HRM can be defned as a strategic approach to the acquisition , motivation on

,development & management of the organizations human recourses.

!he term "HRM has replace the term "personnel management as description of the
processes involved in managing people in organization. #n simple sense HRM
means emplo$ing people , developing their capabilities, utilizing, maintain &
compensating their services in tune %ith the &ob & organizational requirement.
'cientifc management ().* !a$lor+
,merican mechanical engineer ).* !a$lor loo-ed at %a$s of ma.imizing productivit$
.he conclude that
*or-ers varied their pace at %or- to suite the conditions
Managers ma-e little e/ort to specif$ %hat made up a reasonable da$ss
%or-
0o e/ort %as made to identif$ the best methods nor to train the %or-ers.
He devised the theor$ of scientifc management. !his is a theor$ of
management that anal$se , s$nthesizes %or- 1o%s %ith the ob&ective of improving
labour productivit$.
He established 2 principles of scientifc management.
3. Replace rule4of4thumb %or- methods(through past e.pereinece+ %ith
methods based on a scientifc stud$ of the tas-s.
5. 'cientifcall$ select, trained & developed each %or-er rathe$ than
passivel$ leaving them to train themselves.
6. 7oporate %ith the %or-ers to ensure that a scientifcall$ developed
methods are being follo%ed.
2. 8ivide %or- nearl$ equall$ bet%een managers & %or-ers so that the
management appl$ scientifc management principles to planning the
%or-, & the %or-ers actuall$ perform the tas-.
!a$lor belived that %or-ers %ould be motivated b$ obtaining the highest
possible remuneration. 'o %or- should be organized in the most e9cient %a$.
He recognized that if specialized -no%ledge & s-ills %ere concentrated in the
hands of %ell trained & able emplo$ees, there %ould be an improvement in
productivit$.
He therefore bro-e &obs do%ning to separate functions & then gave each
function to an individual or group
*ith modern trends including the need for 1e.ible %or- &
multis-illing , !a$lorism can be regarded as outdated. Ho%ever it is used in man$
areas including call cnetres.
Motivation
Motivation is the driving force %ithin individuals b$ %hich attempt to achieve some
goals in order to fulfll some need of e.pectation.
Motivation in1uences emplo$ees productivit$ & qualit$ of %or-.
Theories of motivation
'ince stud$ of motivation involves man$ comple.ities several theories %ere
developed. !his can be classifed based on 6 things
3. :conomic re%ards such as pa$, per-s etc
5. #ntrinsic satisfaction derived from the nature of %or- such as self
development achievement etc
6. 'ocial relationships such as friendship, being part of a team etc.
!H:;R#:' ;) M,;!#<,!,#;0
3. 7;0!:0! !H:R;=
Hierarch$ of needs
8ual factor theor$>
5. Monitor$ theor$
'cientifc management
!heor$ ? & theor$ =
6. @rocess theor$
:.pectanc$ theor$
2. 7ombined theor$
!$pes of personalities
Hierarch$ of needs4,braham Maslo%
Maslo% identifed A level of needs of human beings. ,nd it can be araanged
in a heirach$ of potenc$.
'elf actualization 7:; of a compan$
:steem Respect, recognition , status
BelongingnessCa9liation )riendship
'afet$ & securit$ Dob securit$
@h$siological needs @a$, per-s
!his theor$ identifes that an an$ one point come from the lo%est level of
unsatisfed nedd %ill be the one that motivates current behavior.
8ual factor theor$ E )redric- Herzberg
!his is based on that opposite of &ob satisfaction is a lac- of &ob satisfaction &
the opposite of &ob dissatisfaction is an absence of dissatisfaction. )actors
associated %ith satisfaction are called "motivators & factors that cause
dissatisfaction are called "h$giene factors.
Motivators Hygiene factors
@ersonnel life Dob securit$
Recognition @a$
,chievement 'tatus
@ossibilit$ of gro%th #nterpersonal relations
,dvancement 'upervisions
Responsibilit$ 7ompan$ polic$ & administration
*or- it self *or-ing condition
'cientifc management4).% !a$lor
!a$lors vie% on motivation is purel$ based on economic benefts. !herefore
through the principles of scientifc management !a$lor emphasis that people can
onl$ be motivated through fnancial re%ards. !hus mone$ is the onl$ motivator that
in1uences performance of emplo$ees.
!heor$ ? & !heor$ = E8ouglas Macgregor
He identifed there are 5 t$pes of people.
3. !heor$ ? people
5. !heor$ = people
!heor$ ? people fnd %or- distasteful & tr$ to avoid responsibilities.
!hus managers must deal %ith these people controlling %or- tightl$, supervise them
closel$ & giving them simple repetitive tas- to do. Fe$ motivators %ould be
economic re%ards & punishments.
!heor$ = people %ant to contribute to meaningfulG goals. Hi-e to learn
& see-s responsibilities. !hus managers must deal %ith these people giving
responsisbilities , creating participative environment & encouraging self direction.
Motivators %ould be opportunities . this people ma$ be disinterested in economic
re%ards & unafraid punishments. )urther the$ dont li-e to be supervised.
:.pectanc$ theor$4 victor vroom
!his theor$ argues that an individual ta-es a decision based on 5 things %hen
face %ith a choice.
3. <alence I4 the value placed on achieving the outcome of each alternative
5. :.pectanc$ I4 the li-elihood of being able to achieve each outcome.
7hoice is made base on a multiplicative relationship bet%een valance
& e.pectance.
M;!#<,!#;0J <,H,07:K :?@:7!:07=
!$pes of personalities E :dgar schein
He identifes 2 categories of %or-ers.
Rational economic manI 4 motivator is ma.imization of gain. !here are
5 t$pes
3. Lntrust%orth$ E mone$ motivated & calculative
5. !rust%orth$ E moral elite to manage others
'ocial man I4 motivator is socialization at %or- should be managed b$
coordinating & facilitating rather than controlling
'elf actualizing man I4 motivator is self fulfllment. 'hould be given
responsibilities & challenging tas-s
7omple. man I4 motivator is based on the e.pectation that the
emplo$ee & the organization have each other & e.tend to %hich the$
are mutuall$ satisfed. Maintain ace of ps$chological contract is
crucial.
@s$chological contract
!his represents the mutual belief , perceptions & informal obligations
bet%een the emplo$er & emplo$ee. #t is distinguishable from the formal contract of
emplo$ment %hich onl$ identifes mutual duties & responsibilities in generalized
form.
Mutual commitment under ps$chological contract
Employee promises to Employer promises to
*or- hard @a$ better remuneration
Lphold compan$ reputation Mive opportunities for training &
development
Maintain high level of attendance @rovide opportunities for promotion
'ho% lo$alt$ to the organization Mive recognition to motivation or ne%
idea
*or- e.tra hours %hen required Mive feedbac- on performance
8evelop ne% s-ills & update old ones @rovide interesting tas-s
Be 1e.ible e.I4 b$ ta-ing on a colleague
%or-s
@rovide an attractive benefts
Be courteous to clients & colleagues Mive reasonable &ob securit$
Be honest !o o%e pleasant safe %or-ing
environment
7ome up %ith ne% ideas

8eveloping the HR strateg$
Mission & vision
;b&ectives

7orporate strateg$
Business strateg$
)unctional strateg$
HR
)inancial
Mar-eting
'ales
Human recourse c$cle4 devanna

The HR cycle
3. Dob anal$sis
5. Dob description
6. @erson specifcation
2. Recruitment
A. 'election
N. #nduction
O. ,ppraisal
P. !raining & development
Q. 7arrier planning
3R.!ermination
Re%ards
,ppraisal
@erformcn
ce
'election
!raining &
development
Job analysis
!his involves identif$ing the scope of particular &ob of an organization. )actors that
should be considered in developing the &ob anal$sis
!he hierarch$ & structure of the organization
!he nature of authorit$ & e.pected decision ma-ing
!he level of responsibilit$ & impact
!he nature of subordinates & the respective position in the organization
0ature of relationship %ith e.ternal parties
!he main purpose of conducting &ob anal$sis is to prepare &ob description & person
specifcation
Job description
!his is a list of the general tas-s & responsibilities of a position. !his covers
!he location of the &ob %ithin the organization(division, department, section+
!itle of the &ob
Brief description of the overall purpose of the role
8etails of an$ technical procedures , tools, machineries or equipment used b$
the &ob holder
@h$sical location of the &ob
Person specifcation (job specifcation)
!his involves identif$ing the personalit$ require to perform the duties based
on the &ob description. !his %ill demonstrated the individual characteristics that
should be re1ected in the e.pected person. !his include
:ducation & qualifcations
!raining & e.perience
@ersonal attributableCqualities
@h$sical attributes (e.I4state of health, age speech+
,ttainments
,ptitudes (e.I I4 verbal rezoning, numerical aptitude+
#nterests (e.I4social activities, sporting activities+
@ersonal circumstances (e.I4 abilit$ to %or- shifts+
Recritment
!his is a set of activities design to attract a qualifed pool of applicants to an
organization. !here are 6 steps in the recruitment process.
3. ,dvertisement of a &ob vacanc$
5. @reliminar$ contact %ith potential &ob candidates
6. #nitial screening to create a pool of suitable applicants
!dvertisement of a job vacancy can be done by
@ress
:mplo$ment agencies(government+
Recruitment consultants(private+
*eb recruitment
7areer conventions (e.hibitions, fairs, conferences+
Lniversit$ mil- rounds
Radio
7inema
!<
"election
!his is a s$stematic process of selecting the most appropriate candidiate for a
&ob.
Methods of selection
#ntervie%s
!ests
,ssessment centers
#ntervie$s
!his is a process in %hich a potential emplo$ee is evaluated b$ the emplo$er
s for prospective emplo$ment.
Types of intervie$s
;ne to oneI 4 conducted b$ one intervie%er. Highl$ unreliable
!andem intervie%sI4 involves 5 intervie%ers per candidate. Ma$ be biased.
@anel intervie%sI4 consist of number of people %ho intervie%ed the candidate
together. 'ingle member of the panel could dominate proceedings.
'equential intervie%sI4 involves the candidate being passed from one
intervie%er to another until several one to one intervie%s have ta-en place.
!he intervie%er ma$ be varied in their opinion.
Tests
7ognitive testsI4 this relate to thin-ing process & includes tests of
intelligence, abilit$, aptitude, communication, numerical s-ills etc
@ersonalit$ testI4 this involves assessing non4cognitive & non4intellectual
characteristics. Lsuall$ the emotional ma-e up , related into the st$le of
behavior.
@s$chometric testI4 this involve assessing both personalit$ & cognitive testing
,ssessment centersI4 this form of evaluation is used speciall$ higher
positions. !his %ill evaluate
3. , leader less group e.ercise I4candidate are given a group tas-
to underta-e in a given time
5. , report %riting e.ercise I4 participants under time pressure
%rite a report of some aspect of business
6. ,n in4tre$ e.erciseI4 this consists os issues that a manager might
fnd on a dail$ performing the &ob for real.
2. ;ther tests
A. )ormal intervie%

#ndction
!his involves all arrangements meant to familiarize a ne% emplo$ee %ith the
organization, including safet$ rules , general conditions of emplo$ment, the %or- of
the sectionCdepartment etc.
:lements in the induction pac-age
3. !erms of emplo$ment e.I4 hours of %or-
5. House -eeping & securit$ issues e.I4catering facilities
6. Health & safet$ regulations e.I4safet$ procedures
2. Remuneration & benefts e.I4holida$ ,sic- da$
A. ;rganizational rules & policies e.I4%or- rules, trade union membership
N. :mplo$ee development opportunities e.I4social, sports facilities
O. #nformation about compan$ & industr$ e.I4mission statement, histor$ etc
P. Dob performance issues e.G4 standards
#ndction perspectives
,dministrative perspective I4 induction should be s$stematic enough to
ensure that essentials are covered
:.G4 %age & salar$ administration,
*elfare perspectiveI 4 %hen people start emplo$ment %ith the organization
the manager must tr$ to settle ne% person quic-l$. )or those lac-ing
confdence it is appropriate e.I4 school leaver
'trategic perspectiveI 4 emplo$ers ma-e use of various techniques to educate
organizations ethos, aiming to integrate them culturall$.
!ppraisal (performance appraisal)
!his is the method b$ %hich the &ob performance of an emplo$ee is
evaluated. (Menerall$ in terms of qualit$, quantit$, cost & time+. !$picall$ b$ the
corresponding manager or supervisor.
, performance appraisal is a part of guiding & managing career
development. #t is the process of obtaining, anal$zing & recording information about
the relative %or- of an emplo$ee to the organization.
Most appraisal s-ills rel$ on an annual meeting bet%een the
appraise(emplo$eeR & his appraiser. !he purpose of appraisal is,
3. ,iding technical, professional & management development
5. ,llo%ing a s$stematic follo% up of the results of sta/ development activities
6. , source of motivation
2. :nabling the achievement of re%ards (such as promotions+
A. )eeding in to a %ider re%ard s$stem
N. #ncreasing performance
O. Helping to achieve important organizational & individual ob&ectives.
P. , mechanism to set ob&ectives for the ne.t period.
Q. #dentif$ing good prospects for promotion or transfer
3R.8eveloping ps$chological dependence on the manager
33.)ostering & open atmosphere
35.8eveloping relationships
36.:nhancing corporate cultural norms.
Pitfalls of appraisal
, lac- of preparation of either side
,n appraisal tal-ing more than the appraising & as-ing leading questions to
%hich the ans%er is obvious & important aspects ma$ be left une.plored.
,ppraisers being &ust as nervous as appraise
Hittle or no appraiser training
%actors that shold be present in an e&ective appraisal system
7areful planning %hich ensures the purpose & ob&ective of the s$stem & this
is %idel$ understood
'-ill in carr$ing out the appraisal intervie%
'electing the most appropriate %a$ of appraisal
'etting challenging targets for the appraiser
,dopting a participative s$stem that enables those being apprised to have a
meaningful input to the s$stem
'etailed considerations that an appraiser shold ta(e into accont
3. Be properl$ organized allo% enough time
5. Ma-e sure that there %ill be no interruptions e.I4 telephone calls
6. 8iscuss issues of principle before hand %ith senior manager &Cor HR manager
2. #dentif$ possible reasons for unusual performance
A. @lan questions to be as-ed
N. #dentif$ mechanism to address individual training needs
O. #dentif$ potential re%ards for each high performance (promotion polic$, level
of salar$ increase, opportunit$ available for &ob moves+
P. #dentif$ opportunities for side%a$s development moves or &ob enrichments.
Types of appraisal
"elf appraisal
!his is a s$stematic process of a particular evaluating the individual
performance on his o%n. !his can save managerial time. But the value ma$ be
questionable.(if the appraise is too self critical+
'upervisor4appraise appraisal
!his is a process of evaluating the performance b$ the immediate superior.
He %ill demonstrate a direct vie% on the individual performance. But this ma$ not
be possible %here there are more %or-ers.
)*+ degree
!his is a process of appraising the performance of an individual b$ peers %ho
are in the same level %ithin the organization. :/ective method in pro&ect teams &
matri. organizations & reliable. 0but if there are insu9cient sta/ this ma$ not be
possible.
,-+ degree
!his is a process of appraising the performance b$ self rating vie% of supervisors &
vie% of peers. Most comprehensive approach. But costl$ & time consuming
Training
!his can be seen as a formal often short term process %here the organization
attempts increase an individuals abilit$ to better perform a particular set of tas-s.
Edcation
#n management terms this often applies to accredited training & development
leading to a certifed course(often through use of a universit$+. 'ome occupational
groups such as accountants & la%$ers have a tradition of education & training
controlled b$ professional bodies.
'evelopment
!his is a s$stematic process of improving the qualit$ of HR focusing on
individual performance.
! systematic training system involves
3. 8etermined training needs
5. #dentif$ training ob&ectives
6. 8evelopment of criteria against %hich to asses performance
2. )inding a %a$ of selecting the appropriate people for the training program
A. Ma-ing arrangement for location, t$pe & the duration of the training
N. 8evising methods for carr$ing out the training & encouraging e/ective
learning
O. 8evising %a$s of monitoring e/ectiveness
Training methods
.n/the/job training
!his ta-e place in a normal %or-ing situation, using the actual tools ,
equipment document or materials that trainee %ill use %hen full$ trained.
.&/the/job training
!his ta-e place a%a$ from the normal %or- situation. !his can be 5 t$pes.
3. #n house training
5. ;pen training
#n/ hose training
!his is %here training is provided %ithin the organization.
!dvantages
7ourse content & timing can be tailor4made (ma-ing according to 3 person+
to organization needs.
;rganizations specifc technical equipment, procedures andCor %or- methods
can be used.
:asil$ monitored
7an involve e.pert sessions from senior managers or technical sta/
7an generate a team spirit & develop culture.
7an be lin-ed specifc outcomes that are then monitored b$ participants
7an be enhanced b$ incorporating %or- base pro&ects
'isadvantages
@articipants are not e.posed to outside in1uences
@articipants ma$ be called a%a$ at short notice to deal %ith %or- problems
@articipants more li-el$ to be %ithdra% at short notice then for an e.ternal
course %ith non4returnable fees
#nhibits open description if immediate colleague or bosses are present.
.pen training
!his is %here training is given for all comers. Here emplo$ees can be o/ered
a range of stud$ ta. or courses in print, video, audio andCor computer based
programs.
!dvantages
@articipants can mi. & share problems & e.periences
'isadvantages
0ot tailor4made or specifc
Evalation of training
!raining can be evaluated at 2 levels
ReactionI4 evaluate ho% %ell the trainees are lin-ed to the training
0earningI4 measures the e.tent to %hich trainees have learned principals,
facts & theories covered in the training
1ehaviorI4 concern %ith the e.tent to %hich behavior changes as a result of
training
ResltsI4 considers %hat benefts result directl$ from training. (e.G4
improvement in qualit$, reduction in cost+
2areer planning
!his is a structured e.ercise underta-en to identif$ ones ob&ectives,
mar-etable s-ills, strengths & %ea-nesses as a part of ones career management.
!sses yor s(ills3 (no$ledge3 vales3 constraints 4 interests
#dentify $hich ne$ s(ills 4 (no$ledge
yo $ant to develop
research career opportnities
%ormlate a career action plan $ith
contingencies
2hec( the career action plan for realism
Problems associated $ith career planning
RetentionI4 once emplo$ees are %ell trained the$ ma$ move to another
organization
#ndividual failureG4 a failed assignment damages individual, compan$ & the
%or-ing relationships
!imingI4 slo% promotions or development can lead to frustration
'ize of organizationG4 for a multinational organization e.tensive relocation
can be fnicall$ costl$ & for the famil$ potentiall$ distressing de4motivating
& stressful. )or a small organization long time should be %aited for
promotion
;verseas postingI4 the issues of combing multicultural groups
Termination
!his is the end of emplo$ees duration %ith an emplo$er.
!his can be 5 t$pes.
3. <oluntar$ termination
5. #nvoluntar$ termination
5olntary termination
!his is decision made b$ the emplo$ee to leave the &ob.
:.I4 resignment, resignation, retirement
#nvolntary termination
!his is the emplo$ees departure at the hands of the emplo$er
:.G4 dismissal
'ismissal
!his is termination of a %or-ers emplo$ment %ith or %ithout notice b$ the
emplo$er.
Types of dismissals
6rongfl dismissalI4 !his means dismissing an emplo$ee %ith less or no
notice.
2onstrctive dismissalI4 this involves an emplo$ee resigning because the
emplo$er has made matters so di9cult for them to perform
7nfair dismissalI4 dismissing an emplo$ee %ithout an valid reason
5alid reasons for dismissal
!he emplo$ee %as incapable of doing the %or- through lac- of s-ills, illness,
lac- of qualifcations & so on.
Misconduct(dis honest$, disobedience+
Menuine redundanc$
7ontravention of statute(e.G4 loss of driving lisence, loss of %or- permit+
'ome other substantial reasons(e.I4 marriage to competitor+
Re$ard systems
!his can be 5 t$pes
)inancial re%ards
0on4fnancial re%ards
!ims of a re$ard system
Recruitment
Retention
@rovide a fair & consistent basis for re%arding emplo$ees
Recognize the various factors apart from performance such as &ob size,
contribution, s-ill & competence.
%inancial re$ards
:.I4 pa$Csalar$, pension, sic- pa$, medical & other insurance, house scheme, car
scheme. @er-s
Pay
!his refers to a %age or salar$ earn b$ a emplo$ee for %or-.
Types of pay
Performance related pay
!his is a s$stematic process of identif$ing& highlighting e.ceptional performance
& re%arding such performance.
!dvantages
:mplo$ee ma$ be encouraged to increase productivit$
Resources can be better targeted to recognize e/orts & achievement &
re%ard emplo$ees.
7an be used as a mechanism for promoting greater emplo$ee involvement &
commitment to an organization.
'ra$bac(s
:mplo$ees ma$ not be a%are of the levels of performance. !he$ need to
attention.
!here is sub&ectivit$ in assessment.
Proft related pay
!his scheme allo%s the emplo$ees to receive a particular percentage of the proft.
Piece rates
!his is %here emplo$ees are paid based on number of unit the$ manufactured.
"pot rates
,llocation of a specifc rate for the &ob.
8raded pay
, sequence of &ob grades against %hich a pa$ment range is attached.
1road banded
!he range of pa$ in a ban- is signifcantl$ higher than a conventional grader
structure.
#ndividal job ranges
Lsed %here a content & size of &ob is %idel$ di/erent throughout the organization.
Job family strctres
7onsist of &obs in a function or discipline such as fnancial specialists.
Pay spines
7onsist of a series of incremental points e.tending from the lo%est to the highest
paid &ob covered b$ the structure.
#ntegrated pay strctre
7over groups of emplo$ees %ho have traditionall$ being paid under separate
arrangements.
9on/fnancial re$ards
Dob redesignI4 this is a s$stematic process of criticall$ evaluating e.isting &ob
& the description & redesigning the &ob in order to eliminate occupational
stress.
Dob rotationI4 this allo%s the emplo$ees to perform additional tas-s %ith
additional responsibilities %ithin the same &ob
Dob enrichmentI4 this allo%s an emplo$ee to perform duties of higher position.
Dob simplifcationI4 this process eliminates certain duties from a &ob assuming
a capacit$ problem.
%le:ibility
!his refers to the speed %ith %hich labour mar-et adopt to 1uctuations
& changes in societ$, the econom$ or production.
Types of ;e:ibilities
Tas(<fnctional ;e:ibility
!his involves emplo$ees underta-ing range of tas-s at the same level or
di/erent levels.
9merical ;e:ibility
!his refers to the ad&ustment of the labourism ta-e over the number of %or-ers.
!his can be achieved b$ use of temporar$, part time or short time %or-ers
%inancial ;e:ibility
!his is %here %age levels are not decided collectivel$ & there are more
di/erences bet%een the %ages of %or-ers.
HR planning
!his is the term used to describe ho% companies ensure that their sta/
are the right sta/ to do the &ob.
"teps of HR planning
3. :.amine the organizational ob&ectives
5. ,ssessing the demand for HR
6. ,ssessing the HR suppl$
2. !he demand forecast & suppl$ forecast
A. !he HR plan
Reasons to have HR plan
0eed to establish cost & develop budgeting
!o rationall$ plan recruitment
!o provide a smoother means of coping %ith deplo$ment, redundancies &
retirements
!o provide structured education, development & training b$ the future
%or-force
!o allo% a degree of succession planning
!o adopt more quic-l$ to ever changing circumstances
"ccession planning
!his is the process of planning to ensure that it is unnecessar$ to
recruit an$ sta/ from outside the organization. #t uses information from the sta/
development process to plan %hich members of sta/ %ill be promoted to %hich &obs
at %hat point in time.