HUMAN RESOURCE

MANAGEMENT
What is HRM?

•Human resource management (HRM) is the practice of

recruiting, hiring, deploying and managing an organization's
employees.
• HRM is often referred to simply as human resources (HR). A
company or organization's HR department is usually
responsible for creating, putting into effect and overseeing
policies governing workers and the relationship of the
organization with its employees.
•HRM is employee management with an emphasis on
employees as assets of the business.
Manpower Planning
Manpower Planning which is also called as Human Resource
Planning consists of putting right number of people, right
kind of people at the right place, right time, doing the right
things for which they are suited for the achievement of goals
of the organization.

Human Resource Planning is carried out in a set procedure.

The procedure is as follows:
1.Analysing the current manpower inventory
2.Making future manpower forecasts
3.Developing employment programmes
4.Design training programmes
1.Analysing the current manpower inventory- Before a manager makes forecast of
future manpower, the current manpower status has to be analysed. For this the
following things have to be noted-
Type of organization, Number of departments, Number and quantity of such
departments, Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting.
2. Making future manpower forecasts- .
The Manpower forecasting techniques commonly employed by the organizations are
as follows:
Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
Trend Analysis: Manpower needs can be projected through extrapolation (projecting
past trends), indexation (using base year as basis), and statistical analysis
(central tendency measure).
Work Load Analysis: It is dependent upon the nature of work load in a department,
in a branch or in a division.
Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
Other methods: Several Mathematical models, with the aid of computers are used
to forecast manpower needs, like budget and planning analysis, regression, new
venture analysis
3.Developing employment programmes- Once the current
inventory is compared with future forecasts, the employment
programmes can be framed and developed accordingly,
which will include recruitment, selection procedures and
placement plans.
4.Design training programmes- These will be based upon
extent of diversification, expansion plans, development
programmes,etc. Training programmes depend upon the
extent of improvement in technology and advancement to
take place. It is also done to improve upon the skills,
capabilities, knowledge of the workers.
Importance of Manpower Planning
Key to managerial functions- The four managerial functions, i.e.,
planning, organizing, directing and controlling are based upon the
manpower.
Efficient utilization- Seting of large scale enterprises require
management of large scale manpower which can be effectively done
through staffing function.
Motivation- incentive plans to be framed for further participation
and employment of employees in a concern.
Better human relations- Staffing function looks after training and
development of the work force which leads to co-operation and
better human relations.
Higher productivity- Productivity level increases when resources are
utilized in best possible manner. higher productivity is a result of
minimum wastage of time, money, efforts and energies. This is
possible through the staffing and it's related activities ( Performance
appraisal, training and development
Need of Manpower Planning
Manpower Planning is advantageous to firm in following manner:
•Shortages and surpluses can be identified so that quick action can be
taken wherever required.
•All the recruitment and selection programmes are based on
manpower planning.
•It also helps to reduce the labour cost as excess staff can be
identified and thereby overstaffing can be avoided.
•It also helps to identify the available talents in a concern and
accordingly training programmes can be chalked out to develop those
talents.
•It helps in growth and diversification of business. Through
manpower planning, human resources can be readily available and
they can be utilized in best manner.
•It helps the organization to realize the importance of manpower
management which ultimately helps in the stability of a concern.
Obstacles in Manpower Planning
Following are the main obstacles that organizations face in the
process of manpower planning:
•Under Utilization of Manpower: The biggest obstacle in case of
manpower planning is the fact that the industries in general are not
making optimum use of their manpower and once manpower
planning begins, it encounters heavy odds in stepping up the
utilization.
•Degree of Absenteeism: Absenteeism is quite high and has been
increasing since last few years.
•Lack of Education and Skilled Labour: The extent of illetracy and the
slow pace of development of the skilled categories account for low
productivity in employees. Low productivity has implications for
manpower planning.
•Manpower Control and Review
Types of Recruitment
Recruitment is of 2 types
Internal Recruitment - is a recruitment which takes place within the
concern or organization. Internal sources of recruitment are readily
available to an organization. Internal sources are primarily three -
Transfers, promotions and Re-employment of ex-employees.
Internal sources are primarily 3
Transfers
Promotions (through Internal Job Postings) and
Re-employment of ex-employees - Re-employment of ex-employees
is one of the internal sources of recruitment in which employees can
be invited and appointed to fill vacancies in the concern. There are
situations when ex-employees provide unsolicited applications also.
External Recruitment - External sources of recruitment have to be
solicited from outside the organization. External sources are external to a
concern. But it involves lot of time and money. The external sources of
recruitment include - Employment at factory gate, advertisements,
employment exchanges, employment agencies, educational institutes,
labour contractors, recommendations etc.
Employee selection Process
The Employee selection Process takes place in following order-
Preliminary Interviews- It is used to eliminate those candidates who do not
meet the minimum eligiblity criteria laid down by the organization.
The skills, academic and family background, competencies and interests of
the candidate are examined during preliminary interview.
Preliminary interviews are less formalized and planned than the final
interviews. The candidates are given a brief up about the company and the
job profile; and it is also examined how much the candidate knows about
the company. Preliminary interviews are also called screening interviews.
Application blanks- The candidates who clear the preliminary interview are
required to fill application blank.
It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
Written Tests- Various written tests conducted during selection procedure
are aptitude test, intelligence test, reasoning test, personality test, etc.
These tests are used to objectively assess the potential candidate. They
should not be biased.
Employment Interviews- It is a one to one interaction between
the interviewer and the potential candidate.
It is used to find whether the candidate is best suited for the
required job or not.
But such interviews consume time and money both. Moreover
the competencies of the candidate cannot be judged.
Such interviews may be biased at times. Such interviews should
be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate
and interviewer.
Medical examination- Medical tests are conducted to ensure
physical fitness of the potential employee. It will decrease
chances of employee absenteeism.
Appointment Letter- A reference check is made about the
candidate selected and then finally he is appointed by giving a
formal appointment letter.