Human Resource Management: Unit I

INDIAN SCHOOL OF MANAGEMENT & STUDIES
Human Resource Management

Unit I
1 Concepts & Perspectives of Human Resource Management (HRM)
HRM is a process of bringing people and organizations together so that
the goals
of each are met. It is that part of the management process, which is
concerned
with management of human resources in an organization. In short, it
may be
defined as the art of procuring, developing and maintaining
competent
workforce to achieve the goals of an organization in an effective and
efficient
manner.
HRM has the following characteristics:

1. Pervasive Force
2. Action Oriented
3. Individual Oriented
4. People Oriented
5. Development Oriented
6. Interdisciplinary Function
7. Continuous Function
2 HRM in Changing Environment

HRM has extremely important roles to play in managing changing
environment. HRM has to visualize the future changes and start
preparing human resource functions keeping in line with those
changes. HRM also has to keep a strong watch on the response time
to changes as any delay in responding can cause huge losses to the
organization.
3 HRM Functions
1. Performance Appraisal
2. Potential Appraisal
3. Career Planning
4. Training and Employee Development
5. Organization Development
6. Rewards
7. Employee Welfare and Quality of Work Life
8. Human Resource Information
4 Role of HR Practitioners
Role of HR Practitioners is to ensure that all aspects of HRM are
managed
successfully and all HRM policies are implemented effectively and

efficiently.
5 HR Policies
1. Employee Involvement
2. Quality Circles
3. Socio Technical Systems
4. Self Management
5. Suggestion Programmes
6. Open Door Policy
(1)
These notes are only for guidance purposes and should not be used as substitutes of textbooks. The
students are
strictly advised to study prescribed textbooks comprehensively to develop thorough understanding of
the subject.


6 Corporate Objectives and Human Resource Planning
Corporate objectives shall normally be to decrease the costs, wastage, efforts
etc while
increasing the profits substantially. In these circumstances, HRM acts as a catalyst in
achieving
the above-mentioned objectives by effective and efficient functioning of human
resources.
Unit II
1 Job Analysis
Jobs Analysis is a formal and detailed examination of jobs. It is a
process of gathering information about a job. The job analysis involves
the identification of the required tasks, knowledge and the skills
necessary for performing them and the conditions under which they
must be performed.
2 Role Analysis
At operative levels, it is possible to write the job descriptions that
reflect what workers do while at work. At middle and higher
management levels, a clear definition of expected and unexpected job
related behavior is not possible. Role Analysis handles such situations.
A role is a set of expectations people have about the behavior of

person in a position.
3 Methods of Manpower Search

1. Internal Method (Promotions and Transfers, Job Posting, Employee
Referrals)
2. Direct Method (Campus Recruitment)
3. Indirect Method (Advertisements)
4. Third Party Method (Employee Search Firms, Employment
Exchanges,
Contractors)
4 Attracting and Selecting HR

Selection is the process of picking individuals who have relevant
qualifications
to fill jobs in an organization. The basic purpose is to choose the
individual who
can most successfully perform the job from the pool of qualified
candidates.
5 Induction and Socialization

Induction or orientation is the process through which a new
employee is introduced to the job and the organization. In other
words, induction is the process of receiving and welcoming an

employee when he first joins an organization and giving him the
basic information he needs to settle down quickly and start work.
Socialization is the process through which a new employee is

introduced to the people or his co-workers in the organization.
6 Manpower Training and Development

Training is the art of increasing the knowledge and skills of an
employee for
doing a particular job. The major outcome of training is learning. A
trainee
(2)
students are
the subject.


learns new habits, refined skills and useful knowledge during the
training that helps him in improving his performance.
Training often has been referred to as teaching specific skills and

behavior. Development, in contrast, is considered to be more general
than training and more oriented to the individual needs in addition
to the organizational needs and its most often aimed towards
management of people.
7 Career and Succession Planning

A career is a sequence of positions held by a person during the
course of a lifetime. It comprises of a series of work related
activities that provide continuity, order and meaning to a person’s
life.
Career planning is the process by which one selects career goals and the path to
these goals. The major focus of career planning is on assisting the
employees achieve a better match between personal goals and the
opportunities that are realistically available in the organization.
A succession plan is a plan for identifying who is currently in post

and who is
available and qualified to take over in the event of retirement,
voluntary
retirement, dismissal or sickness. The purpose of succession
planning is to
identify and develop people to replace current jobholders in key
positions.
Unit III
1 Compensation - Aims and Components
Compensation is what employees receive in exchange for their
contribution to the organization. Generally, employees offer their
services fro three types of rewards like pay, incentives and benefits.
Aims
1. Attract talent
2. Retain talent
3. Ensure equity
4. New and desired behavior
5. Control costs
6. Comply with legal rules
7. Ease of operation
Components
1. Internal equity
2. External equity
3. Individual equity
2 Factors Determining Pay Rates
1. Job needs
2. Ability to pay
3. Cost of living
4. Prevailing rates

5. Unions
6. Productivity
7. State regulation
8. Demand and surplus of workforce
3 Establishing Pay Rates

1. Find the worth of each job through job evaluation.
2. Conduct a salary survey to find what other employers are
paying for
comparable jobs.
3. Group similar job into pay grades.
4. Price each pay grade by using wage curves
5. Fine tune pay rates.
4 Job Evaluation
1. Key job matching
2. Key class matching
3. Occupational method
4. Job evaluation method
5. Broad classification method
5 Pay for Performance

1. Profit sharing and stock option plans
2. Co-partnership
3. Fringe benefits
6 Employee Benefits & Services

1. Safety
2. Guaranteed compensation
3. Health benefits
4. Voluntary arrangements
5. Welfare and recreational facilities
6. Old age and retirement benefits
7 Performance Appraisal
Performance appraisal is the method of evaluating the behavior of

employees in the workspot, normally including both the quantitative
and qualitative aspects of job performance. It is a systematic and
objective way of evaluating both work-related behavior and potential
of employees.
The features of Performance Appraisal are:

1. The appraisal is a systematic process.
2. It provides an objective description of an employee’s job’s
relevant
strengths and weaknesses.
3. It is carried out periodically.
4. Performance appraisal may be formal or informal.
(4)
students are
the subject.


8 360 Degree Feedback
This feedback, also known as circular feedback, involves collection of
feedback of an employee from his seniors, subordinates and his
peers. This has the reputation of one of the most comprehensive
feedback systems that are available today, since it provides
exhaustive and objective evaluations of an employee’s performance.
9 Potential Appraisal
The objective of potential appraisal is to identify the potential of
a given employee to occupy higher positions in the organizational
hierarchy and undertake higher responsibilities. Potential appraisal are
needed to:
1. Inform employees about their future prospects.
2. Help the organization chalk out a successful succession plan.
3. Update training efforts from time to time.
4. Advise employees about what they must do to improve their career
prospects.

(5)
students are
the subject.

Unit IV
1 Industrial Relations
Today, the relationship between employer and employee is
contractual and reciprocal. The rights and obligations of employers
are well documented in
various pieces of labor legislation. The same cannot be said of the
rights and obligations employees, which are somewhat imprecise.
Collective strength
forces employees to sacrifice overall organizational interest
impairing labor management relations.
2 Industrial Disputes and Disputes Resolution

Industrial disputes are results of mismatch of expectations of
employees and
employers from each other. These industrial disputes cause strikes,
Lockouts,
Boycotts, retrenchments, wage cuts, closures etc. Industrial disputes
damage
industrial relations and cause of major organizational mishaps. Such
disputes
demand quick resolution in order to safeguard the interests of labor
and the
organization.
3 Trade Unions
Trade union is a continuous association of wage earners for the
purpose of
maintaining and improving the conditions of their working lives. Under
the
Trade Union Act of 1926, the term is defined as any combination,
whether
temporary or permanent, formed primarily for the purpose of
regulating the
relations between workers and employers or for imposing restrictive
conditions
on the conduct of any trade or business and includes any federation of
two or
more unions.
4 Employee Grievances and Discipline Resolution

Employee Grievance
Every employee has certain expectations, which he thinks must be
fulfilled by
the organizations he is working for. When the organization fails to do
this, he
develops a feeling of discontent or dissatisfaction. When an employee
feels that
something is unfair in the organization, he is said to have a grievance.
A grievance is any discontent or dissatisfaction, whether expressed or not,

whether valid or not, arising out of anything connected with an
organization, which an employee thinks, believes or, even feels to
be unfair, unjust or
inequitable.
Forms of grievances:
1. Factual
2. Imaginary
3. Disguised
Discipline
Discipline is needed to regulate the behavior of people, maintain
peace and channel their efforts organizational goals.
Types of discipline are as:

1. Negative discipline.
2. Positive discipline
3. Self discipline
4. Progressive discipline
Types of discipline resolutions:

1. Issuing a letter of charge
2. Consideration of explanation
3. Show-cause notice
4. Holding of a full fledged enquiry
5. Making a final order of punishment
6. Follow up
5 Participation and Employee Empowerment

Employee empowerment and participation ensures the following:
1. Proper wages and salaries
2. Proper working conditions

3. Maintenance of discipline
4. Effective personnel policies
5. Ensuring welfare
6. Cordial employer-employee relations
7. Effective negotiations
8. Safeguarding organizational health and the interest of the industry

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INDIAN SCHOOL OF MANAGEMENT & STUDIES