Introduction to human resource management

1. Introduction to human resource management Importance Manpower planning: concept, features and objectives Manpower planning process Sources of recruitment Selection process Selection tests

2. Definition of HRM • Human Resource Management is a management function that helps managers to recruit, select, train and develop members for an organization. • HRM is also a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations.

3. Importance of hrm • Value of human resources • Human resources accounting

4. Value of human resources • Human resources play a vital role in determining nation’s progress and prosperity. • Develop fast with quality of human resources • Business has become knowledge based, service oriented, competitive and more dynamic in this new age. • According to Adi Godrej, Chairman and Managing Director, “all corporate strengths are dependent on people.” • It is an unique asset to gain competitive advantage over its competitors.

5. Human resources accounting • Human resources accounting is defined as “accounting people as organisational resources.” • It is measurement of the cost and value of people for an organisation. • In recent times, the criticality of the contributions of human resources have been acknowledged and recognised. • It helps management to value its human resources and use it with discertion and wisdom.

6. Manpower planning- concept • It can be defined as the process of ensuring the right number of qualified people into the right job at the right time to deliver the results in an efficient and effective manner. • It is the system of matching the available resources, either internally or externally, with the demand that the organisation expects to have over a period of time.

7. Features of manpower planning • Quantity : how many employees do we need? • Quality : which skills, knowledge and abilities do we need? • Space : where do we need the employees? • Time : when do we need the employees? How long do we need them?

8. Objectives of manpower planning • To maintain the required quantity and quality of human resources for a smooth & efficient functioning of the organisation. • To forecast the turnover rates • To plan to meet organisational human resource needs at the time of expansion or diversification • To foresee the effects of technological changes on the requirement for human resources and to provide for the same.

9. To develop the existing human resources to match the human resource requirements of the future. • To optimise staffing in the organisation • To make contingent plans to handle sudden requirements and situations of shortfall • To utilise human resources effectively and efficiently • To estimate the value of human resources and their contribution to the organisation

10. Manpower planning process • Analysing the impact of the organisational strategy and objectives on different units of the oragnisation in terms of the human resource requirements. • Involving the line managers in determining the human resource needs of their respective departments • Forecasting the quantity and quality of human resources required by different departments/divisions.

11. Matching the current human resources supply in the organisation with the numbers required in the future. • Developing an action plan to meet the future requirements in terms of addition or seperation, in a planned manner.

12. Recruitment Recruiting involves attracting and obtaining as many applications as possible from eligible job seekers.

13. Sources of recruitment • Internal sources (recruitment from within the enterprise) • External sources (recruitment from outside)

14. Internal sources • Transfer • Promotion • Temporary workers • Response of employees to notified vacancies

15. Merits of internal sources of recruitment • Economical and convenient to the business firm. • Quickest and cheapest method. • Familiarity of existing workforce with the work environment, policies, framework and rules of the enterprise. • No direction and induction process is required. • Reference checking to authenticate their abilities, integrity and testing the sense of responsibility not required.

16. Helps in boosting employee morale. • Motivates other employee to work better. • Reduces labour turnover and brings in a sense of job security. • Commitment towards the organisation becomes stronger. • Brings in a sense of belongingness in the worker.

17. Demerits of internal recruitment • Limited choice • Curtailment of new ideas • Inefficiency • Incomplete source • Create frustration

18. External sources • Advertisement • Employment agencies • Educational institutions • Recommendations • Casual callers • Direct recruitment • Labour contractors

19. Merits of external sources • Fresh talent and skill comes into organisation. • New employees may make an effort to change the old norms and habits. • Employees who join in fresh can be appointed by new policy and terms. • Experienced and qualified candidate may bring up the organisational productivity.

20. Demerits of external sources • Demoralisation • Expensive • Danger of maladjustment

21. Selection Selection is the process of picking individual with requisite qualifications and competence to fill jobs in the organisation.

22. Selection process • Preliminary interview • Application blank • Employment tests • Employment interview • Physical/medical examination • Checking references • Appointment letter

23. Types of tests • Intelligence test • Aptitude test • Personality test • Proficiency test • Interest test

24. Difference between recruitment and selection • It is the process of searching the candidate for a vacant job and attracting them to apply for the same. • It is a positive process. • It aims is to attract more and more candidates. • It is the process of selection of right type of candidate and offering them a job. • It is a negative process. • It aim is to reject unsuitable candidates. Recruitment Selection

25. It takes place before selection. • The firm notifies the vacancies through various stages and distributes application forms to candidate. • It is done after recruitment. • The firm asks the candidates to pass through a number of obstacles put forth in the form of interviews and various tests. Recruitment Selection

26. No contract can be created as it is just information about a vacancy. • Leads to a contractual agreement as this stage aims at finalizing the prospective employee. Recruitment Selection