SUMMARY

This project covers the HRM system of the newly introduced firm
which is “Intelligent Software Company ltd”. This firm will be dealing in
designing system software for dealing with the hardware.

This project includes how Human resource planning is done,

Framework for procurement, recruitment policies, selection policies to
be adopted, Training and development, motivating the employees,
providing job description, job specification and job enrichment.

This project also includes performance appraisal, compensation

management which consist of salaries to be provided to the
employees, incentives to be provided, fringe benefits and employee
welfare.

This project includes the disciplinary rules which have to be

followed by the employees.

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 HRM SYSTEM OF INTELLIGENT SOFTWARE
COMPANY

INTRODUCTION

The human resources department is one, often overlooked in an enterprise. It is a

proven fact that an efficient Human Resources department should function without
fanfare. For instance, if a project team successfully brings into market a product on time
and within the budget limit, then it is a huge success. When the HR department manages
the administration of the enterprise effectively still goes unseen simple because the HR
department is mostly called in for when there are problems running in the organization.

The reality is very different. The HR department plays a vital role in the smooth
working of an enterprise, by tracking and investigating the timekeeping and work
patterns of the personnel, giving better information which form basis of forming
strategies.

However, the significance of human resources does not go unnoticed in the

software industry. There is now a large variety of applications obtainable to help the HR
department in their functioning.

Our project briefly explains about the HRM system we would like to implement
in our firm

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 HUMAN RESOURCE PLANNING

The process of Human Resource Planning is one of the most crucial complex and
managerial functions which embraces organization development, career planning and
succession planning..
The following is the Human Resource Planning which we would like to
implement in our firm.

HUMAN RESOURCE PLANNING

Overall Net New

Inventory Action Procedures
Long Range Requirement Human
of Present Programs for for
Objectives for Resource
Human Recruiting & Evaluating
and Plans Human Requirement
Resources Selecting Effectiveness
Resources Needed of Human
Personnel Resource
Planning

Short Term Inventory by Needed Plans for

Goals, Plans, Workforce occupational Replacements developing,
Programmes requirements categories, & Additions Upgrading,
& Budgets by occupational job skills
categories, Job Transforming
Skills, in recruiting &
Demographic selecting
Characteristics needed people

1. Objectives of Human Resource Planning:

In this we will include our business objectives on the basis of which the
ultimate mission or purpose to relate future human resources to future enterprise
needs will be fulfilled. The main purpose of this is that it helps in matching or fitting
the employee abilities to enterprise requirements, with an emphasis on future instead
of present arrangements. The objectives may be laid down for Short term i.e. one
year.

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 2. Estimating the future Organisational Structure or Forecasting Manpower
Requirements
In this we estimate the structure of the organization at the given point in time;
In this we determine the number and type of employees needed is determined. Many
environmental factors affect this determination. They include Business forecasts,
expansion and growth, design and structural changes, management philosophy,
government policy, product and human skills mix and competition.
Basically our management structure will be like the following
ORGANISATION STRUCTURE

CEO

Director
Sr. Manager Vice President
(operations)
(Business)

Project Manager Manager

(Tech Support) Sr. Manager

Shift Supervisors Head (Training)

Project Leader Project Leader
(Development) (Design)

Project Leaders
Development
Design Team
Team
Senior Technicians

Junior Technicians

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3. Auditing Human Resources
Once the future human resources needs are estimated, the next step is to
determine the present supply of manpower resources. This is done through what is called
“Skills Inventory”. A skills inventory contains data about each employee’s skills,
abilities, work preferences and other items of information which indicate his overall
value to the company

4. Job Analysis
After having decided how many persons would be needed, it is necessary to
prepare a job analysis, which records details of training, skills, qualification, abilities,
experience and responsibilities, etc. which are needed for a job. Job analysis includes the
preparation of job descriptions and job specifications.

5. Developing a Human Resource Plan

This step refers to the development and implementation of the human resource
plan, which consists in finding out the sources of labour supply with a view to making an
effective use of these sources. The first thing, therefore is to decide on the policy should
the, personnel be hired from within through promotional channels or should it be
obtained from an outside source. We would be adopting the policy which will be to fill
up higher vacancies by promotion and lower level positions by recruitment from the
labour market.

The following will be our framework in order to achieve our objectives:

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 FRAMEWORK OF PROCUREMENT

Recruitment Programme The Individual Sales Forecast Job Analysis

Applicant Work Load & Work Force Analysis Job Description

Employee Requisition Job Specification

Screening Devices

Application Blanks
The
The Reference Checks Organization
Individual
Interviews

Physical Tests
Examination/
Medical Checks

Induction

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TRAINING AND DEVELOPMENT

Every organization needs to have well-trained and experienced personnel to

perform the activities that have to be done. If the current or potential job occupant can
meet this requirement, training is not important. But when this is not the case, it is
necessary to raise the skill levels and increase the versatility and adaptability of
employees. Our company will perform the function of training and development through
the following:

In company / External Programmes:

The Company needs to formulate its thinking regarding participating in

programme offered by external agencies like educational management institutes,
government institutions and consultant programme, vis-à-vis conducting its own in-house
programme. Where employee numbers are small, it may not be worthwhile to set up a
training establishment and conduct in-house programme, but as the number increases,
this option may offer a distinct possibility. There is the cost aspect to be considered: for
the cost of sending a participant to an external programme, several employees could be
trained within an organization. Yet, the advantage of an external programme could be a
breath of fresh air through discussion with participant and a fresh approach could be
brought in to the organization and its problems.

In our company employees will be send for such programs for their development;

Training Budgets:

A training budget for each internal programme has be prepared, which would
include cost of facilities like training room, food, transport, guest faculty, if any, and cost
of teaching materials. In fact, the cost to the organization should also include the wages
and salaries of employee participant who would be temporarily pulled out their regular
jobs and sent for training. The reasons for costing the trainee employee’s salary would be
that they would not be making any contribution to the company during the training
period, and that this is an addition burden on the company’s finances.

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 So in short training budgets will be provided by us, but we will not be paying any
salary to them.

TYPES OF TRAINING WHICH WILL BE PROVIDED

Training methods have a number of overlapping objectives. They have to be

chosen in relation to the programme design requirements. The main objective of
individual training methods could be: demonstration value, developing interest and
finally appeal to senses.

Demonstration Value:
Complete demonstration of job requirements enables the trainee to grasp the
meaning of ideas, concepts, or procedures visually. Such a method can be used
effectively as an aid to overcome the “breakdown of communication”. Trainees
remember things that they see and hear, much longer than they do information they
receive through talks or reading alone.

Developing interest:

One of the important factors to be kept in mind in choosing a method is its ability
to hold and arouses the interest of the trainee in the learning situation. A trainee has to
consider alternative methods of presenting training material to participants in order to
stimulate their interest and facilitate retention of the matter. For instance, if traditional the
matter has been presented through lectures, perhaps audio visual methods could be used,
or instead project work be assigned which would mean learning by doing or researching
the subject oneself.

Appeal too many senses:

From the trainer’s point of view, it would be beneficial to utilize as many of the
trainer’s senses as possible, in order to improve retention of learning. The trainer has to
understand and identify the problem area i.e., he has to examine whether there is a
problem with the manner in which the task is done. Secondly selecting the appropriate
method would be dependent on the level of the trainee in an organization’s hierarchy.

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Finally, before selecting training methods, the trainer should keep in mind about cost
effectiveness.

PROGRAMS TO BE PROVIDED FOR TRAINING

Apprenticeship programme:

Apart from the requirements under apprenticeship Act, various we will have our
own apprenticeship programme where in the workers are employed on a small stipend to
learn the job first and after satisfactorily completing the training they are absorbed in the
industry.

Simulation Methods:

Simulation is a technique which duplicates, as nearly as possible, the actual

condition encountered on a job. This training will also be provided by us.

Knowledge-based Methods:

In this method of training, an effort is made to expose participants to concepts and

theories, basic principles, and pure and applied knowledge in any subject any area.
Basically this training would be for creating an awareness of the knowledge of
fundamentals.

Experiential Methods:

The emphasis in this category is on achieving through group processes and

dynamics, a better understanding of oneself and others. It has been asserted that
attitudinal helps and individual to improve his comprehension of self, others, group
behaviour and personal interaction. Such knowledge and understanding will help the
employees to solve the problems of human relationships.

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PERFORMANCE APPRAISAL

The performance appraisal of our company will be based on the following

methods:

Graphic rating scale:

The most widely used performance evaluation technique is a graphic rating scale. In
this technique, the evaluator is presented with a graph and asked to rate employees on
each of the characteristics. In this only two things are considered which are: quality of
performance and ability to perform the job

Forced choice:

In this the evaluator must choose from a set of descriptive statements abut the
employee.

Management by objectives: -

Another individual evaluation method in use today is management by objectives

(MBO). In this system, the supervisor and employee to be evaluated jointly set objectives
in advance for the employee to try to achieve during a specified period.

Critical incident technique:

In this technique, personnel specialists and operating managers prepare lists of

statements of very effective and very ineffective behavior for an employee.

Ranking:

In ranking method, the evaluator is asked to rate employees from highest to

lowest on some overall criterion. In our firm we will pick the top and the bottom
employees first and then select the next highest and lowest.

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Paired comparison:

This approach makes the ranking method easier and more reliable. First, the
names of the persons to be evaluated are placed on separate sheets (or cards) in a
predetermined order, so that each person is compared to all others to be evaluated.

MOTIVATION

Motivation will be provide to our employees through the career developments

programs, promotion and transfers, increasing morale, additional incentives, recognition
and others.

1. CAREER DEVELOPMENT PROGRAMS

Career development programs are often instituted to meet the unique needs
of particular employees. Although many different groups and issues may be
targeted for development, some of the more common programs are those that
focus on work-family issues, outplacement, entrenched employees, late-career
employee, disadvantages employees, fast tract employees and supervisors.

Work-family programs

This focuses on increasing use of flexible work schedules and training for
managers in implementing the schedule, opening of more on-site child-care
centers, and greater use of paid leave for fathers and adoptive parents, more
programs that set goals for advancing women into senior management positions and
increasing number of companies holding managers accountable for meeting these goals.

Relocation Assistance and hiring practices

This focuses on the support provided by firms in assisting spouse of employees

during employee relocation. The amount and nature of support could vary from company
to company. Some firms have altered their policy on nepotism to allow for hiring both
spouses.

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Work family seminars and flexible HR practices

This allows for organizations to design programs to help employees manage their
work family conflicts and coping strategies. Organizations are changing their practices
for recruitment, travel, transfer, promotions, scheduling hours, and benefits to meet the
needs of the larger number of dual career couples.

Flexible Work schedules

These are being increasingly instituted at the workplace. These include flextime,
job sharing, part time work, working from home, compressed workweeks, temporary
workweeks etc…. such programs enable employees to address their work and family
concerns and reduce their potential stress or conflicts between their various life roles.
Telecommuting has becomes very popular.

Outplacement program

This program during retrenchment and downsizing are now a professionally

managed process in most organizations. The objective here is to assist the effected
employees in making the transition to new employment. It could involve re-skilling for
new, more relevant skills per market demand so finding a new job is easier.

Special programs for women, Minorities and Employees with Disabilities:

With more employees in these special categories entering the workforce there is
an increase need to recognize the importance of assisting these employees with their
career needs.

Fast Track employees

These identified usually as ‘stars’ with high potential for future are placed on a
fast track program to enable them to move senior positions quickly and also helps in
retaining this critical talents. Organizations must provide considerable feedback, training
and counseling to these employees as well as offer quicker job changes and more

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challenging job assignments, particularly during the employee’s first few years on the
job.

PROMOTION AND TRANSFERS

We would be adopting the policy which will be to fill up higher vacancies by

promotion and lower level positions by recruitment from the labour market.
We will be considering vertical and horizontal promotions. Under vertical
promotions employee will be promoted from one rank to the next higher rank in the same
department. It will help employees to go up while increasing their specialization in their
area of operation.
Under the horizontal policy, an employee will be transferred fro a position in one
department to a position of higher rank in another department. But for this flexibility of
the employee is required.
Transfer will be provided to employees, which will help them to develop and get
more knowledge

IMPROVING MORALE

The following are the measures which will be taken by us to increase the morale
in order to bring the job satisfaction to the employees and reconcile individual interests
with the interests of the organization.

a) Creation of the whole job- under this complete jobs will be assigned to the
workers in which the complexity of the job is increased in order to appeal to their
higher needs
b) Job Enrichment- Job enrichment will help the employees to deal with the
dissatisfaction by increasing the depth. Under this employees will be given
responsibilities for setting their own work pace, for concerning their own errors and
deciding the best way to perform a particular task.
c) Modifying the work environment: This will be provided by developing work
groups, developing social contacts of the employees, use of music at intervals,
regular rest breaks, giving home made lunch and tea coupons.

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 d) Having counseling sessions: There will be counseling sessions held in order to
build the relationship with the employee, every formal and informal aspects will be
taken in this counseling session.

INCENTIVES & RECOGNITION

Incentives will be provided to the employees if the work done by them is accurate
and has been given on time. It is in short based on quality, quantity and time. Incentives
are provided to the employees on half yearly basis.

Recognition will be given to the employees if the work done by them has resulted
into the utmost profits. Such recognition can be given through

a) Increment in the Salary

b) A free trip
c) Gifts or certificate of good performance

COMPENSATION MANAGEMENT

The working hours of the company will be divided into three shifts i.e. 8am to
5pm, 2pm to 11pm and 6pm to 3am. This working hours are prepared in order to make
the company achieve its objectives at a very fast pace

SALARY

Salary will be provided to the employees on the basis of their post and work
quality.

INCENTIVES

Incentives will be provided to the employees on half- yearly basis.

FRINGE BENEFITS

Fringe Benefits will be given to the employees in the form of following:

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 a) Pension Schemes

Pension Shemes will be provided to the employees if they work in the firm
for a period of more than 5 years

b) Bonus

Bonus will be provided to the employees on the occasion of Diwali and

New Year i.e. double salary

c) Security

Benefits will be given to the employees, which will enhance their personal
and family security with regard to illness, health accident or life insurance

d) Financial Assistance

Financial assistance will be provided to the employees for his personal

needs.

EMPLOYEE WELFARE

For the welfare of the employee following facilities are provided

a) Urinals lavatories, wash basins, bathroom

b) Work place sanitation and cleanliness
c) Favorable temperature will be provided
d) Provisions for clean drinking waters
e) Basic medical aid
f) Recreational rooms
g) Counseling rooms to deal with stress of the employees
h) Pick and Drop services will be provided to the employees of night shifts and mid-
day shifts
i) Canteen facilities

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DISCIPLINARY POLICIES

The employees have to fulfill the disciplinary policies of the firm which includes
the following:

a) Maintaining Secrecy

An employee has to maintain the business secrecy. He must not disclose any
confidential information to any employee or other person to whom he is not
authorized to communicate

b) Leave

An employee will allowed sick leave of 12 days and casual leaves of 20 days.

c) Punctuality

An employee must report to his work in time. Failure of reporting on time to

work for more than 3 days in a month will result into penalty

d) Part-time work

No employees is allowed to take any kind of part-time work for any private or
public bodies specially our competitors

e) Acceptances of Gift

No employees is allowed to take any kind of gifts from their rivalries

If the above policies are not followed by the employees it will result into
reduction in increment, salary, demotion or termination of the employee

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CONCLUSION

To conclude, our project consisted of the complete HRM system which we

would have liked to include in our software company.

Human Resources are the key to economic development. However they are
being wasted through unemployment, obsolescence of skills, lack of work
opportunities, poor personal practices and the hurdles to adjust to the change

HR Department is one of the most important aspects in every business

organization. Basically it is the responsibility of the HR Department to solve the
problems prevailing between the employees. They are the ones who connect the
whole firm and helps in achieving the predetermined objectives

Thus, whether the company makes profit or loss it is the ones who are
responsible for such outcomes are the HR Department.

Thus, every business organization is needed to have a strong HRM system for
its success.

Our project is an attempt to describe what will be our HRM system for our
new firm.

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BIBLIOGRAPHY

This project is completed through information collected from the following

sources:

Books

 Human Resource Management by Mr. Rajkumar Masreen, Sikki Manipal

University

Website

 Wikipedia

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