IMPORTANCE OF HUMAN ASSET Humans are even more valuable than physical assets like machinery etc. They help in organizing and controlling the business activities of a company. Each money spend on development of human workers results in great amount of profit
HUMAN RESOURCE DEPARTMENT ( HRD) Human Resource decision involves staffing of qualified and deserving candidates. Staffing starts from hiring and ends after firing an employee It is the sole objective of HR department to manage the performance of the workers in the organization
HUMAN RESOURCE ACTIVITIES The following steps are performed by HR department: Determination of need Selection and Recruitment Orientation and Training Performance Appraisal Compensation Promotion Separation
Effective management first determines need for person before it makes decision to hire There are various approaches to determine the job, for e.g. job factor, inventory method, ranking method etc. In short, HR department stresses upon a candidates education, ability, skills, qualification and technical know how for hiring him.
Recruiting refers to inviting applications from prospective candidates. Once the applications have been received, they will be selected according to the type of job. Then candidates will be interviewed, tested, checked up and finally selected.
Orientation is the period of introducing candidates with the internal organization This can be through formal session, interviews and speeches. During orientation different subjects are covered including; Company’s major operation, rules and regulations, policies, rights and powers etc. Workers are trained through workshops, meetings, seminars and temporary promotions etc.
Performance Appraisal refers to measuring the performance of managers. Managers should be appraised by what they accomplish rather than how they spend their time in the office. Managers should know what their objectives are. Participation of employees is considered important to appraise them. The hard work and ability of workers are given more importance as compared to their sincerity and friendship with the seniors.
Reward is provided to workers for services they have performed. Wages and benefits are provided to workers to encourage them. Compensation includes salaries, bonuses, allowances and other benefits They basic desire of every worker is to earn satisfactory compensation to live a successful life.
Employees are promoted to a higher level or position This is done to encourage and appreciate the workers for their hard work and determination. They are provided with a higher status along with increase in salary. It increases the morale of the company employees.
This is the final step performed by the HR department. It includes dismissal, retirement, discharge and death which leads to ending up the performance in the organization. Employees may leave according to their own desire or they can be dismissed by the seniors Incase of death, the separation automatically takes place