Documente Academic
Documente Profesional
Documente Cultură
MFC
Organisation theory and management
SEMESTER 1
Ms. Neha Puri
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1
LECTURE 5
Contents
Concept of Human resource management
Functions of Human resource
management
Significance of Human Resource
Management
Core Values of HRM
Strategic Role of Human Resource
Manager
Human Resource planning
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Recruitment
Selection
Training
Performance Appraisal
Evaluating Human Resources
Processes
People
Utilization
Organizational Goals
Technology
Centrality of HR for organizational Goal Achievement
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Managerial Functions
The Human Resource Manager is a part of the organizational
management. So he must perform the basic managerial
functions of planning, organizing, directing and controlling in
relation to his department. These functions are briefly
discussed below:
Planning. To get things done the subordinates, a manager
must plan ahead. Planning is necessary to determine the
goals of the organization and lay down policies and
procedures to reach the goals. For a human resource
manager, planning means the determination of personnel
programs that will contribute to the goals of the enterprise,
i.e., anticipating vacancies, planning job requirements, job
descriptions and determination of the sources of recruitment.
The process of personnel planning involves three essential
steps. Firstly, a supply and demand forecast for each job
category is made. This step requires knowledge of both labour
market conditions and the strategic posture and goals of the
organization. Secondly, net shortage and excess of personnel
by job category are projected for a specific time horizon.
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Operative Functions
The operative functions are those tasks or duties which
are specifically entrusted to the human resource or
personnel department. These are concerned with
employment, development, compensation, integration
and maintenance of personnel of the organization.
The operative functions of human resource or personnel
department are discussed below:
Employment. The first operative function of the human
resource or personnel department is the employment of
proper kind number of persons necessary to achieve the
objectives of the organization. This involves recruitment,
selection, placement, etc. of the personnel. Before these
processes are performed, it is better to determine the
manpower requirements both in terms of numbers and
quality of the personal.
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Advisory Function
Human resource manager has specialized education
and training in managing human resources. He is an
expert in his area and so can give advice on matters
relating to human resources of the organization. He
offers his advice to:
Top Management. Personnel manager advises the top
management in formulation and evaluation of personnel
programmes, policies and procedures. He also gives
advice for achieving and maintaining good human
relations and high employee morale.
Departmental Heads. Personnel manager offers advice
to the heads of various departments on matters such as
manpower planning, job analysis and design, recruitment
and selection, placement, training, performance
appraisal, etc.
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Facilitation of Change
The HR managers will be required to act as
change agents through greater involvement in
environmental scanning and development
planning. The HR function will become more
creative and less mechanistic. It will be more
concerned with substance rather than form,
accomplishments rather than activities, and
practice rather than theory. The personal function
will be responsible for furthering the organization
not just maintaining it. HR managers will have to
devote more time to promote changes than to
maintain the status quo.
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TIME PERIOD
HR FOCUS
HR ACTIVITY
Before 1890
Industrial Technologies
Disciplinary Systems
1900-1910
Employee well-being
1920s
Take design/efficiency/
impact of work groups on
individual works
1930s
Union of workforce
Passage of major labor
laws
Communication
Programs
Anti-union campaigns
Personnel becomes staff
support to operational line
unit functions
1940s
Wage increases
Cost-of-living
adjustments
Pension/health and
other benefit plans
1950s
Employee relations
Specialized personnel functions
1960s
Employee Participation
Employee Involvement
Management by objectives, Quality circles, sensitivity training.
1970s
Government Intervention
1980s
Employee recognition
Displacement
1990s
Changing demographics of
workforce
Technology
Diversity programs
Employee rights issues
Global perspective
Information technology
Strategic HR Planning
Recruitment
External Recruitment
Every enterprise has to tap external sources for various positions.
Running enterprises have to recruit employees from outside for
filling the positions whose specifications cannot be met by the
present employees, and for meeting the additional requirementsThe
following are the most commonly used external sources of
recruitment:
PRESS and ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a
widely used source of recruitment. The main advantage of this
method is that it has a wide reach.
EDUCATIONAL INSTITUTES
various management institutes, engineering colleges, medical
Colleges etc. are a good source of recruiting well qualified
executives, engineers, medical staff etc. They provide facilities for
campus interviews and placements. This source is known as
Campus Recruitment.
PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on
behalf of client companies by charging a fee. These agencies are
particularly suitable for recruitment of executives and specialists. It
is also known as RPO (Recruitment Process Outsourcing)
EMPLOYMENT EXCHANGES
Government establishes public employment exchanges throughout
the country. These exchanges provide job information to job seekers
and help employers in identifying suitable candidates
LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain
close contacts with the sources of such workers. This source is
used to recruit labour for construction jobs.
UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies on their
own. Such callers are considered nuisance to the daily work routine
of the enterprise. But can help in creating the talent pool or the
database of the probable candidates for the organisation
INTERNAL RECRUITMENT
Internal recruiting is the search for in-house
employees who have the abilities and the
attitudes to fulfill the requirements needed and
to help the organization achieve its objectives.
Although internal recruiting is often neglected,
and the Internet hardly offers any useful
discussions for this recruiting strategy, it is
crucial not to overlook this strategy. The
discussion of internal recruiting provides the
advantages and disadvantages of this recruiting
technique in comparison to the external method.
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SELECTION
Nature and Purpose of Selection
Selection involves a series by which the candidates are
screened for choosing the most suitable persons for
vacant posts. The process of selection leads to
employment of persons who possess the ability and
qualifications to perform the jobs which have fallen
vacant in an organization. It divides the candidates for
employment into two categories, namely, those who will
be offered employment and those who will not be. This
process should be called rejection since more
candidates may be turned away than employed. That is
why, selection is frequently described as a negative
process in contrast with the positive nature of
recruitment.
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Significance of Selection
Selection is a critical process these days
because it requires a heavy investment of
money to get right types of people. Induction and
training costs are also high. If the right types of
person are not chosen, it will lead to huge loss of
the employer in terms of time, effort and money.
Therefore, it is essential to devise a suitable
selection procedure. Each step in the selection
procedure should help in getting more and more
information about the applicants to facilitate
decision-making in the area of selection.
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TRAINING
Training is a process of learning a sequence of
programmed behavior. It is the application of knowledge
& gives people an awareness of rules & procedures to
guide their behavior. It helps in bringing about positive
change in the knowledge, skills & attitudes of
employees.
Thus, training is a process that tries to improve skills or
add to the existing level of knowledge so that the
employee is better equipped to do his present job or to
mould him to be fit for a higher job involving higher
responsibilities. It bridges the gap between what the
employee has & what the job demands.
Significance of training
To impart to the new entrants the basic knowledge &
skills they need for an intelligent performance of definite
tasks.
To prepare employees for more responsible positions.
To bring about change in attitudes of employees in all
directions.
To reduce supervision time, reduce wastage & produce
quality products. To reduce defects & minimize accident
rate.
To absorb new skills & technology. Helpful for the growth
& improvement of employee's skills & knowledge.
METHODS OF TRAINING:
The most widely used methods of training used by organizations are
classified into two categories: On-the-Job Training & Off-the-Job
Training.
ON-THE-JOB TRAINING is given at the work place by superior in
relatively short period of time. This type of training is cheaper & less
time-consuming. This training can be imparted by basically four
methods: Coaching is learning by doing. In this, the superior guides his subordinates & gives him/her job instructions. The superior points out
the mistakes & gives suggestions for improvement.
Job Rotation: - In this method, the trainees move from one job to
another, so that he/she should be able to perform all types of jobs.
E.g. In banking industry, employees are trained for both back-end &
front-end jobs. In case of emergency, (absenteeism or resignation),
any employee would be able to perform any type of job.
OFF THE JOB TRAINING: - is given outside the actual work place.
Lectures/Conferences:- This approach is well adapted to convey
specific information, rules, procedures or methods. This method is
useful, where the information is to be shared among a large number
of trainees. The cost per trainee is low in this method.
Films: - can provide information & explicitly demonstrate skills that
are not easily presented by other techniques. Motion pictures are
often used in conjunction with Conference, discussions to clarify &
amplify those points that the film emphasized.
Simulation Exercise: - Any training activity that explicitly places the
trainee in an artificial environment that closely mirrors actual
working conditions can be considered a Simulation. Simulation
activities include case experiences, experiential exercises, vestibule
training, management games & role-play.
Performance Appraisal
Performance mechanism is a method of assessing the contribution
of employees at different levels of the organisation during a
particular period of time. This is necessary to evaluate the
contribution of the employees during the past year and to provide
feedback for improvement. Performance appraisal is also vital to
deciding the appropriate compensation decisions. It also helps
decide on promotions and helps the superior determine the
appropriate compensation decisions. It also helps decide on
promotions and helps the superior determine the appropriate
training that may be necessary to enhance the employees
performance.
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8. FORCED DISTRIBUTION
To eliminate the element of bias from the raters ratings, the
evaluator is asked to distribute the employees in some fixed
categories of ratings like on a normal distribution curve. The
rater chooses the appropriate fit for the categories on his own
discretion
Modern Methods:
Modern Methods were devised to improve upon the traditional
methods. Modern methods attempt to remove the short comings of
the old methods such as subjectivity, bias etc. Some of the modern
methods are:
1. BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (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 (for e.g. the qualities like
inter-personal relationships, adaptability and reliability, job
knowledge etc). These statements are developed from critical
incidents.
In this method, an employees actual job behaviour is judged against
the desired behaviour by recording and comparing the behaviour
with BARS. Developing and practicing BARS requires expert
knowledge.
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2..Management By Objectives(MBO)
The concept of Management by Objectives (MBO) was first given
by Peter Drucker in 1954. It can be defined as a process whereby
the employees and the superiors come together to identify common
goals, the employees set their goals to be achieved, the standards
to be taken as the criteria for measurement of their performance and
contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course
of actions and decision making. An important part of the MBO is the
measurement and the comparison of the employees actual
performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the
choosing the course of action to be followed by them, they are more
likely to fulfill their responsibilities
2. Commitment:
How committed are employees to their work and organization?
Surveys can be conducted through interviews and
questionnaires to find answers to this question. Additional
information can be gained from personnel records about
voluntary separation, absenteeism, and grievances.
TO what extent do HRM policies enhance the commitment of
employees to their work and organization?
3. Congruence:
Is there congruence, or agreement, between the basic
philosophy and goals of the company and its employees?
Is there trust and common purpose between managers and
employees?
Incongruence can be detected in the frequency of strikes,
conflicts between managers and subordinates, and grievances.
A low level of congruence results in low levels of trust and
common purpose; tension and trust between employees and
managers may increase.
4. Cost effectiveness:
Are HRM policies cost-effective in terms of wages, benefits, turnover,
absenteeism, strikes, and similar factors?
By shaping HRM policies to enhance commitment, competence,
congruence, and cost effectiveness, an organization increases its
capacity to adapt to changes in its environment.
High commitment means:
1. Better communication between employees and managers.
2. Enhanced mutual trust.
3. All stakeholders responsive to one anothers needs and concerns
whenever changes in environmental demands occur.
High competence means:
1. Employees are versatile in their skills and can take on new roles
and jobs as needed.
2. Employees are better able to respond to changes in
environmental demands.
Cost effectiveness means:
That human resource costs, such as wages, benefits, and strikes,
are kept equal to or less than those of competitors.
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