HUMAN RESOURCE MANAGEMENT

1. HUMAN RESOURCE MANAGEMENT

2. DEFINITIONS • Human resource management is the process of acquiring, training, appraising and compensating employees and attending to their labour relations, health, safety and fairness concerns.---- Dessler • HRM is a series of integerated decisions that form the employment relationship; their quality contributing to the ability of the organisations and employees to achieve their objectives.—--Milkovich & Boudreau

3. NATURE • Inherent part of management : HRM is a part of Mgt., draws heavily from Mgt. concepts, principle & techniques. This function is performed by all the managers throughout the organization rather than by the personnel department only. • Pervasive Function : All managers at various levels in the organization are required to perform the personnel functions on a continuous basis. It is not a responsibility that a manager can leave completely to someone else.

4. Basic to all Functional areas : All the departments has to perform personnel functions. • People centred : HRM is concerned with people in the organization both present and potential. It is concerned with Top mgt., Middle mgt., Supervisory mgt. & Operatives. • Personnel activities : Manpower planning, Employment, Placement, Training, Appraisal & Compensation. Performed by HR department.

5. Continuous Process : It is not a ‘one shot’ function. It requires a constant alertness and awareness to achieve the objectives. • Based on Human Relations : human relations in the organization will be cordial. Motivation of human resource is very important.

6. SCOPE • Human resource / Manpower planning – determining the number and kinds of personnel required to fill various position in the orgnisation. • Recruitment, selection and placement of personnel – Employment function. • Training and development of employees for their efficient performance and growth. • Appraisal of performance employees.

7. Motivation of work force. • Remuneration of employees. ---sufficient wage and fringe benefits. • Social security and welfare of employees. Canteens, crèches, housing, recreation & health. • Review and audit of personnel policies, procedures and practices of the organisation. • Industrial relation aspects is concerned with union negotiation and collective bargaining.

8. Functions • Managerial : HRM is a part of organizational management. • Planning :is the conscious determination of future course of action to achieve the desired results. Determination of personnel programs that will contribute to the goals of enterprise. It includes a supply and demand forecast for each category, net shortage and excess of personnel .

9. Organizing : is the process of dividing work (personnel activity) in to convenient tasks or duties, grouping of such duties in the form of positions, grouping of various positions in to departments and sections, assigning duties in to individual positions and delegating authority to each position so that work is carried out as planned. • Directing :when people are available in the organization, they must know what they are expected to do in the organization. It include communicating, motivating and leading. To guide and motivate people to accomplish personnel programmes.

10. Controlling : Involves comparing actuals with standards and corrective action. It involves performance appraisal, critical examination of personnel records and statistics and personnel audit. • Operative :Duties/ tasks which are specifically entrusted to the human resource department. • Employment : proper kind and number of persons are necessary to achieve the objective of the organisation. It includes manpower planning , recruitment, selection, Induction ,Placement.

11. Development : To train each employee properly to develop technical skills & develop him for the higher jobs. There is On-the-job and Off- the job methods are available. • Compensation : Determination of adequate and equitable remuneration. The personnel can be compensated both in terms of monetry as well as non-monetary terms. While fixing the wage, the following factors should be considered. Basic needs of the personnel, legal provisions regarding minimum wage, capacioty of the organization to pay, wage level afforded by competitors. Job evaluation and performance appraisal can be followed.

12. Maintenance ( Working Conditions and Welfare) : Measures taken for health , safety, cafeteria, rest rooms, counseling, group insurance recreations etc… • Motivation : HR manager helps the various departmental mangers to design a system financial and non-financial reward to motivate employees. • Personnel records :Records of their training, achievements, transfer, promotion, absenteeism and labour turnover, policies…

13. Industrial Relations : settlement of disputes, collective bargaining ….. • Separation : HR manager has to ensure the release of retirement benefits….. • Advisory : Gives advise relating human resource of the organization. • Top Management : evaluation of personnel Programme, policies & procedures. • Department heads : performance appraisal , job analysis, manpower planning training , recruitment…

14. Importance of HRM / Role of HR Manager • Policy Formulation : HR policies are indented to communicate to the employees the basic ground rules under which the organization functions and to avoid discrimination, inconsistency and confusion. HR manager helps top management in the formulation of policies on wage and salary, administration, transfer, appraisal, welfare activities, personnel records and work environment.

15. Advisory Role : advice to line managers , Department Heads, Top management. Matters like grievance over distribution of overtime work, disciplinary action, labour laws, preparation of reports. • Linking Pin Role : Linking Pin between management and the workers. • Representative Role : generally act as a spokesman of the top management, representative of company. Sometimes worker’s representative, particulary in non-unionised organisations.

16. Decision making Role : Plays effective role in decision making on issues related to human resource. • Mediator Role : Mediator in the event of conflict between employees, group of employees, superior & subordinate and even between management and employees. • Leadership Role : provides leadership, guidance and counseling to employees.

17. Welfare Role : Act as welfare officer. He is concerned with provision of canteen, crèches, hospital and other welfares. • Research Role : on the basis of records he undertake various research in various personnel areas absenteeism, labour turnover etc..

18. Human Resource Planning • Human resource planning is the process by which an organisation ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation to achieve its overall objectives. ---- Decenzo & Robbins • Manpower planning is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. -----Coleman

19. scope • Listing of current manpower with the organisation. • Assessing the extent to which the current manpower is utilised to the advantage of the organisation. • Phasing out the surplus manpower/if any. • Analysing the requirements of manpower in future in the light of expansion plan, retirement of personnel. • Making manpower procurement plan. • Designing training programmmes for different categories of manpower.

20. Objectives • To ensure optimum use of human resource currently employed. • To determine future recruitment level. • To provide control measures to ensure that necessary resources are available as and when required. • To anticipate redudancies and avoide unnecessary dismissals. • To forecast future skill requirements to serve as a basis for training and development programmes.

21. To assess future housing needs of employees. • To cost the manpower component in new projects. • To decide whether any of enterprise activities be off-loaded or subcontracted. (maintenance) • To control cost aspect of human resource. • To formulate transfer and promotion policies.

22. Process • Objectives of manpower planning : HRP must be integrated with the overall organizational plan. The ultimate purpose of HRP should be decided. • Analysis of current manpower inventory : analysis of current manpower supply may be undertaken by department, by function, by occupation, or by level of skill or qualification.

23. Demand forecasting : A proper forecast of manpower required in the future ( say after one year, two years, three years and so on) must be attempted . • Employment Trends : The manpower planning committee at the corporate level should make an examination of number of employees on the payroll during the past five years to know the trend. • Replacement Needs : Need of replacement arises due to death , retirement, resignation and termination of employees.( supervisory. Skilled, managerial, clerical)

24. Productivity : Gains in productivity add to the growth potential of the organisation.Planning for productivity gains has several aspects. • The first and important one relates to affecting gains by improvement in existing manapower utilisation. • The second aspect relates to installation of more productive tools , equipments or process. (Automation). • The last aspect relates to the matching of skills with the requirements of the jobs.(Job Analysis)

25. Growth and Expansion : Expansion of various plants and divisions. • Absenteeism : it mean a situation when a person fails to come for work when he is scheduled to work. Planning expert should consider the rate of absenteeism. • Work study : workload analysis. • Supply forecasting : there is two sources of supply – internal and external.

26. Human Resource audit : It gives idea about the potential and capabilities of people working in an organisation. (management inventories, skill inventories) • Replacement Charts : These are meant for listing each key position and indicating time when it it is likely to be vacated. • Estimating the Net Human Resource Requirements: compare the demand forecast with the projected internal supply of human resource.

27. Action Plan for Redeployment /redundancy : In the case of surplus staff position, employees caan be redeployed to other jobs / departments. If it is cannot be redeployed , offer golden handshake under VRS scheme. • Determining Job Requirements of position to be filled : accurate job description help in finding suitable candidates. • Employment plan : Preparing the programmes of recruitment , selection, transfer, promotion….

28. Training and development programe : the talents of the employees are not fully productive without a systematic T & D. • Evaluation of effectiveness of HRP

29. Objectives of HRP Inventory of HR Skills Demand & Supply forecasting Determine Net Manpower Requirements Appraisal of HRP T & D Programme Employment Program Redeployment & Redundancy Plan

30. Benefits of HRP • HRP results in reduced labour costs • It is a better basis for planning employee development. • It enables identification of the gaps of the existing manpower. • It leads to improvement in the overall business planning process. • It helps in formulating managerial sucession plan. • It leads to greater awareness of the importance of sound management. • It serve as a tool to evaluate the effect of alternative manpower action and policies.

31. Quantitative aspects of HRP • Demand forecasting : Estimating the requirements of different kinds of personnel in future. HRP forecast should be the annual budget and long-term corporate plan translated in to activity levels of each functions and department. There are three basic techniques. • Managerial judgment :Used in smaller companies. This simply requires manager to sit down, think about their future workloads and decide how many people they need. It might be done on a

32. bottom-up basis – line managers submitting proposals • Top-down approach : Forecasts are prepared by the top management. These are reviewed and agreed with the departmental managers. • The best way to adopt both the bottom-up and top-down approach.

33. Work study technique : It can be used when it is possible to apply work measurement to know how long operations should take and the amount of labour required. planed output • Work-load analysis : in this , the manpower planning expert needs to find out sales forecast, work schedules and thus determine the manpower required per unit of product. • Work-force analysis : it is necessary to keep sufficient margin for absenteeism, labour turnover and idle time on the basis of past experience.

34. Statistical techniques :For long range & more accurate personnel forecasting. • Ratio and Trend analysis : Calculation on the basis of established ratios. It is worked out for number of years based on the past records of the organisation and future trends are projected on these ratios. (supervisory & managerial) • Econometric model : it helps in understanding the nature of relationships among different variables at the different levels. Suitable for large organisations. It refers to the science of economic measurement.

35. Regression analysis : In this human resource needs is the dependent variable and independent variables are business activity, HR productivity… • Bureck-smith model : Forecasting based on the selected key variables that affect an organisations HR needs. En = (Lagg + G) /x Y

36. En = estimated level of HR needed in ‘n’ plan period. Lagg =total business activity of ‘n’ period in terms of value G = total growth in business activity in ‘n’ period based on the current prices. X = average productivity improvement in ‘n’ period over the current period. Y = business activity—personnel ratio of the current year.

37. Delphi Technique : A small group designs questionnaire about the problem under study which is sent to various experts related to the field. Filled up questionnaires are analyzed. If any divergence in opinion, a revised questionnaire sent to large experts. It will continue until some consensus reached.( Fashion trends for next year). Here It can be used to know the trends in changing job profile & personnel profile across the country and international level. It helps to get experts view in different functional area.

38. Supply forecasting : Manpower suply forecasting measures the number of people likely to be available from within and outside an organisation, after making allowance for absenteeism, internal movements and promotions, wastage and change in work hours and other working condition of work. • Markov Analysis : Historical flows of personnel (transitions) through the organisation are represented by probabilities. (Ref.—p174 HRM, L.M Prasad)

39. Simulation techniques : It considers alternative flows which are examined for effect on future manpower supplies. Alternative flows reflect the anticipated result of policy or programme changes concerning voluntary turnover retirement , promotion etc… • Renewal analysis : this technique future flows and supplies of manpower by calculating (i) vacancies created by the organisation (ii) the results of decision rules governing the filling of vacancies. • Goal programming : The goal to optimize the desired stafing pattern subject to a set of constraints (salary budget, new recruitment permitted.)

40. Human resource inventory : It is the cataloguing the present and future potentials. It includes • Skill inventory (non-managerial) : Personal data, skills-education, job experience, training, special achievements, salary, job history, potential of employees. • Management inventory :Personal data, work history, strength and weakness, career plan, promotion potentials, number and type of employee managed, total budget managed, special achievements.