Human Resource

Management
Financial
Resources

Organizational
Physical
Resources Goals

Human
Resources
WHAT IS HR?????
Human resources is the set of
individuals who make up the
workforce of an organization, business
sector or an economy.
Other terms sometimes used include
"manpower", "talent", "labor" or
simply "people".
What is HRM?
 The process of acquiring, training, appraising, and
compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.
 A management function that helps managers recruit,
select, train and develop members for an organization.
 HRM may be defined as a set of policies, practices and
programmes designed to maximize both personal and
organizational goals.
Evolution of HRM assets
Procure,
develop and
motivate

Procure and develop

Nature of HRM
Integral part of process of management.
Comprehensive Function
Pervasive Function
People Oriented
Based on human relations
Continuous process
Science as well as art
Recent origin
Interdisciplinary
Basic to all functional areas.
 Introducti
on to
HRM

Prospects Employee
of HRM Hiring

Scope
of
HRM Employee
Industrial
Relations
Remune-
ration

Employee Employee
Mainte motivatio
-nance n
 Personnel
Aspect
Welfare
Aspect

Industrial
Relation
Aspect

Scope of HRM
Objectives of HRM Personnel
Objectives

Functional
Objectives

Organizational
Objectives

Societal
Objectives
Functions of HRM w.r.t objectives
Societal
Objectives

Legal
Compliance

Union-
Management
Relations
Functions
HRP

Employee
Relations

Selection

Organizational T nd D

Appraisal

Placement

Assessment
Functions
Functional

Appraisal

Placement

Assessment
Functions (cntd…)
T nd D

appraisal

Persona Placement
l
Compensa
tion

Assessmen
t
Policies, Principles and Procedures
Policy : A plan of action.. A statement of action
committing management to a general course of
action.
Principle: fundamental truth established by
research, investigation and analysis….guide the
managers in formulating policies, programs
and procedures.
Procedures: a method for carrying out a
policy….
Importance of HRM

Importance for organization

Importance for employees
Importance for society.
Compare HRD and HRM
HRM HRD

Entire management Subset of HRM

process

Scope is wider Narrow scope

Emphasis on employee as a Training and Development

whole of employees

Takes decisions Depends on decisions of

HRM
Limitations of HRM
Recent origin

Lack of Top Management Support

Improper Implementation

Inadequate Development Programmes.

Inadequate Information.
Systems approach to HRM
An enterprise cannot work in isolation.
Has to adjust its working to suit the environment.
Subsystems: Departments that are created in an
organization to carry out its business effectively.
Each subsystem has a number of further subsystems.
Important Subsystems
HR system
Production System
Finance System
Marketing System
Research and development System
Human Resource Management System
Transforms inputs to outputs.
Personnel Productive Human
Resource

HR system interacts closely with all other subsystems.

Quality of people in all subsystems depends upon
policies of HRM System
Organizational Design

Compositi
Place
on
Place Of HR
Size Matters!!!!
Department
In case of a small unit…………
Small unit
owner

Production Sales Office Accountan

manager Manager Manager t

Personnel
assistant
 Large Unit

Chairman /
MD

Director Director Director Director Director

Production Finance HRM Marketing R&D
Composition
Director HRM

Manager - Manager Admin Manager - HRD Manager - IR

Personnel

HR PR Appraisal
P
Hirin Canteen
Training
g
Medical And
Developmen
Grievance
t
handling Welfare

Compensatio Transport
n
Legal
HRM Environment
Proactive not Reactive………
Factors affecting HRM Environment
External Environment
Internal Environment
 External Environment
Economic Factors

SUPPLIERS CUSTOMERS COMPETITORS GLOBALIZATION

Political – Legal Factors

Social and Cultural Factors
Technological Factors
Unions
Professionalism
Internal Environment

MISSION

POLICIES

ORGANIZATIONAL
CULTURE

ORGANIZATIONAL
CONFLICT
Human Resource Planning
What???  When???  Where????

HOW???
HRP……
The process by which a management determines how
an organization should move from its current
manpower position to its desired manpower position.

Right Number and Right Kind of people 

Right Places  Right Time  to do things which
result in both the organization and individual
receiving maximum benefit.
Objectives of HRP
Assessing manpower

Assessing skill requirement.

Determining T&D needs

Anticipating shortage and surplus of staff.

Controlling wage and salary costs

Optimum use of HR
Process of HRP
Analysis of
Preparing
objectives and Manpower
manpower
strategic plans forecasting
inventory
of the company

Appraisal of
Manpower T& D
manpower
plans Programmes
planning
Analysis of objectives and strategic plans
Must be integrated with other business policies.
Analysis of each plan into sub-plans and detailed
programmes.
Check out:
Future organization structure.
Changes in organization structure.
Preparing manpower inventory
Manpower inventory: refers to assessment of present
and potential qualifications of present employees.
Avoid situation of over/under staffing.
Analysis of current manpower supply. By Department
 By Function  By Occupation  By Qualification…
Helps to find out gaps…
Manpower Forecasting
Employment • Analysis of staff
Trends during past 5 years

Replacement • Death, resignation

Needs • retirement

• Utilization of
productivity existing manpower
Manpower Forecasting
• A situation when person fails
Absenteeism to come for work when he is
scheduled for work.

• Timely steps needed.

Expansion
and Growth
• Workload analysis to be done.
Work Study
Manpower Plans
Decide required Develop
number of programmes
people. and strategies.

Development
plans are
designed
Training and Development Plans
Not only for new employees but also for the old ones.
Tapping of talent required.
The organization has no choice whether to provide
training or not…..but the only choice is to decide the
method/ technique of training.
Appraisal of Manpower Planning
Monitor and control….
Involves allocation and utilization of HR over time…
Reveal deficiencies and helps to take corrective action
on time…
Serves as a base for future manpower planning.
Types of HRP
Short Term HRP - to match the individuals with the
job.
Long Term HRP – to fulfill future vacancies.
Short Term HRP
A weak A strong An unexpected
Incumbent incumbent vacancy.

Assigning
Changing of
additional
the man
duties

Change in Assigning
contents of some special
the job problems

Changing
the job and Advice
the man

Removal of Change in
incumbent. job
Long Term HRP

Projecting
Taking stock
Manpower Recruitment Manpower
of Existing
Requirement and Selection Development
Manpower
s
Benefits of HRP
Reduced Labor Costs.

Optimum Utilization of manpower

Identification of Gaps in existing manpower.

Improvement in overall business planning.

Career Succession Planning

Creates awareness in an organization.

Growth of Organization

Beneficial to the country.

Job Analysis
 Definitions…
Job analysis involves identification and precisely
identifying the required tasks, the knowledge and skills
necessary for performing them and the conditions under
which they can be performed.
Richard Henderson
A systematic exploration of activities within a job. It is a
basic technical procedure. One that is used to define the
duties, responsibilities and accountabilities of a job.
S P Robbins
Data relating to job can be grouped under:
Job Identification

Nature of job

Operations involved

Materials and equipment required

Personnel qualities required

Relation of job with other jobs.

Process
Obtaining
Organizing and current job Conducting
planning design “needs research”
information

Establishing Collecting job Redesigning the

priorities data job

Preparing job
Developing job
descriptions and
specifications
classifications
 Techniques
Quantitative
Qualitative Methods
• Questionnaire • PAQ
• Observation • MPDQ
• Interview • FJA
• Record
• Critical Incidents
• Job Performance
PAQ – Position Analysis Questionnaire
MPDQ – Management Position Description
Questionnaire
FJA – Functional Job Analysis
Worker oriented approach.
Examines fundamental components of ‘data, people
and things’.
Identifies performance standards and training
requirements.
4 dimensions
Extent to which –
 Specific instructions are necessary to perform the job
 Reasoning and judgement are required.
 Mathematical ability is required.
 Verbal and language facilities are required.
 Job
Description

Job
Analysis
Job
Specification
Job Description
The first and immediate product of job analysis is job
description. This document is basically descriptive in
nature and constitutes a record of existing and pertinent
job facts.
Contents of JD
Proper Job Title

Job Summary

Job Location

Duties and responsibilities

Machines, Tools and Materials

Working Conditions

Relation to other jobs

Job Specification
A statement of minimum
acceptable human qualities
necessary to perform a job
properly.
Also known as “”Standard of
personnel for the selection”.
What it includes???
Physical Characteristics.
Psychological and Social
Characteristics
Mental Characteristics

Personal Characteristics.
 Job Evaluation
A systematic way of determining the value/worth of a
job in relation to other jobs in an organization.
Job Evaluation v/s Performance Appraisal

POINT JOB EVALUATION PERFORMANCE APPRAISAL

DEFINE RELATIVE WORTH OF JOB RELATIVE WORTH OF JOB

HOLDER

AIM DETERMINE WAGES RATES FOR DETERMINE INCENTIVES AND

DIFFERENT JOBS REWARDS

SHOWS HOW MUCH A JOB IS WORTH HOW WELL AN INDIVIDUAL IS

DOING AN ASSIGNED WORK
Process of Job Evaluation
Gaining Acceptance

Creating Job Evaluation team

Finding jobs to be evaluated.

Analyzing and preparing Job Description

Selecting method of evaluation

Classifying Jobs

Installing the programme

Reviewing Periodically
Methods of Job Evaluation
• Ranking Method
Qualitative • Job Grading
Method

• Point System
Quantitative • Factor-Comparison
Methods
Ranking Method
All jobs are ranked in order of their importance from
simplest to the hardest order, each job being harder
than the previous one in the sequence.
Method:
 Preparation of Job Description.
 Selection of Raters
 Selection of key jobs
 Ranking of all jobs.
Rank Monthly salary

Accounts Officer -------

Accountant ------

Senior Accounts Officer -----

Accounts clerk -----

Computer operator -----

Purchase Assistant -----

Office Boy -----

Peon -----
 Merits Demerits
• Easy to • Not based on
understand and any standard
explain criterion.
• Requires less • Chances of
time inaccurate
• Economical ranking
• Leaves out some
factors
Job Grading Method
A number of pre-determined grades or classifications
are decided by the committee and each job is assigned
to one of the grades.
Grades like – skilled, unskilled, clerical,
administrative..etc..
For each grade there is a different rate of wages.
Steps :
Preparation of grade descriptions
Selection of key jobs
Grading key jobs
All job are put in relevant grades.
Grade Description

1 Very simple tasks requiring minimum mental ability. Basically

consisting of manual work.

2 Jobs requiring clerical work. Basically consisting of desk work

and minimum manual work. Minimum training required.

3 Straight forward tasks, but requiring to apply established

procedures and to guide others.

4 Routine work but involving some elements of responsibility

for answering non-routine queries and exercise some measure
of control.
5 Involve decision making and administrative work.
Professional qualifications are required.
 Merits Demerits
• Systematic criterion • Not suitable for
is followed. large organizations
• Simple to • With increase in
understand and number of jobs,
operate difficulty increases.
• Easy to determine • Likelihood of
pay scales. human bias.
• Used in government
services
Factor Comparison Method
Each job is rated according to series of factors like
mental effort, physical effort, skill needed,
responsibility, working conditions etc.
Different factors are assigned different weights by
importance.
Pay will be assigned by comparing weights of factors
Steps involved
Select key jobs
Find factors for evaluation
Rank selected jobs under each factor
Assign value to each factor
Determine wage rates for each job
All other jobs are compared with the list of key jobs.
 Merits Demerits
• Analytical • Difficult to
• Relative and understand,
valid explain and
• Money values are operate.
assigned in fair • Time consuming.
way • Use of same
• Flexible criteria to assess
all jobs.
Point Method
Most frequently used.
Process:
Select key jobs and identify factors common to all the
identical jobs.
Divide each major factor into number of sub factors.
Assign point values to degrees after fixing relative value
for each key factor.
Degree Define

1 Able to carry out simple calculations, High school educated

2 Does all clerical Operations, computer literate, graduate

3 Handles mail, develops contacts, takes initiative, post graduate.

Find maximum number of points assigned to each job.
This would help in finding out relative worth of job.
 once the worth of job is expressed in terms of points,
the points are converted into money values keeping in
mind the daily/hourly wage rates.
 Merits Demerits
• Superior and • Complex
widely used • Time
• Elimination of consuming
bias at every
stage
• Remains
unaffected even
if jobs change