HUMAN RESOURCE MANAGEMENT

CHAPTER 12

Topics to be covered…..

• What HRM is?

• Why HRM is important?

• Human Resource Management Cycle

• Knowledge worker concept

• Function of HRM – Staffing– Training and Development– Motivation– Miantenance

Human Resource Management

• Human Resource Management (HRM) is the process of evaluating an organization’s human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment --- with the overall aim of helping achieve organizational goals.

• HRM is concerned with the most effective and efficient use of human resource. It deals with organization’s staffing levels, motivating employees, managing employee relations and employee service.

• HRM is a strategic approach to manage people at work.

Importance of HRM ….

• Our people are our most important resource.

• Strategic Tool.

• It increase productivity.

• It enhances group learning.

• It reduce staff turnover. (Service Type Businesses e.g. Banks)

• It encourages initiatives.

• Important source of competitive advantage.

Human Resource Cycle ….

Selection Performan

ce

Ap

pra

isal

Rewards

Training and

Development

• HRM is a bridge between employee and employer.

• Give something and get something concept.

• When your organization has about 100 employees, then HRM becomes necessary.

• HRM focuses on personality dominance to work dominance.

Knowledge Worker Concept….

• An employee who have the required knowledge and skills to perform a specific task or job.

Functions of HRM

HRM

Staffing Training

& Development

Motivation Maintenan

ce

Staffing

1. Human Resource Planning (HRP)

2. Recruitment

3. Selection

1. Human Resource Planning (HRP)

• Right person for right job, in the right time, at right place.

• Current Human Resource Inventory (HRI)

• Future Needs

• Replacement Charts/Succession Planning (Planning for persons who are going to be replaced)

• Demand and Supply of Human Resource

• Job Analysis – Job Description. (Focus on Job)– Job Specification. (SKA) – Job Evaluation. (Whether you are doing rightly.)

2. Recruitment

• Locating, Identifying and Attracting capable applicants.

• It is used to hire people.

• Recruitee Future Employee

• Candidates (10) Recruitee (5) Employee (1)

• Sources of Recruitment – Internal Sources (Promotion, Employee referrals)

– External Sources (Internet, News Papers, Colleges n Universities, Recruitment Agencies etc)

• Recruitment Constraints

• De-recruitment

3. Selection

1 •Short Listing/Initial Interview

2 •Written Test

3 •Panel Interview/Employment Interview

4 •Background Checking

5 •Appointment Letter

6 •Medical Examination

Training and Development

1. Socialization/Orientation .

2. Training

3. Development

4. Career Development

1. SOCIALIZATION/ORIENTATION .

• Awareness about company and its environment.

• Organization tries to influence the new hire to adapt to and adapt the way they do things around the workplace using formal and informal processes.

• For example language, physical appearance or greet the customers.

• Socialization must be there otherwise employees will left.

Socialization Process

2. TRAINING

• It more focused on your present job.

• Training of employees takes place after orientation takes place. Training is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Training process moulds the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature.

• How to work, How to sit n stand, How to greet customers etc.

• Training may be given to new employees as well as employees with no good performance appraisal.

• Indoor training and outdoor training.

• On the job training and off the job training.

3. EMPLOYEE DEVELOPMENT • It is more focused on future positions.

• Companies often realize that investing in the growth and development of key employees helps improve the overall competence of the organization. When an employee learns skills and responsibilities, he becomes better equipped to take on higher-level work and leadership roles in the future. Mentoring programs, manager-training programs and departmental workshops are examples of employee-development activities. Employee development typically works best when human resources promotes and supports a culture that rewards employees who deliver results and learn new skills.

4. CAREER DEVELOPMENT

• Focus on employee career.

• From date of joining to Superannuation (Retirement)

• Step by step promotion in service.

• Career development programs place more emphasis on opportunities for employees to improve themselves to reach personal career goals. In a 2009 study, Hay Group Insight showed that employees felt much more engaged and committed to employers who offered chances for personal growth and development. In essence, companies that offer development opportunities place a higher emphasis on employee retention. The general belief is that if you can motivate employees to improve their knowledge and skills, the company ultimately benefits.

Motivation

1. Employee Benefits

2. Employee development program

3. Performance Reward System

1. EMPLOYEE BENEFITS

• Benefits Planning – Medical Facilities– Residence – Leaves– Transportation

• Incentives – Cash Incentives– Haj Incentives

• For efficient as well as for average performance.

• If peoples are working well motivation is there.

• If peoples are frustrated, then de-motivation is there, and this creates a big hurdle in performance.

2. EMPLOYEE DEVELOPMENT PROGRAM

• Only for above average and efficient performance.

• How employees are developed?– Special Trainings.– Further Education. – Participation in Decision Making. – Free Industry and Foreign Tours. – Promotions.

3. PERFORMANCE REWARDS SYSTEM

• Rewards are what employees receive for performing well. Sometimes these rewards come from the organisation in the form of money, recognition and promotions. Rewards can also consist of feelings from having performed well in work. It can be said that rewards are very powerful motivators of performance.

• Organisations need various types of performance from their employees. They need them to become active members of the organisation, they need them to do their job as it has been defined and they need their employees to improve their performance. In order to achieve improvements in performance different reward systems must be applied.

• As much better performance you will show, so better reward you will get.

• Financial Vs. Non- Financial Rewards

• Intrinsic Vs. Extrinsic Rewards

Maintenance 1. Performance Appraisal

2. Compensation

3. Industrial relations

4. Rewards

1. PERFORMANCE APPRAISAL

• A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics.

• Whether you are performing good or not.

• Good Performance Rewards, Incentives, Promotions

• Average or Bad Performance Training

• Appraisal Process

Appraiser

Appraisee

2. COMPENSATION

• Wages, Salary & Payrolls, Bonuses , Incentives

Benefits Mandatory

(Necessary as per law)** Salary

** Suit able working conditions and environment.

Optional (Optional as per Company’s

Management) ** Residence

** Transportation** Mobile

** Lunch Facility

3. INDUSTRIAL RELATIONS

• Labor Laws

• Social Security (PESSI)

• EOBI

• Insurance

• Health issues.

• Child Labor.

4. REWARDS

• A thing given in recognition of service, effort, or achievement.• Financial Rewards

– Piece rate– Wages– Salaries – Bonus Schemes – Profit related Pay – Fringe Benefits

• Non-Financial Rewards – Job Enrichment– Job Enlargement– Communication– Empowerment – Quality Circles – Training – Autonomous Work Groups