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Acknowledgement

The document provides an overview of human resource management (HRM). It defines HRM as the process of managing people in an organization by developing and maintaining a motivated workforce through sound recruitment, training, compensation, and labor relations practices. It outlines the key functions of HRM as managerial (planning, organizing, directing, controlling), operative (procurement, development, compensation, integration, maintenance), and advisory. The functions of HRM work to acquire, develop and maintain a skilled workforce to achieve organizational objectives.

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0% found this document useful (0 votes)
144 views

Acknowledgement

The document provides an overview of human resource management (HRM). It defines HRM as the process of managing people in an organization by developing and maintaining a motivated workforce through sound recruitment, training, compensation, and labor relations practices. It outlines the key functions of HRM as managerial (planning, organizing, directing, controlling), operative (procurement, development, compensation, integration, maintenance), and advisory. The functions of HRM work to acquire, develop and maintain a skilled workforce to achieve organizational objectives.

Uploaded by

Parshant Garg
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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ACKNOWLEDGEMENT

To the accomplishment of any feat is required a motivation and an extreme of guidance and knowledge. Behind the success of completion of our project there are three number of people whom we would like to thank. With immense pleasure and keep sense of gratitude we would like to express our sincere thanks to MR. SANJEEV MAHANT for providing us the necessary infrastructure, guidance and pain taken and for his resourcefulness which propelled us destiny In the end we would like to thanks all the staff members of OFFICE MANGEMENT AND COMPUTER APPLICATION DEPARTMENT OF KALPANA CHAWLA GOVT. POLYTECHNIC FOR WOMEN, AMBALA CITY for their co-operation

(Roll no. 10002300046) (Roll no. 10002300005)

COMPANY PROFILE
We feel immense pleasure in bringing you out our product range which comprises an extensive range of laboratory and medical equipment virtually for every application in the field of medical education, medical health, medical diagnostics, research institutes, QC laboratories, etc. Keeping in view the demand from our patrons. We have added a vast range of equipments to our list. So that we can fully serve in our mind set, thereby the firm has carved a niche for itself amongst the most prestigious users of these instruments across the length and breadth of India. We have a well equipped quality control laboratory which can establish repeatability of result and precision of tad for bulk supplies volume production of instruments. We can at improving our product constant according to the needs of our customers, thereby providing excellent work manship state of the art technology. H.R. Aggarwal Chairman Our Group Companies m/s unilab microscope mfg. co. pvt. Ltd. 5409, cross road no.3 Ambala Cantt M/S Aditya Lab equipments 5414, cross road No. 3 Ambala Cantt Rajiv Aggarwal Director Dr. Mrs.Swraj Aggarwal Director

HUMAN RESOURCE MANAGEMENT


INTRODUCTION:
Profit maximization, reasonable rate of return to owner and reinvestment in business through satisfaction of customers, maintenance of a satisfied workforce, and creation of good public image are some objective which every organization try hard to achieve. These objectives can best be achieved with the optimum use of all the available resources such as, human, technological, financial and physical resource. Human Resource available to the management, although a part of all the resources, can play vital role in achievement of the objectives. It is through the combined efforts of the people that monetary and other material resources are utilized for organizational objectives. Therefore, it is the human resources, which must be managed with utmost care so that it can contribute its maximum to achieve organizational objectives. According to Leon C. Magginson: The term human resources can be thought of as, The total knowledge, skills, creative abilities, talents and aptitudes of an organisations workforce, as well
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as the value, attitudes and beliefs of the individuals involved. Human resource is a resource like any other natural resource. It means that management can get and use the skill, knowledge, ability etc. through the development of skills, tapping and utilizing them again and again.

Meaning of Human Resource Management:


Many terms used for HRM such as personnel or staff management, personnel administration, Labour relations, industrial relations etc. in simple sense human resource management mean employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organisation requirements. Human resource management is that process of

management which develops and manages the human elements of an enterprise. It is not only the management of skills but also the attitudes and aspirations of people. When individuals come to a work place, they come with not only technical skills, knowledge, experience etc., but also with their personal feelings, perception, desires, motives, attitude, value etc. So HRM means management of various aspects of human resource.
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An important element of human resource management is the Humane Approach while managing people. This approach helps the manager to view his people as an important resource. It is an approach in which manpower resources are developed not only to help the organisation in achieving its goals but also to the self satisfaction of the concerned persons. On the one hand this approach focuses on human resource development, and on the other to an effective management of people. It focuses on the human aspect of individual worker and his aspirations and needs.

Definitions:
Human Resource Management has been defined differently by different writers. Some definitions are produced below:-

According

to

Flippo, is the

Human

resource

management development, maintenance resources to organizational

planning,

organizing, integration, of human are individual,

directing and controlling of the procurement, compensation, and the and reproduction end societal that

objectives

accomplished.

According training, employees, relations, concerns.

to is and

dessler, the

Human of and to

resource acquiring, labour fairness

management

process

appraising health,

compensating their and

attending safety

Functions of HRM:
The functions of HRM can be broadly classified into three categories, viz., 1. 2. 3. 1. Managerial Functions Operative Functions Advisory Functions Managerial Functions:

All the basic functions of the organisational management are performed by Human Resource manager which are as follows: (a) Planning: Planning is determination of future course of action. According to Allen it is a trap laid to capture the future.
6

Planning is determination of personnel programmes and changes in advance that will contribute to the organizational goals. Planning is necessary to determine the goals of the organisation and lay down policies and procedures to reach the goals. It involves planning of human resources requirements, recruitment, selection, training, development etc. The process of planning involves three steps,

Firstly, a supply and demand forecast for each job category is made. Secondly, net shortage and excess of personnel by job category are projected for a specific time horizon. Finally, plan are developed to eliminate the forecast shortages and excess of particular categories of human resources. (b) After Organising: a course of action has been determined an

organisation should be established to carry it out. According to Koontz and O Donnell , organisation is the establishment of authority relationship with provision for coordination between them, both vertically and horizontally in the enterprise structure.
7

Organisational activities: (i) (ii)

structure

basically

includes

following

Grouping of personnel activity logically into functions or positions. Assignment individuals. of different functions to different

(iii) Delegation of authority according to the tasks assigned and responsibilities involved. (iv) Coordination of activities of different individuals. (c) Directing

The basic function of personnel management at any level is motivating, commanding, leading and activating people. Directing is involved with getting person together and asking them to work willingly and effectively for the achievement of designated goals. Directing deals not only with the dissemination of orders within an organisation units and departments, but also with the acceptance and execution of these orders by the employees. Securing acceptance and execution generally requires a certain amount of motivation of individuals and groups. Otherwise, the actual performance level may be well below that which is desired. The decision are taken by the top management, but only after consultation with personnel department. (d) Controlling:
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Controlling involves

checking, regulating and verifying

whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions. It is through control that actions and operations are adjusted to pre determined standards; and its basis is information in the hands of managers. By check , analysis and review, the personnel department assists in realizing the personnel objectives. Auditing training programmes, analysing labour turnover records, directing moral surveys, conducting separation interviews, interviewing new employees at stipulated intervals, comparing various features of the programme with other organisation programmes in the area, industry and nation are some of the means for controlling. OPERATIVE FUNCTIONS: Operative function includes specific activities which are the responsibility (i) (ii) (iii) (iv) (v) of the human resource / personnel department. These functions include: Procurement Function Development Function Compensating Function Integration Function Maintenance Function
9

Procurement Function: Procurement function is mainly concerned with securing and employing proper kind and number of personnel necessary to accomplish an organisations goals. It deals with the following activities: (i) (ii) Determination of manpower requirements, Recruitment , and placement tests, (comprising interviews, activities medical screen and hire personnel including application forms, psychological check-up, reference calling), (iv) Induction, (v) Follow-up, (vi) Transfer, (vii) Lay-offs, discharge and separation, etc. Development Function: It is mainly concerned with the process of improving, moulding and changing the skills, knowledge, creative ability, attitude, aptitude, values, commitment etc. through training so that job performance is properly achieved. This function undertake the following activities: (i) Drafting and directing training programmes for all level of employees.
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(iii) Selection

(ii)

Arranging for on the job, office and vestibule training.

(iii) Holding seminars and conferences (iv) Providing for educational and vocational counseling and appraising employee potential and performance. Compensation Function: Each and every employee has to be paid adequate compensation for the services he renders to the organisation. The compensation is one of the major factors of motivation to the employees, which has great bearing on the performance of the employees and inturn, the performance of the organisation. This function is concerned with securing adequate and equitable remuneration to personnel for (i) (ii) their contribution to the attainment of organistional objectives. It includes following functions: Wage surveys Job classification

(iii) Job analysis (iv) Job descriptions (v) Wage structure, wage plans and policies. (vi) Incentive and profit sharing plans. Integration Function: Integration is concerned with the attempt to effect a reasonable reconciliation of
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individual,

societal,

and

origanisation interests. It rest upon the premise that significant overlapping of interest do exist in the organisation in such a programmes as job enlargement, job evaluation, variable compensation plans. The greater the overlap, the more productivity would coincide with the employee satisfaction. Managerial integration relation activities of human that bring about and a reasonable organisation Human accidents, while

resources tend and to

the

objectives, are termed as Human Relations. programme turnover decrease absenteeism, operating errors

simultaneously raising morale, quality and productivity such programmes also prevent undesirable behaviour such as sabotage, insubordination, strikes, etc.

Maintenance Function: Maintenance function is concerned with working conditions and welfare of the employees. The employees must be provided with good working conditions so that they may like their work and work place and maintain their efficiency. Safe and hygienic working conditions certainly influence the motivation and morale of the employees. These includes:

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(i) (ii)

Measure taken for health , safety and comfort of the work force. Social and physical well being of the employees which includes, provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities.

ADVISORY FUNCTIONS: Human Resource Manager has specialized education and training in managing human resources. He is an expert in his area and so can give advise on matter relating to human resources of the organisation. He offers his advise to: 1. Top Management: Personnel manager advises the top management in formulation and evaluation of personnel programmes, policies and procedures. He also gives advice for achieving and maintaining good human relations and high employee morale. 2. Department Heads: Personnel manager offers advice to the heads of various departments on matter such as manpower planning, job analysis and design, recruitment and selection, placement, training, performance appraisal etc. NATURE OF HUMAN RESOURCE MANAGEMENT

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The nature of human resource management has been highlighted in the following features:1. Integral part of the process of management: resource management is embedded in the Human

organisational structure of and enterprise and an integral part of the process of management itself. Human resource management can not be separated from the basic management function. This function is performed by all the managers throughout the organisation rather than by the personnel department only. 2. Comprehensive function: The main function of

human resource management is to manage people at work. It is a comprehensive function which covers all types of people at all levels in the organisation. In other words, it applied to workers, supervisors, officers, managers and any other type of personnel in the organisation. 3. Pervasive function: human resource management

is comprehensive as well as pervasive. It is inherent in all organisations and at all levels. It is not confined to industry alone. It is equally useful and necessary in government , armed forces, sports organisations, and the like. It applied to all the functional areas e.g. production marketing, finance, research etc. Each and every manager is involved with human resource function.
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4.

People Oriented: human resource management is

people oriented function and is concenrned with employees as individuals as well as groups. It deals with human relationship within an organisation. It is a process of finding out the optimum arrangement between individuals, jobs, organisations and environment. It is concerned with all categories of personnel from top to the bottom of the organisation. 5. Based on Human Relations: Human resource

management is concerned with the motivation of human resources in the organisation. The human beings can not be treated as other physical factors of production. Therefore, human resource management: (i) Stresses the solution of personnel problems.

(ii) consider every employee as and individual so as to provide service and programmes to facilitate employee satisfaction and growth (iii) Attempt to obtain willing cooperation of the employees for attainment of desired objectives. (iv) Considers employees. 6. the emotions and sentiments of the

Continuous Process:

Human resource management

is a continuous process. It is not a one function rather it is never ending exercise.


15

7.

Science as well as Art: Human

resource

management is a science as it constrains an organised body of knowledge consisting of principles and techniques. It is also an art. Handling people is one of the most creative arts. It involves the application of theoretical knowledge to the problems of human resources. Thus it is science as well as art. 8. Recent Origin: human As compared to other areas of resource management is management,

comparatively a young discipline. It started in the later part of nineteenth century. 9. Interdisciplinary: In modern time, human

resource management has become highly specialized job. Moreover it is not an isolated subject, it is interdisciplinary. It involves application of knowledge drawn from several like sociology, anthropology, psychology, economics etc. SCOPE OF HUMAN RESOURCE MANAGEMENT According to Dale Yoder, the scope of human resource management consists of the following activities:(i) Setting policy general for and specific and management and relationship establishing

maintaining a suitable organisation for leadership and cooperation.


16

(ii)

Collective

bargaining,

contract

negotiations,

contract administration and grievances. (iii) Staffing the organisation, finding, getting and holding prescribed types and number of workers. (iv) Aiding the self-development of employees at all levels, providing opportunities for personnel development and growth as well as for requisite skill and experience. (v) Incentivating, developing and and maintaining manpower motivation for work. (vi) Reviewing auditing management in an organisation. (vii) Industrial relations research, carrying out studies designed o explain employment behaviour and thereby effecting improvement in manpower management. Indian Institute of Personnel Management has

described the scope of human resource management in to the following aspects:(i) Personnel Aspect: This aspect is comprised of the placement, induction, promotion, transfer,

activities concerned with manpower planning, recruitment, selection, demotion, separation, layoff, retrenchment, training and

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development, incentives and motivations, wage and salary administration. (ii) Welfare Aspect: This is concerned with the conditions of work, and amenities such as the provision of canteens, crches, housing, transport, medical, education, recreational and cultural facilities, and health and safety provisions. (iii) Industrial Aspect: Industrial aspect is includes activities which are concerned with trade union negotiations, settlement of disputes, grievance handling, disciplinary action, collective bargaining, joint consultation, benefits and services such as insurance, unemployment security, sickness, leave, loan fund etc. IMPORTANCE OF HUMAN RESOURCE MANAGEMENT The importance of human resource management can be discussed from three standpoints, viz.. 1. Social Significance: Proper management of personnel enhances their dignity by satisfying their social needs. This it done by:(i) Maintaining a balance between jobs available and the jobseekers, according to the qualifications and needs. (ii) Providing suitable and most productive employment, which might bring them psychological satisfaction.

18

(iii) Making maximum utilization of the resources in an effective reasonable (iv) Eliminating resource, (v) 2. manner and paying in the employee to the compensation waste through or proportion use of of

contribution made by him. improper human normal conservation their

energy and health. By helping people make their own decisions that are in their interests. Professional Significance: By environment it promotes providing team work healthy in the working (i) (ii)

employees. This is done by:Maintaining the dignity of the employee as a Human Being. Providing maximum opportunities for personal development. (iii) Providing healthy relationship between different work groups so that work is effectively performed. (iv) Improving the employees working skill and capacity. (v) 3. (i) (ii) Correcting the errors of wrong postings and proper reallocation work. Signification for individual Enterprise: Creating right attitude among the It employees can help the organisation in accomplishing its goals by :through effective motivation Utilizing effectively the available human resources
19

(iii) Securing willing cooperation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualisation.

Role of Personnel Function in an Organisation:


The human resource department or personnel department is set up under the leadership of human resource manager or personnel manager. The human resource manager performs the basic functions of the management such as Planning, organising, directing and controlling. At the same time he performs certain operative functions such as recruitment, selection, training, placement etc. He has to play multiple roles to bring efficiency in managing the human resources and achieving human relations in the organisation. In addition to the managerial and operative functions, some of the important roles of the human resource manager in an organisation are as follows: 1. Advisory Role: The personnel manager advises top

management on effective utilisation of human resources. As a specialist the personnel manager advises the head of different functional department on various aspect of human resource management e.g. manpower planning, recruitment,
20

selection, training and development, performance appraisal of individual and group behaviour. 2. Counselling role: The personnel manager plays the

role of a cousellor with the employees also. He discusses the various problems of the employment relating to work, career, their supervisors, collegues, health, family, financial, social etc. suggest them means to minimize and over come those problems. 3. Role of a Change Agent: Personnel manager

works as a change agent regarding personnel areas. To be an effective consultant, he should be familiar with the needs and changing environment of the business. He should be familiar with the needs and changing environment of business. He should initiate and spearhead necessary improvement in human resource policies. As a consultant, he can provide necessary infrastructure and support for organisation development. He helps in introducing and implementing major institutional changes in origanisation. 4. the The conscience role: humanitarian approach. While playing the conscious He should advise the

role, the personnel manager informs the management about management about the moral and ethical obligations towards the employees.
21

5.

Mediators Role:

The personnel manager often

acts as a mediator in the organisation. Whenever there is a friction between two employees, two groups of employees, superior and subordinates and employees and management, the personnel manager has to act as a mediator, so as to maintain industrial harmony. 6. Liaison Role: the personnel manager acts as a

representative of the organisation so as to give an overall picture of the organizational operations to the employees particularly in case of industrial disputes or grievance redressal. Similarly, he acts as employees representative in representing their problems to the management particularly in concerns where trade unions are not there. 7. legal Role: The personnel manager plays this fire cases, collective bargaining, joint

fighting role of grievance handling settlement of disputes, handling disciplinary consultation, interpretation and implementation of various labour laws, contracting lawyer regarding court cases, filling suits in labour courts, industrial tribunals, civil courts and the like. 8. Welfare Role: under section 49 of the Factories Act, a

welfare officer has to be appointed in specific factories.


22

Personnel manager is expected to be the welfare officer of the company. As a welfare officer he provides and maintains canteen, hospitals, crches, educational institutions, clubs, libraries, conveyance facilities, cooperative credit societies, consumer stores etc. 9. Controller Role: the personnel manager assists the

line managers in effective implementation of personnel policies and programmes. His advice and service is essential for monitoring and controlling the progress. As an arm of the top management, the personnel manager ensures that the personnel policies and procedures approved and adopted by the management are being consistently carried out in all the departments. 10. Human Relation Role: Personnel manager is

supposed to be an expert in human relations. He is expected to improve productivity by fulfilling the economic, social and psychological needs and aspirations of employees. Personnel manager also has to meet the challenge of a fast changing post industrial society DIFFERENCE MANAGEMENT BETWEEN HRM AND PERSONNEL

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Some people do not make a distinction between HRM and personnel management. Both are taken to include identical functions. Some even say that HRM is a dignified term for personnel management. They consider HRM as old wine in a new bottle. However, there are thinkers who feel that HRM is much more than personnel management. The very philosophy of human resource management is different from that of personnel management as discussed below:(i) Focus: Organisational interest is important in

personnel management but, HRM projects the development of individuals in accordance with their needs and aspirations so that the individuals would be motivated to make their best contribution towards the accomplishment of the common goals. While personnel management was designed to respond to the organizational objectives like profit maximization, HRM visualized human element of enterprise as important resource. Hence, development of human resources is the most crucial aspect of human resource management. (ii) Philosphy: HRM is primarily a philosophy, an

attitude, an approach, a policy and a practice; while personnel management is viewed as a functional area of management. HRM represents the humanisation of

24

management, while personnel management is concerned with managing personnel. (iii) Nature of Function: Personnel management has

been traditionally viewed as a staff function headed by personnel manager who is responsible for procurement, training, compensation and appraisal of personnel. On the contrary, HRM is a part and parcel of every line function. Since the primary job of every manager is leading and actuating, HRM can not be isolated from leading and actuating. However, the traditional personnel function included in HRM. Thus HRM includes not only manpower planning, procurement, training, compensation and appraisal etc, but also career planning and development, counseling, motivation and potential appraisal. (iv) Pervasiveness: HRM is the concern of all

managers from top to bottom in an organisation, while personnel management is mainly the concern of the personnel manager. (v) Motivation: is HRM concentrates more on motivation, and job satisfaction, concerned while with personnel selection, primarily

morale-boosting management

recruitment and appraisal of personnel.

25

(vi) Team Work: HRM is more concerned with working with people, team building and team work; while personnel management is interested in the orderly way of administration of personnel policies and programs. (vii) Techniques: Traditionally personnel manager

operated through pressure tactics and coercive measures including threats of punishments . but HRM aims to achieve workers cooperation through team building, mutual understanding and motivation. HRM is, in fact , an integrated approach to management of human resources in the organisation.

Human Resource Planning


Introduction:
Human Resource planning is predicting and preparing for changes in an organisations workforce. This includes retirements, changes in job responsibilities changes in required skill sets of incumbents, and changes arising due to the expansion programme. Human resource planning is the most valuable asset of and organisation. The production and the performance of an organisation depend upon the quality and quantity of of the human resources 26 Human Resource

Planning is the strategy of procurement, development, allocation and utilisation of enterprises human resources.

Human Resource Planning Defined:


Human Resource Planning is the process of determining manpower requirements and means for meeting those requirements in order to carry out the integrated plan of the organisation Coleman Human resource planning is the strategy for acquisition, utilization, improvement and preservation of an enterprises human resources. It relates to establishing job specifications or quantitative requirements of jobs determining the number of personnel required and developing sources of manpower

Need for Human Resource Planning


Human Resource Planning is viewed as foreseeing the human resource requirements of an organisation and supply of human resources. Its need can be assessed from the following points:-

1.

Replacement of Persons:

A large number of persons are to be replaced in the organisation because of retirement, old age, death, physical and mental ailments

27

etc. there will be a need to prepare persons for taking up new positions.

2.

Labour Turnover:

Human Resource Planning is also essential because of frequent Labour turnover which is unavoidable and beneficial because it arises factors which are socially and economically sound such as voluntary quits, discharge, marriage, promotions, or factor such as seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the work force in many organisation.

3.

Expansion Plans:

When ever there is plan to expand or diversify the concern then more persons will be required to take up new positions. HRP is essential under these situations.

4.

Technological Changes:

The business is working under changing technological environment. There may be a need to give fresh training to personnel. In addition, there may also be need to infuse fresh blood into the organisation. HRP will help in meeting the new demands of the organisation.

5.

Assessing Needs:

Human resource planning is also required to determine whether there is any shortage or surplus of persons in the organisation. If there are less persons than required it will adversely affect the work, on the other hand if more persons are employed than the requirement then it will increase labour cost etc. HRP ensures the employment of proper workforce.

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Human Resource Planning Process:


Human Resource Planning process is regarded as multi step process including various issues such as: I. II. III. IV. V. VI. Deciding Goals and Objectives Forecasting Inventory Reconciliation Action plan Feedback and Evaluation

Deciding Goals and Objectives: The objectives may be short


term (i.e. for one year) or can be long term (i.e. more than one year). Human Resource Planning requires that we gather data on the organisational goals and objectives. One should understand where the Organisation wants to go and how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the organisation. They stern from shorter and medium term objectives and their conversion into action budgets At the strategic planning level, an organisation conducts a number of assessments to determine its long-range objectives, usually for up to five years. At this level, the human resources planning process assesses such issues as strategic plan implications, factors external to an organisation, and the internal supply of employees over the longrun. Human resources collects data and information to analyse and assess these types of issues, but does not make detailed projections. Data and information are collected through scanning internal and external environments of an organisation.

29

Internal Scanning Internal scanning explains and documents the


makeup of the current supply of the workforce and the human resources activities within an organisation. It looks at the composition and diversity of the workforce, including what type of skills and jobs are available, what type of human resources policies and programs already exist, what is the culture and structure of the organisation, and what are the trends in regard to tenure, turnover rates, etc. In addition, consideration should be given to such issues as prevailing personnel problems, managerial attitudes concerning human resources, etc.

External

Scanning
in the

External external

scanning

tracks

trends

and their

developments

environment,

documenting

implications for human resources management and ensuring they receive attention in the human resources planning process. This assessment looks at: How the economy is performing both locally and nationally. How technology is expected to change and how these changes will influence the type and number of jobs available and the skills and education needed for these jobs What the current and future labor market looks like regarding the availability of certain occupations and the people necessary to fill them. The requirements are for current or future government regulations, such as affirmative action and equal employment opportunity or regulations which influence agency-specific programs. Identifying the sources for competition in terms of attracting people (salary, benefit packages, etc.). What overall trends can be identified that could influence an organisation such as the movement towards decentralization and 30

restructuring.

II. Forecasting: The strategic plan eventually breaks down into


operational plans that state specific objectives an organisation wants to accomplish over the next six months to one year. This will, in turn, forecast future human resource needs. The focus for human resources becomes forecasting the number of currently available employees with the appropriate skills and educational levels to meet operational plans. This information is drawn from internal and external assessments, but is further refined for these plans. The forecasting process highlights the supply and demand principle of the model. Strategic and operational plans determine the necessary human resource requirements (demand) needed, while the human resources planning process forecasts the availability (supply) of human resources.

III. Inventory: After knowing what human resources are required in


the Organisation, the next step is to take stock of the current employees in the Organisation. The HR inventory should not only relate to data concerning numbers, ages, and locations, but also an analysis of individuals and skills. Skills inventory provides valid information on professional and technical skills and other qualifications provided in the firm. It reveals what skills are immediately available when compared to the forecasted HR requirements.

III. Reconciliation: Reconciliation identifies those gaps that occur


between supply and demand. This process focuses an organisation on specific human resource issues that need to be addressed. This allows an organisation to move forward with its operational plans. The process of reconciliation helps identify what the major gaps or "sources of pain" are in managing human resources. In addition, through 31

reconciling an organisation is able to develop a sense of urgency and build commitment to action regarding its "sources of pain."

IV. Action Plans: Action plans aims at finding out sources of


labour supply with a view to making an effective use of these sources. it represent programmes and policies needed to address the gaps identified in the reconciliation process. The first thing, therefore, is to decide on the policy should the personnel be hired from within through promotional channels or should it be obtained from and outside source. The best policy is to fill up highers vacancies by promotion and lower level positions by recruitment from the labour market. To be successful and ensure accountability, action plans must outline specific responsibilities, timelines, staff, and financial resources necessary to address those gaps.

VI. Feedback and Evaluation Feedback and evaluation are


critical to the success and effectiveness of the Human Resource planning process. These two mechanisms are ways to retrieve information to evaluate and make adjustments to the process.

Feedback Feedback mechanisms should be designed to retrieve


information so programs and policies can be evaluated to determine how well the process works. This provides input to update strategic or organisational plans. Inadequate feedback mechanisms or plans can cause small problems to grow into large problems that impede the overall process.

Evaluation In implementing evaluation mechanisms, it is important


to first determine what is to be measured. Normally, human resources strategies are measured in terms of implementation or completion of actual programs. But to provide more meaningful information, 32

measures have to be designed to determine the effect the action plans have had on the defined issues. Therefore, it is important to identify specific measures and target levels to be achieved and what the end results should be.

33

Training and Development

What is training?

Training refers to a planned effort by a company to facilitate employees learning of job-related competencies. The goal of training is for employees to

master the knowledge, skill, and behaviors emphasized in training programs, apply them to their day-to-day activities
and

Inputs in T & D

Skills Education Development Ethics Attitudinal changes Decision making skills 34

Training vs. Development 1. Difference Between Training


Training focuses on Development focuses on specific job broad knowledge and knowledge and skill insights that may be that is to be applied in required for adaptation the short run. to environmental demands in the future.

1. Respond to technology changes affecting job requirements. 2. Respond to organizational restructuring. restructuring. 3. Adapt to increased diversity of the workforce. 4. Support career development. 5. Fulfill employee need for growth. growth.

Developing and Conducting Training


1. Determine location and who will conduct the training .
o o

Onsite facilities vs. offsite. Inside training staff vs. outside vendors.

2. Develop training curricula. 3. Select training methods.


o o

Based on job/task analysis and individual needs. Considering learning principles. Consider appropriateness and cost.

35

Principles Principles of of learning learning


Rewards and reinforcement Goal setting Meaningful presentation

Feedback and knowledge of progress

Principles Principles for for successful successful training training

Modelling/ Readiness

Mass vs distributed learning Whole vs part learning

Individual differences Active practice and repetition

Training Methods
1. Classroom Instruction

2. Video and Film


Efficient dissemination of large volume of information. Effective in explaining concepts, theories, and principles. Provides opportunity for discussion. Provides realism. Adds interest. Allows scheduling flexibility. Allows exposure to hazardous events. Allows distribution to multiple sites.
36

3. Computer Assisted Instruction


4. Computer Assisted Instruction with Video


Efficient instruction. Considers individual differences. Allows scheduling flexibility. Allows active practice for some tasks. Allows learner control. Provides immediate feedback to tasks.

5. Simulation

Same as basic CAI. Adds realism. Adds interest. Allows exposure to hazardous events.
Provides realism. Allows active practice. Provides immediate feedback. Allows exposure to hazardous events. High transfer to job. No job interference. Lowers trainee stress. Provides realism. Allows active practice. Provides immediate feedback. High motivation. High transfer to job. Lowers training cost.

6. On-The-Job Training

Types of Training 1. Induction Training 2. Retraining. 3. Cross-Functional. 4. Team Training. 5. Skills Training. 2. Retraining Maintaining worker knowledge and skill as job requirements change due to: 37

Technological innovation Organizational restructuring 3. Cross-Functional Training Training employees to perform a wider variety of tasks in order to gain: Flexibility in work scheduling. Improved coordination. 4. Team Training Training self-directed teams with regard to: Management skills. Coordination skills. Cross-functional skills. 5. Creativity Training Using innovative learning techniques to enhance employee ability to spawn new ideas and new approaches. Creativity Training Methods Analogies and metaphors Using comparisons and finding similarities. Free Association Freely thinking of words linked to specific problems can give insight. Personal Analogy Placing oneself as the source of a problem to gain insight. Mind Mapping Generating issues and drawing lines to identify relationships among the issues. 6. Literacy Training Improving basic skills of the workforce such as mathematics, reading, writing, and effective employee behaviors such as punctuality, responsibility, cooperation,etc. 7. Diversity Training Instituting a variety of programs to instill awareness, tolerance, respect, and acceptance of persons of different race, gender, etc. and different backgrounds. 8. Customer Service Training Training to improve communication, better response to customer needs, and ways to enhance customer satisfaction. 9. SKILLS TRAINING Focus on job knowledge and skill for: Instructing new hires. Overcoming performance deficits of the workforce.

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CONTENTS
S. NO. 1 2 3 4 5 6 7 8 9 10 11 PARTICULARS Acknowledgement Company Profile Introduction Meaning of HRM Functions of HRM Operative Function Advisory Function Nature of HRM Scope of HRM Importance of HRM Role of personnel function in an org.
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PAGE NO. 1 2 3 4 6 9 12 13 15 17 19

12 Human Resource Planning 13 HRP Process 14 Training v/s Development

25 31 33

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