Human Resource Management

Punjab Technical University Human Resource Management Syllabus (MBA 203)MBA-203 Human Resource ManagementMax. Marks: 100External Assessment: 60Internal Assessment: 40Unit-IHuman Resources Management: Meaning, Scope, Objective, Functions, Roles and Importance. Interaction with other functional areas. HRM &HRD a comparative analysis. Human Resource Management practices in India. Human Resource Planning: Meaning & Concept, Process and importance, Methods of Human Resources Planning, Importance of HRIS. Job Analysis, Job Description, Job Specification & Job Evaluation Meaning, Concepts and Methods.

Chapter Wise DetailsC. NoTopic1Human Resources Management: Meaning, Scope, Objective, Functions, Roles and Importance. Interaction with other functional areas. HRM &HRD a comparative analysis. Human Resource Management practices in India. 2Human Resource Planning: Meaning & Concept, Process and importance, Methods of Human Resources Planning, Importance of HRIS3Job Analysis, Job Description, Job Specification & Job Evaluation Meaning, Concepts and Methods.

Chapter 1Human Resource ManagementIntroduction to HRMHRM is a process of bringing people and organizations together so that the goals of each are met. It is an art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. Its features are:1. Pervasive Force2. Action Oriented3. Individually oriented4. Future Oriented5. Development Oriented6. Integrated Mechanism7. Continuous FunctionDefinition of HRMHRM is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.- Edwin B. FlippoStrategic HRMHuman Resource Management is a strategic and comprehensive approach to managing people, the workplace culture & environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals. Human Resource Management ("HRM") is a way of management that links people-related activities to the strategy of a business or organization. HRM is often referred to as "strategic HRM.Scope of HRMPersonnel Aspect : Such as manpower planning, recruitment, selection, placement, transfer, promotion, T&D, Layoff & retrenchment, remuneration, incentives, productivity, etc.Welfare aspect: It Deals with working conditions and amenities such as canteen, rest and lunch rooms, housing, transport, medical assistance, education, health & safety, recreation facilities etc. Industrial Relation aspect: This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.Development Aspect : Training & development of the employee, succession & career planning, identification of special talents etc.

Objectives of HRMTo help the organization reach its goalTo employ the skills and abilities of the workforce efficientlyTo provide the organization with well-trained and well motivated employeeTo increase to the fullest the employees job satisfaction and self- actualizationTo develop and maintain a quality of work lifeTo communicate HR policies to all employeesTo be ethically and socially responsive to the needs of society

Functions of HRMIn order to achieve the above objectives, Human Resource Management undertakes the following activities:

Procurement FunctionJob AnalysisHRPRecruitmentSelection &PlacementsOrientation

Managerial Function

PlanningOrganizingDirectingControllingDevelopment FunctionsPerformance AppraisalTrainingManagement developmentSuccession PlanningPromotion & TransferMotivation & CompensationJob designWork schedulingMotivationJob evaluationPerformance appraisal

MaintenanceHealth & SafetyEmployee WelfareGrievance handlingDisciplineTeam WorkCollective BargainingOperative FunctionsAdministrative RolesOperational RolesStrategic RolesActing as a policy makerAdministrative ExpertAdvisorHousekeeperCounselorWelfare officer

RecruiterTrainer developer,MotivatorCoordinator/linking pinMediatorEmployee ChampionChange AgentStrategic Partner ROLES OF HUMAN RESOURCE MANAGEMENTWhat will be the basic difference between the Functions of HRM and Roles of HRM ? Lets Discuss Importance of HRMAt the enterprise level:It helps in attracting and retaining the competent people in the organization. It helps in training people for challenging roles, developing right attitudes towards the job and company.Helps in promoting team spirit among employees and developing loyalty and commitment through appropriate reward scheme.At Individual level:It promotes team work and team spirit among employees.It offers excellent growth opportunities to people who have the potential to rise.It allows people to work with diligence and commitment.

At the society level:Employment opportunities multiplyCompanies that pay and treat people well always race ahead of others and deliver excellent results.At national level:Effective use of human resources helps in of natural, physical and financial resources in a better way.People with right skills, proper attitudes and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard of living and better employment.

Importance of HRM1.Production and Human Resources:Success or failure of a firm in the market depends on the strength of its products or services. More and more companies are trying to capture and retain knowledgeable employees through knowledge management initiatives.2.Operations and Human Resources: People play a crucial role in operation process. Operation requires a lot of teamwork and empowerment.3.Marketing and Human Resources:Marketing people form the interface between the company and its customers. So it is important to have a marketing team that is satisfied, developed and nurtured to meet the marketing objectives.Interaction with other functional area144. Strategic Management and Human Resources:Any new initiative that is taken in an organization, to be successfully implemented, has to be accepted and adopted by the employees. For example, reengineering may not be fruitful until top management succeeds in reengineering the mindsets of the employees.5. Administration and Human Resources:Modern organizations are so structured as to make the best use of technology, finance, systems and most of its people. Many organizations whose prime focus is the customer have done away with vertical functional departments with tall hierarchies and replaced them with flat and horizontal cross-functional structures. This would reduce redundancy and enable free flow of ideas and information.

Comparative AnalysisHRM

1.HRM is the management of Human resource in an organization.

2.Taking care of the basic requirements of the employees such as recruiting, staffing maintaining of employee relations and other employee related issues.

3.Execution of training on their scheduled timings.

4.HRM includes the implementation of various norms in regards to the Labour/union laws, Various policy making for compensation/benefits/ Manpower planning etc.

HRD

1.HRD is the development of the Resources of the Company .

2. HRD includes the areas of training and development, career development, and organization development.

3.HRD includes HR research and information systems, union/labor relations, employee assistance, compensation/benefits, selection and staffing, performance management systems, HR planning, and organization/job design.

4.HRD is complete only with a proper HRM in the companyHR PracticesSafe, Healthy & Happy WorkplaceOpen Book Management StylePerformance-linked Bonuses360-Degree Performance Management Feedback SystemFair Evaluation System for EmployeesKnowledge SharingHighlight PerformersOpen House Discussions & Feedback MechanismReward CeremoniesDelight Employees with the UnexpectedQuestions???Chapter 2Human Resource PlanningHR PlanningNature of HRP: HRP is a forward looking function. It assess human resource requirements in advance keeping the production schedules, markets fluctuations, demand forecasts into consideration. The focus of planning is always on getting right number of qualified people into the organization at the right time. In simple words, HRP is understood as the process of forecasting an organizations future demand for, and supply of, the right type of people in the right number.

Objectives of HRPForecast personnel requirementCope with changesUse existing manpower productivelyPromote employees in a systematic manner

Importance of HRPReservoir of talent Prepare people for future Expand or contract Cut costs Succession planningProcess of HRPForecasting the Demand for HR Preparing Manpower InventoryDetermining Manpower GapsFormulating HR PlansEstimating how many employees they require in future.Find out the size and quality of personnel available with in the organization to manage various positionsExisted no of manpower and their skills are compared with forecasted manpower need Identified HR requirements needs to be translated into a concrete HR plan backed up by detailed policies, programmes and strategies.I. Forecasting the demand for Human Resources1. External ChallengesEconomic developmentsPolitical, Legal, social and technical changesCompetition2. Organizational Decisions3. Workforce factors4. Forecasting techniquesExpert ForecastTrend Analysis5. Other methodsWorkforce analysisWork load analysisJob Analysis

II. Preparing manpower inventory (Supply Forecasting):a) Internal Labour Supply : A profile of employees in term of age, sex, education, training, experience, job level, past performance and future potential should be kept ready for use whenever required. Few forecasting techniques are as followsStaffing Table : Current Staffing level Projected outflows of the year + Projected inflows this year = Firms internal supply for this time next year 2. Markov Analysis : Uses rates of promotions transfer and turnover estimate future availability in the work force.3. Skill Inventory : Assessment of knowledge, skills abilities, experience etc.4. Replacement Chart: It shows the profile of job holders department wise and offers a snap shot of who will replace whom if there is a job openingII. Preparing manpower inventory (Supply Forecasting):b) External Labour Supply:When organizations grows rapidly, diversifies into newer area of operations or when it is not able to find the people internally to fill the vacancies.Important barometers of labour supply:Net migration into and out of the areaEducation Level of workforceDemographic changes in populationTechnical developments and shiftsPopulation mobility

III. Determining Manpower Gaps:Number required at the beginning of the yearChanges to requirement forecast during the yearTotal requirements at the end of the year (1+2)Number available at the beginning of the yearAdditions (transfers, promotions)Separations (retirement, wastage, promotion out and other losses)Total available at the end of year (4+5+6)Deficit or surplus (3-7)Losses of those recruited during the yearAdditional numbers needed during the year (8+9)

IV Formulating HR Plans : Recruitment plan : Indicate type of people required i.e. right peopleRedeployment plan : Transferring or retraining existing employeesRedundancy plan: i.e. retrenchment, layoff, golden handshake etc. Training plan: No of trainees of apprentice requiredProductivity plan: By reducing employee costs through work simplification studies, incentive & profit sharing schemes, job redesignedRetention plan: strategies to avoid wastage through compensation policies, changes in work requirement and improvement in working conditionsControl points: To find out deficiencies, periodic updating of manpower inventory, in the light of changing circumstancesHuman Resource Information SystemHuman Resource Information SystemIt is a method by which an organization collects, analyses and reports information about people and jobs. HRIS basically a database system that offers important information about employees in a central and accessible location.HRIS is a computerized system that assists in the processing of HRM information. It supplies up-to-date information about people and jobs in an organization at a reasonable cost.HRIS is designed to monitor, control and influence movement of people from the time they join a firm till the time they decide to leave the firm.Importance of HRISHRIS can process, store and retrieve enormous quantities of data in an economical wayThe records can be updated quicklyIt helps to enhance accuracyIt help to reduce fragmentation and duplication of dataThe available information an be readily manipulated, merged and disaggregated in response to special and complex demands and presented promptlyObjectives of HRISTo offer an adequate, comprehensive and on-going information system about people and jobs.To supply up-to-date information at a reasonable cost.To offer data security and personal privacy. Data security is a technical problem that can be dealt with in several ways, including passwords and elaborate codes. In the information age, personal privacy is both an ethical and moral issue.Process of HRISHRIS can be set up through a four step process :Identifying the needs of a firmOrganizing flow of informationImplementation the planEvaluating the whole exercise to find gapsTo rectify thing in time.Questions????Chapter 3Job Analysis, Job Description & Job EvaluationJob AnalysisIt is a formal and detailed examination of jobs. It is a systematic investigation of the task, duties and responsibilities necessary to do a job. It identifies what people do in their jobs and what they require in order to do the job satisfactorily. The information about a job is usually collected through a structured questionnaire.Tasks-it is a work activity carried on for specific purposeDuties-larger work segment consisting several tasksResponsibilities-are obligations to perform certain tasks and duties

Job AnalysisJob TasksJob DutiesJob ResponsibilitiesJob Analysis: A Basic Human Resource Management ToolTasksResponsibilitiesDutiesJob AnalysisJob DescriptionsJob SpecificationsKnowledgeSkillsAbilitiesHuman Resource PlanningRecruitmentSelectionTraining and DevelopmentPerformance AppraisalCompensation and BenefitsSafety and HealthEmployee and Labor RelationsLegal ConsiderationsJob Analysis for TeamsUses of Job AnalysisHuman Resource PlanningRecruitmentSelectionPlacement & OrientationTrainingCounselingEmployee SafetyPerformance AppraisalJob Design & redesignJob Evaluation

Process of Job AnalysisOrganizational analysisSelection of representative positions to be analyzed

Collection of job analysis dataPreparation of job descriptionPreparation of job specificationOverall picture of various jobs in the organization is obtained through organization charts and workflow chartsNot possible to analyze all jobsSample jobs are only analyzedOn the characteristics of the job, required behavior and personal qualifications needed to perform the job effectively. Describing the contents of the job in terms of functions, duties, responsibilities and operations etc.Job specification is a written statement of personal attributes required to carry out the job such as skills, training experience etc.Methods of collecting job analysis dataJob performanceJob analyst actually performs the job in question for getting first hand experience of factors such as physical hazards, social demands, emotional pressures and mental requirements. Useful for jobs that can be easily learntPersonal observationThe analyst observes the workers doing the job.The tasks performed, the pace at which activities are done and working condition are observedCertain precautionsAnalyst must observe average working during the average conditionsAnalyst should just OBSERVE without direct involvementSample should be proper

Critical incidentsJob holders are asked to describe several incidents based on the past experienceIncidents are analyzed and classifiedJob requirements become clear once the analyst draws the line between effective and ineffective behaviorsInterviewIncludes asking questions from both job holders and supervisors in individual or group settingStandard format of questionnaire is preferredPanel of expertsInteraction with senior job supervisors and superiors

Methods of collecting job analysis dataDiary methodJob holders are asked to keep diaries of their daily activities and record the time spent activity.Questionnaire method: Types of QuestionnairesPosition analysis questionnaire (PAQ):- Use to collect specific information about job tasks & workers traits. Mgt. position description questionnaire(MPDQ)- for analyzing managerial jobsFunctional job analysis (FJA) :- Examine the fundamental components of data, people and things.

Methods of collecting job analysis dataJob DescriptionIt is a written statement of what the job holder does, how it is done , under what conditions it is done and why it is doneIt describes what the job is all about, throwing light on the job content, environment and conditions of employment. It is descriptive in nature and defines the purpose and scope of a jobIts main aim is to differentiate the job from other jobs and state its outer limits

Contents of Job DescriptionJob title:- Tells about the job title, Code number and the department where its is doneJob summary:- A brief write-up about what the job is all aboutJob activities:- description of tasks done, facilities used, extent of supervisory helpWorking conditions:- the physical environment of job in terms of heat, light, noise and other hazardsSocial environment:- size of work group and interpersonal interactions requiredProblems with Job DescriptionsNo updation is done as the jobs changeDifficult to cover all aspects of the job in clear and precise documentThey can limit the scope of activities of the job holder reducing organization flexibilityGuidelines for writing job descriptionShould indicate the nature and scope of the jobShould be brief factual and precise.Should be specific to work ,complexity, degree of skills required, extent to which the problems are standardized.Extent of supervision should be clearly stated.Should indicate reporting relationships.

Mode of writingJob analyst has to write the JD after proper consultations with the worker and the supervisor. Analyst gets the form filled by the immediate supervisor of the employeeAnalyst must observe the actual work done by the employee and complete the JD formEffort must be made to involve the employee and supervisor while finalizing the JDKeep the JD updated by keeping track of changing conditions.Job specificationIt summarizes the human characteristics needed for satisfactory job completion.It is a written statement of the important attributes of a person in terms of education, experience, skills, knowledge and abilities (KSA) to perform a particular job.For each job description it is desirable to have a job specificationIt is useful in selection process

Classification of personal attributesEssential attributes-skills ability and knowledge that a person must possessDesirable attributes qualification a person ought to possess.Contra indicators-attributes detrimental to job performance.

How is JS done?It can be developed by talking with the current job holders Opinions of the supervisors can also be usedChecking similar job in other organizations can also helpJob EvaluationJob evaluation is a systematic way of determining the value /worth of a job in relation to other jobs in an organization.It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.Job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay-equity between jobs.

Features It tries to assess jobs ,not people.Basic information on job evaluation is obtained from job analysis.Carried out by groups not individualsDegree of subjectivity is always present.Does not fix pay scales, but it is merely a basis for evaluating a rational wage structure .

Process of Job EvaluationSet Objective- Top management must explain the aims and uses of programme to the employees and the unions.Creating Job evaluation committee consisting of experienced employees, union representatives and HR expertsFinding the jobs to be evaluated- Not every job need to be evaluated. Only those jobs which represent the departmentAnalyzing and preparing job descriptionSelecting the method of evaluation- keeping the job factors as well as organizational demands in mind

Classifying jobs- on the basis of skill requirements, experience needed, types of responsibilities, degree of supervision needed, amount of stress caused by the job etc.Installing the programme:- management to explain the process to the employees Reviewing periodically.

Process of Job EvaluationMethods of Job Evaluation1.Ranking methodJobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also be listed according to their relative difficulty in performing themBest suited for small organizations because rankings are difficult to be developed in the large organizationsJobs are usually ranked in each department and then the department rankings are combined to develop an organizational behavior.Disadvantages- rankings are difficult to develop in large, complex organizationsRanking is highly subjective in nature and may offend many employees

2. Job Classification (Job Grading)A predetermined number of job groups or classes are established and jobs are aligned to these classifications . This method places groups of jobs in to job classes or job grades. Separate classes may include office, clerical, managerial, personnel etc.Class I- Executives- further classification may be office manager, deputy office manager, office superintendent, departmental supervisor etc.Class II- Skilled Workers- Purchasing Assistant, Cashier, Receipts Clerk etc.Class III- Semi skilled workers- steno typists, machine operators, switch board operators etc. Class IV- Office Boys etc

3.Factor comparison methodEach job is ranked according to a series of factors which include mental effort ,physical effort, skill needed, responsibility, working conditions etc.StepsSelect the key jobs Find the factors in terms of which the jobs are evaluatedRank the selected jobs under each factor (by each and every member of the job evaluation committee) independentlyAssign money value to each factor and determine the wage rates for each key jobWage is set proportionately to each factor

Example for Factor ComparisonJobHourly RatePay for SkillPay for EffortsPay for ResponsibilityPay for Working ConditionsSecretaryRs. 9.004.50(4)2.00 (4)2.00 (4)0.50 (3)Admin AssistantRs. 11.005.50(3)2.50 (3)2.50 (3)0.50 (3)SupervisorRs 16.006.00(2)3.00 (2)4.50 (2)2.50 (1)ManagerRs 21.009.00(1)3.50(1)7.00 (1)1.50 (2)Point MethodHere jobs are expressed in terms of key factors and their sub factors. Points are assigned to each factor after prioritizing each factor in order of importance. The points are summed to determine the wage rate for the job. The procedure involved may be explained thus:Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc.Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale.

Point MethodThe most frequent factors employed in point systems are (i) Skill (key factor); Education and training required, Breadth/depth of experience required, Social skills required, Problem-solving skills, Degree of discretion/use of judgement, Creative thinking (ii) Responsibility/Accountability: Breadth of responsibility, Specialised responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/materials; (iii) Effort: Mental demands of a job, Physical demands of a job, Degree of potential stress The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance.

Point MethodFind the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job).This would help in finding the relative worth of a job. For instance, the maximum points assigned to an officer's job in a bank come to 540. The manager's job, after adding up key factors + sub factors points, may be getting a point value of say 650 from the job evaluation committee. This job is now priced at a higher level.Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. A wage survey is usually undertaken to collect wage rates of certain key jobs in the organization.

Example for calculation of Point value to factors along a scaleFactorPoint values for degreeTotal12345Skills1020304050150Physical Effort816243240120Mental Efforts51015202575Responsibility714212835105Working Conditions61218243090Maximum total points of all factors depending on their importance to job540Conversion of job grade point into money valuePoint RangeDaily WageJob Grade of Key bank officials500-600300-400Officer600-700400-500Accountant700-800500-6003. Manager I scale800-900600-7004. Manager II scale900-1000700-8005. Manager III scaleQuestions????