8.

0 Human Resource Management

Lecture Objectives
 To appreciate the concept of human resources
 To learn about the importance of employee
recruitment
 To discover methods of appraising performance

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 Definition of Human Resource
Management

 Human Resource Management is the planning,

organizing, directing and controlling of the
procurement, development, compensation,
integration, maintenance and separation of human
resources to the end that individual, organization and
social objectives are accomplished

- Edwin B Flippo

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Understanding Human Resources Mgt

Human Resource Management is the management

function that deals with recruitment, placement, training
and development of organizational members.
• It is the management of workers (manpower) in an
organization so that they could be in a position to
serve the organization with dedication and high
performance
• Human resource is a staff function
• HRM is an ongoing procedure that tries to keep the
organization supplied with the right people in the right
position when they are needed
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Scope of Human Resource
Management

Nature
Introduction
Procurement
Prospect

HRM
Industrial
Relation Remuneration

Maintenance
Motivation

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Human Resource Management

 Focuses on people in the organization

 Applying management principles in procuring,
developing and maintaining people in the
organization
 HR Decisions must influence effectiveness of
organization leading to better service to customer
and high quality products at reasonable price

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 Personnel Management

 Personnel management can be defined as obtaining, using

and maintaining a satisfied workforce. It is a significant part
of management concerned with employees at work and
with their relationship within the organization.
 It is an administrative function of an organization that
exists to provide the personnel needed for organizational
activities and to manage the general employee-employer
relationship
 It plays an important role to promote the employees so
that employees can contribute their maximum for
achieving the enterprises goals.

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Comparing Personnel Management
and Human Resource Management

 Personnel Management is a function within an

organization concentrated on recruiting, managing
and directing people who work in it.
 Human Resource Management deals with issues
related to compensation, performance management,
organization development, safety, wellness, benefits,
employee motivation, training and others

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 Difference between HRM and
Personnel Management
S. No Dimension Personnel Mgt Human Resource
Mgt
1 Employment contract Careful dimension Aims to go
of written contract beyond contract
2 Rules Importance of Impatience with
devising clear rules rules
3 Guide to Mgt action Procedures Business needs

4 Behavior referral Norms, customs Values/Mission

and practices
5 Managerial task vis-à-vis Monitoring Nurturing
labor
6 Key relations Labor Customer

7. Initiatives Piecemeal Integrated

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 Difference between HRM and
Personnel Management
S.No Dimension Personnel Mgt Human Resource
Mgt
8 Speed Slow Fast

9 Management role Transactional Transformational

10 Communication Indirect Direct

Managerial skills Negotiation Facilitation

11 Selection Separate Integrated

12 Pay Job Evaluation Performance

related
13 Labor management Collective bargaining Individual
contracts contracts
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 Difference between HRM and
Personnel Management
S. No Dimension Personnel Mgt Human Resource
Mgt
14 Job design Division of labor Teamwork

15 Training and Controlled course Learning

development organization

16 Shared Interest Organization Mutuality of

interest uppermost interests

17 Conflict handling Temporary Climate and

culture

18 Focus of attention for Personnel Cultural and

intervention procedures structural
strategies
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 Human Resource

 is all encompassing
 Includes human resource development and more
 Goes far beyond traditional personnel function
 More proactive and change oriented
 Needs competencies of a different nature from
traditional personnel function required

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 Importance of HRM

 Hire the right persons for the job

 Low attrition rate
 Ensure people do their best
 Time saved in not conducting useless interviews
 Avoid legal actions for any discrimination
 Safety laws are not ignored
 Equity towards employee in relation to salary etc
 Effective training
 Avoid unfair labor practices
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 HR Department Responsibilities

1. Planning for staff needs

2. Recruitment and hiring
3. Training and Development
4. Appraising Performance
5. Administering compensation and benefits
6. Overseeing changes in employment status

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Human Resource Management Process

1. Human Resource Planning

2. Recruitment
3. Selection
4. Orientation ( Induction/socialization)
5. Training and Development
6. Performance Appraisal
7. Promotion, transfers, demotion and separation

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 Human Resource Planning

 Is the process of forecasting a firm’s future demand

for and supply of the right type of people in the right
number.
 It the process by which management ensures that it
has the right personnel who are capable of
completing those tasks that helps the organization to
achieve its goals and objectives
 It is also planning for future personnel needs of an
organization, taking into account both internal and
external activities and factors of the environment

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 Importance of Human Resource
Planning

 Future human resource needs

 Helps in strategic planning
 Creating a high talented personnel
 Global strategies
 Foundation of personnel function
 Increase involvement in human resources
 Reduce resistance to change

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Basic Procedure for HR Planning

 Planning for future needs

 Planning for balance
 Planning for recruitment/selection/layoff
 Planning for staff development

 Evaluation of job requirement

Job Analysis…… Job description (tasks)
……. Job specification (personality)

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Factors Affecting HR Planning

 Type and strategy of organization

 Organizational growth cycle and planning
 Environmental uncertainty
 Time horizon
 Type and quality of forecasting information
 Nature of jobs being filled
 Outsourcing

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 Forecasting Techniques

 Ratio Analysis
 Regression Analysis
 Work study Techniques
 Delphi Technique
 Managerial judgements

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 HR Supply Forecast

 Existing Human Resources

 Internal Source of Supply
 External Source of Supply

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 Job Analysis

 Job Analysis is the process of studying and collecting

information relating to the operational
responsibilities of a specific job
 The immediate products of this analysis are job
description and job specification

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 Job Analysis involves

1. Collecting and recording job information

2. Checking the job information for accuracy
3. Writing job description based on the information
4. Using the information to determine the skills,
abilities and knowledge
5. Updating the information from time to time

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 Job Description

 Job Description is a list of job duties, responsibilities,

reporting relationships, working conditions and
supervisory responsibilities
 Job Specification is a list of job’s “human
requirements” that is the requisite education, skills,
personality and so on.

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Expansion of Job Analysis

Job Analysis

Job Description Job Specification

• Job Title • Education
• Location • Experience
• Job Summary • Training
• Duties • Initiative
• Supervision • Physical effort
• Working • Responsibility
condition • Communication skills
• Hazards • Emotional charateristics

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Use of Job Analysis Information

Job
Analysis

Job Description and Job Specification

Trai
Recruit ning
ment & Health Salary
Career Performance Employee
and Dev and and
Planning Appraisal discipline
Selecti elop Safety Wages
on men
t
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 Recruitment
 Process of finding and attracting capable applicants for
employment
 Process begins when new recruits are sought and ends
when their applications are submitted
 The result is developing a pool of job candidates in line
with human resource plan
 Candidates are usually identified through newspapers
and professional journal advertisements, employment
agencies, word of mouth and visit to colleges and
university campuses

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 Sources of Recruitment
 Striking a balance between internal or external sources
1 Internal
2. External
Organizations ability to recruit depends on reputation,
attractiveness of location and of specific job offer

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Factors Governing Recruitment
External Factor Internal Factors
Supply and demand Recruitment policy
Unemployment rate Human resource plan
Labor market Size of firm
Political Cost
Social Growth
Image

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 Equal Employment and Affirmative
Action

1. Civil Rights Movement

2. Women’s Movement

• Equal pay Act of 1964 prohibits discrimination by

employers on basis of sex, religion and race.
• Compatible worth defines candidates suitability for a
position or category

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 Selection

 Is the process of differentiating between applicant’s in

order to identify those with greater likelihood of
success in a job
 Is the selection of a candidate with the right
combination of education, work experience, attitude
and creativity not only to increase quality and stability
of work force but also bringing management
strategies and planning to fruition

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 Process of Selection

 Selection involves using application forms, resumes

(curriculum vitae), interviews, employment and skills tests
and references to check and screen job candidates
 Merit based criteria is used

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 Basic Testing Concepts

 General tests are administered to determine

applicant’s:
- Ability: to determine performance
- Aptitude: potential to learn in a given situation
- Personality: motivation to function in a particular
working environment
- Interest: individual’s activity preference

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 Interviews

 Formal in depth conversation conducted to

evaluating the applicant’s acceptability
 Two way exchange of information
 It is a mutual process whereby organization decides
whether or not to make a job offer and the candidate
decides whether or not to accept the offer

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 Objective of Interview

 Helps obtain additional information

 Facilitates giving general information to applicant
 Help build image of the organization

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 Orientation (Socialization)

 It is designed to help the selected individuals fit

smoothly into the organization
 New comers are introduced to their colleagues,
acquainted with their responsibilities and informed
about the organization’s cultures, policies and
expectations regarding employee behavior
 Provide employees with information needed to function
comfortably and effectively in the organization

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 Training and Development

 Training and development are both aimed at increasing

employees abilities to contribute to organizational
effectiveness
 Training is aimed to improve skills on the current job
 Development programs are designed to prepare the
employees for promotion

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Need for Training and Development

 To improve three types of skills:

1. Technical
2. Interpersonal
3. Problem solving

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Approaches to determining training
needs

1. Performance Appraisal
2. Analysis of Job Requirement
3. Organizational Analysis
4. Survey of human resources- problematic

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 Training Methods

1. On the job training

- Job rotation
- Internship (job and classroom)
- Apprenticeship
2. Off the job training
- Seminars
- Lectures
- Computer Assisted Instructions
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 Performance Appraisal

 Compares an individual’s job performance to standards

or objectives developed for individual positions
 Low performance may prompt corrective action such as
further training, demotion or separation
 High performance may merit a reward such as pay rise,
bonuses or promotion
 Be based on job analysis, job description and job
specification

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 Appraisal Approaches

 Superior rating subordinates

 Group of superiors rating subordinates
 Group of peers rating a colleague
 Subordinates rating bosses

Problems of appraisal
- Shifting standards
- Rate bias
- Different rate patterns (styles)
- Halo effect- rating based on one characteristic
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 Compensation and Benefits

 Benefits be fair, effective and appropriate

 Help attract and retain high performing employees
 Impacts on the strategic performance of the firm
 Be reflective of contribution in the achievement of
organizational objectives

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Factors that influence Compensation
and Benefits

 Employee’s tenure and performance

 Kind of job performed (level of skills)
 Kind of business
 Unionizable
 Labor or capital intensive
 Management philosophy
 Geographic location
 Company profitability
 Size of company
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Promotions, Transfers, Demotions and
Separations

 All these reflect an employee’s value to the

organization
 High performers may be promoted or transferred to
help them develop their skills while low performers
may be demoted, transferred to less positions or even
separated
 Any of these options will in turn affect human
resource planning

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 Tutorial Exercise
Q1. What is human resource planning?
Q2. Explain the four procedures in human resource
planning
Q3. State the importance of performance appraisal
Q4. State the purposes that transfer tends to serve in
organizations
Q5. What is the rational for engaging part time staff

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