Introduction To Human Resources Management

Introduction to Human Resources Management

Lecture Outline         

Defining human resources management (HRM) Role of Human Resource Management Functions of Human Resources Management Human resource planning and demand forecasting Forces affecting the demand for human resources Job analysis and specification Remuneration and benefits Training and development Termination of employment

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Human Resources Management Human resource management (HRM) is the management of various activities designed to enhance the effectiveness of an organisation’s workforce in achieving organisational goals.

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Basic Role of the HR Dept. Identifying HR needs Attracting human resources Maintaining human resources Terminating the relationship

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Evolution of HRM    

Industrial Revolution Taylor’s Scientific Management World War –1 & the emergence of HRM The Human Relations Movement

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HRM Functions 

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Human resource planning assesses the human resource needs associated with strategic management and helps identify staffing needs. Staffing includes attracting and selecting individuals for appropriate positions. Training and performance evaluation are means of ensuring that employees can contribute to the organisation.

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Compensation involves rewards that will attract, motivate, and retain employees. Workforce perceptions of the organisation and its treatment of employees must be managed.

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Job Analysis 

Job analysis is the systematic collection and recording of information concerning:    

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the purpose of a job, its major duties, the conditions under which it is performed, the contact with others that performance of the job requires, and the knowledge, skills, and abilities needed for performing the job effectively.

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A job analysis may be based on information obtained through direct observation, interviews, diaries or questionnaires. A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job. A job specification is a statement of the skills, abilities, education and previous work experience that are required to perform a particular job.

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Methods of Job Analysis 

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For existing jobs, interviews with employees Interviews with supervisors Observation Combination, interviews & observation Structured questionnaires Employee journals/logbooks 10

Job Specification 

Outcomes: Job descriptions and job specifications impacts upon:     

Recruitment & selection Performance appraisal Remuneration Training & development Job design & redesign

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Forces Affecting Demand for HR 

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Aspects of the general environment or of the task environment can affect the need for certain types of employees. Changing organisational requirements, such as alterations in strategy plan, may affect demand. Internal workforce changes, such as retirements, resignations and leave of absence affect the need for human resources. 12

Demand Forecasting 

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Judgmental forecasting is based on the opinions of individuals thought to be knowledgeable. Quantitative forecasting relies on numerical data and mathematical models. Technological or qualitative forecasting is aimed mainly at predicting long-term trends in technology and other important aspects of the environment.

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RECRUITMENT

33objectives: objectives:

Ensuring Ensuringcompliance compliance by byorganisation organisation with withgovernment government regulations regulations

Maximising Maximisingthe the pool poolof ofapplicants applicants atatminimum minimumcost cost

Attracting Attractingsuitably suitably qualified qualified& & skilled skilledapplicants applicants

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Methods of Recruitment         

Internal promotion Advertisements Employee referrals Employment agencies Executive recruitment (“head hunters”) Campus interviews Contractors Internet job & career sites 15

Selection 

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Reliability: “…how much the decision process will consistently measure the same thing” Validity: “..whether the decision processes actually measures what it sets out to measure” Selection devices: Application forms    

Weighted application forms Written tests Selection interview Assessment centres

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Remuneration & Benefits Factors      

Skills & Qualification of the Candidate Demand for the skill set in the Market Responsibilty level /Grade Experience Financial Position of the Company Legal Implications

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Remuneration & Benefits  

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Basic Salary & other Allowances Variable Performance pay/Performance linked pay/Commissions Consultacy fees Concept of flexi Plan/Cafetaria plan

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Training & Development 

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Choices: Buy skills, build them, or a mixed approach Strategic rationales for training:  

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Proactive Reactive

Enhancement of employee motivation, commitment & retention 19

Training Need Identification    

Interview Assessment Performance Appraisal On the Job Observation Discussion with the Supervisor

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Training Methodology     

Lecture Method Role Play Dummy Presentations On the Job Training Out Door Training

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Mould Mould employee employee behaviour behaviour to to company company norms norms Build Build consistency consistency of of employee employee actions actions & & organisation organisation goals goals Improve Improve HR HR planning, planning, training training & & succession succession Improve Improve quality quality of of salary salary reviews reviews Provide Provide record record for for dismissal, dismissal, demotion, demotion, grievance, grievance, appeal appeal

appraisal & 360 degree feedback

Performance Performance appraisal appraisal o 360 360o feedback feedback -non-hierarchical non-hierarchical method method

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HRIS, INTERNET, INTRANETS & EXTRANETS Better internal communication On-line training & development

Enhanced distribution of HR policy, news, information

Widespread electronic systems

Maintenance of HR records

Internet recruitment Multi-site collaborative work teams, electronically linked Performance appraisal, including 360O feedback 23

Legal Compliances       

Shops & Establishments Registration & Compliance Registration &Compliance under the Factories Act Registration & Compliance under Provident Fund Act Registration and Compliance under the ESI Act Compliance under Mininmum Wages Act Compliance under the Gratuity Act Compliance under the Payment of Bonus Act

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The Future of Work  

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Fewer core employees Increased part-time, casual & temporary staff Teleworking Temporary agency work, short-term labour hires, on-call & contract workers Personnel supply firms Idea of employee as an independent contractor 25

Terminating Employment    

Retrenchment Redundancy Dismissal Regard needed to:    

Regulatory requirements Exit interviews Use of out-placement consultants Effect on HR & other functions of the organisation 26