Concept, meaning and definition
- It examines and evaluates policies, procedures and practices to determine the effectiveness of HRD function in an organization.
- Human resource audits are potentially powerful tools in promoting wiser, more equitable use of human resources and more accurate human resource planning.
- To realize these goals, however, "users must be made aware of what information is contained in the inven¬tory, how to gain access to it, and how to interpret it" (Cascio, 1987, p. 223). Furthermore, current inventories must be maintained.
Objectives of HRD Audit
- To determine the effectiveness of management programmes.
- To analyze the factors involved in HRD and develop a statement of findings with recommendations for correcting deviation.
- To study the extent to which line managers have complied with HRD policies.
- To study the current manpower inventory and identify shortfall of excess.
Scope of HRD Audit
- The actual state.
- The congruence between the desired and the actual state.
- The alignment with the overall organizational strategy and goals.
- The compliance with the rules and regulations.
- Auditing HR practices, auditing HR professionals, auditing HR functions or department.
Importance of HRD Audit
- It helps to identify the changing training needs and development of new training modules for effective utilization of manpower due to technological changes.
- To keep pace with environmental changes.
Methods and techniques of HR Audit
- Attitudinal Survey.
- Data Interpretation.
Advantages of HR Audit
- To ensure effective utilization of HR.
- To comply with administrative regulations.
- To inculcates sense of confidence in management.
- To perform a due diligence review for various stakeholders.
Thursday, April 29, 2010
Human Resource Information System
Concept, meaning and definition
- The composite of databases, computer applications and hardware and software that are used to collect/record, store, manage, deliver, present and manipulate data for human resources.
Objectives of HRIS
- Effective Planning and policy formulation.
- Monitoring and Evaluation: demand and supply imbalances.
- Providing inputs to strategic decisions.
Effectiveness of HRIS
- Adequacy of information.
- Specificity.
- Relevance.
- Comprehensiveness.
- Reliability.
Deficiencies of the Manual System
- High investment time.
- Accuracy.
- Fragmentation.
- Duplication.
- Difficulty of analysis.
Advantages of computerization
- Convenience.
- Integration.
- Multi user benefits.
Designing and Implementation of HRIS
- What information is available and what to be collected?
- To what use this information be presented.
- Who should have access to this information.
- When and how often this information is needed.
- The composite of databases, computer applications and hardware and software that are used to collect/record, store, manage, deliver, present and manipulate data for human resources.
Objectives of HRIS
- Effective Planning and policy formulation.
- Monitoring and Evaluation: demand and supply imbalances.
- Providing inputs to strategic decisions.
Effectiveness of HRIS
- Adequacy of information.
- Specificity.
- Relevance.
- Comprehensiveness.
- Reliability.
Deficiencies of the Manual System
- High investment time.
- Accuracy.
- Fragmentation.
- Duplication.
- Difficulty of analysis.
Advantages of computerization
- Convenience.
- Integration.
- Multi user benefits.
Designing and Implementation of HRIS
- What information is available and what to be collected?
- To what use this information be presented.
- Who should have access to this information.
- When and how often this information is needed.
Human Resource actions
Concept, meaning and definition
- Hiring
- Training
- Career Management
- Retrenchments
- Action plans encourage changes in current personnel systems that facilitate organizational adaptation to the chang¬ing conditions of the external environment.
- They enable organizations to act preventively in regard to anticipated labor shortages, surpluses, funding difficulties, and changes in service demands.
-
- Cascio (1987) identifies two components of action plans: perfor¬mance and career management.
o Performance management entails administration of organizational performance monitoring and ap¬praisal systems. It also involves consideration of reward structures, compensation and fringe benefits, and labor relations (Walker, 1980).
o Similarly, career management entails administration of individual careers. Existing policies and personnel systems, management de¬velopment activities, training and development opportunities, and individual career planning are considerations.
- Both performance and individual career management are key elements of personnel admin¬istration.
- However, a great deal of action planning includes the development and implementation of the subsequent stages of staff¬ing such as recruitment, selection, training, and development.
- Fi¬nally, affirmative action plans and similar regulatory considerations should be addressed during human resource planning.
- Hiring
- Training
- Career Management
- Retrenchments
- Action plans encourage changes in current personnel systems that facilitate organizational adaptation to the chang¬ing conditions of the external environment.
- They enable organizations to act preventively in regard to anticipated labor shortages, surpluses, funding difficulties, and changes in service demands.
-
- Cascio (1987) identifies two components of action plans: perfor¬mance and career management.
o Performance management entails administration of organizational performance monitoring and ap¬praisal systems. It also involves consideration of reward structures, compensation and fringe benefits, and labor relations (Walker, 1980).
o Similarly, career management entails administration of individual careers. Existing policies and personnel systems, management de¬velopment activities, training and development opportunities, and individual career planning are considerations.
- Both performance and individual career management are key elements of personnel admin¬istration.
- However, a great deal of action planning includes the development and implementation of the subsequent stages of staff¬ing such as recruitment, selection, training, and development.
- Fi¬nally, affirmative action plans and similar regulatory considerations should be addressed during human resource planning.
Skill inventories
Concept, meaning and definition
- Information about individuals and their suitability for different jobs include name of the employee, skills, training, experience etc.
- Personnel and skill inventories are simply systems that are used periodically to gather employee information. The specific informa¬tion that is included in the inventory depends on organizational needs. Name, age, length of employment with the organization, education, experience, present position, performance level and past company achievements, and an assessment of future potential of each employee are typically included (Cascio, 1987; Werther & Davis, 1989).
- Data are generally collected directly from personnel on a regular basis in the form of a questionnaire. Information gener¬ated can then be recorded and accessed either manually or via computer.
- Information obtained from personnel inventories can be used in a number of ways. The data are commonly presented in one of three ways: in operational, regulatory, or analytical reports (Dukes, 1972).
o Operational reports are used in day to day personnel management; examples include seniority lists; training reports; job vacancies; turnover reports; lists of new hires, retirements, and promotions; and wage reports (Cascio, 1987).
o Regulatory reports are those required by agencies such as the EEOC.
o Analytical reports, less commonly used, include such information as number of employees subdivided by age, race, educational level, and organizational status. In addi¬tion, administrators may create replacement charts and summaries.
- Information about individuals and their suitability for different jobs include name of the employee, skills, training, experience etc.
- Personnel and skill inventories are simply systems that are used periodically to gather employee information. The specific informa¬tion that is included in the inventory depends on organizational needs. Name, age, length of employment with the organization, education, experience, present position, performance level and past company achievements, and an assessment of future potential of each employee are typically included (Cascio, 1987; Werther & Davis, 1989).
- Data are generally collected directly from personnel on a regular basis in the form of a questionnaire. Information gener¬ated can then be recorded and accessed either manually or via computer.
- Information obtained from personnel inventories can be used in a number of ways. The data are commonly presented in one of three ways: in operational, regulatory, or analytical reports (Dukes, 1972).
o Operational reports are used in day to day personnel management; examples include seniority lists; training reports; job vacancies; turnover reports; lists of new hires, retirements, and promotions; and wage reports (Cascio, 1987).
o Regulatory reports are those required by agencies such as the EEOC.
o Analytical reports, less commonly used, include such information as number of employees subdivided by age, race, educational level, and organizational status. In addi¬tion, administrators may create replacement charts and summaries.
Census analysis
Concept, meaning and definition
- It requires three sets of data :
1. The number of employees at the beginning of the census.
2. The number of employees at the end of the census.
3. The number of leavers during the census period.
- It requires three sets of data :
1. The number of employees at the beginning of the census.
2. The number of employees at the end of the census.
3. The number of leavers during the census period.
Cohort analysis
Concept, meaning and definition
- It means homogenous groups.
- At the end of each year the number of employees from the cohort who survive is calculated and expressed as a percentage of the total number of employees hired when cohort was formed.
- It means homogenous groups.
- At the end of each year the number of employees from the cohort who survive is calculated and expressed as a percentage of the total number of employees hired when cohort was formed.
Wastage analysis
Concept, meaning and definition
- It is an element of labour turnover
- It is severance from the organization, which includes voluntary retirement, normal retirement, resignations, deaths and dismissals.
- It decreases with the increase of length of service.
- It also decreases with increased skill exercise and age.
- In human services, turnover, or employee withdrawal behavior, has become a serious personnel problem.
- Turnover creates consider¬able costs for the organization, decreases productivity, disrupts worker relationships, and can increase waste and accidents.
- Thus turnover must be considered during human resource planning es¬pecially in regard to supply forecasting.
- Organizations must expect a certain amount of turnover, but they must also be able to calculate and evaluate their turnover rate.
- To calculate turnover rates, administrators must first define a "turn¬over." Discharges, retirements, and deaths may be areas that create problems in the definition. Once a definition is determined, however, data collection and calculation of turnover rates is relatively straight¬forward: Count the number of turnovers and then compare that number with the total number of employees. From this, a percentage rate is determined.
- Evaluation of turnover is a bit more complex. There are a number of ways to conduct turnover analysis;
o comparison studies are among the simplest.
o Administrators may want to compare the turnover rate in their organizations with that of other organizations, with data presented by government agencies or trade organizations, or with organizational objectives.
o Although these comparisons can be valuable, they provide little information in regard to the organization's indi¬vidual situation.
o Thus administrators might also want to compare the rate internally (Watts & White, 1988). Internal turnover comparisons often involve the dividing of em¬ployees who have left by a variety of factors: department, supervisor, performance level, length of employment, and career path (external hire or internal hire/promotion). The division of employees in this way can provide insight into the causes of turnover.
o Qualitative information to supplement the analysis can be obtained by job satisfaction surveys or exit interviews. Ultimately, solutions or pre¬ventative strategies can be sought.
Difference methods of Wastage Analysis
- Labour Turnover Index:- It indicates the number of leavers as percentage to average number of employees.
- Labour Turnover = Number of employees leaving/Average number of employees employed * 100.
Stability index
Concept, meaning and definition:
- Stability Index = number with more than 1 year service now / total employed 1 year ago * 100
- It is an element of labour turnover
- It is severance from the organization, which includes voluntary retirement, normal retirement, resignations, deaths and dismissals.
- It decreases with the increase of length of service.
- It also decreases with increased skill exercise and age.
- In human services, turnover, or employee withdrawal behavior, has become a serious personnel problem.
- Turnover creates consider¬able costs for the organization, decreases productivity, disrupts worker relationships, and can increase waste and accidents.
- Thus turnover must be considered during human resource planning es¬pecially in regard to supply forecasting.
- Organizations must expect a certain amount of turnover, but they must also be able to calculate and evaluate their turnover rate.
- To calculate turnover rates, administrators must first define a "turn¬over." Discharges, retirements, and deaths may be areas that create problems in the definition. Once a definition is determined, however, data collection and calculation of turnover rates is relatively straight¬forward: Count the number of turnovers and then compare that number with the total number of employees. From this, a percentage rate is determined.
- Evaluation of turnover is a bit more complex. There are a number of ways to conduct turnover analysis;
o comparison studies are among the simplest.
o Administrators may want to compare the turnover rate in their organizations with that of other organizations, with data presented by government agencies or trade organizations, or with organizational objectives.
o Although these comparisons can be valuable, they provide little information in regard to the organization's indi¬vidual situation.
o Thus administrators might also want to compare the rate internally (Watts & White, 1988). Internal turnover comparisons often involve the dividing of em¬ployees who have left by a variety of factors: department, supervisor, performance level, length of employment, and career path (external hire or internal hire/promotion). The division of employees in this way can provide insight into the causes of turnover.
o Qualitative information to supplement the analysis can be obtained by job satisfaction surveys or exit interviews. Ultimately, solutions or pre¬ventative strategies can be sought.
Difference methods of Wastage Analysis
- Labour Turnover Index:- It indicates the number of leavers as percentage to average number of employees.
- Labour Turnover = Number of employees leaving/Average number of employees employed * 100.
Stability index
Concept, meaning and definition:
- Stability Index = number with more than 1 year service now / total employed 1 year ago * 100
Nominal Group method
Concept, meaning and definition
- Like Delphi but experts are allowed to discuss among themselves.
- Experts are asked to rank their ideas according to their perceived priority.
- Group consensus is derived mathematically in terms of individual ranking.
- Like Delphi but experts are allowed to discuss among themselves.
- Experts are asked to rank their ideas according to their perceived priority.
- Group consensus is derived mathematically in terms of individual ranking.
Delphi Technique
Concept, meaning and definition
- Involves selection of a panel of experts, whose comments are crystallized from a serious of questionnaire responses and then used as the basis to forecast.
- Group process to achieve consensus.
- A serious of questionnaire are prepared from the responses received from a prior set of questions in a sequencing manner.
- Involves selection of a panel of experts, whose comments are crystallized from a serious of questionnaire responses and then used as the basis to forecast.
- Group process to achieve consensus.
- A serious of questionnaire are prepared from the responses received from a prior set of questions in a sequencing manner.
Managerial judgment
Concept, meaning and definition
- Manager makes a judgment about the future employment levels.
- Relates to the past experience.
- Combining quantitative tools with judgment yields better results.
- Manager makes a judgment about the future employment levels.
- Relates to the past experience.
- Combining quantitative tools with judgment yields better results.
Exponential smoothing
Concept, meaning and definition
- Method smoothens random errors by giving exponentially decreasing weights to historical data.
- There is certain formula that can be used.
- Method smoothens random errors by giving exponentially decreasing weights to historical data.
- There is certain formula that can be used.
Moving Average method
Concept, meaning and definition
- Under this method, average of the combined employment level data for the forecasted employment level for the next period.
- It requires careful selection of time periods, which may be 6 period, 10 period, 12 period moving average.
- Technique is useful to guard against random fluctuations.
- Considering more time periods, we may get better results.
- Weights may be assigned for different time periods at the discretion of the analyst.
- Under this method, average of the combined employment level data for the forecasted employment level for the next period.
- It requires careful selection of time periods, which may be 6 period, 10 period, 12 period moving average.
- Technique is useful to guard against random fluctuations.
- Considering more time periods, we may get better results.
- Weights may be assigned for different time periods at the discretion of the analyst.
Time serious analysis
Concept, meaning and definition
- Employment data over a time period are used under this method as the basis for manpower forecast.
- Without considering endogenous and exogenous changes, forecasting errors may increase.
- Following five elements are observed:
o Trend:- fluctuation in level of employment over a time period.
o Cyclical Effects:- change in employment in relation to particular event.
o Seasonality.
o Step:- Sudden change in employment level due to economic environment.
o Random fluctuations.
- Employment data over a time period are used under this method as the basis for manpower forecast.
- Without considering endogenous and exogenous changes, forecasting errors may increase.
- Following five elements are observed:
o Trend:- fluctuation in level of employment over a time period.
o Cyclical Effects:- change in employment in relation to particular event.
o Seasonality.
o Step:- Sudden change in employment level due to economic environment.
o Random fluctuations.
Analysis of Workload Factors
Concept, meaning and definition
- Analysis of present and future workload.
- Analysis depends on the possibility of quantifying the work content in every area of an organizational activity.
Steps of Workload Factors
1. Classification of work:
- Done by identifying the work and time required for such job.
- Breaking jobs in different components, which together completes an operation and time requirement for each job component.
2. Forecasting the number of jobs done for a time period.
3. Converting the projected jobs into man-hours.
4. Converting the man-hour into manpower requirement.
- Analysis of present and future workload.
- Analysis depends on the possibility of quantifying the work content in every area of an organizational activity.
Steps of Workload Factors
1. Classification of work:
- Done by identifying the work and time required for such job.
- Breaking jobs in different components, which together completes an operation and time requirement for each job component.
2. Forecasting the number of jobs done for a time period.
3. Converting the projected jobs into man-hours.
4. Converting the man-hour into manpower requirement.
Forecasting of Manpower
We can forecast our manpower through:
a. HR demand forecasting
• Analysis of work load factors,
• Time serious analysis,
• Moving Average method,
• Exponential smoothing,
• Managerial judgment,
• Manpower forecasts through Qualitative tools- Delphi Technique, Nominal Group method.
- It involves determining the total number of personnel needed within a field or profession, or "demand forecast¬ing."
- Demand forecasts depend primarily on external factors such as economic, social, and political influences; government and legisla¬tion; markets and competition; changing technology; and the popu¬lation and work force (Cascio, 1987).
- Consequently, they are more difficult to conduct than supply forecasts. However, it is critical that the competing demands for qualified personnel be gauged.
b. HR supply forecasting
• Wastage analysis- Labour turnover index,
• stability index,
• Cohort analysis,
• Census analysis,
• Skill inventories,
• human Resource actions: Hiring, Training, career management, Layoffs, productive programmes.
- Needs analysis, particularly in relation to supply and demand of personnel in human services, must be examined with respect to two questions. The first involves determining the number of people available with specifically needed skills. Frantzreb (1981) calls this 6'supply forecasting."
- There are two sources of human resource supply: internal and external.
o Internal supply consists of current employees who can be promoted or transferred to fill expected vacancies.
o External supply is composed of qualified individuals outside of the organization who can be recruited and hired to fill those vacancies (Werther & Davis, 1989).
- Supply forecasts are analyzed initially in relation to conditions inside the organization such as turnover, retirements, and the ability to pay qualified person¬nel.
- Human resource audits are utilized to estimate internal supply. The external labor market must then be examined in regard to the anticipated availability of the kinds of employees needed.
a. HR demand forecasting
• Analysis of work load factors,
• Time serious analysis,
• Moving Average method,
• Exponential smoothing,
• Managerial judgment,
• Manpower forecasts through Qualitative tools- Delphi Technique, Nominal Group method.
- It involves determining the total number of personnel needed within a field or profession, or "demand forecast¬ing."
- Demand forecasts depend primarily on external factors such as economic, social, and political influences; government and legisla¬tion; markets and competition; changing technology; and the popu¬lation and work force (Cascio, 1987).
- Consequently, they are more difficult to conduct than supply forecasts. However, it is critical that the competing demands for qualified personnel be gauged.
b. HR supply forecasting
• Wastage analysis- Labour turnover index,
• stability index,
• Cohort analysis,
• Census analysis,
• Skill inventories,
• human Resource actions: Hiring, Training, career management, Layoffs, productive programmes.
- Needs analysis, particularly in relation to supply and demand of personnel in human services, must be examined with respect to two questions. The first involves determining the number of people available with specifically needed skills. Frantzreb (1981) calls this 6'supply forecasting."
- There are two sources of human resource supply: internal and external.
o Internal supply consists of current employees who can be promoted or transferred to fill expected vacancies.
o External supply is composed of qualified individuals outside of the organization who can be recruited and hired to fill those vacancies (Werther & Davis, 1989).
- Supply forecasts are analyzed initially in relation to conditions inside the organization such as turnover, retirements, and the ability to pay qualified person¬nel.
- Human resource audits are utilized to estimate internal supply. The external labor market must then be examined in regard to the anticipated availability of the kinds of employees needed.
Value Analysis
- It is an organized creative technique to analyze functions of a product or service or a system to achieve the required functions at the lowest cost ensuring its performance reliability and maintainability.
- Value of a product can be improved by:
o Improving function
o Reducing cost
o By both of the above
- Value of a product can be improved by:
o Improving function
o Reducing cost
o By both of the above
Ergonomics
Concept, meaning and definition
- Greek words:
o Ergon: work
o Enomous: laws
- It is the study of the effects of work system on workers and aims to increase their efficiency, comfort and satisfaction.
Areas Ergonomics applied successfully
- Design of equipment, power and hand tools.
- Design of furniture, seats, resets and steps for operators.
- Design of tools and fixtures.
- Plant layout.
- Improvement in working conditions and environments.
Areas of ergonomic investigation of a work system
- Human characteristics.
- Work.
- Working conditions.
- Environment.
Impact of Ergonomics on Work Study
- Limits of sustained physical endurance, normal speed of movement and optimum method of handling of controls.
- Effects of working conditions.
- Qualitative and quantitative analysis of factors contributing to industrial fatigue.
- Effects of different types of environmental conditions on human beings.
- Greek words:
o Ergon: work
o Enomous: laws
- It is the study of the effects of work system on workers and aims to increase their efficiency, comfort and satisfaction.
Areas Ergonomics applied successfully
- Design of equipment, power and hand tools.
- Design of furniture, seats, resets and steps for operators.
- Design of tools and fixtures.
- Plant layout.
- Improvement in working conditions and environments.
Areas of ergonomic investigation of a work system
- Human characteristics.
- Work.
- Working conditions.
- Environment.
Impact of Ergonomics on Work Study
- Limits of sustained physical endurance, normal speed of movement and optimum method of handling of controls.
- Effects of working conditions.
- Qualitative and quantitative analysis of factors contributing to industrial fatigue.
- Effects of different types of environmental conditions on human beings.
Motion Economy
Meaning and Concept
- It is process of minimizing the physical and perceptual loads imposed on people engaged in any type of work.
- It leads to better design for equipment, hand tools. Furniture etc.
- It facilitates better layout of offices, warehouses, plants and operating areas.
Principles of Motion Economy
1. Principle of natural movement.
2. Principle of minimum movement.
3. Principle of simultaneous movement (reduce fatigue).
4. Principle of rhythmic movement.
5. Principle of continuous movement.
6. Principle of habitual movement.
- It is process of minimizing the physical and perceptual loads imposed on people engaged in any type of work.
- It leads to better design for equipment, hand tools. Furniture etc.
- It facilitates better layout of offices, warehouses, plants and operating areas.
Principles of Motion Economy
1. Principle of natural movement.
2. Principle of minimum movement.
3. Principle of simultaneous movement (reduce fatigue).
4. Principle of rhythmic movement.
5. Principle of continuous movement.
6. Principle of habitual movement.
Work measurement
Concept, meaning and definition
- It is the application of techniques designed to establish the work content of a specified task by determining the time required for carrying it out at a defined standard of performance by a qualified worker.
- Commonly known as time study.
- It is used to find out standard time to perform a specific task.
- Time standard is used for planning and scheduling work, for cost estimating, basis for wage incentive plan.
Techniques of Work Measurement
- Time study.
o It is a technique for determining as accuracy as possible from a limited number of observations, the time necessary to carry out a given activity at a defined standard of performance.
- Ratio-delay study (statistical sampling techniques).
o It is a sampling technique.
o Sufficiently large number of readings are taken at random intervals.
- Synthesis from standard data.
o It is synthesized from element time previously obtained from direct time study.
- Predetermined motion time standard.
o It is developed for different job elements based on elementary movement.
- Analytical estimating.
o It is used in plant maintenance and repair work.
- It is the application of techniques designed to establish the work content of a specified task by determining the time required for carrying it out at a defined standard of performance by a qualified worker.
- Commonly known as time study.
- It is used to find out standard time to perform a specific task.
- Time standard is used for planning and scheduling work, for cost estimating, basis for wage incentive plan.
Techniques of Work Measurement
- Time study.
o It is a technique for determining as accuracy as possible from a limited number of observations, the time necessary to carry out a given activity at a defined standard of performance.
- Ratio-delay study (statistical sampling techniques).
o It is a sampling technique.
o Sufficiently large number of readings are taken at random intervals.
- Synthesis from standard data.
o It is synthesized from element time previously obtained from direct time study.
- Predetermined motion time standard.
o It is developed for different job elements based on elementary movement.
- Analytical estimating.
o It is used in plant maintenance and repair work.
Job Evaluation
Meaning and Concept
Process of determining the worth of one job in relation to that of another without regard to the personalities.
Reasons for using Job Evaluation
- To reduce wage and salary anomalies
- To reduce the complaints regarding wages
- To reduce loss of time due to wage negotiation and disputes
- To increase output
Steps in job Evaluation
- Through examination
- Preparation of job description
- Preparation of job analysis to set out the job under various factor headings
- Comparison of one job with another
- Arrangement of jobs to a money scale
Types of Job Evaluation Schemes
- Ranking: relative difficulty or value to the company
- Classification: jobs allocated to each group.
- Points Rating: Job is broken down into its component factors and then evaluated separately. Factors are allocated points
- Factors comparison: 5 factors are used (mental requirements, skill requirements, physical requirements, responsibility and working conditions)
Process of determining the worth of one job in relation to that of another without regard to the personalities.
Reasons for using Job Evaluation
- To reduce wage and salary anomalies
- To reduce the complaints regarding wages
- To reduce loss of time due to wage negotiation and disputes
- To increase output
Steps in job Evaluation
- Through examination
- Preparation of job description
- Preparation of job analysis to set out the job under various factor headings
- Comparison of one job with another
- Arrangement of jobs to a money scale
Types of Job Evaluation Schemes
- Ranking: relative difficulty or value to the company
- Classification: jobs allocated to each group.
- Points Rating: Job is broken down into its component factors and then evaluated separately. Factors are allocated points
- Factors comparison: 5 factors are used (mental requirements, skill requirements, physical requirements, responsibility and working conditions)
Job Specification
Meaning and Concept
- Statement of the minimum acceptable human qualities required for the proper functioning of a job. It is a written record of the physical, mental social, psychological and behavioral characteristics which a person should posses.
- It identify the soft skills like interpersonal skills, analytical ability, problem solving skills or decision making skill which are required to perform the duties assigned.
- It helps in the evaluation of jobs and the same time it defines the attributes required for job position, which are required while going for recriuitment.
Physical Characteristics
- Height
- Weight
- Chest
- Vision
- Hearing
- Health
- Age
Mental Characteristics
- Intelligence
- Memory
- Judgment
- Ability to concentrate
Social and Psychological Characteristics
- Emotional stability
- Flexibility
- Personal appearance
- Conservational ability
Personal Characteristics
- Sex
- Education
- Family background
- Job experience
- Hobbies
- Statement of the minimum acceptable human qualities required for the proper functioning of a job. It is a written record of the physical, mental social, psychological and behavioral characteristics which a person should posses.
- It identify the soft skills like interpersonal skills, analytical ability, problem solving skills or decision making skill which are required to perform the duties assigned.
- It helps in the evaluation of jobs and the same time it defines the attributes required for job position, which are required while going for recriuitment.
Physical Characteristics
- Height
- Weight
- Chest
- Vision
- Hearing
- Health
- Age
Mental Characteristics
- Intelligence
- Memory
- Judgment
- Ability to concentrate
Social and Psychological Characteristics
- Emotional stability
- Flexibility
- Personal appearance
- Conservational ability
Personal Characteristics
- Sex
- Education
- Family background
- Job experience
- Hobbies
Job Description
Meaning and Concept
- Describing the job in terms of its title, location, duties, responsibilities, working conditions, hazards and relations with other jobs.
- The description of the various responsibilities of each position can usually be found within the "job description" or "job specification" that is typically put together by business owners or managers.
- Job descriptions and specifications usually include
o known duties and responsibilities,
o required levels of education and work experience,
o salary and benefits provided to employees in exchange for their labor, and
o information regarding the work environment.
o also may include helpful details addressing other work-related issues, such as the position's travel obligations, normal work schedule, physical location where duties of position will be carried out, union status, supervisory relationships, bonuses, and any other information directly pertinent to the execution of any and all responsibilities associated with the job.
- Effective job descriptions let employees know what is expected of them: "If people are going to perform their assigned task, then they obviously have to know what it is, how to do it, and how to measure the results. Either someone has to explain it all to them or they have to figure it out themselves.
- Job descriptions are potentially one of the most powerful tools available to help managers improve employee performance and productivity.
- They have great utility for every phase of human resource administration. From designing jobs and reward systems, through staffing and training to performance evaluation and control, the job description is literally indispensible if the human resource is to be managed properly.
Contents of job description
- Job identification: Job title, code, department
- Job summary
- Duties and responsibilities
- Working conditions
- Social Environment: size of work group
- Machines: Tools and equipments
- Relations to other jobs
Uses of job description
- Job grading and classification
- Orientation of new employees
- Developing performance standards
- Employee selection
- Organizational change and development
- It provides business owners and supervisors with a useful tool of performance measurement.
- to provide potential job applicants with a sense of the various obligations and rewards of that position,
- to help businesses develop salary grades, and
- to help maintain a recognizable organizational structure.
- to terminate an employee for poor performance have to make sure that they are doing so because of their dissatisfaction with the targeted employee's work on tasks that are discussed in the job description.
- Describing the job in terms of its title, location, duties, responsibilities, working conditions, hazards and relations with other jobs.
- The description of the various responsibilities of each position can usually be found within the "job description" or "job specification" that is typically put together by business owners or managers.
- Job descriptions and specifications usually include
o known duties and responsibilities,
o required levels of education and work experience,
o salary and benefits provided to employees in exchange for their labor, and
o information regarding the work environment.
o also may include helpful details addressing other work-related issues, such as the position's travel obligations, normal work schedule, physical location where duties of position will be carried out, union status, supervisory relationships, bonuses, and any other information directly pertinent to the execution of any and all responsibilities associated with the job.
- Effective job descriptions let employees know what is expected of them: "If people are going to perform their assigned task, then they obviously have to know what it is, how to do it, and how to measure the results. Either someone has to explain it all to them or they have to figure it out themselves.
- Job descriptions are potentially one of the most powerful tools available to help managers improve employee performance and productivity.
- They have great utility for every phase of human resource administration. From designing jobs and reward systems, through staffing and training to performance evaluation and control, the job description is literally indispensible if the human resource is to be managed properly.
Contents of job description
- Job identification: Job title, code, department
- Job summary
- Duties and responsibilities
- Working conditions
- Social Environment: size of work group
- Machines: Tools and equipments
- Relations to other jobs
Uses of job description
- Job grading and classification
- Orientation of new employees
- Developing performance standards
- Employee selection
- Organizational change and development
- It provides business owners and supervisors with a useful tool of performance measurement.
- to provide potential job applicants with a sense of the various obligations and rewards of that position,
- to help businesses develop salary grades, and
- to help maintain a recognizable organizational structure.
- to terminate an employee for poor performance have to make sure that they are doing so because of their dissatisfaction with the targeted employee's work on tasks that are discussed in the job description.
Job analysis
Concept, meaning and definition
- A process of collecting and analyzing data relating to a job.
- It involves three questions: - What is a job? What should be analyzed? What methods of analysis should be used?
- A job is a group of essentially similar activities or tasks performed by a person or a group of persons.
- It determines the tasks, duties and responsibilities of the job.
- It should be done for each job in the organization.
- Job analysis can be done by:
- Observe current workers.
- Questionnaires filled out by worker and managers.
- Current trends are toward flexible jobs where duties are not easily defined in advance.
Uses / significance of job analysis
- Organisational Design
- Human resource planning
- Recruitment and selection
- Training and development
- Performance appraisal
- Job design
- Job evaluation
- Labour relations
- Health and safety.
- Career path planning
General purpose of job analysis
- To understand the requirements of a job.
- To gather information for use in personnel selection, training, classification, and/or compensation.
- to determine the physical requirements of a job to determine whether an individual who has suffered some diminished capacity is capable of performing the job with, or without, some accommodation.
Methods
- There are several ways to conduct a job analysis, including:
o interviews with incumbents and supervisors,
o questionnaires (structured, open-ended, or both),
o observation, and
o gathering background information such as duty statements or classification specifications.
- In job analysis conducted by HR professionals, it is common to use more than one of these methods. For example,
o the job analysts may tour the job site and observe workers performing their jobs.
o During the tour the analyst may collect materials that directly or indirectly indicate required skills (duty statemenets, instructions, safety manuals, quality charts, etc).
o The analyst may then meet with a group of workers or incumbents. And finally, a survey may be administered.
- A process of collecting and analyzing data relating to a job.
- It involves three questions: - What is a job? What should be analyzed? What methods of analysis should be used?
- A job is a group of essentially similar activities or tasks performed by a person or a group of persons.
- It determines the tasks, duties and responsibilities of the job.
- It should be done for each job in the organization.
- Job analysis can be done by:
- Observe current workers.
- Questionnaires filled out by worker and managers.
- Current trends are toward flexible jobs where duties are not easily defined in advance.
Uses / significance of job analysis
- Organisational Design
- Human resource planning
- Recruitment and selection
- Training and development
- Performance appraisal
- Job design
- Job evaluation
- Labour relations
- Health and safety.
- Career path planning
General purpose of job analysis
- To understand the requirements of a job.
- To gather information for use in personnel selection, training, classification, and/or compensation.
- to determine the physical requirements of a job to determine whether an individual who has suffered some diminished capacity is capable of performing the job with, or without, some accommodation.
Methods
- There are several ways to conduct a job analysis, including:
o interviews with incumbents and supervisors,
o questionnaires (structured, open-ended, or both),
o observation, and
o gathering background information such as duty statements or classification specifications.
- In job analysis conducted by HR professionals, it is common to use more than one of these methods. For example,
o the job analysts may tour the job site and observe workers performing their jobs.
o During the tour the analyst may collect materials that directly or indirectly indicate required skills (duty statemenets, instructions, safety manuals, quality charts, etc).
o The analyst may then meet with a group of workers or incumbents. And finally, a survey may be administered.
Determining manpower needs
We can determine our manpower needs through:
a. Qualitative determination of HR
• Job analysis and its uses,
• Job specification,
• Job description,
• Job Evaluation,
• Job Enrichment and
• Job enlargement.
b. Quantitative determination of HR
• Work Measurement (Techniques of Work Measurement,
• Time study,
• Motion Economy,
• Ergonomics,
• Human Engineering,
• Value Analysis and
• Human Resource Cost Analysis.
a. Qualitative determination of HR
• Job analysis and its uses,
• Job specification,
• Job description,
• Job Evaluation,
• Job Enrichment and
• Job enlargement.
b. Quantitative determination of HR
• Work Measurement (Techniques of Work Measurement,
• Time study,
• Motion Economy,
• Ergonomics,
• Human Engineering,
• Value Analysis and
• Human Resource Cost Analysis.
Environment of Human Resource Management
It is performed in internal and external environment of an organization.
Internal Environment
It consists of organizational objectives, policies, formal structure and human resource system.
Objectives of HRM are derived from the organizational objectives. Jobs are designed and analysed on the basis of formal structure. Manpower career planning are based on organizational planning.
External Environment
Changes in the environment of an organization exercise a significant influence on its personnel. The main environment factors are descried below.
Economic: Low growth rate inflation and growing unemployment can cause economic problems.
If there are problems in Capital output and capital employment ratio may lead to significant influences on wage and salary levels.
Technological: Technological changes have advanced the gap between factory work and office work. Job content and social relations among employees are changing. Job performance has dependent on dexterity in handling machineries rather than on craft skills. Individual pride in work has been lost due to increasing interdependence. The situation calls for new organizational relations and different personnel techniques.
Political: Independence and democracy increased the expectations of working class. Government has enacted a plethora of laws to regulate working conditions and employment relations. The hold of political parties on trade unions has created problems of multiple unions and union rivalry.
Socio-Cultural: Social values, occupational structure, religion and such other socio-cultural factors influence the human resource management. Unionisation of employees has created pressures for frequent increase in pay level and benefits. In many organizations unions have usurped managerial authority.
The internal Environment must match with the External Environment.
Internal Environment
It consists of organizational objectives, policies, formal structure and human resource system.
Objectives of HRM are derived from the organizational objectives. Jobs are designed and analysed on the basis of formal structure. Manpower career planning are based on organizational planning.
External Environment
Changes in the environment of an organization exercise a significant influence on its personnel. The main environment factors are descried below.
Economic: Low growth rate inflation and growing unemployment can cause economic problems.
If there are problems in Capital output and capital employment ratio may lead to significant influences on wage and salary levels.
Technological: Technological changes have advanced the gap between factory work and office work. Job content and social relations among employees are changing. Job performance has dependent on dexterity in handling machineries rather than on craft skills. Individual pride in work has been lost due to increasing interdependence. The situation calls for new organizational relations and different personnel techniques.
Political: Independence and democracy increased the expectations of working class. Government has enacted a plethora of laws to regulate working conditions and employment relations. The hold of political parties on trade unions has created problems of multiple unions and union rivalry.
Socio-Cultural: Social values, occupational structure, religion and such other socio-cultural factors influence the human resource management. Unionisation of employees has created pressures for frequent increase in pay level and benefits. In many organizations unions have usurped managerial authority.
The internal Environment must match with the External Environment.
Recruitment
Meaning, Concept, Definition
- It is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in organization.
- It is process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications and encouraging them to apply for jobs with an organization.
Goals of Recruitment
1. To attract qualified applicants
2. To discourage non qualified applicants
Constraints in Recruitment Process
1. Image of the organization
o Fair treatment of employees
o It is assessed by the performance, salary and benefits provided by it.
o It helps organization to have reasonable number of applicants ready to apply for the given job.
2. Attractiveness of the job
- it depends upon:
o its contribution towards achievement of organization objectives.
o The benefits and salary associated to particular job.
3. Government influence
- it influences by laws provided by the government
- to be successful, the organization has to work according to laws.
4. Labour Market Influence
- When economy is growing rapidly and un employment levels are very low, recruiting is extremely difficult.
- When the economy is stagnant and unemployment levels are high, the organizations can obtain large applicant pool with very little effort.
5. Recruiting Costs
- it will be high cost for external sources compared to the internal sources.
6. Global Issues
- Beside the internal environment of organization ppolices of the host country regarding employment also influence the recruitment process.
- They can include basic labour laws regarding quality of work life , remuneration packages etc.
Steps in Recruitment process
1. It starts when the personnel department receives requisitions for recruitment from any department of the company.
2. Locating and developing the sources of manpower.
3. Communicating the information about the organization, the job and terms and conditions.
4. Attracting and encouraging the candidates to apply.
5. Evaluating the effectiveness of recruitment process.
Sources of Recruitment
1. Internal Source:-
- Positions filled within the firm.
- Promotion, transfer, demotion, rejoining of retired employees, joining of relatives.
2. External Source:-
- Managers look outside the firm for people who have not worked at the firm before.
- Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet.
- Press Advertisements, Educational Institute, Placement Agencies, Employment exchange, labour contracts, unsolicited applicants, recommendations in recruitment at factory gate.
Merits of Internal sources
1. Managers likely already know the candidates.
2. Morale and motivation of employees are improved when they are promoted at higher levels.
3. Chances of proper selection are higher as performance is already judged.
4. It promotes loyalty and commitment among employees and stability of employment is improved. It helps in retaining talented and efficient employees. Labour turnover is reduced.
5. Time, cost of training and cost of recruitment are reduced.
6. Relations with trade unions remain good because unions prefer internal recruitment particularly through promotions.
Demerits of Internal sources
1. It helps flow of new blood into the organization more talented outsiders may be left out
2. If promotion is based on seniority, capable persons may be left out.
Merits of External sources
1. People with more skill, education and training can be obtained.
2. Experts and experienced persons from other organizations can be brought.
3. It helps in bringing new blood and new ideas into the organization.
Demerits of External sources
1. It is more expensive and time consuming to recruit.
2. Detail screening is necessary as they are unfamiliar with the organization.
3. Destroys incentives of present employees to strive for promotion.
4. More chances for commit hiring mistakes due to difficult applicant assessment.
Methods / Techniques of Recruitment
- They are ways to establish links with prospective employees. Various methods are:-
1. Direct methods:-
- Under this method, candidates are contacted directly through various ways:
a. Scouting:- In scouting, representatives of the organization are sent to educational and training institutions, they exchange information, clarify doubts and stimulate students to apply for jobs.
b. Employees contact:- Employees of organization are asked to contact the public and tell about vacancies.
c. Manned exhibits:- Recruiters are sent to seminars, conferences, exhibit at fairs to create awareness among the candidates.
d. Waiting list:- Some organizations use waiting lists of candidates who are interested in jobs in person, through mail or over telephone.
2. Indirect methods
- They include advertisements in newspaper, magazines, on the radio and television.
- This method is appropriate when organizations want to reach to a large target group scattered geographically.
3. Third party methods
- Under this method, organizations recruit employees through employment exchange, consultancies societies, trade unions, labour contractors, etc.
- It is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in organization.
- It is process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications and encouraging them to apply for jobs with an organization.
Goals of Recruitment
1. To attract qualified applicants
2. To discourage non qualified applicants
Constraints in Recruitment Process
1. Image of the organization
o Fair treatment of employees
o It is assessed by the performance, salary and benefits provided by it.
o It helps organization to have reasonable number of applicants ready to apply for the given job.
2. Attractiveness of the job
- it depends upon:
o its contribution towards achievement of organization objectives.
o The benefits and salary associated to particular job.
3. Government influence
- it influences by laws provided by the government
- to be successful, the organization has to work according to laws.
4. Labour Market Influence
- When economy is growing rapidly and un employment levels are very low, recruiting is extremely difficult.
- When the economy is stagnant and unemployment levels are high, the organizations can obtain large applicant pool with very little effort.
5. Recruiting Costs
- it will be high cost for external sources compared to the internal sources.
6. Global Issues
- Beside the internal environment of organization ppolices of the host country regarding employment also influence the recruitment process.
- They can include basic labour laws regarding quality of work life , remuneration packages etc.
Steps in Recruitment process
1. It starts when the personnel department receives requisitions for recruitment from any department of the company.
2. Locating and developing the sources of manpower.
3. Communicating the information about the organization, the job and terms and conditions.
4. Attracting and encouraging the candidates to apply.
5. Evaluating the effectiveness of recruitment process.
Sources of Recruitment
1. Internal Source:-
- Positions filled within the firm.
- Promotion, transfer, demotion, rejoining of retired employees, joining of relatives.
2. External Source:-
- Managers look outside the firm for people who have not worked at the firm before.
- Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet.
- Press Advertisements, Educational Institute, Placement Agencies, Employment exchange, labour contracts, unsolicited applicants, recommendations in recruitment at factory gate.
Merits of Internal sources
1. Managers likely already know the candidates.
2. Morale and motivation of employees are improved when they are promoted at higher levels.
3. Chances of proper selection are higher as performance is already judged.
4. It promotes loyalty and commitment among employees and stability of employment is improved. It helps in retaining talented and efficient employees. Labour turnover is reduced.
5. Time, cost of training and cost of recruitment are reduced.
6. Relations with trade unions remain good because unions prefer internal recruitment particularly through promotions.
Demerits of Internal sources
1. It helps flow of new blood into the organization more talented outsiders may be left out
2. If promotion is based on seniority, capable persons may be left out.
Merits of External sources
1. People with more skill, education and training can be obtained.
2. Experts and experienced persons from other organizations can be brought.
3. It helps in bringing new blood and new ideas into the organization.
Demerits of External sources
1. It is more expensive and time consuming to recruit.
2. Detail screening is necessary as they are unfamiliar with the organization.
3. Destroys incentives of present employees to strive for promotion.
4. More chances for commit hiring mistakes due to difficult applicant assessment.
Methods / Techniques of Recruitment
- They are ways to establish links with prospective employees. Various methods are:-
1. Direct methods:-
- Under this method, candidates are contacted directly through various ways:
a. Scouting:- In scouting, representatives of the organization are sent to educational and training institutions, they exchange information, clarify doubts and stimulate students to apply for jobs.
b. Employees contact:- Employees of organization are asked to contact the public and tell about vacancies.
c. Manned exhibits:- Recruiters are sent to seminars, conferences, exhibit at fairs to create awareness among the candidates.
d. Waiting list:- Some organizations use waiting lists of candidates who are interested in jobs in person, through mail or over telephone.
2. Indirect methods
- They include advertisements in newspaper, magazines, on the radio and television.
- This method is appropriate when organizations want to reach to a large target group scattered geographically.
3. Third party methods
- Under this method, organizations recruit employees through employment exchange, consultancies societies, trade unions, labour contractors, etc.
Management development
Meaning and Concept
– Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills.
Succession planning
– A process through which senior-level openings are planned for and eventually filled.
• Anticipate management needs
• Review firm’s management skills inventory
• Create replacement charts
• Begin management development
Managerial on-the-Job Training
• Job rotation
– Moving a trainee from department to department to broaden his or her experience and identify strong and weak points.
• Coaching/Understudy approach
– The trainee works directly with a senior manager or with the person he or she is to replace; the latter is responsible for the trainee’s coaching.
• Action learning
– Management trainees are allowed to work full-time analyzing and solving problems in other departments.
Off-the-Job Management Training and Development Techniques
• Case study method
– Managers are presented with a description of an organizational problem to diagnose and solve.
• Management game
– Teams of managers compete by making computerized decisions regarding realistic but simulated situations.
• Outside seminars
– Many companies and universities offer Web-based and traditional management development seminars and conferences.
• Role playing
– Creating a realistic situation in which trainees assume the roles of persons in that situation.
• Behavior modeling
– Modeling: showing trainees the right (or “model”) way of doing something.
– Role playing: having trainees practice that way
– Social reinforcement: giving feedback on the trainees’ performance.
– Transfer of learning: Encouraging trainees apply their skills on the job.
• Corporate universities
– Provides a means for conveniently coordinating all the company’s training efforts and delivering Web-based modules that cover topics from strategic management to mentoring.
• In-house development centers
– A company-based method for exposing prospective managers to realistic exercises to develop improved management skills.
• Executive coaches
– An outside consultant who questions the executive’s boss, peers, subordinates, and (sometimes) family in order to identify the executive’s strengths and weaknesses.
– Counsels the executive so he or she can capitalize on those strengths and overcome the weaknesses.
– Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills.
Succession planning
– A process through which senior-level openings are planned for and eventually filled.
• Anticipate management needs
• Review firm’s management skills inventory
• Create replacement charts
• Begin management development
Managerial on-the-Job Training
• Job rotation
– Moving a trainee from department to department to broaden his or her experience and identify strong and weak points.
• Coaching/Understudy approach
– The trainee works directly with a senior manager or with the person he or she is to replace; the latter is responsible for the trainee’s coaching.
• Action learning
– Management trainees are allowed to work full-time analyzing and solving problems in other departments.
Off-the-Job Management Training and Development Techniques
• Case study method
– Managers are presented with a description of an organizational problem to diagnose and solve.
• Management game
– Teams of managers compete by making computerized decisions regarding realistic but simulated situations.
• Outside seminars
– Many companies and universities offer Web-based and traditional management development seminars and conferences.
• Role playing
– Creating a realistic situation in which trainees assume the roles of persons in that situation.
• Behavior modeling
– Modeling: showing trainees the right (or “model”) way of doing something.
– Role playing: having trainees practice that way
– Social reinforcement: giving feedback on the trainees’ performance.
– Transfer of learning: Encouraging trainees apply their skills on the job.
• Corporate universities
– Provides a means for conveniently coordinating all the company’s training efforts and delivering Web-based modules that cover topics from strategic management to mentoring.
• In-house development centers
– A company-based method for exposing prospective managers to realistic exercises to develop improved management skills.
• Executive coaches
– An outside consultant who questions the executive’s boss, peers, subordinates, and (sometimes) family in order to identify the executive’s strengths and weaknesses.
– Counsels the executive so he or she can capitalize on those strengths and overcome the weaknesses.
Human Resource Management
Concept and Meaning
- It is a set of policies, practices and programmes designed to maximize both personal and organizational goals. It is a process of planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources. Human Resource Management is known by different names such as, personnel management, manpower management, or staff management.
- It includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals. These activities are made up of
1. Recruitment & selection.
2. Training and development.
3. Performance appraisal and feedback.
4. Pay and benefits.
5. Labor relations.
Objectives of HRM
1. To help organization in achieving the goal by providing well trained and well motivated employees.
2. To apply the skills and knowledge of employees efficiently and effectively.
3. To enhance job satisfaction and self actualization of employees.
4. To establish and maintain productive, self respecting relations among the members of the organization.
5. To bring about maximum individual development of members of the organization by training and developing them.
6. To develop and maintain a quality of worklife, good human relations and high morale within the organization.
7. To identify and satisfy individual needs and group goals by offering monetary and non monetary incentives.
Importance of HRM
Importance of HRM can be discussed at two levels- corporate, professional, social and national.
1. Importance for Enterprise: - HRM can help an organization in achieving its goals more efficiently and effectively by:
a) Attracting and retaining the required talent.
b) Developing the necessary skills, right attitude, dedication, cooperation and competition among employees.
2. Professional Importance:- HRM helps to improve the quality of work life by:
a) Providing maximum opportunities for personal development.
b) Maintaining healthy relationships between individuals and different work groups.
c) Allocating work properly.
3. Social Importance: - HRM helps in enhancing the society through:
a) Providing suitable employment.
b) Maintaining a balance between the jobs available and the job seekers.
4. National Importance: - HRM plays a vital role in the development of a nation. The level of development in a country depends primarily on the skills, attitudes and values of its human resources. Effective HRM helps to speed up the process of economic growth which leads to higher standard of living.
Functions of HRM
Functions are classified into two categories.
1. Managerial functions:- Planning, organizing, directing, leading and controlling.
2. Operating functions:
a) Procurement functions:- Job analysis, HRP, recruitment, selection and induction.
b) Development functions:- Performance appraisal, training and development, career planning and development.
c) Compensation:- Job evaluation, wage and salary administration, bonus and incentives, payroll.
d) Integration functions:- Motivation, Job Satisfaction, conflict management, participation of employees.
e) Maintenance functions:- Health, safety, social security, welfare schemes, personal research.
- It is a set of policies, practices and programmes designed to maximize both personal and organizational goals. It is a process of planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources. Human Resource Management is known by different names such as, personnel management, manpower management, or staff management.
- It includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals. These activities are made up of
1. Recruitment & selection.
2. Training and development.
3. Performance appraisal and feedback.
4. Pay and benefits.
5. Labor relations.
Objectives of HRM
1. To help organization in achieving the goal by providing well trained and well motivated employees.
2. To apply the skills and knowledge of employees efficiently and effectively.
3. To enhance job satisfaction and self actualization of employees.
4. To establish and maintain productive, self respecting relations among the members of the organization.
5. To bring about maximum individual development of members of the organization by training and developing them.
6. To develop and maintain a quality of worklife, good human relations and high morale within the organization.
7. To identify and satisfy individual needs and group goals by offering monetary and non monetary incentives.
Importance of HRM
Importance of HRM can be discussed at two levels- corporate, professional, social and national.
1. Importance for Enterprise: - HRM can help an organization in achieving its goals more efficiently and effectively by:
a) Attracting and retaining the required talent.
b) Developing the necessary skills, right attitude, dedication, cooperation and competition among employees.
2. Professional Importance:- HRM helps to improve the quality of work life by:
a) Providing maximum opportunities for personal development.
b) Maintaining healthy relationships between individuals and different work groups.
c) Allocating work properly.
3. Social Importance: - HRM helps in enhancing the society through:
a) Providing suitable employment.
b) Maintaining a balance between the jobs available and the job seekers.
4. National Importance: - HRM plays a vital role in the development of a nation. The level of development in a country depends primarily on the skills, attitudes and values of its human resources. Effective HRM helps to speed up the process of economic growth which leads to higher standard of living.
Functions of HRM
Functions are classified into two categories.
1. Managerial functions:- Planning, organizing, directing, leading and controlling.
2. Operating functions:
a) Procurement functions:- Job analysis, HRP, recruitment, selection and induction.
b) Development functions:- Performance appraisal, training and development, career planning and development.
c) Compensation:- Job evaluation, wage and salary administration, bonus and incentives, payroll.
d) Integration functions:- Motivation, Job Satisfaction, conflict management, participation of employees.
e) Maintenance functions:- Health, safety, social security, welfare schemes, personal research.
Human Resource Planning
Concept of HRP
- The process by which management determines how an organization should move from its current manpower position to its desired manpower position.
- Through it management tries to have the right number at the right place at the right time.
- It includes all activities managers do to forecast current and future HR needs.
- It falls into the wider area of employee resourcing (planning for, acquiring and allocating the desired human resources for the organisation).
- HRP entails knowing in advance what the staffing needs of the organisation will be, assessing the supply of the relevant workers in the organisation and labour market, and finding ways to fulfil the staffing needs of the organisation.
- It must be done prior to recruitment and selection
- Demand forecasts made by managers estimate the number & qualifications the firm will need.
- Supply forecasts estimate the availability and qualifications of current workers and those in the labor market.
- In short HRP may be defined as the process of determining manpower needs and making plan to meet these needs.
- Successfully planning and handling labour needs can thus be a competitive advantage or disadvantage.
- Companies who make and implement better HRP strategies than others will adjust better to environmental changes and have the most suitable workforces.
Objectives of HRP
1. To ensure optimum use of existing human resources.
2. To forecast future requirements for human resources.
3. To link human resource planning with organizational planning.
4. To asses the surplus and shortage of humans resources.
5. To anticipate the impact of technology on jobs and human resources.
6. To estimate cost of human resources and housing needs of employees.
7. To determine the levels of recruitment and training.
8. To estimate the use and efficiency of human resource.
9. To meet needs of expansion and diversification programmes.
Need, significance and Importance of HRP:
1. It is helpful in recruitment, selection and training activities.
2. it identifies gaps in existing manpower in terms of their quality and quantity.
3. It helps in replacing employees who retire, die, resign and injured.
4. It helps in providing manpower for expansion and diversification of an organization.
5. It helps in anticipating the cost of human resources by avoiding both shortage and surplus of manpower.
6. It helps in planning for physical facilities like canteen, staff quarters, hospitals and schools.
Techniques employed in HR forecasting
1. Managerial Judgment: - Under this method experienced managers estimated the manpower requirements for their departments on the basis of expected future workload and employee efficiency. These departmental estimates are then aggregated and approved by top management. This very simple and time saving method and suitable for small organizations.
2. Delphi Technique:- This method is used in group decision making in small groups and for forecasting human resource needs in two forms, first it can be used to know the trends for changing job profile and consequently, the changing personnel profile across the country or at international level, secondly it can be used to solicit views of experts in different functional areas of an organization about the changing profile of personnel in their respective departments in light of changing environment. Such views are collected and summarized by HR department to arrive at decision about the types of personnel needed in future.
3. Work study method:- In this method time and motion study are used to analyse and measure the work being done. Under this method the standard time required for one unit of work in decided and then on the basis of productive hoiur, number of workers are estimated. Example output for the next year = 50,000 units, standard hour per unit= 2 hrs, Total hours required= 50,000 x 2= 100,000 hrs, Productive hours / worker = 2,000 hrs, Total workers required = 100,000 / 2,000 = 50 workers.
4. Job trend analysis:-Under this method ratio on the basis of past data, on the basis of established ratios, the demand for manpower is estimated. Ex. Production level in 1994-1995 = 50,000 units, no. of workers in 1994-1995 = 50, ratio = 50 / 50,000 = 1 / 1000, Estimated production in 1995-1996 = 60,000 units, no. of workers required in 1995-1996 = 60,000 / 1000 = 60 workers.
Process of HRP
1. Analysing organisational plan: First of all, the objectives and plans of the company are analysed. Plans related to technology, production, marketing, finance, expansion and diversification give and idea about the future activity. Each plan can further be analysed into sub-plans and detailed programme.
2. Manpower demand forecasting: On the basis of corporate and functional plans, and future needs and human resources in the organization are anticipated. There are various techniques used in manpower forecasting.
3. Forecasting supply of human resources: After forecasting of manpower requirements, supply of manpower is forecasted. There are two sources of supply of manpower for any organization- internal (like promotion and transfer) and external (like new procurement of manpower).
4. Estimating manpower gaps: manpower gap can be identified by comparing manpower demand and its supply.
5. Action planning: Once the manpower gaps are identified, plans are prepared to bridge these gaps. Surplus manpower may be redeployed in other departments / units. Deficit manpower can be met through recruitment, promotion and transfer.
6. Monitoring and control: Once the action plans are implemented, the human resource structure and system need to be reviewed and regulated.
- The process by which management determines how an organization should move from its current manpower position to its desired manpower position.
- Through it management tries to have the right number at the right place at the right time.
- It includes all activities managers do to forecast current and future HR needs.
- It falls into the wider area of employee resourcing (planning for, acquiring and allocating the desired human resources for the organisation).
- HRP entails knowing in advance what the staffing needs of the organisation will be, assessing the supply of the relevant workers in the organisation and labour market, and finding ways to fulfil the staffing needs of the organisation.
- It must be done prior to recruitment and selection
- Demand forecasts made by managers estimate the number & qualifications the firm will need.
- Supply forecasts estimate the availability and qualifications of current workers and those in the labor market.
- In short HRP may be defined as the process of determining manpower needs and making plan to meet these needs.
- Successfully planning and handling labour needs can thus be a competitive advantage or disadvantage.
- Companies who make and implement better HRP strategies than others will adjust better to environmental changes and have the most suitable workforces.
Objectives of HRP
1. To ensure optimum use of existing human resources.
2. To forecast future requirements for human resources.
3. To link human resource planning with organizational planning.
4. To asses the surplus and shortage of humans resources.
5. To anticipate the impact of technology on jobs and human resources.
6. To estimate cost of human resources and housing needs of employees.
7. To determine the levels of recruitment and training.
8. To estimate the use and efficiency of human resource.
9. To meet needs of expansion and diversification programmes.
Need, significance and Importance of HRP:
1. It is helpful in recruitment, selection and training activities.
2. it identifies gaps in existing manpower in terms of their quality and quantity.
3. It helps in replacing employees who retire, die, resign and injured.
4. It helps in providing manpower for expansion and diversification of an organization.
5. It helps in anticipating the cost of human resources by avoiding both shortage and surplus of manpower.
6. It helps in planning for physical facilities like canteen, staff quarters, hospitals and schools.
Techniques employed in HR forecasting
1. Managerial Judgment: - Under this method experienced managers estimated the manpower requirements for their departments on the basis of expected future workload and employee efficiency. These departmental estimates are then aggregated and approved by top management. This very simple and time saving method and suitable for small organizations.
2. Delphi Technique:- This method is used in group decision making in small groups and for forecasting human resource needs in two forms, first it can be used to know the trends for changing job profile and consequently, the changing personnel profile across the country or at international level, secondly it can be used to solicit views of experts in different functional areas of an organization about the changing profile of personnel in their respective departments in light of changing environment. Such views are collected and summarized by HR department to arrive at decision about the types of personnel needed in future.
3. Work study method:- In this method time and motion study are used to analyse and measure the work being done. Under this method the standard time required for one unit of work in decided and then on the basis of productive hoiur, number of workers are estimated. Example output for the next year = 50,000 units, standard hour per unit= 2 hrs, Total hours required= 50,000 x 2= 100,000 hrs, Productive hours / worker = 2,000 hrs, Total workers required = 100,000 / 2,000 = 50 workers.
4. Job trend analysis:-Under this method ratio on the basis of past data, on the basis of established ratios, the demand for manpower is estimated. Ex. Production level in 1994-1995 = 50,000 units, no. of workers in 1994-1995 = 50, ratio = 50 / 50,000 = 1 / 1000, Estimated production in 1995-1996 = 60,000 units, no. of workers required in 1995-1996 = 60,000 / 1000 = 60 workers.
Process of HRP
1. Analysing organisational plan: First of all, the objectives and plans of the company are analysed. Plans related to technology, production, marketing, finance, expansion and diversification give and idea about the future activity. Each plan can further be analysed into sub-plans and detailed programme.
2. Manpower demand forecasting: On the basis of corporate and functional plans, and future needs and human resources in the organization are anticipated. There are various techniques used in manpower forecasting.
3. Forecasting supply of human resources: After forecasting of manpower requirements, supply of manpower is forecasted. There are two sources of supply of manpower for any organization- internal (like promotion and transfer) and external (like new procurement of manpower).
4. Estimating manpower gaps: manpower gap can be identified by comparing manpower demand and its supply.
5. Action planning: Once the manpower gaps are identified, plans are prepared to bridge these gaps. Surplus manpower may be redeployed in other departments / units. Deficit manpower can be met through recruitment, promotion and transfer.
6. Monitoring and control: Once the action plans are implemented, the human resource structure and system need to be reviewed and regulated.
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