Human Resource Management
System & Function
Made by Rita
Choudhary
Session Objectives
Introduction of HRM
Definition of HRM
HRM functions
To understand
Recruitment &Selection process
Training& Development process
Performance Appraisal process
Pay Roll
Compensation &Benefits
To understand the Main HR Roles & Responsibilities
Introduction
Human resource management is a process of bringing
people and organisation together so that the goals of each
are met .it tries to secure the best from people by winning
their whole hearted cooperation .
In short, it defined as the art of procuring ,developing and
maintaining competent workforce to achieve the goals of an
organisation in an effective and efficient manner.
What is HRM?
Human Resource Management (HRM) is the function within
an organization that focuses on recruitment, management ,
and providing direction for the people who work in the
organization.
It deals with issues related to people such as compensation,
hiring,
performance
development,
safety,
management,
wellness,
benefits,
organization
employee
motivation, communication, administration, and training.
What do HR Managers Do?
Human Resource professionals create systems for managing
employees that support an organizations overall strategy.
To accomplish this they
Analyze and design jobs.
Forecast supply and demand for workers.
Ensure legal compliance.
Implement affirmative action plans.
Recruit and select candidates to fill open positions.
Train and develop employees to meet current and future
job demands
Manage employee performance and career progress.
Develop basic pay structures.
Create incentive plans.
Administer benefit programs.
Assure employees safety and health.
Retain employees.
Improve employee morale.
Reduce turnover and carry out disciplinary actions, all while
applying constantly evolving technology.
HRM Functions
There are seven main functions of HR . .
Manpower planning
Recruitment and selection of employees
Employee education, training and development
Compensation &Benefits (Employee motivation)
Performance Appraisal (Employee evaluation)
Industrial relations
Provision of employee services (safety &Health Benefit)
Manpower planning is the
process of determining
manpower requirements and the means for meeting those
requirements in order to carry out the integrated plan of the
organization.
It is a double edged weapon . if used properly ,it leads to
the maximum utilization of human resources , reduce
excessive labour turnover and high absenteeism , improve
productivity and aid in achieving the objectives of an
organization.
Recruitment &Selection
Recruitment is a process of identifying and hiring best-
qualified candidate (from within or outside of an organization)
for a job vacancy, in a most timely and cost effective manner.
The process begins when applications are brought in and
ends when the same is finished. The result is a pool of
applicants, from where the appropriate candidate can be
selected.
Recruitment cycle
Source of Recruitment
Internal source ..
Transfer
Promotion
Upgrading
Demotion
Retired employee
Retrenched employee
Employee reference
External source
Advertisement (print media ,mass media)
Educational institutions
Placement agencies/outsourcing
Job portals (Naukari .com, monster .com)
Employment exchange
Labour contractors
Unsolicited applicant
Employment at factory gate
Selection involves the series of steps by which the
candidates are screened for choosing the most suitable
persons for vacant posts.
Training & Development
Training is a process of learning a sequence of programmed
behavior.
It is a act of increasing the knowledge and skills of an employees,
for performing a particular job.
Newly recruited employees require training so as to perform their
task effectively.
Instruction , coaching, guidance helps them to handle jobs
completely, without any wastage .
Development is a long -term educational process utilizing a
systematic and organized procedure by which managerial personnel
learn conceptual and theoretical knowledge for general purpose .
Performance Appraisal
Performance appraisal may be defined as a structured formal
interaction between a subordinate and supervisor, that usually
takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as
well as opportunities for improvement and skills development.
Its rates the employees in terms of their performance
It
is
necessary
to
understand
each
employees
abilities,
competencies and relative merit and worth for the organization.
It may be half yearly or yearly report .
360 degree performance appraisal
The
360
degree
appraisal
is
the
appraisal
given
by
peers,
subordinates ,workers , head of the department etc, that means the
appraisal given from all the people working in the organisation .
In short The half yearly or yearly report of work schedule goes from
company to head quarter of all the workers performance is the appraisal
it contains all the promotion ,demotion, and other activities related to
the performance.
Pay Roll
The term 'payroll' encompasses every employee of a company
who receives a regular wage or salary or
other compensation .
Payroll refers to the administration of employees' salaries, wages,
bonuses, net pay, and deductions.
It consist of the employee ID, employee name, date of joining,
daily attendance record, basic salary, allowances, overtime pay,
bonus, commissions, incentives, pay for holidays, vacations and
sickness, value of meals and lodging etc. There are some
deductions such as PF, taxes, loan installments or advances taken
by employee.
Figure: Components of Monthly Payroll
Figure: Components of Annual Payroll
Compensation & Benefits
Compensation is the remuneration received by an employee
in return for their contribution to the organization.
It is an organized practice that involves balancing the work-
employee relation by providing monetary and non-monetary
benefits to employees.
Compensation is an integral part of human resource
management which helps in motivating the employees and
improving organizational effectiveness.
Components of Compensation System
Two types of compensation given by any Organization
Direct compensation
Indirect compensation
Employees Benefits
Benefits in kind (also called fringe benefits, perquisites,
perks) are various non-wage compensations provided to
employees in addition to their normal wage or salaries, Where
an employee exchanges (cash) wages for some other form of
benefit, this is generally referred to as a 'salary sacrifice'
arrangement..
Some of these benefits are:
Housing (employer-provided or employer-paid),
Group insurance (health ,life ,etc.)
Disability income & protection,
Retirement Benefits
Reimbursement,
Seek leave, Vacation (paid and non-paid),
Social security , profit sharing ,funding of education, and other specialized
benefits.
Perk-refer to those benefits of a more discretionary nature. Often, perks
are given to employees who are doing notably well and/or have seniority.
Common perks are
Take home vehicles, hotel stays
Free refreshments, leisure activities on work time (golf etc.), stationary
allowances
HR Roles and Responsibilities in changing Environment
The HR Roles and Responsibilities needs to react to this
basic request by the organization to keep the level of the
satisfaction.
Nowadays, the HRM has to deliver even more. The HR Roles
and Responsibilities have to take the high level recognition
of the organization and they need to be adjusted to make a
full fit.
The HR Roles have to be adjusted to:
keep HRM Function focused on tracking and implementing
new trends in the industry.
keep HRM Function focused on helping the line management
to implement improvements.
keep HRM Function focused on operational excellence.
keep HRM Function responsible for developing the Human
Capital potential in the organization.
The HR Responsibilities have to be adjusted to:
Demonstrate the Line Management the will to keep the
responsibility for the Human Capital costs
keep the competitive advantage on the market (and not just
the job market)
Demonstrate the will to drive the main HR Processes to keep
the organization in the excellent health.
keep HRM Function supporting the Business Strategy to reach
the business initiatives.
keep HRM responsible for the tasks resulting from the
Business Strategy
THANK YOU
