HUMAN RESOURCE MANAGEMENT 4BBAA4

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1 S.PRIYANKA M.Com., M.Phil., Lecturer, PG & Research Department of Commerce, Arumugam Pillai Seethai Ammal College, Thiruppattur. HUMAN RESOURCE MANAGEMENT 4BBAA4

2 II YEAR - IV SEMESTER COURSE CODE: 4BBAA4 ALLIED COURSE IV - HUMAN RESOURCE MANAGEMENT Unit I: HRM: Definition and meaning Difference between Human Resource Management and personnel management HRM: Objectives Scope functions Future of HRM Human Resource planning: Definition, meaning Objectives Need Importance of HRP, HRP process. Unit II: Recruitment: Meaning sources Recruitment process factors influencing Selection: Meaning, procedure Types of tests Advantages and disadvantages Interview: Types placement and introduction Job analysis definition, objectives, uses, process, and techniques. Job description: Definition, contents and characteristics Job specification job design. Unit III: Job evaluation: Objectives methods of job evaluation Training and development: meaning, need, importance types of training. Executive development: meaning, objective and importance of executive development Methods of executive development.

3 Unit IV: Wage and Salary Administration: Objectives and principles of wages and salary administration Components of and methods of wage payment promotion, transfer, demotion and separation. Performance Appraisal: Meaning, methods of performance appraisal. Industrial Relations: meaning, objective and importance of IR Causes for poor industrial relations. Unit V: Workers participation in management concept need and forms of workers participation in management reasons for the failure of industrial democracy Collective Bargaining definition, features, essentials and role of collective bargaining Collective Bargaining in India. Grievance Handling meaning Why grievance handling? Essentials grievance handling procedure. Books Recommended Human Resource Management Shashi K. Gupta Human Resource Management C.B.Memoria Human Resource Management S.S. Khanka Personnel Management and Industrial Relations Tripathi and Reddy.

4 HUMAN RESOURCE MANAGEMENT UNIT: I Meaning of HRM: resource. HRM is a process of making the efficient and effective use of human Definition of HRM: Peter F.Drucker: According to peter F.Drucker, man of all the resources available to man can grow and develop. Ivancevich and Glueck: In the words of Ivancevich and Glueck, HRM is the function performed in organizations that facilitates the most effective use of people. Meaning of HRP: planning. HRP is the planning for human resources. It is also known as manpower Definition of HRP: HRP is a process of determining and assuming that the organization will have an adequate number of qualified persons.

5 Objectives of HRM Accomplishment of organizational goals: It facilitates the achievements of the organizational goals by providing competent and well motivated employees. Employment of skilled work force: Another objective of HRM is employing skilled and also work force in the organization. Motivated employees: Motivation facilitates effective teamwork by desirable working conditions and policy. Individual development: Employees should always be given a due importance in the organization. Personal research: HRM aims at conducting various research studies regarding personnel. Ensuring job satisfaction: HRM aims at increasing the employee s job satisfaction to the fullest. Sound and effective communication: Communication system adopted by the personnel department should be sound.

6 Scope of HRM: Organization of HRM department. Strategic human resource management. Employment of personnel. Development of human resources. Wage and salary administration. Maintenance of human resources department. Motivating the human resource. Maintaining industrial relations. Participative management. Features of HRM: HRM is connected with development of individuals at work. It deals with behavior, value and emotional and social aspects of employees. It is concerned with the development and maintenance of human resources. It manages people at all levels of the organizational hierareley. It deals with human being in the organization. Objectives of HRP: Ensure adequate supply of manpower. Ensure proper use of existing human resources in the organization. To estimate the future skill requirements of human resources. To forecast the labor turnover. To determine the surplus and take necessary measures. To make the best use of manpower.

7 To determine the optimum training level. Need for HRP: Despite growing unemployment,these has been shortage of human resources hence the need for HRP. HRP ensures smooth supply of workers without interruption. HRP that enables organization to cope with such changes. HRP is also needed in order to meet the needs of expansion and diversifications. Process of HRP: Step: 1 Analyzing the organizational plan. Analyzing the organizational plan is the first step in the process of HRP. The following includes. Financial plan. Production plan. Marketing plan. Sales plan. Expansion plan. Diversification plan. Step: 2 Defining the organization objectives.

8 Step: 3 Assessing the future HR requirements. Some of them as follow: Managerial estimation. Statistical method. Work-study method. Step: 3 Forecasting the current resources and availability of future resources. It can be discussed five heads. Current HR inventory. Assessing losses and addition in future. Analyzing the sources of supply. Plan for redevelopment. Estimation of future supply in case of deficit. Step: 5 Plan for recruitment & development. Step: 6 Revising the organizational plan. Step: 7 Retention plan.

9 Importance of HRP: HRP meets the organization need for right type of people. HRP makes optimum use of human resources on the one hand reduces labor cost on the other. It also provides plan for multiple gains to the employees by way of promotions. This may avoid resistance for changes. It corrective measures to improve the situation. HRP helps the organization create and develop training and succession planning for employees and managers. Function of HRM: I. Managerial function: Planning: Planning is an all pervasive and the most basic function of management. Organizing: Organizing is a process by which the structure and allocation of jobs are determined. Directing: Directing is the process of activating group effort to achieve the descried goals.

10 Controlling: It is the process of setting standards for performance. II. Operative functions: Procurement of people : Procurement of people is the first operative function of HRM. It remains Job Analysis. HR planning. Recruitment. Selection. Human resource development : Performance appraisal. Training. Management development. Career planning and development. Organization development. Compensation: It is the process whereby an equitable and fair remuneration. Job evaluation. Administration of wages. Incentives for work. Bonus.

11 Fringe benefits. Social security measures. Maintaining managing human relations: Human relations represent the interaction among people in work situation. Measuring the effectiveness of HRM: Study of organization health. Human resources accounting. Human resources audit. Human resources research.

12 UNIT II Definition of recruitment: S.Beach, Recruitment is the development and maintenance of adequate manpower resources. Meaning of recruitment: Recruitment is the most important function of personnel administration. It is the first process of employment. Recruitment process: Accordingly the recruitment process comprises the following steps: Recruitment planning: The first step involved in the recruitment process is planning. Planning involves drafting a job specification. Strategy development: The strategic consideration to be considered may include issues like whether to prepare the required strategic candidates. Searching: This step involves attracting job seekers to the organization. Screening: supply. The techniques used for screening candidates vary depending on the source of

13 Evaluation and control: The costs generally incurred in a recruitment process include: Salary of recruiters. Cost of time spent for job analysis. Administrative expenses. Factors affecting recruitment: The Various internal factors which affect the recruitment, Salary. Work environment. Fringe benefits. Culture of organizations. Career development. Company s reputation. External factors: External factors that influence the recruitment are, Supply of and demand for labour. Opportunities for employment. Social factors. Political and legal. Information system.

14 Source of recruitment: I. Internal sources Recommendations by the company s sales personnel: Many individuals are appointee on the recommendations of the company s own sales people. Recommendations of the company s executives: Recommendations of the sales manager. The managing directors and other company executives. Transfer: Transfer means changing the employee from one place to another place. II. External sources: Present employees: The present employees of the organization may be asked to recommend their friends and relatives. Advertisement: Advertisement is the most effective way to search capable persons from outside the organization. Employment exchanges: The employment exchanges run by the organization on government. Educational institutions: Many organizations conduct interviews within the campus of educational institution. Contractors: Contractors are approached for recruitment of unskilled and casual workers.

15 Direct contact: This method are mostly unskilled and semi- skilled persons. Labour unions: In many organizations the labor unions are asked to employment of people. Meaning of selections: Selection is the process of choosing from among the candidates from within the organization or from the outside. Procedure of selection: Receipt and scrutiny of application forms: Selection procedure starts only after the applications are received by a concern. Preliminary interview: The object of this interview is to check whether the applicant is physically and mentally fit for a job. Tests: Tests play an important role in the process of selection. Interview: It is a selection technique. It is an interaction between the interviewer and applicant.

16 Checking the references: The reference may be either a letter of recommendation or a statement about the qualifications and qualities. Medical examination: It is a part of selection process for all suitable applicants. Final selection: After the employee has passed all the above steps of selection successfully an appointment letter is given to him. Types of test: Achievement test: It is also called as performance test. The candidate s knowledge is measured through his answer. Intelligence test: The purpose of this test is to measure the level of intelligence of a candidate. Personality test: The test is conducted for measuring non- intellectual traits of a candidate. Aptitude test: This test is conducted for measuring the candidate s desire for particular job. Interest test: This test is designed to discover a person s area of interest.

17 Dexterity test: This test is conducted to find out the skills and abilities of a person. Interview: Interview is the widely used selection method. It is a face to face interaction between interviewee and interviewer. Types of interviews: Preliminary interviews: The interviews conducted to screen the applicants to decide detailed interview will be required are called preliminary interviews. Patterned interview: In this interview the pattern of the interview is decided in advance. Such interviews are called patterned interviews. Depth interview. It covers the life history of the applicant along with experience, attitude and hobbies. stress interview: Interviews are conducted for the jobs which are to be performing under stressful conditions. Placement: Placement means the placing of the selected candidate in a job with other workers.

18 Definition of job analysis: Edwin B.Flippo has defined, job analysis as the process of studying and collecting information relating to the operations. Uses of job analysis: HRP: Recruitment and selection. Training and development. Placement and orientation. Job evaluation Performance appraisal. Personnel information. Health and safety. Process of jib analysis: Organizational job analysis. Selection of representative jobs. Data collection. Job description. Job specification. Definition of job description: According to Bethel the job description is prepared by condensing the data to represent an accurate.

19 Job specifications: Job specifications stipulate the skills, operation, routines, responsibilities, types of efforts, working conditions and requirements. Job design: Job design involves specifying the contents of a job, the work methods used in its performance.

20 UNIT III JOB EVALUATION Definition: Kimball and Kimball, Job evaluation is an effort to determine the relative value of every job in a plant to determine. Objectives of Job Evaluation: Elimination of evaluation: Job evaluation techniques aim to eliminate such inequalities by assuring gain. Solving Wage: wage. Job evaluation techniques provide a relatively objective basis for revolving Facility for comparison: This provides the necessary data for comparison of wages and salaries for same categories. Standardization: It enables the business enterprises to maintain a high degree of standardization. Simplification of wage structure: Maximum and minimum rate ranges are also established.

21 Methods of Job evaluation: I. Non Quantitative Methods: a. Ranking or Job comparison: The jobs are ranked according to the whole Job rather than a number of factors. b. Grading or Job classification: It is also called classification method job grades established by committee for purpose. II. Quantitative Methods: a. Point Rating: Under this method, jobs are broke down based on identifiable factors. b. Factor comparison Method: This method is a combination of both ranking and point methods in the sense. Training: Definition: According to Edwin B Flippo, Training is the act of increasing the knowledge and skills of an employee for doing a particular job.

22 Need for Training: The Sub-optional performance of organization in Government. It very useful to know the ability and skills. It increases qualitative demand. Need for both individuals and organization. To enable employees to move from one job to another. To meet challenges by the global competition. Importance of Training: Better Performance: Training improves employee s ability and skills employee s performance both in quantity. Improved Quality: The best methods of performing jobs are standardized. Loss supervision: The trained worker is self-reliant. He knows the work and way to performing. Loss learning period: A well planned and systematically organized training programs. Personal Growth: Training improves ability of employee s knowledge and skills.

23 Favorable organizational climate: It reduced turnover of employees and improved stability of organization. Methods or types of Training: On the job training Method: It is also known as internal training. Orientation or induction training: It is training for new employees Apprentice training: Under this method, a worker is appointed as an apprentice. Job rotation: In Job rotation, a person is given jobs in various departments. Vestibule training: It is a training given in the training centre of the organization. Refresher training: By this training the workers learn new methods andskills. OFF THE JOB TRAINING METHODS: It is also known as external training. Special courses and lectures: These are knowledge based training methods.

24 Conferences: Conferences provide an occasion for formal interchange of views. Case study: It is widely used for business executives and management institutions. Role playing: This method is mostly used for developing interpersonal interactions. Management Games: The game is devised on the model of a business situation. Executive development: Definition: Flippo defined as, Executive development includes the process by which managers and executives and in their present jobs. Objectives of executive development: Improve the performance of managers Identify the persons in organization. Improve the thought processes and analytical abilities. Understand the problems of human relations and improving. To develop responsible leadership.

25 Importance of Executive Development: Training and development are the only ways of overcoming the executive outs. These skills are learned through training and development programs. Trained managers are vital to the economic development of the country. Labor management relations are becoming complex. Training and development are the only ways of overcoming the programs. Methods of executive development: I. On the job methods: Coaching Job rotation Understudy assignments Committee assignments II. Off the job methods: Lecture Case studies Group discussions Transactional analysis Role playing Management games Sensitivity training

26 UNIT IV WAGE AND SALARY ADMINISTRATION Objectives: i. Organizational objectives: Enable an organization to have the quantity and quality Retain the employees in organization Make the system cost-effective ii. Individual objectives: Ensures a fair compensation Enhances employee morale and motivation Provides compensation to employee iii. Collective objectives: Matching with market rates To control pay-rolls To motivate people to perform better To maintain a good public image

27 Principles of Wage and Salary Administration: External Equity: This principle acknowledges that factors external to organization. These factors are such as demand supply of labor. Internal equity: Organizations have various jobs which are relative in value term. The values in an organization. Individual worth: According to this principle, an individual should be paid as per her performance. I.e., equal pay for equal work Components of WSA: I. Determination of wages and salary: Wage enactments prevalent wage rates Influence of trade unions Corporate philosophy on wages Cost of living Ability to pay II. Wages/Salary structures: Salary progression Broad banding.

28 Methods of wage payment: i. Payment by time: This is the old age and most prevalent method of wage payment. The merits of payment by time rate for an employee ii. Payment by Results: Under this method, the wage of an employee is paid on the basis of number of items. This may following 2 ways Straight piece work Differential piece work system Promotion: Promotion means the advancement of an employee to a better job. Transfer: Transfer means the shifting of an employee from one job to another. Demotion: Demotion means transfer to a post resulting in lower status. Performance appraisal: Meaning: Performance appraisal is the systematic way of judging the relative worth of an employee.

29 Methods of Performance Appraisal: Traditional methods: a. Ranking Method: The employees are ranked from the highest to the lowest. b. Paired comparison: In this method each employee is compared with other employees on one on one basis. c. Grading Method: In this method, certain categories of worth are established in advance. d. Check list method: The basic purpose of check list method is to evaluation upon the rater. e. Essay method: It is the simplest one among PA available on employees. I. Modern methods: a. Management by objectives: MBO Program consists of four main steps: Goal setting, comparison, Performance standard and periodic review

30 b. Assessment centre: It is mainly used for evaluating executive or supervisory. c. Cost Accounting Method: This method evaluates an employee s performance from monetary benefits. Industrial Relations: Meaning: IR is concerned with the systems and procedures used by unions and employers. Objectives of IR: Establish and foster sound relationship between workers and management. Avoid industrial conflicts and strikes by developing parties Raise productivity in the organizations. Avoid unnecessary interference of the government. Socialize industrial activity by involving the government. Importance of IR Foster Industrial Peace: Both employees and managers discuss the matter and consult each other. Promote Industrial Democracy: It means the government mandated worker participation at various levels of the organization. Benefit to Workers:

31 It also provides a procedure to resolve workers, grievances relating to work. Benefit to Management: IR provides managers with a system to handle with employee in the organization. Improve productivity: Experience indicates that goods industrial relations serve as the key for increased production. Causes for Poor IR: Nature of Work: It is the work only that gives birth to relations between the employer and employee Dissatisfactory compensation and work conditions: The compensation as low and working conditions are poor viewed as employees. Dysfunctional Trade Union: This breeds discontent among the employees and their IR relationship with management. Non conductive organizational climate: It creates mistrust between employees and organization mistrust boils down to poor IR.

32 UNIT V WORKERS PARTICIPATION IN MANAGEMENT: Definition: According to Keith Davis, WPM refers to the mental and emotional involvement of a person in a group situation. Forms of WPM Suggestion schemes: Under this scheme, a suggestion schemes is constituted consisting of equal number of members from management. Works Committee: The main purpose of the committee for maintaining cordial and harmonious relations between employees and management. Joint Management Councils: JMC was introduced in JMC, relating to matters such as working conditions, training, and safety. Board Representation: This is the highest form of worker participation management. Co Partnership It means employees participation In the share capital of their own company.

33 Worker s complete ownership: This management is also called self management. Under this scheme, workers acquire complete control of management. Collective Bargaining: Definition: According to Dale Yoder, Collective Bargaining is essentially a process in which employees act as a group in seeking to shape conditions. Features of CB: It is a group action against individual action. It is normally initiated through the worker s representatives. It is flexible and not static. There are two parties involved in it such as management and labors It is a dynamic concept as well as new concept It is a democratic concept This is called Integrative Bargaining This is an advanced form of human relations It is an art. Grievance Handling: Definition: According to J M Jucius, A grievance is any discontent or dissatisfaction arising out of anything connected with the company

34 Procedure of Grievance Handling: Timely Action: Grievance is settled, lesser will be its effects or employees performance. Accepting the grievance: The supervision should try to recognize and accept the employee grievances. Identifying the problem: The supervisor therefore needs to identify the problem stated by the employee. Collecting the facts: It is useful to maintain the facts for future uses. Taking decisions: The best decision to handle the grievances, alternative courses of actions. Implementing the decisions: The decisions implemented should also be reviewed the grievance has been satisfactory.

1: NATURE CONCEPTS AND FUNCTIONS OF HRM

Subject Paper No and Title 9: HUMAN RESOURCE MANAGEMENT Module No and Title Module Tag 1: NATURE CONCEPTS AND FUNCTIONS OF HRM COM_P9_M1 TABLE OF CONTENTS 1. Learning Outcomes 2. Introduction Human Resource