HRM

HRM -DEFINITION
-DEFINITION

 HRM can be defined as a

process of procuring,
developing and maintaining
competent human resources in
the organisation so that the
goals of the organisation are
achieved in an effective an
efficient manner.
HRM is an art of
managing people at
work in such a
manner that give their
best to the
organisation for
 ROLE OF A HR
Manager
Functions of HRM
 HRM
HRM Functions
Functions

Managerial function

Operative function
 Managerial
Managerial function
function

 Planning
 Organizing
 Staffing
 Directing/leading
 Controlling
 Operative
Operative function
function

 Procurement
 Development
 Compensation
 Integration
 maintenance
STAFFING
Human
Human Resource
Resource Management
Management Process
Process
 DEFINITIONS
DEFINITIONS

 Staffing is the process by which an organization creates a pool of

applicants and makes a choice from that pool to provide the right
person at the right place at the right time to increase the
organizational effectiveness
 Process of acquiring, deploying, and retaining a workforce of
sufficient quantity and quality to create positive impacts on the
organization’s effectiveness”
 Under-Staffing: Loses Business + Specialization

 Over-Staffing: Wasteful, Expensive & even expensive to eliminate

excess staff
MANPOWER PLANNING
 MANPOWER
MANPOWER PLANNING
PLANNING
 The process by which managers ensure that they have the right
number and kinds of people in the right places, and at the right
times, who are capable of effectively and efficiently
performing their tasks.
 Helps avoid sudden talent shortages and surpluses.
Steps in HR planning:
• Assessing current human resources
• Assessing future needs for human resources
 HRP
HRP
 process by which an organisation ensures that it
has the right number & kind of people at the right
place and at the right time, capable of effectively
and efficiently completing those tasks that help the
organisation achieve its overall objectives..
 The process of HRP involves various steps they can be explained
with the help of the following diagram.
1. Personnel demand forecast :-
This is the very first step in HRP process. Here the HRP
department finds out department wise requirements of people for
the company. The requirement consists of number of people
required as well as qualification they must possess.
 2. Personnel supply forecast :-
In this step, HR department finds out how many people are actually
available in the departments of the company. The supply
involves/includes number of people along with their qualification.
 3. Comparison:-
Based on the information collected in the 1st and 2nd step, the HR
department makes a comparison and finds out the difference. Two
possibilities arise from this comparison
No difference :-It is possible that personnel requirement = personnel
supplied. In this case there is no difference. Hence no change is required.
Yes, there is a difference :-There may be difference between supply and
requirement. The difference may be Personnel surplus & Personnel
shortage
 4. Personnel surplus :-
When the supply of personnel is more than the
requirement, we have personnel surplus. We
require 100 people, but have 125 people. That is we
have a surplus of 25 people. Since extra employees
increase expenditure of company the company
must try to remove excess staff by following
methods.
 5. Personnel shortage :-
When supply is less than the requirement, we have
personnel shortage. We require 100 people; we
have only 75 i.e. we are short of 25 people. In such
case the HR department can adopt methods like
Overtime, Recruitment, Sub-contracting to obtain
new employee.
Steps in Staffing Process :
1) Manpower requirements-
It involves forecasting and determining the future
manpower needs of the concern.
2) Recruitment-
The concern invites and solicits applications according to
the invitations made to the desirable candidates.
3) Selection-
Screening step in which the applications are screened out
and suitable candidates are appointed as per the requirements.
4) Orientation and Placement-
The appointed candidates are made familiar to the work
units and work environment through the orientation.
Placement takes place by putting right man on the right
job.
Steps in Staffing Process (continued):
5) Training and Development-
The workers are developed by providing them extra
benefits of in-depth knowledge of their functional areas.
Development
-Includes giving them key and important jobs as a test
or examination in order to analyze their performances.
6) Remuneration-
Compensation provided monetarily to the employees
for their work performances.
Given according to the nature of job- skilled or
unskilled, physical or mental, etc.
 Job Analysis
• An assessment that defines a job and the behaviors necessary to
perform the job
– Knowledge, skills, and abilities (KSAs)
• Requires conducting interviews, engaging in direct observation, and
collecting the self-reports of employees and their managers.
 Job Description
• A written statement of what the job holder does, how it is done, and
why it is done.
 Job Specification
• A written statement of the minimum qualifications that a person must
possess to perform a given job successfully.
RECRUITMENT
 Recruitment
Recruitment and
and Decruitment
Decruitment

 Recruitment
– The process of locating, identifying, and
attracting capable applicants to an
organization
 Decruitment
– The process of reducing a surplus of
employees in the workforce of an
organization
Exhibit
Exhibit12–4
12–4 Major
MajorSources
Sourcesof
ofPotential
PotentialJob
JobCandidates
Candidates
Exhibit
Exhibit12–5
12–5 Decruitment
DecruitmentOptions
Options
SELECTION
 Selection
Selection
 Selection Process
– The process of screening job applicants to ensure
that the most appropriate candidates are hired.
 What is Selection?
– An exercise in predicting which applicants, if hired,
will be (or will not be) successful in performing
well on the criteria the organization uses to evaluate
performance.
– Selection errors:
– Reject errors for potentially successful applicants
– Accept errors for ultimately poor performers
 External
External sources
sources of
of recruitment
recruitment
Benefits
Benefits

 It encourages new opportunities for job seekers.

 Organization branding increases through external
sources.
 There will be no biasing or partiality between the
employees.
 The scope for selecting the right candidate is more,
because of the large number candidates appearing.
 The
The disadvantages
disadvantages of
of recruiting
recruiting
through
through external
external sources
sources

 This process consumes more time, as the selection

process is very lengthy.
 The cost incurred is very high when compared to
recruiting through internal sources.
 External candidates demand more remuneration
and benefits.
 To
To conclude,
conclude,

 the HR department should be flexible enough to

choose between internal or external methods of
recruitment, depending upon the requirement of
the organization.
 Selection
Selection

 The Selection is a process of picking the right

candidate with prerequisite qualifications and
capabilities to fill the jobs in the organization.
 Preliminary Interview
 This is a very general and basic interview conducted so as to eliminate the
candidates who are completely unfit to work in the organisation. This
leaves the organisation with a pool of potentially fit employees to fill their
vacancies.
 Receiving Applications
 Potential employees apply for a job by sending applications to the
organisation. The application gives the interviewers information about the
candidates like their bio-data, work experience, hobbies and interests.
 Screening Applications
 Once the applications are received, they are
screened by a special screening committee who
choose candidates from the applications to call for
an interview. Applicants may be selected on special
criteria like qualifications, work experience etc.
 Employment Tests
 Before an organisation decides a suitable job for
any individual, they have to gauge their talents and
skills. This is done through various
employment tests like intelligence tests,
aptitude tests, proficiency tests, personality tests
etc.
 Employment Interview
 The next step in the selection process is the employee interview.
Employment interviews are done to identify a candidate’s skill set and
ability to work in an organisation in detail. Purpose of an employment
interview is to find out the suitability of the candidate and to give him an
idea about the work profile and what is expected of the potential
employee. An employment interview is critical for the selection of the
right people for the right jobs.
• Checking References
• The person who gives the reference of a potential
employee is also a very important source of
information. The referee can provide info about the
person’s capabilities, experience in the previous
companies and leadership and managerial skills.
The information provided by the referee is meant
to kept confidential with the HR department.
• Medical Examination
• The medical exam is also a very important step in
the selection process. Medical exams help the
employers know if any of the potential candidates
are physically and mentally fit to perform their
duties in their jobs. A good system of medical
checkups ensures that the employee standards of
health are higher and there are fewer
cases of absenteeism, accidents and employee
turnover.
• Final Selection and Appointment Letter
• This is the final step in the selection process. After the candidate has
successfully passed all written tests, interviews and medical examination,
the employee is sent or emailed an appointment letter, confirming his
selection to the job. The appointment letter contains all the details of the
job like working hours, salary, leave allowance etc. Often, employees are
hired on a conditional basis where they are hired permanently after the
employees are satisfied with their performance.
 Placement
Placement
 Placement is the actual posting of an employee to a specific job—with rank
and responsibilities attached to it. Most organisations put new recruits on
probation for a given period of time after which their services are
confirmed. Placement, however, should be made with as little disruption to
the employee and organisation as possible. •
TRAINING & DEVELOPMENT
Training for the
present,
Educating for the
future,
Developing to
Lead.
 Employee
Employee Training
Training
What deficiencies, if any,
What are
does job holder have in
Is there a the strategic
terms of skills, knowledge,
need for goals of the
abilities, and behaviours?
training? organization?

What tasks must

be completed
What behaviours are
to achieve
necessary?
goals?
 Exhibit
Exhibit12–12
12–12 Employee
EmployeeTraining
TrainingMethods
Methods

Traditional Training Methods • Technology-Based Training

Methods
 On-the-job  CD-ROM/DVD/videotapes/
audiotapes
 Job rotation
 Videoconferencing/
 Mentoring and coaching
teleconferencing/
 Experiential exercises satellite TV
 Workbooks/manuals  E-learning
 Classroom lectures