WHAT IS HRM?

HRM DefinitionFunction of hrmScope of HRM

HRM DefinitionManagement process:- The five basic functions of planning, organizing, staffing,

leading, and controlling.

Human resource management (HRM):- The policies and practices involved in carrying out the

“people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

Organizing

Leading

Controlling

Planning

Scope of HRM

HRM

Nature of

HRM

Employee

hiring

remuneration

motivation

Industrial

relation

Prospects of

HRM

Functions of HRM

Various function of hrm is planning forecasting recruiting training and development and compensating

Click icon to add picture

Human Resource

management

Functions

Human Resource

DevelopmentEmployee and

Labour Relations

Safety and Health

Compensation

Staffing

Human Resource

Management

FUNCTIONAL AREAS WITHIN HR

EMPLOYMENT / STAFFINGrecruitmentselection

TRAINING & DEVELOPMENT appraisaleducation and development

COMPENSATIONsalaries, wages and benefitsincentive plans

EMPLOYEE RELATIONS grievance resolution union relations

HR PLANNING & RESEARCH forecasting job analysis attitude surveys validation studies

The importance of HRMPeople is the key factor of production.Productivity is the key to measure a

nation’s economic growth potential, and labour quality is the key to improving productivity.

Competition today is the competition for talents.

Since man is the most uncontrollable and unpredictable variable of all production variables, organizational success depends on the management of people.

Key Terms

Organization & individual Organization needs:

Profits, productivity and markets.

Individual needs: Maslow's Need Hierarchy

Physiological needs, security, belonging, self-respect and self-actualization.

Coordinating organization and individual needs: goal of HRM.

People & productivityProductivity:- the measurement of economic growth potential. Productivity formula: input : output

Measurement of productivity:- Productivity of worker is the output per hour. Productivity of equipment is the output per every

dollar invested. Productivity of energy is the output per every unit of

energy consumed.

Managers’ HRM Responsibilities

Line managers Staff managers

Job placing. Orienting new employees. On-job training of

employees. Interpreting company policies

and procedures. Conducting job appraisals. Controlling labour costs. Labour protection and

disciplines.

A line function: directing and managing people in the HRM department.

A coordinating function: coordinating HRM activities across the organization.

Staff functions: Same as the HRM functions

plus labour relations and collective bargaining with the trade unions

Activities of the Major Human Resource Functions

HRM Practices

Human Resource Management Practices

Analysing work and designing jobs

(recruiting)

(selection)

training and development

performance management

compensation

employee relations

Imp

act

of H

um

an R

esou

rce

Man

agem

ent

Type of human capital

Judgment

Experience

training• Intelligence• Relationship• insight

Organizational performance• Quality• Profitability• Customer satisfaction

Behavior of human capital• motivation• Effort

Steps in Recruitment & Selection Process

Planning and ForecastingEmployment or personnel planning:- The process of deciding what positions the firm will have

to fill, and how to fill them.

Succession planning:- The process of deciding how to fill the company’s most

important executive jobs.

What to forecast?:- Overall personnel needs The supply of inside candidates The supply of outside candidates

Forecasting Personnel Needs

Trend analysis:- The study of a firm’s past employment needs

over a period of years to predict future needs.

Ratio analysis:- A forecasting technique for determining future

staff needs by using ratios between a causal factor and the number of employees needed.

Assumes that the relationship between the causal factor and staffing needs is constant

The Scatter Plot

Scatter plot A graphical method used to help identify the relationship between two variables.

Initial Screening

Application Blank

Pre-employment Testing

Interviews

Reference Checks

Medical Examination

Job offer

.

Recruitment

Recruitment

Definition and Meaning of Recruitment:-

According to Edwin B. Flippo,“ Recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the organisation

Meaning:- Recruitment is the activity that links the employers and the job seekers. A

process of finding and attracting capable applicants for employment

Recruitment

Internal

Recruitment

External

Recruitment

Effective RecruitingExternal factors affecting

recruiting:-Looming undersupply of workersLessening of the trend in outsourcing of jobsIncreasingly fewer “qualified” candidates

Internal factors affecting recruiting:-

The consistency of the firm’s recruitment efforts with its strategic goals

The available resources, types of jobs to be recruited and choice of recruiting methods

Non recruitment HR issues and policies Line and staff coordination and cooperation

planning

processing

selection

recruiting

Selection

Recruitment & Selection

Pool of applicant

selection Job performance

recruitment

Staffing needs

Human Resources planning

Job analysis

The civil service staffing process

28

Planning and approval for staffing

Position announcement

Selection of recruitment strategies

Selection of „tests”

Screen, interview, and checks (reference and other)

Final selection / Negotiate and hire

Postselection considerations

Rec

ruit

men

tS

elec

tion

SelectionSelectionChoosing from a pool of applicants the person or

persons who offer the greatest performance potential.

Selection StepsCompletion of a formal application form. Interviewing.Testing.Reference checks.Physical examination.Final analysis and decision to hire or reject.

Staffing

Job AnalysisHuman Resource Planning RecruitmentSelection

testing hiring

Intelligence

Honesty

Aptitude

Drug

Reference checking

Background investigation

Job descriptio

n

Job specification

Personal

specification

Selection

Training & development

Compensation

& benefits

Labor relationships

Job analysis

Basic Building Blocks of HR Management

Job analysis

Job description

Job specifition

Process of selection

Job Analysis: A Basic Human Resource Management Tool

34

Tasks Responsibilities Duties

Job Analysis

Job Descriptions

Job Specifications

Knowledge Skills Abilities

Human Resource Planning

Recruitment

Selection

Training and Development

Performance Appraisal

Compensation and Benefits

Safety and Health

Employee and Labor Relations

Legal Considerations

Job Analysis for Teams

Job description work to b

done

Job specification (necessary personal

characters

Job analysis

Job analysisWorkEffort directed toward producing or accomplishing results.

JobA grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee.

Task

distinct activity for specific purpose

Duty large segment of work

Position

one or more duties for 1 person

Cont.

Job DesignOrganizing tasks, duties, and responsibilities into a productive unit of work.Person/job FitMatching characteristics of people with characteristics of jobs.

Job Requirements

Relationship of Job Requirements

Recruitment

Selection

Performance Appraisal

Training and Development

Training and Development

Compensation Management

Compensation Management

Determine recruitment qualificationsDetermine recruitment qualifications

Provide job duties and job specifications for selection process

Provide job duties and job specifications for selection process

Provide performance criteria for evaluating employees

Provide performance criteria for evaluating employees

Determine training needs and develop instructional programs

Determine training needs and develop instructional programs

Provide basis for determining employee’s rate of pay

Provide basis for determining employee’s rate of pay

Nature of job design

Nature of Job DesignJob Enlargement Broadening the scope of a job by expanding

the number of different tasks to be performed.

Job Enrichment Increasing the depth of a job by adding the

responsibility for planning, organizing , controlling, and evaluating the job.

Job Rotation The process of shifting a person from job to

job. a process whereby employees rotate in and

out of different jobs.

Job Descriptions and Job Specifications

Job DescriptionIdentification of the tasks, duties, and responsibilities of a job

Job SpecificationThe knowledge, skills, and abilities an individual needs to perform a job satisfactorily.

Personal specifition means qualities and gets to perform

specific job

Job description and personal specification

Testing

TestingUsed to further screen applicants by

gathering additional job-relevant information.

Common types of employment tests:IntelligenceAptitudePersonalityInterests

Cognitive (Mental) Abilities

AchievementMotor and

Physical Abilities

Personality and

Interests

What Tests Measure

Other testing methodPersonality

testingPhysical testingHonesty testingDrug testingReferences

The Big Five Personality Dimensions

Personality DimensionCharacteristics of Person Scoring

Positively on Dimension

Extraversion 2) Agreeableness 3) Conscientiousness 4) Emotional stability 5) Openness to

experience

Outgoing, talkative, social, assertive

Trusting, good-natured, cooperative, soft-hearted

Dependable, responsible, achievement-oriented, persistent

Relaxed, secure, unworried

Intellectual, imaginative, curious, broad-minded

Interviewing

Why an Interview? Exchange sufficient & necessary

information to decide suitability Social and ritual aspects. Audition.

Group/power vetting Candidate asserts abilities & presents

experience. Communicate relevant information about

job/organisation - objective & subjective Seduce candidate to become an

organisational member Satisfy candidate - give fair opportunity Importance of not over-selling

Basic Features of Interviews

Interview StructureInterview

Administration

Selection Interviews

Interview Content

Interview Formats

Unstructured or

Nondirective Interview

Interview Formats

Structured or

Directive Interview

Structured Interview directive interview following a set of sequence of questions

Non-structured Interview: non directive ask questions as they come to mind

Interview Content

Situational Interview

Stress Interview

Behavioral Interview

Job-Related Interview

Types of Questions

Reference And Background

Checks

investigation Inquiries to previous employers, academic

advisors, co-workers and/or acquaintances regarding applicant’s:

Qualifications. Experience. Past work records. Can better inform potential employer. Can enhance candidate’s credibility.

Final Decision To Hire Or Reject

Hire Or Reject

Best selection decisions will involve extensive consultation among multiple parties.

Selection decision should focus on all aspects of the candidate’s capacity to perform the designated job.

Training and development

Training

Training A set of activities that provides the opportunity to

acquire and improve job-related skills.

On-the-job trainingJob rotation

Coaching

Mentoring

Modeling

Off-the-job trainingManagement development

Compensation and benefits

Compensation And Benefits

Base compensation Salary or hourly wages Fringe benefits Additional non-wage or non-

salary forms of compensation Flexible benefits Employees can select a set of

benefits within a certain dollar amount

Performance Appraisal

Performance appraisal Formally assessing someone’s work

accomplishments and providing feedback.

Purposes of performance appraisal:

Evaluation lets people know where they stand

relative to objectives and standards.

Development assists in training and continued

personal development of people.

Any Question?

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