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An Overview of HRM
HRM is the part of the organization concerned with the people dimension. HRM can be
viewed in one of two ways. First, HRM is a staff or support function in the organization.
Its role is to provide assistance in HRM matters to line employees, or those directly
involved in producing the organizations goods and services. Second, HRM is a function
of every managers job. Whether or not one works in a formal HRM department, the fact
remains that to effectively manage employees, all managers must handle the activities
HRM consists of four basic functions:
(1) staffing
(2) training and development
(3) motivation, an
(4) maintenance.

Fig. - Fundamentals of Strategic HRM



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Staffing Function of HRM
Organizations must have a well-defined reason for needing individuals who possess
specific skills, knowledge, and abilities directly linked to specific jobs. Specifically, when
an organization plans strategically, it determines its goals and objectives for a given
period of time. These goals and objectives often lead to structural changes in the
organization, requiring changes in job requirements and reporting relationships.
Staffing functions included
Strategic HR Planning
Recruiting
Selection

Strategic HR Planning
Strategic HR planning is an important component of strategic HR management. It links
HR management directly to the strategic plan of your organization. Most mid- to large
sized organizations have a strategic plan that guides them in successfully meeting their
missions. Organizations routinely complete financial plans to ensure they achieve
organizational goals and while workforce plans are not as common, they are just as
important.
Human Resource Planning








Fig. - Human Resource Planning
Recruiting
The stages of the recruitment process include job analysis and developing some person
specification; the sourcing of candidates by networking, advertising, and other search
methods; matching candidates to job requirements and screening individuals using testing
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(skills or personality assessment); assessment of candidates' motivations and their fit with
organizational requirements by interviewing and other assessment techniques.
Recruiting Sources
Internal Search
Employee Referrals
External Search
Alternatives
Internal Search
Organizations that promote from within identify current employees for job openings

Selection
The completed selection process ends the staffing function. The goals, then, of the
staffing function are to locate competent employees and bring them into the organization.
When this goal has been reached, HRM focuses its attention on the employees training
and development.
by having individuals bid for jobs
by using their HR management system
by utilizing employee referrals

Employee Referrals
Employee referrals also may receive more accurate information about their potential jobs.
The recommender often gives the applicant more realistic information about the job than
could be conveyed through employment agencies or newspaper advertisements. This
information reduces unrealistic expectations and increases job survival.
External Search
In addition to looking internally for candidates, organizations often open up recruiting
efforts to the external community. These efforts include advertisements (including
Internet postings), employment agencies, schools, colleges and universities, professional
organizations, and unsolicited applicants.
In external search included
Employment agencies
Schools, colleges, and universities
Professional organizations
Unsolicited applicants
Cyberspace Recruiting
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Employment agencies
Three different types of employment agencies exist to help employers and workers find
each other. Public or state agencies, private employment agencies, and management
consulting firms all provide valuable employment matching services.
Schools, colleges, and universities
Educational institutions at all levels offer opportunities for recruiting recent graduates.
Most educational institutions operate placement services where prospective employers
can review credentials and interview graduates. Most also allow employers to see a
prospective employees performance through cooperative arrangements and internships.
Job Fairs
Job Fairs Once thought to be a little old fashioned and not very cost effective; job fairs
are making a comeback as an effective recruiting tool. Often held on or near college
campuses in the spring, theyre a good opportunity to build a companys employment
brand.
Professional organizations
Many professional organizations, including labor unions, operate placement services for
the benefit of their members. Professional organizations serving such varied occupations
as industrial engineering, psychology, accounting, legal, and academics publish rosters of
job vacancies and distribute these lists to members.
Unsolicited applicants
Unsolicited applications, whether they reach the employer by letter, e-mail, online
application, telephone, or in person, constitute a source of prospective applicants.
Although the number of unsolicited applicants depends on economic conditions, the
organizations image, and the job seekers perception of the types of jobs that might be
available, this source does provide an excellent supply of stockpiled applicants.
Cyberspace Recruiting
Newspaper advertisements and employment agencies may be on their way to extinction
as primary sources for conveying information about job openings and finding job
candidates, thanks to Internet recruiting. Most companies, both large and small, use
Recruiting Sources 143 job fairs Events attended by employer representatives or
recruiters with the goal of reaching qualified candidates. Virtual Job Fair online sites
provide contact between job seekers and prospective employers in real-time.



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Alternatives
Much of the previous discussion on recruiting sources implies that these efforts are
designed to locate and hire full-time, permanent employees. However, economic realities
that include employee layoffs, coupled with management trends such as rightsizing, have
created a slightly different focus.
In alternatives included
Temporary help services
Employee leasing
Independent contractors
Temporary help services
Organizations such as Kelly Services, Manpower, and Accountemps supply temporary
employees. Temporary employees are particularly valuable in meeting short-term
fluctuations in HRM needs
Employee leasing
Leased employees typically remain with an organization for longer periods than
temporary employees. Under a leasing arrangement, individuals work for the leasing firm
Independent contractors
Another means of recruiting is the use of independent contractors. Often referred to as
consultants, independent contractors are taking on a new meaning. Companies may hire
independent contractors to do specific work at a location on or off the companys
premises.









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Training and Development Function of HRM
Employees often take months to adjust to their new organizations and positions. Although
the job description may seem straightforward, employees need to learn the culture of the
organization, how information is communicated, and how their position fits the
organization structure and strategy. HRM plays an important role in assimilating
employees so they can become fully productive.
Its included
Orientation
Employee training & development
Career development

Orientation
Employees often take months to adjust to their new organizations and positions. Although
the job description may seem straightforward, employees need to learn the culture of the
organization, how information is communicated, and how their position fits the
organization structure and strategy. HRM plays an important role in assimilating
employees so they can become fully productive.
Employee training & development
It is important to note that employee and career development is more employees centered,
whereas employee training is designed to promote competency in the new job.
Organization development, on the other hand, focuses on organizational changes. While
each area has a unique focus, all four are critical to the success of the training and
development phase.

Career development
The relationship between career development and human resource planning is
obvious. Career developments ensure a supply of abilities and talents, whereas human
resource planning projects demand for talents and abilities. The supportive and
integrated effort of top-level management of the organization as well as system
analyst for effective career development and human resource planning are needed for
maximizations of both demand and supply of talents and abilities.




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Motivation Function of HRM
Motivation functions of HRM are the activities concerned with helping employees exert
at high energy levels.
To retain good staff and to encourage them to give of their best while at work requires
attention to the financial and psychological and even physiological rewards offered by the
organization as a continuous exercise.
So in a sort sentence we can say that motivation function of HRM
Activities in HRM related with helping employees work at high energy levels.
Motivation is a function of willingness and ability (skill) to do the job.
Managing motivation includes:
Job design
Performance appraisal
Establishing effective compensation and benefits programs
Reward management
Understanding motivational theories

1. Job design
The process of job design has been defined as specification of the contents, methods, and
relationships of jobs in order to satisfy technological and organizational requirements as
well as the social and personal requirements of the job holder.

Aspects of Job Design

Work Organization
Rearranging or replacing work (e.g. automating, teaming, work
groups, division of labor)
Giving the worker additional responsibility/tasks (job enlargement)
Job rotation

Job Structuring
Giving responsibility for different types/levels of work (job
enrichment)
Granting control over work (autonomy)
Self-Organization (time/process management)

Location/Scheduling
Telecommuting (part or full off-site work)
Alternative scheduling
Virtual Office/Virtual Organization

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Significant job characteristics

Variety
removal of repetitiveness
skill variety

Autonomy
removal of no choice of tools or methods
removal of mechanical pacing
decision making

Use of Capacities
removal of minimum skill requirements
removal of surface mental attention
learning time
challenge

Progress/Career Path
achievement
perceived opportunities for advancement
growth in competence
continuous learning
desirable future

Intrinsically Meaningful Work
removal of minute subdivision of product/process
task identity (seeing relationship of task to whole/end product)

Socially Meaningful Work
task significance
need to relate work and social life

Interaction
interaction opportunities
social support and recognition

Knowledge of Results
recognition
feedback

Responsibility
accountability
choice over tools and methods

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Steps of analysis and identification of job design alternatives

Steps of analysis (Hill, 1971; Taylor, 1975 ;) includes following steps:
Scanning (initial analysis of system inputs, outputs, organization structure and
workplace layout)
Technical Analysis (similar to process mapping...identifies system operations and
key variances. Variances are classified as having an effect on output quality, output
quantity, operating costs and social cost)
Internal Systems Analysis (social system analysis; survey of perceptions of work
roles; maintenance system analysis; supply and user system analysis).
Proposals for Change and Implementation


What job design changes are to be implemented?

Conclusions of research show that at the individual level, design jobs with (1) optimum
variety (2) a meaningful whole task (3) optimum work cycle (4) control over work
standards and feedback of results (5) preparation and auxiliary tasks (6) use of valued
skill, knowledge and effort (7) perceivable contribution to end product.

At group level, work organization should provide (1) job rotation or physical proximity
where individual jobs are interdependent or are stressful or make no perceivable
contribution to the end product and (2) grouping of interdependent jobs to provide a
whole task that contributes to the end product or control over standards and feedback of
results and control over boundary tasks (3) communication channels (4) promotion
channels.

2. Performance Appraisal
The performance appraisal is the process of assessing employee performance by way of
comparing present performance with already established standards which have been
already communicated to employees, subsequently providing feedback to employees
about their performance level for the purpose of improving their performance as needed
by the organization.






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The Appraisal Process











3. Appraisal Methods
Three approaches of performance appraisal:
1. Absolute standards
2. Relative standards
3. Objectives

a) Evaluating absolute standards:
An employees performance is measured against established standards.
Evaluation is independent of any other employee.
Essay Appraisal: Appraiser writes narrative describing employee
performance & suggestions.
Critical I ncident Appraisal: Based on key behavior anecdotes illustrating
effective or ineffective job performance.
Checklist Appraisal: Appraiser checks off behaviors that apply to the
employee.
Adjective Rating Scale Appraisal: Appraiser rates employee on a number
of job-related factors.
Forced-Choice Appraisal: Appraisers choose from sets of statements
which appear to be equally favorable, the statement which best describes
the employee.
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Behaviorally Anchored Rating Scales (BARS): Appraiser rates employee
on factors which are defined by behavioral descriptions illustrating various
dimensions along each rating scale.
b) Relative standards:
Employees are evaluated by comparing their performance to the performance of
other employees.
Group Order Ranking: Employees are placed in a classification reflecting their
relative performance, such as top one-fifth.
I ndividual Ranking: Employees are ranked from highest to lowest.
Paired Comparison:
Each individual is compared to every other.
Final ranking is based on number of times the individual is
preferred member in a pair.


c) Using Achieved Outcomes to Evaluate Employees
Creating More Effective Performance Management Systems

















4. Reward management
Reward management is concerned with the formulation and implementation of strategies
and policies that aim to reward people fairly, equitably, and consistently in accordance
with their value to the organization.
The most obvious reward is pay, but there are many others, including-
Promotion
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Desirable work assignment
Peer recognition
Work freedom
However there are 2 types of rewards
i. Intrinsic rewards: Intrinsic rewards are personal satisfactions come from the job
itself, such as:
Pride in ones work
Feelings of accomplishment
Being part of a work team
ii. Extrinsic rewards: Extrinsic rewards come from a source outside the job include-
Rewards offered mainly by management
Money
Promotions
Benefits
Extrinsic rewards are two types, these are following-
Financial rewards: financial rewards include wages, bonuses, profit
sharing, pension plan, paid leave, purchase discounts etc.
Financial rewards are also 3 types-
Performance based
Implied membership based and
Explicit membership based.
Nonfinancial rewards: Nonfinancial rewards emphasize making life
on the job more attractive; employees vary greatly on what types
they find desirable.
Employee benefits program
Have grown in importance and variety
Typically membership-based rewards offered to attract and keep employees
Do not directly affect a workers performance, but inadequate benefits lead to
employee dissatisfaction.
Top benefits are-
1. Additional fixed pay
2. Higher incentives
3. Flexible work arrangement
4. Retirement benefit
5. Professional development support
6. Training opportunities
7. Insurance benefit
8. Healthcare assistance
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Contemporary Benefits Offerings
Benefits today reflect the diversity of the work force.
Challenge -- designing a benefits package which is attractive to applicants
and current workers, and provides all the legally required benefits.
Legally Required Benefits
Social Security
Financed by equal employee and employer contributions, based on a
percentage of earnings.
Provides income for retirees, disabled workers and surviving dependents.
Provides some health insurance coverage through Medicare.

Unemployment Compensation
Funded by employers who pay combined federal and state tax imposed on
taxable wage base
Tax varies based on organizations unemployment experience.
Provides employees with some income continuation during periods of
involuntary unemployment
Typical coverage is for 26 weeks.

Workers Compensation
Paid for by the organization
Rates based on likelihood of accidents, past history, and the type of
industry.
Benefits pay expenses and/or compensate for losses resulting from work-
related accidents or illness, regardless of fault.

Family and Medical Leave
1993 Act requires employers with 50 or more employees to allow up to 12
weeks of unpaid leave for family or medical reasons.
Specifies record-keeping and communication requirements
Others benefits provide to employees
Voluntary Benefits
Retirement Benefits
Paid Time Off
Survivor Benefits
An Integrative Perspective on Employee Benefits
Flexible benefits


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Compensation
Compensation is rewarding the employee for the services rendered by them for the
benefit of the organization. It is set of program aimed at achieving the following
objectives:
Aids in attracting capable employees to the organization.
Motivate employees toward superior performance.
Retaining employees and their services over an extended period of time.
Types of compensation
There are three types of compensation-
1. Base compensation: It refers to the basic salaries and wages given to
the employees. It is normally constant at a given amount irrespective of
the difference in work performance.
2. Variable compensation: Variable compensation means that one gets
compensation as per the work done. If one does a remarkable job then
he or she deserves a higher compensation package than one whose
work is of poor quality.
3. Supplementary compensation: compensation given by an employer
when he wishes to. It is not compulsory or a routine once one is given
the compensation that one will be awarded another time.
Understanding motivational theories
Basic step of motivation process is to understand the implications of motivational
theories. The motivational theories are:
Hierarchy of Needs Maslow
Theory X Theory Y McGregor
Motivation Hygiene Herzberg
Achievement, Affiliation, and Power Motives McClelland
Equity Theory Adams
Expectancy Theory Vroom










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Maintenance function of HRM
Human Resource department have to maintain following for maintenance function-
Safety and Health
Communication and
Employee Relation.
This are briefly describe below

1. Safety and Health
Human Resource department have a legal responsibility to ensure that the workplace is
free from unnecessary hazards and that condition surrounding the workplace are safe for
employees physical and mental health. If workers cannot function properly at their jobs.
Some suggestion for keeping the workplace healthy include-
Make sure workers have enough fresh air.
Avoid suspect building materials and furnishing.
Test new buildings for toxins before occupancy.
Provide a smoke-free environment.
Keeping air ducts clean and dry.
Paying attention to workers complaints.

2. Communication
Communication is the transfer of information from sender to a receiver, with the
information being understood by the receiver. It ensures smooth running of activities of
an enterprise. Human Resource Manager have to keep employees well informed and
updated for following points-
Helps in minimizing cost and conflict among employees.
Help in planning and coordination of different activities in an organaization.
When there is an effective system of communication, employees will have the
opportunity present their ideas, suggestions and complaints.
Democratic management is possible only when there is an effective
communication system.
Communication acts as a lubricant and keeps all the individuals working in line
with expectation of top management.
Help management in making and implementing decisions in time.
So manager should maintain a healthy communication system by removing various
communication barriers.

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3. Employee Relation
The term employee relation usually refers to a relationship between labor and
management that grow up out of employment. Both two parties need to work in a spirit of
cooperation, adjustment, and accommodation. The fundamental objective of employee
relation is to maintain sound relations between employees and employers. Some other
objectives can also be drawn from these basic objectives. These are:
To enhance the economic status of the workers.
To regulate production by minimizing conflicts through state control.
To provide an opportunity to the workers to have a say in the management and
decision-making.
To extend and maintain democracy.
Improving Productivity.
Improve quality and reduces price of products.
Employee relation is the process by which human being and their organizations interact at
the work place to established term and condition ofemployment.HR managers should
maintain cordial relations by efficient management, maintaining proper democratic
environment across the organization.