Professional Documents
Culture Documents
Until now, we have discussed how the HRM function in organizations works and the role of the function in organizational processes. We have also discussed the changing nature of the HRM function in recent years and how with the introduction of enterprise software, an entirely new dimension has been added to these functions. This article discusses the typical functions of a HR manager and analyzes how he or she can make a positive contribution to the organization and add value to the process. First, the HR manager has to juggle between hiring, training, appraisals, and payroll among other things. This means that a typical function of the HR manager would encompass the end to end management of the employee people lifecycle which means that the HR manager would have to take care of everything that is concerned with the people aspect right from the time the employee enters the organization till the time the employee quits or retires from the organization. Hence, the lifecycle of an employees time in an organization has to be managed and this means that the HR manager is responsible for the hiring, training, appraisals, payroll, and exit interviews.
Entry to Exit: Managing the Employee Lifecycle
If we take each of these activities in turn, we find that hiring is done in conjunction with the line managers who put out their requirements periodically on the kind of recruits they want and the number of recruits they want. Once the request reaches the HR manager, he or she has to scour the market for potential recruits. Usually, the HR manager does not personally do this and outsources this function to a placement consultancy. The next step is the interview stage after the shortlists are done and this is an activity where the HR manager either delegates the task of assessing the potential recruits to the staffing team or does the job personally. In large organizations like Fidelity and Microsoft, there are dedicated teams for each of these activities and this is something we would be discussing in detail in subsequent articles. After the interview stage is over, the important task of fixing the salary and benefits of the successful candidates has to be done. This is usually the time when the HR manager plays a critical role as he or she has to determine the fit between the role and the candidate and decide on the quantum of salary and benefits that is appropriate to the role and after examining the budgets for the same.
The Appraisal Process and the Exit Interviews
After these activities, the HR manager is also involved in conducting the last stage of appraisals or evaluating the appraisals. In recent years, the trend is more towards the latter where the HR manager in charge of the business unit evaluates the appraisals instead of participating in the process directly. This is done in a manner to determine the quantum of pay hike or bonuses keeping in mind the same principles that were discussed in the hiring activity. What this means is that the HR manager has to work closely with the line managers to get this done. In many organizations, employees can take their grievances to the HR managers in case they are not satisfied with their pay hikes or the quantum of benefits. They can also complain against their managers in a confidential and private manner. The last activity that the HR manager is involved in is conducting the exit interviews when employees leave the organizations. This is usually done on the last day of the employees stay in the organization and this process consist of a free and frank discussion on what the employee feels about the organization and why he or she is leaving the organization. The exit
1
interviews offer valuable sources of insights into organizational behavior as the employees can vent their feelings on what works and what does not work in organizations.
HR OFFICER DUTIES
Human resources officers, more commonly referred to as HR managers, handle or oversee a variety of human resource management functions for their employers. In some organizations, an HR manager may be solely responsible for all HR functions of a particular business unit. In others, an HR manager may oversee the work of specialists who are responsible for specific areas. Regardless of how a department is structured, HR managers play important roles in compliance and employee relations.
Staffing
HR managers are involved with every aspect of the staffing process. They determine hiring needs, recruit candidates, screen applicants, conduct interviews and participate in the selection process. They must be knowledgeable about equal employment opportunity laws to ensure that staffing is handled in a non-discriminatory way. HR managers are also involved in creating and maintaining job descriptions.
Training
HR managers are involved in employee training, starting with employee orientation. Beyond making sure that new employees have the knowledge they need to get started, HR managers are also involved in determining training needs on an ongoing basis. This may include individual training designed to help employees improve specific skills or prepare for new job responsibilities, as well as departmental or organization-wide training initiatives.
Employee Relations
HR managers fulfill employee relations roles within their companies, performing various tasks and functions designed to ensure positive relationships between the company and members of its workforce. This may involve implementing and overseeing rewards and recognition programs; serving as a point of contact for employee complaints; and being involved in the discipline process when problems arise.
Compensation
Ensuring that employees are properly compensated for their work is an important function of HR managers. They make certain that jobs are properly classified as exempt or non-exempt and workers are paid correctly. They are responsible for properly processing payroll deductions and ensuring that payroll records are properly maintained. HR managers may also have input into establishing or updating pay scales.
Benefits Administration
HR managers are responsible for employee benefits administration, ensuring that employees are informed about and have an opportunity to enroll in the benefits programs available to them. They also serve as a liaison between the company and its benefits vendors, and make recommendations to company management regarding ways to improve benefit offerings.
Risk Management
Risk management is an important function for HR managers. All aspects of regulatory compliance related to personnel fall under the risk management umbrella. Topics include safety issues, equal employment opportunity laws and industry-specific requirements. HR
2
managers must stay current with all applicable laws, advise company leadership about such matters and take steps to ensure compliance within the workplace.
Qualifications
Applicants for HR assistant work should have a high school diploma or GED for HR assistant occupations. Good computer and typing skills are also required, because much of the work in HR involves using computer systems and typing. Good communication and interpersonal skills are critical for the job, because HR assistants work closely with all levels of employees and job applicants. Because they work with private employee information, HR assistants much know how to keep information confidential.
Recordkeeping
HR assistants compile and process employee records. They prepare new and existing employees personal information, track their attendance and time off, compile salary and termination information and benefit programs. They store employee information confidentially and accurately in secured files and computer systems.
Support
The human resources staff often includes managers, generalists, benefits administrators and recruiters. HR assistants supports HR staff by gathering employee information and files for their review, answering phones and taking notes during departmental meetings. They post job openings, gather resumes and applicant information and schedule interviews. They also support employees all around the company by answering questions about employment files, time-off, benefit plans and other information related to their employee records.
Reporting
HR assistants compile a variety of reports. This can include weekly, monthly and yearly reports for other departments, such as payroll and accounting to assist in the creation and distribution of paychecks. They also create all documentation for employee records. They often tally and create reports related to employee training and surveys, then work with other HR professionals to improve employee retention and address their training needs.
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labor. Although minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage. Supporters of the minimum wage claim it increases the standard of living of workers, reduces poverty, reduces inequality, boosts morale and forces businesses to be more efficient. Critics of the minimum wage claim it actually increases poverty, increases unemployment (particularly among low productivity workers), and is damaging to businesses.
Minimum Wages in Andhra Pradesh w.e.f April 1, 2013 to September 30, 2013
Revised minimum wages of Andhra Pradesh from October 2013 will soon be announced. ANY MANUFACTURING PROCESS CARRIED OUT IN ANY FACTORY AS DEFINED IN SECTION 2(m) OR SECTION 85 OF THE FACTORIES ACT, 1948 OTHER THAN THOSE NOTIFIED UNDER PART-I OR PART-II OF THE SCHEDULE OF THE MINIMUM WAGES ACT, 1948. Notification issued vide G.O.Ms.No.54, LET&F (Lab.II) Dept., dt:22-06-2007 Published in Gazette No.418, dated 17-07-2007 Wages Linked at 487 CPI points CPI points notified as on 01.04.2013 = 975 points VDA to be paid from 01.04.2013 to 30.09.2013 = 975 - 487 = 488 points Per point rate of VDA notified in the notification = Shown against each category at Col.No.4. Minimum Wages and VDA payable from 01.04.2013 to 30.09.2013 VDA for 488 Sl.No. Name of the Category Basic Wage Total wage points 1 2 3 4 5 6 1 Highly Skilled 4479 9 4392 8871 2 Skilled 2854 5.75 2806 5660 3 Semi-skilled 2404 4.75 2318 4722 4 Unskilled 2024 4 1952 3976 5 Office Staff I) Manager 4237 8.5 4148 8385 ii) Steno/Accountant 2854 5.75 2806 5660 iii) Clerk/Typist/Cashier 2635 5.25 2562 5197
7 Additional Answers
Wages are generally paid per hour. This means that you have to be present and working in order to get paid. Salary refers to how much you get paid every year. Salary earners rarely have to punch a time clock, or keep an accurate account of their hours, because they get paid for performance rather than by the hour. Salary is the monthly salary that is normally calculated on an annual basis. Wages on the other hand are those compensations that are paid per hour or per days worked. The difference between wage and salary is that wage is used to refer to the amount paid to an employee depending on the amount of hours worked, whereas salary refers to a fixed monthly remuneration an employee receives not considering of hours worked. Employment agreement is used to determine the type payments an employer pays the employees. The main difference between salary and wage is that wages are mostly paid by the hour whereas salaries are mostly paid constantly, consistently and the same amount either at the end of the week, month or end of the year. Other differences include; those who earn salaries are paid for time off whereas those earning wages are not paid for time off, those earning salaries rarely get paid for overtime whereas those earning wages get paid for overtime and lastly, those earning salaries enjoy perks and benefits whereas those earning wages do not enjoy any perks or benefits. Though sometimes used interchangeably, wages are a computation of earnings or compensations per hour or per day multiplied by the number of days per week. It could also be monthly. Compensation given to temporary staff is commonly referred to as wages. Salary on the other hand is the computation of one's compensation per year but paid monthly. It is mostly used when compensating permanent employees. The difference between a salary and a wage is that wages are paid on hourly basis based on the number of hours' one works in a day while a salary is quoted on yearly. Unlike salaried workers, wage workers have no access to paid vacations and sick days as each time spent away from work is not paid for. Wages are basically expressed as hourly payment while salaries are expressed packages. Salaries may include things like base salary, stock options, retirement, benefits, and bonuses. Salary earners usually receive paid time when they are not working but wage earners have to work to receive any payment.
WHAT IS PROVIDENT FUND Employee provident fund or EPF or PF as normally referred is a retirement scheme for private sector employee. 12% is compulsory deducted from your salary and 12% is contributed by the employer. You may contribute higher % from salary but there is no such obligation on the employer. The amount accumulated is disbursed at retirement or VRS. It can be transferred while changing jobs. You or your family get pension after the age of 58.
Employees Share
(to EPF Fund)
Employers Share
(to EPF & Pen, Fund)
3.67% of Basic + DA Of
Gratuity :
a sum of money paid to an employee at the end of a period of employment. "an end-of-contract gratuity of 20% of the total pay received" Gratuity is one of the least understood components of salary. InvestmentYogi explains everything about Gratuity and the tax implications for you. Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. An employee may leave his job for various reasons, such as retirement/superannuation, for a better job elsewhere, on being retrenched or by way of voluntary retirement. Eligibility As per Sec 10 (10) of Income Tax Act, gratuity is paid when an employee completes 5 or more years of full time service with the employer(minimum 240 days a year). How does it work? An employer may offer gratuity out of his own funds or may approach a life insurer in order to purchase a group gratuity plan. In case the employer chooses a life insurer, he has to pay annual contributions as decided by the insurer. The employee is also free to make contributions to his gratuity fund. The gratuity will be paid by the insurer based upon the terms of the group gratuity scheme.
Sources of Recruitment
Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment.
Sources of Recruitment
The different sources of recruitment are classified into two categories, viz., 1. Internal : sources of recruitment are from within the organisation. 2. External : sources of recruitment are from outside the organisation.
10
11