HUMAN RESOURCE

MANAGEMENT
HUMAN RESOURCE MANAGEMENT
• Human Resource (HR) management deals with the design of formal
systems in an organization to ensure the effective and efficient use of
human talent to accomplish organizational goals.
• Human resource management is the process of acquiring, training,
appraising, and compensating employees, and attending to their
labor relations, health and safety, and fairness concerns.
Importance of Human Resource Management
Managers don’t want:
• To have employees not doing their best.
• To hire the wrong person for the job.
• To experience high turnover of employees.
• To have company in court due to discriminatory actions.
• To let a lack of training undermine department’s effectiveness.
• To commit any unfair labor practices.
HR & COMPETITIVE ADVANTAGE
• People offer skills, capabilities & knowledge which help execute firm’s
strategies successfully.
• By aligning human resources plans to business plans that help
accomplish business objectives.
• HR has active role in policy formulation, mediating employee
grievances, monitoring compliance with employment laws and
enforcing codes of conduct.
• Organisational designs do not remain static
 HR & COMPETITIVE ADVANTAGE
• Organisational designs do not remain static over a period of time.
Environmental changes compel organisations redesign their structures.
• Change management is critical to the success of any firm.
• The three
strategies that help
an organisation
achieve
competitive
advantage are:
• Innovation—being
the unique
producer
• Quality—
delivering high
quality goods and
services
• Cost leadership—
leveraging on all
possible means to
save on cost.
• HRM moulds
behaviours of
employees to suit
each of the these
strategies
SCOPE & NATURE OF HRM
The nature of human resource management is people-centred and relevant in all
types of organisations.
• HRM concern with building of human capital.
• HRM necessitates alignment of HR policies and practices with the organisation’s
goals—both corporate as well as functional.
• HRM involves in implementing management principles in the organisation.
• HRM assumes that it is the people who make the difference. They alone are
capable of generating value and adding to the competitive advantage to
organisations.
• HR activities are not the sole responsibility of the HR specialists. Line managers
are equally responsible for carrying out the activities.
• HR functions are not confined to business establishments only.
 Objectives of HRM
• Societal Objectives: seek to ensure that the organization
becomes socially responsible to the needs and challenges
of the society while minimizing the negative impact of
such demands upon the organization.
• Organizational Objectives: it recognizes the role of HRM
in bringing about organizational effectiveness. It makes
sure that HRM is not a standalone department, but
rather a means to assist the organization with its primary
objectives.
• Functional Objectives: is to maintain the department’s
contribution at a level appropriate to the organization’s
needs. The department’s value should not become too
expensive at the cost of the organization it serves.
• Personnel Objectives: it is to assist employees in
achieving their personal goals, at least as far as these
goals enhance the individual’s contribution to the
organization. Personal objectives of employees must be
met if they are to be maintained, retained and motivated.
HRM FUNCTIONS
• Planning: Preparing forecasts of future HR
needs in the light of an organisation’s
environment, mission and objectives
• Staffing: Obtaining people with the
appropriate skills, abilities, knowledge .
• Developing: Analysing learning
requirements to ensure that employees
possess the knowledge and skills to perform
satisfactorily in their jobs or to advance in
the organisation.
• Motivating: The design and administration
of reward systems. HR practices include job
evaluation, performance appraisal, pay and
benefits.
HRM FUNCTIONS
• Maintaining: The administration and
monitoring of workplace safety, health,
and welfare policies .
• Managing relationships: Encompasses a
range of employee
involvement/participation schemes in
non-union or union work places.
• Managing change: This involves helping
others to envision the future.
• Evaluating: Designing the procedures
and processes for measuring.
Supporting Functions and Objectives
HRM Objectives Supporting Functions
Societal Objectives 1. Legal compliance
2. Benefits
3. Union-management Relations
Organisational 3. Human resource planning
Objectives 4. Employee relations
5. Selection
6. Training and development
7. Appraisal
8. Placement
9. Assessment
Functional Objectives 10. Appraisal
11. Placement
12. Assessment
Personal Objectives 13. Training and development
14. Appraisal
15. Placement
16. Compensation
17. Assessment
HRM FUNCTIONS
Personnel Management and HRM
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT

The aspect of management that is concerned with the The branch of management that focuses on the most
work force and their relationship with the entity is known effective use of the manpower of an entity, to achieve the
as Personnel Management. organizational goals

Traditional Approach Modern Approach

Employee are treated as Machines or Tools Employee are treated as Asset
Considered as Routine function Considered as Strategic function
Remuneration is given on basis of Job Evaluation Remuneration is given on basis of Performance Evaluation

It is considered as Transactional in nature It is considered as Transformational in nature

Decision Making is slow Decision Making is Fast

Focus is on primarily on activities like employee hiring, Focus is on treat manpower of the organization as valued
remunerating, training. assets, to be valued and motivated.
Evolution of modern HRM
Role of Human Resource Management
• Administrative Role of HRM
• Operational and Employee Advocate Role for HRM
• Strategic Role for HRM
SKILLS & COMPETENCIES FOR HR
PROFESSIONALS
• Education Qualifications
• Personal Attributes
• Intelligence
• Communication ability
• Decisiveness
• Teaching skills
• Leadership Skills
• Training & Experience
• Professional Attitude
• Role of Human Resource Manager
• As a Specialist
• As an Information Source
• As a Change Agent
• As a Controller
• As a Liaison Man
ORGANISATION OF HR DEPARTMENT
STRUCTURE
• Place of the HR department in the overall
set-up
• Composition of the HR department itself
Organisation of HR Department
 Human Resource Management
Responsibilities of Line and Staff
Line Manager's Responsibilities HR Department’s Responsibilities
Placing the right man on the right jobs Advising and assisting line managers in hiring, training,
appraising and firing employees at all levels.
Orientation of new employees Administering various employee benefit programmes.
Training employees on the job Ensuring that the various labour laws are duly complied with
Developing cooperative relationships in the Coordinating human resource activities of different
organisation departments
Interpreting the company's policies and procedures. Policy formulation: HR dept initiates new HR policy
Developing potential of every employee Advising other departments in areas related to human
resource , industrial relations etc.
Controlling labour costs. Assistance & services like scrutinising applications, arranging
test & interview, orientation program etc.
Developing high morale Monitoring & control by evaluating performance & reviewing
line department’s concerning accidents, grievances,
absentism, disciplinary actions etc
Protecting health and safety of employees
Administrative HRM
• Compliance: Ensuring adherence to labor laws, regulations, and company
policies. This includes managing payroll, taxes, benefits administration, and
recordkeeping.
• Data management: Maintaining accurate and up-to-date employee
data, including contact information, employment history, and performance
records.
• Recruiting and onboarding: Processing basic applications, scheduling
interviews, conducting background checks, and onboarding new
employees.
• Benefits administration: Enrolling employees in benefits
programs, managing claims, and ensuring compliance with program rules.
Operational HRM
• Talent acquisition: Developing and implementing effective recruitment strategies to
attract and hire top talent. This includes sourcing candidates, conducting in-depth
interviews, and assessing skills and cultural fit.
• Performance management: Setting performance goals, providing feedback, conducting
performance reviews, and identifying opportunities for development.
• Learning and development: Designing and delivering training programs to enhance
employee skills, knowledge, and abilities. This may include technical training, leadership
development, and soft skills training.
• Compensation and benefits: Designing and administering competitive compensation
and benefits packages, including salary, bonuses, retirement plans, and health insurance.
• Employee engagement: Fostering a positive work environment that motivates
employees and promotes high morale. This includes initiatives like team building
activities, recognition programs, and employee surveys.
Strategic HRM
• Workforce planning: Analyzing current and future workforce needs based on the
organization's strategic goals. This includes forecasting talent gaps, developing succession
plans, and aligning HR initiatives with business objectives.
• Change management: Facilitating organizational change initiatives to adapt to new
technologies, market demands, or business priorities. This includes communicating
changes effectively, managing resistance, and providing training and support.
• Culture building: Defining and shaping the organization's culture to attract and retain top
talent, enhance collaboration, and drive performance. This involves establishing shared
values, promoting diversity and inclusion, and building a strong employer brand.
• HR analytics: Leveraging data to measure the effectiveness of HR programs, identify
trends, and inform strategic decision-making. This includes tracking employee
engagement, retention rates, and the impact of HR initiatives on organizational
performance.
• Business partnership: Collaborating with other departments and executives to align HR
strategies with the overall business strategy and support organizational goals.
Strategic Human Resource
Management
 Concept of strategy
• Strategy: Strategy is a unified, comprehensive and integrated plan
that relates the strategic advantages of the firm to the challenges of
the environment. It is designed to ensure that the basic objectives of
the enterprise are achieved through proper execution by the
organisation.
Three levels of Strategic Decision-making

Companies generally formulate

three types of strategies:
• Corporate strategies which
identify the mix of businesses the
firm will engage and the ways in
which these businesses will
relate to each other.
• Business strategies which
identify how each of the firm's
businesses will compete in the
marketplace.
• Functional strategies which Level of Strategy formulation
identify how manufacturing,
marketing and other functions
will contribute to the business
strategy.
Strategic Management
Strategic management involves the following processes:
• Defining the company's vision, mission and purpose.
• Identifying the company's internal strengths and weaknesses.
• Analysing the opportunities and threats existing in the external
environment.
• Formulating strategies that will match strengths and weaknesses with
the opportunities and threats.
• Implementing the strategies.
• Evaluation and control to ensure achievement of the organisation's
objectives.
Concept of Strategic HRM
• Strategic human resource management may be defined as the
integration of HRM with the strategic goals and corporate strategy
so as to improve business performance and achieve organisational
goals.
• SHRM involves that—
• Human resource management is fully integrated with the strategy and the
strategic needs of the firm;
• Human resource policies cohere both across policy areas and across
hierarchies;
• Human resource architecture of the firm results in financial performance.
• Human resource practices are adjusted, accepted, and used by line managers
and employees as part of their daily work.
STRATEGIC HRM VERSUS CONVENTIONAL
HRM
STRATEGIC HRM VERSUS CONVENTIONAL
HRM
HRM role in strategy formulation &
implementation
Role of Strategic Human Resource
management
Strategic Human Resource management
Process
• Scan the Environment: Analysis of
environment provides inputs for
decision-making in business, which
includes HR decisions too.
• Identify Sources of Competitive
Advantage: These sources of
competitive advantage reflect the core
capabilities of an organisation.
Strategic Human Resource management
Process
• Identify HRM Strategies:
a) Innovation strategy (production of new product and services who are different
from the competition)
b) Strategy of quality improvement (continuous improvement of quality of
products and services)
c) Strategy of lowering the costs (strategy of leading in low costs what means
lowest investment and so lowest costs)
Accordingly this three business strategies needs different HRM approaches and
employee behaviour.
Strategic Human Resource management
Process
• Identify HRM Strategies:
• Innovation strategy: Required creative behavior, high level of cooperativeness in the
work, long-term direction, average concern for quality and quantity, equal concern for
the process and result, high level of risk. The HRM strategy should be so conceived that
supports such employee's behavior (e. g. strengthen the teamwork, performance
management who is taking, high tolerance for uncertainty).
• Strategy of quality improvement: Requires people who works more skilful and better.
The HRM strategy should initialize high level of employee's participation in decision
about the job and working condition, mix of individual and group criterions of job
evaluation mainly oriented on short-term results.
• Strategy of lowering the costs: Requires employees who works more i.e. more harder
for the same salary. The HRM strategy which support this business strategy should
have relatively fixed and explicit job description which gives little space for
unclearness, narrow designed jobs and narrow career path which stimulates
specialisations and efficacy.
Strategic Human Resource management
Process
• Implementing HR Strategies: The
fourth phase in SHRM relates to the
implementation of HR strategies. HR
strategies are implemented through
HR policies, plans, and practices.
• Monitor and Evaluation: Analyse
deviations from acceptable tolerance
limits and execute modifications if
necessary and are feasible.
BENEFITS OF SHRM
• First, HR leader is now accorded equal status along with other
functional heads, is a member of the core committee to make
strategic decisions, earns big compensation, and is given all privileges.
• Second, being a strategic partner, HR manager plays key role in
making a merger or an acquisition a success. Often merger or
takeover fails because there is no cultural integration between
employees of both the companies.
• Third, being part of the strategic management process, HR
professionals seek to answer the fundamental question: How to
create an organisation to accomplish business objectives?
BENEFITS OF SHRM
• Fourth, organisations can be categorised into three depending on whether they are first
in the market (prospectors), defending the present market share (defenders), or enter
once it is created, with an improved product moving to become low cost produce
themselves (analysers). Strategy processes differ among these three types of
organisations: Defenders plan first, then act and evaluate; prospectors, act first, then
evaluate and finally plan; and analysers evaluate first, then act and finally plan. Strategic
HRM customises HR practise to suit the unique requirements of each of these three
strategies.
• Fifth, the most significant benefit from SHRM relates to the creation of organisational
capability by ensuring that the firm has skilled, engaged, committed and motivated
employees who can render competitive advantage to it.
• Sixth, strategic HRM provides a sense of direction to an organisation in a turbulent
environment so that the business needs of the firm and the collective and individual
needs of its employees can be met by the development and implementation of coherent
and practical HR policies and programmes.
BARRIERS TO STRATEGIC HRM
• The first barrier relates to the tendency of most organisations adopt a
short-term mentality and focus on current performance.
• The second barrier relates to the inability of HR leaders to think
strategically. They are unable to go beyond their area of operation.
• The third barrier is that most senior managers lack appreciation for
the value of HR and its ability to contribute to the organisation from a
strategic perspective.
• The fourth barrier is that some functional managers see themselves
as HR managers as well and are concerned more with technical
aspects of their areas of responsibility than the human aspects.
BARRIERS TO STRATEGIC HRM
• The fifth barrier to strategic HR is the problem of quantifying many of
the outcomes and benefits of HR programmes. It is believed that
many of the outcomes of HR function are abstract-felt, but not seen.
• The sixth barrier to strategic HR is the fact that human assets are not
owned by organisations and, therefore, are perceived as a higher risk
investment than capital assets.
• The seventh barrier is that strategic HR may be resisted because of
the insensitivity towards change that might arise. Taking a strategic
approach to HR may mean making drastic changes in the firm’s
architecture. Not many executives are prepared to accept such drastic
changes.
BARRIERS TO STRATEGIC HRM
• The eighth, barrier to SHRM relates to the concern arising from non-
availability of HR professionals to staff themselves in HR departments,
consequent to integration of HR function with business strategy.
• The ninth barrier includes failure to understand the strategic needs of
the business, inadequate assessment of the environmental and
cultural factors.
• The tenth barrier previews to that, there is enough disconnect
between the HR team and the employees
HR POLICIES AND PRINCIPLES
• Policies: These are plans of action. Organisations need to evolve HR
policies as they ensure consistency and uniformity in treating people.
• Following statement is an expression of a principle or an objective:
It is the intention of the company to provide a safe plant and a healthy working
environment.
The following is a policy:
Our policy is to institute every practical method for engineering safety into our
processes and equipment, to provide protective clothing where necessary, to
train employees in safe operating procedures, and to vigorously enforce
established safety rules. Our policy is to provide a healthy plant by giving
adequate attention to cleanliness, temperature, ventilation, light and
sanitation.
Organisations should have personnel policies
as they ensure the following benefits:
• Examine its basic convictions: The work involved in formulating
personnel policies requires that the management give deep thought
to the basic needs of both the organisation and the employees.
• Minimizing favouritism and discrimination
• Policies promote stability: Continuity of action is assured even though
top-management personnel change
• Policies serve as a standard of performance
• Sound policies help build employee motivation and loyalty
• Sound policies help resolve intrapersonal, interpersonal and
intergroup conflicts
A few specific personnel policies are:
• Policy of hiring people with due respect to factors like reservation, gender,
marital status, etc
• Policy on terms and conditions of employment—compensation policy and
methods, hours of work, overtime, promotion, transfer, lay-off, etc
• Policy with regard to medical assistance—sickness benefits, company
medical benefits.
• Policy regarding housing, transport, uniform and allowances.
• Policy regarding training and development—need for, methods of, and
frequency of training and development.
• Policy regarding industrial relations—trade-union recognition, collective
bargaining, grievance procedure, participative management, and
communication with workers.
Characteristic of HR policies
• Clear and positive
• Properly written
• In-line with corporate vision & mission
• Preferably in regional language
• Known to all interested parties
• Stable but not rigid
• In-line with governmental rules & regulations
Objectives of HR policy
• Achieving Organisational Objectives
• Individual Development and Satisfaction
• Optimum Use of Resources
• Minimizing uncertainty
• Smooth Industrial Relations
• Effective Controls
Scope of HR Policies
In most companies, policies are established regarding various functions of human resource management
which are as follows:
1. Employment. All policies concerning recruitment, selection, and separation of employees are included
in this function.
(a) Minimum hiring qualifications.
(b) Preferred sources of recruitment.
(c) Reservation of seats for scheduled castes, scheduled tribes, handicapped persons and ex-servicemen.
(d) Employment of local people and relations of existing staff.
(e) Reliance on various selection devices such as university degrees, tests, interviews, reference checks, physical
examination, etc.
(f) Basis (length of service or efficiency) to be followed in discharging an employee.
(g) Probation period.
(h) Layoff and retiring.
2. Training and Development
(a) Attitude towards training-Whether it is regarded as a device to overcome specific problems or as a continuing
relationship between superior and subordinate.
(b) Objectives of training.
(c) Opportunities for career development.
(d) Methods of training-On the job or Off the job.
(e) Programmes of executive development.
(f) Orientation of new employees
3. Transfers and Promotions
(a) Rationale of transfer.
(b) Periodicity of transfer.
(c) Promotion from within or outside the organisation
(d) Seniority required for promotion
(e) Relative weightage to seniority and merit in promotion
(f) Seniority rights.
(g) Channels of promotion.
4. Compensation
(a) Job evaluation system.
(b) Minimum wages and salaries.
(c) Method of wage payment.
(d) Profit sharing and incentive plans.
(e) Non-monetary rewards.
(f) Procedure for getting pay.
(g) Whether to pay prevailing or more than prevailing salary scales.
5. Working Conditions
(a) Working hours.
(b) Number and duration of rest intervals.
(c) Overtime work.
(d) Shift work.
(e) Safety rules and regulations.
(f) Leave rules.
6. Employee Services and Welfare
(a) Types of services-housing, transportation, medical facilities, education of children, group insurance,
credit facilities, purchase of company's products at discount, company stores, social security, etc.
(b) Financing of employee services.
(c) Incentives to motivate.
7. Industrial Relations
(a) Handling of grievances.
(b) Recognition of trade union.
(c) Suggestions schemes.
(d) Discipline and conduct rules.
(e) Workers' participation in management.
Determinants of HR Policy
• Attitudes and philosophy of founders of the company, its directors and the
top management
• Attitudes and philosophy of middle and lower management
• Type of Workforce
• Presence of Employee Union
• Company’s Financial Condition
• Competitor’s HR Policy
• Past practice in the organisation
• Knowledge and experience gained from handling countless personnel
problems on a day-to-day basis
HR Principles guiding policies
• Principles guide managers in formulating policies, procedures, and
practices. Some of the personnel principles are:
• Principle of individual development
• Principle of scientific selection
• Principle of free flow of communication
• Principle of participation
• Principle of fair remuneration
• Principle of incentive to recognise and reward good performance.
• Principle of dignity of labour
• Principle of labour management co-operation
• Principle of team spirit
• Principle of Contribution to National Prosperity
Types of HR policies
• Originated Policies: These policies are established formally and deliberately by
top management. Senior executives initiate such policies to guide their
subordinates.
• Appealed Policies: These policies are formulated on requests of subordinates who
want to know how to handle some situations. The need for such a policy arises
because the particular case in not covered by the earlier policies.
• Imposed Policies: An organisation accepts these policies due to pressure of
external agencies like Government, trade association, trade union, etc.
• General Policies: These policies do not relate to any specific issue in particular.
Rather they represent the basic philosophy and priorities of top management.
• Specific Policies: These policies relate to specific issues like staffing,
compensation, collective bargaining, etc.
• Written or Implicit Policies: These policies are inferred from the behaviour of
managers. Such policies tend to be more flexible than written policies.
Process of policy formulation
• Identifying the need
• Gathering information
• Examining policy alternatives
• Getting approval
• Communicating the policy
• Evaluating the policy
• How clear is the policy statement?
• To what extent the policy is consistent with public policy?
• How well the policy reflect the company’s policy?
Human Resource Planning
• HRP is the process of forecasting a firm’s future demand for, and supply of,
the right type of people in the right number.
• It is only after this that the HRM department can initiate the recruitment and
selection process. HRP is a sub-system in the total organisational planning.
• Manpower planning is the strategy for the acquisition, utilisation,
improvement and preservation of an organisation's human resources.
• According to Beach, "Human resource planning is a process of determining
and assuming that the organisation will have an adequate number of qualified
persons, available at the proper times, performing jobs which meet the needs
of the enterprise and which provide satisfaction for the individuals involved”.
Characteristics of Human Resource Planning
• Human resource planning like all planning is forward looking or future
oriented.
• Human resource planning is an on-going or continuous process.
• Human resource planning is an integral part of corporate planning.
• The basic purpose of human resource planning is to make optimum utilisation
of an organisation's current and future human resources.
• Human resource planning has both quantitative and qualitative aspects.
• Human resource planning is the primary responsibility of management so as
to ensure effective utilisation of the organisation's human resources.
• Human resource plans can be long-term or short-term.
• Human resource planning is a two-phased process involving calculation about
the demand for and supply of human resources, so as to secure an equilibrium
between the two.
Need and Importance of Human Resource
Planning
Recent years, focus on human resource planning has increased due to
following reasons:
• Employment Situation
• Technological changes
• Organisational change
• Demographic changes
• Legislative controls
• Lead time
• Hiring Costs
• Increased mobility
FACTORS AFFECTING HRP
• Type and strategy of organisation: The type of organisation
determines the production process involved and the number of staff
retained. In addition, the strategic plan of the organisation defines its
HR needs.
• Organisational growth cycles and planning: The stage of an
organisation’s growth can have considerable influence on HRP. Small
organisations in the initial stage may not have personnel planning.
• Environmental uncertainties: HR managers rarely have the privilege
of operating in a stable and predictable environment.
• Time horizons: On one hand, there are short-term plans spanning six
months to one year. On the other hand, there are long-term plans
which spread over three to twenty years.
FACTORS AFFECTING HRP
• Nature of jobs being filled: The labour supply the following
deserve due consideration:
• The size, age, gender and educational composition of the population
• The demand for goods and services in the country
• The nature of production technology
• Employability of the people
• Off-loading the work: Outsourcing of non-critical activities
through subcontracting determines HRP
Human Resource Planning Process
Process of HRP
1. Analysing Organisational Plans: First of all, the objectives and
strategic plans of the company are analysed. Plans concerning
technology, production, marketing, finance, expansion and
diversification give an idea about the volume of future work
activity.
 Process of HRP
2. Forecasting Demand for Human Resources (Manpower Forecasting): On
the basis of corporate and functional plans, and future activity levels, the
future needs for human resources in the organisation are anticipated.
Reasons for doing demand forecasting It can help in:
(i) quantify the jobs necessary for producing a given number of goods, or
offering a given amount of services
(ii) determine what staff-mix is desirable in the future
(iii) assess appropriate staffing levels in different parts of the organisation
so as to avoid unnecessary costs
(iv) prevent shortages of people where and when they are needed most
(v) monitor compliance with legal requirements with regard to reservation of
jobs.
Process of HRP
2. Forecasting Demand for Human Resources (Manpower Forecasting):
Techniques employed in manpower forecasting are:
(a) Managerial Judgement: Under this method, experienced managers
estimate the manpower requirements for their respective
departments on the basis of their knowledge of expected future
workload and employee efficiency.
(b) Work-study Method: In this method, time and motion study are
used to analyse and measure the work being done. With the help of
such studies, standard time required per unit of work is decided
(c) Ratio-Trend Analysis: under this ratios,( eg total output/number of
workers, total sales volume/number of sales persons, direct
workers/indirect workers), are calculated on the basis of past data.
(d) Mathematical Models. A mathematical model expresses the relationship
between independent variables (e.g., investment, production, sales, etc.)
and dependent variable (e.g., number of employees required). Several types
of models, e.g., regression, optimisation models, probabilistic models can be
used. These are complex and appropriate only for large organisations.
• Regression Analysis: This is similar to ratio-trend analysis in that forecast is based on
the relationship between two or more variables. However, regression analysis is
more statistically sophisticated.
Example of Managerial Judgement: Staff Forecast Form
• Example of Work-study Method

Planned output for next years 50,000 units

Standard hours per unit 2
Productive hours per worker in the year 2,000

• Calculate the number of employees required for next year. Also

calculate no of supervisors required if span of control is ten.
• Example of Work-study Method

Planned output for next years 50,000 units

Standard hours per unit 2
Planned hours required 50,000 X 2 = 1,00,000
Productive hours per worker in the year 2,000
Number of workers required 1,00,000/ 2,000 = 50
If the span of control is ten-Supervisor required- 50/10= 5 supervisors
• Example of Ratio-Trend Analysis
Production level in 2013-14 50,000 units
Number of workers in 2013-14 50
Number of supervisors in 2013-14 5
Estimated production in 2014-15 60,000 units

Calculate the Number of workers & supervisors required in 2014-15.

• Example of Ratio-Trend Analysis
Production level in 2013-14 50,000 units
Number of workers in 2013-14 50
Ratio 50: 50,000 or 1 : 1,000
Number of supervisors in 2013-14 5
Ratio 5 : 50 or 1 : 10
Estimated production in 2014-15 60,000 units
Number of workers required in 2014-15 60,000 x 1/ 1,000 = 60
Number of supervisors required in 2014-15 60 X 1/ 10 = 6
3. Forecasting Supply of Human Resources
• Every organisation has two sources of supply of human resources-
internal and external. Internally, human resources can be obtained
for certain posts through promotions and transfers.
3. Forecasting Supply of Human Resources
• Human Resource inventory contains data about the present human resources. Its main
components are:
(a) Head counts like, total number of people employed, department wise, skill wise,
designations wise, payroll wise, gender wise, etc.
(b) Job family inventory, i.e number of employees in each job, e.g.clerks, typists, cashiers
(c) Age inventory, i.e age-wise classification of employees.
(d) Skill inventory containing data about the education skills, experience, past performance,
work preference and potential for promotion.

Fig: Skill Inventory Performa

 4. Estimating Manpower Gaps
• Net human resource requirements or manpower gaps can be
identified by comparing demand forecasts and supply forecasts. Such
comparison will reveal either deficit or surplus of human resources in
future.

Fig: Calculating Manpower Requirements

5. Action Planning
• Once the manpower gaps are identified, plans are prepared to bridge
these gaps.

Table: Action Planning Options

6. Monitoring and Control
• Once the action plans are implemented, the human resource
structure and system need to be reviewed and regulated.
• Monitoring and control phase involves allocation and utilisation of
human resources over time.
• Review of manpower plans and programmes helps to reveal
deficiencies. Corrective actions should be taken at the right time to
remove the deficiencies.
• Manpower inventory should be updated periodically. Necessary
modifications in manpower plans should be made in the light of
changing environment and needs of the organisation.
Limitations of Human Resource Planning
• Inaccuracy: Human resource planning involves forecasting the demand for
and supply of human resources. Therefore, it cannot be a cent per cent
accurate process.
• Uncertainties: Labour absenteeism, labour turnover, seasonal
employment, technological changes and market fluctuations are the
uncertainties which serve as constraints to human resource planning.
• Inefficient Information System: In most of the Indian industries, human
resource information system has not been fully developed. In the absence
of reliable data, it is not possible to develop effective human resource
plans.
• Time and Expense: Manpower planning is a time-consuming and
expensive exercise. A good deal of time and cost are involved in data
collection and forecasting.
Guidelines for Effective Human Resource
Planning
• Tailor-made: Human resource plans should be balanced with the
corporate plans of the enterprise. The methods and techniques used
should fit the objectives, strategies and environment of the particular
organisation.
• Appropriate Time Horizon: The period of a human resource plan should be
appropriate to the needs and circumstances of the specific enterprise.
• Adequate Organisation: Human resource planning function should be
properly organised. A separate cell, section or committee may be
constituted within the human resource department to provide adequate
focus, and to coordinate the planning efforts at various levels.
• Top Management Support: Before starting the human resource planning
process, the support and commitment of top management should be
ensured.
Job Analysis & Job Design
What is a Job?
• Job: It is a group of tasks positions involving some duties,
responsibilities, knowledge and skills. Each job has definite title and is
different from other jobs. For eg. peon, typist, mail clerk, salesman,
are jobs.
• Jobs are labour activities that generate income, monetary or in kind,
without violating fundamental rights and principles at work.
•
Concept of Job Analysis
• Job analysis is a formal and detailed study of jobs.
• It refers to a scientific and systematic analysis of a job in order to
obtain all pertinent facts about the job.
• Job analysis has been defined as "the process of determining by
observation and study the tasks, which comprise the job, the
methods and equipment used, and the skills and attitudes required
for successful performance of the job.”
Significance of Job Analysis
• Organisational Design: Job analysis is useful in classifying jobs and
interrelationship among them.
• Human Resource Planning: Job analysis provides useful information for
forecasting manpower requirements in terms of knowledge and skills.
• Recruitment and Selection: Information relating to the tasks, responsibilities,
knowledge and skills serves as a realistic basis for hiring people.
• Placement and Orientation: A clear understanding of job requirements helps in
matching these requirements with the abilities, interests and aptitudes of people.
• Training and Development: Job analysis provides valuable information required
to identify training needs, to design training programmes and to evaluate
training effectiveness
• Performance Appraisal: Job analysis helps in determining performance
standards in critical parts of a job. Employee performance can then be evaluated
against known standards and critical activities.
Significance of Job Analysis
• Career Path Planning: Job analysis provides a clear idea of opportunities in terms of
career paths and jobs available in the organisation.
• Job Design: With the help of knowledge about job requirements, improvements in work
design and work methods can be made to improve productivity and job satisfaction.
• Job Evaluation: Job analysis serves as the basis for determining the relative worth of
different jobs.
• Health and Safety: Job analysis reveals unhealthy and hazardous environmental and
operational conditions in various jobs.
Process of Job Analysis
1. Organisational Analysis: First of all an overall view of various jobs in the organisation is
obtained. This is required to judge the linkages between jobs and the organisational goals.
2. Organising Job Analysis Programme: The organisation must decide who will be in
charge of the programme and must assign responsibilities of performing activities involved
in job analysis.
3. Deciding the Uses of Job Analysis Information: The information generated by job
analysis can be utilised for practically all functions of human resource management.
Nevertheless, it is desirable to focus on a few priority areas in which the job analysis
information is to be used.
4. Selecting Representative Jobs for Analysis: It would be highly time consuming and
costly to analyse all the jobs. It is, therefore, desirable to select a representative sample of
jobs for the purpose of detailed analysis.
5. Understand Job Design: The job analyst should obtain information concerning the
current design of the representative job. For this purpose, current job description and job
specification, procedure manual, systems flow charts, etc. can be studied.
Process of Job Analysis
6. Collection of Data: In this step, data on the characteristics of the job, and
qualifications and behaviour required to do the job effectively is collected.
Data may be collected from the employees who actually perform the job or
from their supervisors.
7. Developing a Job Description: The information collected in the previous
step is used in preparing a job description. This is a written statement that
describes in brief the tasks, duties and responsibilities which needs to be
discharged for effective job performance.
8. Preparing a Job Specification: The last step in job analysis is to prepare a
job specification or employee specification. This is a written statement which
specifies the personal attributes in terms of education, training, experience
and aptitude required to perform the job.
Process of Job Analysis
Techniques of Job Analysis/Methods of Data
Collection
• Job Performance: Under this method, the job analyst actually performs the job under study to
obtain a first hand experience of the actual tasks, physical and social demands and the
environment of the job.
• Personal Observation: Here the analyst directly observes the worker or a group engaged in doing
the job. The tasks performed the pace at which activities are carried out the working conditions
• Interview: The analyst personally interviews the employee, his supervisor and other concerned
persons and records answers to relevant questions. A standard format is used to record the data
so that the data collected from different employees can be compared to identify the common and
critical aspects of the job.
• Questionnaire: In this method, properly drafted questionnaires are sent out to jobholders. After
completion these are returned to supervisors. Eg. Position Analysis Questionnaire, Management
Position Description Questionnaire.
• Critical Incidents: In this method, jobholders are asked to describe incidents concerning the job
on the basis of their past experience. The incidents so collected are analysed and classified
according to the job areas they describe.
• Log Records: In this method, a diary or logbook is given to each jobholder. The jobholder daily
records the duties performed making the time at which each task is started and finished. The
record so maintained provides information about the job.
Job Description
• Job description is a functional description of what the job entails.
• It is descriptive in nature and defines the purpose and scope of a job.
• Job description is a written record of the appropriate and authorised
contents of a job. It is a factual and organised statement describing
the job in terms of its title, location, tasks, duties, responsibilities,
working conditions, hazards and relationship with other jobs.
Uses of Job Description
Job description is helpful in the following areas of human resource management:
• Job grading and classification
• Placement of new employees on a job.
• Orientation of new employees towards basic duties and responsibilities.
• Promotions and transfers.
• Defining and outlining career paths.
• Redressal of grievances relating to duties and responsibilities.
• Investigating accidents.
• Locating faulty work procedures and duplication of papers.
• Work measurement and work improvement.
• Defining the limits of authority.
• Health and fatigue studies.
• Developing performance standards,
• Establishing a common understanding of a job between management and workers.
• Determining jobs for occupational therapy.
Contents of Job Description
• Job Identification: Job title, code number of the job, department or division where the job is located. This
part of job description helps to identify and designate the job. It also reveals the relationship of the job with
other jobs.
• Job Summary: It describes the contents of a job in terms of the activities or tasks performed
• Job Duties and Responsibilities: It is the heart of job description. It describes the duties performed
alongwith frequency of each major duty. Responsibilities concerning custody of money, supervision and
training of staff, etc. are also described in this part.
• Working Conditions: The physical environment of the job is described in terms of heat, light, noise level,
dust and fumes, etc. Nature of risk (hazards) and their possibility of occurrence are also given.
• Social Environment: Size of work group and inter-personal interactions required to perform the job are
given. Training and development facilities may also be mentioned
• Machines, Tools and Equipment: The names of major machines, equipments and materials used in the job
are described.
• Supervision: The extent of supervision given or received is stated in terms of number of persons to be
supervised along with their job titles. Designations of immediate superiors and subordinates may also be
given.
• Relation to Other Jobs: The jobs immediately below and above are mentioned. It provides an idea of vertical
work flow and channels of promotion.
Example of Job Description document
 Guidelines for Preparing Job Descriptions
• Give a clear, concise and readily understandable picture of the whole job.
• Describe in sufficient detail each of the duties and responsibilities.
• Emphasise accuracy, brevity and simplicity rather than an elegant style.
• Use active verbs, e.g., type letters, sort out mail, distribute mail, train
workers, etc. before each statement.
• Avoid statements of opinion.
• Examples of work performed may be quoted.
• Indicate the extent of supervision received, and given.
• Ensure that a new employee can understand the job by reading the job
description.
Job Specification
• Job specifications is a statement of minimum acceptable qualities required in a job
incumbent for the effective performance of the job.
Basic contents of a job specification
• Personal characteristics such as education, job experience, age, gender, and extra co-
curricular activities.
• Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise,
and hand and foot coordination, (for specific positions only).
• Mental characteristics such as general intelligence, memory, judgment, foresight, ability
to concentrate, etc.
• Social and psychological characteristics such as emotional ability, flexibility, manners,
drive, conversational ability, interpersonal ability, attitude, values, creativity etc.
• Various contents of a job specification can be prescribed in three terms:
1. essential qualities which a person must possess;
2. desirable qualities which a person may possess; and
3. contra-indicators which are likely to become a handicap to successful job performance
Example of Job Specification
Job evaluation
• It is a process of determining the relative worth of a job. It is a
process which is helpful even for framing compensation plans by the
personnel manager.
• According to Kimball and Kimball, “Job evaluation represents an effort
to determine the relative value of every job in a plant and to
determine what the fair basic wage for such a job should be.”
Job Design
• Job analysis helps in developing appropriate design of job to improve
efficiency and satisfaction.
• It is a deliberate and systematic attempt to structure the technical
and social aspects of work so as to improve technical efficiency and
job satisfaction.
• The main objective of job design is to integrate the needs of the
individual and the requirements of the organisation. Needs of
employees include job satisfaction in terms of interest, challenge &
achievement. Whereas organisational requirements refer to high
productivity, technical efficiency and quality of work.
Job Design is affected by three categories of
factors
• Organizational Factors
• Characteristic of task
• Workflow
• Ergonomics
• Work Practices
• Environmental Factors
• Employee Abilities & Availability
• Social And Cultural Expectations
• Behavioral Factors
• Feedback
• Autonomy
• Use of Abilities
• Variety
Approaches to Job Design
1. Classical Approach: Also known as Engineering approach developed by
F.W. Taylor. The principles of scientific management formed the basis for
designing jobs under this approach. These principles focus on planning,
standardising and improving human effort at the operative level in order to
maximise productivity. Scientific management offers the following principles
for job design:
(i) Task Fragmentation
(ii) Optimisation of Technology.
(iii) Standardisation
(iv) Specialisation
(v) Training
(vi) Individual Responsibility
vii) Economic Incentive
 Approaches to Job Design
2. Behavioural Approach: The findings of Elton Mayo, Frederick Herzberg and other
human relations experts led to search for alternative ways of designing jobs so as to
avoid the dysfunctional consequences of standardisation and simplification.
• Job redesign, work structuring, job enrichment, participative system and other similar
strategies were developed to improve the quality of worklife. The aim of all these
attempts is to design jobs which will not only ensure technical efficiency but will
satisfy social and psychological needs of workers.

Fig: Job Characteristics Model

METHODS OF JOB DESIGN

Job Job
Rotation Enlargement

Job
Design

Job Job
Simplification Enrichment
Job Rotation
• Job rotation implies systematic movement of employees from one job
to the other. Job remains unchanged but employees performing them
shift from one job to the other.
• With job rotation, an employee is given an opportunity to perform
different jobs, which enriches his skills, experience and ability to
perform different jobs.
• It is the process of preparing employees at a lower level to replace
someone at the next higher level.
Job Simplification
• In the job simplification technique, the job is simplified or specialized.
A given job is divided into small sub-parts and each part is assigned to
one individual employee. Job simplification is introduced when job
designers feel that the jobs are not specialized enough.
Job Enlargement
• Job enlargement means expanding the scope of the job. Many tasks
and duties are aggregated and assigned to a single job.
• The widened and more complex job is expected to satisfy the higher
order needs of employee.
• It is opposite to job simplification. Job enlargement is an extension of
Job rotation, exposing the people to several jobs without changing
the job duties to be performed.
Job Enrichment
• Job enrichment means making the job rich in its contents so that an
employee will get more satisfaction while performing that job.
• The central focus of job enrichment is giving people more control
over their work (lack of control is a key cause of stress, and therefore
of unhappiness.)
• Where possible, allow them to take on tasks that are typically done
by supervisors. This means that they have more influence over
planning, executing, and evaluating the jobs they do.
• In enriched jobs, people complete activities with increased freedom,
independence, and responsibility
Job Enlargement Vs Job Enrichment
Trends in Job Redesign
• Self Managed Teams: In order to make Jobs more meaningful to workers, many
companies are using groups or teams of employees instead of individuals for jobs.
• Special Purpose Team
• Quality Circle
• Production Cell
• Self-directed Work Team
• Flexible Working Schedule or Flexitime: A flextime plan gives employees some
freedom to choose which hours to work, as long as they work the required number.
• Job Sharing: In this system, two employees, usually each a part-time, share a single
job.
• Virtual Offices: Companies are now allowing employees to work at alternative
telecommunications equipments.
• Compressed Work Week: It is an arrangement that permits employees to fulfil their
work obligation in fewer days than the typical five day work week.
Recruitment & Selection
WHAT IS RECRUITING?
• Recruitment is defined as a process to discover the sources of
manpower to meet the requirements of the staffing schedule and to
employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient workforce.
Features of recruitment
• Recruitment is a process or a series of activities rather than a single act or
event.
• Recruitment is a linking activity as it brings together those with jobs
(employer) and those seeking jobs (prospective employees).
• Recruitment is a positive function as it seeks to develop a pool of eligible
persons from which most suitable ones can be selected.
• The basic purpose of recruitment is to locate the sources of people
required to meet job requirements and attracting such people to offer
themselves for employment in the organisation.
• Recruitment is a pervasive function as all organisations engage in recruiting
activity. But the volume and nature of recruitment varies with the size,
nature and environment of the particular organisation.
• Recruitment is a complex job because too many factors affect it.
Process of Recruitment
• Recruitment process generally begins when the human resource department
receives requisitions for recruitment from any department of the company.
• Locating and developing the sources of required number and type of employees.
• Identifying the prospective employees with required characteristics.
• Communicating the information about the organisation, the job and the terms and
conditions of service.
• Encouraging the identified candidates to apply for jobs in the organisation.
• Evaluating the effectiveness of recruitment process.
• Recruitment process consists of five elements
• a recruitment policy
• a recruitment organisation
• developing sources of recruitment
• a method of assessing the recruitment programme
Recruitment Process
Sources of Recruitment
Internal sources: If the job is filled up out of the present employees of the company it is said to be
the internal source of the company.
• The internal sources of recruitment are- Promotions, Transfers, Internal notification
(advertisement), Retirements, Recalls, Formal Employees.
Advantages of internal recruitment
• It increases the morale among the staff members of the company.
• Training and recruitment expenses are reduced to some extent.
• Internal promotion helps the staff members to derive job satisfaction.
• It ensures the continuity of job to the staff members and stability of the organisation.
Disadvantages of internal recruitment
• When the higher post is filled internally the company will not be able to get fresh and original
ideas.
• The outsiders do not get the opportunity to showcase their talent.
• Employees may get promoted inspite of not being the deserving candidate.
External sources
When the vacancy in an organisation gets filled up from the suitable candidates available outside the
organisation.
Some external sources of recruitment are:
• Advertisements
• Recommendations
• Personnel consultant
• Educational institutions
• Employment exchange
Advantages of external recruitment
• New outlook
• Get to choose from large number of applicants
• Candidates have wider range of experience
Disadvantages of external recruitment
• Expensive
• Lack of cooperation from the existing staff members
• Time consuming
 Techniques of recruitment
• Recruitment methods or techniques are the means by which an organisation
establishes contact with potential candidates, provides them necessary information
and encourage them to apply for job. These methods are different from the sources
of recruitment. Sources are the locations where candidates are available whereas
methods are ways of establishing link with the prospective employees.
Strategic Decisions in Recruitment
Selection
• The selection process can be defined as the process of selection and
shortlisting of the right candidates with the necessary qualifications
and skill set to fill the vacancies in an organisation.
Steps in Selection Process
• Application Form: Application form is a traditional and widely used device for
collecting information from candidates.
• Initial Screening: First of all, initial screening is done to weed out totally
undesirably unqualified candidates.
• Selection Test: A test is a sample of some aspect of an individual's attitudes,
behaviour and performance. It also provides a systematic basis for comparing the
behaviour, performance and attitudes of two more persons.
• Employment Interview: An interview is a conversation between two persons. In
selection, it involves a personal, observational and face-to-face appraisal of
candidates for employment.
• Reference Checks: Referred persons are requested to provide their frank opinion
about the candidate without incurring any liability.
• Final Approval: The candidates short listed by the department are finally
approved by the executives of the concerned departments/units.
Selection Testing
• Tests provide a systematic procedure for sampling human behaviour.
• Tests can be employed in decision concerning placement, promotion,
transfer, counselling and training of employees.
• Tests are based on the assumption that no two individuals are equal
in terms of intelligence, attitudes, personality and other traits.
Types of Tests
Types of Tests
1. Aptitude or Potential Ability Tests: These tests measure the latent ability or
potential of a candidate to learn a new job or skill. Peculiarities or defects in a
person's sensory or intellectual capacity can be detected through these tests.
(a) Mental or Intelligence Tests: These tests measure the overall intellectual capacity of a
person. Eg- Testing ability of vocabulary, math, and general knowledge
(b) Mechanical Aptitude Tests: These tests measure a person's capacity to learn a particular
type of mechanical work. Eg- tool knowledge, ability to understand mechanical drawings.
(c) Psycho-motor or Skill Tests: These tests measure a person's motor & muscle movement. Eg-
Assesses hand-eye coordination and dexterity tasks like placing and turning blocks quickly.
2. Achievement or Proficiency Tests: These tests measure what a person can do.
These determine the skill or knowledge already acquired through training and
on the job experience. These tests are of two types:
(a) Job Knowledge Tests: Also known as trade tests, these are used to judge proficiency in
typing, shorthand and in operating calculating, adding machines.
(b) Work Sample Tests: In these tests, a candidate is given a piece of work to judge how
efficiently he does it.
Types of Tests
3. Personality Test: To assess how well an individual might fit the company culture.
These probe deeply to discover clues to an individual's value system, emotional
reactions and maturity, and his characteristic mood. These are of three types:
(a) Objective Tests: These tests measure neurotic tendencies, self-sufficiency, dominance-
submission and self-confidence. Eg-measuring the presence and severity of depressive
symptoms
(b) Projective Tests: In these tests, a candidate is asked to project his own interpretation on to
certain stimuli like ambiguous pictures, figures revealing underlying thoughts and unconscious
motivations.
(c) Situation Tests: These tests measure a candidate's reaction when placed in a peculiar
situation, his ability to undergo stress and his demonstration of ingenuity under pressure. Eg-
Simulates a customer service call and directly assesses the candidate's skills.
4. Interest Tests: These tests are inventories of a candidate's likes and dislikes in
relation to work. These are used to discover a person's areas of interest and to
identify the kind of work that will satisfy him. Interest tests don't predict success in
a particular role, but they highlight areas where an individual might find
satisfaction, motivation, and long-term engagement.
Developing a Test Programme
(i) Deciding the Objectives: First of all, the objectives of the testing program are
spelled out.
(ii) Analysing Jobs: Jobs are analysed to identify the characteristics considered
necessary for job success.
(iii) Choosing Tests: Appropriate tests are chosen to measure the identified
characteristics. Tests may be chosen keeping in view the reliability, validity, ease of
administration.
(iv) Administering the Tests: The chosen tests are applied on the desired group of
persons to measure the predetermined traits.
(v) Establishing Criteria of Job Success: Success criteria may be laid down in terms
of quality and quantity of output, attendance record, rate of accidents, speed of
promotion, professional achievements, etc.
(vi) Analysing Results: The test scores are carefully analysed in the light of success
criteria.
Precautions in using test
• Validity: Only valid tests should be used. Validity means the degree to which a
test measures what it is designed to measure.
• Reliability: Test reliability is the consistency of scores obtained by the same
person when re-tested again and again.
• Standardisation: A test must be standardised so that test scores become
comparable. Test should in other words, be administered under standard
conditions to a representative sample of persons.
• Weightage: Each test should be assigned a weightage in the selection process to
reflect its importance.
• Competent Persons: Tests should be designed, administered, interpreted and
assessed only by trained and competent persons.
• Tailor-made: Each organisation is unique in terms of its needs and circumstances.
Therefore, tests should be validated for the given organisation before use.
Selection Interview
• An interview is a procedure designed to obtain information from a
person through oral responses to oral inquiries.
• An interview is the way of face to face conversation between the
interviewer and the interviewee, where the interviewer seeks replies
from the interviewee for choosing a potential human resource.
Purpose of interview
• To cross-check or verify the information obtained in earlier steps i.e
application form and tests.
• To judge the candidate's qualification and characteristics so as to
decide whether or not to select him.
• To give the candidate essential facts about the job and the company.
• To establish a rapport or mutual understanding between the company
and the candidate to promote the company's goodwill
Types of interview
• Informal Interview
• Formal Interview
• Structured Interview
• Unstructured Interview
• Group Interview
• Depth Interview: It is a semi-structured approach wherein details
concerning one key area are sought. It is designed to intensively examine
the candidate's proficiency in his area of special interest.
• Stress Interview: The purpose of such interview is to find out how a
candidate behaves in stressful situation
Limitations of interview
• Personal Bias
• Halo Effect: Under this type of error, a single prominent characteristic of
the candidate affects the judgement of the interviewer on all other traits.
• Constant Error: Such error arises because the interview of previous
candidate unduly influence the interviewer in favour or against the
candidate.
• Leniency: It implies the tendency to assign high scores. The opposite of
leniency is toughness, i.e., the tendency to consistently give low scores.
• Projection: Error of projection arises when an interviewer expects his own
knowledge, skills and values in a candidate.
• Stereotyping: This error arises when the interviewer believes some
association between a particular type of personality and a particular trait,
commercial origin or cultural background.