Human

Resource
Management
1
Let us understand it by dividing the term into its subparts.
Human people, us
Resource assets/costs for organizations
Management co-ordination and control to achieve
set goals But humans, unlike other resources in the
context of work and management, cause problems.


Importance of Human Factor
1.Output will be greater than the input
2.Each individual is different from culture, education,
environment, background etc
3.We cant purchase the loyalty, dedication, devotion
towards the organisation.
4.Time passes human factor can bring experience to
organisation to accept the challenges
5.Recent developments like legislation, trade unions
enhanced their importance
Personnel Management Vs HRM
Dimension Personnel Management HRM
1.Employment
contract
Written contract Aim to go beyond
contract
2.Rules Importance of devising clear
rules
Impatience with rule
3.Management
action
Procedures Business need
4.Behaviour
referent
Norms/customs and
practices
Values/mission
5.Managerial task Monitoring Nurturing
7.Initiative Piecemeal integrated
8.Speed of decision Slow Fast
9.Management role Transaction Transformational
10.Communication Indirect Direct
11.Prized management
skills
Negotiation Facilitation
12.Selection Separate, marginal
task
Integrated, key task
13.Pay Job evaluation Performance related
14.Labour
management
Collective bargains
contract
Performance based
Job categories Many Few
Job design Division of labor Team work
Conflict handling Reach temporary
truce
Manage climate &
culture
T&D Controlled access to
courses
Learning companies
Focus of attention for
interventions
Personal procedures Cultural, structural
& personnel
strategies
Respect for employees Labor is treated tool People are as assets
Shared interest Interest of
organisation most
Mutual interest
Evolution Proceeds HRM Latest in evaluation
Locus of control External Internal
Organizing principles top-down,centralised Decentralized
Nature of HRM
1.Ogranisations is the people who manage.

2.HRM involves acquisitioning, developing, maintaining

3.Decisions relating to employees must be integrated.

4.Decisions made must influence the effectiveness of an organisation.

5.HRM functions are confirmed to Non-business organisation also.
Objectives
Personal Objectives:-
To assist employees in achieving their personal goals, these goals
enhance the individuals contribution to the organisation.
Functional Objectives:-
To maintain the departments contribution at a level appropriate to the
organization's needs
Organizational Objectives:-
To recognize the role of HRM in bringing about organizational
effectiveness.
Societal Objectives:-
To be ethical and socially responsible to the needs and challenges of the
society.
Minimizing the negative impact of such demands on organisation.


Evolution of HRM in India
Period Development Status Outlook Emphasis Status
1920s -1930s Beginning Pragmatism
of Capitalist
Statutory, Welfare,
paternalism
Clerical
1940s -1960s Struggling for
reorganization
Technical,
legalistic
Introduction of
Techniques
Administration
1970s-1980s Achieving
sophistication
Professional,
Legalistic,
Impersonal
Regulatory, Conforming,
Standards on functions
Managerial
1990s Promising Philosophical Human values,
productivity through
people
Executive
Human Resource Management
Human Resource Management includes all
activities used to attract & retain employees
and to ensure they perform at a high level in
meeting organizational goals.
These activities are made up of
1. Recruitment & selection.
2. Training and development.
3. Performance appraisal and feedback.
4. Pay and benefits.
5. Labor relations.
Strategic Human Resource
Management

The process of aligning the firms human
resource management goals and policies with
the strategic goals of the enterprise to improve
business performance

Categories of HR activities
Improving HR effectiveness
The Paradigm shift
From
Performance Evaluation
To
Performance Management
Challenges in Performance Management

To create a culture that inspires
To match organisation objectives to individual
aspirations
Equip people with skills
Develop clear growth paths
Mentoring/ Partnership in career planning
Empower people to take decisions without fear of
failing
Embed teamwork in all operational processes



Above All
A change in culture,
to acquire the new paradigm

The Paradigm shift
From
MBO Approach

To
Balanced Scorecard Approach
The Paradigm shift



From
Superior Bias
To
360 degrees
Potential Appraisal
Performance
Counselling

PARADIGM SHIFT : REWARDS AND
COMPENSATION
From
Fixed Compensation




To
Pay for Performance
Team Rewards
ESOP




Components of a HRM System
Recruitment
& Selection
Labor
Relations
Pay &
Rewards
Performance
Appraisal &
Feedback
Training &
Development
Figure 10.1
HRM Components
Component should be consistent with the others,
organization structure, and strategy.
Recruitment: develop a pool of qualified applicants.
Selection: determine relative qualifications &
potential for a job.
Training & Development: ongoing process to
develop workers abilities and skills.
Performance appraisal & feedback: provides
information about how to train, motivate, and reward
workers.
Managers can evaluate and then give feedback to
enhance worker performance.
HRM Components
Pay and Benefits: high performing employees should be
rewarded with raises, bonuses.
Increased pay provides additional incentive.
Benefits, such as health insurance, reward membership in
firm.
Labor relations: managers need an effective
relationship with labor unions that represent workers.
Unions help establish pay, and working conditions.
If management moves to a decentralized
structure, HRM should be adjusted as well.
HRM Legal Environment
Management of HR is a complex area. There are many
federal, state and local regulations.
Equal Employment Opportunity (EEO): ensures all
citizens have equal opportunity for employment without
regard to sex, age, race, origin, religion, or disabilities.
Makes effective management of diversity crucial.
Equal Employment Opportunity Commission (EEOC)
enforces laws.
Managers must take steps to ensure discrimination does
not occur.
Human Resource Planning
HR Planning includes all activities managers
do to forecast current and future HR needs.
Must be done prior to recruitment and selection
Demand forecasts made by managers estimate the
number & qualifications the firm will need.
Supply forecasts estimate the availability and
qualifications of current workers and those in the labor
market.
Human resource forecasting is the process
by which an organization estimates
its future human resources needs.
three ranges of human resource
forecasting
1. Short range forecasting (0-2 years)
2. Intermediate range forecasting (2-5
years) and
3. Long range forecasting (beyond 5 years)


Recruitment & Selection
Human Resources
Planning
Job Analysis
Determine recruitment
& selection needs
Figure 10.2
Steps in the Recruitment and
Selection (staffing) Process
HRM Planning: Outsourcing
Outsourcing: managers can decide to contract with
outside workers rather than hiring them.
Outsourcing is more flexible for the firm.
Outsourcing often provides human capital at a lower cost.
Outsource problems: managers lose control over
output.
Outsource contractors are not committed to the firm.
Unions typically are against outsourcing that has
potential to eliminate members jobs.
HRM Planning: Job Analysis
J ob analysis determines the tasks, duties and
responsibilities of the job.
A job analysis should be done for each job in the
organization.
Job analysis can be done by:
Observe current workers.
Questionnaires filled out by worker and managers.
Current trends are toward flexible jobs where duties are
not easily defined in advance.
Job Analysis
The procedure through which managers determine the
duties of the job, and the kinds of people (in terms of
skills and experience) that should be hired for the job

Job Description
Developed from information collected in the job
analysis
Most contain sections that cover:
Job identification
Job summary
Responsibilities and duties
Authority of incumbent
Standards of performance
Working conditions
Job specification (the human requirements of the job)
Job Specification

A list of the skills and aptitudes sought in
people hired for the job
Identification of these skills and aptitudes are
from information collected in the job analysis

Employee Recruiting
Recruiting
Attracting a pool of viable job applicants.

Sources of Recruits
Current employees
Advertising
The Internet
Employment agencies
Public
Private
Contingent workers and
temporary help agencies
Executive recruiters
Employee referrals
Walk-ins
University and College
recruiting
Recruiting for a diverse
workforce
1. TRANSFERS
The employees are transferred from one department to
another according to their efficiency and experience.

2. PROMOTIONS
The employees are promoted from one department to another
with more benefits and greater responsibility based on
efficiency and experience.

3. Others are Upgrading and Demotion of present employees
according to their performance.

4. Retired and Retrenched employees may also be recruited
once again in case of shortage of qualified personnel or
increase in load of work. Recruitment such people
save time and costs of the
organisations as the people are already
aware of the organisational culture and
the policies and procedures.

5. The dependents and relatives of
Deceased employees and Disabled
employees are also done by many
companies so that the members of the
family do not become dependent on the
mercy of others.
Recruitment
External recruiting: managers look outside the firm for
people who have not worked at the firm before.
Managers advertise in newspapers, hold open houses,
recruit at universities, and on the Internet.
External recruitment is difficult since many new jobs have
specific skill needs.
A multi-prong approach to external recruiting works best.
I nternal Recruiting: positions filled within the firm.
Internal recruiting has several benefits:
Workers know the firms culture, may not have new
ideas.
Managers likely already know the candidates.
Internal advancement can motivate employees.
Honesty in Hiring
Managers may be tempted to over-rate the
attractiveness of the job and firm.
They feel if they are honest, person will not work there.
Research indicates this is a poor strategy.
Realistic J ob Preview: provides an accurate
overview of the job.
Avoids having to hire, train and then lose workers.
Selection Tools
Background
Information
Interviews References
Paper tests
Physical
Ability tests
Performance tests
Selection
Figure 10.3
Selection Process
After a pool of applicants are identified, qualifications
related to the job requirements are determined:
Background I nformation: includes education, prior
employment, college major, etc.
I nterview: almost all firms use one of two types:
Structured interview: managers ask each person the same
job-related questions.
Unstructured interview: held like a normal conversation.
Usually structured interviews preferred; bias is possible.
Physical Ability Test: measure strength & endurance.
Good for physically demanding jobs.
Selection Process
Paper & Pencil Tests: Either an ability and personality
test.
Ability test: assess if applicant has right skills for the job.
Personality test: seek traits relevant to job performance.
Be sure test is a good predictor of job performance.
Performance Tests: measure job performance.
Typing speed test is one example.
Assessment Center: candidates assessed on job-related
activities over a period of a few days.
References: outside people provide candid
information about candidate.
Can be hard to get accurate information.
Reliability & Validity
Selection tools must be reliable and valid.
Reliability: the degree to which the tool measures the
same thing each time it is used.
Scores should be close for the same person taking the
same test over time.
Validity: Does the test measure what it is supposed to
measure?
Example: does a physical ability test really predict the job
performance of a firefighter?
Managers have an ethical and legal duty to develop
good selection tools.
Training & Development
Training: teach organizational members how to perform
current jobs.
Help workers acquire skills to perform effectively.
Development: build workers skills to enable them to
take on new duties.
Training used more often at lower levels of firm,
development is common with managers.
A Needs Assessment should be taken first to determine
who needs which program and what topics should be
stressed.
Types of Training
Training Development
Apprentice-
ships
On-the-job
Training
Classroom
Instruction
On-the-job
Training
Classroom
Instruction
Formal
Education
Varied
work
experiences
Needs
Assessment
Figure 10.4
Types of Training
Classroom I nstruction: workers acquire skills in
classroom.
Includes use of videos, role-playing, simulations.
On-the-J ob Training: learning occurs in the work
setting as worker does the job.
Training given by co-workers and can be done
continuously.
Apprenticeships: worker contracts with a master
worker to learn a skill.
Types of Development
Varied Work Experiences: Top managers must build
expertise in many areas.
Workers identified as possible top managers given many
different tasks.
Formal Education: tuition reimbursement is common
for managers taking classes for MBA or similar.
Long-distance learning can also be used to reduce travel.
Whatever training and development efforts
used, results must be transferred to the
workplace.
Performance Appraisal & Feedback
Trait Appraisals: evaluate on traits (skills, abilities)
related to the job.
Problem: Even though a worker has the trait, they may
not use it in the job and it is hard to give feedback.
Behavior Appraisals: how a worker does the job.
Focuses on what a worker does and provides good
feedback options.
Results appraisals: what a worker accomplishes.
Sales reps are usually evaluated on what they sell.
Objective appraisals: based on facts (sales figures)
Subjective appraisals: based on a managers
perceptions of traits, behavior, or results.
Many rating scales used to overcome subjective
problems.
Who Appraises Performance?
Supervisors
Peers
Customers &
Clients
Subordinates
Self
Sources of
performance
appraisals
Figure 10.6
Who Appraises Performance?
Self: self appraisals can supplement manager view.
Peer appraisal: coworker provides appraisal; common in
team settings.
360 Degree: provides appraisal from a variety of people
able to evaluate a manager:
Peers, customers, superiors, self.
Need to be alert to bias from some evaluators.
Effective feedback: appraisals must provide feedback:
Formal appraisals: conducted at set times of the year
Provides valuable, but infrequent feedback.
I nformal appraisals: manager provides frequent
feedback informally.
Effective Feedback:
1. Be specific and focus on correctable behavior.
Provide a suggested improvement.
2. Focus on problem-solving and improvement, not
criticism.
3. Express confidence in workers ability to
improve.
4. Use formal and informal feedback.
5. Treat subordinates with respect and praise
achievements.
6. Set a timetable for agreed changes.
Career Planning
Career planning is a step by step (continuous) process, by
which individual selects the career goals, identifies the paths to
reach these goals, formulates strategies to achieve career goals,
review periodically to check progress and take corrective
actions.

Career planning is not a one time but a continuous process
which has to be reviewed periodically based on environment,
opportunities and individuals progress. Career planning is
basically an individual's responsibility (and not of organization
they work in).

Seven steps to Career Planning
STEP 1: Self Analysis
STEP 2: Set your Career Goals
STEP 3: Analyzing Career opportunities
STEP 4: Identifying Match & Mismatch
STEP 5: Formulating the action plan
STEP 6: Implementing the action plan
STEP 7: Reviewing Career plans
Pay and Benefits
Pay level: how the firms pay incentives compare to
other firms in the industry.
Managers can decide to offer low or high relative
wages.
Pay Structure: clusters jobs into categories based on
importance, skills, and other issues.
Benefits: Some are required (social security, workers
comp).
Others (health insurance, day care, and others) are
provided at the employers option.
Cafeteria-style plan: employee can choose the best mix
of benefits for them. Can be hard to manage.
Labor Relations
Considers all activities managers perform to ensure there
is a good relationship with labor unions.
There are laws regulating some areas of
employment.
Fair Labor Standards Act (1938) prohibits child
labor, sets a minimum wage and maximum working
hours.
Equal Pay Act (1963) men and women doing equal
work will get equal pay.
Work Place Safety (1970) OSHA mandates
procedures for safe working conditions.
Discipline, Grievances, and
Dismissal
FRACT Model
A multi-step procedure for assessing the need for
discipline:
Get the Facts
Obtain the Reason for the infraction
Audit the records
Pinpoint Consequences
Identify the Type of infraction before taking remedial
steps

Discipline, Grievances, and
Dismissal (contd)
Discipline without Punishment
A multistage disciplinary technique that uses oral reminders of the
violated rule; then written reminders; followed by a paid one-day
leave; and finally, if the behavior is not corrected, dismissal.
Grievance
A complaint that an employee
lodges against an employer,
usually one regarding wages,
hours, or some condition of
employment like supervisory
behaviour.

Unions
Unions represent workers interests in organizations.
Managers usually have more power over an
individual worker. Workers join together in unions
to try and prevent this.
Unions are permitted by the National Labor Relations
Act (1935) which also created the NLRB to oversee
unions.
Not all workers want unions. Union membership costs
money in dues and a worker might not want to strike.
Union membership is lower today than 40 years ago.
Collective bargaining: process unions and
management go through to negotiate work
agreements.
Results in a contract spelling out agreed terms.
Improving HR effectiveness
through process redesign
Reengineering:
Review and redesign of work processes
to make them more efficient and improve the
quality of the end product or service.
The reengineering process
The HR function must deliver transactional,
traditional and transformational services and
activities to the firm, and it must be both efficient
and effective.

Restructuring, reengineering and outsourcing may
be appropriate in some circumstances, but require
careful planning, attention to detail in
implementation and ongoing evaluation.

Multiple performance outcomes for the HR function
should be considered, including financial terms
and social terms.

HRIS
As HRIS may be defined as the system
used to acquire, store, manipulate,
analyze, and distribute pertinent information
regarding an organist ions human
resources.

1. To acquire, store, manipulate, analyze, retrieve and
distribute the
information of human resources.
2. To facilitate HR decision making in the following areas:
Man- power planning.
Recruitment and selection.
Employment, including promotion, transfers disciplinary
procedure,
termination and redundancy.
Education and training.
Salary and wages administration and
Labour relations etc.

To provides relevant information on
employees to government agencies as
part of the legal requirements.