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Human Resource

Management-Prof. Rutuja Jadhav

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TOPIC 1

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HRM is a management function that

helps managers recruit, select, train

& develop members of organization

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Definitions of HRM

George TerryGeorge Terry

HR is concerned with the

obtaining & maintaining of asatisfactory & a satisfied work force.

BreachBreach

HR is that part of managementprocess which is primarily concernedwith the human constituents of anorganization.

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Characteristics/Nature of

HRM To manage people

To direct people

To develop personnel

It is applicable to all org.

It is of continuous nature

It is based on principles

It aims at optimum contribution by all

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Importance of HRM

Social

1. Creation of employment opportunities

2. Maximizing productivity3. Affording maximum material & mental

satisfaction to work force

4. Avoidance of wastage of efforts5. Promotion of healthy human relation

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Personnel

1. Provision of adequate remuneration

2. Job security

3. Training & Development

4. Opportunity for advancement

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Enterprise

1. Recruitment & maintenance of competentworkforce

2. Forecasting & balancing the demand &

supply of personnel

Union

1. Recognition of union

2. Formulation of personnel policies inconsultation with unions

3. Inculcating Self discipline

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HRM is about

Legal issues

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HRM is about

Planning staffing

needs

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HRM is about

Recruiting,selecting, and

hiring

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HRM is about

Organizing workprocesses

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HRM is about

Training

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HRM is about

Communicatingperformancefeedback

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HRM is about

Career or

employmentcounseling

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Difference between

Personnel Mgt & HRM

Indirect communication

Division of Labour

Labour is treated as a tool

which is expandable &

replaceable

Narrow Scope

Direct communication

Team work

People are treated as

asset to be used for

benefit of org

Broader scope

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Strategic Management

StrategyStrategy

It is a way of doing something. It usually

includes formulation of a goal & set of action

plans for accomplishment of that goal.

Strategic ManagementStrategic Management

It is the process of formulating,

implementing & evaluating businessstrategies to achieve organizational

objectives.

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Strategy Formulation

Strategies are formulated at three different levels:

Corporate Level-Top Management

Business Unit Level- Single Strategy that drivesbusiness at all level

Functional Level-Basic courses of action eachfunctional department must pursue

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TOPIC 2

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Human Resource Planning/

Man-PowerPlanning HRP is the process of forecasting a firms

future demand for & supply of, the right

type of people in the right number.

HRP is also called as ManpowerPlanning,

Personnel Planning orE

mploymentPlanning

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Objectives of HRP

To estimate organizations HR need

To Assess Human Resource requirements

To keep Right number of qualified people

into right job at the right time

To Create Talented Personnel

Cut Cost

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Importance of HRP

Future personnel needs

Part of strategic planning

Creating Highly Talented Personnel

International Strategies

Foundation forPersonnel Functions

Increasing Investments in HR

Minimizing LabourTurnover

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HRPProcess

Environmental Scanning

Organisational Objectives and

Policies

HR Demand

forecast

HRSupply

forecastMake Comparison

Difference

Surplus

Restrict hiring,

Reduce hours,

VRS, lay off etc

Shortage

Recruitment and

Selection, Hiring,

Overtime

No differences

Demand

equals supply

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Environmental Scanning- Systematicscreening of external forces influencing org.

like Economic factors, Technological changes,

demographic changes, Political & Legal

Issues.

Organisational Objectives & Policies- HRP

must be based on Organisational Objectives &Policies

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HR Demand forecast- Process of

estimating quantity & quality of people

required to meet future needs of org.

HRSupply Forecast- Supply forecast

measures the number of people likely

to be available from within & outside an

org.

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Job Analysis

Job Description Job Title

Location

Job Summary

Duties

Machines, Tools, & Equipments

Materials & Forms used

Supervision given or received

Working Conditions

Hazards

Job Specification Education

Experience

Training

Judgement

Initiative

Physical efforts

Physical Skills

Responsibilities

Communication Skills Emotional Characteristics

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Merits of Job Analysis

Organisational & ManpowerPlanning

Recruitment & Selection

Wage & Salary Administration

Employee Training & Development

Performance Appraisal

Health & Safety

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Recruitment

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Recruitment

The process by which a job vacancyis identified and potential employees

are notified.

It is process of searching forprospective employees & stimulating

& encouraging them to apply for jobsin an organization

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Sources of Recruitment

Internal Sources

Promotions

Transfers Absorption ofTrainees

Internal Advertisement

Lent Services

External Sources

Employment Exchanges

Advertisement

Colleges/Universities Recommendations of

present employees

Labour Unions

Field Trips Personnel Consultants

Factory Gate

Contractors

From other Firms

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Selection

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Selection

The process of assessing candidates and

appointing a post holder

It is the process of differentiating between

applicants in order to identify those with a

greater likelihood of success in a job

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Selection Process

Scrutiny of Application Received

Blank Application Forms

Tests

Final Interview

Checking References

Medical Examination

Final Selection

Preliminary Interview

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Induction/Orientation

Induction is a systematic & plannedintroduction of employees to their

jobs, their co-workers & the org.

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Strategic Choices of

Induction

FORMAL INFORMAL

INDIVIDUAL COLLECTIVE

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Problems ofOrientation

Supervisor who is not trained or busy

Employee is overwhelmed with too

much information in a short time Employee is overloaded with forms to

complete

Employee is thrown into action toosoon

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PLACEMENT

It refers to allocation of people to jobs.

It involves assignment of newemployees, & promotion, transfer, or

demotion of present employees.

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Employee Retention

Employee Retention is a systematiceffort by employers to create and

foster an environment thatencourages current employees toremain employed.

Employee retention refers to policiesand practices companies use toprevent valuable employees fromleaving their jobs

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EMPLOYEE RETENTION

TOOLS1. Communication

2. Include employees in decision making

3. Allow team members to share theirknowledge with others

4. Balance work and personal life

5. Provide opportunities for growth anddevelopment

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8. Best employee reward programs

9. Appreciation

10.Career development program

11. Performance based bonus

12. Employee recreation

13. Gifts on some occasions

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Training & Development

Training

Training is the act of increasing

skill & knowledge of & attitude of anemployee for doing a particular job.

Development

Development refers to learningopportunities designed to help

employees grow.

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Need forTraining

Non-availability of trained personnel

Suitable for enterprise needs

Proficiency in latest methods

Technological advances

Organizational complexity

Human Relations

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Advantages ofTraining

To the Company

1. Increased Proficiency

2. Reduced Supervision

3. Reduced Accidents &wastages

4. Lower Absenteeism

5. Assist newcomers

6. Competent & capableemployees

To the Candidate

1. Confident Employees

2. Positive Attitude

3. Chances ofpromotion

4. Refreshing

5. High Rewards

6. Cooperation

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Methods ofTraining

1. On the job Training2. Vestibule Training

3. Internship Training

4. Induction Training5. LearnerTraining

6. Company School Training

7. Retraining or RefresherTraining8. Apprenticeship Training

9. Demonstrations

10. Lectures

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TOPIC 4

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Succession/Career planning refers tothe identifying and tracking high-potential employees capable of filling

higher-level managerial positions.

It requires the senior management tosystematically review leadership talent

in the company.

It provides a set of developmentexercises that a manager must completeto be considered for top management

positions.

CareerPlanning

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Succession planning systems also attract andretain managerial employees by providing themwith developmental opportunities that they can

complete if upper management is a goal forthem.

High potential employees typically complete anindividual development program that involves :

Education.

Executive mentoring.

Coaching

Rotation through job assignments.

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High Potentialemployees areselected.

Stage 1

High Potentialemployees receivesdevelopmentexercises.

Stage 2 High Potential

employees must havepersonalcharacteristics &Companys culture torepresentthecompany.

Stage 3

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1.

Identify whatpositions are included

in the plan.

2.

Identify theemployees included

in the plan.

3.

Develop standards toevaluate positions.

6.

Link the successionplanning system withother human resource

System

5.

Developthesuccession planning

review.

4.

Determine howemployee potentialwill be measured.

7.

Determine whatfeedback is provided

to employees.

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Succession Planning constitutes a major

step in almost every industry to understand

and provide the best platform for its high

potential employees who are capable ofbeing successful in high-level management

positions.

For the development plans to be effective,both the employee and the company have

responsibilities that need to be completed.

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TOPIC 5

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Performance Management

System/Performance Appraisal

Performance Appraisal is assessment

of an individuals performance in asystematic way

Performance Appraisal is an objective

assessment of an individuals

performance against well defined

benchmarks

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Purpose ofPerformance

Appraisal Recognition ofIndividual Performance

Identification of individual strengths &

weaknesses Salary

Promotion

Lay Offs

Identification of poor performers

HR Planning

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Methods ofPerformance

Appraisal SYSTEMATIC

1. Ranking Method

2. Paired ComparisonMethod

3. Graphic/Linear Scale

Method

4. Forced ChoiceMethod

5. Grading Method

FUTUREORIENTED

1. MBO

2. Assessment centre3. Psychological

Appraisal

4. 360 Feedback

M th d f P f

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Methods ofPerformance

Appraisal SYSTEMATIC

1. Ranking Method- Superior ranks his

subordinates

2. Paired Comparison Method- Rater compares

each employee with every other N(N-1)

2

where, N= No. of subordinates

3. Graphic/Linear Scale Method- Statement ontraits of employee prepared in columns viz.

Excellent & Good, Average, Poor

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4. Forced Choice Method- Rater is forcedto select statements which are

readymade5. Grading Method- Grades are

established like Satisfactory,Unsatisfactory

6. Checklist Method- Statement on traits ofemployee prepared in two columns viz.YES & NO

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FUTUREORIENTED

1. MBO- PeterDrucker- 1954

MBO is a process through whichorganizational goals, plans & control

systems are determined & defined in

joint collaboration between superior

& subordinate managers.

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2.Assessment centre- It is central location

where managers come together to have

their participation in job related exercises.

3. Psychological Appraisal- Org. employ full

time industrial psychologist

4. 360 Feedback- It is systematic collection of

performance data on an individual derived

from no. of stakeholders

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Rating Errors

1. Leniency or Severity- Subjectiveassessment by rater

2. Central Tendency- Play Safe attitude

of Rater3. Halo Error- One aspect of individual

performance influences performance

4. RaterEffect- Favoritism

5. SpilloverEffect- Depend on past PA

6. Status Effect- Levels ofEmployees

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TOPIC 6

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Compensation Management

It is remuneration an employeereceives in return for his contributionto the org.

Compensation of employeecomprises of-

1. Wages & Salary

2. Incentives3. Fringe Benefits

4. Perquisites

5. Non-monetary benefits

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Components ofEmployee

Compensation

Compensation

Financial Non-financial

Hourly &

MonthlyRated

Wages &

Salaries

Incentives

Individual

Plans/

GroupPlans

Fringe

Benefits

P.F

Gratuity

Medical Care

Accident,Health,

Group

Insurance

Etc.

Perquisites

Company Car

Club Membership

Paid

Holidays

Furnished House

Etc.

Job ContextChallenging

Job

Responsibilities

RecognitionGrowth

Prospects

Working

Conditions

DIRECT INDIRECT

Salary/

Wages

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TOPIC 8

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Industrial Relations

Definitions

Complex of inter-relations among

workers, managers, & Govt.

IR is nature of Relationship between

the employer & employee in anindustrial org.

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Functions ofIR

To Establish cordial relations among mgt &workers

To establish a pipeline between workers &

mgt To establish a rapport between manager &

employees

To ensure creative contribution of trade

unions To avoid industrial conflicts for production

efficiency

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Grievance

Employees Dissatisfaction or feeling

of personal injustice relating to his/her

employment

G i H dli P d

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Stage 4

ComplainttoUnion

Stage 3

ComplainttoDivisional Head

Stage 2

Complaintto

Departmental Head

Stage 1

Complaintto

Sectional Head

Grievance Handling ProcedureNO

NO

NO

NO

YES

YES

YES

YES

GrievanceResolved

Grievance

Resolved

Grievance

Resolved

Grievance

Resolved

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Collective Bargaining

Collective Bargaining is a process in which the representatives ofa labour organization & the representatives of business

organization meet and attempt to negotiate a contract or

agreement, which specifies the nature of employee-employer union

relationshipf .

-FLIPPO

Process involving discussions and negotiations

'bargaining' proposals and counter proposals

to reconcile their conflicting interests

is a flexible approach

Wh I d i l

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What are Industrial

Disputes?

Industrial Dispute means any dispute ordifferences between employers andemployers or between employers andworkmen or between workmen and workmenwhich is connected with the employment ornon-employment or the terms of employmentor with the conditions of labour of any person

can be treated as Industrial Dispute

- Industrial Disputes Act 1947

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Non-economic Causes

1. Bad treatment by staff members

2. Political factors

3. Administrative Causes4. Recognition of workers Organization

5. Strikes in other industries

6. Psychological & Social Causes

7. Work Load

8. Rules/service conditions/safety measures

9. Non-implementation of agreements and awards

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Settlement ofDisputes

1. Collective Bargaining (C.B)

2. Code of Discipline- Duties & Responsibilities of both3. Grievance Procedure

4. Arbitration- Neutral Third Party

5. Conciliation- Representatives of both parties6. Adjudication- Mandatory settlement by labour court

7. Consultative Machineries- Set by Govt. at plant,industry, State & National Levels

Methods of Disputes Settlement :

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TOPIC 9

RETIREMENT/SEPERATION

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Superannuation

is a special way of saving to provideyourself with an income when you retire

it is a pension scheme, (where normalPensions are not available). 15% basicsalary is contributed by the employer to thisscheme and most of the places LIC GroupInsurance department manages these

schemes

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Some facts about Superannuation

a)It is a retiral benefit

b)It is normally computed at 15% of the monthly basicsalary. Hence if the basic is Rs.10,000 p.m., theSuperannuation contribution will be Rs.1,500 permonth.

c)The Company opens a Superannuation Fund with anagency like for example - LIC

d)This Fund is normally invested in Govt. securities /equity to get returns

VOLUNTARY RETIREMENT

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VOLUNTARY RETIREMENT

SCHEME

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WHATIS VRS?

The Voluntary Retirement Scheme

(VRS) is the latest mantra of many a

corporate and Public sector units.

VRS is a scheme whereby the

employee is offered to voluntarily

retire from his services before his

retirement date.

Subject to certain conditions the

company offers VRS to its

employees It is the golden route to

cut the excess flab.

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BENEFITS

The normal benefits that anemployee gets:

1. Provident fund

2. Encashed accumulated leave

3. Gratuity

4. Salary for the notice period

5. Cost of transfer to thehometown

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Resignation

It means termination of employment at

the instance of the employee.

A resignation is the formal act of

giving up or quitting one's office or

position.

A resignation is a personal decision to

exit a position

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Discharge orDismissal

Where termination of employment is

initiated by the employer, it is known

asD

ismissal or discharge

The separation of employee is

permanent

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AllThe Best..