2. 2
Fundamentals of Human Resources Management
Definition of Human Resource Management
• According A.Decenzo & P. Robbins” HRM is made of four activities: 1. Staffing, 2.
Training and development 3. Motivation and 4. Maintenance
Functions of Human Resource Management
Human Resource Management performs quite a few useful functions in order to achieve its
objectives. These functions have been categorized by DeCenzo and Robins as :
• Acquisition
• Development
• Motivation
• Maintenance
HR Department
Departments of Human Resource Manager:
The employment Department
The Training and Development Department
The Compensation and Benefits Department
The Relations Department.
Acquisition
• Human
Resource
Planning
• Recruiting
• Employee
Socialization
Development
• Employee Training
• Management
Development
• Career
Development
Motivation
• Job Design
•Performance
Evaluations
•Rewards
•Compensation
•Descipline
Maintenance
• Safety and
Health
• Employee/Lab
or Relations
3. 3
Objectives of Human Resources Management
Selection and Recruitment of Qualified personnel :
1) 2. To build an Efficient and Disciplined Workforce.
2) Effective use of Human Resources.
3) Increase of worker’s Efficiency.
4) Maintenance of a cordial relationship among the worker-Management-
Owner.
5) Ensuring job Satisfaction.
6) Performance Appraisal.
7) To pay proper compensation.
8) Build up of a Strong Morality.
9) Maintaining proper Co-Ordination.
10) Taking labour welfare Activities.
External Influences on HRM
• Governmental Legislation
• Labor Unions
• Current management thought and Practice
• The Strategic , Dynamic Environment of HRM
External Influences Affect HRM
HRM Strategic Environment includes:
1) Globalization
2) Technology
3) Work force diversity
4) Changing skill requirements
5) Continuous improvement
6) Work process engineering
7) Decentralized work sites
8) Teams
9) Employee involvement
10) Ethics
4. 4
Internal & External Influences on HRM
Internal Influence:
• 1. Corporate objectives: an objective of cost reduction is likely to require HR to
implement redundancies, job reallocations etc
• 2. Operational strategies: introduction of new IT or other systems and processes
may require new staff training, fewer staff
• 3. Marketing strategies: New product development and entry into a new market
may require changes to organizational structure and recruitment of a new sales
team
• 4. Financial strategies: A decision to reduce costs by outsourcing training would
result in changes to training programmer
External Influences:
• 1. Market changes: A loss of market share to a competitor may require a change in
divisional management or job losses to improve competitiveness
• 2.Economic changes: The recession of 2009/10 has placed great pressure on HR
departments to reduce staff costs and improve productivity
• 3. Technological changes: E.g. the rapid growth of social networking may require
changes to the way the business communicates with employees and customers
• 4. Social changes: The growing number of single-person households is increasing
demand from employees for flexible working options
• 5. Political & legal changes: EU legislation on areas such as maximum working
time and other employment rights impacts directly on workforce planning and
remuneration
5. 5
Skills Needed by a Human Resources Manager
Common
Qualification
•General Education
•Managerial
Efficiency
•Technical
Competence
•BehavioralEfficiency
•Efficiency to Solve
Problem
•Decision Making Skill
SubjectBase
Qualifications
•BehavioralScience
•Philosophy
•Ethics
•Sociology
•Management
•Economics
•Law
Other Qualifications
•Personality
•Neutrality
•Leadership Qualities
•General Knowledge
•Inner Vision
•Human Relation
•Communication Skill
•Capacity to
Persuation
•Realistic Attitude
6. 6
Recruitment
Definition of Recruitment
Prof. R.W. Griffin: Recruiting is the process of attracting qualified persons to apply for
jobs that are open.
Sources of Recruitment
Every organisation has the option of choosing the candidates for its recruitment
processes from two kinds of sources:
INTERNAL 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.
Existing Worker's Promotion
Existing Worker’s Recommendations
Permanent of temporary Worker
Transfer
Reappointment
EXTERNAL Sources: Recruitment candidates from all the other sources (like
outsourcing agencies etc.) are known as the external sources of recruitment.
Internet
Advertisement
Talent Hunting
Educational Instituteion
Trade Union
Casual Applicants
Computerized Source
7. 7
Alternatives of Recruitment
Since recruitment and selection costs are high some companies try to look at
alternatives to recruitment specially when market demand for firm’s products and
services are sluggish. Removing government employees is also extremely difficult even
if their performance is marginal. Some of the options in this regard are:
Employee leasing: Hiring permanent employees of another company who
possess certain specilised skills, onlease , to meet short-term requirements
(although not popular in Bangladesh ) is another recruiting practice followed by
firms is developed countries. In this case individuals work for the leasing firm as
per the leasing agreement/arrangement. Such an arrangement is beneficial to
small firms because it helps avoid expenses and problems of personnel
administration.
Subcontracting : To meet a sudden increase in demand for its products and
services, sometimes, the firm may go for subcontracting, instead of expanding
capacities immediately. Expansion becomes a reality only when the firm
experiences increased demand for its products for a specified period of time.
Meanwhile, the firm can meet increased demand by allowing an outside
specialized agency to undertake part of the work to mutual advantage.
Employee
Leasing
Subcontract
ing
Alternatives
of
Recruitment
8. 8
Strategic Human Resource Planning:
Definition of Strategic Human Resource Planning
An organization is in the process of determining its human resource needs, it is
engaged in a process we call Strategic human resource planning.
Strategic Human Resource Planning is one of the most important elements in a
successful Human Resource Management Program.
The Process of linking human resource planning efforts to the company’s
strategic direction.
Linking Organizational Strategy of Human Resource Planning
• Mission : Determining what business the organization will be in
• Objectives and Goals : Setting goals and objectives
• Strategy : Determining how goals and objectives will be attained
• Structure :Determining what jobs need to be done and by whom
• People: Matching skills, knowledge, and abilities to required jobs
Definition of Job Analysis
According to EDWIN B.FLIPPO”Job analysis is the process of studying and
collecting information relating to the operations and responsibilities of specific
jobs.”
According to prof R.W.GRIFFIN”Job analysis is a systematized procedure for
collecting and recording information about jobs”
Methods of Job Analysis
Methodsof Job Analysis:
1) Questionnaire Method
2) Interview Method
3) Observation Method
4) Joined Method
5) Check List Method
6) Diary Method
7) Critical Incidents Method
8) Specialists Conference
Method
9. 9
Process of Job Analysis
Recruitment and Selection of Employees
Job Evaluation
Providing for Training
Determining the Wages
Transfer and Promotion of Employees.
To Ensure Sound Work Environment
Perfect Distribution of Post.
Performance Evaluation
Strengthening the Labour Management
Query for Responsibility.
Job Analysis Process
Elements of the Job Analysis
Job identification data
Job summary
Job duties
Job environment
Job specifications
Minimum qualifications
10. 10
SELECTION
Definition of Selection
According to Dale Yoder-” Selection is the process in which candidates for
employment are divided into two classes-those who are to be offered
employment and those who are not”.
The Selection Process
1. Primary Interview.
2. Filling the Application.
3. Screening the Application.
4. Evaluation of professional Experience.
5. Written Tests.
6. Viva Test.
7. Psychological Test.
8. Medical Test.
9. Personal Data Collection of candidate.
10. Final Selection.
11. Placement.
12. Induction/Orientation Training.
Selection Devices
1.Use of Human Resource planning.
2.Use of Job Description.
3.Use of job Specification.
4.Follow the selection Procedure.
5.Use of Statistical Method.
6.Qulification of interviewer.
7.Proper Employment Test.
8.Use of value & Ethics.
9.Specific Probation Period.
10.Sufficient Applicants.
11. 11
Employee Tests
Organization selects employees to get certain works done by them. So, It is
necessary to test whether particular candidates have the capabilities to perform
the. For this purpose, employers follow certain selection procedures. Most of the
companies use employment tests in order to be sure that these tests are reliable
and valid. Tests are aimed at predicting Future on a particular job. So these have
to be designed on the basis of sound job analysis programme.
Types of Employee Test.
• Intelligence Test
• Aptitude test
• Achievement Test
• Interest Test
• Personality Test
• Graphology Test
• Polygraph
Interviews
According to Garry Dessler-” An interview is a procedure designed to obtain
information from a person through oral response to an oral inquiries.”
According to Werther & Davis-” The selection is a formal, in-depth conversation
conducted to evaluate an applicant’s acceptability”.
We can say “Interview is a decision making procedure what is designed to obtain
information from a person through oral response to an oral inquiries to evaluate an
applicant’s acceptability by an applicants to proceed on”
Process of Interviews
Preparation for Interview.
Creating Environment for Interview.
Taking Interview.
Closing Interview.
Interview Evaluation.