Professional Documents
Culture Documents
What Is An HRIS?
What Is An HRIS?
What Is An HRIS?
What is an HRIS?
A human resources information system (HRIS) is standalone or SaaS-based software designed to aid HR
departments in managing people, policies and procedures. HRIS solutions feature data entry, data
tracking, data analysis, and information-related capabilities to address a wide range of human resources
department needs, including applicant tracking, onboarding, payroll, performance management and
accounting functions.
As an HR professional, you may often feel like you’re one person doing the work of many. Well, you’re
certainly not alone. The Human Resources department of any company, large or small, is charged with a
number of critical roles, many of them small but still vital to smooth operations. These responsibilities
can include things like formulating the policies of the company, ensuring that the business processes are
streamlined, making sure the right paperwork is available and in order in the event of an audit, hiring and
firing personnel, and evaluating and motivating the company’s employees.
In order to effectively combine the human side of HR with a reliable and efficient organization system,
more and more organizations are implementing a Human Resource Information System (HRIS), computer
software that is used to streamline and organize all the HR functions of an organization. An HRIS is able
to store all employment records, allowing employers access to metrics on performance management,
benefits, compensation and staffing activities.
What are some of the top reasons your company might need an HRIS?
Time Management
With an HRIS, you’ve got a repository for all your records, documentation and files, and because an
HRIS is such an efficient gatekeeper, management becomes much easier as your documents are organized
and stored in such a way that they can be easily retrieved. Of course, there is an initial framework to set
up and configure, but spending this time up front is worth the effort. Once the HRIS is customized to your
specific HR needs, you’ll quickly find that you have much more time for your work as a human resources
professional.
Great Reports
One of the biggest advantages of an HRIS is the amazing presentations and reports it can create for you.
Because it stores all of a company’s pertinent data in one place, a user is able to create an impressive
variety of detailed reports that encompass information such as: a current index of job openings, electronic
copies of all employees’ paperwork, salary and incentive compensation data, annual performance
appraisal results and disciplinary actions. For instance, when a manager is ready to hire more staff, he or
she can quickly search the HRIS for past job candidates who have a specific set of skills.
Recruitment
A large number of HRIS systems now have a sophisticated interface that can be used internally by current
employees as well as externally by potential job candidates. This type of system makes it possible for
resumes to be submitted and other application information to be collected so that it can be easily and
quickly accessed by the hiring team. Another benefit of this kind of system is that once resumes have
been submitted, a manager can conduct detailed searches to filter information by the candidates’ location,
educational level, and skill set.
Organization
An HRIS is particularly valuable when it comes to organization of employee benefits. Businesses are
able to streamline the entire employee benefit system, meaning employees and new hires can enroll
electronically into benefit plans and log into the system to update and monitor their current coverage.
This “self-service” method saves time and money across the board.
It should be clear by now that if you haven’t considered implementing a Human Resources Information
system, it’s time to do so. It’s the smart way to save time, keep your records organized, stay on top of
employee performance, and bring in the most qualified new hires to your team. While it does take some
effort to set up and configure in the beginning, you’ll be rewarded in efficient, time-saving effects for
years to come
As technology evolves, so does its impact on strategic human resource planning. Human resource
information systems are electronic systems that compile information in databases to be easily accessed
and analyzed. Some information systems allow automation of processes, such as payroll tax calculations,
while others streamline processes by minimizing the need for manual data entry and paper records, thus
increasing accuracy and efficiency.
Total Rewards
One HR function that can benefit from the use of human resource information systems is total rewards,
which refers to all components of the overall compensation model, including salary and benefits. Your
company’s HR department can more effectively track and plan for changes to employees’ salary,
insurance, retirement and other benefits options using an HRIS. Electronic records keep track of current
expenses, and many systems offer projection models and calculators that can help you analyze the impact
of various changes. This is especially useful when preparing for annual increases or benefits open
enrollment.
Workforce Planning
Human resource information systems keep track of critical employee data such as demographic
information, job titles and Equal Employment Opportunity Commission identification codes. Storing this
information in an electronic database allows you to analyze it more easily when working on recruitment
strategies, progression planning and affirmative action programs. HR reps can quickly run reports to
determine items such as how many employees were hired last year, average length of tenure and a
breakdown of the employee population by specified EEOC criteria such as gender and race.
Small businesses also may look to an HRIS to assist with training and development initiatives. Depending
on the needs of your company, you can use an HRIS to facilitate the annual performance review process,
to allow employees to sign up for company-sponsored training classes or to build a talent inventory of
what education, experience and training each employee has. Having this information readily accessible by
managers and human resources representatives is an asset when developing new training programs or
when restructuring departments or positions.
Risk Management
Human resource information systems also minimize risks and potential liabilities. This is accomplished
by keeping electronic records of items such as employee discipline notices, safety training employees
have received, accident logs and workers’ compensation claims. This data is analyzed by the HR
department to identify ways to improve workplace conditions, safety training classes and disciplinary
processes to ensure compliance with all federal and state labor laws
Advantages & Disadvantages of Human Resource Information System
A small business may not see a pressing need to implement a human resource information system (HRIS)
because they may not feel there are enough staff members to warrant it. As a business grows, there are
significant advantages that an HRIS offers to help efficiently manage your team from the HR compliance
perspective. But with any new technology system, there are disadvantages to consider before pulling the
trigger for implementation.
ADVANTAGES
Integrating payroll
Integrating payroll is a cost-effective way to ensure that employees have access to payroll documents,
such as withholding forms and direct deposit information. It also offers a portal so employees can retrieve
pay stubs and tax forms rather than a human resources clerk having to produce, distribute and send to an
employee.
Employee Files
An HRIS system allows employers to store and track all human resources documents, training and
evaluations. From the moment a person is onboarded to the time he retires, his entire file is maintained
with easy access. Managers are able to upload evaluation files, and employees can track which
employment or benefits documents are missing. This takes a lot of clerical work out of the human
resources manager's office, and enables him to focus his resources on better recruiting and internal staff
development
Benefits Administration
Employers are able to integrate benefits administration into HRIS platforms. This means employees can
access employee benefits such as health benefits or retirement plans. Benefits administration is another
aspect that eliminates clerical work from human resources departments to focus on developing staff rather
than having staff spending their time filing and retrieving forms.
Documents
An HRIS platform allows a portal for all important company documents to be accessed. Everything from
employee handbooks and code of ethics to evacuation and emergency plans is stored in the HRIS
platform. If someone needs to access it, all they need to do is to log in and grab the file and open it.
DISADVANTAGES
HRIS Cost
As with any new technology, there is a cost to license and implement a new system. Costs range, and
they depend on the capabilities of the HRIS system, but they may be as high as $300 per employee for
large companies with many benefits capabilities. Smaller companies should expect to pay anywhere from
$40 to $100, and that doesn't include payroll processor costs.
Security Breach
As with any computer technology and database, there is the risk that hackers will access information and
use it for nefarious purposes. Employees provide employers with financial, tax and personal information
such as emergency contacts. A security breach could be catastrophic.
Human resource information systems (HRISs) are platforms that help companies manage their human
resources functions. These systems aren’t well-known outside of the HR field. Business owners don’t
usually hear about these platforms until their HR managers ask for approval to purchase them.
If your HR manager wants an HRIS, should you invest? There are a lot of advantages of using an HRIS.
Here are some of the benefits companies can enjoy after they start using human resource information
systems.
Increased Productivity
When you didn’t have a large workforce, it was easier for your HR employees to manage the department
with spreadsheets. As companies grow and hire more employees, these manual processes become very
inefficient. Your HR employees may be spending a lot of their time performing data entry or searching
for information.
Human resource information systems allow small businesses simplify HR processes. Tasks like employee
onboarding, leave management, and benefits administration can be completed more quickly. This lets
your HR employees get more done during their workdays.
Reduced Costs
Increasing productivity doesn’t just make your HR employees’ jobs easier; it can also save your company
money. When departments are inefficient, they need more employees to complete their tasks. Efficient
departments can get more work done with fewer staff members.
This can start to pay off as your company grows. If your HR department continues using inefficient
processes, you’ll need to hire many more HR employees to keep up with your growing company. When
you use a human resource information system, the same number of HR employees can handle the
demands of a growing workforce.
Improved Compliance
Companies need to follow a lot of human resources regulations. There are regulations for recruiting,
selecting, and hiring employees. There are regulations for wages, vacation time, statutory holidays,
overtime, and hours of work. If keeping track of all that wasn’t hard enough, companies also need to
follow regulations about terminations, layoffs, and dismissals, benefits and pensions, leaves, and more.
Now that your company has grown, it’s very hard for your HR employees to track all of these compliance
issues. They need to make sure the company is following the rules for every single employee in the
company. With an HRIS, it’s easier to monitor compliance. HR employees need to enter the applicable
regulations, and then the platform helps them monitor compliance.
Individual career plans (also referred to as career action and development plans) can be looked at as an
outline that helps a person figure out the steps he needs to take in order to achieve his ultimate career
goals. The plan contains an organized list of the individual’s work-related experiences, education,
preferences and other groundwork to illustrate his career choices and to help develop a career action plan
Significance
The National Career Development Association (NCDA) defines the plan as “a written list of the short and
long-term goals that employees have pertaining to their current and future jobs, and a planned sequence of
formal and informal experiences to assist in achieving their goals.” Individual career plans are intended to
help a person reach her full career potential by considering both her strengths and limitations--central
components when it comes to identifying the specific job and career route that is the best match. Such
factors can detect the overall success and satisfaction a person will have within a specific career.
Identification
Individual career plans generate a portrait of sorts and provide individuals with important information
concerning future career development and activities. Individual career plans are typically done after a
person has completed a number of career aptitude tests, interest inventories, personality tests, work values
inventories and skills assessments. These are great resources that can be employed to discover those
careers which directly correlate to the individual’s skills, preferences, traits and overall objectives. Self-
assessments are also used to help illustrate the specific career and work environments a person is most
likely to thrive in.
Helpful Tools
The Department of Commerce (DOC) Careers in Motion Program (CM) involves a number of web-based
tools for individual assessment and career planning, which allows individuals to set realistic, achievable
goals and to design personalized, customized achievable career goals with measurable steps. Additionally,
the Riley Guide is a good source for the above, along with MindTools.com, which utilizes the SWOT
analysis (Strengths, Weaknesses, Opportunities and Threats) to help gauge how practical a person’s
career goals and expectations are (see Resources). The objective of these tools is to help a person form
and implement her individual career plan.
Outline/Features
Although the exact format of individual career plans may vary according to the person, they all contain
the same information. For example, it should begin with the occupation or group of occupations that the
person is interested in. Following that is a section devoted to skills/abilities, interests, and areas to work
on. The next portion is goal setting and planning. This include your objectives or actions you plan on
taking to get to where you want to be. Identify and think about the amount of time and energy that needs
to be devoted towards things like education and other activities that bring you towards accomplishing
your objectives. See References for links to sample individual career development plans so you can look
at the different formats and sections they contain.
Considerations
Individual career plan models are something you can tailor to suit you best. For instance, you may want to
include all of the assessments and use them to detail your progress or success and serve as a motivational
guide towards your plan. Under the assessments, you can also record the results of any academic exams
or occupational-related tests you’ve taken. The subsequent parts of an individual career plan should
include any relevant work-based learning experiences, extracurricular activities and notable awards and
accomplishments (this doesn’t have to be limited to academic achievements). Lastly, write down all
potential strategies and actions that you’ll take. These strategies or action plans can be divided into
specific areas such as personal/ social, academic/vocational, financial and workplace readiness.
Planning the career is not an easy matter. Successful career planning requires that every individual should
set realistic goals, determine the strengths and weaknesses in his job performance and develop skills that
make him marketable. Before planning his career, every individual musk ask himself the following
questions:
The first important thing in career planning is the presentation of personal profile. It consists of various
personality traits of the person. It is very difficult to know one’s own nature, but it is essential for
One should put some questions to oneself like attitudes towards work, nature, confidence, initiative,
future expectations etc. The answer to these and similar other questions will help in determining the
Both personal and professional goals should be formulated to plan one’s career. The personal goals will
first enable a person to enter the profession and then professional goals will be needed for reaching higher
heights. For example, if a person wants to become a doctor, then he should plan his studies for a period of
Once he becomes a doctor, then he may set goals for himself in the profession. The setting of
performance goals helps in identifying career goals. The career goals are not set once for all. There should
be a flexibility in career goals. With the change in circumstances and environment the goals should be
revised.
A good career planning requires a systematic analysis of the environment for opportunities. Both inside
and outside environment influence career planning process. The stage of growth of the organisation,
future expansion plans, thinking of management etc. should be considered while deciding about career
strategy.
Not only present, but future environment should also be considered. This requires forecasting. Since
many factors need to be analysed, planning the career necessitates being selective and concentrating on
The strengths and weaknesses of a person should be matched with job requirements and environmental
opportunities. Different jobs require different skills. One person may be more suitable at supervisory level
only, while the other may go upto middle level management and so on.
(5) Developing Alternatives:
A good career planning requires the development of several alternatives. The alternatives are assessed in
view of the environment and the opportunities available. One alternative may be suitable under particular
Sometimes, efforts are made to overcome weaknesses to take advantage of opportunities. The strategies
should be developed to meet the threats in the environment and cope with such situations. A person with
excellent technical and managerial capabilities may like to join an expanding concern so that he benefits
later on.
The career plans are developed in the environment of uncertainty. Even though some future assumptions
are made, but these may not prove correct. So contingency plans should be formulated for facing the
uncertain future situations. One may be happy while working in a growing concern because of more
career opportunities but an assumption should be made if the venture fails then what is to be done.
The career plan should be monitored to find out if it goes as per the assumptions or not. As required by a
is completed. The appraisal should be in reference to the goals or objectives set not only in operating
MARKOV ANALYSIS
Markov analysis is a method used to forecast the value of a variable whose predicted value is influenced
only by its current state, not by any prior activity. In essence, it predicts a random variable based solely
upon the current circumstances surrounding the variable.
The technique is named after Russian mathematician Andrei Andreyevich Markov, who pioneered the
study of stochastic processes, which are processes that involve the operation of chance. He first used this
method to predict the movements of gas particles trapped in a container. Markov analysis is often used for
predicting behaviors and decisions within large groups of people.
KEY TAKEAWAYS
Markov analysis is a method used to forecast the value of a variable whose predicted value is
influenced only by its current state, not by any prior activity.
The primary advantages of Markov analysis are simplicity and out-of-sample forecasting
accuracy.
Markov analysis is not very useful for explaining events, and it cannot be the true model of the
underlying situation in most cases.
Markov analysis is useful for financial speculators, especially momentum investors.
It can also be used to predict the proportion of a company's accounts receivable that will become bad
debts. Some stock price and option price forecasting methods also incorporate Markov analysis. Lastly,
companies often use it to forecast future brand loyalty of current customers and the outcome of these
consumer decisions on a company's market share.
Markov models are often used to model the probabilities of different states and the rates of transitions
among them. The method is generally used to model systems. Markov models can also be used to
recognize patterns, make predictions and to learn the statistics of sequential data.
There are four types of Markov models that are used situationally:
Markov chain - used by systems that are autonomous and have fully observable states
Hidden Markov model - used by systems that are autonomous where the state is partially
observable.
Markov decision processes - used by controlled systems with a fully observable state.
Partially observable Markov decision processes - used by controlled systems where the state is
partially observable
MANAGERIAL SUCCESSION PLANNING
Managerial Succession planning is a strategy for passing on leadership roles—often the ownership of a
company—to an employee or group of employees. Also known as "replacement planning," it ensures that
businesses continue to run smoothly after a company's most important people move on to new
opportunities, retire, or pass away.
Managerial Succession planning also provide a liquidity event enabling the transfer of ownership in a
going concern to rising employees.
KEY TAKEAWAYS
Therefore, succession planning needs to be innate to company policies. While deciding about the
Employees or family members may be fit for niche positions. You need to identify which role fits
When it comes to selecting successors, you need to focus on your executive team. They are the key
The identified successor/successors must exhibit high potential, be it in growth of business, cost
Once you have identified a set of personnel who can be groomed into future leaders, you
need to retain them. If you cannot retain them, there is no point in grooming them to be
future leaders. They may hone their talents and leave for greener pastures. So, retaining
Perhaps the most obvious starting point. You need to decide which are the critical roles in your
organisation for which you need one, or several successors in place. You will need to draw information
from a number of activities here from reviewing your business strategy to surveying the talent market.
You will also need to look beyond the obvious leadership roles - and consider the 'expert' roles you have.
The next logical step is to 'identify the successors’. That is, those who may be capable of progressing into
the identified critical role, who may be ready (within in a defined time frame) or who may be willing to
move into the role. These are your high potentials - or HiPos. You will no doubt want to consider how
you identify potential in your people - and the succession planning template that you will use to capture
the key talent profile information.
As part of this you will need to think about the target roles and the requisite knowledge, skills,
behaviours, experience and competencies necessary for success. The determine the early markers of
potential for success in these roles. That is, what could individuals reasonably show at earlier stages in
their career that would indicate potential for the target, critical position. Increasingly, we are seeing
that learning agility as being a characteristic that High Potentials or HiPos tend to possess.
Once you have this in place, you'll need to develop an assessment process to determine who has these
potential criteria.
Entry into a talent pool is often accompanied by a structured development process. At this point you will
want to show that those see as High Potential are developing the skills and competencies they need for
their next role. Skills gaps analysis can help in this - and you should check out your talent planning
software The progress of these individuals then needs to be tracked. You'll need an effective HR metrics
system needs to be in place in order to manage, administer and evaluate the effectiveness of succession
planning activities.
With the critical posts known, and your high potentials identified, you can now start to interrogate the
data and begin to map out the succession plans. You can draw on the talent data you have gathered and
interrogate this to give you answers to some of those difficult talent management and succession
questions that might be posed to you. You'll be using a 9-Box Grid. You may also want to take a look at
succession plan software in action.
Step 5: Scheduling succession planning or Talent Review meetings
These are the meetings in which the succession plan is reviewed and discussed. They are an essential
component of your succession planning approach as it is in this meeting that up and coming vacancies are
discussed, the readiness of those in the talent pool for making the next step in their career, and any gaps in
the succession plan.
The present era is an era of knowledge workers and the society in which we are living has come, to be
known as knowledge society. The intellectual pursuits have taken precedence over the physical efforts.
Definition:
The QWL as strategy of Human Resource Management has assumed increasing interest and importance.
Many other terms have come to be used interchangeably with QWL such as ‘humanisations of work’
“QWL is a process of work organisations which enable its members at all levels to actively; participate in
shaping the organizations environment, methods and outcomes. This value based process is aimed
towards meeting the twin goals of enhanced effectiveness of organisations and improved quality of life at
Meaning:
Quality of work life (QWL) refers to the favourableness or unfavourableness of a job environment for the
people working in an organisation. The period of scientific management which focused solely on
The traditional management (like scientific management) gave inadequate attention to human values. In
the present scenario, needs and aspirations of the employees are changing. Employers are now
1. Job Enrichment:
Under traditional management, the principle of division of work and specialisation was applied so that an
individual could do a particular work more efficiently. However, this made the job of workers
monotonous. They started feeling bored by doing the same work again and again. Management also
Kerzberg in his two factor theory of motivation tried to use job as a medium of developing people and
changing some organisational practices. Job enrichment can lead to extension of job contents. It also
develops competence of employees who voluntarily come forward to share higher responsibilities.
2. Job Rotation:
A vertical job rotation means promotion whereas a horizontal job rotation means transfer to some other
job. Job rotation makes an employee to learn the new job at the new seat thereby creating interest in the
new job. The problems associated with specialisation such as boredom and monotony are automatically
The concept of Quality Circles was made popular in Japan in 1960 by K. Ishikawa. Japan has gained a lot
Quality circles can be defined as a small group of some people (may be 3 to 12) who meet for an hour
every week to identify, analyse and solve the problems related to their work. The solutions are sent to the
Quality Circles develop a culture of participation among the workers. It also reflects the democratic set up
where the management keeps full faith in the employees and also there is a complete understanding
development and the balance between works with non-work life. Each of the dimensions of QWL from
Health and well-being of QWL refer to physical and psychological aspects of an individual in any
working environment. Asakura and Fujigaki (1993)7 examined the direct and indirect effect of
computerization on workers health and well-being. Their results were similar to the study of Iacovides,
Fountoulakis and Kaprins (2003)8 that higher job demand leads to higher strain work environment,
hence; it affects their health and well being. An unstrained work environment ensures good health and
psychological conditions which enable the employees to perform job and non-work related functions
without inhibitions.
Job security:
A dramatic change of workforce in contemporary work environment has revealed a significant amount of
organization change (Watson et al., 2003)11. Organization change such as downsizing, rightsizing and
outsourcing have adversely affected employees‟ loyalty, morale, motivation and perceived job security.
Organization of Economic Cooperation and Development (OECD) (1996)12 highlighted that job security
is the most controversial issue in contemporary work environment. Job security, the central aspect of
QWL represents strength of the organizations to provide permanent and stable employment regardless of
the changes in work environment. Hence, providing a sense of security is important especially in the work
Job Satisfaction:
Later, cognitive and behavioural components were added to this definition. The cognitive aspect
represents an employee‟s belief about his job or job situation. This means an employee may believe that
his or her job is interesting, stimulating, or otherwise. The behavioural component represents an
employee‟s behavioural tendencies toward his or her job. The action of attending work regularly, working
hard and intending to stay in the organisation for long period of time shows the positive behaviour which
indicates job satisfaction. In contrast, negative behavioural outcomes reveal dissatisfaction in job. Job
satisfaction of an employee differs in meaning and importance in relations to the facets of work. Some
may feel pay and fringe benefits that meet his expectations to be extremely important; another, it may be
Competency Development:
Growth in skills and knowledge is an important aspect of competency development that enhances QWL.
Therefore competency development is operationalized as the nature of the job that provides opportunities
and stimulates growth in skills and knowledge either for career or organizational development. Career
development opportunity will provide essential training that will help the individual employees to equip
with the new skills to spearhead in their career. Most contemporary organizations do not limit themselves
to just training an employee for a job, but they go beyond to furnish them with a support system that
Competency Development:
Growth in skills and knowledge is an important aspect of competency development that enhances QWL.
Therefore competency development is operationalized as the nature of the job that provides opportunities
and stimulates growth in skills and knowledge either for career or organizational development. Career
development opportunity will provide essential training that will help the individual employees to equip
with the new skills to spearhead in their career. Most contemporary organizations do not limit themselves
to just training an employee for a job, but they go beyond to furnish them with a support system that
sustainable human resource practices in the work environment. Therefore, balance between work and
2. Improve physical and psychological health of employees which creates positive feelings;
6. Build the image of the company as best in recruitment, retention, and in general motivation of
employees
The results, reported from a number of quality of work life improvement programmes, have some
common characteristics.
1. Persistent commitment from management to the open non-defensive modus operandi of sincerely
inviting collaborative inputs from the workforce regarding problem identification and suggestions for
improving any aspect of the organization or the policies, practices and structure of work with incentives
6. Selection of personnel who can be motivated under appropriate conditions to strive for excellence in
task performance.
7. Evaluation and analysis of results, including failures, leading to renewed effort towards continual
CONTROLLING HR COSTS
Your employees are your greatest resource. So, you want to give them a great experience so they’ll stick
around. That means you want to provide competitive benefits and fun perks. With health insurance,
workers’ compensation, and HR administration costs rising, it’s hard to keep your HR costs down, while
still providing your employees with everything they need.
There are some steps you can take, however, to keep your HR costs under control.
Go Paperless
Star by eliminating unnecessary paperwork and outdated processes. This will take some of the more
monotonous tasks away from your HR staff, so they can focus on the more important aspects of their jobs
– instead of spending time tracking down paperwork.
An easy way to go paperless is to switch to a cloud-based HR system, where your employees can submit
their onboarding forms, clock in and out easily, and request time off.
You might think that an employee wellness program will just cost you more money, not cut down on your
costs. But, implementing a wellness program encourages your employees to live a healthy lifestyle, which
means they won’t be sick as often – they’ll spend more time at work and less time at the doctor, keeping
productivity up and health insurance costs down.
Employee wellness programs also lead to a better work-life balance, so your employees will be happier.
Happy employees are more engaged and stick around longer. You won’t have to hire employees as often
– keeping your recruitment costs down.
The right benefits can help attract and retain employees, which also keeps your recruitment costs down.
But, you don’t have to offer your employees every benefit out there.
Consider which benefits your employees need the most. If most of your team is young and single, do you
really have to offer life insurance? Instead, create a list of benefits that fit in your budget and send out a
survey to find out which ones your employees really want.
You can also consider having your employees share some of the costs of the benefits, so you’re not
footing the entire bill. You should also determine whether the company really can afford to cover your
employees’ dependents and spouses, too.
One of the best ways to keep your HR costs under control is to hire people who fit your culture from the
start. When you hire the right person for the job, you’ll hire someone who will stick around, so you won’t
have to recruit new employees as often
Evidences indicate that organisation having low costs of human resources as a percentage to the total cost
enjoys competitive advantage. That enables them to emerge as ‘winners’ in competitive market. Hence,
the need for controlling the costs of human resources. Accordingly, some of the widely used methods to
analyse and control the costs of human resources are discussed here.
Personnel Productivity:
Productivity is expressed as the ratio of organisation’s outputs i.e., goods and services to its inputs, i.e.,
physical, financial and human resources. One way to control the costs of human resource is increasing the
studies, work simplification, quality circles, productivity-linked rewards and proper utilization of
Personnel reports provide useful information regarding manpower utilization. These can be used for
controlling human resource costs. Personnel budget is a personnel programme expressed in monetary
terms for key areas such as employee compensation, facilities, training, development etc. A comparison
of actual costs with budgeted costs helps the manager take corrective measures to control the personnel
costs
Definition of Auditing
The audit is a methodical procedure of independently examining the financial information of an entity
with the aim of giving an opinion on true and fair view. Here organisation refers to all the entities,
regardless of their size, structure, nature and form.
Auditing is a critical, unbiased investigation of each and every aspect of the transaction, i.e. vouchers,
receipts, account books and related documents are verified, in order to spot the validity and reliability of
the financial statement. Moreover, errors and frauds or deliberate manipulation in accounts or
misappropriation etc. can also be detected through detailed scrutiny.
The auditor will inspect the accuracy and transparency of the financial information, compliance with the
accounting standards and taxes are properly paid or not. After the complete inspection of accounting
books and financial records, he will give an opinion in the form of a report. The reporting on the true and
fair view shall be made to the person who appoints the auditor.
The audit can be conducted internally and externally. The task of internal audit is conducted by an
internal auditor who is appointed by the management of the organisation for improving its internal control
systems and accounting system. External Auditor is appointed by the shareholders of the company.
Advantages
It helps to find out the proper contribution of the HR department towards the organization.
Development of the professional image of the HR department of the organization.
Types
I-9 audit. This audit reviews all I-9 forms for employees and ensures that they all exist, and
they’re all filled in completely and correctly. It can also check for any follow-up needs or
additional documentation needs.
Policy or handbook audit. This type of audit typically looks for policy changes that need to be
made to ensure policies are internally consistent and there is nothing within them that is not
legally permissible—which is especially important since laws may change. It confirms that all
employees have received copies of all policies, and, ideally, the employer has a signed
acknowledgement of such from everyone.
Compliance audit. While the details vary, most HR departments perform compliance audits to
ensure legal compliance with reporting needs as well as compliance with all regulations. For
example, many companies perform audits to ensure compliance with the Americans with
Disabilities Act (ADA) or the Family and Medical Leave Act (FMLA) regulations. Any legal
statute could be rationale to prompt an audit to ensure compliance.
Functional audit. Again, the details will vary, but in a functional audit a specific function, such
as payroll, is assessed to confirm it is operating as intended. This type of audit is typically then
rotated across all functions, such as performance management, and complaint investigation.
Wage and hour practices audit. This type of audit looks to uncover any potential problems with
wage and hour practices. For example, it could uncover whether employees who are required to
take lunch breaks have been doing so. It could also look to discover whether all overtime is being
calculated and paid properly. These are just a couple of examples of the types of audits that could
be conducted under the wage and hour umbrella.
Exemption audit. This type of audit assesses whether all employees who are classified as exempt
from overtime are actually qualified to receive that exemption.
Job description audit. While this activity isn’t always referred to as an audit, it serves the same
function. The key here is to review job descriptions and update them both for accuracy and for
compliance.
Safety audit. As the name implies, this type of audit assesses the safety measures taken within
the organization. (This may or may not fall under HR audits, depending on company structure.)
Companies need to ensure they’re complying with OSHA standards consistently.
Definition of Accounting
Accounting is a specialised language of business, which helps to understand the economic activities of the
entity. It is an act of orderly capturing the day to day monetary transactions of the business and
classifying them into various groups along with that, the transactions are summarized in a way that they
can be easily referred at the time of urgency, thereafter analyzing and understanding the results of the
financial statement and finally communicating the results to the interested parties.
The main function of accounting is to provide material information, especially of a financial nature for
decision making. Cost Accounting, Management Accounting, Tax Accounting, Financial Accounting,
Human Resource Accounting, Social Responsibility Accounting are the fields of Accounting. The
primary objectives of Accounting are as under:
Proper record keeping through Journal, Subsidiary Books, Ledger and Trial Balance
Determination of the results (profitability position) from the records maintained through Trading
and Profit & Loss Account
Showing the financial position of the entity through Balance Sheet
Providing necessary information about solvency and liquidity position to the interested parties.
Advantages
HRA provides useful information about the cost and value of human resources. It shows the strengths and
weakness of the human resources. All this information helps the managers in planning and making the
right decisions about human resources. Thus, it provides useful information for Manpower Planning
and Decision Making.
4. Proper placements
HRA helps the organisation to place the right man in the right post depending on his skills and abilities.
BASIS FOR
ACCOUNTING AUDITING
COMPARISON
Meaning Accounting means systematically keeping the Auditing means inspection of the
records of the accounts of an organization and books of account and financial
preparation of financial statements at the end of statements of an organization.
the financial year.
Purpose To show the performance, profitability and To reveal the fact, that to which
financial position of an organization. extent financial statement of an
organization gives true and fair
view.
Start Accounting starts where bookkeeping ends. Auditing starts where accounting
ends.
The points provided below explian the difference between accounting and auditing, in detail:
1. Accounting is an art of orderly, keeping the records of the monetary transactions and preparation
of the financial statements of the company. Auditing is an analytical task which involves the
independent evaluation of the financial information to express an opinion on true and fair view.
2. Accounting is governed by Accounting Standards, whereas Standards on Auditing governs
Auditing.
3. Accounting is a simplified task, which is performed by the Accountants but Auditing is a
complex task, so Auditors are required for performing it.
4. The main purpose of accounting is to reveal the profitability position, financial position and
performance of the organization. Conversely, auditing is to check the correctness of the financial
statement.
5. Accounting is a continuous activity. Unlike Auditing, which is a periodic activity.
6. End of Accounting is the start of Auditing.
HRD MATRIX
The HRD matrix shows the interrelationship between HRD instruments, processes, outcomes and
organizational effectiveness.
HRD Instruments: These include performance appraisal, counseling, role analysis, potential
development, training, communication policies, job rotations, rewards, job enrichment
programmes, etc. These instruments may vary depending on the size of the organization, the
internal environment, the support and commitment of the top management, the competitive
policies etc.
HRD Processes: The HRD instruments lead to the generation of HRD processes like role clarity,
performance planning, development climate, risk-taking, dynamism in employees. Such HRD
processes should result in more competent, satisfied and committed people that would make the
organization grow by contributing their best to it.
HRD Outcomes: HRD instruments and processes make people more committed and satisfied,
where they tend to give their best to the organization enthusiastically.
Organizational Effectiveness: The HRD outcomes influence the organizational effectiveness,
which in turn, depends on a number of variables like environment, technology, competitors, etc.
A Schematic Presentation of Linkages between HRD Instruments, Processes, Outcomes and
Organizational Effectiveness
Many HRD mechanisms are available to develop the competencies of employees and improved the
overall organizational climate. The major ones are discussed below:
2. Potential Appraisal: the term ‘potential’ refers to the abilities possessed by an employee but not
put to use currently or the abilities to assume challenging responsibilities in future assignments.
The term ‘performance’ refers to one’s skills, abilities in meeting the requirements of the job
which one is holding currently. Potential appraisal is different from performance appraisal which
shows an employee’s current performance in his existing role. If the employee is required to play
a completely different set of roles at the higher levels, potential appraisal needs to be carried out
at regular intervals. “The objective of potential appraisal is to identify the potential of a given
employee to occupy higher positions in the organizational hierarchy and undertaken higher
technologies.” The appraisal is carried out on the basis of (i) supervisor’s observations; (ii)
performance data relating to various previous roles played by an employee; (iii) performance on
roles in simulating to a new position. A good potential appraisal system helps management to
pick up a suitable candidate for a given job and offer additional training, if necessary.
3. Career Planning: a career is a sequence of positions held by a person in the course of a lifetime.
Career planning is a process of integrating the employees’ needs and aspirations with
organizational needs. Career programmes and HR programmes are linked to the degree that they
help each individual meet individual and organization requirements.
In the HRD system, the long term growth plans of a company are not kept secret. They are made
known to the employees. Major changes are discussed at all levels to promote understanding and
commitment among employees. The immediate concern of employees would be to find out where
do stand in such a road map. Do they have any chance to grow while building the organization
brick by brick? Since managers have information about the growth plans of the company, they
need to transmit their information to their subordinates. The subordinates should be assisted in
planning their careers within the company. It is, however, not necessary that each one of them
would scale new heights every year but atleast they are aware of the opportunities and get ready
for greater challenges ahead. Career planning doesn’t guaranty success. But without it, employees
are rarely prepared to encash the opportunities that come their way.
5. Organisation Development:
Organizations are never perfectly static. They keep on changing. Employees’ skills and abilities,
therefore, require continual upgrading. The future is uncertain when full of surprises. It is not easy
to fight the force of change without adequate preparation and training. A systematic planned way of
managing this change is through the process of OD.
OD may be defined as a change effort that is planned, focused on an entire organization or a large
subsystem, managed from the top, aimed at enhancing organizational health and effectiveness and
based on planned interventions made with the help of change agent or third party who is well
versed in the behavioral science.
6. Rewards:
People do what they do to satisfy needs. They choose to behave in way which will maximize their
rewards. The most obvious reward is pay but there are many others. Intrinsic rewards come from
their job itself such as feelings of achievement, pride in doing a job etc. Extrinsic rewards come
from a source outside the job including pay, promotion and benefits offered by management.
Reward could be linked to performance as well to motivate high achievers to do well. If rewards are
allocated completely on non-performance factors such as seniority, job titles etc. then employees
are likely to reduce their efforts. Now days organizations also use team based rewards to motivate
empowered work teams to exceed established targets.
7. Employee welfare & quality of work life (QWL): The term employee welfare means “the
efforts to make life worth living for workmen”. It includes various services, facilities & benefits
offered to employees by the employers, unions & govt. The purpose is to improve the living
standards of workers & thereby improve the quality of work life. Employees voluntarily extend a
number of benefits to employees in the hope that these indirect compensation plans motivate
employees to perform better. Over the years, the types of benefits offered have been expanding in
line with competitive pressures, changing job market trends, employee expectations, union
demands & legislative requirements.
The subsystems described already, contributes to the achievement of overall HRD goals performance
appraisal helps an individual to develop his current role capabilities. Potential appraisal focuses on
identifying the employee’s likely future roles with in the organization. Training helps an employee to
improve his job knowledge and skills. It enables an employee to do his current job more efficiently and
prepare himself for a higher level job .It bridges the gap between job requirements and employee’s skills,
knowledge and behavior .Feedback and performance coaching helps the development of the individual as
well as interpersonal relationships. Organization development aims at developing team spirit and self-
renewing skills. Welfare amenities, rewards and incentives improve the quality of life of employees and
make the work place a stimulating one for employees .The contribution of these HRD subsystems to
various development dimensions is shown in the bellow table.
The HRD mechanisms described above should not be viewed in isolation .They are designed to work
together in an integrated system, although they may cast in an organization that does not have an overall
HRD plan .the collective benefits of integrated mechanisms may not accrue to an organization ,when
these are viewed in isolation . each subsystem is inter-linked to other subsystems and offer rich benefits to
an organization when they are well integrated.
Development dimensions
HRD subsystems Mechanism
Individual Training Career planning Potential appraisal and
development
Feedback and coaching Rewards
performance
Individual in the present Performance appraisal Training Feedback and
role Rewards performance coaching
Individual in regard to Potential appraisal and Training Performance appraisal
likely future roles development
Feedback and
performance coaching
Dyadic relationships Feedback and Performance appraisal Training
performance coaching
In order to realize the benefits of integrated HRD systems, top management must invariably observe
certain principles which are categorized below:
Management Support: HRD requires consistent support from managers working at various levels. They
must formulate the HRD policies keeping organizational requirements in mind and implement these
wholeheartedly.
Focus of the HRD System: The system must be designed keeping various contextual factors such as size,
technology, skill levels, support for function, in mind. It must focus on developing human resources at
various levels (problem solving capabilities leading to increased employee productivity) and
commitment. It must take the organization forward by anticipating changes and preparing people for
future challenges. It must be properly integrated with other long range functions such as corporate
planning, budgeting, etc. Line managers must be actively involved in all the above steps.
Structure of the HRD System: The system must have a distinct identity of its own, headed by a senior
manager taking care of the implementation process. The HR department created for this purpose must
have proper linkages with outside systems as well as internal subsystems. The system must be reviewed
periodically so as to find out the progress and effectiveness of the programme.
Functioning of the System: The system must provide for appropriate feedback from various departments
at regular intervals. It is better to quantify the various aspects of HRD and arrange for storage of data in
computers. Internal experts and external consultants could be judiciously used to offer training to various
departments/ persons. Various aspects of HRD should be introduced in a gradual way, after a thorough
review of the organization’s size, its needs and level of sophistication. Each stage should be planned
carefully, with subsequent phases built one over the other
ORGANISATINAL CULTURE
To understand the meaning of organisational culture, we must first understand the meaning of culture.
“Culture is the set of important understandings that members of a community share in common.” It
consists of a basic set of values, ideas, perceptions, preferences, concept of morality, code of conduct etc.
When we talk about culture, we typically refer to the pattern of development reflected in a society’s
system of knowledge, ideology, values, laws, social norms and day to day rituals. Depending upon the
pattern and stage of development, culture differs from society to society. Moreover, culture is passed on
In simple words we can say that “culture is a combination of factors that are learned through our
interaction with the environment during our developmental and growth years.” After understanding the
The following characteristics help us to understand the nature of organisational culture better.
When we mix and match these characteristics, we get to the basis of culture:
1. Individual Autonomy:
The degree of responsibility, freedom and opportunities of exercising initiative that individuals have in
the organisation.
2. Structure:
The degree to which the organisation creates clear objectives and performance expectations. It also
includes the degree of direct supervision that is used to control employee behaviour.
3. Management Support:
The degree to which, managers provide clear communication, assistance; warmth and support to their
subordinates.
4. Identity:
The degree to which, members identify with the organisation as a whole rather than with their particular
The degree to which reward system in the organisation like increase in salary, promotions etc. is based on
6. Conflict Tolerance:
The degree of conflict present in relationships between colleagues and work groups as well as the degree
7. Risk Tolerance:
The degree to which, employees are encouraged to be innovative, aggressive and risk taking.
8. Communication Patterns:
The degree to which, organisational communications are restricted to the formal hierarchy of authority.
9. Outcome Orientation:
The degree to which, management focuses on results or outcomes rather than on the techniques and
10. People Orientation:
The degree to which, management decisions take into consideration the impact of outcomes on people
within the organisation. When we appraise the organisation on the basis of the above characteristics, we
get a complete picture of the organization’s culture. This picture becomes the basis of shared norms,
beliefs and understanding that members have about the organisation, how things are done in it and how
Cultural Types
Goffee and Jones have identified four distinct cultural types. They argue that these four culture types are
based on two dimensions which they call sociability and solidarity. Sociability refers to high concerns for
people i.e. it is people oriented and focuses on processes rather than on outcomes. The second dimension
Networked culture is high on sociability and low on solidarity. Which means that the organisation treats,
its members in a quite friendly manner and there is open sharing of information. However, this culture
type may lead to poor performance as the focus is on the people rather than on tasks.
2. Mercenary Culture:
It is low on sociability and high on solidarity. The organisations with mercenary culture are task oriented
and believe in competition. The people are highly focussed and goal oriented but, this type of culture may
3. Fragmented Culture:
Fragmented culture is low on both sociability and solidarity. There is little or no identification with the
organisation. It is the individual members’ commitment, productivity and quality of work which is of
utmost importance. This type of culture however suffers from lack of collegiality.
4. Communal Culture:
It is high on both sociability and solidarity. The organisations with communal culture value both people
and tasks. Work accomplishment is from committed people, and there is a relationship of trust and
respect.
The following diagram explains the four cultural typology:
Sometimes an organisation determines that its culture is unfavorable to the organisational effectiveness
and it has to be changed. For example, if there is a change in the external environment, the organisation
must adapt itself to the changing conditions or it will not survive. Though it is very difficult to change the
The following conditions must be present only then a cultural change can take place:
1. Dramatic Crisis:
Any dramatic crisis in the organisation like a major financial setback, loss of a major customer, or a
technological breakthrough by a competitor may force the management to look into the relevance of the
existing culture.
If some top executives leave the organisation and new leadership takes over, they may provide an
alternative set of key values or a new culture. This new leadership may be more capable of responding to
the crisis.
When the organisation is new and its size is small, it will be easier for the management to change the
culture.
4. Weak Culture:
Weak cultures are more amenable to change than strong ones. The higher the agreement among the
If the above mentioned conditions which support the cultural change are present, the following
(i) The top management people should become the positive role models. They should set the examples
(ii) As employees learn the culture through stories, symbols and rituals, the old stories, rituals and
symbols should be replaced by creating new ones which are currently in vogue.
(iii) Adding new members, particularly at the higher level, is a powerful strategy to change the culture,
(iv) The socialization processes should be redesigned to align with the new values.
(v) Reward system establish and reinforce specific cultural behaviours and therefore, a change in culture
(vi) Unwritten norms and beliefs should be replaced with formal rules and regulations that are tightly
enforceable.
(vii) Extensive use of job rotations should be made to shake current subcultures.
(viii) Change in the top management can have significant impact on others in the organisation, because he
(ix) Change in culture will be comparatively easy if peer group consensus is got through use of employee
CAREER MANAGEMENT
Career management is the combination of structured planning and the active management choice of
one's own professional career. Career management was first defined in a social work doctoral thesis by
Mary Valentich as the implementation of a career strategy through application of career tactics in relation
to chosen career orientation (Valentich & Gripton, 1978). Career orientation referred to the overall design
or pattern of one's career, shaped by particular goals and interests and identifiable by particular positions
that embody these goals and interests. Career strategy pertains to the individual's general approach to the
realization of career goals, and to the specificity of the goals themselves. Two general strategy approaches
are adaptive and planned. Career tactics are actions to maintain oneself in a satisfactory employment
situation. Tactics may be more or less assertive, with assertiveness in the work situation referring to
actions taken to advance one's career interests or to exercise one's legitimate rights while respecting the
rights of others.
A career includes all types of employment ranging from semi-skilled through skilled, and semi
professional to professional. Careers have often been restricted to an employment commitment to a single
trade skill, profession or business firm for the entire working life of a person. In recent years, however, a
career now includes changes or modifications in employment during the foreseeable future.
The career management process begins with setting goals/objectives. A relatively specific goal/objective
must be formulated. This task may be quite difficult when the individual lacks knowledge of career
opportunities and/or is not fully aware of their talents and abilities. However, the entire career
management process is based on the establishment of defined goals/objectives whether specific or general
in nature. Utilizing career assessments may be a critical step in identifying opportunities and career paths
that most resonate with someone. Career assessments can range from quick and informal to more indepth.
Regardless of the ones you use, you will need to evaluate them. Most assessments found today for free
(although good) do not offer an in-depth evaluation.
The time horizon for the achievement of the selected goals or objectives - short term, medium term or
long term - will have a major influence on their formulation.
1. Short-term goals (one or two years) are usually specific and limited in scope. Short-term goals are
easier to formulate. Make sure they are achievable and relate to your longer term career goals.
2. Intermediate goals (3 to 20 years) tend to be less specific and more open ended than short-term
goals. Both intermediate and long-term goals are more difficult to formulate than short-term
goals because there are so many unknowns about the future.
3. Long-term goals (Over 20 years), of course, are the most fluid of all. Lack of life experience and
knowledge about potential opportunities and pitfalls make the formulation of long-term
goals/objectives very difficult. Long-range goals/objectives, however, may be easily modified as
additional information is received without a great loss of career efforts because of
experience/knowledge transfer from one career to another.
4. Making career choices and decisions – the traditional focus of careers interventions. The changed
nature of work means that individuals may now have to revisit this process more frequently now
and in the future, more than in the past.
5. Managing the organizational career – concerns the career management tasks of individuals within
the workplace, such as decision-making, life-stage transitions, dealing with stress etc.
6. Managing 'boundaryless' careers – refers to skills needed by workers whose employment is
beyond the boundaries of a single organization, a workstyle common among, for example, artists
and designers.
7. Taking control of one's personal development – as employers take less responsibility, employees
need to take control of their own development in order to maintain and enhance their
employability.
Self-development
Once you have self-analyzed yourself, the second step that awaits your attention is to fill the loopholes
you have identified in the above step. By this we mean that in this step you have to see that what are the
qualities and skills that are required by you to help you achieve your aims and goals. For instance you
might decide that you need training or a particular course in a field in order to make you perfect for the
profession you have chosen.[2]
It could be that you are interested in painting but you are not much aware of the trends or the knowledge
that is required for this field. Or there can be a case where you are interested and much aware about a
profession like teaching but you do not yet know that what is the niche level that is meant for you like and
the subjects you can carry off pretty well.
Action
Once you are done with small goals and the main aim, the next step remains to start implementing your
plans. Keep a very close track of your activities to make sure that you are on the right track and that by
following this path you are surely going to achieve you goal!
Career management is conscious planning of one’s activities and engagements in the jobs one
undertakes in the course of his life for better fulfilment, growth and financial stability. It is a
sequential process that starts from an understanding of oneself and encompasses occupational awareness.
An individual’s career is the sole source of one’s natural expression of self. One school of thought
describes work as the purpose of life and the source of one’s expression and the purpose of being or
existence. Yet others believe that there is a wide difference between an individual’s career and his life. In
any case, career is an integral component of one’s life and therefore the need for its management.
Career management is more or less like the organisational management; after all an organisation is
nothing but an assortment of individuals! The process of career management begins with the formulation
of goals and objectives those that are short term or meant to be achieved in the short run.
This is a tedious task compared to a long term career goal which is more or visionary in nature. Since the
objective is short term or immediate, it is more of action oriented. Second it demands achievement every
day, every moment. Again this step can be very difficult for those who are not aware of the opportunities
available or are not completely conscious of their talents. However more specific, measurable and
achievable the goals greater are the chances of the management plan bearing fruit.
Achievement of goal requires a well chalked strategy, which implies a plan of action to achieve the goal.
This has to be followed by drafting or establishment of procedures / policies / norms or rules that govern
action or practice.
The final step in the career management process is evaluation of the career management plan for ensuring
that progress is being made or if there is a need to introduce some changes in the latter.
One may also utilize the services of various career assessment tests at various stages to choose career
paths that are in tandem with ones likes and dislikes, strengths and weaknesses. These tests range from
ones that are small and brief to the ones that are exhaustive offering minute details. Some of the tests that
one may like to undergo are MBTI (Myers and Briggs Type Indicator), SDI (Strength Deployment
Inventory) and Multiple Intelligence among others.
The onus of career management is more on the individual self than the employer. Ensuring personal
development in terms of skills, competencies, change in attitude with time are things one may need to
take care of on one’s own. Short term goals need to met and evaluated. The long term career goals need to
be revised with the change in employment scenario and self; organisations may or may not be concerned
in a big way or aligned to your priorities in career and life. Often counselling is of major help in
evaluating a job and the future prospects and for establishing clarity of values for they undergo a change
with the passage of time!
MANPOWER PLANNING
Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for which they are suited
for the achievement of goals of the organization. Human Resource Planning has got an important place in
the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out
in a set procedure. The procedure is as follows:
Once these factors are registered by a manager, he goes for the future forecasting.
2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts
are known, planning can be done for the future manpower requirements in several work units.
The Manpower forecasting techniques commonly employed by the organizations are as follows:
i. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation (projecting
past trends), indexation (using base year as basis), and statistical analysis (central
tendency measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
iv. Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
v. Other methods: Several Mathematical models, with the aid of computers are used to
forecast manpower needs, like budget and planning analysis, regression, new venture
analysis.
3. Developing employment programmes- Once the current inventory is compared with future
forecasts, the employment programmes can be framed and developed accordingly, which will
include recruitment, selection procedures and placement plans.
4. Design training programmes- These will be based upon extent of diversification, expansion
plans, development programmes,etc. Training programmes depend upon the extent of
improvement in technology and advancement to take place. It is also done to improve upon the
skills, capabilities, knowledge of the workers.
Importance of Manpower Planning
Manpower Planning is a two-phased process because manpower planning not only analyses the current
human resources but also makes manpower forecasts and thereby draw employment programmes.
Manpower Planning is advantageous to firm in following manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing
can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training programmes
can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human resources
can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which ultimately
helps in the stability of a concern.
Following are the main obstacles that organizations face in the process of manpower planning:
1. Under Utilization of Manpower: The biggest obstacle in case of manpower planning is the fact
that the industries in general are not making optimum use of their manpower and once manpower
planning begins, it encounters heavy odds in stepping up the utilization.
2. Degree of Absenteeism: Absenteeism is quite high and has been increasing since last few years.
3. Lack of Education and Skilled Labour: The extent of illetracy and the slow pace of
development of the skilled categories account for low productivity in employees. Low
productivity has implications for manpower planning.
4. Manpower Control and Review:
a. Any increase in manpower is considered at the top level of management
b. On the basis of manpower plans, personnel budgets are prepared. These act as control
mechanisms to keep the manpower under certain broadly defined limits.
c. The productivity of any organization is usually calculated using the formula:
d. Exit Interviews, the rate of turnover and rate of absenteesim are source of vital
information on the satisfaction level of manpower. For conservation of Human Resources
and better utilization of men studying these condition, manpower control would have to
take into account the data to make meaningful analysis.
e. Extent of Overtime: The amount of overtime paid may be due to real shortage of men,
ineffective management or improper utilization of manpower. Manpower control would
require a careful study of overtime statistics.
Few Organizations do not have sufficient records and information on manpower. Several of those who
have them do not have a proper retrieval system. There are complications in resolving the issues in
design, definition and creation of computerized personnel information system for effective manpower
planning and utilization. Even the existing technologies in this respect is not optimally used. This is a
strategic disadvantage.
If it isn’t there, it doesn’t exist. Get in the habit of capturing everything as you start your business. After a
while, it will become automatic.
“Capture” is the most difficult step and it's the most important part of the process. Keep track of every
amount you spend on your business and every amount you take in as sales. Take care to keep personal
and business expenditures separate even if you always pay your business back when you pay personal
expenses out of that account.
Don’t worry at this point about doing anything with the information. Just get in the habit of gathering it.
Be sure everything you capture includes a description of the item, the amount, and the date.
Spend an hour every two weeks or so going through everything you've captured and made sure that all the
information is ready for recording.
Be sure you've included enough detail on what the expense was about so you can record it accurately. A
note for “paper, $3.55, 7/12” might not be enough. What was the paper for? Was this a newspaper you
bought for the office or did you buy a ream of paper for the computer?
Set up a specific time for a "check everything" appointment with yourself at the end of alternate weeks—
for example, every other Friday. Don’t wait too long or it will become more difficult to remember
information.
Recording means putting your financial information into a usable form. Turn everything you've checked
over to your bookkeeper to record or record it yourself. Do this monthly.
Input the information into a spreadsheet or accounting software. You might find that online software
works best for you—you and your bookkeeper can both see the information and discuss it. Just be sure
you get everything recorded each month so you can review it.
After your financial information has been recorded each month, print out four reports: a balance sheet, an
income statement (p&l), an accounts receivable aging report, and an accounts payable report.
Include a comparison with the same report information from last month with each report. Pay special
attention to specific information within these reports.
"Act” might mean doing nothing if everything looks all right. But at other times, it might mean making a
change.
Create trigger points where the information compels you to act. If you see liabilities increasing each
month for three months on your balance sheet, this probably means assets or expenses are also increasing.
Cut back on spending.
If you see that a particular expense is increasing as a percentage of sales on your income statement, ask
yourself why. You might want to cut spending on other expenses to maintain your profit level if the
increase is necessary.
Be assertive in going after slow payers that turn up on your accounts receivable aging report. The longer
you let a debt go unpaid, the less likely it becomes that you'll ever receive the money. Set up a collections
system to make sure you’re paid promptly. Don't let slow payers assume that you don’t want your money
because they haven't heard from you in a while.
As for your accounts payable, pay what you can as quickly as you can. You can often get discounts by
paying early. If you can’t pay all your bills, pay those that will cause you to incur penalties or that will
affect your credit rating if you're not prompt.
Even if someone else is responsible for paying bills, you're ultimately responsible for making sure your
business debts are paid.
As mentioned in our previous post, record keeping is very important for all business organizations to win
the competition and to keep costs under control. Every organization needs to follow a good plan as well
needs to implement a good system for record keeping. Here are some requirements that a record keeping
system must have.
There are four key steps of the HRP process. They include analyzing present labor
supply, forecasting labor demand, balancing projected labor demand with supply, and supporting
organizational goals.
HRP helps companies is an important investment for any business as it allows companies to remain both
productive and profitable.
KEY TAKEAWAYS
Human resource planning is what a strategy used by a company to company maintain a steady
stream of skilled employees while avoiding employee shortages or surpluses.
Having a good HRP strategy in place can mean productivity and profitability for a company.
There are four general steps in the HRP process: identifying the current supply of employees,
determining the future of the workforce, balancing between the supply and demand, and how to
implement the plans.
Understanding Human Resource Planning (HRP)
Human resources planning allows companies to plan ahead so they can maintain a steady supply of
skilled employees. That's why it is also referred to as workforce planning. The process is also used to help
companies evaluate their needs and to plan ahead to meet those needs.
Human resource planning needs to be flexible enough to meet short-term staffing challenges while
adapting to changing conditions in the business environment over the longer term. HRP starts by
assessing and auditing the current capacity of human resources.
The challenges to HRP include forces that are always changing such as employees getting sick, getting
promoted or going on vacation. HRP ensures there is the best fit between workers and jobs, avoiding
shortages and surpluses in the employee pool.
Investing in HRP is one of the most important decisions a company can make. After all, a company is
only as good as its employees. If it has the best employees and the best practices in place, it can mean the
difference between sluggishness and productivity and can lead to profitability.
To achieve organizational goals, human resource planning must use employee recruiting, development
and retention. It must also analyze the current workforce and consider how it aligns with future
employment needs. Attracting, training and retaining quality employees allows human resources to use
different types of planning to meet future workforce requirements.
Workforce Forecasting
To satisfy the organization's strategic objectives, human resources needs to consider what kind of
workforce will be needed in the future. Workforce forecasting is a major component of human resource
planning, and involves analyzing its current workforce and comparing it to future requirements to
discover what gaps and surpluses exist.
Recruiting
Achieving strategic objectives through the human resource element involves attracting and recruiting
quality employees. Benefits, compensation, organizational structure and employee growth or
advancement are key elements for finding and hiring good employees. Planning the recruiting process
with these elements in mind will assist with future employee selection.
Development
Development, or training, is a type of human resource planning that focuses on how it can improve the
current and future workforce. Training and development programs improve both specific work-related
skills and more general skills like customer service or sales training. Training and retraining programs
can also focus on reducing current and future liability issues related to workplace safety.
Retaining
Planning for the retention of employees can be an arduous task, as it is difficult to prevent employees
from looking at other employment opportunities. Human resources can help to reduce this likelihood by
planning retention programs that focus on employee recognition, rewards, advancement or growth, a
work-life balance and employee benefits.
LINE MANAGER
A line manager is an employee who directly manages other employees and operations while reporting to
a higher-ranking manager.[1] Related job titles are supervisor, section leader, foreperson and team leader.
He or she is charged with meeting corporate objectives in a specific functional area or line of business. As
an example, one type of line management at an automobile conglomerate might be the "light-truck
division", or even more specifically, the "light-truck marketing line" Similarly, one type of line
management at a financial services firm might be "retention marketing" or "state municipal bond funds"
A line manager oversees other employees and operations of a business while reporting to a higher-ranking
manager. The "line manager" term is often used interchangeably with "direct manager."
The line or direct manager plays an important role in the operation of many businesses, supervising and
managing workers on a daily basis and acting as a liaison between employees and upper management.
A line manager is responsible for managing employees and resources to achieve specific functional or
organizational goals. Some of these include:
Good line managers are actively involved with their team members, providing support, offering
encouragement, and delivering positive and constructive feedback on a daily basis. Line managers
directly influence employee satisfaction and engagement and, as a result, organizational productivity and
even customer satisfaction.
Although senior management is involved in developing and approving a firm's strategy, the hard work of
implementing that strategy takes place at lower levels of the organization.
Line managers are critical cogs in ensuring that new programs are implemented in a timely and effective
manner. They're well-positioned to identify problems with the strategy execution programs. The input of
a line manager is essential for organizational learning.
Talent development is a key priority for any organization, and line managers have a good bit of control
over the identification, development, and promotion of talented professionals on their teams. The next
generation of line managers often emerges from these teams.
Career Path
It's common for top-performing line managers to either rise through the ranks of management or broaden
their responsibilities to encompass other areas of a firm's operations.
Line managers' detailed knowledge of business processes and how the organization works can make them
ideal candidates for broader general management roles.
DELPHI METHOD
The Delphi method is a forecasting process framework based on the results of multiple rounds of
questionnaires sent to a panel of experts. Several rounds of questionnaires are sent out to the group of
experts, and the anonymous responses are aggregated and shared with the group after each round. The
experts are allowed to adjust their answers in subsequent rounds, based on how they interpret the "group
response" that has been provided to them. Since multiple rounds of questions are asked and the panel is
told what the group thinks as a whole, the Delphi method seeks to reach the correct response through
consensus.
The Delphi method is a process of arriving at group consensus by providing experts with rounds of
questionnaires, as well as the group response before each subsequent round.
How the Delphi Method Works
First, the group facilitator selects a group of experts based on the topic being examined. Once all
participants are confirmed, each member of the group is sent a questionnaire with instructions to
comment on each topic based on their personal opinion, experience, or previous research. The
questionnaires are returned to the facilitator who groups the comments and prepares copies of the
information. A copy of the compiled comments is sent to each participant, along with the opportunity to
comment further.
At the end of each comment session, all questionnaires are returned to the facilitator who decides if
another round is necessary or if the results are ready for publishing. The questionnaire rounds can be
repeated as many times as necessary to achieve a general sense of consensus.
However, while the Delphi method allows for commentary from a diverse group of participants, it does
not result in the same sort of interactions as a live discussion. A live discussion can sometimes produce a
better example of consensus, as ideas and perceptions are introduced, broken down and reassessed.
Response times with the Delphi method can be long, which slows the rate of discussion. It is also possible
that the information received back from the experts will provide no innate value.
KEY TAKEAWAYS
The Delphi method is a process used to arrive at a group opinion or decision by surveying a panel
of experts.
Experts respond to several rounds of questionnaires, and the responses are aggregated and shared
with the group after each round.
The experts can adjust their answer each round, based on how they interpret the "group response"
provided to them.
The ultimate result is meant to be a true consensus of what the group thinks.
Key characteristic
The following key characteristics of the Delphi method help the participants to focus on the issues at hand
and separate Delphi from other methodologies: in this technique a panel of experts is drawn from both
inside and outside the organisation. The panel consists of experts having knowledge of the area requiring
decision making. Each expert is asked to make anonymous predictions.
Anonymity of the participants
Usually all participants remain anonymous. Their identity is not revealed, even after the completion of the
final report. This prevents the authority, personality, or reputation of some participants from dominating
others in the process. Arguably, it also frees participants (to some extent) from their personal biases,
minimizes the "bandwagon effect" or "halo effect", allows free expression of opinions, encourages open
critique, and facilitates admission of errors when revising earlier judgments.
Structuring of information flow
The initial contributions from the experts are collected in the form of answers to questionnaires and their
comments to these answers. The panel director controls the interactions among the participants by
processing the information and filtering out irrelevant content. This avoids the negative effects of face-to-
face panel discussions and solves the usual problems of group dynamics.
Regular feedback
The Delphi Method allows participants to comment on the responses of others, the progress of the panel
as a whole, and to revise their own forecasts and opinions in real time.
Role of the facilitator
The person coordinating the Delphi method is usually known as a facilitator or Leader, and facilitates the
responses of their panel of experts, who are selected for a reason, usually that they hold knowledge on an
opinion or view. The facilitator sends out questionnaires, surveys etc. and if the panel of experts accept,
they follow instructions and present their views. Responses are collected and analyzed, then common and
conflicting viewpoints are identified. If consensus is not reached, the process continues through thesis and
antithesis, to gradually work towards synthesis, and building consensus.
During the past decades, facilitators have used many different measures and thresholds to measure the
degree of consensus or dissent. A comprehensive literature review and summary is compiled in an article
by von der Gracht.[13]
Applications
Use in forecasting
First applications of the Delphi method were in the field of science and technology forecasting. The
objective of the method was to combine expert opinions on likelihood and expected development time, of
the particular technology, in a single indicator. One of the first such reports, prepared in 1964 by Gordon
and Helmer, assessed the direction of long-term trends in science and technology development, covering
such topics as scientific breakthroughs, population control, automation, space progress, war prevention
and weapon systems. Other forecasts of technology were dealing with vehicle-highway systems,
industrial robots, intelligent internet, broadband connections, and technology in education.
The Delphi method has also been used as a tool to implement multi-stakeholder approaches for
participative policy-making in developing countries. The governments of Latin America and the
Caribbean have successfully used the Delphi method as an open-ended public-private sector approach to
identify the most urgent challenges for their regional ICT-for-development eLAC Action Plans.[15] As a
result, governments have widely acknowledged the value of collective intelligence from civil society,
academic and private sector participants of the Delphi, especially in a field of rapid change, such as
technology policies.
Use in patent participation identification
In the early 1980s Jackie Awerman of Jackie Awerman Associates, Inc. designed a modified Delphi
method for identifying the roles of various contributors to the creation of a patent-eligible product.
(Epsilon Corporation, Chemical Vapor Deposition Reactor) The results were then used by patent
attorneys to determine bonus distribution percentage to the general satisfaction of all team members. [citation
needed]
Use in policy-making
From the 1970s, the use of the Delphi technique in public policy-making introduces a number of
methodological innovations. In particular:
As a project manager, it is important to think about what future events may impact your projects. These
events may be positive or negative, so understanding them allows you to prepare, and put plans in place
to deal with them. But how can you forecast the future with any degree of certainty? The Delphi
Technique can help.
The Delphi Technique is a method used to estimate the likelihood and outcome of future events. A group
of experts exchange views, and each independently gives estimates and assumptions to a facilitator who
reviews the data and issues a summary report.
The group members discuss and review the summary report, and give updated forecasts to the facilitator,
who again reviews the material and issues a second report. This process continues until all participants
reach a consensus.
The experts at each round have a full record of what forecasts other experts have made, but they do not
know who made which forecast. Anonymity allows the experts to express their opinions freely,
encourages openness and avoids admitting errors by revising earlier forecasts.
This article looks at how to run a Delphi session. On completion of this guide, you will be able to run a
session enabling you to predict future events and their likely impact on your projects.
The technique is an iterative process, and first aims to get a broad range of opinions from the group of
experts. The results of the first round of questions, when summarised, provide the basis for the second
round of questions. Results from the second round of questions feed into the third and final round.
The aim is to clarify and expand on issues, identify areas of agreement or disagreement and begin to find
consensus.
The first step is to choose your facilitator. You may wish to take on this role yourself, or find
a neutral person within your organisation. It is useful to have someone that is familiar with research and
data collection.
The Delphi technique relies on a panel of experts. This panel may be your project team, including the
customer, or other experts from within your organisation or industry. An expert is, any individual with
relevant knowledge and experience of a particular topic. ¹
What is the problem or issue you are seeking to understand? The experts need to know what problem they
are commenting on, so ensure you provide a precise and comprehensive definition.
Ask general questions to gain a broad understanding of the experts view on future events. The questions
may go out in the form of a questionnaire or survey. Collate and summarise the responses, removing any
irrelevant material and looking for common viewpoints.
Step 5: Round Two Questions
Based on the answers to the first questions, the next questions should delve deeper into the topic to clarify
specific issues. These questions may also go out in the form of a questionnaire or survey. Again, collate
and summarise the results, removing any irrelevant material and look for the common ground.
Remember, we are seeking to build consensus.
The final questionnaire aims to focus on supporting decision making. Hone in on the areas of agreement.
What is it the experts are all agreed upon?
You may wish to have more than three rounds of questioning to reach a closer consensus.
After this round of questions, your experts will have, we hope, reached a consensus and you will have a
view of future events. Analyse the findings and put plans in place to deal with future risks and
opportunities to your project
HR REPORTING
What Is An HR Reporting
There are various KPI examples, but by working with HR-driven metrics, it’s possible to spot trends,
identify inefficiencies, capitalize on strengths, and fortify weaknesses in a number of key areas, making
your human resources efforts, activities, and initiatives the best they can possibly be for departments
across the organization.
It’s clear that a human resources report is critical if you want your HR department to thrive our data-rich
age. To put this into perspective, here are 6 primary reasons why you should embrace the power of human
resource reports:
Comprehensive business dashboards provide companies with the ability to forecast future HR events for
risk mitigation and effective planning via predictive analytics capabilities. There are some key reasons to
utilize human resources reports during specified time periods, such as monthly and annual:
Identify problem areas: HR reports provide a great way to track issues in an analysis-driven,
transparent method. Managers and other business professionals are able to determine turnover rates per
manager and pay close attention to employee retention efforts, and HR departments can leverage the
information to define and implement improvements.
Manage information: a monthly or an annual HR report template will provide in-depth insights
on the ongoing developments within various teams and departments. This can include an indication of
risks, such as an abnormally long replacement time period when an employee is about to leave the
business.
HR monitoring: Businesses can follow critical metrics within their workforce and discover
trends and opportunities during the early stages. Also, problems can be handled before they negatively
affect the organization.
Effective planning: HR reporting is an exemplary way to plan strategies and initiatives in areas
from recruitment to employee engagement and beyond by painting a clear, data-driven picture that will
ultimately allow you to make informed decisions that yield real long-term results.
Predictive forecasting: Building on the previous point, HR reporting also offers a viable means
of predictive forecasting through the analysis of digestible data that aligns with both your business’s
short-term and long-term goals. If you’re able to make accurate, informed decisions backed by quality
visual data, you will perform better – it’s that simple.
Enhanced communication: The flexible user-friendly nature of HR monthly reports or annual
HR reports means that everyone working both within and outside your human resources department will
be able to extract value from the data before them, and if required, access a live dashboard from a number
of devices or media 24/7. This, in turn, will improve communication throughout the organization.
An Economist Intelligence Unit survey commissioned by KPMG International revealed that 85% of the
418 global executives surveyed believe their HR team doesn’t excel at providing insightful and predictive
analytics.
According to KPMG, despite having a clear understanding of the importance and value of HR analytics,
HR practitioners “continue to offer generic and basic operational and transactional measurements –
metrics that provide little in the way of predictive data or actual insights that could have a positive impact
on the success of the organisation”.
This could be attributed to the complexities brought on by globalisation and Big Data. In this blog, we
discuss the five key elements to effective HR reporting and the HR metrics you need to analyse within
your organisation..
Regardless of Big Data, the key to an organisation’s reporting accuracy is ‘good data’. It is therefore
prudent that HR functions in organisations focus on acquiring and storing good quality data, and ensure
their data acquisition process and storage systems are designed to support this. To uphold a high standard
of quality, HR Managers should set a standard, create simple codes and consistent definitions and control
the data promptly and regularly.
2. Integrated Data
Due to the rise of Big Data, organisations are increasingly facing the problem of fragmented data brought
on by complex data architecture models and disparate storage databases. To simplify reporting, HR
Managers will have to clean up their data. According to KPMG, with the existence of cloud-based HR
management systems, organisations can now maintain all of their HR data in a single, standard format, at
a fraction of the cost and time taken by older systems. This will help organisations create a bank of
integrated data and make HR reporting much less tedious.
3. Industry Information
Internal data alone is not enough to provide insightful information, i.e., reports of absenteeism or
employee turnover don’t tell you anything that interesting. External data will provide the right context
and give you the big picture of the performance of the organisation within the market overall. To know
the true contribution of employees to the business, HR Managers must constantly measure results against
previously set priorities, existing market conditions and competitor performance.
4. Skillful HR Team
For HR reporting to be truly effective in delivering valuable insight, your HR team must include a
specialist in statistical analysis. In addition, the team needs to use their knowledge of the industry and of
the organisation to determine the right metrics to measure – essentially, ask the right questions. KPMG
suggests HR managers need to ask themselves the question, “What do we want to know?” and test
relevant questions in order to gain real insight from a combination of measurements.
Once you have good quality and integrated data, market knowledge, and the right team in place to draw
real insights from that data, the last piece of the puzzle is the HR management tool. The ideal tool should
come with the following features: