Human resource management

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Human Resource Management
Shubhpreet Kaur Gulzar Group of Institutes
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WHAT IS HR?????

• Human resources is the set of individuals who
  make up the workforce of an organization,
  business sector or an economy.
• Other terms sometimes used include "manpower",
  "talent", "labor" or simply "people".

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What is HRM?

• The process of acquiring, training, appraising,
  and compensating employees, and of attending to
  their labor relations, health and safety, and
  fairness concerns.
• A management function that helps managers
  recruit, select, train and develop members for an
  organization.
• HRM may be defined as a set of policies,
  practices and programmes designed to maximize
  both personal and organizational goals.

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• "I believe the real difference between success
  and failure in a corporation can be very often
  traced to the question of how well the
  organization brings out the great energies and
  talents of its people."
• Thomas J. Watson, Jr.
•  

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• And I'd say one of the great lessons I've learned
  over the past couple of decades, from a
  management perspective, is that really when you
  come down to it, it really is all about people
  and all about leadership. Steve Case

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Some eminent personalities
Dr. T V Rao
Dr. Udai Pareek
Frederick Winslow Taylor
King Hammurabi
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Evolution of HRM
assets
Procure, develop and motivate
Procure and develop
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Nature of HRM

• Integral part of process of management.
• Comprehensive Function
• Pervasive Function
• People Oriented
• Based on human relations
• Continuous process
• Science as well as art
• Recent origin
• Interdisciplinary
• Basic to all functional areas.

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Objectives of HRM
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Functions of HRM w.r.t objectives
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Functions
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Functions
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Functions (cntd)
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Policies, Principles and Procedures

• Policy A plan of action.. A statement of action
  committing management to a general course of
  action.
• Principle fundamental truth established by
  research, investigation and analysis.guide the
  managers in formulating policies, programs and
  procedures.
• Procedures a method for carrying out a policy.

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Importance of HRM

• Importance for organization
• Importance for employees
• Importance for society.

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Compare HRD and HRM
HRM HRD
Entire management process Subset of HRM
Scope is wider Narrow scope
Emphasis on employee as a whole Training and Development of employees
Takes decisions Depends on decisions of HRM
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Limitations of HRM
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Systems approach to HRM

• An enterprise cannot work in isolation.
• Has to adjust its working to suit the
  environment.
• Subsystems Departments that are created in an
  organization to carry out its business
  effectively.
• Each subsystem has a number of further
  subsystems.

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Important Subsystems

• HR system
• Production System
• Finance System
• Marketing System
• Research and development System

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Human Resource Management System

• Transforms inputs to outputs.
• HR system interacts closely with all other
  subsystems.
• Quality of people in all subsystems depends upon
  policies of HRM System

Productive Human Resource
Personnel
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Organizational Design
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Place Of HR Department

• Size Matters!!!!
• In case of a small unit

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Small unit
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Large Unit
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Composition
Director HRM
Manager - Personnel
Manager Admin
Manager - HRD
Manager - IR
PR
Appraisal
HRP
Canteen
Hiring
Training And Development
Medical
Grievance handling
Welfare
Compensation
Transport
Legal
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HRM Environment

• Proactive not Reactive
• Factors affecting HRM Environment
• External Environment
• Internal Environment

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External Environment

• Economic Factors
• Political Legal Factors
• Social and Cultural Factors
• Technological Factors
• Unions
• Professionalism

GLOBALIZATION
SUPPLIERS
CUSTOMERS
COMPETITORS
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Internal Environment
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Human Resource Planning

• What??? ? When??? ? Where????
• HOW???

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HRP

• The process by which a management determines how
  an organization should move from its current
  manpower position to its desired manpower
  position.
• Right Number and Right Kind of people ?
• Right Places ? Right Time ? to do things
  which result in both the organization and
  individual receiving maximum benefit.

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Objectives of HRP
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Process of HRP
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Analysis of objectives and strategic plans

• Must be integrated with other business policies.
• Analysis of each plan into sub-plans and detailed
  programmes.
• Check out
• Future organization structure.
• Changes in organization structure.

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Preparing manpower inventory

• Manpower inventory refers to assessment of
  present and potential qualifications of present
  employees.
• Avoid situation of over/under staffing.
• Analysis of current manpower supply. By
  Department ? By Function ? By Occupation ? By
  Qualification
• Helps to find out gaps

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Manpower Forecasting
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Manpower Forecasting
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Manpower Plans
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Training and Development Plans

• Not only for new employees but also for the old
  ones.
• Tapping of talent required.
• The organization has no choice whether to provide
  training or not..but the only choice is to
  decide the method/ technique of training.

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Appraisal of Manpower Planning

• Monitor and control.
• Involves allocation and utilization of HR over
  time
• Reveal deficiencies and helps to take corrective
  action on time
• Serves as a base for future manpower planning.

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Types of HRP

• Short Term HRP - to match the individuals with
  the job.
• Long Term HRP to fulfill future vacancies.

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Short Term HRP
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Long Term HRP
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Benefits of HRP
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Job Analysis
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Definitions

• Job analysis involves identification and
  precisely identifying the required tasks, the
  knowledge and skills necessary for performing
  them and the conditions under which they can be
  performed.
• 
  Richard Henderson
• A systematic exploration of activities within a
  job. It is a basic technical procedure. One that
  is used to define the duties, responsibilities
  and accountabilities of a job.
• 
  S P Robbins

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Data relating to job can be grouped under
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Process
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Techniques
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• PAQ Position Analysis Questionnaire

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MPDQ Management Position Description
Questionnaire
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FJA Functional Job Analysis

• Worker oriented approach.
• Examines fundamental components of data, people
  and things.
• Identifies performance standards and training
  requirements.
• 4 dimensions
• Extent to which
• Specific instructions are necessary to perform
  the job
• Reasoning and judgement are required.
• Mathematical ability is required.
• Verbal and language facilities are required.

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Job Description
Job Analysis
Job Specification
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Job Description

• The first and immediate product of job analysis
  is job description. This document is basically
  descriptive in nature and constitutes a record of
  existing and pertinent job facts.

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Contents of JD
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Job Specification

• A statement of minimum acceptable human qualities
  necessary to perform a job properly.
• Also known as Standard of personnel for the
  selection.

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What it includes???
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Job Evaluation

• A systematic way of determining the value/worth
  of a job in relation to other jobs in an
  organization.
• Job Evaluation v/s Performance Appraisal

POINT JOB EVALUATION PERFORMANCE APPRAISAL
DEFINE RELATIVE WORTH OF JOB RELATIVE WORTH OF JOB HOLDER
AIM DETERMINE WAGES RATES FOR DIFFERENT JOBS DETERMINE INCENTIVES AND REWARDS
SHOWS HOW MUCH A JOB IS WORTH HOW WELL AN INDIVIDUAL IS DOING AN ASSIGNED WORK
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Process of Job Evaluation
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Methods of Job Evaluation
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Ranking Method

• All jobs are ranked in order of their importance
  from simplest to the hardest order, each job
  being harder than the previous one in the
  sequence.
• Method
• Preparation of Job Description.
• Selection of Raters
• Selection of key jobs
• Ranking of all jobs.

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Rank Monthly salary
Accounts Officer -------
Accountant ------
Senior Accounts Officer -----
Accounts clerk -----
Computer operator -----
Purchase Assistant -----
Office Boy -----
Peon -----
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Job Grading Method

• A number of pre-determined grades or
  classifications are decided by the committee and
  each job is assigned to one of the grades.
• Grades like skilled, unskilled, clerical,
  administrative..etc..
• For each grade there is a different rate of
  wages.
• Steps
• Preparation of grade descriptions
• Selection of key jobs
• Grading key jobs
• All job are put in relevant grades.

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Grade Description
1 Very simple tasks requiring minimum mental ability. Basically consisting of manual work.
2 Jobs requiring clerical work. Basically consisting of desk work and minimum manual work. Minimum training required.
3 Straight forward tasks, but requiring to apply established procedures and to guide others.
4 Routine work but involving some elements of responsibility for answering non-routine queries and exercise some measure of control.
5 Involve decision making and administrative work. Professional qualifications are required.
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Factor Comparison Method

• Each job is rated according to series of factors
  like mental effort, physical effort, skill
  needed, responsibility, working conditions etc.
• Different factors are assigned different weights
  by importance.
• Pay will be assigned by comparing weights of
  factors

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Steps involved

• Select key jobs
• Find factors for evaluation
• Rank selected jobs under each factor
• Assign value to each factor
• Determine wage rates for each job
• All other jobs are compared with the list of key
  jobs.

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Point Method

• Most frequently used.
• Process
• Select key jobs and identify factors common to
  all the identical jobs.
• Divide each major factor into number of sub
  factors. Assign point values to degrees after
  fixing relative value for each key factor.

Degree Define
1 Able to carry out simple calculations, High school educated
2 Does all clerical Operations, computer literate, graduate
3 Handles mail, develops contacts, takes initiative, post graduate.
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• Find maximum number of points assigned to each
  job. This would help in finding out relative
  worth of job.
• once the worth of job is expressed in terms of
  points, the points are converted into money
  values keeping in mind the daily/hourly wage
  rates.

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