HUMAN RESOURCE

MANAGEMENT
 Competitive challenges and HR
1. Going global
2. Embracing new technology
3. Managing change and organisation
culture
4. Developing human capital
5. Responding to the market
6. Containing costs
 Downsizing
 Outsourcing and employee leasing
 Enhancing productivity
 Other challenges faced
 Demographic and Employee concerns
 Demographic changes
 Diversity of backgrounds
 Age distributions
 Gender distribution
 Rising level of education
 Cultural changes
 Concern for employee rights
 Changing attitude towards work
 Balancing work and family
 Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing
Motivation
Controlling Maintenance
Integration
 Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
 Operative functions of HR (contd.)

Health, Safety, Welfare,

MAINTENANCE Social security

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation, Collective
bargaining
 Scope of HRM
 Labour or Personnel aspect –
Recruitment, Selection, Transfer,
Promotion etc.
 Welfare aspect – Housing, Lunch room,
Health and Safety, Transport,
education etc.
 Industrial relation aspect – Union
Management relations, Negotiation,
Grievance handling etc.
HRM Environment - External

Technology

Professionalism Economic

HRM

Social & cultural Political & legal

Union
HRM Environment - Internal

Policies

HRM

Organisational
Mission
Conflict
 HRM Policies
 Policy – is predetermined course of action
established to guide the performance of work
towards accepted objectives.

 Importance -:

(1) Clear Thinking

(2)Uniformity & Consistency of Admin.
(3)Sence of Security
(4)Control
 Types of HR Policies
 Originated policies – Made by top
Management.
 Appealed policies – Made on request to handle
certain situation, or if certain aspects are
missing in the main policy.
 Imposed policies – Imposed by Govt & Legal
authorities.
 General policies – Do not relate any issue, may
represent the priority of Top Mgmt. (WPM).
 Specific Policy – Related to specific issues
like Recruitment, Transfer, Promotion etc.
 System Approach to HRM
 Systematic functioning as per the external
environment.
 Org can’t change external environment but
try to use it to the fullest extent.
 Need to fulfill various demands i.e.
(1) Customer demand – Quality product,
Reasonable price.
(2) Employee demand – Higher wages, stable
employment.
(3) Govt demand – Payment of taxes, Compliance
of various laws.
Thus, proper management of all the activities is
crucial.
 HRM and Relations with other
Departments

 Departments – Marketing, Finance,

Production

 Relationship on the basis of – Growth &

Development, Procurement, Benefits.
 Human Resource Planning
 Meaning – Assessment of Human Resource
Requirements & also the time & stages of
requirement.

 Right person ---At Right place ---At Right

time.

 Definition – HRP is defined as the process by

which management determines how an org
should move from its current manpower
position to its desired manpower position.
 Objectives of HRP
 To ensure optimum use of existing HR.
 To forecast future requirement for HR.
 To provide control measures to ensure
that necessary HR are available as and
when required.
 To asses the surplus and shortage of
HR. (Downsizing).
 To anticipate the impact of technology
on jobs and HR.
 Objectives of HRP – Contd.
 To determine the level of Recruitment
and Training.
 To estimate the cost of HR and Housing
needs of employees. (Or HRA).
 To provide the basis of MDP.
 To meet the needs of expansion and
diversification programmes.
 Importance of HRP
 Future Personnel needs

 Creating highly talented personnel

 International Strategies

 Foundation of personnel function

 Resistance to change and move

Factors Affecting HRP
Organisational
growth cycle
& planning

HRP

Environmental
Outsourcing
Uncertainties
 HRP Process
Environment

Org objectives & policies

HR Need Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus Shortage
 HRP Process (Contd.)
 Environmental Scanning - :

1) Economic factors
2) Technological Changes
3) Demographic changes
4) Political and legislative issues
5) Social concerns
 HRP Process (Contd.)
 Org objectives and policies-:

 HR plans need to be based on org

objectives, this implies that the
objectives of the HR plan must be
derived from Org objectives.
 HRP Process (Contd.)
 HR Demand forecast-:

 The process of estimating the future quantity

and quality of people required.
 The basis of forecast will be annual budget
and long term corporate plans.
 Demand forecasting must consider several
factors like internal (Budget constraints,
employee separations, production level) and
external (Competition, laws, change in
technology).
 HRP Process (Contd.)
 Demand forecasting techniques are-:
 Managerial judgment
 Ratio trend analysis
 Delphi technique
 Regression analysis

 HR Supply forecasting-:

 Supply forecasting measures the number of

people likely to be available from within and
outside an org.
 HRP Process (contd.)
 HR Programming-:
 Once the Org’s HR Demand and Supply
are forecast, the two must be
reconciled or balanced in order that
vacancies can be filled by the right
employee at the right time.

 HR Plan Implementation-:
 Implementation requires converting an
HR plans into action. (Recruitment,
Training, Succession plan etc.)
 HRIS

 HRIS is a database system that keeps

important information about employees
in a central and accessible location.

 The information provided by HRIS can

help the organisation to gain
competitive advantage. (SWOT of org.)
Information categories of HRIS
 Basic non confidential information-:

Employee name, Org name, Work

location

 General non confidential information -:

Social security number, Position related

information (codes, tittles, effective
date)
Info categories of HRIS (contd.)

 General information with salary -:

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

 Confidential information -:
performance evaluation grade, warning,
punishment e.g suspension, personal
issues e.g legal suites
Info categories of HRIS (contd.)

 Extended information -:

Information of previous category, Bonus

Projected salary increase ,
Performance evaluation.
 Job Analysis
 Job analysis is the process of collecting
and analysing job related information to
prepare JD & JS

Job Analysis

Job Description Job Specification

 Job Analysis (contd.)
 Job description -: A statement
containing items such as Job title,
Location, Job summary, Working
condition etc.
 Job specification -: A Statement of
human qualifications necessary to do
the job. Usually contains items such as
Education, Experience, Training,
Communication skills etc.
 Purposes of Job Analysis

 HRP
 Recruitment & Selection
 Training & Development
 Remuneration
 Safety & Health
 Performance Appraisal
 Methods of Collecting Job Data

 Observation
 Interviews
 Questionnaire
 Technical Conference Method
Process of Job Analysis
Strategic Choices

Gather Information

Process Information

Job Description

Job Specification
 Process (contd.)
 Strategic Choices –:
1. Employee Involvement
2. Level of Details
3. When and How often
4. Past oriented and Future oriented

 Gather Information –:
1. What type of Data to Collected (machine,
tools & work activities)
2. Data collection methods
3. Who to collect Data (Trained analyst,
Supervisors, Job incumbents)
 Process (contd.)
 Information Processing -:
How collected information will be used
in forming Job Description and Job
Specification.

 Job description –:

 Job Specification -:
 JOB DESIGN

is a conscious effort to organise tasks,

duties and responsibilities into a unit of
work to achieve a certain objective.
 STEPS IN JOB DESIGN
 1.SPECIFICATION OF INDIVIUAL
TASKS
 2. SPECIFICATION OF METHODS OF
PERFORMING EACH TASKS
 3.COMBINATION OF TASKS INTO
SPECIFIC JOBS TO BE ASSIGNED TO
INDIVIUALS.
 JOB REDESIGN

is a conscious effort to re-organise

tasks, duties and responsibilities
into a unit of work to satisfy both
technological and human
considerations simultaneously.
 FACTORS AFFECTING JOB
DESIGN
 1.ORGANISATIONAL FACTORS
*CHARACTERISTICS OF TASK
*WORK FLOW
*ERGONOMICS
*WORK PRACTICES
2.ENVIORNMENTAL FACTORS
*EMPLOYEE ABILITY & AVAILABILITY
*SOCIAL & CULTURAL EXPECTATIONS
 CONT. WITH FACTORS
 3.BEHAVIORAL FACTORS

*FEEDBACK
*AUTONOMY
*USE OF ABILITIES
*VARIETY.
 JOB DESIGN APPROCHES

*JOB ROTATION
 moving from one job to another

*JOB ENGINEERING
FOCUS ON
TASKS,METHODS,LAYOUT,STANDARDS,MACHINE
S.BASED ON TIME & MOTION STUDIES.
 CONT. WITH APPROCHES
 JOB ENLARGEMENT
EXPANSION OF NO. OF DEFFERENT TASKS
PERFORMED BY EMPLOYEE IN A SINGLE JOB.
IT LEADS TO MOTIVATION DUE TO 5 FACTORS-
1.TASK VARIETY
2.MEANINGFUL WORK MODULE
3.ABILITY UTILISATION
4.WORKER PACED CONTROL
5.PERFORMANCE FEEDBACK
 CONT. WITH APPROCHES
 JOB ENRICHMENT

ADDING MORE MOTIVATORS TO A JOB TO MAKE

IT MORE REWARDING.JOB BECOMES ENRICHED
WHEN IT GIVES JOB HOLDER MORE DECISION-
MAKING,PLANNING & CONTROLLING POWERS.

*
 FEATURES OF ENRICHED JOB
1.DIRECT FEEDBACK
2.CLIENT RELATIONSHIP
3.NEW LEARNING
4.SCHEDULING OWN WORK
5.UNIQUE EXPERIENCE
6.CONTROL OVER RESOURSES
7.DIRECT COMMUNICATION
8.PERSONAL ACCOUNTABILITY.
SNOWBALL EFFECT-CO. HV FIXED AMT. OF
AUTHORITY TO DISTRIBUTE.ENRICHING ONE’S
JOB MEAN TAKING AUTORITY AWAY FROM
ANOTHER.
 ISSUES IN JOB DESIGN
1.TELECOMMUNICATING
2.ALTERNATIVE WORK PATTERN
3.TECHNOSTRESS
4.TASK REVISION
5.SKILL DEVELOPEMENT
 Recruitment
 The process of finding and attracting
capable applicants for employment. The
process begins when new recruits are
sought and ends when their applications
are submitted. The result is a pool of
applicants from which new employees
are selected.
 Recruitment is a process of inviting
applications from prospective
employees.
 Recruitment is a positive process.
 OBJECTIVES
1.DETERMINE THE PRESENT & FUTURE
REQUIREMENT
2.INC. THE POOL OF CANDIDATES AT MIN. COST
3.HELP INC. THE SUCCESS RATE OF SELECTION
PROCESS BY REDUCING THE NO. OF
UNDERQUALIFIED JOB APLICANTS
4.MEET ORGANISATION’S LEGAL & SOCIAL
OBLIGATION.
5.PREPARING POTENTIAL JOB APPLICANTS
6.EVALUATE THE EFFECTIVENESS OF ALL TYPES OF
SOURCES.
7.INC. ORG. & INDIVIUAL EFFECTIVENESS
 FACTORS AFFECTING
RECRUITMRNT
*EXTERNAL FACTORS
1.DEMAND & SUPPLY
2.UNEMPLOYEMENT RATE
3.LABOR MARKET
4.POLITICAL-SOCIAL
5.SONS OF SOIL
6.IMAGE
 CONT .WITH FACTORS
 INTERNAL FACTORS
1.RECRITMENT POLICY
2.HRP
3.SIZE OF FIRM
4.COST
5.GROWTH & EXPANSION
Recruitment Process
PLANNING

STRATEGY DEVELOPEMENT

SEARCHING

SCREENING

Evaluating & CONTROL

 1.PLANNING
*NO. & TYPE OF APPLICANTS TO BE
CONTACTED
2.STRATEGY DEVELOPMENT
*MAKE OR BUY
*WHR TO LOOK
3HOW TO LOOK
 Sources of Recruitment
 Internal Sources -:
Transfer , Promotions.

 External Sources-:
Advertisements , Online recruitment
agencies, Educational Institutions,
Placement Agencies, Competitors,
Employment Exchange, Labour
Contractors, Recruitment at factory
Gate.
 3.SEARCHING
*SOURCE ACTIVATION-VACANY EXIST
*SELLING
4.SCREENING
5.EVALUATION & CONTROL
 Recruitment Ads
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 Selection
 Selection is the process of picking individuals
(out of the pool of job applicants) with
requisite qualifications and competence to fill
jobs in the organisation.
 PROCESS OF DIFFERNTIATING BETWEEN
APPLICANTS IN ORDER TO IDENTIFY THOSE
WITH A GREATER LIKELIHOOD OF SUCCESS IN A
JOB.

 Selection has a a negative component in

its process i.e rejection / elimination.
 Selection Procedure
 Preliminary Interview-eliminate unqualified
applications
 Selection Test-
ability,aptitude,personality,interest,graphology,medical.
 Employment Interview-1-1,sequential,panel
 Reference Check and Background
Analysis
 physical Examination
 Final Approval/job offer
 Contract of employment
 Evaluation
 Types of Interview
Informal Interview
 Formal Interview
 Depth Interview
 Stress Interview
 Induction Or Orientation
 Planned introduction of employees to
their jobs, their co – workers and the
organisation.

 Orientation also called Induction, is

designed to provide a new employee with
the information he or she needs to
function comfortably and effectively in
the organisation.
 Objectives of Induction
 To help new comer overcome his natural
shyness and nervousness in meeting new
people in the environment.
 To develop among the newcomers a
sense of belonging and loyalty to the
organisation.
 To develop a close and cordial
relationship between newcomers and the
old employees and their supervisor.
 Objectives (contd.)
 To ensure that the newcomers do not
form negative or false impression and
attitude towards the organisation or
the job because first impression is the
last impression.
 To give newcomers necessary
information such as leave rules, rest
period, locker room etc.
 Advantages of Formal Induction
 Helps in build up a two way channel of
communication between management and
workers.
 Proper induction facilitates informal
relations and teamwork among
employees.
 Effective induction helps to integrate
the new employees into the organisation
and to develop the sense of belonging.
 Types of Induction Programme
 Formal
 Informal
 Individual
 collective
Contents of Induction Programme
 History and operation of company
 Products and services of company
 Policies and procedures of company
 Grievance procedure
 Benefit and services for employees
 Opportunities for training and
development, promotion, transfer etc.
 Placement

 Placement refers to the allocation of

people to jobs. It includes initial
assignment of new employees and
promotion, transfer, or demotion of
present employees.
 Placement Problems
 Difficulty with the placement is that
we tend to look at the individual but
not at the job.

 Job in this context may be classified

into three categories.
1. Independent
2. Sequential
3. Pooled
 Training & Development

 Training is an attempt to improve

current or future employee
performance by increasing an employees
ability to perform through learning,
usually by changing the employee’s
attitude or increasing his or her skills
and knowledge.
 Training refers to the process of
imparting specific skills. (Employees)
 T&D

 Development refers to learning

opportunities designed to help
employees grow. (Executive)

 Education is theoretical learning in

classroom.
 T&D
 The need for training and development
is determined by the employee’s
performance deficiency computed as
follows-:

Training & Development need = Standard

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

 Education -:
1.Theoretical Orientation,
2. Classroom learning,
3. General Concepts,
4. Broad Perspective.
 Inputs in T & D

 Skills
 Education
 Development
 Ethics
 Attitudinal Changes
 Decision making and Problem solving
skills
 T & D as a source of Competitive
Advantage

 T & D offer competitive advantage to a

firm by removing performance
deficiencies, making staff stay long,
minimising accidents, Scrap & damage
and meeting future employees needs.
 METHOD OF CASE ANALYSIS
WHAT IS A CASE?
DESCRIPTION OF MGT. PROBLEM /
SITUATION AS VIEWED TO A DECISION
MAKER.IT IS A TOOL INVOLVING A
DISCUSSION AROUND THE CASE &
PRESENTS
FACTS,EVENTS,CIRCUMSTANCES
SURROUNDING A SITUATION.
 OBJECTIVES OF CASE ANALYSIS

1. TO INC. UNDERSATNDING OF STUDENTS OF

WHAT MANAGER SHOULD & SHOULD NOT DO
IN GUIDING A BUSINESS TO SUCCESS.
2. TO BUILD STUDENTS’S SKILLS IN
CONDUCTING STRATEGIC ANALYSIS IV A
VARIETY OF SITUATIONS, COMPANIES &
INDUSTRIES.
3. TO PROVIDE STUDENTS VALUABLE PRACTICES
IN DIAGNOSTNG ISSUES,EVALUATING
ALTERNATIVES WD HLP OF SWOT BASED ON
REALITIES.
 CONT. WITH OBJECTIVES

4.TO ENHANCE STUDENTS SENSE OF

BUSINESS JUDGEMENTS

5.TO PROVIDE IN-DEPTH EXPOSURE

TO VARIETY OF COMPANIES &
INDUSTRIES ,THEREBY GAINING
SOMETHING CLOSE TO ACTUAL
BUSINESS EXPERIENCE.
 HOW TO ANALYSE A CASE
1.READ THE CASE MATERIAL QUICKLY TO GET
FAMILARITY.
2.READ THE CASE A SECOND TIME
3.READ THE EXHIBITS,APPENDICS CAREFULLY
4.STUDY THE CASE
5.IDENTIFY STRATEGIC ISSUES
6.DIAGNOSE KEY ISSUES
7.CHECK THE DIAGNOSIS
8.SUPPORT DIAGNOSIS & OPINIONS WITH
REASONS & EVIDENCE
9.CHECK OUT CONFLICTING OPINIONS
10.START ANALYSIS OF ISSUES
 CONT. WITH CASE ANALYSIS
11.MAKE NOTES OF INFO. REQUIRED TO SOLVE
PROBLEM
12.GENERATE ALTERNATIVE SOLUTIONS
13.EVALUATE ALTERNATIVE SOLUTIONS
14.RANK OF SOLUTIONS
15.SELECT THE BEST SOLUTION
16.PREPARE AN ACTION PLAN
17.COMMUNICATE THE RESULTS TO CONCERNED
PARTIES.