job specification is a written record of the qualities and qualifications which a Jobholder should be having for handling a job.  The job analysis is useful in developing selection, training, and performance evaluation. Job analysis is the process of studying and collecting information about the responsibilities and operations of a given job.
  19. Job analysis and human resource strategic planning  The steps of job analysis as below:  Analyzing the Job interrelationship with the organizational strategies and vision.  Determining the Uses of Job Analysis like Recruitment & Selection, Compensation, Training & Development, etc.  Identification of Job which would be analyzed  Collection of Data for Job Analysis through observation, Interviews and Questionnaire Administration.  Preparing the Job Description which is essentially a written account of the job.  Preparing the Job Specifications which should essentially provide details regarding the specific skills, qualities and qualifications which a job holder should possess.  Reviewing and updating the information ideally in every three years and the interrelationship collecting job information.
  20. Job analysis and human resource strategic planning  Human resources planning can be described as a process of ascertaining the manpower requirements of an organization which should be aligned with the strategic goals of the organization.  According to E.W. Vetter, human resource planning is “the process by which a management determines how an organization should make from its current manpower position to its desired manpower position”.  Some of the features are:  Well defined objectives of human resource planning.  Human resource plan needs of the organization.  Manpower planning in advance.  Creating Proper Work Environment.
  21. Recruitment and selection  Recruitment: the process in which people are offered selection in an organization. It is when prospective employees are searched for and are then encouraged to apply for jobs within the organization.  Specific tasks involved in the process of recruitment include:  Analyzing job requirements  Advertising the vacancy  Attracting candidates to apply for the job  Managing response  Scrutinizing applications  Shortlisting candidates  Recruitment activities are typically performed by Human Resource practitioners, either internally or externally. Internal recruitment sources are promotion, transfers, retrenched employees, contact or references, ex-employees, retired employees, etc. External recruitment sources are recruitment through advertisement, campus recruitment, recruitment by employee exchanges, recruitment by third parties, internet recruitment, unsolicited applicants, etc.
  22. Recruitment and selection  Selection: the process of identifying an individual from a pool of job applicants with the requisite qualifications and competencies to fill jobs in the organization.  This is an HR process that helps differentiate between qualified and unqualified applicants by applying various techniques.  The term ‘selection’ comes with the connotation of placing the right person in the right job. Selection is the process in which various strategies are employed to help recruiters decide which applicant is best suited for the job. Some activities include:  Screening  Eliminating unsuitable candidates  Conducting an examination (aptitude test, intelligence test, performance test, personality test, etc.)  Interviews  Checking references  Medical tests  The selection process is a largely time-consuming step in an employee’s hiring experience. HR managers must carefully identify the eligibility of every candidate for the post, being careful not to disregard important factors such as educational qualification, background, age, etc.
  23. Training and development  Training and Development in HRM is defined as a system used by an organization to improve the skills and performance of the employees.  It is an educational tool which consists of information and instructions to make existing skills sharp, introduce new concepts and knowledge to improve the employee performance.  An effective training and development initiative helps the company to enhance the skills of working manpower and improve productivity.  Need of Training and Development  The training and development activity is required when company revises its objectives and goal to adjust the changing market conditions.  Companies often endorse training and development programs to improve the performance of the employees.  The training and development is needed to set up a benchmark of performance which employees are expected to achieve in a financial year.  There is always a need of training and development efforts to teach the employee new skills such as team management, communication management and leadership behavior.  Training and development is also used to test new methods of enhancing organizational productivity.
  24. Training and development  Importance of Training and Development  In Human Resource Management (HRM) Training and development is important aspect when company wants optimum utilization of their manpower.  Training and development is a key for the succession planning of the organization as it helps in improvement of skills like team management and leadership.  Training and development activities are vital to motivate the employee and to increase their productivity.  Training and development in HRM is significant aspect to develop a team spirit in the organization.  Training and development programs are also important from the safety point of view as it teaches employee to perform job properly without any life risk.  From the organizational point of view the training and development programs are important tools to increase profitability and enhance corporate image.
  25. Performance appraisal  Performance appraisal: a systematic process in which employee performance at work is evaluated in relation to the projects on which employee has worked and his contribution to the organization. It is also known as an annual review or performance review.  A systematic appraisal system helps the managers to properly identify the performance of employees in a systematic manner and their areas of talent and areas where they are lacking.  It helps the management to place the right employees for the perfect jobs depending on their skills in particular areas.  It helps employees identify the areas in which they need to improve. The managers can also use this information to provide constructive criticism of the way employees perform their work.
  26. Compensation management  Compensation management: the process of managing, analyzing, and determining the salary, incentives, and benefits each employee receives.  Compensation managers aim to attract, retain, and engage employees by offering broad and competitive compensation plans within the company budget.  Compensation management ensures that employees get paid a fair salary based on:  Work performance  Position  Responsibilities  Experience  Job market  Company budget
  27. Industrial relations  Known as labor/employee relations. The relationship between an employer and his employees, particularly when the latter are members of a trade union.  Objectives of industrial relations are a s follows:  Handling grievance - Industrial relations aim to maintain cordial relationship between the management and the employees by resolving the disputes and setting up a mechanism to address the grievances of both the parties.  Mental revolution - It emphasizes on transforming the way of thinking of both the management and the workers. The employer must value the worker’s contribution towards the organization, and at the same time, the employees must respect the authority of the management.  Employees’ rights protection - Under industrial relations, various acts and associations were formed to safeguard the rights and interests of the employees (irrespective of their membership of the labor union).  Contract interpretation - Industrial relations emphasizes on providing proper training to the supervisors and the managers on the labour law contracts to clarify any misunderstanding.
  28. Internal factors  Internal factors (also known as organizational factors) lie within the organization and affect human resource management practices. These factors include:  Organization’s strategies - a way in which an organization, reacting to its environment, deploys its principal resources and marshals its main efforts in pursuit of its purpose.  Organizational culture - the set of assumptions, beliefs, values, and norms that are shared by an organization’s members.  Trade unions – treated as an internal factor because organization’s employees (particularly operatives) are members of the trade union.  Organization’s financial position - affects human resource management practices, particularly those having substantial financial implications. The ability to pay the wages and salaries, funds for retraining human resources, etc., are affected by an organization’s financial position and its cash flow.
  29.  External factors  External factors which lie outside an organization and affect its working, including human resource management. These factors include:  Economics factors - give shape and form to the development of economic activities and include factors like nature of economic system, general economic conditions, various economic policies, and various factors of production including human resources.  Socio-cultural factors - quite comprehensive and affect various aspects of organizational operations, including human resource management consisting of attitudes, beliefs, desires, expectations, and customs of the society.  Technological factors - consist of sum total of knowledge providing ways to do things. These include inventions and techniques which affect the ways of doing things, that is, designing, producing, and distributing products and services.  Political-legal factors - include political system, role of government in business, various government policies related to business operations, laws formulated by governments, both central and state levels.
  30. Answer all questions below. 1. Describe the importance of human resource management to the organization. [8 marks] 2. Discuss the concept of size of an organization and the philosophy of top management in the establishment of human resource department. [6 marks] 3. Elaborate effectively with two examples on each following factor affecting human resource management activities.  Organizational culture [3 marks]  Technological factors [3 marks]