HUMAN RESOURCE MANAGEMENT

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HUMAN RESOURCE MANAGEMENT
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DEFINITIONS

• Human resource management is the process of
  acquiring, training, appraising and compensating
  employees and attending to their labour
  relations, health, safety and fairness
  concerns.---- Dessler
• HRM is a series of integerated decisions that
  form the employment relationship their quality
  contributing to the ability of the organisations
  and employees to achieve their objectives.--Milko
  vich Boudreau

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NATURE

• Inherent part of management HRM is a part of
  Mgt., draws heavily from Mgt. concepts, principle
  techniques. This function is performed by all
  the managers throughout the organization rather
  than by the personnel department only.
• Pervasive Function All managers at various
  levels in the organization are required to
  perform the personnel functions on a continuous
  basis. It is not a responsibility that a manager
  can leave completely to someone else.

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• Basic to all Functional areas All the
  departments has to perform personnel functions.
• People centred HRM is concerned with people in
  the organization both present and potential. It
  is concerned with Top mgt., Middle mgt.,
  Supervisory mgt. Operatives.
• Personnel activities Manpower planning,
  Employment, Placement, Training, Appraisal
  Compensation. Performed by HR department.

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• Continuous Process It is not a one shot
  function. It requires a constant alertness and
  awareness to achieve the objectives.
• Based on Human Relations human relations in the
  organization will be cordial. Motivation of human
  resource is very important.

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SCOPE

• Human resource / Manpower planning determining
  the number and kinds of personnel required to
  fill various position in the orgnisation.
• Recruitment, selection and placement of personnel
  Employment function.
• Training and development of employees for their
  efficient performance and growth.
• Appraisal of performance employees.

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• Motivation of work force.
• Remuneration of employees. ---sufficient wage and
  fringe benefits.
• Social security and welfare of employees.
  Canteens, crèches, housing, recreation health.
• Review and audit of personnel policies,
  procedures and practices of the organisation.
• Industrial relation aspects is concerned with
  union negotiation and collective bargaining.

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Functions

• Managerial HRM is a part of organizational
  management.
• Planning is the conscious determination of
  future course of action to achieve the desired
  results. Determination of personnel programs
  that will contribute to the goals of enterprise.
  It includes a supply and demand forecast for each
  category, net shortage and excess of personnel .

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• Organizing is the process of dividing work
  (personnel activity) in to convenient tasks or
  duties, grouping of such duties in the form of
  positions, grouping of various positions in to
  departments and sections, assigning duties in to
  individual positions and delegating authority to
  each position so that work is carried out as
  planned.
• Directing when people are available in the
  organization, they must know what they are
  expected to do in the organization. It include
  communicating, motivating and leading. To guide
  and motivate people to accomplish personnel
  programmes.

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• Controlling Involves comparing actuals with
  standards and corrective action. It involves
  performance appraisal, critical examination of
  personnel records and statistics and personnel
  audit.
• Operative Duties/ tasks which are specifically
  entrusted to the human resource department.
• Employment proper kind and number of persons
  are necessary to achieve the objective of the
  organisation. It includes manpower planning ,
  recruitment, selection, Induction ,Placement.

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1. Development To train each employee properly to
   develop technical skills develop him for the
   higher jobs. There is On-the-job and Off- the job
   methods are available.
2. Compensation Determination of adequate and
   equitable remuneration. The personnel can be
   compensated both in terms of monetry as well as
   non-monetary terms. While fixing the wage, the
   following factors should be considered. Basic
   needs of the personnel, legal provisions
   regarding minimum wage, capacioty of the
   organization to pay, wage level afforded by
   competitors. Job evaluation and performance
   appraisal can be followed.

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1. Maintenance ( Working Conditions and Welfare)
   Measures taken for health , safety, cafeteria,
   rest rooms, counseling, group insurance
   recreations etc
2. Motivation HR manager helps the various
   departmental mangers to design a system financial
   and non-financial reward to motivate employees.
3. Personnel records Records of their training,
   achievements, transfer, promotion, absenteeism
   and labour turnover, policies

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• Industrial Relations settlement of disputes,
  collective bargaining ..
• Separation HR manager has to ensure the release
  of retirement benefits..
• Advisory Gives advise relating human resource
  of the organization.
• Top Management evaluation of personnel
  Programme, policies procedures.
• Department heads performance appraisal , job
  analysis, manpower planning training ,
  recruitment

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Importance of HRM / Role of HR Manager

• Policy Formulation HR policies are indented to
  communicate to the employees the basic ground
  rules under which the organization functions and
  to avoid discrimination, inconsistency and
  confusion. HR manager helps top management in the
  formulation of policies on wage and salary,
  administration, transfer, appraisal, welfare
  activities, personnel records and work
  environment.

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• Advisory Role advice to line managers ,
  Department Heads, Top management. Matters like
  grievance over distribution of overtime work,
  disciplinary action, labour laws, preparation of
  reports.
• Linking Pin Role Linking Pin between management
  and the workers.
• Representative Role generally act as a
  spokesman of the top management, representative
  of company. Sometimes workers representative,
  particulary in non-unionised organisations.

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• Decision making Role Plays effective role in
  decision making on issues related to human
  resource.
• Mediator Role Mediator in the event of conflict
  between employees, group of employees, superior
  subordinate and even between management and
  employees.
• Leadership Role provides leadership, guidance
  and counseling to employees.

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• Welfare Role Act as welfare officer. He is
  concerned with provision of canteen, crèches,
  hospital and other welfares.
• Research Role on the basis of records he
  undertake various research in various personnel
  areas absenteeism, labour turnover etc..

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Human Resource Planning

• Human resource planning is the process by which
  an organisation ensures that it has the right
  number and kind of people, at the right place, at
  the right time, capable of effectively and
  efficiently completing those tasks that will help
  the organisation to achieve its overall
  objectives. ---- Decenzo Robbins
• Manpower planning is the process of determining
  manpower requirements and the means for meeting
  those requirements in order to carry out the
  integrated plan of the organization. -----Coleman

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scope

• Listing of current manpower with the
  organisation.
• Assessing the extent to which the current
  manpower is utilised to the advantage of the
  organisation.
• Phasing out the surplus manpower/if any.
• Analysing the requirements of manpower in future
  in the light of expansion plan, retirement of
  personnel.
• Making manpower procurement plan.
• Designing training programmmes for different
  categories of manpower.

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Objectives

• To ensure optimum use of human resource currently
  employed.
• To determine future recruitment level.
• To provide control measures to ensure that
  necessary resources are available as and when
  required.
• To anticipate redudancies and avoide unnecessary
  dismissals.
• To forecast future skill requirements to serve as
  a basis for training and development programmes.

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• To assess future housing needs of employees.
• To cost the manpower component in new projects.
• To decide whether any of enterprise activities be
  off-loaded or subcontracted. (maintenance)
• To control cost aspect of human resource.
• To formulate transfer and promotion policies.

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Process

1. Objectives of manpower planning HRP must be
   integrated with the overall organizational plan.
   The ultimate purpose of HRP should be decided.
2. Analysis of current manpower inventory analysis
   of current manpower supply may be undertaken by
   department, by function, by occupation, or by
   level of skill or qualification.

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• Demand forecasting A proper forecast of
  manpower required in the future ( say after one
  year, two years, three years and so on) must be
  attempted .
• Employment Trends The manpower planning
  committee at the corporate level should make an
  examination of number of employees on the payroll
  during the past five years to know the trend.
• Replacement Needs Need of replacement arises
  due to death , retirement, resignation and
  termination of employees.( supervisory. Skilled,
  managerial, clerical)

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• Productivity Gains in productivity add to the
  growth potential of the organisation.Planning
  for productivity gains has several aspects.
• The first and important one relates to affecting
  gains by improvement in existing manapower
  utilisation.
• The second aspect relates to installation of more
  productive tools , equipments or process.
  (Automation).
• The last aspect relates to the matching of skills
  with the requirements of the jobs.(Job Analysis)

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• Growth and Expansion Expansion of various
  plants and divisions.
• Absenteeism it mean a situation when a person
  fails to come for work when he is scheduled to
  work. Planning expert should consider the rate of
  absenteeism.
• Work study workload analysis.
• Supply forecasting there is two sources of
  supply internal and external.

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• Human Resource audit It gives idea about the
  potential and capabilities of people working in
  an organisation. (management inventories, skill
  inventories)
• Replacement Charts These are meant for listing
  each key position and indicating time when it it
  is likely to be vacated.
• Estimating the Net Human Resource Requirements
  compare the demand forecast with the projected
  internal supply of human resource.

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1. Action Plan for Redeployment /redundancy In the
   case of surplus staff position, employees caan be
   redeployed to other jobs / departments. If it is
   cannot be redeployed , offer golden handshake
   under VRS scheme.
2. Determining Job Requirements of position to be
   filled accurate job description help in finding
   suitable candidates.
3. Employment plan Preparing the programmes of
   recruitment , selection, transfer, promotion.

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1. Training and development programe the talents
   of the employees are not fully productive without
   a systematic T D.
2. Evaluation of effectiveness of HRP

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Objectives of HRP
Demand Supply forecasting
Determine Net Manpower Requirements
Inventory of HR Skills
Redeployment Redundancy Plan
Employment Program
T D Programme
Appraisal of HRP
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Benefits of HRP

1. HRP results in reduced labour costs
2. It is a better basis for planning employee
   development.
3. It enables identification of the gaps of the
   existing manpower.
4. It leads to improvement in the overall business
   planning process.
5. It helps in formulating managerial sucession
   plan.
6. It leads to greater awareness of the importance
   of sound management.
7. It serve as a tool to evaluate the effect of
   alternative manpower action and policies.

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Quantitative aspects of HRP

• Demand forecasting Estimating the requirements
  of different kinds of personnel in future. HRP
  forecast should be the annual budget and
  long-term corporate plan translated in to
  activity levels of each functions and department.
  There are three basic techniques.
• Managerial judgment Used in smaller companies.
  This simply requires manager to sit down, think
  about their future workloads and decide how many
  people they need. It might be done on a

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• bottom-up basis line managers submitting
  proposals
• Top-down approach Forecasts are prepared by the
  top management. These are reviewed and agreed
  with the departmental managers.
• The best way to adopt both the bottom-up and
  top-down approach.

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• Work study technique It can be used when it is
  possible to apply work measurement to know how
  long operations should take and the amount of
  labour required.
• planed output
• Work-load analysis in this , the manpower
  planning expert needs to find out sales forecast,
  work schedules and thus determine the manpower
  required per unit of product.
• Work-force analysis it is necessary to keep
  sufficient margin for absenteeism, labour
  turnover and idle time on the basis of past
  experience.

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• Statistical techniques For long range more
  accurate personnel forecasting.
• Ratio and Trend analysis Calculation on the
  basis of established ratios. It is worked out for
  number of years based on the past records of the
  organisation and future trends are projected on
  these ratios. (supervisory managerial)
• Econometric model it helps in understanding the
  nature of relationships among different variables
  at the different levels. Suitable for large
  organisations. It refers to the science of
  economic measurement.

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• Regression analysis In this human resource
  needs is the dependent variable and independent
  variables are business activity, HR productivity
• Bureck-smith model Forecasting based on the
  selected key variables that affect an
  organisations HR needs.
• En (Lagg G) /x
• Y

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• En estimated level of HR needed in n plan
  period.
• Lagg total business activity of n period in
  terms of value
• G total growth in business activity in n
  period based on the current prices.
• X average productivity improvement in n
  period over the current period.
• Y business activitypersonnel ratio of the
  current year.

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1. Delphi Technique A small group designs
   questionnaire about the problem under study which
   is sent to various experts related to the field.
   Filled up questionnaires are analyzed. If any
   divergence in opinion, a revised questionnaire
   sent to large experts. It will continue until
   some consensus reached.( Fashion trends for next
   year). Here It can be used to know the trends in
   changing job profile personnel profile across
   the country and international level. It helps to
   get experts view in different functional area.

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• Supply forecasting Manpower suply forecasting
  measures the number of people likely to be
  available from within and outside an
  organisation, after making allowance for
  absenteeism, internal movements and promotions,
  wastage and change in work hours and other
  working condition of work.
• Markov Analysis Historical flows of personnel
  (transitions) through the organisation are
  represented by probabilities. (Ref.p174 HRM, L.M
  Prasad)

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1. Simulation techniques It considers alternative
   flows which are examined for effect on future
   manpower supplies. Alternative flows reflect the
   anticipated result of policy or programme changes
   concerning voluntary turnover retirement ,
   promotion etc
2. Renewal analysis this technique future flows
   and supplies of manpower by calculating (i)
   vacancies created by the organisation (ii) the
   results of decision rules governing the filling
   of vacancies.
3. Goal programming The goal to optimize the
   desired stafing pattern subject to a set of
   constraints (salary budget, new recruitment
   permitted.)

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• Human resource inventory It is the cataloguing
  the present and future potentials. It includes
• Skill inventory (non-managerial) Personal data,
  skills-education, job experience, training,
  special achievements, salary, job history,
  potential of employees.
• Management inventory Personal data, work
  history, strength and weakness, career plan,
  promotion potentials, number and type of employee
  managed, total budget managed, special
  achievements.