HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT

Competitive challenges and HRCompetitive challenges and HR

1.1. Going globalGoing global2.2. Embracing new technologyEmbracing new technology3.3. Managing change and organisation Managing change and organisation

cultureculture4.4. Developing human capitalDeveloping human capital5.5. Responding to the marketResponding to the market6.6. Containing costsContaining costs

DownsizingDownsizing Outsourcing and employee leasingOutsourcing and employee leasing Enhancing productivityEnhancing productivity

Other challenges facedOther challenges faced Demographic and Employee Demographic and Employee

concernsconcerns Demographic changesDemographic changes Diversity of backgroundsDiversity of backgrounds Age distributionsAge distributions Gender distributionGender distribution Rising level of educationRising level of education

Cultural changesCultural changes Concern for employee rightsConcern for employee rights Changing attitude towards workChanging attitude towards work Balancing work and familyBalancing work and family

Functions of HRFunctions of HR

MANAGERIAL FUNCTIONS

Planning

Organising

Directing

Controlling

OPERATIVE FUNCTIONS

Staffing

Development

Compensation

Motivation

Maintenance

Integration

Operative functions of HROperative functions of HR

STAFFING Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility

DEVELOPMENTCompetency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback

COMPENSATION & MOTIVATION

Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

Operative functions of HR (contd.)Operative functions of HR (contd.)

MAINTENANCE Health, Safety, Welfare, Social security

INTEGRATIONEmployment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining

Scope of HRMScope of HRMLabourLabour or Personnel aspector Personnel aspect – –

Recruitment, Selection, Transfer, Recruitment, Selection, Transfer, Promotion etc.Promotion etc.

Welfare aspectWelfare aspect – Housing, Lunch – Housing, Lunch room, Health and Safety, Transport, room, Health and Safety, Transport, education etc.education etc.

Industrial relation aspectIndustrial relation aspect – Union – Union Management relations, Negotiation, Management relations, Negotiation, Grievance handling etc.Grievance handling etc.

HRM Environment - ExternalHRM Environment - External

Professionalism

Social & cultural

Union

Political & legal

Economic

Technology

HRM

HRM Environment - InternalHRM Environment - Internal

MissionOrganisational

Conflict

Policies

HRM

HRM PoliciesHRM Policies Policy Policy – is predetermined course of action – is predetermined course of action

established to guide the performance of established to guide the performance of work towards accepted objectives.work towards accepted objectives.

ImportanceImportance -: -:

(1) Clear Thinking(1) Clear Thinking

(2)Uniformity & Consistency of Admin.(2)Uniformity & Consistency of Admin.

(3)Sence of Security(3)Sence of Security

(4)Control(4)Control

Types of HR PoliciesTypes of HR Policies Originated policiesOriginated policies – Made by top – Made by top

Management.Management. Appealed policiesAppealed policies – Made on request to – Made on request to

handle certain situation, or if certain handle certain situation, or if certain aspects are missing in the main policy.aspects are missing in the main policy.

Imposed policiesImposed policies – Imposed by Govt & – Imposed by Govt & Legal authorities.Legal authorities.

General policiesGeneral policies – Do not relate any issue, – Do not relate any issue, may represent the priority of Top Mgmt. may represent the priority of Top Mgmt. (WPM).(WPM).

Specific PolicySpecific Policy – Related to specific issues – Related to specific issues like Recruitment, Transfer, Promotion etc.like Recruitment, Transfer, Promotion etc.

System Approach to HRMSystem Approach to HRM Systematic functioning as per the Systematic functioning as per the

external environment.external environment. Org can’t change external environment Org can’t change external environment

but try to use it to the fullest extent.but try to use it to the fullest extent. Need to fulfill various demands i.e.Need to fulfill various demands i.e.(1)(1) Customer demand – Quality product, Customer demand – Quality product,

Reasonable price.Reasonable price.(2)(2) Employee demand – Higher wages, Employee demand – Higher wages,

stable employment.stable employment.(3)(3) Govt demand – Payment of taxes, Govt demand – Payment of taxes,

Compliance of various laws.Compliance of various laws.Thus, proper management of all the Thus, proper management of all the

activities is crucial. activities is crucial.

HRM and Relations with other HRM and Relations with other DepartmentsDepartments

Departments – Marketing, Finance, Departments – Marketing, Finance, ProductionProduction

Relationship on the basis of – Growth Relationship on the basis of – Growth & Development, Procurement, & Development, Procurement, Benefits.Benefits.

Human Resource PlanningHuman Resource Planning Meaning – Assessment of Human Resource Meaning – Assessment of Human Resource

Requirements & also the time & stages of Requirements & also the time & stages of requirement.requirement.

Right person ---At Right place ---At Right Right person ---At Right place ---At Right time.time.

Definition – HRP is defined as the process Definition – HRP is defined as the process by which management determines how an by which management determines how an org should move from its current org should move from its current manpower position to its desired manpower position to its desired manpower position.manpower position.

Objectives of HRPObjectives of HRP To ensure optimum use of existing HR.To ensure optimum use of existing HR. To forecast future requirement for HR.To forecast future requirement for HR. To provide control measures to ensure To provide control measures to ensure

that necessary HR are available as and that necessary HR are available as and when required.when required.

To asses the surplus and shortage of To asses the surplus and shortage of HR. (Downsizing).HR. (Downsizing).

To anticipate the impact of technology To anticipate the impact of technology on jobs and HR.on jobs and HR.

Objectives of HRP – Contd.Objectives of HRP – Contd.To determine the level of To determine the level of

Recruitment and Training.Recruitment and Training.To estimate the cost of HR and To estimate the cost of HR and

Housing needs of employees. (Or Housing needs of employees. (Or HRA).HRA).

To provide the basis of MDP.To provide the basis of MDP.To meet the needs of expansion and To meet the needs of expansion and

diversification programmes.diversification programmes.

Importance of HRPImportance of HRPFuture Personnel needsFuture Personnel needs

Creating highly talented personnelCreating highly talented personnel

International StrategiesInternational Strategies

Foundation of personnel functionFoundation of personnel function

Resistance to change and moveResistance to change and move

Factors Affecting HRPFactors Affecting HRP

OutsourcingEnvironmental Uncertainties

Organisational growth cycle & planning

HRP

HRP Process (contd.)HRP Process (contd.) HR Programming-: HR Programming-: Once the Org’s HR Demand and Once the Org’s HR Demand and

Supply are forecast, the two must be Supply are forecast, the two must be reconciled or balanced in order that reconciled or balanced in order that vacancies can be filled by the right vacancies can be filled by the right employee at the right time. employee at the right time.

HR Plan Implementation-:HR Plan Implementation-: Implementation requires converting Implementation requires converting

an HR plans into action. (Recruitment, an HR plans into action. (Recruitment, Training, Succession plan etc.)Training, Succession plan etc.)

HRP ProcessHRP Process

HR Need Forecast

HR Programming

HRP Implementation

Control & Evaluation

ShortageSurplus

Environment

Org objectives & policies

HR Supply Forecast

HRP Process (Contd.)HRP Process (Contd.) Environmental Scanning - :Environmental Scanning - :

1)1) Economic factorsEconomic factors

2)2) Technological ChangesTechnological Changes

3)3) Demographic changesDemographic changes

4)4) Political and legislative issuesPolitical and legislative issues

5)5) Social concernsSocial concerns

HRP Process (Contd.)HRP Process (Contd.)Org objectives and policies-:Org objectives and policies-:

HR plans need to be based on org HR plans need to be based on org objectives, this implies that the objectives, this implies that the objectives of the HR plan must be objectives of the HR plan must be derived from Org objectives. derived from Org objectives.

HRP Process (Contd.)HRP Process (Contd.) HR Demand forecast-:HR Demand forecast-:

The process of estimating the future The process of estimating the future quantity and quality of people required.quantity and quality of people required.

The basis of forecast will be annual budget The basis of forecast will be annual budget and long term corporate plans.and long term corporate plans.

Demand forecasting must consider several Demand forecasting must consider several factors like internal (Budget constraints, factors like internal (Budget constraints, employee separations, production level) employee separations, production level) and external (Competition, laws, change in and external (Competition, laws, change in technology).technology).

HRP Process (Contd.)HRP Process (Contd.) Demand forecasting techniques are-:Demand forecasting techniques are-: Managerial judgmentManagerial judgment Ratio trend analysisRatio trend analysis Delphi techniqueDelphi technique Regression analysisRegression analysis

HR Supply forecasting-:HR Supply forecasting-:

Supply forecasting measures the number Supply forecasting measures the number of people likely to be available from within of people likely to be available from within and outside an org.and outside an org.

HRIS HRIS

HRIS is a database system that HRIS is a database system that keeps important information about keeps important information about employees in a central and employees in a central and accessible location.accessible location.

The information provided by HRIS The information provided by HRIS can help the organisation to gain can help the organisation to gain competitive advantage. (SWOT of competitive advantage. (SWOT of org.)org.)

Information categories of HRISInformation categories of HRISBasic non confidential information-:Basic non confidential information-:

Employee name, Org name, Work Employee name, Org name, Work locationlocation

General non confidential information General non confidential information -:-:

Social security number, Position Social security number, Position related information (codes, tittles, related information (codes, tittles, effective date)effective date)

Info categories of HRIS (contd.)Info categories of HRIS (contd.)

General information with salary -:General information with salary -:

Current salary, Effective date, Current salary, Effective date, Amount of last change, Reason for Amount of last change, Reason for last change.last change.

Confidential information with salary -:Confidential information with salary -:

Information of previous category, Information of previous category, Educational dataEducational data

Info categories of HRIS (contd.)Info categories of HRIS (contd.)

Extended information with salary -:Extended information with salary -:

Information of previous category, Information of previous category, Bonus information, Projected salary Bonus information, Projected salary increase information, Performance increase information, Performance evaluation information.evaluation information.

Job AnalysisJob Analysis Job analysis is the process of Job analysis is the process of

collecting job related information. collecting job related information. Such information helps in the Such information helps in the preparation of job description and job preparation of job description and job specification.specification.

Job Analysis

Job Description Job Specification

Job Analysis (contd.)Job Analysis (contd.) Job description -: A statement Job description -: A statement

containing items such as Job title, containing items such as Job title, Location, Job summary, Working Location, Job summary, Working condition etc.condition etc.

Job specification -: A Statement of Job specification -: A Statement of human qualifications necessary to do human qualifications necessary to do the job. Usually contains items such the job. Usually contains items such as Education, Experience, Training, as Education, Experience, Training, Communication skills etc.Communication skills etc.

Purposes of Job AnalysisPurposes of Job Analysis

HRPHRPRecruitment & SelectionRecruitment & SelectionTraining & DevelopmentTraining & DevelopmentRemunerationRemunerationSafety & HealthSafety & HealthPerformance AppraisalPerformance Appraisal

Methods of Collecting Job DataMethods of Collecting Job Data

ObservationObservation InterviewsInterviewsQuestionnaireQuestionnaireTechnical Conference MethodTechnical Conference Method

Process of Job AnalysisProcess of Job Analysis

Strategic ChoicesStrategic Choices

Gather InformationGather Information

Process InformationProcess Information

Job DescriptionJob Description

Job SpecificationJob Specification

Process (contd.)Process (contd.) Strategic Choices –: Strategic Choices –: 1.1. Employee InvolvementEmployee Involvement2.2. Level of DetailsLevel of Details3.3. When and How oftenWhen and How often4.4. Past oriented and Future orientedPast oriented and Future oriented

Gather Information –:Gather Information –:1.1. What type of Data to Collected (machine, What type of Data to Collected (machine,

tools & work activities)tools & work activities)2.2. Data collection methodsData collection methods3.3. Who to collect Data (Trained analyst, Who to collect Data (Trained analyst,

Supervisors, Job incumbents)Supervisors, Job incumbents)

Process (contd.)Process (contd.) Information Processing -:Information Processing -:

How collected information will be How collected information will be used in forming Job Description and used in forming Job Description and Job Specification.Job Specification.

Job description –:Job description –:

Job Specification -: Job Specification -:

RecruitmentRecruitmentThe process of finding and attracting The process of finding and attracting

capable applicants for employment. capable applicants for employment. The process begins when new The process begins when new recruits are sought and ends when recruits are sought and ends when their applications are submitted. The their applications are submitted. The result is a pool of applicants from result is a pool of applicants from which new employees are selected.which new employees are selected.

Recruitment is a process of inviting Recruitment is a process of inviting applications from prospective applications from prospective employees.employees.

Recruitment is a positive process.Recruitment is a positive process.

Sources of RecruitmentSources of Recruitment Internal Sources -:Internal Sources -:

Transfer , Promotions.Transfer , Promotions.

External Sources-:External Sources-:

Press Advertisements , Educational Press Advertisements , Educational Institutions, Placement Agencies, Institutions, Placement Agencies, Employment Exchange, Labour Employment Exchange, Labour Contractors, Recruitment at factory Contractors, Recruitment at factory Gate.Gate.

Recruitment ProcessRecruitment Process

Recruiting Required PersonnelRecruiting Required Personnel

Search for Perspective EmployeesSearch for Perspective Employees

Internal SourcesInternal Sources

External SourcesExternal Sources

Evaluating effectiveness of processEvaluating effectiveness of process

Recruitment ProcessRecruitment ProcessPersonnel Requisition -: Requisition Personnel Requisition -: Requisition

for recruitment from other deptt., for recruitment from other deptt., Contains info like no of person Contains info like no of person required, duties to be performed, required, duties to be performed, desired qualification, time of desired qualification, time of appointment, info about job.appointment, info about job.

Locating and developing sources of Locating and developing sources of required no and type of employees.required no and type of employees.

Identifying the prospective employees Identifying the prospective employees with required characteristics.with required characteristics.

Process (contd.)Process (contd.)Communicating the info about the Communicating the info about the

org, the job and the terms and org, the job and the terms and condition of service.condition of service.

Encouraging the identified Encouraging the identified candidates to apply for jobs in the candidates to apply for jobs in the org.org.

Evaluating the effectiveness of Evaluating the effectiveness of recruitment process.recruitment process.

Alternatives to RecruitmentAlternatives to RecruitmentOvertimeOvertime

Employee LeasingEmployee Leasing

Temporary EmploymentTemporary Employment

SelectionSelectionSelection is the process of picking Selection is the process of picking

individuals (out of the pool of job individuals (out of the pool of job applicants) with requisite applicants) with requisite qualifications and competence to fill qualifications and competence to fill jobs in the organisation.jobs in the organisation.

Selection is a negetive process. Selection is a negetive process.

Selection ProcedureSelection ProcedurePreliminary InterviewPreliminary InterviewApplication blankApplication blankSelection TestSelection TestEmployment InterviewEmployment InterviewReference Check and Background Reference Check and Background

AnalysisAnalysisMedical ExaminationMedical ExaminationFinal ApprovalFinal ApprovalEvaluationEvaluation

Test and InterviewTest and InterviewPsychological tests -: Aptitude testPsychological tests -: Aptitude test

Informal InterviewInformal InterviewFormal InterviewFormal InterviewDepth InterviewDepth InterviewStress InterviewStress Interview

Induction Or OrientationInduction Or OrientationPlanned introduction of employees to Planned introduction of employees to

their jobs, their co – workers and the their jobs, their co – workers and the organisation.organisation.

Orientation also called Induction, is Orientation also called Induction, is designed to provide a new employee designed to provide a new employee with the information he or she needs with the information he or she needs to function comfortably and to function comfortably and effectively in the organisation. effectively in the organisation.

Objectives of InductionObjectives of InductionTo help new comer overcome his To help new comer overcome his

natural shyness and nervousness in natural shyness and nervousness in meeting new people in the meeting new people in the environment.environment.

To develop among the newcomers a To develop among the newcomers a sense of belonging and loyalty to the sense of belonging and loyalty to the organisation.organisation.

To develop a close and cordial To develop a close and cordial relationship between newcomers and relationship between newcomers and the old employees and their the old employees and their supervisor.supervisor.

Objectives (contd.)Objectives (contd.)To ensure that the newcomers do not To ensure that the newcomers do not

form negative or false impression form negative or false impression and attitude towards the and attitude towards the organisation or the job because first organisation or the job because first impression is the last impression.impression is the last impression.

To give newcomers necessary To give newcomers necessary information such as leave rules, rest information such as leave rules, rest period, locker room etc. period, locker room etc.

Advantages of Formal Advantages of Formal InductionInduction

Helps in build up a two way channel Helps in build up a two way channel of communication between of communication between management and workers.management and workers.

Proper induction facilitates informal Proper induction facilitates informal relations and teamwork among relations and teamwork among employees.employees.

Effective induction helps to integrate Effective induction helps to integrate the new employees into the the new employees into the organisation and to develop the organisation and to develop the sense of belonging.sense of belonging.

Types of Induction ProgrammeTypes of Induction ProgrammeFormalFormal InformalInformal IndividualIndividualcollectivecollective

Contents of Induction Contents of Induction ProgrammeProgramme

History and operation of companyHistory and operation of companyProducts and services of companyProducts and services of companyPolicies and procedures of companyPolicies and procedures of companyGrievance procedureGrievance procedureBenefit and services for employeesBenefit and services for employeesOpportunities for training and Opportunities for training and

development, promotion, transfer development, promotion, transfer etc. etc.

PlacementPlacement

Placement refers to the allocation of Placement refers to the allocation of people to jobs. It includes initial people to jobs. It includes initial assignment of new employees and assignment of new employees and promotion, transfer, or demotion of promotion, transfer, or demotion of present employees.present employees.

Placement ProblemsPlacement Problems Difficulty with the placement is that Difficulty with the placement is that

we tend to look at the individual but we tend to look at the individual but not at the job.not at the job.

Job in this context may be classified Job in this context may be classified into three categories.into three categories.

1.1. IndependentIndependent

2.2. SequentialSequential

3.3. PooledPooled

Training & DevelopmentTraining & Development

Training is an attempt to improve Training is an attempt to improve current or future employee current or future employee performance by increasing an performance by increasing an employees ability to perform through employees ability to perform through learning, usually by changing the learning, usually by changing the employee’s attitude or increasing his employee’s attitude or increasing his or her skills and knowledge.or her skills and knowledge.

Training refers to the process of Training refers to the process of imparting specific skills. (Employees)imparting specific skills. (Employees)

T & DT & D

Development refers to learning Development refers to learning opportunities designed to help opportunities designed to help employees grow. (Executive)employees grow. (Executive)

Education is theoretical learning in Education is theoretical learning in classroom.classroom.

T & DT & DThe need for training and The need for training and

development is determined by the development is determined by the employee’s performance deficiency employee’s performance deficiency computed as follows-:computed as follows-:

Training & Development need = Training & Development need = Standard Performance – Actual Standard Performance – Actual PerformancePerformance

Difference between T & EduDifference between T & Edu Training -: Training -: 1. Application base, 1. Application base, 2.Job Experience, 2.Job Experience, 3. Specific Task, 3. Specific Task, 4. Narrow Perspective.4. Narrow Perspective.

Education -: Education -: 1.Theoretical Orientation,1.Theoretical Orientation,2. Classroom learning,2. Classroom learning,3. General Concepts,3. General Concepts,4. Broad Perspective. 4. Broad Perspective.

Inputs in T & DInputs in T & D

SkillsSkillsEducationEducationDevelopmentDevelopmentEthicsEthicsAttitudinal ChangesAttitudinal ChangesDecision making and Problem solving Decision making and Problem solving

skillsskills

T & D as a source of Competitive T & D as a source of Competitive AdvantageAdvantage

T & D offer competitive advantage to T & D offer competitive advantage to a firm by removing performance a firm by removing performance deficiencies, making staff stay long, deficiencies, making staff stay long, minimising accidents, Scrap & minimising accidents, Scrap & damage and meeting future damage and meeting future employees needs.employees needs.

Training ProgramTraining Program

Need AssessmentNeed Assessment

Deriving Instructional ObjectivesDeriving Instructional Objectives

Designing Training & Development ProgramDesigning Training & Development Program

Implementation of Training ProgramImplementation of Training Program

EvaluationEvaluation

Training ProcessTraining Process Need Assessment -: Diagnoses the Need Assessment -: Diagnoses the

present problems & future challenges to present problems & future challenges to be met through training and be met through training and development.development.

Need Assessment Methods -: As followsNeed Assessment Methods -: As follows Group Assessment – Group Assessment –

1.1. Org goals & objectives.Org goals & objectives.

2.2. Personnel skill inventoriesPersonnel skill inventories

3.3. Exit interviewsExit interviews

4.4. Customers Satisfaction dataCustomers Satisfaction data

Training processTraining process Individual Analysis -:Individual Analysis -:1.1. Performance AppraisalPerformance Appraisal2.2. InterviewsInterviews3.3. QuestionnairesQuestionnaires4.4. Attitude Surveys.Attitude Surveys.

Issues in need assessment -:Issues in need assessment -:1.1. Org SupportOrg Support2.2. Org AnalysisOrg Analysis3.3. Task and KSA analysisTask and KSA analysis4.4. Person AnalysisPerson Analysis

Training ProcessTraining Process Deriving an instructional objectives -:Deriving an instructional objectives -: It help to know the inputs for the training It help to know the inputs for the training

program and as well as for the measures of program and as well as for the measures of success that would help assess success that would help assess effectiveness of the training program.effectiveness of the training program.

Designing training & development program Designing training & development program -:-:

1. Who are the trainees?1. Who are the trainees?2. Who are the trainers?2. Who are the trainers?3. Methods & techniques?3. Methods & techniques?4. Level of training?4. Level of training?5. Learning principles?5. Learning principles?6. Where to conduct the program?6. Where to conduct the program?

Training processTraining process Implementation of training programImplementation of training program

EvaluationEvaluation

Types of trainingTypes of training On the job -: On the job -:

1.1. Orientation TrainingOrientation Training

2.2. Job instructionJob instruction

3.3. Apprentice trainingApprentice training

4.4. InternshipInternship

5.5. Job rotationJob rotation

6.6. Coaching Coaching

Types of trainingTypes of training Off the job -:Off the job -:

1.1. VestibuleVestibule

2.2. LectureLecture

3.3. Role playingRole playing

4.4. SimulationSimulation

5.5. Laboratory trainingLaboratory training