Notes - Human Resources Management
Category :
13.1 Meaning of Human Resource Management
HRM is the process of recruitment and selecting employee, providing orientation, induction, training and development to the employee in compliance with labour laws of the land. Moreover, it is related to the overall development of; the human working in an organisation. Human resource management refers to that part of management, which manage the people at work. HRM is the process, which coordinate people with organisation and helps both people and organisation to achieve each other goal.
In HRM, various policies and washing methods are designed to help both the parties to achieve their goal. An organisation is group of people, so it is necessary to development their skills, providing them motivation. HRM is responsible for the relationship between organisation and employees.
13.1.1 Importance of HRM
13.1.2 Functions of HRM
It is concerned with timely fulfilment of the manpower requirements in an organisation.
The process of manpower planning can be divided into two parts. One is analysis of determining the quantitative needs of the organisation, i.e. how many people will be needed in the future. Second is determining the qualitative aspects, i.e. what qualities and characteristics are required for performing a job.
(i) Quantitative Aspects of Manpower Planning
(a) Workload Analysis: It enables an assessment of the number and types of human resources necessary for the performance of the various jobs and accomplishment of organisational objectives. It analyses the required number of personnel.
(b) Workforce Analysis: It reveals the status of number and types of personnel actually available with the organisation. The gap between the two, will tell us the actual requirement of personnel.
(ii) Qualitative Aspects of Manpower Planning (Job analysis)
(a) Job Description: It is the study of job duties and responsibilities to determine human abilities required for their execution.
(b) Job Specification: It specifies the capabilities required to perform the job properly.
Recruitment may be defined as the process of publishing the information about the vacancies in the organisation.
In other words, it is concerned with searching prospective employees and stimulating them to apply for jobs in the organisation. It is a positive process.as more and more people are motivated to apply for the job.
Sources of Recruitment
There are two sources of recruitment, namely internal and external sources:
(i) Internal Sources
Internal sources refer to employ people from within the organisation through promotions and transfers.
(a) Promotion
(b) Transfer
(ii) External sources
These refer to the recruitment of candidates from outside the organisation.
Sources of External Recruitment
Following are the sources of external recruitment:
(a) Direct recruitment
(b) Advertisement
(c) Employment exchange
(d) Labour contractor or jobbers
(e) Web publishing
(f) Casual callers
(g) Recommendation of
(h) Campus recruitment
(i) Placement agencies
Procedure for Recruitment
It is volves the following steps
Selection is the process of carefully screening the candidates, so as to identify and choose the most suitable person for the job.
Selection Process
Steps involved in selection process are as follows:
Step I Preliminary Screening: A preliminary interview is conducted to judge the personality and eliminate unsuitable candidates.
Step II Application Blank: A blank application form is given to the candidate to fill all personal and professional details. The application blank provides a detailed written record of the candidate.
Step III Selection Tests: Candidates are required to take up tests which measures the Individual’s job related proficiency and skills. Various selection tests are trade test, intelligence test, interest test, etc.
Step IV Employment Interview: It involves a face-to-face, oral interview with the candidate. Apart from checking accuracy of details provided in application blank, it aims to gauze personality, quickness of response and person’s suitability for the job.
Step V Reference and Background Checks: It is done to gain additional information and verifying the candidate’s credentials.
Step VI Medical examination: Before the job offer is given, the candidate, in most cases, is required to undergo a medical fitness test.
Step VII Final selection: After clearing all hurdles, the candidate selected, is given a job offer.
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Types of Selection Tests
· Personality Test: It measures such personality traits as, adjustment, energy, sociability, independence and need for achievement: One of-the most famous personality test is Myers-Briggs personality test.
· Trade test/Skill Test: It measures performance of actual job tasks. The testing may be done by working on simulated work tasks or on an actual machine.
· Intelligence Test: It is a psychological test used to measure intelligence quotient of an individual. It is an indicator of a person’s learning ability.
· Aptitude Test: It measures the individual’s potential for learning new skills.
· Interest Test: Interest tests are used to know the pattern of interest or involvement of a person in other activities. |
Joining a job, marks the beginning of socialisation of the employee at the workplace. The employee is introduced to the superiors, subordinates and colleagues and is also taken around the workplace.
This process of familiarising the selected employee to the other employees and to the rules and regulations of the workplace is called orientation/induction.
Every enterprise has some special jobs that need certain specialised skills. The staff appointed has to be trained and their existing abilities have to be developed further to accomplish organisational objectives. Organisations have either in-house training centres or have forged alliances with the training and educational institutes to ensure continuing learning for their employees.
Training Methods
They can be characterised into two broad groups:
(i) On-the-Job Training Methods
These refer to the methods that are applied to the workplace, where the employee is actually working.
Major on-the-job training methods are:
(a) Apprenticeship Programme: Under this programme, the trainee (apprentice) works under the direct supervision of experts, who help and guide him in learning the job. It is generally applied in skilled trades, such as plumbers, electricians, etc.
(b) Internship Training: Vocational and professional institutes enter into arrangement with big companies, wherein their students are sent to gain practical work experience.
(c) Coaching: In coaching method, a superior plays a role of a coach, guide and an instructor. He plays part in developing and monitoring managerial qualities of the subordinates.
(d) Job Rotation: It refers to the training, in which the employee is shifted from one department to another or from one job position to another.
(e) Induction Training: Under this, a newly appointed employee is acquainted to the organisation. This means acquainting him to his superiors, subordinates, to the workplace, to the organisational policies, procedures, etc. The purpose is to accomodate the new employee to the new environment.
(ii) Off-the-Job Training Methods
These are the training methods which are conducted away from the workplace.
Some of them are as follows:
(a) Classroom Lectures/Conferences: Lectures, conferences and seminars are conducted to convey specific informations, rules, procedures or methods.
(b) Films: Films, being an audio-video medium, explicitly demonstrate skills which are not easily presented by other techniques.
(c) Case Studies: Case studies refer to a method in which a real life problem is given to the trainees and they are required to find an optimum solution after studying it.
(d) Computer Modelling: Computer is programmed to show some of the realities of the job. It allows learning without the risk of higher cost, e.g. training of pilots.
(e) Vestibule Training: Under this method, training is given in a classroom, where actual work environment is created. Employees are trained on a dummy model. It is helpful when employees are required to use sophisticated machinery.
(f) Programmed Instruction: Under this method, information is broken into meaningful units and these units are arranged in a proper way to form a logical and sequential learning package.
Difference between training and development
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Basis |
Training |
Development |
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Meaning |
Training is the process of increasing knowledge and skills in a particular task. |
Development is a process of learning and growth. |
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Use/Dept of Knowledge |
It is enable an employee to do the job better. |
It is to enable the overall growth of an employee. |
|
Duration |
It is a short-term process and the duration is fixed. |
It is an ongoing process and it includes training. |
|
Scope |
Narrow |
Broad |
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Appraisal Techniques/Methods
· Critical Incident Method: This approach is focused on certain critical behaviours of employee based incidents. Supervisors, as and when they occur, record such incidents.
· Rating Scales: Rating scales consist of several numerical scales representing job related performance criterions such as dependability, initiative, output, etc. Each scale ranges from excellent to poor on which employees are rated.
· Behaviourally Anchored Rating Scales (BARS): Statement of effective and ineffective behaviours determine the points.
· Forced Ranking: (Forced distribution) method Here, employees are clustered around a high point on a rating scale. Raters are compelled to distribute the employees on all points of scale.
· Confidential Reports: Mostly used by government departments. Here, the report is given in the form of ACR (Annual Confidentiality Report) and may record ratings with respect to attendance, teamwork leadership, initiative, technical ability, etc.
· Management by Objective Method: It is a method in which managers or employers set a list of objectives and make assessments on their performance on a regular basis and finally make rewards based on results achieved.
· 360 Degree Appraisal: The style of 360 degree performance appraisal is a method that employees will give confidential and anonymous assessments on their colleagues.
· Essay Method: In this method, the rater writes down the employee’s description in detail within a number of broad categories like, overall impression of performance, promotability of employee, strengths and weaknesses, etc. |
Performance appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards.
It is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follow
Objectives of Performance Appraisal
Performance appraisal can be done with following objectives in mind
Promotions are an integral part of people’s career. They refer to being placed in positions of increased responsibility and better financial prospects.
It involves developing a system of fair and equitable remuneration of personnel which commensurate with their contribution to the objectives of the organisation.
Compensation may refer to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions and bonuses and indirect payments like employer paid insurance and vacations.
Components of Compensation
The components of a compensation include
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