Module-1 HRM
Module-1 HRM
Learning Objectives
At the end of this module, you will be able to:
1. Understand Human Resource Management
2. Get the insights of Human Resource Planning and its process
3. Define Manpower estimation- Job Analysis-Job description-Job specification
4. Understand Recruitment and Selection Process.
5. Gain knowledge about placement, induction program and retention process.
Introduction-
Manpower and resources are involved in every action. For a long time, men were taken
for granted. The focus was more on resources, production machinery and senior
managers. However, in recent decades in today's world, which is the mass production of
countless products for a varied range of marketplaces, the prominence of human
capitals and their training is evident. The importance of human resources for an
organization is very much evident. Human power is the capital of the country and
organization. The development process is extensive and varied. In this module let us
understand the importance and concepts of human resource management. (HRM).
In the general phrasing, human resources are individuals and their features at work
either at the nationwide level or organisational level. Megginson defines Human
resources as follows: : “From the national point of view, human resources are
knowledge, skills, creative abilities, talents and attitudes obtained in the population;
whereas from the viewpoint of the individual enterprise they represent the total of the
inherent abilities, acquired knowledge and skills as exemplified in the talents and
aptitudes of its employers”
Sumantra Ghosal considers human resources as human capital. He splits human
capital into three categories:
1. intellectual capital,
2. social capital and
3. emotional capital.
Intellectual capital is specialized Knowledge, implicit knowledge and skill, cognitive
complexity, learning ability. Social capital includes a system of relations, cordiality and
reliability. Emotional capital is self-confidence ambition and courage, ability to take risks
and flexibility. "
HRM is all about managing the manpower tactfully. In the sense that -To maximize
employee performance, it is commonly referred to as the HR department. Strategic
objectives of the employer's human resources department mainly managing people in
an organization with a focus on policies and systems.
This department is responsible for designing employee benefits, hiring
employees,training and development, performance appraisal, and compensation (such
as payroll and administration benefit system). HR also deals with managerial change
and work relations.
It's about balancing organizational practices with population-driven necessities arising
from collective negotiating and government law.
Some companies are going global and building more diverse teams. The human
resources department has the following duties: It enables teams to work and enables
people to communicate across cultures and across borders, given the changes in
business, current topics in HR include: use technology to build employee engagement
as well as diversity and inclusion.
In today's global work environment, most companies avoid moving employees and
retaining the talent and knowledge of employees. New hiring not only does it involve
higher costs, but it also increases the risk that new entrants will not be able to replace it
the individual who worked in the previous job.
Notes-
Human Resource is the sum total of inherent abilities, acquired knowledge, and
skills represented by talents and aptitudes of the employees.
Defination of HRM-
Michael Armstrong: has defined H.R.M. as: “A strategic and coherent approach to the
management of an organization’s most valued assets, the people working there who
individuals and collectively contributes to the achievement of its goals.”
Thus, HRM mentions to the practices, policies, procedures and process, which the
organization needs to carry out in relations to its work force. It includes, recruiting,
selecting, training, rewarding, appraising and motivating its manpower.
The National Institute of Personal Management (NIPM) of India has well-defined
human resources as “that part of management which is concerned with people at work
and with their relationship within an enterprise. Its aim is to bring together and develop
into an effective organization of the men and women who make up enterprise and have
regard for the well-being of the individuals and of working groups, to enable them to
make their best contribution to its success”
Importance of HRM-
Human resources are the most valuable resource for a company. They are non-human
performers, tools for new competitive achievements and sources of creativity. They are
basically a group of first generation managers who have defined roles and
responsibilities, individual skills and abilities, ideas and beliefs.
Management is based on previous models. Second generation organizations and first
generation managers cannot manage third generation strategies to meet the needs of
second generation organizations and third generation strategic thinking. "
The above view shows the role of HRM in Indian business Significance of HRM can be
viewed in three points;
1. Organizational,
2. social and
3. professional.
1- Organizational Importance-
i. Effective use of human resources, increasing motivation and changing
awareness of work and organization.
ii. Develop human resources that effectively meet the needs of the job. And
iii. Ensuring proper recruitment, retention of personnel in the organization and
availability of suitable personnel.
2-Social Importance-
This aspect is intended to meet the personnel needs of the business. It is often
said that happy workers are happier not only at work, but also at home and in the
community. Therefore, HRM tries to achieve the following:
i. Balancing work and job seekers, taking into account the job requirements,
abilities and talents of the candidate.
ii. Providing the most productive job with psychological satisfaction.
iii. Efficient use of human capabilities and compliance with government rewards.
iv. Eliminate unnecessary organizational and personal actions
3-Professional Importance-
This aspect includes providing a suitable environment for people's growth and
effective use of their abilities, including:
i. Cultivating people who keep trying
of their work
ii.Maintaining the dignity of personnel at work.
iii.Creating a suitable physical and social environment at the workplace.A place
that creates a comfortable work space.
Notes-
At the heart of the systems approach is a Management Information System (MIS) and communication network for
collection, analysis and flow of information to facilitate the function of planning and control. Modern thinkers consider
HRM as a system that integrates activities with an objective to make the best use of resources which are always scarce.
Objectives of HRP-
The objectives of HR planning are as follows:
1. Providing information:
The information provided by HRP is invaluable in identifying excess and underutilized
talent. It also provides a comprehensive list of skills to facilitate decisions such as
promotion. In this way, HRP provides information that can be utilised for other
administrative functions.
2. Effective use of human resources:
HRP is the primary responsibility of management for effective utilization of current and
future personnel. HRP is complementary to organizational planning.
3. Economic development:
At the national level, HRP is essential for economic development. This is particularly
useful for job creation in educational reforms and for the geographic movement of
talent.
4. Determining the manpower gap:
Talent planning examines existing talent gaps so that appropriate training programs are
developed to develop specific skills needed in the future.
5. To predict the needs of human resources:
HRP to determine future talent needs of the organization. Without such a program, it is
difficult to serve the right type of person at the right time.
6. Analyze current employees:
HRPs are volunteers who help analyze current workforce capabilities. It determines the
strengths and capabilities of the current workforce.
7. Effective change management:
The goal of proper personnel planning is to effectively deal with the constant changes in
market conditions, technological products, and government regulations. These changes
require constant allocation or reallocation of skills.
8. Achieving organizational goals:
HRP helps organizations to effectively meet the needs of development, diversification
and other growth strategies.
Importance of HRP
HRP is fundamental in nature and takes precedence over other HRM functions. Without
HRP, it cannot perform other functions in a meaningful way. HRP helps to manage
resources in the organization in the following ways:
1. Defining the Human resource need
This plan defines the needs of future talents and is the basis for attracting and
developing talents. Without this, there may be a mismatch between required and
available personnel.
2. Reaction to change
Rapid changes are taking place in the Indian and international business sector.
Economic liberalization brought great changes in India. Internationally, global
competition is intensifying.
All organizations are trying to compete based on technology and managerial talent. In
this battle, only companies that adopt a formal and rigorous HRP will survive.
Technological changes place more emphasis on knowledge and skills, leading to a
surplus of labor
It is rare in some areas and rare in others. HRP can help you balance these conditions so
that you can identify talent needs and availability in advance.
3. Providing a platform for the growth of human resources
Work is becoming more and more knowledge-oriented. This has changed the personnel
profile. Therefore, organizations should be prepared to face such eventualities with
proper HRP.
4. High cost of investing in human resources
The cost of acquiring, training and retaining talent is growing much faster than average
inflation. This increased cost can be handled by an appropriate HRP.
Effective use of such a talent. In fact, such high costs force many companies to
reconsider the functions of human resource management, especially HRP, and adapt
them to the new conditions.
5. Creating senior management involvement in HRM
Systematic HRP forces an organization's top management to actively participate in the
overall HRM function, an area that most companies have ignored until recently.
HRP Process-
Setting organizational
objectives and strategies
HR Demand HR Supply
Forecast Forecast
Human Resource Planning process Model
Below mentioned are the following stages of HRP process-
1-Setting organizational objectives and strategies
The first step in the HRP process is the consideration of organizational objectives and
strategies. The organizational strategies along with mission and vision statement clearly
expresses the future intent of the organization.
2-Scanning the Environment
Organization undertake environmental scanning to identify the changes in the external
environment. Important external environment factors are- economic situation,
legislative measures, labor market scenario and technological advancements.
3-Preparing of in-house skills and competency inventory
In this, the organization assess the present strength of its labor force by preparing a
skill inventory.
4-Demand Forecasting
These forecasts involve estimating the future requirements of the organization in
terms of the nature and number of people.Organization use different forecasting
techniques to assess the future the requirements:-
a)-Trend Analysis
Trend analysis is simple technique used forecasting the HR requirements on the
base of past events.
b)-Ration Analysis
Rates analysis is the analysis of the relationship between any two numerical
variables. If organization produces 50,000 units of a product with 1,000 current
employees, the ration of the units produced to the number of employees would be
50%. In such a scenario, when the organization, produces 70,000 units how many
employs will be refused?
c)-Delphi Technique
The Delphi technique is basically a group based systematic forecasting method. This
technique does not require any face to face participation by the experts. In the first
phase of a group of independent experts forecast the HR requirements of the
organization. In the second phase, a summary of the expert forecasts is prepared
and sent back to them for their opinion and suggestions. This act is repeated several
time till a consensus is reached on the final HR requirements of the organization.
d)-Nominal Group Technique
Each expert on the group independently develops HR requirements and present it
before other experts in the group. The group evaluates each member’s presentation
and eliminates duplication, if any.
e)-Work Study Technique
The work study technique aims at examining the business operation to achieve the
optimum utilization of the human and physical resources available.
1- Zero-base-Forecasting
This requires managers to conduct a comprehensive study of the utility of each
vacancy before selling replacements.
f)-Simulation Model
The working of the simulation mode involves working several what, if question to
develop alternatives in the forecasting process.
Example: What would be the impact if the organization load off two percent of work
force?
5-Supply Forecasting
Internal Supply of Employees
It refers to the availability of employees within the organization different techniques can
be used to assess internal supply of employees-
a)-Replacement Chart- possible replacements for the present job holders.
b)-Turnover Rate- It provides information about the availability of employees in the
organization.
c)-Human Resource Management Information System (HRIS)- HRIS contain
information pertaining to the each, abilities, qualifications etc. of the employees.
d)-Productivity level
e)-Overtime and Absenteeism- If organization allow overtime and absenteeism is
well under control, we can achieve goal with existing human resources.
f)-Succession planning- This assists HR forecasting by marling suitable items
available for the critical position of the organization.
6-Plan of action
A result of the RAG analysis (Required, available and gap) organization mostly identify
either a surplus or shortage of manpower for their future requirements in shortage
state. We can do requirement, training, flexi time, part time works.
In surplus state we can do VRS, downsizing, restricting hiring, outplacement etc. In case
of shortage state we can do Recruitment, Training, Flexi time, Part time shifts etc.
Manpower estimation-
Manpower estimation is the process of estimating the optimum number of
people required for completing a project, task or a goal within time. It includes
parameters like-
Number of personnel,
Different types of skills,
Time period,
Demand and supply trends,
Organizational strategy etc.
It is a never ending continuous process to make sure that the business has the
optimized resources available when required taking into concern the upcoming future
projects and also the option available of the outgoing employees.
Importance for Manpower Estimation:-
Large businesses often work on forecasting and upcoming opportunities in the pipeline.
If these opportunities convert into actual business, they would need manpower to start
working on them. But the dilemma is that what if they hired a large number of people to
work on an almost sure project but at the last moment the project didn't start on time.
What would the business do with the additional skilled manpower.
The other dilemma is that if they kept waiting till the last moment for a project and
when the project starts they might not have enough manpower to work and deliver.
These questions are solved by the process of manpower estimation.
Manpower Estimation also includes the details like how and when will new employees be
acquired. This whole process is done keeping in view the goals of the organization, the
future predictions for business and changing technology trends. This helps the
organization be prepared for the future with the correct manpower at their disposal for
business success.
Job Analysis
It is the practice of objectively determining the duties, responsibilities, working
conditions associated with a particular job, and the individual skills and competencies
required to perform that job satisfactorily. Job analysis evaluates what employees do.
That is, the process of obtaining information about a job. Examine exactly what workers
do in a particular job, how they do it, why they do it, the skills and physical demands
required to do that job, and the environmental conditions associated with that particular
job.
Job Analysis
Questionnaire
Checklists
Diary or log
records
Methods of Job Analysis
1)-Observation Method: The analyst observes the employee's job and analyzes the
tasks performed and not performed, the responsibilities and obligations performed and
not performed, how, how and different tasks. The skills that the employees need to
perform It records what they use. Mental or emotional capacity to deal with challenges
and risks. However, while it may seem like one of the easiest ways to study a particular
job, it is actually the most difficult. Why? discover.
This is because everyone has their own way of seeing things. Different people think
differently and interpret findings in different ways. Therefore, this process may have
biases, individual likes and dislikes, and may not yield true results. This error can be
avoided by properly training the job analyst or the person conducting the job analysis
process.
This particular method includes three techniques: direct observation, work procedure
analysis, and critical incident techniques. The first method includes direct observation
and recording the behavior of employees in different situations. The second is the study
of time and motion, especially used for assembly line and factory workers. The third is
to identify work behaviors that lead to performance.
2) Interview method:
In this method, employees are interviewed to learn about the way they work, the
problems they face, the use of special skills and techniques in doing work, and their
concerns about their jobs. .
This method helps interviewers know exactly what employees think about their jobs and
the responsibilities associated with them. This is an analysis of the work done by the
employees themselves. The questions asked during the interview should be carefully
determined in order to generate honest and truthful feedback or collect real data. We
also recommend interviewing several people to get a set of answers to avoid mistakes.
Then you can generalize it and use it for the whole group.
3)-Questionnaire Method:
Another frequently used method of job analysis is the filling out of questionnaires by
employees, their supervisors and managers. However, this method also suffers from
personal bias. Great care should be taken in formulating questions for different classes
of employees.
In order to obtain true job information, management should efficiently communicate to
employees that the data collected will be used for their own good. It is very essential to
ensure that it is not used against them in any way. If not done right, it will be a
complete waste of time, money and human resources.
4)-Checklists:
The method of controlling the collection of work data is different from the questionnaire
method in the sense that it contains some subjective questions in the form of yes or no.
Candidates are asked to confirm their job related questions. Checklists can be prepared
based on job information from various sources such as executives, industrial engineers,
and other people familiar with a particular job.
After the checklist is created, it is sent to the task holder to check all the tasks on the
list. You will also be asked to specify how much you spend on each job and the type of
training and experience required to perform each job. Then, tabulate the information in
the checklist to obtain job-specific data.
Like the questionnaire method, the checklist method is suitable for large organizations
with a large number of employees assigned to a specific job. This method is expensive
and not suitable for small organizations.
5)-Diaries or Log Records:
In this method, business owners are required to keep a diary detailing their daily work
activities. If you follow this method carefully, you will get accurate and comprehensive
information about your work. This causes the oblivion of the employer to disappear. This
method can be time consuming as the activity registration can take several days.
The drawback of this method is that it remains incomplete because it does not provide
optimal data on supervisor relationships, equipment used, and general working
conditions in the workplace.
These are some of the most common job analysis methods. However, there are other
specialized methods such as task lists, job element methods, competency profiles,
technical meetings, threshold systems, and combinations of these methods. When
choosing a method, HR managers must consider the time, cost, and human effort
associated with implementing the process.
The problems that may crop up while conducting job analysis are:
1. Lack of support from the top management.
2. Relying on one source and method of data collection.
3. Non-trained and demotivated job holders who are the actual source of job data.
4. Partial information/data provided by the respondents i.e., the job holders because of
non- preparedness on their part.
Job Description:
A written statement of the duties, responsibilities and organizational relationships
required of an employee for a particular job. Job descriptions provide clear and concise
resources that employees can use to guide their job performance. Similarly, supervisors
can use job descriptions as a measurement tool to ensure that employees are meeting
their job expectations.
The components of job description are:
1. Date, revised date.
2. Job title.
3. Department.
4. Division.
5. Code number.
6. Job position required
7. Job summary.
8. Organizational relationship:
i. position accountable for
ii. position accountable to
9. Job duties and responsibilities.
Uses of job description:
1. Serves as basis for selecting and recruiting an individual to fill the position.
2. Essential for the placement and orientation of new employees.
3. Essential for employee's performance evaluation, transfer and promotion.
4. Useful in identifying the needs for employee's training.
5. Helps to prevent both gaps and overlaps at work
6. Helps to prevent arguments among employees about “who should do what.”
Job Specification:
Job specification is discovered from job analysis and job description. It is the personal
qualifications, skills, physical and mental demands required for effective job
performance.
It answers the following questions:
What human characterstics and knowledge are necessary to do this job?
What kind of person to select for and qualifications needed?
What qualities that person should be tested for?
It is a document that specifies the minimum acceptable qualities required for a person
to complete the job satisfactorily. It usually contains the details of the employees
characteristics and the qualification essential for the job. The important components of
a job specification are: Education and training, work experience, skills & competencies,
Physical strength & stamina, stress, coping ability etc.
Recruitment
Hiring is the first step in the process of filling vacancies. Recruitment is the production
of applicants or applicants for specific positions in an organization. The process of
finding and attracting job seekers in order to hire the right person for the right job.
According to Edwin Filippo, "Recruitment is the process of finding potential employees
and encouraging them to apply for jobs in an organization."
According to Dale Yoder, “Recruiting is the process of finding a source of talent that
meets staffing schedule requirements and attracting that talent in sufficient numbers to
facilitate the effective selection of an efficient workforce. This is the process of adopting
a sensible approach. "
Therefore, recruitment can be defined as locating, identifying and attracting qualified
applicants.
Recruitment policy
Recruitment policies are guiding principles governing HR practices related to
recruitment and provide a broad framework for HR departments to select recruitment-
related priorities. These priorities may include gender equality, options for the
marginalized and the disabled. Determining dependents for deceased and retired
employees.
Characterstics of a Good Recruitment Policy
1. It should be in conformity with the relevant public policy and legislations
2. It must show enough vigor and permissiveness in its approach to attract the best
talents for the organization.
3. It must constantly strive to make the necessary human resources available to
match the status requirement of the organization.
4. It should ensure equal employment opportunities for all sections of the society.
Recruitment Process
Strategy
Development Evaluation
-Where Applicant and
-How Population Control
-When
Sources of Recruitment
1. Internal Sources (recruitment from within the enterprise); and
2. External Sources (recruitment from outside)
Recruitment
(Searching Sources of Labour)
Internal Sources
1. Direct recruitment: One of the important sources of recruitment is direct
recruitment through placing an ad on the company's bulletin board.
2. Promotion: Moves employees to higher positions leading to higher responsibilities,
facilities, positions and pay. Many companies follow the method of reaching higher
positions by promoting employees who they consider suitable for such positions, and it
has the advantage of motivating employees.
3. Employee Referral: This method refers to current employees providing information
about candidates who want to be considered for current vacancies.
External sources
1. Direct recruitment: One important source of recruitment is direct recruitment by
posting notices on company notice boards detailing available jobs. Also known as
factory gate recruitment.
2. Routine phone calls/casual callers or unsolicited applications: Organizations
that are considered good employers attract a constant stream of unsolicited
applications to their offices. It is a valuable resource of human resources. If care is taken
to maintain pending application folders for various jobs, HR departments may find that
unsolicited applications help fill vacancies as they arise.
3. Media Advertising: Advertisements in newspapers, trade magazines and
professional journals are usually used when qualified and experienced personnel are not
available from other sources.
4. Employment agencies: Government employment agencies are considered an
excellent source for hiring unskilled, semi-skilled and skilled workers.
5. Management consultants or Headhunters: Management consultants help
organizations to hire technical, professional and managerial positions. They specialize in
placing middle and senior level managers.
6. Educational institutions or Campus Employment: Jobs in business and industry
have become so technical and complex that a college degree or diploma is widely
required.
7.Recommendations or Referrals: Requests from friends and relatives may be a
good source of recruitment. In fact, many employers prefer to hire such people because
something is known about their background.
8. Labor Contractors: Labor contractors are an important source of recruitment in
some industries in India. Workers are recruited through labor contractors who are
themselves employees of the organization. The problem with this system is that if a
contractor leaves the organization, all the workers hired through him also leave.
10. Telecasting: The method of broadcasting vacant posts on television (Dodarshan
and other channels) has recently gained importance. Special features such as "Job
watch", "Youth pulse" and "Employment news".
Preliminary Interview
Receiving Applications
Reference Checking
Medical Examination
FINAL SELECTION
The Induction/orientation received in any organisation will allow a new emploee to:
Learning Activities-
As a class, select 3-4 jobs that you would like to apply for in the future. Split
the class into 2 groups. Group 1 will be 2/3 of the class. Group 1 will divided
into a group for each job and will become the interviewers. There will be 3-4
students asking questions. Group 2 will be the interviewees and answer
questions. Once finished discuss as a class the Pro and cons of interviews. How
useful are interviews in determining the best person for the job? I recommend
taking 1 period to prepare and 1 period for conducting interviews.
Visit any organisation of your choice and meet HR manager in person to know
the ground realities of HRM and his roles precisely.
Short Questions-
Long Questions-
Q1- What do you mean by Job description? discuss the uses and how its is
develop?
Q2- Discuss in detail about Human Resource Planning and its process?
Q3- Describe the role of HR manager?discuss the whole process of recruitment?
Q4- What do you understand by selection and placement? Discuss in brief the
selection process?
Q5- what is recruitment policy? Describe the sources of recruitment?
REFERENCES
1-Venkata Ratnam C. S. & Srivatsava B. K.,PERSONNEL MANAGEMENT AND HUMAN
RESOURCES, Tata Mc-Graw Hill, NewDelhi,,
2-Aswathappa, HUMAN RESOURCE MANGEMENT, Tata McGraw Hill,ing
NewDelhi, 2010
3-Handbook of Pondicherry university by Dr. S. Balakrishnan,G. Shankar and Dr. K.
Uthayasuriyan.
4- Dr. V.S.P. Rao, STRATEGIC HUMAN RESOURCE MANAGEMENT,Himalaya Publishing
House,Mumbai.