BMS- HRM set 2

The main objective of HRM is ensuring the availability of right people for right

jobs so as to achieve organizational objectives effectively.

HRM has many objectives such as i) societal objectives ii) organizational

objectives iii) functional objectives and (iv) personal objectives. The various sub

functions border on legal compliance, benefits, smooth union-management relationship,

Human Resource planning, Selection, training and development, appraisal, placement,

assessment, appraisal, placement, and compensation.

Though personnel management and HRM in general parlance are interchangeably

used there are subtle differences. PM is a routine maintenance oriented administrative

function whereas HRM places emphasis on a continuous development of people at work.

PM takes a narrow view of its scope and objectives. It concentrates mainly on improving

the efficiency of personnel in isolation of the organization. But HRM takes a systems

view and attempts not only in making people efficient but also in creating proper

organizational culture. HRM is being used to develop competitive advantages and

therefore its role in strategic management is the continuous process of relating the

organization with its environment by suitable course of action involving strategy

formulation and its implementation.

Both internal and external environments have a special bearing on HRM practices.

The internal environment includes,

i. Trade Unions

ii. Organizational culture and conflicts

iii. Professional bodies

External environment chiefly consists of

a) Economic factors

b) Political factors

c) Technological factors

d) Demographic factors.

HR practices are significant in achieving corporate excellence.

Government has a positive role to play in developing the HR. It is macro level

development. Legislations and schemes for technicals and entrepreneurs are other

measures.

MNCs have become a significant force in trade, business and industry. In view of

MNCs operations with a very wide network spread to different nations, language and

technical differences along with cultural variations the HRM practices for MNCs have

special features.

Manpower planning is the process including forecasting, developing,

implementing and controlling by which a firm ensures that it has the right number of

people and right kind of people at the right place, at the right time doing things for which

they are economically most suitable. HRP includes the estimation of how many qualified

people are necessary to carry out the assigned activities how many people will be

available, and what if anything must be done to ensure that personnel supply equals

personnel demand.

The HRP process consists of i) Forecasting, ii) Inventory, iii) Anticipatory

problems and iv) planning.

The various techniques of forecasting Human Resource are

i) Managerial Judgement Method

ii) Delphi Technique

iii) Work Study Technique

iv) Ratio – trend analysis

v) Statistical and Mathematical models.

There would be both short – term and long – term HR planning. Various factors

influencing HR planning are i) Government, ii) Social factors, iii) Economic factors, iv)

Technological factors.

HR department needs information accurately and in a short notice on the

following.

a. Duties and responsibilities of every job.

b. Skills possessed by every employee.

c. Organization’s future needs of human resource.

d. Training needs

HRIS has computerized linking with all sub-systems. HRIS has both merits and a

few limitations. But HRIS is indispensable in developing and perfecting Human

Resources.

1. Acquisition, storage and retrieval of information present a significant challenge to the
management. HRIS is basically used for
i. Storing information and data of each individual employee for future
reference.
ii. Providing a basis for planning, organizing, decision making and controlling
of human resource functions.
iii. To know regularity of attendance and absenteeism if any.
iv. For supplying data and returns to government and other statutory bodies.
2. Generally the important files are
i) Personnel administration, ii) Salary particulars, iii)
Leave/Absence Record, iv) Skill inventory, v) Medical history, vi) Accident
monitoring, vii) Performance appraisal, viii) Training and Development, ix)
HRP, x) Recruitment, xi) Career planning and, xii) Collective bargaining.

Recruitment, selection, placement, induction, training and development are all the
core functions of HRD. Recruitment is the process of locating, identifying and attracting
capable applicants. Both internal and external factors influence recruitment. Internal
factors are size of the organization, policy of the organization, usage of the jobs. External
factors are demographic factors labour market, unemployment situation and labour laws.
In recruitment both internal and external sources can be made use of. Selection
starts where recruitment ends. Selection is the process of differentiating between
applicants in order to identify those with a greater likelihood of success in a job. The
various selection process are i) Preliminary interview, ii) Application blank, iii) Selection
tests, iv) Selection interview, v) Reference checks,, vi) Physical examination and vii) Final
selection.
The different selection tests are ability tests and personality tests. After the tests,
interviews will be conducted. Reference checks physical examination and final selection
follows.
The selected candidates are placed in suitable positions. Placement involves
assigning a specific job to each of the selected candidates. Then they are inducted.
Induction is introducing the new employee to work surrounding and people already
working there. There is formal induction and informal induction.

1. According to Dale Yoder, “Recruitment is a process to discover the source of

manpower to meet the requirements of staffing schedule and to employ effective

measures for attracting that manpower in adequate numbers to facilitate effective

selection of an efficient working force.”

3. Ability tests and personality tests. The different ability tests are i) Aptitudes

tests, ii) Achievement tests, iii) Intelligence tests, iv) Judgement tests. The

personality tests are a) Interest tests b) personality inventory tests c)

Projective tests and d) Attitude tests.

4. Induction is the process of receiving and welcoming an employee when he first

joins a company, and giving him basic information he needs to settle down quickly

and happily and start work. There can be formal induction and informal induction.

Difference between Recruitment and selection are:

RECRUITMENT /SELECTION

1. Technically precedes selection /Selection follows recruitment

2. The process of identifying and encouraging potential candidates to apply for jobs in the organization/

Selection involves choosing the best out of those recruited

3. Recruitment is positive as it aims at increasing the number of job seekers (applications) for wider choice or increasing the selection ratio./ Selection on the other hand is negative in its application, as it rejects a large number of unqualified applicants in order to identify those who are suitable for the jobs.

4. Recruitment involves searching / Selection involves comparing those already searched.

EFFECTIVENESS OF RECRUITMENT PROGRAMME

Following are the pre-requisites.



A well defined recruitment policy.



A proper organizational structure.



A well-laid down procedure for locating potential job seekers.



A suitable method and technique for tapping these candidates.



Continuous assessment of effectiveness of recruitment programme. Ethical practice in recruitment policy and procedure.

RECRUITMENT PROCESS

The recruitment process consists of the following:

a) Recruitment Planning

b) Strategy development

c) Searching

d) Screening

e) Evaluation and control

Performance appraisal is a systematic evaluation of personnel by superiors or

others familiar with their performance. The objectives of performance appraisal is many

and varied. It may be for salary increase, promotion or to give feed back to employees. A

systematic performance appraisal consists of the following:

i. Defining objectives of appraisal.

ii. Defining appraisal norms.

iii. Designing appraisal programme.

iv. Implementing appraisal programme.

v. Feedback and

vi. Post appraisal actions.

There are several methods of performance appraisal. Some are traditional and a

few are modern and scientific. Under M.B.O, evaluation is done both by the superior and

the concerned employees.

Potential appraisal is needed to fill up future vacancies and to evaluate how many

of the employees have necessary skills and traits to occupy higher position and

responsibilities. Incidentally it will give feedback to employees to improve themselves for

future requirements.

The emerging HR trend in virtual organizations is both a challenge and opportunity

to HR experts. The virtual organization is a social network in which all the horizontal and

vertical boundaries are removed. The information and communication technology,

coordinates the activities, combines the workers skills and resource in order to achieve a

common goal.

The characteristics of virtual organization are power flexibility information

communication, flat organization, multidisciplinary team work where organizational

boundaries are vague.

Number of HR issues are involved in virtual organization. Recruitment of highly

skilled people, fast recruitment and sociability are some of the issues.

Selection of personnel for virtual organization, BPOs require special talent search.

MNCs have added a new dimension to HR functions.

Personnel Development (PD) involves investments of precious resources in people with

the hope that they would remain in the organization to contribute to the organization and

the society. Results of PD initiatives to an organization are numerous. While training and

development alone may not be serving as panacea for all organizational problems, the

whole range of interventions for PD carried out by a Personnel Department in association

with various internal and external consultants helps in increasing organizational stability,

promotes organizational learning, heightens performance and profitability, builds an

organizational climate of openness and trust, develops a culture of collaboration, boosts

organization’s image and leads to its overall vibrancy, pro-activity and development. PD is

the foundation on which an organization can confidently build its strengths. Full utilization

of human resources would ensure that the organization has the optimum number of

employees, the right level of skills, the requisite willingness and preparedness for moving

ahead with technological advancements and competitiveness. As Douglas McGregor puts

it, ‘the average human being learns, under proper conditions, not only to accept but to seek

responsibility’.

Compensation is the underlying goal of paid employment. Every employee works for pay

and strives to maximize his earnings. Compensation is directly linked to productivity,

motivation and morale. Human Resource Development and Productivity are

complementary to each other. Motivation, the process of stimulating people through the

possibility of gain or reward, to take desired course of action in the interests of the

organization applying to the entire class of drivers, desires, needs, wishes and similar

forces. Motivation is enhanced by a fair and decent compensation, accompanied by any of

the proven incentive systems. A blend of motivation and competence in a system of high

standards of quality of work lives, would serve to help to achieve constant productivity

augmentation and prevention of dysfunctional stress and promotion of overall

organizational effectiveness.
 The virtual organization is a social network in which all the horizontal and vertical
boundaries are removed. It consists of individuals working out of physically dispersed
workspaces, or individuals working from mobile devices and not tied to any workspace.
Virtual teams differ from face to face teams. They are
i. Absence of paraverbal and non-verbal cues.
ii. Limited social context.
iii. Ability to overcome time and space constraints.
2. HR issues – Recruitment, placement, power dispersal, compensation fixation etc.,
3. MNCs – Characteristics – special skill – adjustments – sociability – language
and cultural adjustment – communication skills.