HRM Notes Unit-4
HRM Notes Unit-4
Safety Concerns: Employees may raise issues related to unsafe work conditions,
inadequate safety measures, or lack of safety equipment.
Environment: Complaints about the cleanliness, temperature, or general working
conditions.
Pay and benefits
Employee Welfare
Employee welfare refers to all the services, benefits, and facilities provided by employers to
workers for their comfort and improvement. It goes beyond wages and working conditions and
includes social, health, and recreational facilities.
The main objectives of employee welfare are:
1. Improving Standard of Living
Welfare measures help raise the standard of living of employees by providing healthcare,
housing, education, recreation, and financial benefits.
When employees have access to better facilities, their quality of life improves, leading to higher
satisfaction.
2. Enhancing Employee Morale and Motivation
Welfare activities show employees that the organization cares about their needs.
This increases their morale, motivation, and sense of belonging, leading to greater loyalty and
commitment.
3. Increasing Productivity
Healthy, satisfied employees are more energetic and efficient.
Welfare measures reduce fatigue, absenteeism, and workplace accidents, resulting in higher
productivity and better quality of work.
4. Promoting Industrial Peace
Proper welfare programs help minimize grievances, disputes, and conflicts.
Good welfare policies foster trust between management and workers, creating a peaceful and
cooperative working environment.
5. Reducing Labor Turnover and Absenteeism
When employees are happy with their work conditions, they are less likely to leave the
organization or skip work frequently.
This saves the company from the cost of hiring and training new workers.
6. Attracting and Retaining Talent
Companies offering better welfare facilities gain a strong reputation in the job market.
Talented individuals prefer organizations that take care of their employees, helping in attracting
and retaining skilled manpower.
7. Fulfilling Legal Obligations
Some welfare measures are mandatory under labor laws (like health and safety provisions).
By implementing them properly, organizations stay compliant with legal standards and avoid
penalties.
8. Supporting Social Responsibility
Welfare measures reflect the company’s commitment to the broader well-being of its workforce
and society.
It projects the company as socially responsible, improving its public image.
Dispute resolution in HRM involves the methods and processes used to address and settle
conflicts between employees and employers or between employees themselves. HR aims to
ensure that disputes are resolved fairly, quickly, and efficiently to maintain a healthy and
productive work environment.
Common Causes of Disputes in Organizations:
Wage and salary disagreements
Working hours, overtime, and leave issues
Promotions, demotions, and transfers
Workplace safety and conditions
Discrimination, harassment, or unfair treatment
Termination or disciplinary actions
This involves navigating different work ethics, communication styles, and leadership expectations
to ensure better team integration. Having cultural sensitivity in HR gives them the perspective to
see the problem from a different lens and deal with it accordingly.
Global Mobility:
International human resource management involves cross-border employee management,
meaning handling employees relocated to a foreign country. This is a crucial aspect as HR needs
to provide relocation assistance, addressing their needs, cultural training, and support in
adjusting to the new environment. Also, global HR needs to develop a compensation strategy
that balances global consistency and local relevance as well.
Employees need training on new cultural practices, business etiquette, and foreign work
environments.
Regular updating of skills is essential for global competitiveness.
7. Political and Economic Instability
Political unrest, economic downturns, or changes in government policies in host countries can
affect business operations and workforce planning.
8. Ethical and Social Responsibility Issues
Different countries have different standards for ethics (e.g., child labor laws, gender equality).
HR must ensure that the company follows high ethical standards globally.
9. Performance Management
Measuring employee performance across different countries fairly is tough.
Work standards, expectations, and appraisal systems vary globally.
10. Repatriation Issues
After an expatriate assignment ends, helping the employee return and reintegrate into the home
country organization is difficult.
Many expatriates face career problems or dissatisfaction after returning.
Setting up communities of practice where employees with similar skills share best practices.
A. HR Audit
An HR audit is a systematic examination and evaluation of all HR activities, policies, practices, and
systems in an organization.
Purpose:
To check if HR policies comply with laws and regulations.
To ensure HR practices are effective and aligned with organizational goals.
To identify weaknesses and suggest improvements.
Key Areas Covered in HR Audit:
Recruitment and selection processes
Training and development programs
Compensation and benefits management
Employee relations and grievance handling
Legal compliance (like labor laws, anti-discrimination laws)
Performance appraisal systems
Process of HR Audit:
1. Planning: Decide the areas to audit.
2. Data Collection: Review documents, policies, and records.
3. Analysis: Compare current practices with standards.
4. Report Preparation: List findings and recommendations.
5. Implementation: HR makes necessary changes based on audit results.
Benefits of HR Audit:
Identifies risks early
Improves HR efficiency
B. HR Accounting
HR Accounting refers to measuring and reporting the value of human resources (employees) in
monetary terms in the company's financial statements.
Purpose:
To show employees as valuable assets, not just costs.
To help management make better decisions regarding human resource investments.
Methods of HR Accounting:
1. Historical Cost Method: Calculates the actual cost spent on recruitment, training, and
development of employees.
2. Replacement Cost Method: Estimates the cost needed to replace current employees with new
ones of equivalent skills.
3. Present Value of Future Earnings Method: Calculates the present value of the future earnings
an employee is expected to generate.
4. Economic Value Method: Measures the contribution of employees to company profits.
Benefits of HR Accounting:
Helps management assess the return on investment (ROI) in human resources.
Useful in manpower planning and budgeting.
Shows the true value of the company’s assets (including human talent).
Aids in performance appraisal and promotions.
HR frames remote work policies covering areas like work hours, data security, communication
protocols, and employee benefits suited for a virtual setup.
6. Technology Support:
HR collaborates with IT teams to provide necessary tools (like collaboration software, cloud
storage) and trains employees to use them effectively.
7. Conflict Resolution:
HR ensures transparent communication channels and provides virtual counseling or mediation
services to resolve conflicts among remote teams.
8. Compliance and Legal Issues:
HR ensures that remote operations follow labor laws across different locations, maintaining
records, tax compliance, and data protection laws.
In recent years, the role of Human Resources (HR) has expanded beyond traditional functions such
as recruitment and employee engagement. One of the most significant developments is HR's
involvement in Corporate Social Responsibility (CSR). As organizations recognize the importance
of social responsibility, HR has emerged as a critical player in shaping and implementing CSR
initiatives. At Cura HR, we are committed to leading by example, integrating sustainable practices
into our HR strategies. In this blog, we’ll explore how the role of HR is evolving in CSR, current
trends, and the future of corporate social responsibility.
The Intersection of HR and CSR
Corporate social responsibility refers to the efforts made by organizations to conduct business in
a socially responsible manner. This includes practices related to environmental sustainability,
ethical labor practices, and community engagement. HR plays a pivotal role in this framework by
ensuring that employees are aligned with the company’s CSR goals and that the organization
upholds its ethical responsibilities.
Key Responsibilities of HR in CSR Initiatives
HR's role in CSR involves several key responsibilities, including:
Employee Engagement: Engaging employees in CSR initiatives is crucial. HR can develop
programs that encourage employees to participate in community service or sustainability
projects, fostering a sense of purpose and belonging.
Policy Development: HR is responsible for creating and implementing policies that support
ethical practices and sustainability. This includes establishing guidelines for diversity and
inclusion, as well as environmental policies that promote sustainable business practices.
Training and Development: Training programs can be designed to educate employees
about CSR initiatives, ensuring they understand the importance of their contributions.
This fosters a culture of social responsibility within the organization