Introduction to h.

Human Resource Management

Human Resource Management (HRM) is an operation in companies designed to
maximize employee performance in order to meet the employer's strategic goals and
objectives. More precisely, HRM focuses on management of people within companies,
emphasizing on policies and systems.
In short, HRM is the process of recruiting, selecting employees, providing proper
orientation and induction, imparting proper training and developing skills.

Edwin Flippo defines- Human Resource Management as “planning,

organizing, directing, controlling of procurement, development,
compensation, integration , maintenance and separation of human
resources to the end that individual, organizational and social objectives
are achieved.”

The National Institute of Personal Management (NIPM) of India has defined

human resources – personal management 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 having
regard for the well – being of the individuals and of working groups, to
enable them to make their best contribution to its success”.

Human resources mean the energies, skills, knowledge and physical

strength of the people at work.Human resources comprise the value of the
productive capacity of entire work force of any Organisation.

A resource is a source or supply from which a benefit is produced. ... An item

becomes a resource with time and developing technology.
Typically resources are human, materials, energy, services, knowledge, or
other assets that are transformed to produce benefit and in the process may
be consumed or made unavailable
Objectives of HRM

Societal objective.To be socially responsible to the needs and challenges

of society while minimizing the negative impact of such demands upon the
organization. The failure of organizations to use their resources for
society’s benefit may result in restrictions. For example, societies may pass
laws that limit human resource decisions.

Organizational objective.To recognize that HRM exists to contribute to

organizational effectiveness. HRM is not an end in itself; it is only a means
to assist the organization with its primary objectives. Simply stated, the
department exists to serve the rest of the organization.

Functional objective. To maintain the department’s contribution at a level

appropriate to the organization’s needs. Resources are wasted when HRM
is more or less sophisticated than the organization demands. A
department’s level of service must be appropriate for the organization it
serves.

Personal objective. To assist employees in achieving their personal goals,

at least insofar as these goals enhance the individual’s contribution to the
organization. Personal objectives of employees must be met if workers are
to be maintained, retained and motivated. Otherwise, employee
performance and satisfaction may decline, and employees may leave the
organization.

This primary objective can further be divided into the following sub-
objectives:

1. To help the organisation to attain its goals effectively and efficiently by

providing competent and motivated employees.

2. To utilize the available human resources effectively.

3. To increase to the fullest the employee’s job satisfaction and self-

actualisation.
4. To develop and maintain the quality of work life (QWL) which makes
employment in the organisation a desirable personal and social situation.

5. To help maintain ethical policies and behaviour inside and outside the
organisation.

6. To establish and maintain cordial relations between employees and

management.

7. To reconcile individual/group goals with organisational goals.

Why Is Human Resource Management Important to All Managers?

Perhaps it's easier to answer this by listing some of the personnel mistakes
you don't want to make while managing. For example, you don't want to:

1. Hire the wrong person for the job.

2. Experience high turnover
3. Have your people not doing their best
4. Waste time with useless interviews
5. Have some employees think their salaries are unfair and inequitable
relative to others in the organization
6. Allow a lack of training to undermine your department's effectiveness
7. Commit any unfair labor practices

Functions of Human Resource Management

Human Resource Management functions can be classified in following

three categories.

1. Managerial Functions,
2. Operative Functions, and
3. Advisory Functions
The Managerial Functions of Human Resource Management are as
follows:

1. Human Resource Planning - In this function of HRM, the number and

type of employees needed to accomplish organizational goals is
determined. Research is an important part of this function, information is
collected and analyzed to identify current and future human resource needs
and to forecast changing values, attitude, and behaviour of employees and
their impact on organization.

2. Organizing - In an organization tasks are allocated among its members,

relationships are identified, and activities are integrated towards a common
objective. Relationships are established among the employees so that they
can collectively contribute to the attainment of organization goal.

3. Directing - Activating employees at different level and making them

contribute maximum to the organization is possible through proper direction
and motivation. Taping the maximum potentialities of the employees is
possible through motivation and command.

4. Controlling - After planning, organizing, and directing, the actual

performance of employees is checked, verified, and compared with the
plans. If the actual performance is found deviated from the plan, control
measures are required to be taken.

The Operative Functions of Human Resource Management are as

follows:

1. Recruitment and Selection - Recruitment of candidates is the function

preceding the selection, which brings the pool of prospective candidates for
the organization so that the management can select the right candidate
from this pool.

2. Job Analysis and Design - Job analysis is the process of describing the
nature of a job and specifying the human requirements like qualification,
skills, and work experience to perform that job. Job design aims at outlining
and organizing tasks, duties, and responsibilities into a single unit of work
for the achievement of certain objectives.
3. Performance Appraisal - Human resource professionals are required to
perform this function to ensure that the performance of employee is at
acceptable level.

4. Training and Development - This function of human resource

management helps the employees to acquire skills and knowledge to
perform their jobs effectively. Training an development programs are
organized for both new and existing employees. Employees are prepared
for higher level responsibilities through training and development.

5. Wage and Salary Administration - Human resource management

determines what is to be paid for different type of jobs. Human resource
management decides employees compensation which includes - wage
administration, salary administration, incentives, bonuses, fringe benefits,
and etc,.

6. Employee Welfare - This function refers to various services, benefits,

and facilities that are provided to employees for their well being.

7. Maintenance - Human resource is considered as asset for the

organization. Employee turnover is not considered good for the
organization. Human resource management always try to keep their best
performing employees with the organization.

8. Labour Relations - This function refers to the interaction of human

resource management with employees who are represented by a trade
union. Employees comes together and forms an union to obtain more voice
in decisions affecting wage, benefits, working condition, etc,.

9. Personnel Research - Personnel researches are done by human

resource management to gather employees' opinions on wages and
salaries, promotions, working conditions, welfare activities, leadership, etc,.
Such researches helps in understanding employees satisfaction,
employees turnover, employee termination, etc,.

10. Personnel Record - This function involves recording, maintaining, and

retrieving employee related information like - application forms,
employment history, working hours, earnings, employee absents and
presents, employee turnover and other other data related to employees.

Objective :-

HRM helps a company to achieve its objective from time to time by creating a
positive attitude among workers. Reducing wastage and making maximum use of
resources etc.

Facilitates professional growth :-

Due to proper HR policies employees are trained well and this makes them ready
for future promotions. Their talent can be utilized not only in the company in
which they are currently working but also in other companies which the
employees may join in the future.

Better relations between union and management :-

Healthy HRM practices can help the organization to maintain co-ordinal

relationship with the unions. Union members start realizing that the company is
also interested in the workers and will not go against them therefore chances of
going on strike are greatly reduced.

Helps an individual to work in a team/group :-

Effective HR practices teach individuals team work and adjustment. The

individuals are now very comfortable while working in team thus team work
improves.

Identifies person for the future :-

Since employees are constantly trained, they are ready to meet the job
requirements. The company is also able to identify potential employees who can
be promoted in the future for the top level jobs. Thus one of the advantages of
HRM is preparing people for the future.

Allocating the jobs to the right person :-

If proper recruitment and selection methods are followed, the company will be
able to select the right people for the right job. When this happens the number of
people leaving the job will reduce as the will be satisfied with their job leading to
decrease in labor turnover.

Improves the economy :

Effective HR practices lead to higher profits and better performance by companies

due to this the company achieves a chance to enter into new business and start
new ventured thus industrial development increases and the economy improves.

Need for Human Resource Planning

An organisation must plan out its human resource requirements well in

advance so that it could complete effectively with its competitors in the
market. A well thought-out-human resource plan provides adequate lead
time for recruitment, selection and training of personnel. It becomes all the
more crucial because the lead time for procuring personnel is a time
consuming process and in certain cases one may not always get the
requisite type of personnel needed for the jobs. Non-availability of suitable
manpower may result in postponement or delays in executing new projects
and expansion programmes which ultimately lead to lower efficiency and
productivity further. To be specific, the following are the needs for human
resource planning:

Shortage of Skills: These days we find shortage of skills in people. So it is

necessary to plan for such skilled people much in advance than when we
actually need them. Non-availability of skilled people when and where they
are needed is an important factor which prompts sound Human Resource
Planning.

Frequent Labor Turnover: Human Resource Planning is essential

because of frequent labor turnover which is unavoidable by all means.
Labor turnover arises because of discharges, marriages, promotion,
transfer etc which causes a constant ebb and flow in the workforce in the
organisation.

Changing needs of technology: Due to changes in technology and new

techniques of production, existing employees need to be trained or new
blood injected into an organisation.

Identify areas of surplus or shortage of personnel: Manpower planning is

needed in order to identify areas with a surplus of personnel or areas in
which there is a shortage of personnel. If there is a surplus, it can be re-
deployed, or if there is a shortage new employees can be procured.

Changes in organisation design and structure: Due to changes in

organisation structure and design we need to plan the required human
resources right from the beginning.

Steps in Human Resource Planning (explained with diagram)!

Human resource planning is a process through which the right candidate

for the right job is ensured. For conducting any process, the foremost
essential task is to develop the organizational objective to be achieved
through conducting the said process.

Steps in Human Resource Planning

1. Analysing Organizational Objectives:

The objective to be achieved in future in various fields such as production,

marketing, finance, expansion and sales gives the idea about the work to
be done in the organization.

2. Inventory of Present Human Resources:

From the updated human resource information storage system, the current
number of employees, their capacity, performance and potential can be
analysed. To fill the various job requirements, the internal sources (i.e.,
employees from within the organization) and external sources (i.e.,
candidates from various placement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource:

The human resources required at different positions according to their job

profile are to be estimated. The available internal and external sources to
fulfill those requirements are also measured. There should be proper
matching of job description and job specification of one particular work, and
the profile of the person should be suitable to it.

4. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will

provide with the surplus or deficit of human resource. Deficit represents the
number of people to be employed, whereas surplus represents termination.
Extensive use of proper training and development programme can be done
to upgrade the skills of employees.

5. Formulating the Human Resource Action Plan:

The human resource plan depends on whether there is deficit or surplus in

the organization. Accordingly, the plan may be finalized either for new
recruitment, training, interdepartmental transfer in case of deficit of
termination, or voluntary retirement schemes and redeployment in case of
surplus.

6. Monitoring, Control and Feedback:

It mainly involves implementation of the human resource action plan.

Human resources are allocated according to the requirements, and
inventories are updated over a period. The plan is monitored strictly to
identify the deficiencies and remove it. Comparison between the human
resource plan and its actual implementation is done to ensure the
appropriate action and the availability of the required number of employees
for various jobs.
Methods of recruitment

Internal Recruitment - is a recruitment which takes place within the

concern or organization. Internal sources of recruitment are readily
available to an organization. Internal sources are primarily three -
Transfers, promotions and Re-employment of ex-employees.

Internal recruitment may lead to increase in employee’s productivity as

their motivation level increases. It also saves time, money and efforts. But a
drawback of internal recruitment is that it refrains the organization from new
blood. Also, not all the manpower requirements can be met through internal
recruitment. Hiring from outside has to be done.

Internal sources are primarily 3

Transfers

Promotions (through Internal Job Postings) and

Re-employment of ex-employees - Re-employment of ex-employees is

one of the internal sources of recruitment in which employees can be
invited and appointed to fill vacancies in the concern. There are situations
when ex-employees provide unsolicited applications also.

External Recruitment - External sources of recruitment have to be

solicited from outside the organization. External sources are external to a
concern. But it involves lot of time and money. The external sources of
recruitment include - Employment at factory gate, advertisements,
employment exchanges, employment agencies, educational institutes,
labour contractors, recommendations etc.

Employment at Factory Level - This a source of external recruitment in

which the applications for vacancies are presented on bulletin boards
outside the Factory or at the Gate. This kind of recruitment is applicable
generally where factory workers are to be appointed. There are people who
keep on soliciting jobs from one place to another. These applicants are
called as unsolicited applicants. These types of workers apply on their own
for their job. For this kind of recruitment workers have a tendency to shift
from one factory to another and therefore they are called as “badli”
workers.

Advertisement - It is an external source which has got an important place

in recruitment procedure. The biggest advantage of advertisement is that it
covers a wide area of market and scattered applicants can get information
from advertisements. Medium used is Newspapers and Television.

Employment Exchanges - There are certain Employment exchanges

which are run by government. Most of the government undertakings and
concerns employ people through such exchanges. Now-a-days recruitment
in government agencies has become compulsory through employment
exchange.

Employment Agencies - There are certain professional organizations

which look towards recruitment and employment of people, i.e. these
private agencies run by private individuals supply required manpower to
needy concerns.

Educational Institutions - There are certain professional Institutions which

serves as an external source for recruiting fresh graduates from these
institutes. This kind of recruitment done through such educational
institutions, is called as Campus Recruitment. They have special
recruitment cells which helps in providing jobs to fresh candidates.

Recommendations - There are certain people who have experience in a

particular area. They enjoy goodwill and a stand in the company. There are
certain vacancies which are filled by recommendations of such people. The
biggest drawback of this source is that the company has to rely totally on
such people which can later on prove to be inefficient.

Labour Contractors - These are the specialist people who supply

manpower to the Factory or Manufacturing plants. Through these
contractors, workers are appointed on contract basis, i.e. for a particular
time period. Under conditions when these contractors leave the
organization, such people who are appointed have to also leave the
concern.
Method of interviews

Definition: Job Satisfaction

Job satisfaction is defined as the extent to which an employee feels self-

motivated, content & satisfied with his/her job. Job satisfaction happens
when an employee feels he or she is having job stability, career growth and
a comfortable work life balance. This implies that the employee is having
satisfaction at job as the work meets the expectations of the individual.

Importance of Job Satisfaction

A satisfied employee is always important for an organization as he/she

aims to deliver the best of their capability. Every employee wants a strong
career growth and work life balance at workplace. If an employee feels
happy with their company & work, they look to give back to the company
with all their efforts. Importance of job satisfaction can be seen from two
perspectives i.e. from employee and employer perspective:

For Employees: Job satisfaction from an employee perspective is to earn

a good gross salary, have job stability, have a steady career growth, get
rewards & recognition and constantly have new opportunities.

For Employers: For an employer, job satisfaction for an employee is an

important aspect to get the best out of them. A satisfied employee always
contributes more to the company, helps control attrition & helps the
company grow. Employers needs to ensure a good job description to
attract employees and constantly give opportunities to individuals to learn
and grow.

The positive effects of job satisfaction include:

1. More efficiency of employees of workplace if they are satisfied with their

job.

2. Higher employee loyalty leading to more commitment.

3. Job satisfaction of employees eventually results in higher profits for
companies.

4. High employee retention is possible if employees are happy.

Job Satisfaction Factors

Job satisfaction is related to the psychology of an employee. A happy &

content employee at a job is always motivated to contribute more. On the
other hand, a dissatisfied employee is lethargic, makes mistakes &
becomes a burden to the company. The elements & factors which
contribute to job satisfaction are:

1. Compensation & Working conditions: One of the biggest factors of job

satisfaction are the compensation and benefits given to an employee. An
employee with a good salary, incentives, bonuses, healthcare options etc is
happier with their job as compared to someone who doesn’t have the
same. A healthy workplace environment also adds value to an employee.

2. Work life balance: Every individual wants to have a good workplace

which allow them time to spend with their family & friends. Job satisfaction
for employees is often due a good work life balance policy, which ensures
that an employee spends quality time with their family along with doing their
work. This improves the employee's quality of work life.

3. Respect & Recognition: Any individual appreciates and feels motivated if

they are respected at their workplace. Also, if they are awarded for their
hard work, it further motivates employees. Hence recognition is one of the
job satisfaction factors.

4. Job security: If an employee is assured that the company would retain

them even if the market is turbulent, it gives them immense confidence. Job
security is one of the main reasons for job satisfaction for employees.

5. Challenges: Monotonous work activities can lead to dissatisfied

employees. Hence, things like job rotation, job enrichment etc can help in
job satisfaction of employees as well.
6. Career Growth: Employees always keep their career growth part as a
high priority in their life. Hence, if a company helps groom employees and
gives them newer job roles, it enhances the job satisfaction as they know
they would get a boost in their career