Unit 4 Notes
Unit 4 Notes
Unit 4 Notes
1. Societal Objectives:
Since an organisation is part of the society the main objective of HRM is to
be responsive to the needs and challenges of society.
HRM’s societal objectives include:
i) To provide more employment oppurtunities.
ii) To provide maximum productivity.
iii) To provide material and mental satisfaction to workforce.
iv) To control the wastage of effort.
v) To help help to maintain ethical policies and socially responsible
behaviour.
vi) To encourage healthy human relations and social welfare.
vii) To manage change to the mutual advantage of individuals, groups ,the
enterprise and the public
2. Organisational Objectives :
These objectives of HRM are based on the fact that human resource
management exists to contribute to organisational effectiveness.
HRM’s organisational objectives include:
i) To help the organisation to reach its goals.
ii) To efficiently employ the skills and abilities of the workforce.
iii) To provide well-trained and well-motivated employees to the
organisation.
iv) To develop and maintain a quality of work life that makes employment
in the organisation desirable.
v) To communicate HRM policies to all employees.
3. Personal (or employees) Objectives :
The another important objective of HRM is to assist employees in
achieving their personal goals.
HRM’s Personal objective include:
i) To provide adequate remuneration to the employees.
ii) To provide job security
iii) To provide Facilities for proper Training and Development.
iv) To increase the employees’s job satisfaction and self-actualisation.
v) To provide congenial working environment.
4. Labour Union Objectives :
The HRM is also concerned with labour unions and related issues.
HRM’s labour union related objectives include:
i) To recognise the labour unions.
ii) To establish the personnel policies in consultation with unions.
iii) To create congenial atmosphere with unions so as to maintain the spirit
of self-discipline and co-operation with the management.
1. HRM Activities/Functions:
a)Organisational Planning and Development:
Determination of needs of the organisation based on long and short
term objectives, technology selected, product feature and external
environment.
Design of organisational structure.
Establishing a healthy organisational climate of mutual co-
operation, trust and confidence.
b) Strategic Human Resource Planning
Assessing current human resources.
Assessing future human resources needs
Developing a program to meet the future needs.
c) Job Analysis
It is an assessment that defines jobs and the behaviour necessary
to perform them.
Preparation of Job descriptions and job specifications.
d) Staffing
It concerns the recruitment and selection of human resources
for an organisation.
It includes: Man power planning, Recruitment, Selection and
Placement,Induction,Promotion and Transfer and Seperation
e) Training and Development
It includes:
1. Orientation of new employees
2. Training of employees to perform their jobs.
3. Retraining of employees as their job requirements change .
4. Encouraging the development and growth of employees.
f) Performance Appraisal:
It assesses how well employees are doing their jobs.
Appraisals are useful:
i) In making compensation decisions
ii) In specifying areas in which additional development of
employees is needed.
Iii)In making Placement decisions.
g) Compensation Benefits:
Compensation rewards people through pay, incentives
and benefits for performing work within the
organisation.
Organisations must develop and refine their basic wage
and salary to ensure that pay-for-performance policies
are followed.
h) Health and Safety:
Organisations should be more responsive to the concerns about the
physical and mental health and safety of employees.
Organisation should provide safer and healthy workshop conditions
for employees.
i)Employee Relations:
The formal relationship between employees and their employers
must be managed for the benefit of both.
To facilitate good employee relations, it is important to develop
and communicate HR policies and rules.
j) Union Relations:
Union-related activities are important because they affect
employees, managers, and the performance of many HR
activities.
At the formal organisation level, the union is the agent
representing a group of employees in an organisation.
The other activities of union include collective bargaining and
grievance management.
1.Collect Information:
The first step in any form of HR planning is to collect information. A plan or a forecast
cannot be any better than the data on which it is based.
Figure 1.3 Human Resource Planning Process Model
2. Statistical Techniques:
A. Internal Sources:
1. Present Employees:
Promotions and transfers from among the present employees can be a good source of
higher status, pay and responsibilities. Promotion from among the present employees is
advanta-geous because the employees promoted are well acquainted with the
Promotion from among present employees also reduces the require-ment for job
training. However, the disadvantage lies in limiting the choice to a few people and
denying hiring of outsiders who may be better qualified and skilled. Furthermore,
promotion from among present employees also results in inbreeding which creates
frustration among those not promoted. Transfer refers to shifting an employee from one
job to another without any change in the position/post, status and responsibilities. The
need for transfer is felt to provide employees a broader and varied base which is
considered necessary for promotions. Job rotation, involves transfer of employees from
2. Former Employees:
Former employees are another source of applicants for vacancies to be filled up in the
company to work on a part-time basis. Similarly, some former employees who left the
organisation for any reason may again be interested to come back to work. This source
has the advantage of hiring people whose performance is already known to the
organisation.
3. Employee Referrals:
This is yet another internal source of recruitment. The existing employ-ees refer their
family members, friends and relatives to the company as potential candidates for the
vacancies to be filled up in the organisation. This source serves as one of the most
those potential candidates who meet the company requirements known to them from
their own experience. The referred individuals are expected to be similar in type in terms
of race and sex, for example, to those who are already working in the organisation.
4. Previous Applicants:
This is considered as internal source in the sense that applications from the potential
candidates are already lying with the organisation. Sometimes, the organisations contact
through mail or messenger these applicants to fill up the vacancies particularly for
B. External Sources:
External sources of recruitment lie outside the organisation. These outnumber internal
sources.
1. Employment Exchanges:
The National Commission on Labour (1969) observed in its report that in the pre-
Independence era, the main source of labour was rural areas surrounding the industries.
In response to it, the compulsory Notification of Vacancies Act of 1959 (commonly called
Employment Exchange Act) was instituted which became operative in 1960. Under
Section 4 of the Act, it is obligatory for all industrial establishments having 25 workers or
more, to notify the nearest employment exchange of vacancies (with certain exceptions)
The main functions of these employment exchanges with their branches in most cities are
registration of job seekers and their placement in the notified vacancies. It is obligatory
for the employer to inform the outcome of selection within 15 days to the employment
exchange.
country also revealed that recruitment through employment exchanges was most
2.Employment Agencies:
Generally, these agencies select personnel for supervisory and higher levels. The main
function of these agencies is to invite applications and short list the suitable candidates
for the organisation. Of course, the final decision on selection is taken by the
representatives of the organisation. At best, the representatives of the employment
agencies may also sit on the panel for final selection of the candidates
3.Advertisement:
Advertisement is perhaps the most widely used method for generating many
applications. This is because its reach is very high. This method of recruitment can be
used for jobs like clerical, technical and managerial. The higher the position in the
organisation, the more specialized the skills or the shorter the supply of that resource
in the labour market, the more widely dispersed the advertisements is likely to be.
For example, the search for a top executive might include advertise-ments in a
4. Professional Associations:
Very often, recruitment for certain professional and technical positions is made through
services for their members. For this, the professional associations prepare either list of
their members. The professional associations are particularly useful for attracting highly
skilled and professional personnel. However, in India, this is not a very common practice
and those few that provide such kind of service have not been able to generating a large
number of applications.
5. Campus Recruitment:
phenomenon particularly in the American organisations, it has made its mark rather
recently Of late, some organisations such as HLL, HCL. L &T, Citi Bank, ANZ Grindlays,
Motorola, Reliance etc., in India have started visiting educational and training
Ex-amples of such campuses are the Indian Institutes of Management, Indian Institutes
purpose, many institutes have regular placement cells/offices to serve as liaison between
the employers and the students. Tezpur Central University has, for example, one Deputy
Director (Training and Placement) for the purposes of campus recruitment and
placement.
organisations. First, the most of the candidates are available at one place; Second, the
interviews are arranged at short notice; third, the teaching faculty is also met; and Fourth,
it gives them opportunity to sell the organisation to a large student body who would be
graduating subsequently. However, the disadvantages of this type of recruitment are that
organisations have to limit their selection to only “entry” positions and they interview the
6. Deputation:
organisation for a short duration of two to three years. This method of recruitment is
organisation does not have to incur the initial cost of induction and training.
However, the disadvantage associated with deputation is that the deputa-tion period of
two/three years is not long enough for the deputed employee to prove his/her mettle, on
the one hand, and develop commitment with the organisation to become part of it, on the
other.
7. Word-of-Mouth:
this method, the word is passed around the possible vacancies or openings in the
pinching” i.e., the employees working in another organisation are offered an attractive
offer by the rival organisations. This method is economic, both in terms of time and
money.
Some organisations maintain a file of the applications and bio-data sent by job-seekers.
These files serve as very handy as and when there is vacancy in the organisation. The
advantage of this method is no cost involved in recruitment. However, the drawbacks of
this method of recruitment are non-availability of the candidate when needed and the
8. Raiding or Poaching:
Raiding or poaching is another method of recruitment whereby the rival firms by offering
better terms and conditions, try to attract qualified employees to join them. This raiding
of pilots from the Indian Airlines to join private air taxi operators. Whatever may be the
means used to raid rival firms for potential candidates, it is often seen as an unethical
practice and not openly talked about. In fact, raiding has become a challenge for the
human resource manager. Besides these, walk-ins, contractors, radio and television,
acquisitions and mergers, etc., are some other sources of recruitment used by
organisations.