Introduction
Human resource management (HRM) is the strategic and coherent approach to the management of an organization’s most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations
Its features include:
Organizational management
Personnel administration
Personnel management
Manpower management
Industrial management
But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even industrial relations and employee relations are confusingly listed as synonyms although these normally refer to the relationship between management and workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.
HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organisation
Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being:
“a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).
While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" (p. 352).
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.
Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, eg, career development, training, organization development, etc.
The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.
Definition
HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT is an art of procuring, developing and maintaining competent workforce in an effective and efficient manner.
It is a process of planning,organizing,directing and controlling the various functions like recruitment,selection,training,compensation,appraisal so that human resources can be uti in an effective manner.
NATURE OF HRM
§ PERVASIVE FUNCTION: It is present all levels in all organizations.
§ ACTION ORIENTED: Focus on problem solving rather than record keeping.
§ PEOPLE ORIENTED: It is both individual oriented and group oriented.
§ DEVELOPMENT ORIENTED: Aimed at developing the full potential of the employees.
§ INTEGRATING MECHANISM: Integrate people at all levels in best possible manner.
§ INTERDISCIPLINARY FUNCTION: Field using knowledge from different fields like psychology,sociology etc.
§ CONTINUOUS FUNCTION: Requires continuous alertness and awareness regarding human relations.
§ CHALLENGING FUNCTION: To manage human resources with different nature and characterstics is a adifficult task.
§ AUXILLIARY SERVICE: It exists to assist and advice the line or operating managers to do their personal work more effectively.
Objectives
§ To help the organization reach its goals.
§ To increase to the fullest employee’s job satisfaction and self actualization.
§ To develop and maintain a quality of work life.
§ To employ the skills and abilities of the workforce efficiently.
§ To provide the organization with well trained and well motivated employee’s .
§ Managing change to the mutual advantage of individuals, groups,the enterprise and the public.
IMPORTANCE OF HRM
AT THE ENTERPRISE LEVEL
Good hr practices help in attracting and retaining the best possible people in the organization
It helps in developing the right attitude towards the right jobs and company
Promoting team spirit.
AT THE INDIVIDUAL LEVEL
Promotes team work among employees.
Motivates employees to work more efficiently.
It allows people to work with commitment.
AT THE SOCIETAL LEVEL
Employment opportunities multiply.
Scarce talents are put to best use.
AT THE NATIONAL LEVEL:
Effective use of human resources help in exploitation of natural,physical and financial resources in a better way.
SCOPE OF HRM
Personnel aspect
Welfare aspect
Industrial relations aspect
FUNCTIONS OF HRM
It can be categorized into two
§ Managerial functions
Planning
Organizing
Directing
controlling
§ Operative function
1 Procurement function
-job analysis
-Human resource planning
-recruitment
-selection
-placement
-induction
-internal mobility
2 Development function
-training function.
-executive development
- career planning and deveklopement
-human resource developement
3 Compensation function
-Job evaluation
-Performance appraisal
-Compensation management
-Incentives
4 Maintenance function
-health and safety
-employee welfare
-social security
5 Integration function
-Grievance redressal
- discipline
- employee participation
- empowerment
- industrial relations
lecture 2
INTRODUCTION TO SHRM
What is strategic human resource management?
Strategic human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. Its definition and relationships with other aspects of business planning and strategy is not absolute and opinion varies between writers. The definitions below are from the CIPD book Strategic HRM: the key to improved business performance1 within which there is comprehensive coverage of the various definitions and approaches to HRM, strategy and strategic HRM. Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. It has been defined as:
All those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business.2
The pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals.3
Strategic HRM can encompass a number of HR strategies. There may be strategies to deliver fair and equitable reward, to improve performance or to streamline structure. However, in themselves these strategies are not strategic HRM. Strategic HRM is the overall framework which determines the shape and delivery of the individual strategies. Boxall and Purcell4 argue that strategic HRM is concerned with explaining how HRM influences organisational performance. They also point out that strategy is not the same as strategic plans. Strategic planning is the formal process that takes place, usually in larger organisations, defining how things will be done. However strategy exists in all organisations even though it may not be written down and articulated. It defines the organisation’s behaviour and how it tries to cope with its environment. Strategic HRM is based on HRM principles incorporating the concept of strategy. So if HRM is a coherent approach to the management of people, strategic HRM now implies that that is done on a planned way that integrates organisational goals with policies and action sequences.
Strategic HRM and business strategy
A good business strategy, one which is likely to succeed, is informed by people factors. One of the driving factors behind the evaluation and reporting of human capital data is the need for better information to feed into the business strategy formulation process. In the majority of organisations people are now the biggest asset. The knowledge, skills and abilities have to be deployed and used to the maximum effect if the organisation is to create value. The intangible value of an organisation which lies in the people it employs is gaining recognition by accountants and investors, and it is generally now accepted that this has implications for long term sustained performance. It is therefore too simplistic to say that strategic human resource management stems from the business strategy. The two must be mutually informative. The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. It is now more common to find business strategies which are inextricably linked with and incorporated into strategic HRM, defining the management of all resources within the organization. Individual HR strategies may then be shaped by the business strategy. So if the business strategy is about improving customer service this may be translated into training plans or performance improvement plans.
Strategic HRM and human capital management
A number of writers have argued that strategic HRM and human capital management (HCM) are one and the same thing, and indeed the concept of strategic HRM matches that of the broader definition of HCM quite well as the following definition of the main features of strategic HRM by Dyer and Holder shows5:
Organizational level - because strategies involve decisions about key goals, major policies and the allocation of resources they tend to be formulated at the top.
Focus - strategies are business-driven and focus on organizational effectiveness; thus in this perspective people are viewed primarily as resources to be managed toward the achievement of strategic business goals.
Framework - strategies by their very nature provide unifying frameworks which are at once broad, contingency-based and integrative. They incorporate a full complement of HR goals and activities designed specifically to fit extant environments and to be mutually reinforcing or synergistic.
This argument has been based on the fact that both HRM in its proper sense and HCM rest on the assumption that people are treated as assets rather than costs and both focus on the importance of adopting an integrated and strategic approach to managing people which is the concern of all the stakeholders in an organization not just the people management function. However, the concept of human capital management complements and strengthens the concept of strategic HRM rather than replaces it1. It does this by:
drawing attention to the significance of ‘management through measurement’, the aim being to establish a clear line of sight between HR interventions and organizational success
providing guidance on what to measure, how to measure and how to report on the outcomes of measurement
underlining the importance of using the measurements to prove that superior people management is delivering superior results and to indicate the direction in which HR strategy needs to go
reinforcing attention on the need to base HRM strategies and processes on the requirement to create value through people and thus further the achievement of organizational goals
defining the link between HRM and business strategy
strengthening the HRM belief that people are assets rather than costs
emphasizing role of HR specialists as business partners.
Hence both HCM and HRM can be regarded as vital components in the process of people management and both form the basis for achieving human capital advantage through a resource-based strategy. An alternative way of looking at the relationship between strategic HRM and human capital is in terms of the conversion of human capital into organisational value. Human capital evaluation is useful in that it provides information about the current and potential capabilities of human capital to inform the development of strategy. Business success will be achieve if the organisation is successful at managing this human capital to achieve this potential and embed it in products and services which have a market value. Strategic HRM could therefore be viewed as the defining framework within which these evaluation, reporting and management process take place and ensure that they are iterative and mutually reinforcing. Human capital therefore informs and in turn is shaped by strategic HRM but it does not replace it.
lecture 3
ROLE OF HR PROFESSIONALS
Administrative role
Policy maker
Administrative expert
Advisor
Housekeeper
Counselor
Welfare officer
Legal consultant
Operational role
Recruiter
Motivator
Coordinator
Mediater
Employee champion
Strategic role
Change agent
Strategic partner
RESPONSIBILITIES OF HR PROFESSIONALS:
1. Assumes full management responsibility for all departmental services and activities including a comprehensive human resources function (HRIS, Drug Testing, Classification/Compensation, Employment, Benefits, Worker’s Compensation) programs and services; recommends and administers policies and procedures.
2. Manages the development and implementation of departmental goals, objectives, policies and priorities for each assigned service area.
3. Establishes, within District policy, appropriate service and staffing levels; monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures; allocates resources accordingly.
4. Plans, directs and coordinates, through subordinate level staff, the Human Resources Department's work plan; assigns projects and programmatic areas of responsibility; reviews and evaluates work methods and procedures; meets with key staff to identify and resolve problems.
5. Assesses and monitors work load, administrative and support systems, and internal reporting relationships; identifies opportunities for improvement; directs and implements changes.
6. Researches, plans and implements large scale organizational change efforts; provides expert professional assistance to all levels on policy and personnel related issues.
7. Ensures that all departmental activities and operations meet and comply with all mandated and District policies, procedures, rules and regulations.
8. Monitors developments and legislation related to assigned area of responsibility; evaluates impact on District operations; recommends and implements practice and procedural improvements.
9. Selects, trains, motivates and evaluates assigned personnel; provides or coordinates staff training; works with employees to correct deficiencies; implements discipline and termination procedures.
10. Oversees and participates in the development and administration of the departmental budget; approves the forecast of funds needed for staffing, equipment, materials and supplies; approves expenditures and implements budgetary adjustments as appropriate and necessary.
11. Explains, justifies and defends departmental programs, policies and activities; negotiates and resolves sensitive and controversial issues.
12. Represents the Human Resources Department to other departments, elected officials and outside agencies; coordinates assigned activities with those of other departments and outside agencies and organizations.
13. Provides staff assistance to the Assistant General Manager, Administration; participates on a variety of boards, commissions and committees; prepares and presents staff reports and other necessary correspondence.
14. Attends and participates in professional group meetings; stays abreast of new trends, legislation and innovations in the field of human resources.
15. Responds to and resolves difficult and sensitive citizen inquiries and complaints
lecture 4
- CHALLENGES TO HR PROFESSIONALS
Managing global workforce.
Managing employees’ insecurity during mergers.
Managing workforce with flexible working hours.
Managing outplacement services or relocation for employees who lose jobs.
Managing employees concern about losing job due to outsourcing.
Ensuring the availability of skilled talent to fulfill organizational needs.
Devising customized HR strategies for hiring, retraining and motivating employees belonging to different generations.
Providing work-life balance initiatives.
Ensuring legal compliances when conducting business abroad.
Developing diversity training programmes.
Helping the temporary employee to quickly adapt to organization to reach their full potential.
HR professional competencies
Understands business processes and how to change to improve efficiency and effectiveness.
Understands clients and organizational culture.
Understands public service environment.
Understands team behavior.
Communicates well.
Apply organizational development principles.
Possesses the ability to be innovative and create a risk taking environment.
Knows business system thinking.
Possesses good analytical skills.
Possesses the ability to build trust relationships.
Link HR to organization’s mission and service outcomes.
Assesses and balance competing values.
Design and implement change process.
Uses consultation and negotiation skills including dispute resolution.
Possesses representation skills.
Demonstrate customer service orientation.
Understands values and promotes diversity.
lecture 5
HUMAN RESOURCE PLANNING
- Human resource planning is the process of anticipating and carrying out the
movement of people into, within, and out of the organization. Human resources
planning is done to achieve the optimum use of human resources and to have the
correct number and types of employees needed to meet organizational goals.
Thus, it is a double-edged weapon. If used properly, it leads not only to proper
utilization, but also reduces excessive labor turnover and high absenteeism, and
improves productivity.
It can also be defined as the task of assessing and anticipating the skill, knowledge
and labor time requirements of the organization, and initiating action to fulfill or
‘source” those requirements. Thus, if the organization as a whole or one of its
subsystem is not performing to the benchmark, in other words, it is declining, it may
need to plan a reduction or redeploys its existing labor force.
Vetter opines that it is the process by which management determines how the organization should move from its manpower position to its desired manpower position to carry out integrated plan of the organization.
Acc. to Geisler,
“Manpower planning is the process –including forecasting, developing and controlling by which a firm ensures that it has-
• The right number of people,
• The right kind of people,
• At the right places,
• At the right time, doing work for which they are economically most useful”.
FEATURES OF HRP
It’s a systematic approach.
Because it ensures a continuous and properstaffing. It avoids or checks on occupational imbalances (shortage or surplus)occurring in any of the department of the organization.
There is a visible continuity in the process.
There is a certain degree of flexibility.
It is subject to modifications according to needs of the organization or the changing circumstances. Manpower plans can be done at micro or the macro levels 3depending upon various environmental factors.
OBJECTIVES OF HRP:
TO recruit and retain the human resource of required quqlity and quantity.
To foresee the employee turnover and making arragements for minimising turnover and fill up subsequent vacancies.
To meet the programmes of expansion and diversification
To aasess the shortage and surplus of human resources and taking measures accordingly.
To maintain positive industrial relations by maintaining optimum level and structure of human resources.
To make the best use of its resources.
To estimate the cost of human resources.
NEED FOR HRP
Ensures optimum use of man power and capitalize on the strength of HR. The organization can have a reservoir of talent at any point of time. People skills are readily available to carry out the assigned tasks, if the information is collected and arranged beforehand.
Forecast future requirements and provides control measures about availability of HR labor time. If, for example the organization wants to expand its scale of operations, it can go ahead easily. Advance planning ensures a continuous supply of people with requisite skills who can handle challenging jobs easily.
Help determine recruitment/induction levels. Let me explain this with an
example: you as a manager want to determine what kind of induction the
organization will require at such an such date. If you have a ready HR plan, you
will have fairly good idea what kind of people are being recruited and at what
position. Thus you can successfully plan your induction level.
To anticipate redundancies/ surpluses/obsolescence.
To determine training levels and works as a foundation for management
Development programmes
Know the cost of manpower if there is a new project is being taken up, example:
in cases of expansions or a new factory, one would naturally requires more human
resources, hence a budgetary allocation can be made in advance for this upcoming
corporate strategic move.
Planning facilitates preparation of an appropriate manpower budget for each
department or division. This, in turn, helps in controlling manpower costs by avoiding shortages/excesses in manpower supply.
Reason for current interest and importance in HRP?
Limited demand for unskilled and less skilled labour.
Increase in demand for skilled labour on account of
technological development and up gradation and changes
in the organisation of work
Problems in maintaining the continued employability of
labour force
Demand for multi skilling.
Jobs often require experience and skills that cannot easily be bought in the
market place, and the more complex the organisation, the more difficult it will
be to supply or replace highly specialized staff quickly. It takes time to train
and develop technical or specialist personnel (say, an airline pilot or programmer), so there will be a lead-time to fill any vacancy. The need will be
have to be anticipated in time to initiate the required development
programmes.
· Employment protection legislation and general expectations of 'social
responsibility' in organizations make staff shedding a slow and costly process.
The cost must be measured not just in financial terms (redundancy pay and so
on) but in loss of reputation as a secure employer and socially responsible
organization. This, in turn, may make it more difficult to recruit labor in times
or skill areas where it is required - and may even alienate customers and
potential customers
• Rapid technological change is leading to a requirement for manpower which
is both more highly skilled and more adaptable. Labor flexibility is a major
issue, and means that the career and retraining potential of staff are at least as
important as their actual qualifications and skills. They must be assessed in
advance of requirements. (In fact, 'train ability' as a major criterion for
selection is one of the most popular innovations of the HRM era of personnel
management.)
• In term of international markets, the scope and variety of markets, competition
and labor resources are continually increased by political and economic
moves such as the unification of Germany, the opening of Eastern Europe and
continuing progress towards European union.
• Computer technology has made available techniques which facilitate the
monitoring and planning of manpower over fairly long time spans:
manipulation of manpower statistics, trend analysis, 'modeling' and so on.
BENEFITS:
It checks the corporate plan of the organisation.
It offsets the uncertainity and change and enables the organisation to have the right man at right time in right place.
It causes the developement of various sources of human resources to meet organisational needs.
It provides the scope for advancement and developementof employees through training and developement.
FACTORS AFFECTING HUMAN RESOURCE PLAN
EXTERNAL FACTORS
Govt. policies
business environment
international factors
level of technology
INTERNAL FACTORS
policies and strategies of the company
trade unions
company's productional policy
job analysis
PROCESS OF HUMAN RESOURCE PLANNING
Step1
Analyzing organizational plans
It should start by analyzing organizational plan into production plan, technological plan, marketing plan, financial plan ,sales plan etc. Analysing organizational activities help in forecasting the demand for the human resources as it provides the quantam of future work activity.
Step 2
Forecasting overall human resource requirement:
Job analysis facilitate demand forecasting .one of most important aspect of demand forecasting is the quality of human resources in addition to quantity of human resources Important forecasting methods are:
(A)MANAGERIAL JUDGEMENT:
Under this method the managers and supervisors who are well acquainted with workload, efficiency & abilities of the employees decide on the number &type of human resources to be required .This is done by supervisor who send the proposals for approval to top officials .This is bottom up approach .Another approach is top down approach is one in which top management prepares the organizational plans ,department plans & hr plans on the basis of information given by middle level management.
(B) STATISTICAL TECHNIQUES:
(1) Ratio trend analysis:
Under this method, ratio are calculated for the past data relating to the number of employees of each category and production level, sales level. Future production sales are estimated with an allowances for changes in the organization and on the basis of past ratio future human resource requirement is estimated.
Present production 1500 units
No. of supervisors 3
Estimated production 2500 units
No. of supervisors required for estimated production
1500 : 3 :: 2500 : x
1500 x = 2500*3
x = 5
(2) Econometric models:
It is built up by analyzing the past stastical data and by bringing the relationship among variables. These variables include those factors which affect the manpower requirement directly and indirectly like investment, production, sales ,workload etc.
Econometric model is used to forecast human resource requirement based on the movements in these variables.
( C) WORK STUDY TECHNIQUES:
This technique is more suitable where the volume of work is easily measurable.Under this method total production and activities in terms of clear units are estimated in a year. Man hours required to produce/perform each unit is calculated. Work ability of each employee is estimated in terms of manhours after giving due weightage to absenteeism ,rest etc. Then no. of employees required is calculated.
Planned production 160000 units
Standard manhour required 0.25 hr.
For producing 1 unit
Planned manhour required 160000*0.25
= 40000
Estimated Work ability per employee 2000
in manhour
Manpower required 40000/2000
= 20
Step 3
Supply forecast:
The first step is to get information about present existing manpower inventory.
Existing inventory:
The data related to human resources inventory in number departmentwise,designationwise should be obtained. Principle dimensions of human resources inventory are:
(1) Headcounts regarding department wise , designation wise ,skillwise,payrollwise etc.
(2) Job family inventory in terms of number of employees in each job family eg. Number of clerks,supervisors, typists etc.
(3) Age inventory includes agewise number and category of employees.
(4) Inventory in terms of skills,experience,value.
(5) Inventory of qualifications.
Potential losses:
The second step of supply forecasting is the estimation of future losses of human resources of each department. It includes voluntary quits , deaths, retirements ,dismissals ,layoff, accidents.
The ratio for potential losses can be classified as
1) permanent total loss
e.g. It is due employee turnover.
2) permanent partial loss
e.g. Due to ill health, occupational diseases etc.
3) temporary total loss
e.g. Due to absenteeism, deputation
4) Temporary partial loss
E.g. Consultancy, advisory and other services offered by employees to others.
Potential additions:
It includes new hires , promotions, transfers, demotion etc.
So, future supply of human resources:
Present inventory of human resources +potential additions-potential losses
Step 4
Net human resource requirements
The difference between future human requirements and future supply of human resources is to be determined.
If surplus - retrenchment and redeployment is done.
If shortage - internal mobility and recruitment is done.
lecture 6
HUMAN RESOURCE INFORMATION SYSTEM
INTRODUCTION
Inorder to conduct an audit properly human resource professionals need considerable amount of data and also for managing various functions in the organization it is necessary that all the information should be timely available .so a comprehensive data system is therefore necessary to fulfil the hr informational needs of an organization.
DEFINITION
HRIS is a method by which an organization collects , analyses and reports information about people and jobs.
HRIS is a database system that offers important information about employees in a central and accessible location .When such information is needed the data can be retrieved and used to facilitate human resource planning decisions.
OBJECTIVES
§ To offer an adequate,comprehensive and ongoing information system about people and jobs.
§ To supply up-to-date information at a reasonable cost.
§ To offer data security and personal privacy.
NEED
§ The clerical work involved is quite labour intensive and costly .
§ Manual transfer of data from one record to another may increase the chances of errors.
§ Information is not a central ,easily accessible place since records are kept at a separate locations,handled by different persons in different departments.
§ The manual analyses of data is time consuming and often not readily available for decision making purposes.
Requirement for effective HRIS:
1. It should supply complete accurate and timely data so that it can be used for effective planning and decision-making. This would result in elimination of problems associated with inconsistent, incomplete, and accurate information.
2 It should identify the separate needs of all units of a decentralized organization in a cohesive manner so that these needs can be attended to without duplication and waste of efforts.
3 it should ensure that data is presented in summarized form and in a manner so that action can be initiated without further interpretation and analysis. This reduces the time as well as volume of information required.
4. It should identify and quantify the interrelated operational and performance variables and develop a relationship of these variables which can be projected to forecast future trends.
5 It should provide flexibility so that system can be adapted to change whenever necessary.
Significance of HRIS
1 Integrated view of human resource function.
2 Availability of timely and accurate information about human resources.
3 Economy in management of human resource data.
4 Design and implementation of training programs based on knowledge of
organizational needs.
5 Development of performance standards for human resources.
Designing of HRIS
1 PLAN: It involves defining and analyzing various type of decisions that are made, both operational as well as those related to policies within the organization to keep the organization going.
Identifying and isolating the type of data that is relevant and needed for making decisions.
Establishing mechanism and a set of procedures for gathering such data and appropriately processing this data into useful information.
2 ORGANISING: At this stage steps should be taken to organize a human resource information centre. The centre will have all the hardware and software and technical help necessary to gather all the information at one place and then
Classify and tabulate it to give shape of management information .The
Centre will however coordinate with various subsystem of the organization.
System designer has to take the decision in respect of the number of files to be maintained, the equipments to be used for processing the data, the personnel to be employed for this purpose and the ways of processing and storing the information.
3 IMPLEMENTING: For putting HRIS into practice it is important to
procure suitable hardware and software. Training should be provided to talented
employees in operating HRIS.
4 REVIEW: Regular feedback regarding the functioning is must for designers to
fill up the gap between planning and implementation.
APPLICATION OF HRIS
1 Job posting
2 applicant tracking
3 Job person matching
4 career planning
5 Development need analysis
6 Research and audit.
Computerised HRIS
It consist of following subsystems:
Recruitment information
Personnel administration information
Manpowerplanning information
Training information
Health information
Appraisal information
Payroll information
Personnel research information
lecture 7
It is a process of searching the prospective candidates and then stimulating them to apply for jobs in the organization.
It is a function of two S:
-searching
- stimulating
FEATURES:
It is a positive function as it seeks to develop a pool of potential candidates from which most suitable ones can be selected.
The basic purpose of recruitment is to locate the sources of people to meet the job requirements and attracting such people to offer for themselves for employment in the organization.
It is a linking activity as it brings together those with jobs and those seeking jobs.
It is a pervasive function as all the organizations engage in the recruitment activity.
PURPOSE:
To begin identifying and preparing potential job applicants who will be appropiate candidates.
To increase the pool of job candidates at minimum cost.
To help increase the success rate of selection process by reducing the number of visibly underqualified and overqualified job applicants.
To increase the organizational effectiveness in short term and long term.
Making large number of qualified applicants aware of employment opportunities.
FACTORS AFFECTING RECRUITMENT PROCESS:
INTERNAL FACTORS
-Organisational effectiveness
-personnel policies
-job attractiveness
-union interference
-size of the organization
EXTERNAL FACTORS
-Labour market
-unemployment situation
-demographic factors
-legal factors
RECRUITMENT STRATEGIES
Where to recruit from
§ This decision where to recruit from is generally related to labour market. Whether the companies should look the employees from local markets or regional markets or from national labour markets.
§ Generally companies look into national market for managerial and professional employees ,regional or local markets for technical employees ,local markets for clerical and blue collar employees.
§ The decision is also influenced by the location of the organization.
For eg. If a company is located in Bangalore it can meet its requirement for the managerial personnel from the local markets.
§ Local shortage of blue collar employees compel companies to conduct regional recruiting campaigns for these employees.
Which recruitment method to use:
For internal recruitment:
Present employees
Employees referrals
Former employees/retired employees
Dependents of disabled employees
For external recruitment:
Employment exchanges
Campus recruitment
File of unsolicited applications
Consultants/head hunters
Contractors
Acquisition and mergers
Competitors/ poaching
Advertisement through radio, tv
E-recruiting
When to recruit:
Based on HRP, every organization has a fair idea about when the vacancies are likely to occur due to business expansion,retirement,promotion, resignation etc. except in the case of unexpected vacancies.
Companies hire employees in advance for the position much lower in hierarchy where turnover is higher and cost of keeping them without work is low.
How to attract people to apply:
The firm can use its strengths as inducements to attract candidates .attracting candidates is like selling the organization.
Firm can publicize its unique features like flexible working arrangements,promotional opportunities ,performance based rewards.
To understand what a candidate from a particular employee group is looking for and customize the recruitment message to provide the desired information.
Selection
It is a process of choosing the best candidate who have relevant qualification to fill the jobs in the organization.
It is basically choosing the suitable candidate whose qualifications matches the requirements of the job and the organization.
Process of selection:
1 RECEPTION
In order to attract the people with talent, skills and experience a company has to create a favourable impression from the stage of reception .whoever meet the applicant initially should be able to extend help in as friendly and courteous way.
2 SCREENING INTERVIEW
:
A preliminary is generally planned by large organizations to cut the cost of selection by allowing only eligible candidates to go through further stages in selection.Deptt. may elicit responses from applicants on important items determining the suitability of an applicant for a job such as age,education,experience,pay,location choice . This interview helps the deptt. to screen out obvious misfits.
3 APLICATION BLANK
It is one method to collect information on various aspects of applicants academic, social, demographic,work related background& references.Even when the applicants came with their resumes it is important to ask the ask the applicants to translate spefic resumes material into standardized application form.
4 WEIGHTED APPLICATION BANK
To make the application form more job related,some organizations assign numeric values or weights to response provided by applications. The items having a stronger relationship are given high scores. The total score of each applicant is obtained by summing the weights of individual item responses.These Resulting scores are then used in selection decision.
5 SELECTION TESTS
§ Intelligence tests
§ Aptitude tests
§ Personality tests
-interest tests
-preference tests
-projective tests
§ Achievement tests
6 SELECTION INTEVIEW
Non structured interview
Structured interview
Behavioural interview
Stress interview
Panel interview
7 MEDICAL EXAMINATION
This is generally done to find the medical fitness of the employees.
8 REFERNCES
.
References are taken by the employees
lecture8
SUCCESSION PLANNING
Succession planning is ensuring the right people in the right place at the right time. It is a part of HR planning for the organization and involves finding the right people to take higher responsibilities in the organization. The success of the organization is largely dependent on the quality of its human resources and leaders of the organisations. Succession planning is proactive in nature and results in the creation of a talent pool of candidates with the required potential and competencies who can take the high positions in future and help in the growth of the organization.Succession planning is being practiced since a long time now and has become an indispensable part of corporate strategy in most of the organisations. One of the best approaches to succession planning is “performance based succession planning”.
HR planning for the probable future needs is a challenge for the HR managers and the performance review and can help tremendously to attain this challenge. Performance appraisal process (like performance reviews and competency assessment) and succession planning together can help to strategically identify and develop the required talent pool.Apart from the various other factors, succession planning is based on:
The positions for which the planning is being done
The current and past performance levels of the employees
Performance rating
Competency mapping
How have the selected employees managed to improve since their last review?
The growth potential and the attitude of the employees.
Their ability to meet the changing and increased level of standards and measurements set by the management.
Succession planning is a complicated process and requires time and ongoing effort. Therefore, performance appraisal and review process helps to judge the knowledge, skills, attitude, competencies and potential of the employees and finding the mentoring and coaching requirements if any and thus identifying the right candidates for taking future responsibilities i.e. succession planning.For example at Wipro, the succession planning programme is called Talent Review and Planning (TRP), Wipro conducts regular quarterly talent engagement and development (TED) reviews, and action plans of each SBU and vertical are reviewed and a talent pool of the suitable identified candidates is prepared. Therefore, performance based succession planning helps in creating a required talent pool of employees for the future needs of the organisation
lecture 8
TRAINING AND DEVELOPEMENT
TRAINING AND DEVELOPMENT
TRAINING AND DEVELOPEMENT
Training & development
It is an act of increasing the knowledge & skills of an employee for doing a particular job.
It is an organized activity for increasing the technical skills of employees to enable them to do a particular job efficiently.
Development means growth of employees in all respects .It denotes the process by which employees acquire skills and competence to do their present jobs as well as to perform their higher jobs in the future .This term is generally use in relation to managers and executives..
Difference between training and developement
Training
1 It means imparting skills and knowledge for doing a particular job.
2 It imparts job related technical skills.
3 It is concerned with current job
Performance.
4 It has a short term perspective .
5 It is concerned with imparting
specific skills among operatives
workers and employees.
6 Training is job centered in nature. It seeks to make workers proficient in
Their existing jobs.
7 The boss takes the initiative for imparting training to his subordinates.
Development
1 It means growth of employees in all respects.
2 It shapes attitudes and imparts technical, human & conceptual skills.
3 It seeks to develop competence and skills for future performance.
4 It has a long term perspective.
5 It is associated with overall growth of the
Employees.
6 It is career centered in nature. It seeks to prepare the employees for handling higher level jobs.
7 The individual is motivated by himself for self developement
OBJECTIVES OF TRAINING
1 To provide job related knowledge to the workers.
2 To impart skills among the workers systematically so that they may
Learn quickly.
3 To improve the productivity of the workers and the organization.
4 To reduce the number of accidents by providing safety training to the
Workers.
5 To make the workers handle materials , machines and equipments
Efficiently and thus to check wastage of time and resources.
6 To prepare workers for promotion to higher jobs by imparting the
Advanced skills.
NEED FOR TRAINING
For higher productivity
Quality improvement
Industrial safety
Technology updatation
To reduce accidents and supervision.
Types of training
INDUCTION TRAINING: It is concerned with introducing the new employee to the organization and its policies ,procedures , rules and regulations.
APPRENTICESHIP TRAINING :It involves imparting knowledge & skills in a particular trade or craft .For eg. Training to the welders, machinists etc.
REFRESHER TRAINING: It is meant for the old employees of the enterprise .the basic purpose of refresher training is to acquaint the workforce with the latest method of performing the job.
INTERNSHIP TRAINING: It is usually meant for those vocations where advanced theoretical knowledge is to be backed up by practical exposure.
TRAINING FOR PROMOTION: The existing talented employees may be given adequate training to make them eligible for promotion to higher jobs in the organization.
JOB TRAINING: Job training is given in different ways to make the workers proficient in handling machines, equipments and materials so that the operations are smooth and faultless and accidents are avoided.
Traditional Approach – Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing.
The modern approach of training and development is that Indian Organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The training system in Indian Industry has been changed to create a smarter workforce and yield the best results
TRAINING AND DEVELOPMENT OBJECTIVES
The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.
Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness.
Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs.
Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society.
IMPORTANCE
• Quality – Training and Development helps in improving upon the quality of work and work-life. • Healthy work-environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.• Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.• Morale – Training and Development helps in improving the morale of the work force.• Image – Training and Development helps in creating a better corporate image.• Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation.• Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organisational policies• Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.
IMPORTANCE OF TRAINING OBJECTIVES
• Optimum Utilization of Human Resources – Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals.
• Productivity – Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.
• Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees
.• Organization Culture – Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization.
• Organization Climate – Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.
• Development of Human Resources – Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.
LECTURE 9
ROI ON TRAINING
Benefits derived from TRAINING AND DEVELOPMENT often tangible with the impact of other organizational variables.
Measurement for Training programs requires identifying the training benefits and separating them from other impacts, if the ROI measurements are to be accurate
The task of conducting rigorous and reliable ROI evaluation of training exceeds the resources and expertise of most organizations.
Cost-effective ROI evaluation of training must overcome the following challenges and obstacles: -
· Attribution of Effects to training is very difficult due to the influence on firm performance of a complex myriad of other factors. Variables such as markets, revenues, costs, interest rates and many other factors enter into profit determination, making it difficult to isolate the impact of any incremental training expenditure. Most ROI figures aren't precise, though they tend to be as accurate as many other estimates that organizations routinely make.
· Evaluation is complicated by serious problems with data collection and measurement.
· Costs of Training are generally known up front, often before the training takes place, but benefits may accrue slowly over time and may depend on such unpredictable factors as turnover rates among workers who are trained.
· Objectives of Training are often murky and the rate of return cannot be measured if the meaning of return cannot be defined in quantifiable terms.
Cultural Resistance may be the main reason ROI is not measured for training. Some managers view ROI studies simply as promotion and marketing by the training department. Moreover, the "best practice" companies in terms of training are often the most resistant, accepting the value of training as an article of faith.
· High Costs of Evaluation can be a major barrier, especially if they exceed the benefits from training.
· Informal Training and Learning-by-Doing, which are important sources of learning, are embedded in production and, therefore, very difficult to measure.
· The Inability to Attribute Causation to the training from before and after comparisons due to the lack of a valid control group.
In addition, from an academic perspective, the three central problems are -
· obtaining accurate measures of the full costs.
· Measuring benefits without relying on subjective estimates.
· Isolating the impact of the training on changes in performance.
To have most confidence in their results, academics evaluators favour Comprehensive Evaluation Designs with components including a Process Evaluation, an Impact Analysis, Analysis of Participant Perspectives, and a Benefit-Cost Analysis.
Existing Measurement Models
Measurement of the impact of training has attracted significant research till date, some of the works in these areas have been: -
· Kirkpatrick’s four level model.
· Swanson and Holton's Cost Benefit Analysis model.
· Hamblin’s and Phillips's ROI models.
· Casco’s Utility Analysis model.
However, most of the evaluation models used in training have virtually ignored the probabilistic nature of outcome's occurring. In utility terms, the expected utility is a function of both the possible returns and the probability of those returns occurring. Subjective Expected Utility That in organizations, those probabilities are rarely known, so they must be estimated subjectively by the decision maker. For example, given the relatively poor track record of learning interventions transferring into performance improvement, decision makers might view investments in training as risky even though the possible returns are large. In organizations with a history of poor outcomes from HRD interventions, the subjective expected utility could be very low despite high forecasted ROIs.
(Key Limitations of Existing Accounting Based ROI Models
First, current accounting equations for ROI analysis only deal with parameters having dollar values. For intangible measures such as customer or employee satisfaction or ROI measurement for an organization whose business objectives are not necessarily measured in dollar values (government agency, military, or other nonprofit organization), the current ROI approach is inapplicable.
Second, business outcome can often be attributed to training programs plus many other concurrently intervening variables. However, the current ROI approach fails to separate true training program impact from other intervening variables. Although some general guidelines have been discussed lack of rigorous methodology for isolating training impact and separating it from other variables remains a major obstacle for further ROI research and practices. In some cases, a control-group approach may be a remedy. Yet in many cases the control-group approach may not be applicable.
Furthermore, the current judgment-based dollar value estimation for "total benefit" to obtain the numerator for the accounting ROI equations is rather ironic in the training participants who are asked to assign a dollar value, along with a confidence percentage, to an training program may or may not be qualified to do so. The ROI results obtained in this fashion can be not only subjective but also misleading. Such ROI results, if serving top management in making HRD-related investment decisions, may jeopardize the long-term credibility of training
.
How ROI in HR is Different
From the preceding discussions, it is clear that ROI measurement in training may be approached by integrating inter-disciplinary efforts with training realities and characteristics. The field of training itself is inter-disciplinary, after all Investment and returns in training field differ significantly from those in the accounting and financial world in several aspects; hence, ROI measurement for training is more than simply an accounting issue.
1 training investment is not an investment in fixed assets. Rather, it involves a learning process with subsequent behavior change and performance improvement How much one can learn and how successfully one may apply the learned skills
2. The impact of learning application on final business results often interacts with factors at organizational and environmental levels, such as organization culture and market conditions
3. The benefit of training may take on a value other than monetary. The purpose of some Training programs is to change participant behavior, which can rarely be measured in dollars. Many studies have shown that behavior change may or may not lead to change in productivity
Considering the characteristics of ROI in the training field, it is required to redefine return on investment for a training program as any economic returns, monetary or non monetary, that are accrued through investing in the training. Monetary returns refer to those that can be measured and expressed in dollar values; non-monetary returns apply to any other returns that have economic impact on the business results but may not be explicitly expressed in dollar values. Examples of non-monetary return are such parameters as customer satisfaction and employee job satisfaction.
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