2

-------INDEX @ GLANCE-------

Sr. No. PARTICULARS Page No.

01. What is HR? 4

02. What is HRM? 5

03. Functions of HRM. 7-8

04. Sources of Recruitment. 9-10

05. Selection Procedure 11-14

06. Role of HR manager 15

07. What is HRD? 16

08. Importance of HRD. 17-18

09. Methods of Performance Appraisal. 19-21

10. Introduction to ONIDA Pvt. Ltd. 22-24

11. Infrastructure of ONIDA Pvt. Ltd. 25

12. Vision & Mission 26-27

13. Milestones 28-29

14. Hierarchy of HR @ ONIDA Pvt. Ltd. 30-33

15. Questionnaires. 34

“ACKNOWLEDGEMENT”
 3

We are grateful to Prof. HitashaRohrawho had given valuable

suggestion in the preparation of our project on HUMAN RESOURCE

MANAGEMENT.

Although due care has been taken while preparing the

project, it is possible the mistake are over looked by us. We are thankful to

our tutors for helping us to complete this project successfully.

And, last but not least, we convey our sincere gratefully

“Thanks” to Prof. HitashaRohra once again of profoundly giving us this

project.

Thank you ma’am.

HUMAN RESOURCE
 4

Introduction to Human Resource

“Human resource” is a term used to describe the individuals who

comprise the workforce of an organization; although it is also applied in

labour economics, for example, business sectors or even to whole nations.

Human resources is also the name of the function within an organization

charged with theoverall responsibility for implementing strategies and

policies relating to the management of individuals (i.e. the human

resources).

Human resource is a relatively modern management term, coined as

early as the 1960s - when humanity took a shift as human rights came to a

brighter light during the Vietnam Era.

“Human resources progressively became the more usual

name for this function.”

 5

HUMAN RESOURCES- PURPOSE AND ROLE

In simple terms, an organization's human resource management

strategy should maximize return on investment in the organization's

human capital and minimize financial risk. Human resources seeks to

achieve this by aligning the supply of skilled and qualified individuals

and the capabilities of the current workforce, with the organization's

ongoing and future business plans and requirements to maximize

return on investment and secure future survival and success.

 6

Human Resource Management (HRM)

INTRODUCTION TO HRM

It is the term used to describe formal systems devised for the

management of people within an organization. These human resources

responsibilities are generally divided into three major areas of

management

 Staffing

 Employee compensation

 Defining/designing work

Essentially, the purpose of HRM is to maximize the productivity of an

organization by optimizing the effectiveness of its employees. This mandate

is unlikely to change in any fundamental way, despite the ever-increasing

pace of change in the business world. As Edward L. Gubman observed in

the Journal ofBusiness Strategy, "the basic mission of human resources

will always be to acquire, develop, and retain talent; align the workforce

with the business; and be an excellent contributor to the business. Those

three challenges will never change."

 7

Objectives of HRM

The general objective of HRM is to contribute towards the realization

of the organizational goals. The specific objectives of HRM may be listed as

follows:-

 To achieve and maintain good human relationship within an

organization.

 To enable each person to make his maximum personal contribution to

the effective working of the organization.

 To ensure respect for human personality and the well being of each

individual.

 To ensure maximum individual development of personnel.

 To ensure satisfaction various needs of individuals for achieving the

maximum contribution towards organizational goals.

 8

FUNCTIONS OF HRM

In order to achieve the above objectives, human resources

management undertakes the following activities:-

(1) HUMAN RESOURCE OR MAN POWER PLANNING

This function includes various activities like job analysis, manpower

demand analysis, recruitment, selection, and placement. Before hiring the

people man power requirement are estimated both in terms of number and

quality. HRP determines as to how many and what type of personnel will be

determined by the jobs which need to be staffed. Job-related information is,

therefore necessary for HRP.

PROCESS OF HRP:

1. Organizational objectives and policies:

The objective of HRP is dependant on the oragnisational objectives the

overall objectives of the oragnisational is defined by top management and

the HR department ensures the availability and proper utilisation of work

force.

2. HR demand forecast:
 9

In this step the demand is forecasted, by estimating the quality and

quantity of work force. A number of forecasting techniques are used to

estimate the manpower requirement namely:

a. Managerial judgment

b. Ratio trend analysis

c. Work study technique

d. Delphi technique

e. Flow models etc.

3. HR supply forecast:

In this step the HR department estimates the sources of recruiting the

manpower. The supply forecasting technique measure the number the

people likely to be available from within and outside the organization. This

step takes into account both internal and external sources of recruiting the

work force.
 10

4. HR Programming:

In this step both the personnel demand forecast and supply forecast are

analysed in order to estimate the work force requirements.

5. HR plan implementation:

Depending upon the analysis of human resources, demand forecasting and

supply forecasting is done. The surplus or short stage as the case may be is

ascertained and corrective action is initiated.

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(2) RECRUITMENT, SELECTION AND PLACEMENT OF PERSONNEL:

Different sources of manpower supply are tapped. The application of

various applicants is screened and the selected applicants are required to

take certain employment tests. Those successful are asked to appear in the

final interview. The employment function is completed when the workers

join the organization and are placed on right jobs Thus; the following

activities are included under the staffing and employment function.

Academic theory

Research in the area of HRM has much to contribute to the

organizational practice of HRM. For the last 20 years, empirical work has

paid particular attention to the link between the practice of HRM and

organizational performance, evident in improved employee commitment,

lower levels of absenteeism and turnover, higher levels of skills and

therefore higher productivity, enhanced quality and efficiency.[5] This

area of work is sometimes referred to as 'Strategic HRM' or SHRM (.[6]

 12

Within SHRM three strands of work can be observed [7]: Best practice,

Best Fit and the Resource Based View (RBV).

The notion of best practice – sometimes called 'high commitment' HRM

– proposes that the adoption of certain best practices in HRM will result

in better organizational performance. Perhaps the most popular work in

this area is that of Pfeffer[8] who argued that there were seven best

practices for achieving competitive advantage through people and

'building profits by putting people first'. These practices included:

providing employment security, selective hiring, extensive training,

sharing information, self-managed teams, high pay based on company

performance and the reduction of status differentials. However, there is a

huge number of studies which provide evidence of best practices,

usually implemented in coherent bundles, and therefore it is difficult to

draw generalized conclusions about which is the 'best' way (For a

comparison of different sets of best practices see Becker and Gerhart,

1996 [9]

Best fit, or the contingency approach to HRM, argues that HRM

improves performance where there is a close vertical fit between the

HRM practices and the company's strategy. This link ensures close

coherence between the HR people processes and policies and the

external market or business strategy. There are a range of theories

 13

about the nature of this vertical integration. For example, a set of 'life

cycle' models argue that HR policies and practices can be mapped onto

the stage of an organization's development or life cycle.[10] Competitive

advantage models take Porter's (1985) ideas about strategic choice and

map a range of HR practices onto the organization's choice of

[11]
competitive strategy. Finally 'configuration models' provide a more

sophisticated approach which advocates a close examination of the

organisation's strategy in order to determine the appropriate HR policies

and practices. However, this approach assumes that the strategy of the

organisation can be identified – many organisations exist in a state of

flux and development.

The Resource Based View (RBV), argued by some to be at the

foundation of modern HRM,[12]focusses on the internal resources of the

organisation and how they contribute to competitive advantage. The

uniqueness of these resources is preferred to homogeneity and HRM

has a central role in developing human resources that are valuable, rare,

difficult to copy or substitute and that are effectively organized.

Overall, the theory of HRM argues that the goal of human resource

management is to help an organization to meet strategic goals by

attracting, and maintaining employees and also to manage them

effectively. The key word here perhaps is "fit", i.e. a HRM approach
 14

seeks to ensure a fit between the management of an organization's

employees, and the overall strategic direction of the company (Miller,

1989).

The basic premise of the academic theory of HRM is that humans are

not machines, therefore we need to have an interdisciplinary

examination of people in the workplace. Fields such as psychology,

industrial relations, industrial engineering, sociology, economics, and

critical theories: postmodernism, post-structuralism play a major role.

Many colleges and universities offer bachelor and master degrees in

Human Resources Management or in Human Resources and Industrial

Relations.
 15

HRM strategy
An HRM strategy pertains to the means as to how to implement the

specific functions of Human Resource Management. An organization's

HR function may possess recruitment and selection policies, disciplinary

procedures, reward/recognition policies, an HR plan, or learning and

development policies, however all of these functional areas of HRM

need to be aligned and correlated, in order to correspond with the overall

business strategy. An HRM strategy thus is an overall plan, concerning

the implementation of specific HRM functional areas.

An HRM strategy typically consists of the following factors:-

 "Best fit" and "best practice" – meaning that there is

correlation between the HRM strategy and the overall

corporate strategy. As HRM as a field seeks to manage human

resources in order to achieve properly organizational goals, an

organization's HRM strategy seeks to accomplish such

management by applying a firm's personnel needs with the

goals/objectives of the organisation. As an example, a firm

 16

selling cars could have a corporate strategy of increasing car

sales by 10% over a five year period. Accordingly, the HRM

strategy would seek to facilitate how exactly to manage

personnel in order to achieve the 10% figure. Specific HRM

functions, such as recruitment and selection,

reward/recognition, an HR plan, or learning and development

policies, would be tailored to achieve the corporate objectives.

 Close co-operation (at least in theory) between HR and the

top/senior management, in the development of the corporate

strategy. Theoretically, a senior HR representative should be

present when an organization's corporate objectives are

devised. This is so, since it is a firm's personnel who actually

construct a good, or provide a service. The personnel's proper

management is vital in the firm being successful, or even

existing as a going concern. Thus, HR can be seen as one of the

critical departments within the functional area of an

organization.
 17

 Continual monitoring of the strategy, via employee feedback,

surveys, etc.

The implementation of an HR strategy is not always required, and may

depend on a number of factors, namely the size of the firm, the

organizational culture within the firm or the industry that the firm

operates in and also the people in the firm.

An HRM strategy can be divided, in general, into two facets – the people

strategy and the HR functional strategy. The people strategy pertains to

the point listed in the first paragraph, namely the careful correlation of

HRM policies/actions to attain the goals laid down in the corporate

strategy. The HR functional strategy relates to the policies employed

within the HR functional area itself, regarding the management of

persons internal to it, to ensure its own departmental goals are met.

SOURCES OF RECRUITMENT
 18

INTERNAL RECRUITMENT:

Internal recruitment seeks applicants for position from those who

are currently employed. Internal sources include present employees,

employees’ referrals, former employees, and former applicants.

There are two important internal sources of recruitment namely: transfers

and promotions:

i. Promotions

A promotion is the transfer of employees to a job that pays more

money or one that enjoys some preferred status. A promotion involves

reassignment of an employee to a position having higher pay, increased

responsibilities, more privileges, increased benefits and greater potential.

Promotion leads to shifting employees to a higher position carrying higher

responsibilities, facilities, status and pay. The employees can be informed

of such a vacancy by internal advertisement.

ii. Transfers

Another way to recruit from present employees is transfer without

transfer. Transfers are often important in providing employees with a

 19

broad based view of the organization, necessary for future promotion.

Transfer involves the shifting of employees from one job to another. At the

time of transfer it is ensured that the employees to be transferred to the

new job are capable of performing it. In fact transfer does not involve any

drastic change in the responsibilities and status of employees.

iii. Family and Friends of employees

This can be a good source of internal recruitment. This source is

usually one of the most effective methods of recruiting because many

qualified people are recruited at a very low cost to the company.

EXTERNAL RECRUITMENT:

i. Advertisement:
 20

These constitute a popular method of seeking recruits as many

recruiters prefer advertisement because of their wide reach. Advertisement

is local or national newspapers and trade and professional journals is

generally used when qualified or experienced personnel are not available

from other sources .Most of the senior position in industry are filled by this

method when they cannot be filled from within.

ii. Educational Institutional:

Direct recruitment from educational institution for jobs which

require technical or professional qualification has become a common

practice a close liaison between the company and educational institutional

helps in getting suitable candidates to man various positions.

iii. Management consultants:

Management consultancy firms help the organizations to recruit

technical, professionals and managerial personnel. They specialize in

middle-level and top-level executive placement.

iv. 4. Write-ins:

Write-ins are those who send written enquires. These job seekers are

asked to complete application forms for further processing.

 21

v. Radio and Television:

Radio and television are used generally by government department

only. Radio and television can be used to reach certain type of job

applications such as skilled workers.

vi. Competitors:

Rival firms can be sources of recruitment. This is called “poaching”

this method involves identifying the right people in rival companies,

offering them better terms and luring them away. For instance, several

executives of HMT left to join Titan Watch Company.

“SELECTION PROCEDURE”
 22

PRELIMINARY INTERVIEW

APPLICATION BLANK

SCRUTINY OF APPLICATIONS

EMPLOYMENT TESTS

GROUP DISCCUSSIONS

EMPLOYMENT INTERVIEW

MEDICAL EXAMINATION

APPOINTMENT LETTER AND PLACEMENT.

(3) TRAINING AND DEVELOPMENT OF EMPLOYEES:

 23

It is the duty of management to train each employee properly to

develop technical skills for the job for which he has been employed and

also to develop him for the higher jobs in organization. For this purpose,

the personnel department will devise appropriate training programmers.

There are several on the job and off the job methods available for training

purposes. Training and development programmers can be designed

depending on the job requirement.

(4) APPRAISAL OF PERFORMANCE OF EMPLOYEES:

Performance appraisal involves assessment of the actual

performance of an employee against what is expected of him/her. Such

assessment is the basis for awarding promotion, effecting transfers or

assessing training needs.

(5) REMUNERATION OF EMPLOYEES:

This function is concerned with the determination of adequate and

equitable remuneration of the employee in the enterprise. The sub-function

concerned with the determination of equitable wages includes the

following:

Job evaluating to determine worth of various jobs in terms of money

 24

Comparing wages of the enterprise with those in the industry and removes

inconsistencies, if any.

Formulation of policies regarding pension plans, profit sharing plans, non

monetary benefits, etc.

(6) GOOD WORKING ENVIRONMENT:

It is the responsibility of personnel department to provide good

working conditions to the employees. These includes drinking water

facilities, bath room facilities, hygienic environment, good lighting, safety of

employees, etc. mere appointment and training of employees is not

sufficient, they must be provided with good working condition so that they

may like their work and work place and maintain their efficiency. Working

condition certainly influence the motivation and morale of the employees.

(7) WELFARE ACTIVITIES:

 25

These activities related to physical and social well being of the

employees and their families they include provision for medical facilities

and first aid box provision of rest room, crèche, recreation education of

children, canteen, employees counseling, housing, group insurance, etc.

(8) HUMAN RELATION:

In most of big organization, the HR manager help in collecting

bargaining, joint consultation and settlement of disputes, whenever they

arise. The personnel manager in possession of full information relating to

personnel and also has the working knowledge of various labour

enactments. It is important to point out that he responsibility of fulfilling

the requirements of various labour laws like factories Act, Industrial

Dispute Act, etc., also rest with rhea personnel department.

(9) GRIEVANCES HANDLING:

He helps in laying down the grievance procedure to redress the

grievance of the employees. the personnel manager can do a great deal in

maintaining industrial peace in the organization as he is responsible for

seating various committees on discipline, labour welfare, safety, grievance,

etc. he helps in laying down the authentic information to the trade union
 26

leaders and tries to convey them the personnel policies and programmers

of the enterprise.

(10) RECORD AND STATISTICS:

The record and statistic about the workforce are important for

various reasons. Firstly, they help in taking, decision related to transfer and

promotion. Secondly they help in performance appraisal of the employees.

Thirdly, they reveal the human resources talent available with the

organization. Finally, they help in identifying the weaknesses in the

employees and the arrears in which they need training.

It is the duty of personnel department to maintain the records of the

employee working in the enterprise. It keeps full record about training,

achievements, transfer, promotion, etc. It also preserves many other

records relating to the behavior of the personnel like absenteeism and the

labour turnover and the personnel programmes and policies of the

organization.
 27

(11) REVIEWING AND AUDITING MANPOWER MANAGEMENT:

The HR audit the organization determines the organisation gaps and

needs of manpower.

(12) MISCELLANEOUS:

 Role analysis for job occupants

 Job rotation

 Quality circle, organisation development and quality of working life

 Potential appraisal

 Feed back counseling.


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ROLE OF HR MANGER IN CHANGE IN BUSINESS ENVIROMENT

HUMANITARIAN ROLE

Reminding moral and obligation to employees.

COUNSELOR

Consultation to employees about material, health mental, physical and

career problems.

MEDIATOR

Playing the role of a peace maker during disputes, conflicts between

individuals and group or management.

SPOKESMAN

To represent the company in media and other forums because he has

better overall pictures of his company’s organization.

PROBLEM SOLVER

Solving problem of over all human resources management and long term

organizational planning.
 29

CHANGE AGENT

Introduction and implementing institutional changes and installing

oragnisational programs.

MANAGEMENT OF MANPOWER RESOURCES

Broadly concerned with leadership both in group and individual relation

and labour management relations.

 30

HUMAN RESOURCE DEVELOPMENT (HRD)

What Is Human Resource Development (HRD)?

Human Resource Development (HRD) is the framework for helping

employees to develop their personal and organizational skills, knowledge,

and abilities. Human Resource Development includes such opportunities as

employee training, employee career development, performance

management and development, coaching, mentoring, succession planning,

key employee identification, tuition assistance, and organization

development.

The focus of all aspects of Human Resource Development is on

developing the most superior workforce so that the organization and

individual employees can accomplish their work goals in service to

customers.

Human Resource Development can be formal such as in classroom

training, a college course, or an organizational planned change effort. Or,

Human Resource Development can be informal as in employee coaching by

a manager. Healthy organizations believe in Human Resource Development

and cover all of these bases.

 31

IMPORTANCE OF HUMAN RESOURCE DEVELOPMENT

Human Resource is the most Important and vital Factor of Economic

Development or it can be said that humans are the agents of development.

Some of the importance of Human Resource or Human Capital is:

1)Country Develops if The Human Resource is Developed:

To enhance economic development the state constructs roads, buildings

bridges, dams, power houses, hospitals, etc. to run these units doctors,
 32

engineers, scientist, teachers, are required. So if the state invests in a

human resource it pays dividend in response.

2) Increase in Productivity:

The batter education, improved skills, and provision of healthy atmosphere

will result in proper and most efficient use of resources (non-natural &

natural) which will result in increase in economic production.

2) Eradication of Social and Economic Backwardness:

Human Resource development has an ample effect on the backwardness

economy and society. The provision of education will increase literacy

which will produce skilled Human Resource. Similarly, provision of health

facilities will result in healthy Human Resource which will contribute to the

national economic development.

3) Entrepreneurship Increase:

Education, clean environment, good health, investment on the human

resource, will all have its positive effects. Job opportunities would be

created in the country. And even business environment will flourish in the

state which creates many job opportunities.

 33

4) Social Revolution:

Because of Human Resource development the socio economic life of the

peoples of a country changes drastically. Over all look changes thinking

phenomena changes, progressive thoughts are endorsed in to the minds of

peoples.

SCOPE OF HRD/ HRD INSTRUMENTS:

 Performance appraisal

 Potential appraisal

 Career planning

 Training and employee development

 Organisation development

 Rewards

 Employee welfare and quality of work life

 Human resource information

 34

Let us study “PERFORMANCE APPRAISAL” in detail………..

WHAT IS PERFORMANCE?

Performance is synonymous with behaviour; it is what people

actually do. Performance includes those actions that are relevant to the

organizational growth and can be measured in terms of each individual’s

proficiency (level of contribution). Effectiveness Performance refers to the

evaluation of results of performance that is beyond the influence or control

of the individual.

In simple terms performance appraisal may be understood as the

assessment of an individuals performance in a systematic way, the

performance being measured against such factors as job knowledge,

quality, and quantity of output, initiative, leadership ability, supervision,

dependability, co-operation, judgment, versatility, health and like

assessment should not confined to past performance alone. Potential of the

employee for future performance must also be assessed.

DEFINITION
 35

“Performance appraisal is the process of obtaining, analyzing and

recording information about the relative worth of an employee. The focus

of the performance appraisal is measuring and improving the actual

performance of the employee and also the future potential of the employee.

Its aim is to measure what an employee does.”

 36

METHODS OF PERFORMANCE APPRAISAL

"PERFORMANCE
APPRAISAL"

Traditional Modern
Methods Methods

 Management By Objectives (Mbo)

 Essay Appraisal Method
 360 Degree Appraisal

 Straight Ranking Method

 Assessment Centers

 Paired Comparison Method  Behaviourally Anchored Rating Scales

 Critical Incidents Methods  Human Resource Accounting

 Field Review Method

 Checklist Method

 Graphic Ratings Scale Method

 Forced Distribution Method

 37

TRADITIONAL METHODS

 ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as "Free Form method"

involves a description of the performance of an employee by his superior.

 STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance

appraisal. In this method, the appraiser ranks the employees from the best

to the poorest on the basis of their overall performance.

 PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this

method compares each employee with all others in the group, one at a time.

 CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the

employee on the basis of critical events and how the employee behaved

during those incidents. It includes both negative and positive points.

 38

 FIELD REVIEW

In this method, a senior member of the HR department or a training

officer discusses and interviews the supervisors to evaluate and rate their

respective subordinates.

 CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behaviour of the

employees on job. The checklist contains a list of statements on the basis of

which the rater describes the on the job performance of the employees.
 39

MODERN METHODS

 ASSESSMENT CENTRES

An assessment centre typically involves the use of methods like

social/informal events, tests and exercises, assignments being given to a

group of employees to assess their competencies to take higher

responsibilities in the future.

 BEHAVIORALLY ANCHORED RATING SCALE(BARS)

BARS is a relatively new technique which combines the graphic

rating scale and critical incidents method. It consists of predetermined

critical areas of job performance or sets of behavioral statements

describing important job performance qualities as good or bad

 HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human

resource accounting method tries to find the relative worth of these assets

in the terms of money. In this method the Performance appraisal of the

employees is judged in terms of cost and contribution of the employees.

 360 DEGREE PERFORMANCE APPRAISAL

 40

360 degree feedback, also known as 'multi-rater feedback', is the

most comprehensive appraisal where the feedback about the employees’

performance comes from all the sources that come in contact with the

employee on his job.