ALKESH DINESH MODY INSTITUTE FOR FINANCIAL & MANAGEMENT STUDIES

SUBJECT“Human Resource Management”

TOPIC

“Introduction to Human Resource Management”

TY BMS (A)

SUBMITTED TO Prof. Aruna Deshpande

GROUP MEMBERS

Names Roll No.

Ravi Bhingare 06

Aditya Dethe 13

Joel 36

Rahul Kandor 41

Archana Kane 42

Nikhil 56

INTRODUCTIONOrganizations traditionally use five inputs namely Men, Method,

Money, Machine & Material to achieve organizational objectives. People are considered to be the more vital Resources.

Human Resource Management is a way of management that links people-related activities to the strategy of a business or organization. HRM is that aspect of total business management which deals with human relationship within an organization. HRM is the practices involved in carrying out the people or human resource aspect of management position including recruiting, training, motivation, etc. HRM is required for business as they’ll as non-business organization. Every organization whether they are beneficial or harmful to the society needs HR. HRM involves application of management functions & principles for acquisitioning, developing, maintaining & remunerating employees in organization.

DEFINITION“HRM is planning, organizing, directing & controlling of the procurement, development, compensation, integration, maintenance & separation human resource to the end that individual, organizational & social objective are accomplished.”

HR MANAGER

A human resource manager is a person who takes proper care of all human resource functions and has leadership qualities to handle crucial matters related to HR in an organization. He belongs to middle level management and takes decisions for critical matters as per the situation arises. He should be imbibed with all leadership qualities such as quick decision-maker, smart, intelligent, motivating employees in the organization and monitoring them in order to increase their efficiency and productivity. He plays a dual role by catering to the needs of the employees and at the same time taking into cognizance the overall growth and development of the organization.

He also puts his attention in the cost containment, makes optimum utilization of human resources in a smart way, helps in integration of organizational goals and

follows ethical business. He is also, responsible person who sees to it that violations should not be done in any case of legal requirements. He should not take any bias decisions and should have holistic approach in order to solve problems. He needs to have enough knowledge about HR so that no wrong decision can be taken. He need to have high level of intelligence in order to be an efficient employee.

Qualities Required by HR manager1. He should be a problem-solver and should have an influential personality. He

should be proactive and should be in a position to solve all the queries as per the situations.

2. He should have an excellent communication skill in order to bridge communication gap to solve problems in a systematic and organized manner.

3. He should delegate work as per the skills and talents of the employees and deadlines given and also should be in a position to take strategic steps and decisions.

4. He should give his 100% commitment and give fair treatment to all employees. He should take initiative in all aspects and should be in a position to achieve goals within given deadlines.

5. He should be aware of his and other employees SWOT analysis. He should be in a position to handle pressure, frustration and should take effective decision in stressful situations.

6. He should be in a position to analyze the situation, identify key issues, establish and evaluate alternative courses of action and produce logical, practical and acceptable solutions.

7. He should be a good mentor.

FEATURES OF HRM

Pervasive force: HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization. Action oriented: HRM focuses attention on action, rather on record keeping, written procedure or rules. The problems of employees at work are solved through rational policies. Individually oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organization. It motivates employees through a systematic process of recruitment, selection, training & development coupled with fair wage policies. People oriented: HRM is all about people at work, both as individual & groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people & motivate them toward improvements in productivity.

Future oriented: Effective HRM helps an organization meets its goals in the future by providing for competent & well motivated employees.

Development oriented: HRM intends to develop the full potential of employees. Continuous function: According to Terry, HRM is not a one shot deal. It cannot be practiced only one hour each day or one day a week. It requires a constant alertness & awareness of human relations & their importance in every day operations. It helps achieve individual, organizational and social objective of a company. HRM involves team spirit and team work. It is applicable in all levels of management, i.e. top level management, middle level management and lower level management.

OBJECTIVE OF HRM

Societal Objectives: to be ethically & socially responsible to the needs & challenges of the society while minimizing the negative impact of such demands upon the organization.

Organizational Objectives: to recognize the role of HRM in bringing about organizational effectiveness. HRM is only means to assist the organization with its primary objectives.

Functional Objectives: to maintain department’s contribution & level of services at a level of appropriate to the organization’s needs.

Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organization. This is necessary to maintain employee performance & satisfaction for the purpose of maintaining, retaining & motivating the employees in the organization.

FUNCTIONS OF HRM

Managerial functions:

Planning: This function deals with the determination of the future course of actions to achieve desired results. The personnel manager is

expected to determine the personnel programme regarding recruitment, selection & training of employees. The personnel manager is expected to predict about wage trends, labour market conditions, union demands & other personnel benefits etc.

Organizing: This function is primarily concerned with proper grouping of personnel activities, assigning of different groups of activities to different individuals & delegation of authority for the achievement of organizational goals & objectives.

Directing: This involves supervising & guiding the personnel. Direction then consists of motivation & leadership. The personnel manager must be an effective leader who can create winning teams.

Controlling: Controlling function of personnel management comprises measuring the employee’s performance, correcting negative deviation & ensuring an efficient accomplishment of plans. It makes individuals aware of their performance through review reports, records & personnel audit programmes.

Operational functions:

Procurement function: The first operative function of personnel management is procurement. It is concerned with procuring & employing people who possess necessary skill, knowledge & aptitude. It includes functions like: Job analysis, Human Resource planning, Recruitment, Selection, Placement, induction & orientation.

Development function: It is the process of improving, moulding, changing & developing the skills, knowledge, creative ability, aptitude, attitude, values & commitment based on present & future requirements both at individual’s & organization’s level. It includes functions like: Training, Executive development, Career planning & development, Human Resource development.

Motivation & Compensation function: It is a process which in unit of work to create optimum level of performance. The main purpose of job design is to integrate the needs of employees to suit the requirements of an organization. It includes functions like Job design; Work scheduling, Motivation, Job evaluation, Performance appraisal, Compensation administration, Incentives & benefits.

Maintenance function: It aims at protecting & preserving the physical & psychology health of employees through various welfare measures: Health & Safety, Employee welfare, Social security measure.

Integration function: This tries to integrate the goals of an organization with employee aspiration through various employee-oriented programmes, like redressing grievance promptly, institute

proper disciplinary measures, empowering people to decide things independently, encouraging a participative culture, offering constructive help to trade unions etc. It includes Grievance redressal, Discipline, Teams & teamwork, Collective bargaining, Employee participation & empowerment, Trade unions & employees association, industrial relations.

Emerging issues: Effective management of human Resource depends on refining HRM practices to changing conditions. Let us look at other important issues that can motivate people to give their best in a dynamic & ever-changing environment. It includes: personal records, Human Resource audit, Human Resource research, Human Resource accounting, Human Resource information system, stress & counseling.

Role of Human Resource ManagerThey perform mainly three different types of roles, while meeting the

requirements of employees and customers, namely administrative, operational and strategic.

1) Administrative Roles:The administrative roles of human Resource management include

policy formulation and implementation, housekeeping, records maintenance, welfare administration, legal compliance, etc.

i. Policy maker:

The human Resource manager helps management in the formation of policies governing talent acquisition and retention, wage and salary administration, welfare activities, personnel records, working conditions, etc. He also helps in interpreting personnel policies in an appropriate manner.

ii. Administrative expert :The administrative role of an HR manager is heavily oriented to

processing and record keeping. Maintaining employee benefit claims, answering queries regarding leave, transport and medical facilities, submitting required reports to regulatory agencies are examples of administrative nature of HR management.

iii. Advisor :The personnel manager performs his functions by advising,

suggesting, counseling and helping the line managers in discharging their responsibilities relating to grievance redressal, conflict resolution, employee selection and training.

iv. Housekeeper :The administrative roles of a personnel manager in managing the

show include recruiting, per-employment testing, reference checking, employee surveys, time keeping, wage and salary administration, benefits and pension administration, wellness programmes maintenance of records, etc.

v. Counselor :The HR manager discusses various problems of the employees

relating to work, career, their supervisors, colleagues, health, and family, financial, social, etc. and advises them on minimizing and overcoming problems, if any.

vi. Welfare officer :

HR manager is expected to be the welfare Officer of the company. As a welfare Officer he provides and maintains canteens, hospitals, crèches, educational institutes, clubs, libraries, conveyance facilities, co-operative credit societies and consumer stores.

vii. Legal consultant :HR manager plays a role of grievance handling, settling Line and

Staff Functions of disputes, handling disciplinary cases, doing collective bargaining, enabling the process of joint consultation, interpretation and implementation of various labour laws, contacting lawyers regarding court cases, filling suits in labour courts, industrial tribunals, civil courts and the like.

2) Operational Roles:These roles are tactical in nature and include recruiting and

developing employees; coordinating HR activities with the actions of managers and supervisors throughout the organization and resolving differences between employees.

i. Recruiter :HR managers have to use their experience to good effect while

laying down lucrative career paths to new recruits without, increasing the financial burden to the company.

ii. Trainer, developer, motivator :HR managers have to find skill deficiencies from time to time, offer

meaningful training opportunities, and bring out the talent potential of people through intrinsic and extrinsic rewards which are valued by employees.

iii. Coordinator/ Linking pin :

The HR manager is often deputed to act as a linking pin between various divisions of an organization. The whole exercise is meant to develop rapport with divisional heads, using PR and communications skills of HR executives to the maximum possible extent.

iv. Mediator :The HR manager acts as a mediator in case of friction between two

employees, groups of employees, superiors and subordinates and employees and management with the sole objective of maintaining industrial harmony.

v. Employee champion :In order to deliver effective results HR managers have to treat their

employees as valuable assets. Such an approach helps to ensure that HR practices and principles are in sync with the organization’s overall strategy.

3) Strategic Roles:

An organization’s success increasingly depends on the knowledge, skills and abilities of its employees, particularly as they help establish a set of core competencies. The strategic role of HR management focuses attention on how to enable ordinary employees to turn out extraordinary performance, taking care of their ever-changing expectations. The key areas of attention in this era of global competition include:-

i. Change agent : HR’s role as a change is to replace resistance with resolve, planning

with results and fear of change with excitement about its possibilities. HR helps and organization identifies the key success factors for change and asses the organization’s strengths and weaknesses regarding each factor.

ii. Strategic partner :HR’s role is not just to adapt its activities to the firm’s business

strategy, nor certainly to carry out fire-fighting operations like compensating employees. Instead, it must deliver competent, consumer-oriented work force. While implementing strategies, HR should develop appropriate ways to restructure work processes smoothly.

PESONNEL PHILOSOPHY

A philosophy is a system of thoughts, based on some orderly, logical statements of objectives, principles and policies and general method of approach to the solution of some aspects of problems.

Definition of HRM philosophy:-“The fundamental beliefs, ideas, principles views had by management

with respect to organizing and treating individuals at work” – R. P. Calhoun

Personnel Policies:

A policy is a plan of action. A predetermined guide established to provide direction in decision making. As guides, rather than as hard and fast rules, policies are somewhat flexible, requiring interpretation and judgments in their use. They can exert significant influence on how managers accomplish their jobs. HR policies ensure consistency and uniformity in dealing with people.

Though principles and policies are often bundled together in the HRM policy statement of an organization, they are distinctly different. Principle is the fundamental truth established by research, investigation and analysis.

Case Study

Mr. Anthony is the Chief Executive of a medium sized Chemical Co. in Hyderabad. He holds a Ph.D. in Chemistry. However, he has not been involved in research and development of new products for two decades. Though turnover is not a problem for the company, Mr. Anthony and his senior colleagues noticed that the workers on hourly basis are not working up to their potential. It is a well-known fact that they filled their days with unnecessary and unproductive activities. Mr. Anthony knew that workers can be motivated for giving maximum performance through various incentive plans. One day Mr. Anthony contacted HR Manager and enquired: “Why their workers are not motivated? They pay them highest in the industry”. The Personnel Manager replied. “I have already informed you a number of times, that money, working conditions and benefits plans are tied to length of service. Even the lazy workers, accordingly, enjoy the benefits in the organization, which in fact, according to the workers, should go only to those who work hard”.

Mr. Anthony then wanted the HR Manager to look into the problem more closely and find out a solution to the problems of workers on hourly basis.

Questions:1) List the important facts in the case.

2) Explain the motivational problems in this case.3) If you were the Manager, how would you motivate the employees so that

they work better?

Possible Solutions:

1) The important facts in this case are:a) Workers appointed on hourly basis are not motivated properly. They are

highly paid but do not work to their full potential. They waste their time in unnecessary and unproductive activities.

b) Hourly basis workers are not motivated through suitable incentive plans.c) Hourly basis workers are dissatisfied as well as not motivated because:

i) Hard work and efficiency go unnoticed in the organization.ii) Promotion and benefits plans are tied to the length of service.iii) Lazy workers enjoy all benefits in the organization and that too at the

cost of those who work hard.iv)There is no reward to hard work and efficiency in the organization.

d) This problem relating to workers on hourly basis is noticed by the Chief Executive Mr. Anthony and his senior colleagues.

e) Mr. Anthony discussed the issue with the HR Manager of the company and asked him to look into the problem in depth and suggest solution to the problems relating to workers on hourly basis.

2) a) Hard work and efficiency go unnoticed and unrewarded in the organization.b) Promotions and benefits plans are favourable to workers who have put

up many years of service (senior employees) and not to workers working on hourly basis.

c) Lazy workers get benefits but such benefits are denied to hard working and efficient workers.

d) Promotion policy (based on seniority) is defective. e) Workers on hourly basis are neglected. They are treated as time wasters

as they filled their days with unnecessary and unproductive activities. Systematic measures to motivate such workers were not introduced.

3) As a HR Manager of the company, I will refer to introduce the following measures particularly for the motivation of employees working on hourly basis:a) Provision of security of employment to hourly basis workers by making

them permanent employees on certain considerations and also in a planned manner. This will give mental peace to hourly basis workers and will also act as a motivating force for them. Their attitude will become positive and fovourable to hard work due to this incentive.

b) The existing promotion by seniority system/method will be replaced by promotion on merit basis. As a result, employees working hard and also efficiently will be rewarded in the form of promotion and lazy workers will be punished as promotions will be denied to them inspite of long duration of service.

c) The benefits plans will not be tied/ linked with the length of service. The plans will be made applicable to all workers – old and newly appointed. This will remove injustice to hourly basis workers and will motivate them to take initiative and interest in the work.

d) Hard work and efficiency of all workers will be recorded in an impartial manner. It will be officially form of special increments, cash rewards, etc. This will act as a motivating factor for hourly basis employees likely to become permanent in due course.

e) HR policies will be adjusted in such a way that special benefits will be provided to efficient workers and there will be indirect punishment to lazy workers.

f) The principle of equal pay for equal work will be introduced. This will give equal benefits to all workers irrespective of the length of service.

g) Efforts will be made to create fair and favourable work environment in the organization. This will change the attitude of workers and will motivate them to work efficiently for attractive benefits/ rewards.

h) Efforts will be made to remove the feeling of injustice among on hourly basis. A feeling of exploitation will be removed. As a result, their approach will become positive towards efficient performance.

HRM of COCA-COLA COMPANY

INTRODUCTION

Founded in 1886, the coca-cola company is the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. The company’s corporate headquarters are in Atlanta, with local operations in over 200 countries around the world.

The Coca-Cola Company is the #1 company within the non-alcoholic beverages industry. They have a 20 year standing of being the leader and investors know that the Coca-Cola Company has an extraordinary reputation for maximizing shareholder value.

A challenge that the Coca-Cola Company is facing is the struggle with their global competitors in the fact that their HR practices are greater and less than coke. If coke wants to more reputation in the world they must produce more incentives for employees from which they more done work hard and produce good quality. Their new management team needs to work on implementing cohesive goals between the two to reach the Coca-Cola Company’s long-term growth potential.

MANAGEMENT OF COCA-COLA IN GUJRANWALA(Situated in Pakistan)

DEPARTMENTALIZATION:• Human Resource and international relation department. • Research and Development department. • Account department. • Engineering department. • Production department. • Quality Control department. • Marketing department. • Sale department. • Fleet department. Distribution department.

Following are the information about the management of Gujranwala plant: The factory is control by the BOM (Business operational manager) and under him

eight Departments are working. Every Department is led by a department Manager. The Departments of account is lead by the manager account and under him assist manager works who control the other employees of the department under him.

Department of production and engineering is lead by the Prod. & Eng. Manager. Under him work Mechanical Engineers, Mechanical Supervisor and Assistant Production. Quality control department lead by the manager quality control. Under him working the chief chemist whose responsibility is to give the quality product to the customer. Sale & marketing department is playing the important part in the growing market share in the country. That department led by the Sale & marketing manager that department is further divided in the sale and marketing section. The marketing department is lead by the marketing manager and the sale section by sale manager. Sale men work under the sale manager.

Transport vehicle of the company the head of the department is Fleet manager and under him work the assistant fleet manager who manages the control over the transportation of the company. The distribution of the coca-cola around the Gujranwala region is the responsibility of distribution department, which is lead by the distribution Manager. Assistant distribution manager work under him to full fill their duties.

Human recourse and international affair department take control over the external environment of the company and help the in the growth of the company. That Department is lead by the Manager H.R.I.R. other executive work under his supervision. The R&D Department plays the most important role in the development and the growth of the company. This Department is lead by the Manager R&D and Assistant Manger work under him.

The total number of employees in the coca-cola Gujranwala Company is 236.

Company cultureThe factors, which must be highlighted in this regard, are as follows:

Special training is given to employees; new employees also are placed with old ones to learn work and the values prevalent in the company,

Two cups tea are free for every employee daily this represents the hospitable nature of the company, This factor keeps the employees motivated as they are taken well care this fact is clear by the physical actions took by the company,

The company working environment is really a good blend of Asian and western values.

Motivations for employees

Wages:- Coca-cola is providing smart wages to its employees, which are competitive and really

satisfy its employees. As along with the wages they are provided with a lot of facilities and amenities. In brief structure of wages can be described like this “Blue collar workers are offered wages along with commission, sales man are offered wages plus commission pursuing certain criteria, White collar workers who are the officers and the executives draw a handsome amount of salary which is really competitive”.

Staffing and training: - The Coca-Cola Company has always believed that education is a powerful force in

improving the quality of life and creating opportunity for people and their families around the world. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, they are involved in innovative programs that give hard-working, knowledge-hungry students books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars, educational programs in local communities are their priority.

Annual Leaves:- Coca-cola international has different leaves structures in different regions and

countries of the world where they have their company.

Designation Allowed leavesSupervisor 26 leaves per annum

Above then Supervisor 26 leaves per annumBelow supervisor 24 leaves per annum

The above table shows simply how the leaves structure allows for the leaves and how well the employees are awarded with facility of getting their own personal time to manage their own problems. These leaves are authorized for the employees and these include the with pay leaves. This facility is really great which keeps the employees motivated and thrilled about their work.

Time Management for Work:- Time management is the key to grow in this fast and furious century of growth and

development, so therefore Coca-cola is doing at their best for this pivotal factor of managing time. To cover this segment of management they have divided the work in to shifts. For this purpose phenomenon of division of labor is contributing for its functioning. In Gujranwala Coca-Cola company has divided the shifts for the work in the following manner: They are managing the working time in two shifts. They can include some extra shift if there is demand but normally there are two shifts, which are explained in the following:

• 8 a.m. to 4 p.m. (all departments other then technical departments), • 4 p.m. to 12 p.m. (Technical department).

These are the shifts in which the work in the factory is mostly conducted.

Medical Facilities:- Medical facilities are of prime importance in any organization as the health of

employees is in the benefit of the company as well as it’s the social responsibility of the company to provide nice and healthy work environment to its employees, These facilities are such facilities which can include first aid treatments, emergency handling problems, sickness, and other diseases which are fatal for a person. The Coca-Cola Company is providing Medical facilities to all its employees. These treatments are provided to

employees as per their designations. The medical facilities are also provided to supervisors as well as the officers in the company.

Employees their Asset: - The heart and soul of their enterprise has always been their people. Over the past

century, Coca-Cola people have led their successes by living and working with a consistent set of values. While the world and their business will continue to change rapidly, respecting these values will continue to be essential to their long-term success. As they have expanded over the decades, their company has benefited from the various cultural insights and perspectives of the societies in which they do business. Much of their future success will depend on their ability to develop a worldwide team that is rich in its diversity of thinking, perspectives, backgrounds and culture.

They are determined to have a diverse culture, from top to bottom that benefit from the perspectives of each individual.

Employee Forums: - They believe that a sense of community enhances their ability to attract, retain,

and develop diverse talent and ideas as a source of competitive business advantage.

Mentoring Programs: -The Coca-Cola Company is creating a system of mentoring programs that include,

one-on-one mentoring, group mentoring and mentoring self-study tools. Currently, Coca-Cola North America and The Minute Maid Company have one-on-one mentoring programs designed to foster professional growth and development. These programs promote trusting relationships for networking, coaching, career counseling and life lessons. The benefits of mentoring also strengthen their company. Mentoring increases the flow of information across organizational lines and encourages diverse thinking and cross-functional learning.

HRM within Coca Cola Company

Human Resource Management is an essential part for any organization. Moreover, development of this department is the first step, the ground on which the future of the company depends.

coca cola HR department is also conducting all the practices of HRM like Job analysis and design of work, recruitment and selection, training and development, performance appraisals, compensation, employee relationships, staff welfare and medical policies and some other things like that.

1) Job analysis and designing: Job analysis is the procedure for determining the duties and skill requirements of a

job and the kind of person who should be hire for it. Job analysis consists of two products one is job description and second job specification.

Job description: a list of job duties, responsibilities, reporting relationship, working conditions, and supervisory responsibilities- one product of a job.

Job specification: a list of a job’s human requirements that is requisites education, skills, personality, and so on-other product of a job analysis.

Coca cola company HR department check its own job description and job analysis in which they get the information about employees work activities, human behavior, performance standard, job context and human requirements and also other information related to this conduct.

HR department of coca cola used this information for Recruiting, selection, compensation, performance appraisal, training, and employee’s relationship.

2) Planning and Forecasting: The process of deciding what positions the firm will have to fill and how to fill them,

Coca cola HR department involves in company strategic planning and they also make sufficient planning for hiring new employees in the future. They forecast for the expected employees needs in the organization. They forecast of employees on the change technology and increasing in productivity. After planning they send this report to the head office for approval. If they get approval from the head office then they start recruitment process.

3) Recruitment process: Their recruitment process is well established first of all they give ads in news papers,

company website, institutions etc. Once they receive an application form, from candidates with required documents.

Internal recruitment External recruitment

4) Selection process:

The selection process will vary depending on the position you’re applying for, as one process can’t fit all the different roles they have here at CCE. However, in most cases a combination of any of the following tools will be used:

Interview Group exercises Presentations Psychometric tests Role plays/Situational Exercises

5) Training process of employees: Training process is essential part of every employee without training; employee

cannot come to now the procedure of work, rules and regulations of firm, sometimes when new technology is introduced it is also responsibility of a firm to train its employees. After recruiting the fresh employee they train them for three months and also pay them salaries after three months they become part of a firm.

They also give training to already exist employee it depend upon condition for example if new technology is introduced first of all they give full training to them about new technology then they allow them to start their job.

6) Performance appraisal:

Coca cola performance appraisal is annually HR manger Waqar Mahmood said that they appraise the employee due to their performance about goals of the organization, they set the goals started the year and tells the employees about the goal if the employees achieve this goal they appraise the employees.

Steps in appraising performance:The performance appraisal process contains three steps;

Define the job Appraise the performance Provide feedback

Define the job; Means making sure that you and your subordinate agree on his or her duties and job standard. Appraise performance; Means comparing your subordinate’s actual performance to the standards that have been set. Provide feedback; Means discuss the subordinate performance and progress, and make plans for any development required.

7) Compensation and benefits:

HR department manage says that employees are their assets, there for they are careful about their health and benefits. They give following compensation and benefits:

Basic salary Bonus Medical facility Pick and drop Gratuity fund

Social security

8) Safety Policy: