HRM Assignment

Answer 1:

Human Resource Management (HRM) is the term used to describe formal systems devised for the
management of people within an organization. The responsibilities of a human resource manager fall
into three major areas: staffing, employee compensation and benefits, and defining/designing work.

I) Managerial Functions

• Planning

• Organizing

• Directing

• Controlling

Objectives:

•To improve the service rendered by the enterprise to society through building better employee morale

•To enhance job satisfaction and self-actualization of employees, by encouraging and assisting every
employee to realize full potential.

•To provides facility and condition of work and creation of favourable atmosphere for maintaining
stability of employment.

Answer 2:

1)
 For a 10 Cr company:


 For a 100 Cr company:


 For a 500 Cr company:
 
 For a 1000 Cr company :

Answer 3:

Strategy vs Operational

The key difference between strategic and traditional human resource management is that they focus on
different things. Traditional human resource management focuses on the administrative tasks of human
resource management. For example, this area might include putting someone on the company health
insurance plan. With strategic human resource management, the company focuses on strategy and
operational matters instead of simply engaging in the administrative tasks that are required for every
business. This adds more responsibility to the human resources department.

Proactive vs Reactive

Another difference between traditional and strategic human resource management is when they occur.
With traditional human resource management, actions are taken only when they are necessary. By
comparison, with strategic human resource management, systems are put in place to handle any
potential human resource issues before they happen. This means that strategic human resource
management uses a more proactive form of managing people instead of simply waiting until something
needs to be done to evaluate the situation.

Organizational vs Individual

With traditional human resource management, the focus is more on the individual employee. With
strategic human resource management, managers have to focus on the organization as a whole.
Companies look at how decisions impact the entire workforce. They want to create a work place that is
conducive to growth instead of simply working on improving the performance of one person at a time.
This results in a wide-ranging view of human resource management.

Answer 4:

The term ‘motivation’ has been derived from the word ‘motive’. Motive may be defined as an inner
state of our mind that activates and directs our behavior. It makes us move to act. It is always internal to
us and is externalized via our behavior. Motivation is one’s willingness to exert efforts towards the
accomplishment of his/her goal.
Fred Luthans defined motivation as a “process that starts with a physiological or psychological deficiency
or need that activates behavior or a drive that is aimed at a goal or incentive”.

• Benefits of Motivated Employees

• Motivated employees help the management to meet the company’s goals. Without a motivated
workplace, companies could be placed in a very risky position.

• Motivated employees can lead to increased productivity and allow an organization to achieve higher
levels of output. Imagine having an employee who is not motivated at work. They will probably use the
time at their desk surfing the internet for personal pleasure or even looking for another job. This is a
waste of your time and resources. Employee motivation is highly important for every company due to
the benefits that it brings to the company.

• Increased employee commitment

When employees are motivated to work, they will generally put their best effort in the tasks that are
assigned to them.

• Improved employee satisfaction

Employee satisfaction is important for every company because this can lead towards a positive growth
for the company.

• Ongoing employee development

Motivation can facilitate a worker reaching his/her personal goals, and can facilitate the self-
development of an individual. Once that worker meets some initial goals, they realise the clear link
between effort and results, which will further motivate them to continue at a high level.

• Improved employee efficiency

An employee’s efficiency level is not only based on their abilities or qualifications. For the company to
get the very best results, an employee needs to have a good balance between the ability to perform the
task given and willingness to want to perform the task. This balance can lead to an increase of
productivity and an improvement in efficiency.

Answer 5:

Points to be kept in mind while recruiting fresh employees in the organization:

•Skill – one of the easiest way to sift through candidates is through their skillset. Can they do the job and
can they do it efficiently? Skill can be easy to measure based on the facts in front of you (resume, cover
letter and interview).

•Personality – depending on the culture of your organization, you will be looking for a certain fit. You
will want to make sure that the successful candidate will fit in and be a team player. Or perhaps you are
looking for leadership qualities, so in the interview you should be asking questions to learn more about
the personality of the candidate and if they can be a long term fir for your team.

•Desire – while you may not be looking for a candidate that is a little too passionate (if you know what
we mean), desire on its own can sometimes help to overlook a lack of skill in the candidate. Drive and
passion can help people be just as successful as skill and experience.

•Attitude – this can be an easy red flag. It’s one thing to be passionate and a go-getter, but if the
candidate displays an arrogant or overconfident attitude you may want to reconsider if they are a right
fit. On the flipside if the candidate lacks confidence, or appears to be too much of a “free spirit” you
might want to determine if that is a result of nerves during the interview and if they are serious about
joining your organization.

•Communicate Clear Expectations – Too many times, people are just hired to fill the position being
advertised. Any time your organization is in recruiting or hiring mode, you have an opportunity to revisit
what that position beholds and what it should be. Factor in things like:

1. Are they looking for short-term vs. a long-term commitment?

2. Is the position what the client is looking for?

3. Does the candidate understand the role and responsibilities?

Answer 6:

• High-volume recruiting

• Temporary staffing

• Background checks and drug screening

• Relocation

• Payroll

• Benefits administration

• Coaching

• Creating/updating employee handbooks and policy manuals

• Compensation program development/implementation

• Writing and updating affirmative action plans

• Providing sexual harassment training

• Independent contractor compliance

Answer 7:

Human capital is the skill, talent, and productivity that employees bring to a company. Coined by
University of Chicago economist Theodore Schultz in 1964, the term refers to capital produced by
investing in knowledge.

• Specialization and division of labour. Specialization allows workers to concentrate on specific tasks and
increased specialization of skills. (Though specialization can also lead to boring, repetitive jobs and
limited skill development of workers.)

•“The greatest improvement in the productive powers of labour... seem to have been the effects of the
division of labour.”

– Adam Smith

• Education. Basic education to improve literacy and numeracy has an important implication for a basis
of human capital.
• Vocational training. Direct training for skills related to jobs, electrician, plumbing nursing. A skilled
profession requires particular vocational training.

• A climate of creativity. An education which enables children to think outside the box can increase
human capital in a way that ‘rote learning’ and an impressive accumulation of facts may not.

• Infrastructure. The infrastructure of an economy will influence human capital. Good transport,
communication, availability of mobile phones and the internet are very important for the development
of human capital in developing economies.

• Competitiveness. An economy dominated by state monopolies is likely to curtail individual creativity

and entrepreneurs. An environment which encourages self-employment and the creation of business
enables greater use of potential human capital in an economy.

Answer 8:

Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of human
resources incurred in an organization, including wages and salaries and training expenses.

Human Resource Cost includes, cost invested for employees towards their recruitment, training them,
payment of salaries & other benefits paid and in return knowing their contribution to organization
towards its profitability.

The most valuable part of your company is the people—the human capital—and any plans to move your
business forward have to start there. Considering the need for Human Asset Management, which is the
management of employees as assets, combining many conceptual elements of an employee’s life cycle
through an organization focusing on that people are a company’s most important assets. Many
elements are included in the Human Asset Management area, including employer branding,
recruitment, onboarding, retention, development, culture, career management, mobility, succession
planning, talent management, performance management, employee administration and legal issues.

Answer 9:

HR professionals who move to a new organization that is larger or smaller than their previous
organization often find changes in HR metrics. As companies grow in size, organizational life cycle theory
suggests they face a range of problems, including HR problems. For example, in small start-up
organizations, when the focus is on firm survival, HR practices may appear unstructured and lack
documentation, which can increase risk should a hiring decision or employment termination be legally
challenged. Large organizations, which usually have established business strategies to reliably produce
revenue, often institute formal business practices (such as formal job descriptions, established pay
scales and standardized performance reviews) to manage that risk. Generally as staff size grows and
organizations become complex, the HR function becomes more formalized and sophisticated.