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Human Resource Management

Human Resource Management


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Human Resource Management

Q1) Write down the differences between personal management and human resource management?

The history of human resource management traces its roots to the erstwhile personal management that was prevalent in the companies of a few decades ago. Though the two terms personal management and human resource management are interchangeably used by most of the authors, they are the key differentiators that make personal management (pm) different from human resource management (HRM) is clearly based on the foundation of behavioral science knowledge relating to the

handling of employees to motivate the organization goals . The focus is more proactive approach and pay attention to employee satisfaction and delight. Business goals and objective and the strategies that will enable this to happen are the foundation for HRM. The basic philosophy is driven by the theory y approach where the belief is that people like to work and do not prefer to be supervised and made to perform .the employee becomes a champion for the organization and its product and services. PM is that management style that deals with the control and reactive problem solving approach to resolve employees issues in a organizations. The philosophy for the PM approach relied on the theory x approach that believed that people do not naturally like to work and need to be coerced to work and often need to be driven to work . is more stick approach rather than carrot approach. Rigid rules of dos and dont exist and these provide the framework for employees behavior at the workplace. Employees welfare and format grievance system play a significant role here and there by managing industrial relations with high amount of trade union activity are highlighted. Very few organization today practice this style to people management, as the benefits and long term gains from a HRM approach , impact business results far more. HRM emphasizes on training as an important area of people management, which covers the following

Human Resource Management


Human Resource Management

Q2) Write note on the scope of HR in India?

Contrary to these forces, in INDIA the owner manager/ government/public sector manager was an industry icon and a national hero of sorts. The personnel management practices were dominant of the brick- and- motor industry. Though the approach it was largely welfare oriented and reactive in nature it served effectively for the large PSU organizations that built the countrys foundation. A large part of the workforce was migrant from the rural parts of the country and armed with educational qualifications that served as their passport to a secure future. Many left the country to study and pursue career overseas . This phenomenon was called brain drain and happened during 1990through 2005. The best of the Indian talent left the country. Per present statistics there are close to 1.7 million people of Indian origin in AMERICA according to the US census bureau. The INDIAN AMERICAN median family is $60,093 as against the national median family income of $38,885 left the country, the estimated buying power of the INDIAN AMERICANS in the United States is around US $20 billion, the high income clearly reflects the advanced educational levels achieved by Indian abroad. Its only in the past 10-12 years with the immense growth on account of the IT industry that winds of change began to blow. It was largely the advent of the information technology era in INDIA that brought with it the western management practices. MNCS started up their operations in INDIA the FDI (FOREIGN DIRECT INVESTMENT) went up steeply as the world saw the potential in the country human resources. In INDIA became a preferred location for MNCs primarily from the USA followed by others developed countries. It was natural for the MNCs setting up operations in INDIA to establish their existing and proven management practices that were successfully working in the organization back home. It also helped them manage their business similarly. This gave birth to a new generation of management as well as HRM

practices. New hiring methods new ways of paying salaries, new employment terms and most importantly increased focus on individual performance and outcome. There was

Human Resource Management

emphasis on deliverables and linking individual and team performance to business results and success. Given the highly educated workforce there was a de-emphasis in the role of the trade unions, the era of the trade unions dominance give way to the new order of individual negotiated salaries and terms and clearly performance linked assessment system. Another transformation that the Indian workplace witnessed was focused on the ethics and ethical practices in doing business it was only fair to except that with the weak legal system, it needed the support of the government policies and the corporate policies to beat the corruption that existed .this has significantly contributed to INDIA emerging as a preferred destination for doing business. All of this yielded to give the way to the birth of the professional manager. Professional manager today are a critical and essential part of the INDIAN corporate. The professional manager brought about a shift in the culture from a highly authoritarian approach of getting work done to more collaborative and participative approach. In the traditional Indian culture where the child is brought up to dependents on parents and superiors these shift was break through and took it time to manifest. The entrepreneurs who earlier operated in a secure, sheltered market and hardly face challenges , were challenged by the globalization that swept in with the liberalization policies and measure brought in by the Indian employee and his manager evolved. Together they stopped up to face the challenges head- on and to win not only in INDIA but also globally. The levers of a) low cost b) highly skilled c) English as the medium of education and it being the corporate language that enabled the flow of global business to INDIA? Hence human relations movement in INDIA has evolved very differently as compared to the developed economies of the USA and the UK. What is currently acting as a limitation is the enhanced awareness on the need for research based HRM practices. While there is a lot of work happening in education system to promote this.

Human Resource Management

Q3) Explain the critical steps in the human resource planning system?

The steps in the HRP process is a systematic set of activities carried out in a chronological manner. Each step needs to be evaluated and debated with all possible information gathered from the external as well as internal environment. We will attempt to discuss in details the critical steps that are part of the above system 1) PURPOSE OF HUMAN RESOURCE PLANNING: Human resource planning fulfils individual as well as organizational goals. What is essentially amounts to is striking a balance between the future human resource needs and the future enterprises needs. And this is done with the clear objective of maximizing the future on investment in human resource. And this objective may be laid down for a short- term. 2) ESTIMATING/FORECASTING THE FUTURE MANPOWER REQUIREMENTS: The first step in the process is to arrive at the desired organizational structure at a given point in time. Mapping this structure with the existing structure helps in identifying the gap in resource requirements. The number and type of employees needed have to be determined .in addition to the structure there are a number of external factors that affect this determination. They include business forecasts, competitor strategy, expansion plans, product/ skills mix changes, profit/ revenue growth projections, in addition to management philosophy and government policies. Forecasting provides the basic premises on which manpower planning is done. Forecasting is necessary for various reasons such as a) The challenges of the general economic business cycles have an influence on the short range and long run plans of all organizations . These are inflation, wages, prices, costs, and raw material supplies.

Human Resource Management


Changes in management philosophy and top management leadership styles.


An expansion/ growth initiative might need the business to use additional machinery and personnel, and re-allocation of facilities, all of which call for adequate advance planning of human resource.


The use of new technology requiring a change in the skills of workers as well as a change in the number of employees needed.


Very often, changes in the quantity or quality of products or services require a change in the organization structure. Plans have to be made for this purpose as well. .

3) AUDITING HUMAN RESOURCE: Once the future human resource needs are estimated, the next step is to determine the present supply of man power resources. This is done through what is called skills inventory a skills inventory contains data about each employee skill, abilities, work preferences and other items of information which indicate his worth to the company. Skills inventory are also referred to as competence dictionaries. This information is usually retained as part of the performance management system with the HR department. This step in the HRP system with the HR department this step in the HRP system helps identify the existing profile of the manpower and its efficiency. It helps highlight where the organization is vs. where it ought to be .the step concludes with identifying clear gaps in the skills/ manpower mix required to meet the upcoming business objectives.

4) JOB ANALYSIS After having decided how many people would be needed, it is necessary to prepare a job analysis. The recorded of training, skills, qualifications, abilities, experience, and responsibilities etc. as needed for a job are studied . job

analysis include the preparations of job description and job specifications.

Human Resource Management

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. Some important considerations at this point are: a) Specific roles/ discipline being hired for, of them which roles are pivotal for the business. b) Competencies and capabilities needed. c) Manager VS employee hiring. d) Hire internally VS. External sourcing. e) Planning for new skills through existing staff VS hiring new teams. f) In case of surpluses, planning for redeployment / reduction in workforce as required. g) Succession planning for key positions in the company.

Human Resource Management

Q4) With reference to the compensation and salary system what are the system that are helpful to raise the effectiveness of employee?

The term compensation management or alternative wage and salary administration revolves around designing and managing policies and methods of disbursing employee compensation. Traditionally it includes such areas as job evaluation, maintenance of wage structures, wage surveys, incentive administration, wage changes and adjustment, supplementary payouts, profit sharing, control of compensation costs, and other related pay items. Salaried often implies a status distinction because those who are on salary are generally white collar, administrative, professional , and executive employees whereas wage earners are designed as hourly ,non- supervisory, or blue collars . wage earner in some organization do receive full wage if they are absent for such reason as sickness, whereas salaried employees, especially at the lower levels, often receive overtime pay when they work over the standard work week. Compensation/ salary system are designed to ensure that employees are rewarded appropriately depending on what they do and the skills and knowledge required for doing a specific job. It must therefore provide for the following key factors in order to be effective. The following factors may be helpful to raise the effectiveness of employees. a) Signal to the employee the major objectives of the organizations: Therefore it must link to the overall goals and objective of the company .for example if doing a quality job is critical for the company its compensation system has to ensure that this is adequately rewarded. On the other hand if company values productivity and units produced, the compensation system would be designed such that productivity is rewarded.

Human Resource Management

b) Attract and retain the talent an organization needs : The needs to benchmark salaries o the prevalent market standard for the job /skills so that the company is able to attract the right talent. If a enterprise pays a salary lower that what the market does for that job /responsibility the probability that suitable candidate would take the job offer and join the company. Even if they do join subsequently when they find that the market pays more for that job they would likely quickly find a more remunerative job and leave the company. c) Motivate employees to perform effectively : As discussed at the outset, money is a key motivator and it often might be the only motivator for the most employees. Therefore ensuring that compensation is appropriately disbursed need to be taken care of while designing the compensation system. Jobs in the brick and motor production set ups would focus on higher incentive policies that would motivate the employees to produce more while the base- salary would be low. d) Create the type of culture the company seeks to engender: Compensation system plays a critical role as sponsors for the organizations culture. A performance driven culture would build

compensation policies that clearly and significant reward performance, a company that rewards employees who stay longer in the company with significant better incentive program. Hence we see how compensation systems are reflective of the organization over all philosophy of what its goal and objective are and how this can be linked to the salary payout.


Human Resource Management

Q5) What is competency? How it can be linked to the hr system?

First popularized by BOYATIZ competency is defined as a capacity that exists in a person that leads to a behavior that meets the job demands within parameters of organizational and that in-turn bring about the desired results. An underlying characteristic of a person results in effective and / or superior performance on the job. Competency can be thought of a as a tool that can be used to map best- in- class performance the best performer is always called the competent performer. Competencies are based on KNOWLEDGE- information accumulated in a particular area of expertise, SKILLS the demonstration of the expertise, MOTIVE- the recurrent thought that drives behavior , attitude-self- concept , value and self- image, TRAITS- a general disposition to behave in a particular way. LINKING COMPETENCY TO HR SYSTEM: One of the key benefits of the competency based management approach is its usage to build all of the others HR system such as recruitment, performance management, training and development, career development, compensation management and succession planning. Let study them one by one. 1) Recruitment and selection : The competency profile for a job serves as the reference for the candidate hunt for the position. It is used at multiple stages in the recruitment and selection process. a) Job description and competency profile shared with the recruitment consultant as well as hosted on the company internet site for prospective applications to view. b) Use the competencies to design the appropriate selection tests and other methods.


Human Resource Management

c) Assessment forms for interviewers to contain the competency list and specify the desired proficiency levels. 2) Performance management : Increasingly the focus in most organization using competency frameworks is to build competency frameworks is to build competency based performance assessment processes . the employees performance is assessed on the core tasks and results as well as on the competencies required for the job he/ she doing . if there are gaps between the desired proficiency and the current proficiency of the employee the employee is reviewed for development initiatives to improve the competency. 3) Training needs: As explained above the information on gaps in competencies are collated for employees across the organization and suitable training interventions are designed. The methodology used for competency improvement is usually action learning based . focus is on internalizing the learning by ensuring workplace application projects and activities. Manager support in making competency training useful is important. 4) Career planning: Competency assessments are popularly used for helping an employee discover his strength competencies and therefore serve as effective means for the employee to identify what roles/ jobs can be best for the competencies the employee possesses. Most career planning assessment and activities are built on enhancing the employees strength areas and identifying jobs that match the strength. 5) Compensation philosophy: While there is significant work done in researching competency based compensation the practical application of competency based compensation system is not as easy. The competency framework provides a common benchmarking of all jobs across the organization on the competencies required and the proficiency level for the competency. This framework is then mapped to levels or grades that create a job to level mapping. The level has a range of


Human Resource Management

compensation that can be paid for any job at a specific level. For example if there are 25 job clusters in a company. Each job clusters can have anywhere between 5to 17 jobs. Each job in the job cluster is mapped to a level in the company. So if a particular job cluster has 5 jobs each jobs has a set of competencies and proficiency and this determine the level of the job and let us assume it maps to level 42 in the compensation system .all levels 42 jobs are mapped to compensate system . All levels 42 job are mapped to compensate range with a minimum salary of Rs 45000 and a maximum salary of Rs 120000 .this range specifies the recommended salary range for an employee in this job. 6) Succession planning: Competency based management is most effective in succession planning initiates. Competency assessment is a widely used to identify and nurture talent in organizations. Most succession planning decisions use the competency assessment data for the employee and this along with the career planning data are used to ascertain employee readiness and inclination for new role and responsibilities in the critical roles identified for succession planning.


Human Resource Management

Q6) Dynamic learning is an organization that wants to receive the hr policies. It has conducted a survey the result of the survey indicated that there is employee unrest, trade less, asentism more grievance that all clearly indicate low morale. Suggest the measure that can be taken to improve employee morale?

In a dynamic organization faces a lot of the problem. So the company had decided to create a HR policies survey to know what the main problem in the company is. The hr policies indicated in the survey that there is employee unrest in the organization and TRADELESS ASENTISM of the workers in the organization and there is more grievances in the company we can be solve these problems in the organization by taking the improving employee effectiveness morale. Improving Morale There are a number of measures which can be used to control the warning signals of the low morale. The following are the positive measure to be taken to bring job satisfaction to the employees and reconcile individual interests with the interests of the organization 1) Creation of whole jobs: Under this method, complete job are assigned to employees. The complexity of a job should be increased so that it may appeal to their higher needs. 2) Job enrichment: It tries to deal with dissatisfaction by increasing job depth. Under this, individual employees may be given responsibility for setting their own work place for concerning their own errors, and/ or for deciding on the best way to perform a particular task.


Human Resource Management


Building responsibility in to a job : Employee should encourage participating and if possible be held responsible for taking decisions some delegations of responsibility from the managers to the employee could be useful in improving employee ownership.


Managerial effectiveness: This can be achieved by: a) Developing work groups b) Improving the social contacts of the employee _ time way from work in team building and fun activities. c) Managerial coaching discussed above. d) Employee stress management activities.

5) Flexing working hours : Flex time/ work from home provisions allow employee to arrange their work hours to suit their personal needs and life- styles. This is particularly suited to situations with fluctuating workloads. Flextime employees are responsible for co-ordination their function with their employees and there by have more responsibility and autonomy. 6) Rotation of the jobs: This reduces employee boredom which arises out of the monotonous nature of his work. 7) Incentive and profit sharing plans : Morale can be improved by effective incentive and profit sharing schemes. Incentive schemes are effective in improving workplace morale they need to carefully design well communicated and implemented to be effective. In addition to its economic aspects, profit sharing has also psychological aspects relating to friendly move by the management in providing the employees an opportunity to participate in the profits.