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Human Resource Management Syllabus (MBA – 203). Punjab Technical University . MBA-203 Human Resource Management Max. Marks: 100 External Assessment: 60 Internal Assessment: 40 Unit-I
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Human Resource Management Syllabus (MBA – 203) Punjab Technical University
MBA-203 Human Resource Management Max. Marks: 100 External Assessment: 60 Internal Assessment: 40 Unit-I Human Resources Management: Meaning, Scope, Objective, Functions, Roles and Importance. Interaction with other functional areas. HRM &HRD a comparative analysis. Human Resource Management practices in India. Human Resource Planning: Meaning & Concept, Process and importance, Methods of Human Resources Planning, Importance of HRIS. Job Analysis, Job Description, Job Specification & Job Evaluation – Meaning, Concepts and Methods.
Human Resource Management Chapter 1
Introduction to HRM HRM is a process of bringing people and organizations together so that the goals of each are met. It is an art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. Its features are: 1. Pervasive Force 2. Action Oriented 3. Individually oriented 4. Future Oriented 5. Development Oriented 6. Integrated Mechanism 7. Continuous Function
Definition of HRM • HRM is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished. - Edwin B. Flippo
Strategic HRM Human Resource Management is a strategic and comprehensive approach to managing people, the workplace culture & environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals. Human Resource Management ("HRM") is a way of management that links people-related activities to the strategy of a business or organization. HRM is often referred to as "strategic HRM.
Scope of HRM • Personnel Aspect : Such as manpower planning, recruitment, selection, placement, transfer, promotion, T&D, Layoff & retrenchment, remuneration, incentives, productivity, etc. • Welfare aspect: It Deals with working conditions and amenities such as canteen, rest and lunch rooms, housing, transport, medical assistance, education, health & safety, recreation facilities etc. • Industrial Relation aspect: This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. • Development Aspect : Training & development of the employee, succession & career planning, identification of special talents etc.
Objectives of HRM • To help the organization reach its goal • To employ the skills and abilities of the workforce efficiently • To provide the organization with well-trained and well –motivated employee • To increase to the fullest the employee’s job satisfaction and self- actualization • To develop and maintain a quality of work life • To communicate HR policies to all employees • To be ethically and socially responsive to the needs of society
Functions of HRM • In order to achieve the above objectives, Human Resource Management undertakes the following activities: • Managerial Function • Planning • Organizing • Directing • Controlling Operative Functions • Procurement Function • Job Analysis • HRP • Recruitment • Selection & • Placements • Orientation Development Functions Performance Appraisal Training Management development Succession Planning Promotion & Transfer Motivation & Compensation Job design Work scheduling Motivation Job evaluation Performance appraisal Maintenance Health & Safety Employee Welfare Grievance handling Discipline Team Work Collective Bargaining
ROLES OF HUMAN RESOURCE MANAGEMENT Administrative Roles Operational Roles Strategic Roles • Acting as a policy maker • Administrative Expert • Advisor • Housekeeper • Counselor • Welfare officer • Recruiter • Trainer developer, • Motivator • Coordinator/linking pin • Mediator • Employee Champion • Change Agent • Strategic Partner What will be the basic difference between the Functions of HRM and Roles of HRM ? Lets Discuss………
Importance of HRM • At the enterprise level: • It helps in attracting and retaining the competent people in the organization. • It helps in training people for challenging roles, developing right attitudes towards the job and company. • Helps in promoting team spirit among employees and developing loyalty and commitment through appropriate reward scheme. • At Individual level: • It promotes team work and team spirit among employees. • It offers excellent growth opportunities to people who have the potential to rise. • It allows people to work with diligence and commitment.
Importance of HRM • At the society level: • Employment opportunities multiply • Companies that pay and treat people well always race ahead of others and deliver excellent results. • At national level: • Effective use of human resources helps in of natural, physical and financial resources in a better way. • People with right skills, proper attitudes and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard of living and better employment.
Interaction with other functional area 1.Production and Human Resources: Success or failure of a firm in the market depends on the strength of its products or services. More and more companies are trying to capture and retain knowledgeable employees through knowledge management initiatives. 2.Operations and Human Resources: People play a crucial role in operation process. Operation requires a lot of teamwork and empowerment. 3.Marketing and Human Resources: Marketing people form the interface between the company and its customers. So it is important to have a marketing team that is satisfied, developed and nurtured to meet the marketing objectives.
4. Strategic Management and Human Resources: Any new initiative that is taken in an organization, to be successfully implemented, has to be accepted and adopted by the employees. For example, reengineering may not be fruitful until top management succeeds in reengineering the mindsets of the employees. 5. Administration and Human Resources: Modern organizations are so structured as to make the best use of technology, finance, systems and most of its people. Many organizations whose prime focus is the customer have done away with vertical functional departments with tall hierarchies and replaced them with flat and horizontal cross-functional structures. This would reduce redundancy and enable free flow of ideas and information.
Comparative Analysis HRD 1.HRD is the development of the Resources of the Company . 2. HRD includes the areas of training and development, career development, and organization development. 3.HRD includes HR research and information systems, union/labor relations, employee assistance, compensation/benefits, selection and staffing, performance management systems, HR planning, and organization/job design. 4.HRD is complete only with a proper HRM in the company HRM 1.HRM is the management of Human resource in an organization. 2.Taking care of the basic requirements of the employees such as recruiting, staffing maintaining of employee relations and other employee related issues. 3.Execution of training on their scheduled timings. 4.HRM includes the implementation of various norms in regards to the Labour/union laws, Various policy making for compensation/benefits/ Manpower planning etc.
HR Practices • Safe, Healthy & Happy Workplace • Open Book Management Style • Performance-linked Bonuses • 360-Degree Performance Management Feedback System • Fair Evaluation System for Employees • Knowledge Sharing • Highlight Performers • Open House Discussions & Feedback Mechanism • Reward Ceremonies • Delight Employees with the Unexpected
Human Resource Planning Chapter 2
HR Planning Nature of HRP: HRP is a forward looking function. It assess human resource requirements in advance keeping the production schedules, markets fluctuations, demand forecasts into consideration. The focus of planning is always on getting right number of qualified people into the organization at the right time. In simple words, HRP is understood as the process of forecasting an organization’s future demand for, and supply of, the right type of people in the right number.
Objectives of HRP • Forecast personnel requirement • Cope with changes • Use existing manpower productively • Promote employees in a systematic manner
Importance of HRP • Reservoir of talent • Prepare people for future • Expand or contract • Cut costs • Succession planning
Process of HRP Estimating how many employees they require in future. Forecasting the Demand for HR Find out the size and quality of personnel available with in the organization to manage various positions Preparing Manpower Inventory Determining Manpower Gaps Existed no of manpower and their skills are compared with forecasted manpower need Formulating HR Plans Identified HR requirements needs to be translated into a concrete HR plan backed up by detailed policies, programmes and strategies.
I. Forecasting the demand for Human Resources 1. External Challenges • Economic developments • Political, Legal, social and technical changes • Competition 2. Organizational Decisions 3. Workforce factors 4. Forecasting techniques • Expert Forecast • Trend Analysis 5. Other methods • Workforce analysis • Work load analysis • Job Analysis
II. Preparing manpower inventory (Supply Forecasting): a) Internal Labour Supply : A profile of employees in term of age, sex, education, training, experience, job level, past performance and future potential should be kept ready for use whenever required. Few forecasting techniques are as follows • Staffing Table : Current Staffing level – Projected outflows of the year + Projected inflows this year = Firm’s internal supply for this time next year 2. Markov Analysis : Uses rates of promotions transfer and turnover estimate future availability in the work force. 3. Skill Inventory: Assessment of knowledge, skills abilities, experience etc. 4. Replacement Chart: It shows the profile of job holders department wise and offers a snap shot of who will replace whom if there is a job opening
II. Preparing manpower inventory (Supply Forecasting): b) External Labour Supply: When organizations grows rapidly, diversifies into newer area of operations or when it is not able to find the people internally to fill the vacancies. Important barometers of labour supply: • Net migration into and out of the area • Education Level of workforce • Demographic changes in population • Technical developments and shifts • Population mobility
III. Determining Manpower Gaps: • Number required at the beginning of the year • Changes to requirement forecast during the year • Total requirements at the end of the year (1+2) • Number available at the beginning of the year • Additions (transfers, promotions) • Separations (retirement, wastage, promotion out and other losses) • Total available at the end of year (4+5+6) • Deficit or surplus (3-7) • Losses of those recruited during the year • Additional numbers needed during the year (8+9)
IV Formulating HR Plans : Recruitment plan : Indicate type of people required i.e. right people Redeployment plan : Transferring or retraining existing employees Redundancy plan: i.e. retrenchment, layoff, golden handshake etc. Training plan: No of trainees of apprentice required Productivity plan: By reducing employee costs through work simplification studies, incentive & profit sharing schemes, job redesigned Retention plan: strategies to avoid wastage through compensation policies, changes in work requirement and improvement in working conditions Control points: To find out deficiencies, periodic updating of manpower inventory, in the light of changing circumstances
Human Resource Information System • It is a method by which an organization collects, analyses and reports information about people and jobs. HRIS basically a database system that offers important information about employees in a central and accessible location. • HRIS is a computerized system that assists in the processing of HRM information. It supplies up-to-date information about people and jobs in an organization at a reasonable cost. • HRIS is designed to monitor, control and influence movement of people from the time they join a firm till the time they decide to leave the firm.
Importance of HRIS • HRIS can process, store and retrieve enormous quantities of data in an economical way • The records can be updated quickly • It helps to enhance accuracy • It help to reduce fragmentation and duplication of data • The available information an be readily manipulated, merged and disaggregated in response to special and complex demands and presented promptly
Objectives of HRIS • To offer an adequate, comprehensive and on-going information system about people and jobs. • To supply up-to-date information at a reasonable cost. • To offer data security and personal privacy. Data security is a technical problem that can be dealt with in several ways, including passwords and elaborate codes. In the information age, personal privacy is both an ethical and moral issue.
Process of HRIS • HRIS can be set up through a four step process : • Identifying the needs of a firm • Organizing flow of information • Implementation the plan • Evaluating the whole exercise to find gaps • To rectify thing in time.
Job Analysis • It is a formal and detailed examination of jobs. It is a systematic investigation of the task, duties and responsibilities necessary to do a job. It identifies what people do in their jobs and what they require in order to do the job satisfactorily. The information about a job is usually collected through a structured questionnaire. • Tasks-it is a work activity carried on for specific purpose • Duties-larger work segment consisting several tasks • Responsibilities-are obligations to perform certain tasks and duties Job Tasks Job Analysis Job Duties Job Responsibilities
Job Analysis: A Basic Human Resource Management Tool • Human Resource Planning • Recruitment • Selection • Training and Development • Performance Appraisal • Compensation and Benefits • Safety and Health • Employee and Labor Relations • Legal Considerations • Job Analysis for Teams Tasks Responsibilities Duties Job Descriptions Job Analysis Job Specifications Knowledge Skills Abilities
Uses of Job Analysis • Human Resource Planning • Recruitment • Selection • Placement & Orientation • Training • Counseling • Employee Safety • Performance Appraisal • Job Design & redesign • Job Evaluation
Process of Job Analysis • Overall picture of various jobs in the organization is obtained through organization charts and workflow charts Organizational analysis Selection of representative positions to be analyzed • Not possible to analyze all jobs • Sample jobs are only analyzed • On the characteristics of the job, required behavior and personal qualifications needed to perform the job effectively. Collection of job analysis data • Describing the contents of the job in terms of functions, duties, responsibilities and operations etc. Preparation of job description • Job specification is a written statement of personal attributes required to carry out the job such as skills, training experience etc. Preparation of job specification
Methods of collecting job analysis data Job performance • Job analyst actually performs the job in question for getting first hand experience of factors such as physical hazards, social demands, emotional pressures and mental requirements. Useful for jobs that can be easily learnt Personal observation • The analyst observes the workers doing the job. • The tasks performed, the pace at which activities are done and working condition are observed • Certain precautions • Analyst must observe average working during the average conditions • Analyst should just OBSERVE without direct involvement • Sample should be proper
Methods of collecting job analysis data Critical incidents • Job holders are asked to describe several incidents based on the past experience • Incidents are analyzed and classified • Job requirements become clear once the analyst draws the line between effective and ineffective behaviors Interview • Includes asking questions from both job holders and supervisors in individual or group setting • Standard format of questionnaire is preferred Panel of experts • Interaction with senior job supervisors and superiors
Methods of collecting job analysis data Diary method • Job holders are asked to keep diaries of their daily activities and record the time spent activity. Questionnaire method: Types of Questionnaires • Position analysis questionnaire (PAQ):- Use to collect specific information about job tasks & workers traits. • Mgt. position description questionnaire(MPDQ)- for analyzing managerial jobs • Functional job analysis (FJA) :- Examine the fundamental components of data, people and things.
Job Description • It is a written statement of what the job holder does, how it is done , under what conditions it is done and why it is done • It describes what the job is all about, throwing light on the job content, environment and conditions of employment. • It is descriptive in nature and defines the purpose and scope of a job • Its main aim is to differentiate the job from other jobs and state its outer limits
Contents of Job Description • Job title:- Tells about the job title, Code number and the department where its is done • Job summary:- A brief write-up about what the job is all about • Job activities:- description of tasks done, facilities used, extent of supervisory help • Working conditions:- the physical environment of job in terms of heat, light, noise and other hazards • Social environment:- size of work group and interpersonal interactions required
Problems with Job Descriptions • No updation is done as the jobs change • Difficult to cover all aspects of the job in clear and precise document • They can limit the scope of activities of the job holder reducing organization flexibility
Guidelines for writing job description • Should indicate the nature and scope of the job • Should be brief factual and precise. • Should be specific to work ,complexity, degree of skills required, extent to which the problems are standardized. • Extent of supervision should be clearly stated. • Should indicate reporting relationships.
Mode of writing • Job analyst has to write the JD after proper consultations with the worker and the supervisor. • Analyst gets the form filled by the immediate supervisor of the employee • Analyst must observe the actual work done by the employee and complete the JD form • Effort must be made to involve the employee and supervisor while finalizing the JD • Keep the JD updated by keeping track of changing conditions.
Job specification • It summarizes the human characteristics needed for satisfactory job completion. • It is a written statement of the important attributes of a person in terms of education, experience, skills, knowledge and abilities (KSA) to perform a particular job. • For each job description it is desirable to have a job specification • It is useful in selection process
Classification of personal attributes • Essential attributes-skills ability and knowledge that a person must possess • Desirable attributes –qualification a person ought to possess. • Contra indicators-attributes detrimental to job performance.
How is JS done? • It can be developed by talking with the current job holders • Opinions of the supervisors can also be used • Checking similar job in other organizations can also help