Description
HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives
HUMAN RESOURCE MANAGEMENT
1
INDEX
HUMAN RESOURCE MANAGEMENT ( H R M )
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
HUMAN RESOURCE DEVELOPMENT
TEAM EFFECTIVENESS
HUMAN RESOURCE PLANNING ( H R P )
JOB ANALYSIS
JOB DESCRIPTION
JOB SPECIFICATIONS
JOB EVALUATION
JOB DESIGN
DESIGNING JOBS – MOTIVATING JOBS
JOB SATISFACTION
WORK SAMPLING
RECRUITMENT & SELECTION
TRAINING & DEVELOPMENT
INDUCTION & ORIENATION
PERFORMANCE APPRAISALS
INCENTIVES BASED COMPENSATION
HUMAN RESOURCE AUDIT
MOTIVATION THEORIES
MORALE
PERSONNEL POLICIES
WORKERS’ PARTICIPATION IN MANAGEMENT
UNIONS
ORGANIATIONAL DOWNSIING
MEANING OF ORGANIATION STRUCTURE
HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 – Integrati on
“HRM is a series of integrated decisions that form the employment relationships; their
quality contributes to the ability of the organizations and the employees to achieve their
objectives.”
Definition 2 – Infl uenci ng
“HRM is concerned ith the people dimensions in management. !ince every organization is
made up of people" acquiring their services" developing their s#ills" motivating them to
higher levels of performance and ensuring that they continue to maintain their commitment
to the organization are essential to achieving organizational objectives. $his is true"
regardless of the type of the organization % government" business" education" health"
recreational" or social action.”
Definition 3 – Appl i cabi l i ty
“HRM planning" organizing" directing and controlling of the procurement" development"
2
compensation" integration" maintenance and separation of human resources to the end that
individual" organizational and social objectives are accomplished.”
MEANING OF HRM: -
HRM is management function that helps managers to recruit" select" train and develop
members for an organization. &bviously HRM is concerned ith the people's dimensions in
organizations. HRM refers to set of programs" functions" and activities designed and carried
out
Coe e!e"ent# of HRM
• $eo%!e: &rganizations mean people. (t is the people ho staff and manage
organizations.
• M&n&'e"ent: HRM involves application of management functions and principles for
acquisitioning" developing" maintaining and remunerating employees in organizations.
• Inte'&tion ( Con#i#ten)*: )ecisions regarding people must be integrated and
consistent.
• Inf!+en)e: )ecisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
• A%%!i)&,i!it*: HRM principles are applicable to business as ell as non*business
organizations too" such as education" health" recreation and the li#e.
O-.ECTI/ES OF HRM: -
+. So)iet&! O,0e)ti1e#: $o be ethically and socially responsible to the needs and
challenges of the society hile minimizing the negative impact of such demands upon the
organization.
,. O'&ni2&tion&! O,0e)ti1e#: $o recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization ith
its primary objectives.
-. F+n)tion&! O,0e)ti1e#: $o maintain department's contribution and level of
services at a level appropriate to the organization's needs.
.. $e#on&! O,0e)ti1e#: $o assist employees in achieving their personal goals" at
least in so far as these goals enhance the individual's contribution to the organization. $his
is necessary to maintain employee performance and satisfaction for the purpose of
maintaining" retaining and motivating the employees in the organization.
SCO$E OF HRM: -
/rom Ent* to the E3it of an employee in the organization
!cope of HRM can be described based on the folloing activities of HRM. 0ased on these
activities e can summarize the scope of HRM into 1 different categories as mentioned
belo after the activities. 2ets chec# out both of them.
HRM A)ti1itie# –
+. HR 3lanning
,. 4ob 5nalysis
-. 4ob )esign
.. Recruitment 6 !election
7. &rientation 6 3lacement
8. $raining 6 )evelopment
1. 3erformance 5ppraisals
9. 4ob :valuation
;. :mployee and
mmunication
+,. ?elfare
+-. !afety 6 Health
+.. (ndustrial Relations
4 C&te'oie# of S)o%e of HRM
+. (ntroduction to HRM
,. :mployee Hiring
-. :mployee andmpensation" >areer 6 3romotion" $raining 6 )evelopment and
(ndustrial Relations.
b. $e#onne! $o)e6+e#: Relating to manpoer planning procedures" recruitment
and selection procedures" and employment procedures" training procedures" management
development procedures" performance appraisal procedures" compensation procedures"
industrial relations procedures and health and safety procedures.
,. F+n)tion&! Ro!e: $he personnel function interprets and helps to communicate
personnel policies. (t provides guidance to managers" hich ill ensure that agreed policies
are implemented.
-. Se1i)e Ro!e: 3ersonnel function provides services that need to be carried out by full
time specialists. $hese services constitute the main activities carried out by personnel
departments and involve the implementation of the policies and procedures described
above.
Ro!e of HR M&n&'e# (To6&*)
+. H+"&nit&i&n Ro!e: Reminding moral and ethical obligations to employees
,. Co+n#e!o: >onsultations to employees about marital" health" mental" physical and
career problems.
-. Me6i&to: 3laying the role of a peacema#er during disputes" conflicts beteen
individuals and groups and management.
.. S%o7e#"&n: $o represent of the company because he has better overall picture of his
company's operations.
7. $o,!e" So!1e: !olving problems of overall human resource management and long*
term organizational planning.
8. C8&n'e A'ent: (ntroducing and implementing institutional changes and installing
organizational development programs
1. M&n&'e"ent of M&n%o9e Re#o+)e#: 0roadly concerned ith leadership both in
the group and individual relationships and labor*management relations.
Ro!e of HR M&n&'e# (F+t+e)
+. 3rotection and enhancement of human and non*human resources
,. /inding the best ay of using people to accomplish organizational goals
:
-. (mprove organizational performance
.. (ntegration of techniques of information technology ith the human resources
7. @tilizing behavioral scientists in the best ay for his people
8. Meeting challenges of increasing organizational effectiveness
1. Managing diverse or#force
FUNCTIONS OF HRM A5ONG ;ITH O-.ECTI/ES
HRM O,0e)ti1e# S+%%otin' HRM F+n)tion#
!ocial &bjectives A-B 2egal >ompliance
0enefits
@nion Management Relations
&rganizational &bjectives A1B Human Resource 3lanning
:mployee Relations
Recruitment 6 !election
$raining 6 )evelopment
3erformance 5ppraisals
3lacement 6 &rientation
:mployee 5ssessment
/unctional &bjectives A-B 3erformance 5ppraisals
3lacement 6 &rientation
:mployee 5ssessment
3ersonal &bjectives A7B $raining 6 )evelopment
3erformance 5ppraisals
3lacement 6 &rientation
>ompensation
:mployee 5ssessment
M&n&'ei&! F+n)tion# of HRM
+. $!&nnin': 3lan and research about age trends" labor mar#et conditions" union
demands and other personnel benefits. /orecasting manpoer needs etc.
,. O'&ni2in': &rganizing manpoer and material resources by creating authorities and
responsibilities for the achievement of organizational goals and objectives.
-. St&ffin': Recruitment 6 !election
.. Die)tin': (ssuance of orders and instructions" providing guidance and motivation of
employees to follo the path laid*don.
7. Conto!!in': Regulating personnel activities and policies according to plans.
&bservations and comparisons of deviations
O%e&tion&! F+n)tion# of HRM
+. $o)+e"ent: 3lanning" Recruitment and !election" (nduction and 3lacement
,. De1e!o%"ent: $raining" )evelopment" >areer planning and counseling.
-. Co"%en#&tion: ?age and !alary determination and administration
.. Inte'&tion: (ntegration of human resources ith organization.
7. M&inten&n)e: !ustaining and improving or#ing conditions" retentions" employee
communication
8. Se%&&tion#: Managing separations caused by resignations" terminations" lay offs"
death" medical sic#ness etc.
CHA55ENGES OF HRM IN INDIAN ECONOM< o CHA55ENGES OF
MODERN MANAGEMENT
+. G!o,&!i2&tion: - Croing internationalization of business has its impact on HRM in
terms of problems of unfamiliar las" languages" practices" competitions" attitudes"
management styles" or# ethics and more. HR managers have a challenge to deal ith
=
more functions" more heterogeneous functions and more involvement in employee's
personal life.
2> Co%o&te Re-o'&ni2&tion#: - Reorganization relates to mergers and
acquisitions" joint ventures" ta#e over" internal restructuring of organizations. (n these
situations" it is difficult to imagine circumstances that pose a greater challenge for HRM
than reorganizations itself. (t is a challenge to manage employees' an Ne9 O'&ni2&tion&! fo"#: - $he basic challenge to HRM comes from the
changing character of competitions. $he competition is not beteen individual firms but
beteen constellations of firm. Major companies are operating through a comple< eb of
strategic alliances" forgings ith local suppliers" etc. $hese relationships give birth to
completely ne forms of organizational structure" hich highly depend upon a regular
eareer planning is important because it helps the individual to eollecting (nformation
$o)e## 3: 3rocessing (nformation
$o)e## :: 4ob )escription
$o)e## =: 4ob !pecification
St&te'i) C8oi)e#: -
Extent of involvement of employees: :haracteristics of $as#s A3lanning"ntrolling of $as#B
• ?or# /lo A3rocess !equencesB
• :rgonomics A$ime 6 Motion !tudyB
• ?or# 3ractices A!et of ays of performing tas#sB
En1ion"ent&! F&)to#:
• :mployee 5bilities and 5vailability
• !ocial and >ulturalnsequently it provides a high level of motivation to employees because jobs itself
become motivators. Hence job rotation helps the job become more motivating.
4ob enlargement involves eandidates for selection
• Retention and 3erformance of selected candidates
• Recruitment >ost
• $ime lapsed data
• (mage projection
INTERNA5 RECRUITMENT
A61&nt&'e# Di#&61&nt&'e#
+. 2ess >ostly
,. >andidates already oriented toards
organization
-. &rganizations have better #noledge
about internal candidates
.. :mployee morale and motivation is
enhanced
+. &ld concept of doing things
,. (t abets raiding
-. >andidates current or# may be
affected
.. 3olitics play greater roles
7. Morale problem for those not
promoted.
EXTERNA5 RECRUITMENT
A61&nt&'e# Di#&61&nt&'e#
3=
+. 0enefits of ne s#ills and talents
,. 0enefits of ne eompliance ith reservation policy
becomes easy
.. !cope for resentment" jealousies" and
heartburn are avoided.
+. 0etter morale and motivation
associated ith internal recruiting is
denied
,. (t is costly method
-. >hances of creeping in false positive
and false negative errors
.. 5djustment of ne employees ta#es
longer time.
SE5ECTION: -
MEANING OF SE5ECTION:
!election is the process of pic#ing up individuals Aout of the pool of job applicantsB ith
requisite qualifications and competence to fill jobs in the organization. 5 formal definition of
!election is as under
Definition of Se!e)tion: +rocess of di fferenti ati ng
“!election is the process of differentiating beteen applicants in order to identify and hire
those ith a greater li#elihood of success in a job.”
DIFFERENCE -ET;EEN RECRUITMENT AND SE5ECTION:
Re)+it"ent Se!e)tion
+. Recruitment refers to the process of
identifying and encouraging prospective
employees to apply for jobs.
,. Recruitment is said to be positive in
its approach as it see#s to attract as
many candidates as possible.
+. !election is concerned ith pic#ing up
the right candidates from a pool of
applicants.
,. !election on the other hand is
negative in its application in as much as
it see#s to eliminate as many unqualified
applicants as possible in order to identify
the right candidates.
$ROCESS E STE$S IN SE5ECTION
+. $e!i"in&* Inte1ie9: $he purpose of preliminary intervies is basically to
eliminate unqualified applications based on information supplied in application forms. $he
basic objective is to reject misfits. &n the other hands preliminary intervies is often called
a courtesy intervie and is a good public relations ehaos
>onstant >hange
Re#i#t&n)e to C8&n'e
@ncertainty and 5mbiguity
3ersonal 2oss >oncerns
)isbelief in >hange benefits
Te)8niF+e# of Re6+)in' Re#i#t&n)e to C8&n'e
:ducation and >ommunication
:=
Hegotiation
Manipulation and >o*optation
3articipation
/acilitation
>oercion
C8&n'e M&n&'e"ent
!tructural >hanges $echnological >hanges 3eople >hanges
5uthority
>oordination
>entralization
3rocesses
Methods
:quipments
5ttitudes
:hange the job systems
THM /E#> Reen'ineein'
$IM A$otal Iuality ManagementB Re engineering
>ontinuous >hange
/ionstraints stress
Ho9 to e6+)e 9o7%!&)e #te##
:mployee selection
&rganizational communication
3erformance 3lanning
4ob redesign especially hen processes change" jobs merged" and relocation happens
:?
:mployee counseling
$ime management programs
;8&t i# )e&ti1it*A
>ombining ne ideas in unique ays or associating ideas in unusual ays
;8&t i# inno1&tionA
$urning creative ideas into useful products" services or methods of operations
3 Set# of 1&i&,!e #i"+!&te inno1&tion
!tructural >hanges
>ultural >hanges
Human Resources >hanges
C8&n'e Define6
M>hange is the indo through hich the future enters your life.M (tFs all around you" in
many types and shapes. Pou can bring it about yourself or it can come in ays
;8* C8&n'e M&n&'e"entA
Pou can bring the change about yourself or it can come in ays that give you little choice
about its hat" hen" and ho. /ighting against change can slo it don or divert it" but it
onFt stop it hoever. (f you ish to succeed in this rapidly changing ne orld Myou must
learn to loo# on change as a friend * one ho presents you ith an opportunity for groth
and improvement.M
;
$he rate of change in todayFs orld is constantly increasing. :verything that eost to #eep employee" and benefit the organization
derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
+,. Co"%&&ti1e E1&!+&tion Met8o6 (R&n7in' ( $&ie6 Co"%&i#on#): $hese are
collection of different methods that compare performance ith that of other co*or#ers.
$he usual techniques used may be ran#ing methods and paired comparison method.
• Ran+ing Met*ods: !uperior ran#s his or#er based on merit" from best to
orst. Hoever ho best and hy best are not elaborated in this method. (t is easy to
administer and eosts of
=:
employees traveling and lodging" psychologists" ratings strongly influenced by assessee's
inter*personal s#ills. !olid performers may feel suffocated in simulated situations. $hose
ho are not selected for this also may get affected.
A61&nt&'e# % ell*conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. 5lso reliability" content validity
and predictive ability are said to be high in assessment centers. $he tests also ma#e sure
that the rong people are not hired or promoted. /inally it clearly defines the criteria for
selection and promotion.
.. 3?D-De'ee Fee6,&)7: (t is a technique hich is systematic collection of performance
data on an individual group" derived from a number of sta#eholders li#e immediate
supervisors" team members" customers" peers and self. (n fact anyone ho has useful
information on ho an employee does a job may be one of the appraisers. $his technique is
highly useful in terms of broader perspective" greater self*development and multi*source
feedbac# is useful. -8=*degree appraisals are useful to measure inter*personal s#ills"
customer satisfaction and team building s#ills. Hoever on the negative side" receiving
feedbac# from multiple sources can be intimidating" threatening etc. Multiple raters may be
less adept at providing balanced and objective feedbac#.
Et8i)# of $efo"&n)e A%%&i#&!# E 5e'&!!* 6efen#i,!e $efo"&n)e A%%&i#&!#
Et8i)# of $o)e6+e#
+. /ormal !tandardized 3erformance 5ppraisal !ystems
,. @niform to all employees" no illegal differentiations based on cast" religion etc.
-. !tandards formally communicated to all employees
.. /reedom to revie performance appraisal results
7. /ormal appeal process about ratings and judgments
8. ?ritten instructions and training to raters
1. 5ll personal decision ma#ers should be aare of anti*discrimination las.
Et8i)# of Content#
+. >ontent based on job analysis
,. $raits based appraisals should be avoided
-. &bjectively verifiable data should be used
.. >onstraints on performance beyond control should be prevented
7. !pecific job related dimensions to be used rather than single or global dimensions.
8. )imensions must be assigned eight to reflect relative importance in performance score
Et8i)# of Do)+"ent&tion of Re#+!t#
+. 5 thoroughly ritten record of evidence leading to termination should be maintained
,. ?ritten documentation of eonsistent )ocumentations maintained
+=. Ho room for discrimination based on cast" creed" race" religion" region etc.
$o,!e"# of R&tin':
+. 2eniency 6 !everity
=?
,. >entral $endency
-. Halo :rror
.. Rater :ffect
7. 3rimacy 6 Recency :ffect
8. 3erceptual !ets
1. 3erformance )imensions &rder
9. !pillover :ffects
;. !tatus :ffect
INCENTI/ES -ASED COM$ENSATION
(ncentives are monetary benefits paid to or#men in recognition of their outstanding
performance. $hey are defined as variable reards granted according to variations in the
achievement of specific results.
A61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion#
+. (ncentives are important for inducement and motivation of or#ers for higher
efficiency and greater output.
,. :mployee earnings go up
-. :nhanced standard of livings of employees
.. Reduction in total unit cost of production"
7. 3roductivity increases.
8. 3roduction capacity is also li#ely to increase
1. Reduced supervision
Di#&61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion
+. $endency of quality of products deteriorated due to increased output and lo cost
,. :mployees may oppose introduction of ne machines
-. ?or#ers demand for minimum age limit may go up due to high incentive earnings
.. !ometimes employees may disregard security regulations due to payment by results
approach adopted for higher incentive figures
7. &veror#ing may affect employee health
8. :mployee jealousies ith respect to high and lo performers
=4
HUMAN RESOURCE AUDIT
N&t+e of HR A+6it
HR 5udit is a tool for evaluating the personnel activities of an organization. $he audit may
include one division or entire company. (t gives feedbac# about HR functions to operating
managers and HR specialists. (t also shos ho ell managers are meeting HR duties.
(n short HR audit is an overall control chec# on HR activities in a division or a company and
evaluation of ho these activities support organization's strategy.
-&#i# of HR A+6it
($e#onne! Re#e&)8)
+. ?age !urveys
,. Recruitment !ources effectiveness
-. $raining efforts effectiveness
.. !upervisor's effectiveness
7. (ndustrial settlements
8. 4ob 5nalysis
1. 4ob !atisfaction !urvey
9. :mployee needs survey
;. 5ttitude !urveys
+=. High accident frequency surveys
-enefit# of HR A+6it
+. (dentification of contributions of HR department
,. (mprovement of professional image of HR department
-. :ncouragement of greater responsibility and professionalism among HR members
.. >larification of HR duties and responsibilities
7. !timulation of uniformity of HR policies and practices
8. /inding critical personnel problems
1. :nsuring timely compliance ith legal requirements
9. Reduction of HR costs through more effective personnel procedures
;. >reation of increased acceptance of changes in HR department
+=. 5 thorough revie of HR information systems
S)o%e &n6 T*%e# of HR A+6it
HR 5udit must cover the activities of the department and eompliance 5udit
=@
• Human Resource >limate 5udit
:mployee $urnover
5bsenteeism
5ccidents
5ttitude !urveys
• HR * >orporate !trategy 5udit
A%%o&)8e# to HR A+6it
+. >omparative 5pproach A0enchmar#ing ith another companyB
,. &utside 5uthority 5pproach A&utside consultants' standardsB
-. !tatistical 5pproach A!tatistical measures and toolsB
.. >ompliance 5pproach A2egal and company policiesB
7. Management 0y &bjectives 5pproach ACoals 6 &bjectives basedB
=B
MOTI/ATION THEORIES
3erformance is a function of ability and motivation. 3 N f A5 < MB
Definition 1: #hoices among voluntary activities
5 process governing choices made by persons or loer organisms among alternative forms
of voluntary activity
Definition 2: Arouse enthusiasm to pursue
5 result of internal and eontrol
.. !taff >ouncils
7. 4oint >ouncils
8. >ollective 0argaining
1. 4ob :nlargement and :nrichment
9. !uggestion !chemes
;. Iuality >ircles
+=. :mpoered $eams
++. $otal Iuality Management
+,. /inancial 3articipation
$eeF+i#ite# of S+))e##f+! $&ti)i%&tion
+. >learly defined and complementary &bjectives
,. /ree flo of information and communication
-. Representatives of or#ers from or#ers themselves
.. &utside trade union participation should be avoided
7. ?or#ers' education and training
?:
8. Ho threat by participation
1. 5ssociation at all levels of decision*ma#ing
-enefit# of $&ti)i%&tion
+. Cives identity to an employee
,. Motivates employee
-. !elf*esteem" job satisfaction and cooperation improves
.. Reduced conflicts and stress
7. More commitment to goals
8. 2ess resistance to change
1. 2ess labor problems
9. 0etter quality suggestions e
HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives
HUMAN RESOURCE MANAGEMENT
1
INDEX
HUMAN RESOURCE MANAGEMENT ( H R M )
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
HUMAN RESOURCE DEVELOPMENT
TEAM EFFECTIVENESS
HUMAN RESOURCE PLANNING ( H R P )
JOB ANALYSIS
JOB DESCRIPTION
JOB SPECIFICATIONS
JOB EVALUATION
JOB DESIGN
DESIGNING JOBS – MOTIVATING JOBS
JOB SATISFACTION
WORK SAMPLING
RECRUITMENT & SELECTION
TRAINING & DEVELOPMENT
INDUCTION & ORIENATION
PERFORMANCE APPRAISALS
INCENTIVES BASED COMPENSATION
HUMAN RESOURCE AUDIT
MOTIVATION THEORIES
MORALE
PERSONNEL POLICIES
WORKERS’ PARTICIPATION IN MANAGEMENT
UNIONS
ORGANIATIONAL DOWNSIING
MEANING OF ORGANIATION STRUCTURE
HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 – Integrati on
“HRM is a series of integrated decisions that form the employment relationships; their
quality contributes to the ability of the organizations and the employees to achieve their
objectives.”
Definition 2 – Infl uenci ng
“HRM is concerned ith the people dimensions in management. !ince every organization is
made up of people" acquiring their services" developing their s#ills" motivating them to
higher levels of performance and ensuring that they continue to maintain their commitment
to the organization are essential to achieving organizational objectives. $his is true"
regardless of the type of the organization % government" business" education" health"
recreational" or social action.”
Definition 3 – Appl i cabi l i ty
“HRM planning" organizing" directing and controlling of the procurement" development"
2
compensation" integration" maintenance and separation of human resources to the end that
individual" organizational and social objectives are accomplished.”
MEANING OF HRM: -
HRM is management function that helps managers to recruit" select" train and develop
members for an organization. &bviously HRM is concerned ith the people's dimensions in
organizations. HRM refers to set of programs" functions" and activities designed and carried
out
Coe e!e"ent# of HRM
• $eo%!e: &rganizations mean people. (t is the people ho staff and manage
organizations.
• M&n&'e"ent: HRM involves application of management functions and principles for
acquisitioning" developing" maintaining and remunerating employees in organizations.
• Inte'&tion ( Con#i#ten)*: )ecisions regarding people must be integrated and
consistent.
• Inf!+en)e: )ecisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
• A%%!i)&,i!it*: HRM principles are applicable to business as ell as non*business
organizations too" such as education" health" recreation and the li#e.
O-.ECTI/ES OF HRM: -
+. So)iet&! O,0e)ti1e#: $o be ethically and socially responsible to the needs and
challenges of the society hile minimizing the negative impact of such demands upon the
organization.
,. O'&ni2&tion&! O,0e)ti1e#: $o recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization ith
its primary objectives.
-. F+n)tion&! O,0e)ti1e#: $o maintain department's contribution and level of
services at a level appropriate to the organization's needs.
.. $e#on&! O,0e)ti1e#: $o assist employees in achieving their personal goals" at
least in so far as these goals enhance the individual's contribution to the organization. $his
is necessary to maintain employee performance and satisfaction for the purpose of
maintaining" retaining and motivating the employees in the organization.
SCO$E OF HRM: -
/rom Ent* to the E3it of an employee in the organization
!cope of HRM can be described based on the folloing activities of HRM. 0ased on these
activities e can summarize the scope of HRM into 1 different categories as mentioned
belo after the activities. 2ets chec# out both of them.
HRM A)ti1itie# –
+. HR 3lanning
,. 4ob 5nalysis
-. 4ob )esign
.. Recruitment 6 !election
7. &rientation 6 3lacement
8. $raining 6 )evelopment
1. 3erformance 5ppraisals
9. 4ob :valuation
;. :mployee and
mmunication+,. ?elfare
+-. !afety 6 Health
+.. (ndustrial Relations
4 C&te'oie# of S)o%e of HRM
+. (ntroduction to HRM
,. :mployee Hiring
-. :mployee and
mpensation" >areer 6 3romotion" $raining 6 )evelopment and(ndustrial Relations.
b. $e#onne! $o)e6+e#: Relating to manpoer planning procedures" recruitment
and selection procedures" and employment procedures" training procedures" management
development procedures" performance appraisal procedures" compensation procedures"
industrial relations procedures and health and safety procedures.
,. F+n)tion&! Ro!e: $he personnel function interprets and helps to communicate
personnel policies. (t provides guidance to managers" hich ill ensure that agreed policies
are implemented.
-. Se1i)e Ro!e: 3ersonnel function provides services that need to be carried out by full
time specialists. $hese services constitute the main activities carried out by personnel
departments and involve the implementation of the policies and procedures described
above.
Ro!e of HR M&n&'e# (To6&*)
+. H+"&nit&i&n Ro!e: Reminding moral and ethical obligations to employees
,. Co+n#e!o: >onsultations to employees about marital" health" mental" physical and
career problems.
-. Me6i&to: 3laying the role of a peacema#er during disputes" conflicts beteen
individuals and groups and management.
.. S%o7e#"&n: $o represent of the company because he has better overall picture of his
company's operations.
7. $o,!e" So!1e: !olving problems of overall human resource management and long*
term organizational planning.
8. C8&n'e A'ent: (ntroducing and implementing institutional changes and installing
organizational development programs
1. M&n&'e"ent of M&n%o9e Re#o+)e#: 0roadly concerned ith leadership both in
the group and individual relationships and labor*management relations.
Ro!e of HR M&n&'e# (F+t+e)
+. 3rotection and enhancement of human and non*human resources
,. /inding the best ay of using people to accomplish organizational goals
:
-. (mprove organizational performance
.. (ntegration of techniques of information technology ith the human resources
7. @tilizing behavioral scientists in the best ay for his people
8. Meeting challenges of increasing organizational effectiveness
1. Managing diverse or#force
FUNCTIONS OF HRM A5ONG ;ITH O-.ECTI/ES
HRM O,0e)ti1e# S+%%otin' HRM F+n)tion#
!ocial &bjectives A-B 2egal >ompliance
0enefits
@nion Management Relations
&rganizational &bjectives A1B Human Resource 3lanning
:mployee Relations
Recruitment 6 !election
$raining 6 )evelopment
3erformance 5ppraisals
3lacement 6 &rientation
:mployee 5ssessment
/unctional &bjectives A-B 3erformance 5ppraisals
3lacement 6 &rientation
:mployee 5ssessment
3ersonal &bjectives A7B $raining 6 )evelopment
3erformance 5ppraisals
3lacement 6 &rientation
>ompensation
:mployee 5ssessment
M&n&'ei&! F+n)tion# of HRM
+. $!&nnin': 3lan and research about age trends" labor mar#et conditions" union
demands and other personnel benefits. /orecasting manpoer needs etc.
,. O'&ni2in': &rganizing manpoer and material resources by creating authorities and
responsibilities for the achievement of organizational goals and objectives.
-. St&ffin': Recruitment 6 !election
.. Die)tin': (ssuance of orders and instructions" providing guidance and motivation of
employees to follo the path laid*don.
7. Conto!!in': Regulating personnel activities and policies according to plans.
&bservations and comparisons of deviations
O%e&tion&! F+n)tion# of HRM
+. $o)+e"ent: 3lanning" Recruitment and !election" (nduction and 3lacement
,. De1e!o%"ent: $raining" )evelopment" >areer planning and counseling.
-. Co"%en#&tion: ?age and !alary determination and administration
.. Inte'&tion: (ntegration of human resources ith organization.
7. M&inten&n)e: !ustaining and improving or#ing conditions" retentions" employee
communication
8. Se%&&tion#: Managing separations caused by resignations" terminations" lay offs"
death" medical sic#ness etc.
CHA55ENGES OF HRM IN INDIAN ECONOM< o CHA55ENGES OF
MODERN MANAGEMENT
+. G!o,&!i2&tion: - Croing internationalization of business has its impact on HRM in
terms of problems of unfamiliar las" languages" practices" competitions" attitudes"
management styles" or# ethics and more. HR managers have a challenge to deal ith
=
more functions" more heterogeneous functions and more involvement in employee's
personal life.
2> Co%o&te Re-o'&ni2&tion#: - Reorganization relates to mergers and
acquisitions" joint ventures" ta#e over" internal restructuring of organizations. (n these
situations" it is difficult to imagine circumstances that pose a greater challenge for HRM
than reorganizations itself. (t is a challenge to manage employees' an Ne9 O'&ni2&tion&! fo"#: - $he basic challenge to HRM comes from the
changing character of competitions. $he competition is not beteen individual firms but
beteen constellations of firm. Major companies are operating through a comple< eb of
strategic alliances" forgings ith local suppliers" etc. $hese relationships give birth to
completely ne forms of organizational structure" hich highly depend upon a regular
eareer planning is important because it helps the individual to eollecting (nformation
$o)e## 3: 3rocessing (nformation
$o)e## :: 4ob )escription
$o)e## =: 4ob !pecification
St&te'i) C8oi)e#: -
Extent of involvement of employees: :haracteristics of $as#s A3lanning"
ntrolling of $as#B• ?or# /lo A3rocess !equencesB
• :rgonomics A$ime 6 Motion !tudyB
• ?or# 3ractices A!et of ays of performing tas#sB
En1ion"ent&! F&)to#:
• :mployee 5bilities and 5vailability
• !ocial and >ultural
nsequently it provides a high level of motivation to employees because jobs itselfbecome motivators. Hence job rotation helps the job become more motivating.
4ob enlargement involves eandidates for selection
• Retention and 3erformance of selected candidates
• Recruitment >ost
• $ime lapsed data
• (mage projection
INTERNA5 RECRUITMENT
A61&nt&'e# Di#&61&nt&'e#
+. 2ess >ostly
,. >andidates already oriented toards
organization
-. &rganizations have better #noledge
about internal candidates
.. :mployee morale and motivation is
enhanced
+. &ld concept of doing things
,. (t abets raiding
-. >andidates current or# may be
affected
.. 3olitics play greater roles
7. Morale problem for those not
promoted.
EXTERNA5 RECRUITMENT
A61&nt&'e# Di#&61&nt&'e#
3=
+. 0enefits of ne s#ills and talents
,. 0enefits of ne eompliance ith reservation policy
becomes easy
.. !cope for resentment" jealousies" and
heartburn are avoided.
+. 0etter morale and motivation
associated ith internal recruiting is
denied
,. (t is costly method
-. >hances of creeping in false positive
and false negative errors
.. 5djustment of ne employees ta#es
longer time.
SE5ECTION: -
MEANING OF SE5ECTION:
!election is the process of pic#ing up individuals Aout of the pool of job applicantsB ith
requisite qualifications and competence to fill jobs in the organization. 5 formal definition of
!election is as under
Definition of Se!e)tion: +rocess of di fferenti ati ng
“!election is the process of differentiating beteen applicants in order to identify and hire
those ith a greater li#elihood of success in a job.”
DIFFERENCE -ET;EEN RECRUITMENT AND SE5ECTION:
Re)+it"ent Se!e)tion
+. Recruitment refers to the process of
identifying and encouraging prospective
employees to apply for jobs.
,. Recruitment is said to be positive in
its approach as it see#s to attract as
many candidates as possible.
+. !election is concerned ith pic#ing up
the right candidates from a pool of
applicants.
,. !election on the other hand is
negative in its application in as much as
it see#s to eliminate as many unqualified
applicants as possible in order to identify
the right candidates.
$ROCESS E STE$S IN SE5ECTION
+. $e!i"in&* Inte1ie9: $he purpose of preliminary intervies is basically to
eliminate unqualified applications based on information supplied in application forms. $he
basic objective is to reject misfits. &n the other hands preliminary intervies is often called
a courtesy intervie and is a good public relations ehaos
>onstant >hange
Re#i#t&n)e to C8&n'e
@ncertainty and 5mbiguity
3ersonal 2oss >oncerns
)isbelief in >hange benefits
Te)8niF+e# of Re6+)in' Re#i#t&n)e to C8&n'e
:ducation and >ommunication
:=
Hegotiation
Manipulation and >o*optation
3articipation
/acilitation
>oercion
C8&n'e M&n&'e"ent
!tructural >hanges $echnological >hanges 3eople >hanges
5uthority
>oordination
>entralization
3rocesses
Methods
:quipments
5ttitudes
:hange the job systems
THM /E#> Reen'ineein'
$IM A$otal Iuality ManagementB Re engineering
>ontinuous >hange
/ionstraints stress
Ho9 to e6+)e 9o7%!&)e #te##
:mployee selection
&rganizational communication
3erformance 3lanning
4ob redesign especially hen processes change" jobs merged" and relocation happens
:?
:mployee counseling
$ime management programs
;8&t i# )e&ti1it*A
>ombining ne ideas in unique ays or associating ideas in unusual ays
;8&t i# inno1&tionA
$urning creative ideas into useful products" services or methods of operations
3 Set# of 1&i&,!e #i"+!&te inno1&tion
!tructural >hanges
>ultural >hanges
Human Resources >hanges
C8&n'e Define6
M>hange is the indo through hich the future enters your life.M (tFs all around you" in
many types and shapes. Pou can bring it about yourself or it can come in ays
;8* C8&n'e M&n&'e"entA
Pou can bring the change about yourself or it can come in ays that give you little choice
about its hat" hen" and ho. /ighting against change can slo it don or divert it" but it
onFt stop it hoever. (f you ish to succeed in this rapidly changing ne orld Myou must
learn to loo# on change as a friend * one ho presents you ith an opportunity for groth
and improvement.M
;
$he rate of change in todayFs orld is constantly increasing. :verything that eost to #eep employee" and benefit the organization
derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
+,. Co"%&&ti1e E1&!+&tion Met8o6 (R&n7in' ( $&ie6 Co"%&i#on#): $hese are
collection of different methods that compare performance ith that of other co*or#ers.
$he usual techniques used may be ran#ing methods and paired comparison method.
• Ran+ing Met*ods: !uperior ran#s his or#er based on merit" from best to
orst. Hoever ho best and hy best are not elaborated in this method. (t is easy to
administer and eosts of
=:
employees traveling and lodging" psychologists" ratings strongly influenced by assessee's
inter*personal s#ills. !olid performers may feel suffocated in simulated situations. $hose
ho are not selected for this also may get affected.
A61&nt&'e# % ell*conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. 5lso reliability" content validity
and predictive ability are said to be high in assessment centers. $he tests also ma#e sure
that the rong people are not hired or promoted. /inally it clearly defines the criteria for
selection and promotion.
.. 3?D-De'ee Fee6,&)7: (t is a technique hich is systematic collection of performance
data on an individual group" derived from a number of sta#eholders li#e immediate
supervisors" team members" customers" peers and self. (n fact anyone ho has useful
information on ho an employee does a job may be one of the appraisers. $his technique is
highly useful in terms of broader perspective" greater self*development and multi*source
feedbac# is useful. -8=*degree appraisals are useful to measure inter*personal s#ills"
customer satisfaction and team building s#ills. Hoever on the negative side" receiving
feedbac# from multiple sources can be intimidating" threatening etc. Multiple raters may be
less adept at providing balanced and objective feedbac#.
Et8i)# of $efo"&n)e A%%&i#&!# E 5e'&!!* 6efen#i,!e $efo"&n)e A%%&i#&!#
Et8i)# of $o)e6+e#
+. /ormal !tandardized 3erformance 5ppraisal !ystems
,. @niform to all employees" no illegal differentiations based on cast" religion etc.
-. !tandards formally communicated to all employees
.. /reedom to revie performance appraisal results
7. /ormal appeal process about ratings and judgments
8. ?ritten instructions and training to raters
1. 5ll personal decision ma#ers should be aare of anti*discrimination las.
Et8i)# of Content#
+. >ontent based on job analysis
,. $raits based appraisals should be avoided
-. &bjectively verifiable data should be used
.. >onstraints on performance beyond control should be prevented
7. !pecific job related dimensions to be used rather than single or global dimensions.
8. )imensions must be assigned eight to reflect relative importance in performance score
Et8i)# of Do)+"ent&tion of Re#+!t#
+. 5 thoroughly ritten record of evidence leading to termination should be maintained
,. ?ritten documentation of eonsistent )ocumentations maintained
+=. Ho room for discrimination based on cast" creed" race" religion" region etc.
$o,!e"# of R&tin':
+. 2eniency 6 !everity
=?
,. >entral $endency
-. Halo :rror
.. Rater :ffect
7. 3rimacy 6 Recency :ffect
8. 3erceptual !ets
1. 3erformance )imensions &rder
9. !pillover :ffects
;. !tatus :ffect
INCENTI/ES -ASED COM$ENSATION
(ncentives are monetary benefits paid to or#men in recognition of their outstanding
performance. $hey are defined as variable reards granted according to variations in the
achievement of specific results.
A61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion#
+. (ncentives are important for inducement and motivation of or#ers for higher
efficiency and greater output.
,. :mployee earnings go up
-. :nhanced standard of livings of employees
.. Reduction in total unit cost of production"
7. 3roductivity increases.
8. 3roduction capacity is also li#ely to increase
1. Reduced supervision
Di#&61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion
+. $endency of quality of products deteriorated due to increased output and lo cost
,. :mployees may oppose introduction of ne machines
-. ?or#ers demand for minimum age limit may go up due to high incentive earnings
.. !ometimes employees may disregard security regulations due to payment by results
approach adopted for higher incentive figures
7. &veror#ing may affect employee health
8. :mployee jealousies ith respect to high and lo performers
=4
HUMAN RESOURCE AUDIT
N&t+e of HR A+6it
HR 5udit is a tool for evaluating the personnel activities of an organization. $he audit may
include one division or entire company. (t gives feedbac# about HR functions to operating
managers and HR specialists. (t also shos ho ell managers are meeting HR duties.
(n short HR audit is an overall control chec# on HR activities in a division or a company and
evaluation of ho these activities support organization's strategy.
-&#i# of HR A+6it
($e#onne! Re#e&)8)
+. ?age !urveys
,. Recruitment !ources effectiveness
-. $raining efforts effectiveness
.. !upervisor's effectiveness
7. (ndustrial settlements
8. 4ob 5nalysis
1. 4ob !atisfaction !urvey
9. :mployee needs survey
;. 5ttitude !urveys
+=. High accident frequency surveys
-enefit# of HR A+6it
+. (dentification of contributions of HR department
,. (mprovement of professional image of HR department
-. :ncouragement of greater responsibility and professionalism among HR members
.. >larification of HR duties and responsibilities
7. !timulation of uniformity of HR policies and practices
8. /inding critical personnel problems
1. :nsuring timely compliance ith legal requirements
9. Reduction of HR costs through more effective personnel procedures
;. >reation of increased acceptance of changes in HR department
+=. 5 thorough revie of HR information systems
S)o%e &n6 T*%e# of HR A+6it
HR 5udit must cover the activities of the department and eompliance 5udit
=@
• Human Resource >limate 5udit
:mployee $urnover
5bsenteeism
5ccidents
5ttitude !urveys
• HR * >orporate !trategy 5udit
A%%o&)8e# to HR A+6it
+. >omparative 5pproach A0enchmar#ing ith another companyB
,. &utside 5uthority 5pproach A&utside consultants' standardsB
-. !tatistical 5pproach A!tatistical measures and toolsB
.. >ompliance 5pproach A2egal and company policiesB
7. Management 0y &bjectives 5pproach ACoals 6 &bjectives basedB
=B
MOTI/ATION THEORIES
3erformance is a function of ability and motivation. 3 N f A5 < MB
Definition 1: #hoices among voluntary activities
5 process governing choices made by persons or loer organisms among alternative forms
of voluntary activity
Definition 2: Arouse enthusiasm to pursue
5 result of internal and eontrol
.. !taff >ouncils
7. 4oint >ouncils
8. >ollective 0argaining
1. 4ob :nlargement and :nrichment
9. !uggestion !chemes
;. Iuality >ircles
+=. :mpoered $eams
++. $otal Iuality Management
+,. /inancial 3articipation
$eeF+i#ite# of S+))e##f+! $&ti)i%&tion
+. >learly defined and complementary &bjectives
,. /ree flo of information and communication
-. Representatives of or#ers from or#ers themselves
.. &utside trade union participation should be avoided
7. ?or#ers' education and training
?:
8. Ho threat by participation
1. 5ssociation at all levels of decision*ma#ing
-enefit# of $&ti)i%&tion
+. Cives identity to an employee
,. Motivates employee
-. !elf*esteem" job satisfaction and cooperation improves
.. Reduced conflicts and stress
7. More commitment to goals
8. 2ess resistance to change
1. 2ess labor problems
9. 0etter quality suggestions e