Human Resource

Management
 HRM Meaning and Definition

Human Resource Management is also a

function of management, concerned with
hiring, motivating and maintaining
people in an organisation.

It focuses on people in the organisation.

HRM Meaning and Definition
 Organisations does not only consist of building,
machines or inventories. It is people they manage
and staff the organisation
 HRM applies management principles in procuring,
developing, maintaining people in the organisation.
 Aims at integrated decision making and decisions on
different aspects of employees are consistent with
other HR decisions
 HR Decisions must influence effectiveness of the
organisation leading to better service to customer
and high quality product and services at reasonable
price.
 It is not confined to business establishment only,
HRM is applicable also to the non business
organisation, like government department,
education, health care etc.
Definition
 Human Resource Management is a
series of integrated decisions that
form the employment relationship;
their quality contributes to the
ability of the organisations and the
employees to achieve their
objectives.
- Milkovich and Boudreau
Definition
 Human Resource Management is concerned with
the people dimension in management. Since
every organisation is made up of people,
acquiring their services, developing their skills,
motivating them to higher levels of performance
and ensuring that they continue to maintain their
commitment to the organisation are essential to
achieving organisational objectives. This is true
regardless of the type of organisation –
government, business, education, health,
recreation or social action.
- David A. Decenzo and Stephen P. Robbins
Definition
 Human Resource Management is the
planning, organising, directing and
controlling of the procurement,
development, compensation, integration,
maintenance and separation of human
resources to the end that individual,
organisational, and social objectives are
accomplished.
- Edwin B. Flippo
Scope of HRM
Nature
Introduction

Prospects Procurement

HRM
Industrial
Remuneration
Relations

Maintenance Motivation
 Difference Between HRM and PM - 1

S.No Dimension PM HRM

1 Employment Careful dimension Aim to go
contract of written contract beyond contract
2 Rules Importance of Impatience with
devising clear rules rules
3 Guide to Procedures Business need
management
action
4 Behaviour referent Norms/ customs & Values/mission
practices
5 Managerial task Monitoring Nurturing
vis-à-vis labour
6 Key relations Labour Customer
7 Initiatives Piecemeal Integrated
8 Speed of decision Slow Fast
 Difference Between HRM and PM - 2

S.No Dimension PM HRM

9 Management role Transactional Transformational
10 Communication Indirect Direct
11 Management skill Negotiation Facilitation
12 Selection Separate Integrated
13 Pay Job evaluation Performance
related
14 Conditions Separately Harmonisation
negotiated
15 Labour Collective Individual
management bargaining contracts
contracts
16 Job categories and Many Few
grades
17 Job design Division of Team work
labour
 Difference Between HRM and PM - 3

S.No Dimension PM HRM

18 Conflict handling Temporary Climate & culture
19 Training & Controlled Learning
Development courses Organization
20 Focus for attention Personnel Cultural &
for interventions procedures structural
strategies
21 Respect for Labour – a tool People are assets
employees – expendable & & to be used for
replaceable benefit of
organization
22 Shared interests Organization Mutuality of
interest is interests
uppermost
23 Evolution Precedes HRM Latest
Shift towards HRD
HRD and HR
 HR can be termed as Human
Resource Function or HRM Human
Resource Management

 HRD Stands for Human Resource

Development
HRD and HR

HR is all encompassing
HR includes HRD and more
HR goes far beyond the traditional Personnel function
HR is more proactive and change oriented
HR needs competencies of a different nature from
what the traditional personnel function required
Importance of HRM
 Human Resource Management is important to all
managers despite their various functions because
of the following reasons-
 Hire the right person for the job
 Low attrition rate
 Ensure people do their best
 Time saved in not conducting useless interviews
 Avoid legal action for any discrimination
 Safety laws are not ignored
 Equity towards employee in relation to salary etc.
 Effective training
 Avoid unfair labour practices
HUMAN RESOURCE PLANNING
Human Resource Planning

Human Resource Planning is the

process of forecasting a firm’s future
demand for, and supply of, the right
type of people in the right number.
Function of HRM

The main function of human resource

management is classified into two
types: (a) Managerial Function; (b)
Operative Function
Operative function
 Procurement – It involves attracting
and employing individuals with
suitable knowledge, skills,
 experience, and aptitude necessary
to perform various jobs.
 Development – It aims to train and
develop employees to improve and
update their knowledge and skills
in order to help them perform
better.
 • Compensation – It involves
rewarding employees monetarily
and through fringe benefits for their
contributions to the organization
 • Integration – Integration of human
resources with organization
 • Maintenance – It deals with maintaining
employee safety.Sustaining and improving
working conditions, retentions, employee
communication

 Separations: Managing separations

caused by resignations, terminations, lay
offs, death, medical sickness etc oyees.  
Managerial functions of HRM
 Planning: Plan and research about wage
trends, labor market conditions, union
demands and other personnel benefits.
Forecasting manpower needs etc.
 Organizing: Organizing manpower and
material resources by creating authorities
and responsibilities for the achievement of
organizational goals and objectives.
 Staffing: Recruitment & Selection
 Directing: Issuance of orders and
instructions, providing guidance and
motivation of employees to follow the path
laid-down.
Controlling: Regulating personnel activities
and policies according to plans.
Observations and comparisons of deviations
OBJECTIVES OF HRM

 Societal Objectives: To be ethically and

socially responsible to the needs and
challenges of the society while minimizing
the negative impact of such demands upon
the organization.
 Organizational Objectives: To recognize
the role of HRM in bringing about
organizational effectiveness. HRM is only
means to achieve to assist the organization
with its primary objectives.
 Functional Objectives: To maintain
department’s contribution and level of
services at a level appropriate to the
organization’s needs
Personal Objectives: To assist employees in
achieving their personal goals, at least in so
far as these goals enhance the individual’s
contribution to the organization. This is
necessary to maintain employee
performance and satisfaction for the
purpose of maintaining, retaining and
motivating the employees in the
organization.
Definition
 Human Resource planning includes
the estimation of how many
qualified people are necessary to
carry out the assigned activities,
how many people will be available,
and what, if anything, must be done
to ensure that personnel supply
equals personnel demand at the
appropriate point in the future.
 Definition
 Specifically, human resource planning is the
process by which an organisation ensures that it
has the right number and kind of people, at the
right place, at the right time, capable of
effectively and efficiently completing those tasks
that will help the organisation achieve its overall
objectives. Human resource planning translates
the organisation’s objectives and plans into the
number of worker needed to meet those
objectives. Without a clear cut planning,
estimation of an organisation’s human resource
need is reduced to mere guesswork.
 David A. Decenzo and Stephen P. Robbins
Importance of HRP
 Future personnel needs.
 Helps in strategic planning
 Creating high talented personnel
 Global strategies
 Foundation of personnel function
 Increase investments in human
resources
 Resistance to change
Factors affecting HRP
 Type and strategy of organisation
 Organisational growth cycle and planning
 Environmental uncertainties
 Time horizons
 Type and quality of forecasting
information
 Nature of jobs being filled
 Outsourcing
HR Demand Forecast
 Demand forecasting is the process
of estimating the quantity and
quality of people required to meet
future needs of the organisation.
Forecasting Techniques
 Ratio trends analysis
 Regression analysis
 Work study techniques
 Delphi techniques
 Managerial judgments
HR Supply Forecast
 Supply forecast determines whether
the HR department will be able to
procure the required number of
personnel. Specifically, supply
forecast measures the number of
people likely to be available from
within and outside an organisation.
HR Supply Forecast

The supply analysis covers:

 Existing human resources

 Internal source of supply
 External source of supply
JOB ANALYSIS
Job
 Job may be defined as “collection or
aggregation of tasks, duties and
responsibilities which as a whole,
are regarded as a regular
assignment to individual
employees.”
Job Analysis
 Job Analysis is the process of
studying and collecting information
relating to the operations and
responsibilities of a specific job. The
immediate products of this analysis
are job description and job
specification.
Job analysis involves following steps:
 Collecting and recording job information

 Checking the job information for accuracy

 Writing job description based on information

 Using the information to determine the skill,

abilities and knowledge

 Updating the information from time to time

Job Description
 A list of job’s duties, responsibilities,
reporting relationship, working
conditions, and supervisory
responsibilities.
Job Specification
 A list of job’s “human requirements”
that is, the requisite education,
skills, personality and so on.
 JOB ANALYSIS
A process of obtaining all pertinent job facts

Job Description Job Specification

• Education
• Job Title
• Experience
• Location • Training
• Job summary
• Initiative
• Duties
• Physical effort
• Machine tools etc
• Responsibilities
• Material etc
• Communication skills
• Supervision
• Emotional characteristics
• Working condition
• Unusual sensory sight etc.
• Hazards
 Use of Job Analysis Information

Job description and

Job Specification

Recruiting Salary Training

Performance
& & &
Appraisal
Selection Wages Develop

Career Health & Employee

Planning Safety Discipline
RECRUITMENT
Recruitment
 It is the process of finding and
attracting capable applicants for
employment. The process begins
when new recruits are sought and
ends when their applications are
submitted. The result is pool of
applicants from which new
employees are selected.
Initiating the Recruitment Process
 Prior to initiating a recruitment procedure, the
following matters should be considered:
 Clarification of the scope and skill sets required to
successfully perform the duties of the position
 Review of the Job Fact Sheet or Position Description
to ensure that the skills and abilities required
coincide with the current expectations of the
position. If they do not, then a position evaluation
should be undertaken.
 Review of the compensation available to the
position (i.e. salary and benefit plans, etc.)
 Analysis of the impact that the hiring will have on
the budget
 Factors Governing recruitment

External factors
Supply and demand Internal factors
Unemployment rate Recruitment policy
Labour Market HRP
Recruitment Size of the firm
Political
Social Cost
Sons of soil Growth
Image Expansion
 Building Pool of Candidate

INTERNAL EXTERNAL
 SOURCES OF RECRUITMENT

INTERNAL EXTERNAL

Current Employee • Advertising

References from present • Employment agencies
employee • Temporary help
Databank of former • Executive recruiters
applicants • Referrals and walk-ins
Retired Employee • College recruiting
Former employee • Company’s web site
• Free and fee-paying
Website services
Recruiting Yield Pyramid
 It is the historical arithmetic
relationships between-

 Recruitment leads and invitees

 Invitees and interviews
 Interviews and offers made
 Offers made and offers accepted
Recruiting Yield Pyramid

50 New hires

100 Offers made (2:1)

150 Candidates interviewed (3:2)

200 Candidates invited (4:3)

Leads generated (6:1)

1200
 Internal
versus
External
Recruitment
Advantages & Disadvantages
 Internal Recruitment
Advantages Disadvantages
1. It is less costly 1. It perpetuates the old
concept of doing things
2. Candidates are already 2. It abets raiding (make a
oriented toward organisation person provide something)
3. Organisation have better 3. Candidate’s current work
knowledge about the may be affected
internal candidates
4. Enhancement of employee 4. Politics play greater role
morale and motivation
5. Good performance is 5. Morale problem for those
rewarded not promoted
 External Recruitment
Advantages Disadvantages
1. Benefits of new skill, new 1. Better morale and
talent and experiences to motivation associated
organisation with internal recruiting is
denied to the
organisation
2. Compliance with 2. It is costly
reservation policy becomes
easy
3. Scope of resentment, 3. Chances of creeping in
jealousies and heartburn false positive or false
are avoided negative error
SELECTION
Selection
 Selection is the process of
differentiating between applicants in
order to identify those with a
greater likelihood of success in a
job.
Selection
 The selection of a candidate with
the right combination of education,
work experience, attitude, and
creativity will not only increase the
quality and stability of the
workforce, it will also play a large
role in bringing management
strategies and planning to fruition.
Factors affecting selection
 External environment
 Supply and demand of specific skill 
 Unemployment rate
 Legal and political considerations
 Company’s Image
Factors affecting selection
 Internal environment
 Company’s policy
 HRP
 Cost of hiring
Process of selection
Preliminary Interview

R Selection tests
E
J Employment Interview
C
Reference & background
T
E Selection Decision
D
Medical Examination

Job Offer

Employment Contract

Evaluation
Basic Testing Concepts
 Generally tests are administered to
determine the applicant’s –
 Ability
 Aptitude
 Personality
 Interest
Basic Testing Concepts
 Ability tests

 Helps to determine how well one can

perform his task
Basic Testing Concepts
 Aptitude tests
 Helps to determine a persons potential
to learn in a given area
Basic Testing Concepts
 Personality tests

 To measure a prospective employee’s

motivation to function in a particular
working environment
Basic Testing Concepts
 Interest tests

 To measure an individual’s activity

preferences. (For career change or
when there is multiple career option
available)
 Selection Tests
Tests Description
Thomas Identifying behavioural requirement
Profiling for the job
MBTI Understanding personality type

PAPI Behaviour in work place

16 PF Measuring personality factors

ASUFA Locus of control

Interviews
 Formal, in depth conversation conducted
to evaluate the applicant’s acceptability.

 Adapted to unskilled, skilled, managerial

and professional employees.

 Two-way exchange of information, the

interviewers learn about the applicant,
and the applicant learns about the
organization
Shortcomings of interviews
 Absence of reliability

 Lack of validity

 Biases
Preparing for the Interview
 Abundant research exists that reliability and
validity of the selection interview are higher when
an interview is structured, planned and
standardized in form. This approach fosters a
comprehensive investigation of the applicant's
background, precludes personal and non-job-
related questions, and increases impartiality in
qualification assessment. Therefore, an interview
plan is strongly recommended.

 Prior to developing the interview plan, it is critical

to be clear about the job requirements and stick
to them throughout the hiring process. This
ensures that you “don’t fall in love with each
candidate and redefine the job to fit”.
Types of Interview
Interview may be

One to one Interview

Only two participants –

1. Interviewer
2. Candidate
Sequential Interview

1 2 3

Involves series of interviews

Candidates moves from room to room
Panel Interview

Two or more interviewers

Formal
 Objectives of Interview
 Helps obtain additional information
from applicant

 Facilitates giving general information

to applicant

 Help build image of the organization