12

-------INDEX @ GLANCE------Sr.
PARTICULARS

Page No.

01.

What is HR?

02.

What is HRM?

03.

Functions of HRM.

7-8

04.

Sources of Recruitment.

9-10

05.

Selection Procedure

11-14

06.

Role of HR manager

15

07.

What is HRD?

16

08.

Importance of HRD.

17-18

09.

Methods of Performance Appraisal.

19-21

10.

Introduction to ONIDA Pvt. Ltd.

22-24

11.

Infrastructure of ONIDA Pvt. Ltd.

25

12.

Vision & Mission

26-27

13.

Milestones

28-29

14.

Hierarchy of HR @ ONIDA Pvt. Ltd.

30-33

15.

Questionnaires.

34

No.

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ACKNOWLEDGEMENT

We are grateful to Prof. HitashaRohrawho had given

valuable suggestion in the preparation of our project on HUMAN
RESOURCE MANAGEMENT.
Although due care has been taken while
preparing the project, it is possible the mistake are over looked
by us. We are thankful to our tutors for helping us to complete
this project successfully.
And, last but not least, we convey our sincere
gratefully Thanks to Prof. HitashaRohra once again of
profoundly giving us this project.

Thank you maam.

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HUMAN RESOURCE

Introduction to Human Resource

Human resource is a term used to describe the
individuals who comprise the workforce of an organization;
although it is also applied in labour economics, for example,
business sectors or even to whole nations. Human resources is
also the name of the function within an organization charged
with theoverall responsibility for implementing strategies and
policies relating to the management of individuals (i.e. the
human resources).

Human resource is a relatively modern management term,

coined as early as the 1960s - when humanity took a shift as
human rights came to a brighter light during the Vietnam Era.

Human resources progressively became the

more usual name for this function.

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HUMAN RESOURCES- PURPOSE AND ROLE

In

simple

terms,

an

organization's

human

resource

management strategy should maximize return on investment in

the organization's human capital and minimize financial risk.
Human resources seeks to achieve this by aligning the supply
of skilled and qualified individuals and the capabilities
of

the

current

workforce,

with

the

organization's

ongoing and future business plans and requirements to

maximize

return

on

survival and success.

investment

and

secure

future

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Human Resource Management (HRM)

INTRODUCTION TO HRM
It is the term used to describe formal systems devised for
the management of people within an organization. These
human resources responsibilities are generally divided into
three major areas of management
Staffing
Employee compensation
Defining/designing work

Essentially, the purpose of HRM is to maximize the

productivity of an organization by optimizing the effectiveness
of its employees. This mandate is unlikely to change in any
fundamental way, despite the ever-increasing pace of change
in the business world. As Edward L. Gubman observed in the
Journal ofBusiness Strategy, "the basic mission of human
resources will always be to acquire, develop, and retain talent;

12

align the workforce with the business; and be an excellent

contributor to the business. Those three challenges will never
change."

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Objectives of HRM
The general objective of HRM is to contribute towards the
realization of the organizational goals. The specific objectives of
HRM may be listed as follows: To achieve and maintain good human relationship within an
organization.

To enable each person to make his maximum personal

contribution to the effective working of the organization.

To ensure respect for human personality and the well being

of each individual.

To ensure maximum individual development of personnel.

To ensure satisfaction various needs of individuals for

achieving the maximum contribution towards organizational
goals.

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FUNCTIONS OF HRM

In order to achieve the above objectives, human resources

management undertakes the following activities:-

(1) HUMAN RESOURCE OR MAN POWER PLANNING

This function includes various activities like job analysis,
manpower

demand

analysis,

recruitment,

selection,

and

placement. Before hiring the people man power requirement

are estimated both in terms of number and quality. HRP
determines as to how many and what type of personnel will be
determined by the jobs which need to be staffed. Job-related
information is, therefore necessary for HRP.

PROCESS OF HRP:
1. Organizational objectives and policies:
The objective

of HRP is dependant on the oragnisational

objectives the overall objectives of the oragnisational is defined

by top management and the HR department ensures the
availability and proper utilisation of work force.

12

2. HR demand forecast:
In this step the demand is forecasted, by estimating the quality
and quantity of work force. A number of forecasting techniques
are used to estimate the manpower requirement namely:
a. Managerial judgment
b. Ratio trend analysis
c. Work study technique
d. Delphi technique
e. Flow models etc.

3. HR supply forecast:
In this step the HR department estimates the sources of
recruiting the manpower. The supply forecasting technique
measure the number the people likely to be available from
within and outside the organization. This step takes into
account both internal and external sources of recruiting the
work force.

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4. HR Programming:
In this step both the personnel demand forecast and supply
forecast are analysed in order to estimate the work force
requirements.

5. HR plan implementation:
Depending upon the analysis of human resources, demand
forecasting and supply forecasting is done. The surplus or short
stage as the case may be is ascertained and corrective action is
initiated.

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(2) RECRUITMENT,

SELECTION

AND

PLACEMENT

OF

PERSONNEL:
Different sources of manpower supply are tapped. The
application of various applicants is screened and the selected
applicants are required to take certain employment tests.
Those successful are asked to appear in the final interview. The
employment function is completed when the workers join the
organization and are placed on right jobs Thus; the following
activities are included under the staffing and employment
function.

Academic theory
Research in the area of HRM has much to contribute to the
organizational practice of HRM. For the last 20 years, empirical work has

12

paid particular attention to the link between the practice of HRM and
organizational performance, evident in improved employee commitment,
lower levels of absenteeism and turnover, higher levels of skills and
therefore higher productivity, enhanced quality and efficiency.[5] This area
of work is sometimes referred to as 'Strategic HRM' or SHRM (. [6]
Within SHRM three strands of work can be observed [7]: Best practice,
Best Fit and the Resource Based View (RBV).
The notion of best practice sometimes called 'high commitment' HRM
proposes that the adoption of certain best practices in HRM will result
in better organizational performance. Perhaps the most popular work in
this area is that of Pfeffer [8] who argued that there were seven best
practices for achieving competitive advantage through people and
'building profits by putting people first'. These practices included:
providing employment security, selective hiring, extensive training,
sharing information, self-managed teams, high pay based on company
performance and the reduction of status differentials. However, there is a
huge number of studies which provide evidence of best practices,
usually implemented in coherent bundles, and therefore it is difficult to
draw generalized conclusions about which is the 'best' way (For a
comparison of different sets of best practices see Becker and Gerhart,
1996 [9]

12

Best fit, or the contingency approach to HRM, argues that HRM

improves performance where there is a close vertical fit between the
HRM practices and the company's strategy. This link ensures close
coherence between the HR people processes and policies and the
external market or business strategy. There are a range of theories
about the nature of this vertical integration. For example, a set of 'life
cycle' models argue that HR policies and practices can be mapped onto
the stage of an organization's development or life cycle. [10] Competitive
advantage models take Porter's (1985) ideas about strategic choice and
map a range of HR practices onto the organization's choice of
competitive strategy. Finally 'configuration models'

[11]

provide a more

sophisticated approach which advocates a close examination of the

organisation's strategy in order to determine the appropriate HR policies
and practices. However, this approach assumes that the strategy of the
organisation can be identified many organisations exist in a state of
flux and development.
The Resource Based View (RBV), argued by some to be at the
foundation of modern HRM,[12]focusses on the internal resources of the
organisation and how they contribute to competitive advantage. The
uniqueness of these resources is preferred to homogeneity and HRM

12

has a central role in developing human resources that are valuable, rare,
difficult to copy or substitute and that are effectively organized.
Overall, the theory of HRM argues that the goal of human resource
management is to help an organization to meet strategic goals by
attracting, and maintaining employees and also to manage them
effectively. The key word here perhaps is "fit", i.e. a HRM approach
seeks to ensure a fit between the management of an organization's
employees, and the overall strategic direction of the company (Miller,
1989).
The basic premise of the academic theory of HRM is that humans are
not machines, therefore we need to have an interdisciplinary
examination of people in the workplace. Fields such as psychology,
industrial relations, industrial engineering, sociology, economics, and
critical theories: postmodernism, post-structuralism play a major role.
Many colleges and universities offer bachelor and master degrees in
Human Resources Management or in Human Resources and Industrial
Relations.

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HRM strategy
An HRM strategy pertains to the means as to how to implement the
specific functions of Human Resource Management. An organization's
HR function may possess recruitment and selection policies, disciplinary
procedures, reward/recognition policies, an HR plan, or learning and
development policies, however all of these functional areas of HRM
need to be aligned and correlated, in order to correspond with the overall
business strategy. An HRM strategy thus is an overall plan, concerning
the implementation of specific HRM functional areas.
An HRM strategy typically consists of the following factors:-

"Best fit" and "best practice" meaning that there

is correlation between the HRM strategy and the

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overall corporate strategy. As HRM as a field seeks

to manage human resources in order to achieve
properly organizational goals, an organization's
HRM

strategy

seeks

to

accomplish

such

management by applying a firm's personnel needs

with the goals/objectives of the organisation. As an
example, a firm selling cars could have a corporate
strategy of increasing car sales by 10% over a five
year period. Accordingly, the HRM strategy would
seek to facilitate how exactly to manage personnel
in order to achieve the 10% figure. Specific HRM
functions, such as recruitment and

selection,

reward/recognition, an HR plan, or learning and

development policies, would be tailored to achieve
the corporate objectives.
Close co-operation (at least in theory) between HR
and

the

development

top/senior
of

the

management,
corporate

in

the

strategy.

12

Theoretically, a senior HR representative should be

present

when

an

organization's

corporate

objectives are devised. This is so, since it is a firm's

personnel who actually construct a good, or
provide

service.

The

personnel's

proper

management is vital in the firm being successful,

or even existing as a going concern. Thus, HR can
be seen as one of the critical departments within
the functional area of an organization.
Continual monitoring of the strategy, via employee
feedback, surveys, etc.
The implementation of an HR strategy is not always required, and may
depend on a number of factors, namely the size of the firm, the
organizational culture within the firm or the industry that the firm
operates in and also the people in the firm.
An HRM strategy can be divided, in general, into two facets the people
strategy and the HR functional strategy. The people strategy pertains to
the point listed in the first paragraph, namely the careful correlation of
HRM policies/actions to attain the goals laid down in the corporate

12

strategy. The HR functional strategy relates to the policies employed

within the HR functional area itself, regarding the management of
persons internal to it, to ensure its own departmental goals are met .

SOURCES OF RECRUITMENT

INTERNAL RECRUITMENT:
Internal recruitment seeks applicants for position from
those who are currently employed. Internal sources include
present employees, employees referrals, former employees,
and former applicants.

There are two important internal sources of recruitment

namely: transfers and promotions:
i.

Promotions

12

A promotion is the transfer of employees to a job that pays

more money or one that enjoys some preferred status. A
promotion involves reassignment of an employee to a position
having higher pay, increased responsibilities, more privileges,
increased benefits and greater potential.
Promotion leads to shifting employees to a higher position
carrying higher responsibilities, facilities, status and pay. The
employees can be informed of such a vacancy by internal
advertisement.

ii.

Transfers
Another way to recruit from present employees is transfer
without transfer. Transfers are often important in providing
employees with a broad based view of the organization,
necessary for future promotion. Transfer involves the shifting of
employees from one job to another. At the time of transfer it is
ensured that the employees to be transferred to the new job
are capable of performing it. In fact transfer does not involve
any drastic change in the responsibilities and status of
employees.

12

iii.

Family and Friends of employees

This can be a good source of internal recruitment. This
source is usually one of the most effective methods of
recruiting because many qualified people are recruited at a
very low cost to the company.

EXTERNAL RECRUITMENT:

i.

Advertisement:
These constitute a popular method of seeking recruits as
many recruiters prefer advertisement because of their wide
reach. Advertisement is local or national newspapers and trade
and professional journals is generally used when qualified or

12

experienced personnel are not available from other sources

.Most of the senior position in industry are filled by this method
when they cannot be filled from within.

ii.

Educational Institutional:
Direct recruitment from educational institution for jobs
which

require

technical

or

professional

qualification

has

become a common practice a close liaison between the

company and educational institutional helps in getting suitable
candidates to man various positions.

iii.

Management consultants:
Management consultancy firms help the organizations to
recruit technical, professionals and managerial personnel. They
specialize in middle-level and top-level executive placement.

iv.

4. Write-ins:
Write-ins are those who send written enquires. These job
seekers are asked to complete application forms for further
processing.

v.

Radio and Television:

12

Radio and television are used generally by government

department only. Radio and television can be used to reach
certain type of job applications such as skilled workers.

vi.

Competitors:
Rival firms can be sources of recruitment. This is called
poaching this method involves identifying the right people in
rival companies, offering them better terms and luring them
away. For instance, several executives of HMT left to join Titan
Watch Company.

SELECTION PROCEDURE

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(3) TRAINING AND DEVELOPMENT OF EMPLOYEES:

12

It is the duty of management to train each employee

properly to develop technical skills for the job for which he has
been employed and also to develop him for the higher jobs in
organization. For this purpose, the personnel department will
devise appropriate training programmers. There are several on
the job and off the job methods available for training purposes.
Training and development programmers can be designed
depending on the job requirement.

(4) APPRAISAL OF PERFORMANCE OF EMPLOYEES:

Performance appraisal involves assessment of the actual
performance of an employee against what is expected of
him/her. Such assessment is the basis for awarding promotion,
effecting transfers or assessing training needs.

(5) REMUNERATION OF EMPLOYEES:

This function is concerned with the determination of
adequate and equitable remuneration of the employee in the
enterprise. The sub-function concerned with the determination
of equitable wages includes the following:

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Job evaluating to determine worth of various jobs in terms of

money
Comparing wages of the enterprise with those in the industry
and removes inconsistencies, if any.

Formulation of policies regarding pension plans, profit sharing

plans, non monetary benefits, etc.

(6) GOOD WORKING ENVIRONMENT:

It is the responsibility of personnel department to provide
good working conditions to the employees. These includes
drinking

water

facilities,

bath

room

facilities,

hygienic

environment, good lighting, safety of employees, etc. mere

appointment and training of employees is not sufficient, they
must be provided with good working condition so that they may
like their work and work place and maintain their efficiency.
Working condition certainly influence the motivation and
morale of the employees.

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(7) WELFARE ACTIVITIES:

These activities related to physical and social well being of
the employees and their families they include provision for
medical facilities and first aid box provision of rest room,
crche, recreation education of children, canteen, employees
counseling, housing, group insurance, etc.

(8) HUMAN RELATION:

In most of big organization, the HR manager help in
collecting bargaining, joint consultation and settlement of
disputes, whenever they arise. The personnel manager in
possession of full information relating to personnel and also has
the working knowledge of various labour enactments. It is
important to point out that he responsibility of fulfilling the
requirements of various labour laws like factories Act, Industrial
Dispute Act, etc., also rest with rhea personnel department.

(9) GRIEVANCES HANDLING:

12

He helps in laying down the grievance procedure to

redress the grievance of the employees.

the personnel

manager can do a great deal in maintaining industrial peace in

the organization as he is responsible for seating various
committees on discipline, labour welfare, safety, grievance, etc.
he helps in laying down the authentic information to the trade
union leaders and tries to convey them the personnel policies
and programmers of the enterprise.

(10) RECORD AND STATISTICS:

The record and statistic about the workforce are important
for various reasons. Firstly, they help in taking, decision related
to transfer and promotion. Secondly they help in performance
appraisal of the employees. Thirdly, they reveal the human
resources talent available with the organization. Finally, they
help in identifying the weaknesses in the employees and the
arrears in which they need training.
It is the duty of personnel department to maintain the
records of the employee working in the enterprise. It keeps full
record about training, achievements, transfer, promotion, etc. It

12

also preserves many other records relating to the behavior of

the personnel like absenteeism and the labour turnover and the
personnel programmes and policies of the organization.

(11) REVIEWING AND AUDITING MANPOWER MANAGEMENT:

The HR audit the organization determines the organisation
gaps and needs of manpower.

(12) MISCELLANEOUS:
Role analysis for job occupants
Job rotation
Quality circle, organisation development and quality of
working life
Potential appraisal
Feed back counseling.

12

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ROLE OF HR MANGER IN CHANGE IN BUSINESS

ENVIROMENT

HUMANITARIAN ROLE
Reminding moral and obligation to employees.

COUNSELOR
Consultation to employees about material, health mental,
physical and career problems.

MEDIATOR
Playing the role of a peace maker during disputes, conflicts
between individuals and group or management.

SPOKESMAN
To represent the company in media and other forums because
he has better overall pictures of his companys organization.

PROBLEM SOLVER

12

Solving problem of over all human resources management and

long term organizational planning.

CHANGE AGENT
Introduction

and

implementing

institutional

changes

and

installing oragnisational programs.

MANAGEMENT OF MANPOWER RESOURCES

Broadly concerned with leadership both in group and individual
relation and labour management relations.

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HUMAN RESOURCE DEVELOPMENT

(HRD)

What Is Human Resource Development (HRD)?

Human Resource Development (HRD) is the framework for
helping employees to develop their personal and organizational
skills, knowledge, and abilities. Human Resource Development
includes such opportunities as employee training, employee
career

development,

performance

management

and

development, coaching, mentoring, succession planning, key

employee identification, tuition assistance, and organization
development.

The focus of all aspects of Human Resource Development

is on developing the most superior workforce so that the
organization and individual employees can accomplish their
work goals in service to customers.

12

Human Resource Development can be formal such as in

classroom training, a college course, or an organizational
planned change effort. Or, Human Resource Development can
be informal as in employee coaching by a manager. Healthy
organizations believe in Human Resource Development and
cover all of these bases.

IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT

12

Human Resource is the most Important and vital Factor of

Economic Development or it can be said that humans are the
agents of development. Some of the importance of Human
Resource or Human Capital is:

1) Country Develops if The Human Resource is Developed:

To enhance economic development the state constructs roads,
buildings bridges, dams, power houses, hospitals, etc. to run
these units doctors, engineers, scientist, teachers, are required.
So if the state invests in a human resource it pays dividend in
response.

2) Increase in Productivity:
The batter education, improved skills, and provision of healthy
atmosphere will result in proper and most efficient use of
resources (non-natural & natural) which will result in increase in
economic production.

2) Eradication of Social and Economic Backwardness:

Human Resource development has an ample effect on the
backwardness economy and society. The provision of education

12

will

increase

literacy

which

will

produce

skilled

Human

Resource. Similarly, provision of health facilities will result in

healthy Human Resource which will contribute to the national
economic development.

3) Entrepreneurship Increase:
Education, clean environment, good health, investment on the
human

resource,

will

all

have

its

positive

effects.

Job

opportunities would be created in the country. And even

business environment will flourish in the state which creates
many job opportunities.

4) Social Revolution:
Because of Human Resource development the socio economic
life of the peoples of a country changes drastically. Over all look
changes thinking phenomena changes, progressive thoughts
are endorsed in to the minds of peoples.

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SCOPE OF HRD/ HRD INSTRUMENTS:

Performance appraisal
Potential appraisal
Career planning
Training and employee development
Organisation development
Rewards
Employee welfare and quality of work life
Human resource information

Let us study PERFORMANCE APPRAISAL in detail..

WHAT IS PERFORMANCE?

Performance is synonymous with behaviour; it is what

people actually do. Performance includes those actions that are
relevant to the organizational growth and can be measured in
terms of each individuals proficiency (level of contribution).

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Effectiveness Performance refers to the evaluation of results of

performance that is beyond the influence or control of the
individual.

In simple terms performance appraisal may be understood

as the assessment of an

individuals performance in

systematic way, the performance being measured against such

factors as job knowledge, quality, and quantity of output,
initiative, leadership ability, supervision, dependability, cooperation, judgment, versatility, health and like assessment
should not confined to past performance alone. Potential of the
employee for future performance must also be assessed.

DEFINITION

Performance appraisal is the process of obtaining,

analyzing and

recording information about the relative

worth of an employee. The focus of the performance appraisal

is measuring and improving the actual performance of the
employee and also the future potential of the employee. Its aim
is to measure what an employee does.

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METHODS OF PERFORMANCE APPRAISAL

12
T"M
orP
daE
edR
riF
ntO
Ri
Mo
enA
taN
hlC
oME
deA
stP
hP
oR
dA
sI
S
A
L
"

Essay Appraisal Method

Straight Ranking Method
Paired Comparison
Method
Critical Incidents
Methods
Field Review Method
Checklist Method
Graphic Ratings Scale
Method
Forced Distribution
TRADITIONAL
METHODS

Method

ESSAY APPRAISAL METHOD

Management By Objectives
(Mbo)
360 Degree Appraisal
Assessment Centers
Behaviourally Anchored Rating
Scales
Human Resource Accounting

12

This traditional form of appraisal, also known as "Free

Form method" involves a description of the performance of an
employee by his superior.

STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of
performance appraisal. In this method, the appraiser ranks the
employees from the best to the poorest on the basis of their
overall performance.

PAIRED COMPARISON
A better technique of comparison than the straight ranking
method, this method compares each employee with all others
in the group, one at a time.

CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates
the employee on the basis of critical events and how the
employee behaved during those incidents. It includes both
negative and positive points.

12

FIELD REVIEW
In this method, a senior member of the HR department or a
training officer discusses and interviews the supervisors to
evaluate and rate their respective subordinates.

CHECKLIST METHOD
The rater is given a checklist of the descriptions of the
behaviour of the employees on job. The checklist contains a list
of statements on the basis of which the rater describes the on
the job performance of the employees.

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MODERN METHODS

ASSESSMENT CENTRES
An assessment centre typically involves the use of
methods like social/informal events, tests and exercises,
assignments being given to a group of employees to assess
their competencies to take higher responsibilities in the future.

BEHAVIORALLY ANCHORED RATING SCALE(BARS)

BARS is a relatively new technique which combines the
graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of
behavioral statements describing important job performance
qualities as good or bad

HUMAN RESOURCE ACCOUNTING METHOD

Human

resources

are

valuable

assets

for

every

organization. Human resource accounting method tries to find

the relative worth of these assets in the terms of money. In this

12

method the Performance appraisal of the employees is judged

in terms of cost and contribution of the employees.

360 DEGREE PERFORMANCE APPRAISAL

360

degree

feedback,

also

known

as

'multi-rater

feedback', is the most comprehensive appraisal where the

feedback about the employees performance comes from all
the sources that come in contact with the employee on his job.

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