INTRODUCTION TO HR

GROUP 1
• Ayushi Dasani
• Diksha Sachan
• Pooja Sharma
DEFINITION

Human resource management is concerned with policies and

practices that ensure the best use of the human resources for
fulfilling the organizational and individual goals.
-Edwin B. Flippo
 • It is pervasive in nature as it is present in all
enterprises.
• It is all about people at work, both as individuals and
groups.
NATURE OF HRM • It tries to put people on assigned jobs in order to
produce good results.
• It helps an organization meet its goals in the future by
providing for competent and well-motivated
employees.
IMPORTANCE
OF HRM
OBJECTIVES OF HRM

Objectives are pre-determined ends or goals at which

individual or group activity in an organization us aimed. It
can be divided into 2 parts:

Objectives:
• Creation of a motivated workforce to accomplish the
organizational goals.
• To bring out maximum development of the members of
an organization.
 HR PRACTICES

• Attract and retain employees

• Train people for challenging roles

• Promote team spirit
• Increase productivity and profits

• Improve job satisfaction

• Develop skills and competencies
 LINKING OB AND HR

Organizational Behaviour as a concept was developed out of the human

resources department of major corporations and generally operates as a small
sector of it.

OB is the studies of employees working in the organisation and their

interaction with the organization while HRM is concerned with recruitment,
selection, compensation, training and retention of employees in the
organization.

The subject matter of OB group dynamics, leadership, power and

organizational structure on the other hand subject matter of HRM is
Personnel Management, Industrial Relation and Labour Compensation.

HRM is the application of concepts of OB in day to day human affairs.

 Adapting to Innovation:
Technology is constantly changing. The challenge for business owners is
getting employees to embrace innovation and learn new technology.
Retaining Talented Employees
Competition for talented employees is fierce. Startups and small
companies don’t have big budgets for retirement plans, insurance plans,
that their larger competitors do. Employee turnover is expensive and
negatively impacts business growth.
CHALLENGES
TO HRM Workplace Diversity
Ethnic and cultural differences. The responsibility of HR Manager is to
protect employees from harassment.
Recruitment and Selection:
Finding a suitable candidate for the job from a large number of
applicants is a basic problem for the human resource manager.
Dealing with Trade Union:
Union members are to be handled skillfully as they are usually the
people who oppose the company policies and procedures..
 Maintaining privacy and managing vital business
information
Ensuring that your employees are well trained in securing data
and Providing employee training on how to secure data and
preventing any breach of privacy is a key challenge for human
resources
Performance Appraisal:
If employees are not getting proper feedback from HRM, it
CHALLENGES may affect their future work. A scientific appraisal technique
TO HRM according to changing needs should be applied and the quality
of it should be checked from time to time.
Emotional and Physical Stability of Employees:
Providing with wages and salaries to employees is not enough
in today’s world. The HR manager should maintain emotional
balance of employees. They should try to understand the
attitude, requirements and feelings of employees, and motivate
them.
 HUMAN RESOURCE
PLANNING
Bulla and Scott, defined human resource planning as the process for ensuring that
the human resource requirements of an organization are identified, and plans are
made for satisfying those requirements.
HRP CONSISTS OF A SERIES OF ACTIVITIES
• Forecasting future manpower requirements:
Either in terms of mathematical projections of trends or in terms of
judgmental estimates based upon the specific future plans of a company
• Making an inventory of present manpower:
Resources and assessing the extent to which these resources are employed
optimally
• Anticipating manpower problems :
By projecting present resources into the future and comparing them with
the forecast of requirements, both quantitatively and qualitatively
• Planning the necessary programmes of requirements:
Selection, training, development, utilization, transfer, promotion,
motivation and compensation to ensure that future manpower
requirements are properly met.
 BENEFITS OF HRP
Promotion opportunity –
Reservoir of talent
It gives idea of type of tests
and to be used and interview
techniques of future of HR
Cut costs (by preparing an
appropriate budget for all cost
involved in quarter, school,
medical help etc.)
It provides scope for
advancement and
development of employees
through training and
development
Succession planning (Hot list
of promising candidates who
are rolled over various jobs
and assessed and assisted
continuously when time comes
such people replace the their
bosses without any problem)
Prepare people for future and
help in planning job
assignments.
STRATEGY OF HUMAN RESOURCE
PLANNING

• Assess current HR capacity

• Forecast HR requirements
• Develop talent strategies
• Review and evaluate
 PROCESS
OF HUMAN
RESOURCE
PLANNING
Analyzing Organizational Objectives:
The objective to be achieved in future in various fields such as marketing, finance, expansion gives the idea
about the work to be done in the organization.

Inventory of Present Human Resources:

The current number of employees, their capacity, performance and potential can be analyzed. To fill the
various job requirements, the internal sources and external sources can be estimated.

Forecasting Demand and Supply of Human Resource:

• The human resources required at different positions according to their job profile are to be estimated.

• The available internal and external sources to fulfill those requirements are also measured.
• There should be proper matching of job description and job specification of one particular work, and the
profile of the person should be suitable to it.
Estimating Manpower Gaps:
• Comparison of human resource demand and human resource supply will provide with the surplus or deficit of
human resource.
• Deficit represents the number of people to be employed, whereas surplus represents termination.

Formulating the Human Resource Action Plan:

• The human resource plan depends on whether there is deficit or surplus in the organization.
• In case of deficit the plan may be finalized either for new recruitment, training, interdepartmental transfer.
• In case of surplus voluntary retirement schemes and redeployment.

Monitoring, Control and Feedback:

• It mainly involves implementation of the human resource action plan.
• Human resources are allocated according to the requirements, and inventories are updated over a period.
• The plan is monitored strictly to identify the deficiencies and remove it.
FACTORS AFFECTING HRP
 DEMAND AND SUPPLY FORECASTING

What is Forecasting ?
Process of predicting a future event on historical data.

HR Forecasting attempts to determine the supply and demand for various types of
human resources, and to predict areas within the organization where there will be
labour deficits or surpluses.

There are three major steps to forecasting:

• 1. Forecasting the demand for labour
• 2. Determining labour supply
• 3. Determining labour surpluses and deficit
 DEMAND FORECASTING

Demand forecasting is a quantitative aspect It is the process of estimating the future

of human resource planning. requirement of human resources of all
kinds and types of the organisation.
 FACTORS OF DEMAND FORECASTING

• Employment trend in the organisation for at least last five years to be traced to determine the future needs.

• Organisation has to find out the replacement needs due to retirement, death, resignation, termination etc.

• To improve productivity organisation needs better employees with skills and potential. Productivity leads
to growth but depends on the demands for the product in the market. Higher demand may lead to more
employment of skilled personnel’s.

• Expansion of the organisation leads to hiring of more skilled persons. The base of human resource forecast
is the annual budget. Manufacturing plan depends upon the budget.
 MAJOR METHODS OF DEMAND
FORECASTING

• Executive Judgment:
Is suitable for smaller enterprises under this method the executives sit together and determine
the future manpower requirements of the enterprise and submit the proposal to the top
management for approval. This approach is known as ‘bottom up’ approach.

• Work Load Forecasting:

Labour requirement is determined. The workload becomes the base for workforce analysis for
the forthcoming years. This method is also known as work study technique. Here working
capacity of each employee is calculated in terms of man-hours is calculated.
(a) Planned annual production = 2, 00,000 units

(b) Standard man-hours required for each unit = 2

Hours

(c) Planned man-hour needed for the year (a x b) =

4, 00,000 hrs.

(d) Planned annual contribution of an employee =

EXAMPLE
2000 hrs.

(e) No. of employees required ————- (c/d) = 4,

00,000/2000 = 200

This method is useful for long term forecasting.

 STATISTICAL TECHNIQUES

• Ratio Trends Analysis :

Under this method the ratios are calculated for the past data related to number of employees of each category i.e.
production, sales and marketing levels, work load levels.

• Regression Analysis:

Regression analysis is used to forecast demand for human resources at some point of time in future by using
factors such as sales, production services provided etc.
This method is used when independent and dependent variables are functionally related to each other. Nowadays
computers are used to solve regression equations for demand forecasting.
 SUPPLY FORECASTING:

Supply forecasting means to make an estimation of

supply of human resources taking into consideration the
analysis of current human resources inventory and
future availability.
 SOURCES OF SUPPLY – INTERNAL AND
EXTERNAL
• Staffing table:
Shows number of employees in each job. It tries to classify employees on the basis of age, sex, position, category,
experience, qualification, skills etc.

• Markov analysis:
This technique uses historical rates of promotions, transfers, and turnovers to estimate future availabilities in workforce.

• Skill inventory:
Is an assessment of the knowledge, skills, abilities, experience and career aspiration of the current employees. The record
should be updated in every 2years including changes such as new skills, additional qualifications, changed job duties etc.

• Replacement chart:
Shows the profile of job holders department wise and offers the snap short of who will replace whom if there is a job
opening.
 RECENT TRENDS IN HR

Modernize recruitment approach using social media:

Knowing the social media platforms your candidates use most often can help the organization in
achieving the aim.

Use chat bots as recruiters:

• Use of chat bots to perform basic tasks is an emerging recruitment trend these days.
• Chatbots can instantly engage with applicants and help arrange in-person job interviews once they
complete the process of pre-screening.

• It helps eliminate bias.

• It will help to access the candidates based on their requirements without favoritism.

Adopt video interviews:

Video interviewing lets recruiters interview more of job seekers than thought ever before.
Increased Migration to the Cloud:
With cloud-based HRMS, payroll, and talent management services, as well as financials and other
ERP solutions offerings in the cloud

Remote staff:
It is easier than ever for employees to work from home, a café, or another country. A study from 2018
showed that 70% of global professionals work remotely at least once a week. It is expected that half of
at least the American workforce will work freelance by 2020.

Adherence Measurements:
• Adherence factor, or signed-on time, is a measurement of how much time an individual is available
to handle calls versus the time he or she was scheduled to handle calls.

• Adherence consists of all plugged-in time, including talk time, after call work (wrap-up) time,
waiting for the next call, and necessary outgoing calls
Digitized rewards and recognition
Digital recognition is a trend you that HR Managers are implementing by using the social platforms
such as Facebook, emails, and LinkedIn to recognize and reward the contribution of employees.

Surge of People Analytics

• With its ability to produce insights into the workforce, help companies retain talents and spot
employees who are likely to leave, the use of People Analytics is becoming prevalent
• Data provided allows HR professionals to have a deep understanding of employee’s needs,
concerns.
 HR PRACTICES FOLLOWED BY MNC’S

• Volkswagen attempts to ensure that the salaries of its expatriates fit

into the social structure of host country.
• Lockheed Aircraft has set up its own television broadcasting station
in Saudi Arabia for its 4000 expatriates there.
• INCO has built schools, churches, hospital supermarkets, a golf
course, yacht club, motels and restaurants for its 2000 expatriates
in Indonesia.
 REFERENCES

https://www.atlasstaffing.net/blog/10-todays-common-human-resource-challenges
http://www.yourarticlelibrary.com/human-resources/major-challenges-faced-by-human-resource-
managers/32354
http://www.dypatil.edu/schools/management/wp-content/uploads/2015/11/A-Study-of-the-
Effectiveness-of-Human-Resource-Information-System-on-an-Organisation-with-special-reference-to-
Macleod%E2%80%98s-Pharmaceutical-Ltd-Shikha-Singh.pdf
http://www.yourarticlelibrary.com/human-resources/steps-in-human-resource-planning-explained-
with-diagram/32358
https://www.netatwork.com/ten-hr-technology-trends-2018/
. http://www.yourarticlelibrary.com/essay/human-resource-management/essay-on-recent-trends-in-
hrm-in-india/75378