ISHWAR ADHIKARI
DEFINITION
The management function that deals with the
recruitment, placement, training, development of
organization members.
HRM is a process for staffing the organization and
sustaining high employee performance.
HRM can be defined as all the practices, system, and
procedures implemented to attract, acquire, develop,
manage human resources to achieve the goal of an
organization.
Simply it is managing the employment relationship.
It focuses on people in an organization.
OBJECTIVES OF HRM
To help the organization reach its goal.
To employ the skills and abilities of the workforce
efficiently.
To provide the organization with well trained and
well motivated employees.
To increase the fullest the employee’s job
satisfaction and self actualization.
To develop and maintain a quality of work.
To communicate HR policies to all employees.
To be ethically and socially responsive to the needs
of society.
SCOPE OF HRM
Industrial
Relations
Employee
Education
Nature of
HRM
Employee HRM Employee
Health and
Selection
Safety
Employee
Employee
Remuneration
Motivation
Importance Contd……..
1. At Enterprise Level
Can help in attracting and retaining the best people in
organization.
Planning alerts the company to the types of people it
will need in the short, medium and long term.
Helps in training people for challenging roles,
developing right attitudes towards the job and
company.
Developing loyalty and commitment through
appropriate reward scheme.
Importance Contd……..
2. At the Individual level
It promotes team work and team
spirit among employees.
It offers excellent growth
opportunities to people who have
potential to rise.
It allows people to work with
diligence and commitments.
Importance Contd……..
3. At Society level
Employment opportunities multiply.
Scarce talents are put to best use.
Companies that pay and treat well always race ahead
of others and deliver excellent results.
4. At the national level
Effective use of human resources helps in exploitation
of natural, physical and financial resources in a better
way.
Peoples with right skills, proper attitudes, and
appropriate values help the nation to get ahead.
CHALLENGES OF
HRM
1. Outsourcing HR activities
Outsourcing is the process by which organizations
transfer work to another organization that
specializes in that work and can perform more
efficiently.
It is assumed that outsourcing offers reduced costs,
improved flexibility, and allows the hiring of
specialized expertise.
The HR activities which are commonly outsourced
include hiring, training and development, payroll
preparation, and so on.
Balancing work life and
family life
A growing concern in HR management
is the issue of balancing work life
quality and family life quality. This
issue is more when both husband and
wife are employed.
It has resulted into the need to
introduce flexi-work hour, job sharing,
childcare at work places, flexible work
policies etc.
Change in employee
expectations
With the change in various aspects of
time, expectations of the employees are
also changing everyday. It has given
birth to the motivation problems and
several other behavioral issues.
The challenge in front of HR managers is
to identify and define the expectations of
the employees.
Corporate
reorganization
With the change in environment,
reorganization of big organizations
have become common. Mergers,
acquisitions, takeovers, and
divestitures have posed challenges for
HRM these days.
Loss of joy and
pleasure
HR managers are not as fortunate as they were
in the past. They are facing strikes, sabotage,
vandalism, and other forms of disturbances.
HR as the part of the organization with the
responsibility of managing employee relations
is always in state of tension resulting into loss of
joy and pleasure.
Changing qualities of
HR professions
•HR executives these days are in the cross roads.
•They are caught between the conflicting interests
of (a) management and labour, (b) political and
bureaucratic hassles.
•HR managers is required to have skills and
knowledge of the areas other than HR practices
HRM ‘Planning’
Human resource planning ensures that future
personnel needs will be constantly and
appropriately met.
It is the process by which managers ensures that
they have the right number and kind of people in
the right places at right times, who are capable of
performing the assigned tasks efficiently.
It includes: Job Design, Recruitment, Selection,
Training & Developing employees, Performance
and Retaining.
JOB DESIGN
Job is “ collection or aggregation of tasks, duties,
and responsibilities, regarded as a regular
assignment to individual employee.”
Usually done prior to recruitment.
The process of describing the work that needs to be
done by an employee.
Specifying the requirements needed in fulfilling
the job.
Uses of job analysis
Provide complete knowledge of the job.
Job analysis provides a realistic basis for recruitment and
selection of employees.
Helps to rearrange the work flow and to revise existing
procedure.
Provides the necessary information for employee
development.
Helps in establishing clear cut standards. This helps the
employees as they can know what is expected of them.
Make known the required skills and knowledge for
doing a job.
RECRUITMENT
Development of a pool of job candidate in
accordance with a human resource plan.
Its purpose is to provide management with enough
candidates from which they can select qualified
employees.
The process begins when new recruits are sought
and ends when their application are submitted.
DERECRUITMENT : techniques for reducing the
labor supply within an organization e.g. firing,
transfer, retirement etc.
Internal Source of Recruitment
1. Promotion
2. Transfer
•Job vacancies can be filled
This is the method of
through promotion of the
recruiting employees
current employees.
internally without
•Employees also feel more
promoting.
secured and can identify their
long- term interests in the
organization.
•It can motivate the
employees.
If there arises vacancies
requiring special skills and
knowledge, this source may
not be sufficient.
3. Job rotation
4. Rehires and recall
It is a process of moving
Former employees who
employees from one job to
were laid off for some
another for a short period.
reasons may be called
From recruitment perspective
back.
it is a kind of temporary
This source is also cost
assignment.
effective.
5. Job posting
This is an open invitation to all employees in an
organization to apply for their job vacancies.
It provides equal opportunities for employees’
growth and advancement.
External Source of Recruitment
1. Employee referral 2. Walk-ins
program When job applicants come
It is work-of-mouth to apply for jobs by
advertisement in which walking into the
current employees refer organization’s employment
applicants from outside the office, this is known as
organization. walk-ins.
This method is effective to This method is relatively
find critically skilled informal and less
employees. expensive.
3. Employment agencies 4. Trade unions
These agencies are likely to In some organizations,
have a list of suitable unions such as trade
applicants in their records and unions and professional
charge some reasonable associations collect
amount for rendering applicants for the future
employment service. selection.
There are some private and These associations publish
public agencies rendering notices in their newsletters
these services. offering employment
opportunities especially
for skilled personnel.
5. Schools, colleges and
6. Radio and television
universities Electronic devices such as
These institutions are the radio, television and
major sources of recruitment. computers are massively
Many colleges and used for finding potential
universities have placement candidates.
cells that work as a linkage These methods are more
between the incumbents and effective in urban areas
the employing organizations. than the rural areas.
7. Newspaper and trade journals
These are the most commonly used recruitment
methods.
Recruitment adds in daily and weekly newspapers
are effective for all types of positions
SELECTION
Selection is essentially a process of choosing right
applicants best suited for the organization’s
requirement.
The most common approach to the selection
objective is to choose individuals who possess the
necessary skills, abilities, and personalities to
successfully fill specific jobs in the organization.
The mutual process whereby the organization
decides to make a job offer and the candidate
decides whether or not to accept it.
Major activities involved in
selection are
Establishing selection policies
Identifying and choosing selection criteria
Gathering information about potential
employees
Evaluating information and assessing applicants
Making decision to select or reject
Communicating decision – selected or rejected
Reception of
Application
The first step in selection process is the
reception of application of the candidates
as a result of vacancies announcement.
The application should spell out the
interests and expectations of the
applicants along with their resume.
Preliminary Interview
The second step is to conduct preliminary
screening interview to have an initial
assessment of the candidate’s abilities
and aspirations.
This interview would generally establish
a candidate’s goals and interests and
general attitude towards the organization
and what the candidate can contribute to
the organization.
Selection Tests
In recent years selection tests (which are usually
constructed by industrial psychologists) have
become a well accepted part of the selection
procedure for the majority of medium and large
organizations.
These tests are given to make judgment about
certain specific aspects of the candidates.
These tests may include achievement tests,
aptitude tests, personality tests, intelligence tests,
psychomotor tests etc.
Office interview
The fifth step is the in-depth interview which is
conducted to evaluate the applicant’s
acceptability in terms of his ability to fit into the
organization’s culture and his motive for joining
the organization.
The interview program can be designed in
various patterns such as structured or
unstructured interview, formal or informal
interview, planned interview, non-directive
interview, depth and stress interview, group
interview, and panel interview.
Reference check
The sixth step is to check the candidate’s reference seek
opinions from his previous employers or instructors.
Final selection interview
A final selection interview is conducted by the line
executives.
At this phase, a final decision of acceptance or rejection is
made.
Medical examination
This step is concerned with the physical health of
the incumbents. It is necessary to ensure that the
Applicants are physically fit and capable to
perform the jobs given.
Unwarranted claims will be avoided.
Communicable diseases will be prevented.
Induction or orientation
This step involves the hiring of the candidates with the
orientation of the organization’s culture and norms and the
responsibilities they have to discharge.
Recruitment Versus
Selection
Basis
Recruitment Selection
Process of searching Process of selection of right
Meaning candidates for vacant job candidates and offering job to
positions and making them to them.
apply.
Positive process of Negative process (process of
Nature aggregation of potential eliminating of unsuitable
candidates. candidates).
To attract more and more To evaluate and then reject
Objective candidates. unsuitable candidates and
select the most suitable
candidates.
Notification of vacancies to Candidates asked to go through
Procedure potential candidates through a series of steps in the selection
various means. process.
Training and Developing
Training is the process designed to maintain
or improve current employee performance.
Development is a process designed to
develop skills and attitudes necessary for
future work.
Training and developmental program
improve three types of skill:
- Technical skill
- Interpersonal skill
- Problem solving skill
Training Methods
On the Job Training
Off the Job Training
1. Apprenticeship 1. Lecture
2. Job Instruction 2. Conference
Training (JIT) 3. Case study
3. Internship 4. Role play
5. Programmed instruction
6. Computer Assisted
Instruction
7. Audio—visual methods
8. Other methods
On the Job Training Method
(Learning by Doing)
This method is the most widely used method and it
simply means putting the workers on the job under
close supervision of trained instructor.
This training continues until supervisor is satisfied
that the employee can adequately perform the job
without supervision.
This method is appropriate for skill oriented jobs
with small number of employees.
This method is suitable for the employees in
clerical positions, shop floor and workers in manual
and repetitive jobs.
Apprenticeship
Training
For training in crafts, trades and in
technical areas, apprenticeship training is
the oldest and most widely method.
Employees frequently learn by studying
under a seasoned (expert) veteran.
Skills that can be acquired from
apprenticeship training are nursing,
plumbing, electrician, carpentry.
Job Instruction
Training
This is a systematic training technique designed
to guide for giving on-the-job skills to blue
collar workers.
It requires skilled trainers, extensive job
analysis, training schedules and prior
assessment of the trainees’ job knowledge.
It provides immediate feedback on results,
quick correction of errors and provision of extra
practice when required.
Off-the-job Training
Method
Such training takes place outside the actual
workplace but attempts to simulate actual
working conditions.
Location of such training may be the
organization’s class room, an outside place
owned by the organization, an educational
institution etc.
Various methods can be employed in this
type of training.
Lecture
Lectures are formal organized talks by the training
specialist.
The main objective of the lecture method is that it
can be used for large groups, and thus the cost per
trainee can be reduced.
The trainer discusses theoretical aspects of
information related to job.
The effectiveness of this method will be to
maximize the chances for exchanging ideas and
views between trainer and trainee.
The Conference Method
Under this method, a conference is held in
accordance with an organized plan.
Mutual problems are discussed and
participants pool their ideas and experience
in attempting to arrive at better methods of
dealing with these problems.
The members of the group come to teach
each other and learn together.
Conferences may include Buzz sessions
which divide conferences into small
groups of four or five for discussions.
These small groups report back to the
whole group with their conclusions or
questions.
This method is suited for analyzing
problems and issues, and examining them
from different viewpoint.
Case study
Case method is a means of simulating experience in
the classroom. Trainees may be given a problem to
discuss which is more or less related to the
principles already taught.
This method gives the trainees an opportunity to
apply his knowledge to the solution of realistic
problems.
Case studies are extensively used in teaching law,
HR management, human relations, marketing
management and business policy.
Students learn that there is no single answer to a
particular problem.
Role playing
This method is also called “role-reversal”, “socio
drama” or “psycho drama”.
Here trainees act out a given role as they would in a
stage play.
Two or more trainees are assigned roles in a given
situation, which is explained to the group.
The role players have to quickly respond to the
situation that is ever changing and to react to it as
they would in the real one.
Programmed
Instruction
This method was developed in the late 1950 for both school and
industrial applications.
Its key features are:
Students learn at their own pace.
Instructors are not key part of the learning.
The materials to be learned its broken down into very small
units or stage.
Each step logically builds upon those that have proceeded it.
The students is given immediate knowledge of results for each
answer he gives.
There is active participation by the learner at each step in the
program.
. Audio-visual Techniques
This method involves the use of audio-visual tools
such as film, audio tapes, video tapes, close circuit
television etc.
These tools are very useful to teach skill to the
trainee.
These tools provide a live work situation.
Effectiveness of this method depends on how closely
such films are related to the specific learning
objectives.
Vestibule training
This training takes place in the area away from the real
workplace.
In this training program, trainees’ future work station
including the machine that will be used in the future is
duplicated.
The training method is useful for those trainees who
have little or no knowledge of the job situation.
Thus, this training aims to provide basic skills and
practices of the job to the trainees.
Other Methods
Demonstration
This is a method in which the demonstrator
(instructor) actually shows the trainees how to do the
job.
This technique may be combined with some other
techniques such as lecture, pictures, text materials,
and discussions.
It emphasizes primarily knowhow, principles and
theory.
Employee performance
management
Performance management is a process used within a
organization to establish and evaluate and
individual’s job performance to achieve goals and
objectives.
Performance Appraisal
A process of systematically evaluating performance
and providing feedback upon which performance
adjustment can be made .
Performance Appraisal should be based on job
analysis, job description and job specification.
Types of Performance
Appraisal
1.
Informal Performance Appraisal
The process of continually feeding back to subordinates
information regarding their work performance.
2. Formal Performance Appraisal
A formalized appraisal process of rating work
performance, identifying deserving raises or
promotions, and identifying those in need of further
training.
Retaining
Compensation and Benefits plays and important
role in retaining the employees in an organization.
Benefits of a fair, effective and compensation
system
- help attract and retain high performance
employees.
- impact on strategic performance of the firm.
Model Questions
What is human resource of management? What are
the challenges of HRM.
“Recruitment and selection are the essential job of
the manager in HRM planning”. Explain.
Why on the job and off the job training is most
important for the employees? Discus.
“Human resource manager needs to perform
different activities while planning HRM”. Explain.