1. HUMAN RESOURCE MANAGEMENT

2. Contents HRM: Concept & Its Definition Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM-HRD Relationship
HRD Definition
HRD Function
HRD Jobs and Roles
HRM vs. HRD
Challenges before HRM 1

3. Human Resources… Are an organisation’s greatest assets
All other resources get connected through employees
To make them deliver they need to be –
Properly selected
Properly trained
Properly motivated 2

4. Definitions of HRM
Byers & Rue: “HRM is the function facilitating the most effective use of people to achieve both organisational and individual goals”
Michael Jucious: “HRM is that field of management which deals with planning, organising & controlling the functions of procuring, developing, maintaining and utilising a labour force such that organisational & individual goals are fulfilled” 3

5. HRM is
Process of acquiring, training, appraising and compensating employees such that they are motivated to achieve both the organisational and individual goals 4

6. Importance of HRM
Importance of human resources can be discussed at four levels:
Corporate
Professional
Social
National

7. Corporate HRM can help an enterprise in the following ways:
Attracting talent through effective human resource planning
Developing necessary skills & attitude with training
Securing cooperation through motivation
Retaining talent through the right policies

8. Professional
HRM helps improve quality of work life and contributes to growth in the following ways:
Opportunities for personal development
Motivating work environment
Proper allocation of work
Healthy relationships between individuals & groups

9. Social Society benefits from good HRM in many ways:
Good employment opportunities
Development of human capital
Generation of income & consumption
Better lifestyles

10. National
Drivers of development of a country
Deliver economic growth

11. Primary Functions of HRM
The process of HRM consists of 4 basic functions:
Acquisition of human resources
Development of human resources
Motivation of human resources
Maintenance of human resources

12. Acquisition Function
Process of identifying and employing people possessing required level of skills
Job Analysis
Human Resource Planning
Recruitment
Selection

13. Development Function
Process of improving, moulding and changing the skills, knowledge and ability of an employee
Employee Training
Management Development
Career Development

14. Motivation Function
Process of integrating people into a work situation in a way that it encourages them to perform / deliver to the best of their ability
Understanding needs
Designing motivators
Monitoring

15. Maintenance Function
Process of providing employees the working conditions that help maintain their motivation and commitment to the organisation
Satisfaction Levels
Retention

16. Secondary HRM Functions
Organization and job design
Performance management/ performance appraisal systems
Research and information systems

17. Human Resource Management Process
External Environment
Organization
HR planning
Recruitment
Selection
Organizational and
work design
Training and
development
Performance review
Compensation
Labour relations
These are the key HR processes in an organization. You will note that these processes do not function in isolation: HR management functions within the culture of the organization .
And of course, the organization is impacted by its environment. By paying careful attention to these facts, an organization can recruit competent, high-performing employees who are capable of sustaining their performance over the long term. You will also see that many factors introduced in Chapter 1 (for example, globalization, technology, and demographics) directly affect all management practices, but their effect is probably greatest in the management of human resources. This is because that whatever happens to an organization ultimately influences what happens to its employees.

18. Human Resource Planning
Assessing Current
Human Resources
Assessing Future
Human Resource
Needs
Since it is important to have the right people in the right jobs at the right time, human resource planning is the process to achieve that. What the organization will do is make an assessment of the current capabilities of its employees, determine what it will need in the future, and design a program to meet those needs.
Depending on the organization’s objectives and strategies, demand for human resources is contingent upon demand for the organization’s products or services and on the levels of productivity. After estimating total revenue, management can estimate the number and kinds of human resources needed to obtain those revenues.
After it has assessed current capabilities and future needs, management can estimate future human resources shortages and over-staffing. Then, it can develop a program to match these estimates with forecasts of future labour supply.
Developing a
Program to Meet
Needs 6

19. Recruitment
Process of locating, identifying, and attracting capable candidates
Once managers know their staffing needs, they can begin to look for capable people to fill those needs.
The process to do this is called recruitment. It is a process that locates, identifies, and attracts capable candidates for the work.
For many organizations, this has become a critical activity. As the business demands change, so do the skills required. And there are some skill sets that are in high demand which means organizations have to have a good plan to locate the people with the unique skills. 7

20. Recruitment Sources School Placement Internal Searches Employee
Referrals
Recruitment
Sources
Employee
Leasing
Temp
Services
But where do companies go to recruit employees? Many companies are finding new employees through the Internet. Organizations that are looking for people with a high-level of technological skills may focus their recruitment efforts by using the Internet. The web sites of organizations frequently have a link for enabling the browser to submit a resume.
The source that is used should reflect the labour market, the type or level of position, and the size of the organization.
Are certain recruiting sources better than others? Recent studies have demonstrated that employee referrals generally produce the best candidates. This is because current employees screen applicants before referring them. Second, current employees believe that their reputations with the firm will be reflected in the candidates that they recommend; so, they refer only those who they believe will not make them look bad. Employee referrals, however, may not generate the diversity and mix of employees that is desirable.
Employment
Agencies
Advertisements 8

21. Selection
Purpose is to hire the person(s) best able to meet the needs of the organization
After the completion of the recruitment process, the manager needs to decide who to hire. Selection is essentially both a prediction exercise and a decision-making exercise.
In the prediction exercise, the manager is predicting which applicant will be successful on the job is hired.
The manager is also undertaking a decision-making exercise--choosing among choices.
It is important to always keep in mind that the manager is selecting the person who can best meet the needs of the organization. 10

22. Orientation Process to introduce new employees to organization
Familiarize new employee to job and work unit
Help employee to understand values, beliefs, and acceptable behaviours
Familiarization to Organization and its Values
Improved Success On the Job
Minimizes Turnover
Besides having the requisite knowledge, skills, and abilities to perform on the job, new hires must be socialized to the organization’s culture (orientation) and trained to do the job (training). Orientation is a process whose major objectives are to reduce the anxiety level that all new employees feel; to familiarize them with the job, the work unit, and the organization; and to embed organizational values, beliefs, and accepted behaviours.
Successful orientation maximizes new hire on-the-job success and minimizes turnover. 17

23. Training and Development
Learning experience that seeks relatively permanent change
Involves changing skills, knowledge, attitudes or behaviours
Training tends to be done for current job
Develop here means acquiring skills for future work
Training and development is important to ensure that people continue to learn skills, etc. to help the company be successful. Employee training is a learning experience that seeks a relatively permanent change in employees such that their ability to perform at their current job improves. This may mean changing what employees know, how they work, or their attitudes toward their jobs, co-workers, managers, and the organization.
Management is responsible for deciding when employees are in need of training and development and what form it should take.

24. Employee Training What deficiencies, if any, does job holder have in
terms of skills, knowledge,
abilities, and behaviours?
What are
the strategic
goals of the
organization?
Is there a
need for
training?
However, before any training takes place, and organization should determine is training is the appropriate intervention.
Managers can be alerted to training needs by numerous signals: for instance, productivity related signals like decreases in output and quality or increases in accidents; and, future elements like jobs that have been redesigned or technological breakthroughs.
Most training takes place on the job. Such training is convenient and cost effective. But, on-the-job training can disrupt the workplace, and some skills are too complex to learn on the job. In such cases, training should take place outside of the work setting.
What tasks must
be completed
to achieve
goals?
What behaviours are
necessary? 18

25. Performance Management
Integration of management practices that includes a formal review of employee performance
How often should this take place?
Includes establishing performance standards and reviewing the performance
Means to ensure organizational goals are being met
It is important for managers to help their employees achieve the results expected. This is done through managing the performance of the employees the manager is responsible for. In managing performance, the manager identifies and communicates the expected performance standards and then evaluates or measures the performance against the standard.
There are a variety of ways to assess a person’s performance which we will review next. 20

26. Performance Review Methods
Written
Essay
Critical
Incidents
Graphic
Rating Scales
BARS
Multiperson
There are several ways in which managers can evaluate or measure the performance of their employees.
Written essays that describe an employee’s performance and suggestions for improvement require no complex forms or extensive training. But a good or bad appraisal may depend as much on the writing skill of a manager as on the actual performance of an employee.
With the critical incidents method, the appraiser writes down what an employee did that was especially productive or counterproductive. The key is to cite specific and key behaviours.
With graphic rating scales, performance factors are listed such as quantity and quality of work, depth of knowledge, or initiative. The appraiser then rates each factor on an incremental scale. This method cannot provide the depth of information of essays or critical incidents, but it is less time consuming to develop and administer, and yields results that can be quantified.
Behaviorally anchored rating scales BARS combine the critical incidents and graphics rating scale approaches. The appraiser rates employees on items along a continuum. The points along the scale are examples of actual on-the-job behaviour rather than general descriptions or traits.
Multiperson comparisons are relative measuring devices. Group order ranking requires the rater to place employees into a particular classification, such as the top one-fifth. Individual ranking orders employees from best to worst. Paired comparisons rank each employee with all other employees and rates each as either the weaker or superior member of the pair.
MBO, which was discussed in Chapter 5, assesses employees on how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their jobs. Because MBO emphasizes ends rather than means, this method allows managers to choose the best path for achieving their goals.
A 360-degreereview seeks feedback for the person being rated from a variety of sources: such as peers, supervisors, and customers. Research shows that 360-degree appraisals offer more accurate feedback, empower employees, reduce subjective factors in evaluation, and develop leadership in an organization.
MBO
360-Degree
Review 21

27. Essay Evaluation method
Critical incident method
The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period
Essay Evaluation method
This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative technique This method usually use with the graphic rating scale method.
Management By Objectives (MBO) method
MBO is a process in which managers / employer set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)

28. 360 degree performance appraisal
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.
Graphic rating scales
The Rating Scale is a form on which the manager simply checks off the employee’s level of performance. This is the oldest and most widely method used for performance appraisal.
Behavioral Observation Scales (BARS ?)
Behavioral Observation Scales is frequency rating of critical incidents that worker has performed

29. Compensation Management
Process of determining cost-effective pay structure
Designed to attract and retain
Provide an incentive to work hard
Structured to ensure that pay levels are perceived as fair
How does management decide who will get paid $12.65 an hour and who will receive $325,000 per year? The answer lies in compensation administration: the process of determining a cost-effective pay structure that attracts and retains competent employees, provides incentives for hard work, and ensures that pay levels will be perceived as fair.
The primary determination of pay is the kind of job an employee performs: that is, the higher the skills, knowledge, and abilities—and the greater the authority and responsibility—the higher the pay. Other factors which influence employee compensation are the nature of the business, the environment surrounding the job, geographic location, and employee performance levels and seniority. Regardless of these factors, there is one other most critical factor: management’s compensation philosophy. Some organizations don’t pay employees any more than they have to while other organizations want to pay people above are salary levels. 23

30. Factors That Influence Compensation
Employee’s
tenure and
performance
Company
profitability
Kind of job
performed
Size of
company
Level of
Compensation
and
Benefits
Kind of
business
Geographical
location
Management
philosophy
Labour- or
capital-intensive
Unionization
There are a number of factors that can influenced compensation levels. This slide (Exhibit 9-7) displays the various factors. For example, private-sector jobs typically provide higher rates of pay than comparable positions in public and not-for-profit jobs. Likewise, employees who have been with an organization for a long time may have had a salary increase each year.
Because skill levels tend to affect work efficiency and effectiveness, many organizations have implemented skill-based or competency-based pay systems. These types of systems reward employees for the job skills and competencies they can demonstrate. These systems also tend to mesh nicely with the changing nature of work and today’s work environment.
But the most critical factor is management’s compensation philosophy.
Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and Robin Stuart-Kotze, page 274. Copyright © Reprinted by permission of Pearson Education Canada Inc.
FOM 9.29
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc.

31. Employee Benefits Direct financial rewards Indirect financial rewards
Designed to enrich employees’ lives
In addition to the salary or wage an employee receives, the employee will usually have some employee benefits. As indirect financial rewards intended to enrich employee’s lives, today’s employee benefits programs seek to provide something that each employee can value. Some of the benefits are required by legislation such as Canada Pension Plan while others are voluntarily provided such as life insurance coverage. The scope of these benefits varies considerably. 24

32. Labour Relations Relationship between union and employer
Union functions as the voice of employees
Collective bargaining is a process to negotiate terms and conditions of employment
Bargaining produces a written document called a collective agreement
Labour relations refers to the relationship that exists between an organization and a union. It has evolved over time and is governed by legislation.
The role of the union is to be the voice of employees, particularly during collective bargaining. Collective bargaining produces a collective agreement which is a legal document outlining the terms and conditions of employment.
If an employee or union feels that the company is violating the collective agreement, a grievance may be initiated.

33. Organisation of HRM Department

34. Role of HR Manager Job Design / Job Analysis Human Resource Planning
Recruitment & Selection
Training & Development
Performance Appraisal
Compensation / Benefits
Personnel Information Systems
Employee Motivation / Assistance

35. Relationship Between HRM and HRD
Human resource management (HRM) encompasses many functions
Human resource development (HRD) is just one of the functions within HRM

36. Definition of HRD
A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.

37. HRD is too important to be left to amateurs
HRD should be a revenue producer, not a revenue user
HRD should be a central part of company
You need to be able to talk MONEY

38. HRD Functions Training and development (T&D)
Organizational development
Career development

39. Organizational Development
The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts
Focuses on both macro- and micro-levels
HRD plays the role of a change agent

40. Career Development
Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement.
Career planning
Career management

41. Critical HRD Issues Strategic management and HRD
The supervisor’s role in HRD
Organizational structure of HRD

42. Strategic Management & HRD
Strategic management aims to ensure organizational effectiveness for the foreseeable future – e.g., maximizing profits in the next 3 to 5 years
HRD aims to get managers and workers ready for new products, procedures, and materials

43. Challenges before HRM Globalisation (More productivity)
Technological Trends (New skill set)
Increasing Service Sector (Customer Interface)
Working Trends (9 to 9!)
Demographic Trends (Young India!)