Answers – Essential of HRM

Arpit Jain

1. Introduction

All organizations are essentially a combination of physical and human resources (HR). Material
means money or machines that an organization provides for production or trade. Human resources,
on the other hand, refers to the knowledge, education, skills, training, and skills of members of an
organization. Hunan's resources are the most precious and unique assets of Aniyase. It is the
organization that successfully manages the human resources of the organization. It's an exciting,
dynamic and challenging role, especially now that the world is a global village and the economy is
fluid. The HR function is further complicated by the scarcity of qualified resources and the rising
expectations of the modern workforce. Human Resources Goals at Mirage Investments Ltd

Personnel Planning: Personnel Planning is a future-oriented function. We try to anticipate talent

needs, taking into account market fluctuations, demand forecasts, availability of suitable candidates,
etc. According to Terry, Human Resources Planning (HRP) is a set of tasks that involve estimating
how many qualified people are needed to carry out assigned activities. How many people can use it?
And what will it take to ensure that the supply of talent will match the demand for talent at the
appropriate time in the future? Job analysis provides information about the number of people hired
for various jobs. In this way, it helps to anticipate staffing needs in your organization. HRP is the
overall organizational planning subsystem. Organizational planning includes management activities
that set future goals for the company and determine the appropriate means of achieving those
goals. For example, if a company plans to open 10 new stores and needs about 25 employees per
store, the HR department will hire 250 employees and spend about Plan to interview 300-400
people.

Training and Development: Effective training and development practices can help enhance employee
skills and competencies and encourage new and innovative ideas. This translates into overall quality,
better customer service, increased productivity and educated organizations. Furthermore, training
and capacity building create an organizational culture characterized by warm industrial relations,
teamwork, cooperation and dynamism between different subunits. As new people join the
organization, they need to be trained in specific areas to meet expectations and contribute to the
overall success of the organization. HR is responsible for creating training modules and materials and
conducting training for new hires. Workplace analysis serves as input for the design of training
programs. It also helps identify employee training needs by comparing an employee's existing skills
and knowledge to job requirements. For example, new hires know nothing about the company's
culture, business, customers, founders, history, etc. Therefore, a new hire onboarding process is
necessary and getting the right training when starting a job will help you understand the job and
work accordingly. Recruitment and Selection: Companies need to implement recruitment processes
so that they can attract applicants in a cost-effective manner. Companies establish initial contact
with potential candidates through recruitment. An organization's hiring policy is derived from its
personnel policy. In other words; HR policies provide guidance for planning hiring. There are many
factors that influence recruitment programs. These factors can be classified into organizational or
internal factors and environmental or external factors. Job analysis provides a realistic preview of
jobs. It also helps attract applicants to specific positions within the company and select the people
who best fit the requirements of the position. For example, in a recruiting department, HR
professionals expect to find top talent within their company and hire them for various positions.

Compensation and Benefits: Compensation includes all compensation that employees receive for
their contributions to the organization in the course of their work. The idea of a good compensation
philosophy is to attract, retain and motivate quality employees. Compensation includes base salary
incentives, bonuses and benefits, and is determined based on performance evaluation.
Compensation systems aren't for every type of job within an organization, but they are for most.
Compensation strategy is a key point for organizations because building a competitive and effective
organization depends solely on it. Combining your corporate strategy with other business and
people strategies can lead to your company's success or failure. Job analysis also helps determine
employee compensation based on job type, required skills and competencies, associated risks, etc.
For example, not all employees receive the same compensation, so HR assesses jobs and
responsibilities and sets compensation according to job category.

Good working relationships: Today, the primary responsibility for maintaining good working
relationships lies with HR managers. If necessary, the Human Resources Manager will assist in
collective bargaining, joint consultation and dispute resolution. This is because he has a wealth of
personal information and a practical knowledge of various labor laws. HR managers work closely
with various committees on discipline, health, safety, grievances, etc., so they can do a lot to
maintain a sense of security within the organization. He assists in establishing grievance procedures
for resolving employee grievances. For example, certain issues may arise between employees or
with employers during the working day, and the human resources department will step in and try to
provide an effective solution. This is how we maintain good relationships at work.

Conclusion

In conclusion, HR departments play a very important role in ensuring that an organization functions
and all major HR functions run smoothly and effectively. The HR department consists of various
activities as specialists, facilitators, change agents and controllers.

2. Introduction

in the given case. Lux Group, a luxury hotel chain, wants to reorganize their personnel structure and
I need to advise them on this. Various activities are now proposed to arise under the new sub-
departments of the Human Resources Department. I will talk about these activities later, but before
doing that, I would like to give you an update on the changing role of talent in India. The changing
role of talent in India

There have been some changes in the role of HR in India. HR managers are now seen not only as
compliance assurance bodies, but also as strategic partners for organizations. They are involved in all
important business decisions of the company. Your role is limited to designing organizational
structures to meet changing market needs, attracting top talent, evaluating performance, retaining
top talent, and ensuring employee motivation and engagement. Not a thing. The tasks that HR
departments have to undertake in India are increasing. They are employee change agents,
consultants, motivators, trainers and spokespersons. Personnel department structure

An organization's success depends entirely on the people who work for it. Organizations survive and
thrive on their people. Companies that have carved out their own niche by developing quality
products do not attribute their success solely to new technologies and processes. Rather, it is the
result of the dedicated service of a loyal and dedicated staff. An organization without employees is
unthinkable. So; of all the resources in an organization, people are the most important asset. All
activities to make effective use of resources are carried out by people within the organization.
Efficient management of employees is therefore the most important duty or task of a manager.

While finalizing the structure of HR department, it is important to take care of certain points such as

 First of all, you should identify all the critical issues which may affect the business growth
and accordingly, the HR structure should be developed. By identifying the main areas of
focus, you are already laying the groundwork for a future HR structure.
 You should also define the HR processes and for this, you should document all your current
HR processes, including responsibilities and relevant tasks and describe how you want to
work with external service providers.
 To plan the staffing needs, proper planning should be done with the management.

Activities under the new sub divisions in the HR department

Personnel transaction management: The activities under this sub-division are:

 Centralised time keeping

 Benefits administration
 Analysis and tracking of HR metrics
 Payroll management

Example: In most of organizations, we can find this activity called centralized time keeping where
responsible team would utilize top talent to streamline time and attendance data entry, reduce
payroll defects and provide consistently high service levels. Time keeping will support and manage
time and attendance matters for all the Employees. Many big corporates such as Amazon, Infosys
are having dedicated centralized timekeeping team.

All companies provide various benefits to their employees and this is called benefits administration.
Benefits administration typically falls under the responsibility of Human Resources and involves
managing health insurance, retirement accounts, vacations, paid time off and parental leave.

In many organizations, performance can be judged by various HR metrics and these metrics focus on
different areas like turnover, training, return on human capital, costs of labor, and expenses per
employee. Payroll management is the basic function followed by all the companies irrespective of
the size.

Staffing management: The staffing management activities are as follows:

• Recruitment
 Selection
• Hiring
 Transfers and promotions

Organisational development; The activities under this sub-division are listed as follows:

• Talent management
• Employee assistance and referral
• Employee performance and discipline
• Equal employment opportunity
Ethics and labour: This sub-division is responsible for the following activities:

• Labour relations
• Labour contract administration
• conduct
• Regulatory and statutory requirements

Training and development: This sub-division performs the following activities:

• Corporate learning
• Mandatory certification training.
• Leadership conferences

Conclusion

Finally, it can be said that, there are various activities and sub-activities involved in HR and every firm
should design the structure in such a way so that all activities can be performed efficiently and
effectively.

3. (a) Introduction

Demand forecasting

Forecasting staffing requirements is the process of estimating the quantity and quality of future
workforce needs. This forecast is derived from long-term business plans and translated into activity
levels for each function and division. Demand forecasts depend on several factors, including
competition (international and domestic), economic and legal conditions, budgetary constraints,
production levels, new products and services, and organizational structure. Qualitative methods for
forecasting staffing requirements

Delphi Technique: This is one of the most effective ways to anticipate staffing needs. In this method,
a pre-selected group of experts is responsible for forecasting demand. These experts provide input
on staffing requirements. A report will be compiled based on the responses from these experts. This
process continues until all experts agree on estimated staffing needs. The Delphi methodology aims
to reduce subjectivity in forecasting and is suitable for organizations where frequent technology
changes have a large impact on staffing needs. This approach takes into account staffing
requirements identified by an expert group. H. Administrators. HR professionals record staffing
requirements and summarize various responses into reports. This process continues until all experts
agree with the human assessment.

Management review These projections are reviewed and agreed with the department

Responsible for resource requirements. This is based on their experience and the oversight they
have with their current employees. At the end of the meeting, decide how many people you need.
This is intended to inform Human Resources of future staffing needs. This can be done through a
"bottom-up" or "top-down" approach. In the bottom-up approach, the manager first submits a
quote to the manager. They review it and present it to executives who review the estimates and
determine the company's forecasts. In a top-down approach, top managers calculate the number of
personnel an organization needs, taking into account the capacity of the organization.
Expert forecasts: Sometimes HR personnel seek inputs from professional HR experts regarding future
staffing requirements of their organisations. These experts forecast an organisation's human
resource requirements, skills required to meet organisational goals and objectives, experience
required, etc. Here, it should be noted that these HR experts can be internal or external to an
organization.

Time series: Past staffing levels (instead of work load indicators) are used to project future human
resource requirements. Past staffing levels are examined to isolate cyclical variation, long-term and
random movement, Long-term trends are then extrapolated or projected using moving average,
exponential smoothing or regression technique. This is the technique used by most of the
organizations in real-life world.

b) Introduction

HR planning

Personnel planning is a future-oriented function. We try to anticipate talent needs, taking into
account market fluctuations, demand forecasts, availability of suitable candidates, etc. According to
Terry, Human Resource Planning (HRP) is a set of tasks that involve estimating how many talented
people are needed to complete assigned tasks. How many people can use it? And what needs to be
done to supply staff at the right time for future staffing needs.

Simply put, HRP is the process of forecasting an organization's future needs and supply of the right
number and type of talent. Only then can the HR department begin the recruitment and selection
process. HRP is the overall organizational planning subsystem. An organizational plan includes
management activities that set future goals for the company and determine the appropriate means
of achieving those goals.

Demand forecasting

HR demand forecast is the process of estimating the future quantity and quality of people required.
This forecast is derived from long term corporate plans translated into activity levels for each
function and department. Demand forecast depends upon several factors such as: competition (both
foreign and domestic), economic & legal climate, budget constraints, production levels, new
products and services, organisational structure and so on.

Trend analysis method of demand forecasting

In trend analysis, the future demand for human resources is projected on the basis of past business
trends regarding a business factor. If there is a trend of increasing sales volume for past five years,
then the company may forecast the same for the current year and hire more employees. Also, if the
trend shows that the demand for the organization's products is decreasing, then the company may
hire only a few employees or not create any vacancies.

The Index/Trend analysis involves the following steps:

1. Select the appropriate business/operational index - Select a readily available business index, sales
level that is known to have a direct influence on the organizational demand for labour.

2. Track the index over time - Once the index has been selected, it is necessary to go back

in time for at least four or five most recent years.

3. Track the workforce size over time - Record the historical figures of the total number of AAPKI
EDUCATION employees.

4. Calculate the average (or most recent) ratio of the business index to the workforce size

('Employee Requirement Ratio') - In this step, the ratio of number of employees required for each
thousand rupees of sales is obtained by dividing each year's number of employees by the level of
sales.

5. Calculate the forecasted HR demand - Multiply the annual forecasting for the business index times
the average employee requirement ratio for each future year to arrive at forecasted demand of
labour