HUMAN RESOURCE MANAGEMENT

Unit: 1 Introduction to HRM

 Chapter Overview
Meaning & Definition of HRM

• Nature of HRM

• HRM Process

• Importance of HRM

• Strategic HRM

HRM – Human Resource Planning

• Man power forecasting

Job Analysis:

• Job Description & Specification

Meaning of
HRM
 Human:
Refer to the skilled
workforce in the
organization.

Human Full form:

Highly Understanding
Mankind According
Nature
 Resources
A Resource is something that
can be used for a purpose &
refer to limited availability or
scarce.
 Meaning of Human Resources
In organizational context, the individual involved in different activities of an
organization are the human resources of that organization.

Such type of personnel (referred as human resources) have one thing common
i.e. fulfillment of their assigned duties & responsibilities in order to achieve the
organizational goal and objectives.

People become human resource when they involved in any organization with
physical strength, energy and competencies. (Competencies consists of
knowledge, skill, attitudes and potential for growth.)

Human resources are effectively mobilized by the organization for the

achievement of desired results.
 Management
“Management is an art of getting things done
through and with the people in formally
organized groups.
It is an art of creating an environment in which
people can perform and individuals and can co-
operate towards attainment of group goals.”
 Meaning of HRM

Human Resource Management in simple words

stands for managing the employees of an
organisation.

It is the process of putting right person to the right

task thereby making maximum use of the
employee’s talent and abilities to achieve there
desired goals and objective.
 Definition
“ Planning, organising, directing, controlling of

procurement, development, compensation,

integration, maintenance and separation of human

resources to the end that individual, organisational

and social objectives are achieved.”

- Edwin Flippo
 Definition of HRM
HRM is the process of accomplishing
organizational objectives by acquiring,
retaining, terminating, developing and
properly using the human resources in an
organization.

- Donnelly and Gibson

Nature of HRM
 Nature of HRM

• HRM is a process
• Focus on objectives
• Universal application
• Continuous in nature
• Development of team spirit
• Long term benefits
• Dynamic
• Basic to all functional areas
HRM Process
HRM Process
The basic goal of HRM is to build organizational
performance capacity by raising human capital, to ensure
that highly capable and enthusiastic people are always
available.
• The 3 major responsibilities of HRM are

1.Attracting a quality workforce

2.Developing a quality workforce
3.Maintaining a quality workforce
 Attracting a quality workforce
HRM Process
1. Attracting a quality workforce
Human Resource Planning

        

Recruitment

        

Selection.

        
 Developing a quality workforce
HRM Process
2.Developing a quality workforce
Induction/orientation

        

Training and Development

        

Performance Appraisal

        
 Maintaining a quality workforce
HRM Process
3.Maintaining a quality workforce
Career Development
        
Work-life Balance
        
Compensation and Benefits
        
Retention and turnover
        
Labor-management Relations
        
 Steps in HRM Process

HR Planning

Recruitment

Selection
HRM

Orientation & Placements

Training & Development

Performance Management

Separations
Scope of HRM
Importance of HRM
 Importance of HRM

Good human resource

Ensuring that enterprise will
practice can help in
Effective utilisation of have in future a team of
attracting and retaining the
available human resources. competent and dedicated
best people in the
employees.
organisation.

Developing the necessary

Securing willing
skills and right attitudes
cooperation of employees
among the employees
through motivation,
through training,
participation, grievance
development, performance
handling, etc.
appraisal, etc.
Strategic HRM
Challenges of HRM
 Strategic HRM
“No strategy, no matter how well designed, will work unless the
organization has the right people, with the right skills and behaviors, in
the right roles, motivated in the right way and supported by the right
leaders”.
 Strategic HRM
• Strategic human resource management is the process of linking the human
resource function with the strategic objectives of the organization to improve
performance.

• Attracting and keeping talented and skilled employees is one of the most
important challenges organizations face in today’s dynamic business world.
Components of Strategic Human Resource
Management

1. It focuses on an organization’s human resources

(people) as the primary source of competitive
advantage of the organization.

2. The activities highlight the HR programs,

policies, and practices as the means through
which the people of the organization can be
deployed to gain competitive advantage.
 Components of Strategic
Human Resource Management

3. The people, practices, and planned patterns are all

purposeful, that is, directed towards the
achievement of the goals of the organization.
Human Resource Planning
Steps in HRM
Key Terms
Objectives
• End states or targets

Plans
• Means to hit the desired targets

Planning
• Decision-making process focused on
the future of an organization and how
it will achieve its goals
 HUMAN RESOURCE PLANNING

The process of analysing and identifying the need for and availability of
Human Resources so that the organisation can meet its objectives.

or

Process of anticipating and making provision for

the movement of people into, within, and out of
an organization

The process of determining an organisation’s Human Resources needs.

In simple words, HRP is understood as the process of
forecasting an organization's future demand for, and
supply of, the right type of people in the right number.

After this only the HRM department can

initiate the recruitment and selection process

Its also called as manpower planning, personal planning or employment

planning
Objectives of HR Planning

To ensure optimum use of existing

Human Resource

To forecast future requirement of

Human Resource
Objectives of HR Planning

To provide control measures to ensure that necessary

Human Resource is available as and when required

To assess the surplus and shortage of HR

(Right sizing)

To provide direction to all HR activities and

systems
 Objectives of HR Planning

To determine the
To anticipate the impact of level of
Recruitment and
technology on jobs and HR
Training

To meet the needs of

expansion and
To determine the cost of HR diversification
programs
 HR planning process
HR Planning Process

Human resources planning ensures the best fit between employees and
jobs while avoiding manpower shortages or surpluses.

The steps to the HRP process.

They include analyzing present labor supply, forecasting labor demand,
balancing projected labor demand with supply, and supporting
organizational goals.
HR Planning
Process
• Govt. Policies
• Level of Economic
• Business Environment
• Level of Technology
• Trade Unions
HR Supply Forecast
 “Supply forecasting measures the no. of people
likely to be available from within and outside an
HR Supply organization, after making allowance for
Forecast absenteeism, internal movements and
promotions, wastage and changes in hours and
other conditions of work”.
Forecasting Techniques
Forecasting Techniques

1. Managerial judgement

2. Ratio-trend analysis

3. Work study techniques

4. Delphi technique
 Managerial Judgement

In this all managers sit together, discuss and arrive

at a figure which would be the future demand for
labour.

This technique may involve a ‘bottom-up’ or ‘top-

down’ approach.
A combination of both could yield positive results.
 Ratio-trend Analysis

This is the quickest forecasting technique.

Under this method the ratios are calculated for the past data related to number of
employees of each category workload production, sales and marketing levels,
workload levels.
Future production and sales levels, workload, activity levels are estimated with an
allowance of changes in organization, methods and jobs.
 HR Demand
Business Factor Labour Productivity
Year ( No.of
( sales in '000) ( sales / employee)
Employee)
2018 2935 8.34 352
2019 3306 10.02 330
2020 3613 11.12 325
2021 3748 11.12 337
2022 3880 12.52 310
2023 4095 12.52 327
2024 4283 12.52 342
2025 4446 12.52 355
 HR Trend Analysis
360 352 355
350 342
340 337
330 327
330 325
320
310
310
300
290
280
2018 2019 2020 2021 2022 2023 2024 2025
Series1 352 330 325 337 310 327 342 355
 Work Study Technique

Work study techniques can be used when it

is possible to apply work measurement to
calculate the length of operations and the
amount of labour required.
 Statistical Technique
• Present level of production
01.01.2024 = 2000 units
Present number of foremen = 4
Ratio is 2000 by 4 = 500
• Estimated production as on
01.01.2025 = 5000 units
Foremen required as on 01.01.2025
= 5000 / 500
= 10
 Delphi Technique
This technique is the method of forecasting
personnel needs.

It solicits estimates of personnel needs from

a group of experts, usually managers, HR
Consultants, Industry people.

The HRP experts act as intermediaries,

summarize the various responses and
report the findings back to the experts.

Summaries and surveys are repeated until

the experts opinion begin to agree.
Benefits of HRP
 Benefits of HRP
• Create reservoir of talent.
• Preparation for future HR needs.
• Promote employees in a systematic manner.
• Provide basis for HRD.
• Help in career and succession planning.
• Helps in planning job assignments
• Helps cope with fluctuations in staffing
• Identifies recruiting needs
• Provides other useful information
JOB ANALYSIS
 Analysis

Analysis is the process of breaking a complex topic or substance

into smaller parts in order to gain a better understanding of it.
Key terms Definitions
TASK:
A distinct work activity which has
an identifiable beginning and end.

Ex: Post man sorting bag full of mails in

appropriate boxes
 JOB –
Consists of group of tasks that
must be performed for
organization to achieve its goals.

Ex: Sales Manager, Travel Agent, Event

Planner. Lawyer, Receptionist.
 POSITION
Collection of tasks and responsibilities
performed by one person;
There is a position for every individual
in organization
Job Analysis- Definition
 Job Analysis- Definition

• Job analysis is a systematic investigation of the tasks,duties

and responsibilities necessary to do a job.

• Job analysis is the process of collecting job related information.

Questions Job Analysis
Should Answer
Questions Job Analysis
Should Answer
Components of Job Analysis
Job Description Job Specification
A written summary of tasks, duties The minimum skills, education, and experience
and responsibilities of a job. necessary for an individual to perform a job.
 Example of Job Description
JOB TITLE: OCCUPATIONAL
CODE:
REPORTS TO: JOB NO. :

SUPERVISES: GRADE LEVEL:

AS ON DATE :

FUNCTIONS:

DUTIES AND RESPONSIBILITIES:

JOB CHARACTERISTICS:
Example of JobSpecification
JOB TITLE: _
EDUCATION:
PHYSICAL HEALTH:

APPEARANCE:

MENTAL ABILITIES:

SPECIAL ABILITIES:

PREVIOUS WORK EXPERIENCE:

SPECIAL KNOWLEDGE &

 Job Analysis: A Basic Human Resource Management Tool

Tasks Responsibilities Duties

Staffing
Training and Development
Job
Descriptions Performance Appraisal
Job Compensation
Analysis
Job Safety and Health
Specifications
Employee and Labor Relations
Legal Considerations

Knowledge Skills Abilities

The use of job analysis
Recruitment & selection
 Recruitment & Selection
❖ Helps in determining what kind of person is required to perform a
particular job.

❖ It points out the educational qualifications, level of experience and

technical, physical, emotional and personal skills required to carry
out a job in desired fashion.

The objective is to fit a right person at a right place.

 Performance Analysis
❖ To check if goals and objectives of a particular job are
met or not.

❖It helps in deciding the performance standards,

evaluation criteria and individual’s output.

❖On this basis, the overall performance of an employee

is measured, and he or she is appraised accordingly.
 Training & Development
❖ Be used to assess the training and development needs of
employees.

❖The difference between the expected and actual output

determines the level of training that need to be
imparted to employees.

❖It also helps in deciding the training content, tools and

equipment's to be used to conduct training and methods
of training.
 Compensation Management
❖Plays a vital role in deciding the pay packages and
extra perks and benefits and fixed and variable
incentives of employees.

❖The pay package depends on the position, job title

and duties and responsibilities involved in a job.

❖The process guides H R managers in deciding the

worth of an employee for a particular job opening.
 Job designing & Redesigning
❖The main purpose of job analysis is to streamline the
human efforts and get the best possible output.

❖It helps in designing, redesigning, enriching,

evaluating and cutting back and adding the extra
responsibilities in a particular job.

❖This is done to enhance the employee satisfaction

while increasing the human output.
Job Analysis Process
 Job Analysis Process

Job analysis in human resource management (HRM)

refers to the process of identifying and determining
the duties, responsibilities, and specifications of a
given job.
It encompasses the collection of data required to put
together a job description that will attract the right
person to fill in the role.
Job Analysis Process
 Identification of job analysis purpose

To determine its need and desired output.

Spending human efforts, energy as well as money is useless
Job Analysis Process until H R managers don’t know why data is to be collected
and what is to be done with it.
 Who will conduct job analysis
To decide who will conduct it.
Some companies prefer getting it done by their own HR
department while somehire job analysis consultants.
Job Analysis Process Job analysis consultants may prove to be extremely helpful
asthey offer unbiased advice, guidelines and methods.

They don’t have any personal likes and dislikes when it

comes to analyze ajob.
 How to conduct the process

A planned approach about how to carry the whole

process is required in order to investigate a specific job.
Job Analysis Process
 Strategic decision making
❖ Deciding the extent of employee involvement in the
process

❖ The level of details to be collected and recorded

Job Analysis Process ❖ Sources from where data is to be collected,

❖ Data collection methods,

❖ The processing of information and segregation of

collected data.
 Training of job analyst

To train the job analyst about how to conduct the

process and use the selected methods for collection
Job Analysis Process and recoding of job data.
 Preparation of job analysis process

Communicating it within the organization is the next step.

HR managers need to communicate the whole thing

Job Analysis Process properly so that employees offer their full support to the
job analyst.

The stage also involves preparation of documents,

questionnaires, interviews and feedback forms.
 Data collection
To collect job-related data including educational
qualifications of employees, skills and abilities required to
perform the job, working conditions, job activities, reporting
Job Analysis Process
hierarchy, required human traits, job activities, duties and
responsibilities involved and employee behavior.
 Documentation, verification and review

Proper documentation is done to verify the authenticity of

collected data and then review it. This is the final
Job Analysis Process information that is used to describe a specific job.
 Developing JD & JS

To segregate the collected data into useful information.

• Job Description describes the roles, activities, duties

Job Analysis Process and responsibilities of the job.

• Job Specification is a statement of educational

qualification, experience, personal traits and skills
required to perform the job.
 Work Activities
Summary of Worker-oriented activities

Types of Machines, tools, equipment, and work aids used

Data Job-related tangibles and intangibles

Collected Work performance

Through Job Job context

Analysis Personal requirements for job

Job Analysis Methods

• Questionnaires
• Observation
• Interviews
• Employee recording
• Combination of methods
 Questionnaires

• Typically, quick and economical to use

• Structured questionnaire to employees

• Problem: Employees may lack verbal skills

• Some employees tend to exaggerate

significance of their tasks
Observation
Interviews

• Interview both employee and supervisor

• Interview employee first, helping him or her describe duties

performed

• Then, analyst normally contacts supervisor for

additional information
Employee Recording

Describe daily work activities in diary

or log

Problem: Employees exaggerating

job importance

Valuable in understanding highly

specialized jobs
 Usually use more than
one method

Clerical and
Combination administrative jobs:
Questionnaires supported by
of Methods interviews and limited
observation

Production jobs:
Interviews supplemented by
extensive work observations may
provide necessary data
Job Analysis
Introduction

The data collected through job analysis provides the basis for
preparing job description and job specifications.

Since there is no standard format for job descriptions, they tend to

vary in one appearance and content from organization to another.
 What is a job
description?
A job description is a summary
of the major duties and
responsibilities of a position.

It also includes the education

and experience required to do
the work.
 Parts to a Job
Description
1. Job Title

2. Job Purpose

3. Job Duties

4. Working Conditions
5. Social Environment.
6. Machines, Tools and Equipment.
7. Supervision.
8. Relation to other Jobs.
1. Job Title
Examples of Job Titles:
• Administrative Assistant
• Manager
2. Job Purpose
The Job Purpose should be a clear, concise statement describing why the job exists.

Example:
The Administrative Assistant is responsible to provide support to the Director and other staff.
 In this section of the job description, you would
identify, in order of importance, a list of daily, weekly
and monthly duties.

3. Job Duties Example:

The Administrative Assistant -

• Prépares and edits correspondance and reports.

• Preparing invoices
• Sorting and distributing mail
• Organizing and coordinating meetings
 4. Working condition
Working condition usually information
about the environment in which a job
holder must work.

These includes heat, cold, dust, noise level,

moisture, fumes, etc. Nature of risk their
possibility of occurrence are also given.
Example:
• Unpredictable schedule and tasks
• Difficult visual conditions (lighting, glare)
• Noisy environment
 5. Social Environment

Size of work group and

interpersonal interactions required
to perform the job are given.

Training and development facilities

may also be mentioned.
 6.Machines, tools and
equipment
The names of major machines,
tools and equipment materials
used in the job are described.
 7. Supervision

Under it is given the number of

persons to be supervised along
with their job titles and extent of
supervision.
 8. Relation to other
jobs

• The jobs immediately below & above are

mentioned.

• It provides an idea of vertical workflow

and channels of promotion.

• It also indicates to whom the job holder

will report and who will report to him.
Job Specification
 Job Specification

• Commonly known as Employee Specifications,

• A job specification is a statement of the minimum

acceptable human qualities necessary to perform a job
properly.
 Definition

“A job specification defines the knowledge, skills and abilities that are required to
perform a job in an organization”.
DESCRIBES:
• Knowledge
• Skills
• Education
• Experience and
• Abilities
Essential to performing a particular job
 There are many parameters which are considered
while giving the job specification for a certain
Contents Of profile:
Job
Specification 1. Educational Qualification:
This parameter gives an insight on how qualified a
Statement certain individual is.
It covers their basic school education, graduation,
masters degree, other certifications etc
 2. Experience:
Contents Of Job specification clearly highlights the experience

Job required in a particular domain for completing a specific

job.
Specification
It includes work experience which can be from a specific
Statement industry, position, duration or in a particular domain.

Managerial experience in handling and managing a team

can also be a job specification criteria required for a
particular position
 3. Skills & Knowledge:
Contents Of This is an important parameter in job specification
Job especially with knowledge and skill based profiles.

Specification The higher the position in a company, the more

Statement niche the skills become and more is the knowledge

required to perform the job. Skills like leadership,
communication management, time
management, team management etc are
mentioned.
 4. Personality traits and characteristics:

Contents Of
The way in which a person behaves in a particular
Job situation, handles complex problems, generic
Specification behaviour etc are all covered in the characteristics of
Statement a job description.

It also covers the emotional intelligence of a person.

i.e how strong or weak a person is emotionally

 Marketing Manager in a telecom
Job Specification company.

Education Must be an engineer and MBA in marketing for a reputed MBA institute
Work experience Must have prior work experience in marketing & sales (preferably telecom or FMCG)

Skills & Knowledge 1. Must be a good communicator and must be able to lead a team.
2. Prior experience in handling activities and managing promotional events.
3. Must be able to handle social media like Facebook, Twitter and help build online
brand
4. Experience in managing PR and media
5. Strong analytical skills and problem solving skills
6. Must understand business, come up with innovative products and launch them

Personality Traits & 1. Must be presentable and a good orator

Characteristics 2. Should be calm in complex situations and show leadership skills in managing
multiple teams
3. Should be emotionally strong and should give timely deliverables
THANK YOU

Madhukumar.K
Faculty of Law
madhukumar@pes.edu