Introduction to Human Resources Management

Lecture Outline

Defining human resources management (HRM) Role of Human Resource Management Functions of Human Resources Management Human resource planning and demand forecasting Forces affecting the demand for human resources Job analysis and specification Remuneration and benefits Training and development Termination of employment
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Human Resources Management

Human resource management (HRM) is the management of various activities designed to enhance the effectiveness of an organisations workforce in achieving organisational goals.

Basic Role of the HR Dept.

Identifying HR needs
Attracting human resources Maintaining human resources

Terminating the relationship

Evolution of HRM

Industrial Revolution Taylors Scientific Management World War 1 & the emergence of HRM The Human Relations Movement

HRM Functions

Human resource planning assesses the human resource needs associated with strategic management and helps identify staffing needs. Staffing includes attracting and selecting individuals for appropriate positions. Training and performance evaluation are means of ensuring that employees can contribute to the organisation.
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Compensation involves rewards that will attract, motivate, and retain employees. Workforce perceptions of the organisation and its treatment of employees must be managed.

Job Analysis

Job analysis is the systematic collection and recording of information concerning:

the purpose of a job, its major duties, the conditions under which it is performed, the contact with others that performance of the job requires, and the knowledge, skills, and abilities needed for performing the job effectively.
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A job analysis may be based on information obtained through direct observation, interviews, diaries or questionnaires. A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job. A job specification is a statement of the skills, abilities, education and previous work experience that are required to perform a particular job.
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Methods of Job Analysis

For existing jobs, interviews with employees Interviews with supervisors Observation Combination, interviews & observation Structured questionnaires Employee journals/logbooks
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Job Specification

Outcomes: Job descriptions and job specifications impacts upon:

Recruitment & selection Performance appraisal Remuneration Training & development Job design & redesign

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Forces Affecting Demand for HR

Aspects of the general environment or of the task environment can affect the need for certain types of employees. Changing organisational requirements, such as alterations in strategy plan, may affect demand. Internal workforce changes, such as retirements, resignations and leave of absence affect the need for human resources.
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Demand Forecasting

Judgmental forecasting is based on the opinions of individuals thought to be knowledgeable. Quantitative forecasting relies on numerical data and mathematical models. Technological or qualitative forecasting is aimed mainly at predicting long-term trends in technology and other important aspects of the environment.
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RECRUITMENT
3 objectives: Maximising the pool of applicants at minimum cost

Ensuring compliance by organisation with government regulations

Attracting suitably qualified & skilled applicants

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Methods of Recruitment

Internal promotion Advertisements Employee referrals Employment agencies Executive recruitment (head hunters) Campus interviews Contractors Internet job & career sites
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Selection

Reliability: how much the decision process will consistently measure the same thing Validity: ..whether the decision processes actually measures what it sets out to measure Selection devices: Application forms

Weighted application forms Written tests Selection interview Assessment centres

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Remuneration & Benefits Factors

Skills & Qualification of the Candidate Demand for the skill set in the Market Responsibilty level /Grade Experience Financial Position of the Company Legal Implications

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Remuneration & Benefits

Basic Salary & other Allowances Variable Performance pay/Performance linked pay/Commissions Consultacy fees Concept of flexi Plan/Cafetaria plan

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Training & Development

Choices: Buy skills, build them, or a mixed approach Strategic rationales for training:

Proactive Reactive

Enhancement of employee motivation, commitment & retention

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Training Need Identification

Interview Assessment Performance Appraisal On the Job Observation Discussion with the Supervisor

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Training Methodology

Lecture Method Role Play Dummy Presentations On the Job Training Out Door Training

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Mould employee behaviour to company norms Build consistency of employee actions & organisation goals Improve HR planning, training & succession Improve quality of salary reviews Provide record for dismissal, demotion, grievance, appeal

Performance appraisal & 360 degree feedback

Performance appraisal
360o feedback non-hierarchical method
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HRIS, INTERNET, INTRANETS & EXTRANETS

Better internal communication On-line training & development

Enhanced distribution of HR policy, news, information

Internet recruitment

Widespread electronic systems

Multi-site collaborative work teams, electronically linked

Performance appraisal, including 360O feedback
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Maintenance of HR records

Legal Compliances

Shops & Establishments Registration & Compliance Registration &Compliance under the Factories Act Registration & Compliance under Provident Fund Act Registration and Compliance under the ESI Act Compliance under Mininmum Wages Act Compliance under the Gratuity Act 24 Compliance under the Payment of Bonus Act

The Future of Work

Fewer core employees Increased part-time, casual & temporary staff Teleworking Temporary agency work, short-term labour hires, on-call & contract workers Personnel supply firms Idea of employee as an independent contractor
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Terminating Employment

Retrenchment Redundancy Dismissal Regard needed to:

Regulatory requirements Exit interviews Use of out-placement consultants Effect on HR & other functions of the organisation
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