Human Resource Management Ch 18

Human Resource

The employees or personnel in a business that help it to achieve its goals are called human
resource.

Human Resource Management (HRM)

 HRM is a strategic and coherent approach to the management of an organization’s most

valued assets: the people working there who individually and collectively contribute to
the achievement of its objectives.
 An integrated approach which ensures the efficient management of human resources. It is
part of the overall business plan.

Role/Function of HRM

1) Human Resource Planning

The process of determining and assuring that the organization will have an adequate number
of qualified persons, available at the proper time, performing jobs, who meet the needs of the
business.
 Factors affecting HR planning
 Demand of the product
 Objectives of the business
 Law regarding workers right
 Motivation level
 Technological changes
 Workforce planning---- Full or Part Time, Temporary or Permanent
2) Recruitment and Selection
Recruitment means identifying potential qualified applicants for actual or anticipated job
vacancies. To maker sure that best person is chosen, business must be clear about,
 Job Analysis
A study of what a jobs entails. It contains the skills, training and tasks that are
needed to carry out the job.
 Job Description
Information about Job title, detail of the tasks to be performed, responsibilities,
place in hierarchy, working conditions, indicators to measure performance etc.
 Job Evaluation
Comparing the value of different jobs in terms of skills, responsibilities, tasks
etc. this allows business to decide for wage rate or salary for the job.
 Internal or External Recruitment
Internal means recruiting persons from inside the organization and external
means recruiting persons from outside the organization
Once the applications received then selection process can begin which is,
 Short Listing
 Tests
  Interviews
3) Training, Development and Appraising Staff

 Different Types of Training

 Induction training given to all new recruits.
 On the job training involves instruction on the work place.
 Off the job training outside the work place like workshops

 Development in the form of new challenges and opportunities. Additional

delegation of power
 Appraisal, analysis of performance against preset targets.

4) Developing Appropriate Pay System

Job evaluation identifies the different skills to perform job efficiently, each factor of skills
are awarded with some numbers and total of each job is compared. The job with the highest
number of points is then given highest pay.

5) Measuring and monitoring Staff Performance

 Labor Productivity
 Absenteeism rates.
 Labor turnover
Motivational methods to improve all these indicators.

6) Coordination among Departments

Workforce plans can only be established after discussion with others managers who are in
demand for labor.

7) Handling with day to day employees problems.