FUNCTIONS OF HRM

These are carried out by HR managers to fulfil the goals and objectives of the organisation. They are classified into two broad categories, managerial and operative functions.

MANAGERIAL FUNCTIONS:

1. Planning:It involves the process of pre-determining the personnel programmes that are

necessary to attain the organisational goals. Accurate forecasting is vital to the success of any plan. The steps involved in the planning are:

Establishing goals and objectives to be achieved Developing rules and procedures Determining plans and forecasting techniques

2. Organising:It’s a process through which the firm establishes its structure and determines the

authority, responsibility and accountability of each member in relation to the job. Organising involves:

Giving each member a specific task Establishing departments and divisions Delegating authority to the members

FUNCTIONS OF HRM

Managerial functions:

Planning Organising Staffing Directing Controlling

Operative functions:

Induction and Orientation Placement Selection Recruitment Human Resources Planning Job Analysis Employment

Establishing channel of authority and communication Creating a system to coordinate the works of the members

3. Staffing:This deals with the creation and maintenance of human resources through

employment, compensation, benefits, training and development and industrial relations measures. The steps are:

Determining the type of people to be hired Recruiting prospective employees and selecting the best ones from them Compensating the employees Training and developing the employees Setting performance standards and evaluating the employees performance Counselling the employees

4. Directing:It’s the sum of several activities like communication, leadership and motivation.

Directing as a function, aims at securing willing cooperation from the individuals and groups to achieve the predetermined goals. It includes the following activities:

Getting works done through subordinates Motivating subordinates to strive for better performance Maintaining the group morale

5. Controlling :Is the process of checking the efficiency of the individuals and the groups in fulfilling the plans and goals through follow-up measures? The processes involved are:

Establishment of standard performance Measurement of actual performance Comparison of actual performance with the standard one to find the deviation Initiation of corrective action

OPERATIVE FUNCTION

The operative functions of personnel management are related to specific activities of personnel management viz., employment, development, compensation and relations. All these functions are interacted by managerial functions. Further these functions are to be performed in conjunction with management functions.

1. Employment

It is the first operative function of HRM. Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility.

2. Job Analysis:

It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes:

Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials.

Preparation of job description, job specification, job requirements and employee specification which help in identifying the nature, levels and quantum of human resources.

Providing the guides, plans and basis for job design and for all operative functions of HRM.

3. Human Resources Planning:

It is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. It involves

Estimation of present and future requirement and supply of human resources basing on objectives and long range plans of the organization.

Calculation of net human resources requirement based on present inventory of human resources.

Taking steps to mould, change, and develop the strength of existing employees in the organization so as to meet the future human resources requirements.

Preparation of action programs to get the rest of human resources from outside the organization and to develop the human resources of existing employees.

4. Recruitment:

It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It deals with:

Identification of existing sources of applicants and developing them.

Creation / Identification of new sources of applicants. Stimulating the candidates to apply for jobs in the organization. Striking a balance between internal and external sources.

5. Selection:

It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an applicant with a view to appraising his / her suitability to a job appraising.

This function includes:

Framing and developing application blanks. Creating and developing valid and reliable testing techniques. Formulating interviewing techniques. Checking of references. Setting up medical examination policy and procedure. Line manager’s decision. Sending letters of appointment and rejection. Employing the selected candidates who report for duty.

6. Placement:

It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employees specifications with job requirements. This function includes:

Counselling Conducting follow-up study, appraising employee performance in order to determine

employee’s adjustment with the job. Correcting misplacements, if any.

7. Induction and Orientation:

Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes and people etc., of the organization.

Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc.

Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates.

Mould the employee attitude by orienting him to the new working and social environment.

SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT

Role of human resource manager in an organization

The human resource or personnel manager controlling to manage his department. He has also to perform certain operative functions of recruitment, selection, training, placement etc, which the other line managers may entrust to him. He is basically a manager whatever may be the nature of his operative functions. Just as finance assesses cost, marketing emphasizes customers, personnel is people-centred. Some of the important roles of human resources manager in an organization are:-performs managerial as well as operative functions. Since he is a manager, he performs the basic functions of management like planning, organizing, directing and

a) Policy Formulation:- Policy formulation is one of the important tasks of the human resource manager. It is with a view to overcome problems of recurring nature, or to prevent anticipated problems in the area of human resource management that policies are framed. The human resource manager helps the top management in the formulation of policies on wage and salary administration, transfer, appraisal, welfare activities, personnel records and statistics, working environment etc.

b) Advisory Role:- The advisory role of the human resource manager is of crucial importance. Line managers are generally confronted with a variety of problems in their day to day operations. These problems may include grievance over distribution of overtime work, annual increase in pay, transfer, promotion, disciplinary action and so on. In all such matters, the personnel manager can offer useful advice because he is familiar with personnel policies and practices, labour agreements, labour laws, etc.

c) Linking Pin Role:- The human resource manager attempts to achieve and maintain good industrial relations in the organization. He is responsible for setting up various committees on

discipline, labour welfare, safety, grievance etc. He helps in laying down the grievance procedure to redress the grievances of employees. He also conveys the views of the trade union leaders to the higher management. Thus he acts as a linking pin between the management and the workers.

d) Representative Role:- The human resource manager generally acts as a spokesman of the top management or representative of the company and communicates management policies and decisions that affect people in the organization. It is because he has better understanding and overall picture of the company’s operation. Sometimes, he also acts as worker’s representative to put forward their problems to management, particularly in non-unionized organizations.

e) Decision-making Role:- The human resource manager also plays an effective role in decision-making on issues related to human resources. He formulates and designs objectives, policies and programs of human resource management.

f) Mediator Role:- The human resource manager often acts as a mediator in the event of conflict between employees, or groups of employees, superior and sub-ordinate, and even between management and employees. Thus he attempts to maintain industrial peace and harmony in the organization.

g) Leadership Role:- The human resource manager provides leadership and guidance to the workers and their groups. He ensures effective communication in the organization and influences the workers for extending their co-operation in extending the organizational objectives.

h) Welfare Role:- The human resource manager acts as a welfare officer in the organization. As welfare officer, he is concerned with provision of canteen, crèches, transport, hospital and other welfare services for the benefit of workers and their family members.

i) Research Role:- The human resource manager maintains the records of the employees working in the enterprise. On the basis of records, he undertakes research in various personnel areas such as absenteeism, labour turnover, alcoholism etc and suggests suitable measures for improvement to the top management.

EVOULUTION OF HRM

Evolution and development of HRM consist of 11 stages beginning prior to the industrial revolutions in UK and continuing up to the present.

STAGE I: PRE-INDUSTRIAL ERA (1400 AD-1700 AD)

Pre-industrial period is characterized by the absence of any formal HRM with in organizations .But there were some dramatic changes which ignited the modern HRM. They are

Cessation of feudalism, release of labour from land and the beginning of the free employment relationship.

Shift from subsistence agriculture to a commercial mixed economy, a diffusion of economic control and distribution of wealth and income.

Spectacular growth of town with the middle class and villages along with the middle class that included skilled craftsmen and merchants.

Development of putting out or domestic system.

STAGE II: INDUSTRIAL REVOLUTION AND THE FACTORY SYSTEM

Industrialization replaced the human effort and skill by machines. Factory system which was developed due to the industrial revolution gave birth to rationalization of work and division of work. Necessity of supervising was also introduced.

The personal practices become autocratic, based upon a commodity concept of labour, there was a total neglect of the human factor the focus was upon materials, markets and production. The factory owner delegated the responsibility to the foreman which eventually resulted in drive system of management that was characterized by the use of force and fear.

Stage III: Emergence of the Modern Corporation and Managerial Capitalism

The period of 1860 to 1900’s witnessed a growth in corporate form of organization, the separation of the operation from the ownership of firms and the employment of salaried managers. The modern enterprise along with managerial capitalism emerged.

In spite of organizational growth and technological advances there was no improvement in HRM. The traditional factory management practices were responsible for low productivity and wages, high rates of turnover and increase in labour and management conflicts.

Stage IV: Scientific Management, Welfare Work and Industrial Psychology

Scientific management (SM) and Welfare Work were responses by management to worker related problems in the factory. SM represented an effort to deal with labour and management inefficiencies through reorganization of production methods and rationalization of work. Welfare work represented the efforts to deal with labour problems by improving worker conditions. Industrial psychology represented the application of psychological principles towards increasing the efficiency of industrial workers.

The last quarter of the 19th century saw engineers introducing dramatic changes that rationalized factory production and industrial management system. They introduced personnel practices to rationalize employment procedures.

FW Taylor’s Scientific Management

FW Taylor was the father of scientific management. He was concerned with worker inefficiency and the need for managers to gain the co-operative effort of the employees. Time and Motion studies became the heart of SM and represented a way of accurately determining the amount of work a man could do.

Taylor sums up SM as:

1. Science, not rule of thumb.2. Harmony not discord.3. Cooperation not individualism and4. Maximum output in place of restricted output.

Taylor proposed SM as partial solution to labour problem because it would increase production at lower cost to employers and result in higher wages for workers as they would compensated according to their output.

Contributions of SM to HRM

1. Taylor’s proposal for functional management called attention to the need for a separate human resource function in organizations.

2. Taylor demonstrated the feasibility of job analysis as a basis for employee selection, training, job evaluation and compensation.

3. Taylor demonstrated that work and jobs can be systematically studied, analyzed, redesigned or improved upon.

4. Taylor stressed the importance of proper selection procedures and training methods.5. Taylor advanced the idea of differential pay on the basis of productivity.6. Taylor highlighted the need for workers to be won over and led by management.

Welfare Work:

Welfare Work like SM was an attempt at a more systematic approach to management. It has been defined as anything done for the comfort and improvement, intellectual or social, of the employees, over and above the wages paid, which is not a necessity of the industry, nor required by the law. The primary purpose was:

1. The averting of industrial conflict and unionization.2. The promotion of good management and worker relations.3. The efforts to increase worker productivity and reduce turnover.

Industrial Psychology:

While SM focused on the job, Industrial Psychology focused on the worker and decreasing the psychological and physiological costs of work. Industrial Psychology began in 1931 when Hugo Munsterberg published Psychology and Industrial efficiency.

Stage V: World War 1 and the emergence of HRM as a profession (1911-1914).

World War 1 provided the apt conditions that resulted in the growth of business around the world, and the emergence of HRM as a profession. The war brought attention to the need for scientific personnel administration and the activities promoting the welfare and efficiency of workers. When the war ended personnel management evolved as a primary function along with financial, production and sales departments.

Effect of war on HRM.

A large number of firms were established in us and the UK during 1951 and 1920 firms adopted functional management which removed the hiring and firing functions from the foreman and placed the responsibility to the employment or the personnel department, in

addition the was an integration of HRM activities and welfare. The year 1981 recorded the birth of personnel management as a profession.

Stage VI: the human relations movement

From the early times HRM focused on human relations. Human relations were associated with Elton mayo. Human relations were responsible for the addition of the human factor. Welfare work into industrial psychology in personnel profession it mainly focused on increasing productivity by discovering the needs of the workers, the way of managing people.

Hawthorne experiments actually showed that working conditions affected the productivity, which led to the beginning of human relations movement in 1945 and continued till 1960, it was later on was adapted as a new area of organizational behaviour. Human relations made the manager responsible for integrating the employees into work situation in a way that would motivate them to work together co-operatively and productively.

Differences between scientific management and human relations management

Scientific management focused on the requirements of the job and the economics rewards as motivational elements whereas human relations revealed the importance of non economic and social rewards as incentives. Sm helped to realize that workers have physical and psychological needs; human relations contributed the understanding that workers have social needs.

Stage V11: the golden age of industrial relations and the personnel management maintenance function, 1935-1970.

HRM function which evolved during the world war had a set back during the great depression. After depression there was an increased need of human relations management as a result of growth in formations of unions. The provision of several labour acts led to the formation of unions which resulted in the evolution of human relation functions. The general focus of HRM functions was on IR as the primary need was to operate in the collective bargaining framework of labour relations. Government involvement in the economy during the war also led to the evolution of personnel department in every company.

Stage VIII: Quality of Work life Era.

During the mid 1960s and throughout 1970s there was a rise of viewpoint that employees should be considered as assets rather than liabilities. Efforts were taken to satisfy interest of both employer and employee through new policies and strategies that maximised overall productivity of the organisation.

Practises and programmes implemented.

The efforts of this era were driven by not only by a realisation that investment in human resource were sound and should show a considerable return but also by the changing nature of the workforce. As the work force is becoming more educated their attitude, value and belief about the role of the work and organisations were changing.

In many ways the quality of work life era was also promoted by a series of social security legislation passed during this period. These acts collectively exercised a substantial influence on both psychological and physical quality of work life in organisation.

Stage IX: The Emergence of Contemporary HRM Function.

Since the 1970s, the PM side of the HRM function has experienced an evolution from being a maintenance function, secondary to the IR function, to representing one of critical importance to the effectiveness of the organisation.

Changes in HRM Policies

Firstly there has been a trend in management to make strategic choices that has represented aggressive union avoidance policies and have resulted in a decrease in union representation of their workers.

Secondly much more reliance has been placed on the employer employee relations and dealing with employees directly as individuals rather than on management-union relations and dealing with employees indirectly and collectively.

Thirdly HRM aims at creating a sense of mutuality among the workers and management so that the workers are considered as assets to the organisations to attain competitive advantage.

Fourthly the successful application of Total Quality management (TQM) principles by Japanese companies contributed to the recognition that employees a virtual organisational resource.

Changes in HRM functions

Following were the changed functions-

Firstly PM implies human resource as expense whereas HRM indicates emphasis on human resource to be managed.

Secondly PM signifies human resource administrative sub functions, maintenance activities that are reactive, passive and secondary to other significant business function. On the other hand, HRM indicates a proactive approach, an integration of human resources sub functions, expansion of the function, position and strategic importance of HRM within the organisation.

STAGE X: STRATEGIC FOCUS ERA

By 1970 there was a complete change in the way people perceived HR function. Meyer referred HR directors as the new corporate heroes .There occurred many chief executive officers who rose to top ranks through HR function. In the M.B.A syllabus business strategy was merged with Human Resource Management which led to the emergence of Strategic Human Resource Management. Strategic HRM had brought HR function into closer contact with the top executives of the firm and has helped to graft a role for HRM as a strategic business partner.

Several factors have contributed to the strategic role of HRM. These can be analyzed as follows:

i. Organizations became productivity conscious due to the need to operate in a global economy and the realization that competitive advantage is due to managing human resources.

ii. Widespread downsizing, restructuring and redesigning of organizations. As a result old hierarchical type structure with tight controls has given way to flatter structures and larger spans of control.

iii. Need for sound human resources strategy to effectively manage the highly diverse workforce of the future.

STAGE XI: THE HRM FUNCTIONS TODAY

Today’s HRM functions are different from that of the past in many ways. Firstly today’s HRM is characterised by the emphasis on the integration of traditional PM activities as well as HRM’s involvement in overall organisational planning and change. Secondly HRM today is characterized as a partner in organisational change, creator of organisational culture and facilitator of organisational commitment. Third, HRM is characterised by the decentralisation of many of the traditional HRM activities from personnel specialists to senior line management. Fourth current HRM is characterized by a focus on individual employees rather than on collective management-trade union relations. Furthermore HRM has become a partner with other management functions and has become increasingly responsible to cultivate the requisite culture that is conducive of required behaviours.

Role of Human Resource in Industry and Society:

Role of human resource or personnel manager in the industry and society arises from the fact that personnel are indispensible resources for carrying out any productive operation. To quote Oliver Sheldon, “No industry can render efficient so long as the basic fact remains unrecognized that it is principally human. It is not a mass of machines and technical processes but a body of men. An industrial society is conspicuous by complex nature of forces which influence the behaviour of individuals and groups within and outside their workplace. The focus of personnel management for a long has been management of industrial relations including employer’s relationship with individual employee and the relationship between management and unorganized unions. The term ‘industrial relations’ and ‘labour relations’ were popularly used with reference to personnel function due to rise in collective bargaining and other related functions.

The role of personnel management in industry is underlined by the complex and dynamic nature of environment under which the modern large-scale industries functions. The impact of technology on organization structure, politicization of workers’ union, and the growing consciousness of industrial employees about their rights and privileges, have made the role of personnel management increasingly more important in industrial undertaking.

What is Strategic Management?What is Strategic Management?

Strategic management is a process, an approach to addressing the competitive challenges an organisation faces.

Strategic Human resource management can be thought of as the pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goals.

Linkage between HRM and Strategic Management Process

The strategic choice really consists of answering questions about competition that is how the firm will compete to achieve its mission and goals. These decisions consist of addressing the issues of where to compete, how to compete and with what to compete. Often the ‘with what will we compete’ questions present ideal avenues for HRM to influence the strategic management process. This might be through either limiting strategic options or forcing thoughtfulness among the executive team regarding how and at what cost the firm might gain or develop the human resource necessary for such a strategy to be successful. A firm’s strategic management decision making process usually takes place at its top levels, with a strategic planning group consisting of the chief executive officer, the chief financial officer, the president and various vice presidents. However each component of the process involves people related business issues. Therefore HRM function needs to be involved in each of those components.

Four levels of integration seem to exist between the HRM function and the strategic management function:

1.1. Administrative Linkage:Administrative Linkage:

In administrative linkage, the HRM functions attention is focused on day to day activities. The HRM executive has no time or opportunity to take a strategic outlook toward HRM issues. The company’s strategic business planning function exists without any input from the HRM department. Thus in this level of integration the HRM department is completely divorced from any component of the strategic management process in both strategy formulation and strategy implementation. The department simply engages in administrative work unrelated to the company’s core business needs.

2.2. One Way Linkage:One Way Linkage:

In one way linkage the firm’s strategic business planning function develops the strategic plan and then informs the HRM function of the plan. Many believe this level of integration constitutes strategic HRM- that is the role of the HRM function is to design systems and programs that implement the strategic plan. This level of integration often leads to strategic plans that the company cannot successfully implement.

3.3. Two Way LinkageTwo Way Linkage

Two way linkages allow for consideration of human resources issues during the strategy formulation process. This integration occurs in three sequential steps. First the strategic

planning team informs the HRM function of the various strategies the company is considering. Then HRM executives analyze the human resources implications of the various strategies, presenting the results of this analysis to the strategic planning team. Finally, after the strategic decision has been made, the strategic plan is passed on to the HRM executive who develops programs to implement it. The strategic planning function and the HRM function are interdependent in two way linkage.

4.4. Integrative LinkageIntegrative Linkage

Integrative linkage is dynamic and multifaceted, based on continuing rather than sequential interaction. In most cases the HRM executive is an integral member of the senior management team. Rather than an iterative process of information exchange companies with integrative linkage have their HRM functions built right into the strategy formulation and implementation process.

Thus in strategic HRM, the HRM function is involved in both strategy formulation and strategy implementation. The HRM executive gives strategic planners information about the company’s human resource capabilities and these capabilities are usually a direct function of the HRM practices. This information about human resource capabilities helps top managers choose the best strategy because they can consider how well each strategic alternative would be implemented. Once the strategic choice has been determined, the role of HRM changes to the development and alignment of HRM practices that will give the company employees having the necessary skills to implement the strategy. In addition HRM practices must be designed to elicit actions from employees in the company.

ROLE OF HR IN STRATEGIC PLANNING

1. Selection and Staffing: When goals are set, it’s people who work to fulfill those goals. Having the right people in the right places is vital, and if new hiring is to occur, finding the right people is equally vital. HR folks are usually on top of the employee market, and decisions will be more effective if HR knows firsthand the clear direction of the company. They can immediately speak to any potential conflicts between what a company wants and what is truly realistic in HR terms, thus helping ensure the plans are workable right from the start.

2. Organizational Development: Strategic planning often encompasses change in workplace systems or processes. Although individual departments are likely aware of the status of their own departments, HR folks are often aware of group initiatives and changes that has occurred company-wide. Accordingly, they will be able to speak to OD issues with unique insights on how changes may impact systems and processes already in place.

3. Training & Development: Research shows that only 20% of the workforce has the skills that will be required ten years from now. That means training and development are guaranteed to be needed at some point of the strategic growth process. Again, HRD folks will be able to speak instantly to any issues, and possibly provide input that could help a company achieve its goals faster.

Competitive Challenges

1. Globalisation2. Managing Changes3. Cultural Diversity4. Work and Family Issues5. Developing Human Capital6. Part time, Temporary Employees7. Cost Containment8. Merger and Takeovers9. Downsizing and Layoffs10.Quality and Teamwork11.Advances in Technology12.Continuous Quality Improvement

As the area of human resource management becomes more strategic and more global it is becoming more important and critical to the organization. While not all companies are recognizing this yet, those that are most effective and most admired, seem to be the ones that are. As a consequence they are doing many things that make their management of human resources as effective as possible. In doing so doing, several things are being observed:

1) The roles that the HR department and its HR professionals have traditionally played are changing substantially;

2) The competencies required of the HR professionals to play these new roles are also changing rapidly with dramatic implications for the current HR staff and leaders;

3) The HR professionals are working more closely, in partnership, with line managers, employees, suppliers and representatives of labour unions, strategic partners and members of community organizations in order to be more effective in managing the firm’s human resources; and finally,

4) The structure of the HR department and the HR function are being reshaped in order to better serve the various stakeholders of HR in order to make the management of people and the organization more effective.

Key HR Challengesorganisation that meet these challenges are likely to outperform those that do not

Environmental External forces that affect the organisation's performance but are beyond the control of management

Challenges Rapid Change Workforce Diversity Globalisation

Legislation Evolving work and Family Role

Organizational Internal forces that affect the organisation's performance but are within the control of management

Challenges Organisational Restructuring

Organizational Culture Technology

Unions Quality

Individual Human Resource issues that address the decisions most pertinent to individual employees

Challenges Matching People and Organisation

Ethics and Social Responsibility

Productivity

Brain Drain Changing Demographics

Diversity as HR Challenge

Responsibilities and Roles of HRM Departments

The Human Resources (personnel) department has staff relationship with other department / managers in the total organization. The personnel department is responsible for advising management from Managing Director to the lowest line supervisor on all area relating to the personnel management and industrial relations. Personnel department also performs various functions of employment, training and development. It represents management in many of the relationships that affect the organization as a whole. It is also responsible for representing various workers problems to management.

Personnel department generally acts in an advisory capacity; it provides information, offers suggestions and is not responsible for the end results. The personnel managers must exercise control very tactfully in order to win the confidence and cooperation of all line managers. He has to persuade

Sexual/affection orientation

RaceAge

Physical abilities/qualitie

Ethnicity Gender

Work Background

Education

Parental Status

Geographic Location

Religious Beliefs

Military Experience

Marital Status

Income

the line managers to work with staff specialists and not against them. The authority of personnel manager should derive from concrete personnel policies and programs and from the advantage and result of accepted specialized knowledge.There are many different roles and responsibilities that can be performed by the HR department depending on the size of the organization, the demographic profile of the employees' roster, the industry where the business belongs, values and corporate culture prevalent within, and the priorities of top management, and in the case of a small business, the priorities of its owner .

The HR in small organizations may take full responsibility for all human resource activities. Whereas in others, it may share the roles and responsibilities of other departments such as the finance or administration. While in others, it acts as an internal consultant and makes all the HR-related decisions in support of strategic business directions.

In the recent years it is noticeable that more and more organizations are looking at HR professionals as their strategic partners in quality management, corporate planning, business operations, and business profitability. HR management now takes the forefront in strategic planning and expansions in ways that enhance the image and value of the organization.

The table below highlights the specific KRA (Key Result Areas) that any HRM department should deliver results to; and clarifies its real roles and responsibilities:

Employment and Recruiting:

Interviewing, recruiting, testing, temporary labour coordination.

Training and Development

Orientation, performance management, skills training, productivity enhancement.

Compensation

Wage and salary administration, job descriptions, executive compensation, incentive pay, job evaluation.

Benefits

Insurance, vacation leave administration, retirement plans, profit sharing, stock plans.

Employee Services

Employee assistance programs, relocation services, outplacement services.

Employee and Community Relations

Attitude surveys, labour relations, publications, labour law compliance, discipline

Personnel Records

Information system records.

Health and Safety

Safety inspection, drug testing, health, wellness.

Strategic Planning

International human resources, forecasting, planning, mergers and acquisitions.

HR planning and Job Analysis in a nutshell

HR Planning & Job Analysis

Companies undertake HR planning to place the right numbers of candidates in the departments most suitable to their skills at the most appropriate times. The company's HR department and the top management work in close accordance to carry out this planning exercise.

1. Significance

o HR planning is essential. Understaffed organizations cannot reap the benefits of optimal productivity, while overstaffed organizations spend capital on salaries for unnecessary positions.

Features

o Through HR planning, the organization takes stock of the employees placed in all its strategic departments. Management then transfers employees from overstaffed departments to understaffed ones. The organization also evaluates and analyzes whether employees work in the departments appropriate for their skills and knowledge.

Time Frame

o A company conducts HR planning once annually, as well as when it plans an expansion. During an expansion, top management projects how many employees the company needs and adjusts the budget for their salaries.

HUMAN RESOURCE PLANNING Human resource planning is a process of identifying and then matching the human resource requirements and availability in order to determine the future HR activities of the organization on the basis of the overall organizational objective.

Significance of human resource planning

Assessing future recruitment requirements.

Optimum utilization of available human resources.

Developing training and retraining programmes.

Formulating compensation policies.

Determining management development programmes.

Gaining competitive advantage.

Shaping future plans and strategies.

Factors affecting human resource planning

Strategy of the organization.

Culture of the organization.

Competitive and financial environment.

Current organizational situation.

Quantity and skill levels of human resources required.

International strategies

THE HRP PROCESS

Step-1: Considering organizational objectives and strategies

The organizational strategy along with the mission and vision statement clearly expresses the future intent of the organization.

HR plans are generally guided by the overall organizational objectives and strategies.

Step-2: Assessment of external environment

Organizations undertake environmental scanning to identify the changes in the external environment.

Purpose of environmental scanning is to examine the business environment, to seize the opportunities and tackle the threats.

Step-3: Preparation of in-house skills and competency inventory

A compilation of skills, competencies and qualifications of the entire workforce is described as a skill inventory.

Skill inventory can be prepared through

Skills audit (assessing the current skill levels of a firm). It involves assessing the performance of the employees from the task perspective.

Core competency analysis (assessing the extra-ordinary abilities of the firm). These abilities may be its advanced technology, well-reputed management, problem-solving ability, employees’ and KSA.

Step-4: HR forecasting—need assessment

Step-2: Assessment of external environment

Forecasts involve estimating the future requirements of the organization in terms of the nature and the number of people.

Forecasting techniques commonly used for human resource forecasting are

HR forecasting— Ratio analysis

Ratio analysis is the analysis of the relationship between any two numerical variables.

It presumes a certain relationship between two given variables and using that relationship, predicts future HR requirements.

HR forecasting— Delphi technique

The Delphi technique is basically a group-based systematic forecasting method.

This technique does not require any face-to-face participation by the experts.

This method aims at maximizing the benefits and minimizing the dysfunctional aspects of group decision-making as it eliminates group dynamics and individual dominance from the process.

HR forecasting— normal group technique

It is an interactive mode of decision-making.

Each expert in a group independently develops HR requirements and presents it before other experts in the group.

Each member’s proposal is relatively graded and the top-ranked proposal is selected as the final HR forecast.

HR forecasting— managerial judgement

The forecasting in managerial judgement is based on the managers’ subjective views on the possible human resource requirements in the future.

Forecasts are made about the HR requirements, usually by the senior managers of the organization based on their experience.

Types of managerial judgement

Bottom-up approach- In this method, the process of HR forecasting begins with the lowest level of the managerial hierarchy and the managers in charge of each division or department forecast the HR requirements. This forecasting process is then moved up gradually to the higher levels of the management.

Top-down approach- In this method, experts working at the highest levels of the management forecast the HR needs of the organization on the basis of the information available and the field expertise.

HR forecasting— work study technique

It aims at examining the business operations to achieve the optimum utilization of the human and physical resources available.

The major purpose of this technique is to improve the employees’ productivity and organizational efficiency.

This technique is normally carried out through method study and work measurement techniques.

HR forecasting— zero-base forecasting

Zero-base forecasting requires lines managers to justify the need to continue with the positions or jobs that fall vacant in their department.

It does not consider any position as eligible for routine continuance.

This method requires managers to conduct a comprehensive study of the utility of each vacancy before seeking replacements. This technique is derived from the widely popular concept of zero-base budgeting.

HR forecasting— simulation model

Simulation model is a mathematics-oriented, software-enabled technique.

This model simulates the HR requirements and availability to determine the likely gap between the demand for and the supply of human resources.

The working of the simulation model involves asking several what-if questions to develop alternatives in the forecasting process.

HR forecasting— human resource allocation approach

HAPP method has four components

Employees

Functions

A matching model and

A formal rule structure

This method allows comprehensive modelling of the interaction among these components. The matching model deals with the allocation of different jobs to employees. An organization would make HR forecasting based on the specific outcome of the matching model.

HR forecasting—estimation of availability

This process involves the estimation of the availability of the required number of employees.

The techniques for forecasting HR availability through internal sources are

Replacement charts- These are records that contain details about the currently serving employees and the possible replacements for them in their position.

Turnover rate

Human resource management information system (HRIS)

Productivity level

Overtime and absenteeism

Succession planning

Step-5: Developing HR plans and programmes

The estimated HR needs are matched with the estimated HR availability to identify the skill shortage or surplus.

Based on the outcome, appropriate HR plans are developed.

The outcome of such comparisons would be either the recruitment of more employees or a reduction of the existing workforce.

Barriers to HR planning process

Insufficient realization of the importance of HR plans.

Glut in the Indian labour market.

Union resistance.

Cost–benefit misconceptions.

Absence of coordination.

Future uncertainty.

JOB ANALYSIS:

Job analysis is a process of gathering relevant information about various aspects of a job, including its content, context and the job performer’s skill requirements.

Features of job analysis:

Identification of tasks required to be performed.

Defining the role, context, conditions, human behavior, performance standards and responsibilities.

Establishing the job’s worth to an organization.

Establishes job-relatedness.

Assists in the resource management and strategy formulation.

Developing a job profile for each job and acts.

Identifying the appropriate job for each employee.

Better understanding of the impact of environmental changes on individual jobs.

Identifying and removing unnecessary skills and other requirements for a job.

Job improvements through job reengineering and job enlargement.

Job improvements through job reengineering and job enlargement.

Goals of Job analysis:

Jobs Analysis Process:

Techniques of data collection:

Types of questionnaires:

Job description

Job description is a document that specifies the tasks, duties, and responsibilities of the job and should certainly be relevant and accurate — Clyde E. Witt.

Components of a job description statement:

Job title

Alternate title (if any)

Job purpose (general purpose of the job)

Code number (job identification number)

Job holder title (title of the holder of this job.)

Job location

Job type (full-time/part-time)

Department/office (where this job is located.)

Reporting authority (job title to which this job should report)

No. of staff under this post (number and name of the job titles to be controlled by this job)

Job summary (a brief description about the job)

Job duties (day-to-day tasks to be performed)

Authority limits

Working conditions required

Technical requirements

Skills required for the job (minimum skills and competencies required for performing the job)

Experience required for the job (minimum experience required for the performance of the job)

Special circumstances (information about night shifts, overtime, extensive travelling, etc.)

Special requirements (special tools and equipment requirements for the job)

Job specification

Job specification is the process of inferring the human trait requirements presumed to be necessary for successful job performance. — R. Harvey and M. Wilson.

Broad titles in job specification:

Education and training

Work experience

Skills and competencies

Physical strength and stamina

Stress-coping ability

Special needs

Pro forma job specification statement:

Position title (title and designation of the job holder in the job).

Department/office (where the job holder would be posted).

Educational qualifications and training requirements.

Experience (minimum number of years of experience the candidate must possess).

Work-based skills and competencies required.

Behavioural skills and talents required (skills necessary for team work, effective leadership, diagnosing the problems, motivating oneself and others, effective communication, etc.).

Other attributes required (special qualities required for the performance of this job).

Challenges affecting the effectiveness of job analysis:

Employee’s anxiety

Management attitude towards job analysis

Undue importance to job holders

Environmental influence

Absence of follow-up action.

Job design

Job design is the process of determining the specific tasks to be performed, the methods used in performing these tasks, and how the job relates to other work in the organization.

— R. Wayne Mondy

Job enrichment

Job enrichment refers to the development of work practices which challenge and motivate the employees to perform better.

Job rotation

Job rotation refers to moving employees from one job to another in a predetermined way. It enables an employee to perform diverse roles and gain exposure to the techniques and challenges of doing several jobs.

Job reengineering

Job reengineering is the process of streamlining jobs in the form of combining a few jobs into one, redistributing the tasks among various jobs and reallocation of resources.

Job enlargement

Job enlargement aims at making the job more attractive by increasing the operations performed by a person in the job. It transforms the jobs to include more and/or different tasks.

Enlargement is of two types and these are:

Horizontal enlargement Vertical enlargement .

Recruitment and Selection

Internal and External recruitment

The Recruitment and Selection Process is one of the basic HR Processes. Recruitment and Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoring from their side.

The Recruitment and Selection Process must be simple and must be robust enough to operate excellently in the moment of the insufficient number of candidates on the job market and the process must be also able to process a large number of candidates within given time limit.

The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources Department.

External Recruitment:

The External Recruitment is the source of the fresh blood for the organization. As a very critical HR Process, the external recruitment process has to be set up very carefully. The external recruitment involves other external parties and they have to cooperate closely to bring a common success for the organization. The external recruitment is a difficult HR Process when it has to be done properly and meeting stretching requirements and goals of the top management.

The HRM Function has to take initiatives in four important areas to make the external recruitment efficient, quick and bringing the right quality of candidates:

Organization Brand Name Correct Positioning of Job Posting Channels Used to promote the job vacancy Speed of the Recruitment Process.

External Recruitment Channels

The External Recruitment Channels are the channels used to communicate job vacancies to the public audience and the correct usage of the external recruitment channels brings the right candidates for the positions.

Generally, the HRM Function is responsible for monitoring the job market and react appropriately to the changes on the job market with the right mix of the channels used to bring the expected level and number of candidates at the affordable costs. The external recruitment is a very costly HR Process and it is under the pressure for the cost savings all the time.

The HR Recruiter has always to make a complex decision based on the following criteria:

Speed Cost Quality Confidentiality Job Position Requirements Job Openings Plan and Forecast Available external recruitment budget

What to measure in external recruitment process?

The HRM Function cannot miss the opportunity to introduce clever external recruitment measures, which will show the development in the area and will provide detailed reporting to the organization.

The measures have to be defined carefully and it should cover the following areas:

Positions - the main reason for the external recruitment. The HRM Function has to keep track of all open positions in the organization, the number of positions, in departments and how complex the position are as the HRM Function has to define the limits

Time - the external recruitment process must be cut into separate pieces to take the measures, there can’t be a discussion over them and the HRM Function has to measure all the vacancies

Sources - the sources of the external recruitment, including the number of candidates and the percentage of the successful candidates, it is good for measuring the real success rate of different external recruitment channel with different positions

Costs - each external hire has costs associated with and the HRM Function has to measure the efficiency of the whole process

The external recruitment process is not easy to measure and it takes a lot of effort to implement it correctly, but reading the trends in the recruitment, it can help the HRM Function to keep the process in the right shape.

The external recruitment is not just about choosing the right or ideal candidate for the vacancy in the organization. The external recruitment is also about the competition. The competition is about the attractiveness of the job advert, communication and quick response from the organization. The communication is essential during the external recruitment process. The organization, which sends information to its potential hires, the better relationship with the job candidate can be. The organization should inform the job candidate about the step in the recruitment process and expecting time of the next message. People love to be informed about the status of the recruitment process and the organization should allow the smooth information flow.

Recruitment and Selection

Internal and External recruitment

The Recruitment and Selection Process is one of the basic HR Processes. Recruitment and Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoringfromtheirside.

The Recruitment and Selection Process must be simple and must be robust enough to operate excellently in the moment of the insufficient number of candidates on the job market and the process must be also able to process a large number of candidates within given time limit.

The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources Department.

External Recruitment:

The External Recruitment is the source of the fresh blood for the organization. As a very critical HR Process, the external recruitment process has to be set up very carefully. The external recruitment involves other external parties and they have to cooperate closely to bring a common success for the organization. The external recruitment is a difficult HR Process when it has to be done properly and meeting stretching requirements and goals of the top management.

The HRM Function has to take initiatives in four important areas to make the external recruitment efficient, quick and bringing the right quality of candidates:

Organization Brand Name Correct Positioning of Job Posting Channels Used to promote the job vacancy Speed of the Recruitment Process.

External Recruitment Channels

The External Recruitment Channels are the channels used to communicate job vacancies to the public audience and the correct usage of the external recruitment channels brings the right candidates for the positions.

Generally, the HRM Function is responsible for monitoring the job market and react appropriately to the changes on the job market with the right mix of the channels used to bring the expected level and number of candidates at the affordable costs. The external recruitment is a very costly HR Process and it is under the pressure for the cost savings all the time.

The HR Recruiter has always to make a complex decision based on the following criteria:

Speed Cost Quality

Confidentiality Job Position Requirements Job Openings Plan and Forecast Available external recruitment budget

What to measure in external recruitment process?

The HRM Function cannot miss the opportunity to introduce clever external recruitment measures, which will show the development in the area and will provide detailed reporting to the organization.

The measures have to be defined carefully and it should cover the following areas:

Positions - the main reason for the external recruitment. The HRM Function has to keep track of all open positions in the organization, the number of positions, in departments and how complex the position are as the HRM Function has to define the limits

Time - the external recruitment process must be cut into separate pieces to take the measures, there can’t be a discussion over them and the HRM Function has to measure all the vacancies

Sources - the sources of the external recruitment, including the number of candidates and the percentage of the successful candidates, it is good for measuring the real success rate of different external recruitment channel with different positions

Costs - each external hire has costs associated with and the HRM Function has to measure the efficiency of the whole process

The external recruitment process is not easy to measure and it takes a lot of effort to implement it correctly, but reading the trends in the recruitment, it can help the HRM Function to keep the process in the right shape.

The external recruitment is not just about choosing the right or ideal candidate for the vacancy in the organization. The external recruitment is also about the competition. The competition is about the attractiveness of the job advert, communication and quick response from the organization. The communication is essential during the external recruitment process. The organization, which sends information to its potential hires, the better relationship with the job candidate can be. The organization should inform the job candidate about the step in the recruitment process and expecting time of the next message. People love to be informed about the status of the recruitment process and the organization should allow the smooth information flow.

Internal Recruitment:

The Internal Recruitment is the most favorite source of candidates in the stable and developed companies. The Internal Recruitment needs a strong support from other HR Processes, because the unmanaged internal recruitment process can lead to disappointed managers and employees in the organization. The Succession Planning and strong and consistent Performance Management are needed to ensure the success of the internal recruitment.

The internal recruitment process has a lot of benefits and it is always difficult to decide whether to use internal or external recruitment process. The internal recruitment is a right recruitment process for the large organization, which promote friendliness in their corporate culture.

The corporate culture, which supports the employees to look for the opportunities in the organization, is well designed for the internal recruitment process and the process can be a big benefit for the organization. The corporate culture, which is focused on a strong competition among employees and with the external environment, this corporate culture does not support the internal recruitment process.

Internal Recruitment Process Weaknesses

The Internal Recruitment Process does not have just benefits; this process has some disadvantages as well. The Internal Recruitment Process is a very powerful tool, but it can be misused in hands of some employees and managers.

The Internal Recruitment Process is not a process to steal the best employees from their departments. These employees should be treated as a very scarce resource and the internal recruitment procedures should work differently for them.

Internal versus External Job Candidate

The selection of the winning internal or external job candidate is a common dilemma of the internal recruitment process. Many times, the external and the internal final candidates compete for the job position. The HRM Function and the hiring manager have to make a correct decision.

The efficient internal recruitment needs clear rules for the decision about the winning candidate. The organization has to clearly define the condition for the final decision based on the corporate culture and habits inside the organization.

On the opposite side some organizations always prefer internal candidates for job positions and they do not have to compete with the external candidates. This is also very dangerous approach as the external candidate can bring a new knowledge or the approach to the organization.

Selection

Selection is a systematic process of identifying suitable candidates for the available jobs from the available applicant pool.

Differences between recruitment and selection

Phases of the selection process

Phase 1: Measurement

It involves the verification of accuracy and consistency of ensuring selection techniques.

Phase 2: Decision-making

Ensuring the completeness of employee data to make accurate and uncompromising hiring selection decision.

Phase 3: Evaluation

Identifying the role and effectiveness of the selection process from the organizational perspective.

Phases of the selection process

Steps in selection process

Employment application forms/blanks: Standardized format to collect the necessary information.

Selection test: This is a psychological test for comparing and contrasting the behaviour of two or more persons on the basis of a standardized measure.

Selection interview: This is a face-to-face conversation with the candidate to collect the required information.

Reference check: Cross-checking information provided by the candidates in different stages of the selection process.

Physical examination: Medical test to ensure that candidates meet the physical requirements of the job.

Job offer: A job offer is a formal communication which specifies the details of job offer made to the selected candidate.

Employment application forms/blanks

Application forms normally solicit the following information from the candidates

Biographical information

Educational qualifications

Work experience

Pay and other perquisites

Additional information

References

Selection tests

A test is a standardized assessment of a sample but critical behaviour of candidates to determine their suitability for the job.

Characteristics of psychological tests

Objectivity- It refers to the validity and reliability of the measuring tools.

Standardization- It means that there is uniformity in the procedure followed in conducting the test.

Sample of behaviour- It refers to test contents which should predict a representative sample of the eventual behaviour of the candidates.

Types of psychological tests

Types of ability test

Intelligence (IQ) test- The aim of an intelligence test is to measure the general intellectual abilities of a person.

Aptitude test- An aptitude test measures the latent talents of a person that may be crucial to performing the job successfully.

Achievement test- The aim of an achievement test is to measure the knowledge gained by a person in his or her job.

Personality test

A personality test proposes to assess and predict these basic characteristics of a person. Its results are useful in predicting the future performance of the candidate. Rorschach Blot Test (RBT), Thematic Apperception Test (TAT), Minnesota Multiphase

Personality Inventory (MMPI) and Myers-Briggs type indicator (MBIT) are some of the popular forms of personality test.

Interest test

The aim of the interest test is to know the interest, attitude and preference of a person towards the job offered.

Kuder Preference Record and Strong Vocational Interest Blank are some well-known interest tests.

Honesty or integrity test

In an honesty or integrity test, the questions are asked in such a way that the attitude and actual behaviour of the candidates can be found out.

These are rarely used in India.

Evaluation of psychological tests

Merits

Objective in evaluation.

Ideal for large groups.

Predictor of intangible talents.

Goal-specific and target-oriented.

Record for future.

Limitations

Lack of flexibility. Unsuitable for smaller groups.

Developing a test programme-steps

Determining the job and skills requirements.

Deciding the types of test.

Developing the success criteria.

Administering the test.

Evaluating the results.

Selection interview

Interview is a face–to–face conversation to collect information from a candidate to determine his or her suitability for a job.

Kinds of interview

Structured interview- In this method, the interviewer predetermines the questions to be asked and follows the same to ask the interviewee a series of questions with little or no deviation.

Unstructured interview- In this type of interview, the interviewer does not pre-plan the questions to be asked. In fact, he or she decides on the questions as the interview proceeds.

In-depth interview- The purpose of this interview is to discuss the information concerning the candidate in detail. The intention is to ensure that no vital information is missed out.

Stress interview- The intention of the interviewer in this kind of interview is to identify sensitive candidates who have low-stress tolerance. The purpose of a stress interview is to put the candidate in an uncomfortable situation to see his or her ability to handle stress.

Panel interview- A panel of two or more interviewers is formed to interview the candidate. The interviewers are generally drawn from different fields.

Computerized interview

In computerized interviews, the applicant is asked computerized oral questions and his or her oral or computerized replies are recorded. Computerized interviews are often used as preliminary interviews.

Strategy for an effective interview process

Familiarizing oneself with the information available.

Getting ready with an interview plan.

Creating a supportive environment

Conducting the interview.

Ending the interview.

Reviewing the performance.

Weaknesses of the interview method

Lack of objectivity.

Halo effect.

Inadequacy of time.

Lack of uniformity.

The absence of training for the interviewers.

What Are Personnel Policies?

Personnel policies, also called employee handbooks, are a set of statements that explain what the employer expects from its employees and what employees may expect from the employer. Policies offer guidelines for decision-making and reflect a business' values.

Introductory Materials

Personnel policies often begin with a welcome, a brief history of the business, a statement of the company's values and a description of its organizational structure.

Policies

The policies should include comprehensive information about workplace rules; for example, hours, attendance, pay, benefits, supervision and discipline.

Legal Issues

Personnel policies should also include discussion of sensitive legal issues like sexual harassment and employee safety regulations.

Effectiveness

To be effective, the policies must be distributed to every employee. The policies should be reviewed during employee orientation and during periodic training sessions.

Warning

Employers should avoid making unconditional promises in their personnel policies. Implying that an employee who follows the rules will never be fired, for example, may result in a lawsuit even when an employee is fired for good reason.

MEETING COMPETITIVE CHALLENGES THROUGH HRM PRACTICES

HRM practices that help companies deal with the competitive challenges can be grouped in to the four dimensions. These dimensions include:

1. Managing the human resource environment2. Acquiring and preparing human resources3. Assessment and development of human resources4. Compensating human resources

In addition, some companies have special issues related to labour - management relations, international human resource management, and managing human resource function.

HRM PRACTICES

• HRM strategy is matched to business strategy

• Knowledge is shared

• Work is performed by teams

• Pay systems reward skills and accomplishments

• Selection system is job related and legal

• Flexibility in where and when work is performed

• Work attitudes of employees are monitored

•

• continuous learning environment

• discipline system is progressive

• Customer satisfaction and quality are evaluated in the

performance management system

Skills and values of a diverse

Workforce are valued and used

• Technology is used to reduce the time• for administrative tasks and to• improve HR efficiency and• Effectiveness

1. Managing human resource environment

SUSTAINABILITY CHALLENGEGLOBAL CHALLENGE

TECHNOLOGY CHALLENGE

Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness. Creating a positive environment for human resource involves

Linking HRM practices to the company’s business objectives_ that is, strategic human resource management.

Ensuring that HRM practices comply with federal, state, and local laws.. Designing works that motivates and satisfies the employee as well as maximizes customer

services, quality and productivity

2. Acquiring and preparing human resources

Customer needs for new products or services influence the number and type of employees businesses need to be successful. Terminations, promotions and retirements also influence human resource requirements. Managers need to predict the number and type of employees who are needed to meet customer demands for products and services. This area of human resource management deals with:

Identifying human resource requirements – that is, human resource planning, recruiting employees and selecting employees

Training employees to have the skills needed to perform their jobs.

3. Assessment and development of human resources

Managers need to ensure that employees have the necessary skills to perform current and future jobs. Companies need to create a work environment that supports employees work and non-work activities .This area of human resource management addresses

Measuring employees performance Preparing employees for future work roles and identifying employees work interests, goals,

values and other career issues Creating an employment relationship and work environment that benefits both the

company and the employee

4. Compensating human resources

Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality and customer service. Also, pay and benefits are used to reward employee’s membership in the company and attract new employees. The positive influence of new work designs, new technology and the quality movement on productivity can be damaged if employees are not satisfied with the level of pay and benefits or believe pay and benefits are unfairly distributed. This area of human resource management includes

Creating pay systems Rewarding employee contributions

Providing employees with benefits

Special issues

In some companies employees are represented by a labour union. Managing human resources in a union environment requires knowledge of specific laws, contract administration and the collective bargaining process

Many companies are globally expanding their business through joint ventures, mergers, acquisitions and establishing new operations. Successful global expansion depends on the extent to which HRM practices aligned with cultural factors as well as management of employees sent to work in another country. HRM practices must contribute to organizational effectiveness.

HRM practices of both managers and the human resource function must be aligned and contribute to the company’s strategic goals.