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These are carried out by HR managers to fulfil the goals and objectives of the organisation.
They are classified into two broad categories, managerial and operative functions.

 
   „

„ !
R? lanning R? |   
 
R? Organising R? Pl 
R? ptaffing R? p l 
R? ^irecting R? m 
 
R? Êontrolling R? V  m 
 Pl  
R?  ly 
R?  ly 

„    
  

? 
|t involves the process of pre-determining the personnel programmes that are
necessary to attain the organisational goals. Accurate forecasting is vital to the success of
any plan. The steps involved in the planning are:
R? stablishing goals and objectives to be achieved
R? ^eveloping rules and procedures
R? ^etermining plans and forecasting techniques

Œ? 
|t͛s a process through which the firm establishes its structure and determines the
authority, responsibility and accountability of each member in relation to the job.
Organising involves:
R? xiving each member a specific task
R? stablishing departments and divisions
R? ^elegating authority to the members
R? stablishing channel of authority and communication
R? Êreating a system to coordinate the works of the members

? 
This deals with the creation and maintenance of human resources through
employment, compensation, benefits, training and development and industrial relations
measures. The steps are:
R? ^etermining the type of people to be hired
R? Recruiting prospective employees and selecting the best ones from them
R? Êompensating the employees
R? Training and developing the employees
R? petting performance standards and evaluating the employees performance
R? Êounselling the employees

6? ^
|t͛s the sum of several activities like communication, leadership and motivation.
^irecting as a function, aims at securing willing cooperation from the individuals and
groups to achieve the predetermined goals. |t includes the following activities:
R? xetting works done through subordinates
R? „otivating subordinates to strive for better performance
R? „aintaining the group morale

M?

|s the process of checking the efficiency of the individuals and the groups in fulfilling the
plans and goals through follow -up measures? The processes involved are:
R? stablishment of standard performance
R? „easurement of actual performance
R? Êomparison of actual performance with the standard one to find the deviation
R? |nitiation of corrective action


 " 
 

The operative functions of personnel management are related to specific activities


of personnel management viz., employment, development, compensation and relations. All
these functions are interacted by managerial functions. Further these functions are to be
performed in conjunction with management functions.



? # $#

|t is the first operative function of HR„. mployment is concerned with securing and
employing the people possessing required kind and level of human resources necessary to
achieve the organizational objectives. |t covers the functions such as j ob analysis, human
resources planning, recruitment, selection, placement, induction and internal mobility.

Œ? V% $

|t is the process of study and collection of information relating to the operations and
responsibilities of a specific job. |t include s:

R? Êollection of data, information, facts and ideas relating to various aspects of jobs including
men, machines and materials.
R? reparation of job description, job specification, job requirements and employee
specification which help in identifying the natu re, levels and quantum of human resources.
R? roviding the guides, plans and basis for job design and for all operative functions of HR„.


? # 

|t is a process for determination and assuring that the organization will have an
adequate number of qualified persons, available at proper times, performing jobs which
would meet the needs of the organization and which would provide satisfaction for the
individuals involved. |t involves

R? stimation of present and future requirement and supply of human resources basing on
objectives and long range plans of the organization.
R? Êalculation of net human resources requirement based on present inventory of human
resources.
R? Taking steps to mould, change, and develop the strength of existing employees in the
organization so as to meet the future human resources requirements.
R? reparation of action programs to get the rest of human resources from outside the
organization and to develop the human resources of existing employees.


6? #

|t is the process of searching for prospective employees and stimulating them to apply
for jobs in an organization. |t deals with:

R? |dentification of existing sources of applicants and developing them.


R? Êreation / |dentification of new sources of applicants.
R? ptimulating the candidates to apply for jobs in the organization.
R? ptriking a balance between internal and external sources.

M? 

|t is the process of ascertaining the qualifications, experience, skill, knowledge etc.,


of an applicant with a view to appraising his / her suitability to a job appraising.

&'

R? Framing and developing application blanks.


R? Êreating and developing valid and reliable testing techniques.
R? Formulating interviewing techniques.
R? Êhecking of references.
R? petting up medical examination policy and procedure.
R? ¦ine manager͛s decision.
R? pending letters of appointment and rejection.
R? mploying the selected candidates who report for duty.

=? #

|t is the process of assigning the selected candidate with the most suitable job in terms
of job requirements. |t is matching of employees specifications with job requirements. This
function includes:

R? Êounselling
R? Êonducting follow-up study, appraising employee performance in order to determine
employee͛s adjustment with the job.
R? Êorrecting misplacements, if any.

D? ''  

|nduction and orientation are the techniques by which a new employee is


rehabilitated in the changed surroundings and introduced to the practices, policies,
purposes and people etc., of the organization.
R? Acquaint the employee with the company philosophy, objectives, policies, career planning
and development, opportunities, product, market share, social and community standing,
company history, culture etc.
R? |ntroduce the employee to the people with whom he has to work such as peers,
supervisors and subordinates.
R? „ould the employee attitude by orienting him to the new working and social environment.



  „  
„  „ 

&##( 

The human resource or personnel manager controlling to manage his department.


He has also to perform certain operative functions of recruitment, selection, training,
placement etc, which the other line managers may entrust to him. He is basically a
manager whatever may be the nature of his operative functions. Just as finance assesses
cost, marketing emphasizes customers, personnel is people-centred. pome of the important
roles of human resources manager in an organization are: -performs managerial as well as
operative functions. pince he is a manager, he performs the basic functions of management
like planning, organizing, directing and

)? $#*
olicy formulation is one of the important tasks of the human resource manager. |t is
with a view to overcome problems of recurring nature, or to prevent anticipated problems
in the area of human resource management that policies are framed. The huma n resource
manager helps the top management in the formulation of policies on wage and salary
administration, transfer, appraisal, welfare activities, personnel records and statistics,
working environment etc.

%)? '!$*
The advisory role of the human resource manager is of crucial importance. ¦ine
managers are generally confronted with a variety of problems in their day to day
operations. These problems may include grievance over distribution of overtime work,
annual increase in pay, transfer, promotion, disciplinary action and so on. |n all such
matters, the personnel manager can offer useful advice because he is familiar with
personnel policies and practices, labour agreements, labour laws, etc.
)? + *
The human resource manager attempts to achieve and maintain good industrial
relations in the organization. He is responsible for setting up various committees on
discipline, labour welfare, safety, grievance etc. He helps in laying down the grievance
procedure to redress the grievances of employees. He also conveys the views of the trade
union leaders to the higher management. Thus he acts as a linking pin between the
management and the workers.

')?  ! *
The human resource manager generally acts as a spo kesman of the top management or
representative of the company and communicates management policies and decisions that
affect people in the organization. |t is because he has better understanding and overall
picture of the company͛s operation. pometimes, he also acts as worker͛s representative to
put forward their problems to management, particularly in non -unionized organizations.

)? ^*#+*
The human resource manager also plays an effective role in decision -making on issues
related to human resources. He formulates and designs objectives, policies and programs
of human resource management.

)? „'*
The human resource manager often acts as a mediator in the event of conflict between
employees, or groups of employees, s uperior and sub-ordinate, and even between
management and employees. Thus he attempts to maintain industrial peace and harmony
in the organization.

)? '& *


The human resource manager provides leadership and guidance to the workers and
their groups. He ensures effective communication in the organization and influences the
workers for extending their co-operation in extending the organizational objectives. 

&)? ‰*
The human resource manager acts as a welfare officer in t he organization. As welfare
officer, he is concerned with provision of canteen, crèches, transport, hospital and other
welfare services for the benefit of workers and their family members.

)? &*
The human resource manager maintains the records of the employees working in the
enterprise. On the basis of records, he undertakes research in various personnel areas such
as absenteeism, labour turnover, alcoholism etc and suggests suitable measures for
improvement to the top management. 


"    „

volution and development of HR„ consist of 11 stages beginning prior to the


industrial revolutions in UK and continuing up to the present.

*^   ,6  ^*D  ^)

re-industrial period is characterized by the absence of any formal HR„ with in


organizations .But there were some dramatic changes which ignited the modern HR„.
They are

*? Êessation of feudalism, release of labour from land and the beginning of the free
employment relationship.
*? phift from subsistence agriculture to a commercial mixed economy, a diffusion of economic
control and distribution of wealth and income.
*? ppectacular growth of town with the middle class and villages along with the middl e class
that included skilled craftsmen and merchants.
*? ^evelopment of putting out or domestic system.

 ^  "    ^ 


- - „ 

|ndustrialization replaced the human effort and skill by machines. Factory system which
was developed due to the industrial revolution gave birth to rationalization of work and
division of work. Necessity of supervising was also introduced.

The personal practices become


autocratic, based upon a commodity concept of labour, there was a total neglect of the
human factor the focus was upon materials, markets and production. The factory owner
delegated the responsibility to the foreman which eventually re sulted in drive system of
management that was characterized by the use of force and fear.


#&„'
 '„
 # 

The period of 1860 to 1900͛s witnessed a growth in corporate form of organization, the
separation of the operation from the ownership of firms and the employment of salaried
managers. The modern enterprise along with managerial capitalism emerged.

|n spite of organizational growth and technological advances there was no improvement in


HR„. The traditional factory management practices were responsible for low productivity
and wages, high rates of turnover and increase in labour and management conflicts.

" „#.‰‰+''$&$ 

pcientific management (p„ and Welfare Work were responses by management to worker
related problems in the factory. p„ represented an effort to deal with labour and
management inefficiencies through reorganization of production methods and
rationalization of work. Welfare w ork represented the efforts to deal with labour problems
by improving worker conditions. |ndustrial psychology represented the application of
psychological principles towards increasing the efficiency of industrial workers.

The last quarter of the 19 th century saw engineers introducing dramatic changes that
rationalized factory production and industrial management system. They introduced
personnel practices to rationalize employment procedures.

‰ $/ „# 

FW Taylor was the father of scientific management. He was concerned with worker
inefficiency and the need for managers to gain the co -operative effort of the employees.
Time and „otion studies became the heart of p„ and represented a way of accurately
determining the amount of work a man could do.

Taylor sums up p„ as:

1.? pcience, not rule of thumb.


2.? Harmony not discord.
3.? Êooperation not individualism and
4.? „aximum output in place of restricted output.

Taylor proposed p„ as partial solution to labour problem because it would increase


production at lower cost to employers and result in higher wages for workers as they would
compensated according to their output.
Êontributions of p„ to HR„

1.? Taylor͛s proposal for functional management called attention to the need for a separate
human resource function in organizations.
2.? Taylor demonstrated the feasibility of job analysis as a basis for employee selection,
training, job evaluation and compensation.
3.? Taylor demonstrated that work and jobs can be systematically studied, analyzed,
redesigned or improved upon.
4.? Taylor stressed the importance of proper selection procedures and training methods.
5.? Taylor advanced the idea of differential pay on the basis of productivity.
6.? Taylor highlighted the need for workers to be w on over and led by management.

‰‰+

Welfare Work like p„ was an attempt at a more systematic approach to management. |t


has been defined as anything done for the comfort and improvement, intellectual or social,
of the employees, over and above the wages paid, which is not a necessity of the industry,
nor required by the law. The primary purpose was:

1.? The averting of industrial conflict and unionization.


2.? The promotion of good management and worker relations.
3.? The efforts to increase worker productivity and reduce turnover.

'$&$

While p„ focused on the job, |ndustrial sychology focused on the worker and decreasing
the psychological and physiological costs of work. |ndustrial sychology began in 1931
when Hugo „unsterberg published sychology and |ndustrial efficiency. 

"‰'‰'&#„ ,0 *06)

World War 1 provided the apt conditions that resulted in the growth of business around
the world, and the emergence of HR„ as a profession. Th e war brought attention to the
need for scientific personnel administration and the activities promoting the welfare and
efficiency of workers. When the war ended personnel management evolved as a primary
function along with financial, production and sales departments.

1„

A large number of firms were established in us and the UK during 1951 and 1920 firms
adopted functional management which removed the hiring and firing functions from the
foreman and placed the responsibility to the emp loyment or the personnel department, in
addition the was an integration of HR„ activities and welfare. The year 1981 recorded the
birth of personnel management as a profession.

"&&##!# 

From the early times HR„ focused on human relations. Human relations were associated
with lton mayo. Human relations were responsible for the addition of the human factor.
Welfare work into industrial psychology in personnel profession it mainly focused on
increasing productivity by discovering the needs of the workers, the way of managing
people.

Hawthorne experiments actually showed that working conditions affected the productivity,
which led to the beginning of human relations movement in 1945 and continued till 1960, it
was later on was adapted as a new area of organizational behaviour. Human relations
made the manager responsible for integrating the employees into work situation in a way
that would motivate them to work together co -operatively and productively.

^%1##'&###

pcientific management focused on the requirements of the job and the economics rewards
as motivational elements whereas human relations revealed the importance of non
economic and social rewards as incentives. pm helped to realize that workers have physical
and psychological needs; human relations contributed the understanding that workers
have social needs.

 " & '   '  ' &  ##
#.0M*0D 

HR„ function which evolved during the world war had a set back during the great
depression. After depression there was an increased need of human relations management
as a result of growth in formations of unions. The provision of several labour acts led to the
formation of unions which resulted in the evolution of human relation functions. The
general focus of HR„ functions was on |R as the primary need was to operate in the
collective bargaining framework of labour relations. xovernment involvem ent in the
economy during the war also led to the evolution of personnel department in every
company.
"2$‰+ 

^uring the mid 1960s and throughout 1970s there was a rise of viewpoint that
employees should be considered as assets rather than liabilities. fforts were taken to
satisfy interest of both employer and employee through new policies and strategies that
maximised overall productivity of the organisation.

' ### #' 

The efforts of this era were driven by not only by a realisation that investment in
human resource were sound and should show a considerable return but also by the
changing nature of the workforce. As the work force is becoming more educated their
attitude, value and belief about the role of the work and organisations were changing.

|n many ways the quality of work life era was also promoted by a series of social secur ity
legislation passed during this period. These acts collectively exercised a substantial
influence on both psychological and physical quality of work life in organisation.

3 &#
# $„ 

pince the 1970s, the „ side of the HR„ function has experienced an evolution from being
a maintenance function, secondary to the |R function, to representing one of critical
importance to the effectiveness of the organisation.

&„ 

$ there has been a trend in management to make strategic choices that has
represented aggressive union avoidance policies and have resulted in a decrease in union
representation of their workers.

'$ much more reliance has been placed on the employer employee relations and
dealing with employees directly as individuals rather than on management -union relations
and dealing with employees indirectly and collectively.

&'$HR„ aims at creating a sense of mutuality among the workers and management so
that the workers are considered as assets to the organisations to attain competitive
advantage.
&$ the successful application of Total Quality management (TQ„ principles by
Japanese companies contributed to the recognition that employees a virtual organisational
resource.


&„ 

Following were the changed functions -

y „ implies human resource as expense whereas HR„ indicates emphasis on human
resource to be managed.

'$„ signifies human resource administrative sub functions, maintenance activities


that are reactive, passive and secondary to other significant business function. On the other
hand, HR„ indicates a proactive approach, an integration of human resources sub
functions, expansion of the function, position and strategic importance of HR„ within the
organisation.

pTAx X: pTRATx|Ê FOÊUp RA

By 1970 there was a complete change in the way people perceived


HR function. „eyer referred HR directors as the new corporate heroes .There occurred
many chief executive officers who rose to top ranks through HR function. |n the „.B.A
syllabus business strategy was merged with Human Resource „anagement which led to
the emergence of ptrategic Human Resource „anagement. ptrategic HR„ had brought HR
function into closer contact with the top executives of the firm and has helped to graft a
role for HR„ as a strategic business partner.

peveral factors have contributed to the strategic role of HR„. These can be analyzed as
follows:

i.? Organizations became productivity conscious due to the need to operate in a global
economy and the realization that competitive advantage is due to managing human
resources.

ii.? Widespread downsizing, restructuring and redesigning of organizations. As a result old


hierarchical type structure with tight controls has given way to flatter structures and larger
spans of control.
iii. ? Need for sound human resources strategy to effectively manage the highly diverse
workforce of the future.

pTAx X|: TH HR„ FUNÊT|ONp TO^AY

Today͛s HR„ functions are different from that of the past in many ways. Firstly today͛s
HR„ is characterised by the emphasis on the integration of traditional „ activities as well
as HR„͛s involvement in overall organisational planning and change. pecondly HR„ today
is characterized as a partner in organisational change, creator of organisational culture and
facilitator of organisational commitment. Third, HR„ is characterised by the
decentralisation of many of the traditional HR„ activities from personnel specialists to
senior line management. Fourth current HR„ is characterized by a focus on individual
employees rather than on collective management -trade union relations. Furthermore HR„
has become a partner with other management functions and has become increasingly
responsible to cultivate the requisite culture that is conducive of required behaviours.

Role of Human Resource in |ndustry and pociety:

Role of human resource or personnel manager in the industry and society arises from the
fact that personnel are indispensible resou rces for carrying out any productive operation.
To quote Oliver pheldon, ͞No industry can render efficient so long as the basic fact remains
unrecognized that it is principally human. |t is not a mass of machines and technical
processes but a body of men. An industrial society is conspicuous by complex nature of
forces which influence the behaviour of individuals and groups within and outside their
workplace. The focus of personnel management for a long has been management of
industrial relations including employer͛s relationship with individual employee and the
relationship between management and unorganized unions. The term ͚industrial relations͛
and ͚labour relations͛ were popularly used with reference to personnel function due to rise
in collective bargaining and other related functions.

The role of personnel management in industry is underlined by the complex and dynamic
nature of environment under which the modern large -scale industries functions. The
impact of technology on organization structure, politicization of workers͛ union, and the
growing consciousness of industrial employees about their rights and privileges, have made
the role of personnel management increasingly more important in industrial undertaking.

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Two way linkages allow for consideration of human resources issues during the strategy
formulation process. This integration occurs in three sequential steps. First the strategic
planning team informs the HR„ function of the various strategies the company is considering.
Then HR„ executives analyze the human resources implications of the various strategies,
presenting the results of this analysis to the strategic planning team. Finally, after the strategic
decision has been made, the strategic plan is passed on to the HR„ executive who develops
programs to implement it. The strategic planning function and the HR„ function are
interdependent in two way linkage.

6? !+

|ntegrative linkage is dynamic and multifaceted, based on continuing rather than sequential
interaction. |n most cases the HR„ executive is an integral member of the senior management
team. Rather than an iterative process of information exchange companies with integrative
linkage have their HR„ functions built right into the strategy formulation and implementation
process.

Thus in strategic HR„, the HR„ function is involved in both strategy formulation and strategy
implementation. The HR„ executive gives strategic planners information about the company͛s
human resource capabilities and these capabilities are usually a direct function of the HR„
practices. This information about human resource capabilities helps top managers choose the
best strategy because they can consider how well each strategic alternative would be
implemented. Once the strategic choice has been de termined, the role of HR„ changes to the
development and alignment of HR„ practices that will give the company employees having
the necessary skills to implement the strategy. |n addition HR„ practices must be designed to
elicit actions from employees in t he company.

R?     


 

 '  When goals are set, it͛s people who work to fulfill those goals.
Having the right people in the right places is vital, and if new hiring is to occur, finding the
right people is equally vital. HR folks are usually on top of the employee market, and
decisions will be more effective if HR knows firsthand the clear direction of the company.
They can immediately speak to any potential conflicts between what a company wants and
what is truly realistic in HR terms, thus helping ensure the plans are workable right from
the start.

Π(^! # ptrategic planning often encompasses change in


workplace systems or processes. Although individual departments are likely aware of the
status of their own departments, HR folks are often aware of group initiatives and changes
that has occurred company-wide. Accordingly, they will be able to speak to O^ issues with
unique insights on how changes may impact systems and processes already in place.

 5^! # Research shows that only 20% of the workforce has the skills
that will be required ten years from now. That means training and development are
guaranteed to be needed at some point of the strategic growth process. Again, HR^ folks
will be able to speak instantly to any issues, and possibly provide input that could help a
company achieve its goals faster. 


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As the area of human resource management becomes more strategic and more global it is
becoming more important and critical to the organization. While not all companies are recognizing
this yet, those that are most effective and most admired, seem to be the ones that are. As a
consequence they are doing many things that make their management of human resources as
effective as possible. |n doing so doing, several things are being observed:

1 ? The roles that the HR department and its HR professionals have traditionally played are changing
substantially;
2 ? The competencies required of the HR professionals to play these new roles are also changing
rapidly with dramatic implications for the current HR staff and leaders;
3 ? The HR professionals are working more closely, in partnership, with line managers, employees,
suppliers and representatives of labour unions, strategic partners and members of community
organizations in order to be more effective in managing the firm͛s human resources; and finally,
4 ? The structure of the HR department and the HR function are being reshaped in order to better
serve the various stakeholders of HR in order to make the management of people and the
organization more effective.

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organisation that meet these challenges are likely to outperform those that do not

 ternal forces that affect the organisation's performance but are beyond the
nvironmental control of management

Êhallenges Rapid Êhange Workforce ^iversity xlobalisation


volving work and Family
¦egislation
Role

Internal forces that affect the organisation's performance but are within the
Organizational control of management
Organisational
Êhallenges Restructuring
Organizational Êulture Technology

Unions Quality

Human Resource issues that address the decisions most pertinent to individual
|ndividual employees
„atching eople and thics and pocial
Êhallenges Organisation Responsibility
roductivity

Brain ^rain Êhanging ^emographics


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The Human Resources (personnel department has staff relationship with other department /
managers in the total organization. The personnel department is responsible for advising
management from „anaging ^irector to the lowest line supervisor on all area r elating to the
personnel management and industrial relations. ersonnel department also performs various
functions of employment, training and development. |t represents management in many of the
relationships that affect the organization as a whole. |t is also responsible for representing various
workers problems to management.

ersonnel department generally acts in an advisory capacity; it provides information, offers


suggestions and is not responsible for the end results. The personnel managers must exe rcise control
very tactfully in order to win the confidence and cooperation of all line managers. He has to persuade
the line managers to work with staff specialists and not against them. The authority of personnel
manager should derive from concrete perso nnel policies and programs and from the advantage and
result of accepted specialized knowledge.
There are many different roles and responsibilities that can be performed by the HR department
depending on the size of the organization, the demographic profile of the employees' roster, the
industry where the business belongs, values and corporate culture prevalent within, and the priorities
of top management, and in the case of a small business, the priorities of its owner .

The HR in small organizations may take full responsibility for all human resource activities. Whereas in
others, it may share the roles and responsibilities of other departments such as the finance or
administration. While in others, it acts as an internal consultant and makes al l the HR-related
decisions in support of strategic business directions.

|n the recent years it is noticeable that more and more organizations are looking at HR professionals
as their strategic partners in quality management, corporate planning, business o perations, and
business profitability. HR management now takes the forefront in strategic planning and expansions
in ways that enhance the image and value of the organization.

The table below highlights the specific KRA (Key Result Areas that any HR„ dep artment should
deliver results to; and clarifies its real roles and responsibilities:

R? # $#'

|nterviewing, recruiting, testing, temporary labour coordination.

R? '^! #

Orientation, performance management, skills training, productivity enhancement.

R?
# 

Wage and salary administration, job descriptions, executive compensation, incentive pay, job
evaluation.

R? 9

|nsurance, vacation leave administration, retirement plans, profit sharing, stock plans.

R? # $ !

mployee assistance programs, relocation services, outplacement services.


R? # $'
##$

Attitude surveys, labour relations, publications, la bour law compliance, discipline

R? '

|nformation system records.

R? &' $

pafety inspection, drug testing, health, wellness.

R? 

|nternational human resources, forecasting, planning, mergers and acquisitions.

 'V% $& 

5V% $ 
Êompanies undertake HR planning to place the right numbers of candidates in the departments most
suitable to their skills at the most appropriate times. The company's HR department and the top
management work in close accordance to carry out this planning exercise.

? 
2? HR planning is essential. Understaffed organizations cannot reap the benefits of optimal
productivity, while overstaffed organizations spend capital on salaries for unnecessary
positions.



2? Through HR planning, the organization takes stock of the employees placed in all its strategic
departments. „anagement then transfers employees from overstaffed departments to
understaffed ones. The organization also evaluates and analyzes whether employees work in
the departments appropriate for their skills and knowledge.

##

2? A company conducts HR planning once annually, as well as when it plans an expansion. ^uring
an expansion, top management projects how many employees the company needs and adjusts
the budget for their salaries.

 „  
 
Human resource planning is a process of identifying and then matching t he human resource
requirements and availability in order to determine the future HR activities of the organization on the
basis of the overall organizational objective.

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U? Assessing future recruitment requirements.


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U? Êore competency analysis (assessing the extra-ordinary abilities of the firm . These abilities
may be its advanced technology, well-reputed management, problem-solving ability,
employees͛ and KpA.

 *6;'#

Forecasts involve estimating the future requirements of the organization in terms of the nature and
the number of people.

Forecasting techniques commonly used for human resource forecasting are

;$

U? Ratio analysis is the analysis of the relationship between any two numerical variables.

U? |t presumes a certain relationship between two given variables and using that relationship,
predicts future HR requirements.

;^ &&8 

U? The ^elphi technique is bas ically a group-based systematic forecasting method.

U? This technique does not require any face-to-face participation by the experts.

U? This method aims at maximizing the benefits and minimizing the dysfunctional aspects of
group decision-making as it eliminates group dynamics and individual dominance from the
process.

;# &8 

U? |t is an interactive mode of decision -making.


U? ach expert in a group independently develops HR requirements and presents it before other
experts in the group.

U? ach member͛s proposal is relatively graded and the top-ranked proposal is selected as the
final HR forecast.

;#:'#

U? The forecasting in managerial judgement is based on the managers͛ subjective views on the
possible human resource requirements in the future.

U? Forecasts are made about the HR requirements, usually by the senior managers of the
organization based on their experience.

$ #:'#

U? Bottom-up approach- |n this method, the process of HR forecasting begins with the lowest
level of the managerial hierarchy and the managers in charge of each division or department
forecast the HR requirements. This forecasting process is then moved up gra dually to the
higher levels of the management.

U? Top-down approach- |n this method, experts working at the highest levels of the management
forecast the HR needs of the organization on the basis of the information available and the
field expertise.

;1+'$&8

U? |t aims at examining the business operations to achieve the optimum utilization of the human
and physical resources available.

U? The major purpose of this technique is to improve the employees͛ productivity and
organizational efficiency.

U? This technique is normally carried out through method study and work measurement
techniques.

;(*%

U? mero-base forecasting requires lines managers to justify the need to continue with the
positions or jobs that fall vacant in their department.

U? |t does not consider any position as eligible for routine continuance.


U? This method requires managers to conduct a comprehensive study of the utility of each
vacancy before seeking replacements. This technique is derived f rom the widely popular
concept of zero-base budgeting.

;##'

U? pimulation model is a mathematics-oriented, software-enabled technique.

U? This model simulates the HR requirements and availability to determine the likely gap
between the demand for and the supply of human resources.

U? The working of the simulation model involves asking several what-if questions to develop
alternatives in the forecasting process.

;&# & 

HA method has four c omponents

U? mployees

U? Functions

U? A matching model and

U? A formal rule structure

This method allows comprehensive modelling of the interaction among these components. The
matching model deals with the allocation of different jobs to employees. An organization would
make HR forecasting based on the specific outcome of the matching model.

;#!%$

This process involves the estimation of the availability of the required number of employees.

The techniques for forecasting HR availability through internal sources are

U? Replacement charts- These are records that contain details about the c urrently serving
employees and the possible replacements for them in their position.

U? Turnover rate

U? Human resource management information system (HR|p

U? roductivity level

U? Overtime and absenteeism

U? puccession planning


 *M^!  '  ##

U? The estimated HR needs are matched with the estimated HR availability to identify the skill
shortage or surplus.

U? Based on the outcome, appropriate HR plans are developed.

U? The outcome of such comparisons would be either the recruitment of more empl oyees or a
reduction of the existing workforce.

9  

U? |nsufficient realization of the importance of HR plans.

U? xlut in the |ndian labour market.

U? Union resistance.

U? Êostʹbenefit misconceptions.

U? Absence of coordination.

U? Future uncertainty.

V 9  -  

V%$ is a process of gathering relevant information about various aspects of a job, including its
content, context and the job performer͛s skill requirements.

:%$

U? |dentification of tasks required to be performed.

U? ^efining the role, context, conditions, human behavior, performance standards and
responsibilities.

U? stablishing the job͛s worth to an organization.

U? stablishes job-relatedness.

U? Assists in the resource management and strategy formulation.

U? ^eveloping a job profile for each job and acts.


U? |dentifying the appropriate job for each employee.

U? Better understanding of the impact of environmental changes on individual jobs.

U? |dentifying and removing unnecessary skills and other requiremen ts for a job.

U? Job improvements through job reengineering and job enlargement.

U? Job improvements through job reengineering and job enlargement.

V%$

V% $
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V%' 

Job description is a document that specifies the tasks, duties, and responsibilities of the job and
should certainly be relevant and accurate Ͷ Êlyde . Witt.

# :%' # 

U? Job title

U? Alternate title (if any

U? Job purpose (general purpose of the job

U? Êode number (job identification number

U? Job holder title (title of the holder of this job.

U? Job location

U? Job type (full-time/part-time

U? ^epartment/office (where this job is located.

U? Reporting authority (job title to which this job should report

U? No. of staff under this post (number and name of the job titles to be controlled by this job

U? Job summary (a brief description about the job

U? Job duties (day-to-day tasks to be performed

U? Authority limits

U? Working conditions required

U? Technical requirements

U? pkills required for the job (minimum skills and competencies required for performing the job

U? xperience required for the job (minimum experience required for the performance of the job

U? ppecial circumstances (information about night shifts, overtime, extensive travelling, etc.

U? ppecial requirements (special tools and equipment requirements for the job
V% 

Job specification is the process of inferring the human trait requirements presumed to be necessary
for successful job performance. Ͷ R. Harvey and „. Wilson.

9':%  

U? ducation and training

U? Work experience

U? pkills and competencies

U? hysical strength and stamina

U? ptress-coping ability

U? ppecial needs

#:% # 

U? osition title (title and designation of the job holder in the job .

U? ^epartment/office (where the job holder would be posted .

U? ducational qualifications and training requirements.

U? xperience (minimum number of years of experience the candidate must possess .

U? Work-based skills and competencies required.

U? Behavioural skills and talents required (skills necessary for team work, effective leadership,
diagnosing the problems, motivating oneself and others, effective communicat ion, etc. .

U? Other attributes required (special qualities required for the performance of this job .


&&!:%$

U? mployee͛s anxiety

U? „anagement attitude towards job analysis

U? Undue importance to job holders

U? nvironmental influence
U? Absence of follow-up action.

V%'

Job design is the process of determining the specific tasks to be performed, the methods used in
performing these tasks, and how the job relates to other work in the organization.
Ͷ R. Wayne „ondy

V%&#

Job enrichment refers to the development of work practices which challenge and motivate the
employees to perform better.

V%

Job rotation refers to moving employees from one job to another in a predetermine d way. |t enables
an employee to perform diverse roles and gain exposure to the techniques and challenges of doing
several jobs.

V%

Job reengineering is the process of streamlining jobs in the form of combining a few jobs into one,
redistributing the tasks among various jobs and reallocation of resources.

V%#

Job enlargement aims at making the job more attractive by increasing the operations performed by
a person in the job. |t transforms the jobs to include more and/or different tasks.

nlargement is of two types and these are:

R? Horizontal enlargement
R? wertical enlargement .

#' 

|nternal and xternal recruitment

The #'  is one of the basic HR rocesses. Recruitment and pelection is
very sensitive as many managers have a need to hire a new employee and this pr ocess is always under
a strict monitoring from their side.

The #'  must be simple and must be robust enough to operate
excellently in the moment of the insufficient number of candidates on the job market and the process
must be also able to process a large number of candidates within given time limit.

The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources
^epartment.

6#

The xternal Recruitment is the source of the fresh blood for the organization. As a very critical HR
rocess, the external recruitment process has to be set up very carefully. The external recruitment
involves other external parties and they have to cooperate closely to bring a common success for the
organization. The external recruitment is a difficult HR rocess when it has to be done properly and
meeting stretching requirements and goals of the top management.

The HR„ Function has to take initiatives in four important areas to make the external recruitment
efficient, quick and bringing the right quality of candidates:

R? Organization 9'#
R?
 of Job osting
R?
& ' #&:%!$
R? ppeed of the #.

xternal Recruitment Êhannels

The 6#
& are the channels used to communicate job vacancies to the public
audience and the correct usage of the external recruitment channels brings the right candidates for
the positions.

xenerally, the HR„ Function is responsible for monitor ing the job market and react appropriately to
the changes on the job market with the right mix of the channels used to bring the expected level and
number of candidates at the affordable costs. The external recruitment is a very costly HR rocess and
it is under the pressure for the cost savings all the time.

The HR Recruiter has always to make a complex decision based on the following criteria:

R? ppeed
R? Êost
R? Quality
R? Êonfidentiality
R? Job osition Requirements
R? Job Openings lan and Forecast
R? Available external recruitment budget

What to measure in external recruitment process?

The HR„ Function cannot miss the opportunity to introduce clever external recruitment measures,
which will show the development in the area and will provide detailed reporting to the organ ization.

The measures have to be defined carefully and it should cover the following areas:
R? ositions - the main reason for the external recruitment. The HR„ Function has to keep track
of all open positions in the organization, the number of positions, i n departments and how
complex the position are as the HR„ Function has to define the limits
R? Time - the external recruitment process must be cut into separate pieces to take the
measures, there can͛t be a discussion over them and the HR„ Function has to mea sure all the
vacancies
R? pources - the sources of the external recruitment, including the number of candidates and the
percentage of the successful candidates, it is good for measuring the real success rate of
different external recruitment channel with diff erent positions
R? Êosts - each external hire has costs associated with and the HR„ Function has to measure the
efficiency of the whole process

The external recruitment process is not easy to measure and it takes a lot of effort to implement it
correctly, but reading the trends in the recruitment, it can help the HR„ Function to keep the process
in the right shape.

The external recruitment is not just about choosing the right or ideal candidate for the vacancy
in the organization. The external recruitment is also about the competition. The competition is about
the attractiveness of the job advert, communication and quick response from the organization. The
communication is essential during the external recruitment process. The organization, which sends
information to its potential hires, the better relationship with the job candidate can be. The
organization should inform the job candidate about the step in the recruitment process and expecting
time of the next message. eople love to be informed about the sta tus of the recruitment process and
the organization should allow the smooth information flow.

#' 

'6#

The #'  is one of the basic HR rocesses. Recruitment and pelection is
very sensitive as many managers have a need to hire a new employee and this process is always under
a strict monitoringfromtheirside.

The #'  must be simple and must be robust enough to operate
excellently in the moment of the insufficient number of candidates on the job market and the process
must be also able to process a large number of candidates within given time limit.

The clearly defined Recruitment and Selection Process is a key to the success of any Human Resources
^epartment.

xternal Recruitment:

The xternal Recruitment is the source of the fresh blood for the organization. As a very critical HR
rocess, the external recruitment process has to be set up very carefully. The external recruitment
involves other external parties and they have to cooperate closely to bring a common success for the
organization. The external recruitment is a difficult HR rocess when it has to be done properly and
meeting stretching requirements and goals of the top management.
The HR„ Function has to take initiatives in four important areas to make the external recruitment
efficient, quick and bringing the right quality of candidates:

R? Organization Brand Name


R? Êorrect ositioning of Job osting
R? Êhannels Used to promote the job vacancy
R? ppeed of the Recruitment rocess.

xternal Recruitment Êhannels

The xternal Recruitment Êhannels are the channels used to communicate job vacancies to the public
audience and the correct usage of the external recruitment channels brings the right candidates for
the positions.

xenerally, the HR„ Function is responsible for monitoring the job market a nd react appropriately to
the changes on the job market with the right mix of the channels used to bring the expected level and
number of candidates at the affordable costs. The external recruitment is a very costly HR rocess and
it is under the pressure for the cost savings all the time.

The HR Recruiter has always to make a complex decision based on the following criteria:

R? ppeed
R? Êost
R? Quality
R? Êonfidentiality
R? Job osition Requirements
R? Job Openings lan and Forecast
R? Available external recruitment budget

What to measure in external recruitment process?

The HR„ Function cannot miss the opportunity to introduce clever external recruitment measures,
which will show the development in the area and will provide detailed reporting to the organization.

The measures have to be defined carefully and it should cover the following areas:

R? ositions - the main reason for the external recruitment. The HR„ Function has to keep track
of all open positions in the organization, the number of positions, in departments and h ow
complex the position are as the HR„ Function has to define the limits
R? Time - the external recruitment process must be cut into separate pieces to take the
measures, there can͛t be a discussion over them and the HR„ Function has to measure all the
vacancies
R? pources - the sources of the external recruitment, including the number of candidates and the
percentage of the successful candidates, it is good for measuring the real success rate of
different external recruitment channel with different positions
R? Êosts - each external hire has costs associated with and the HR„ Function has to measure the
efficiency of the whole process
The external recruitment process is not easy to measure and it takes a lot of effort to implement it
correctly, but reading the trends in the recruitment, it can help the HR„ Function to keep the process
in the right shape.

The external recruitment is not just about choosing the right or ideal candidate for the vacancy
in the organization. The external recruitment is also about the com petition. The competition is about
the attractiveness of the job advert, communication and quick response from the organization. The
communication is essential during the external recruitment process. The organization, which sends
information to its potential hires, the better relationship with the job candidate can be. The
organization should inform the job candidate about the step in the recruitment process and expecting
time of the next message. eople love to be informed about the status of the recruitm ent process and
the organization should allow the smooth information flow.

|nternal Recruitment:

The  # is the most favorite source of candidates in the stable and developed
companies. The Internal Recruitment needs a strong support from other HR rocesses, because the
unmanaged internal recruitment process can lead to disappointed managers and employees in the
organization. The puccession lanning and strong and consistent erformance „anagement are
needed to ensure the success of the internal recruitment.

The  #  has a lot of benefits and it is always difficult to decide whether to
use internal or external recruitment process. The internal recruitment is a right recruitment process
for the large organization, which promote friendliness in their corporate culture.

The corporate culture, which supports the employees to look for the opportunities in the
organization, is well designed for the internal recruitment process and the process can be a big
benefit for the organization. The corporate culture, which is focused on a strong competition among
employees and with the external environment, this corporate culture does not support the internal
recruitment process.

|nternal Recruitment rocess Weaknesses

The # does not have just benefits; this process has some disadvantages as
well. The |nternal Recruitment rocess is a very powerful tool, but it can be misused in hands of some
employees and managers.

The  #  is not a process to steal the best employees from their
departments. These employees should be treated as a very scarce resource and the internal
recruitment procedures should work differently for them.

|nternal versus xternal Job Êandidate

The selection of the 16:%'' is a common dilemma of the internal


recruitment process. „any times, the external and the internal final candidates compete for the job
position. The HR„ Function and the hiring manage r have to make a correct decision.
The # needs clear rules for the decision about the winning candidate. The
organization has to clearly define the condition for the final decision based on the corporate culture
and habits inside the organization.

On the opposite side some organizations always prefer internal candidates for job positions and they
do not have to compete with the external candidates. This is also very dangerous approach as the
external candidate can bring a new knowledge or the approach to the organization.



pelection is a systematic process of identifying suitable candidates for the available jobs from the
available applicant pool.

^ifferences between recruitment and selection

hases of the selection process

'? hase 1: „easurement

|t involves the verification of accuracy and consistency of ensuring selection techniques.


'? hase 2: ^ecision-making

nsuring the completeness of employee data to make accurate and uncompromising hiring selection
decision.

'? hase 3: valuation

|dentifying the role and effectiveness of the selection process from the organizational perspective.

hases of the selection process

pteps in selection process

'? mployment application forms/blanks: ptandardized format to collect the necessary


information.

'? pelection test: This is a psychological test for comparing and contrasting the behaviour of two
or more persons on the basis of a standardized measure.

'? pelection interview: This is a face-to-face conversation with the candidate to collect the
required information.

'? Reference check: Êross-checking information provided by the candidates in different stages of
the selection process.

'? hysical examination: „edical test to ensure that candidates meet the physical requirements
of the job.

'? Job offer: A job offer is a formal communication which specifies the details of job offer made
to the selected candidate.

mployment application forms/blanks

Application forms normally solicit the following information from the candidates

'? Biographical information

'? ducational qualifications


'? Work experience

'? ay and other perquisites

'? Additional information

'? References

pelection tests

A test is a standardized assessment of a sample but critical behaviour of candidates to determine their
suitability for the job.

Êharacteristics of psychological tests

'? Objectivity- |t refers to the validity and reliability of the measuring tools.

'? ptandardization- |t means that there is uniformity in the procedure followed in conducting the
test.

'? pample of behaviour- |t refers to test contents which should predict a representative sample
of the eventual behaviour of the candidates.

Types of psychological tests

Types of ability test

'? |ntelligence (|Q test- The aim of an intelligence test is to measure the general intellectual
abilities of a person.

'? Aptitude test- An aptitude test measures the latent talents of a person that may be crucial to
performing the job successfully.
'? Achievement test- The aim of an achievement test is to measure the knowledge gained by a
person in his or her job.

ersonality test

'? A personality test proposes to assess and predict these basic characteristics of a person.
'? |ts results are useful in predicting th e future performance of the candidate.
'? Rorschach Blot Test (RBT , Thematic Apperception Test (TAT , „innesota „ultiphase
ersonality |nventory („„| and „yers-Briggs type indicator („B|T are some of the
popular forms of personality test.

|nterest test

'? The aim of the interest test is to know the interest, attitude and preference of a person
towards the job offered.

'? Kuder reference Record and ptrong wocational |nterest Blank are some well -known interest
tests.

Honesty or integrity test

'? |n an honesty or integrity test, the questions are asked in such a way that the attitude and
actual behaviour of the candidates can be found out.

'? These are rarely used in |ndia.

valuation of psychological tests

„erits

'? Objective in evaluation.

'? |deal for large groups.

'? redictor of intangible talents.

'? xoal-specific and target-oriented.

'? Record for future.

¦imitations

'? ¦ack of flexibility.


'? Unsuitable for smaller groups.

^eveloping a test programme-steps


'? ^etermining the job and skills requirements.

'? ^eciding the types of test.

'? ^eveloping the success criteria.

'? Administering the test.

'? valuating the results.

pelection interview

'? |nterview is a faceʹtoʹface conversation to collect information from a candidate to determine


his or her suitability for a job.

Kinds of interview

'? ptructured interview- |n this method, the interviewer predetermines the questions to be asked
and follows the same to ask the interviewee a series of questions with little or no deviation.
'? Unstructured interview- |n this type of interview, the interviewer does not pre -plan the
questions to be asked. |n fact, he or she decides on the questions as the interview proceeds.

'? |n-depth interview- The purpose of this interview is to discuss the info rmation concerning the
candidate in detail. The intention is to ensure that no vital information is missed out.

'? ptress interview- The intention of the interviewer in this kind of interview is to identify
sensitive candidates who have low-stress tolerance. The purpose of a stress interview is to put
the candidate in an uncomfortable situation to see his or her ability to handle stress.

'? anel interview- A panel of two or more interviewers is formed to interview the candidate.
The interviewers are generally drawn from different fields.

Êomputerized interview

|n computerized interviews, the applicant is asked computerized oral questions and his or her oral or
computerized replies are recorded. Êomputerized interviews are often used as preliminary intervie ws.

ptrategy for an effective interview process

'? Familiarizing oneself with the information available.

'? xetting ready with an interview plan.

Êreating a supportive environment

'? Êonducting the interview.

'? nding the interview.

'? Reviewing the performance.

Weaknesses of the interview method

'? ¦ack of objectivity.

'? Halo effect.

'? |nadequacy of time.

'? ¦ack of uniformity.

'? The absence of training for the interviewers.

What Are ersonnel olicies?


'? ersonnel policies, also called employee handbooks, are a set of state ments that explain what
the employer expects from its employees and what employees may expect from the employer.
olicies offer guidelines for decision -making and reflect a business' values.
|ntroductory „aterials

R? ersonnel policies often begin with a welcome, a brief history of the business, a statement of
the company's values and a description of its organizational structure.

olicies

R? The policies should include comprehe nsive information about workplace rules; for example,
hours, attendance, pay, benefits, supervision and discipline.

¦egal |ssues

R? ersonnel policies should also include discussion of sensitive legal issues like sexual
harassment and employee safety regulations.

ffectiveness

R? To be effective, the policies must be distributed to every employee. The policies should be
reviewed during employee orientation and during periodic training sessions.

Warning

R? mployers should avoid making unconditional promises in their personnel policies. |mplying
that an employee who follows the rules will never be fired, for example, may result in a
lawsuit even when an employee is fired for good reason.

„ 
„  "
    „

 

HR„ practices that help companies deal with the competitive challenges can be grouped in to the
four dimensions. These dimensions include:

1. ? „anaging the human resource environment


2. ? Acquiring and preparing human resources
3. ? Assessment and development of human resources
4. ? Êompensating human resources

|n addition, some companies have special issues related to labour - management relations,
international human resource management, and managing human resource function.

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„anaging internal and external environmental factors allows employees to make the greatest
possible contribution to company productivity and competitiveness. Êreating a positive environment
for human resource involves

R? ¦inking HR„ practices to the company͛s business objectives_ that is, strategic human resource
management.
R? nsuring that HR„ practices comply with federal, state, and local laws..
R? ^esigning works that motivates and satisfies the employee as well as maximizes customer
services, quality and productivity

2. 8'  &#

Êustomer needs for new products or services influence the number and type of employees businesses
need to be successful. Terminations, promotions and retirements also influence human resource
requirements. „anagers need to predict the number and type of employees who are needed to meet
customer demands for products and services. This area of human resource management deals with:
R? |dentifying human resource requirements ʹ that is, human resource planning, recruiting
employees and selecting employees
R? Training employees to have the skills needed to perform their jobs.

3. #''! #&#

„anagers need to ensure that employees have the necessary skills to perform current and future
jobs. Êompanies need to create a work environment that supports employees work and non -work
activities .This area of human resource management addresses

R? „easuring employees performance


R? reparing employees for future work roles and identifying employees work interests, goals,
values and other career issues
R? Êreating an employment relationship and work environment that benefits both th e
company and the employee

4.
# &#

Besides interesting work, pay and benefits are the most important incentives that companies can
offer employees in exchange for contributing to productivity, quality and customer service. Also, pay
and benefits are used to reward employee͛s membership in the company and attract new employees.
The positive influence of new work designs, new technology and the quality movement on
productivity can be damaged if employees are not satisfied with the level of pay and benefits or
believe pay and benefits are unfairly distributed. This area of human resource management includes

R? Êreating pay systems


R? Rewarding employee contributions
R? roviding employees with benefits



|n some companies employees are represented by a labour union. „anaging human resources in a
union environment requires knowledge of specific laws, contract administration and the collective
bargaining process

„any companies are globally expanding their business through joint ventu res, mergers, acquisitions
and establishing new operations. puccessful global expansion depends on the extent to which HR„
practices aligned with cultural factors as well as management of employees sent to work in another
country. HR„ practices must contribute to organizational effectiveness.

HR„ practices of both managers and the human resource function must be aligned and contribute to
the company͛s strategic goals.

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