HUMAN

RESOURCE
MANAGEMENT
 UNIT-1
• INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
 INTRODUCTION
• Human Resource management is the most happening function
as of now. This is so because people offer competitive
advantage to a firm and managing people is the domain of
HRM. An organization enjoys competitive advantage when it is
the only one which can offer a product at a price and at
quality while its competitors cannot do so. Fast changes are
taking place in the business environment.

• An organization must have the ability to absorb these changes

at a fast rate than in the past, not simply to prove its
competency alone but to justify its existence in the dynamic
business world as well. All organizations, whether large or small
must ensure themselves that they have the competent people
capable of accepting this challenge.

• Human resource management is a relatively modern concept,

which involves arrange of ideas and practices in managing
people. Human resource is the most valuable resource in any
organization because it can function only through people.
• Human Resource Management has come to be recognized as
an inherent part of management, which is concerned with the
human resources of an organization. Its objective is the
maintenance of better human relations in the organization by
the development, application and evaluation of policies,
procedures and programs relating to human resources to
optimize their contribution towards the realization of
organizational objectives.

• In other words, HRM is concerned with getting better results

with the collaboration of people. It is an integral but distinctive
part of management, concerned with people at work and
their relationships within the enterprise.

• HRM helps in attaining maximum individual development,

desirable working relationship between employees and
employers, employees and employees, and effective
modeling of human resources as contrasted with physical
resources.

• It is the recruitment, selection, development, utilization,

compensation and motivation of human resources by the
organization
 CONCEPT
• Human Resources are considered as a very important asset of
any organization and at the national as well. Other resources
are of no avail without Human Resources. They can be made
more effective and purposeful. There is no limit in their abilities
and their abilities can be continuously improved with training,
skill, attitude and additional scientific gadgets and mechanies.

• Concept of HRM borders on,

o i. Men or personnel can do many wonderful things and take up any challenge.
o ii. They can be trained to do
o iii. Necessary climate can be created to increase their efficiency.
o iv. Environment and their liberties can be increased to create a congenial atmosphere.

• Karen Legge has specified three elements of HRM as follows

o 1. Human resource policies should be integrated with strategic business planning and
used to reinforce appropriate culture.
o 2. Human resources are valuable and a source of competitive advantage.
o 3. Human resources can be tapped most effectively by mutually consistent policies
which promote commitment and foster a willingness in employees to act flexibly in the
interest of the adaptive organsiation’s pursuit of excellence.
 NATURE
• The main objective for which organization is created can only be accomplished when there
is an integration of the goals of both the individual as well as organizational objectives.
Human resource in the organization is heterogeneous, dynamic and behaves differently and
managing them in such a diverse culture is not a difficult task. The nature of human resource
management is stated as follows:

• Comprehensive Function
o Human resource management is concerned with managing all types of people at work,
i.e., workers, supervisors, mangers, etc at all levels is middle, top and lower level of
management.
• Pervasive Function
o HRM is related with people in all organizations whether big, middle or small enterprises.
• Action Oriented
o Instead of keeping the records and procedures related to human resources, human
resource management is related with action, i.e., what to do and focuses upon
situations to problems.
• Development Oriented
o In human resource management, development of human resource is considered as
important. Organizations take care by providing them with training to improve their skills
so that they can give their best efforts in the organization. For this purpose, they are
rotated in jobs to get exposure of different working environment, organization climate,
etc related to that workplace and also to maximize their job satisfaction.
• Interdisciplinary Function
o HRM has come up with the disciplinary approach from various fields such
as psychology, sociology, anthropology, etc. In all these areas, employee
behavior and attitude are concerned. HRM has become speculated
area nowadays. Human resources are considered as an important
resource and managing them is done by professional and trained
managers in this field.

• Future Oriented
o HRM is future oriented because organizations have to achieve
organization goals in the future and for that purpose, it needs well
motivated and dedicated employees who can take up assignments and
projects and complete them on time; so managing human resource is
considered to be one of the most important aspects of the organization
for its survival and future growth.

• Continuous Function
o HRM is continuous and never ending process rather than one action
performed once. It has to be continuously performed in the organization
in order to get alertness and awareness of human relations from time to
time.
 DEFINITION
• Human Resource Management is the process of
recruitment, selection of employee, providing proper
orientation and induction, providing proper training and
the developing skills, assessment of employee
(performance of appraisal), providing proper
compensation and benefits, motivating, maintaining
proper relations with labor and with trade unions,
maintaining employee’s safety, welfare and health by
complying with labor laws of concern state or country.

• Edwin Flippo defines- HRM as “planning, organizing,

directing, controlling of procurement, development,
compensation, integration, maintenance and
separation of human resources to the end that
individual, organizational and social objectives are
achieved.”
 EVOLUTION
• The field of Human Resource Management as it is today has passed
through several stages of evolution. The industrial revolution from the late
of 18th century to the second half of the 20th century wholly changed
the way people earned their living and replaced human effort and skill
by the work of machine. The Hawthorne studies emphasized the
importance of informal groups in increasing the productivity. The
Scientific Management represented a new attitude towards
management and contributed greatly to the formalization and
specialization of management based on clearly defined laws, rules and
principles.

• Human relations movement and employee motivation strengthened the

process of employees’ need identification and motivation. During this
period, behavioral scientists and management practitioners investigated
the concepts like job enrichment and job enlargement to enhance
workers’ commitment and reduce job boredom. The Human Resource
Approach assumed that the job itself is the basic source of satisfaction
and motivation to employees. The human resource approach
emphasized on the individual involvement in the decisions made in the
organization and considered the employees as the invaluable resources
for the organization. The challenges today for HR managers are in the
recognition of talent and nourish it with care to achieve significant gains
in productivity over a period of time. The organization is nothing without
skilled workers.
 Industrial revolution and the factory system
• Before the industrial revolution, the first HRM initiative was taken in England when workers of different
trades formed guilds and used their unity to improve their work conditions and increase their
bargaining power.

• The industrial revolution took place in different countries from the late of 18th century to the second
half of the 20th century. Industrialization wholly changed the way people earned their living and
replaced human effort and skill by the work of machine. The industrial revolution brought with it the
’factory’ system, an organization, based on wage labor and fixed capital, created centralized
workplaces and brought unrelated people together. Factories increased the production to a large
extent and created a new class of workers and managers.

• The factory system carried with it several changes in the organization of industry:
o Put out the self-employment household and handicraft workers
o Brought together many workers with no ownership of means of production and no other way to earn
a living
o Created rationalization and specialization of work
o The necessity of supervising large number of workers
o Autocratic Personnel practices
o Labor was considered a commodity
o Aimed to maximize the employer’s profits
o Focused upon materials, markets and production
o Totally neglected human factor

• The factory owner delegated responsibility of management to the first line supervisor who was
made responsible for control of workers and successfully running the factory by the use of force and
fear.
During the industrial revolution the major HR issues were working conditions
and social patterns of behavior of employees. However, the responses of
nations and organizations were different in addressing those problems. For
instance, an HR policy in the form of a code of discipline was introduced in
Britain just to set up a standard behavior among the untrained workers. Later,
employers in some countries voluntarily introduced labor welfare measures
out of their own self-interest and humanity. Companies like Cadbury and
Rowntree employed industrial welfare workers to take care the welfare of
employees. Thus the growth of HRM was uneven for all time and all nations
 Scientific Mgt.
•Scientific management proved to be further stride to deal with labor and management
inefficiencies through reorganization of production process and removal of unreasonable elements
of work. Welfare work made efforts to deal with labor issues by improving conditions of work.
Industrial psychology applied psychological principles for increasing the efficiency of industrial
workers.

•. Taylor, originator of scientific management, was concerned with worker inefficiency and the need
for managers to acquire the co-operative achievement of the employees. Taylor the elements of jobs,
removing unnecessary motions and timing in the tasks, aimed to discover the method and the least
time a worker could perform a particular task. Time and motion studies got in the center of
scientific management and represented a way of precisely fixing the amount of work a man could
do.

•Scientific management is an analysis based on scientific systems and breakdown of work into tiny
mechanical elements and to arrange them again into their most efficient combination. Taylor
suggested that employees selected to perform the tasks should be as fully matched, physically and
mentally, to the needs of the task as possible and that overqualified persons should be excluded.
Supervisors should train employees fully to ensure that they perform the task minutely as specified
by prior scientific analysis. A Taylor advocated for a differential piece rate system to provide an
incentive for to employees to observe the detailed procedures supervisors specified.

•Taylor declared that SM constituted a drastic change in the attitude of workers and managers. He
summed up that scientific management consists of science, harmony, cooperation and maximum
output.
SM demonstrated a fresh attitude towards management. Taylor argued that
management is a true science based on clearly defined laws, rules and
principles.
Despite its contributions, scientific management had its limitations:

It had an undue engineering bias for the job to the neglect of the worker and
looked upon worker as a cog in the machine who could adapt to the job and
saw no need to incorporate human factors in its system.

The scientific management considered the worker as complete economic man

motivated to maximize his economic gain to the neglect of the basic social and
psychological motives of employees.

The scientific management turned to be a form of industrial autocracy and

control by management over the workers. Management did all the planning of
work and workers had to accede.
 Human relations mvt
Human relations movement and employee motivation gathered momentum during this
period. Several theories underlining the importance of human relations movement were
developed during this period. For instance, Theory X and Theory Y of Douglas
McGregor advocated the significance of participative approach to decision-making.
Similarly, Abraham Maslow’s Hierarchy of Needs theory strengthened the process of
employees’ need identification and motivation.

During this period, behavioral scientists and management practitioners investigated the
concepts like job enrichment and job enlargement to enhance workers’ commitment and
reduce job monotony. Besides, organizations demonstrated more interest in conducting
organizational-level collective bargaining with unions and in a gradual manner
dissuaded the practice of participating at national-level collective bargaining
negotiations through employer federations. These developments really increased the
importance of the personnel department for an organization. In fact, firms began to rely
on personnel managers for developing industrial relations policies and also for
successfully conducting collective bargaining negotiations.
 Human Resource Movement
During the early 60s the ‘pet milk theory’ of human relationships, advocating that happy workers
are productive workers had been largely rejected. The researchers recognized the fact that workers
are unique and complex in their own way in respect of individual differences and individual needs
with different wants, needs and values. What motivates one employee may not prove to be a
motivating factor for another and being happy may have little or no influence on the productivity
of other employees. Slowly but firmly, the trend towards recognizing employees as resources and
as assets firmed up.

‘The Human Resource approach presumes that the job or the task itself is the basic source of
satisfaction and motivation to employees. The human resource approach emphasized on
involvement of the individual in the decisions made in the organization.’ Additionally, this
approach laid stress on the following points:

o Individuals do not inherently dislike work but if they help establish objectives they want to achieve.
o Most people can exercise a great deal more self-direction, control from within and creativity than are
needed for their ongoing jobs.
o The managers’ basic job is to utilize the untapped human potential in the service of the organization.
o The manager should create a healthy environment wherein all subordinates contribute to the best of their
capacities. The environment provides a healthy, safe, comfortable and convenience place to work.
o The manager should provide for self-direction by the subordinate and they need be motivated to
participate entirely in all important matters.
o Expanding subordinates’ influence, self direction and self-control will result in improvement in operative
efficiency.
o Work satisfaction may improve as of subordinates make full use of their potential.
Contemporary human resource management focuses on gaining a competitive
advantage in the work through human resources. To overcome the challenges
arising out of increased competition, organizations undertook radical change in
their HR policies and procedures with the intention of increasing their
employees’ efficiency and loyalty. The focus of contemporary HR management is
on developing HR strategies, aligning them with strategy at the corporate level
and effective achievement of organizational goals.
Modern organizations tend to keep few hierarchies and more dynamic HR
policies. They constantly carry out organizational changes by adopting measures
like total quality management, reengineering business processes, performance
management, development of learning organization, and constantly revamping
their work culture. In addition, organizations are adding global dimensions to
HR management. They are now focused more on fine-tuning their HR policies
and practices to effectively supervise and control employees working across
national boundaries. Due to the increased globalization of business, international
human resource management is gradually gaining importance in organizations.
 Strategic HRM
•Development of strategy is a significant step from the point of view of optimum utilization of human
resources. At this stage, the management begins to plan strategic use of human resources for achieving
business goals. Strategic use of human resources is the sole responsibility of the top management in the
scene of the turbulent market in order to achieve its goal. Unless the top management takes a decision in
this respect, it is difficult to find a strategic HR plan. Therefore, once a well defined strategy comes into
existence at the top for HR, pleasant tone is set for harmonizing HR planning with corporate strategic
planning. So the significant areas of acquisition, assignment, reward, as well as development are properly
aligned to the corporate plan of the business.

•According to Michigan Business School, strategic approach to HRM is very necessary for strategic HRM
issues like organizational culture, resourcing of employees and their development for the ultimate
development of the organization. HRM play a central role in creating competitive advantage for the
organization. It requires that sub-systems of HRM-selection, reward and incentive systems and training-
must support each other.

•Organizations that work for strategic use of HRM primarily focus on development of people to improve
the organizational performance. This sounds too good an idea, but its critics differ on the ground that
organizational performance is not only a function of competent human resource but also of the dynamic,
fast paced market forces and the changes in the government policies, technology as well as employers’
contract of employment. In other words, the human resources are only one factor of production and
therefore, the other factors of production may have a more significant impact on organizational
performance. So, the human resources are not to be blamed for low organizational performances. The fact
remains that it is a matter of concern for the top HR managers to convince the CEO about the respective
role of people/function. HR along cannot be expected to achieve business goals. Its role must be
understood in the correct respective.
 Future of HRM- talent mgt
• Human Resource Management is considered as a process that causes people
and organizations come together so that the goals of each are attained. The
challenge of HR managers today is in the recognition of talent and nourishing it
with caution to achieve significant gains in productivity over a period of time. In
order to create value continuously for the organization and maintain competitive
advantage, organizations must proactively manage its human capital including
identifying, selecting, developing and retaining capable employees who
demonstrate skills and realize more productivity and earn higher incomes. Thus,
the achievements of these employees encourage others for high achievement.
Furthermore, organizations should be alert in investing in employees based on the
contribution of their current and projected company. It also necessitates the
identification of key organization positions and the positioning and development
of quality support for these positions.

• Talent is higher than average giftedness towards a task with which an employee
creates added value in his or her work (Shoemaker and Jonker (2004) and is the
description of those people who regularly demonstrate their skills and gather
outstanding achievements over a range of activities and situations or in a
specialized area of expertise (Williams (2000). They consistently show high level of
competence in the areas of activity that strongly suggest transferable,
comparable skill in situations where they are yet to be tested and proved to be
very effective. Talented people cause a difference to organizational performance
through their immediate contribution and in the long term indicating a higher
level of their potential
• In order to strategically manage talents, organizations should adopt a
holistic approach involving a process of linking organizational strategy with
a clear talent management strategy (Rothwell & Kazanas (2004). Talented
organizations are adept at defining talent needs various discoveries of
talent resources, the development of individual and collective talents of
the organization, deployment of talent in ways that engage people to
achieve objectives (Cheese ET al.2008). When these talent management
skills are highly integrated, in line with the business strategy of the
organization and embedded in its operations, it constitutes a particular
organizational capability and a sustainable source of competitive
advantage (Cheese et al, 2008).

• Thus, human resource management has an important and crucial role to

play in organizations in the new economy. The role of the HR management
has changed in response to the environment depending on the social,
economic, political, conditions and advances in technology and it is still
developing dynamically. The relative importance of many activities has
changed from the external environment affecting the needs of
organizations and it is still a dynamic area where methods of organizing the
HR function change and evolve. This can help us to understand the diversity
of roles that have in the organization. The most important roles are to review
current issues that will consider the development of human resources in the
future. To fulfill this role, organizations will need to assess their existing human
resources, focused to skilled human resources with the best.
 SCOPE
• The Labour or Personnel Aspect
o It is concerned with manpower planning, recruitment, selection,
placement, induction, transfer, promotion, demotion, termination, training
and development, layoff and retrenchment, wage and salary
administration (remuneration), incentives, productivity, etc.

• The Welfare Aspect:

o This aspect is concerned with working conditions and amenities such as
canteens, creches, rest rooms, lunch rooms, housing, transport,
education, medical help, health and safety, washing facilities, recreation
and cultural facilities, etc.

• The Industrial Relations Aspect:

o This is concerned with the company’s relations with the employees. It
includes union-management relations, joint consultation, negotiating,
collective bargaining, grievance handling, disciplinary actions, settlement
of industrial disputes, etc.
FUNCTIONS
• Planning: To plan is to determine a course of action to achieve
desired goals of the organization. It is done through people.
Planning involves forecasting and conducting research.
Everything needs to be planned for an effective management;
be it a home or workplace. Human resource planning involves
a plan related to the requirement of human resource.
Forecasting human resource for the organization is planning.
Employees are required in terms of quality and quantity. If
planning is done properly, then no chance left between
present and future requirements of human resources. Human
resource planning fills the gap between where we are and
where we want to reach. Planning is the means to manage the
change and adapt the change. If no planning is done, then it
might result in crisis for tomorrow.

• Organizing: Designing and developing an appropriate structure

for the people to work and accomplish goals is organizing.
o a) It involves groping of activities and its allocation among individual and group
members.
o b)Establishing authority responsibility relationships.
o c)Integrating activities to accomplish organizational goals. If organization structure
is defined properly when it is clear who is responsible to whom and everyone has
defined authorities, then it is easier to achieve organizational goals
• Directing: Directing employees means to guide and
motivate the employees to attain desired results.
Directing is related with initiating and influencing
action of subordinates. It is the manager who can tap
the maximum potential of his employees through
proper guidance and appropriate action. Such an
act of manager also helps building good interpersonal
relationships and friendly organizational climate in the
organization.

• Controlling :Control can only be exercise if there is

proper planning. No planning is of any use if there is no
control, i.e., if there is no check. It means checking,
verifying and regulating to ensure that everything is
moving accurately to plans that were taken up
initially. In HRM , controlling involves auditing, training
programs, analyzing performance of employees,
evaluating absents and labor turnover.
 OPERATIVE FUNCTIONS
• Procurement Functions : Procurement function is related with getting right kind and
right number of personnel in the organization. For doing this, first of all, the following
steps may be followed:

o a)Job analysis (a detailed study of the job is done including job description and job
specification,

o b)Based on detailed job study, requirements of human resource is determined for each and
every department of the organization and an action plan is created for recruiting them

o c) Once, human resource planning is done recruitment process starts. It is a searching process
for the required human resource and making them to apply for jobs in the organization.

o d) All those candidates who have applied for the jobs through recruitment process are judged
according to their suitability at the right place in the organization and choosing the most
appropriate people.

o e) Once suitable candidates are appointed and they join the organization, they are
familiarized or oriented with the organization as a whole, about its climate, rules, policies and
regulation and conduct require of them in the organization and may be much more.
• Development Function: Development function is concerned with how to enhance
the skills, aptitudes and values of employees in the organization. Development
deals with the overall development of the employees from time to time by
concentrating on overall growth of the employees. This function deals with the
following activities to be performed for doing so:

• a) Observing and evaluating the performance of the employees on the job and
also to know about their potentials for development.

• b) Training is one way to enhance their skills that leads to employee’s

development. Trainings from time to time may be imparted to the employees as
per the requirement to meet the specific need, thereby adding to their skills.
Training is a need of the organization, required form time to time based on
different demands arising such as job complexity, internal changes, technology,
global competition, etc.

• c) A development function for executives may also be conducted. This is training

for managers of the organization. Executive development is a systematic process
of learning and growth by which managerial personnel gain and apply
knowledge, skills, and attitudes and insights to manage the work in their
organisations efficiently and effectively in an organised manner. The aim is to
improve their behaviour and performance for their present jobs as well as to the
next higher level jobs.

• d)Career Planning is deciding and opening career opportunities for employees in

the organization. It is a process of developing human resources in the organization
so that a right job can be matched with the right kills. This can be thought of by
the organization.
• Compensation Function: A proper wage and salary structure is
designed in the organization to make payments to the employees for
the job performed. A fair and equitable salary structure is must and
doing this may involve the following activities:

• a)The first thing is to pay on the basis of the worth of the job, so an
organization should conduct job evaluation i.e., to find the relative
worth of the job.
• b)A suitable wage program offering higher packages to employees is
designed to motivate employees to perform better in their jobs.
• c) Since compensation is a cost to the organization, it must be
carefully designed in order to fulfill the needs of the individual
employees plus benefits also in addition to the normal salary. Further it
would also be a way to build a right kind of organization in the future.
• d) Compensation is a way of providing incentive after receiving a
wage or a salary.
• e) Compensation is a way to satisfy employee in terms of their job
and additional benefits in the form of insurance, medical claim, etc
helps relieving employees from certain inherit fears.
• f)Employees gain a sense of social security also.
• g) Compensation also includes Bonus to be given to the employees
as a set norm under the payment of Bonus Act, 1965
• Integration Function : To integrate is to integrate the objectives of the
individual employees with the organizational objectives. It is only through
this integration, the main objectives of the organization are achieved.
There are various ways to integrate employees such as various financial
and non financial incentives, proper grievance mechanism for redressing
any problems etc of the employees with the organization, collective
bargaining methods, workers participation in management, solving
conflicts of various types at different levels in the organization, employee
counseling, etc.

• Maintenance Function: Maintenance function is concerned with thinking

and developing various parameters relating to health and welfare of the
employees. It may include various health benefits scheme, medical
claim, and health insurance for its employees, etc. This function aims at
maintaining the health of the employees physically as well as mentally.
Social security method includes providing employees with provident fund,
secured jobs, pension, gratuity, etc.

• The functions of HRM as stated above may vary from organization to

organization. It means that some organizations are smaller and some are
big. Smaller organizations may use only procurement and compensation
functions and only some part of development function and not
necessary development of executives, etc. they may also not be having
maintenance function. But this may not be so in case of big
organizations. They may have all the functions starting from procurement
till maintenance.
 NEED FOR HRM
• Objective :-
o HRM helps a company to achieve its objective from time to time by
creating a positive attitude among workers. Reducing wastage and
making maximum use of resources etc.

• Facilitates professional growth :-

o Due to proper HR policies employees are trained well and this makes
them ready for future promotions. Their talent can be utilized not only in
the company in which they are currently working but also in other
companies which the employees may join in the future.

• Better relations between union and management :-

o Healthy HRM practices can help the organization to maintain co-ordinal
relationship with the unions. Union members start realizing that the
company is also interested in the workers and will not go against them
therefore chances of going on strike are greatly reduced.
• Helps an individual to work in a team/group :-
o Effective HR practices teach individuals team work and adjustment. The individuals
are now very comfortable while working in team thus team work improves.

• Identifies person for the future :-

o Since employees are constantly trained, they are ready to meet the job
requirements. The company is also able to identify potential employees who can
be promoted in the future for the top level jobs. Thus one of the advantages of
HRM is preparing people for the future.

• Allocating the jobs to the right person :-

o If proper recruitment and selection methods are followed, the company will be
able to select the right people for the right job. When this happens the number of
people leaving the job will reduce as the will be satisfied with their job leading to
decrease in labour turnover.

• Improves the economy :-

o Effective HR practices lead to higher profits and better performance by companies
due to this the company achieves a chance to enter into new business and start
new ventured thus industrial development increases and the economy improves.
 MODELS OF HRM
• The defining features of HRM is popularly known as
models. These models provide analytical framework
for studying HRM. They provide characterization ofHRM that
establishes variables and relationship to be researched.

• Four most common models are :

o The Fombrun Model
o The Harvard Model
o The Guest Model and
o The Warwick Model

• All these models serve the following purposes:

• They provide an analytical framework for studying HRM for example,
situational factors, stakeholders, strategic choice levels, competence
etc.
• They validate certain HRM practices and provide distinctiveness to
HRM practices.
• They provide a characterization of HRM that establishes variables and
relationship to be researched.
• They help to discover and understand the world for explaining the
nature and significance of key HR practices.
 THE FOMBRUN MODEL
• This is the model of HRM. It emphasizes four
functions of management and their interrelatedness
Selection, Appraisal, Development and Rewards. This model is
incomplete as it focuses on only four functions of HRM and ignore all
other environmental and contingency factors. But, this model is
simple and can serve as a heuristic framework for
explaining the nature and significance of HR activities.
 THE HARVARD MODEL
• This model consists six critical components of
HRM namely stakeholders
interests, situational factors, HRM policy
choices, HR out comes, long term consequences and a
feedback loop through.
 THE GUEST MODEL
• This model was developed by
David Guest in 1997. This model
emphasizes on the
assumption that HR manager
has specific strategies to begin
with, which demand certain
practices and when executed
will result in outcomes.

• These outcomes include behav

ioral performance related
and financial rewards. The
model emphasizes the logical
sequence of six components : HR
strategy, HR practices, HR
outcomes, Behavioral outcomes,
Performance results and
financial consequences.
 THE WARWICK MODEL
• This model was developed by two researchers,
Hendry and Pettigrew of University of Warwick
(hence the name Warwick model). Like other
human resource management models, the
Warwick proposition centers around five
elements-
o Outer context (macro environmental
forces)
o Inner context (firm specific or micro
environmental forces)
o Business strategy content
o HRM context
o HRM content

• The strength of this model is that it Identi

fies and classifies important environment
influences on HRM. This model takes cognizance
of business strategy and HR practices, the
external and internal content, in which these
activities take place and process by which such
changes take place including transactions
between changes in both external content and
internal content.
EVOLUTION OF HRM
 Roles and Responsibilities
of HR managers

• ADMINISTRATIVE ROLE
• OPERATIONAL ROLE
• STRATEGIC ROLE
ADMINISTRATIVE ROLES
ADMINISTRATIVE ROLES
OPERATIONAL ROLES
STRATEGIC ROLES
 COMPETITIVE CHALLENGES
• While the global economy has presented unprecedented opportunities, it has also presented
many new challenges to the Human Resource department. In a global, complex, dynamic,
highly competitive and extremely volatile environment most organizations are facing several
global challenges related to:

• 1. Workforce diversity: For multinational companies who have operations on a global scale
and employ people of different countries, ethical and cultural backgrounds, it is extremely
essential to manage workforce diversity effectively. The challenge for Organizations is to
capitalize on the diverse body of talent and transform it into an asset. People coming from
diverse cultural backgrounds, gender, age, language, ethnicity, lifestyle can bring in
innovative ideas and perspectives to the Business. The goal is to develop effective working
relationships with people from diverse backgrounds at work. Organizations should identify
and overcome the barriers that have inhibited the employment, retention, development and
promotion of diverse groups in the workplace.

• 2. Technology: Technology changes the way businesses operate. Technological advances

often create employee resistance because new technology frequently benefits some
employees while leaving others behind. This is because technological advances reduces the
number of jobs that require little skill and increases the number of jobs that require
considerable skills. This means displacement of some employees and retraining for others. In
addition, information technology has influenced HRM through human resource information
system ( HRIS) that helps in the processing of data and making employee information more
readily available to the employees.

• 3. Training: HRM is confronted with dynamic changes in approaches and methodologies in

training and development. In the global scenario, training has taken a new connotation. It is
more than identifying the training needs and giving the appropriate training. It is foreseeing
and anticipating the requirementsand develop suitable training so that the employees are
well equipped to handle the challenges beforehand. Companies have to invest in training
delivery methods that facilitate digital collaboration.
 COMPETITIVE CHALLENGES
• 4. Worker productivity: Increasing worker productivity through HR programmes, policies and
techniques remains a challenge. Progressive and innovative managers now achieve
productivity gains with human resource management techniques that go beyond pay
incentives. Increased worker motivation and satisfaction can increase worker productivity.
This can be achieved by introducing quality of work life concepts and by tailoring benefits to
meet the needs of employees.

• 5. Quality improvement: Implementing TQM was earlier the sole responsibility of specialists.
However, today making quality improvements across the entire firm can be an important
function of the HRM department. If the HRM department fails to recognize and act on this
opportunity ,it may result in the loss of TQM responsibilities o other departments with less
expertise in training and development. The ultimate result would be an ineffective TQM
strategy. Thus, it is essential for HRM to act as a pivotal change agent necessary for the
successful implementation of TQM. The HR department needs to develop and deliver the
long term training and development necessary for the major organizational culture
shift required by TQM.

• 6. Retention : Key employee retention is critical to the long term health and success of an
organization. Many Organizations fail to identify the intrinsic motivators for employees, thus
failing to attract them. It is therefore, important for organizations to plan and implement new
approaches and employee retention plans to retain the most effective manpower. It is also
essential to have a valuing and positive attitude towards employees. Retention requires
competitive salary and great benefits.

• 7. Outsourcing : Organizations, both big and small are realizing that outsourcing is a key to
bring down costs and add value to the business. It allows businesses to focus on its core
competencies and thereby identify new areas for growth. Organizations that can manage
diversity better tend to be more flexible and are more open-minded.
 COMPETITIVE CHALLENGES
• 8. Talent management: Managing talent has become a critical
human resource challenge. Organizations in both developed and
developing economies are facing increased competition for high
performers. In order to address this challenge, companies have to
boost global sourcing of staff. Talent management challenges relate
to talent flow, managing two generations of employees i.e. the older
or mature workers and younger workers; and a shortage of needed
competencies. The ability to attract, develop and retain a needed
supply of critical talent is a challenge facing all organizations.
Managing global talent and maximizing the talent of individual
employees can create a unique source of competitive advantage.

• 9. Balancing work life: work life balance has become a predominant

issue in theworkplace. Employers need to understand that achieving
a balance can lead to great results with a well motivated workforce
delivering quality services. Employees are now making job choices
based on flexible working hours and emotional gratification. The
responsibility is on employers to think creatively about how it can be
best used to benefit both the staff and the organization.
 COMPETITIVE CHALLENGES
• 10. Globalization: Globalization has an impact on the number and kinds of jobs that are
available in the economy. In this scenario it is important for Organizations to address
issues related to managing people in different geographies, cultures, legal
environment, and business conditions. HR functions such as selection, recruitment,
compensation , training and the like have to be adjusted to take into account the
differences in global management. Due to globalization HR managers have an
opportunity to recruit employees from around the world and they also the responsibility
to ensure an appropriate mix of employees in terms of knowledge, skills and culture.
Globalization poses challenges in terms of workforce diversity, managing outsourcing
and downsizing of employees, managing productivity, quality, and flexible working
hours.

• 11. Organizational restructuring: In order to become more competitive, a growing

number of organizations are going for restructuring like mergers and acquisitions,
closing facilities etc. The focus has been to flatten organizations by removing several
layers of management and to improve productivity, quality and service while also
reducing costs. As a result jobs are being redesigned and employees affected. One of
the challenges that HRM faces here is dealing with the human consequences of
change. Change appears threatening to many people, which makes it difficult to gain
their support and commitment to implementing changes. However, there are a
number of steps managers can take to overcome resistance to change like education
and effective communication.
 UNIT-2
• STRATEGY AND WORKFORCE PLANNING
 STRATEGIC HR
PLANNING PROCESS
 STRATEGIC HR
PLANNING
• Strategic HR planning is an important component of strategic HR
management. It links HR management directly to the strategic plan of
your organization. Most mid- to large sized organizations have a
strategic plan that guides them in successfully meeting their missions.
Organizations routinely complete financial plans to ensure they
achieve organizational goals and while workforce plans are not as
common, they are just as important.
• Even a small organization with as few as 10 staff can develop a
strategic plan to guide decisions about the future. Based on the
strategic plan, your organization can develop a strategic HR plan that
will allow you to make HR management decisions now to support the
future direction of the organization. Strategic HR planning is also
important from a budgetary point of view so that you can factor the
costs of recruitment, training, etc. into your organization’s operating
budget.

• Strategic HR management is defined as:

• Integrating human resource management strategies and systems to
achieve the overall mission, strategies, and success of the firm while
meeting the needs of employees and other stakeholders.
• The overall purpose of strategic HR planning is to: Ensure adequate
human resources to meet the strategic goals and operational plans
of your organization – the right people with the right skills at the right
time
• Keep up with social, economic, legislative and technological trends
that impact on human resources in your area and in the sector
• Remain flexible so that your organization can manage change if the
future is different than anticipated
• Strategic HR planning predicts the future HR management needs of
the organization after analyzing the organization’s current human
resources, the external labour market and the future HR environment
that the organization will be operating in. The analysis of HR
management issues external to the organization and developing
scenarios about the future are what distinguishes strategic planning
from operational planning.
• The basic questions to be answered for strategic planning are:
o Where are we going?
o How will we develop HR strategies to successfully get there, given the circumstances?
o What skill sets do we need?

• The strategic HR planning process

o The strategic HR planning process has four steps:
o Assessing the current HR capacity
o Forecasting HR requirements
o Gap analysis
o Developing HR strategies to support organizational strategies
 PROCESS OF HR
PLANNING
• Organizations need to do human resource
planning so they can meet business objectives
and gain a competitive advantage over
competitors.

o Human resource planning compares the

present state of the organization with its goals
for the future
o Then identifies what changes it must make in
its human resources to meet those goals
 STRATEGIC HR
PLANNING
The strategic HR planning process has four
steps:
• Assessing the current HR capacity
• Forecasting HR requirements
• Gap analysis
• Developing HR strategies to support
organizational strategies
 ASSESSING CURRENT
HR CAPACITY
• The first step in the strategic HR planning process is to assess the
current HR capacity of the organization
• The knowledge, skills and abilities of your current staff need to
be identified. This can be done by developing a skills inventory
for each employee
• The skills inventory should go beyond the skills needed for the
particular position. List all skills each employee has
demonstrated.
• For example, recreational or volunteer activities may involve
special skills that could be relevant to the organization.
Education levels and certificates or additional training should
also be included.
• An employee's performance assessment form can be reviewed
to determine if the person is ready and willing to take on more
responsibility and to look at the employee's current
development plans.
 FORECASTING HR
REQUIREMENT
• The next step is to forecast HR needs for the future based
on the strategic goals of the organization. Realistic
forecasting of human resources involves estimating both
demand and supply. Questions to be answered include:
o How many staff will be required to achieve the strategic goals of the organization?
o What jobs will need to be filled?
o What skill sets will people need?

• When forecasting demands for HR, we must also assess

the challenges that you will have in meeting your staffing
need based on the external environment.
• How will the external environment impact on our HR
needs?
• There are three major steps to forecasting:
o Forecasting the demand for labor
o Determining labor supply
o Determining labor surpluses and shortages

Forecasting the demand for labor

• How many people need to be working and in what jobs to
implement organizational strategies and attain organizational
objectives.
• Usually an organization forecasts demand for specific job
categories or skill areas.
• After identifying the relevant job categories or skills, the planner
investigates the likely demand for each.
• The planner must forecast whether the need for people with the
necessary skills and experience will increase or decrease.
• Constructing and applying statistical models that predict labor
demand for the next year, given relatively objective statistics
from the previous year.
Determining labor supply Predicting Worker Flows and
Availabilities
Succession or Replacement Charts
Who has been groomed/developed and is ready for
promotion right NOW?
Human Resource Information Systems (HRIS)
An employee database that can be searched when vacancies
occur.
Transition Matrices (Markov Analysis)
A chart that lists job categories held in one period and shows
the proportion of employees in each of those job categories in
a future period.
It answers two questions:
1. “Where did people in each job category go?”
2. “Where did people now in each job category come from?
Personnel / Yield Ratios
How much work will it take to recruit one new accountant?
 DETERMINING LABOUR SUPPLY

• Based on the forecasts for labor demand and supply, the

planner can compare the figures to determine whether there
will be a shortage or surplus of labor for each job category.
• Determining expected shortages and surpluses allows the
organization to plan how to address these challenges.
• When forecasting demands for HR, you must also assess the
challenges that you will have in meeting your staffing need
based on the external environment. To determine external
impacts, you may want to consider some of the following
factors:

• How does the current economy affect our work and our ability
to attract new employees?
• How do current technological or cultural shifts impact the way
we work and the skilled labour we require?
• How is our community changing or expected to change in the
near future?
GAP ANALYSIS
 The Basic Elements
of Human Resource Planning

(1) Forecast Labor

Requirements

(4) Determine (5) Develop

Compare
Gaps Action Plans

(2) Forecast Labor

Availabilities
• The next step is to determine the gap between where
your organization wants to be in the future and where
you are now.

• The gap analysis includes identifying the number of

staff and the skills and abilities required in the future in
comparison to the current situation.

• You should also look at all your organization's HR

management practices to identify practices that
could be improved or new practices needed to
support the organization's capacity to move forward

Questions to be answered include:

o What new jobs will we need?
o What new skills will be required?
o Do our present employees have the required skills?
o Are employees currently in positions that use their strengths?
o Do we have enough managers/supervisors?
o Are current HR management practices adequate for future needs?
Developing HR
strategies to
support
organizational
strategies
 There are many HR strategies for meeting
the labor surplus or shortage in the future.

Surplus
• Restructuring strategies Shortage
• Hiring freeze • New Hires
• Layoffs • Transfer
• Transfer • Training/Retrain
• Reduce work time • Overtime
• Reduce part-time • Part-time
• Restructuring strategies
This strategy includes:
1. Reducing staff either by termination or attrition:
 Termination is the act of making a person leave
a job. Generally, there will be costs associated
with this approach depending on your
employment agreements.
 Attrition: not replacing employees when they
leave.
2. Regrouping tasks to create well designed
jobs:
 It will mean that jobs performed in the organization
will have to be reorganized so that essential work of
the departing employee is covered.
3. Reorganizing work units to be more efficient.
• Hiring freeze: an employer decides to stop
hiring new employees
• Layoffs :the act of firing employees.
• Transfer: from department to other.
• Reduce work time:
Sometimes existing workers may be willing to
voluntarily reduce their hours, especially if the situation
is temporary. Job sharing may be another option.
• Reduce part-time
 HR PLANNING
• Human resource planning is the business process for ensuring that an
organisation has suitable access to talent to ensure future business
success.

• Human Resource planning is the process by which a management

determines how an organisation should move from its current manpower
position to its desired manpower position. Through planning a
management strives to have the right number and the right kinds of
people at the right places, at the right time and to do things which will
result in receiving the long range benefit for both the organisation and
the individual.

• All other activities of HR like hiring, training, remuneration and labour

relations are derived from Human resource planning (HRP). Human
resource planning is also called manpower planning.

• According to Robbins and Coulter, "HR Planning is the process by which

manager ensures that they have the right number and right kind of
capable people in the right places and at right times."
 OBJECTIVES
• The main objective of Human Resource Planning is to determine its future HR requirements
and to plan as to how the existing HR can be utilized optimally. It aims to ensure best fit
between employees and jobs while avoiding manpower shortages and surpluses. Further the
objectives of Human Resource Planning are discussed below:-
• (1) To Forecast Future Requirements for HR: HR Planning is essential to project the future
manpower needs of an organization. If HR planning is not done effectively it can lead to
overstaffing or understaffing.
• (2) Realizing Organizational Goal: The basic aim of HR planning is to have an accurate and
optimum number of employees at any given point in time. They should have the skills
required to accomplish each job to meet the organizational objectives
• (3) Effective Management of Change: An organization faces constant internal and external
changes e.g mergers, acquisitions, govt regulations, technology etc. These changes are to
be proactively assessed from time to time so that HR plan would fit in with the strategic
business objectives. HR planning should ensure that even during such times of changes the
organization should not suffer due to non-availability of qualified people.
• (4) Effective Utilization of Human Resources: HR assesses the current human resources
capacity based on their competencies , skills, training , qualification etc. against the
capacity needed to achieve the organizational goal. Keeping the inventory of the existing
personnel helps utilize the existing resources more effectively in relation to the job
requirement. HR strategies, plans and programs are then designed, developed and
implemented to close the gaps.
• (5) Promoting Employees HR planning is required to maintain data and assess the
performance of each employee. A promotion is viewed as desirable by employees as it is a
form of recognition for those who make significant and effective work contribution. HR plan
continuously work on ensuring regular promotions to competent people on a justifiable basis.
 REQUIREMENTS OF EFFECTIVE HRP
• The following conditions should be fulfilled for the successful development and execution of
HR planning:

• (1) Clear understanding on the Objective HR managers should have a clear understanding
on the objectives behind HR planning, they should very well understand its critical impact on
other function of human resource management and the goal accomplishment.

• (2) Communication Sustained and regular communication and harmonious relationship

between the line mangers and HR managers is absolutely essential.

• (3) Alignment HR plans should be aligned properly with the organization’s mission, vision and
strategic goals. They should fit into the present and future requirements of the organization.

• (4) Top Management Support Active involvement and proper guidance from the top
management is extremely important. Before starting the human resource planning project,
the support and commitment of the top management must be ensured.

• (5) Human Resource Information System It is very important for a organization to have a
strong HRIS in place while starting the Human Resource Planning process. as planning requires
objective and comprehensive data for decision making. It is thus essential for an organization
to maintain up-to-date and accurate HR records. It should maintain computerized human
resource information regarding the employees demographics, career progression,
appraisals, skills, qualifications, experience, performance and promotion ratings etc.
 PROCESS
• Human Resource Planning is a process whereby organizations forecast the
future personnel needs required to meet business and customer demands .
It also takes into consideration the impending retirements and transitions,
the existing personnel supply and filling the gap through personnel related
programs and training.
• Human Resource Planning Process usually consists of the following steps.
1. FORECASTING MANPOWER NEEDS

• HR Planning ensures that a predetermined number of people

with correct qualification and skill sets are available for the
future.
• This needs to be done to guarantee the availability of the
human resources needed by an organization to meet its
strategic business objectives.
• The basis of forecasting is that the annual budgets and long
term projections are divided into activity levels for each
function and department. This further helps in determining the
quality and quantity of personnel required to perform those
activities effectively.
• Demand forecasting is dependent on several factors both
external and internal. External factors include regulatory,
governmental, economic and social changes, technical
development and competition etc. Internal factors include
organization’s strategic plan, sales and production budgets,
investment in new products, services and ventures, impending
retirements, terminations, resignations etc.
 2. ACCESSING CURRENT MANPOWER INVENTORY

• The next step in HR Planning is to estimate the quantity and quality of

employees available within the organization to fill the positions. In case of
internal labour supply the HRIS (human resource information system) is
referred to, HRIS uses computers for collecting, storing, maintaining and
updating data from time to time of its employees.

• It tries to capture the number of employees in each job, their age, sex,
qualifications, past experience etc. It also captures the skills, knowledge,
abilities and career aspirations of each employee which is timely
updated due to any change because of training, additional
qualifications etc.

• In order to foresee and estimate the absenteeism, turnover and attrition

rate historical trends are recorded and examined. This gives an idea of
an approximate time period when the important positions might fall
vacant and the number of employees who will be present in the various
positions within the organization at any given point in time.

• In case internal sources are not enough to fill in the expected vacancies,
companies might look out for prospective employees from external
sources e.g universities, consultants, competitors etc.
 3. IDENTIFYING
MANPOWER GAP
• Once the number and type of employees needed
is determined and the supply of manpower is
estimated, a reconciliation of the two will determine
the quantitative and qualitative gaps in the
organization. It will throw a light on the number of
people to be recruited or make the organization
aware whether there has been overstaffing. This
forms the foundation of preparing a HR plan.
 4. FORMULATING MANPOWER PLAN
• Once the human resource requirements and necessary changes to be applied
are identified, they need to be translated into a concrete HR plan supported by
policies, programs, strategies etc. Below are some of the plans and strategies
implemented to achieve the goals-
• (a) Recruitment and selection plan : Recruitment and selection is the process of
hiring the right number and type of people at the right place and at the right
time. To do this there are plans charted out to recruit the right people. After
recruitment the selection process is also professionally designed.
• (b) Redeployment and training : To keep the employees abreast with the
changing technology or product lines they should be imparted new skills. In case
an organization discontinues a business the employees should be retrained and
redeployed to other departments where they can effectively contribute.
• (c) Alternatives to Hiring : There are other alternatives that can be undertaken as
an alternative to hiring additional employees for e.g encouraging employees
nearing retirement to extend their years of service by rewarding late retirements,
rehire, launching overtime schemes by paying a higher commission for overtime
etc. All these alternatives are beneficial if the manpower need has gone high for
a temporary time period and there is a likelihood of it returning to a lower level.
• (d) Retention Plans : Various retention plans are implemented to avoid attrition in
an organization. Organizations might increase the wages, provide better career
opportunities, improve the working conditions, avoid hiring unstable recruits etc.
• (e) Downsizing Plan : Organizations resort to downsizing plans when the supply of
manpower exceeds the demand and there is surplus in the staff. In such a case
staff is underutilized and there is a need of trimming the labour force. Some of the
examples of downsizing plans are offering voluntary retirement schemes to the
employees, laying off the redundant staff etc.
 MANPOWER DEMAND
FORECASTING TECHNIQUES
• In order to assess the number of employees required at
any given time in future, organizations apply various
manpower demand forecasting techniques. The basis of
forecast is the annual budget and long term corporate
plans, which is then converted into the man hours
required to achieve them and finally the number of
employees required to complete those man hours.
Forecasting techniques vary from organization to
organization. Organization may follow more than one
technique which can be simple or complex, the most
commonly used techniques are discussed below.
• Managerial Judgment In this forecasting method the experience and
judgment of the managers is used to forecast the demand for labour. It
can be a bottom-up-forecasting in which the line managers submit their
manpower proposal to top managers who analyze the same and
ultimately forecast the human resource requirement for the overall
organization on the basis of proposals of the departmental needs.
• The other approach is the top down forecasting method . In this
approach the top managers meet and discuss the current business
scenario, the future challenges expected and how these trends would
impact the business and forecasts the human resource requirements for
the entire organization and various departments. This information is
supplied to various departmental heads for their review and approval.
• A participative approach is the most preferred approach in which
management and departmental heads meet and unanimously decide
about the future human resource requirements

• Ratio-Trend Analysis Under this forecasting technique the demand for

human resources/manpower is estimated on the basis of ration of
production level and number of employees required to achieve that
production level in the past. While doing so the provisions are made for
any possible changes expected in the processes, product line, structure
of the organization.
• A simple example given below
• Estimated production for next year = 140000 units Ratio as per analysis -
1:200 (1 employee produced 200 units in the past in a span of one year)
Estimated number of workers needed on the basis of ratio trend of 1:200
= 700 workers
• Regression Analysis Similar to ratio-trend analysis this model is also
based on the relationship between dependent variable (sales
volume) and independent variable (employee size). However this
model is based on mathematical and statistical techniques for
estimating future demand. A regression line is drawn in a diagram
which depicts the relationship between the dependent variable to
be predicted (e.g manpower/human resources) and the
independent variable (e.g sales, total production, work load etc)
• Work- Study Technique This technique is also known as work load
analysis . This technique is used where the work load is easily
measurable. The company first considers the production budget
prepared in terms of volumes of the saleable product. The
budgeted volumes are then translated into number of man hours
required to produce per unit. Thus demand of human resources is
forecasted on the basis of estimated total production and
contribution of each employee in producing each unit items.
Allowances will have to be made for absenteeism , labour
turnover and idle time.
• DELPHI TECHNIQUE

• Delphi technique is also a very important technique used

for estimating demand for human resources. It takes into
consideration the human resources requirements given by
a group of experts i.e managers. A small group or panel of
ten or fewer experts is identified. Each expert is asked to
give their individual judgments on the issue , they are
asked to provide answers to a structured questionnaire or
even interviewed. After which the human resource
planning expert acts as a intermediary, collects all
responses, summarizes them and send the report back to
the experts. This process is continued until all the experts
agree on estimated human resource requirements. In the
entire process there is no interaction between the experts,
they do not meet face to face but exchange notes
through anonymous questionnaires.
 JOB ANALYSIS
• Manpower planning is concerned with determination of quantitative and qualitative
requirements of manpower for the organization. Determination of manpower
requirements is one of the most important problems in manpower planning. Job
analysis in this module and job design in next module put a light on this knowledge to
clarify the concept. Before going through the mechanism of job analysis and job
design, it is relevant to understand the terms which are used in job analysis and job
design.

• Job: A job may be defined as a “collection or aggregation of tasks, duties and

responsibilities which as a whole, are regarded as a regular assignment to individual
employees,” and which is different from other assignments, In other words, when the
total work to be done is divided and grouped into packages, we call it a “job.” Each
job has a definite title based upon standardized trade specifications within a job; two or
more grades may be identified, where the work assignment may be graded according
to skill, the difficulty of doing them, or the quality of workmanship. Thus, it may be noted
that a position is a “collection of tasks and responsibilities regularly assigned to one
person;” while a job is a “group of position, which involve essentially the same duties,
responsibilities, skill and knowledge.” A position consists of a particular set of duties
assigned to an individual.
 DEFINITION
• Developing an organizational structure, results in jobs
which have to be staffed. Job analysis is the procedure
through which you determine the duties and nature of
the jobs and the kinds of people (in terms of skills and
experience) who should be hired for them.’
• It provides you with data on job requirements, which are
then used for developing job descriptions (what the job
entails) and job specifications (what kind of people to
hire for the job).
• According to Michael L. Jucius, “Job analysis refers to
the process of studying the operations, duties and
organizational aspects of jobs in order to derive
specifications or as they called by some, job
descriptions.”
USES OF JOB ANALYSIS
• 1. Achievement of Goals: Weather and Davis have stated, “Jobs are at
the core of every organization’s productivity, if they are designed well
and done right, the organization makes progress towards its objectives.
Otherwise, productivity suffers, profits fall, and the organization is less able
to meet the demands of society, customer, employees, and other with a
stake in its success.”
• 2. Organizational Design: Job analysis will be useful in classifying the jobs
and the interrelationships among the jobs. On the basis of information
obtained through job analysis, sound decisions regarding hierarchical
positions and functional differentiation can be taken and this will improve
operational efficiency.
• 3. Organization and Manpower Planning: It is helpful in organization
planning, for it defines labour in concrete terms and co-ordinates the
activities of the work force, and clearly divides duties and responsibilities.
• 4. Recruitment and Selection: Job analysis provides you with information
on what the job entails and what human requirements are required to
carry out these activities. This information is the basis on which you decide
what sort of people to recruit and hire.
• 5. Placement and Orientation: Job analysis helps in matching the job
requirements with the abilities, interests and aptitudes of people. Jobs will
be assigned to persons on the basis of suitability for the job. The
orientation programme will help the employee in learning the activities
and understanding duties that are required to perform a given job more
effectively.
• 6. Employee Training and Management Development: Job analysis provides
the necessary information to the management of training and
development programmes. It helps in to determine the content and
subject matter of in training courses. It also helps in checking application
information, interviewing test results and in checking references.

• 7. Job Evaluation and Compensation: Job evaluation is the process of

determining the relative worth of different jobs in an organization with a
view to link compensation, both basic and supplementary, with the worth
of the jobs. The worth of a job is determined on the basis of job
characteristics and job holder characteristics. Job analysis provides both in
the forms of job description and job specification.

• 8. Performance Appraisal: Performance appraisal involves comparing each

employee’s actual performance with his or her desired performance.
Through job analysis industrial engineers and other experts determine
standards to be achieved and specific activities to be performed.

• 9. Health and Safety: It provides an opportunity for identifying hazardous

conditions and unhealthy environmental factors so that corrective
measures may be taken to minimize and avoid the possibility of accidents.

• 10. Employee Counselling: Job analysis provides information about career

choices and personal limitation. Such information is helpful in vocational
guidance and rehabilitation counselling. Employees who are unable to
cope with the hazards and demands of given jobs may be advised to opt
for subsidiary jobs or to seek premature retirement.
PROCESS
• 1. Determine the Use of the Job Analysis Information: Start by identifying
the use to which the information will be put, since this will determine the
type of data you collect and the technique you use to collect them.

• 2. Collection of Background Information: According to Terry, “The make-up

of a job, its relation to other jobs, and its requirements for competent
performance are essential information needed for a job evaluation. This
information can be had by reviewing available background information
such as organization charts (which show how the job in question relates to
other jobs and where they fit into the overall organization); class
specifications (which describe the general requirements of the class of job
to which the job under analysis belongs); and the existing job descriptions
which provide a starting point from which to build the revised job
description”.

• 3. Selection of Jobs for Analysis: To do job analysis is a costly and time

consuming process. It is hence, necessary to select a representative
sample of jobs for purposes of analysis. Priorities of various jobs can also be
determined. A job may be selected because it has undergone
undocumented changes in job content. The request for analysis of a job
may originate with the employee, supervisor, or a manager. When the
employee requests an analysis it is usually because new job demands
have not been reflected in changes in wages. Employee’s salaries are, in
part, based upon the nature of the work that they perform. Some
organizations establish a time cycle for the analysis of each job. For
example: A job analysis may be required for all jobs every three years. New
jobs must also be subjected to analysis.
• 4. Collection of Job Analysis Data: Job data on features of the job, employee qualification and
requirements, should be collected either from the employees who actually perform a job; or from
other employees (such as foremen or supervisors) who watch the workers doing a job and there by
acquire knowledge about it; or from the outside persons, known as the trade job analysis who are
appointed to watch employees performing a job. The duties of such a trade job analyst are (i) to
outline the complete scope of a job and to consider all the physical and mental activities involved
in determining what the worker does.; (ii) find out why a worker does a job; and for this purpose he
studies why each task is essential for the overall result; and (iii) the skill factor which may be needed
in the worker to differentiate between jobs and establish the extent of the difficulty of any job.

• 5. Processing the Information: Once job analysis information has been collected, the next step is to
place it in a form that will make it useful to those charged with the various personnel functions.
Several issues arise with respect to this. First, how much detail is needed? Second, can the job
analysis information be expressed in quantitative terms? These must be considered properly.

• 6. Preparing Job Descriptions and Job Classifications: Job information which has been collected
must be processed to prepare the job description form. It is a statement showing full details of the
activities of the job. Separate job description forms may be used for various activities in the job and
may be compiled later on. The job analysis is made with the help of these description forms. These
forms may be used as reference for the future.

• 7. Developing Job Specifications: Job specifications are also prepared on the basis of information
collected. It is a statement of minimum acceptable qualities of the person to be placed on the job.
It specifies the standard by which the qualities of the person are measured. Job analyst prepares
such statement taking into consideration the skills required in performing the job properly. Such
statement is used in selecting a person matching with the job.
 METHODS TO COLLECT
JOB ANALYSIS DATA
• 1. Participant Diary/Logs: Workers can be to keep participant diary/log or
lists of things they do during the day. For every activity he or she engages
in, the employee records the activity (along with the time) in a log. This
can provide you with a very comprehensive picture of the job, especially
when it’s supplemented with subsequent interviews with the worker and
his or her supervisor. This method provides more accurate information if
done faithfully. However, it is quite time consuming. Further, each job
holder may maintain records according to his own way which presents
problems in analysis at later stage. Therefore, it has limited application.

• 2. Interview: There are three types of interviews you can use to collect job
analysis data: individual interviews with each employee; group interviews
with groups of employees having the same job; and supervisor interviews
with one or more supervisors who are thoroughly knowledgeable about
the job being analyzed. The group interview is used when a large number
of employees are performing similar or identical work, since this can be a
quick and inexpensive way of learning about the job. As a rule, the
worker’s immediate supervisor would attend the group session; if not, you
should interview the supervisor separately to get that person’s
perspective on the duties and responsibilities of the job.
• 3. Critical Incidents: In this method, job holders are asked to describe incidents
concerning the job on the basis of their past experience. The incidents so
collected are analyzed and classified according to the job areas they describe, A
fairly picture of actual job requirements can be obtained by distinguishing
between effective and ineffective behaviors of workers on the job. However, this
method is time consuming. The analyst requires a high degree of skill to analyze
the contents of descriptions given by workers.

• 4. Questionnaires: The method is usually employed by engineering consultants.

Properly drafted questionnaires are sent out to job-holders for completion and are
returned to supervisors. However, the information received is often unorganized
and incoherent. The idea in issuing questionnaire is to elicit the necessary
information from job –holders so that any error may first be discussed with the
employee and, after corrections, may be submitted to the job analyst This
technique is time consuming and generally does not yield satisfactory results
because many employees do not complete the questionnaire or furnish incorrect
information because of their own limitations. The use of questionnaire is
recommended only in case of those technical jobs where the job contents are
not completely known to the supervisor or the operation is too complex to
observe. There are certain standardized questionnaires developed by a few
agencies which are used by various organizations for job analysis. Most of these
questionnaires are of two types: position analysis questionnaire and management
position description questionnaire that are described as follows: a. Position Analysis
Questionnaire. Position analysis questionnaire (PAQ) is a highly specialized
instrument for analyzing a job in terms of employee activities. The PAQ developed
by Purdue University is a comprehensive questionnaire for collecting information
for job analysis. In this questionnaire, various job elements have been grouped into
six categories with each category containing relevant job elements resulting into
195 elements
• The advantage of PAQ is that it provides a quantitative
score or profile of any job in terms of how that job rates on
the basic activities. The PAQ’s real strength is, thus, in
classifying jobs. PAQ’s results can be used to compare the
jobs relative to one another and pay levels can be
assigned for each job. The major problem with PAQ is the
time it takes for a job analyst to fill out the ratings.
However, PAQ has been widely researched and tested
and appears to be both reliable and valid.
• b. Management Position Description Questionnaire:
Management position description is a highly structured
questionnaire containing 208 items relating to managerial
responsibilities, restrictions, demands and other
miscellaneous position characteristics. W.W. Tomov and
P.R. Pinto have developed the following Management
position Description factors:
• Product, marketing and financial strategy planning.
• Coordination of other organization units and personnel
• Internal business Control
• Products and services responsibility
• Public and customer relations
• Advanced consulting
• Autonomy of actions
• Approval of financial commitments
• Staff Service
• Supervision
• Complexity and stress
• Advanced financial responsibility
• Broad personnel responsibility
• 5. Technical Conference Method: This method utilizes supervisors with extensive
knowledge of the job. Here, specific characteristics of a job are obtained from the
“experts.” Although it is a good data gathering method, it often overlooks the
incumbent worker’s perception about what they do on their job.

• 6. Job Performance: Under this method, the job analyst actually performs the job under
study to get first-hand experience of the actual tasks, and physical and social demands
of the job. This method can be used only for jobs where skill requirements are low and
can be learnt quickly and easily. This is a time- consuming method and is not
appropriate for jobs requiring extensive training.

• 7. Functional Job Analysis: Functional job analysis (FJA) is employee- oriented analytical
approach of job analysis. This approach attempts to describe the whole person on the
job. The main features of FJA include the following:
o The extent to which specific instruction are necessary to perform the task
o The extent to which reasoning and judgment are required to perform the task
o The mathematical ability required to perform the task and
o The verbal and language facilities required to perform the task.

• 8. Observation Method: Using this method, a job analyst watches employees directly on
the job. Observations are made on various tasks, activities, the pace at which tasks are
carried out, and the way different activities are performed. This method is suitable for
jobs that involve manual, standardized, and short job cycle activities. This method also
requires that the entire range of activities be observable; possible with some jobs.
 JOB DESIGN
• Job design follows job analysis i.e. it is the next step after job analysis. Job design
means to decide the contents of a job. It fixes the duties and responsibilities,
organize tasks for a job, it also outlines the methods and relationships between the
job holder (manager) and his superiors, subordinates and colleagues that are
essential for the success of a certain job.

• Job design essentially involves integrating job responsibilities or content and certain
qualifications that are required to perform the job and the reward (financial and
non-financial benefits) for doing the job.. It outlines the job responsibilities very
clearly and also helps in attracting the right candidates to the right job. Further it
also makes the job look interesting and specialised.
DEFINITION
PRINCIPLES
METHODS
 UNIT-3
• EXPANDING THE TALENT POOL
RECRUITMENT
 objectives
• The objectives of recruitment are:
o i. To attract people with multi-dimensional skills and experiences
that suit the present and future organizational strategies,
o ii. To induct outsiders with a new perspective to lead the
company,
o iii. To infuse fresh blood at all levels of the organization,
o iv. To develop an organizational culture that attracts competent
people to the company,
o v. To search or head hunt/head pouch people whose skills fit the
company’s values,
o vi. To devise methodologies for assessing psychological traits,
o vii. To seek out non-conventional development grounds of talent,
o viii. To search for talent globally and not just within the company,
o ix. To design entry pay that competes on quality but not on
quantum, x. To anticipate and find people for positions that does
not exist yet.
PROCESS
Factors affecting recr.
sources
 INTERNAL SOURCES
• This approach includes recruiting, developing and promoting the
employees from within the organization. Internal recruitments are cost
effective, more reliable as the organization is aware of the
candidate’s skill set and knowledge and it also motivates the
employees and increases their commitment towards the organization.
Internal sourcing can be done in the following ways:-

• (A) Transfers : An employee may be shifted from one job to another

internally generally of the same level. The roles and responsibilities of
the employees might change but not necessarily the salary. This helps
the employees to get motivated and try something new, helps them
break the monotony of the old job and encourages them to grow by
gaining more knowledge.

• (B) Promotions :As recognition of their efficiency and experience the

employees are moved from a position to a higher position. There is a
change in their duties and responsibilities accompanied with a
change in salary and status. It helps the employee to grow vertically
in the organization. It refrains him from leaving the company for
greener pastures.
• (C) Retired and retrenched employees : Retired and retrenched
employees may also be recruited back in case there is high demand
and shortage of supply in the industry or there is sudden increase in
work load. These employees are already aware of the processes,
procedures and culture of the organization hence they prove to be
cost effective.
• (D) Employee Referrals : In this case each employee of the company
acts as a recruiter. The employees are encouraged to recommend
the names of their friends or relatives working in other organizations.
For this they are even rewarded monetarily. The benefit of employee
referral is that the potential candidate gets the first hand information
about the job and organization culture from the already working
employee. Since he knows what he is getting into he is expected to
stay longer in the organization. Also since the credibility of those who
recommend is at stake, they tend to recommend those who are
highly motivated and competent.
• (E) Job Postings : The Company posts the current and expected
vacancy on bulletin boards, electronic media and similar common
portals. This gives an opportunity to the employees to undertake
career shift and help them grow within the company.
• (F) Deceased and disabled employees : In order to make the families
of the deceased and disabled employees self-sufficient their relatives
or dependents may be offered a job in case of any vacancy.
 EXTERNAL SOURCES
• (A) Campus Recruitments : When companies are in search of fresh talents and are
focusing on knowledge, communication skill and talent than experience, they
approach management colleges, technical institutes etc. The company makes a
presentation about its organization in order to attract the students. Whoever finds
it matching with their career plans applies for the job. These applicants are then
made to go through series of selection processes like analytical and psychological
tests, group discussions, interviews etc before the final selection is done.

• (B) Management Consultants : Management consultants act as representatives of

the employer. They perform the recruitment function on behalf of the client
company by charging them fees or commission. These consultants are able to
tailor their services according to the specific needs of the clients thus relieving the
line managers from their recruitment function.

• (C) Advertisements through newspaper, television and radio etc. :This media of
recruitment is very popular and commonly used as it reaches out a wide range of
people. It can also be targeted at a specific group or a particular geographic
area by choosing a specific newspaper, radio channel etc. e.g Business journal. In
certain advertisements company name, job description and salary packages are
mentioned. There are blind advertisements as well where no identification of the
firm is given. These advertisements are published mostly when the organization
wants to fill an internal vacancy or planning to displace an existing employee.
• (D) Trade Associations : There are associations that create a
database of job seekers and provide it to its members during
regional or national conventions. They also publish classified
advertisements for employers interested in recruiting their
members.

• (E) Walk in Interview : Another upcoming method of

recruitment is walk-in interviews. There is no time and meeting
schedule for each individual. An advertisement regarding the
time and the location of the interview is given in the
newspaper. The candidates are required to carry their CVs and
directly appear for the interview. It is a very common mode of
recruitment amongst BPOs and call centers.

• (F) Job Fairs : Job fairs are effective way of getting in touch with
the potential employees and candidates. There are HR hiring
managers of various companies under one roof. Information
and business cards can be exchanged and resumes can be
submitted by the candidates. Employers can spot the right
applicants, similarly the applicants can apply in many
organizations together, wherever they feel the offer is best and
suits their interest.
HR challenges in recr.
HR challenges in recr.
Career development
Why?
responsibilities
process
 QUESTIONS
• Q1. What is HRM? Evolution of HRM?

• Q2. Identify several consequences of an organisation failure to

recognise that its HRM practices comprise an interrelated
system.

• Q3. Purpose of HR planning? How might imbalance between

demand and supply be reconciled?

• Q4. What is the internal and external labour market? Why,

when recruiting for a vacant position, might the internal and
external labour market be your first choice?

• Q5. bring out the steps in training and development process.

How would you measure the effectiveness of a training
program designed to improve loan processing in a financial
service institution.
 QUESTIONS
• Q6. What is compensation? Describe how you can ensure that a
compensation process is suitable for employess?

• Q7. Discuss the concept of broadbanding.

• Q8. What role can you as a manager play in union organising effrot?
If you were asked to provide input for the purpose of collective
barganing process, what type of information would you provide?

• Q9. How much responsibility do companies have to help employees

balance their work and personal lives? What options are available to
achieve work/life balance?

• Q10. short notes on:

o A) managing protean career
o B) career development initiatives
o C) ergonomic consideration of job design
 QUESTIONS
• Q11. Discuss the nature, scope and functions of HRM.

• Q12. Differentiate between personal management and HRM.

• Q13. What are the challenges available for HR managers today?

What are the coping strategies.

• Q14. Discuss an indian and an abroad based HR model.

• Q15. Explain the evolution of HRM

• Q16. What is job analysis? Discuss the significance of job analysis.

• Q17. Define job deign. Discuss the ergonomic and behavioral

consideration while designing the job.

• Q18. Define manpower planning. Discuss the process of manpower

planning.
 QUESTIONS
• Q19. Explain the sources of recruitment.
• Q20. discuss on the job and off the job methods of
training.
• Q21. Differentiate between training and development
• Q22. What is job evaluation? Discuss the methods of job
evaluation.
• Q23. Discuss the competencies of an Hr manager.
• Q24. short notes
o A. turnover rate, absenteeism rate, turnover cost and HRI’s
o B. role of hr generalist and hr specialist
o C. health, wealth , safety provisions
o D. Wellness program
o E. Human resources audit and human resource accounting.
o F. green hrm
o G. international HRM and HRPs (high performing work system)