Definition of Human Resource Management

Human Resource Management

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers. Job analysis is primary tool in personnel management. In this method, a personnel manager tries to gather, synthesize and implement the information available regarding the workforce in the concern. A personnel manager has to undertake job analysis so as to put right man on right job.

HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives.

There are two outcomes of job analysis:

1. Job description
2. Job specification

The information collected under job analysis is:

1. Nature of jobs required in a concern.
2. Nature/ size of organizational structure.
3. Type of people required to fit that structure.
4. The relationship of the job with other jobs in the concern.
5. Kind of qualifications and academic background required for jobs.
6. Provision of physical condition to support the activities of the concern. For example- separate cabins for managers, special cabins for the supervisors, healthy condition for workers, and adequate store room for store keeper.

Advantages of Job Analysis

1. Job analysis helps the personnel manager at the time of recruitment and selection of right man on right job.
2. It helps him to understand extent and scope of training required in that field.
3. It helps in evaluating the job in which the worth of the job has to be evaluated.
4. In those instances where smooth work force is required in concern.
5. When he has to avoid overlapping of authority- responsibility relationship so that distortion in chain of command doesn’t exist.
6. It also helps to chalk out the compensation plans for the employees.
7. It also helps the personnel manager to undertake performance appraisal effectively in a concern.

 A personnel manger carries analysis in two ways:

1. Job description
2. Job specification

 Job Description

A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative,^[1] but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies.

Job Description is an organized factual statement of job contents in the form of duties and responsibilities of a specific job. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job. This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as:

1. Title/ Designation of job and location in the concern.
2. The nature of duties and operations to be performed in that job.
3. The nature of authority- responsibility relationships.
4. Necessary qualifications that is required for job.
5. Relationship of that job with other jobs in a concern.
6. The provision of physical and working condition or the work environment required in performance of that job.

 Advantages of Job Description

• It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances.

1. It helps in recruitment and selection procedures.
2. It assists in manpower planning.
3. It is also helpful in performance appraisal.
4. It is helpful in job evaluation in order to decide about rate of remuneration for a specific job.
5. It also helps in chalking out training and development programmers.

 Job Specification

Also known as employee specifications, a job specification is a written statement of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. It also includes general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc.

Job Specification is a statement which tells us minimum acceptable human qualities which helps to perform a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner. Job specification helps in hiring an appropriate person for an appropriate position. The contents are:

1. Job title and designation
2. Educational qualifications for that title
3. Physical and other related attributes
4. Physique and mental health
5. Special attributes and abilities
6. Maturity and dependability
7. Relationship of that job with other jobs in a concern.

Advantages of Job Specification

1. It is helpful in preliminary screening in the selection procedure.
2. It helps in giving due justification to each job.
3. It also helps in designing training and development programmers.
4. It helps the supervisors for counseling and monitoring performance of employees.
5. It helps in job evaluation.
6. It helps the management to take decisions regarding promotion, transfers and
7.  giving extra benefits to the employees

Employee Testing and Selection Learning Objectives

After you have read this chapter, you should be able to:

 –   Describe why selection and placement must consider both person-job and

                Person-organization fit.

–     Diagram the sequence of a typical selection process.

–     Identify three types of selection tests and legal concerns about their uses.

–     Discuss several types of Selection interviews and some key considerations when conducting these interviews.

–     Explain how legal concerns affect background investigations of applicants and use of medical examinations in the selection process.

Selection

– The process of choosing individuals who have needed qualities to fill jobs in  an organization.

– Organizations need qualified employees to succeed

• “Goof training will not make up for bad selection”
• “Hire hard, manage easy.”

 The Selection Process

          The Selection Process typically consists of eight steps:

1. initial screening interview
2. completion of the application form
3. emulation tests
4. comprehensive interview
5. background investigation
6. conditional job offer
7. medical/physical exam
8. permanent job offer

A. The screening of inquiries

Based on job description and job specification, some of the respondents/applicants can be eliminated.

The provision of screening interviews

The screening interviews are an excellent opportunity for management to describe the job in enough detail so the candidates can consider whether they are really serious about making application.

B. Completing the Application Form: Key Issues

– Once the initial screening has been completed, applicants are asked to complete the organization’s application form.

 – The amount of information required may be only the applicant’s name Address, and telephone number.

 Completing the Application Form: Key Issues

      ▪ Legal considerations

 – Omit items which are not job-related; e.g., sex, religion, age, Completing   The Application Form: Key Issues

– Successful applications

– Information collected on application forms can be highly predictive of Successful job performance.

           – Forms must be verified and continuously reviewed and updated.

           – Data should be verified through background investigations.

           – National origin, race, color, and disability.

           – Includes statement giving employer the right to dismiss an employee for Falsifying information.

           – Asks for permission to check work references.

C.    Employment Tests

▪ Estimates say 60% of all organization use some type of employment tests.

– Performance simulation tests: requires the applicant to engage in specific job behaviors necessary for doing the job successfully.

– Work sampling: job analysis is used to develop a miniature replica (i.e., small sample) of the job on which an applicant demonstrates his/her skills.

 – Assessment centers: A series of tests and exercises, including, individual and group simulation tests, is used to assess managerial potential or other complex sets of skills.

– Testing in a global arena: Selection practices must be adapted to cultures and regulations of host country.

 D.    Comprehensive Interviews:

        ▪ Interviews involve a face-to-face meeting with the candidate to probe areas  not addressed by the application form or tests.

       ▪ These are universal selection tool.

       ▪ Interview Effectiveness

              – Interviews are the most widely used selection tool.

              – Often are expensive, inefficient, and not job-related.

              – Possible biases with decisions based on interviews include prior knowledge about the applicant, stereotypes etc.

              – Impression management, or the applicant’s desire to project the “right”   image, may skew the interview results. Interviews have short and  inaccurate memories: note-taking and videotaping may help.

             –  Structured interviews use fixed questions designed to assess specific job-related attributes. More reliable and valid then unstructured ones. Best for determining organizational fit, motivation and interpersonal skills.

Especially useful for high-turnover jobs and less routine ones.

Comprehensive Interviews:

▪ Behavioral Interviews

            – Candidates are observed not only for what they say, but how they

               behave.

            – Role playing is often used.

Comprehensive Interviews:

      ▪ Realistic job Preview

            – RJP’s present unfavorable as well as favorable information about the job to

               applicants.

            – May include brochures, films, tours, work sampling, or verbal statements

               that realistically portray the job.

            – RJP’s reduce turnover.

E. Background Investigation:

     ▪ Verify information from the application form

     ▪ Typical information verified includes:

             – Former employers

             – Previous job performance

             – Education

             – Legal status to work

             – References

             – Criminal records

Qualified privilege

                   – Employers may discuss with previous employers without fear or reprisal /

                      Punishment as long as the discussion is about job-related documented

                      facts.

                   – One-third of all applicants exaggerate (Overstate) their backgrounds or

                      Experiences.

                   – A good predictor of future behavior is an individual’s past behavior.

                   – Employers may discuss with previous employers without fear of reprisal /

                      Punishment as long as the discussion is about job-related documented facts.

                   – One-third of all applicants exaggerate (Overstate) their backgrounds or

                      Experiences.

                   – A good predictor of future behavior is an individual’s past behavior.

Background Investigation Methods:

                   – Internal investigation: cheeks former employers, personal references

                      And possibly credit sources (i, e., sources of credentials the applicant

                      Earned).

                   – External investigation: Uses a reference-checking firm which may obtain

                      more information, while complying with privacy rights.

Background Investigation

                      Information – Documentation, including who called, questions asked,

                      Obtained/not obtained, is important in case an employer’s hiring decision

                      is later on challenged.

E.     Conditional job Offers:

              – Offers of employment made contingent upon successful completion of

                 background check, physical/medical exam, drug test, etc.

              – May only use job-related information to make a hiring decision.

 F.     Medical/physical Examination

              – Should be used only to determine if  the individual can comply with the

                 Essential functions of the job.

 G.    Permanent Job Offers

              – Actual hiring decision generally made by the department manager.

              – Candidates not hired deserve the courtesy of prompt notification.

The Comprehensive Approach

              – Comprehensive selection approach puts applicants through all the steps

                 in the selection process before making a decision.

              – Assesses both strengths and weaknesses and is considered more realistic.

 Now it’s Up to the Candidate

              – The candidate now has to decide whether this is the job for him or her.

              – Applicants who are not hired this time will still form an impression about

                 The company.

              – Management should assure the selection process leaves them with a

                 Favorable impression of the company.

              – Suggestions for making your interviews as an applicant successful are:

              – Do some homework on the Company.

              – Get a good night’s rest the night before.

              – Dress appropriately.

              – Arrive for the interview a few minutes early.

              – Use a firm handshake.

              – Maintain good eye contact.

              – Take the opportunity to have practice interviews.

              – Thank the interviewer at the end of the interview and follow up with a

                  thank you note.

 Nature of Human Resource Management

The emergence of human resource management can be attributed to the writings of the human religionists who attached great significance to the human factor. Lawrence Apply remarked, ―Management is personnel administration‖. This view is partially true as management is concerned with the efficient and effective use of both human as well as non-human resources. Thus human resource management is only a part of the management process. At the same time, it must be recognized that human resource management is inherent in the process of management. This function is performed by all the managers. A manager to get the best of his people, must undertake the basic responsibility of selecting people who will work under him and to help develop, motivate and guide them. However, he can take the help of the specialized services of the personnel department in discharging this responsibility. The nature of the human resource management has been highlighted in its following features :

  I. Inherent Part of Management : Human resource management is inherent in the process of management. This function is performed by all the managers throughout the organization rather that by the personnel department only. If a manager is to get the best of his people, he must undertake the basic responsibility of selecting people who will work under him.

 II. Pervasive Function : Human Resource Management is a pervasive vetoing of management. It is performed by all managers at various levels in the organization. It is not a responsibility that a manager can leave completely to someone else. However. He

may secure advice and help in managing from experts who have special competence in personnel management and industrial relations,

 Objective of Human Resource Management

According to Scott, Clothier and Spiegel, ―The objectives of Human Resource Management, in an organization, is to obtain maximum individual development, desirable working relationships between employers and employees and employers and employees, and to affect the molding of human resources as contrasted with physical resources‖. The basic objective of human resource management is to contribute to the realization of the organizational goals. However, the specific objectives of human resource management are as follows:

To ensure effective utilization of human resources, all other organizational resources will be efficiently utilized by the human resources.

1. To establish and maintain an adequate organizational structure of relationship among all the members of an organization by dividing of organization tasks into functions, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organization.
2. To generate maximum development of human resources within the organization by offering opportunities for advancement to employees through training and education.
3. To ensure respect for human beings by providing various services and welfare facilities to the personnel.
4. To ensure reconciliation of individual/group goals with those of the organization in such a manner that the personnel feel a sense of commitment and loyalty towards it.
5. To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards. In order to achieve the above objectives, human resource management undertakes the following activities : (i) Human Resource Planning, i.e., determining the number and kinds of personnel required to fill various positions in the organization. (ii) Recruitment, selection and placement of personnel, i.e., employment function. (iii) Training and development of employees for their efficient performance and growth. (iv) Appraisal of performance of employees and taking corrective steps such as transfer from one job to another. (v) Motivation of workforce by providing financial incentives and avenues of promotion. (vi) Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieve higher standard of living and to motivate them to show higher productivity. (vii) Social security and welfare of employees.

Function of Human Resource Management

The main functions of human resource management are classified into two categories:

(a) Managerial Functions and

(b) Operative Functions

Managerial Functions following are the managerial functions of Human Resources Management.

Legacy of HRM :

The legacy of HRM needs to be analyzed from two different perspectives to get a better insight into its nature. These are 1. the Western context 2. the Indian context.

1. Western Context: The origin of HRM, as is known today, date back to ancient times. One fined a reference of HR policy as early as 400 B.C., when the Chaldeans had a sound incentive wage plan. All that has changed over the years is the status of the employees, their roles and relationship-inter personal and inter-group. The status of labor prior to industrial revolution was extremely low and the relationships were characterized by slavery, seldom and guild system. The slaves performed manual tasks to agricultural, military and clerical responsibilities. The efficiency levels were low due to over-dependence on negative incentives and negligence of positive incentives.

 Final Recruitment:

Personnel File:

–     Job Application/ Bio Data

–     Appointment Letter

–     Job Contract

–     Increment Sheet

–     Leave Record

–     Age Certificate

–     Performance Sheet

–     Identification Card

–     Photograph Etc.