Human resource management

1. Human Resource Management
“Human resource management is the process of attracting, holding and motivating people involving all
managers”-line and staff.
“Human resource management is a function concerned with developing and utilising the manpower resourcesof
the business to the optimum extent in achieving the objective of that business.”
Objectives of HRM-
1. To achieve an effective utilisation of human resources in the achievement of organisational goals.
2. To establish and maintain an adequate organisational structure and a desirable working relationship among all
members of the organisation by dividing the organising task into functions,positions,jobs and by defining
clearly the responsibility,accountability and authority for each jobs and its relation with other jobs in the
organisation.
3. 3. To secure the integration of the individual in such a manner that the employee feel a sense of
involvement,commitment and loyalty towards it.In the absence of such an integration friction may develop in
an organisation which may lead to its total failure.
4. To generate maximum individual or group development within an organisation by offering opportunities for
advancement to employees .
5. To recognize and satisfy individual needs and group goals .

2. Functions of Human Resource Management
The general and specific functions
Personnel Administration &Industrial relations functions
Function classified on the Basis of Capacities
Function according to the Degree of Authority

3. Planning
Determination
of short to
long range
plans to
accomplish
organisation
objectives
Inputs
Human(man
agement &
men)
Economic
(Materials
,Machinery
and Money)
Resources
interacting
with
Environmen
-
tal changes
Organisin
g
Developme
n-t of the
organisatio
n structure
according
to
predetermi-
ned plans
Directing
Stimulation
and
motivation
of
organisatio
n personnel
according
to
predetermin
ed plans
Controlling
Assurance
that directed
action is
taking place
according to
predetermine
d plans
Outputs
goods and
services
needed by
the
organisation
s customers

4. Operative function
The Procurement function
The Development function
The Compensating function
Integration Function
The maintenance function

5. Human Resource Planning
Need for Human Resource Planning
1.To carry on its work each organisation needs HR with the necessary qualification, skills, knowledgfe, work, experience and
aptitude for work. these are provided through effective manpower planning.
2.Since a large no. of persons have to be replaced who have grown old or who retire, die or become incapacitated because of
physical or mental ailments,there is constant need for replacing such human resource otherwise the work would suffer.
3.HR planning is essential because ofd frequent labour turnover which is unavoidable and even beneficial sometimes.
4.In order to meet the needs of expansion prpgrammes{which become necessary because of increase in demand for goods
and services by a growing population,a rising standard of living,competitiveness} HR planning is unavoidable.
5.the nature of present workforce in relation to its changing needs also necessitates the recruitment of newe labour.to meet
the challenge of a new and changing technology and new techniques of production,existing employees need to be trained or
new bloodi injected in an organisation.
6.Manpower planning is also needed in order to identify areas of surplus employees or areas in whichb there is shortage ,it
may be made good.

6. Process of Human Resource Planning
Analysing HR objectives
Inventory of present human resources
Forecasting demand and supply of Human Resources
Estimating Manpower gaps
Formulating the HR action plan
Monitoring control and feedback.

7. HRM in Changing Environment
and Trends in HRM

8. 1.Work Force Diversity
2.Political Legal Forces
3.4.Technological Challenges
4.Trade Unions
5.Socio Cultural Environment
6.Economic Environment
7.Rapid change

9. Work Force Diversity
Factors of Work Force Diversity
Primary Factors: It includes age, gender, race, ethnicity sexual orientation, and physical abilities represent those
elements that are either inborn or exert extra influence on early socialization.
Secondary Factors: These constitute the elements that can be changed or over the period gets modified. They include a
person's health habits, religious beliefs, education, knowledge, training, general appearance, status relationship,
ethnic customs, communication style and level of income.

10. Advantages of Work Force Diversity
Innovative solution
Ease of communication with diverse customer
Retention of talent
Reach in Diversified area
Global Awareness

11. Factors increasing Workforce Diversity
Expansion of the Service Sector
Globalization of market
Requirement of Teamwork for successful implementation of business strategies
Mergers and Alliances
Constitution & Govt. Laws
Changing Labour Market

12. Measures to manage Work Force Diversity
❑ Strategies Recruitment and Promotion Policies
❑ Ensuring Top Management Commitment to Value Diversity
❑ Organizing Diversity Training Programmes
❑ Creating Support team
❑ Using business language rather than local

13. Work Force Diversity - Challenges
Cultural differences
Discriminatory treatment
Problematic gender relations
Resistance to change
Religion/Racial differences

16. Political and Legal Environment
Legal Issues In Human Resources:
1. Confidentiality:
The first great challenge that an HR professional faces is the need to maintain confidentiality.
2. Verification:
In many organizations, human resource professionals have to shoulder the responsibility of verification. This job is
really not easy.
You need to carry out a background check of each individual with respect to their social, economic and more
importantly criminal background.
3.Labour Rights and implications:
Every individual has certain labour rights that give them security when they work in an organization. Every
organization has to abide by these laws and rules and make sure that the workers get their basic rights while
working in an organization.
4. A human resource executive should be able to understand all such policies as well as their implications. There
are certain health conditions that are very different from the routine health problems.
The HR professional should understand where which concessions should be applied and who should get special
health-related allowances.

17. TRADE UNIONS
Trade unions promote HRM in three ways: first, trade unions, working directly with the employees, represent the
reasonable demands of employees to the management. Based on the representation of demands by trade unions,
the enterprise can adjust and optimize its human resource management.
They represent a cluster of workers and provide a link between the management and workers. The purpose of
these unions is to look into the grievances of wagers and present a collective voice in front of the management.
Hence, it acts as the medium of communication between the workers and management.
Socio-cultural Environment
The key socio-cultural factors that have a major impact on the HR operations of the multinational companies are
1) culture;
2) language;
3) religion;
4) level of education,
5) customer preferences, and
6) the attitude of the society towards foreign goods and services.

18. Rapid Change
The world is changing at a faster rate because change is constant for several centuries. So the management of the
organizations should be quickly adaptive to the changing requirement of the environment otherwise they become
obsolete from the market.
The human resource management of an organization plays a basic role in response to environmental change. The HR
department should adopt such policies that can avail the new opportunities of the environment and keep the
organization away from the newly emerging threats.

19. HR Role in strategy formulation and competitive advantage
1.Drawing Inputs from Environment
2.Identifying unique strengths
3.Formulating Plans
4.Identifying the HR strategies:
a. HR philosophy that respects people
b.Workforce planning and staffing and aligning
c.learning and development infused with systems thinking and value for employee
d.Managing Performance aligned to continuous improvements
e.Talent management aligned to corporate mission and championed by the top management team
f.Rewards and benefits that are alligned to Innovation that supports sustained performance
g. HR metrics and analytics that track and measure HR impact factors,enabling the right decisions.
5.Converting plans into actions

20. Strategic
Planning
at Three
Levels
Corporate Level
Strategic Planning
multi business corporation
(e.g.: ICICI Group)
strategic business
unit (ICICI Bank)
“What business should we be in?”
strategic business unit
(ICICI Lombard)
Strategic Business Unit
(ICICI Prudential)
Business-
Unit Level
Strategic
Planning “How should we compete in each of
our businesses?”
operations
Functional Level
Strategic Planning
marketing
finance
human resources
“How do we support each of our SBUs?”

21. Job Ananlysis
Job analysis is the process of understanding the details of a specific job. This means gathering information through various
methods to understand the functions employees perform, the tools and skills employees need and the results they achieve.
Observation method
The observation method is when an outside analyst observes an employee and the tasks they perform. They'll often shadow
the employee for several days as they perform their duties, attend meetings and evaluate their workload to understand the
role's essential functions. While observing, the analyst takes detailed notes about the role, including what tools they use, how
long they spend on tasks and who they interact with to complete their jobs.
Interview method
The interview method is when the analyst questions an employee about their role.
Questionnaire method
The questionnaire method is when analysts create a series of questions for employees to answer about their jobs. They often
ask the employee's managers and others on the team about their perceptions of the role to identify any gaps between
expectations. These questions can include asking employees about how they spend each day, what their priorities are and
how they effectively perform their duties.
Daily method
The daily method is when an employee creates a record daily of the tasks they perform. This can be over a set period of
time, like a week, where they detail their activities and the length they spend on each. This can be an objective way to
understand how employees spend their time and can identify areas where an employee might shift their attention to more
important responsibilities.

22. Job inventories method
Job inventories involve a structured checklist that employees can check off to verify that they're completing certain tasks.
Job performance method
The job performance method is when an analyst actually performs the role of the employee to understand more about it.
This might mean they answer emails, perform physical tasks and interact with colleagues or systems to learn what an
employee experiences. With this first-hand experience, they can determine what some of the issues and requirements are
and how companies might properly detail these in a job description.
Uses for a job analysis
Workforce planning: These methods can help a company plan for the skills and expertise they need to perform the duties of
the role. With detailed results, it can create more accurate job descriptions and recruit talent that better matches its needs.
Performance management: As management teams frequently hold regular performance evaluations, these analyses can
help with the process.
Development: By understanding what the skills, limitations and responsibilities are for a role.This can help employees
develop in their roles and prepare for more responsibilities as they grow with a company.

23. A job description is a document that clearly states essential job requirements, job duties, job responsibilities, and skills
required to perform a specific role.
(Job description is a document indicating what a job covers, i.e. tasks, responsibilities, duties, powers and authorities,
attached to a job. In finer terms, Job Analysis means an in-depth examination and evaluation of a particular Job. Conversely,
Job Description is a statement that characterizes of a particular job.)
Job Description contains the following data:
1. Job identification or organisational position which includes the job title,department division,plant and code no. of the job.
2. Job summary : It gives the reader a quick capsule explaination of the content of a job usually in one or two sentences.
3. Job duties & responsibilities: It is regarded as a “Heart of the Job”.It tells us what needs to be done?How it should be
done? & Why it should be done? It also describes the responsibilities related to the custody of money, the supervision of
workers, and the training of subordinates.
4. Relation to other job:This help to locate the job in the organiozation by indicating the job immediately belopw or above it
in the job hierarchy.It also gives an idea of the vertical relationships of work flow and procedures.
5.Supervision:under it is given the no. of personas to be supervised along with their job titles and the extent supervision
involved.
6. Machinw, tools, equipments name
7. Working condition usually give us information about the environment in which a job holder must work.
8. Hazards gives us the nature of risks to life, their possibilities of occurrence etc.

24. Job enlargement:It is the process of asigning some extra duties to the job of a particular employee.the extra
duties which are assigned do not requie special skills or new skills.
Advantages:
It reduces the boredom of the employee.
It helps the organization to increase the workplace productivity.
It makes the employee relate wholly with the task.
Job Enrichment: It is the process which allows the employee to perform higher responsibilities at higher level
Advantage:.
Job enrichment makes the work more interesting to the employee.
It provides a meaningful experience & learning opportunities to the employees.
It increases the self respect and self satisfaction to the employees.

25. Job Evaluation
Job evaluation is defined as the systematic process of assessing the value of each job in relation to other jobs in an
organisation. It is intended to provide a rational, orderly hierarchy of jobs based on their worth to the company by
analysing the difficulty of the work performed and the importance of the work to the organisation. The factors used to
assess a job’s worth are identified, defined, and weighted in the company’s job evaluation plan.
;
The objectives of job evaluation
1. To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the
entire plant.
2. To provide a standard procedure for determining the relative worth or value of each job in a plant.
3. To determine a rate of pay for each job which is fair and equitable with relation to other jobs in the plant,
community and industry.
4. To ensure that like wages are paid to all qualified employees on like work.
5. To promote fair and accurate consideration of all employees for advancement and transfer.
6. To provide a factual basis for the consideration of wage rates for similar jobs both within the community and within
the industry.
7. To provide information for the work organisation, employee’s selection and training and numerous other important
purposes

26. RECRUITMENT
HRP determine the no. and type of people a firm needs.Job analysis and Job design specify the tasks and duties
of jobs and the qualifications expected from prospective job holders.
The next logical step is to hire the right no. of people of the right type to fill the jobs.Hiring involves two broad
group activities:
1.Recruitment
2.Selection
Recruitment is the process of searching for and obtaining applicants for jobs,from among whom the right people
can be selected.

27. Factors governing recruitment
External Forces
a. Supply & Demand
b. Unemployment Rate
c. Labour Market
d.Political- legal
e.Image
Internal Process
a.Recruitment Policy
b.HRP
c.Size of the firm
d.Cost
e.Growth & expansion

28. Recruitment Process
Planning
Strategy development
Searching
Screening
Evaluation & control

29. Recruitment process:
Personnel Hr Recruiting needed selecting qualified Placing new employees on job
planning personnel personnel
developing sources search for evaluating recruiting effectiveness
of potential potential
employees employees
Internal Personnel research upgradation in same position/transferring to new job/
sources or job posting promotion to higher responsibilities
External Employee Referals/advertising Evaluating for Selection
sources

30. Selection process
Following are the steps involved in a standard selection process:.
Preliminary Interview
Application Blank
Selection Tests
Selection Interview
Reference checks
Physical Examination
Final selection

31. Training and Development (T and D) is a planned, continuous effort by management to improve employees’
competency levels and organizational performance. Training has a short-term focus as it is designed to provide the
learners who are especially in the managerial cadre with specific concepts, knowledge, skills and techniques needed
for their present jobs. Job related training is offered at various points in an employee’s tenure with a company, on
technical or mechanical facet of work. Development on the contrary, refers to the attainment of a generic long-term
learning that transcends the present job and applies to a wider life and social situation.
Training and Development Methods:
1.Classroom Lecture Method:
Most commonly used, simple, cost effective, and conventional method.
It is time saving because it covers maximum number of people in a short period of time.
Clear and direct methods of presentation.
Weaknesses of the method
Lecture time is more than the normal human attention span of fifteen minutes and the contents of the lecture could
be easily forgotten.
Lecture might be useful only if the presentation is made skillfully.
An improvisation of this method is the lecture-cum-demonstration method in which the lecturer reemphasizes a
skill or information by displaying the same in action.

32. Group Discussion Method:
It is a method used to knowledge and attitudinal development of trainees.
In this method,sets of people examine several empirical studies to find out commonalities to derive the underlying
general principles. They then combine their ideas and focus their attention on a given problem at a time, speaking
from multiple points of view within a group.
An instructor is optional, while a leader is necessary in this method.
Advantages:
More ideas can be generated from each session.
Each member gets an opportunity to present one’s own ideas and get feedback from members of the same group.
Simulation exercise method:
Simulators are a group of training devices of varying degrees of complexity that model the real world. They range
from simple paper mock-ups of mechanical devices tocomputerized creations of total environments.
Advantage of simulation methods
They improve the possibility of learning without damaging the equipments or human life or facing the numerous
risks involved in actual performance. For example, most of traffic rules, signals and procedures of driving could be
taught in a park that resembles main road or through a video game featuring car or two-wheeler driving. Piloting
planes are taught using more complex simulations.

33. Direct method but could also be expensive.
This method calls for a certain level of grasp and information processing capability and transfer of learning on the
part of the trainees.
Role Play:
Role is a set of expectations around a given position and is determined by the role partners. Participants in role-
play method are required to respond to specific problems and expectations of people that they might actually
encounter in their jobs. Role-playing is often used to teach such skills as interviewing, negotiating, grievance
handling,performance appraisal, and buying and selling and effective communication. It promotes healthy human
relations skills among people.
Case Study Method:
It is a written down, narrative description of a real situation or incident relating to an organization and its business,
depicting any problem that participants could face in their employment. Participant trainees are required to propose
any number of viable solutions or decisions that match the variables represented in the case. Case study can be
interest creating and thought stimulating for the participants. It helps to develop analytical,reasoning and problem-
solving skills of the participants.

34. T-groups are concerned with the real problems existing within the group itself. People are helped to become more
responsive to others’ sensitivities and work more harmoniously and responsibly together by encouraging them to
interact freely and actively. The members are enabled to recognize group dynamics and diagnose human relationship
problems. The participants are encouraged to communicatethoughts and feelings with each other in an open,
unstructured, warm and honest manner than is typically done in the usual work or social situation.
A beneficial outcome of the method is that participants find better means of behavior for effective interpersonaL
relationships without the aid of power or authority over others.
Management Games Method
Games are used as a training tool, than as mere pastimes or amusement. Trainees are divided into teams and are
given common tasks on which they would be competing to arrive at decisions, and then jointly implementing and
evaluating the decisions taken with regard to the games.
Vestibule Training Method
This kind of training takes place away from the production area on equipment that closely resembles the actual ones
used on the job. It is a type of off-the-job training in whichemployees get training in a realistic job setting but in a
location different from the one inwhich they would be working.

35. Outward bound training method :
As part of OBT, managers and other staff members meet and cohabitate as teams at unfamiliar wilderness out of the
workplace and away from the hustles and bustles of daily life, where they would live in cabins or tents for a certain number
of days. They test their survival skills and learn about their own personality and hidden potentials for creativity,cooperation
and leadership.
Apprenticeship Training Method:
The method is a combination of education and employment and is aimed at preparing workforce with certain levels of
qualification to meet the growing needs of the industry. The method develops special skills likemechanical, electronic,
tailoring, etc. Apprenticeship is traditionally used in skilled jobs,such as those of plumber, carpenter, machinist and printer.
Programmed Instruction Method (PIM)
With this method,information is broken down into small portions called ‘frames’. The learner reads each frame in sequence
and responds to questions designed to verify learning. Based on the answers given by the trainees they are provided with
immediate feedback on response accuracy. If the learners have got all the answers right, they proceed to the next frame. If
not they repeat the frame. Primary features of this approach are immediate reinforcementand the ability of learners to
proceed at their own pace

36. Personal Coaching Method:
It is an on-the-job approach in which a manager has the opportunity to teach an employee,usually his immediate subordinate,
on a one-to-one basis.
Mentoring Method:
Mentoring is an on-the-job approach to training in which the trainee is given anopportunity to learn on a one-to-one basis from
more experienced members of the organization. The mentor is usually an older, experienced executive who serves as a
host,friend, confidant and advisor to a new member of the firm. The mentor is given the chargeof protecting and responsibility
of helping the new employee.
Job Rotation Method:
This method of training involves the shifting of trainees from one job to another so as towiden their exposure and enable them
to obtain a general understanding of the totality ofthe organization. Besides helping them to overcome boredom, job rotation
permits directinteraction with a large number of individuals within the organization, thereby facilitatingfuture working
relationships.

37. Computer-Based Training (CBT) Method:
CBT is a technology-driven training method that takes full advantage of the speed,memory and data manipulation
capabilities of the computer for greater flexibility ofinstruction. It involves the trainee sitting in front of a computer terminal
rather thanlistening to an instructor. Learning is enhanced through presentations combiningautomation, stereophonic sound,
full motion video and graphics.
Internship Method:
Internships involve placing young college and university students in temporary jobs inwhich they can earn while they learn,
with no obligations towards any regular employmentfrom the side of the employer or from the trainee. Such an arrangement
enables to providea fresher the much-needed exposure to an organization and also to determine the person-organization fit.