Management Science

UNIT-4
By
Mr. M S Kishan Varma
Assistant Professor,
Department of Management Studies,
VFSTR Deemed to be University.
Human Resource Management
Concept of HRM, basic functions of HR manager, Manpower
planning, recruitment, selection, Training and Development,
Placement, Wage and Salary Administration, promotion, transfer,
separation, grievance handling, performance appraisal, grievance
handling and welfare administration, Job evaluation and Merit
rating
 Concept of HRM
• Meaning: Human resource management is the process
of managing the human resources of an organisation in
tune with the vision of the top management. In other
words, it is through the human resources that the
management attempts to convert its vision and mission
into action.
• Definition: Flippo defines Human Resource
Management as the planning, organizing, directing, and
controlling of the procurement, development,
compensation, integration, integration, and
maintenance of people (that is employees) for the
purpose of contributing to the organisational goals.
 Concept of HRM
• Empowering employees and institutionalising
employee involvement
• Focussing on productivity and team-building
• Developing flatter organisational structures
• Developing a more people-sensitive management
style and organisational culture
• Developing human resource information systems
• Strengthening of organisational communications
• Evaluating self-appraisals and providing feedback
 Functions of HRM
Managerial Operative
Functions Functions

Manpower Planning
Planning Training & Development
Job Analysis
Recruitment Placement
Organising Performance appraisal
Selection
Induction Employee Welfare
Directing Grievance handling
Others

Controlling
Manpower planning
 Introduction to Manpower Planning
• Meaning: People are a key resource in any
organisation, particularly more so in case of
knowledge-based companies. While other resources
such as finance, and so on, are meticulously planned
and controlled, manpower still continues to be given
the last priority. It is idea! that the companies plan its
manpower requirements for at least three-years ahead.
Definition: Man power planning may be defined as a
rational method of assessing the requirements of human
resources at different levels in the organisation, It ends
with proposals for recruitment, retention, or even
dismissal, where necessary
Importance of Manpower Planning
a) It directly contributes to the achievement of the corporate
objectives
b) It enables the organisation to secure the right kind and
quantity of human resources at different levels in it
c) It helps decision-makers in the search for the optimum
strategy
d) It helps the line managers to highlight the existing or
inherent problems in managing the human resources
under their control
e) It provides an adequate basis to take meaningful and
constructive decisions, and thus, ad hoc decisions relating
to manpower management can be avoided
 Goals of Manpower Planning
A right manpower plan aims at the
following goals:
– Obtain and retain the quantity and quality of the
manpower it needs
– Make the best use of its manpower resources
– Be able to anticipate the problems arising from
surplus or shortage of manpower
 Recruitment
Sources of Recruitment
 Recruitment
• When the manpower plans reveal the need for
additional people in the organisation, the
personnel manager has to initiate the search for
prospective employees and see that they apply for
jobs in the organisation.
• Recruitment is often called a positive function. It
is because the applications are invited at this stage
for further scrutiny and shortlisting. Before
advertising for the position, it is common to check
up if the position could-be filled in internally.
 Sources of Recruitment
Present Employees
Internal Employee Reference
Sources
Former employees
Previous Applicants
Employment Exchanges
Sources Employment Agencies
Advertisement
Professional Associations
External Campus Recruitment
Sources
Deputation
Word-of-Mouth
E-Recruitment
Social Media Recruitment
 Selection
Selection Procedure
 Selection
• The process of identifying the most suitable persons for the
organisation is called selection
• Selection is also called a negative function because at this stage
the applications are screened and shortlisted on the basis of the
selection criteria.
• The main purpose of selection is to choose the right person for
the right job
• The selection process, depending upon the cadre, involves
different stages such as aptitude tests, group discussions and
personal interviews in professionally-run organisations. However,
there is no standard practice
• The organisations are free to formulate their own selection
procedures. Normally, the selection process involves the
following stages
 Selection Procedure

Initial Compreh
ensive Aptitud
screeni Group Medical Employ
applicati e or Personal
ng / on / Discussi examin ment
written Interview
Shortlis Biodata on ation offer
tests
ting screening
 Preparing for Interviews
At the time of campus interviews, what do the companies look for?

The following are some of the very important clues:

• Conceptual clarity
• Ability to apply the basic concepts
• Consistent answers Activity for Students
• Confidence
• Ability to work in a team
• Extra curricular activities such as hobbies, sports, participation in competitions such as
debates, and others
• Seriousness about the job
• Ability to cope up with stress
• Personal-goals for future.
• Aptitude and the job description

How much time is left for you to prepare for these?

 Training
Methods of Training
 Training
• Training is a short-term process of utilising systematic and
organised procedures by which the staff acquires specific technical
knowledge and functional skills for a definite purpose.
• The focus of training is the job or task.
• The role of training in the organisation is governed by the overall
purpose of the organisation.
– In a fast moving consumer goods company, training will be
geared strongly to achieve larger sales than that of competitors.
– In a high-technology manufacturing company, training will be
geared to product quality and innovation..
– In a hospital, training will be geared to provide a reliable
standard of health care.
 Methods of Training
Training Methods

On-the-job training
Off-the-job
training
Job
Experie Apprent
instructi Demons
ntial ice
on tration
learning training
training

Progra Simulat Group

Lectures / Team
talks and Confer Semina Case Role- mmed ion decisio
Class room discussi
ences rs study playing instruct exercis n-
instructions ons
ion es making
Placement
 Placement
• After training, the employee is placed in his/her
position under the charge of a manager. The new
recruit is allowed to exercise full authority and is
held responsible for the results.
• Placement is a process of assigning a specific job
to each of the selected candidates. It involves
assigning a specific rank and responsibility to an
individual. It implies matching the requirements
of a job with the qualifications of the candidate
 IMPORTANCE OF PLACEMENT
• It helps in reducing employee turnover.
• It helps in reducing absenteeism.
• It helps in reducing accident rates.
• It avoids misfit between the candidate and the
job.
• It improves employee morale.
• It helps the candidate to work as per the
predetermined objectives of the organisation
Wage and Salary Administration
 Introduction
• Wage and salary administration is the process
of fixing wage/salary for different jobs in the
organisation through job evaluation
negotiations with the unions, and so on.
• According to D.S. Beach “Wage and Salary
Administration refers to the establishment
and implementation of sound policies and
practices of employee compensation.
 Factors Affecting Wage / Salary
• Remuneration in comparable industries
• Firm’s ability to pay
• Relating to price index
• Productivity
• Cost of Living
• Union Pressures & Strategies
• Government Legislations
 Performance Appraisal
Methods of Performance Appraisal
 Performance Appraisal
• Performance appraisal is the process of
measuring and evaluating the performance or
accomplishments, including individual behaviour,
of an employee on the job front for a given
period.
• The purpose is to assess the worth and value of a
person to the organisation.
• It is also meant for assessing his or her potential
for future development in an objective manner.
 Why appraise the performance
To assess the employee's present level of performance
To identify the strengths or weaknesses of individual employee
To provide feedback to the employee so that he can improve his/her performance

To provide an objective basis for rewarding the employees for their performance

To motivate those employees who perform

To check and punish those employees who fail to perform
To identify the gaps in performance, and thus, assess training and development needs

To identify the employee's potential to perform

To provide a database for evolving succession strategies
To provide a basis for many other decisions such as fixation of incentives or increment,
regularisation or confirmation of the services of the employee, promotion, transfer or demotion.
Methods of Performance Appraisal
• Ranking Method Check-List Method
• Paired Comparison Field Review Method
Traditional •
•
Grading Method Confidential Report
Forced Distribution Mt Essay Method

Method •
•
Forced-Choice Mt
Graphic Rating Scale Mt
Critical Incidents Mt

• Management by Objectives (MBO)

• Behaviourally Anchored Rating
Modern Scales (BARS)
• Assessment Centres
methods • 360 – Degree Appraisal
• Cost Accounting Method
 Promotion
Types of Promotion
Basis for Promotion
 Promotion
• Promotion refers to the advancement of an
employee to a job with a higher authority and
responsibility .
• It may also carry a better compensation
package. Promotion can also be Viewed as a
means of filling up vacancies in the
organisation occurring from time to time.
 Types of Promotion
• Vertical Promotion – employee moves to the next
higher level in the organisational hierarchy with
greater responsibility, authority, pay and status
• Upgradation – job is upgraded in the
organisational hierarchy leading to greater
responsibility, authority and pay
• Dry Promotion – employee is moved to the next
higher level in organisational hierarchy with
greater responsibility, authority and status but no
increase in salary
 Basis for Promotion

Promotion is made either on the

basis of seniority or on the basis of
merit or both. Normally,
management of any organization
MERIT vs prefers merit. But the trade unions
and workers favor seniority.
SENIORITY Seniority means the length of
service put in by an employee in the
working organization Merit, on the
other hand, means the qualification
which an employee possess.
 Transfer
Reasons for Transfer
Separation
 Transfer
• It is a lateral shift that moves an individual
employee from one position to another. It may be
in the same department, or to a different
department or location.
• This does not involve any changes in the duties,
responsibilities, or skills needed. The salary
benefits also may remain the same.
• To optimise the human resources at different
locations or departments, employees are
transferred from one location to another
 Reasons for Transfer
Meet orgnisational requirement
Satisfy employee needs
Increase employee productivity
Make employees more versatile
Adjust the workforce from one plant to another, lay offs and retrenchments
Give relief to employees who are over burdened, engaged in complicated or risky work

Correct inter-personal conflicts

Adjust employees timings and workplace
Penalising employees
Minimise corruption and frauds due to permanent stay and contacts with customers,
dealers and suppliers
Maintenance of tenure system
 Separation
• Separation refers to termination of
employment. In other words, the employee is
separated from his job.
• In cases of misconduct or misbehavior, or
where the employee is not in a position to
improve his performance despite notice,
his/her employment is terminated.
 Grievance Handling
Grievance Handling Procedure
 Grievance Handling
• A complaint from an employee, when ignored
takes the form of a grievance. Grievance is a
complaint, genuine or otherwise, about any issue
relating to the job such as about supervisor,
wages, working conditions, and so on.
• It is necessary to create an in-built mechanism to
redress the grievances, at the earliest, at the
departmental level. If the individual grievances
are ignored, they may take the form of industrial
disputes.
 Grievance Handling Procedure
Receiving the
complaint, in Defining the
Getting the
writing, from the nature of
aggrieved dissatisfaction facts
employee

Reply
answer to Analysing
Following up
the and deciding
complainant
Welfare Administration
 Welfare Administration
• The personal manager is responsible for implementing the
legal provisions under the Factories Act, Which deals with
the safety, welfare and health of the industrial workers.
There are legal enactments to govern Payment of bonus,
minimum wages, compensation, administration of various
benefits such as sickness benefits, and so on. In relation to
these issues, it is the primary job of personal manager to
ensure the legal compliance of the provisions of following
enactments
– The Payment of Wages Act, 1936.
– The Minimum Wages Act, 1948.
– The Workmen's Compensation Act, 1923.
– The Employee State Insurance Act, 1948.
– The Employee Provident Fund Act, 1952.
Job Evaluation
 Introduction
• Job evaluation is the technique of assessing
systematically the relative worth (in monetary
terms) of each job.
• It provides valuable insights into certain
questions such as why the chief executive is
paid the highest, why the production
supervisor in the shop floor is paid Iesser and
so on
 AIM
• To provide a basis for ranking jobs to grade
and group them under a salary scale.
• To ensure that job values are assessed on the
objective basis, from an analytical study of a
job content, to the extent possible
• To provide a database to facilitate the review
and update of Job vaIues
Merit Rating
 Introduction
• Merit rating is the process of evaluating the
relative merit of the person on a given job.
• It is an essential task of the personnel
manager to distinguish the meritorious
employees from the others, The data collected
from this task is used for strategic decisions
such as releasing an increment in pay,
promotion, transfer, transfer on promotion to
a critical assignment, or even discharge.
 Objectives
• To determine salary increments
• To decide who has to be transferred, promoted,
or demoted
• To enhance employee morale, and thus, stimulate
positive thinking among employees about the
work and the organisation.
• To discover the workers' needs for retraining and
advanced training.
• To unfold the exceptional skills among the
employee, based on their innate potentials.
• To guide and monitor the performance of those
who are lagging behind.
 Questions in Unit-4
Concept of HRM, basic functions of HR manger
Manpower planning
Recruitment
Selection
Training and Development
Placement
Wage and Salary Administration
Promotion, Transfer & Separation
Grievance Handling
Performance Appraisal
Grievance Handling
Welfare Administration
Job evaluation and Merit rating