HUMAN RESOURCE

MANAGEMENT

- MINZA KHAN
 The big difference
between these terms

Personnel,

Manpower,

Human Resources

and human resource Development

 Why Human Factor is More
Important?
• Human resources are unique in character
• HR alone can produce an output greater than its input
• HR is the only resource which are animate
• HR is most complex and unpredictable in its behavior
• This is the only resource which appreciates in its value
with the passage of time.
 Meaning and Definition
• Personnel Management is that part of the
management function which is primarily
concerned with human relationships within
in organization. Its objective is the
maintenance of those relationships on a
basis which, by consideration of the well-
being of the individual, enables all those
engaged in the undertaking to make their
maximum personal contribution in the
effective working of the undertaking.”
“Therefore, personnel management is the
planning, organizing, directing, and
controlling of the performance of those
operatives functions”.
 Objectives and scope of HRM
• To effective utilization of the human resources
• To establish and maintain an organizational structure
• To secure integration to the individuals and
organization by reconciling individual group goals
• To generates maximum development of individuals
groups
• To recognize and satisfy individual needs and group
goals
• To maintain high morale and better human relations
• To develop and maintain a quality of work life
• To establish and maintain productive self-respecting
working relationships
 Features of HRM
• Comprehensive • Interdisciplinary
Function • Nervous system.
• People-Oriented • Young discipline
• Action Oriented • Future-oriented
• Individual Oriented • Challenging Function
• Development Oriented • Science as well an Art
• Pervasive Function • Staff function
• Continuous Function
 Functions of HRM
• I. Managerial • II. Operative
Functions: Functions:
• a. Planning • a. Procurement
• b. Organizing • b. Development
• C. Directing • c. Compensation
• d. Controlling. • d. Integration
• e. Maintenance
What Is Strategic Management?
• Strategic Management
– The ongoing process companies use to
form a vision, analyze their external
environment and their internal
environment, and select one or more
strategies to use to create value for
customers and other stakeholders,
especially shareholders
• Vision
– Contains at least two components—a
mission that describes the firm’s DNA and
the “picture” of the firm as it hopes to
exist in a future time period.
 Parts of Strategic
Management
• Strategy
– An action plan designed to move an
organization toward achievement of its
vision
• Mission
– Defines the firm’s core intent and the
business or businesses in which it intends to
operate
 The Strategic Environment

• Internal Environment
– The set of conditions (such as
strengths, resources and capabilities,
and so forth) inside the firm affecting
the choice and use of strategies
• External Environment
– A set of conditions outside the firm that
affect the firm’s performance
 Vision and Mission Statements
• Vision Statements
• McDonald’s
To give each customer, every time, an experience that sets new
standards in value, service, friendliness, and quality.
• NASDAQ
To build the world’s first truly global securities market . . . A
worldwide market of markets built on a worldwide network of
networks . . . linking pools of liquidity and connecting investors
from all over the world . . . assuring the best possible price for
securities at the lowest possible cost.
• Petsmart
To be the premier organization in nurturing and enriching the
bond between people and animals.
• Wachovia
Wachovia’s vision is to be the best, most trusted and admired
financial services company.
 Mission statements contd…
• Mission Statements
• Bristol-Myers Squibb
Our mission is to extend and enhance human life by
providing the highest-quality pharmaceuticals and
health care products.
• GlaxoSmithKline
GSK’s mission is to improve the quality of human life by
enabling people to do more, feel better and live longer.
• Merck
The mission of Merck is to provide society with superior
products and services by developing innovations and
solutions that improve the quality of life and satisfy
customer needs, and to provide employees with
meaningful work and advancement opportunities, and
investors with a superior rate of return.
• Wipro
The mission is to be a full-service, global outsourcing
company.
HUMAN RESOURCE PLANNING
• Definition: It is the process by which management
determines how an organisation should move from its
current manpower position to its desired manpower
position. Through it management strives to have the
right number and the right kind of people at the right
places, at the right time, doing things which result in
both the organisation, and the individual receiving,
maximum long-rang benefit”
 Objectives of HRP
• To ensure optimum use • To estimate cost of Hr and
of existing HR Housing needs of
• To forecast future Employees
requirements for HR • To provide a basis for MDP
• To provide control • To facilitate productivity
measures Bargaining
• To link HRP with • To meet the needs of
Organisational Expansion and
Planning Diversification programmes
• To determine levels of • To assess shortage and
Recruitment and surplus of Hr
Training
 Process of HRP
• 1. Analyzing Organizational
Plans
• 2. Forecasting Demand for HR
• 3. Forecasting supply of HR
• 4. Estimating Manpower Gaps
• 5. Action Planning
• 6. Monitoring and Control
 IMP QUESTIONS
• 1.What are the challenges of HR
Executives in the present day business
scenario?
• 2. State essential qualities of Successful HR
Manager?
• 3. Draw an organizational chart of an MNC
known to you and state whether HR function
line or Staff function.
 Job Analysis

• Job analysis is a formal and detailed

study of jobs
• It refers to a scientific and systematic
analysis of a job in order to obtain all
pertinent facts about the job
• It is essentially a process of collecting
and analyzing all pertinent data relating
to a job
 Objectives of Job Analysis
• Job Redesign
• Work Standards
• Recruitment
• Selection
• Training
• Performance appraisal
• Job evaluation
• Safety
 Benefits of Job Analysis
• 1. Organizational • 6. Performance
Design Appraisal
• 2. Human Resource • 7. Career Path
planning
Planning
• 8. Job Design
• 3. Recruitment and
• 9. Job Evaluation
Selection
• 10 Labour Relation
• 4. Placement and
• 11. Employee
Orientation Counselling
• 5. Training and • 12. Health and
Development Safety
The process of Job Analysis
• 1. Organisational • 5. Understand Job
Analysis Design
• 2. Organising Job
Analysis Programme • 6. Collection of
• 3. Deciding the uses of Data
Job Analysis • 7. Developing a Job
Information Description
• 4. Selecting
• 8. Preparing a Job
Representative Jobs
for analysis Specification
 Techniques of Job Analysis
• 1. Job Performance
• 2. Personal Observation
• 3. Interview
• 4. Questionnaire
• 5. Critical Incidents
• 6. Log Records
 Differentiate between Job
Description and Job Specification
• Job Description is a • Job specification is a
functional description of statement of the
what the job entails. minimum acceptable
And define the purpose human qualities
and scope of a job. It is required for the proper
a written record it performance of a job.
contains title, location, • It includes physical,
duties, responsibilities, mental, social,
working conditions, psychological and
hazards and relationship behavioral
with other jobs. characteristics of a
person
 Job Evaluation
• Job evaluation is “the process of analysis
and assessment of jobs to ascertain
reliably their relative worth using the
assessment as the basis for a balanced
wage structure”
• Job evaluation begins with job analysis
and ends up with the classification of jobs
according to their worth. A job cannot be
evaluated unless and until it is analyzed.
 Objectives of Job evaluation
• 1. To Determine equitable wage differentials
between different jobs in the organization
• 2. To eliminate wage inequities
• 3.To develop a consistent wage policy
• 4. To provide a framework for periodic review
and revision of wages
• 5. To provide a basis for wage negotiations
• 6. To enable management to gauge and control
the payroll costs
• 7. To minimize wage descriptions on the basis of
age, sex, caste, region, religion , creed etc
 Methods of Job Evaluation
• Job Evaluation can be classified in to
two categories
• 1. Non-quantitative methods:
– a. Ranking or Job Comparison
– b. Grading or Job Classification
• 2. Quantitative methods:
– a. Point Rating
– B. Factor Comparison
 Recruitment
• What is Recruitment?
• What is Procurement?
• The Difference Between Recruitment and
Selection and Placement.
• Why Recruitment is more important for an
organization?
• How not to recruit employees in the
organization?
• General Factors affecting Recruitment:
The sources of Recruitment
• Internal • External Sources
Sources • 1. Press Advertisements
• 1. Transfers • 2. Educational Institutions
• 3.Placement Agencies
• 2. Promotions
• 4.Employment Exchanges
• 5.Labour Contractors
• 6.Unsolicited Applicants
• 7.Recommendations
• 8.Recruitment at Factory
gate
• 9. Online
 Recruitment Process
• Steps in Recruitment Process:
• 1. Requisitions for recruitment from other
department
• 2. Locating and Developing the sources of
Required number and type of employees
• 3. Identifying the prospective employees
with required characteristics
• 4. Communicating the information about the
organization, the job and the terms of
conditions of service.
• 5. Encourage the identified candidates to
apply for jobs
In the organization.
• 6. Evaluating the effectiveness of recruitment
process.
 What is Selection?
• Selection is the process of choosing the most
suitable persons out of all the applicants.
• Selection is a process of matching the
qualifications of applicants with the job
requirements.
• It is the process of weeding out unsuitable
candidates and finally identify the most suitable
candidate.
• The purpose of Selection is to pick up the right
person for every job.
• Selection is negative process as it rejects a large
number of unsuitable applicants from the pool.
 Methods of Selection
• (a) Tests: • 3. Personality
• 1. Aptitude Tests: Tests:
– Mental or – Objective test
Intelligence test – Projective test
– Mechanical test
– Situation test
– Psycho-motor test
• 2. Achievement Tests: • 4. Interest Tests:
- Job Knowledge test • Continued…
- Work sample test
 Methods of Selection (continued)
(b) Interviews
1. Informal Interview
2. Formal Interview
3. Patterned or Structured Interview
4. Non-Directed or Unstructured Interview
5. Depth Interview
6. Group Interview
7. Stress Interview
8. Panel or Board Interview
 Selection Process…
• 1. Preliminary Interview
• 2. Application Blank
• 3. Selection Test
• 4. Employment Interview
• 5.Medical Examination
• 6.Reference Checks
• 7. Final Approval
 Induction/Orientation
• Definition: “Orientation or induction
is the process of receiving and
welcoming an employee when he first
joins a company and giving in the
basic information he needs to settle
down quickly and happily and start
work”.
• Objectives and Advantages of an
Induction programme.
 Advantages and Objectives of an
Orientation programme
• Objectives: • Advantages:
• 1. To help the new come to • It helps to build two way
overcome his shyness communication
• To build new employee’s • It facilitates informal relations
and team work
confidence • Induction is helpful in supplying
• To develop the new entrants a information about the
sense of belonging and loyalty organisation, job, and welfare of
employees
• To foster a close and cordial • Proper Induction will reduce
relationship… employees grievances,
• To prevent false impression absenteeism and labour turnover
and negative attitude of the • Induction helps to develop good
new employees public relations and improve the
overall morale of employees
• To give the new comers • An Induction programme proves
necessary information like that the company is taking a
canteen, locker room. Rest sincere interest in getting him off
periods and leave rules etc… to a good start
 Contents of an Induction programme:
• Brief history and operations of the company.
• Products and services of the company.
• The company’s organization structure.
• Location of departments and employee facilities.
• Policies and procedures of the company.
• Rules, regulations and daily work routines.
• Grievance procedures.
• Safety measures
• Standing orders and disciplinary procedures
• Terms and conditions of service including wages, working hours,
over time, holidays etc.
• Suggestion schemes
• Benefits and services for employees.
• Opportunities for training and promotions transfers etc.
 Employer Investment on People
• A country can develop only when its human
resources are developed through health,
nutrition, education, training and research.
At the Organisational level, employee
training and executive development are
main areas of human resource development.
• The subtle differences between Training,
Development and Education
 Why Training is needed?
• To familiarize the employee with the company’s
culture
• To increase the employee’s quantity and quality of
output
• To enable the employee to do new jobs and prevent of
his old skills become obsolete
• To prepare the employee for promotion to higher jobs
• To reduce supervision, wastage and accidents
• To build second line workers
 Importance of Training
• 1. Higher productivity
• 2. Better quality of work
• 3. Less learning period
• 4. Cost Reduction
• 5. Reduced supervision
• 6. Low accident rate
• 7. High morale
• 8. Personal Growth
• 9. Organizational Climate
 Steps in Training Programme
• 1. Identifying Training Needs- Present
Performance – Desired Performance
(Accepted Level of Performance)
• 2. Setting Training Objectives and Policy
• 3.Designing Training Programme
• 4. Conducting the Training
• 5. Follow up and Evaluation
 IMP QUESTIONS
• 1. State essential qualities of Successful
Recruitment Advertisement. And also state how
will you spell out Job specification and job
description briefly in the AD itself.
2. How will you carry out training need analysis
for a medium sized organization?
3. If you are HR Executive of an MNC, How will
you retain employees in your organization?
 PROMOTION
• Promotion refers to advancement of an
employee to a higher post carrying greater
responsibilities, higher status and better
salary. It is the upward movement of an
employee in the organization's hierarchy,
to another job commanding greater
authority, higher status and better
working standards.
 Transfer
A transfer refers to a horizontal or lateral
movement of an employee from one job to
another in the same organization without any
significant changes status and pay. It has been
defined as “ lateral shift causing movement of
individuals from one position to another usually
without involving any marked change in duties,
responsibilities, skills needed or compensation”
 Need and purpose of Transfers

• 1. To meet organizational needs

• 2. To satisfy employee Needs
• 3. To better utilization of Employees
• 4. To make the Employee More versatile
• 5. To adjust the work force
• 6. To provide Relief
• 7. To Punish Employees
 Types of Transfers

• 1. Production Transfer
• 2. Replacement Transfer
• 3. Versatility Transfer
• 4. Remedial Transfer
• 5. Shift Transfer
 Demotion
• Demotion implies the assignment of an
employee to a job of lower rank with lower
pay. It refers to downward movement pf an
employee in the organizational hierarchy
with lower status and lower salary.
• It is downgrading process and a serious type
of Punishment, hence it should be used
tactfully and only when it is absolutely
necessary.
 Need for Demotion:
Why and When
• 1. Adverse Business Conditions
• 2. Incompetence
• 3. Technological Change
• 4. Disciplinary Measure.
 Seperations
• Separation of an employee takes place when
his service agreement with the organisation
come to an end and the employee the
organisation. It may occur due to
resignation, death, dismissal and layoff.
Following are various forms of separations.
• Resignation
Retirement Layoff
Retrenchment
Dismissal
 Wage and Salary Administration
(WASA)
• Objectives of WASA:
• 1. To establish a fair and equitable
remuneration
• 2. To attract competent personnel
• 3. To retain the present employees
• 4. To improve productivity
• 5. To control Costs
• 6. To improve union management relations
• 7. To improve the public image of the
company
 Essentials of sound wage
and Salary structure
• 1. Internal Equity
• 2.External Competitiveness
• 3. Built in incentive
• 4. Link with productivity
• 5. Maintain Real Wages
• 6. Increments
 General and Individual
Factors affecting Wages
• General Factors • Individual Factors
• 1. Demand for and • 1. Employee’s Age and
Supply of labour work Experience
• 2. Ability to pay of the • 2. Educational Qualification
Organization • 3. Promotion possibilities
• 3. Labour Unions • 4.Hazards involved in the
• 4. Cost of Living job
• 5. Prevailing wage rates • 5. Stability of Employment
• 6. Job Requirements • 6.Demand for the product
• 7. Productivity • 7.Industry’s role in the
• 8. State Regulation economy
• 8.Potentials of an employee
Methods of Wage Payment

•1. Time Wage system

•2. Piece Wage system
 IMP QUESTIONS
• 1.What are the Precautions a manager
should have while go for Demotion of an
employee?
• 2. Determining Wage structure is a
cumbersome process and it requires lot more
knowledge and thinking- discuss
• 3. If you are an owner of the production unit
of a retail product which method would you
adopt for payment of wages?
 Industrial Relations
• Industrial Relations are exercises in
organizational relations between functional
interest groups.
• According to ILO, IR comprise relationships
between the State on the one hand and the
employers’ and organizations on the other and
the occupational organizations themselves.
• It means Collective relationship between
management, employees and government in
any industrial or non-industrial organization
Objectives and Importance of IR
• To Develop and maintain harmonious relationship
between management and labour
• To safeguard the interests of labour
• To establish and maintain industrial Democracy
• To avoid all form of industrial conflict so as to
ensure industrial peace
• To raise productivity and reduce high labour
turnover
• To bring about Government control over such
industrial units
• To ensure a healthy and balanced social order
through recognition of human rights by way of
trade unionism
 Causes and Effects of
poor Industrial Relations
•
• Multiplier Effects
Economic Causes
• Fall in normal
• Organizational
Tempo
Causes • Resistance to Change
• Psychological Causes • Frustration and
• Social Causes Social cost
• Political Causes
 Remedies to Improve
Industrial Relations
• General Guidelines:
• 1. Sound personnel polices
• 2.Constructive Attitudes
• 3. Collective Bargaining
• 4. Participative Management
• 5. Responsible Unions
• 6. Employee Welfare
• 7. Effective Grievance Procedure
 Remedies to Improve
Industrial Relations
• Specific Guidelines:
• Both Management and Union should Develop trust and
positive attitude towards each other.
• All basic policies and procedures Relating to Industrial
Relations should be clear to every body in the
organization and the Union Leaders
• The personnel manager should remove any distrust by
convincing the union of the company’s integrity and his
own sincerity and Honesty.
• Management should encourage right kind of Union
Leadership
• After the settlement is reached should be properly
administered.
 Meaning and Definition
of Grievances
• Broadly speaking Grievance means any real or
imaginary feeling of dissatisfaction and
injustice which an employee has about his
employment relationship.
• According to Michael J Jucious, “ a grievance
is any discontent or dissatisfaction, whether
expressed or not, whether valid or not, arising
out of anything connected with the company
that an employee thinks, believes or even
feels, is unfair,unjust or inequitable”
 Causes of Grievances
• 1. Grievances arising out of Working
Conditions
• 2. Grievances arising from
Management policy
• 3. Grievances arising from Alleged
violation of certain statutes…
• 4. Grievances arising out of Personal
Maladjustment
 Understanding Employee
Grievances
• 1. Exit Interview • Effects of Grievances
• 1. Indiscipline
• 2. Opinion Surveys • Low morale and decreased
productivity
• 3. Gripe Boxes • High Absenteeism and
• 4. Open Door turnover
• Loss of faith in management
Policy • Increase in accidents
• Formation of cliques
• Lowering of public image of
the organization
 Standard Grievance Procedure
(ILC)
• Follow only standard procedure ( a
voluntary Grievance procedure) in
pursuance to the Code of Discipline
adopted in the 16th session Indian Labour
Conference in 1958. It contains Five
successive time bound steps each leading
to the next in case the aggrieved
employee prefers an appeal.
Essentials of Sound Grievance Procedure
• 1. Legal Sanctity
• 2. Acceptability
• 3. Promptness
• 4. Simplicity
• 5. Training
• 6.Follow-up
 IMP QUESTIONS
• How Political parties influence industrial
relations Sean in India? How will you
alleviate political influence in the Industry?
• 2. Rust is the worst foe of Iron similarly
Frustration is the worst opponent of human
being. Do you agree. Highlight the evil effects
of Grievances on ordinary Industrial worker.
• 3. Draw a suitable grievance redress procedure
for a medium sized manufacturing
organisation.
 Meaning and Definition of
Performance Appraisal
• Performance appraisal or performance evaluation is
the process of assessing the performance and progress
of an employee or of a group of employees on a given
job and his potential for future development.
• According to Flippo, “ Performance appraisal is the
systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his
present job and his potential for a better job”
• Difference between Merit-rating and Performance
Appraisal
• Present appraisal systems in practice- 360 degree…
 The process of Performance Appraisal
• 1. Establishing Performance Standards
• 2. Communicating the Standards
• 3. Measuring Performance
• 4. Comparing the actual standards with
the Standards
• 5. Discussing the Appraisal
• 6. Taking Corrective Actions
 Methods of Performance Appraisal
• Traditional Methods: • Modern Methods:
• 1. Confidential Report • 1. Assessment
• 2. Free Form or Essay Centre
• 3. Straight Ranking • 2. Human Resource
• 4. Paired Comparisons Accounting
• 5. Forced Distribution
• 3. Behaviorally
• 6. Graphic Rating Scales
Anchored Rating
• 7. Checklist Method
Scales
• 8. Critical Incidents
• 4. Appraisal through
• 9. Group Appraisal
MBO.
• 10. Field Review
 Essentials of an Effective Appraisal System

1. Mutual Trust 6.Documentation

2.Clear Objectives 7. Feedback and
3.Standardisation
Participation
4.Training
8. Individual differences
5.Job Relatedness
9. Post appraisal
Interview
10. Review and Appeal
 Workers’ Participation in Management
• According Keith Davis Participation refers to
“the mental and emotional involvement of a
person in a group situation which encourages
him to contribute to group goals and share
in the responsibility of achieving them”
• It is a process by which authority and
responsibility of managing industry are shared
with workers
• In Yugoslavia it is called self-management
• In Germany it is known as Co-determination
In the words of Mehtras, “ the concept
of participation as a principle of
democratic administration in an
industry implies a share by rank and
file in the decision-making process of
an industrial organization through their
representatives at all the appropriate
levels of management in the entire
range of managerial action”
 Objectives of Workers
participation in management
• 1. Democratic right to
1. Economic influence the managerial
decisions
objective • 2. Raise worker’ level of
2. Social motivation and
commitment
Objective • 3.Cross-fertilisation and
3. Psychological speedy
ideas
communication of
Objective • Foster better co-operation
between labour and
management.
 Importance of Workers’
Participation in Management
1. Mutual Understanding
2. Higher Productivity
3. Industrial Harmony
4. Industrial Democracy
5. Less Resistance to change
6. Creativity and Innovation
Levels/Degrees of Participation
1. Communication
2. Consultation
3. Codetermination
4. Self-Management
 Forms of Workers’ Participation in
Management
1. Suggestion Scheme
2. Works committees
3. Joint Management Councils
4. Worker Directors
5. Co-Partnership
 IMP QUESTIONS
• 1. Why Workers Participation in
management is a desperate failure in
India? Suggest some measures for making
participation successful.
• 2. Write an essay on 360 degree Performance
appraisal system which prevails in the most
successful Organizations.
• 3. “Performance appraisals are mere paper
tigers, if you wish to grab incentive please
your boss” – Pass a Critical comment on it.
THANK YOU