E BOOK ON HUMAN RESOURCE MANAGEMENT
(HRM)
ORGIN
OF HRM
Organizations
have many operational functions. HRD is one of the functions that is engaging
with the tasks of an organization. In early 70 s there was no division called
as Human Resource Department or
Division. By that time there was only a division called "Personnel" engaged with the labor
related in the organization. Personnel Management was introduced by the end of
19th century. At that time, this was focused on the welfare of labors in the
organizations. During the period of 1914-1939, many organizations has showed a
quick growth and quick changes in needs and wants of the operations. Therefore
the tasks done by women shifted to the men's, because of the complexity of
tasks. After Second World War, during the period 1945 - 1979, this has grown up
and changed to "Personnel Management".
CONCEPT
AND MEANING OF HUMAN RESOURCE MANAGEMENT (HRM)
Human resource management may be
defined as a process in which human resources are recruited and mobilized in
such a way that it helps in achieving the objective of the organization. HRM is
concerned with the people dimension in management under which the consideration
is given towards recruitment and selection, development, motivation and maintenance
of human resources in an organization. Therefore, human resource management is
an art of managing and mobilizing people in the organization Features Of
Human Resource Management
• Human
Resource Management Is A Management Of An Individual
• Human
Resource Management Is A Continuous Process
• Human
Resource Management Is A Dynamic Function
Human Resource
Management Is a Universal Function Human Resource
Management Is A Strategic Approach.
• Human
Resource Management Is Future-oriented
Components Or Elements Of Human Resources
Management
Human resource management is a process which involves
around four basic functions- acquisition, development, motivation and
maintenance of human resources. These basic elements are the key steps for
achieving organizational goals.
1.
Acquisition
Acquisition function is concerned with recruitment and
selection of manpower requirement for an organization.
2.
Development
It is concerned with imparting knowledge and skill to
perform the task properly.
3.
Motivation
Motivation includes job specification, performance
evaluation, reward and punishment, work performance, compensation management,
discipline and so on.
4. Maintenance
It is concerned
with the process of retaining the employees in the organization. This requires
that the organization should provide additional facilities, safe working
conditions, friendly work environment, and satisfactory labour relations.
Importance And Objectives Of Human Resource Management
• Effective
Utilization Of Resources
• Maintaining
good relations between employer and management.
• Development
Of Human Resources
• Respectful
Environment For Human Beings
• Goal
Harmony [ Individual goal & Organizational goals.
• Employee
Satisfaction
• Employee
Discipline And Moral
• Organizational
Productivity
Functions
And Roles Of Human
Resource Department/Manager
1. Managerial Functions Of Human
Resource Department
Managerial function is concerned
with the activities performed by top management in the organization.
Planning
Organizing
Directing/leading
Controlling
2.Operative Functions Of Human
Resource Department
Operative
function is concerned with day-to-day management of organizational activities
and human resources. Employment
Development
Compensation
Motivation
Maintenance
Personnel record
Industrial relation or employee
relation
3. Advisory Functions of Human
Resource Department
Human resource manager has
specialized knowledge, education and training in managing human relations.. So,
he/she can provide advice on matters relating to human resources of the
organization. The advice may be to the top management or departmental heads.
Concept
And Meaning Of Human Resource Planning
Human resource planning is one of
the crucial aspects of human resource management because it helps to ensure the
needed manpower for organizational goal.
Balancing demand and supply of
workers
Controlling cost of human
labour
Formulating policies on transfer,
succession, relocation of manpower * Ensuring right kind of people at the right
time and right place.
Characteristics
Of Human Resource Planning
Future Oriented
Continuous Process.
Optimum Utilization Of Human
Resources
Right Kinds And Numbers
Determination Of Demand And
Supply.
Human Resource Planning
Approaches
Quantitative Approach
It is also known as top down
approach of HR planning under which top level make and efforts to prepare the
draft of HR planning. It is a managementdriven approach. The focus of this
approach is to forecast human resource surplus and shortages in an
organization. In this approach major role is played by top management.
Qualitative Approach
This approach is also known as
bottom up approach of HR planning under which the subordinates make an effort
to prepare the draft of HR planning. Hence, it is also called
sub-ordinate-driven approach. It is concerned with matching organizational
needs with employee needs. In this approach, major role is played by lower
level employees.
Mixed Approach
This is called mixed approach
because it combines both top-down and bottom-up approaches of HR planning. In
fact, the effort is made by employees and the management equally. There is a
equal participation of each level of employees of the organization.
Concept
And Meaning Of Job Design
Job design is a process through
which job related data are revealed and the contents as well as methods of
performing different tasks are specified. It plays a key role in bringing
organizational productivity and employee motivation at work. Job design is a
process by which required and job-related information is gathered to determine
different tasks to be included in the job.
Methods Of Job Design
1. Classical Approach
Under this approach, the job is designed in the basis of organizational
requirements. Its purpose is to simplify the tasks and break them down into
small work units. The primary focus of this approach is planning, standardizing
and improving human effort at work in order to optimize organizational
productivity. 2. Socio-technical
Approach
This is another important
approach of job design in which social and technical aspects of the
organization are considered. Under it, jobs are designed according to
individual needs and organizational requirements. Furthermore, this approach
considers both job-related technical systems as well as accompanying social
forces of the job. The technical and social aspects of job are analyzed in
order to create jobs which have supportive relationship.
3. Behavioural Approach
Behavioural approach is concerned
with behavioural factors such as: autonomy, variety, task identity, task
significance, feedback mechanism etc. It means the above mentioned behavioural
factors are analyzed and considered while designing the jobs under this
approach.
Concept And Meaning Of Job Analysis
Job analysis collects and
analyses the information related to jobs and various aspects of jobs. Job
analysis is a process of gathering or collecting information relating to job
description and job satisfaction. It is the systematic process of gathering and
organizing the information relating to various aspects of job, which describes
the job contents and minimum job requirements in terms of skills, efforts,
responsibilities and working conditions.
Objectives Of Job Analysis
Job Description
Job description is a job profile
which describes the contents, environment and condition of jobs. It provides
information relating to activities and duties to be performed in a job. It
differentiate one job from another by introducing unique characteristics of
each job.
Job Specification
It includes the information relating to the
requirements of skills and abilities to perform a specific task. The job
specification statement identifies the knowledge, skills, abilities needed to
perform that task effectively. Job
Evaluation
Job analysis also provides required information which are
necessary for evaluating the worthiness of jobs. After the preparation of job
description and job specification statements, it assists for the evaluation of
actual performance against the predetermined standard.
Steps Involved In Job
Analysis Or Job Analysis Process
• Information
Collection through different methods such as interview, observation,
questionnaire,etc.
• Review
Background Information on the basis of collected data to assess the job
• Analysis
Of Job By Collecting Data
• Develop
Job Description
• Develop
Job Specification
Concept And Meaning Of Job Evaluation
Job evaluation is
concerned with a process of establishing value of different jobs. job
evaluation provides a basis for ranking or grading different jobs and
developing a pay structure for them. Job evaluation is the rating of job in an
organization which attempts to compare the relative intrinsic value of each job
and forms a job hierarchy.
Importance And Features Of Job Evaluation
• Job
evaluation helps to rate the job
• Job
evaluation helps to determine pay structure
• Job
evaluation helps in bringing harmonious relation between labour and
management
• Job
evaluation helps to minimize the cost of recruitment and selection
• Job
evaluation helps to determine the cost and rate of production
• Job
evaluation helps to determine the requirement of training and development Job evaluation helps to minimize cost
Concept And Meaning Of Job Specification
Job specification is a document
or statement which spells out the minimum levels of qualification, skills,
physical and other abilities, experience, judgement and attributes required to
perform the efficiently and effectively. Job specification is prepared along
with job description statement to explain the minimum acceptable human
qualities necessary to perform the task effectively. It specifies the physical,
psychological, personal, social and behavioural characteristics of each
job-holder.
Contents Of Job Specification Statement
Required Level of Education
Health And Physical Fitness
Appearance - outlook of an
employee
Mental And Other Abilities Experience.
Concept
And Meaning Of Recruitment
Recruitment process begins after
preparing HR planning and conducting job analysis .Recruitment is a process of
identifying and preparing potential candidates to fill the application form.
Recruitment may be defined as a process of bringing right people for right
position, at the right time to perform organizational activities in order to
achieve the objectives.
• Recruitment
process identifies different sources of manpower supply,
• Recruitment
assesses their validity,
• Recruitment
process choose the most suitable source and
• Recruitment
process invites applications from
prospective candidates.
Factors Affecting Recruitment
Size of the organization
Recruiting Policy- how many candidates from outside the
organization.
Image or goodwill of the
organization
Image of job
• Labour
market
• Unemployment
rate of particular area
Recruitment Process Or Steps Of Recruitment
Identifying The HR
Requirement
Assess the
requirement of human resource in an organization to carry out the
organizational mission, goals and objectives.
Identifying Possible Sources Of
HR Supply
The probable sources are
identified for generating a pool of qualified candidates.
Communicating The
Information
The potential candidates are
informed about vacancy announcement.
Receiving Application
Recruitment
process ends receiving the application forms dropped by different applicants
who are interested to apply for a job. It provides a pool of candidates for
selection.
Internal Sources And Methods Of
Recruitment
Internal sources refer to recruiting
employees from within the organization.
Promotions
It refers to
promoting or upgrading an employee who is already existed in the pay roll and
contributed for organizational performance.
Transfers
Under it, employees are
internally recruited through transfer from one work place to another.
Recalling of laid-off
employees.
Advantages Of Internal Recruitment
• Increases
employee Moral
• Increases
Labour Relation
• Enables
Better Selection
• Economy
• Better
Performance of employees.
• Employee
Development
• Less
Time
Disadvantages Of Internal Recruitment
• Limited
Choice
• Implementation
Of Traditional System - limits the scope of fresh talent in the
organization.
No Opportunity to fresh talents
Favourism – giving opportunity to
friends, & relatives.
Limited Internal Sources for the
supply of candidates.
Costly – Payment of higher salary and benefits to promoted
and transferred personals.
External recruitment is concerned
with generating a pool of qualified candidates from outside of the
organisation. 1. Direct
Recruitment
Direct recruitment refers to a
process of recruiting qualified candidates from external sources by placing a
notice of vacancy in an organization's notice board.
2. Casual
Callers
This method of recruitment is
concerned with using previously applied candidates as a source of
recruitment.
3. Advertising
Advertising is one of the most
common and popular methods of external recruitment under which the job vacancy
is announced through different print and electronic media
4. Employment
Agencies
Employment agencies run by
private, public or government sectors are regarded as an important source of
recruitment for unskilled, semi-skilled and skilled jobs.
5. Schools,
Colleges And Universities
It is also known as campus
recruitment. Under this method of external recruitment, educational
institutions such as schools, colleges and universities offer opportunities for
recruiting fresh candidates.
6. Labour
Contractors
Labour contractors are an
important source of recruitment under which workers are recruited through
contractors.
7. Recommendations
Under this method of external
recruitment, applicants are introduced by friends and relatives.
Advantages Of External Recruitment
1.
Wider Choice
2. Qualified
Personnel
3. Fresh
Talent
4.Competitive Spirit
5.Widens opportunity for
all.
Disadvantages Of External Recruitment
Too much Expensive
Dissatisfaction for existing
employees.
It is too Long Process
Adaptability Problem with the old employees.
• Competition
with the new employees.
• Reduce Moral of old workers
Concept And Meaning Of Selection
Selection is a process of choosing the
most qualified and suitable candidate to fill organizational vacancies. The
process of selection provides an employment opportunity to the persons who
possess the abilities and qualifications to perform a specific job. Selection
Process
• Application
Form Evaluation
• Screening
Application
• Selection
Tests
• Selection
Interview
• Reference
Check
• Medical
Check
• Final
Employment Decision
Concept And Meaning Of Selection Test
A selection test
is a systematic and standardized procedure of sampling human behaviour in order
to obtain qualified applicants for organizational activities. It is used to
assess the ability, aptitude and personality of prospective candidates.
Selection test is conducted in order to select a right person for the right job who will be capable
of performing organizational activities if hired. Types Of
Selection Tests
1. Intelligence Test
Intelligence test is used to
judge the mental ability of the candidates
2.Aptitude Test
It measures the probability of
performing the job in terms of how often and how well.
3. Personality Test
It is the
measurement of personal characteristics of the candidates. It is also known as
personality inventory. 4. Interest
Test
The personal interests such as
like and dislikes are identified by interest test.
5. Situational
Test
It evaluates whether a particular
candidate can perform the job in a given situation.
6. Honesty
Test
Honesty test
measures to what extent the information provided by the prospective candidates
is accurate.
Concept And Meaning Of Interview
An interview is
a face-to-face interaction between interviewer and interviewee. Interview is a
procedure designed to obtain information through the exchange of ideas and the
answering of queries. It attempts to secure maximum amount of information that
cannot be obtained from other methods
Steps Involved For Conducting Interview Or
Interview Process
Preparation
Under this an interview schedule or plan for the
interview is prepared.
Conducting
The prepared plans and actions are implemented which is
called conduction of the interview.
Evaluation
In
this the information received from the interviewee or candidate is
evaluated. Types Of Interview
A. Preliminary
Employment Interview – For Collecting preliminary data.
B. Final
Selection Interview – at the time of final selection.
C. Follow-up
Placement Interview - to provide the selected applicant with permanent duties
and responsibilities
D.Exit Interview-at the time of
leaving the organization.
2. Types Of Structured Interview - follows a standard list of questions or plan
F. Unstructured Interview - follows a list of questions which are not prepared
in advance.
The Stress Interview - to
evaluate the patience of an employee.
The Depth Interview - for higher
level or managerial jobs.
Board Interview - one candidate
is interviewed by a group of experts
Group Interview - , a group of
candidates are interviewed at a time
Concept,
Meaning And Nature Of Human Resource Development (HRD)
Human Resource Development (HRD) is a
process of developing skills, competencies, knowledge and attitudes of people
in an organization. The people become human resource only when they are
competent to perform organizational activities HRD imparts the required
knowledge and skill in them through effective arrangement of training and
development programs. Nature Of HRD
• HRD
is a continuous process HRD is a well integrated
system HRD provides better quality of life.
• HRD
focuses on all round development of human resources
Importance Of Human Resource Development (HRD)
1.HRD Develops Competent HR
2.HRD Creates Opportunity For
Career Development
3.Increase in Employ Commitment
4.Gives Job Satisfaction
5. Change
Planning & Management in an organisation.
6. Opportunities
For Training And Development
7. Performance
Improvement.
Concept And Meaning Of Training
Training can be defined as an on-going process of teaching
new employees the basis skills they need to perform their task effectively and
efficiently. Training is a short term skill development campaign intended to
impart the basic skills of work to middle and lower level employees. It focuses
on teaching operational skills to the technical persons. Objectives Of Training
• To
Increase Knowledge
• To
Increase New Skill
• To
Change The attitude Of Workers
• To
Improve Organizational Performance
• To
Make Workers For Efficient Use Of Resources
• To
Reduce Accidents
• To
Provide Better Opportunity For Workers
• To
Increase Productivity And Profit
Training Process Or Steps Involved For Conducting Training
• Identifying
Training Needs
• Establish
Specific Objectives
• Select
Appropriate Methods
• Implement
Programs
• Evaluate
Program
• Feedback
Techniques Or Methods Of Training
1. On-the-job
Training (OJT)
OJT is the most commonly used
method of employee training which is concerned with the philosophy,
"Learning by doing". OJT method is suitable for imparting operative
or technical skills to operative personnel.
Following methods may be used
under on-the-job training:
Apprenticeship training
Jon instruction training
Program instruction
Coaching and counselling
Internship
2. Off-the-job
Training
Off-the-job training is another
method of employee training which is concerned with the arrangements organized
away from organizational work station. It takes place outside the work station
and is mostly classroom base.
Class room lecturers
Films - Simulation exercise -
Program instruction.
Concept And Meaning Of Motivation
The term "Motivation" is derived
from the Latin word "Movire" meaning to move. Motivation thus, is to
move to do or not to do something.
Motivation is one of the essential aspects of HRM which is concerned
with the process of inducing, inspiring, organizing and stimulating employees
to do the better job in organization. Motivation activates people for better
job performance and high productivity. Motivation is a step-by-step process
that prompts an individual into action. The three basic elements of motivation
are: needs, drives and goals.
Techniques Or Methods Of Motivation
•
Participation in management decision making and
planning activities.
•
Behavioural Motivation - enhancing employee's
behaviour
•
Money And Financial Benefits
•
Forming
Work Group with the same interest.
•
Additional Profit Sharing Plans for
employees.
•
Skill Based Pay of higher level jobs and
salary.
•
Flexible Return to employees based on
performance.
•
Putting employees as Representation of
management. Importance Of Motivation
•
Effective Utilization Of Human Resources
•
Effective Utilization Of Other Resources
•
Willingness To do a particular Work
•
Acceptance For Changes in organisational
environment.
•
Enhance good Public Image
•
Co-operation Between Employees
•
Requires no Supervision
•
Brings Organizational Effectiveness
Concept And Meaning Of Job Satisfaction
Job satisfaction
can be defined as an employee's attitude towards the job. It is not same as
motivation, rather it is concerned with the attitude and internal state of an
individual regarding a particular job. It is a pleasurable feeling that results
from an employee's perception of achieving the desired level of need or
satisfaction
Effects Of Job Satisfaction
• Job
satisfaction increases efficiency and effectiveness at work.
• Job
satisfaction helps to reduce employee's absenteeism.
• Job
satisfaction promotes harmonious employee's relation.
• Job
satisfaction enhances organization's productivity and employees
satisfaction.
• Job
satisfaction helps to decrease employee's turnover.
• Job
satisfaction helps to improve the image of the organization. Factors
Affecting Job Satisfaction
• Employee's
Expectation About Job
• Reward
And Punishment
• Working
Condition
• Communication
in the organisation.
• Personal
Ability, Interest, Attitude .
• Work
Groups or work teams [ Co-workers ] Style of
Supervision.
Concept And Meaning Of Performance Appraisal
Performance appraisal is a process of
identifying, measuring and managing employee's performance in order to enhance
organizational efficiency and effectiveness. Performance appraisal
systematically evaluates the personality and performance of each employee so
that the productivity can be measured in terms of efficiency and effectiveness.
The primary purpose of performance appraisal is to facilitate the orderly
determination of an employee's worth in comparison to his/her fellow employees
and expected level of performance Importance of performance appraisal in an
organization:
• Performance
appraisal helps supervisors to assess the work performance of their
subordinates.
• Performance
appraisal helps to assess the training and development needs of employees.
• Performance
appraisal provides grounds for employees to correct their mistakes.
• Performance
appraisal provides reward for better performance.
• Performance
appraisal helps to improve the communication system of the organization
• Performance
appraisal evaluates whether human resource programs being implemented in the
organization have been effective.
• Performance
appraisal helps to prepare pay structure for each employee working in the
organization.
• Performance
appraisal helps to review the potentiality of employees so that their future
capability is anticipated.. Performance Appraisal Process
• Establishment
Of Performance Standards
• Communication
Of Standards To Employees
• Measure
Actual Performance
• Comparison
Of Actual Performance With Standards
• Discuss
Appraisal With The Employee
• Taking
of Corrective Action
Purposes And Uses Of Performance Appraisal
• Promotion
• Transfers
• Remuneration
Administration
• Training
And Development
• To
determine Supervision is required or not.
Concept And Meaning Of Reward Management
Reward means a thing
given to any one because of his
contribution to organization. Rewards and
incentives contribute to
strategy implementation by shaping
individual behavior in the organization. Reward is defined
as the total return given by an employer to an employee for rendering his/her
services towards the organizational objectives. This is the overall return from
the work. Types Of Rewards
• Intrinsic
Rewards And Extrinsic Rewards
• Intrinsic
rewards are the satisfactions that an individual obtains from the job
itself. Extrinsic rewards are the benefits provided externally in term
of money.
Financial
Rewards And Non-financial Rewards
Financial rewards means those
direct and indirect payments that enhance an employee's well being.. Direct
payment consists of salary, wages, commissions, incentives, bonus, allowances
etc. Indirect payment include pensions, medical insurance, paid leaves, paid
sick leaves, purchases, discounts etc.
Non-financial rewards are those
employee benefits that do not enhance an employee's financial wellbeing.
Preferred lunch hours, preferred office furnishing, parking spaces, impressive
job title, desired work assignments, , own secretary etc. are some of its
examples.
Performance Based Rewards And Membership Based
Rewards Performance based rewards are such benefits which are provided on the
basis of an employee's job performance ability.
Membership based rewards are
those rewards that are paid on the basis of being a member of an organization.
It means, the basis of allocating rewards is employee's organizational
membership.
Criteria For Distributing Rewards
• The
level of job performance ability of an individual.
• The
effort contributed by an individual towards organizational objectives
• Seniority
- those individuals who have served relatively for longer period
• Skills
Held, - individuals having special skills
• Job
Difficulty - the complexities of the
job
