CAE10 - MANAGEMENT SCIENCE

________________________________________________

CHAPTER 10 – HUMAN RESOURCE MANAGEMENT

I. Learning Objectives
 Discuss the human resource management;
 Explain the scope of human resource management;
 Understand the different aspects, elements and components of human resource
management

II. Introduction
 Human Resource Management (HRM) is an operation in companies designed to
maximize employee performance in order to meet the employer's strategic goals and
objectives.
 More precisely, HRM focuses on management of people within companies,
emphasizing on policies and systems. In short, HRM is the process of recruiting,
selecting employees, providing proper orientation and induction, imparting proper
training and developing skills.
 HRM also includes employee assessment like performance appraisal, facilitating
proper compensation and benefits, encouragement, maintaining proper relations with
labor and with trade unions, and taking care of employee safety, welfare and health by
complying with labor laws of the state or country concerned.

III. The Scope of HRM

 The scope of HRM is very wide. It consists of all the functions that come under the
banner of human resource management. The different functions are as follows −
Human Resources Planning It is the process by which a company identifies how many
positions are vacant and whether the company has excess staff or shortage of staff and
subsequently deals with this need of excess or shortage.
 Job Analysis Design
 Job analysis can be defined as the process of noticing and regulating in detail the
particular job duties and requirements and the relative importance of these duties for a
given job. Job analysis design is a process of designing jobs where evaluations are
made regarding the data collected on a job. It gives an elaborate description about each
and every job in the company.
 Recruitment and Selection
 With respect to the information collected from job analysis, the company prepares
advertisements and publishes them on various social media platforms. This is known
as recruitment.
 A number of applications are received after the advertisement is presented, interviews
are conducted and the deserving employees are selected. Thus, recruitment and
selection is yet another essential area of HRM.
 Orientation and Induction After the employees are selected, an induction or orientation
program is organized. The employees are updated about the background of the
company as well as culture, values, and work ethics of the company and they are also
introduced to the other employees.
 Training and Development
 Employees have to undergo a training program, which assists them to put up a better
performance on the job. Sometimes, training is also conducted for currently working
Page 1
 CAE10 - MANAGEMENT SCIENCE
________________________________________________

experienced staff so as to help them improve their skills further. This is known as
refresher training.
 Performance Appraisal
 After the employees have put in around 1 year of service, performance appraisal is
organized in order to check their performance. On the basis of these appraisals, future
promotions, incentives, and increments in salary are decided.
 Compensation Planning and Remuneration
 Under compensation planning and remuneration, various rules and regulations
regarding compensation and related aspects are taken care of. It is the duty of the HR
department to look into remuneration and compensation planning.

IV. Features of HRM

 Human Resource Management as a discipline includes the following features –
o It is pervasive in nature, as it is present in all industries.
o It focuses on outcomes and not on rules.
o It helps employees develop and groom their potential completely.
o It motivates employees to give their best to the company.
o It is all about people at work, as individuals as well as in groups.
o It tries to put people on assigned tasks in order to have good production or
results.
o It helps a company achieve its goals in the future by facilitating work for
competent and well motivated employees.
o It approaches to build and maintain cordial relationship among people working
at various levels in the company. Basically, we can say that HRM is a multi-
disciplinary activity, utilizing knowledge and inputs drawn from psychology,
economics, etc.
 Human Resource Planning (HRP) is the process of foreseeing the requirement of
human resources in an organization.
 The objective is also to determine how the existing human resources best fit in their
jobs. Thus, it focuses on the basic economics concept of demand and supply in the
context of the human resource capacity of an organization.

V. Components of HRP
 The following are the components of human
resource planning − Current HR Supply It
involves a comprehensive study of human
resource strength in the organization with
respect to the numbers, skills, talents,
competencies, qualifications, experiences,
age, tenures, performance ratings,
designations, grades, compensations,
benefits, etc. At this stage, the consultants
may organize extensive interviews with the
managers to understand the critical HR issues they face and basic workforce abilities
as crucial for various business processes. Future HR Demand

Page 2
 CAE10 - MANAGEMENT SCIENCE
________________________________________________

 All the known HR variables like attrition, lay-offs, foreseeable vacancies, retirements,
promotions, preset transfers, etc. are considered while selecting future HR demand.
Further, specific unknown workforce temporaries like competitive factors, resignations,
abrupt transfers or dismissals are also involved in the scope of analysis.
 Demand Forecast
 It is important to understand the business strategy and the objectives of the
organization in the long run so that the workforce demand forecast is aligned to the
organizational goals.
 HR Sourcing Strategy and Implementation
 Sourcing strategy and implementation may involve conducting interaction programs
with employees, relocation, talent acquisition, recruitment and outsourcing, talent
management, training and coaching, and revision of policies.
 The plans are then executed taking into confidence the mangers so as to make the
process of execution smooth and efficient. Even though HR Planning sounds quite
simple as a process of managing the numbers in terms of human resource needs of
the company, the actual exercise may include the HR manager to face many
roadblocks owing to the effect of the current workforce in the company, pressure to
meet the business objectives and prevailing workforce market condition.
 Thus, a properly conducted process of HR Planning by an HR Consulting company
helps the company in meeting its aims and objectives in a timely manner with the right
HR strength in action. Job Analysis It is the process of identifying and choosing
elaborated contents of a particular job, thus clearly defining duties, rules,
responsibilities, accountabilities, and skills related to the job.
 Job analysis is the process of analyzing the job — what is the demand and requirement
for the job, and not of the individual. The process of job analysis gives two sets of data
–
 Job description − Job description is a written statement including complete information
about what all a job holds, like job title, duties, tasks and responsibilities related to job,
working conditions and hazards, reporting relationships, tools, machines and
equipment to be used, and relationships with other designations.
 Job specification − Job specification includes particulars regarding the capabilities that
an individual should possess to perform the assigned tasks efficiently. This includes
educational qualification, experience, training, appropriate skills, knowledge, and
abilities required to perform the job. Job Design Job design is a continuous and ever-
evolving process that is targeted at helping employees in making adjustments with the
changes at the workplace. The end goal is minimizing dissatisfaction and enhancing
motivation and employee engagement at the workplace.
 There are various steps involved in job designing, but all these steps follow a logical
sequence. Every step has its own importance and no step can be neglected during the
designing process. The sequence is given below –
o What jobs are to be done or what jobs are a part of the job?
o How are the jobs performed?
o What amount of jobs is required to be done?
o What is the procedure of performing these tasks? All these questions are
considered while arriving upon a clear definition of a specific job, thereby
making it less risky for the one performing the same. A well-defined job creates

Page 3
 CAE10 - MANAGEMENT SCIENCE
________________________________________________

a feeling of achievement and a sense of high self-esteem among the

employees.
 Job Evaluation In contrast to job specification, job evaluation specifies the relative value
or worth of each job in a company by examining the task and ranking the jobs accordingly.
Job evaluation cab be done by any of the following methods –
o Points rating − Different levels are allotted to the various elements of jobs and
then the points allocated to different levels are summarized to get the point score
of the jobs. It forms the basis of pay structure.
o Factor comparison − A comparison of different independent factors of jobs is done
and points are given to each factor scale of individual job. These points are then
aggregated to rank the jobs.
o Job ranking − A job is not broken into factors or elements; instead, it is evaluated
as a complete process and is compared with other jobs. After proper evaluation,
jobs are scaled accordingly.
o Paired comparison − Jobs are compared with each other and points are allocated
depending on being ‘higher, lesser or equal’. These points are added to prioritize
the order of jobs. The jobs with higher priorities are given more attention as
compared to others.

VI. Recruitment
 Recruitment is a process of identifying, screening, shortlisting and hiring potential
resource for filling up the vacant positions in an organization. It is a core function of
Human Resource Management. Recruitment is the process of choosing the right person
for the right position and at the right time. Recruitment also refers to the process of
attracting, selecting, and appointing potential candidates to meet the organization’s
resource requirements. The hiring of the candidates can be done internally i.e., within the
organization, or from external sources. And the process should be performed within a
time constraint and it should be cost effective.
 Importance of Recruitment
 Recruitment is one of the most fundamental activities of the HR team. If the recruitment
process is efficient, then
o The organization gets happier and more productive employees
o Attrition rate reduces.
o It builds a good workplace environment with good employee relationships.
o It results in overall growth of the organization. Here is a list that shows the purpose
and importance of Recruitment in an organization –
o It determines the current and future job requirement.
o It increases the pool of job at the minimal cost.
o It helps in increasing the success rate of selecting the right candidates.
o It helps in reducing the probability of short term employments.
o It meets the organization’s social and legal obligations with regards to the work
force.
o It helps in identifying the job applicants and selecting the appropriate resources.
o It helps in increasing organizational effectives for a short and long term.
o It helps in evaluating the effectiveness of the various recruitment techniques.
o It attracts and encourages the applicants to apply for the vacancies in an
organization.

Page 4
 CAE10 - MANAGEMENT SCIENCE
________________________________________________

o It determines the present futures requirements of the organization and plan

according.
o It links the potential employees with the employers.
o It helps in increasing the success ratio of the selection process of prospective
candidates.
o It helps in creating a talent pool of prospective candidates, which enables in
selecting the right candidates for the right job as per the organizational needs.
Recruitment is a process of finding and attracting the potential resources for filling
up the vacant positions in an organization. It sources the candidates with the
abilities and attitude, which are required for achieving the objectives of an
organization.
 Recruitment process is a process of identifying the jobs vacancy, analyzing the job
requirements, reviewing applications, screening, shortlisting and selecting the right
candidate. To increase the efficiency of hiring, it is recommended that the HR team of an
organization follows the five best practices (as shown in the following image). These five
practices ensure successful recruitment without any interruptions. In addition, these
practices also ensure consistency and compliance in the recruitment process.
 Recruitment process is the first step in creating a powerful resource base. The process
undergoes a systematic procedure starting from sourcing the resources to arranging and
conducting interviews and finally selecting the right candidates. Recruitment Planning
Recruitment planning is the first step of the recruitment process, where the vacant
positions are analyzed and described. It includes job specifications and its nature,
experience, qualifications and skills required for the job, etc.
 A structured recruitment plan is mandatory to attract potential candidates from a pool of
candidates. The potential candidates should be qualified, experienced with a capability
to take the responsibilities required to achieve the objectives of the organization.
 Identifying Vacancy
 The first and foremost process of recruitment plan is identifying the vacancy. This process
begins with receiving the requisition for recruitments from different department of the
organization to the HR Department, which contains –
o Number of posts to be filled
o Number of positions
o Duties and responsibilities to be performed
o Qualification and experience required When a vacancy is identified, it the
responsibility of the sourcing manager to ascertain whether the position is
required or not, permanent or temporary, full-time or part-time, etc. These
parameters should be evaluated before commencing recruitment. Proper
identifying, planning and evaluating leads to hiring of the right resource for the
team and the organization.
 Job Analysis
 Job analysis is a process of identifying, analyzing, and determining the duties,
responsibilities, skills, abilities, and work environment of a specific job. These factors help
in identifying what a job demands and what an employee must possess in performing a
job productively. Job analysis helps in understanding what tasks are important and how
to perform them. Its purpose is to establish and document the job relatedness of
employment procedures such as selection, training, compensation, and performance
appraisal. The following steps are important in analyzing a job –

Page 5
 CAE10 - MANAGEMENT SCIENCE
________________________________________________

o Recording and collecting job information

o Accuracy in checking the job information
o Generating job description based on the information
o Determining the skills, knowledge and skills, which are required for the job The
immediate products of job analysis are job descriptionsand job specifications. Job
Description Job description is an important document, which is descriptive in
nature and contains the final statement of the job analysis. This description is very
important for a successful recruitment process. Job description provides
information about the scope of job roles, responsibilities and the positioning of the
job in the organization. And this data gives the employer and the organization a
clear idea of what an employee must do to meet the requirement of his job
responsibilities.
 Job description is generated for fulfilling the following processes –
o Classification and ranking of jobs
o Placing and orientation of new resources
o Promotions and transfers  Describing the career path
o Future development of work standards A job description provides information on
the following elements –
o Job Title / Job Identification / Organization Position
o Job Location
o Summary of Job
o Job Duties
o Machines, Materials and Equipment
o Process of Supervision
o Working Conditions
o Health Hazards
 Job Specification
 Job specification focuses on the specifications of the candidate, whom the HR team is
going to hire. The first step in job specification is preparing the list of all jobs in the
organization and its locations. The second step is to generate the information of each job.
This information about each job in an organization is as follows –
o Physical specifications
o Mental specifications
o Physical features
o Emotional specifications
 Behavioral specifications
 A job specification document provides information on the following elements –
o Qualification
o Experiences
o Training and development
o Skills requirements
o Work responsibilities
o Emotional characteristics
o Planning of career
 Job Evaluation
 Job evaluation is a comparative process of analyzing, assessing, and determining the
relative value/worth of a job in relation to the other jobs in an organization. The main objective

Page 6
 CAE10 - MANAGEMENT SCIENCE
________________________________________________

of job evaluation is to analyze and determine which job commands how much pay. There are
several methods such as job grading, job classifications, job ranking, etc., which are involved
in job evaluation. Job evaluation forms the basis for salary and wage negotiations.

VII. References
 DuBrin, Andrew J. (2009). Essentials of Management (8th ed.). Mason, OH: Thomson
Business & Economics. ISBN 978-0-324-35389-1. OCLC 227205643.

 Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945. UNC
Press Books.

VIII. Link for Video

Components of Human Resource Planning [Link]
Job Design [Link]
Corporate Planning [Link]

Page 7