Human Resource Management

We often hear the term Human Resource Management, Relations and Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question what is HRM ? by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the art and science of HRM is indeed complex. We have chosen the term art and science as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.

As outlined above, the process of defining HRM leads us to two different definitions. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and

management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier.

The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach

focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the employment relationship fulfilling for both the management and employees. These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially workforce centered whereas human resource management is resource centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control. Whatever the definition we use the answer to the question as to what is HRM? is that it is all about people in organizations. No wonder that some MNCs (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis--vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives. In conclusion, this article has briefly touched upon the topic of HRM and served as an introduction to HRM. We shall touch upon the other topics that this field covers in other articles.

Each organization works towards the realization of one vision. The same is achieved by formulation of certain strategies and execution of the same, which is done by the HR department. At the base of this strategy formulation lie various processes and the effectiveness of the former lies in the meticulous design of these processes. But what exactly are and entails these processes? Lets read further and explore. The following are the various HR processes: 1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff). 2. Employee remuneration and Benefits Administration 3. Performance Management. 4. Employee Relations. The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Walmart. Lets study each process separately. Human Resource Planning: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and Layoff.

Recruitment: It aims at attracting applicants that match a certain Job criteria.

Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise and potential for a certain job.

Hiring: Deciding upon the final candidate who gets the job. Training and Development: Those processes that work on an employee onboard for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process involves deciding upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in any job and therefore the importance of this process. Performing employees seek raises, better salaries and bonuses. Performance Management: It is meant to help the organization train, motivate and reward workers. It is also meant to ensure that the organizational goals are met with efficiency. The process not only includes the employees but can also be for a department, product, service or customer process; all towards enhancing or adding value to them. Nowadays there is an automated performance management system (PMS) that carries all the information to help managers evaluate the performance of the employees and assess them accordingly on their training and development needs. Employee Relations: Employee retention is a nuisance with organizations especially in industries that are hugely competitive in nature. Though there are myriad factors that motivate an individual to stick to or leave an organization, but certainly few are under our control.

Employee relations include Labor Law and Relations, Working Environment, Employee heath and safety, Employee- Employee conflict management, Employee- Employee Conflict Management, Quality of Work Life, Workers Compensation, Employee Wellness and assistance programs, Counseling for occupational stress. All these are critical to employee retention apart from the money which is only a hygiene factor. All processes are integral to the survival and success of HR strategies and no single process can work in isolation; there has to be a high level of conformity and cohesiveness between the same.

Each organization works towards the realization of one vision. The same is achieved by formulation of certain strategies and execution of the same, which is done by the HR department. At the base of this strategy formulation lie various processes and the effectiveness of the former lies in the meticulous design of these processes. But what exactly are and entails these processes? Lets read further and explore. The following are the various HR processes: 1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff). 2. Employee remuneration and Benefits Administration 3. Performance Management. 4. Employee Relations. The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Walmart. Lets study each process separately. Human Resource Planning: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and Layoff.

Recruitment: It aims at attracting applicants that match a certain Job criteria.

Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise and potential for a certain job.

Hiring: Deciding upon the final candidate who gets the job. Training and Development: Those processes that work on an employee onboard for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process involves deciding upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in any job and therefore the importance of this process. Performing employees seek raises, better salaries and bonuses. Performance Management: It is meant to help the organization train, motivate and reward workers. It is also meant to ensure that the organizational goals are met with efficiency. The process not only includes the employees but can also be for a department, product, service or customer process; all towards enhancing or adding value to them. Nowadays there is an automated performance management system (PMS) that carries all the information to help managers evaluate the performance of the employees and assess them accordingly on their training and development needs. Employee Relations: Employee retention is a nuisance with organizations especially in industries that are hugely competitive in nature. Though there are myriad factors that motivate an individual to stick to or leave an organization, but certainly few are under our control. Employee relations include Labor Law and Relations, Working Environment, Employee heath and safety, Employee- Employee conflict management,

Employee- Employee Conflict Management, Quality of Work Life, Workers Compensation, Employee Wellness and assistance programs, Counseling for occupational stress. All these are critical to employee retention apart from the money which is only a hygiene factor. All processes are integral to the survival and success of HR strategies and no single process can work in isolation; there has to be a high level of conformity and cohesiveness between the same.

HOW JOB ARE DESIGNED

Policy Sound recruitment policy calls for adopting scientific processes of recruitment, i.e. those techniques, which are modern and scientific. Unless a company adopts a suitable recruitment policy, it may not be possible for the company adopts a suitable recruitment policy, it may not be possible, for the company to select right candidate for the right job. A sound recruitment policy, therefore, needs to : 1. 2. 3. 4. Identify, at the outset, the recruitment needs of the organization Identify the preferred sources of recruitment Frame suitable Criteria for selection and finally. Consider the Cost of recruitment.

Recruitment Process The recruitment & selection is the major function the human resource department & recruitment process is the Ist step towards creating the competitive strength & the strategic advantage for the organization.

Recruitment process involves a systematic procedure from sourcing the Candidates to arranging & Conducting the interviews & requires manes resources and time. A general recruitment process is as follows : Identifying the Vacancy : The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain : Posts to be filled No. of persons Duties to be performed. Qualifications required Preparing job description & person specification. Locating & developing the sources of required number and type of employees (Advertising) etc. Short-listing and identifying the prospective employee with required characteristic. Arranging the interviews with the selected candidates. Conducting the interview & decision making.

The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decisions and the appointment formalities. Sources of Recruitment Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: 1. 2. 1. Internal sources External sources Internal sources:-the sources within the organization itself to fill a position are known as internal sources of recruitment. 2. External sources:- External sources of recruitment is when a business

recruits new staff from outside the business.

Selection
Definition Acc. To Dale Yoder Selection is the process in which candidates for employment are divided into two classes-those who are to be offered employment & those who are not. Selection Process There are broadly four steps in the selection process and each step can further be subdivided depending on the need.

1.

Screening of Application Forms :Application forms are wealth of information and should be used

wisely. It should be interpreted correctly. The primary objective would be to eliminate applicants failing to meet minimum qualifying requirements. 2. Tests : These include tests of intelligence, aptitude, ability and interest. Tests in intellectual ability, spatial and mechanical ability, perceptual ability and

motor ability have shown to be moderately. Valid predictors for many semiskilled and unskilled operative jobs in the industrial organizations. Intelligence tests are reasonably good predictors for supervisory positions. But the burden is on management to demonstrate that any test used is job related. There are two sets of tests-performance and psychological. 3. Interview : Interviews are designed to probe into areas that cannot be addressed by the application from or tests. These areas usually consist of assessing candidates motivation, ability to work under stress, inter-personal skills and ability to fit in the organizations. The use of the interview in selecting executives make sense whereas for most lower level jobs appear questionable. 4. Selection Decision : In Practice, the final decision will probably be between three or four candidates. It is unlikely that any of the three or four candidates. It is unlikely that any of the three or four remaining applicants meet the person specification in every way. The personal specialist together with line

management will now have to weigh up the strengths & weaknesses of each candidate. The right decision depends on management judgment. Recruitment & Selection is vital function of HR in the organization. Slightest mistake will lead to a square peg in round hole. Instead of following a blind elimination process, focus should be on selecting people based on the skills and competencies required for the job. Selection Procedure Framing a selection procedure is important to ensure scientific selection of employees for all levels in an organization. To match the requirement of the jobs with the attributes of the candidates, the first step is to make a detailed analysis of job content to develop job descriptions. Such job descriptions clearly specify the necessary attributes needed for each job. Most of the organizations, in order to develop a standard job description for each job, determine the level of competencies by adopting industrial engineering techniques like time study, method study, work measurement, etc. The next step in selection procedure is to personify such attributes in candidates,. i.e. developing a specification of persons, to define the

background education, training, personality and characteristics of the candidates to suit the vacancy position. This in reality is an exercise to preportray an ideal candidate for a job.