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Module 2 Pre-Recruitment functions
of HRM
Module 2 Pre-Recruitment functions
of HRMBy:
Monica M
SyllabusOrganizational structure Job analysisHR Planning and budget approval. Strategic decision to outsource, Engage contract workers or to recruit people on company role.
Pre-Recruitment Functions The major HRM activities in the pre-hire phase
are Study organization structure, human resource planning and job analysis.
Human resource planning helps managers to anticipate and meet changing needs related to the acquisition, deployment, and utilization of employees.
Job analysis is the systematic process used for gathering, analyzing, and documenting information about particular jobs. The analysis specifies what each worker does, the work conditions, and the worker qualifications necessary to perform the job successfully.
Organization of HRM A systematic arrangement of people brought
together to accomplish some specific purpose; applies to all organizations—for-profit as well as non-profit organizations.
Organizations
Organisation Structure:
Organisation structure is a basic framework within which the mangers’ decision making behaviour takes place.
Organization structure is the pattern of relationships among various components or parts of the organization.
Organizational structure refers to the way tasks are divided up, how the work flows, how this flow is coordinated and the forces and mechanisms that allow this coordination to occur.
Organization Structure Elements
Work Specialization
The degree to which tasks in the organization are sub-divided into separate
jobs with each step completed by a different person. Overspecialization can
result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
Departmentalization
Departmentalization: It is the process of dividing work of an
organization into various units or departments.
The 5 forms of departmentalization are: Functional Departmentalization Product Departmentalization Geographical Departmentalization Process Departmentalization Customer Departmentalization
Functional Departmentalization
Here the structure is built up on specialization. Departments are grouped, based on specialized knowledge available, viz., production, marketing, sales, materials and finance.
Product Departmentalization
LG
Home Appliances
Television Refrigerator
Washing Machine
Computers
Laptop Desktop
Keyboard Speaker Accessories
Telecom devices
Mobile Fixed line phone
It groups jobs by product line. Each manager is responsible of an area within the organization depending of his/her specialization
Positive Aspects Negative AspectsoAllows specialization in particular products and servicesoManagers can become experts in their industryoCloser to customers
oDuplication of functionsoLimited view of organizational goals
Geographical Departmentalization
It groups jobs on the basis of
territory or geography.
Positive Aspects Negative AspectsoMore effective and efficient handling of specific regional issues that ariseoServe needs of unique geographic markets better
oDuplication of functionsoCan feel isolated from other organizational areas
Process Departmentalization:
RTO Office
Accounts
New Registrati
onPenalty
Registration
Vehicle Check
Driving test
Processing Approval Dispatch
+More efficient flow of work activities
– Can only be used with certain types of products
It groups on the basis of product or customer flow.
Customer Departmentalization
+ It groups jobs on the basis of common customers
Customers’ needs and problems can be met by specialists
- Duplication of functions
Span of Control
The number of employees who can be effectively and efficiently supervised by a manager.
Centralization and Decentralized
Centralization The degree to which decision-making is
concentrated at a single point in the organizations. Reduced information overload on upper managers. Increased motivation and accountability throughout
organization. Fewer managers; lower routine costs.
Decentralization Organizations in which decision-making is pushed
down to the managers who are closest to the action. Easier coordination of organizational activities. Exercise of strong leadership in crisis. Faster decision making and response.
Chain of Command
The continuous line of authority that flows from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.
Authority The rights inherent in a managerial position to tell
people what to do and to expect them to do it. Responsibility
The obligation to perform any assigned duties. Unity of Command
The concept that a person should have one boss and should report only to that person.
Organization Structure Formalization
The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
Formalization is the internal process through which an organization sets rules, standards, and procedures to ensure that things get done correctly.
HRM in Organization HRM Small-scale Unit
Production Manager
Sales Manager
Office-Manager
Accountant
Owner/Manager
Personnel Assistant
HRM Large-scale Unit
DirectorProductio
n
DirectorFinance
DirectorHRM
DirectorMarketin
g
Chairman and Managing Director
DirectorR&D
Job Job may be defined as “collection or
aggregation of tasks, duties and responsibilities which as a whole, are regarded as a regular assignment to individual employees.”
Job DesignJob Design
Job Satisfaction
Job Satisfaction
Job Performanc
e
Job Performanc
e
Physical andMental Health
Physical andMental Health
Job design “Job design is deliberate and systematic
attempt to structure the technical and social aspect of the work to improve the efficiency and job satisfaction”
“Job design is a process which integrates work content, the rewards and the qualifications required for each job in a way that meet the needs of the employees and the organization.
Job design is a way of organizing tasks, duties and responsibilities into a productive unit of the work.
Job Design Options: Techniques or Nature of Job Design/Job analysis
Job Enlargem
ent
Job Rotati
on
Job Bandwidt
h
Job Enrichme
nt
Job Simplificati
on
Job characteristics approach
Theory by HACKMAN AND OLDHAM
Job characteristics approach
• The extent to which the work requires several different activities for successful completion.
Skill Variety
• The extent to which the job includes a “whole” identifiable unit of work that is carried out from start to finish and that results in a visible outcome.
Task Identity
• The impact the job has on other people.
Task Significance
• The extent of individual freedom and discretion in the work and its scheduling.
Autonomy
• Amount of information employees receive about how well or how poorly they have performed.
Feedback
Job characteristics approach
Skill variety, task identity & task significance gives job satisfaction
Autonomy gives sense of responsibility & commitment
Feedback enables to analyze performance
Motivating Potential Score (MPS) of a job =
(Skill variety + task identity + task significance) X autonomy X feedback
3
Job Analysis
Job Description A list of job’s duties, responsibilities,
reporting relationship, working conditions, and supervisory responsibilities.
Job Specification A list of job’s “human requirements” that
is, the requisite education, skills, personality and so on.
Job Analysis = Job Description + Job Specification.
JOB ANALYSISA process of obtaining all Information about job facts
Job Description• Job Title, Job code• Location• Job summary• Duties• Machine tools etc• Material etc• Supervision• Working condition• Hazards
Job Specification• Education• Experience• Training• Initiative• Physical effort• Responsibilities• Communication skills• Emotional characteristics• Sensory sight etc.
BENEFITS/USES OF JOBS ANALYSIS
Job Analys
is
Job Descripti
on
Job Specificati
on
Job Evaluation
Training and Development
Recruitment & Selection
Human Resource Planning
Performance Appraisal
Safety and Health
Placement & Orientation
Employee Counselling
Job Analysis in Perspective
Recruitment, Selection, Training and development,, Performance management
Recruitment, Selection, Training and development,, Performance management
METHODS
Direct observation Interview of existing post holder
QuestionnairesPrevious studiesWork dairies
EG: Job Description
Job Title: Business Development ExecutiveResponsibilities:· Calling and lead generation· Fixing appointment and meeting clients.· Giving presentation· Writing proposals· Closing the deals. Salary Offered: Rs. 1.8 LPA Location: BangaloreTentative date of interview: In the next weekTentative date of joining: ASAPProbation/Training Period : 6 Months Training and 6 Months Probation
EG: Job Specification
Education: MBA – Marketing Experience: 0 – 1 Year Requirements: Excellent communication skill (English) Excellent writing skill (English) Passion for Sale Convincing Skills. Self driven Good if candidate has a bike Candidate must have own laptop
E.G Finance specialization Job role:-
Financial Advisor Stock Advisor Equity commodity analyst Business development executive
Salary Range: 1.8L PA Qualification: MBA-Finance Joining Dates: Immediate Local or Out Station Candidates: Both/ Must be
fluent in Hindi
E.G Job Description:1. Fluency in Hindi is Must.2. Generate leads from the high net worth individuals and
retail individuals.3. Conduct cold-calls to increase effective working prospects4. Responsible for the business development by acquiring
potential customers to achieve sales target and market share.5. Communicate effectively and correctively to the customers
with the tune of the organization.6. Strong drive to cold call and hunt for new opportunities at
new clients.7. Closing the deals with the client.8. Excellent communication skills.
E.G Job Description:
9. Strong analytical skills.10. Update the Marketing manager and operational manger
daily11. Prepares reports by collecting, analyzing, and summarizing
information.12. Achieves marketing and sales operational objectives by
contributing marketing and sales information and recommendations to strategic plans and reviews.
13. Protects organization's value by keeping information confidential
14. Maintain company’s contact management database with accurate, up-to-date contact and activity details, Produce monthly sales reports.
15. Achieving revenue target of Rs 60,000.00 monthly basis.16. Contributes to team effort by accomplishing related results
as needed.17. Meet annual sales targets.
Job analysis – HR specialization
Job Profile: Role would require candidates with good communication skills with an attitude towards learning new things. Flexible enough for travel ( both domestic & international) & also for shifts.
Candidates with expertise in the area of specialization ( HR) would be working in Oracle ERP projects.
ELIGIBILITY CRITERIA Post Graduation : MBA (HR) /PGDM (HR) 60% and above score in 10th 60% and above score in 12th 60% and above score in Graduation 60% and above score in current course at the time of joining. No current arrears/ back papers at the time of Joining.
Job analysis – HR specialization
Selection Process Written Test (Aptitude) Technical Written Test Technical/Functional Interview HR Interview Salary Details CTC: : 3.27 Lakhs per annum Service Agreement: Yes NOTE: The Service Agreement Period is of 24
Months (2 Years)
EG:
EG:
Process of Job analysis
Organizational analysis
Selection of representativ
e Position
Collection of job analysis
data
Preparation of job
description
Preparation of job
specification
Advantages of Job Analysis
Disadvantages of Job Analysis
HUMAN RESOURCE PLANING
In simple words, HRP is the process of forecasting an organization's future demand for & supply of the right type of people in the right number.
“It is the process of determining manpower requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization.” -----
Coleman It is the process of determining right kind of people required
to do the specific job
Objectives of HRP
Assessing manpower needs for future and making plans for recruitment and selection
Assessing skill requirement in future Determining training and development needs
of organization Anticipating/determine surplus or shortage of
staff and avoiding unnecessary detention and dismissals.
Controlling wage and salary cost. Ensuring optimum use of human resource in
organization Helps organization to cope with the technological
development and modernization.
NEEDS FOR HRP
Replacement of persons : Retirement, old age, death etc.
Labour turnover Expansion plans : Expand or Diversify Technological changes : Up gradation. Helps in assessing the human
resource requirements of organizations.
FEATURES OF HRP
It is future oriented
It is a continuous process
Optimum utilization of resources
Both Qualitative and Quantitative aspect
Long term and Short term
Involves study of manpower requirement
BENEFITS OF HUMAN RESOURCE PLANNING
Reduced labor cost Optimum utilization of manpower force Identification of gap existing in manpower Improvement in overall business planning Career succession planning Creates awareness in the organizations Growth of organization Beneficial to the country
PROBLEMS OF HRP
Accuracy of forecast Identity crisis Support from top management Resistance from employees Insufficient initial efforts Management information system: Information
availability Uncertainties Expensive and time consuming Coordination with other managerial functions It is a unbalanced approach as quantity aspect of
human resource if focused more that qualitative aspect.
HRP Process
HR planning and Budget Approval
Budget is plan for controlling the use of funds over a period of time
A company stays profitable by working within its predetermined budget.
When human resources personnel set out to fill job openings, they need to understand the departmental personnel budgets they are working with and stay within those numbers when negotiating with candidates.
This requires close work with executives and managers to make sure the company gets the talent it needs to move forward but without going over the prescribed annual budget.
HR planning and Budget Approval
HR Budget would further requires the CFO approval How many employees do we need – in terms
of numbers What are we looking for in terms of skills,
knowledge, experience Where do we need the employees – location,
dept? When do we need the employees? How long do we need them The HR budgeting will be affected if there are
changes like more use of health benefits due to flu, dengue etc, or advance salary, technological changes.
HR planning and Budget Approval
The plan cannot be implemented if there is financial constraints in an organization.
HR Budgeting is a powerful financial tool that estimated the expenditure
HR budgeting helps to apportion funds in different activities like recruitment, training, retaining etc.
Decision makers in an organization approve the HR budget
Organization will carry out HR budget based on the previous year expenses.
Outsourcing
Outsourcing is the act of transferring some of an organization’s recurring internal activities and decision rights to outside providers, as set forth in a contract.
Reduce costs Gain access to cutting edge technology Avoid additional investments Provide more self service tools to employees
Steps to Successful Outsourcing
Strategic -future vision consideration, current and future core competencies, structure, costs, performance, competitive advantages.
1. Planning initiatives2. Exploring strategic implications3. Analyzing costs/performance4. Selecting providers5. Negotiating terms6. Transitioning resources7. Managing relationships
Strategic decision to outsource
Outsourcing is a strategic tool used by companies to improve their ability to concentrate on the core competencies
Organizations would consider outsourcing to - Improve focus on core competencies Improve focus on broader business issues Gain competitive advantage through new tools,
technologies, methodologies and procedures Accelerate reengineering Shared/reduced risk associated with reengineering
changes Reduce operating cost Control and redirect valuable resources
List of HR activities can be outsourced
Background Checks – 73% Employee
Assistance/Counseling – 66%
Healthcare Benefits Administration – 60%
Pension Benefits Administration – 55%
Temporary Staffing – 54% Retirement Benefits
Administration – 47% Payroll & Software
Services – 48% Recruiting, Staffing &
Search
Training and Development – 21%
Incentives – 19% HRIS & Web-based
Services – 15% Performance Management
3% Strategic Business
Planning – 4% Policy
Development/Implementation – 4%
Employee Communication Plans – 10%
Employee vs. Contractor Contract workmen are indirect employees; persons
who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment.
Contract labor should not be employed where(a)The work is permanent and must go on from day to
day;(b) The work is incidental to and necessary for the
work of the factory;(c) The work is sufficient to employ considerable
number of whole time workers; and(d) The work is being done in most concerns through
regular workmen.
Employee vs. ContractorEmployee vs. Contractor"We found many contract workers were as productive as our permanent workers. Our outlook on their training and skill development has changed.“ by Forbes Marshall
Contract is awarded by the HR departmentHR dept. send a job request to the III parties or consultants.The following steps are required for contractingI) EnquiryII) Offers III Comparative StatementIV) NegotiationV) Award the Contract
Contractors – Contract workers
Relationship mostly governed by contract law and perhaps also agency law, not employment law.
The Indian Contract Act, 1872 Contract workers also called as contingent
workers, less costly for employers. But employers loses a degree of control.
A contract worker at Maruti Suzuki's plant in Manesar, Haryana. for the last two years is paid Rs 7,200 per month. on the same assembly line doing the same job, a permanent Maruti employee earns Rs 18,000 per month.
Thank You....
HR side of Indra Nooyi
Indra Nooyi writes letter to her employees once in every two weeks.
She sends letter to parents of employees & also report card.
Indra Nooyi thankful to spouses of employees.
HR policy of Pepsi
No outstation meeting allowed on Monday so that executives do not have to travel on Sunday.
Managers allowed to take a year off with benefits like car & health insurance.
In what way employees manage work life balance is one of the parameters in annual appraisal.
Important Questions1)Define Job design and explain different approaches
of job design?2)What is job analysis? Explain the
technique/methods involved in job analysis?3)What is HRP4)Explain the process of HRP?5)What are the benefits and limitation of HRP?6)Explain the benefits of job analysis?8)Why is human resource planning important?9)Define job rotation
Important Questions10)Explain the term: Job specification and job
description11)Explain various techniques used for job analysis12)Differentiate between job enlargement and job
enrichment13)Explain the Job Characteristics model of job design
(Hackman & Oldham Model)
14)Explain the techniques of job design/Nature of Job design/Design Options?
15)Explain methods of collecting job analysis16)Explain relevance/significance/importance of
human resource planning in organization