Human Resources Management

Human Resource Management

  • Planning, organizing, directing, and controlling the procurement, development, compensation, integration, maintenance, and separation of human resources.
  • Aims to accomplish individual, organizational, and social objectives.
  • Focuses on recruitment, placement, training, and development of organizational members.
  • Manages workers to serve the organization with dedication and high performance.
  • A staff function that keeps the organization supplied with the right people in the right position when needed.

Scope of Human Resource Management

  • Includes procurement, remuneration, motivation, maintenance, industrial relations, and prospects.

Key Aspects of HRM

  • Focuses on people within the organization.
  • Applies management principles to procure, develop, and maintain personnel.
  • HR decisions influence organizational effectiveness, customer service, and product quality.

Personnel Management

  • Obtaining, using, and maintaining a satisfied workforce.
  • Manages the general employee-employer relationship.
  • Promotes employees' contributions to achieve enterprise goals.

HRM vs. Personnel Management: Key Differences

  • Employment Contract:
    • Personnel Mgt: Careful dimension of written contract.
    • Human Resource Mgt: Aims to go beyond the contract.
  • Rules:
    • Personnel Mgt: Importance of devising clear rules.
    • Human Resource Mgt: Impatience with rules.
  • Guide to Management Action:
    • Personnel Mgt: Procedures.
    • Human Resource Mgt: Business needs.
  • Behavior Referral:
    • Personnel Mgt: Norms, customs, and practices.
    • Human Resource Mgt: Values/Mission.
  • Managerial Task:
    • Personnel Mgt: Monitoring.
    • Human Resource Mgt: Nurturing.
  • Key Relations:
    • Personnel Mgt: Labor.
    • Human Resource Mgt: Customer.
  • Initiatives:
    • Personnel Mgt: Piecemeal.
    • Human Resource Mgt: Integrated.
  • Speed:
    • Personnel Mgt: Slow.
    • Human Resource Mgt: Fast.
  • Management Role:
    • Personnel Mgt: Transactional.
    • Human Resource Mgt: Transformational.
  • Communication:
    • Personnel Mgt: Indirect.
    • Human Resource Mgt: Direct.
  • Managerial Skills:
    • Personnel Mgt: Negotiation.
    • Human Resource Mgt: Facilitation.
  • Selection:
    • Personnel Mgt: Separate.
    • Human Resource Mgt: Integrated.
  • Pay:
    • Personnel Mgt: Job Evaluation.
    • Human Resource Mgt: Performance-related.
  • Labor Management:
    • Personnel Mgt: Collective bargaining contracts.
    • Human Resource Mgt: Individual contracts.
  • Job Design:
    • Personnel Mgt: Division of labor.
    • Human Resource Mgt: Teamwork.
  • Training & Development:
    • Personnel Mgt: Controlled course.
    • Human Resource Mgt: Learning organization.
  • Shared Interest:
    • Personnel Mgt: Organization interest uppermost.
    • Human Resource Mgt: Mutuality of interests.
  • Conflict Handling:
    • Personnel Mgt: Temporary.
    • Human Resource Mgt: Climate and culture.
  • Focus of Attention:
    • Personnel Mgt: Personnel procedures.
    • Human Resource Mgt: Cultural and structural strategies.

Core aspects of HRM

  • All-encompassing.
  • Includes human resource development.
  • Proactive and change-oriented.
  • Requires different competencies than traditional personnel functions.

Importance of HRM

  • Hiring the right people for the job.
  • Ensuring low attrition rate.
  • Ensuring people perform at their best.
  • Saving time by avoiding useless interviews.
  • Avoiding legal actions for discrimination.
  • Complying with safety laws.
  • Ensuring equity in salary.
  • Providing effective training.
  • Avoiding unfair labor practices.

HR Department Responsibilities

  1. Planning for staff needs.
  2. Recruitment and hiring.
  3. Training and development.
  4. Appraising performance.
  5. Administering compensation and benefits.
  6. Overseeing changes in employment status.

Human Resource Management Process

  1. Human Resource Planning.
  2. Recruitment.
  3. Selection.
  4. Orientation (Induction/socialization).
  5. Training and Development.
  6. Performance Appraisal.
  7. Promotion, transfers, demotion, and separation.

Human Resource Planning

  • Forecasting a firm’s future demand for and supply of the right type of people in the right number.
  • Ensuring the right personnel are capable of completing tasks that help the organization achieve its goals.
  • Planning for future personnel needs, considering internal and external factors.

Importance of Human Resource Planning

  • Planning for future human resource needs.
  • Aids in strategic planning.
  • Creating highly talented personnel.
  • Supporting global strategies.
  • Foundation of personnel function.
  • Increasing involvement in human resources.
  • Reducing resistance to change.

Basic Procedure for HR Planning

  • Planning for future needs and balance.
  • Planning for recruitment/selection/layoff.
  • Planning for staff development.
  • Evaluation of job requirements: job description (tasks) and job specification (personality).

Factors Affecting HR Planning

  • Type and strategy of organization.
  • Organizational growth cycle and planning.
  • Environmental uncertainty.
  • Time horizon.
  • Type and quality of forecasting information.
  • Nature of jobs being filled.
  • Outsourcing.

Forecasting Techniques

  • Ratio Analysis.
  • Regression Analysis.
  • Work study Techniques.
  • Delphi Technique.
  • Managerial judgments.

HR Supply Forecast

  • Existing Human Resources
    • Internal Source of Supply
    • External Source of Supply

Job Analysis

  • Studying and collecting information related to the operational responsibilities of a specific job.
  • Results in job descriptions and job specifications.

Job Analysis Involves

  1. Collecting and recording job information.
  2. Checking job information for accuracy.
  3. Writing job descriptions based on the information.
  4. Using the information to determine required skills, abilities, and knowledge.
  5. Updating the information periodically.

Job Description and Job Specification

  • Job Description:
    • List of job duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities.
  • Job Specification:
    • List of job’s “human requirements” (education, skills, personality).

Expansion of Job Analysis

  • Job Description:
    • Job Title
    • Location
    • Job Summary
    • Duties
    • Supervision
    • Working Condition
    • Hazards
  • Job Specification:
    • Education
    • Experience
    • Training
    • Initiative
    • Physical Effort
    • Responsibility
    • Communication Skills
    • Emotional Characteristics

Use of Job Analysis Information

  • Recruitment and Selection
  • Career Planning
  • Performance Appraisal
  • Health and Safety
  • Salary and Wages
  • Employee Discipline
  • Training & Development

Recruitment

  • Finding and attracting capable applicants for employment.
  • Begins when new recruits are sought and ends when their applications are submitted.
  • Developing a pool of job candidates in line with the human resource plan.
  • Candidates are identified through advertisements, employment agencies, word of mouth, and campus visits.

Sources of Recruitment

  1. Internal
  2. External
    • Organization's ability to recruit depends on reputation, attractiveness of location, and job offer.

Factors Governing Recruitment

  • External Factors:
    • Supply and demand.
    • Unemployment rate.
    • Labor market.
    • Political.
    • Social.
    • Image.
  • Internal Factors:
    • Recruitment policy.
    • Human resource plan.
    • Size of firm.
    • Cost.
    • Growth.

Equal Employment and Affirmative Action

  • Civil Rights Movement.
  • Women’s Movement.
    • Equal Pay Act of 1964 prohibits discrimination based on sex.
    • Compatible worth defines a candidate's suitability for a position.

Selection

  • Differentiating between applicants to identify those with a greater likelihood of success.
  • Selecting a candidate with the right combination of education, experience, attitude, and creativity is important.

Process of Selection

  • Using application forms, resumes, interviews, employment and skills tests, and references to screen candidates.
  • Merit-based criteria are used.

Basic Testing Concepts

  • General tests to determine applicant’s:
    • Ability: Performance determination.
    • Aptitude: Potential to learn.
    • Personality: Motivation in a working environment.
    • Interest: Activity preference.

Interviews

  • Formal in-depth conversation to evaluate applicant’s acceptability.
  • Two-way exchange of information.
  • Organization decides whether to make a job offer, and the candidate decides whether to accept it.

Objective of Interview

  • Obtain additional information.
  • Provide general information to the applicant.
  • Help build the organization's image.

Orientation (Socialization)

  • Helping selected individuals fit smoothly into the organization.
  • Introducing new comers to colleagues, responsibilities, and the organization’s cultures, policies, and expectations.
  • Providing employees with information needed to function comfortably and effectively.

Training and Development

  • Increasing employees' abilities to contribute to organizational effectiveness.
  • Training aims to improve skills on the current job.
  • Development programs prepare employees for promotion.

Need for Training and Development

  • To improve three types of skills:
    1. Technical
    2. Interpersonal
    3. Problem-solving

Approaches to Determining Training Needs

  1. Performance Appraisal
  2. Analysis of Job Requirement
  3. Organizational Analysis
  4. Survey of human resources- problematic

Training Methods

  1. On the Job Training
    • Job rotation
    • Internship (job and classroom)
    • Apprenticeship
  2. Off the Job Training
    • Seminars
    • Lectures
    • Computer Assisted Instructions

Performance Appraisal

  • Compares an individual’s job performance to standards or objectives.
  • Low performance may lead to corrective action.
  • High performance may merit a reward.
  • Based on job analysis, job description, and job specification.

Appraisal Approaches

  • Superior rating subordinates.
  • Group of superiors rating subordinates.
  • Group of peers rating a colleague.
  • Subordinates rating bosses.
  • Problems include shifting standards, rate bias, different rate patterns, and halo effect.

Compensation and Benefits

  • Should be fair, effective, and appropriate.
  • Attract and retain high-performing employees.
  • Impact strategic performance.
  • Reflect contribution to organizational objectives.

Factors that Influence Compensation and Benefits

  • Employee’s tenure and performance.
  • Kind of job performed (level of skills).
  • Kind of business.
  • Unionizable.
  • Labor or capital intensive.
  • Management philosophy.
  • Geographic location.
  • Company profitability.
  • Size of company.

Promotions, Transfers, Demotions and Separations

  • Reflect an employee’s value to the organization.
  • High performers may be promoted or transferred.
  • Low performers may be demoted, transferred, or separated.
  • These options affect human resource planning.