Chapter-One

An Overview of Human Resource Management

An organization is a human grouping in which work is done for the accomplishment of some specific goals or mission. To achieve organizational objectives, there is a need to coordinate the basic resources of the organization, i. money; material (raw or semi-processed); machinery (or fixed assets or plants) and men (or human resources). In other words, the above resources by themselves will not help the organization to accomplish its objectives, unless there is an effective coordination and utilization of these human and non human resources. It is understandable that the Human Resource is an important (critical) resource in coordinating the non human resources. So, the principal component (asset) of an organization is its “Human Resources or People at work”. From the above point one can understand that people are determinants and initiators/starter/beginner of all activities in a given organization. Besides, all tasks depend on how well the human resource is managed. If the human resource is managed improperly, the result would be ineffective. So, management of human resource is central and critical task in any organization. The success or failure of an organization is largely dependent on the caliber/ability/quality of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper.

1 Meaning and Definition

Let us understand it by dividing the term in to its parts  Human- People, us  Resource- assets/Costs for an organization  Management- Coordination and control of resources to achieve set goals.  Human Resources- refer to the knowledge, skills, creative abilities, talents, and aptitudes obtained in the population (from the national point of view) Human resource management has been defined in various ways by many scholars: The following are few definitions by different scholars: Simply put, HRM is a management function that helps manager’s recruit, select, train and develops members for an organization. Obviously, HRM is concerned with the people‘s dimension in organization.

Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, separation of human resources to the end that individual, organizational and societal objectives are accomplished. Human Resource Management has been defined as the function or a unit in an organization that facilitate the most effective utilization of human resources to achieve the objectives of both the organization and the employees. HRM: - deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. According to the Invancevich and Glueck, “HRM is concerned with the most effective use of People to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient Hence, Human Resource Management  Focuses on people aspect of Management  Consists of practices that help the organization deal effectively with its people  Is concerned with enhancing the contribution of employees toward the effectiveness of the organization.  It emphasizes the need to think strategically about people as a key resource.  Is proactive rather than reactive, i. always looking forward to what needs to be done and then doing it, rather than waiting to be told what to do as they arise.

1 Characteristics (Features) of Human Resource Management

i) Comprehensive function: Human Resource management is concerned with managing people at work. It covers all type of people in the organization. It applies to workers, supervisors, officers, managers and other type of personnel. ii) People- oriented: Human Resource Management is concerned with employees as an individual as well as groups. It is the task of dealing with human relationship with an organization. It is the process of achieving the best fit between individuals, jobs, organizations and the environment. It is the process of bringing people and organizations together so that the goal of each are met.

rewarding, and maintaining workers. Labor began to be considered a commodity to be bought and sold. b) The factor of production concept: Employees were considered a factor of production just like land, materials, machinery. Taylor’s scientific management stressed proper selection and training of employees so as to maximize productivity. c) Paternalistic concept: Employees organized together on the basis of their common interest and formed trade unions to improve. Also employers began to provide schemes to workers. Employers assured a fatherly and protective attitude towards their employees. d) The humanitarian concept: It is based on the belief that employees had certain inalienable rights as human beings and it is the duty of the employer to protect. Rather social and psychological satisfaction was equally important. The human relation concept is further developed. e) The behavioral human resource concept: It aimed at analyzing and understanding human behavior in organization. Motivation group dynamics, organizational climate, organizational conflict etc, become popular under this concept. Employees began to be considered as valuable assets of an organization. Efforts were made to integrate employee with the organization so that organizational goals and employees aspirations could be achieved simultaneously. Focus shifted towards management practices like two way communication, management by objectives, role of informal groups, quality circle etc. f) The emerging concept: Now employees are considered as partners in industry. They are given share in company’s stock membership. Slowly and steadily, HRM is emerging as a discipline

1 Importance of Human Resource Management

The significance of HRM can be discussed in four dimensions: corporate, professional, social and national.

1. Significance for an organization HRM can help an organization in achieving its goals more efficiently and effectively in the following ways: Attracting and retaining the required talents ---through effective HRP, recruitment, selection, placement, orientation, compensation and promotion polices.  Developing the necessary skill and the right attitudes among employees—through training, development, performance appraisal etc

 Securing willing cooperation of employees-through motivation, participation, grievance handling, etc  Utilizing effectively the available human resource  Ensuring that the enterprise will have in future a team of competent and dedicated employees 2. Professional significance Effective management of HR helps to improve the quality of work life. It permits team work among employees by providing a healthy working environment. It contributes to professional growth in the following ways:  Provide maximum opportunities for personal development of each employee  Maintain healthy relationship between individuals, and different work groups  Allocate work properly 3. Social significance Proper HRM has a great significance for the society. It helps to enhance the dignity or self respect of labor in the following ways:  Provide suitable employment that provides social and psychological satisfaction to people.  Maintaining a balance between the jobs available and the jobseekers in terms of numbers, qualifications, needs and aptitudes  Eliminating wastage of human resources through conservation of physical and mental health 4. National Significance Human resources and their management play a vital role in the development of a nation. The effective exploitation and utilization of a nation’s natural, physical and financial resources require an efficient and committed man power. There are wide differences in development between countries with similar resources due to difference in the quality of their people. Countries are underdeveloped because of their peoples are back ward. The level of development in the country depends primarily on the skills, attitudes and values of its human resources. Effective management of human resources helps to speed up the process of economic growth which intern leads to higher standard of living and fuller employment.

1 Objectives of Human Resource Management

Environment of Human Resource Management

Environment may be understood as all those forces which have their bearing on the functioning of the human resource department, this environmental forces may affect the functions of HR department either positively or negatively. A number of environmental factors influence the work of HR manager. The term environment here refers to the totality of all factors which influence both the organization and personnel sub-system. Table 1: external and internal factors influencing the HRM function External Factors Internal Factors  Technological factors  Mission/ Strategy  Economic challenges  Policies  Political/Government rules and regulations  Organizational culture  Social factors  Organizational structure  Unions and employees; demands  HR systems  Workforce diversity  Leaders’ style and experience Analysis of the environment is useful for the HR manager and his or her team in order to become proactive and not remain reactive to the environment. Reactive strategy serves the purpose when the environment is fairly stable and competition is less sever. Today’s business environment is characterized by change and intense competition. Proactive steps are vital for any organization if it has to survive in such environment. 1. What do you understand by HRM environment? Why is the study of HRM environment useful for HR managers? Human Resource Management Model The nature, desirability and feasibility of the link between business strategy and HR strategy is a consistent theme which runs through the strategy literature, although some theories suggest that implementing ‘best practice’ in HRM is even more important than this.

Figure 2 is a simple model that is useful in visualizing different ways in which this relationship may be played out and has relevance for the newer conceptions of strategy based on the resource-based view of the firm, as well as earlier conceptions. In the separation model (A) there is no relationship at all, if indeed organizational and HR strategy does exist in an explicit form in the organization. This is a typical picture of twenty years ago but it still exists today, particularly in smaller organizations. The fit model (B) represents a growing recognition of the importance of people in the achievement of organizational strategy. Employees are seen as key in the implementation of the Organizational strategy HR strategy A Separation B C D E Organizational strategy Organiza tional strategy Organizational strategy Organizational strategy HR strategy HR strategy HR strategy HR strategy Fit Dialogue Holistic HR driven

Chapter-Three

Job Analysis and Human Resource Planning

Organizations have evolved because the over`all mission and objectives of most institutions are too large for any single person to accomplish. The cornerstone of the organization is the set of jobs performed by employees. The set of jobs is what provides the input needed to accomplish the mission and objectives. These jobs must fit together, coordinate, and link directly to the mission if the organization is to be successful. Job analysis involves the formal study of jobs which provides answers to questions such as:  How much time is taken to complete important jobs tasks?  Which tasks are grouped together and are considered a job?  What kinds of behaviors are needed to perform the job?  What kind of person is best suited for the job?  How can the information acquired with a job analysis be used in the development of personnel management programmes? 2 Meaning and Definition of Job Analysis Job analysis is a systematic analysis of each job for the purpose of collecting information as to what the jobholder does, under what circumstances it is performed and what qualifications are required for doing the job. It provides information about the nature of the job and the characteristics or qualifications that are desirable in the jobholder. Job analysis deals with complete study of the job embodying every Known and determinable factors, including  The duties and responsibilities involved in its performance  The condition under which the work is carried  The nature of the task  The qualification required by workers and  The condition of employment

Job analysis is the determination of the task which comprises the job and the skills, knowledge, abilities, and responsibilities required of the worker for successful performance and which differentiates the job from all other jobs. The information collected through job analysis relates to the job and jobholder. The requirements relating to the job are termed as job description; whereas the qualities demanded from a jobholder is known as job specifications. Job description and specifications are the immediate products of job analysis.

2 Steps in Job Analysis

Step 1 Decide the use of job analysis information: It is true that the information generated by job analysis can be utilized for practically all function of HRM. Never the less, it is important to focus on a few areas in which the job analysis information is to be used. These areas can be decided on the base of the need, priorities, and constraints of particular organization. Step2 Review relevant background information such as organization chart, and job descriptions and process flow chart Organization chart shows the organization wide division of work, how the job in question relates to other jobs, and where the job fits in the overall organization. The chart should show the title of each position and, by means of interconnecting lines, who reports to whom and with whom the job incumbent communicates. A process flow chart provides a more detailed picture of the work flow. In its simplest form a process chart shows the flow of inputs to and out puts from the job you’re analyzing. Finally the existing job description, if there is one, usually provides a starting point for building the revised job description. Step 3- Select representative positions. Why? Because there may be too many similar jobs to be analyze. For example, it is usually unnecessary to analyze the jobs of 200 assembly workers when a sample of ten jobs will do. Step 4- Actually analyze the job – by collecting data on job activities, required employees behavior, working conditions, and human traits and abilities needed to perform the job. For this step, use one or more of the methods of collecting job analysis information. Step 5-Verify the job analysis information with the worker performing the job and with his or her immediate supervisor.

Direct observation is especially use full when jobs consist mainly of observable physical activities –assembly –worker and accounting clerk are examples On the other hand, observation is usually not appropriate when the job entails a lot of mental activity (lawyer, design engineer). By personal observation, the analysts can come to know about facts relating jobs though materials, equipments, working condition etc. Written narratives or maintenance of record Under this method, both the employees as well as his supervisor keep a record of various facts relating to the job. Since each employee keeps a full record of her or his daily operations starts from beginning till end, this method is gong to consume more time than other methods. Job questionnaires Under this method, a questionnaire is circulated among the workers who report the fact about the job. This method is highly unsatisfactory as it places greater faith in the job holder’s ability to provide information. Cons  A questionnaire is quick and efficient way to obtain information from a large number of employees.  It is appropriate to obtain information from a large number of employees in relatively short period of time Pros  Questionnaires can be time consuming and expensive to develop.  There is a possibility that either the respondent or the job analyst will misinterpret the information. Job performance Under this method, the job analysis actually performs the job under study to obtain firsthand experience of the actual task, physical, and social demands and the environment of the job. This method can be used only for jobs where skill requirements are low and can be learnt quickly and easily. This is time consuming method and is not appropriate for jobs requiring extensive training. Using multiple source of information

There are obviously many ways to obtain job analysis information. You can get it from individual workers, groups, or supervisors; or from the observations of job analysts, for instance. You can use interviews, observations, or questionnaires. Some firms use just one basic approach, like having the job analysis do interviews with current job incumbents. Yet a recent study suggests that using just one source may not be wise. The problem is the potential inaccuracies in people‘s judgments. For example, in a group interview, some group members may feel forced to go along with consensus of the group; or an employee may be careless about how he or she completes a questionnaire. What this means is that collecting job analysis data from just interviews, or just observations, may lead to inaccurate conclusions .It is better to try to avoid such inaccuracies by using several sources.

2 Importance of job analysis information/Use of Job Analysis Information

Job analysis is useful for overall management of all personnel activities .while this is a general statement, it is important to specify the use of job analysis. Job related data obtained from a job- analysis program are useful in HRP, Recruitment and selection, training and development, job evaluation, remuneration, performance appraisal, EEO compliance, job definition, promotion and transfer, employee safety and health, placement and orientation, setting wage differentials, and compensation.  EEO compliance- job analysis can also play a big role in EEO compliance .For Example; employers must be able to show that their selection criteria and job performance are actually related. Doing this, of course, requires knowing what the job entails – which in turn requires a job analysis.  Job definition – a job analysis results in a description of the duties and responsibilities of the job. Such a description is useful to the current jobholders and their supervisors as well as to prospective employees.  Orientation - Effective job orientation cannot be accomplished without a clear understanding of the job requirements. The duties and responsibilities of a job must be clearly defined before a new employee can be taught how to perform the job.  Employee safety –A thorough job analysis often uncovers unsafe practices and environmental conditions associated with a job. Focusing precisely on how the job is done usually uncovers any unsafe procedures.

foresight etc. Social and psychological characteristic include emotional stability, flexibility, personal appearance, pleasing manner, initiative, drive, conversational ability etc. Other personal characteristics include sex, education, family, background, job experience, extra-curricular activities, hobbies, etc. Job specification tells what kind of person is required for a given job. It serves as a guide in the recruitment and selection processes. See the typical example of job specification of compensation manager below.

2.1 Job specification of compensation manager

Position title: Manager, wage and salary administration. Department: Human resource division. Education and training:  A bachelor degree with at least 3:00 CGPA  A degree or diploma in law will be an additional desirable qualification.  MBA with specialization in HRM. Experience: At least five years experience in similar position in a large organization. Age: preferable above 25 years and below 45. Other requirements:  Good health  Fluency in speaking and writing  Ability to work long hours  Good knowledge of computer application

2 Potential Problems with Job Analysis

In analyzing s certain potential problems can occur, some of these problems result from nature of human behavior , others steams from the nature the job analysis process. Some of the most frequently encountered problems associated with job analysis are the following: i) Top management support is missing Top management should at least make it clear to all employees that their full and honest participation is extremely important to the process .Unfortunately; the message is often not communicated. ii) Only a single means and source are used for gathering data.

Managers have many alternatives methods of data collection for job analysis purpose. All too often, a job analysis relies on only one of these methods when a combination of methods might provide better data. iii) The supervisor and the job holder do not participate in the design of the job analysis procedure Too many analyses are planned and implemented by one person who assumes exclusive responsibility for the project. The job holder and his or her supervisor should be involved early in the planning of the project. iv) No training or motivation exist for job holders Job incumbents are potentially a great source of information about job. Unfortunately, they are seldom trained or prepared to generate quality data for a job analysis. Also, job holders are rarely made aware of the importance of the data and almost never are rewarded for providing good data. v) Employees are not allowed sufficient time to complete the analysis Usually a job analysis is conducted as though it were a crash program, and employees are not given sufficient time to do a thorough job analysis. vi) Activity may be distorted Without proper training and preparation, employees may submit distorted data, either intentionally or not, For example employees are likely to speed up it they know they are being watched. Employee involvement from the beginning of the project is a good way to minimize this problem. vii) There is a failure to critique the job Many job analyses do not go beyond the initial phase of reporting what the job holder currently does. These data are extremely valuable, but the analysis should not stop here. The job should be critiqued to determine whether it is being done correctly or whether improvements can be done. Discussion Question 1. What is the difference between job analysis and job specification? 2. Contact any organization convenient to you and write a short report on how they conduct job analysis

2. Recruitment of qualified human Resources: Talented and skilled labour has become a scarce resource especially in developing countries. Therefore, for the long run survival of the firm, it is essential to recruit the best labour force through proper manpower planning.
3. Adjusting with the rapid technological change: with the change in technology, the job and job requirements are also changing. Therefore, it is necessary to forecast and meet the changing manpower, which can withstand the challenges of the technological revolution. This can be done only through effective manpower planning.
4. Reducing labour turnover: The labour turnover refers to the mobility of labour out of the organization due to various factors such as dissatisfaction, retirement, death etc. Due to labour turnover, a firm will be losing experienced and skilled labour force. This loss can be minimized only through efficient manpower planning.
5. Control over recruitment and training Cost: Highly skilled personnel are in short supply and it is very costly to hire, train, and maintain them. A company has to incur heavy costs in processing the applications, conducting written tests, interviews etc., and in the process of providing adequate training facilities. In consideration of these costs, it is essential to plan carefully in relation to the manpower so as to reduce the recruitment and training cost.
6. Mobility of labour: Today, it is very difficult to maintain the qualified personnel in an organization as they will be moving from one job to another in search of better prospects. In a free society, human beings enjoy unrestricted mobility from one part of the country to the other. Therefore, in order to reduce the loss of experienced and skilled labour, every organization must have a sound system of manpower planning.
7. It can facilitate expansion programmes: In these days of rapid industrial development, every company goes for expansion of its activities. As a result of the increasing company size, the demand for human resources also increases. This necessitates proper manpower planning so as to ensure the continued supply of the required manpower for the firms’ activities.
8. To Treat the Manpower like Real Corporate Assets: today it is being increasingly felt by the practicing managers and psychologists that men in an organization must be treated like the most significant assets. The productivity of a company can be improved only through manpower planning, recognizing the significance of the human factor in business. Proper manpower planning considers the fact that satisfied workers can contribute also to the over all profitability of the firm through improved productivity.

2.2 Factors Affecting HRP

There are numerous factors affecting the HRP of the organization some of the factors are discussed below: a) Type and strategy of the organization The type of the organization is an important consideration because it determines the production process involved, the number and type of staff required, and the supervisory and managerial personnel required. Manufacturing organizations are more complex in this respect than those that render services. The strategic plan of an organization defines the organizations human resource needs. For example, a strategy of internal growth means that additional employees must be hired. Acquisition or mergers, on the other hand, probably means that the organization will need to plan for layoffs, since mergers tends to create, duplicate or overlapping positions that can be handled more efficiently with fewer employees b) Organization growth cycle The stage of the organization’s growth can have considerable influence on HRP. Small organizations in the embryonic/developing stage may not have personnel planning. Need for personnel planning is felt when the organization enters the growth stage. HR forecasting becomes essential. Internal development of people also begins to receive attention in order to keep up with the growth. A mature organizations experience less flexibility and variability. Growth slows down. The work force becomes old as few younger people are hired. HRP become more formalized and less flexible and innovative. Issues like retirement and possible retrenchment dominate planning. Finally, in the decline stage, HRP takes a different focus. Planning is done for layoff, retrenchment and retirement. Since decisions are often made after serious financial and sales shocks are experienced by the organizations, planning is often reactive in nature. c) Environmental uncertainties The human resource managers rarely have the privileges of operating in a stable and predictable environment. Political, social, and economic changes affect the organizations. Personnel planner’s deal with environmental uncertainties by carefully formulating recruitment, selection, and training and development polices and programs. Balancing mechanism are built in to the