Brief Introduction on HUMAN RESOURCE MANAGEMENT

By- Shafie ZamilMHRM (Reading) – University of Colombo,

B.A university of Perdeniya, Dip in Mgt, CCHRM

Human Resource, it is only live resource. There by it is only can mange other two resources (Money / Materials)

The most important resource of organization is Human Resource

Human Resource management is management of various activities that are designed to enhance the effectiveness of man power in an organization, in the achievements of organizational goal.

Human Resource management may be defined as organizational function of Planning for Human Resource needs & Recruitment, Selection, development, compensation & Evaluation of performance to fill those needs.

Functional based

The philosophy, policies, procedures & practices related to management of people within an organization.

Theory based

Definition of HRM

Employment Management -Industrial Relation Management - IRPeople Management -Personnel Management Human Talent ManagementHuman Resource Development - HRDHuman Resource Management - HRMHuman Performance Improvement - HPI

(New Concept)

Different terms used for HRM

Human resource management was first known as personnel management. The history of Human Resource management is very short

Human Relations Movement The First World War Between the wars The Second World War The Post War Years The Post War Years

However the present status of the field of HRM has been achieved after years of evolutionary development. During this century, methods of managing people have

become more organized & specialized.

Paternalistic RoleCare for injured and sick employees Protection for woman & Children

- State / Trade union partnership- Management of absences training and recruitment - Productivity improvement

- Trade Union negotiation- Policy adherence - Regulation of pay

- Focused on Improvising efficiency and effectiveness- Administration and functional / technical expert- HR generalist in the field

• A number of scholars, manager, entrepreneur & various people have contributed in different forms to growth of this important subject.

• Organizations now consider the human resources as a resource that could be developed rather than just be managed (Fundamental Different)

• Hence the role of the HR – Manager today has become a much more challenging & a professional one, requiring specialist skills.

Personnel Mgt VS HRMPersonnel Management Human Resource Management

Manages People Considers people as a resource that can be developed

Most managers can do personal management. A manager with basic managerial skills could handle it.

Human resource management should be done by a specialist or professionally qualified persons.

More admin oriented More rules & strict controls

More development oriented More motivation, more development &

career advancement opportunities.

Cost effective on the short term Cost effective on the long term An investment

Less concentration on employees’ future potential & getting has best from employees through training, Development & motivation

A job

Identifies employees potential, areas for improvement, strengths and weaknesses, identifies training need & train them. Achieves result through motivation & job satisfaction.

A career

MODERN HUMAN

RESOURCE MANAGEMEN

T

HRP J & WD

ST

T & D PRC & R

MT JS IG MC

PD BT MCH

HR IN ORG

L CM P – R – IR – LW

Scope Personnel Management Human Resource Management

InternalAdvertisement

External

Job Description & Specification

Selection

Recruitment

Staffing

Human Resource Planning

Training & Development

Direct

Indirect

Performance Appraisal

Non - Monitory

Monitory

Compensation

HRM PROCESS

Key Result Area of HRM Functions

•HR Planning

•Administration of Compensation System

•Performance Management

•Human Resource Development

•Employee welfare service

•Industrial Relation

•Formulation of Personnel procedure & Practices

Strategic Human Resource Activities

Policy Making Designing & developing Human

resource Strategies Contribution to corporate plan of

organization Integrating human resource activities

to main purpose of organization

Operating Human Resource Activities

o Job Analysiso Recruitment & Selectiono Job Evolutiono Salary administrationo Incentive & benefitso Grievance Handlingo Disciplinary Procedureo Communicating conditions of serviceo Personal Record

HR – Advisory Activities

Training & Development

Counseling Industrial Relations

The recruitment and selection process

Employment planning and forecasting

Recruiting: Build a pool of candidates Applicants

complete application formsUtilize various

techniques to identify viable job candidates

Interview final candidates to make final choice

Internal Sources and Methods of Recruitment

Sources Promotions

Transfers and relocations

job rotation

Rehires and recalls

Internal Sources and Methods of Recruitment

Methods1) Job posting

The organization announces position openings through bulletin boards, company publications, and internet/intranet. Some union contracts require job posting to ensure that union members get first choice of new and better positions.

Internal Sources and Methods of Recruitment

2) Skills inventoriesManual or computerized systematic records listing employees' education, career and development interests, languages, special skills, and so on to be used in forecasting inside candidates for promotion.

1) Work experience 2) Product knowledge3) Industry experience4) Formal education5) Training courses6) Foreign language skills7) Relocation limitations8) Career interests9) Performance appraisals

External Sources and Methods of Recruitment

SourcesEmployee referral programsWalk-insOther companiesEmployment agenciesTemporary help agenciesTrade associations and unionsSchoolsForeign nationals

Internal Sources and Methods of Recruitment

Methodsradio and televisionnewspapers and journalscomputerized servicesacquisitions and mergerswork flow management

Advantages DisadvantagesINTERNAL SOURCES INTERNAL SOURCES– Morale – Better assessment of

abilities– Lower cost for some

jobs– Motivator for good

performance– Have to hire only at

entry level

– Inbreeding– Possible morale

problems of those not promoted

– Political? infighting for promotions

– Requires strong management development program

EXTERNAL SOURCES EXTERNAL SOURCES– new blood, new

perspectives– Cheaper than training

a professional– No group of political

supporters in organization already

– May bring competitors, secrets, new insights

– Helps meet equal employment needs

– May not select someone who will fit

– May cause morale problems for those internal candidates

– Longer adjustment or orientation time

May bring in an attitude from pervious Company

A job description (J/D)is a written statement of the duties, responsibilities, required qualifications and reporting relationships of a particular job. Job specifications (J/S)specify the minimum acceptable qualifications required by the individual to perform the task efficiently. Based on the information obtained from the job analysis procedures, job specification identifies the qualifications, appropriate skills, knowledge, and abilities and experienced required to perform the job.

PAY PACKAGES

CompensationMonetary

DirectSalary – Wages – Bonus Incentive – Commission – over time payment

Non - Monetary

IndirectPension - Gratuity - Insurance - Transport

Reputation , Recognition, job environment , status, Authority , Training,

Financial

Non financial

IncentiveAn incentive is any factor that provides a motive for a

particular course of action

Incentives bridge the gas between capacity to work and willingness to work

Capacity to work

Willingness to work

GAP

Salary Wages Earning Take home salary Minimum Wages Fringe benefits

Definitions

Salary As the remuneration paid to the manager, professionals, Supervisors & clerical staff on monthly or annual basis White Collar Employees

Wages Who get payment based on time

(Hours / Daily wages ) Blue Collar Employees

Earning The total amount received by an employee during

a given period ( Salary / COL /House Rent allowances / other allowances / over time payment )

Take home Salary Amount of salary left to the employee after making certain deduction

(EPF / ETF / Life Insurance / Income Tax / other..)

Minimum Wage The amount of remuneration which is stipulated

by government for different industries

Fringe Benefits as supplement to workers earned wages. They included payment in cash and kind out side of earned wagesPrincipal Benefits Leave – paid Social Insurance – EPF / ETF /Accident

/Maternity Medical Service / Canteen / Death relief /

loan / housing loan / Transport Severance payment

Gratuity / Bonus / long service award/ profit sharing

Free training Scheme / Sponsorship for education & training

JOB EVALUATION

What is the job

What is the evaluation

What is the process

Job is set of task and activities should be perform by individual and group.

Process - systematic way to archived

Evaluation – proper evaluation has four process set of task and activities should be perform by individual and group.

1. Measurement (Quality & Quantities)2. Assessment3. Valuing 4. Rating

Job Evaluation is process of measurement, Assessments, valuing &

Rating a set of task and activitiesJob analysis

Job Rating - Study the JD & JS and assign relative value or scope to each job

Job specificationJob description

Money Allocation – Assign a money rate to pay to each job according to a define system or scale

Employee Classification - Classify all employees under proper job title based upon the content of the worker they actually

perform

JE methods can be divided in to two basic categories

1. Non analytical methodsi. Ranking Methodsii. Job Grading / Classification

2. Analytical Methods iii. Points Rating Systemiv. Factor Comparisonv. Market Pricing

Job Ranking

The basic process of job ranking is to select a representative sample of jobs (Bench Marks), prepare

basic J/D for them, compare them the basic information in the J/D and rank them in order

Job ClassificationPredetermined number of job group or classes are established and job assigned to these classification

Class I – Executives (Office manager / D. Manager / Department supervisor)

Class II – Skilled Workers (Purchasing Assistant / Cashier / Receipts Clerk )

Class III - Semiskilled Workers (Machine operators / crank Operator )

Class IV – Semiskilled Workers (Office Boy / File Clark)

This method is widely used currentlyJob are expressed in terms of key factors. Points are

assigned to each factor after prioritizing each factor in order of important.

Skills Education and Training required / Depth Experience /Problem Solving Skills / Social Skill required / Creative thinking / Degree of discretion / use of judgment

Responsibilities / AccountabilitySpecialized & Breadth responsibility / for production material / Degree of freedom

Effort Mental & physical Demand / potential stress

Working Conditions

Points Rating Method

The most frequent factors employed in points system are as followed

Skills

Education and Training

required

Depth Experience

Problem Solving Skills

Social Skill required

Creative thinking

Degree of discretion

use of judgment

Responsibilities / Accountability

Specialized responsibility Breadth responsibility Complexity of workDegree of freedom act number and nature of subordinate staff extent of accountability of equipment / plant extent of accountability of production / materials

Effort

Mental Demand

physical Demand

Degree potential stress

Working Conditions

Time scale of operation

Turbulent or Steady – state

Amount of necessary

Travelling

Diversity of Subordinates

Pressure from other group difficult or hazardous surrounding

A more systematic and scientific methods of job evaluation is the factor comparison methods

Factor comparison method