Introduction to Human Resource Management

1. Introduction to Human Resource Management What is HRM? Scope & Functions of HRM. Characteristics of HRM. Evolution of HRM in India. Challenges of HRM. Difference between HRM & HRD.

2. Definitions of HRM • A set of systematic and planned activities designed by an organization to provide its Human capital with the necessary skills to meet current and future job demands. • The planning, organizing, monitoring and controlling of processes in the Human Capital vertical which include Sourcing, Induction, Compensation management, Performance Appraisals, Training & Development, Career Planning, Job rotation, Transfers & Promotions, Safety & Welfare, Employee Relations, Staff Exits e.t.c constitute HRM. • HRM is the effective and efficient management of Talent Acquisition, Talent Development & Talent Retention.

3. Scope of HRM • Manpower or Human Resource Planning. • Recruitment & Selection – Sourcing. • Induction. • Job Analysis, Design & Evaluation. • Performance Appraisals. • Training & Development. • Job Rotation, Transfers & Promotions. • Career Planning. • Compensation Management. • Rewards & Recognition. • Health, Safety & Welfare. • Industrial Relations/Employee Relations. • Statutory compliances of Labour legislations

4. Characteristics of HRM • Deals with management of people or Human resources. • Is an Applied Behavioural science. • Draws concepts from Philosophy, Psychology, Sociology, Political science, Economics e.t.c. – A multi-disciplinary approach. • Is concerned with Org. Behaviour & Org. Development. • Brings people and organizations together and is concerned with evolving a positive and a strong value oriented high performing culture, which would result in Employee development and Organizational growth and excellence. • Establishes a framework for managing people better in the organizational context. • As HRM deals with people, it needs to be transparent, sensitive, empathetic and having a long term vision.

5. Evolution of HRM in India • Concept of ‘Jobbers’ during early 20th century. • Royal Commission of Labour in 1930 set up the concept of ‘Labour Officers’. • Evolved to ‘Welfare Officers’ post independence. • Emergence of ‘Personnel & IR Function’. • “Human relations” movement in the West promoted the concept of “HRM” in the 80’s. • Promotion of Developmental agenda in the HR practice saw ‘HRD’ taking shape in the late 80’s/early 90’s. • Is seen as a Strategic Business function today whose contributions can convert an organization into an Institution. • Contributions can be quantitatively measured – EVA concept.

6. Challenges of HRM • Talent Attraction & Retention has become a process which needs to be meticulously structured and creatively managed. • Training & Development needs to create a ‘Learning Organization’. • Compensation Management needs to be in sink with market trends and should be competitive. • Staff burn-out. • Need for structured career development. • Motivational factors seem to be changing and are getting complex by the day. • Loyalty & Commitment – Shorter career spans. • HR Out-sourcing.

7. CONTEXT OF HRD • It is an integral part of HRM. • It aims to create a Learning Organization. • It matches the org. need for Human Resource with the individual need for career growth and development • It brings about behavioral changes in people for acquiring desired levels of competence and excellence. • HRD aims to get the human capital of an enterprise ready to tap on current and future growth opportunities by offering organized Learning & Development experiences.

8. CONTEXT OF HRD • It is a system comprising of several inter-related sub-systems. • It is a planned process to acquire or sharpen capabilities, develop general capabilities and develop an organizational culture which contributes to individual development as well as organizational excellence. • It develops competencies at all levels.

9. HRD V/S PERSONNEL MANAGEMENT • HRD is a sub-system of the larger system – the organization. • HRD unlike PM is the concern and responsibility of all Managers in an organization. • PM is reactive, HRD is pro-active. • Morale, job satisfaction determine improved Job performance- belief of HRD; whereas PM is more concerned with making rules for determining performance.

10. Job Analysis, Design & Evaluation • Job Analysis is the process of collating detailed information regards a job/role. • Data is on the nature of the job & qualities & qualifications required for performing the job. • Per Edwin Flippo Job Analysis is the process of studying and collecting information relating to the operations and responsibility of a particular job.

11. Process of Job Analysis • Selection of specific job/role for analysis. • Data gathering through different techniques. • Data processing for arriving at a conclusion on the specific job selected for analysis. • Preparation of JD in the format designed for the same. • Preparation of the Job Specification in the designed format.

12. Importance /Advantages of Job Analysis • Important input for Job Specification. • Facilitates HR Planning. • Job postings/adverts become more meaningful and realistic. • Employment Tests and Selection methods become more appropriate. • Facilitates proper Placements and Inductions. • Job Analysis data forms a benchmark to assess performance levels of staff in their respective job roles. • JA data can be used as a benchmark to determine training and developmental needs of staff. • Important input to carry out Job Evaluation. • Facilitates planning and introduction of an effective Compensation structure. • Facilitates redesigning of jobs. • Provides information of all related jobs based on which staff movements can be planned.

13. Job Analysis Techniques • QUESTIONNAIRE. • OBSERVATION. • INTERVIEW/PERSONAL MEETINGS. • COMBINATION OF THE ABOVE.

14. Job Design • It involves a systematic attempt to organize tasks/duties and responsibilities into a unit of work to achieve certain objectives. • Horizontal scale differentiation – Different tasks across the org. being performed by different people. • Vertical scale differentiation – Establishing hierarchy of tasks for supervision of sub-groups. • Per Michael Armstrong: Job Design is the process of deciding on the contents of a job role in terms of it’s responsibilities, on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exist between the job holder and his superior, team members and subordinates. • Job Design incorporates the following 3 steps: * Specification of individual tasks. * Determining the methods of performing each task. * Combination or grouping of tasks into specific jobs to be assigned to individuals. • Job Design should successfully integrate org. requirements & the individual needs/competencies. • Well designed jobs ensure talent attraction & retention.

15. Factors affecting Job Design • ORGANIZATIONAL: * Task characteristics. * Work flows. * Ergonomics. * Work practices. • ENVIRONMENTAL: * Skills levels and Talent pool capabilities. * Social & cultural expectations. • BEHAVIOURAL: * Feedback. * Autonomy. * Use of skills/abilities. * Variety/Multi-tasking.

16. Techniques of Job Design • WORK / JOB SIMPLIFICATION. • JOB ROTATION. • JOB ENLARGEMENT. • JOB ENRICHMENT. • AUTONOMOUS/ SELF DIRECTED TEAMS. • HIGH PERFORMANCE WORK DESIGN.

17. WORK /JOB SIMPLIFICATION • Job divided into smaller sub-parts and each part is assigned to an employee. • Introduced when jobs are not specialized enough. • Used for repetitive work processes like those on the Assembly line. • It involves predetermination of tools and techniques. • Reduces staff interaction. • Oversimplification may result in boredom leading to attrition.

18. JOB ENLARGEMENT • It means expanding the scope of the job by aggregating 2 or more job roles into a single one. • Tasks/duties get expanded. Assigning more tasks of a similar nature – Horizontal loading. • Vertical loading – Area of accountability is increased and controls reduced thereby giving staff more autonomy and control over their roles. • Brings about a wholeness in the role by reducing monotony. • It is a branch of Industrial Engineering and it does not increase the depth of a job.

19. JOB ENRICHMENT • Based on the assumption that jobs should be made interesting and challenging for staff motivation. A branch of Motivational Theories – OB. • Provides opportunities for achievement, recognition, career advancement. • It enriches the job content thereby upgrading the responsibility, scope and challenge. • It leads to staff performing the management function of planning and control. • Job Enrichment involves a VERTICAL loading of the job. • Job Enrichment gives greater autonomy and control.

20. CHARACTERISTICS OF JOB ENRICHMENT • VARIETY. • TASK IDENTITY. • TASK SIGNIFICANCE. • AUTONOMY. • FEEDBACK.

21. STEPS INVOLVED IN JOB ENRICHMENT • Selecting the jobs for enrichment. • Identifying the changes. • Changing the contents of the job. • Training, guiding, developing & motivating staff. • Integrating into the daily work routine.

22. SELF DIRECTED TEAMS & HIGH PERFORMANCE WORK DESIGN • A team of employees who are responsible for the entire work process that delivers a product/service to an internal/external customer. • Positive and demanding goals are set in HPWD which acts as a means of improving performance.

23. JOB EVALUATION • It means determining the relative worth of jobs in an org. by comparing it with other jobs within the org. and with the external job market. It helps in establishing job hierarchy. It indicates the relative importance of one job with reference to the others. • It establishes the Wage/Compensation hierarchy.

24. Job Evaluation The aim of job evaluation is to provide a systematic and consistent approach to defining the relative worth of jobs within a workplace. It helps to bring a balanced wage structure in an organization. This is possible as job hierarchy is established in the organization. It is the process of analysis and assessment of jobs to reliably ascertain their relative worth, using the assessment as a basis for a balanced wage structure.

25. Purpose of Job Evaluation To establish satisfactory wage and salary differentials To select employees more accurately and train, promote or transfer them within the organization. To promote goodwill, strengthen and maintain morale and loyalty and provide an incentive for efficiency. To provide management with a basis of proper control To determine the rate of pay for each job Basis of comparison for salaries

26. Principles of Job Evaluation Rate the job role and not the job incumbent. Rating elements should be few, easy to explain and comprehensive. Uniformity in understanding w.r.t definition of the rating elements and consistency in degree of those elements. Rating plan should be made public.

27. Methods of Job Evaluation Ranking or Grading method Classification method Factor comparison method Point method

28. 1. Ranking /grading Method Simplest, least formal, non-analytical & inexpensive. Each job is considered as a whole and ranked against the other whole job. Jobs ranked in a ‘felt fair’ rank order to produce a league table which has the most important job at the highest end and the least important one at the lowest end. Jobs are compared to these benchmarks and other jobs then get ranked. Jobs are compared to each other based on the overall worth of the job to the organization. Ranking is done by an expert committee called ‘Job raters’.

29. 1. Ranking /grading Method It does not indicate the degree of difference between jobs. It merely indicates that one job is more or less important than the other job. In most instances rankings are not based on Job Descriptions, but on the rater’s knowledge of the jobs. It is unsuitable for a large organization with a complex job structure and with multiple job roles, some of which may appear similar but when analyzed have variances which are significant.

30. 2. Classification Method In job classification the number of grades is decided first and detailed grade definitions produced. Representative (benchmark) jobs are evaluated to validate the definitions. Jobs are classified into an existing grade/category structure or hierarchy. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard.

31. 3.Factor Comparison Method or weight in –money It is an Analytical method. A set of common key factors of different jobs are identified first and then monetary values are assigned to determine the worth of the job. These are called as compensable factors. Each job is then compared as a whole with each other job in turn, and points (0, 1 or 2) awarded. A schedule of Job factors is drawn up by careful analysis of business operations.

32. 3.Factor Comparison Method or weight in –money Job factors/elements normally selected are: * Range of responsibilities. * Skill set/Competencies. * Physical effort. * Mental effort. * Working conditions. Weights are applied to the above elements. Assessment of weights is done by experts. Jobs are ranked as per such weights. A monetary value is assigned to each factor/element of all jobs. All these values of individual jobs are weighted and then the total value of each job is arrived at.

33. 3.Factor Comparison Method or weight in –money More reliable than the Ranking method as dissimilar jobs also can be rated on the basis of common factors. Complicated, expensive and difficult to explain to staff. Application of weightages and monetary values require involvement of experts.

34. Point Rating Method Popular and extensively used analytical method giving a quantitative value for each job role. Each job is evaluated separately, appraising each of the factors such as skill, effort, responsibility and working conditions and then combining the separate evaluations into a single point for each job. Job Descriptions form a vital input at this stage. Job occupants are interviewed to understand jobs. A series of rating scales is designed one for each of the factors. A certain number of points are allowed for each scale. This ensures that differences among jobs are reflected in the different values which are assigned to the factors.

35. Point Rating Method Each job is reduced to a numerical value so that similarity and differences in work and difficulty are revealed. The straight point system OR the weighted point system is used. The points for each factor are summed to form a total point score for the job.

36. Chapter 3: Personnel planning, recruitment & induction Manpower planning or HRP plans for the future manpower needs of an org. It estimates the size and composition of the future work force. It is the process of forecasting an orgs. future demand for and supply of the right type of people in the right number at the right time. Thus HRP is a strategy for the PROCUREMENT, DEVELOPMENT, ALLOCATION & UTILISATION of an orgs. Human resources. HRP involves 2 steps: * HR Demand forecasting. * HR Supply forecasting.

37. Chapter 3: Personnel planning, recruitment & induction 4 broad areas of HRP are: * FORECASTING. * ACQUIRING. * DEVELOPING. * MAINTAINING. HRP can be defined as a strategy for Talent acquisition, utilization, improvement and maintenance of an orgs.

38. Chapter 3: Personnel planning, recruitment & induction FEATURES OF HRP: * Manpower costs are controlled. * Facilitates recruitment of the right talent. * Facilitates proper placement. * Facilitates replacements against vacancies. * Facilitates Manpower development.

39. Chapter 3: Personnel planning, recruitment & induction OBJECTIVES OF HRP: * Optimum use of Human Capital. * Meeting future manpower requirements. * Scientific recruitment. * Availability of adequate manpower. * Development of Manpower.

40. Chapter 3: Personnel planning, recruitment & induction NEEDS OF HRP: *To meet current manpower needs. *To arrange for replacement of attritions resulting in vacancies. *To meet growing manpower needs. *To meet the challenges of changing technological environment.

41. Chapter 3: Personnel planning, recruitment & induction NEEDS OF HRP: *To adjust and balance staff requirements of departments. *Provides inputs to the Recruitment & Selection of staff. *To arrange for proper placement of staff. *To arrange for staff training.

42. Chapter 3: Personnel planning, recruitment & induction LIMITATIONS OF HRP: *Future manpower needs are uncertain. *Surplus manpower in the market makes HRP redundant. *Inadequate attention to environmental changes. *Time consuming and expensive. *Shortage of skilled labour and high attrition.

43. Chapter 3: Personnel planning, recruitment & induction STEPS IN HRP: *Deciding the goals and objectives of HRP. *Estimating the overall HR requirements in the context of org. objectives and business plans –HR Needs Forecast. *Taking inventory of the current Human Resource of the org – HR Supply Forecast. *Determining actual HR requirement on the basis of Job requirements & Description.

44. Chapter 3: Personnel planning, recruitment & induction STEPS IN HRP: *Preparing a HR recruitment & selection plan – HRP Implementation. *Developing appropriate HR development plan to meet the future needs from within the org. *HR Programming involves conversion of HR plan into action, which involves RECRUITMENT & SELECTION and PLACEMENT.

45. Chapter 3: Personnel planning, recruitment & induction FINAL STEP OF HRP: *Control & Evaluation – This step indicates whether there is Surplus OR Shortage of Manpower. *If there is shortage, Recruitment & Selection will be initiated.

46. Chapter 3: Personnel planning, recruitment & induction VOLUNTARY RETIREMENT SCHEME (VRS) *Also called “Golden Handshake” , separates excess manpower – Control of org. obesity. *Announces a Separation scheme which compensates separating staff for early retirement. *Invites application from staff. Authority to accept lies with the Management. *Is different from Retrenchment, Dismissal & Termination.

47. Chapter 3: Personnel planning, recruitment & induction VOLUNTARY RETIREMENT SCHEME (VRS) *Pension, Gratuity, Loyalty Bonus, Long Service Pay and compensation package designed under VRS is offered to parting staff. *Reduces surplus staff, thereby reducing financial burden. Also work force rationalization thereby paving way for introducing new technology and good work practices becomes possible. *Preparing staff for life after VRS both on the social and economic front should be the priority of an org.

48. Chapter 3: Personnel planning, recruitment & induction RECRUITMENT *It estimates the available vacancies and takes suitable steps for selecting and appointing candidates against those vacancies. *Available vacancies are given wide publicity and suitable candidates are first attracted so that they show their keenness to apply. *Objective is to create a reservoir of eligible and interested candidates who would be keen to participate in the Selection process.

49. Chapter 3: Personnel planning, recruitment & induction RECRUITMENT *Is a POSITIVE function and the first point of contact that an org. makes with potential staff. *Per Edwin Flippo: It is the process of searching for prospective staff and stimulating them to apply for jobs in the org. *Vacancies are created due to transfers, promotions, retirement, termination, permanent disability, attrition e.t.c. OR on account of business growth/expansion/diversification.

50. Chapter 3: Personnel planning, recruitment & induction SELECTION *Is the process of selecting the best, hence a NEGATIVE function as it eliminates those who do not meet the profile. *Selection process thus needs to be scientific. *Unscientific recruitment & selection process leads to attrition, low productivity, material wastage, accidents, inefficiency. * Right man for the right job is the guiding principle. Differentiate between Recruitment & Selection process.