What isWhat is HUMAN RESOURCE HUMAN RESOURCE
MANAGEMENT MANAGEMENT
The The management functionmanagement function that deals with that deals with
recruitment, placement, training, development of recruitment, placement, training, development of
organization members.organization members.
HRMHRM is a is a processprocess for staffing the organization for staffing the organization
and sustaining high employee performance.and sustaining high employee performance.
HRMHRM can be defined as all the can be defined as all the practicespractices, ,
systemssystems and and proceduresprocedures implemented to implemented to
attract, acquire, develop and manage human attract, acquire, develop and manage human
resources to achieve the goals of an organization.resources to achieve the goals of an organization.
Simply it is managing the employment Simply it is managing the employment
relationshiprelationship
Importance ofImportance of
“Human Resource Management”“Human Resource Management”
Staff is the most Staff is the most
important resource of important resource of
an organization.an organization.
Human resource is the Human resource is the
key ingredient to key ingredient to
success.success.
““Human resource” Human resource”
creates organizational creates organizational
accomplishments and accomplishments and
innovations.innovations.
Components of aComponents of a HRM HRM
SystemSystem
Recruitment/Recruitment/
DecruitmentDecruitment
Training/Training/
DevelopmentDevelopment
Compensation &Compensation &
BenefitsBenefits
PerformancePerformance
ManagementManagement
Human Resource Human Resource
PlanningPlanning
OrientationOrientationSelectionSelection
Career Career
DevelopmentDevelopment
HRM
Human ResourceHuman Resource
PlanningPlanning
HRM HRM “ “Planning”Planning”
Human resource planningHuman resource planning is designed to is designed to
ensure the future personnel needs will be ensure the future personnel needs will be
constantly and appropriately met. constantly and appropriately met.
The The processprocess by which managers ensure that by which managers ensure that
they have the right number and kinds of people they have the right number and kinds of people
in the right places, and at the right times, who in the right places, and at the right times, who
are capable of effectively and efficiently are capable of effectively and efficiently
performing assigned tasks.performing assigned tasks.
Planning..Planning..
It is accomplished through analysis ofIt is accomplished through analysis of
Internal factorsInternal factors : Current and expected : Current and expected
skill needs, vacancies and departmental skill needs, vacancies and departmental
expansions and reductions.expansions and reductions.
Environmental factorsEnvironmental factors: Labor markets, : Labor markets,
use of computers to build and maintain use of computers to build and maintain
information about employeesinformation about employees
HHuman uman RResource esource PPlanning lanning
(continued)(continued)
Human resource planning must be integrated within the Human resource planning must be integrated within the
organizations organizations strategic plansstrategic plans
Senior managementSenior management must emphasize the importance of must emphasize the importance of
human resource planninghuman resource planning
Human resource planning must be based on the most Human resource planning must be based on the most accurate accurate
informationinformation available. available.
A clear plan must be developed with associated A clear plan must be developed with associated time-spanstime-spans
and and scope of activity.scope of activity.
PPlanning ………. lanning ………. (continued)(continued)
Current Assessment:Current Assessment:
Job analysisJob analysis
Defines jobs and the behaviors to perform them .Defines jobs and the behaviors to perform them .
Job descriptionJob description
A written statement of what a job holder does, how its done and why A written statement of what a job holder does, how its done and why
it is done.it is done.
Job specificationJob specification
A statement of the minimum qualifications that a person must possess A statement of the minimum qualifications that a person must possess
to perform a given job successfully.to perform a given job successfully.
Meeting Future Human Resource Needs:Meeting Future Human Resource Needs:
RRecruitmentecruitment
The development of a pool of job candidates in The development of a pool of job candidates in
accordance with a accordance with a human resource planhuman resource plan
It is It is the processthe process of locating, identifying, and of locating, identifying, and
attracting capable applicantsattracting capable applicants..
DDecruitmentecruitment
Techniques for Techniques for reducing reducing the the labor supplylabor supply within an within an
organization. e.g. firing ,layoffs, transfers, retirements.organization. e.g. firing ,layoffs, transfers, retirements.
Recruitment….Recruitment….(continued)(continued)
Job descriptionJob description : :
A written description of a non-management job, covering title, A written description of a non-management job, covering title,
duties and responsibilities and including its location on the duties and responsibilities and including its location on the
organization chart.organization chart.
Position description:Position description:
A written description of a management position.A written description of a management position.
Hiring specification:Hiring specification:
It defines the education, experience and skills an individual It defines the education, experience and skills an individual
must have in order to perform effectively in the position must have in order to perform effectively in the position
he/she is applyinghe/she is applying
Sources Of recruiting Potential Sources Of recruiting Potential
Job CandidatesJob Candidates
Labor market:Labor market:
Easy to recruit in large labor marketsEasy to recruit in large labor markets..
The type or level of the position:The type or level of the position:
The more specialized the position the more recruitment The more specialized the position the more recruitment
efforts .efforts .
The size of the organization:The size of the organization:
The larger the organization the easier it is to recruit.The larger the organization the easier it is to recruit.
Process of RecruitmentProcess of Recruitment
StepsSteps in the Recruitment process: in the Recruitment process:
Internal SearchInternal Search
Advertisement of a job vacancy.Advertisement of a job vacancy.
Web based advertising.Web based advertising.
Preliminary contact with potential job candidates.Preliminary contact with potential job candidates.
Initial screening to create a pool of qualified applicants.Initial screening to create a pool of qualified applicants.
MethodsMethods of Recruitment process: of Recruitment process:
External RecruitmentExternal Recruitment
Internal RecruitmentInternal Recruitment
RRecruitment ecruitment PPoliciesolicies
Source :Source :
Current ABC c EmployeesCurrent ABC c Employees
Internal and external AdvertisementsInternal and external Advertisements
Data BankData Bank
Employment Agencies and consultantsEmployment Agencies and consultants
SelectionSelection
SelectionSelection
The process of assessing candidates and The process of assessing candidates and
appointing a post holder appointing a post holder to ensure that the to ensure that the
most appropriate candidates are hired.most appropriate candidates are hired.
The scheme used for optimally staffing the The scheme used for optimally staffing the
organization organization
SelectionSelection
Validity and ReliabilityValidity and Reliability
ValidityValidity ReliabilityReliability
The proven relationship The proven relationship
that exists between a that exists between a
selection device and some selection device and some
relevant job criterionrelevant job criterion
The ability of a selection The ability of a selection
device to measure the device to measure the
same thing consistentlysame thing consistently
Selection CriteriaSelection Criteria
1. 1. Completed Job Applications:Completed Job Applications:
This step indicates the employee desire This step indicates the employee desire
position and this application provides position and this application provides
information useful for interviews.information useful for interviews.
2. 2. Interviews:Interviews:
It is most common method in which It is most common method in which
selection committee evaluates a candidate’s selection committee evaluates a candidate’s
abilities by following methods:abilities by following methods:
Selection Criteria Selection Criteria (continued)(continued)
Types Of Interviews:Types Of Interviews:
Testing:Testing:
To measure the job and learning skills of the To measure the job and learning skills of the
candidate.candidate.
Initial Screening:Initial Screening:
A type of interview in which questions are A type of interview in which questions are
asked about experience of the candidate and asked about experience of the candidate and
his salary expectationshis salary expectations
PPanel and anel and SSerial interviews.erial interviews.
To evaluate a candidate for the job.To evaluate a candidate for the job.
Steps In Selection Steps In Selection
(continued)(continued)
•
In Depth Selection Interviews:In Depth Selection Interviews:
These interviews are conducted by the manager to whom These interviews are conducted by the manager to whom
the applicant will report.the applicant will report.
The objective of this step is to find out more about The objective of this step is to find out more about
applicant as an individualapplicant as an individual..
3. 3. Background Checks:Background Checks:
Selection committee confirm the truthfulness of Selection committee confirm the truthfulness of
application application RésuméRésumé or of the or of the application form.application form.
The previous supervisor of the applicant is called to The previous supervisor of the applicant is called to
confirm this information and to get his confirm this information and to get his career highlights.career highlights.
Steps In Selection Steps In Selection
(continued)(continued)
4.Physical Examination:4.Physical Examination:
It is conducted to ensure the physical fitness of applicant.It is conducted to ensure the physical fitness of applicant.
REALISTIC JOB PREVIEW:REALISTIC JOB PREVIEW:
A preview of the job that provides both positive andA preview of the job that provides both positive and
negative information about the job and the company.negative information about the job and the company.
Steps In Selection Steps In Selection
(continued)(continued)
Welcome
Position / title
Authority, duties and responsibilities
Starting date, normal work hours
Starting salary
Benefit package
Other - probationary period, travel, etc.
5.Job Offer:5.Job Offer:
OOrientationrientation
OOrientationrientation
Introduction of a new employee to his/her job and Introduction of a new employee to his/her job and
the organization.the organization.
A program designed to help employees fit A program designed to help employees fit
smoothly into an organization; also called smoothly into an organization; also called
socialization.socialization.
Orientation or socialization is designed to Orientation or socialization is designed to
provide new employees with the information provide new employees with the information
needed to function comfortably and effectively in needed to function comfortably and effectively in
the organization.the organization.
OOrientation rientation (continued)(continued)
It conveys three types of information:It conveys three types of information:
2.2.General information about daily work General information about daily work
routine.routine.
3.3.Review of organization’s history Review of organization’s history
,purpose operations, and products or ,purpose operations, and products or
services and contribution of services and contribution of
employee’s job to the organization’s employee’s job to the organization’s
needs.needs.
4.4.Presentation of organization’s Presentation of organization’s
policies, work rules and employee policies, work rules and employee
benefit.benefit.
TypesTypes of of OOrientationrientation
Two types of orientation:Two types of orientation:
2.2.Work unit orientation:Work unit orientation:
Familiarizes employee with goals of work unit, Familiarizes employee with goals of work unit,
contribution to the unit’s goals, introduction to co-contribution to the unit’s goals, introduction to co-
workers.workers.
4.4.Organization orientation:Organization orientation:
Informs employee about the organization’s Informs employee about the organization’s
objectives, history ,philosophy procedures and objectives, history ,philosophy procedures and
rules, human resource policies and benefits. Tour of rules, human resource policies and benefits. Tour of
organization’s work facilities.organization’s work facilities.
Training Training
Training ProgramsTraining Programs
A A processprocess designed to designed to maintainmaintain or or improveimprove
current job current job performance.performance.
Most training is directed at upgrading and Most training is directed at upgrading and
improvingimproving an an employee’s abilities or skills.employee’s abilities or skills.
Developmental ProgramsDevelopmental Programs
A A processprocess designed to designed to develop skillsdevelop skills necessary for necessary for
future work activities.future work activities.
DifferenceDifference between between TrainingTraining and and
DevelopmentalDevelopmental Programs Programs
Training is for the current improvement in the Training is for the current improvement in the
job while developmental program is for job while developmental program is for
improving the skill which will be used in the improving the skill which will be used in the
futurefuture..
Both managers and non-managers receive Both managers and non-managers receive
help from training and developmental program help from training and developmental program
but mostly non-managers are concerned with but mostly non-managers are concerned with
training while the managers are concerned training while the managers are concerned
with developmental programs.with developmental programs.
WhyWhy Training and Training and
Developmental Program?Developmental Program?
To improve three types of To improve three types of
skillsskills
3)3)Technical skillsTechnical skills
4)4)Interpersonal skillsInterpersonal skills
5)5)Problem solving skillsProblem solving skills
Training MethodsTraining Methods
1)1)Most training takes place on the job because Most training takes place on the job because
this approach is simple and inexpensive.this approach is simple and inexpensive.
3)3)Some skill training is too complex to learn Some skill training is too complex to learn
on the job. in such cases it should take place on the job. in such cases it should take place
outside the work setting.outside the work setting.
Employee Performance Employee Performance
ManagementManagement
Performance management is a Performance management is a processprocess used used
within organization to establish and evaluate within organization to establish and evaluate
an individual’s job performance to achieve an individual’s job performance to achieve
goals and objectivesgoals and objectives..
Performance Performance ManagementManagement
Performance AppraisalPerformance Appraisal
A process of systematically evaluating A process of systematically evaluating
performance and providing feedback upon performance and providing feedback upon
which performance adjustments can be made.which performance adjustments can be made.
Performance appraisal should be based on job Performance appraisal should be based on job
analysis, job description, and job specifications.analysis, job description, and job specifications.
TypesTypes of of PPerformance erformance AAppraisalppraisal
Informal Performance Appraisal:Informal Performance Appraisal:
“ “The process of continually feeding back to The process of continually feeding back to
subordinates information regarding their work subordinates information regarding their work
performance”performance”
Formal Performance Appraisal:Formal Performance Appraisal:
“ “A formalized appraisal process for rating work A formalized appraisal process for rating work
performance, identifying deserving raises or performance, identifying deserving raises or
promotions, and identifying those in need of further promotions, and identifying those in need of further
training”.training”.
Compensation And Compensation And
BenefitsBenefits
Compensation and benefitsCompensation and benefits
Benefits of a Fair, Effective, and Appropriate Benefits of a Fair, Effective, and Appropriate
Compensation SystemCompensation System
Helps attract and retain high-performance Helps attract and retain high-performance
employeesemployees
Impacts on the strategic performance of the firmImpacts on the strategic performance of the firm
Types of CompensationTypes of Compensation
Base wage or salaryBase wage or salary
Wage and salary add-onsWage and salary add-ons
Incentive paymentsIncentive payments
Skill-based paySkill-based pay
Factors That Influence Compensation and BenefitsFactors That Influence Compensation and Benefits
L e v e l o f
C o m p e n s a t io n
a n d B e n e f it s
E m p lo y e e ’ s T e n u r e
a n d P e r f o r m a n c e
S iz e o f
C o m p a n y
K in d o f
J o b P e r f o r m e d
C o m p a n y
P r o f it a b ilit y
K in d o f
B u s in e s s
G e o g r a p h ic a l
L o c a t io n
U n io n iz a t io n
M a n a g e m e n t
P h ilo s o p h y
L a b o u r - o r
C a p it a l-In t e n s iv e
H o w lo n g h a s e m p l o y e e
b e e n w i t h c o m p a n y a n d
h o w h a s h e o r s h e p e r f o r m e d ?
D o e s j o b r e q u ir e
h i g h l e v e l s o f s k il ls ?
W h a t i n d u s t r y i s j o b i n ?
I s b u s i n e s s u n io n iz e d ?
I s b u s i n e s s l a b o u r - o r
c a p i t a l-i n t e n s i v e ?
H o w la r g e i s t h e
c o m p a n y ?
H o w p r o f i t a b le is t h e
c o m p a n y ?
W h e r e i s o r g a n iz a t io n
l o c a t e d ?
W h a t i s m a n a g e m e n t ’ s
p h i l o s o p h y t o w a r d p a y ?