Human Resource Management

Rahul Mahida
Assistant Professor
Faculty of Social work. PU

Part 1:
 Human Resources Management
 Meaning, Definition
 Objective of HRM
 Scope of HRM
 Approaches to HRM
 Functions of HRM
 Importance of HRM

HRM Meaning and Definition
In common parlance, human resources
means the people. However, different
management experts have defined human
resources differently.
For example,
•Michael J. Jucius has defined human
resources as “a whole consisting of inter-
related, inter-dependent and interacting
physiological, psychological, sociological
and ethical components”.

Meaning and Definition
 According to Leon C. Megginson “From the national
point of view human resources are knowledge, skills,
creative abilities, talents, and attitudes obtained in the
population; whereas from the view-point of the
individual enterprise, they represent the total of the
inherent abilities, acquired knowledge and skills as
exemplified in the talents and aptitude of its
employees”.

HRM Meaning and Definition
 Organizations does not only consist of building,
machines or inventories. It is people they manage
and staff the organization
 HRM applies management principles in procuring,
developing, maintaining people in the organization.
 Aims at integrated decision making and decisions
on different aspects of employees are consistent
with other HR decisions
 HR Decisions must influence effectiveness of the
organization leading to better service to customer
and high quality product and services at reasonable
price.
 It is not confined to business establishment only,
HRM is applicable also to the non business
organization, like government department,
education, health care etc.

Definition
 Human Resource Management is a series of integrated
decisions that form the employment relationship;
their quality contributes to the ability of the
organisations and the employees to achieve their
objectives.
- Milkovich and Boudreau

Definition
 Human Resource Management is concerned with
the people dimension in management. Since every
organization is made up of people, acquiring their
services, developing their skills, motivating them
to higher levels of performance and ensuring that
they continue to maintain their commitment to
the organization are essential to achieving
organizational objectives. This is true regardless of
the type of organization – government, business,
education, health, recreation or social action.
-David A. Decenzo and Stephen P. Robbins

Definition
 Human Resource Management is the planning,
organising, directing and controlling of the
procurement, development, compensation, integration,
maintenance and separation of human resources to the
end that individual, organisational, and social objectives
are accomplished. - Edwin B. Flippo
 In simple words, HRM is a process of making the efficient
and effective use of human resources so that the set goals
are achieved. Let us also consider some important
definitions of HRM.

Objectives of HRM
The primary objective of HRM is to ensure the availability of right people for right jobs
so as the organisational goals are achieved effectively.
This primary objective can further be divided into the following sub-objectives:
1. To help the organisation to attain its goals effectively and efficiently
by providing competent and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employee’s job satisfaction and self-
actualisation.
4. To develop and maintain the quality of work life (QWL) which
makes employment in the organisation a desirable personal and
social situation.
5. To help maintain ethical policies and behaviour inside and outside
the organisation.
6. To establish and maintain cordial relations between employees and
management.
7. To reconcile individual/group goals with organisational goals.

 Werther and Davis have classified the objectives of
HRM into four categories as shown in table

Scope:
 The scope of HRM is, indeed, very vast and wide. It
includes all activities starting from manpower
planning till employee leaves the organisation.
Accordingly, the scope of HRM consists of acquisition,
development, maintenance/retention, and control of
human resources in the organisation (see figure
below). The same forms the subject matter of HRM. As
the subsequent pages unfold, all these are discussed, in
detail, in seriatim.

Scope of HRM
HRM
Nature
Introduction
ProcurementProspects
Industrial
Relations
Remuneration
MotivationMaintenance

Scope of HRM
 The National Institute of personnel Management, Calcutta has
specified the scope of HRM as follows:

 1. The Labour or Personnel Aspect:
 This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, lay-off and
retrenchment, remuneration, incentives, productivity, etc.
 2. Welfare Aspect:
 It deals with working conditions, and amenities such as canteen,
crèches, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.
 3. Industrial Relations Aspects:
 This covers union-management relations, joint consultation, collective
bargaining, grievance and disciplinary actions, settlement of disputes,
etc.

Approaches
 Scientific Management Approach (mid 1900s)
 Study of motion and fatigue
 ‘one-best-way’ to accomplish the task
 Piece-rate system
 Welfare programmes
 Failed to bring behavioural changes and increase in
productivity
 Human Relations Approach (1930-40)
 Effect of social and psychological factors
 Relations and respect  High Productivity

Approaches
 Human Resources Approach (1970s)
 Principles
 Employees are assets
 Policies, programmes and practices - help in work and
personal development
 Conducive environment

Functions of HRM
 Functions:
 We have already defined HRM. The definition of HRM
is based on what managers do. The functions
performed by managers are common to all
organizations. For the convenience of study, the
function performed by the resource management can
broadly be classified into two categories, viz.
 (1) Managerial functions, and
 (2) Operative functions

Functions of HRM
Managerial
Planning Organizing Staffing Directing Controlling

Functions of HRM
Operational
Employment
HR Planning
Recruitment
Selection
Placement
Induction
HR
Development
Performance
Appraisal
Training
Management
Development
Career Planning
and
Development
Compensation
Mgt
Job Evaluation
Wage and
Salary Admn
Incentives
Bonus
Fringe Benefits
Employee
Relations

(1) Managerial Functions:
 PLANNING:
Planning is a predetermined course of actions. It is a process of
determining the organisational goals and formulation of policies
and programmes for achieving them. Thus planning is future
oriented concerned with clearly charting out the desired
direction of business activities in future. Forecasting is one of the
important elements in the planning process. Other functions of
managers depend on planning function.
 ORGANISING:
Organising is a process by which the structure and allocation of
jobs are determined. Thus organising involves giving each
subordinate a specific task establishing departments, delegating
authority to subordinates, establishing channels of authority and
communication, coordinating the work of subordinates, and so
on.

 STAFFING:
This is a process by which managers select, train, promote and
retire their subordinates This involves deciding what type of
people should be hired, recruiting prospective employees,
selecting employees, setting performance standard,
compensating employees, evaluating performance, counselling
employees, training and developing employees.
 DIRECTING/LEADING:
Directing is the process of activating group efforts to achieve the
desired goals. It includes activities like getting subordinates to
get the job done, maintaining morale motivating subordinates
etc. for achieving the goals of the organisation.
 CONTROLLING:
It is the process of setting standards for performance, checking
to see how actual performance compares with these set
standards, and taking corrective actions as needed.

(2) Operative Functions:
 The operative, also called, service functions are those which are relevant to
specific department. These functions vary from department to department
depending on the nature of the department Viewed from this standpoint, the
operative functions of HRM relate to ensuring right people for right jobs at right
times. These functions include procurement, development, compensation, and
maintenance functions of HRM.
 PROCUREMENT:
It involves procuring the right kind of people in appropriate number to be
placed in the organisation. It consists of activities such as manpower planning,
recruitment, selection placement and induction or orientation of new
employees.
 DEVELOPMENT:
This function involves activities meant to improve the knowledge, skills
aptitudes and values of employees so as to enable them to perform their jobs in
a better manner in future. These functions may comprise training to employees,
executive training to develop managers, organisation development to strike a
better fit between organisational climate/culture and employees.

 DEVELOPMENT:
This function involves activities meant to improve the knowledge, skills aptitudes and
values of employees so as to enable them to perform their jobs in a better manner in
future. These functions may comprise training to employees, executive training to
develop managers, organisation development to strike a better fit between organisational
climate/culture and employees.
 COMPENSATION:
Compensation function involves determination of wages and salaries matching with
contribution made by employees to organisational goals. In other words, this function
ensures equitable and fair remuneration for employees in the organisation. It consists of
activities such as job evaluation, wage and salary administration, bonus, incentives, etc.
 MAINTENANCE:
It is concerned with protecting and promoting employees while at work. For this purpose
virus benefits such as housing, medical, educational, transport facilities, etc. are
provided to the employees. Several social security measures such as provident fund,
pension, gratuity, group insurance, etc. are also arranged.
 It is important to note that the managerial and operative functions of HRM are
performed in conjunction with each other in an organisation, be large or small
organisations. Having discussed the scope and functions of HRM, now it seems pertinent
to delineate the HRM scenario in India.

Importance of HRM
 Human Resource Management is important to all managers despite
their various functions because of the following reasons-
 Hire the right person for the job
 Low attrition rate
 Ensure people do their best
 Time saved in not conducting useless interviews
 Avoid legal action for any discrimination
 Safety laws are not ignored
 Equity towards employee in relation to salary etc.
 Effective training
 Avoid unfair labour practices

PART :2
 Recruitment: Definition, Methods& Techniques
 Selections:Definition,Process
 Placement & Orientation: Concept, Objectives, Purpose
 Induction: Meaning, Objective & Steps
 Promotion: Purpose, Types, Policy & Bases

Recruitment
 It is the process of finding and attracting capable
applicants for employment. The process begins when
new recruits are sought and ends when their
applications are submitted. The result is pool of
applicants from which new employees are selected.

Initiating the Recruitment Process
 Prior to initiating a recruitment procedure, the following matters
should be considered:
 Clarification of the scope and skill sets required to successfully perform
the duties of the position
 Review of the Job Fact Sheet or Position Description to ensure that the
skills and abilities required coincide with the current expectations of
the position. If they do not, then a position evaluation should be
undertaken.
 Review of the compensation available to the position (i.e. salary and
benefit plans, etc.)
 Analysis of the impact that the hiring will have on the budget

Factors Governing recruitment
External factors
Supply and demand
Unemployment rate
Labour Market
Political
Social
Sons of soil
Image
Internal factors
Recruitment policy
HRP
Size of the firm
Cost
Growth
Expansion
Recruitment

Building Pool of Candidate
INTERNAL EXTERNAL

SOURCES OF RECRUITMENT
Current Employee
References from present
employee
Databank of former
applicants
Retired Employee
Former employee
• Advertising
• Employment agencies
• Temporary help
• Executive recruiters
• Referrals and walk-ins
• College recruiting
• Company’s web site
• Free and fee-paying
Website services
INTERNAL EXTERNAL

Recruiting Yield Pyramid
 It is the historical arithmetic relationships between-
 Recruitment leads and invitees
 Invitees and interviews
 Interviews and offers made
 Offers made and offers accepted

50
100
150
200
1200
Leads generated (6:1)
Candidates invited (4:3)
Candidates interviewed (3:2)
Offers made (2:1)
New hires
Recruiting Yield Pyramid

Internal
versus
External
Recruitment
Advantages & Disadvantages

Internal Recruitment
Advantages Disadvantages
1. It is less costly 1. It perpetuates the old
concept of doing things
2. Candidates are already
oriented toward organisation
2. It abets raiding (make a
person provide something)
3. Organisation have better
knowledge about the internal
candidates
3. Candidate’s current work
may be affected
4. Enhancement of employee
morale and motivation
4. Politics play greater role
5. Good performance is
rewarded
5. Morale problem for those
not promoted

External Recruitment
Advantages Disadvantages
1. Benefits of new skill, new
talent and experiences to
organisation
1. Better morale and
motivation associated
with internal recruiting is
denied to the organisation
2. Compliance with
reservation policy becomes
easy
2. It is costly
3. Scope of resentment,
jealousies and heartburn
are avoided
3. Chances of creeping in
false positive or false
negative error

Selection
 Selection is the process of differentiating between
applicants in order to identify those with a greater
likelihood of success in a job.
 The selection of a candidate with the right
combination of education, work experience, attitude,
and creativity will not only increase the quality and
stability of the workforce, it will also play a large role in
bringing management strategies and planning to
fruition.

Factors affecting selection
 External environment
 Supply and demand of specific skill
 Unemployment rate
 Legal and political considerations
 Company’s Image
 Internal environment
 Company’s policy
 HRP
 Cost of hiring

PROCESS
OF
SELECTION
Preliminary Interview
Selection tests
Employment Interview
Reference & background
Selection Decision
Medical Examination
Job Offer
Employment Contract
Evaluation
R
E
J
C
T
E
D

Basic Testing Concepts
Generally tests are administered to determine the applicant’s ..
 Ability Test: Helps to determine how well one can perform
his task
 Aptitude Test: Helps to determine how well one can
perform his task
 Personality Test: To measure a prospective employee’s
motivation to function in a particular working environment
 Interest Test: To measure an individual’s activity preferences.
(For career change or when there is multiple career option
available)

ORIENTATION - DEFINITION
“ Orientation is the planned introduction of
new employees to their jobs, their co-
workers and the organization.”

PURPOSE
• Making employees comfortable
• Reduce their anxiety
• Adjust themselves to the new environment
• Providing them information about their job

ORIENTATION PROGRAMME
Formal Informal
Individual Collective
Serial Disjunctive
Investiture Divestiture

 Formal : the management has a structured programme
which is executed when new employees join the firm.
 Informal : new hires are directly put into job and they are
expected to do the work themselves.
 Individual : It is orienting each person individually. It is
more likely to preserve individual differences and
perspectives.
 Collective : It is orienting people in a group. Most of the
large firms tend to do this approach.
 Serial : orientation becomes serial when an experienced
person inducts a new hire.
 Disjunctive : It becomes disjunctive when the new hire do
not have any predecessors available for them.
 Investiture : It seeks to ratify the usefulness of the
characteristics that the person brings to the new job.
 Divestiture : It seeks to make minor modifications in the
characteristics of the new hire, though he or she was
selected based on his or her potential.

FORMAL ORIENTATION PROGRAMME
HR
representative
Supervisor
Placement
Organisation
al issues and
Employee
benefits
Specific
Job
location
and Duties
Special
Anxiety
reduction
seminars

PLACEMENT
“Placement refers to the allocation of people
to jobs. It includes initial assignment of
new employees and promotion, transfer or
demotion of present employees.”

EMPLOYEE PLACEMENT
 Staffing needs are met in two ways: new hires from
outside the firm and a reassignment of current
employees, which may be referred to as in placement.
 PLACEMENT: Placement is the assignment or
reassignment of an employee to a new job. most
placement decisions are made by line managers.
TYPES OF PLACEMENT
PROMOTIONS
TRANSFERS
DEMOTIONS

 Promotions
A promotion occurs when an employee is moved from a job
to another position that is higher in pay, responsibilities
and/or organizational level.
 Transfers: they occur when an employee is moved from
one job to another position that is relatively equal in pay,
responsibility and/or organizational level.
 Demotions: they occur when an employee is moved from
one job to another position that is lower in pay,
responsibility and/or organizational level.
TYPES OF PLACEMENT

• First developed in early 1970’s in the U.S.
• Next to Selection and Placement.
• Brief introduction about the organization.
• Rehabilitated in the changed surroundings.
• Welcoming Process.
• Also called Orientation programme.
• Used by prominent Indian companies like Taj group of Hotels,
Citibank, HUL, P&G and many more.
Induction

Definition
Planned introduction of employees to their
jobs, co workers and the organization.
The process of receiving and welcoming an
employee when he first joins a company and
giving him the basic information he needs to
settle down quickly and happily and start work.
- Michael Armstrong

Objectives
• To intimate them about the Mission, Aims and Objectives of the Company.
• To general information about terms and conditions of employment..
• To Stimulate Interest.
• Provides Information.
• To give a clear understanding of their roles and responsibilities.
• Minimizes reality shock.
• To Communicate the details of the job requirements

Advantages of promotions
 Promotion ,paves the way for employee self
employment .
 It enhances employee to use his knowledge and skills.
 It inspires employees to compete and get ahead of
others.
 It encourages them to remain royal and commited to
their jobs and the organisation .

Bases of Promotion
 Merit – based Promotions
 Seniority –based Promotions

Merit-based Promotions
 Advantages –
• It motivates employees to work hard, improve their
knowledge, acquire new skills and contibute to organisational
efficiency.
• It helps the employer to focous attention on talented people,
recognise and reward their meritorious contributions in an
appropriate way .

Limitations -
 Personal prejudices ,biases and union pressures may
come in the way of promoting the best performer.
 When young employee s get ahead of the senior
employees in an organisation , they may fell insecure
and may even quit the organisation.

Security-based
Promotions
Advantages –
• It is easy to measure the length of service and judge
the seniority .
• There is no scope for favoritism, discrimination and
subjective judgement .

Limitations -
 It demotivates the young and more competent
employees and results in greater employee turnover.
 It kills the zeal and interest to develop , as everybody
will be promoted without showing any all-round
growth or promise.

Promotion Policy
 Establish a fair and equitable basis for promotion
(merit or seniority or both )
 Appropriate authority should be entrusted with the
responsibilty of taking a final decision on promotion.
 Detailed records of services , performances , etc. ,
should be maintained for all employees , inspective
of their background .

 A transfer is a horizontal or lateral
movement of an employee from one job,
section, department, shift plant or position
to another at some other place where salary,
status and responsibility are usually the
same.
 Transfer is defined as “a lateral shift causing
movement of individuals from one position
to another usually without involving any
kind of change in duties, responsibilities,
skills needed or compensation”.

Purposes of Transfer
 To meet the organisational requirements
 To satisfy the employee needs
 To utilize employees better
 To adjust the work force
 To provide relief
 To reduce conflicts

 Production Transfer: Such transfers are resorted to when there is a
need of manpower in one department and surplus manpower in
another department. Such transfers are made to meet the company
requirements.
 Replacement Transfers: Replace an existing employee who has been
in the organization for a long time with a new employee and thereby
giving some relief to an old employee from the heavy pressure of work.
 Remedial Transfers: As the name suggest, these transfers are made to
rectify the situation caused by faulty selection and placement
procedures. Such transfers are made to rectify mistakes in placement
and recruitments.
 Versatility Transfer: Such transfers are made to increase versatility of
the employees in more than one job and department. This type of
transfer, also referred to as ‘Job Rotation’ is a tool to train employees.
Types of Transfer

 Shift Transfers: are transfers of workers from one
shift to another on the same type of work. Workers
generally dislike second or third shift as it affects their
participation in community life.
 Selection Transfers: they are made within the
department or section. It is to be train the workers and
prepare them to handle different types of operations
within the department.
 Departmental Transfers: transferring from one
department to another department within the plants.
 Inter-Plant transfers: if there is more than one plant
under the control of same management transfer may
be made from one plant to another for varied reasons.
Such transfers are called inter- plant transfers.

Benefits of Transfer
 Improve employees skills
 Reduce monotony boredom
 Remedy faulty placement decisions
 Prepared the employees for challenging assignments
 Improve employees satisfaction and morale
 Improve employer –employee relations

Problems of Transfer
 Inconvenient to employees who otherwise don’t
want to move .
 Employees may or maynot fit in the new location.
 Shifting of experienced hands may affect productivity.
 Discriminatory transfers may affect employee moral.

Transfer Policy
 Name of the superior who is authorized and
responsible to initiate a transfer .
 The unit of the organization within which transfers
will be administered.
 Reasons which will be considered for personal
transfers , their order of priority etc.
 Reasons for mutual transfer of employees .

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Presented by
Rahul Mahida

Human Resource Management

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