An organisation is made up of 4 resources Men Material Money Machinery The last three are Non Living It is the human

that make use of non human resources.

Now human resources are considered as HUMAN CAPITAL, which can be classified into 3 Categories :
1.Intellectual Capital : specialized knowledge, tacit knowledge and skills , cognitive complexity , and learning capacity. 2.Social Capital 3.Emotional Capital

Social capital is made up of network of relationships, sociability and trustworthiness. Emotional capital consists of self confidence, ambition & courage, risk bearing ability & resilience.
In that way, Human Resources refer to both QUALITATIVE & QUANTITATIVE aspects of employees working in an organisation.

Definition
HRM refers to acquisition, retention, motivation and maintenance of Human Resources in an organization. HRM is the planning, organising, directing & controlling of the procurement, development, compensation integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

What is HRM?

HRM is concerned with the peoples dimension in the organization Facilitating the competencies and retention of skilled force Developing management systems that promote commitment Developing practices that foster team work Making employees feel valued and rewarded.

Features of HRM or characteristics or nature HRM involves management functions like planning, organizing, directing and controlling It involves procurement, development, maintenance of human resource It helps to achieve individual, organizational and social objectives HRM is a multidisciplinary subject. It includes the study of management psychology communication, economics and sociology. It involves team spirit and team work. It is a continuous process.

Scope of HRM
Very Vast Covers all major activities in the working life of a worker from time an individual enters into an organization until he or she leaves comes under the purview of HRM

EVOLUTION OF HR MGMT

SCIENTIFIC MANAGEMENT
Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

INDUSTRIAL/ORGL PSYCHOLOGY
Munsterberg, Scott, Cattell

HUMAN RELATIONS MOVEMENT

Hawthorne Studies, Mayo, Follett, Lewin

GROWTH OF GOVERNMENTAL REGULATIONS

Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT
Professional HR Societies & HRCI (Certification Institute)

Evolution of HRM in India

Welfare (1920s-1930s) Administration (1930s- 1940s) Employee relations (1940-1960s) Functional expertise (1970s-1980s) Business partner / player (1990s)

Objectives of HRM

Societal objectives To be ethically & socially responsible to the needs of the society . Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness Functional objectives To maintain the departments contribution at a level appropriate to the organizations needs Personal objectives To assist employees in achieving their personal goals in a manner that enhances the individuals contribution to the organization

FACTORS DETERMINING HR PLANS

Strategy of the organisation Policies of the organisation Culture of the organisation Competitive environment of the organisation Current position of the organisation HR Needs of the organisation Available financial resources

HRM Functions
Human resource planning assesses the human resource needs associated with strategic management and helps identify staffing needs. Staffing includes attracting and selecting individuals for appropriate positions. Training and performance evaluation are means of ensuring that employees can contribute to the organisation.

- Compensation and benefits involves rewards that will attract, motivate, and retain employees.

- Performance Appraisal
- Maintaining good employee relations

Human Resource Planning Process by which an organization ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

Importance

1) Each Organisation needs people with necessary qualifications, skills, knowledge, experience & aptitude .
2) Need for Replacement of Personnel Replacing old, retired or disabled personnel.

3)Meet manpower shortages due to labour turnover Indian Airlines, Gas Authority of India headless for 10 months. 4) Meet needs of expansion / downsizing programmes - As a result of expansion of IT companies the demand for IT professionals are increasing. PSUs offering VRS to employees to retrench staff and labour costs. DOT.COMs firing staff.

5) Cater to Future Personnel Needs - Avoid surplus or deficiency of labour. - 75% of organisations are overstaffed. Redeployment of staff to other units. 6) Nature of present workforce in relation with Changing Environment - helps to cope with changes in competitive forces, markets, technology, products and government regulations. - Shift in demand from ERP to internet programming has increased internet programmers demand at Wipro, Infosys etc. ITI retrained its existing workforce in the new electronic telephone system.

Other uses

i) quantify job for producing product / service ii) quantify people & positions required - determine future staff-mix iii) assess staffing levels to avoid unnecessary costs iv) reduce delays in procuring staff v) prevent shortage / excess of staff vi) comply with legal requirements

Benefits of HR Planning 1.Better view of the HR dimensions of business decisions 2.Lower HR costs through better HR management. 3.More timely recruitment for anticipate HR needs

4.More inclusion of protected groups through planned increases in workforce diversity. 5.Better development of managerial talent

HRP Process - Determination of Quality of Personnel

Job Analysis
1. process of collecting and studying information relating to the operations and responsibilities of a specific job. 2. determination of tasks which comprise the job and of skills, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiates one job from all others. products of Job Analysis are Job Description & Job Specification

3.

Steps in Job Analysis

Collection of Organisational Structure Information Selection of Representative Position to be Analysed Collection of Job Analysis Data

Developing Job Description

Developing Job Specification

Collection of Data

Who Collects ? - On-the-job Employees, Supervisors, Consultants / trade job analyst

What to Collect
- Physical & Mental activity involved - Each task essential to achieve overall result - Skill / Educational factor needed for the job

- Checklist, Interview, Observation, Participation, Technical Conference, Diary Method, Quantitative techniques

How to Collect ?

Job Analysis leads to :

A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job. A job specification is a statement of the skills, abilities, education and previous work experience that are required to perform a particular job.

Job Description contains : 1.Job Title 2.Location 3.Job Summary 4.Duties & Responsibilities 5.Materials, Tools & Equipment used 6.Forms & reports handled 7.Supervision given / received 8.Working conditions 9.Hazards & Safety precautions

Job specification contains : 1. Education & Qualifications 2. Experience & Training 3. Knowledge & Skills 4. Communication skills 5. Physical requirements - Height, Weight, Age Personality requirements - Appearance, Judgement, Initiative, Emotional stability

After managers understand the type of jobs to be performed within the organisation, they start planning for the for the organisations future human resource needs. For this they take into consideration, past trends future organisational plans and general economic trends. Planning for HR needs also depends on the strategy of the firm. Eg a merger may lead to layoff, expansion may lead to hiring more etc.

Forces Affecting Demand for HR

Aspects of the general environment or of the task environment can affect the need for certain types of employees. Changing organisational requirements, such as alterations in strategy plan, may affect demand. Internal workforce changes, such as retirements, resignations and leave of absence affect the need for human resources.

HRP Process - Determination of Quantity of Personnel

Organisational Objectives

HR Needs Forecast
HR Programming

HR Supply Forecast

HRP Implementation Control & Evaluation Surplus - Restricted Hiring, Lay Off, VRS, Reduced Hours Shortage - Recruitment & Selection