Introduction of Human Resource Management

We often hear the term Human Resource Management, Employee Relations and Personnel
Management used in the popular press as well as by Industry experts. Whenever we hear
these terms, we conjure images of efficient managers busily going about their work in glitzy
offices. In this article, we look at the question what is HRM? by giving a broad overview of
the topic and introducing the readers to the practice of HRM in contemporary organizations.
Though as with all popular perceptions, the above imagery has some validity, the fact remains
that there is much more to the field of HRM and despite popular depictions of the same, the
art and science of HRM is indeed complex. We have chosen the term art and science as
HRM is both the art of managing people by recourse to creative and innovative approaches; it
is a science as well because of the precision and rigorous application of theory that is
required.
As outlined above, the process of defining HRM leads us to two different definitions:1. The first definition of HRM is that it is the process of managing people in
organizations in a structured and thorough manner.
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This covers the fields of staffing (hiring people), retention of people, pay and
perks setting and management, performance management, change management
and taking care of exits from the company to round off the activities. This is the
traditional definition of HRM which leads some experts to define it as a modern
version of the Personnel Management function that was used earlier.

2. The second definition of HRM encompasses the management of people in

organizations from a macro perspective.
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Managing people in the form of a collective relationship between management

and employees. This approach focuses on the objectives and outcomes of the
HRM function. What this means is that the HR function in contemporary
organizations is concerned with the notions of people enabling, people
development and a focus on making the employment relationship fulfilling for
both the management and employees. These definitions emphasize the difference
between Personnel Management as defined in the second paragraph and human
resource management as described in the third paragraph. To put it in one
sentence, personnel management is essentially workforce centered whereas
human resource management is resource centered. The key difference is HRM
in recent times is about fulfilling management objectives of providing and
deploying people and a greater emphasis on planning, monitoring and control.

Whatever the definition we use the answer to the question as to what is HRM? is that it is
all about people in organizations. No wonder that some MNCs (Multinationals) call the HR

managers as People Managers, People Enablers and the practice as people management. In
the 21st century organizations, the HR manager or the people manager is no longer seen as
someone who takes care of the activities described in the traditional way. In fact, most
organizations have different departments dealing with Staffing, Payroll, and Retention etc.
Instead, the HR manager is responsible for managing employee expectations vis--vis the
management objectives and reconciling both to ensure employee fulfilment and realization of
management objectives.

Content
What is Staffing?
Human Resources (HR) staffing refers to managing the people aspect of running a business
by having adequate employees on hand to perform tasks. Human resources management is
often accomplished by an internal team of recruitment and employment specialists.
However, human capital management is also often handled by an outsourced staffing
company that provides services to source, screen, test, and evaluate new employees in
advance of placement into critical roles within a corporate environment.
In many companies, having a human resources department to handle the various aspects of
recruitment and employment processes is enough to manage operations. Within the human
resources department, a team of recruiters can use available resources to search for eligible
candidates for job openings. Once candidates are located, in-house recruiters then screen
resumes, and conduct interviews and pre-employment testing to determine if the job
candidates have the necessary skills to become employed with the company. Candidates who
pass this phase are then offered jobs and are processed according to legal guidelines of
employment.
Nature of Staffing Function

Staffing is an important managerial functionStaffing function is the most important mangerial act along with planning, organizing,
directing and controlling. The operations of these four functions depend upon the
manpower which is available through staffing function.

Staffing is a pervasive activityAs staffing function is carried out by all mangers and in all types of concerns where
business activities are carried out.

Staffing is a continuous activityThis is because staffing function continues throughout the life of an organization due
to the transfers and promotions that take place.

The basis of staffing function is efficient management of personnels-

Human resources can be efficiently managed by a system or proper procedure, that is,
recruitment, selection, placement, training and development, providing remuneration,
etc.
Staffing helps in placing right men at the right job.
It can be done effectively through proper recruitment procedures and then finally
selecting the most suitable candidate as per the job requirements.
Staffing is performed by all managers
depending upon the nature of business, size of the company, qualifications and skills
of managers,etc. In small companies, the top management generally performs this
function. In medium and small scale enterprise, it is performed especially by the
personnel department of that concern.

What is Job Analysis?

1Job analysis is the process of studying and collecting information relating to the operations
and responsibilities of a specific job. The immediate products of this analysis are job
descriptions and job specifications.
2. Job analysis is a systematic exploration of the activities within a job. It is a basic technical
procedure, one that is used to define the duties, responsibilities and accountabilities of a job.
3. A job is a collection of tasks that can be performed by a single employee to contribute to
the production of some products or service provided by the organization. Each job has certain
ability recruitments (as well as certain rewards) associated with it. Job analysis is the process
used to identity these requirements.
Specifically job analysis involves the following steps:
1. Collecting and recording job information
2. Checking the job information for accuracy.
3. Writing job description based on the information
4. Using the information to determine the skills, abilities and knowledge that are required on
the job.
What is Job Description?
Job Description is an important document, which is basically descriptive in nature and
contains a statement of job Analysis. It provides both organizational informations (like
location in structure, authority etc) and functional information (what the work is).
It gives information about the scope of job activities, major responsibilities and positioning of
the job in the organization. This information gives the worker, analyst, and supervisor with a
clear idea of what the worker must do to meet the demand of the job.

Who can better describe the characteristics of good job description? Earnest Dale has
developed the following hints for writing a good job description:
1) The job description should indicate the scope and nature of the work including all
important relationships.
2) The job description should be clear regarding the work of the position, duties etc.
3) More specific words should be selected to show:a) The kind of work
b) The degree of complexity
c) The degree of skill required
d) The extent to which problems are standardized
e) The extent of workers responsibility for each phase of the work

What is Job Specification?

Job Specification translates the job description into terms of the human qualifications, which
are required for performance of a job. They are intended to serve as a guide in hiring and job
evaluation.
Job specification is a written statement of qualifications, traits, physical and mental
characteristics that an individual must possess to perform the job duties and discharge
responsibilities effectively.
In this, job specification usually developed with the co-operation of personnel department
and various supervisors in the whole organization.
Job Specification Information:
The first step in the programme of job specification is to prepare a list of all jobs in the
company and where they are located. The second step is to secure and write up information
about each of the jobs in a company. Usually, this information about each of the jobs in a
company. Usually this information includes:
1. Physical specifications: Physical specifications include the physical qualifications or
physical capacities that vary from job to job. Physical qualifications or capacities
2. Include physical:-- features like height, weight, chest, vision, hearing, ability to lift weight,
ability to carry weight, health, age, capacity to use or operate machines, tools, equipment etc.
3. Mental specifications: Mental specifications include ability to perform, arithmetical
calculations, to interpret data, information blue prints, to read electrical circuits, ability to
plan, reading abilities, scientific abilities, judgment, ability to concentrate, ability to handle
variable factors, general intelligence, memory etc.

4. Emotional and social specifications: Emotional and social specifications are more
important for the post of managers, supervisors, foremen etc. These include emotional
stability, flexibility, social adaptability in human relationships, personal appearance including
dress, posture etc.
5. Behavioral Specifications: Behavioral specifications play an important role in selecting
the candidates for higher-level jobs in the organizational hierarchy. This specification seeks to
describe the acts of managers rather than the traits that cause the acts. These specifications
include judgments, research, creativity, teaching ability, maturity trial of conciliation, selfreliance, dominance etc.

What is Recruitment?
The recruitment process is the value added HR Process. It is about attracting, interviewing
and hiring new employees. The perfect recruitment includes the adaption of the new hire. It is
about the definition of the job vacancy, designing the appealing recruitment text and offering
the competitive package to the winning candidate. The recruitment process is managed by the
recruitment strategy. HR should always find the right position on the job market as the
candidates flow smoothly through the organization. The recruitment is not just external; the
internal recruitment has a enormous impact on the performance of the company and increases
the satisfaction of employees. The recruitment is not just the operational HR process.
The definition of the recruitment is not easy, and the whole process can be extremely
complex

The recruitment strategy is a key success factor for the process. It defines the competitive
advantage of the organization on the job market. The company has to choose the right mix of
the recruitment sources, recruitment agencies and recruitment messages. The company has to
choose the target groups, and the underlying analysis has to identify the right ways to reach
them.
The recruitment supports the marketing activities of the organization. The hiring of new
people is a strong communication topic for the social media. HR can start building the
engaged social community around its recruitment activities. All marketing specialists should
focus on the close cooperation with Human Resources. The HR Marketing is a strong topic
for discussions in the company. The HR Marketing can build a strong competitive advantage.
The recruitment is the excellent opportunity for the internal promotions and talent
identification. The HR Recruiter interviews many internal candidates and he or she can pass
information to the career development specialists. The recruitment strategy should align the
recruitment function with the career development specialists. The internal recruitment is not
the isolated process. It should move the best talents of the organization to the challenging job
positions. The internal recruitment needs a strong support from the top management. It can be
a conflicting process and it needs clear rules, and procedures defined by Human Resources.

The recruitment process contains many interactions. It is the most difficult HR process with
the value added for the company. The process involves managers, employees, Human
Resources, recruitment agencies and candidates. All participants have the same goal filling
the job vacancy and they have to cooperate smoothly to reach the overall goal. Many
organizations make a mistake of forgetting the candidate. The candidate makes the final
decision. The company offers the job, but the candidate decides. The recruitment process has
to be measured, and main recruitment KPIs have to set. The unmeasured recruitment process
cannot support the success of HR in the organization.
The recruitment is the most sensitive HR process. The changes on the job market are visible
in the measures almost immediately. The excellent process learns HR Professionals to be
flexible and being innovative. The competition on the job market is tough, and the company
has to be winning the best talents. The recruitment has to be smart.
Methods of Recruitment

Job Advertisements

One of the most common recruitment methods for businesses is job advertisements placed in
local and national print and online publications. The key is to advertise in places that are
more likely to attract the kinds of candidates sought by the company. For example, technical
businesses tend to advertise in specific trade publications and websites with high traffic rates.
Advertisements and promotions typically include important information such as the location,
job title, description, compensation package and instructions on how to apply for jobs.

Employment and Recruitment Agencies

Companies sometimes use employment and recruitment agencies as part of their staffing
strategy. An employment agency can save businesses the hassle involved with the initial
screening of outside resumes, assessing qualifications and testing, and checking references.
Recruiters provide their services for a fee, often specializing in certain employment areas,
such as financial services professionals, teachers, office workers and executives.

What is Selection?:
Selection is the process of picking up individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization. A formal definition of
Selection is as under
Definition of Selection: Process of differentiating
Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.
DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:
Recruitment

Selection

1. Recruitment refers to the process of

identifying and encouraging prospective
employees to apply for jobs.

1. Selection is concerned with picking

up the right candidates from a pool of
applicants.

2. Recruitment is said to be positive in

its approach as it seeks to attract as many
candidates as possible.

2. Selection on the other hand is

negative in its application in as much as it
seeks to eliminate as many unqualified
applicants as possible in order to identify
the right candidates.

PROCESS / STEPS IN SELECTION

1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate
unqualified applications based on information supplied in application forms. The basic
objective is to reject misfits. On the other hands preliminary interviews is often called a
courtesy interview and is a good public relations exercise.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests.
There are various types of tests conducted depending upon the jobs and the company. These
tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge
how well an individual can perform tasks related to the job. Besides this there are some other
tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical
Tests, Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview. Here
interview is a formal and in-depth conversation between applicants acceptability. It is
considered to be an excellent selection device. Interviews can be One-to-One, Panel
Interview, or Sequential Interviews. Besides there can be Structured and Unstructured
interviews, Behavioral Interviews, Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks can be

through formal letters, telephone conversations. However it is merely a formality and

selections decisions are seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is the
selection decision is to be made. The final decision has to be made out of applicants who
have passed preliminary interviews, tests, final interviews and reference checks. The views of
line managers are considered generally because it is the line manager who is responsible for
the performance of the new employee.
6. Physical Examination: After the selection decision is made, the candidate is required to
undergo a physical fitness test. A job offer is often contingent upon the candidate passing the
physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have
crossed all the previous hurdles. It is made by way of letter of appointment.
8. Final Selection

What is Training and Development?

Training and Development is a subsystem of an organization. It ensures that randomness is
reduced and learning or behavioral change takes place in structured format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT
Traditional Approach Most of the organizations before never used to believe in training.
They were holding the traditional view that managers are born and not made. There were also
some views that training is a very costly affair and not worth. Organizations used to believe
more in executive pinching. But now the scenario seems to be changing.
The modern approach of training and development is that Indian Organizations have
realized the importance of corporate training. Training is now considered as more of retention
tool than a cost. The training system in Indian Industry has been changed to create a smarter
workforce and yield the best results
Training & Development Methods

Instructor-Led

Traditional classroom training allows instructors to interact with participants. Instructors offer
lectures, followed by drill-and-practice exercises, to achieve the courses learning objectives.
This method works best for developing professional skills, such as communication,
negotiation, influencing and decision-making. Role-playing exercises help participants
practice new techniques. A classroom setting also permits participants to learn from each
other. Many people prefer instructor-led training, because they get away from their office and
the at-work distractions.

Coaching

Coaching and mentoring occur on the job. This allows experienced personnel to provide
guidance to less-experienced workers when they need it. The method allows an individual to
tailor coaching sessions to his personal needs. These might include preparation for a new
role, remediation or awareness of procedural changes. A coach typically helps an employee
assess his skills. Then, they create an action plan together. They establish goals. After a few
months, they get together and assess progress.

Meaning of Performance Appraisals

Performance Appraisals is the assessment of individuals performance in a systematic way. It
is a developmental tool used for all round development of the employee and the organization.
The performance is measured against such factors as job knowledge, quality and quantity of
output, initiative, leadership abilities, supervision, dependability, co-operation, judgment,
versatility and health. Assessment should be confined to past as well as potential performance
also. The second definition is more focused on behaviors as a part of assessment because
Performance Appraisal Methods

Job Results

Though not an appraisal method per se, job results are in themselves a source of data that can
be used to appraise performance. Typically, an employee's results are compared against some
objective standard of performance. This standard can be absolute or relative to the
performance of others.
Results indexes are often used for appraisal purposes if an employee's job has measurable
results. Examples of job results indexes are dollar volume of sales, amount of scrap, and
quantity and quality of work produced. When such quantitative results are not available,
evaluators tend to use appraisal forms based on employee behaviors and/or personal
characteristics.
In some cases, appraisals may focus on results rather than behaviors. This is especially true
where job content is highly variable, as in many managerial positions, thus making it difficult
to specify appropriate behaviors for evaluative purposes. Results indexes such as turnover,
absenteeism, grievances, profitability, and production rates can be used to evaluate the
performance of organization units.

Essay Method

The essay method involves an evaluator's written report appraising an employee's

performance, usually in terms of job behaviors and/or results. The subject of an essay
appraisal is often justification of pay, promotion, or termination decisions, but essays can be
used for developmental purposes as well.
Since essay appraisals are to a large extent unstructured and open-ended, lack of
standardization is a major problem. The open-ended, unstructured nature of the essay
appraisal makes it highly susceptible to evaluator bias, which may in some cases be
discriminatory. By not having to report on all job-related behaviors or results, an evaluator
may simply comment on those that reflect favorably or unfavorably on an employee. This
does not usually represent a true picture of the employee or the job, and content validity of
the method suffers.

What is Compensation?
Compensation is the total amount of the monetary and non-monetary pay provided to an
employee by an employer in return for work performed as required.
Compensation is based on:

market research about the worth of similar jobs in the marketplace,

employee contributions and accomplishments,
the availability of employees with like skills in the marketplace,
the desire of the employer to attract and retain a particular employee for
the value they are perceived to add to the employment relationship, and
the profitability of the company or the funds available in a non-profit or
public sector setting, and thus, the ability of an employer to pay marketrate compensation.

Types of Compensation and Benefits

There are three types of Compensation and Benefits namely;

Base Compensation
Variable Compensation
Supplementary Compensation
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Base Compensation and Benefits

Base Compensation is one type of Compensation. It refers to the basic salaries

and wages given to he employees. It is normally constant at a given amount
irrespective of the difference in work performance.
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Variable Compensation and Benefits

This type of compensation as by its name is variable. It means that one gets
compensation as per the work done. If one does a remarkable job then he or she
deserves a higher compensation package than one whose work is of poor quality.
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Supplementary Compensation and Benefits

Supplementary Compensation is compensation given by an employer when he or

she wishes to. It is not compulsory or a routine once one is given the
compensation that one will be awarded another time. In this type of
Compensation the employer has a right to add, deduct or even withdraw the
benefits when he or she wishes to.