Managerial Functions Operative Functions: Human Resource Management (HRM)
Managerial Functions Operative Functions: Human Resource Management (HRM)
HRM is defined as a formal systems devised for the management of people within
an organization. HR manager has to performed diverse responsibilities for instance
staffing, employee compensation and benefits, and designing work.
1. Planning
Plan means look before you leap. It means what is to be done, where, how and by
whom it is to be done. One of the primary function where number & type of
employees needed to accomplish organizational goals are determined. Research
forms core HRM planning which also helps management to collect, analyze and
identify current plus future needs within the organization.
2. Organizing
It means grouping of activities with one another. Organization of the task is another
important step. Task is assigned to every employees as per their skills and activities
are integrated towards a common goal.
3. Directing
Directing is said to be a process in which the managers instruct, guide and check the
performance of the workers to achieve predetermined goals.This includes activating
employees to a different levels and guiding them to contribute towards maximum
organizational goal.
4. Controlling
1. Recruitment/Hiring
To make a pool of qualified candidates is called recruitment. Hiring is a process
which brings pool of prospective candidates who can help organization achieve
their goals and allows managements to select suitable candidates from the given
pool. It is consider a positive activity in HRM.
Describing nature of the job like qualification, skill, work experience required for
specific job position is another important operative task. Whereas, job design
includes outlining tasks, duties and responsibilities into a single work unit to
achieve certain goal.
3. Performance Appraisal
This function allows employees to acquire new skills and knowledge to perform
their job effectively. Training and development also prepares employees for higher
level responsibilities. Training is concern with present job and developing is future
oriented.
5. Salary Administration
Human Resource Department also determines pays for different job types and
incudes compensations, incentives, bonus, benefits etc. related with a job function.
6. Employee Welfare
This function takes care of numerous services, benefits and facilities provided to an
employee for their well-being.
7. Maintenance
8. Labor Relations
Labor relation is regards to the workforce who work within a trade union.
Employees in such domain form a union/group to voice their decisions affectively
to the higher management.
9. Personal Research
Apart from the usual training, an organization must invest in seminars, programs
and lectures designed to promote diversity in the workplace. If unity is to be
achieved, such training is essential as they will teach employees how to accept
thoughts, ideas and personalities of others in the workplace.
3.2 IntegrationIssues
Laws and regulations at the federal, state, and local levels regulate how companies conduct
staffing refer to legal and regularity environment. These includes
Both men and women can be the victims of sexual harassment. When it happens at
work, school or uni, it may amount to sex discrimination.
Touching, grabbing or making other physical contact with you without your
consent
Making comments to you that have a sexual meaning
Staring at you
sexual jokes and comments around or to you
questioning you about your sex life
insulting you with sexual comments
Committing a criminal offence against you, such as making an obscene
phone call, indecently exposing themselves or sexually assaulting you.
4.5 Employment-at-will
1. What is job? Job design, steps involved in job design and different
Methods of job design.
Job is a paid position of employment. It is the work that someone does
to earn money. A job consists of duties, responsibilities, and tasks (performance
elements) that are (1) defined and specific, and (2) can be accomplished,
quantified, measured, and rated.
1. Specification of tasks: This is the first step of job design under which the
individual task is specified. It means different tasks to be included in a job are
categorized and specified.
This method has limitations. Over simplification results in boredom which lead in
turn to errors.
2. Job Rotation
Moving employees from one job to another. Job rotation involves shifting a
person from one job to another, so that he is able to understand and learn what
each job involves.
3. Job Enlargement
It is the process of increasing the scope of a job by adding more tasks to it which is
similar in nature. The related tasks are combined. Job enlargement involves
expanding the number of tasks or duties assigned to a given job. Job enlargement
therefore, naturally is opposite to work simplification. Adding more tasks/ duties to
a job does not mean that new skill and abilities are needed to perform it. There is
only a horizontal expansion.
Job enlargement reduces monotony and boredom. It helps to increase interest in
work and efficiency. But there is no time increase of the job. Enlarged jobs require
longer training period as there are more task to be learned.
4. Job enrichment
In other words we can say that job enrichment is a method of adding some
motivating factors to an existing job to make it more interesting. The motivating
factors can be
d) Allowing employees to select the place at which they would like to
Work.
e) Allowing workers to select the tools that they require on the job.
Job enrichment gives lot of freedom to the employee but at the same time increases
the responsibility. Some workers are power and responsibility hungry. Job
enrichment satisfies the needs of the employees.
It is a vertical expansion of duties, some unrelated tasks are add to make your
job more challenging.
CHP. 3
1. Unattractive Jobs
If the job is boring, hazardous, tension ridden and lacking in opportunities for
advancement, very few persons may be available for such jobs. On the other hand,
if it carries good salaries, promotional avenues, or good working conditions, there
may be many persons available for such jobs. For instance traffic police, when the
contract period is limited for example 6 months contract may not encourage
maximum candidates.
extent. A candidate may not apply to the enterprise if it doesn’t carry a good
image in the society. The probability of attracting large pool of applicant is
reduced in such a case. This usually happen due to poor working conditions,
delay in salary, rude management, etc.
3. Organizational Policies
Internal policies of the enterprise may also act as a constraint on recruitment of
new persons. A policy of filling up higher positions from outside can discourage
competent persons to apply in such an enterprise (because of lack of promotion
avenues).
5. Government Policies
employees, and attract new ones.Prospective candidates will first look for work in
companies or organizations that are known to provide good working conditions
and looks out for the health and well-being of their employees.
Sources of recruitment
2. Promotions
3. Demotions
Depending on the performance of the employees of the organizations, sometimes
managers have to take decisions regarding lowering the positions of few
employees of the organization. These employees can act as a source of recruitment
to the lower positions.
5. Employees Referral
A recommendation from the current employees to fill the vacancy is called
employees referral. The present employees of a concern are informed about likely
vacant positions. The employees recommend their relations or persons intimately
known to them. Management is relieved of looking out prospective candidates.
Advantages of Internal Sources:
1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps in
increasing the morale of all employees. Generally every employee expects
promotion to a higher post carrying more status and pay (if he fulfills the other
requirements).
3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of
chances of advancement.
6. Self-Development:
It encourages self-development among the employees as they can look forward to
occupy higher posts.
Disadvantages of Internal Sources:
(ii) It is possible that the requisite number of persons possessing qualifications for
the vacant posts may not be available in the organization.
(iii) For posts requiring innovations and creative thinking, this method of
recruitment cannot be followed.
(iv) If only seniority is the criterion for promotion, then the person filling the
vacant post may not be really capable.
3. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and
agencies get commission in return.
4. Employment exchange:
People register themselves with government employment exchanges with their
personal details. According to the needs and request of the organization, the
candidates are sent for interviews.
5. Walk in interviews:
These interviews are declared by companies on the specific day and time and
conducted for selection.
6. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the available
electronic sites on which candidates upload their resume and seek the jobs.
7. Competitors:
By offering better terms and conditions of service, the human resource managers
try to get the employees working in the competitor’s organization.
Selection
Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job in organization. It is a process of matching organization’s
requirements with the skills and the qualifications of individuals.
Selection Process
The selection procedure comprises of following systematic steps:
1. Preliminary Interview
Here, the individuals are checked for their academic qualifications, skill sets,
family backgrounds and their interest in working with the firm. The preliminary
interview is less formal and is basically done to clear out the unsuitable candidates
from the selection process.
2. Receiving Applications
Once the individual qualifies the preliminary interview he is required to fill in the
application form in the prescribed format. This application contains the candidate
data such as age, qualification, experience, etc. This information helps the
interviewer to get the fair idea about the candidate and formulate questions to get
more information about him.
3. Screening Applications
Once the applications are received, these are screened by the screening committee,
who then prepare a list of those applicants whom they find suitable for the test. The
shortlisting criteria could be the age, sex, qualification, experience of an individual.
Once the list is prepared, the qualified candidates are called for the test either
through a registered mail or e-mails.
4. Employment Tests
In order to check the mental ability and skill set of an individual, several tests are
conducted. Such as intelligence tests, aptitude tests, interest tests, psychological
tests, personality tests, etc. These tests are conducted to judge the suitability of the
candidate for the job.
5. Employment Interview
The one on one session with the candidate is conducted to gain more insights
about him. Here, the interviewer asks questions from the applicant to discover
more about him and to give him the accurate picture of the kind of a job he is
required to perform.
Also, the briefing of certain organizational policies is done, which is crucial in the
performance of the job. Through an interview, it is easier for the employer to
understand the candidate’s expectations from the job and also his communication
skills along with the confidence level can be checked at this stage.
6. Checking References
The firms usually ask for the references from the candidate to cross check the
authenticity of the information provided by him. These references could be from
the education institute from where the candidate has completed his studies or from
his previous employment where he was formerly engaged. These references are
checked to know the conduct and behavior of an individual and also his potential
of learning new jobs.
7. Medical Examination
Here the physical and mental fitness of the candidate are checked to ensure that he
is capable of performing the job. In some organizations, the medical examination is
done at the very beginning of the selection process while in some cases it is done
after the final selection.
Thus, this stage is not rigid and can take place anywhere in the process. The
medical examination is an important step in the selection process as it helps in
ascertaining the applicant’s physical ability to fulfill the job requirements.
8. Final Selection
Finally, the candidate who qualifies all the rounds of a selection process is given
the appointment letter to join the firm.
Thus, the selection is complex and a lengthy process as it involves several stages
than an individual has to qualify before getting finally selected for the job.
Difference between Recruitment and Selection
Hurdles The candidates have not to cross over Many hurdles have to be crossed.
many hurdles.
Employees Training
Training is concern to fill deficiency in current job.Training is a program that helps
employees to learn specific knowledge or skills to improve performance in their
current job. It takes place after orientation. Training is the process of enhancing
the skills, capabilities and knowledge of employees for doing a particular job.
Training process molds/ shape the thinking of employees and leads to quality
performance of employees. It is continuous and never ending in nature.
1. New candidates who join an organization are given training. This training
familiarize them with the organizational mission, vision, rules, policies and
regulations and the working conditions.
2. The existing employees are trained to refresh and enhance their knowledge.
3. If any updations and amendments take place in technology and in statute
training is given to cope up with those changes. For instance, purchasing a
new equipment, changes in technique of production, computer impartment.
The employees are trained about use of new equipment’s and work methods.
4. When promotion and career growth becomes important. Training is given so
that employees are prepared to share the responsibilities of the higher level
job.
On the job training- On the job training methods are those which are given to the
employees within the everyday working of a concern. It is a simple and cost-
effective training method.The success of how much the person can learn
depends on, how the experienced employee teaches them. Most of the
training includes certain crafts, any technical areas or trades etc ( Maths
quesyion and formula). And for guidance as well as support some skilled or
A) Advantages:
2. This type of training is not very expensive in comparison to other training and it
consumes a less amount of time in learning.
4. Any kind of production isn’t affected or isn’t suffered when such a training
method is adopted.
5. The person or the trainee learns the maximum amount of rules and regulations
when they are learning about the job.
6. This takes less amount of time when it comes to learning a special skill as a
person can acquire a certain skill even in a short period of time.
B) Limitations:
4. At times when things are not happening in the appropriate way it leads
to the trainee getting a lack of motivation when they are receiving the
training.
1. Job rotation:
This training method involves movement of trainee from one job to another gain
knowledge and experience from different job assignments. This method helps the
trainee understand the problems of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor who
functions as a coach in training and provides feedback to the trainee. Sometimes
the trainee may not get an opportunity to express his ideas.
3. Job instructions:
Also known as step-by-step training in which the trainer explains the way of doing
the jobs to the trainee and in case of mistakes, corrects the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by
discussing the problem. This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects are
provided to the trainees. Usually, students from the engineering and commerce
colleges receive this type of training for a small stipend.
This type of method involves a trainee leaving their work for the time being and
they need to give or devote their entire work time for getting the necessary training
required.such training is provided to separate employees from the actual working
condition.
At this time the person does not contribute to any of the production activities that
the company does in that time. This kind of training is mainly provided or arranged
by the company itself or they may use special institutes for this purpose who
provide such kind of training.
1. Classroom Lectures
Under off the job methods of training, classroom method or lecture method is well-
known to train white collar or managerial level employees in the organization.
Under this method employees are called to the room like that of classroom to give
training by trainer in the form of lectures. This method is effectively used for the
purpose of teaching administrative aspects or on management subject to make
aware of procedures and to give instructions on particular topic.
Advantage – It can be used for large groups. Cost per trainee is low.
In this method, the different aspects of the ongoing program are explained by
a single individual to the others. This is convenient enough as the facts and
details as well as special type of information is provided to the people by
means of a lecture. To make the lecture more interesting and understanding
audio as well as video is added to it to make it more appealing to the people
present and a large number of people are trained at a time to provide more
advantages.
5. Team Discussion or seminar
In a seminar type method, the trainees present are made to write papers
regarding the topics focused on. After that the papers are read at a time and a
discussion takes place where all the people or trainees present, participate in
it. Later on after all the views are discussed then the chairman present will
take all the views together and make a decision. At times the material
regarding the topic to be discussed may already be provided to the trainees
along with the necessary information so that they are ready in advance before
the actual discussion takes place.
Definition of Career
The progress and actions taken by a person throughout a lifetime, especially those related to that
person's occupations. A career is often composed of the jobs held, titles earned and work
accomplished over a long period of time, rather than just referring to one position.
1. Exploration : A career stage that generally ends in the mid-twenties when one makes
transition from formal education to job .We start exploring about different career opportunities.
Our decision for career gets influenced by parents, peers and the financial resources. It is a time
when a number of expectations about one’s career are developed, many of which are unrealistic.
2. Establishment
The establishment period begins with the search for work and getting first job, being accepted by
peers, learning the job and gaining the first tangible evidence of success or failure in the real
world.fcareer
4. Late career stage : A career stage in which neither the person is learning about their jobs nor
they are expected to outdo their level of performance from previous years. It also has two affects
on:
o Individuals who have grown in mid-career stage
o Individuals who have stagnated or deteriorated
5. Decline (Late Stage) : This is the final stage in one’s career which is usually marked by
retirement. This is the difficult stage for everyone but hardest for those who have had continued
successes in the earlier stages and then comes the time has come for retirement.
Chp:6
What is compensation?
Compensation is a complex and crucial phenomena for organizations. Attracting and retention of
high quality human resource depend upon the institutional compensation packages.
Elements of Pay
There are six types of monetary, or core, compensation. The elements of pay are
discussed below.
1. Base pay
Employees obtain a base salary or basic pay to do their jobs. It is reiterated to employees until
they stayed in their work. Companies pay employees a base pay to each hour of their work and
get salary for their work. Companies usually define the size of base pay, based on the required
skills, effort, accountability of the workplace requirements and the harshness of working
conditions.
It is a periodic pay raise, which is based on increase in the consumer price index (CPI). It permit
workers to sustain their buying power and normal living by correcting base pay for inflation.
3. Seniority Pay
Seniority is defined as the number of years employed at current job. According to the duration of
employees’ service they obtain the periodic increase in their basic salary because of seniority pay
system. This system explain that personnel have become more valued for the institutions and
these workforce will leave the organization if they are not compensated through seniority pay
system. This rationale is based on the theory of human capital, which clarify that the knowledge
and skills of the employees are generating productive capital known as human capital.
4. Merit Pay
Merit pay plan is related to the adjustments in base pay depend upon the job performance . Merit
pay schemes contain the benefit of “norm of distributive justice.” It is a common belief that
employees are to be rewarded according to their influences.
5. Incentive Pay
It is a reward (other than base pay or salaries) which varies according to workers’
accomplishment, based on of some standardized formula, individual and group goals, or depend
upon firm earnings.
Skill-based pay plan, pay for the skill of the individual not the job actually performed.
The aim of skill based pay plan is to induce employees to master their skills and earn extra
pay(Barrett, 2007). Pay-for-knowledge plans compensate managerial service and professional
employees for effectively learning definite programs.
Dimensions of Compensations
1. Minimum Wage
Minimum wage is the lowest wage paid to the workers. It is according to legal authority
or by contract (Merriam Webster, 2014). It is the minimum daily or monthly payment that
managers lawfully pay to employees. In Pakistan the minimum wage is governed under the
Minimum Wages Act, 1948 which is applicable to both the public as well as private sector.
2. Living Wage
Living wage described as one which might empower the earner to deliver for himself
and his household a measure of frugal or economical relief , including children education, health
protection, essential social needs and old-age insurance in addition to bare essentials of food,
clothing and shelter (Mehboob & Asmat, 2014). At present, though, there is neither a generally
recognized view of what is living wage, nor there is a normally decided procedure on how to
measure it. Yet it is clarifies, in part, the reasonably minimum development in exercise of the
living wage discussion till date (Anker, 2011).
3. Fair Wage
The notion of fair remuneration is related with the volume of the business to pay. The United
States Government has also elaborated fair wage as the wage which is more than the minimum
wage but less than the living wage. The lesser limit of the fair wage is visibly the minimum
wage: the higher limit is established by the size of the industry to pay.
1. Pension
Pension is regular government servants obtain pension with other post-retirement benefits
under the law from their particular government departments on retirement at the age of 60 or
earlier after 25 years of pensionable service for civilian employees. However, in the armed forces
18 years of service is required for pension (Sayeed, 2004). Pension is a fixed sum to be paid
regularly to a person following retirement from service usually under pre-determined legal or
contractual terms (Lemke and Lins, 2013). There are diverse sorts of pensions including
compensation pension, individual pension, retiring pension, pre-mature pension, extra-ordinary
pension, superannuation pension, family pension. Government pays pension on regular basis to
retried, disabled, or incapacitated officials or their families under the laid policies and procedures
designed in Project to Improve Financial Reporting & Auditing.
2. General Provident Fund (GPF)
Provident Funds means a fund in which subscriptions of employees are deposited in
accounts. It also comprises any interest and incremental adding on such payments under the
rules of Fund (Ali, 2014). General Provident Fund (GPF) is a pension endowment in which a
specific amount of the employee’s pay is taken every month and kept by the government that is
paid back upon retirement with some addition. GPF so deducted is invested by the government in
various profitable schemes which is primarily maintained in the Public Account. It is non-
refundable if not availed by the subscriber (Nazir, 2011) .
3. House Building Advance
House building advances are granted for the construction of new houses, acquiring a
newly made house, entirely rebuilding a house previously owned by the public servant
concerned or for spreading/ modernizing a house already owned by the government servant
concerned (Hamid Ali, 2015).
4. Motor Car Advance
Subject to the general provisions of para.254 of the government of Pakistan issued from
time to time, a competent authority may approved a loan to a government employees for the
acquisition of motor car or motor boat (Hamid Ali, 2015).
5. Advances for Motor Cycle
An advance for the purchase of motorcycle may be granted to government servant
drawing pay @ Rs.1951 and above but not more than Rs. 5058 per month. These advances
should not exceed from eighteen months pay of government servant.
6. Advances for Bicycle
Advances for the purchase of bicycle may be granted to employees of the government,
who are temporary/ permanent and drawing salary up to 1950 per month.
7. Interest free advances
Public sector employees are granted interest free loan, generally miscellaneous loans for
different purposes. These advances are repayable but it is interest free.(Hamid Ali, 2015)
8. Allotment of Residence
The public servants are allotted residential houses owned or leased by the government
under such conditions as may be imposed by the local government concerned (Hamid Ali, 2015)
10. Medical Coverage for Employees and their Dependent Family Members
The federal government servants are entitle to medical facility under the (Medical
Attendance) Rules, 1959. These rules are called the West Pakistan Government Servants
(Medical Attendance) Rules, 1959. "Medical treatment" means the use of all medical and
surgical facilities available at the Government hospital in which a government servant is to be
treated (Health Deptt. Notification, 1959). Allotments of plots on subsidized rates and or
installments and compensating children’s marriages are some other benefits offered to the public
servants of Pakistan.
Definition of Career
It is an occupation started for a significant period of time by a person's with opportunities for
progress. The career is an individual's metaphorical/ symbolic/ representation "journey" through
learning, work and other aspects of life. There are a number of ways to define career and the
term is used in a variety of ways. Be a doctor, soldier, banker.
The progress and actions taken by a person throughout a lifetime, especially those related to that
person's occupations. A career is often composed of the jobs held, titles earned and work
accomplished over a long period of time, rather than just referring to one position.
1. Exploration : A career stage that generally ends in the mid-twenties when one makes
transition/change from formal education to job .We start exploring about different career
opportunities. Our decision for career gets influenced by parents, peers and the financial
resources. It is a time when a number of expectations about one’s career are developed, many of
which are unrealistic.
2. Establishment
The establishment period begins with the search for work and getting first job, being accepted by
colleagues, learning the job and gaining the first tangible evidence of success or failure in the
real world.Thus, the individual passes through recruiting process, acceptance of a job, and
4. Late career stage : A career stage in which neither the person is learning about their jobs nor
they are expected to outdo their level of performance from previous years. It also has two affects
on:
o Individuals who have grown in mid-career stage
o Individuals who have stagnated or deteriorated
6. Decline (Late Stage) : This is the final stage in one’s career which is usually marked by
retirement. This is the difficult stage for everyone but hardest for those who have had
continued successes in the earlier stages and then comes the time has come for
retirement.
All employees have basic rights in the workplace — including the right to privacy,
fair compensation, and freedom from discrimination. A job applicant also has
certain rights even prior to being hired as an employee. Those rights include the
right to be free from discrimination based on age, gender, race, national origin, or
religion during the hiring process.
Other important employee rights include:
Factory Act:
The working hours for both skilled and unskilled labour are specified in law. An
adult worker can work only for 9 hours a day, i.e., 48 hours a week with half an
hour interval between a day’s work. Mandatory of 1 day in a week must be given
as a paid break for the employee. As for children, they can work only for 4.5 hours
a day. And for overtime working the pay should be doubled.
1. Logging workers.
2. Fishers and related fishing workers. ...
3. Aircraft pilots and flight engineers. ...
4. Roofers. ...
5. Driver/sales workers and truck drivers. ...
6. Farmers, and other agricultural workers. ..
Meaning of Motivation:
Motivation is a basic psychological process. Motivation is derived from the
word “motivate”, which means to move, push or influence to proceed for
fulfilling a want.
Primary Motives:
Primary motives are the motives that are absolutely essential for a person to
satisfy. These are the basic needs of an individual that apply on everybody.
Conditions for primary motives includes:
These motives should be physiologically based.
The motives need not to be learned.
These are for the basic needs .Examples of primary motives include: food, shelter,
sleep, avoidance of pain and basic safety etc.
2. Secondary Motives:
Once the primary motives are satisfied, the individual moves on to the secondary
motives. Secondary motives include the motives that are more of a need in a
modern and developed society .The secondary motives are the ones that are learned
and then applied to satisfy personal needs and wants. Following are the major
motives that fall in the secondary motives category:
2.5) Status or Prestige Motive: some people prefer class, status and prestige over
other things. They need to be counted in the elite class and want to buy material
items that enhance their prestige. Buying luxury cars, branded clothes and
accessories.
Motivational Theories
1. Biological and Physiological needs - air, food, drink, shelter, warmth and sleep.
2. Safety needs - protection from dangerous, security of job, safety, order, law,
stability, freedom from fear.
ERG theory from 1969 compress Maslow's five human needs into three
categories: Existence, Relatedness and Growth.
1. Existence Needs
Include all material and physiological desires (e.g., food, water, air, clothing,
safety, physical love and affection). Maslow's first two levels.
2. Relatedness Needs
includes social and external esteem; relationships with significant others like
family, friends, co-workers and employers . This also means to be recognized and
feel secure as part of a group or family. Maslow's third and fourth levels.
3. Growth Needs
Internal esteem and self actualization; these impel a person to make creative or
productive effects on himself and the environment (e.g., to progress toward one's
ideal self). Maslow's fourth and fifth levels. This includes desires to be creative
and productive, and to complete meaningful tasks.