CHAPTER 12

Topics to be covered…..

• What HRM is?

• Why HRM is important?

• Human Resource Management Cycle

• Knowledge worker concept

• Function of HRM

– Staffing

– Training and Development

– Motivation

– Miantenance

Human Resource Management

• Human Resource Management (HRM) is the process ofevaluating an organization’s human resource needs, findingpeople to fill those needs, and getting the best work from eachemployee by providing the right incentives and job environment--- with the overall aim of helping achieve organizational goals.

• HRM is concerned with the most effective and efficient use ofhuman resource. It deals with organization’s staffing levels,motivating employees, managing employee relations andemployee service.

• HRM is a strategic approach to manage people at work.

Importance of HRM ….

• Our people are our most important resource.

• Strategic Tool.

• It increase productivity.

• It enhances group learning.

• It reduce staff turnover. (Service Type Businesses e.g. Banks)

• It encourages initiatives.

• Important source of competitive advantage.

Human Resource Cycle ….

Selection Performance

Ap

pra

isal

Rewards

Training

and

Development

• HRM is a bridge between employee and employer.

• Give something and get something concept.

• When your organization has about 100 employees, then HRM becomes necessary.

• HRM focuses on personality dominance to work dominance.

Knowledge Worker Concept….

• An employee who have the required knowledge and skills to perform a specific task or job.

Functions of HRM

HRM

Staffing

Training

& Development

Motivation Maintenance

Staffing

1. Human Resource Planning (HRP)

2. Recruitment

3. Selection

1. Human Resource Planning (HRP)

• Right person for right job, in the right time, at right place.

• Current Human Resource Inventory (HRI)

• Future Needs

• Replacement Charts/Succession Planning (Planning for persons who are going to be replaced)

• Demand and Supply of Human Resource

• Job Analysis

– Job Description. (Focus on Job)

– Job Specification. (SKA)

– Job Evaluation. (Whether you are doing rightly.)

2. Recruitment

• Locating, Identifying and Attracting capable applicants.

• It is used to hire people.

• Recruitee Future Employee

• Candidates (10) Recruitee (5) Employee (1)

• Sources of Recruitment

– Internal Sources (Promotion, Employee referrals)

– External Sources (Internet, News Papers, Colleges n Universities, Recruitment Agencies etc)

• Recruitment Constraints

• De-recruitment

3. Selection

1 •Short Listing/Initial Interview

2 •Written Test

3 •Panel Interview/Employment Interview

4 •Background Checking

5 •Appointment Letter

6 •Medical Examination

Training and Development

1. Socialization/Orientation .

2. Training

3. Development

4. Career Development

• Awareness about company and its environment.

• Organization tries to influence the new hire to adapt the way they do things around the workplace using formal and informal processes.

• For example language, physical appearance or greet the customers.

• Socialization must be there otherwise employees will left.

Socialization Process

2.

• It more focused on your present job.

• Training of employees takes place after orientation takes place.Training is the process of enhancing the skills, capabilities andknowledge of employees for doing a particular job. Trainingprocess moulds the thinking of employees and leads to qualityperformance of employees. It is continuous and never ending innature.

• How to work, How to sit n stand, How to greet customers etc.

• Training may be given to new employees as well as employees with no good performance appraisal.

• Indoor training and outdoor training.

• On the job training and off the job training.

3.

• It is more focused on future positions.

• Companies often realize that investing in the growth anddevelopment of key employees helps improve the overallcompetence of the organization. When an employee learns skillsand responsibilities, he becomes better equipped to take onhigher-level work and leadership roles in the future. Mentoringprograms, manager-training programs and departmentalworkshops are examples of employee-development activities.Employee development typically works best when humanresources promotes and supports a culture that rewardsemployees who deliver results and learn new skills.

4.

• Focus on employee career.

• From date of joining to Superannuation (Retirement)

• Step by step promotion in service.

• Career development programs place more emphasis on opportunities foremployees to improve themselves to reach personal career goals. In a 2009study, Hay Group Insight showed that employees felt much more engaged andcommitted to employers who offered chances for personal growth anddevelopment. In essence, companies that offer development opportunitiesplace a higher emphasis on employee retention. The general belief is that ifyou can motivate employees to improve their knowledge and skills, thecompany ultimately benefits.

Motivation

1. Employee Benefits

2. Employee development program

3. Performance Reward System

1.

• Benefits Planning

– Medical Facilities

– Residence

– Leaves

– Transportation

• Incentives

– Cash Incentives

– Haj Incentives

• For efficient as well as for average performance.

• If peoples are working well motivation is there.

• If peoples are frustrated, then de-motivation is there, and this creates a big hurdle in performance.

2.

• Only for above average and efficient performance.

• How employees are developed?

– Special Trainings.

– Further Education.

– Participation in Decision Making.

– Free Industry and Foreign Tours.

– Promotions.

3.

• Rewards are what employees receive for performing well. Sometimesthese rewards come from the organisation in the form of money,recognition and promotions. Rewards can also consist of feelings fromhaving performed well in work. It can be said that rewards are verypowerful motivators of performance.

• Organisations need various types of performance from theiremployees. They need them to become active members of theorganisation, they need them to do their job as it has been defined andthey need their employees to improve their performance. In order toachieve improvements in performance different reward systems mustbe applied.

• As much better performance you will show, so better reward you willget.

• Financial Vs. Non- Financial Rewards

• Intrinsic Vs. Extrinsic Rewards

Maintenance

1. Performance Appraisal

2. Compensation

3. Industrial relations

4. Rewards

1.

• A performance appraisal is a review and discussion of anemployee's performance of assigned duties and responsibilities.The appraisal is based on results obtained by the employee inhis/her job, not on the employee's personality characteristics.

• Whether you are performing good or not.

• Good Performance Rewards, Incentives, Promotions

• Average or Bad Performance Training

• Appraisal Process

Appraiser

Appraisee

2.

• Wages, Salary &Payrolls, Bonuses ,Incentives

Benefits

Mandatory

(Necessary as per law)

** Salary

** Suit able working conditions and environment.

Optional

(Optional as per Company’s

Management)

** Residence

** Transportation

** Mobile

** Lunch Facility

3.

• Labor Laws

• Social Security (PESSI)

• EOBI

• Insurance

• Health issues.

• Child Labor.

4.

• A thing given in recognition of service, effort, or achievement.

• Financial Rewards

– Piece rate

– Wages

– Salaries

– Bonus Schemes

– Profit related Pay

– Fringe Benefits

• Non-Financial Rewards

– Job Enrichment

– Job Enlargement

– Communication

– Empowerment

– Quality Circles

– Training

– Autonomous Work Groups