Notes Module 1

Bangalore University

HRAD

INTRODUCTION

Strategic Human Resource Management (SHRM) is an area that is constantly emerging and evolving as to what actually the "people" factor can do as an organization's strategic tool. Can be understood as 'the pattern of planned human resource activities intended to enable an organization to achieve its goals' (Wright and McMahan 1992). Strategic Human Resource Management (SHRM) is a concept that integrates traditional human resource management activities within a firm's overall strategic planning and implementation. SHRM is the HRM customized as per the demands of overall strategy.

Q .What is HRM (Human Resource Management) (2 marks)

All the activities of an employee from the entry into the organization till he or she leaves fall within the scope of HRM which include Human Resource Planning, job analysis and design, recruitment and selection, placement, training and development, performance appraisal, job evaluation, remuneration, motivation, communication, welfare, safety and health etc.

HRM is a management function concerned with hiring, motivating, and maintaining people in an organization

Q. What is SHRM (Strategic Human Resource Management?)

HRM integrated with Strategy

Strategic Management refers to the process of formulating, implementing and evaluating business strategies to achieve organizational objectives and it involves a team comprising of CEO and other top executives.

"Strategic Human Resource Management is the development of aligned collection of practices, programs and policies to facilitate the achievement of the organization's strategic objectives." - Jeffrey A Mello

Human resources if managed effectively add competitive advantage to the organization. So, management should try to identify people who can align their personal goals with organizational goals and should try to recruit, train and develop them. Reward System should be developed such that it motivates the employees to perform better. While the leadership and team work cannot be denied for successful accomplishment of organizational objectives, better performance can be achieved by employee empowerment wherever necessary.

Q. Describe Model of SHRM (2 marks)

1. Resource Based View for Competitive Advantage

2. Behavioral approach, where HR practices are designed to control and influence attitudes and behavior of Personnel.

3. Cybernetic System that adopts or abandons practices based on feedback on contributions to Strategy

4. Agency and Transaction cost which explains the control systems like performance evaluation and reward systems which are needed for implementation of strategy

5. Institutional/ Political factors are not driven by strategic considerations, but they influence the strategic changes and make the framework comprehensive.

6. Resource Dependence and power variable explains the power and political factors, unionization, expectations of corporate social responsibility etc.

Q. Describe Steps in Developing Human Resource Strategy (10 marks)

1)Understand Business Environment

2)HR Mission statement

3)SWOT Analysis for HR

4)Human Resources Analysis

5)Determine critical people issues

6)Develop consequences and solutions

7)Implement and evaluate the action plan

-Understand the Business Environment

Highlight the key driving forces of your business like technology, distribution, competition, markets etc.

Understand the implications of the driving forces for the people side of your business.

Figure out the fundamental people contribution to bottom line business performance.

Develop a Mission Statement for HR

That relates to the people side of the business and what the human factor should contribute to the organization.

Do not be put off by negative reactions to the words or references to idealistic statements - it is the actual process of thinking through the issues in a formal and explicit manner that is important.

Conduct a SWOT analysis of the organization

Focus on the internal strengths and weaknesses of the people side of the business.

• Consider the current skill and capability issues.

• Vigorously research the external business and market environment. High light the opportunities and threats relating to the people side of the business.

• What impact will/ might they have on business performance?

• Consider skill shortages.

• The impact of new technology on staffing levels.

From this analysis you then need to review the capability of your personnel department. Complete a SWOT analysis of the department - consider in detail the department's current areas of operation, the service levels and competences of your personnel staff.

Conduct a detailed human resources analysis

Concentrate on the organization's COPS (culture, organization, people, HR systems)

• Consider: Where you are now? Where do you want to be?

• What gaps exists between the reality of where you are now and where you want to be?

Exhaust your analysis of all the four dimensions.

Determine critical people issues

Go back to the business strategy and examine it against your SWOT Analysis.

• Identify the critical people issues namely those people issues that you must address. Those which have a key impact on the delivery of your business strategy.

• Prioritize the critical people issues. What will happen if you fail to address them?

• Remember you are trying to identify where you should be focusing your efforts and resources.

Develop consequences and solutions for each critical issue highlight the options for managerial action

generate, elaborate and create - don't go for the obvious.

This is an important step as frequently people jump for the known rather than challenge existing assumptions about the way things have been done in the past. Think about the consequences of taking various courses of action.

Consider the mix of HR systems needed to address the issues. Do you need to improve communications, training or pay? What are the implications for the business and the personnel function? Once you have worked through the process it should then be possible to translate the action plan into broad objectives. These will need to be broken down into the specialist HR Systems areas of:

• Employee training and development

• Management development

• Organization development

• Performance appraisal

• Employee reward

• Employee selection and recruitment

• Manpower planning

• Communication

Develop your action plan around the critical issues. Set targets and dates for the accomplishment of the key objectives.

Implementation and evaluation of the action plans

The ultimate purpose of developing a human resource strategy is to ensure that the objectives set are mutually supportive so that the reward and payment systems are integrated with employee training and career development plans. There is very little value or benefit in training people.,only to then frustrate them through a failure to provide ample career and development opportunities.

Q. What are the responsibilities of SHRM?(2 marks)

HR Strategy follows Business strategy.

• Attracting a quality workforce

• Human resource planning, recruitment, and selection

• Developing a quality workforce

• Employee orientation, training and development, and performance appraisal.

• Maintaining a quality workforce

Career development, work-life balance, compensation and benefits, employee retention and turnover, and labor-management relations

Q. What is the Role of HR managers in Strategy(4-5 marks)

The HR managers have keen role in the effective planning and implementation of the policies and decisions that in tune with the business changes.

They should act as strategic partners and be proactive in their role than mere reactive, passive spectators. The HR managers should understand how far their decisions contribute to business surplus incorporating human competency and performance to the organization.

Strategic HR managers need a change in their outlook from seeing themselves as relationship managers to strategic resource managers.

According to Kossek (1987, 1989), major HRM innovations occur when senior management takes the lead and adoption of innovative SHRM practices is dependent on the nature of relationship of the HR Department with the CEO and the line managers.

Legge (1978) opines on the actions of the personnel practitioner in the innovation process that adoption of an innovation by an organization depends largely on HR practitioners' credibility with information and resource providers

HR Department and HR managers in these innovative organizations play a strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of the organization. A crucial aspect concerning SHRM is the concepts of fit and flexibility.

The degree of fit determines the human resource system's integration with organization strategy. It is the role of HR Managers to ensure this fit in between Human Resource System with the Organization Strategy.

Q. What are the Barriers to SHRM ?(4-5 marks)

Barriers to successful SHRM implementation are often complex.

The main reason is a lack of growth strategy or failure to implement one. Other major barriers are summarized as follows:

• Focus on short term benefits and losing the sight of long term effects.

• High resistance due to lack of cooperation from the bottom line.

• Difficulty to quantify HR outcomes.

• Interdepartmental conflict.

• The commitment of the entire senior management team.

• Plans that integrate internal resource with external requirements.

• Limited time, money and the resources.

• The status quo approach of employees.

• Inability of HR to think strategically.

• Diverse work-force with competitive skill sets.

• Fear towards victimization in the wake of failures.

• Improper strategic assignments and leadership conflict over authority.

• Vulnerability to legislative changes.

• Resistance that comes through the legitimate labour institutions.

• Presence of an active labour union.

• Rapid structural changes.

• Economic and market pressures influenced the adoption of strategic HRM.

Q. What is HCM (Human Capital Management)?(2 marks)

HCM refers to the task of measuring the cause and effect relationship of various HR programs and policies on the bottom line of an organization.

It seeks to obtain additional productivity. As Human Capital developers-HR executives focus on the future, at times at individual level, offering opportunities to develop future abilities and prepare for change management.

Unlike HRM, HCM seeks to identify what is best for that particular company and it puts the responsibility of Human Resource Management on everyone in the business from employees to executives.

Q. What is HRP(Human Resource Planning)(2 marks)

HRP is all about managing right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives. In light of the organization's objectives, corporate and business level strategies, HRP is the process of analyzing an

organization's human resource needs and developing plans, policies, and systems to satisfy those needs According to Geisler—"Human Resource Planning is the process-including forecasting, developing and controlling—by which a firm ensures that it has the right number of people and the right kind of

Q. What are the Characteristics of Human Resource Planning (4-5 marks)

• Human resource must be incorporated keeping organizational goals in view.

• HRP is a subsystem of the total organizational planning.

• Human Resource plan must have well defined objectives.

• HRP should ensure right number of people, right kind of people at the right time doing work for which they are economically most useful.

• HRP should take into account periodical developments and extension plans of the organization.

• While planning adequate flexibility must be maintained to suit the changing needs of the organization.

• HRP includes the inventory of present manpower, supply and demand of the manpower and the possibilities of using the man power to its full capacity.

• HRP includes determination of human resource both in quantitative and qualitative terms.

• Human resource is an important asset of an organization, which is affected by its social, cultural, economic and psychological backgrounds. Therefore it should be planned and utilized carefully.

Q. Define the Need for HRP (4-5 marks)

• Human Resource audit includes capabilities, skills, and potentialities of each individual. Many a time replacement charts and succession charts are prepared to locate potential candidates for every position during the given future period. Non-availability of HR due to turnover, death, superannuation can be planned. It identifies and develops personnel to move up and assume greater responsibility.

• The concept of Human resource planning arises from the realization that organizational success depends on the success of Human Resource and instead of thinking employees as a necessary evil, should be considered as an asset for competitive advantage. Human Resource Planning must be tied to the Strategic Planning and thus it is required to translate the strategic plans to people management plans.

• HRP must respond to the structural changes in one hand and to emerging human expectations on the other hand.

• Innovating companies must focus on adequate investment in human capital with systematic planning to quality of work-life balance backed by TQM, which may in turn promotes highly creative and talented pool of personnel.

• Human Resource Planning must be backed by scientific performance appraisals and evaluations both in quantitative and qualitative terms which can identify the gaps existing' and allow corrective measures to be taken.

• HRP helps in anticipating the training and development needs for the employees from time to time.

• Ultimately HRP reduces the cost of production by providing adequate personnel and utilizes the human force effectively.

Q Give an account of HRP (HUMAN RESOURCE PLANNING)(4 -5marks)

In achieving the objectives, failure of HR planning may be a limiting factor. If the number of persons hired is less than required, production may be hampered & pace of production may be slow and employees burdened with work. If the employees are more than required, organization may incur large pay bill. So, it is necessary to plan for adequate number of persons. It also aids in planning training and development programs.

HRP plays a significant role in the following aspects.

• In estimating future Personnel Needs

• As a part of strategic planning.

• Creating highly talented personnel.

• Developing International Strategies.

• As a foundation for personnel functions.

• For increasing investments in human resource.

• To plan ahead in case of resistance to change from the workforce.

• In uniting the perspectives of line and staff managers.

Q.What are the Factors Affecting HRP (4-5 marks)

HRP is influenced by several factors.

• Type and strategy of organization

The type of organization determines the production process involved and the number of staff retained. In addition, the strategic plan of the organization defines its HR needs. Manufacturing organizations are more complex than service organizations in this context. Primarily an organization decides to be either proactive or reactive in HRP that is either it may anticipate the needs in advance and systematically plans or it may simply react when the need arises.

The strategic choices could be:

Internal growth/ Growth through mergers and acquisition Narrow/ broad Informal/ formal Reactive/ proactive Inflexible/ flexible

• Organization growth cycles and planning

The stage of an organization's growth has considerate influence on HRP.

- Small organizations which are in their infancy may not have heavy personnel planning.

-Need for planning is felt generally when the organization' enters the growth stage.

- Mature organizations are less flexible as the workforce gets stabilized and planning becomes more formal and innovative. Issues like retirement and retrenchment dominate planning.

- In the declining stage, planning is done for layoff, retrenchment, retirements etc.

• Environmental uncertainties

HR managers have to operate under highly dynamic environment influenced by political and economical changes. The HR mechanisms like recruitment, selection, training, and development policies should be formulated carefully to be able to sustain like .succession planning, layoffs, job-sharing, VRS etc. • Time horizons HR planners have to handle both short term plans of six to twelve months as well long term plans stretching from three to twenty years, depending upon the organizational environment.

• Type and quality of forecasting information

HR managers must maintain well developed job analysis information and HRIS that provide accurate and timely data. Organizations operating in a stable environment are in a better position to obtain, comprehensive, timely and accurate information because of longer planning horizons, clearer definition of strategy and objectives.

• Nature of jobs being filled

Normally job vacancies arise because of employee separations, promotions, and expansion strategies. It is relatively easier to recruit shop floor workers rather than management personnel.

• Off-loading the work / outsourcing

Several organizations outsource part of their work to outside parties either in the form of subcontracting or ancillarization, which helps them to focus on their core competencies as well as to meet production deadlines.

Q Give details about HRP process (THE HUMAN RESOURCE PLANNING PROCESS)(8-10 marks)

Steps in the HR planning process:

• Step I - Review organizational mission, objectives, and strategies.

• Step 2 - Review HR objectives and strategies.

• Step 3 - Assess current HR needs(demand Forecasting).

• Step 4 - Forecast HR needs( HR supply Forecasting)

• Step 5 - Develop and implement HR plans

• Step 6 — Evaluation and feedback of the System.

• Step 7 — Control measures appropriately whether then is surplus or shortage of Human Resource.

Step 1. Review of Organizational Mission, Objectives and Strategies

HR plans are derived from organizational objectives! Organizational Objectives are defined by top management and the role of HRP is to sub serve the overall objectives by ensuring availability and utilization of human resource.

Step 2. Review of HR Objectives and Strategies

Organizational Objectives must be translated into HR objectives. Specific HR policies should be framed in formulating the strategy regarding vacancy filling from internaU external sources, union, constraints, job enrichment, human resource development, the exten1 ,

Step 3. HR Demand Forecasting

It is the process of estimating the future requirements of manpower by function and by skill level. Demand assessment is not a problem for operating personnel, but for supervisory and managerial levels it is difficult.

Judgmental forecasts:

1. Managerial Judgment In this method, managers who are well acquainted with workload and capabilities of employees and future needs sit together, discuss and arrive at a number indicating the future demand for labour. This may involve "bottom-up" approach where managers submit their departmental proposals to top managers who arrive at the forecast or "top-down" approach where top

managers prepare organizational and departmental forecasts and let the managers review. In both the cases Departmental Heads are provided with broad guidelines, which eventually help them to arrive at the forecasting. Though neither of them is accurate, the combination of both them will yield a positive result.

2. Delphi Method

Named after the ancient Greek oracle at the city of Delphi, the Delphi technique is a method of forecasting personnel needs using surveys. It is a structured approach to get a number of experts on to comment on a specific issue. It is a group decision making system, wherein experts who can analyze internal and external factors affect'ng the business are chosen who are usually top level managers or first line supervisors. The distinguishing feature of the Delphi technique is that it does not allow face-to-face interaction among expert to avoid difference of opinion and conflicts. Intermediaries are used to summarize the various responses and report the findings back to the experts. After receiving this feedback, experts survey again. This summaries and surveys are repeated until the experts' opinions begin to agree on the forecast of the personnel needs. To make Delphi method more effective: Experts should be given enough information and they should be given an opportunity to explain how sure they are of the forecasted figures. Limitations of Delphi method: though it is the most popular method, it is a time consuming and expensive process.

Statistical Techniques:

1. Ratio-Trend Analysis

This is the quickest forecasting technique. It involves studying past ratios like the number of workers with sales in an organization and forecasting future ratios, making some allowances for Changes in the organization or its methods. Activity level forecasts are used to determine the direct human resource requirements. This method depends on the availability of past records and the environmental changes that are likely to occur in future.

2. Work—study technique

These are generally used to study work measurement. Under the workload analysis, the volume of workload in the coming years is analyzed. If the planners forecast expansion in the operations, additional operational workers may be required. If the organization decides to reduce its operations in one area, there is need to downsize workforce. These techniques are more suitable where volume of work can be easily measurable. The work study technique also takes into account the productivity pattern for present and future, internal mobility of the workers like promotions and transfers and external mobility like retirement, deaths , VRS etc.

3. Flow Model/ Markov Model

This is a simple technique which contains the following components.

• Determine the time that should be covered. The time horizon depends on the length of HR plan, which in turn is determined by strategic plan of the organization. Shorter lengths of time are more accurate.

• Establish "Categories" or "States" to which employees can be assigned. These categories should not overlap and at the same time every employee must belong to at least a possible category. Number of states should not be too large or too small.

• Count annual movements (flows) for among different states for several time horizons. These states may be either absorbing or non-absorbing. Absorbing indicates losses or gains to the company. Losses include death, disability, absences, resignations, retirements etc. Gains include hiring, transfers or movement by position level. Non-Absorbing indicates change in position levels or employment status.

• Estimate the probability of transitions from one state to another state based on past trends. Demand is a function of replacing those who make a transition. - A simple modification to Markov model called "semi — Markov" model takes into account even the tenure of the individual in the state, because with the tenure there will be increased likelihood of movement in states. Another modification, "vacancy model" predicts the probability of movements and number of vacancies.

4. Scatter Plots

Scatter Plots (also called scatter diagrams) are used to investigate the possible relationship between two variables that both relate to the same "event." A straight line of best fit, using the least squares method, is often included. Scatter plot shows the projected staff size.

A scatter plot shows graphically how two variables such as a measure of business activity and your firm's staffing levels are related. If they are, then if you can forecast the level of business activity, you should also be able to estimate your personnel requirements

The chart shows the number of units to be manufactured on the horizontal axis. Number of personnel needed on the vertical axis. If the two factors are related, then the points will tend to fall along a straight line, as they do here. If you carefully draw in a line to minimize the distances between the line and each one of the plotted points, you will be able to estimate the number of workers needed for each given units production.

Things to look for in a scatter plot:

• If the points cluster in a band running from lower left to upper right, there is a positive correlation (if x increases, y increases).

• If the points cluster in a band from upper left to lower right, there is a negative correlation (if x increases, y decreases).

• Imagine drawing a straight line or curve through the data so that it "fits" as well as possible. The more the points cluster closely around the imaginary line of best fit, the stronger the relationship that exists between the two variables.

• If it is hard to see where you would draw a line, and if the points show no significant clustering, there is probably no correlation.

Step 4. HR Supply Forecasting

Supply forecasting measures the number of people likely to be available from within and outside an organization, after making allowances for absenteeism, internal movements and promotions, • wastage and changes in hours and other conditions of work. Fewer organizations estimate HR supplies than demand. Forecasting as a Part of Human Resource Planning

Does aggregate supply meet aggregate Demand

The reasons for supply forecast are

I. Helps quantify number of people and positions expected to be available in future to help the organization realize its plans and meet its objectives.

2. Helps clarify likely staff mixes that will exist in the future

3. Assess existing staffing levels in different parts of the organization

4. Prevents shortage of people where and when they are most needed.

5. Monitors expected future compliance with legal requirements of job reservations

The supply analysis includes

• Existing Human Resources,

• Internal Sources of supply and

• External Sources of Supply.

Existing Human Resources:

Human Resource Audits:

Existing Human Resources' analysis is facilitated by HR audits which include "Skill Inventories" of non-managers and "Management Inventories" of Managers. This gives Human Resource Planners a comprehensive understanding of the capabilities in the organization's workforce. Skill Inventory: Skill Inventories consolidate information about non-managers in the organization. This information is used as input into transfer and promotion decisions. They contain information about each employee's current job. There are seven broad categories of information in each skill category.

They are: - Personal data ( age, sex, marital status), Skills ( education, job experience, training), - Special qualifications (membership in professional bodies, special achievements). - Salary and Job History—

present and past salary, dates of pay raises, various jobs held - Company data—benefit plan data, retirement information, seniority - Capacity of individual scores on psychological and other tests, health information

• Internal Supply:

Inflows and Outflows

This analysis considers the vacancies likely due to promotions, transfers etc. and the total number of moves are used to forecast the resource supply in various departments.

Current personnel level - outflows +inflows = internal supply

Sources of inflows: transfers, promotions etc.

Sources of outflows: resignations, discharges, demotions, retirements and promotions

As the resignations happen due to labour - market conditions, promotion policies within organizations, and job vacancies in the organization etc. this is not a reliable indicator of future turnover.

Turnover rate: Turnover rate is the traditional and simple method of forecasting internal supply.

Turnover rate=no. of employees leaving in one year /average no. of employees during the year *100

Special preference of individual-geographic location, type of job.

Management Inventories: It includes - Work history - Strengths & Weaknesses - Promotion potential - Career goals

It includes estimation of future losses due to retirements, ill health, death, absenteeism, layoffs, employee turnover etc. Management should calculate the rate of turnover, conduct exit interviews etc. This helps to forecast the rate of potential loss, reasons for loss and reduce loss also called Employee Wastage

Conditions of work and Absenteeism:

Working conditions include normal weekly working hours, overtime policies, length and timing of holidays, retirement policy, shift system etc.

Absenteeism is unauthorized absence from the work that is when an employee is scheduled to work, but fails to report for the duty. It is required to analyze the trends in absenteeism.

Absenteeism = no. of persons-days lost / Average no. of persons X number of working days *100

Productivity level:

Any change in productivity would affect the number of persons required per unit of output. Increase in productivity will reduce requirement while decrease would have the opposite effect.

Succession Planning

In organizational development, succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players - such as the chief executive officer (CEO) - within an organization as their terms expire

External supply:

External sources are important for the company as they bring new experience, lost personnel are needed to be replenished and expansion plans need more people than the internal supply.

Using Computers to Forecast Personnel Requirements

Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages Employers also use software programs to forecast personnel requirements. The Typical data needed include direct labor hours required to produce one unit of product (a measure of productivity), and three sales projections. Minimum, maximum, and probable, for the product line in question.

Step 5: Develop and implement HR Plans

Develop and implement HR plans Once the employee forecasting is completed, the vacancies should be filled by right employees in right time. Implementation includes converting HR plan into action. Some of these programs are:

For shortages of employees:

• Recruit new permanent employees Once the vacancies are known, recruitment efforts should be made to identify the sources and search for right candidates. Selection procedures must be professionally designed and should be valid. Special care must be taken to ensure compliance with government policies before inducting.

• Rehire retirees on part time or consultancy basis

• Retention Plans Retention plans cover actions that will help to reduce avoidable separations by employees.

These measures include revised compensation plan, unbiased performance appraisals, allocation of reasonable workloads, providing better career opportunities within. conflict management, job enrichment, and most importantly selecting the right candidate to fit for the job specifications to avoid induction crisis.

• Planning overtime for existing staff

• Outsourcing works to another company

• Hiring employees on temporary/ contract basis

• Automating/ simplifying the job processes so that fewer employees are needed. For surplus workforce:

• Downsizing (or Right sizing?) Whenever there is surplus workforce, it needs trimming. - hiring freeze offering incentives for early retirement such as VRS (Golden Shake Hand)

- Reducing no. of working hours & thus realizing it in payroll savings.

- Switch to variable pay plan

Help redundant employees find new jobs. - Laying-off Training, Retraining and Development These are required for new entrants, existing staff at all levels to gain new skills, unlearn obsolete practices and to update with emerging trends. These are essential for both individual and organizational development

Succession Planning:

Succession Planning includes training programs and series of job assignments leading to top positions. Succession plans are centered on important jobs and try to identify the key skills required for the jobs. From the risk management aspect, provisions are made in case no suitable internal candidates are available to replace the loss of any key person. It is usual for an organization to insure the key person so that funds are available if she or he dies and these funds can be used by the business to cope with the problems before a suitable replacement is found or developed. Succession Planning involves having senior executives periodically review their top executives and those in the next lower level to determine several backups for each senior position. This is important because it often takes years of grooming to develop effective senior managers. There is a critical shortage in companies of middle and top leaders for the next five years. Organizations will need to create pools of candidates with high leadership potential.

A careful and considered plan of action ensures the least possible disruption to the person's responsibilities and therefore the organization's effectiveness. Examples include such a person who is:

• Suddenly and unexpectedly unable or unwilling to continue their role within the organization;

• accepting an approach from another organization or external opportunity which will terminate or lessen their value to the current organization;

• indicating the conclusion of a contract or time-limited project; or

• Moving to another position and different set of responsibilities within the organization.

• A succession plan clearly sets out the factors to be taken into account and the process to be followed in relation to retaining or replacing the person.

Step 6 & 7. Evaluation, Feedback, and control of the System

The HR plan must include budgets, targets and standards and clarifications on responsibilities for planning, implementation and evaluation. HR programmes should be constantly evaluated against the objectives and deviations must be handled appropriately.

HRIS (Human Resource Information System)

HRIS is a computerized system that aids in the processing of information relating to Human Resource Management. HRIS stores the skill inventory and management inventory into the system and helps the managers in decision making with regard to wage fixing, promotions, recruitment, training etc. It is a cybernetic system involving input-process-output-feedback-control loop.

Application Areas of HRIS:

HR Planning and Analysis

Organizational charts

Staffing projections

Skill inventories

Turnover analysis

Absenteeism analysis

Restructuring costing

Internal Job matching

Job Description Tracking.

Compensation and Benefits

Health, Safety and Security

Staffing

Q. Name some strategies for successful HRP(4-5 marks)

HRP Human Resource Planning starts with analyzing the Organizational plan. The purpose here is to relate human acquisition for enterprise needs so as to maximize the Return on Investment in Human resources.

• HRP must be an integrated plan of corporate plan

• HRP must have the support of top management

• Collect, maintain, and interpret relevant information regarding human resources.

• Periodical reports on changing requirements of organization and the manpower.

• Developing procedures and techniques to determine different types of manpower requirement.

• Suitable techniques must be employed leading to effective allocation of work to improve manpower utilization.

Module 2

HRAD

BU SEM III

Job Analysis

INTRODUCTION

A Job is a bundle of related tasks. Job as a synonym to work understood as "the physical and mental activity that is carried out a particular place and time, according to instructions in return f4 money." Analysis of each managerial, production or clerical job is ( determine the nature of work, the qualification necessary, amount training required, the amount of supervision required, tli;. remuneration etc.

Q. What is Job Analysis? (2 marks)

Job Analysis involves collection of Job related information. focus is on the job, but not on the individual holding the job. Job analysis refers to the process of gathering information about a job and it results in two sets of data—Job Description and Job Specification.

Job Analysis is the process of collecting job related information be needed in the near future.

Q. What is the purpose of job analysis?(4 marks)

Job analysis is useful for overall management of all personal activities especially in Human Resource Planning, recruitment training, job evaluation, compensation designing, performance appraisal, maintaining Computerized Personnel Information etc.

• Recruitment and Selection

Job Analysis helps the HR managers to locate places whet,' prospective employees are available for openings a0 understand the qualifications and type of skills required for the jobs. The objective of employee hiring is to place right people for the right jobs, which is not possible without having adequate job information.

• Training and Development

Training and Development programs can be design depending upon the job requirements, which in turn can decided by Job analysis.

• Job Evaluation

Job Evaluation involves relative worth of each job for the purpose of establishing wage and salary differentials and this is facilitated by Job analysis.

• Compensation Design

Compensation which includes fringe benefits, bonus, and other benefits is decided following Job Evaluation, which is the result of Job Analysis. A perception of inequity in remuneration de-motivates the employees.

• Performance appraisal

Performance appraisal involves assessment of the actual performance of an employee against what is expected of him or her. Such assessment helps as a basis for awarding promotions, increments, transfers, training needs etc. Job analysis helps in fixing standards for performance, against which actual performance should be measured.

• Personnel Information

Organizations normally maintain computerized personnel information for administrative efficiency and Decision support. Job analysis facilitates in managing such information.

• Safety and Health

The detailed Job Analysis provides an opportunity to uncover and identify hazardous conditions and unhealthy environmental practices like heat, noise, dust, fumes and helps to take corrective measures.

Q. What issues does Job analysis addresses?(4 marks)

• The tools, materials, and equipment are used to perform the tasks in the job.

• Methods or processes are used to perform the tasks in the job

• The specific duties for the position (broad responsibilities).

• The critical tasks and key result areas of the position, which helps to isolate the most critical activities that the position holder is expected to perform.

• The discrete outcomes of the job for which the person appointed will be held accountable and evaluated on.

• The behaviors, skills, knowledge and experience are the most important to the program in achieving the key results and outcomes and focuses on the specific personal qualities that are necessary to best meet the job requirements.