Foundation of HRM
Foundation of HRM
FOUNDATIONS OF HUMAN
RESOURCE MANAGEMENT
FOR
DIPLOMA IN HUMAN
RESOURCE MANAGEMENT
MODULE 1
AIRADS “Where quality is nurtured”
TRAINING RESEARCH
DEVELOPMENT
The institute is approved by ministry of Science and Technology Reg no. MOST/PC/1049/07, Ministry of education Reg no
P/TC/155/2007 Ministry of health Pharmacy and Poisons Board Reg No.PPB/COL/013/07 and Kenya national Examination Council
with centre number 509113 (technical) and 50903(ECDE)
I would like to take this chance to express my sincere gratitude to all the
staffs who have been involved in developing these standard lecture notes to
be used in all our campuses.
The standard lecture notes are part of our bigger efforts to ensure total
quality management in our delivery of service. We anticipate that the
standard lecture notes will enhance the delivery of service by the
lecturers .Students who have used standard lecture notes in the past have
shown remarkable performance in the internal and national examinations
I wish to urge all the lecturers and students to make maximal use of these
lecture notes.
Yours faithfully,
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FUNDEMENTALS OF HUMAN RESOURCE MANAGEMENT
TABLE OF CONTENTS
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CHAPTER ONE
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
SPECIFIC OBJECTIVE
By the end of this topic, the trainee should be able to;
i) Explain the meaning of human resource management
ii) Describe the evolution of human resource management
iii) Explain the difference between personnel management and human resource
management
Evolution of HRM
Human resources management emerged from personnel management which in Britain
itself developed from the activities of ‘individual welfare worker of the nineteen century.
The first stage of development involved a handful of employer and philanthropist
who driven by desire to improve the condition of working people initiated various
programs for bettering physical working environment and quality of working life.
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Stage two emerged during the First World War when faced with acute labour shortage
and the urgent need to increase industrial production. government in Europe and the
USA encouraged the systematic study of employer employee relation and the human
aspect of industrial work.
The third stage was characterized by the advancement in the 1930 and 40’s of various
academic theories of management and the integration of management studies into
general ‘social science’ by 1960 specialization had developed within the personnel
function.
Inevitable therefore personnel manager were more and more and more involved with
general business management and concerned with profit maximizing activities such
as staff motivation , performance management , empowerment of workers , total
quality management etc. human resourcing had to be taken at the very top level of
management within the company.
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iii) To enhance job satisfaction and self actualization of employee by
encouraging and assisting every employer to realize his/her full
potential.
iv) To establish and maintain productive, self -respecting and internally
satisfying working relationships among all the members of the
organization.
v) To bearing about maximum individual development of member of the
organization by providing opportunities for training and advancement.
vi) To secure the integration of all the individual and group with the
organization by reconciling individual /group goals with those of an
organization.
vii) To develop and maintain a quality of work life(QWL) which makes
employment in the organization a desirable personal and social
situation.
viii) To maintain high morale and good human relations within the
organization.
ix) To help maintain ethical policies and behavior inside and outside the
organization.
x) To manage change to the mutual advantages of individual, group the
organization and the society.
xi) To recognize and satisfy initial needs and group goals by offering
appropriate monetary and non-monetary incentives.
Requirements for attaining the above objectives
i) Recruiting the right personnel possessing necessary skills and attitude.
ii) Developing clearly defined objectives and policies through common
understanding and mutual consultation.
iii) Communicating and explaining the goals to be achieved and the
contribution expected of every ember of the organization.
iv) Dividing the tasks properly with clear cut authority, responsibility and
relationship of one position with another.
v) Maintaining sound industrial and human relations so as to secure the
willing co-operation of all.
vi) Providing suitable monetary and non-monetary rewards for the
contributions of employees.
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Importance of Human Resource Management
The significance of human resource management can be discussed at four levels –
corporate, social, profession and national.
1. Significance of an enterprise
Human resource management can help an enterprise in achieving its goals more
efficiently and effectively in the following ways.
a) a) Attracting and retaining the required talent through effective
resource planning, recruitment selection, placement, and orientation
compensation and promotion policies.
b) Developing the necessary skills and right attitude among the employees
through training development.
c) Securing willing co-operation of employees through motivation.
d) Utilizing effectively the available human resource.
e) Ensuring that the enterprise will have in future a team of competent and
dedicated employees.
2. Professional significance.
a) Providing maximum opportunities for personal development of each
employee.
b) Maintaining healthy relationships between individual and different
work group
c) Allocating work properly.
3. Social significance.
a) Providing suitable employment that provides social and psychological
satisfaction to people.
b) Maintaining a balance between the jobs available and the jobseekers
interims of numbers qualification, needs and aptitudes.
c) Eliminating waste of human resource through conservation of physical
and mental health.
4 National significance
It plays a vital role in the development of a nation.
The effective exploitation and utilization of a nation’s natural physical and financial
resources.
It helps to speed up the process of economic growth which leads to higher standard of
living fuller employer
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Human Resource Management has become very significant in recent decades due
to the following factors.
1) Increase in the size and complexity of organization.
2) Rapid technological development like automation.
3) Rise of professional and knowledgeable workers.
4) Increasing proportion of women in the workforce.
5) Growth of powerful nationwide trade union.
6) Widening scope of legistalation designed to protect the interest of the working
class.
7) Rapidly change job and skills requiring long-term man-power planning.
Characteristics of Human Resource Management
Human resource of an organization is the product of their biological
inheritance with the environment.
Human resource is heterogeneous. They consist of a large number of
individual each having unique personality.
Human Resource is dynamic and behaves differently.
Human resource is the most important element in an organization the
effective utilization of all other resources depends upon the quality in
human resource.
Human resource has greatest potential to develop & grow provided right
climate is provided to them.
Human resource includes all the dynamic elements.
Functions of Human Resource Management
These functions are common to all organization through every organization may
have its own human resource management programmes . These functions of human
resource management may broadly be classified into two categories:
i) Managerial functions
ii) Operating functions.
Managerial functions
Managing people is the essence of being a manager like other managers, a human
resource manager performs the functions of planning , organizing , directing and
controlling.
i) Planning
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A plan is predetermined course of action. Planning is the process of deciding the
goals and formulating policies and programmes to achieve the goals. Planning
involves forecasting and research.
ii) Organizing
In order to implement the plans a sound organization structure is required.
Organizing is the process of allocating tasks among the members of the group,
establishing authority-responsibility relationships among them and integrating
their activities towards the common objectives.
iii) Directing
Directing is the process of motivating, activating, leading and supervising people.
Directing includes all those activities by which a manager influence the action s
of subordinates,
It involves getting others to act after all preparation has been made. Directing is
the heart of the management process because it is concerned with initiating action.
iv) Controlling
It implies checking verifying and regulation to ensure that everything occurs
in co formality with the plans adopted and the instruction issued . Such
monitoring helps to minimize the gap between desired results and actual
performance.
2. Operative functions
The operative or service functions of human resource management are the tasks
which are entrusted to the personnel department. These functions are concerned
with specific activities of procuring, developing, compensating and maintaining
an efficient work force.
a) Procurement function- It is concerned with securing and employing the
right kind and proper number of people required to accomplish the
organization objectives. It consists of the following activities.
Job analysis – It is the process of studying in decal the operation and
responsibilities involved in a job so as to identify the nature and level
of human resources required to perform the job effectively.
Human resource planning - It is the process of estimating the present and
future manpower requirement of the organization preparing inventory of present
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manpower and formulating actions programmes to bridge the gaps in man
power.
Recruitment- It is the process of searching for required personnel and
stimulation them to apply for jobs in the organization. A proper balance should be
maintained between the internal and external sources of recruitment.
Selection – It implies judging the suitability of different candidates for jobs in
the organization and choosing the most appropriate people.
Placement- It means assigning suitable jobs to the selected candidates so as to
match employee qualified with job requirement.
Induction or orientation- It involves familiarizing the new employees so that new
people feel at home and can start work confidently.
b) Development function – Human Resource development is the process of
improving the knowledge, skill, aptitude and values of employees so that they
can perform the present and future jobs more effectively. This function comprises
the following activities.
Performance and potential appraisal – It implies systematic evaluation of
employees with respect to they performance on the job and their potential for
development.
Training – It is the process by which employees learn knowledge, skills and
attitude to further organization and personal goals.
Executive development – It is the process of developing managerial talents
through appropriate programmes.
Career planning and Development- It involves planning the career of
employees and implementing career plans so as to fulfill the career aspiration .
c) Compensation function – It refers to providing equitable and fair
remuneration to employees for their contribution to the attainment of
organizational objective. It consists of the following activities.
Job evaluation – It is the process of determining the relative worth of a job.
Wage & salary administration – It implies developing and operating a suitable
wage and salary programme. Survey is conducted to determine wage and salary
structure for various jobs in the organization.
Bonus – It involves payment of bonus and other incentives.
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d) Integration function- It is the process of reconciling the goals of the
organization with those of its members. Integration involves motivation
employees through various financial and non-financial incentives, providing
job satisfaction , handling employees grievances though formal grievance
procedure, collective bargaining , workers participation in management.
d) Maintenance function- It is concerned with protecting and promoting the
physical and mental health of employees.
Scope of Human Resource Management scope of human resource management is
very wide, it consist of the following functions.
i) Setting general and specific management policy for
organization relationships and establishing and maintaining
a suitable organization for leadership and co-operation.
ii) Collective, bargaining, contract negotiation, contract
administration and grievance handling.
iii) Staffing the organization, finding, getting and holding
prescribed types and number of workers.
iv) Diving in the self-development of employees at all levels
providing opportunities for personal development and growth
as well as acquiring requisite skills and experience.
v) Developing and maintaining motivation for workers by
providing incentives.
vi) Reviewing and auditing man power management in the
organization.
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CHAPTER TWO
Structure of HRM
The structure of HRM department varies widely depending upon the nature and size of
the enterprise its management philosophy and its external environment .
They are as follow
i) Line organization
They have ranks in ascending order
Managing director
Production manager
Plant manager
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Advantages
i) It is simple in application i.e. easy to tell who is on top of the other person.
ii) It is flexible
iii)It enhances quick decision. This is due to direct chain of command.
iv) It promotes executive development. Experience will make someone perfect thus leading
to promotion.
v) It is effective in discipline because of its unity in command and unified control.
vi) Economical because of its direct chain, fewer people are employed to undertake
activities.
Disadvantages
i) Overburdening . The top person shoulders all the responsibilities.
ii) Promote instability because success and survival of enterprise depend upon few
individuals.
iii) It has autocratic control.
iv) Difficult in staffing. Executive are required to have knowledge of diverse function and its
not easy to train such.
v) Inadequate communication
vi) Inflexible due to relying on one person thus difficult in coping with changes.
Work manager
Plant supervisor
Workers
NB it is the function e.g. marketing , accounting etc that determine the flow of
authority and responsibility without reference to actual operating decision.
Merits
i) Specialization. Every one does what he/ she is best in.
ii) Easy to staff.
iii) It has simplified control , burden on top executive is reduced as expert knowledge
facilitate effective supervision.
iv) Better supervision. Supervisor become expert thus supervision is efficient.
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v) More scope for expansion. The scope of this structure is not limited to the capability of
few people but many because of specialization.
vi) High efficiency. Separation of manual and mental operation results in higher degree of
efficiency.
Demerits
i) Poor discipline. There is lack of unity of command thus effective control become
difficult.
ii) Divided responsibility. Lack of unity of command leads to no responsibility in
performance.
iii) Low morale. This is because the employee fines it difficult in satisfying several
bosses.
iv) Lack of executive development. Due to narrow specialization.
v) Delayed decision making because of several specialist involved.
Personnel manager
Plant superintendent
Workers
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iii) Staffing and development. Separation of functions facilitates selection and training of
staff.
iv) Balanced decision due to information and advice from the staff specialist.
v) Flexibility due to growth and expansion.
vi) Individual responsibility.
Disadvantages
i) Conflict between the line and staff members.
ii) Lack of coordination.
iii) There is ineffective staff
iv) Expensive due to many people undertaking almost related / specialized work that
could have been combined.
Management functions
Planning
It is the process of deciding the goal and formulation policies and program to achieve the
goals. Planning help to face successfully the change that are likely to take place in future.
Organizing
It is the process of allocating tasks among the member of the group, establishing
authorities responsibility relationship among them and integrity their activities towards
the common objectives.
Directing
It’s the process of motivating, activating, leading and supervising people. It includes all
those activities by which a manager influences the actions of subordinates it helps to
secure the willing and effective cooperation of employees for attaining organizational
goals. It also builds sound individual and human relations in the organization.
Controlling
It implies checking, verifying and regulating to ensure that everything occurs in
conformity with the plans adopted and the instruction issuied.Such monitoring helps to
minimize the gap between desired results and actual performance.
Operative functions
These functions are concerned with specific activities of procuring, developing,
compensating and maintaining an efficient work force.
1.) Procurement function
It is concerned with securing and employing the right kind and proper number of people
required accomplishing the organizational objectives. It consists of the following
activities
a) Job analysis
It is a detailed and systematic study of information relating to operation and
responsibility of a specific job.
b) Human resource planning
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It is the process by which management determines how an organization should
move from its current manpower position to its desired manpower position.
c) Recruitment
It is a process of searching for prospective employees and stimulating and encouraging
them to apply for jobs in an organization.
d) Placement
It is the process of assigning a specific job to each one of the selected candidates.
e) Selection
It is the process of matching the qualifications of applicants with the job
requirements.
Induction or orientation
This is a process of familiarizing employees with the job and the organization.
2) Development function
It is the process of improving the knowledge, skills, aptitudes and values of employees so
that they can perform the present future jobs more effectively it consists of the following
activities
a) Job evaluation-determining relative worth of a job
b) Wage and salary administration
c) Bonus
4) Integration function
It is the process of reconciling the goals of the organization with those of its members. It
involves motivating employees, providing job satisfaction handling grievances e.t.c
5) Maintenance function
It is concerned with protecting and promoting the physical and mental health of
employees. For these purpose fringe benefits such as housing, medical aid, educational
facilities etc are provided to employees.
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Self testing quiz
1. Define human resource management and explain its nature
2. Classify and explain the functions of HRM
3. Describe the scope of human resource management
4. If you could work in any kind of organization of your choosing as a
personnel administrator what kind of organization structure would you prefer and
why?
CHAPTER THREE
PERSONNEL POLICIES
SPECIFIC OBJECTIVE
By the end of this topic, the trainee should be able to;
i) Explain the meaning of human resource policy
ii) Discuss the importance of human resource policy
iii) Explain the areas covered by human resource policies
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iv) Sense of security – Written policies provide advance information and predictable
decision on personnel matters. Employees know what action to expect in circumstances
covered by the policies. Policies set patterns behavior and permit employees to work
more confidentially.
v) Delegation of authority – Personnel policies are guide to decision on
problems that recur frequently. They help a manager to delegate authority.
vi) Orientation and training - Written personnel policies can be used as guides
foe orientation and training of new employees.
vii) Teamwork and loyalty- a well prepared set of personnel policies enable
employees to see the overall picture and how their action relates to
organization’s goal.
viii) Control – Personnel policies serve as standard or yardstick for evaluation
effectiveness of personnel management. Policies facilitate management by
exception.
ix) Prompt Decision making – Carefully defined personnel policies serve
as guide for making decision on routine and repetitive issues.
Types of personnel policies
1. Organized policies – These polices are established formally and deliberately by
top management. Senior executive initiate such policies to guide their
subordinates
2. Appeal policies- these are policies are formulated on requests of subordinates
who want to know how to handle some situations.
3. Imposed policies- Organization accept these policies due to pressure from
external agencies e.g. Government, trade association and trade union.
4. General policies- Do not related to specific issues rather they represent the
basic philosophy and priorities of top management e.g. to encourage workers to
participate.
5. Specific policies - Are related to specific issues like staffing compensation,
collective bargaining.
6. Written /Implicit policies- Are interred from the behavior of manager’s e.g. in
absence of anything in writing
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1) Identifying themed – Policies are required in various areas of personnel
management such as hiring training, compensation, industrial relation etc need for a new
policy or revision of an existing policy may be voiced by the company staff or trade
union.
2) Gathering information- Once the need has been accepted the next is too collect
necessary facts for its formulation a committee or a specialist may be assigned the task
of collecting the required information. It is necessary to monitor and predict thoroughly
the internal and external environment of the firm.
3) Examining policy alternative –On the basis of data collection, alternatives are
appraised in terms of their contribution to organizational objectives. It is necessary to
secure active participation of those who are to use and live with the policies. The chosen
policy is then put in writing in appropriate form.
4) Getting approval- The personnel department will send the policy draft at the right
time to top mgt for its approval. Top management has the final authority to decide
whether a policy adequately represent the organization objectives.
5) Communicating the policy – The approval policy need to be communicated
throughout the organization an education programme may be arranged to teach
people how to apply the enunciated policy.
6. Evaluating policy – From time to time the policy should be evaluated in terms of
experience of those who use it. Environmental changes should also be considered. Any
serious difficulty with a policy along with suggestion should be reported to the top
management.
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It should be in writing as far as possible to prevent it from being distorted
or tampered with by someone who has an ill motive .
The policy should be reasonable established and long lasting. Changes in
the policy should be made only when it is essential and after a long
duration.
It should be flexible so as to take care of motivational difference and
situational realistic therefore the policy should be stated in clear terms,
revealed and revised periodically.
It should give due regard o consider the involved parties such as
employees, employers and general public.
The policy should be in line with the company’s objectives the labor law
and the public policy. Any policy that contradicts the labour laws will be
considered as null and void.
The policy should be formulated by active participation of the top
executive, the workers , the supervisors and the trade unionist for it to be
considered and all inclusive policy.
A good policy should be based on careful analysis or facts as well as
sound judgment it is important to a vow penal interest and be guided by
the organization interest.
The policy should be fair and equitable for both external and internal
groups. It should recognize the individual difference and respect the
human dignity.
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CHAPTER FOUR
HUMAN RESOURCE RECORD
SPECIFIC OBJECTIVE
By the end of this topic, the trainee should be able to;
i) Explain the meaning of human resource records in an organization
ii) Discuss the importance of human resource records
iii) Describe types of human resource records
iv) Discuss the computerized human resource records in an organization
Human resource records are maintained in order to serve as the following purposes:
To provide evidence on the performance of human resource department in the
organization since it contain information on how employees are appraised. The
rate of labour turnover and how effective the man power planning.
To supply information that might be instrumental when making personnel
decision i.e. The personnel records acts as a basis upon which the employee’s
promotion can be carried out employee improvement can be analyzed.
To provide basis on which effective evaluation of human resource policy and
programme can be deducted.
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To meet the statutory obligation under the various labour law. These records can
be produced in terms of industrial dispute or when required by the law in order to
iron out an issue dispute.
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xi. Scanning and replacement tables.
Work to do
i) Discuss on the emerging trend and issues in HR records management.
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CHAPTER FIVE
JOB ANALYSIS
SPECIFIC OBJECTIVE
By the end of this topic, the trainee should be able to;
i) Explain the meaning of job analysis
ii) Explain the importance of job analysis
iii) Describe the process of job analysis
Job analysis is a formal and scenic study undertaken to find out the detected contents
of a job and the human qualities required to perform is successfully.
Terminologies associated with Job analysis.
This refers to the common terms that one is most like to come across when conduction
job analysis they include.
i) Job- It is a group of position involving the same duties responsibilities,
knowledge and skills each has a definite title and it is different from one
another.
ii) Position – It implies a collection of tasks and duties regularly assign to one
person.
iii) Occupation – an occupation implies groups of association which are
similar nod contain similar characteristics.
iv) Duty- It refers to a related sequence of task that makes up a particular
position.
v) Tasks – It refers to a distinct work of activity that has an indefinable begin
and indefinable end.
vi) Job family- It implies to job of similar nature e.g. clerical job.
vii) Job classification- This means grouping of job into certain category on
some specified basis. E.g. The nature of work performed.
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viii) Job evaluation- It implies the determining of the worth of a job to a
organization by comparing it with other jobs in the same organization
or in the job market.
Objectives of Job analysis
i) Job re- design- a job Benn analyzed to simplify the process and
method involved thus help to improve productivity.
ii) Work standard- In order to attain work standard the job has tube
analyzed in detailed.
iii) Miscellaneous – it provide support toothier personnel activities
such as recruitment, selection.
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9. Labour relation- Information obtained through job analysis is helpful to oath the
management and trade unions for collective bargaining.
10. Employee Counseling – Job analysis provide information about career limitation
and personal limitation such information is helpful in vocational guidance and
rehabilitation counseling.
11. Health and safety- Job analysis reveals the unhealthy and hazardous environment
in which the operation of various jobs is conducted.
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3. Interview – the analysis personally interviews the employees his supervisor and
other concerned persons and record answers to relevant questions.
4. Questionnaires- In this method reply drafted questionnaires are sent out to job
holders. After completion these are returned to supervisors.
5. Critical incidents- In this method job holders are asked to describe incidents
concerning the job on the basis of their past experience. The incidents so
collected according to the job areas they describe.
6. Log Records – In this method a diary or logbook is given teach job holder. The
jobholder dairy records the duties performed marking the time at which each tasks
started and finished.
Job description
The data is collected through job analysis provides the basis for preparing job description
and job specification. 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 authored contents of a job, it
is a factual and organized statements describing the job in terms of its title, location
duties, responsibilities , working conditions, hazards and relationship with other job.
The main object of a job description is to differentiate it from other jobs and to set out its
outer limits.
Uses of Job description
Job grading and classification.
Placement of new employees on a job.
Orientation of new employees towards basic duties and responsibilities.
Promotion and transfer.
Definition and outlining care paths.
Redressed of grievances relating to duties and responsibilities.
Work measurements and work improvement.
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3. Job duties and responsibilities. - It is the heart of job description. It
describes the duties performed along with frequency of each major duty.
4. Working condition- The physical environment of the job is described in
terms of heat, light, noise level, dust and fumes.
5. Social environment – size of work group and inter-personal interaction
required to perform the job given.
6. Machines, tools and equipment – the names of major machines,
equipments and materials used in the job are described.
7. Supervision – The extent of supervision given or received is stated in
terms of number of persons to be supervised along with their job titles.
8. Relation to other jobs – the jobs immediately below and above is
mentioned. It provides an idea of vertical workflow and channels of promotion.
Job specification
Job specification or man specification or employee’s specification is a statement of the
minimum acceptable human qualities required for the proper performance of a job. It is a
written record of the physical mental, social, psychological and behavioral characteristics
which a person should posses in order to perform the job effectively.
Job specification tells what kind of a person is required for a given job. It serves as a
guide in the recruitment and selection processes , It is also helpful entraining and
appraisal of employees.
Job analysis
Job analysis is based on the assumption that job in an organization are relatively static
and that is itch possible to identify and predict critical job related behaviors which are
necessary for effective job performance.
Job design
Job design is the process of deciding on the content of a job in terms of its duties and
responsibilities , on the methods to be used in carrying out the job , in terms of
techniques, systems and procedures and on the relationships that should exist between
the job holder and his superior, subordinates and colleagues.
Objectives of job design
i) To integrate the needs of the individual and the requirement of the
organization.
ii) To improve the quality of work life.
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Methods of job design
1. Job rotation – It implies the shifting of an employee from job to another
without any change in the jobs.
2. Job enlargement- It is the process of increasing the scope of a job by
adding more tasks to it... The related tasks are combined. It reduces
monotony and boredom.
3. Job enrichment- It involves designing a job in such a way that it
provides the worker greater autonomy for planning and controlling his
own performance. It is based on the assumption that in order to
motivate employees, the job itself must provide opportunities for
achievement, recognition, responsibility, advancement and growth.
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7. Providing the employees control information so that he may monitor his own
performance.
8. Encourage employees to participate in deciding organization goals and policies.
9. Introducing new, difficult and creative tasks to the employees.
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Brief job summary that give a vendor a quick capsule explaining of a content of a job.
3. Job duties and responsibility.
Job description a comprehensive list of duties and responsibilities
4. Relation to other jobs.
5. Supervision
The number of persons to be supervised along with other job title and to extend of
supervision is mentioned.
6. Use of machine and tools and equipment. These are also mentioned in the job description.
7. Working condition
It must provide information about possible job hazard when performing a job e.g. risk of
getting poor eye sight, losing limb or even life etc.
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CHAPTER SIX
HUMAN RESOURCE PLANNING
SPECFIC OBJECTIVES
By the end the end of this topic, the trainee should be able to;
i) Explain the importance of human resource planning
ii) Explain the factors considered in forecasting human resource planning
iii) Describe the human resource planning process
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i. To provide a basis for management development programme.
j. To facilitate productivity bargaining.
k. To meet the needs of expansion and diversification programme.
Need and importance of Human Resource Planning
i) To carry on it s work and to achieve its objectives, every
organization requires employees with adequate knowledge , experience and
attitudes. Human resource planning is helpful in selection and training activities.
ii) Human resource planning identifies gaps in existing man
power in terms of their quantity and talents
iii) Provision for replacement of personnel can be through
human resource planning that is replacing retired employees who die, resign and
become incapacitated due to injury.
iv) Human resource planning facilitates expansion and
diversification of an organization.
v) Human resource planning creates awareness about the
effective utilization of human resource throughout the organization.
vi) Human resource planning is helpful in effective utilization
of technological progress. To meet the challenge of new technology existing
employees need to be retrained and new employees may be recruited .
vii) With the help of human resource planning areas of surplus
man power can be anticipated and timely action can be taken .
viii) Human resource planning is useful in anticipating the cost
of human resource which facilitates the budgeting process. It also helps in
controlling human resource costs through effective utilization.
ix) Human resource planning facilitates career succession
planning in organization.
x) Human resource planning helps in planning for physical
facilities.
Human Resource Planning has increased due to following reasons:
1) Employment situation – Number of educated unemployed is increasing and
there is acute shortage for a variety of skills. This situation requires more effective
recruitment and retraining of people.
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2) Technological changes- wide spread and rapid changes in production
technology marketing methods and management techniques are having profound
effects on the content and converts of jobs.
3) Organizational changes-size of the firm is increasing rapidly changes in
environment requires changes in organization structure and activities which
affects requirement for human resources.
4) Demographic changes – The profile of the workforce in terms of age, sex,
education, technical skills and social background is changing.
5) Shortage of skills- Organization has become increasingly complex and requires a
wide-range of specialized skills. These skills are scarce and problems arise when
employees with these skills leave an organization.
6) Legislative controls – Law with regard to working conditions, working hours,
weaker sections. Therefore managers must look ahead and foresee man power
problems with the help of systematic human resource planning.
Process of Human Resource Planning (Accessing Human Resource Requirements)
The major stages involved in human resource planning are given below.
1. Analyzing organizational plans
The objectives and strategic plans of the company are analyzed organization
structure and job design should be made clear and changes in the organization
structure should be examined so as to anticipate its manpower requirement. A
company’s plans are based on economic forecast, company’s sales and expansion
forecast and the labour market forecast.
2. Forecasting demand for human Resource (Manpower forecasting)
On the basis of corporate and functional plans and future activity levels, the future
needs for human resources in the organization are anticipated. The number of people
and the skills level needed in future depend on reductions and sales budgets in a
manufacturing enterprise.
3. Forecasting supply of Human Resource
Every organization has to sources of supply of human resource- internal and external.
Internally human resources can be obtained for certain posts through promotion and
transfers. Human resources flow in and out of organization due to several reasons.
Man power inventory helps in determining and evaluating the quantity and quality of
the internal human resources. It reveals what exist in stock of man power and what
can be expected in future.
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4. Estimating manpower gaps
Net human resource requirement or manpower gaps can be identified by comparing
demand forecasts and supply forecasts. Deficits suggest the number of persons to be
recruited similarly gaps may occur in terms of knowledge, skills and aptitudes.
5. Action planning
Once the manpower gaps are defied, plans are prepared to bridge these gaps. Plans
to meet the surplus man power descries in brief the tasks, duties and responsibilities
which need to be charged foe effective job performance.
Self test quiz
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CHAPTER 7
RECRUITMENT
SPECIFIC OBJECTIVE
By the end of this topic, the trainee should be able to;
i) Explain the meaning of recruitment
ii) Describe the process of recruitment in an organization
iii) Discuss the methods of recruitment
iv) Identify source of candidates for recruitment
Meaning of recruitment
According to Flippo’’ recruitment is the process of searching for prospective employee
and stimulating and encouraging them to apply for job in an organization’’.
Yoder -define it as ‘’ a process to discover the sources of manpower to meet the
requirement of the staffing schedule and to employ effective measure for attracting
that manpower in adequate number to facilitate effective selection of an efficient
working force.
Measures of recruitment
i. It’s a process or a series of activities rather than a single act or event.
ii. It is a linking activity as it brings together employee and prospective employees.
iii. Recruitment is an important function as it make it possible to acquire both the
quantity and quality of persons necessary for the continued functioning of the
organization.
iv. It is a pervasive function as all organization engages in recruiting activity.
v. It’s a two way process. It takes a recruiter and recruitee.
vi. It is a complex job because too many factors affect it e.g. image of the
organization, nature of job offered and organizational policies.
Process of recruitment
The recruitment process consists of the following steps;
1. It begins when the personnel department receives requisition or recruitment from any
department of the company. The personnel requisition contain details about the
position to be filed , number of recruitees , the duties to be performed , qualification ,
terms and condition of employment etc.
2. Locating and developing the source of required number and type of employees.
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3. Identifying the prospective employee with required characteristics.
4. Communicating the information about the organization, the job and the terms and
condition of service.
5. Encouraging the identified candidate to apply for jobs in the organization.
6. Evaluating the effective of recruitment process.
Methods of recruitment
1. Direct method
Under this method, employee contract, manned exhibit and waiting list are used.
Representative of the organization are sent to educational training institution.
The travelling recruiters exchange information with students and short list candidates for
further screening.
2. Indirect method
Advertisement in newspaper, journals, radio and TV are used to publicize vacancies. This
method is appropriate when the organization wants to reach out a large target group
scattered geographically.
External sources
External sources of recruitment lie outside the organization. These are as follow
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(a) Recruiting agencies.
Private consultancy firms e.g.PriceWaterhouse, A.F. Ferguson Associate’s e.t.c. Perform
recruiting function on behalf of clients companies by charging fee. They are suitable for
recruitment of executive and specialist.
(b) Recommendation.
Office bearers of trade unions are often aware of the suitability of candidates and will
recommend them to the management.
(c) Labour contractors.
Manual workers may be recruited through contractors who maintain close links with the
source of such workers.
(d) Gate recruitment.
It is suitable for recruiting unskilled workers who may be recruited at the factory gates.
(e) Educational and training institutions. Various institute e.g. engineering colleges, medical
colleges and universities are a good source for recruiting well qualified executives.
(f) Press advertisement. Advertisement in newspaper and journals is a widely used source
of recruitment. The advantage of this method is that it can cover millions of persons
throughout the country.
Disadvantages
i) Expensive and time consuming because detailed screening is necessary as very little
is known about the candidate.
ii) Motivation and loyalty of existing staff are affected
iii) Orientation and training is necessary.
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CHAPTER EIGHT
SELECTION
SPECIFIC OBJECTIVES
By the end of this topic, the trainee should be able to;
i) Explain the meaning of selection
ii) Describe the employee selection process
Meaning
It is a process of matching the qualification of applicants with the job requirement.
A scientific selection and placement of personal built up a stable work force and help in
reducing absenteeism and labour turnover.
2. Application blank
Application form is widely used device for collecting information from candidates.
Candidates are asked to write details about their age, marital status, education, work
experience etc.
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vii. Family background
viii. Miscellaneous extra curriculum activities , hobbies , games and sports , membership of
professional bodies etc. it provide factual information required for evaluating the
candidates.
3. Selection test
A test is a sample of some aspect of an individual attitude, behavior and performance.
Test help to reduce bias in selection by serving as a supplement screening device. It also
reveals qualification which remains covered in application form and interview.
4. Employment interview
In selection interview involves a personal, observations and face to face appraisal of
candidates for employment. The information collected through application and test can
be cross checked in the interview.
Selection interview serves three purposes namely;
i) Obtaining background information, education, training work history and interest of
the candidate.
ii) Giving information the candidates about the company specific job and personnel
policies.
iii) Establishing friendly relationship between the employer and the candidate so as to
motivate the successful applicant to work for the organization.
5. Medical examination.
Successful candidates are sent for a physical examination either to the company
physician or a medical officer approved for the purpose.
This examination serves the following;
i. It determines the fitness of a candidate to perform a certain job. Unfit candidate are
rejected.
ii. It reveals existing disabilities and provides a record of employee’s health at the time of
selection. This will help in setting company liability under workmen compensation act
for claim of an injury.
iii. It prevents the employment of people suffering from contagious disease e.g. TB etc.
iv. It identifies suitable candidates who require specific c job due to physical handicaps and
allergies.
6. Reference checks
The applicant is required to submit two names of his/ her referee. These may be
his previous employer , head of educational institution or public figure. Those
referees are requested to provide their frank opinion about the candidate without
incurring any liability. The opinion of referees can be useful in judging the future
behavior and performance of a candidate.
Final approval
In most organization, selection process is done by HRM department and the decision of
this department is recommended. It is finally approved by the executive of the concerned
department.
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Employment is offered in form of appointment letter specifying the post, rank and salary
grade, date by which the candidate should join and other terms and condition in brief.
CHAPTER NINE
PLACEMENT AND INDUCTION
SPECIFIC OBJECTIVE
By the end of this topic, the trainee should be able to;
i) Explain the meaning of placement and induction
ii) Discuss the importance of placement in an organization
iii) Explain the meaning of induction in an organization
iv) Discuss the methods of induction
Introduction
Selection is followed by placement. An employee should be placed on a suitable job to
avoid dissatisfaction and frustration. After placing a selected candidate on proper it job is
necessary to make them familiar with the job, the company and other employee so that
they feel at home and can concentrate on their work.
Placement
It is the process of assigning a specific job to each one of the selected candidate. It
involves assigning a specific rank and responsibility to an individual.
In other words of Pigous and Myes, placement is the determination of the job to which
an accepted candidate is to be assigned and his assignment to that job.
Importance of placement
i. It helps to reduce employee turnover and absenteeism.
ii.Reduces accident rates in industrial set up.
iii.
Proper placement improves employee morale.
iv.It helps in promoting industrial discipline which result in job satisfaction thus high
productivity.
v. It helps employees in developing a positive attitude which is vital in introducing changes
in work organization.
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Induction
Is a process of familiarizing employee with the job and the organization. This process
help in overcoming fear, anxiety, shyness, nervousness and feeling of insecurity.
Objectives of induction
i. To build up new employee confidence in the organization and in himself.
ii. To develop among newcomers a sense of belonging and loyalty to the organization.
iii. To develop a cordial relationship between the newcomer and the old employee and
their supervisors.
iv. To ensure that false impression negative attitude toward the organization or the job is
not formed.
v. To give necessary information e.g. location of toilets cafeteria and locker rooms ,
rest periods and the leave rules etc to new comers
A range of methods exists which can contribute to effective Induction. The methods available
include:
formal input sessions
intranet information and access
computer-based CDs
text-based self-study material
projects
Planned work exposure.
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