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The management of Human Resources is viewed as a system in
which participants seek to attain both individual and group goals. Its
objective is to understand what has happened and is happening and
to be prepared for what will happen in the area of working
relationships between the managers and the managed.

According to I.Bid ………..
“HRM is the phase of management which deals with the effective
control and use of manpower as distinguished from other sources of

Prof. Jucius has defined HRM as; “The field of management which
has to do with planning, organizing, directing and controlling various
operative functions of procuring, developing, maintaining and utilizing
a labor force, such that the:
(a) Objectives, for which the company is established are attained
economically and effectively;
(b) Objectives of all levels of personnel are saved to the highest
possible degree; and
(c) Objectives of the community are duly considered and served”

Edward Flippo states: “HRM is the planning, organizing, directing and
controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the
end of individual, organizational and social objectives are

The Indian institute of Personnel Management (Present national
Institute of Personnel Management) observes HRM as;
 “ Personnel Management, Labor Management or Staff Management
means quite simply the task of dealing with Human Relationships
within an organization. Academically the three aspects of HRM are:
   1. The welfare aspect concerned with work conditions and
       amenities such as canteen, crèches, housing, personal
       problems of workers, schools and recreation.
   2. The labor or personnel aspect concerned with recruitment,
       placement of employees, remuneration, promotion, incentives,
       productivity, etc

   3. The Industrial relations aspects concerned with trade union
      negotiation, settlement of industrial disputes, joint consultation
      and collective bargaining
All these aspects are concerned with human element in industry as
distinct from the mechanical.”

Importance of HRM:
 (a) Social Significance of HRM:
 (b) Professional Significance of HRM:
 (c) Individual Significance of HRM:

Role of HR Manager:
In modern era, the personnel manager typically performs a variety of
roles such as the roles of conscience, of a counselor, a mediator, a
company spokesman, a problem-solver and as a change agent.
   1.    The conscience role is that of a humanitarian who reminds
         the management of its moral and ethical obligations to its
   2.    The personnel manager plays the role of a counselor to
         whom the employees frequently go for consultation and with
         whom they discuss their marital, health, mental, physical and
         career problems.
   3.    As a mediator, he plays the role of a peacemaker, offering to
         settle the disputes that may arise among individuals or
   4.    HR Manager is the spokes man for the company as he
         posses a clear overall picture of his company’s operations.
   5.    He is a problem-solver with respect to the issues that involve
         human resources management and overall long range
         organizational planning
   6.    As a change agent he is best suited to introduce and
         implement major institutional changes. He takes initiatives
         for launching organizational development program and
         convinces the top management for their need.
   7.    He helps line managers learn to detect and solve their

The HR Manager plays many other roles as well. The HR Manager
often handles the matter, which needs someone’s attention and
which nobody wants to deal with. It has been now fully recognized

that the basic role of him is, “The management of manpower
resources”. His functions are very comprehensive. His role changes
according to the size, location, business activities and the objectives
of firm. The HR Manager undertakes all those functions, which are
concerned with “Human elements”, “relations in organization” as well
as in “material elements”.
                            THE ROLE OF A HR MANGER

  1.Advisory           1.Research in            ROLE
  2.Manpower                                  1.Time
                       personnel and                             handling
  Planning                                    Keeping
  3.Training and
                       organizational         2.Wageand          2.Settlement of
  Development          problems.              salary             disputes.
  4.Measurement        2.Managing             administration
  and assessment
                       Services               3.Maintenance
  of individual        3.Group                of record.         Actions
  and group                                   4.Human            4.Collective
  behavior                                    Engineering        Bargaining


The ideal HR Manager is not a “decision maker” but a counselor, not
a collector of responsibilities but an “advisor” to help the management
make more reliable personnel decisions. In any enterprise it is these
“line man” who determine the “personnel climate” for the entire
organization. If the personnel man can meet the challenge of “staff
role” he would make the most effective contribution to industry.

Objectives of HRM:
According to Ralph.C.Davis objectives can be divided into two parts.
          (a) Primary objectives:
In the first instance objectives relate to the creation and distribution of
some goods, service or ideas. The HR Department assist, those who
are engaged in production, in sales, in distribution and in finance. The

goal of personnel function is creation of a work force with the ability
and motivation to accomplish the basic organizational goals.
Secondly, they relate to the satisfaction of the personal objectives of
the members of an organization through monetary and non-monetary
Monetary               a) Profits for owner.
                       b) Salaries for the executives.
                       c) Wages for the employees
                       d) Rent for the landowners.
                       e) Interest for the shareholders.

Non-Monetary                  a) Prestige
                         b) Recognition
                         c) Security
                         d) Status
Finally primary objectives relates to the satisfaction of community.
a)     Serving customer honestly.
b)     Promoting a higher standard of living.
c)     Bringing comfort and happiness for the society.
d)     Protecting Women, Children and senior citizens.
          (b)Secondary objectives.
The secondary objectives mainly aim at achieving primary objectives
economically, effectively and efficiently. Its depend upon;
1)     The economic need of the goods and services required by the
2)     Condition of employment for all the members of an organization
which provide for satisfaction in relation to their needs, so that they
may be motivated to work for the success of the enterprise.
3)     The effective utilization of people and materials in productive
4)     The continuity of enterprise.
The methods adopted by business organizations in fulfilling the
primary purposes must be consistent with the ethical and moral
values of society and with the policies and regulations established by
legislative action.
While framing the objectives it is necessary to consider the interest of
the employee as well as the management with a view to achieve the
objective of the entire organization. The concept of integration of

employee-management interests; we can have better look through
below chart.
              I N T E G R AT E D E M P L O Y E E -

        Employee's Interest                     Management'sInterest
      1Recognition as                                1.Lowest unit
      an individual                                  personnel cost.
      2.Opportunity                                  2.Maximum
      for expression                                 productivity of
      or development                                 employees.
      3.Economic                                     3.Availability
      security.                                      and stability of
      4.Interest in                                  employees.
      work.                                          4.Loyalty of
      5.Safe and                                     employees.
      healthy working                                5.Co-operation
      condition.                                     of employees.
      6.Acceptable                                   6.High
      hours of work                                  organizational
      and adequate                                   morale
      wages.                                         7.Intelligent
      7.Fair and                                     initiatives of
      efficient                                      employees.

The process system approach of HRM:
As it is useful for the architect to build miniature models of a proposed
building, so it has been found useful to have some type or model for
HRM. In Process system approach of HRM approach provides for;
   1)     A description of HRM as a dynamic sub aspect of the total
          management process and as integral part of all subdivisions
          of an organization.
   2)     An analysis of the inter dependence between various
          aspects of HRM and other managerial process.
   3)     An analysis of the ecology of HRM (Relationship between
          personnel process and their environment)
A process is an identifiable flow of inter-related events moving toward
some goal. A system is a particular linking of inter-related and inter-
dependent components. In HRM a unique linkage of people, policies,
devices and procedures facilitates employee process for hiring



                     Development            Leadership

                                 9          1
              Bargaining 8                          2 Justice

               Rewards 7                            3   Task
                 Training &          5

                                HRM-Fig 1.4
Every system in process includes a flow of inputs (Material, energy
and information), a processing or transforming mechanism (A
machine and a man at work), a flow of outcomes or outputs (The
product, service or ideas and waste) and finally a mechanism of
feedback. In the process system terminology, “HRM” is the planning,
coordinating and controlling of a network of organization. These
processes are found in most of the organization, in less or more
degree of application.

Job Analysis:
Job Analysis assesses, „what employees are doing‟. Specific details of what is being
done and the skills utilized. It helps managers to understand the job and job
structure. It helps to develop techniques to improve productivity. It involves job
design and redesign, coordinating demands on available time, individual,
psychological needs, technical procedures and desired performance.
A job is a collection or aggregation of tasks, duties and responsibilities, which as a
whole, are regarded as a regular assignment to individual employees. Job includes
other terms like position, assignments etc., but job is different from assignment or
position. Position is personal where as job is impersonal. When the total work to be
done is divided and grouped into packages, we call it as Job. Job may include many
positions for a job performed by related to a particular employee.
Job Analysis (Area of Application)
                               Job Analysis          Job Description
 Primary work
 or activities                                                            Training

                                                   Job Specification
                  Jobs       >Methods                                   Compensating
                 Job         >Relations            Job Evaluation
                 structure   >Responsibilities                          Developing
secondary activities
supporting main                                    Assesment of         Planning
work                                               Performance
                              Job Rotation
                             Job Enrichment

                                      HR-Fig 2.1
Steps in Job Analysis:
Step-1: Collection of Background data:
Step-2: Selection of Representative position to be analyzed:
Step-3: Collection of JA data:
Step-4: Job Description:
    Job identity:
   This includes job title, location, and occupational code, Alternative name in use,
   name of the division, department and unit where it exists.
    Job Summary:

   This gives a quick explanation of the contents of a job, its hazards or difficulties
   and discomforts.
    Duties Performed:
   It describes the responsibilities of a worker in regard to custody of money,
   supervision of other workers, training of subordinates.
    Relation with other jobs:
   This gives an extended view of the job. It is possible to show a fact figure of
   personnel to supervise.
    Supervision given or taken:
   This is helpful to locate the job in the job hierarchy.
   Machines, Tools, Equipments:
    Types of machineries and materials to use.
    Condition of work:
   Location- Factory / Office / Inside / Outside / underground / solitary place.
   Time – Day / Night / Overtime
   Posture – Standing / Sitting / Stopping / Climbing / Walking / Reaching / Lifting
   Speed – Quick / Moderate / Slow
   Accuracy – Coarse / Fine / Exacting
    Health Conditions:
   Infrastructure – Ventilation / Illumination
   Physical Strain – Nerve strain / Eye strain / Physical strain
   Pollution – Moisture / Heat / Dust / Humidity / Fumes / Acids / Dirt / Noise
   Accidents - Physical hazards

Step-5: Job Specification:
It is process to convert the job description statements into job specification. It is a
written statement, which specifically mentions what personal qualities, traits, skills
and background is necessary for getting the job done. These are guideline in hiring
of employee and job evaluation. These specifications relates to;
     (a) Physical characteristics:
This includes health, strength, endurance, age-range, body size, height, weight,
vision, poise, eye, hand and foot coordination, motor coordination, color
     (b) Psychological characteristics:
Social aptitude, which includes manual dexterity (skillfulness), ingenuity, judgment,
resourcefulness, analytical ability, alertness etc;
     (c) Personal Characteristics:
Personal appearance, Good and pleasing manners, Emotional stability,
Aggressiveness or Submissiveness, Extroversion or Introversion, Leadership,

Cooperativeness, Initiative and drive, Adaptability, conversational ability, etc. comes
under this.
   (d) Responsibilities:
This includes supervision of others, Responsibility on job and job structure,
Responsibility for own and others safety, Generating confidence and trust,
Preventing any loss, etc.
   (e) Demographic features:
Other nature of the potential candidate like age, sex, education, experience,
language ability etc

Manpower planning process:

 Succession Strategy
 Staff Development Strategy
 Recruitment Strategy
 Redundancy Strategy

                               CORPORATE OBJECTIVES

                          IDENTIFICATION OF WORK LOAD

                        ASSESS MANPOWER REQUIREMENT

Succession Plan                   Employee Turn over            Employee Development

                                  Shortage OR Surplus

                                - Succession
                                - Staff Development
                                - Recruitment
                                - Redundancy
                           Top Management Review
                             Finanacial Clearance

                            Management Approvals
                                                               Evaluation & Control
                                Action Plans

Recruitment Process:
1. Planning
2. Strategy development
3. Searching
4. Screening
 5. Evaluation and control

      HR Planning            Recruitment           Selection              Placement

              Developing               Search                   Evaluation

                                                               Up gradation
                                  Staff Research
                                  Job Posting

                                  Employee Referrals

                                                                  Forwarding to

Selection Procedures:
1. Reception of applicant – Preliminary interview or screening
2. Application Bank – A fact finder, which helps one in learning about an applicant‟s
background and life history.
3. Interview - A well conducted interview to explore the facts and get at the attitudes
of the applicant to the job.
4. Physical examination – As health and stamina are a vital factor for work.
5 Psychological tests – To explore the surface area and get an objective look at a
candidate‟s stability for a job.
6. Reference check
7. Final selection approved by higher authority and communication of the decision to
the candidate.

                    Reception of Application

                                    Preliminary Interview

                                         Application Bank

                                                       Psychological test
   Unfavorable General Impression

                                      Unfavorable Test Results
                                      Unfavorable Impression

                                                                                         Background Investigation                              Waiting List
                                       Unfavorable Data

                                                                   Unfavorable History

                                                                                             Poor Performance

                                                                                                                Final Selection

                                                                                                                        Physical Examination

                                    Negative Decision                                                                           Placement

Training and development, training methods, placement, induction,
wage and salary administration

Training Need:
   1)     To increase productivity:
   2)     To improve quality:
   3)     To meet the demand of future personnel:
   4)     To improve health and safety:
   5)     Obsolescence prevention:

Training Methods:

                               Classification of Training Methods

  a) On the Job          c) Demonstration   d) Simulation    f) Classroom methods
         b) Vestibules       Examples               e) Apprenticeship        g) Others

             Lectures Case studies Conference Role plays Program Instructions


                                                              Audio Visual


   1)      On-The-Job-Training (OJT):
              Coaching
              Understudy
              Apprenticeship
              Job Rotation
              Special Assignments
              Demonstration

                Sample problem etc.
    2)      Vestibule Training (Training centre training):
    3)      Demonstration and Examples (Training by seeing):
    4)      Simulation:
    5)      Off-the-job OR Classroom Training:
             Lectures:
             Conferences:
a. Directed conference - Here instructor explains the fact, principles before hand and
guide the trainees for the same.
b. Training conference - Here Instructor makes group to express their views,
practices and knowledge.
c. Seminar conference - Here discussion is bound to reach at a decision through
explanation of the trainee.
        Group Discussion:
        Case Studies:
        Role Playing:
        Programmed Instructions (Teaching by Machine Methods):
        Laboratory Training:
Methods of Executive Development:
        The Coaching Method:
        Job rotation:
        Under Study:
        Participation in deliberation of the Board and Committees:

         The Case Study:
         Incident Method:
         Project:
         In-Basket Method:
         Business or Management Game:
         Sensitivity, Laboratory or T-Group Training:
         Grid Training:
Wage and Salary Administration:
1. Subsistence theory: Its also known as “Iron law of wage” – by David Ricardo –
Attractive pay system attract the best brain and when they procreate wage rate

2. Wage fund theory: By Adam smith – It says wage comes from extra fund available
with the organization – High fund high salary and vice versa
3. The surplus value theory of wage: By Karl Marx – It see labor as a product-
payment for the product should be as per the use of it
4. Residual claimant theory: By Francis A. Walker – Out of four main factor of
production (Land, labor, capital and entrepreneurship) payment for labor should be
the first – remain we can utilize in other factors
5. Marginal productivity: By Philips Henry Wicksteed and John Bates Clark – Here
wage depend on the supply and demand of job market – Employer gets most
6. Bargaining theory of wage: By John Devidson – Wage depends on bargaining
power of the worker
Wage Plans:
 Fair compensation package
 Wage differentials
   1.     Occupational differentials:
   2.     Inter – firm differentials:
   3.     Regional differentials:
   4.     Inter – industry differentials:
   5.     Personal wage differentials:
 Balanced compensation package
 Wage negotiation and agreements
Grievance Handling:
Steps in Grievance mechanism:
 Conference: With Employees, Supervisors and Union Rep.
 Conference: With Middle management and Middle union leadership
 Conference: With Top management and top union leadership
 Arbitration
Steps in Grievance Handling:
 Receiving the complaint
 Defining the nature of dissatisfaction
 Getting the facts
 Analyzing and deciding
 Reply to the complaints
 Following up0
Disciplinary action:
 Oral or written warnings
 Loss of privileges
 Deferring annual increment
 Lay off , demotion, discharge
Welfare Aspects:

Performance Appraisal:
To assess present performance
To identify strengths and weaknesses
To provide feedback to improve
To provide rewards for better performance
To motivate employees
To Punish
To identify the gap in performance (T&D need)
To identify employee potential
To built a successive plan
Steps in Performance Appraisal:
Creating and setting performance standard
Setting measurable goals
Measure present performance
Comparing and appraising the present level of performance
Discussing the appraisal plan with employees
Identify and indicate the corrective actions


    1. Straight Ranking              1. Assessment center
    2. Paired comparison             2. Appraisal by result or MBO
    3. Man to Man comparison         3. Human asset accounting method
    4. Grading                       4. Behaviorrally anchored rating scale
    5.Grapjic or linear scale
    6. Forced choice description
    7. Forced distribution
    8. Checklist
    9. Free essay
    10. Critical incident
    11. Group Appraisal
    12. Field review

Job Evaluation
Job evaluation is a formal process by which management creates a job worth
hierarchy within an organization. It is a technique of placing each job within its
order of importance in the organization to establish its proper compensation.
“Job evaluation is the process of determining the relative worth of various jobs within the
organization, so that differential wages may be paid to jobs of different worth”, Wendell

Uses of Job evaluation
 Selection
 Compensation
 Training
 Performance evaluation

Objectives of Job evaluation
  1. To secure and maintain complete, accurate and impersonal description
     of each distinct job or occupation in the entire organization
  2. To provide a standard procedure for determining the relative worth of
     each job
  3. To determine the rate for each job that is fair and equitable between
     similar jobs in the industry or firm.
  4. To provide information for the other areas of HR Development like
     Selection, Training and development, performance evaluation,
     promotion, separation etc.

Basic steps involved in Job evaluation
National institute of Personnel Management, in India, has laid down the
following steps which should be taken to implement a job evaluation program:
    a. Analyze and prepare job description
    b. Select and prepare a job evaluation plan
    c. Classify jobs
    d. Install the program
    e. Maintain and update the program
Methods of Job evaluation
    A. Non-Analytical or Non-quantitative
          a. Ranking method
          b. Job classification or Job grading
    B. Analytical or Quantitative
          a. Point System
          b. Factor comparison system

Ranking Method:
This system arranges all the jobs in an organization in the order of their
importance from the simplest to hardest and ranks are given. This method may
not use job description, though it is useful.
             Advantages                           Disadvantages

      Simple.                                 Difficult to administer as the
      Very effective when there are            number of jobs increases.
       relatively few jobs to be               Rank judgments are subjective.
       evaluated (less than 30).               Since there is no standard used
                                                for comparison, new jobs would
                                                have to be compared with the
                                                existing jobs to determine its
                                                appropriate rank. In essence, the
                                                ranking process would have to
                                                be repeated each time a new job
                                                is added to the organization.

                        Ranking of college Personnel
Rank                  Job/Occupation                   Pay scale range
1                     Professor                        35000 – 45000
2                     Assistant Professor              30000 – 34000
3                     Senior Lecturer                  22000 – 29000
4                     Lecturer                         10000 – 21000
5                     Librarian                        08000 – 15000
Job Classification Method:
Here, jobs are classified into an existing grade/category structure or hierarchy.
Each level in the grade/category structure has a description and associated job
titles. Each job is assigned to the grade/category providing the closest match to
the job. The classification of a position is decided by comparing the whole job
with the appropriate job grading standard. To ensure equity in job grading and
wage rates, a common set of job grading standards and instructions are used.
               Advantages                             Disadvantages

      Simple.                                 Classification judgments are
      The grade structure exists               subjective.
       independent of the jobs. So,            The standard used for
       new jobs can be classified more          comparison (the grade/category
       easily than the Ranking Method.          structure) may have built in
                                                biases that would affect certain

                                               groups of employees (females or
                                              Some jobs may appear to fit
                                               within more than one

                      Grading of Clerical Department
Grades                          Description of Job Classification
Clerk Grade II            Pure routine concentration, speed and accuracy,
                          works under supervision; may or may not be held
                          responsible for supervision.
Clerk Grade I             Specially skilled for the job by having an exhaustive
                          knowledge of the details. May carry experience.
                          Usually carry the responsibility for supervision.
Senior Clerk              Must have the characteristics of Clerk Grade II and
                          assume more responsibilities. 5 - 10 years of
Head Clerk                Minimum 10 years experience in the field. Extensive
                          knowledge and uses creativity on the job. Takes the
                          responsibility to supervise Lower grade clerks.
The Point System:
This is one of the analytical methods that use quantitative evaluation for
categorizing jobs or occupations. A set of compensable factors are identified
as determining the worth of jobs. Typically the compensable factors include the
major categories of: Skill, efforts, responsibility and job conditions. They are
further categorized as per the need of job or opportunity like:
1. Skill
          o Experience
          o Education
          o Ability
2. Responsibilities
          o Fiscal
          o Supervisory
3. Effort
          o Mental
          o Physical
4. Working Conditions
          o Location
          o Hazards
          o Extremes in Environment

                        An example on point system
        Factor             Check the correct item for each factor
    Education            PhD           P.G.   Degree    SSC
                          10             8       4       2
    Experience        Over 12        10 to 12 5 to 10 Below 5
                       years          years    years   years
                          12            10       7       3
       Mental           Very
       Effort           High            High        Average         Low
                          10              8            6             4
    Technical           Very
     Skills             High            High        Average         Low
                          15             10            5             2
    Managerial          Very
      Skills            High            High        Average         Low
                          12             10            6             2
     Physical           Very
      efforts           High            High        Average         Low
                          10              7            4             2

The Factor Comparison Method:
Under this system, jobs are evaluated by means of standard yardstick of value.
It entails deciding which jobs have more of certain compensable factors than
others. Here a single job may get ranked several times on different factors. For
example, first a job will be ranked on the basis of experience then on education,
then on responsibility involved, and so on.

Job Evaluation: Factor Comparison
                     The hourly rate is divided into pay for each
                     of the following factors:
           Hourly    Pay Pay                          Pay for
           Rate      for    for     Pay for           Working
Job        (Rs.)     Skill Effort Responsibility Conditions
Secretary    50.00      25       10               10            5
Assistant    70.00      30       20               15            5
Supervisor 120.00       60       25               15           20
Manager    200.00       40       70               70           20

              Advantages                                Disadvantages

      The value of the job is                    The pay for each factor is based
       expressed in monetary terms.                on judgments that are
      Can be applied to a wide range              subjective.
       of jobs.                                   The standard used for
      Can be applied to newly created             determining the pay for each
       jobs.                                       factor may have build in biases
                                                   that would affect certain groups
                                                   of employees

Organizational culture and organizational climate
Organizational culture comprises the attitudes, values, beliefs, norms and customs of
an organization. Culture may result in part from senior managers' beliefs, but it also
results from employees' beliefs. It can be supportive or unsupportive and positive or
negative. It can affect employees' ability or willingness to adapt or perform well.
Organizational climate is the approach of individuals to organizational activities as a
whole. Organizational climate is said to be favorable when the plans are drawn and
decisions are taken after proper consultation with those who are related to the plan
or decision.