Human Resource Management -...
Transcript of Human Resource Management -...
Shubhpreet KaurGulzar Group of Institutes
Financial Resources
Physical Resources
Human Resources
Organizational Goals
WHAT IS HR????? Human resources is the set of
individuals who make up the workforce of an organization, business sector or an economy.
Other terms sometimes used include "manpower", "talent", "labor" or simply "people".
What is HRM? The process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
A management function that helps managers recruit, select, train and develop members for an organization.
HRM may be defined as a set of policies, practices and programmes designed to maximize both personal and organizational goals.
"I believe the real difference between success and failure in a corporation can be very often traced to the question of how well the organization brings out the great energies and talents of its people."
Thomas J. Watson, Jr.
And I'd say one of the great lessons I've learned over the past couple of decades, from a management perspective, is that really when you come down to it, it really is all about people and all about leadership.Steve Case
Some eminent personalities…
Dr. UdaiPareek
Dr. T V Rao
Frederick Winslow Taylor
King Hammurabi
Evolution of HRM
Procure and develop
Procure, develop and motivate
assets
Nature of HRM Integral part of process of management.
Comprehensive Function
Pervasive Function
People Oriented
Based on human relations
Continuous process
Science as well as art
Recent origin
Interdisciplinary
Basic to all functional areas.
Scope of
HRM
Introduction to HRM
Employee Hiring
Employee Remune-
ration
Employee motivatio
n
Employee Mainte -
nance
Industrial Relations
Prospects of HRM
Scope of HRM
Industrial Relation Aspect
Welfare Aspect
Personnel Aspect
Objectives of HRMPersonnel Objectives
Functional Objectives
Organizational Objectives
Societal Objectives
Functions of HRM w.r.t objectives
Societal Objectives
Legal Compliance
Union-Management
Relations
Functions
Organizational
HRP
Employee Relations
Selection
T nd D
Appraisal
Placement
Assessment
FunctionsFunctional
Appraisal
Placement
Assessment
Functions (cntd…)
Personal
T nd D
appraisal
Placement
Compensation
Assessment
Policies, Principles and Procedures Policy : A plan of action.. A statement of action
committing management to a general course of action.
Principle: fundamental truth established by research, investigation and analysis….guide the managers in formulating policies, programs and procedures.
Procedures: a method for carrying out a policy….
Importance of HRM
Importance for organization
Importance for employees
Importance for society.
Compare HRD and HRMHRM HRD
Entire management process
Subset of HRM
Scope is wider Narrow scope
Emphasis on employee as a whole
Training and Development of employees
Takes decisions Depends on decisions of HRM
Limitations of HRM
Recent origin
Lack of Top Management Support
Improper Implementation
Inadequate Development Programmes.
Inadequate Information.
Systems approach to HRM An enterprise cannot work in isolation.
Has to adjust its working to suit the environment.
Subsystems: Departments that are created in an organization to carry out its business effectively.
Each subsystem has a number of further subsystems.
Important Subsystems
Human Resource Management System
Transforms inputs to outputs.
HR system interacts closely with all other subsystems.
Quality of people in all subsystems depends upon policies of HRM System
Personnel Productive Human Resource
Organizational Design
PlaceCompositi
on
Place Of HR Department Size Matters!!!!
In case of a small unit…………
Small unit
owner
Production manager
Sales Manager
Office Manager
Personnel assistant
Accountant
Large Unit
Chairman / MD
Director Production
Director Finance
Director HRM
Director Marketing
Director R&D
Composition
Director HRM
Manager -Personnel
Manager Admin Manager - HRD Manager - IR
HRP
Hiring
Grievance handling
Compensation
PR
Canteen
Medical
Welfare
Transport
Legal
Appraisal
Training And Development
HRM Environment Proactive not Reactive………
Factors affecting HRM Environment
External Environment
Internal Environment
External Environment Economic Factors
Political – Legal Factors
Social and Cultural Factors
Technological Factors
Unions
Professionalism
SUPPLIERS CUSTOMERS COMPETITORS GLOBALIZATION
Internal Environment
MISSION
POLICIES
ORGANIZATIONAL CULTURE
ORGANIZATIONAL CONFLICT
Human Resource Planning What??? When??? Where????
HOW???
HRP…… The process by which a management determines how
an organization should move from its current manpower position to its desired manpower position.
Right Number and Right Kind of people
Right Places Right Time to do things which result in both the organization and individual receiving maximum benefit.
Objectives of HRPAssessing manpower
Assessing skill requirement.
Determining T&D needs
Anticipating shortage and surplus of staff.
Controlling wage and salary costs
Optimum use of HR
Process of HRPAnalysis of
objectives and strategic plans of the company
Preparing manpower inventory
Manpower forecasting
Manpower plans
T& D Programmes
Appraisal of manpower planning
Analysis of objectives and strategic plans Must be integrated with other business policies.
Analysis of each plan into sub-plans and detailed programmes.
Check out:
Future organization structure.
Changes in organization structure.
Preparing manpower inventory Manpower inventory: refers to assessment of present
and potential qualifications of present employees.
Avoid situation of over/under staffing.
Analysis of current manpower supply. By Department By Function By Occupation By Qualification…
Helps to find out gaps…
Manpower Forecasting• Analysis of staff
during past 5 yearsEmployment
Trends
• Death, resignation
• retirementReplacement
Needs
• Utilization of existing manpowerproductivity
Manpower Forecasting• A situation when person fails
to come for work when he is scheduled for work.
Absenteeism
• Timely steps needed.Expansion and Growth
• Workload analysis to be done.
Work Study
Manpower Plans
Decide required number of
people.
Develop programmes
and strategies.
Development plans are designed
Training and Development Plans Not only for new employees but also for the old ones.
Tapping of talent required.
The organization has no choice whether to provide training or not…..but the only choice is to decide the method/ technique of training.
Appraisal of Manpower Planning Monitor and control….
Involves allocation and utilization of HR over time…
Reveal deficiencies and helps to take corrective action on time…
Serves as a base for future manpower planning.
Types of HRP Short Term HRP - to match the individuals with the
job.
Long Term HRP – to fulfill future vacancies.
Short Term HRPA weak
Incumbent
Changing of the man
Change in contents of
the job
Changing the job and the
man
Removal of incumbent.
A strong incumbent
Assigning additional
duties
Assigning some special
problems
Advice
Change in job
An unexpected vacancy.
Long Term HRP
Projecting Manpower
Requirements
Taking stock of Existing Manpower
Recruitment and Selection
Manpower Development
Benefits of HRP Reduced Labor Costs.
Optimum Utilization of manpower
Identification of Gaps in existing manpower.
Improvement in overall business planning.
Career Succession Planning
Creates awareness in an organization.
Growth of Organization
Beneficial to the country.
Job Analysis
Definitions… Job analysis involves identification and precisely
identifying the required tasks, the knowledge and skills
necessary for performing them and the conditions under
which they can be performed.
Richard Henderson
A systematic exploration of activities within a job. It is a
basic technical procedure. One that is used to define the
duties, responsibilities and accountabilities of a job.
S P Robbins
Data relating to job can be grouped under:
Job Identification
Nature of job
Operations involved
Materials and equipment required
Personnel qualities required
Relation of job with other jobs.
Process
Organizing and planning
Obtaining current job
design information
Conducting “needs research”
Establishing priorities
Collecting job data
Redesigning the job
Preparing job descriptions and
classifications
Developing job specifications
Techniques
PAQ – Position Analysis Questionnaire
MPDQ – Management Position Description Questionnaire
FJA – Functional Job Analysis Worker oriented approach.
Examines fundamental components of ‘data, people and things’.
Identifies performance standards and training requirements.
4 dimensions
Extent to which –
Specific instructions are necessary to perform the job
Reasoning and judgement are required.
Mathematical ability is required.
Verbal and language facilities are required.
Job Analysis
Job Description
Job Specification
Job Description The first and immediate product of job analysis is job description. This
document is basically descriptive in nature and constitutes a record of existing and pertinent job facts.
Contents of JDProper Job Title
Job Summary
Job Location
Duties and responsibilities
Machines, Tools and Materials
Working Conditions
Relation to other jobs
Job Specification A statement of minimum acceptable human
qualities necessary to perform a job properly.Also known as “”Standard of personnel
for the selection”.
What it includes???
Physical Characteristics.
Psychological and Social Characteristics
Mental Characteristics
Personal Characteristics.
Job Evaluation A systematic way of determining the value/worth of a
job in relation to other jobs in an organization.
Job Evaluation v/s Performance Appraisal
POINT JOB EVALUATION PERFORMANCE APPRAISAL
DEFINE RELATIVE WORTH OF JOB RELATIVE WORTH OF JOB HOLDER
AIM DETERMINE WAGES RATES FOR DIFFERENT JOBS
DETERMINE INCENTIVES AND REWARDS
SHOWS HOW MUCH A JOB IS WORTH HOW WELL AN INDIVIDUAL IS DOING AN ASSIGNED WORK
Process of Job EvaluationGaining Acceptance
Creating Job Evaluation team
Finding jobs to be evaluated.
Analyzing and preparing Job Description
Selecting method of evaluation
Classifying Jobs
Installing the programme
Reviewing Periodically
Methods of Job Evaluation
• Ranking Method
• Job Grading Method
Qualitative
• Point System
• Factor-Comparison Methods
Quantitative
Ranking Method All jobs are ranked in order of their importance from
simplest to the hardest order, each job being harder than the previous one in the sequence.
Method: Preparation of Job Description.
Selection of Raters
Selection of key jobs
Ranking of all jobs.
Rank Monthly salary
Accounts Officer -------
Accountant ------
Senior Accounts Officer -----
Accounts clerk -----
Computer operator -----
Purchase Assistant -----
Office Boy -----
Peon -----
Merits
• Easy to understand and explain
• Requires less time
• Economical
Demerits
• Not based on any standard criterion.
• Chances of inaccurate ranking
• Leaves out some factors
Job Grading Method A number of pre-determined grades or classifications
are decided by the committee and each job is assigned to one of the grades.
Grades like – skilled, unskilled, clerical, administrative..etc..
For each grade there is a different rate of wages.
Steps :
Preparation of grade descriptions
Selection of key jobs
Grading key jobs
All job are put in relevant grades.
Grade Description
1 Very simple tasks requiring minimum mental ability. Basically consisting of manual work.
2 Jobs requiring clerical work. Basically consisting of desk work and minimum manual work. Minimum training required.
3 Straight forward tasks, but requiring to apply established procedures and to guide others.
4 Routine work but involving some elements of responsibility for answering non-routine queries and exercise some measure of control.
5 Involve decision making and administrative work. Professional qualifications are required.
Merits
• Systematic criterion is followed.
• Simple to understand and operate
• Easy to determine pay scales.
• Used in government services
Demerits
• Not suitable for large organizations
• With increase in number of jobs, difficulty increases.
• Likelihood of human bias.
Factor Comparison Method Each job is rated according to series of factors like
mental effort, physical effort, skill needed, responsibility, working conditions etc.
Different factors are assigned different weights by importance.
Pay will be assigned by comparing weights of factors
Steps involved Select key jobs
Find factors for evaluation
Rank selected jobs under each factor
Assign value to each factor
Determine wage rates for each job
All other jobs are compared with the list of key jobs.
Merits
• Analytical
• Relative and valid
• Money values are assigned in fair way
• Flexible
Demerits
• Difficult to understand, explain and operate.
• Time consuming.
• Use of same criteria to assess all jobs.
Point Method Most frequently used.
Process:
Select key jobs and identify factors common to all the identical jobs.
Divide each major factor into number of sub factors. Assign point values to degrees after fixing relative value for each key factor.
Degree Define
1 Able to carry out simple calculations, High school educated
2 Does all clerical Operations, computer literate, graduate
3 Handles mail, develops contacts, takes initiative, post graduate.
Find maximum number of points assigned to each job. This would help in finding out relative worth of job.
once the worth of job is expressed in terms of points, the points are converted into money values keeping in mind the daily/hourly wage rates.
Merits
• Superior and widely used
• Elimination of bias at every stage
• Remains unaffected even if jobs change
Demerits
• Complex
• Time consuming