Human Resource Management
Human Resource Management
Human Resource Management
MANAGEMENT
lo1
Human Resource Management is a process of bringing people
and organizations together so that the goals of each are met.
Human resource management comprises the following:
1. HRM consists of people-related functions as hiring, training
and development, performance review, compensation, safety
and health, welfare, industrial relations and the like. These are
typically the functions of ‘Personnel Management’ and are
administrative and supportive in nature. Appropriately called
‘doables’, these activities are highly routinized and have been
Operative 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.
Functions 9. Personal Research
Research is a vital part of human resource management. It is performed to
keep a check on employee opinion about wages, promotions, work
condition, welfare activities, leadership, employee satisfaction and other key
issues.
10. Personal Record
This function involves recording, maintaining and retrieving employee
related information including employment history, work hours, earning
history etc.
Activities of HRM
1- Integrating Organizational Planning with Human Resources Requirement:
◦ For effective human resource management human resources requirement are to be considered while planning
for the organisation. Increased attention is to be provided to the human resources requirement and their
development. These are to be given priority. For expansion of the plant or starting new ventures the top
management has to consider the human resource requirement.
◦ The kind, number and quality of human resources have to be considered and decision accordingly to be
taken. The method of their procurement, appraisal, salary structure and other benefits and rewards, health
and safety provisions are to be planned and decided while planning for the organisation.
◦ Organisational planning must be closely integrated with the human resources requirements of the
organisation. The organisational strategy for launching quality product is to be linked with the HR needs,
their appraisal system, training and development, salaries and other benefits that will improve quality of the
product and put as ahead with the rivals in the competition. The strategic human resource management is the
clue to success in business.
2. Human Resource Planning:
◦ Human resource planning is one of the most important
activities of the human resource management. Human
Resource Planning helps in meeting the requirements for
the organisation. It enables the management to make
forecast for human resources and to design the policies
for their procurement in the broader interests of the
organisation and to make sure the position of the staff to
meet the challenges of the changing business and
industrial environment.
◦ In the modern times everything is fluid what will happen
tomorrow, nobody knows. Everything is changing with
greater speed than before. The economy, technology,
number and quality of workforce etc. are undergoing sea
changes.
◦ Organisations are therefore to make planning of human
resources carefully to meet the challenges thrown out by
these factors. Job analysis, job description and job
specification are the part of human resource planning. It
helps the organisation to decide on training and
development of the present staff, their salary structure,
other benefits, promotional channel which enable the
staff to plan for their careers and anticipate the future
requirements of the staff for the organisation.
3. Acquisition of Human Resources:
Good performance by the employees creates a culture of excellence which benefits the organisation in the
long run. This activity includes evaluation of jobs and people both, managing gender bias, career planning,
devising methods of employee satisfaction etc. The efforts are to be made to integrate the individual
aspirations with the objectives of the organisation. Organisation has to make clear a way for career
advancement for talented and hard working people and as for as possible plateauing of their career should
be avoided.
Fear of any kind from the minds of the employees should be removed so that they give the best to the
organisation. Allow free flow of information. Communication network should be designed in such a way
that no one should be allowed to become a hurdle. This enables the managers to take correct decisions and
that too quickly.
5. Motivation:
Motivating the people at work play a magic. Stimulating people to work hard is the most important
phenomenon. Innovative and creative instinct has to be recognized. This recognition pays. Liberal attitude
towards employees and subordinates work wonders. Motivation is an important phenomenon. Human
resources should be treated with utmost care. For better returns the motivation of employees and
subordinates become essential.
6. Training and Development:
◦ In order to improve the performance of individuals
and groups, training and development activities are
undertaken. The rapid change in technology has
increased the importance of training and
development. In some of the organizations this
activity is continuously undertaken.
◦ There is a separate cell for training and development.
Human resource development is a part of human
resource management and is constantly undertaken.
It is the crucial aspect of HRM. Training and
development is also considered as a process to foster
career development of the employees at every level
of the organisation.
◦ This activity cannot be overlooked because all the
employees’ juniors and seniors and new comers need
to be trained and developed. New employees need
training in the initial stages of their employment
known as orientation training. There are various
methods of training and development. Organisations
have to make choice of suitable method and design a
training programme for their employees and
executives.
7. Compensation and Benefits:
◦ Compensation and benefit is an activity that determines salary and wage structures, other rewards and benefits to be paid to the staff of the organisation.
The suitable rewards and benefits system increases the morale of the employees and ultimately improvement in their performance. The absence of these
adversely affects the performance of the staff. Non-financial rewards such as recognition of the work performance, praise, the privileges and rights also
play dominant role in improving performance of the employees.
◦ Such recognition of an employee in public comes through awarding trophies, certificate of appreciation, cash reward for him and his family members’
achievement.
◦ There are many other non-monetary rewards in vogue such as giving employees a treat in the form of lunch with the managing director, birthday present,
arranging picnics, distributing watches, diaries, use of company facilities, greetings on the eve of festivals and new year, providing good and well furnished
office, giving more responsibility, providing computers and telephones, special assignment, job rotation and so on
8. Health and Safety Provisions:
◦ Making adequate provisions for health and safety of
the employees, build a strong workforce. The
employees must be protected from the physical
danger and health hazards by providing for their
safety at the workplace and health care centres for
them and their families. The activity also includes
the protection of the surrounding community from
pollution and other toxic substances emitted from
the factories. The protection of health and safety of
human resources is the major responsibility of the
organisation from the social and humanitarian point
of view.
◦ The awareness among organizations has increased
in this respect. A growing concern is expressed by
the government also. Several acts are framed and
made legally applicable to each organizations in the
country. Health and safety issues are crucial
therefore organizations must take due cognizance
of the same to avoid further complications.
9. Organisation Development:
◦ Organisation development is an activity that determines the strategies of the organisation to improve the
performance of employees and their satisfaction and make the organisation effective by creating an environment
favourable for introducing change. This activity needs to frame a strategy the strategy in this regard varies
according to the size and type of organisation. The object is to increase the performance of individuals and
groups, increase the level of cooperation and teamwork in the organisation. The thrust centre is the result i.e.
quality and quantity of products and services, working conditions in the organisation.
10. Encouraging Participation in Management:
◦ Organisations encourage employee’s participation in
decision-making. Participation increases the
performance of employees and the productivity
provided participation is active on the part of
employees. Many benefits accrue to the organisation
from assured and active participation. Management has
to develop the skills of participation among employees.
After manager is satisfied the particular employee is
fully developed and competent to take decision he can
pass on some authority to him so that he can take
decisions. This process should be gradual
◦ More and more information should be shared with the
employees to make them fit to take decisions and
participate in management. Effective participation is
not that easy.
THE ‘BEST
FIT’
APPROACH
VS ‘BEST
PRACTICE’.
◦ Research on the two concepts
◦ Students will be asked to explain with examples
HR models
There are a variety of ways to approach the management of HR in a business. The business textbooks like to
describe two broad approaches to HRM which are explained further below:
◦ "Hard" HR
◦ "Soft" HR
However, it is important to remember that, in reality, these two approaches are somewhat academic in nature.
In real businesses, an HR department or manager would be likely to adopt elements of both soft and hard HR,
and in many cases would not be interested in the slightest in the distinction!
The key features of the hard and soft approach to HR can be summarised as follows:
Hard HRM
◦ Treats employees simply as a resource of the business (like machinery & buildings)
◦ Strong link with corporate business planning – what resources do we need, how do we get them and how much will they cost
◦ Focus of HRM: identify workforce needs of the business and recruit & manage accordingly (hiring, moving and firing)
Key features
◦ Short-term changes in employee numbers (recruitment, redundancy)
◦ Minimal communication, from the top down
◦ Pay – enough to recruit and retain enough staff (e.g. minimum wage)
◦ Little empowerment or delegation
◦ Appraisal systems focused on making judgements (good and bad) about staff
◦ Taller organisational structures
◦ Suits autocratic leadership style
Soft HRM
◦ Treats employees as the most important resource in the business and a source of competitive advantage
◦ Employees are treated as individuals and their needs are planned accordingly
◦ Focus of HRM: concentrate on the needs of employees – their roles, rewards, motivation etc
Key features
◦ Strategic focus on longer-term workforce planning
◦ Strong and regular two-way communication
◦ Competitive pay structure, with suitable performance-related rewards (e.g. profit share, share options)
◦ Employees are empowered and encouraged to seek delegation and take responsibility
◦ Appraisal systems focused on identifying and addressing training and other employee development needs
◦ Flatter organisational structures
◦ Suits democratic leadership style
Which is best? Soft or Hard HRM?
◦ Which of the two approaches is better? The answer is – it depends!
◦ The "hard" approach to HR might be expected to result in a more cost-effective workforce where decision-
making is quicker and focused on senior managers. However, such an approach pays relatively little attention
to the needs of employees and a business adopting a genuinely "hard" approach might expect to suffer from
higher absenteeism and staff turnover and less successful recruitment.
◦ The "soft" approach will certainly appeal to the "touchy-feely" amongst us who like to see people being
treated nicely! And you can also make a good business case for an approach that rewards employee
performance and motivates staff more effectively. However, the danger of taking too "soft" an approach is
that when all the employee benefits are added up, the cost of the workforce leaves a business at a competitive
disadvantage
WORKFORCE
PLANNING
Types of labour market, labour market trends and PESTLE.
Workforce planning
Workforce Planning is the process of analyzing, forecasting, and planning workforce supply and demand,
assessing gaps, and determining target talent management interventions to ensure that an organization has the
right people - with the right skills in the right places at the right time - to fulfill its mandate and strategic
objectives.
Organizations -- including corporations, nonprofit groups, universities and government agencies -- use
workforce planning to design the best-performing employee-management groups they can to reach goals, such
as profits, productivity or efficiency.
◦ Using workforce planning software, organizations can schedule employee hours and shifts using accurate
labor and sales forecasting that matches demand to labor needs. Workforce planning technology can also help
managers better prepare for retirements and design a talent acquisition strategy to replace retiring employees.
Labor market
Definition: A labour market is the place where workers and employees interact with each other. In the labour
market, employers compete to hire the best, and the workers compete for the best satisfying job.
Description: A labour market in an economy functions with demand and supply of labour. In this market,
labour demand is the firm's demand for labour and supply is the worker's supply of labour. The supply and
demand of labour in the market is influenced by changes in the bargaining power.
Types of labor market
1. the open or unstructured external labour market;
2. the occupational labour market;
3. the internal labour market.
1 -The open external labour market
◦ This corresponds most closely to the simple model of the labour market as an arena of competition. It
is external in the sense that employers draw their labour from an external pool and do not seek to foster long-
term employment relationships. Workers are hired and fired as needed. It is also unstructured because there are
no clear occupational boundaries within it and it is easy for workers to enter the market and move from job
to job because no prior training or qualifications are necessary.
◦ Furthermore, there is little institutional regulation in the open external labour market. Workers have few legal
rights or protections and trade unions are weak or non-existent. Therefore workers compete with each other
for employment and employers determine the level of wages in the light of how abundant or scarce labour is
in the market. This means that employees are continually exposed to external market forces.
2- The occupational labour market
◦ Occupational labour markets arise where workers have skills that can be transferred from one firm to
another. Labour markets for professional workers are often of this type; for example, doctors can work in
different hospitals, teachers can move from one school to another and lawyers from one law firm to another
without having to retrain. Occupational labour markets are external in the sense that, because workers’ skills
are transferable across firms, employers can fill vacancies by drawing on the pool of qualified workers that
exists outside the firm.
◦ Workers can also look to further their careers by moving from one firm to another in search of promotion
and better opportunities. Clearly there is potentially an element of competition in the occupational labour
market. However, unlike workers in the open external labour market, those in structured occupational labour
markets are able to insulate themselves from pressures of labour market competition to a considerable
extent.
◦ This limits the extent to which workers in an occupation are exposed to competition from workers outside it.
This in turn enables workers to act collectively to influence their terms and conditions of employment
through institutional regulation rather than leaving them to be determined by competitive market forces.
Professional associations or trade unions control entry to the occupation, for example by making the right to
work in it conditional on having certain minimum qualifications.
◦ Control of entry means that the number of workers can be restricted. This limits competition further and
means that those in the occupation are ensured of employment. It also gives trade unions and professional
associations a measure of bargaining power, which they can use through negotiation with employers to
regulate pay and conditions
3- The internal labour market
◦ Internal labour markets are essentially enterprise-based employment systems. In other words, terms and conditions
of employment are determined by rules that are internal to the organisation rather than by competitive forces in the
wider labour market. They are internal in the sense that external recruitment is limited to junior and trainee positions
within the organisation. Other vacancies are filled through internal transfers and promotion. Skills are learned on
the job and are specific to the organisation in which they are acquired, rather than being transferable across firms.
◦ This restricts the mobility of workers between firms, since the skills learned in one organisation are not equally
useful in another. Workforce reductions are achieved through ‘natural wastage’, that is by nonreplacement of
workers who leave, rather than by dismissals. Therefore there is a high degree of long-term employment security
for workers. Internal labour markets are also highly structured in that they consist of hierarchies of jobs that are
graded in relation to each other in terms of skill, responsibility and pay.
◦ Job hierarchies are also designed to provide career progression paths or ‘job ladders’ that provide opportunities for
internal transfer and promotion and so retain and motivate trained workers. Workers can climb job ladders by
acquiring training and experience in lower -level jobs that prepare them for the next rung on the ladder. In practice,
promotion is often based on length of service in a lower-level job. Internal labour markets are subject to a high
degree of internal institutional regulation
labour market trends
◦ Labor and work as we know it is undergoing a massive shift. The dynamics of the labor market have changed
drastically, and it is becoming increasingly easy to get left behind. It’s as though there is increased
unemployment, and at the same time, some job openings are available for long periods because of lack of
specialized talent.
◦ The skill level that used to be enough to navigate the labor market in the past has become
inadequate for the current requirements!
Factors affecting/predicting trend
1. Aging Populations
Most developed countries are witnessing a progressive drop in their working population. Germany,
U.S, and Japan are predicted to have a relatively thin labor force in the next 15 years. This is due to their fast
aging population. This could pose a recruitment problem in the future. However, the possibilities of
remote working have made it easier to have employees from different parts of the world. A
large number of talented young people mostly from developing countries have been hired through
this process! Migration is currently being encouraged in some developed countries to support their
labor force.
2. More Opportunities, Fewer Skills
Employment seekers now have a lot of different opportunities for work, as the labor market has
become more talent oriented. These days, it is more about what skills a person has before any other
qualities. Even though there are various opportunities, the skills, and talent required of job seekers
these days are far less. With the technological advances of the fourth industrial revolution and
groundbreaking innovations like robotic automation and Artificial Intelligence, the skills in demand
are quite a few, though the openings are numerous.
3. Industry 4.0
◦ The fourth industrial revolution will ultimately usher out a lot of jobs that we know
today. Most jobs are increasingly being computerized. It’s not all bad news though,
because this shift can also be described as the ushering in of a period of dominance
for another industry. As an example, there is a drastic reduction in record store sales.
These figures are expected to plummet even further in the coming years. However, it
is being replaced by streaming services. What this means essentially is this:
Consumer demand is not reducing; it is the method of supply that is
changing. In the music example, record store staff numbers will drop, but there is a
corresponding increase in the people working for the streaming companies.
4. Data
◦ Considering the current mode of operation of most companies, there is a high
possibility of proliferation of databases, because most of the data and information
are usually accessible from different locations. This makes it possible for hackers and
other criminals to take advantage.
◦ It has become most crucial to have a thorough check on prospective
employees and contractors before they are hired. The recruitment process can be
said to be experiencing the best period in its history. Never before has so much data and
information been available to guide in the process of employing new teams. Companies can more
accurately predict people that would generate high returns if employed
PSETLE
ANALYSIS
PESTLE in HRM
◦ The HR department is there to ensure the company is compliant and safe from legal repercussions. The
company will always come first; never employees. This is why employees feel companies lack loyalty.
◦ It’s true that HR is often on the lookout for new talent and must accommodate each one, regardless of where
they’re located. This puts plenty of strain on HR workers, who may have to be creative to achieve this goal.
Luckily, technology makes HR managers’ lives easier — everything is accessible online.
◦ PESTLE will continue to change HR and it needs to accommodate changes in the workforce. The only way
to do this successfully is by keeping an eye on political, economic, social, technological, legal, and
environmental macro-environmental factors.
◦ POLITICAL FACTORS OF HR: CHANGING HOW WE THINK AND FEEL ABOUT WORKERS
◦ Replaceable employees.
◦ A shift in focus. (working motivation etc)
◦ You’re on your own. (same job different packages)
◦ A change in pay methods.
◦ ECONOMIC FACTORS OF HR: A NEW WAY TO HIRE AND WORK
◦ The impact of globalization.
◦ New accommodations for oversea workers.
◦ SOCIAL FACTORS OF HR: HOW TO MAKE EVERYONE HAPPY?
◦ Understanding a variety of demographics in one workplace.
◦ The rights of the people
◦ TECHNOLOGICAL CHANGES IN HUMAN HR: FAST INFORMATION, TOO MUCH
INFORMATION
◦ Fast, simple communication.
◦ Simple recruitment.
◦ Information overload
◦ LEGAL FACTORS OF HR: A STRICT CONFIDENTIALITY AGREEMENT
◦ A legal responsibility.
◦ Proper verification needed.
◦ ENVIRONMENTAL FACTORS OF HR: CUTTING BACK ON PAPER AND POLLUTION
◦ Saving the tree.
◦ More remote work means less driving pollution.
The internal labor market
◦ the system by which a company looks inside its ownorganization to find a suitable person for
a senior job, instead of giving the jobto someone from outside the company
Advantages of internal recruitment
Reduce time to hire
◦ When recruiting externally, hiring teams find candidates (either through sourcing or job posting), evaluate them and, if all goes well, persuade them to
join their company. All of which takes time. Conversely, internal candidates are already part of your workplace, so the time you need to find and engage
those candidates is much less. It’s also easier to assess internal candidates because:
◦ They’re prescreened for culture fit.
◦ Their track record is easily accessible.
◦ They may not always need full interviews with managers (for example, if they are moving within their department, the department head already knows
the candidate.)
◦ All these reduce the time spent on each hiring stage and your overall time to hire.
Shorten onboarding times
◦ Everyone needs some time to adjust to a new role, but internal hires are quicker to onboard than external hires. This is because they:
◦ Know how your company operates and most of your policies and practices.
◦ May be familiar with people in their new team, especially in smaller businesses.
◦ May already know the content and context of their new roles if they move within the same team or to a similar one (for example, a sales associate
becoming a category manager).
Cost less
Research has shown that external hiring may cost 1.7 times more than internal hiring. This is because when hiring from within, you usually don’t need to:
◦ Post ads on job boards.
◦ Subscribe to resume databases.
◦ Pay for backgrounds checks.
Strengthen employee engagement
◦ Promoting from within sends a message that you value your employees and want to invest in them. Giving employees more opportunities to advance their
careers, or even letting them move to other same-level positions that may interest them, is good for morale: employees who change roles develop professionally
and others know they may have similar opportunities in the future. This helps to build a culture of trust that enhances employee engagement and retention.
Disadvantages of internal recruitment
Despite all the merits of internal recruitment, there are some things to keep in mind. Hiring from within can:
Create resentment among employees and managers
◦ Employees who were considered for a role could feel resentful if a colleague or external candidate is eventually hired. Also, managers are often
uncomfortable losing good team members and may even go so far as to hinder the transfer or promotion process.
Leave a gap in your existing workforce
◦ When you promote someone to fill an open position, their old position becomes vacant. This means that a series of moves and promotions may ensue
that could disrupt your business’ operations. Ultimately you may need to turn to external recruitment in addition to your internal hire.
Limit your pool of applicants
◦ While your company may have a lot of qualified candidates for specific positions, this isn’t necessarily true for every open role. For example, if a role is
fairly new to your business, your employees will have other specialties and may not be able to fill this skills gap. Relying solely on internal hiring means
you could miss the chance to hire people with new skills and ideas.
Result in inflexible culture
◦ Doing most of your hiring from inside your business may result in a stagnant culture. This is because employees can get too comfortable with the ‘way
things are done’ and struggle to spot inefficiencies and experiment with new ways of working. An inflexible culture will be more problematic in
leadership positions where employees may need to advocate for change and improvements instead of relying on established, inefficient practices.
External hires are essential in shaking up culture and offering a fresh perspective on existing problems.
Employee turnover refers to the number or percentage of workers who leave an
organization and are replaced by new employees. Measuring employee turnover can
be helpful to employers that want to examine reasons for turnover or estimate the
cost-to-hire for budget purposes
Voluntary Turnover vs Involuntary Turnover
◦ Voluntary turnover is any instance in which an employee actively chooses to leave
an organization. This can happen as a result of better job opportunities elsewhere,
conflict within the workplace, disengagement, and more.
Employee ◦ Involuntary turnover is when an employer chooses to terminate an employee,
possibly because of poor performance, toxic behavior, or other reasons.
turnover
Knowing the cost of employee turnover
Putting a cost on employee turnover can help you make a business case for better management, and can help
you work towards reducing the costs.
The cost of turnover includes the full cost of replacing a worker who leaves. These costs are financial and
administrative, and often include:
◦ Hiring costs, including advertising and the selection process
◦ Temp cover while the post is vacant
◦ Training for the replacement employee
Job Stability
◦ Job Stability refers to the stability that one has in his/her has or desires in job or occupation. Job Stability can also be understood as
the duration one perceives to keep his/her current job without external factors. Not long time ago this was one crucial parameters
in selecting a job, people chose stability over nature of work. That was the reason people sought government jobs. With the
changing times the scenario has just reversed, aspirants are choosing skills and quality of work over job stability.
◦ average tenure in a company has gone much down. There is one thing that have always been felt is that job stability will not always
lead to life stability .Job satisfaction is what then comes into picture. While several conditions are considered for stability –output
from employees, satisfaction, economic growth of the country, growth of company and the employee, productivity are one of the
few. Japan is the country that is known to have job stability index higher than most of the countries which are developed. We live in
the times where stable job might be a myth. Health care, good retirement plans, provident funds are few ways in which there is
stability added to the job that one does.
◦ A stable job is not that one finds easily these days .Even people at the management holding key positions can’t be secure of their
jobs, if the shareholders are not happy with the way the company is functioning, the CEO might have to resign. Acquiring new
skills and teaching them can help one become firm in one’s position. The technology and skill sets are changing every day, if one
has to survive in the market one should not become obsolete. Information is what might get you there but knowledge is that will
make you sustain.
Employee retention
Employee retention is the organizational goal of keeping talented
employees and reducing turnover by fostering a positive work
atmosphere to promote engagement, showing appreciation to
employees, and providing competitive pay and benefits and healthy
work-life balance. Employers are particularly interested in retaining
employees during periods of low unemployment and heightened
competition for talent
Employee retention
Why employee retention is important
◦ High rates of employee turnover can harm organizations' ability to carry out their mission because of
impairments to continuity, loss of institutional knowledge, and high costs of replacing departing workers.
Diminished productivity and competitive advantage are among the biggest losses caused by employees
leaving an organization.
◦ Employee departures can also lower morale and spur more employees to leave the organization. Employee
retention is also important to team building and cohesion in the workplace, so workers can come to trust and
depend on each other.
◦ Another negative effect of turnover is the impact on customers, who can notice that they are dealing with a
continual flow of different people
Employee retention strategies
No matter the size or stage your business is currently at, having employees leave is just bad for business. a high
employee turnover rate can cost “twice an employee’s salary to find and train a replacement.” Not only are
there financial repercussions, a high turnover rate can also lower the knowledge base in your company and
decrease performance and morale.
If you want to avoid this negativity, it’s best to retain your best employees. And, you can do that by following
these seven tips.
◦ 1. Hire Selectively
Before you can begin to retain employees, you have to make sure that you have the right employees to begin
with. “Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit
well with the company culture, managers, and co-workers.”
2. Offer a Competitive Benefits Package Salary
◦ If you want to keep top-notch talent, then you’re going to have to pay them well. Entrepreneur notes that
salaries are based on the following:
◦ Employee skill and experience
◦ Supply and demand
◦ Geographical location
◦ Worker seniority
However, a high salary isn’t always the deciding factor when employees to seek employment elsewhere.
Many times they are looking for competitive benefits. Make sure you provide, “health insurance, life insurance,
and a retirement-savings plan is essential in retaining employees.” Also offer additional perks such as flextime
and the option of telecommuting that fit the needs of your employees.
3 . Provide a Comfortable Work Environment and Culture
◦ Have you ever walked into a room and felt either unsafe or uncomfortable? Image doing that every workday for
eight or more hours a day.Employees want to feel safe and comfortable at work. That’s why it’s important that your
office is properly ventilated, well-lit, and at a comfortable temperature. “Designing a comfortable office
environment is about more than aesthetics; careful attention to design can give a boost to employee happiness.”
◦ You also need to have a culture that matches your industry, engages your employees, and motivates them.
4. Offer Training
◦ Entrepreneur recommends that “you should offer skills enhancement to all your workers.” Why? “New technology,
new selling techniques, changes in employment laws, and the huge impact of the internet are all compelling reasons
to keep permanent employees in the loop.”Here are some ways to keep your employees trained:
◦ Computerized training
◦ DVDs, audiotapes, books, articles and pamphlets
◦ Mentoring programs
◦ Outside seminars and classes
5. Listen to Them
◦ You can learn a lot when listening to employees. Maybe it’s a great new business plan that can be
implemented, which makes them feel like they’re a part of the entire business process. Perhaps you heard
they have a sick family member, so you want to send them a card or flowers or simply wish them
condolences. You can always spare a few minutes to find out what’s going on with your employees in both
their professional and personal lives.
◦ Bonus tip: Conduct “stay” interviews so you can find out exactly why employees have remained with the
company and what it would take for them to leave.
6. Quarterly Reviews
◦ Quarterly reviews, or evaluations, are a major assist. These one-on-one meetings allow you to set goals and
define how you want these goals to be achieved. However, this discussion should also include asking them
what they need to accomplish these goals. Remember, this is should be a conversation and not a lecture.
7. Recognize Their Accomplishments
◦ Finally, and perhaps most important, you have to recognize the accomplishments of employees. This could
be a simple thank you or handwritten well-done note. If you want to raise the stakes, you could thank them
by introducing them to new clients, sponsoring them at an industry event/conference, stock options, or
awarding a prize.
◦ However you decide to reward your employees, praising employees for completing performance goals is one
of the most effective ways to make them feel appropriate, which will make them want to stay with you for
the long haul.
The impact of legal and regulatory framework
◦ Statutory compliance, in HR, refers to the legal framework within which organizations must
operate, in the treatment of their employees.
The impact of legal and regulatory framework
◦ Changes in technology and its positive impact especially to HR practices have always been a welcome treat.
For one, advancement in technology leads to positive results in the way businesses is managed; even
departments in companies benefit from such changes including human resource management.
◦ Talent Search
◦ Admittedly, prior to modern technology recruitment remains a hit and miss process apart from it being too costly.
You only have the print publications to post job openings and with the limited time, only a select few will be able to
read the post. These days, posting a job opening online is virtually free and widely available for numerous
prospects to see.
◦ Employee Training
◦ Training is another costly human resource management process, yet cannot be ignored as training
improves workerscapabilities on the job. With technology, training is now more efficient by allowing remote
workers get full access to training materials provided by the company anytime, anywhere.
◦ Data Management
◦ paperwork are printed on paper and stored indefinitely until any one in those files needs to be retrieved. This
process makes data retrieval too time consuming. Electronic imaging and cloud storage have both changed the way
documents are stored and retrieved. Managers and employees need not physically be in the office to review
documents.
◦ Employer Branding
◦ Employer branding is a concept currently being embraced by organizations and for good reasons. With
appropriate efforts employer branding helps improve talent acquisition. With technology, employer branding
becomes highly achievable by the use of social media, blogging and online PR for community engagement as
well as prospective talents. Digital technology complements various employer branding activities on ground
making the whole campaign highly productive and effective.
◦ Performance Measurement
◦ Human resource is keen on measuring the performance of employees as their positive performance is
tantamount to overall organizational success. Likewise collective information on workers performance will be
helpful in developing future business operations. Human resource can now make use of softwares designed
to measure such performances with capability of determining how they can be improved.
Recruitment:
Sources of recruitment: internal vs external
recruitment.
Job analysis, job descriptions, personal
specifications and competency
frameworks
Recruitment and selection approach
◦ Internal recruitment
◦ External recruitment
◦ It is advisable for the organization to adopt internal method of recruitment which can be considered as the
basis of individuals in developed and constant companies. The internal type of recruitment may provide the
opportunity to alter the position of job to anyone in the Company.
◦ Internal Recruitment may construct the robust reliability with the Company as the workers have the
opportunity to alter their location after some point of time. There is a close links between the internal
recruitment and the human resource planning, work analysis, job design and human resource development.
On the other side, the internal source of recruitment offers opportunity for the promotion within the
business.
Internal
◦ In this process, the hiring of employees is done by transferring the employees from one department to another
department or by promoting the employee from one level to another higher level. The following are the most
common methods of internal recruitment:
◦ Internal advertisement
◦ Promotion
◦ Transfer
◦ Reemployment of former employees
◦ Employees hired earlier on the contract basis or for part-time work.
◦ Retired employees
◦ Internal Recruitment boosts the morale of the employees that they get a chance to prove their abilities and
efficiencies. Furthermore, no induction training is required, as the employees are already familiar with the
organisation and the job as well. However, this process stops new talent from entering the organisation. In addition
to this, there are possibilities of partiality among employees.
External
Definition of External Recruitment: External Recruitment refers to recruitment in which the candidates are selected from outside the
organisation. Keeping aside, the talent existing within the organisation, this source involves employing such methods that will help to find out
the best employees which are outside the organisation. However, it is a tough task, but it has a very positive impact as compared to internal
recruitment.
The process is quite time-consuming as well as slow because of a number of steps involved in it, but it helps the organisation to hunt the best
candidate among the long list of candidates. Moreover, in this source of recruitment makes the concern, openly choose the top talent
considering various parameters like skills, abilities, qualification, experience, etc. In addition to this, it brings new ideas to the organisation. But
there is one drawback that the organisation has to invest a huge amount in advertising, training, and induction of the employee. Some
examples of such recruitment are:
◦ Campus Recruitment
◦ Job Portals
◦ Job fairs and seminars
◦ Waiting lists
◦ Employment Exchanges
◦ Job consultancies
◦ References and recommendations
◦ Direct Walk-ins
◦ Ads on newspaper, magazines, and website, etc
Conclusion
nine key
business competencies that HR professionals need
to be effective in the workplace: Effective
communication; consultation; ethical practice;
critical evaluation; business acumen; leadership and
navigation; technical expertise; cross-cultural
awareness, and relationship management
SELECTION:
MAIN METHODS OF
SELECTION: STRENGTHS
AND WEAKNESSES OF EACH.
RELIABILITY AND VALIDITY
AS KEY CRITERIA.
◦ MEANING OF SELECTION:
◦ Selection is the process of picking up individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under
◦ Definition of Selection: Process of differentiating
◦ “Selection is the process of differentiating between applicants in order to identify and hire those with a
greater likelihood of success in a job.
1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate
unqualified applications based on information supplied in application forms. The basic
objective is to reject misfits.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests.
There are various types of tests conducted depending upon the jobs and the company.
These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to
judge how well an individual can perform tasks related to the job
3. Employment Interview: The next step in selection is employment interview. Here
interview is a formal and in-depth conversation between applicant’s acceptability. It is
considered to be an excellent selection device. Interviews can be One-to-One, Panel
Interview, or Sequential Interviews. Besides there can be Structured and Unstructured
interviews, Behavioral Interviews, Stress Interviews.
Selection 4. Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks can be
process through formal letters, telephone conversations. However it is merely a formality and
selections decisions are seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is the
selection decision is to be made. The final decision has to be made out of applicants who
have passed preliminary interviews, tests, final interviews and reference checks. The views
of line managers are considered generally because it is the line manager who is responsible
for the performance of the new employee.
6. Physical Examination: After the selection decision is made, the candidate is required
to undergo a physical fitness test. A job offer is often contingent upon the candidate passing
the physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have
crossed all the previous hurdles. It is made by way of letter of appointment.
8. Final Selection
Selection methods
◦ Definition
◦ In today's dynamic business environment, organizations use several methods to connect people's knowledge,
skills, and competencies with the responsibilities and duties for a given job. A best practice in this area that is
rapidly becoming an industry standard is to run an employee selection test, or an assessment that measures
an individual's personality, aptitude, and/or abilities
1- Assessment Centers
These aren't places employees go to take a test; rather, the phrase is used to describe a testing process that analyzes
social, communication, and analytical skills. The tests consist of simulations and exercises to evaluate how an
individual would perform in real-world situations. Assessment centers also use multiple trained raters to measure
results.
The advantages of assessment centers include:
◦ Reducing operational costs by finding the right candidate for the job
◦ Allowing for informed decisions regarding training opportunities, and
◦ Being less likely to differ by gender or race than other tests
The disadvantages of assessment centers include:
◦ They may be costly to administer and rate
◦ Manually assessing responses increases waiting time for results, and
◦ Results may be subjective due to manual grading
2- Biographical Data
Biographical data instruments evaluate leadership, teamwork, and/or specific job-related skills, such as
knowledge of certain software or accounting procedures. These tests gauge an individual's education,
experience, and training as it relates to success in the job you're hiring for.
The advantages of biographical data are that:
◦ It can be administered manually or electronically
◦ It's cost effective for a large number of test takers, and
◦ It effectively analyzes potential turnover and performance rates
The disadvantages of biographical data are that:
◦ Individuals can easily manipulate the results by choosing favored answers
◦ It provides minimal data for development and training, and
◦ It may be expensive and time consuming to develop internally
3- Cognitive Ability Tests
Cognitive tests measure an individual's logic, reasoning, reading comprehension, and mathematical abilities.
Ronnie points out that these tests can provide organizations with valuable insight for high-skilled positions like
engineering, accounting, and technology.
advantages of cognitive tests include:
◦ Their ability to predict job performance for more complex positions
◦ They are not easily manipulated by the test taker, and
◦ They are cost effective for a large number of test takers
disadvantages of cognitive tests include:
◦ Being more likely to differ by gender and race than other tests, and
◦ They may be expensive and time consuming to develop internally
4- Integrity Tests
Unethical decisions in today's dynamic global environment cost organizations millions and can result in a
decrease in market share and increase in a company's churn rate (or non-renewing customers). integrity
tests ask questions about an individual's past experiences relating to ethics and integrity, and/or provide
scenarios in which they must choose the best ethical decision.
The advantages of integrity tests are that they:
◦ Inform test takers of the importance of ethics within the organization
◦ Can be administered manually or electronically, and
◦ Are cost effective for a large number of test takers
The disadvantages of integrity tests include that:
◦ The questions may be too direct or intrusive to some test takers, and
◦ Individuals can easily manipulate the results by choosing favored answers
5- Interviews
interview process by requires their hiring manager to collaborate with a recruiter in order to develop interview
questions with a rating scale for the job vacancy. This process will reduce non-merit-based evaluations and help
focus the hiring process on analyzing an applicant's competencies required for the job.
advantages of interviews are that they:
◦ Measure presentation and verbal skills
◦ Candidates expect and are prepared for this type of employee selection tests, and
◦ Can be cost effective, if time management strategies are used by the interviewer
disadvantages of interviews include:
◦ Individuals can easily manipulate the results by answering questions favorably
◦ They are time consuming for a large number of applicants, and
◦ They're often subjective even if pre-determined questions are constructed with a rating system
ON-BOARDING AND
INDUCTION:
THE ISSUES AFFECTING
SUCCESSFUL
INDUCTION AND
SOCIALISATION OF
EMPLOYEES.
Induction and Socialization
Problems of orientation
An induction programme can go wrong for a number of reasons. The human resource department should
try to avoid such error’s come of them there: -
It is the process of adaptation. It is the process by which new employees attempt to learn and inculcate the
norms and values of work roles in an organization. Learning and inculcating the norms and values of work
group are necessary for proper adjustment and job performance.
1. Socialization is based on several assumptions
2. New employee suffer from anxiety and require adjustment.
3. socialization strongly affects employee programme and stability of organization.
◦ Pre arrival stage
It recognizes that all the new recruits arrive in the organization with a set of values, norms, expectations and learning. This includes
both the work to be done and the organization. For example in a business schools, student acquire certain idea’s regarding the
nature of their future jobs, pay packages, and carrier progress. At the recruitment stage many organizations give job preview which
helps the prospective employees to learn more about the job and the organization.
Encounter stage
When the new employees join the organization, he encounter the realities of the situation in term of his job, work culture,
subordinates and peer’s. if the expectations of the individual are in the tune with the organizational realities, he adapt organization
quickly. On the other hand, if there is a marked difference between expectations and realities, socialization is essential to replace his
previous assumptions with realities. At the other extreme, the individual cannot recognize with the values and norms of the
organization and quits the job.
Metamorphosis stage
In this stage, the new employee acquire the skills require to adjust with the values and norms of the organization. He brings
necessary change in his attitude and role behaviour to suit the organization’s culture. Such changes make the employee self
confident and he feels accepted by other member’s of the organization. The completion of socialization process is characterized by
fellings.
‘Induction/social orientation’
refers to a process by which a
new joinee acclimatizes to the
work environment and new
assignment. It is the process
of receiving new employees
to the company and giving
them basic information that
is needed to get them settled
quickly and commence their
work. The term ‘socialization’
refers to the manner in which
the new employees blend
with the team and develop
team skills and working
relationships in the long
term. Many companies also
refer to the period from when
the employee accepts the
offer (anticipatory
socialization) till the period
they are settled down in their
job in the first few days
(encounter) as onboarding.