Assignment: Human Resource Management

Assignment Topic:

Submitted To:

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Semester 5th (M)

Department of Software Engineering,
GCUF
Human resource management (HRM):
Human resource management (HRM)
is the practice of:

 Recruiting
 Hiring
 Deploying
 and managing an organization's employees.

To achieve organization goals.

HRM is often referred to simply as human resources (HR). A company or organization's HR

department is usually responsible for creating, putting into effect and overseeing policies
governing workers and the relationship of the organization with its employees. The term human
resources was first used in the early 1900s, and then more widely in the 1960s, to describe the
people who work for the organization, in aggregate.

HR Utilization:

 Recruitment:

Recruitment is a process of identifying, screening, shortlisting and hiring

potential resource for filling up the vacant positions in an organization. It is a core function of
Human Resource Management. Recruitment is the process of choosing the right person for the
right position and at the right time. Recruitment also refers to the process of attracting,
selecting, and appointing potential candidates to meet the organization’s resource
requirements.

The hiring of the candidates can be done internally i.e., within the organization, or from
external sources. And the process should be performed within a time constraint and it should
be cost effective.

 Selection:

Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job position in an organization. In others words, selection can also be
explained as the process of interviewing the candidates and evaluating their qualities, which
are required for a specific job and then choosing the suitable candidate for the position. The
selection of a right applicant for a vacant position will be an asset to the organization, which
will be helping the organization in reaching its objectives.

A good selection process will ensure that the organization gets the right set of employees with
the right attitude.

 Appraisal:

“It is a systematic evaluation of an individual with respect to performance on

the job and individual’s potential for development.”

An appraisal is the analysis of the performance of an individual, which usually includes

assessment of the individual’s current and past work performance. Broadly speaking, there are
two main reasons for the appraisal process. The first is the control purpose, which means
making decisions about pay, promotions and careers. The second is about identifying the
development needs of individuals.

 Compensation:

Compensation is the monetary benefit which is given to an employee or

worker giving their services to an organization. Compensation includes components like salary,
wages, bonuses etc. The compensation provided helps in motivating the employees, build their
career and ensure that their are committed in achieving the company goals.

Compensation is something, most usually money, which is given to the employees of an

organization or company as payment or reparation for their service towards the organization or
because of their loss incurred due to any organizational activity.

Functions of HRM:

 Planning:

This function is very vital to set goals and objectives of an organization. The
policies and procedures are laid down to achieve these goals. When it comes to planning the
first thing is to foresee vacancies, set the job requirements and decide the recruitment sources.
For every job group, a demand and supply forecast is to be made, this requires an HR manager
to be aware of both job market and strategic goals of the company. Shortage versus the excess
of employees for that given job category is determined for a given period. In the end, a plan is
ascertained to eliminate this shortage of employees.
 Recruitment:

Recruitment is a process of identifying, screening, shortlisting and hiring

potential resource for filling up the vacant positions in an organization. It is a core function of
Human Resource Management. Recruitment is the process of choosing the right person for the
right position and at the right time. Recruitment also refers to the process of attracting,
selecting, and appointing potential candidates to meet the organization’s resource
requirements.

The hiring of the candidates can be done internally i.e., within the organization, or from
external sources. And the process should be performed within a time constraint and it should
be cost effective.

 Selection:

Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job position in an organization. In others words, selection can also be
explained as the process of interviewing the candidates and evaluating their qualities, which
are required for a specific job and then choosing the suitable candidate for the position. The
selection of a right applicant for a vacant position will be an asset to the organization, which
will be helping the organization in reaching its objectives.

 Compensation & Benefits:

The HR department has also responsibility to perform the

function of compensation & employee benefits. The compensation is defined as all the rewards
that are obtained by the employee as a result of his employment. These rewards may take any
of the following forms.

Pay:

The money received by an employee for performing his job.

Benefits:

Benefits are those extra financial rewards that are received other than pay. Benefits
include sick leaves, paid leaves, holiday& medical insurance.
Non-financial Rewards:

There are also some non financial rewards that are availed by the
employees & which are non-monetary in nature like pleasant working environment &
delightedness of work performed etc.

 Performance Appraisal:

An appraisal is the analysis of the performance of an

individual, which usually includes assessment of the individual’s current and past work
performance. Broadly speaking, there are two main reasons for the appraisal process. The first
is the control purpose, which means making decisions about pay, promotions and careers. The
second is about identifying the development needs of individuals

 Training and Development:

This function of human resource management helps the

employees to acquire skills and knowledge to perform their jobs effectively. Training an
development programs are organised for both new and existing employees. Employees are
prepared for higher level responsibilities through training and development. During the process
of the training and development, the results are monitored and measured to find out if the
employees require any new skills in addition to what he/she has.

 Labour Relations:

This function refers to the interaction of human resource

management with employees who are represented by a trade union. Employees comes together
and forms an union to obtain more voice in decisions affecting wage, benefits, working
condition, etc,.

 Safety & Health:

In this function the safety of the employees form serious accidents in

working environment is ensured. Health is little different from safety in such a way that it is
related to the normal physical & mental well-being of employees that make them free from the
illness. The safety & health issue of the employees is very crucial for the HR department
because employees are asset of the organization & their good health in a safe working
environment ensures the increased productivity & effectiveness of the organization in the long
run.

Changing trends in HRM:

 Globalization:

Global competition is the new norm, with employers and employees

seeing themselves as global players in product and HR markets. The Australian Financial
Review competes every day online with the UK’s Financial Times, all because consumers are
flexing their purchasing muscle. Similarly, Apple and Google are recruiting Aussie talent with
the promise of an engaging career in California.

 Technological changes:

Technological innovations provide both threats and

opportunities. Fewer people need to work in a central office location, and are instead able to
do their jobs remotely. On the other hand, these trends are increasing workplace diversity
through the growth of a multigenerational, flexibly skilled, cross-cultural workforce, which is
requiring more sophisticated people management practices.

 Employee education and expectation:

While education responses are common

solutions to demographic challenges, the traditional educational sector is becoming a
workplace challenge in itself. Business practitioners are finding the divide between acquired
formal professional qualifications and workplace learning needs is getting wider. Plus, the
quality of tertiary and technical qualifications varies enormously across institutional providers.

 Work force diversity:

According to Workology:

Work force diversity “is the bringing together of a variety of

people to one workplace.” It’s a concept that does something that many other business-related
concepts don’t,it diverges from the professional and fundamentally concerns the personal.

When speaking about representation in the workplace within the concept of workforce
diversity, several key points about a specific employee roster are being illustrated. Among them
are:
Experience – If a company has its eyes set on expanding its diversity, a candidate with a more
varied level of professional experience might be preferred over one that has followed a more
“cookie cutter” career path.

Background – Not to be confused with on-the-job experience, the background goes deeper
into the personal story of the employee. Examples of this might include, where the person was
raised, the school that they attended, and other skill sets that they possess that are not strictly
related to everyday duties.

Characteristics – Here, we are speaking of characteristics that have no direct relevance to their
professional knowledge, but instead ones that could add variety to the workplace. These include
race, ethnicity, gender, religion, age, ability, sexual orientation, and more.

Functions of HR department:

 Employment:

Workforce planning involves recruitment, selection, orientation, and exit

process. Department managers collaborate with Human Resources to determine staffing needs
and to fill job vacancies in a timely manner whenever the need(s) arise. The HR recruitment
team strategically recruits and selects only the best candidates for the company and ensures
workforce efficiency thereafter in an effort to help the organization accomplish it goals and
objectives.

 Training and Development:

This function of human resource management helps the

employees to acquire skills and knowledge to perform their jobs effectively. Training an
development programs are organised for both new and existing employees. Employees are
prepared for higher level responsibilities through training and development. During the process
of the training and development, the results are monitored and measured to find out if the
employees require any new skills in addition to what he/she has.
 Payment/Reward system:

Rewarding employees for their work is a function that is

impossible to miss. Rewards include salary but also growth and career opportunities, status,
recognition, a good organizational culture, and a satisfying work-life balance.

The total rewards framework shows that rewards are more than just money. They can also be
relational and psychological outcomes. For example, fantastic colleagues and meaningful work
are also rewarding to employees. The monetary reward of the job consists of financial rewards
and other (secondary) benefits.

 Safety & Health:

In this function the safety of the employees form serious accidents in

working environment is ensured. Health is little different from safety in such a way that it is
related to the normal physical & mental well-being of employees that make them free from the
illness. The safety & health issue of the employees is very crucial for the HR department
because employees are asset of the organization & their good health in a safe working
environment ensures the increased productivity & effectiveness of the organization in the long
run.

 Employee Service:

Human Resources keeps new hires and current employees abreast

of the policies and procedures of the organization. This might include (but not limited to) the
distribution of employee handbook, code of conduct manual, and performance appraisals
guidelines.

 Industrial relations:

Another function of HR is maintaining and cultivating

relationships with labour unions and other collectives, and their members.

Unionization is still very prevalent in Europe. In 2015, 92% of employees in Iceland were a
member of a union, followed by Sweden (67%), Belgium (55%), Italy (37%), Ireland (27%)
and Canada (27%).
Maintaining good relations with unions will help to spot and resolve potential conflicts quickly
and will also be beneficial in more difficult economic times when layoffs or other actions are
required.

Challenges in HRM:

 Environmental Challenges:

The environmental challenges are related to the external

forces that exist in the outside environment of an organization & can influence the performance
of the management of the organization. These external forces are almost out of control of the
management of the organization. These can be regarded as threats to management & should be
handled in a proactive manner.

Following are the list of human resource management challenges that considered as the
environmental challenges.

 Rapid Change:

The world is changing at a faster rate because change is constant from

several centuries. So the management of the organizations should be quickly adaptive to the
changing requirement of the environment otherwise they become obsolete from the market.
The human resource management of an organization plays a basic role in response to the
environmental change. The HR department should adopt such policies that can avail the new
opportunities of the environment & keep the organization away from the newly emerging
threats.

 Work Force Diversity:

The changing environment provides both the opportunities &

threats to the human resource management of the organization. The HR manager should adopt
such policies that can make possible the diverse work force of employees. Although on one
hand diversity creates big problem but in the long run, the survival & performance of the
organization is flourished.
 Globalization:

One of the serious issue that today’s organizations are facing is the issue
of globalization. The world is converting into global business and severe competition is started
between domestic & foreign companies. Such competition results in the laying off the effective
workforce of the organization. The HR department can play an important role in keeping the
culture of the organization as global & wider.

 Legislation:

It is the old environmental challenge that is faced by organization since many

decades. There are certain labour laws that are declared by the government for the benefits of
the working employees. Some of these laws are disadvantageous to the interests of the
organizations so it is a one of the big challenges for the HRM to implement all those labor laws
within the organizations. If any of such law is violated, serious actions are taken by the relevant
government authority that may result into serious penalty for the management of the
organization.

 Evolving work & Family Roles:

In recent years, dual-career families are increasing

in which both the wife & husband work. This creates a serious burden on the women that they
have to give time to their families also. In many organizations the policies of HR favours the
employment of more than 10 years. The working hours of the organizations are also strict and
tight for the employees. Moreover, the selection & training procedures are two tough and time
consuming so most of the talented women hesitate to join any organization which would result
in the wastage of talent and potential. Even working men also suffer from these employment
policies because they do not properly give time to their families. So the challenges for
the HRM increases with this particular issue & special favourable working policies are needed
to be employed in all organizations.

 Skills shortage & rise in service sector:

The service sector development is

expanding due to many reasons like change in the tastes & preference of customers,
technological change, legal change etc. All of this affected the structure and managing style of
the business organizations. The skills required in the employment of service sector is also
advancing but the graduates of the technical colleges & universities are groomed according to
the latest requirements. Therefore most of the employees lack the standard required skills to
perform their duties and it becomes a big challenge for HRM to properly train these new & old
employees to become an efficient & effective workers.

 Individual Challenges:

The decisions related to the specific individual employees are

included in the individual challenges for the HRM. The organizational issues are also affected
by the fact that how employees are treated within the organizations. The problems related to
the individual level are as follow.

 Productivity:

Productivity is defined as the measure of the value that an employee can

add to the final product or service of the organization. The increased output per employee is
reflected as increased productivity. Ability & motivation are two important factors that affect
the employee productivity. The ability of the employee can be improved by the hiring &
replacement along with the proper training & career development. On the other high quality of
work life serves as accelerator to the motivational factor of the employees.

 Empowerment:

In the modern days many organizations make changes in such a way

that their individual employees exert more control on their work as compared to their superiors.
This individual control of employees is called empowerment which helps the employees to
work with enthusiasm, commitment & learn new skills because they are more make normal
decisions about their work by themselves & hence enjoy their work.

 Brain Drain:

One of the challenges for HRM is the detachment of the key potential
employees from the organization which link with the competitors for higher remunerations etc.
In such cases the organization loses its intellectual property & in many situations the leaving
employees at the higher levels also take with them the potential lower level employees. This
brain drainage is becoming serious issue in the High-Tec companies.
 Ethics & Social Responsibility:

Under this challenge, the organizations make an

effort to benefit some portion of the society. This is now considered to the social responsibility
of the organization to show favourable behaviour towards the society. The ethics serves as the
basic principle for the socially behaviour of the organizations. Within organizations, the HR
departments develop a code of conduct & principles of code of ethics that serve as the guidance
for the personal behaviour of the employees of the organizations. The employees also expect
from the management to show favourable decisions.

 Job Insecurity:

In the recent years, restructuring & downsizing develops the sense of

insecurity of job within the employees of the organizations. Now many employees only desire
to get a steady job rather than a job with promotional future. Even most successful
organizations lay off its employees in the period of cut throat competition. The stock market
also shows favourable results when layoffs has been made. All these things create a fear among
employees about the insecurity of their jobs which would hinder their effective performance.

 Matching People & Organizations:

It has been proved from the research that the

HR department contributes to the profitability of the organization when it makes such policies
of employee selection in which those employees are selected & retained that best suits the
culture of the organization & its objectives. For example it is proved from research that those
employees would become beneficial for the high-Tech companies that can work in risky,
uncertain environment having low pay. In short it is an important challenge for the HR
department to hire and keep such employees whose abilities & strengths would match the
requirements & circumstances of the organization.

 Organizational Challenges:
Organizational challenges refer to concerns that are
internal to the firm. However, they are often a by product of environmental forces because no
firm operates in a vacuum.
 Restructuring:
A number of firms are changing the way the functions are performed.
For example, some companies are restructuring HR for reasons such as time pressures,
financial considerations, and market pressures. using shared service centres, outsourcing, and
line managers to assist in the delivery of human resources to better accomplish organizational
objectives. Additionally, the size of some HR departments is getting smaller because certain
functions are now being accomplished by others. This shift permits the HR managers to focus
on more strategic and mission- oriented activities.
 Decentralization:

In the traditional organizational structure, most major decisions are

made at the top and implemented at lower levels. It is not uncommon for these organizations
to centralize major functions, such as human resources, marketing, and production, in a single
location (typically corporate headquarters) that serves as the firm's command centre. Multiple
layers of management are generally used to execute orders issued at the top and to control the
lower ranks from above. Employees who are committed to the firm tend to move up the ranks
over time in what some have called the internal labour market.

 Outsourcing Firms:

The process of transferring responsibility for an area of service and

its objectives to an external provider. The main reason for this movement was to reduce
transaction time, but other benefits include cost reductions and quality improvements.
Companies found that administrative, repetitive tasks are often performed in a more cost-
effective manner by external sources.

 Downsizing:

Periodic reductions in a company's work force to improve its bottom line-

often called downsizing-are becoming standard business practice, even among firms that were
once legendary for their "no layoff' policies, such as AT&T, IBM, Kodak, and Xerox. In
addition to fostering a lack of emotional commitment, transient employment relationships
create a new set of challenges for firms and people competing in the labour market, as well as
for government agencies that must deal with the social problems associated with employment
insecurity (including loss of health insurance and mental illness).
 Work team:

As most people in sport and recreation organisations would realise,

teamwork is essential in order to achieve a common goal. Teamwork is not only required in
the sporting arena but also within the management committee and at all other levels of the
administration of the organisation.

There is nothing more destructive in an organisation than people pulling in different directions,
pursuing their own agendas and failing to appreciate the value of teamwork.

The main value of teamwork in the management of an organisation is to blend together people
from different backgrounds, with different ideas and different knowledge, skills and abilities.

So teamwork does not mean everyone blindly following the directions of the leader. Teamwork
means:

 Appreciating and welcoming diversity of opinion

 Reaching a consensus of opinion as to the goals that the team should pursue
 Using the collective wisdom of the team to find solutions to problems
 Culture:

Human Resource Management is facing increased difficulty in managing cross-

border cultural relationships. Increasing competition both nationally and internationally have
resulted in a deeper focus upon effective human resource management. Organizational leaders
and policy makers are required to know how human resources (HR) are managed in different
parts of the world and how they should perceive and react to different cultural beliefs and
practices.

 Technology:

Your business's human resources department is responsible for managing

the organization's people. As technology advances, technical changes create challenges that
human resource managers must face. An organization's workforce has to keep up, or the
company risks being left behind as tech-savvy competitors move in. The human resource
manager plays an important role in helping employees keep pace with technical changes.
 Small business:

Small business owners face a variety of challenges whether they offer

products or services to their target markets. While each business owner deals with his own
particular set of challenges, some of them are likely to land at the top of the list for the average
small business owner at some point.

Recruitment:
It is a process of attracting suitable people to apply for job vacancies.

A business can recruit in two different ways:

Internal recruitment is when the business looks to fill the vacancy from within its existing
workforce.

External recruitment is when the business looks to fill the vacancy from any suitable
applicant outside the businessn

Of course, the option to use BOTH internal and external recruitment can be used. This is often
the case for senior management appointments.

 Internal recruitment

Advantages:

 Cheaper and quicker to recruit

 People already familiar with the business and how it operates
 Provides opportunities for promotion with in the business – can be motivating
 Business already knows the strengths and weaknesses of candidates

Disadvantages:

 Limits the number of potential applicants

 No new ideas can be introduced from outside
 May cause resentment amongst candidates not appointed
 Creates another vacancy which needs to be filled
 External recruitment:

Advantages:

 Outside people bring in new ideas

 Larger pool of workers from which to find the best candidate
 People have a wider range of experience

Disadvantages:

 Longer process
 More expensive process due to advertising and interviews required
 Selection process may not be effective enough to reveal the best candidate

Selection process:
The process of choosing the most suitable applicant from a group of
applicants for an available vacancy.

 Applicants forms and cv:

Resume (or) Curriculum Vitae can be either in a company

specified format, or in the format submitted by individual applicants. Generally evaluated by
HR executives (or) junior executives of line department. Includes basic educational
qualifications and experience of the candidate.

 Reference check:

Before selecting the employ the prospective employee generally look out
for the referees given by the candidate. To check about the candidate’s past record, reputation,
police record etc.

 Selection test:
Intelligence test:

This test measures the numerical skills and reasoning abilities of the
candidates. Such abilities become important in decision making. The test consists of logical
reasoning ability, data interpretation, comprehension skills and basic language skills.
Personality test:

In this test the emotional ability or the emotional quotient is tested. This
test judges the ability to work in a group, inter personal skills, ability to understand and handle
conflicts and judge motivation levels. This test is becoming very popular now days.

Performance test:

This test judges and evaluates the acquired knowledge and experience of
the knowledge and experience of the individual and his speed and accuracy in performing a
job. It is used to test performance of typist, data entry operators etc.

Aptitude test:

Aptitude tests are test which assess the potential and ability of a candidate. It
enables to find out whether the candidate is suitable for the job. The job may be managerial
technical or clerical.

Medical test:

It may include a physical examination, vision test, hearing test, pulmonary

function test, electrocardiogram, chest X-ray, blood tests, urinalysis, and drug testing.

Selection interviews:

 Conducting the Interview:

The interviewer must establish a rapport with the

applicant and then get complete and accurate information using the language which is clear to
the applicant and framing skilful questions.

 Planning interview:

For many job seekers, an invitation to interview is a welcome

chance to meet with a prospective employer. Nevertheless, for recruiters and hiring managers,
it is often a difficult decision deciding which candidates to interview. To make the hiring
process productive, the human resources department should prepare a selection procedure that
is fruitful for both the company and candidates.
 After interview:

After taking the interview of the applicants thy make a merit list
according to selection criteria ,then they forward the merit list to the manager.

Assessment center:

 Exercises
 Social events

Issues and problems :

 Nepotism:

It is the Favouritism shown or preferential treatment granted to relatives

regardless of merit.

Nepotism is found in almost every walk of life, be it business, politics, religion etc.

In the arena of business, high degree of nepotism decrease morale and commitment level of
other employees. They feel discriminated. However, few argue that, nepotism lends stability
and continuity to the organization.

An example can be that a person at a position of responsibility uses his position to give job or
undue advantage to his relative or close family member or even a friend.

 Hiring old worker:

Many older workers wish to continue working or return to the

work force when they discover that their retirement benefits and Social Security payments,
pension and profit-sharing plans, and personal savings are insufficient to maintain the
lifestyle they wanted or anticipated. Others miss the social interaction of the workplace, while
yet others find that hobbies and charitable work alone are unsatisfying.

 Employment discrimination:

Is a form of discrimination based on race, gender, religion, national

origin, physical or mental disability, age, sexual orientation, and gender identity by
employers. Earnings differentials or occupational differentiation where differences in pay
come from differences in qualifications or responsibilities should not be confused with
employment discrimination. Discrimination can be intended and involve disparate treatment of
a group or be unintended, yet create disparate impact for a group.

Making a job offer:

Contract of employee:

 Term and policies

 Express
 Changing a term
 Types of contract(1 year, 3 years, 5 years etc.)
Unions:

Trade unions constitute one of the major power blocks in many countries. With the formation
and recognition of unions, the issues relating to employee interests are no longer determined
by the unilateral actions of the management. These have to be discussed with union
representatives. Thus, the scope of managerial discretion in HR decisions has been narrowed
down.

Size of the organization

A large organization is bound to have a higher demand for new employees. It is bound to look
for more people, since the structure will require more manpower. On the other end of the
spectrum, a small enterprise, like a new company just starting its operations, will require only
a lean staff.

Comparing the two, it is clear that the smaller enterprise will have a simpler, more
straightforward and shorter recruitment process, conducted by only one or two people. The
larger organization, however, will have a lengthier and more complex recruitment process, one
where several members of the organization will take part in.

Campus Recruitment:

Most of the Universities, colleges and Institutes imparting Technical Education in

various disciplines provide facilities for campus recruitment and selection.

Organizations can directly contact the institutes and stimulate the candidates to

apply for jobs

Campus Recruitment:

Most of the Universities, colleges and Institutes imparting Technical Education in

various disciplines provide facilities for campus recruitment and selection.

Organizations can directly contact the institutes and stimulate the candidates to

apply for jobs

Campus Recruitment:

Most of the Universities, colleges and Institutes imparting Technical Education in

various disciplines provide facilities for campus recruitment and selection.

Organizations can directly contact the institutes and stimulate the candidates to

apply for jobs