Human resource planning has been defined as “the process by which the management determines how an organization should move from the current manpower position to its desired manpower position. Through it management strives to have the right number and the right kind of people at the right places. At the right time, doing things which result in both the organization and the individual receiving maximum long range benefits. Learn more..HR Planning_final
Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications.
Job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and accountabilities of a job.
A job is a collection of tasks that can be performed by a single employee to contribute to the production of some products or service provided by the organization. Each job has certain ability recruitments (as well as certain rewards) associated with it. Job analysis is the process used to identity these requirements.
Specifically, job analysis involves the following steps:
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 that are required on the job.
Some of the definitions of job-analysis are given here under lo understand the meaning of the term more clearly.
According to Dale Yoder, “Job analysis is the procedure by which the .acts with respect to each job are systematically, discovered and noted. It is sometimes called ‘Job study’ suggesting the care with which tasks, processes, responsibilities and personnel requirements arc investigated”.
According to Michael J. Jucins, “‘Job’ analysis refers to the process of gathering information about the operations, duties and organizational aspect of jobs in order to write up specifications or as they are called by some job descriptions”.
According to £dwia B. Flippo, “Job analyst is the process of studying and collecting information relating to the operations and responsibilities of specific job”.
According to Harry 1_ Wylic, “Job analysis deals with the anatomy of a job embodying every known and determinable factor, including the duties and responsibilities involved in its performance, the conditions under which the performance is carried on, the nature of the task, the qualities required in the worker and such condition* of employment as pay. hours, opportunities and privileges”.
According to Donald, “Job analysis is a method of scientifically dissecting a job in order to determine the component elements and their influence upon the length of learning period of the worker, production and labor turnover*.
Uses/Purposes/Significance of Job Analysis
Good personnel management demands both the employee and the employer to have a understanding of the duties and responsibilities to be performed on a job. Job analysis helps in this understanding by drawing attention to a unit of work and its linkage with other units of work. More specifically, .tile uses of job analysis may be summarized thus:
Human Resource Planning: Job analysis helps in forecasting human resource requirements in terms of knowledge and skills. By showing lateral and vertical relationships between jobs, it facilitates the formulation of a systematic promotion and transfer policy. It also helps in determining quality of human resources needed in an organization
Recruitment: Job analysis is used to find out how and when to hire people for future job openings. An understanding of the skills needed and the positions that are vacant in future helps managers to plan and hire people in a systematic way.
Selection: Without a proper understanding of what is to be done on a job, it is not possible to select a right person. .
Placement and Orientation: After selecting people, we have to place them on jobs best suited to their interests, activities and aptitude. If we are not sure about what needs to be done on a job, it is no: possible to identify the right person suited for the job.
Training: If there is any confusion about what the job is and what is supposed to be done, proper training efforts cannot be initiated. Whether or not a current or potential job holder requires additional training can be determined only after the specific needs of the jobs have been identified through a job analysis.
Counseling: Managers can properly counsel employees about their careers when they understand the different jobs in the organization. Likewise, employees can better appreciate their career options when they understand the specific needs of various other jobs. Job analysis can point out areas that an employee might need to develop to further s career.
Employee Safety: A thorough job analysis reveals unsafe conditions associated with a job. By studying how the various operations are taken up in a job, managers can find unsafe practices. This helps in rectifying things easily.
Performance Appraisal: By comparing what an employee is supposed to be doing (based on job analysis) to what the individual has actually done, the worth of that person can be assessed. Ultimately, every organization has to pay a fair remuneration to people based on their performance. To achieve this, it ts necessary to compare what individuals should do (as per performance standards) with what they have actually done (as per job analysis).
Job Design and Redesign: Once the jobs are understood properly, it is easy to locate weak spots and undertake remedial steps. Wc can eliminate unnecessary movements, simplify certain steps and Improve the existing ones through continuous monitoring. In short, we ca redesign jobs to match the mental make-up of employees.
Job Evaluation: Job analysis helps in finding the relative worth of a job, based on criteria such as degree of difficulty) type of work done, skills and knowledge needed, etc. This, in rum, assists in designing proper wage policies, with Internal pay equity between jobs.
Discipline: Job analysis studies the failure of the workers to meet the required standard of performance. Corrective measures may be taken in time to avoid untoward situations. In this way, it helps In maintaining discipline In The organization,
Labor Relations: Job analysis will be helpful in improving labor management relations. It can also be used to resolve disputes and grievances relating to work load, work procedures, etc.
Compensation and Benefits: In the area of compensation, it is helpful to know the relative value of a particular Job to the company before a dollar value Is placed on it. From an internal perspective, the more significant its duties and responsibilities, the more the job is worth. Jobs that require greater knowledge, skills, and abilities should be worth more to the firm.
Legal Consideration : A proper prepared job analysis is particularly important for supporting the legality of employment practices. In fact, the importance of job analysis is well documented in the Uniform Guidelines on Employee Selection Procedures. Job analysis data ore needed to defend decisions involving promotion, transfers, and demotions, e.g., job analysis provides the basis for tying the functional areas together and the foundation for developing a sound human resource program.
HUMAN RESOURCE PLANNING (HR PLANNING)
Human resource planning has been defined as “the process by which the management determines how an organization should move from the current manpower position to its desired manpower position. Through it management strives to have the right number and the right kind of people at the right places. At the right time, doing things which result in both the organization and the individual receiving maximum long range benefits”.
According to Bruce P. Coleman, “Manpower Planning is the process of determining manpower requirements in order to carry out the integrated plan of the organization”.
According to Edwin B. Geisler, “Manpower Planning is the process (including forecasting, developing, implementing and controlling) by which a firm ensures that it has the right number of people and the right kind of people, at the right places, at the right time, doing things for which they are economically most useful”.
According to Leon C. Megginson, “Human resource planning is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members”.
According to E. W. Vetter, “Human resource planning is a process by which an organization should move from its current manpower position to its desired manpower position. Through planning, management strikes to have the right number and right kinds of people, at the right places, at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit”.
Characteristics of HR Planning
- Human Resources Planning like all planning is forward looking or future oriented. It involves forecasts of the manpower needs in a future time period so that adequate and timely provisions may be made to meet the needs.
- Human Resources Planning is an ongoing and continuous process because the demand for the supply of human resources undergo frequent changes. It is not static but subject to review and revision in accordance with the needs of the organization and the changing environment.
- Human Resources Planning is an integral part of the corporate planning, without a corporate plan, there can be no manpower plan, whether or not the manpower plans meet the organization requirements and are in tune with the reality depends on how clearly the goals are defined.
- The basic purpose of the Human Resources Planning is to make optimum utilization of an organization current and future human resources. In order to maximize the return of investment. It is necessary to relate the future human resources to future needs of the organization.
- Human Resources Planning has both qualitative and quantitative aspects. The former implies the right number of employees while the later means the right talent required in the organization.
- Human Resources Planning is the primary responsibility of management so as to ensure effective utilization of the organization human resources.
- Human Recourse Planning is a systems approach to human resources, in it the information about the demand and supply of human resources constitutes the input . Comparison and evaluation of demand and supply so as to identify the gap between the two is the transformation process. The outputs of human resources planning are the strategy and programme formulate to bridge the gap.
OBECTIVES OF THE HR PLANNING
- Forecasting Human Resource Requirements: Human resource planning is essential to determine the future human resource needs in an organization. In the absence of such a plan, it would be difficult to have the services of the right kind of people at the right time.
- Effective Management of Change: Proper planning is required to cope with changes in market conditions, technology products, and government regulations in an effective way. These changes call for continuous allocation or reallocation of skills and in the absence of planning there might be under-utilization of human resource.
- Realizing Organizational Goals: In order to meet the needs of expansion programs and growth strategies-of the organizations planning is essential.
- Promoting Employees: The database available provides a comprehensive skill repertoire, which facilitates for decision making as to the promotional opportunities to be made available for the organization.
- Effective Utilization of Human Resource: This database is also useful for identifying surplus and unutilized human resource and resources. In times of downsizing or in estimating the cost-benefit analysis of human resources would add value to the process.
- Facilitates Economic Development: At the national level, manpower planning is essential for economic development. It is particularly helpful in the generation of employment in educational reforms and in geographical mobility of talent.
Helps Fill the Gap: Manpower planning identifies the gaps in existing manpower so that suitable training programs may be developed for building specific skills, required in future.
CHALLENGES OF HRM
Globalization: Globalization is not new, but now it is more rapid and pervasive. Globalization has brought in the problems of increased business competition, more uncertainty, cross-cultural issues, compensation issues (multicurrency, taxation), etc. to forefront Globalization influences the number and kinds of job that are available and requires organizations to balance a complicated set of issues related to managing people in different cultures, legal environments, and business conditions. Human resources function of selection, ton compensation has to be adjusted to take into account the differences in global management
New Technology: Advanced technology has tended to reduce the number of jobs that require little skills to increase the number of jobs that require considerable skill, a shift, moving from ‘work’ to ‘knowledge work’. This displaces some employees and requires that others be re-trained. In addition, information technology has influenced human resource management through Human Resources Information System (HRIS) that streamline the processing of data and makes human resources information more readily available to managers/decision-makers.
Managing Change: Both proactive and reactive change initiatives require human resource management to work with line management and Senior Executive to create a vision for the future, establish an architecture that enables change, and communicate with human resources about the process of change.
Market Challenges: In order to respond to customer needs better, faster, and more economically, organizations have to institutionalize Total Quality Management (TQM) and re-engineering programmes. Each of these programs requires that human resource management be involved in changing work processes, training, job design compensation, etc. Human Resources issues also arise when communicating with employees about the new work systems, just as with any change initiative.
Containing Costs: In order to contain costs, organizations have been downsizing, outsourcing, leasing human resources and enhancing productivity. Human resource management has to maintain the relationship between the organization and its human resources, while implementing these changes.
Demographic Challenges: The workforce is becoming increasingly diverse (global workplace) and organizations are doing more to address employee concerns and to maximize the benefits of different kinds of employees. Demographic changes, social and cultural differences and changing attitudes can provide a rich source of variety for organizations. But to benefit from diversity, human resource management needs to recognize the potential concerns of employees and make certain that the exchange between the organization and human resource is mutually beneficial;
Partnership between Line Management and Human Resource Management: In working with Line Management to address the organizations challenges, human resources management plays a number of important roles pertaining to advice and counseling of various service activities for policy formulations and implementation ana” for employee advocacy. To perform these roles effectively, human resource management must contribute business competencies, state of the art human resources competencies and change management competencies. Ultimately, managing human resources is rarely the exclusive responsibility of the human resource management function. Every Manager’s job is to manage people, and successful organizations are those that combine the expertise of human resources Specialists with the experience of line managers to develop and utilize Ihe talents of human resources to their greatest potential.
Skill Shortages: Due to increased relevance of human resources, recruiting and retaining competent employees is an upheaval task. Every organization tries to poach on the best human resources of its rival companies/industry. Human Resources Management can formulate and implement policies and practice to resolve these challenges by:
- Providing performance based pay.
- Emphasizing benefits of longer employment
- Improving the image of ccporate.
- Increasing the reach of attracting capable employees and keeping tab on existing human resources.
Knowledge Management: With increasing use of knowledge, managing knowledge for the future is of paramount importance. Knowledge Management includes:
- Development of new information,
- Utilization of exiting information.
The challenge for human resources management is to create knowledge management system that promotes both the development of knowledge and its utilization. Th:s challenge can be dealt by human resources management by:
- Knowledge by Dialogue: Facilitating and promoting exchange of tacit information between seasoned employees and newcomers.
- Knowledge by. Codification: The challenge related to knowledge stored in written form can be dealt by exploring new avenues created by IT to improve acquisition and sharing process.
- Creating an “E-Culture: To overcome the reluctance of people to utilize the new knowledge management system by promoting project for continuous learning and improvement of IT capabilities.
Changing Power Structures: Flattening of hierarchy has resulted in a change of traditional power structures, allowing more people to access information, especially in knowledge driven organizations thereby altering controllers of power. Human Resource Management can meet this challenge by increasing awareness and providing platform for shared learning, common understanding of goals and values and use of common language through suitable organizational reinforcement techniques and measures.
Challenge Relating to Training: The key concern of contemporary business organization is creating training programmes that best suit the learning needs of the organization. But, the problem is whether it is more effective to develop programmes centrally or design each one to meet the uniqueness of individuals. Human resource management .can meet this challenge by innovative and strategic training programmes, e-learning, encouraging self-development through self-study and suitable networking for training programmes.
Challenge of Diversity and Equality: With increasing spread of education, a large number of women are becoming part of an ever-increasing workforce. However, the number of women in top and middle management jobs is relative!; very small, i.e., 22% human resource management has to improve gender and diversity balances in organizations.
Challenge Pertaiging to Organization Culture: With increasing emphasis on human resource competency, building, changing and sustaining a vibrant, dynamic and responsive work culture is a daunting task. Also, many managers fear modern methods of human resource management and are themselves obstacles in achieving the full potential of human resources and the benefits of human resource management techniques.
Challenge of Emerging Workplace Issues: Since the workforce profile has changed significantly, the aspirations and demands of people on such issues as employee privacy, prevention of sexual harassment business ethics, etc., has attained utmost priority. Human Resource Management can meet this challenge by encouraging management to respect employee privacy issues, encouraging employee ethical practices, providing channels for prevention of sexual harassment, etc., both to female and male employees. Human Resource Management also has to initiate proactive action with regard to dealing with terror, trauma and tragedy in the workplace.
CHANGING ENVIRONMENT OF HRM
Business environment is changing environment and so, is HR environment. The changing environment of HRM includes workforce diversity, economic, and technological change, globalization, organizational re-structuring, changes in the nature of jobs, and work, and so on.
Workforce Diversity: Diversity has been defined as any attribute that humans are likely to use to tell themselves, that person is different from me and, thus, includes such factors as race, sex, age, values, and cultural norms. The Indian workforce is characterized by such diversity that is deepening and spreading Jay-by-day. It is likely to be more diverse as women, minority-group members, and older workers flood the workforce. With the increasing number of women entering the workforce due to a combination of factors like women’s emancipation, economic needs, greater equality of sexes, education, and so on, additional pressures of managing a different set of problems at the work place have arisen. As such, the number of women is on increase in all walks of life, i.e., teachers, lawyers, doctors, engineers, accountants, pilots, parliamentarians, and so on.
However, increasing number of women in the workforce has been necessitating the implementation of more flexible work scheduling, child care facilities, maternity and now paternity leave also and transfer to location of husband’s place of posting. Also, as the workforce ages, employers will have to grapple with greater health care costs and higher pension contributions. On the whole, the increased diversity of workforce will place tremendous demands on the HR management function.
Further, creating unanimity from a diverse workforce has also become a challenge for HR manager. This is because, as several experts put it, diversity is marked by two fundamental and inconsistent realities operating today with it. One is that organizations claim they seek to maximize diversity in the work place, and maximize the capabilities of such a diverse workforce. The other is that traditional human resources system will not allow diversity, only similarity. These experts emphasize that employers traditionally hire, appraise, and promote people who fit a particular employer’s image of what employees should believe and act like. At the same time, there is corresponding tendency to screen out those who do not fit.
Economic and Technological Change: Along with time, several economic and technological changes have occurred that have altered employment and occupational pattern. In India too, there is a perceptible shift in occupational structure from agriculture to industry to services. The New Economic Policy, 1991 has led to liberalization and globalization giving genesis to multinational organizations with their multicultural dimensions having certain implications for HRM.
Technology has become the hallmark of the modem organizations. As such, modern rganizations have become the technology-driven organizations. So to say, men are replaced by machinery. For example, manufacturing technology has changed to automation and robotization. Manufacturing advances like these will eliminate many blue-collar jobs, replacing them with fewer but more highly skilled jobs. Similar changes are taking place in office automation, where personal computers, word processing, and Management Information System (MIS) continue to change the nature of office work.
The explosive growth of information technology linked to the Internet has ushered in many changes throughout the organization. One of the major changes led by information technology is that it has hastened what experts call the “fall of hierarchy”, i.e., managers depend less and less on yesterday’s “stick-to-the -chain-of-command approach”, to their organizing function. This is so becauseearlier it used to be, if one wanted information, one had to go up, over and down through the organization. Now, one just taps in. That’s what broke-down the hierarchy. Now employees do not need to be present a definite work place. Instead, they can work from their own places/residences through the net. This has given genesis to a new breed of organizations, called ‘Virtual Organizations’ (VO).
In summary, these economic and technological changes have created an altogether different environment for HRM.
Globalization: The New Economic Policy, 1991 has. among other things, globalized the Indian economy. There has been a growing tendency among business firms to extend their sales or manufacturing to new markets aboard. The rate of globalization in the past few years in India has been nothing short of phenomenal. Globalization increases competition in the international business. Finns that formerly competed only with local firms, now have to compete with foreign firms/competitors. Thus, the world has become a global market where competition is a two-way street.
Globalization has given genesis to the Multinational Corporations (MNCs). The MNCs are characterized by their cultural diversities, intensified competition, variations in business practices and so on. As an international business expert puts it, “the bottom line is that the growing integration of the world economy into a single, huge market place is increasing the intensity of competition in a wide range of manufacturing and service industries.
Given these conditions, from tapping the global laborforce to formulating selection, training and compensation policies for expatriate employees have posed major challenges for HRM in the next few years. This has underlined the need for studying and understanding HRM of multinational organizations or international organizations separately.
Organizational Re-Structuring: Organizational re-structuring is used to make the organization competitive. From this point of view, mergers and acquisitions of firms have become common forms of restructuring to ensure organizational competitiveness. The mega-mergers in the banking, telecommunications and petroleum companies have been very visible in our country. Downsizing is yet another form of organizational re-structuring. As a part of the organizational changes, many organizations have “rightsized” themselves by various ways like eliminating layers of managers, closing facilities, merging with other organizations or outplacing workers. There has been a practice to flatten organizations by removing several layers of management and to improve productivity, quality, and service while also reducing costs. Whatever be the form of re-structuring, jobs are re-designed and people affected. One of the challenges that HRM faces with organizational re-structuring is dealing with the human consequences of change. For example, the human cost associated with downsizing has been much debased and discussed in the popular press. As such, HRM needs to focus on the changed scenario uniquely and that is not so simple. Thus, management of HR activities has become crucial for HR managers.
Changing Nature of Work: Along with changes in technology and globalization, the nature of jobs and work has also changed. For example, technological changes like introduction of fax machines, information technology, and personal computers have allowed companies to relocate operations to locations with lower wages. There is also a trend toward increased use of temporary or part-time workers in organizations.
One most significant change in the nature of work is that, it has changed from manual to mental/knowledge work. The organizations are giving and will give growing emphasis on their human capital, i.e., the knowledge, education, training, skills and expertise of employees, the expense of physical capital like equipment, machinery and physical plant. This growing emphasis on education and human capital has, among other things, changed the nature of economy as service-oriented economy. In the changed economic scenario, jobs demand a certain level of expertise that is far beyond that requited of most workers 20 or 30 years ago. This means that companies are relying more on employee’s creativity and skills, i.e., employee’s brain power.
As such, the HR environment has changed. The challenge posed by changed environment is fostering intellectuals or human capital needs managing these differently than those of previous generation.
FUNCTIONS OF HRM
The functions are a mixture of behavior analysis, policy formulations and maintenance of good interpersonal relations. These include:
- Conducting job analyses (determining the nature of each employee’s job) Planning labor needs and recruiting job candidates
- Selecting job candidates
- Orienting and training new employees
- Managing Wages and Salaries (how to compensate employees) Providing incentives and benefits
- Appraising performance and Communicating (interviewing, counselling, disciplining)
- Training and developing
- Building employee commitment
- Equal opportunity and affirmative action
- Employee health and safety
- Grievances and labor relations
The Functions of HRM can be broadly classified into two categories
- Managerial Functions
- Operative Functions
Managerial Functions : HR Manager performs the functions of planning, organizing, directing and controlling.
- Planning : Planning like all planning is forward looking or future oriented. It involves planning of Human resources, requirements, recruitment, selection, training etc. It involves the forecasting of manpower need, changing values, attitudes and behavior of employees and their impact on organization.
- Organising : It is a process of achieving a goal by organizing people and other resources. It established a relationship among the employees to attain a companies goal.
- Directing : It is a very important function in the management of any enterprise. It helps the managers in ensuring quality performance of jobs by the employees and achievement of organisational goals. It involves supervision, communication and providing leadership to the subordinates and motivating them to contribute to their best of capability. In this lesson we shall learn about this function in detail.
- Coordinating : Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing, directing and controlling. That is why, co-ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key to success of management. Co-ordination is the essence of management and is implicit and inherent in all functions of management.
- Controlling : Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.
Operative Functions :
The operative functions of personnel management are related to specific activities of personnel management viz, employment, development, compensation and relations. All these functions are interacted by managerial functions. Further these functions are to be performed in conjunction with management functions.
Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility.
Job Analysis: It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes:
1. Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials.
2. Preparation of job description, job specification, job requirements and employee specification which help in identifying the nature, levels and quantum of human resources.
3. Providing the guides, plans and basis for job design and for all operative functions of HRM.
Human Resources Planning:
It is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. It involves
- Estimation of present and future requirement and supply of human resources basing on objectives and long range plans of the organization.
- Calculation of net human resources requirement based on present inventory of human resources.
- Taking steps to mould, change, and develop the strength of existing employees in the organization so as to meet the future human resources requirements.
- Preparation of action programs to get the rest of human resources from outside the organization and to develop the human resources of existing employees.
It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It deals with:
(a) Identification of existing sources of applicants and developing them.
(b) Creation / Identification of new sources of applicants.
(c) Stimulating the candidates to apply for jobs in the organization.
(d) Striking a balance between internal and external sources.
It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an applicant with a view to appraising his / her suitability to a job appraising.
This function includes:
(a) Framing and developing application blanks.
(b) Creating and developing valid and reliable testing techniques.
(c) Formulating interviewing techniques.
(d) Checking of references.
(e) Setting up medical examination policy and procedure.
(f) Line managerial decision.
(g) Sending letters of appointment and rejection.
(h) Employing the selected candidates who report for duty.
Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employees specifications with job requirements. This function includes:
(a) Counseling the functional managers regarding placement.
(b) Conducting follow-up study, appraising employee performance in order to determine employees adjustment with the job.
(c) Correcting misplacements, if any.
Induction and Orientation: Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes and people etc., of the organization.
(a) Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc.
(b) Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates.
(c) Mould the employee attitude by orienting him to the new working and social environment.
2. Human Resource Development :
Human resource development refers to the process whereby the employees are continuously helped in a planed way to
- Acquire or sharpen capabilities required to perform various tasks associated with their present /future expected roles.
- Develop their general capabilities as individuals so that they are able to discover and exploit their own inner potential for their own and/or organizational development purpose.
- Develop an organizational work culture where superior subordinate relationships, team work and collaboration among different units are strong and contribute to the professional well – being , motivation and pride.
This Function includes :
Performance Appraisal : It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development . It Includes :
- Developing policies, procedures and techniques
- Helping the functional managers
- Reviewing of reports and consolidation of reports
- Evaluating the effectiveness of various programs
Training : It is the process of imparting the employees the technical and operating skills and knowledge . It includes
- Identification of training needs of the individuals and the company
- Developing suitable training programs
- Helping and advising line management in the conduct of training programs
- Imparting of requisite job skills and knowledge to employees.
- Evaluating the effectiveness of training programs.
Management Development : It is the process of designing and conducting suitable executive developments programs so as to develop the managerial and human relation skill of employees. It Includes :
- Identification of the areas in which management development is needed.
- Conducting development programs
- Motivating the executives
- Designing special development program for promotions
- Using the service of specialists, and /or utilizing of the institutional executive development programs.
- Evaluating the effectiveness of executives of executive development programs.
Career Planning and Development : It is the planning of one’s career and implementation of career plans by means of education, training job search and acquisition of work experience. It includes internal and external mobility.
a) Internal Mobility: It includes vertical and horizontal movement of an employee within an organization. It consists of transfer, promotion and demotion.
Transfer: It is the process of placing employees in the same level jobs where they can be utilized more effectively in consistence with their potentialities and needs of the employees and the organization. It also deals with:
- Developing transfer policies and*procedures.
- Guiding employees and line management on transfer. ,
- Evaluating the execution of transfer policies and procedures.
Promotion: It deals with upward reassignment given to an employee in the organization to occupy higher position which commands better status and/or pay keeping in view the human resources of the employees and the job requirements.
- This function covers the formulating of equitable, fair and consistent promotion policies and procedures.
- Advising line management and employees on matters relating to promotion.
- Evaluating the execution of promotion policies and procedures.
Demotion: It deals with downward reassignment to an employee in the organization.
- Develop equitable, fair and consistent demotion policies and procedure.
- Advising line managers on matters relating to demotions.
- Oversee the implementations of demotion policies and procedures.
b) External Mobility: External mobility is of two types, viz., accessions and separations.
Accessions: Accessions are additions of new candidates to the existing employees. Accessions include employment of new candidates, re-employment of former employees, employees called back to work after lay-off, etc.
Separations: Separations mean termination of employment. They are also called employee turnover. They include:
- Voluntary Quit: Voluntary quit or resignations by employees when they arc dissatisfied with the present job and/or organization, or when they get better employment in other organizations.
- Lay-off or Lack of Work: Organizations terminate the services of employees when the jobs are eliminated or reduced due to adoption to technology or adverse business conditions or lack of power, materials, breakdown of machinery, etc.
- Disciplinary Lay-off or Discharge: Organizations terminate the services of employees if they are dissatisfied with the performance or conduct of employees.
- Retirement, and
- Deaths: Stages in External Mobility: There are four stages in external mobility, viz.: Exploration, Establishment including mutual recruitment, acceptance to the recruitment conditions, entry, having first job assignment settlement, transfer, promotion and granting of tenure. Maintenance stage, and Decline stage.
Organization Development: It is a planned process designed to improve organization effectiveness and health through modifications in individual and group behavior, culture and systems of the organization using knowledge and technology of applied behavioral science.
3) Compensation: It is process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures, etc.
Job Evaluation: It is the process of determining relative worth of jobs;
a) Select suitable job evaluation techniques.
b) Classify jobs into various categories.
c) Determining relative value of jobs in various categories.
Wage and Salary Administration: This is the process of developing and operating a suitable wage salary program. It covers:
a) Conducting wage and salary survey.
b) Determining wage and salary .rates based on various factors.
c) Administering wage and salary programs.
d) Evaluating its effectiveness.
Incentives: It is the process of formulating, administering and reviewing the schemes of fir incentives in addition to regular payment of wages and salary. It includes:
a) Formulating incentive payment schemes.
b) Helping functional managers on the operation.
c) Review them periodically to evaluate effectiveness.
Bonus: It includes payment of statutory bonus according to the Payment of Bonus Act, 1956 and its latest amendments.
Fringe Benefits: These are the various benefits at the fringe of the wage Management provides these benefits to motivate the employees and to meet their life’s contingencies. These benefits include:
a) Disablement benefit.
b) Housing facilities
c) Educational facilities to employees and children.
d) Canteen facilities. Recreational facilities.
e) Conveyance facilities.
f) Credit facilities.
g) Legal clinic.
h) Medical, maternity and welfare facilities. i) Company stores.
Social Security Measures: Managements provide social security to their employees in addition to the fringe benefits. These measures include:
- Workmen’s compensation to those workers (or there dependents) who involve in accidents.
- Maternity benefits to women employees.
- Sickness benefits and medical benefits.
- Disablement benefits/allowance.
- Dependent benefits.
- Retirement benefits like provident fund, pension, gratuity etc.
Human Relations: It is the process of interaction among human being. Human relations is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. It includes:
- Understanding and applying the models of perception, personality, learning, intra and inter personal relations, intra and inter group relations,
- Motivating the employees,
- Boosting employee morale,
- Developing the communication skills,
- Developing the leadership skills.
- Redressing employee grievances properly and in time by means of a well formulated grievance procedure.
- Handing disciplinary case by means of an established disciplinary procedure,
- Counseling the employees in solving their personal, family and work problems and releasing-their stress, strain and tensions
- Improving quality of work life of employees through participation and other means.
To study procurement and retention process in the organization. To analyze the effectiveness of procurement and retention aids in the organization. To make the company aware about the areas in which it needs improvement. To analyze the methodology which the company is following. DOWNLOAD COMPLETE PROJECT A STUDY ON PROCUREMENT AND RETENTION
Introduction to Human resource management
A Textbook Definition Bratton and Gold define HRM as:
“… a strategic approach to managing employment relations which emphasises that leveraging people’s capabilities is critical to achieving sustained competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices”.
Human Resource Management may be defined as the art of procuring, developing nad maintaining competent workforce to achieve organizational goals efficiently.
According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals”.
According to Byars and Rue, “HRM encompasses those activities that are designed to provide for and coordinate the human resources of an organization”.
According to Flippo, HRM is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the objectives are accomplished”
Nature of HRM
Broader function : Human Resource Management is a comprehensive function because it is about managing people in the organization. It covers all types of people in the organization from workers till the top level management.
People oriented : Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved.
Action oriented : Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures.
Development oriented: Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization.
Integrating Mechanism : HRM tries to build and maintain cordial relations between people working at various levels in the organization.
Continuous function : As human resource is a living factor among all factors of production therefore it requires continuous improvement and innovations in order to get excellence. So it requires a constant alertness and awareness of human relations and there importance in every day to day operations.
Future oriented : HRM is very important activity which helps organization to achieve its objectives in future by providing well motivated and competent employees.
FEATURES OF HRM
1. Management Discipline : It is not a discipline in itself, but a part of the Management discipline. As it is a discipline of Management studies, it describes the management concepts , principles and techniques and apply these in the management human resources.
2. As a Process : HRM is a process of four functions :-
Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of staff.
Development of human resources : This function includes Training and Development and Career development. The knowledge, skills, attitudes and social behavious of the staff are developed.
Motivation of human resources : This function includes giving recognition and rewards to the staff. It also includes Performance Appraisal and handling the problems of staff.
Maintenance of human resources : This function includes providing the best working conditions for employees. It also looks after the health and safety of the staff.
Continuous Process : HRM is not a one-time process. It is a continuous process. It has to continuously change and adjust according to the changes in the environment, changes in the expectations of the staff, etc. HRM has to give continuous training and development to the staff due to changes in technology.
Concerned with people : HRM is concerned with all types of personnel in the organization. It deals with top level to the supervisory and operatives. HRM is not only concerned with people in the organization but also with the people having potential to be bought in the organization.
Achievement of Objectives : Achievement of goals of an organization can be obtained by providing proper tools and techniques of HRM.
HRM can be applied in business as well as other organizations organisations such as schools, colleges, hospital, religious organisations, etc.
Integrated use of Subsystems
HRM involves the integrated use of sub-systems such as Training and Development, Career Development, Orgnisational Development, Performance Appraisal, Potential Appraisal, etc. All these subsystems increase the efficiency of the staff and bring success to the organisation.
Developes Team Spirit
HRM tries to develop the team spirit of the full organisation. Team spirit helps the staff to work together for achieving the objectives of the organisation. Now-a-days more importance is given to team work and not to individuals.
Develops Staff Potentialities
HRM develops the potentialities of the staff by giving them training and development. This will make the staff more efficient, and it will give them more job satisfaction.
Long Term Benefits
HRM brings many long term benefits to the individuals (staff), the organization and the society. It gives many financial and non-financial benefits to the staff. It improves the image and profits of the organization. It also provides a regular supply of good quality goods and services at reasonable prices to the society.
Scope of the HRM
The scope of HRM is very immense. HRM plays a vital role of a worker from the time he enters into any organization till he leaves. HRM activities include –
1. Procurement : It the placement of right kind of personal to the right post. It includes, determination of manpower requirements. Job analysis, Nature and scope of requirement, employee selection and placement of employment.
2. Training and Development : Training and Development is a must in any organization. It prepares the worker to the actual situations in the orgnisation.
3. Job Analysis and Job Description : Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination.
4.Remuneration : Providing proper remuneration to the employees for the job done through job analysis and job description. It includes determining wage rates, incentives, wage payment, rewards and benefits and performance appraisal.
5. Welfare and Industrial Relations : It includes health and safety program, sanitary facilities, recreational facilities etc.
Performance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and is potential for future development. Learn More..PERFORMANCE APPRAISAL
Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of efficient personnel.
Recruiting is an ongoing project for any organization. From the moment an employment application is submitted, recruitment software should be there to rank it, match the applicant to job if necessary and place the information in a database that can share the information across different software applications or applicant tracking tasks, including scheduling interviews and sending out letters for every stage of the recruitment process.
It is the process of finding and attracting capable applicants of employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is pool of applicant from which new employees are selected.
– K. ASWATHAPPA.
Recruitment is the process of searching for prospective employees and stimulating them to apply for the jobs in the organization.
– EDWIN. B. FLIPPO
The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purpose is to:
1) Determine the present and future requirements of the organization in conjunction with its personal planning and job-analysis activities.
2) Increase the pool of job candidates at minimum cost.
3) Help to increase the success rate of the selection process by reducing the number of visibly under qualified or over qualified job applicants.
4) Help to reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time.
5) Meet the organization’s legal and social obligations regarding the composition of its workforce.
6) Begin identifying and preparing potential job applicants who will be appropriate candidates.
7) Increase organizational and individual effectiveness in the short term and long term.
8) Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.
Objectives of recruitment:
- To attract people with multi dimensional skills and experiences that suits the present and future organizational strategies.
- To induct the outsiders with a new perspective to lead the company
- To infuse fresh blood at all levels of the organization.
- To develop an organizational culture that attracts competent people to the company.
- To devise methodologies for assessing psychological traits.
- To seek out non-conventional grounds of talent.
- To design entry pay that competes on quality but not on quantum.
- To anticipate and find people for positions that does not exist.
The recruitment policy of any organization is derived from the personnel policy of the same organization. It includes:
- Government policies
- Personnel policies of other competing organizations
- Organization’s personnel policies
- Recruitment sources
- Recruitment needs
- Recruitment cost
- Selection criteria and preference etc
Sources of recruitment:
The sources of recruitment are broadly divided into internal and external sources.
- Present permanent employees
- Present temporary or casual employees
- Retrenched or retired employees
- Dependents of deceased, disabled, present and retired employees.
Why do organizations prefer internal sources?
- It can be used as a technique for motivation.
- Morale of the employees can be improved.
- Suitability of the internal candidates can be judged better than the external candidates as “known devils are better than unknown angels”.
- Cost of selection can be minimized.
- Trade unions can be satisfied.
- Stability of the employees can be ensured.
a) Campus recruitment:
Different types of organizations like industries, business firms, service organizations ,social organizations can get inexperienced candidates of different types from various educational institutions like colleges and universities. Many companies realize that campus recruitment is one of the best techniques for recruiting new blood. These include
- Short listing the institutes based on the quality of the students intake, faculty facilities and past track record.
- Offering the smart pay rather than high pay package.
- Presenting a clear image of the company and the corporate culture.
- Getting in early. Make an early bird offer.
- Include young line managers and business school and engineering school alumni in the recruiting team.
b) Private employee agencies:
Consultants in India perform the recruitment functions on behalf of a client company by charging fee. Line managers are relieved from recruitment functions so that they can concentrate on operational activities. Hence these agencies work effectively in the recruitment of executives.
c) Public employee exchanges:
The government set up public employment exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates.
d) Professional Organizations:
These organizations maintain complete bio-data of their members and provide the same to various organizations on requisition. They also act as an exchange between their members and recruiting firms in exchanging information, clarifying doubts etc.
e) Data banks:
The management can collect the bio-data of the candidates from different sources like employee exchange, educational training institutes, candidates etc and feed them in the computer. it will become another source and the company can get the particulars as and when it needs to recruit.
f) Casual applicants:
Depending upon the image of the organization, its prompt response, participation of the organization in the local activities, level of unemployment. Candidates apply casually for jobs through mail or handover the applications in the personnel department.
g) Similar organizations:
Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The management can get most suitable candidates from this source.
h) Trade unions:
Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter’s intimacy with management. In view of this fact and in order to satisfy the trade union leaders, management enquires trade unions for suitable candidates.
Reasons for external sources:
- Candidates can be selected without any pre-conceived notion or reservations.
- HR mix can be balanced with different background, experience and skill etc.
- Latest knowledge skill, innovative or creative talent can also be flowed in to the organization.
- Long run benefit to the organization in the sense that qualitative human resources can be brought.
These are the techniques by which the management contracts prospective employees or provides necessary information or exchanges ideas or stimulates them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates. Techniques useful to stimulate internal candidates are:
Techniques useful to stimulate external candidates:
- Present employees
Techniques of advertising aim at:
a) Attracting attention of the prospective candidates
b) Creating and maintaining interest
c) Stimulating action by the candidates
Modern sources and techniques of recruitment:
A number of modern recruitment sources and techniques are being used by the corporate sector in addition to traditional sources and techniques. These techniques include.
The busy organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore, they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.
The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs; the companies select the suitable candidates from among such candidates through the selection process.
c) Head Hunting (search consultants):
In this the professional organizations search for the most suitable candidates and advise the company regarding the filling up of the positions.
d) Body Shopping:
The prospective employees contact these organizations to recruit the candidates. These professional and training institutions are called body shoppers and these activities are known as body shopping.
e) Business Alliances:
Business alliances like acquisition, mergers and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis.
Organizations advertise the job vacancies through the World Wide Web (internet). The job seekers send their applications through e-mail or internet.