Rough Proj on Human Resource Management

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    What is HRM-Human resource management (HRM, HR ) is the management of an organization's employees .[1] This

    includes employment and arbitration in accord with the law, and with a company's directives.

    Human Resource Management (HRM) is the function within an organization that focuses onrecruitment of, management of, and providing direction for the people who work in the organization.Human Resource Management can also be performed by line managers.

    Human Resource Management is the organizational function that deals with issues related to peoplesuch as compensation, hiring, performance management, organization development, safety, wellness,benefits, employee motivation, communication, administration, and training.

    Human Resource Management is also a strategic and comprehensive approach to managing peopleand the workplace culture and environment. Effective HRM enables employees to contribute effectivelyand productively to the overall company direction and the accomplishment of the organization's goalsand objectives.

    Human Resource Management is moving away from traditional personnel, administration, andtransactional roles, which are increasingly outsourced. HRM is now expected to add value to thestrategic utilization of employees and that employee programs impact the business in measurableways. The new role of HRM involves strategic direction and HRM metrics and measurements todemonstrate value.

    Human Resource Management is based on ideas and techniques developed to enhanceworker motivation, productivity and performance.

    The HRM model emphasises:

    the need to search for new ways of working the central role of managers in promoting change the treatment of workers as individuals rather than part of a collective workforce the encouragement of workers to consider management as 'partners' rather than as

    opponents - 'us and us', rather than 'us and them' Throughout this site we will try to give you some helpful hints for both employers

    and employees.

    Features

    Its features include:

    Organizational management

    Personnel administration

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    Manpower management

    Industrial management [2][3]

    But these traditional expressions are becoming less common for the theoretical discipline. Sometimes

    even employee and industrial relations are confusingly listed as synonyms, [4] although these normallyrefer to the relationship between management and workers and the behavior of workers in companies.

    The theoretical discipline is based primarily on the assumption that employees are individuals with varying

    goals and needs, and as such should not be thought of as basic business resources, such as trucks and

    filing cabinets.

    Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of

    workplace management than the traditional approach. Its techniques force the managers of an enterprise

    to express their goals with specificity so that they can be understood and undertaken by the workforce,

    and to provide the resources needed for them to successfully accomplish their assignments. As such,

    HRM techniques, when properly practiced, are expressive of the goals and operating practices of the

    enterprise overall. HRM is also seen by many to have a key role in risk reduction within organisations. [5]

    Synonyms such as personnel management are often used in a more restricted sense to describe

    activities that are necessary in the recruiting of a workforce, providing its members with payroll and

    benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall

    (1987) define personnel management as being:

    a series of activities which: first enable working people and their employing organisations to agree about

    the objectives and nature of their working relationship and, secondly, ensures that the agreement is

    fulfilled" (p. 49).

    While Miller (1987) suggests that HRM relates to:

    ".......those decisions and actions which concern the management of employees at all levels in the

    business and which are related to the implementation of strategies directed towards creating and

    sustaining competitive advantage" (p. 352).

    Academic theory

    Research in the area of HRM has much to contribute to the organisational practice of HRM. For the last

    20 years, empirical work has paid particular attention to the link between the practice of HRM and

    organisational performance, evident in improved employee commitment, lower levels of absenteeism and

    turnover, higher levels of skills and therefore higher productivity, enhanced quality and efficiency. [6] This

    area of work is sometimes referred to as 'Strategic HRM' or SHRM (. [7]

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    Within SHRM three strands of work can be observed [8]: Best practice, Best Fit and the Resource Based

    View (RBV).

    The notion of best practice - sometimes called 'high commitment' HRM - proposes that the adoption of

    certain best practices in HRM will result in better organisational performance. Perhaps the most popular

    work in this area is that of Pfeffer [9] who argued that there were seven best practices for achieving

    competitive advantage through people and 'building profits by putting people first'. These practices

    included: providing employment security, selective hiring, extensive training, sharing information, self-

    managed teams, high pay based on company performance and the reduction of status differentials.

    However, there is a huge number of studies which provide evidence of best practices, usually

    implemented in coherent bundles, and therefore it is difficult to draw generalised conclusions about which

    is the 'best' way (For a comparison of different sets of best practices see Becker and Gerhart, 1996 [10]

    Best fit, or the contingency approach to HRM, argues that HRM improves performance where there is a

    close vertical fit between the HRM practices and the company's strategy. This link ensures close

    coherence between the HR people processes and policies and the external market or business strategy.

    There are a range of theories about the nature of this vertical integration. For example, a set of 'lifecycle'

    models argue that HR policies and practices can be mapped onto the stage of an organisation's

    development or lifecycle. [11] Competitive advantage models take Porter's (1985) ideas about strategic

    choice and map a range of HR practices onto the organisation's choice of competitive strategy. Finally

    'configurational models' [12] provide a more sophisticated approach which advocates a close examination

    of the organisation's strategy in order to determine the appropriate HR policies and practices. However,

    this approach assumes that the strategy of the organisation can be identified - many organisations exist ina state of flux and development.

    The Resource Based View (RBV), argued by some to be at the foundation of modern HRM, [13] focusses

    on the internal resources of the organisation and how they contribute to competitive advantage. The

    uniqueness of these resources is preferred to homogeneity and HRM has a central role in developing

    human resources that are valuable, rare, difficult to copy or substitute and that are effectively organised.

    Overall, the theory of HRM argues that the goal of human resource management is to help an

    organization to meet strategic goals by attracting, and maintaining employees and also to manage them

    effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the

    management of an organisation's employees, and the overall strategic direction of the company (Miller,

    1989).

    The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to

    have an interdisciplinary examination of people in the workplace. Fields such as psychology ,industrial

    relations , industrial engineering, sociology , economics , and critical theories: postmodernism , post-

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    structuralism play a major role. Many colleges and universities offer bachelor and master degrees in

    Human Resources Management or in Human Resources and Industrial Relations.

    One widely used scheme to describe the role of HRM, developed by Dave Ulrich , defines 4 fields for the

    HRM function :[14]

    Strategic business partner

    Change Agent

    Employee champion

    Administration Expert

    [edit ]Business practice

    Human resources management involves several processes. Together they are supposed to achieve the

    above mentioned goal. These processes can be performed in an HR department, but some tasks can

    also be outsourced or performed by line-managers or other departments. When effectively integrated they

    provide significant economic benefit to the company. [15]

    Workforce planning

    Recruitment (sometimes separated into attraction and selection)

    Induction , Orientation and Onboarding

    Skills management

    Training and development Personnel administration

    Compensation in wage or salary

    Time management

    Travel management (sometimes assigned to accounting rather than HRM)

    Payroll (sometimes assigned to accounting rather than HRM)

    Employee benefits administration

    Personnel cost planning

    Performance appraisal Labor relations

    [edit ]HRM strategy

    An HRM strategy pertains to the means as to how to implement the specific functions of Human Resource

    Management. An organization's HR function may possess recruitment and selection policies, disciplinary

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    procedures, reward/recognition policies, an HR plan, or learning and development policies, however all of

    these functional areas of HRM need to be aligned and correlated, in order to correspond with the overall

    business strategy. An HRM strategy thus is an overall plan, concerning the implementation of specific

    HRM functional areas.

    An HRM strategy typically consists of the following factors:-

    "Best fit" and "best practice" - meaning that there is correlation between the HRM strategy and

    the overall corporate strategy. As HRM as a field seeks to manage human resources in order to

    achieve properly organizational goals, an organization's HRM strategy seeks to accomplish such

    management by applying a firm's personnel needs with the goals/objectives of the organisation. As

    an example, a firm selling cars could have a corporate strategy of increasing car sales by 10% over a

    five year period. Accordingly, the HRM strategy would seek to facilitate how exactly to manage

    personnel in order to achieve the 10% figure. Specific HRM functions, such as recruitment andselection, reward/recognition, an HR plan, or learning and development policies, would be tailored to

    achieve the corporate objectives.

    Close co-operation (at least in theory) between HR and the top/senior management, in the

    development of the corporate strategy. Theoretically, a senior HR representative should be present

    when an organization's corporate objectives are devised. This is so, since it is a firm's personnel who

    actually construct a good, or provide a service. The personnel's proper management is vital in the firm

    being successful, or even existing as a going concern. Thus, HR can be seen as one of the critical

    departments within the functional area of an organization.

    Continual monitoring of the strategy, via employee feedback, surveys, etc.

    The implementation of an HR strategy is not always required, and may depend on a number of factors,

    namely the size of the firm, the organizational culture within the firm or the industry that the firm operates

    in and also the people in the firm.

    An HRM strategy can be divided, in general, into two facets - the people strategy and the HR functional

    strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful

    correlation of HRM policies/actions to attain the goals laid down in the corporate strategy. The HR

    functional strategy relates to the policies employed within the HR functional area itself, regarding the

    management of persons internal to it, to ensure its own departmental goals are met.

    Professional organizations

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    Professional organizations in HRM include the Society for Human Resource Management , the Australian

    Human Resources Institute (AHRI), the Chartered Institute of Personnel and Development (CIPD), the

    International Public Management Association for HR (IPMA-HR), Management Association of Nepal

    (MAN) and the International Personnel Management Association of Canada (IPMA-Canada), Human

    Capital Institute. National Human Resource Development Network in India.

    [edit ]Functions

    The Human Resources Management (HRM) function includes a variety of activities, and key among them

    is deciding the staffing needs of an organization and whether to use independent contractors or hire

    employees to fill these needs, recruiting and training the best employees, ensuring they are high

    performers, dealing with performance issues, and ensuring your personnel and management practices

    conform to various regulations. Activities also include managing your approach to employee benefits and

    compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit)

    have to carry out these activities themselves because they can't yet afford part- or full-time help.

    However, they should always ensure that employees haveand are aware ofpersonnel policies which

    conform to current regulations. These policies are often in the form of employee manuals, which all

    employees have.

    Note that some people distinguish a difference between HRM (a major management activity) and HRD

    (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that

    HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g.,

    career development, training, organization development, etc.

    There is a long-standing argument about where HR-related functions should be organized into large

    organizations, e.g., "should HR be in the Organization Development department or the other way

    around?"

    The HRM function and HRD profession have undergone major changes over the past 2030 years. Many

    years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork

    around hiring and paying people. More recently, organizations consider the "HR Department" as playing

    an important role in staffing, training and helping to manage people so that people and the organization

    are performing at maximum capability in a highly fulfilling manner.

    The New Roles of the HumanResources Professional

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    Some industry commentators call the Human Resources function the last bastion of bureaucracy. Traditionally, the role of the Human Resource professional in many organizations has been to serve asthe systematizing, policing arm of executive management.

    In this role, the HR professional served executive agendas well, but was frequently viewed as a roadblock by much of the rest of the organization. While some need for this role occasionally remains you wouldnt want every manager putting his own spin on a sexual harassment policy, as an example much of the HR role is transforming itself.

    The role of the HR manager must parallel the needs of his or her changing organization. Successfulorganizations are becoming more adaptive, resilient, quick to change direction and customer-centered.Within this environment, the HR professional, who is considered necessary by line managers, is astrategic partner, an employee sponsor or advocate and a change mentor.

    Strategic Partner

    In todays organizations, to guarantee their viability and ability to contribute, HR managers need tothink of themselves as strategic partners. In this role, the HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives.

    The HR business objectives are established to support the attainment of the overall strategic businessplan and objectives. The tactical HR representative is deeply knowledgeable about the design of worksystems in which people succeed and contribute. This strategic partnership impacts HR services suchas the design of work positions; hiring; reward, recognition and strategic pay; performancedevelopment and appraisal systems; career and succession planning; and employee development.

    Human Resource Management: DefinedHuman Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objectiveis the maintenance of better human relations in the organization by the development,application and evaluation of policies, procedures and programmes relating to humanresources to optimize their contribution towards the realization of organizational objectives.

    In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at workand their relationships within the enterprise. HRM helps in attaining maximum individualdevelopment, desirable working relationship between employees and employers, employeesand employees, and effective modeling of human resources as contrasted with physicalresources. It is the recruitment, selection, development, utilization, compensation andmotivation of human resources by the organization.

    Human Resource Management: EvolutionThe early part of the century saw a concern for improved efficiency through careful designof work. During the middle part of the century emphasis shifted to the employee'sproductivity. Recent decades have focused on increased concern for the quality of workinglife, total quality management and worker's participation in management. These threephases may be termed as welfare, development and empowerment.

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    Human Resource Management: NatureHuman Resource Management is a process of bringing people and organizations together sothat the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully.

    It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels inthe organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology,economics, etc.

    Human Resource Management: ScopeThe scope of HRM is very wide:1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,placement, transfer, promotion, training and development, layoff and retrenchment,remuneration, incentives, productivity etc.2. Welfare aspect-It deals with working conditions and amenities such as canteens, creches,rest and lunch rooms, housing, transport, medical assistance, education, health and safety,recreation facilities, etc.3. Industrial relations aspect-This covers union-management relations, joint consultation,collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

    Human Resource Management: BeliefsThe Human Resource Management philosophy is based on the following beliefs: Human resource is the most important asset in the organization and can be developed andincreased to an unlimited extent. A healthy climate with values of openness, enthusiasm, trust, mutuality and collaborationis essential for developing human resource. HRM can be planned and monitored in ways that are beneficial both to the individuals andthe organization. Employees feel committed to their work and the organization, if the organizationperpetuates a feeling of belongingness. Employees feel highly motivated if the organization provides for satisfaction of their basicand higher level needs. Employee commitment is increased with the opportunity to discover and use one'scapabilities and potential in one's work. It is every manager's responsibility to ensure the development and utilisation of thecapabilities of subordinates.

    Human Resource Management: Objectives

    To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well-motivated employees.

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    To increase to the fullest the employee's job satisfaction and self-actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee's capabilities to perform the present job. To equip the employees with precision and clarity in transaction of business.

    To inculcate the sense of team spirit, team work and inter-team collaboration.

    Human Resource Management: FunctionsIn order to achieve the above objectives, Human Resource Management undertakes thefollowing activities:1. Human resource or manpower planning.2. Recruitment, selection and placement of personnel.3. Training and development of employees.4. Appraisal of performance of employees.5. Taking corrective steps such as transfer from one job to another.6. Remuneration of employees.7. Social security and welfare of employees.8. Setting general and specific management policy for organizational relationship.9. Collective bargaining, contract negotiation and grievance handling.10. Staffing the organization.11. Aiding in the self-development of employees at all levels.12. Developing and maintaining motivation for workers by providing incentives.13. Reviewing and auditing manpower management in the organization14. Potential Appraisal. Feedback Counseling.15. Role Analysis for job occupants.16. Job Rotation.17. Quality Circle, Organization development and Quality of Working Life.

    Human Resource Management: Major Influencing FactorsIn the 21st century HRM will be influenced by following factors, which will work as variousissues affecting its strategy: Size of the workforce. Rising employees' expectations Drastic changes in the technology as well as Life-style changes. Composition of workforce. New skills required. Environmental challenges. Lean and mean organizations. Impact of new economic policy. Political ideology of the Government. Downsizing and rightsizing of the organizations. Culture prevailing in the organization etc.

    Human Resource Management: Futuristic Vision

    On the basis of the various issues and challenges the following suggestions will be of muchhelp to the philosophy of HRM with regard to its futuristic vision:1. There should be a properly defined recruitment policy in the organization that should giveits focus on professional aspect and merit based selection.2. In every decision-making process there should be given proper weightage to the aspectthat employees are involved wherever possible. It will ultimately lead to sense of teamspirit, team-work and inter-team collaboration.3. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities.

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    4. Networking skills of the organizations should be developed internally and externally aswell as horizontally and vertically.5. For performance appraisal of the employees emphasis should be given to 360 degreefeedback which is based on the review by superiors, peers, subordinates as well as self-review.6. 360 degree feedback will further lead to increased focus on customer services, creating

    of highly involved workforce, decreased hierarchies, avoiding discrimination and biases andidentifying performance threshold.7. More emphasis should be given to Total Quality Management. TQM will cover allemployees at all levels; it will conform to customer's needs and expectations; it will ensureeffective utilization of resources and will lead towards continuous improvement in allspheres and activities of the organization.8. There should be focus on job rotation so that vision and knowledge of the employees arebroadened as well as potentialities of the employees are increased for future job prospects.9. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy.10. The capacities of the employees should be assessed through potential appraisal forperforming new roles and responsibilities. It should not be confined to organizationalaspects only but the environmental changes of political, economic and social considerationsshould also be taken into account.11. The career of the employees should be planned in such a way that individualizingprocess and socializing process come together for fusion process and career planning shouldconstitute the part of human resource planning.

    To conclude Human Resource Management should be linked with strategic goals andobjectives in order to improve business performance and develop organizational culturesthat foster innovation and flexibility. All the above futuristic visions coupled with strategicgoals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feelby Heart, think by Head and implement by Hand.

    What is Performance Appraisal

    Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilitiesof a person for further growth and development. Performance appraisal is generally done in systematic ways whichare as follows:

    1. The supervisors measure the pay of employees and compare it with targets and plans.2. The supervisor analyses the factors behind work performances of employees.3. The employers are in position to guide the employees for a better performance.

    Objectives of Performance Appraisal Performance Appraisal can be done with following objectives in mind:

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    1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.2. To identify the strengths and weaknesses of employees to place right men on right job.3. To maintain and assess the potential present in a person for further growth and development.4. To provide a feedback to employees regarding their performance and related status.5. To provide a feedback to employees regarding their performance and related status.6. It serves as a basis for influencing working habits of the employees.7. To review and retain the promotional and other training programmes.

    Advantages of Performance Appraisal It is said that performance appraisal is an investment for the company which can be justified by following advantages:

    1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

    2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Meritrating is possible through performance appraisal. Performance Appraisal tries to give worth to aperformance. Compensation packages which includes bonus, high salary rates, extra benefits, allowancesand pre-requisites are dependent on performance appraisal. The criteria should be merit rather thanseniority.

    3. Employees Development: The systematic procedure of performance appraisal helps the supervisors toframe training policies and programmes. It helps to analyse strengths and weaknesses of employees so thatnew jobs can be designed for efficient employees. It also helps in framing future development programmes.

    4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity andimportance of the selection procedure. The supervisors come to know the validity and thereby the strengthsand weaknesses of selection procedure. Future changes in selection methods can be made in this regard.

    5. Communication: For an organization, effective communication between employees and employers is veryimportant. Through performance appraisal, communication can be sought for in the following ways:

    a. Through performance appraisal, the employers can understand and accept skills of subordinates.b. The subordinates can also understand and create a trust and confidence in superiors.c. It also helps in maintaining cordial and congenial labour management relationship.d. It develops the spirit of work and boosts the morale of employees.

    All the above factors ensure effective communication.

    6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates aperson for better job and helps him to improve his performance in the future.

    Performance Appraisal Process

    For many employees working in the organized sector, the term appraisal process conjures images of hope and fear simultaneously. Hobetter grade and fear about potential downgrading or a bad rating. The weeks leading up to the appraisal are filled with hectic activity wemployees get down to evaluating themselves and prepare to market their achievements during the time for which the appraisal is beinconducted. Before launching into the details of the appraisal process and the theory and practice of the same, it is pertinent to understaterm appraisal process refers to and why it is important for the firm as well as the employees.

    What constitutes the Performance Appraisal process ?The performance appraisal process, simply put, is the time of the year when the employees are evaluated on their performance during tmonths or one year depending upon the timeframe that is set for the same. The performance appraisal process is conducted between temployee and his or her manager for the first round and subsequently between the manager and the managers manager before going ithird round which involves the above people

    excluding the employee but involving the HR manager as well. The various rounds that comprise the appraisal cycle correspond to thestages of the process culminating in the final grading of the employee.

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    Appraise and Appraiser The most important round is the appraisal interview itself (we will discuss more about this in a separate article)between the employee and his or her manager. The employee who is being evaluated is called the appraise and theperson (usually the manager) who is doing the evaluation is called the appraiser. The appraiser and appraise preparethemselves for this round by doing a self evaluation (by the appraise) and an objective evaluation (by the appraiser).This is the round in which the most important achievements as well as glaring failures on the part of the appraise arediscussed threadbare and usually the employees role in the process is limited to this round.

    What is the outcome of the Appraisal Process ?As outlined above, the outcome of the appraisal process is the grade that is decided for the employee as well as thesalary hike or the bonus potential that is awarded to the employee. Typically, organizations divide the year in whichthe employees performance is evaluated into two cycles, one for deciding the salary hike and the other for decidinghow much bonus he or she gets for the cycle. In this way, organizations ensure that there is no overlap in grading theemployee and a fair and balanced evaluation is the desired outcome though this does not always happen in reality.

    Shortcomings of the Appraisal ProcessThe successful completion of the appraisal process hinges on all the participants approaching the same with anintention to contribute positively instead of bringing personal biases and prejudices to the table. Management expertsusually prescribe a set of dos and donts to the participants in order to have an harmonious process. However, as

    has been pointed out above, the process itself is not without its shortcomings and the expecting the participants to berational and objective at all times is indeed difficult. Further, since most organizations decide the grades in a waysimilar to the b-school equivalent of Relative Grading instead of absolute ratings, an element of competitive rivalrycreeps into the process making some employees unhappy.

    IntroductionWe have discussed the performance appraisal process in earlier articles. In this article, we discuss the performance appraisal interviewimportance in the performance appraisal cycle. The performance appraisal interview is the first round in the performance appraisal procthis is the round in which the manager communicates his evaluation of the employees performance during the appraisal period or the tiemployees performance is being evaluated.

    What is a Performance Appraisal Interview ?A performance appraisal interview is the first stage of the performance appraisal process and involves the employee and his or her manface to face to discuss threadbare all aspects of the employees performance and thrash out any differences in perception or evaluation.performance appraisal interview provides the employee with a chance to defend himself or herself against poor evaluation by the manaalso gives the manager a chance to explain what he or she thinks about the employees performance.In a nutshell, the performance appraisal interview precedes the normalization process and is subsequent to theemployee filling up the evaluation form and the manager likewise doing so. The interview is the stage where bothsides debate and argue the employees side of the story as well as the managers perception.

    Objective Evaluation versus Personal BiasesThough management theorists like to propound the benefits of objective evaluation, it is a fact in contemporaryorganizations that an element of personal bias enters the evaluation. This is evident from the studies and surveysdone by HR consultants like Hewitt that point to the employees dissatisfaction with the performance appraisalprocess as one of the main reasons for leaving the company. To curb the incidence of biases and heuristics playing a

    role in the appraisal, HR managers typically conduct orientations and trainings to both the Managers and theEmployees to sensitize them to these dangers that are sometimes inherent in the process.

    On the other hand, the employees should approach the process without unrealistic expectations and expect theManager to agree to whatever they write on the performance evaluation form. Hence, there is a need for both sides inthe interview process to approach the same with an open mind and be as objective as possible. However, this iseasier said than done and hence organizations expend resources on making the process as transparent andobjective as possible.

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    The Right and Wrong Way to Approach a Performance Appraisal Interview

    The performance appraisal interview must be taken seriously and both the employee and the manager must set asidetime to go through the process. The manager cannot arbitrarily change the time or the venue and must not approachthe interview in a haphazard manner. Despite all these injunctions, it is often the case that the manager has to bereminded about the interview and then he or she hurriedly arranges the meeting. This is definitely the wrong way toapproach the interview. Further, the manager must make the time to go through the employees self evaluation andrate the same objectively.

    Though there is no right way to conduct the performance appraisal interview, it is incumbent upon the manager toavoid the pitfalls described above. A rule of thumb would be set aside a few days to conduct all the interviews withmembers of his or her team and ensure follow-ups to the process. The follow-up is needed when the employee is notsatisfied with the interview discussion and hence requests for additional time to debate the rating. In some cases, theHR manager may need to step in to ensure that the process is concluded to the satisfaction of the employee and themanager.

    ConclusionSurveys have shown that nearly 70% of the employees who leave organizations cite the bad rating that they have gotas the reason for quitting and often voice their disappointment at the process in the exit interview. Hence, there is a

    need for organizations to smoothen the performance appraisal process and since the performance appraisalinterview is the first step; the beginning must be made well. Since the career progression of employees depends onthe ratings that they get, the whole process must be taken seriously by all the stakeholders.

    Performance Management as a HR Managementconcept

    The very mention of appraisals, reviews and ratings is enough to make seasoned professionals cringe and rejoicealike. For some, these are occasions when they would come out smiling out of the review whereas for others, there isnothing memorable about the whole process. So, what is it that is so important about performance management? For starters, performance management is the process of reviewing an employees performance during thepreceding year or cycle and deciding where he or she stands as far as their peers in the same band areconcerned. The process of reviewing results, arriving at a rating and then deciding upon the bonus or salary hike iswhat performance management is all about. Before we look at the topic sentence, it is important to understand whatgoes into the decision making process and who is involved in the same. Typically, the process of performancemanagement starts a month or two before the appraisal cycle ends. The appraisal cycle can be half-yearly or yearlydepending upon the policies of the organization. Further, the appraisal cycle can be based on the calendar year or the financial year i.e. it can run from April to March of the following year or January to December of the same year. Inthe same vein, it can be half-yearly as well.

    There are different rounds to the appraisal process .

    1. In the first round, the people who participate in an employees appraisal are the employee and his or her manager. In this round, the manager gives a frank assessment of the employees performance after giving achance to the employee to self-assess.

    2. The second round consists of the manager and the managers manager. This round is mostly about decidingthe band in which the employee falls post the rating and in comparison with his or her peers. This process of rationalizing the employees performance with others is called normalization . In some organizations, thistakes place in the third round where the HR manager is involved as well. In any case, the ratings cannot bedecided without the HR managers assent to the same. Once these rounds are over, the bonus level or thesalary hike are decided.

    What we have described in the above paragraphs is the way the system ought to work. However, as any HRprofessional or Industry magazines would tell you, the performance management process as it exists in many

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    organizations leaves a lot to be desired. In fact, surveys and studies have found that the majority of employees whoquit organizations do so because of differences over their ratings. In other words, attrition is in many cases a directconsequence of the way in which the performance management process is managed.

    The question as to why this happens can be best understood if we understand the dynamics inherent in the process.For instance, despite exhortations from HR professionals and experts about letting personal biases and prejudicesaffect the process, in many cases, if the manager and the employee do not see eye to eye on many issues, theappraisal and the ratings are the place where this difference of opinion comes out into the open. Further, theorganizations are themselves to blame in some cases as the process of normalization means a winner takes allapproach which leaves the moderate performers bracketed with the poor performers. The point here is not to belittlethe competitive environment that is the reason for this. On the other contrary, what is needed is a more holisticapproach towards performance management that takes into account the varying needs of employees and a broader appreciation of differing working styles and motivations.

    HR Challenges - How to cope with themefficiently ?

    Human Resource Management used to be considered as other conventional administrative jobs. But over a period of time, it has evolved as a strategic function to improve working environment, plan out human resources needs andstrike a balance between the organization and employers in order to increase organizational productivity and meetorganizational goals. Not to exaggerate but in todays highly competitive world it has gradually become one of themost important functions of an organization.

    It is really a huge challenge to understand the psychology of workforce, retain the best talents of the industry,motivate them to perform better and handle diversity while maintaining unity simultaneously, especially in countrieslike India, where it is still evolving. Globalization has resulted in many positive developments but it has left manyconcerns for HR managers.

    In todays tough world and tight job market, coordinating a multicultural or diverse workforce is a real challenge for HR department.

    Human resource managers are on their toes to strike a balance between employer and employees keeping in mindthe recent trends in the market. They may find themselves in dire consequences if they are not able to handle thehuman resource challenges efficiently.

    To remain in business, human resource managers need to efficiently address following human resourcechallenges:

    Handling Multicultural / Diverse Workforce: Dealing with people from different age, gender, race,ethnicity, educational background, location, income, parental status, religious beliefs, marital status andancestry and work experience can be a challenging task for HR managers. With this, managing people withdifferent set of ideologies, views, lifestyles and psychology can be very risky. Effective communication,adaptability, agility and positive attitude of HR managers can bind the diverse workforce and retain talents inthe organization.Managing Change: Who wants to change their ideology or way of working? Neither you nor I. How can weexpect others to change then? Bringing change in organizational processes and procedures, implementing itand then managing it is one of the biggest concerns of HR managers. Business environment is so volatile.Technology keeps changing every now and then. All thanks to globalization. Upgrading the existingtechnology and training people for them is a real headache for HR department. The success rate of technology change depends how well HRD can handle the change and manage people issues in theprocess.Retaining the Talents: Globalization has given freedom to working professionals to work anywhere in theworld. Now that they have endless lucrative opportunities to work, hiring and retaining the best industrytalent is no joke. Maintaining harmonious relations with them, providing excellent work environment andoffering more remuneration and perks than your competitors can retain and motivate them.

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    year's goals, objectives, and development.

    Developing Feedback Skills

    The purposes of this article are to show you the importance of providing both positive andnegative feedback and to identify specific techniques to help make your feedback more

    effective.Positive feedback is more readily and accurately perceived than negative feedback.Furthermore, while positive feedback is almost always accepted, negative feedback oftenmeets resistance.

    Developing Peak Performers

    Extensive research into peak performers in all walks of life shows that they have very similar ways of thinking about themselves and others. They share other similar mindsets, too.Because of this, they operate in similar ways. This article explains what we know about peakperformers, whether in business, public service, private life, school, athletics, or teampursuits. People who adopt these four mindsets and approaches to life become peak

    performers, too.

    The Attributes of a Good Coach

    A good coach is positive, enthusiastic, supportive, trusting, focused, goal-oriented,knowledgeable, observant, respectful, patient, and clear. Let's look at how each characteristiccomes into play in the workplace. A good coach is positive. Your job is not correctingmistakes, finding fault, and assessing blame. Instead, your function is achieving productivitygoals by coaching your staff to peak performance.

    Personal Characteristics in Performance Appraisal Process

    Does a relationship between the personal characteristics of the rater and the ratee affect thefavorability of the rating? Rand and Wexley used a simulated employment interview to helpanswer that question. Although the employment interview and performance appraisal are twoseparate aspects of the human resource function, they have a similarity that seemsappropriate to the question.

    Six Roles of Employees in the Performance Review Meeting

    Wise managers ask each of their subordinates to create an accomplishments list to begin theperformance assessment phase. This list is intended to provide the manager with a record of those achievements and accomplishments that the individual felt were the most importantduring the appraisal period. In the meeting, the individual should review the accomplishments

    list he prepared to make sure that the appraiser has appropriately incorporated hisachievements during the review period.

    Giving Negative Feedback

    When negative feedback is necessary, the best time to give it is now before the problem getsany worse. Early attention to developing problems lets you turn the painful experience of negative feedback into the more constructive process of corrective feedback.

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    Executive Coaching and Business Strategy

    Successful executive coaching requires sophisticated understanding of organizations as wellas of individuals. Nowhere is that more apparent than in the intersection of business strategyand the executive coaching that supports it. Senior leaders play a critical role in setting

    direction, defining strategic positions, and providing focus for the business operations neededfor successful execution. Through executive coaching, a leader can be more effective, as anindividual, in guiding the execution of the strategy.

    Framework for the Strategic Executive Coaching Process

    This article describes the process component of executive coaching by breaking it down intofive key steps. The exact determination of dividing lines between the individual steps is lessimportant than the approach to issues that arise during the process as a whole. In step one:Careful Contracting, we should create a trusting environment in which open dialog can occur and underlying issues can be brought to light. A great deal of honest communication andfeedback will set the parameters of the executive coaching process.

    Traps to Avoid in Mentoring Process

    There are countless traps along the path of mentordom. Mentoring can be a power trip for those seeking an admirer, a manifestation of greed for those who must have slaves.Mentoring can be a platform for proselytizing a cause or crusade, a strong tale told to aninnocent or unknowing listener. However, the traps of power, greed, and crusading all palewhen compared with the subtler description listed below. There are other traps, of course, butthese are the ones that most frequently raise their ugly heads to sabotage healthyrelationships.

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