Archive for January, 2009

Modern Perspective of HRM/PM

The growth of personnel management/ human resource management in U.S.A. and U.K was evolutionary in nature. It took place because of voluntary efforts of employers. But in India, it grew because it was made compulsory by government.

In 1931, ‘Royal Commission on labour’ recommended appointment of labour officer. So that labour problems might be solved. In 1948, Factories Act made it obligatory for certain industrial enterprises to appoint welfare officers.

The Scope of Personnel management has increases because, task of personnel manager is not only confined to recruitment of workers but also to looking after their welfare & handling their grievances. Under influence of technological development, organisation become complex and needs specialised skills & professionals. As a result, emphasis is being given to training & development aspects.

Personnel management is no longer restricted to wage earners in factories. It has become equally important in offices, sales organisation, hospitals, development institutions & in management itself.

The other term used, in personnel problem & techniques are ‘labour relations’ and ‘industrial relations’ which are used interchangeably but it is useful to distinguish them. The term ‘Labour relations’ refers to relations between management & unionised labour.

Which includes negotiations of contracts with unions day to day relations with union leads, government regulation of terms & conditions of employment. The term ‘industrial relations’ is used as synonymous with ‘ Personnel management’.

In India, the field of Personnel Management has

3 Branches – (i) Personnel Administration

(ii) Industrial Relations

(iii) Labour Welfare

  1. Personnel administration- deals with administrative aspects such as recruitment, selection, placement, promotion, wages and incentives etc.

  2. Industrial relations – deals with employer employee relationship, negotiations & collective bargaining etc.

  3. Labour Welfare- deals with working conditions of employees by provision of facilities such as canteen, housing, recreation, education etc.

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How HRM functions are changing business environment?

Human Resources Management is defined as policies and practices Involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising. These include:

  • Conducting job analyses (determining the nature of each employee’s job).

  • Planning labour needs and recruiting job candidates

  • Recruitment

  • Selecting job candidates

  • Orienting and training new employees

  • Managing wages and salaries (compensating employees)

  • Providing incentives and benefits

  • Appraising performance

  • Communicating (interviewing, counseling, disciplining)

  • Training and developing managers

  • Building employee commitment

The scope of HRM has changed over the fast few years. However, this Change has been relatively slow in comparison to the changes in their area of business, management and administration. Some HRM Sub-functions seems to be breaking away from HRM, other seems to be new sub-areas while still other seem to be changing only in term of their relative emphasis and degree of importance. Many of these changes depend on he size of the organisation in which the HRM functions occurs, the managerial philosophies, the growing importance of the functions, the changing organisational demands, employee needs and societal concerns. Managerial and organisational development, Manpower planning, organisational are incoming areas, i.e. they are now going to receive substantially more attention, they did not have any they are now going to receive substantially more attention, they did not have any prominence in the past. Training and managerial development and personal research have become increasingly important today, while the importance of appraisal, wage and salary administration, has somewhat declined in terms of relative emphasis. Employee benefits and services and worker’s health and safety have always been important personal concerns. Labour relations, public relations and plant security are ‘outgoing’ HRM sub areas which have been taken away from HRM department.

Today’s it’s firm’s workforce, its knowledge, commitment, skills and training that provides the competitive advantages for world class companies. And its HR’s job to build that competitive advantages. That means an upgrading of HR’s traditional role. Earlier, personal people first took over hiring and firing from supervisors, ran the payroll department and administrated benefits plans. The job consisted largely of ensuring that procedures were followed. The new technology in the areas like testing and interviewing began to emerge the promotion. Today, HR’s role is shifting from protector and screener to strategic partner and change agent. The metamporphosis of “personal” to “Human Resources” reflects that. In today’s flattened downsized and highly performing organisations, trained and committed employees- not machine are firms.

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Objective of HRP

  1. To ensure optimum use of human resources currently employed.

  2. To avoid balances in distribution & allocation of human resources.

  3. To assess or forecast future skill requirements of organisations over all objectives.

  4. To provide control measure to ensure availability of necessary resources when required.

  5. To control cost aspect of human resources.

  6. To formulate transfer & promotion policies.


  1. It results in reducing labour cost as it helps the management to anticipate shortages or surpluses of manpower and correct these imbalances before they become unmanageable & expensive.

  2. It helps in making optimum use of workers skill with in the organisation.

  3. It leads to improvement in overall business planning process.

  4. It enables identification of gaps of existing manpower so that connective training could be imported.

  5. It leads to greater awareness of importance of sound man power management through out the organisation.

  6. It serves as a tool to evaluate effect of alternative manpower actions & policies.

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What is Human Resources Planning?

“Manpower” human resources” may be thought as the total knowledge, skills, creative abilities, talents and aptitudes of an organisation’s work force, as well as the values, attitudes and benefits of an involved. “ Manpower Planning” and “human resources” planning are synonymous. Human resources or manpower planning is “the process by which a management determines how an organisation should move form its current manpower position to its desired manpower position. Through planning a management strives to have the right number and right kinds of people at the right places, at the right time to do things which result in both the organisations and the individual receiving the maximum long range benefits.

Human Resources Planning consists of series of activities

  1. Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry or in terms of judgmental estimates based on future plans of a company.

  2. Making an inventory of present manpower resources and assessing the extend to which these resources are employed optimally.

  3. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirement to determine their adequacy, both quantitatively and qualitatively.

  4. Planning the necessary Programmer of requirement selection, training, development, utilisation transfer, promotion, motivation and compensation to ensure that future manpower requirement are properly met.

The ultimate mission of human resources planning is to relate Future human resources to future enterprise needs so as to maximize the future return on investment in human resources. In effect the main purpose is one of matching or fitting employee abilities to enterprise requirements with an emphasis on future instead of present arrangement. In order to integrate human resources planning with corporate point of time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors effect this determination. They include business forecasts, Expansion and growth design and structural changes, management philosophy,

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The Process of Human Resource Planning

  1. Objectives of Manpower Planning:– The persons concerned with manpower planning must be clear about goals of manpower planning because once the wrong forecast of future requirement of human resources are made, it may not be possible to rectify the errors in short-run.
  2. Current Manpower Inventory:- Assessment of demand for operating personnel presents less problems of uncertainty & current manpower supply can be adjusted accordingly. But for supervisory and managerial levels projection is complex problem because required talents are not available at a short notice. This will also help in drawing recruitment & development plans to meet the needs of certain skills future.
  3. Demand Forecasting: A proper forecast of manpower required in future say, after one year, two years & so on must be attempted. The factors relevant for manpower forecasting are as follows.
(i) Employment Trends:– Manpower planning committee show examine number of employees on pay roll during past 5 year to knew trend within each group to determine whether particular group has been stable or unstable.
(ii) Replacement Needs:– arises due to death, retirement, resignation & termination of employees. It may relate to supervisory, skilled, clarical groups and must be anticipated in advance.
(iii) Productivity:- Gain in productivity will also influence requirements of manpower. Planning for productivity has several aspects. The first aspect relates to effective utilisation of manpower. The second aspect relates to installation of more productive tools, equipments. The last aspect relates to matching of skills with requirements of jobs.
(iv) Growth & Expansion:– A good organisation always tries to adopt itself to change in method & techniques of Production. Therefore Manpower planner should take all these factors into account while studying impact of various business expansion plans on manpower requirements.
(v) Absenteeism:– Means a situation when a person fails to come for work when he is scheduled to work. Due to absenteeism work get upset leading to overtime work which in turn leads to increased cost of production. The management should go into cause of absenteeism & attempt to reduce absentism as far as possible.
(vi) Work Study:– Can be used when it is possible to apply work measurement to know how long operations should take & amount of labour required. This is also known as ‘workload analysis.’
  1. Job Requirements:– Job analysis is the qualitative aspect of manpower requirements since it determines what is the quantum of work which an average person can do on a job in a day. It facilitates division of work in to different jobs.
  2. Employment Plans:– This phase deals with planning how organisation can obtain required number of right type of personnel as reflected by personnel forecasts.
  3. Training & Development Programme:– Training is essential not only for new employees but also for old employees for improving their performance. Similarly executive development programmes have to be devised for development of managerial personnel. The talent of employees are not fully productive without a systematic programme of training & development.
  4. Appraisal of Manpower Planning:– After training programmes have been implemented, an appraisal must be made of effectiveness of manpower planning. Deficiencies in programmes should be pointed out & catalogue of manpower inventory should be updated periodically. Conective actions should also be taken whenever it is necessary to remove deficiencies in manpower planning.

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The procedure for determining duties and skill requirements of a Job and kind of person who should be hired for it.

While manpower inventory is concerned with telling ‘what employees can do’, Job Analysis assesses ‘what employees are doing.’

From job analysis, specific details of what is being done and skills utilised in job, is obtained. It enables managers to understand jobs and job structure to improve to work flow or develop techniques to improve productivity. It also involves job design or redesign, co-ordinating demands on available time, individual psychological needs, technical procedures and desired performances.

Before we proceed to discuss job analysis in detail, certain terms relating to job need to understand. These terms are:-

Job:- A job may be defined as a “collection of tasks, duties and responsibilities which as a whole, is regarded as a regular assignment to individual employees,” and which is different from other assignments. In other words, when the total work to be done is divided and grouped into package we call it a “job.”

Job Description:-

It is a written record of duties responsibilities and requirements of a particular job. It is concerned with the job itself & not with the work. It is a statement describing the job in such terms as its title, location, duties, working conditions & hazards. In other words, ‘what is to be done’, and ‘how it is to be done’ and ‘why’. It is a standard of function which defines appropriate & authorised contents of a job.

Job Specification:- It is a standard of personnel and designates the qualities required for an acceptable performance. It is a written record of requirements sought in an individual worker for a given job.

Job Design:- It is the division of total task to be performed into the manageable and efficient units-position department and divisions, and to provide for their proper intergration.

After a job has been defined, it is analysed i.e., each task is described in detail. It is a procedure and a tool for determining specified tasks, operations and requirements of each job.

“It is the process of getting information about jobs: specially what the worker does; how he gets it done; why he does it’ skill, education and training required; relationship to other jobs; physical demands, environmental conditions.”

In other words, it refers to the anatomy of job.

It is a complete study of job, embodying every known and determinable factor, including duties and responsibilities involved in its performance, conditions under which performance is carried on, nature, nature of task, qualities required in worker and such conditions of employment as pay, hour, opportunities and privileges. It also emphasises relation of one job to other in the organisation.

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Purposes and Uses of Job analysis

Job analysis is an essential ingredient of kind personnel Management. It is major input to forecasting human resource requirements, job modification, job evaluation, determination of proper compensation and writing of job descriptions. The fundamental importance to manpower management programmes. The information provided by Job analysis is useful, in almost every phase of employee relations.

(1) Organisation and Manpower planning:-

Job analysis defines labour needs in concrete terms, coordinates activities of work force, and clearly divides duties and responsibilities.

(2) Recruitment, Selection:-

By indicating specific requirement of each job (ie, Skills and knowledge), it provides basis for hiring, training, placement, transfer and promotion of personnel. The goal is to match job requirement with a workers aptitude, abilities & interests.

(3) Wages and Salary: Administration:-

Job Analysis helps in salary and wages administration by indicating qualifications required for doing a specified job & risks and hazards involved in its performance.

(4) Job Re-engineering:-

It provides information which enables us to change jobs in order to permit their being manner by personnel with specific characteristic & qualification. This takes two forms:-

(a) Industrial engineering activity:-

Which is concerned with operational analysis, motion study, work simplification methods and improvements in place of work and its measurement & aims at improving efficiency, reducing unit Labour costs and establishing the production standard which the employee is expected to meet.

(b) Human engineering activity:-

Which takes into consideration human, both physical and psychological, & prepares increased efficiency & better productivity.

(5) Employee Training and Management Development:-

It provides the necessary information to the management of training & development programmes. It helps it to determine the content and subject matter of in-training courses. It also helps in checking application information, interviewing, weighing test results & in checking references.

(6) Performance Appraisal:-

It helps in establishing clear-cut standards which can be compared with actual contribution of each individual.

(7) Health and Safety:-

It provides an opportunity for identifying difficult conditions & unhealthy environmental factors so that corrective measures may be taken to minimise and avoid the possibility of accident.

This, it is systematic procedure for securing and reporting information which defines a specific job. It determines the qualifications required for a job, provides guidance in recruitment & selection, evaluates current employees for transfer or promotion, and establish requirement for training programmes.

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5 basic steps required for doing a job Analysis

Step 1 Collection of Background Information According to Terry, “the make-up of a job, its relation to other jobs, and its requirements, for competent performances are essential information needed for a job evaluation. This information can be available by reviewing available back ground information. Such as

  • Organisation charts (Which show how how job in question relates to other job & where they fit into overall organisation.
  • Class specificiations – Which describes general requirement of class of job to which the job under analysis belongs)
  • Job descriptions – which provide a starting point from which to build revised job description.

Step2: Selection of Representative Position to be Analysed

Since the analysis of all jobs would be time-consuming, few representative positions should be analysed.

Step3: Collection of Job Analysis Data

Data should be collected regarding employee qualification and requirements, either from employees who actually perform a job or from other employees (Such as foreman or supervisor) who watch the workers doing a job and thereby acquire knowledge about it or from outside persons knows as the trade job analysis who are appointed to watch employees performing.

The duties of such a trade job analyst are

(i) to outline complete scope of a job & to consider all physical and mental activities involved in determining what the worker does.

(ii) find out why a worker does a job and

(iii) Skill factor which may be needed in worker to differentiate between jobs & establish the extent of difficulty of any job.

Step 4: Developing A Job Description:-

The information collected is to be developed in form of a job description. Which is written statement that describes main features of job as well as qualifications.

Step 5: Developing Job specification:-

The last step is to convert job Description statements into job specifications i.e. to specifically mention what personal qualities, traits, skills and background is necessary for getting the job done.

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Techniques of Job Analysis Data

The determination of job tasks, skills and abilities necessary for successful. Performance and responsibilities internet in job can be obtained through such methods or approaches as the following:

  1. Personal observation

  2. Sending out questionnaries.

  3. Maintenance of log records

  4. Conducting Personal interviews.

Personal Observation:– The materials & equipment used working conditions & probable hazards, and an understanding of what the work involves are the facts which should be known by an analyst. Direct observation is especially useful in jobs that consist of physical ability like jobs of draftsman, mechanic, or weaver..

Sending Out Questionnaires:- This method is usually employed by engineering consultants. Properly drafted questionnaires are sent out to job-holders for complete & are returned to supervisors. However, information received is often unorganised & incoherent. The idea in issuing questionnaire is to elicit necessary information from job holders so that any error may first be discussed, with employee and after due corrections, may be submitted to job analyst.

Maintenance of Log Records:- The employee maintains a daily record of duties he performs, marking the time at which each task is started and finished. But this system is incomplete because it does not give us any desirable data on supervisor relationship, equipment used, and working conditions. Moreover, it is time consuming.

Personal Interviews:- May be held by analyst with the employees, and answers to relevant questions may be recorded. But this method is time-consuming &costly.

However, it may be noted that personal observation & interview approach are more or less complete & accurate. If a particular job is simple & repetative observations may be only technique required. Otherwise in most cases, interview coupled with observation constitute desirable approach.

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Recruitment /Search

According to Edwin. B. Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.”

The aim of recruitment is to attract a large number of applications from job seekers. It makes the requirements of job known to the likely candidate in the job market. It provides sufficiently large group of qualified candidates so that most eligible employees can be selected. Thus recruitment is a positive activity which seeks to persuade people to apply for jobs.

The process of recruitment:-

  1. Identifies different source of labour supply.

  2. Assesses their validity.

  3. Chooses the most suitable source or sources.

  4. Invites applications from prospective candidates for vacant jobs.

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