Dawood College Of Engineering

And Technology, Karachi

Department Of: Industrial Engineering & Management

Muhammad Ehsan

08-Dcet-Ind-314

Human Resource Management

Assignment No # 01

Date Of Submission: 20/04/2011

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Human Resource Management (Assignment No # 01) Date: 20/04/2011

Q1. Human Resource Management (HRM) plays a vital role in the whole system of
management of an industrial organization. Explain?

Ans: Role Of Human Resource Management (HRM):

The role of HRM is to overcome all these areas in an industry:

1. Manpower Planning 2. Recruitment

4. Benefits, Compensation
3. Payroll & Salary Administration
Development & Administration
6. Labor Relations & Disicipline
5. Training & Career Development
Management
7. Personnel Movement 8. Performance Management
9. Human Resource Information System 10. Organization Development

1. 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 has got an important place in the arena of industrialization. Human Resource Planning
has to be a systems approach and is carried out in a set procedure. The procedure is as follows:
 Analyzing the current manpower inventory
 Making future manpower forecasts
 Developing employment programs
 Design training programs

2. Recruitment:
Recruitment refers to the process of attracting, screening, and selecting qualified people for
a job. For some components of the recruitment process, mid- and large-size organizations often
retain professional recruiters or outsource some of the process to recruitment agencies.
The recruitment industry has four main types of agencies: employment agencies, recruitment
websites and job search engines, "headhunters" for executive and professional recruitment, and
niche agencies which specialize in a particular area of staffing. Some organizations use employer
branding strategy and in-house recruitment instead of agencies. Recruitment-related functions
are generally carried out by an organization's human resources staff.

3. Payroll & Salary Administration:

In a company, payroll is the sum of all financial records of salaries for an employee, wages,
bonuses and deductions. In accounting, payroll refers to the amount paid to employees for
services they provided during a certain period of time.
Payroll is defined as a method of administrating employees’ salaries in the organizations. The
process consists of calculation of salaries and tax deductions of the employees, administrating
the retirement benefits and disbursements of salaries to employees. It can also be called as an
accounts activity which undertakes the salary administration of employees in the organization.

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Administrating the employees’ salaries is not an easy task, the HR and accounts department
work together to calculate and disburse the salary to the employees. Thus, payroll management
can be further subdivided into two sub processes, i.e. Payroll accounting and payroll
administration.

4. Benefits, Compensation Development & Administration:

Under administrative direction, directs, manages, supervises, and coordinates the activities
and operations of the Benefits and Workers’ Compensation Division within the Human
Resources Department including employee benefits, Public Employment Retirement
System (PERS), and self-administered workers’ compensation programs; coordinates
assigned activities with other divisions, departments, and outside agencies; and provides
highly responsible and complex administrative support to the Director of Human
Resources.

5. Training & Career Development:

The term training refers to the acquisition of knowledge, skills, and competencies as a result of
the teaching of vocational or practical skills and knowledge that relate to specific useful
competencies. It forms the core of apprenticeships and provides the backbone of content at
institutes of technology (also known as technical colleges or polytechnics). In addition to the
basic training required for a trade, occupation or profession, observers of the labor-market
recognize today the need to continue training beyond initial qualifications: to maintain, upgrade
and update skills throughout working life. People within many professions and occupations may
refer to this sort of training as professional development/Career Development.

6. Labor Relations & Discipline Management:

The Labor Relations discipline deals with the elements of formal labor-management relations:
protected activities, unfair practices, union organizing, recognition and representation elections,
as well as collective bargaining and contract administration. It also includes matters that focus on
careers, communications, legal and regulatory issues, technology, metrics and outsourcing in the
labor relations field, as well as effective labor relations practices and global labor relations
issues. It does not include matters involving so-called “positive” employee relations or practices
associated with remaining union-free, which are encompassed in the Employee Relations
Discipline. Industrial relations is a multidisciplinary field that studies
the employment relationship. Industrial relations is increasingly being called employment
relations because of the importance of non-industrial employment relationships. Many outsiders
also equate industrial relations to labor relations and believe that industrial relations only studies
unionized employment situations, but this is an oversimplification.

7. Personnel Movement:
Perimeter barriers, intrusion detection devices, a n d protective lighting provide physical
safeguards; however, these alone are not e n o u g h . A positive
personnel movement control mec h a ni s m m u s t be d e s i g n e d a n d established to
facilitate a n d expedite authorized entry. It m u s t preclude unauthorized entry by
those who may try to circumvent the control m e c h a n i s m . Planning a n d designing
personnel a c c e s s control points for controlling personnel movement through the various

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restricted areas is a c o n c e r n of the facility engineer a n d physical security specialist during the
facility design. Personnel security clearances a n d identification p r o c e d u r e s are
a c o n c e r n o n c e the facility is operational.

8. Performance Management:
Performance management (PM) includes activities that ensure that goals are consistently being
met in an effective and efficient manner. Performance management can focus on the
performance of an organization, a department, employee, or even the processes to build a
product or service, as well as many other areas.

9. Human Resource Information System (HRIS):

The Human Resource Information System (HRIS) is a software or online solution for the data
entry, data tracking, and data information needs of the Human Resources, payroll, management,
and accounting functions within a business. Normally packaged as a data base, hundreds of
companies sell some form of HRIS and every HRIS has different capabilities. Pick your HRIS
carefully based on the capabilities you need in your company.

10. Organization Development:

Organization development (OD) is a conceptual, organization-wide effort to increase an
organization's effectiveness and viability. Warren Bennis has referred to OD as a response to
change, a complex educational strategy intended to change the beliefs, attitudes, values, and
structure of an organization so that it can better adapt to new technologies, markets, challenges,
and the dizzying rate of change itself. OD is neither "anything done to better an organization" nor
is it "the training function of the organization"; it is a particular kind of change process designed
to bring about a particular kind of end result. OD can involve interventions in the organization's
"processes," using behavioral science knowledge organizational reflection, system improvement,
planning and self-analysis.

Q2. Write down the Scope of Human Resource Management (HRM)?

Ans: Scope Of Human Resource Management (HRM):

The scope of HRM is
extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we may
classify the same under following heads:

1. HRM in Personnel Management:

This is typically direct manpower management that involves manpower planning, hiring
(recruitment and selection), training and development, induction and orientation, transfer,
promotion, compensation, layoff and retrenchment, employee productivity. The overall objective
here is to ascertain individual growth, development and effectiveness which indirectly contribute
to organizational development.
It also includes performance appraisal, developing new skills, disbursement of wages, incentives,
allowances, traveling policies and procedures and other related courses of actions.

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2. HRM in Employee Welfare:

This particular aspect of HRM deals with working conditions and amenities at workplace. This
includes a wide array of responsibilities and services such as safety services, health services,
welfare funds, social security and medical services. It also covers appointment of safety officers,
making the environment worth working, eliminating workplace hazards, support by top
management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting,
sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits,
maternity benefits, unemployment benefits and family benefits.
It also relates to supervision, employee counseling, establishing harmonious relationships with
employees, education and training. Employee welfare is about determining employees’ real
needs and fulfilling them with active participation of both management and employees. In
addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety, recreation facilities, etc.

3. HRM in Industrial Relations:

Since it is a highly sensitive area, it needs careful interactions with labor or employee unions,
addressing their grievances and settling the disputes effectively in order to maintain peace and
harmony in the organization. It is the art and science of understanding the employment (union-
management) relations, joint consultation, disciplinary procedures, solving problems with mutual
efforts, understanding human behavior and maintaining work relations, collective bargaining and
settlement of disputes.
The main aim is to safeguarding the interest of employees by securing the highest level of
understanding to the extent that does not leave a negative impact on organization. It is about
establishing, growing and promoting industrial democracy to safeguard the interests of both
employees and management.

Q3. Various theories of Motivation approach the problem of motivation from

different perspective but they all emphasis similar set of relationship. Explain the
statement bringing out the relationship?

Ans: Theories Of Motivation:

“Motivation is the act of stimulating

someone or oneself to get desired course of
action, to push right button to get desired
reactions”.

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Some of the Theories of Motivation are:

1) Maslow’s-Hierarchy of Needs Theory

2) Alderfer's Hierarchy of Motivational Needs
3) Herzberg's Two Factor Theory
4) Douglas McGregor Theory “X” and Theory “Y”

1) Maslow’s-Hierarchy of Needs Theory:

This theory was proposed by Abraham Maslow and is based on the assumption that people are
motivated by a series of five universal needs. These needs are ranked, according to the order in
which they influence human behavior, in hierarchical fashion, as shown below:

a) Physiological Needs -- are deemed to be the lowest- level needs. These needs include the
needs such as food & water.
So as long as physiological needs are unsatisfied, they exist as a driving or motivating force in a
person's life. A hungry person has a felt need. This felt need sets up both psychological and
physical tensions that manifest themselves in overt behaviors directed at reducing those tensions
(getting something to eat). Once the hunger is sated, the tension is reduced, and the need for food
ceases to motivate. At this point (assuming that other physiological requirements are also
satisfied) the next higher order need becomes the motivating need.
b) Safety Needs – the needs for shelter and security -- become the motivators of human
behavior.
Safety needs include a desire for security, stability, dependency, protection, freedom from fear
and anxiety, and a need for structure, order, and law.. In the workplace this needs translates into
a need for at least a minimal degree of employment security; the knowledge that we cannot be
fired on a whim and that appropriate levels of effort and productivity will ensure continued
employment.
c) Social Needs -- include the need for belongingness and love.
Generally, as gregarious creatures, human have a need to belong. In the workplace, this need
may be satisfied by an ability to interact with one's coworkers and perhaps to be able to work
collaboratively with these colleagues.

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d) After social needs have been satisfied, Ego and Esteem needs become the motivating
needs.
Esteem needs include the desire for self-respect, self-esteem, and the esteem of others. When
focused externally, these needs also include the desire for reputation, prestige, status, fame,
glory, dominance, recognition, attention, importance, and appreciation.
e) The highest need in Maslow's hierarchy is that of Self-Actualization Needs;
The need for self-realization, continuous self-development, and the process of becoming all that,
a person is capable of becoming.

2) Alderfer's Hierarchy of Motivational Needs:

Clayton Alderfer reworked Maslow's Need Hierarchy to align it more closely with empirical
research. Alderfer's theory is called the ERG theory -- Existence, Relatedness, and Growth.
 Existence refers to our concern with basic material existence requirements; what Maslow
called physiological and safety needs.
 Relatedness refers to the desire we have for maintaining interpersonal relationships;
similar to Maslow's social/love need, and the external component of his esteem need.
 Growth refers to an intrinsic desire for personal development; the intrinsic component of
Maslow's esteem need, and self-actualization

Alderfer's ERG theory differs from Maslow's Need Hierarchy insofar as ERG theory
demonstrates that more than one need may be operative at the same time. ERG theory does not
assume a rigid hierarchy where a lower need must be substantially satisfied before one can move
on.
Alderfer also deals with frustration-regression. That is, if a higher-order need is frustrated, an
individual then seeks to increase the satisfaction of a lower-order need.
According to Maslow an individual would stay at a certain need level until that need was
satisfied. ERG theory counters by noting that when a higher- order need level is frustrated the
individual’s desire to increase a lower- level need takes place. Inability to satisfy a need for
social interaction, for instance, might increase the desire for more money or better working
conditions. So frustration can lead to a regression to a lower need.
In summary, ERG theory argues, like Maslow, that satisfied lower- order needs lead to the desire
to satisfy higher-order needs; but multiple needs can be operating as motivators at the same time,
and frustration in attempting to satisfy a higher- level need can result in regression to a lower-
level need.

3) Herzberg's Two Factor Theory:

Herzberg's Two Factor Theory, also known as the Motivation-Hygiene Theory, was
derived from a study designed to test the concept that people have two sets of needs:
1. Their needs as animals to avoid pain
2. Their needs as humans to grow psychologically
a) SATISFACTION (MOTIVATION):
Five factors stood out as strong determiners of job satisfaction:
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 Achievement  Recognition
 Work itself  Responsibility
 Advancement

The last three factors were found to be most important for bringing about lasting changes of attitude.
It should be noted, that recognition refers to recognition for achievement as opposed to recognition in
the human relations sense.
b) DISSATISFACTION (HYGIENE):
The determinants of job dissatisfaction were found to be:

 Company policy  Administrative policies

 Supervision  Salary
 Interpersonal relations  Working conditions

4) Douglas McGregor Theory “X” and Theory “Y”:

Douglas McGregor observed two diametrically opposing view points of managers about their
employees, one is negative called “Theory of X” and one is positive called “Theory of Y”.
 Theory of X :
Following are the assumptions of managers who believe in the “Theory of X” in regard to
their employees.
 Employees dislike work; if possible avoid the same
 Employees must be coerced, controlled or threatened to do the work
 Employees avoid responsibilities and seek formal direction
 Most employees consider security of job, most important of all other factors in the job
and have very little ambition.
 Theory of Y:
Following are the assumptions of managers who believe in the “Theory of Y” in regard to their
employees.
 Employees love work as play or rest.
 Employees are self directed and self controlled and committed to the organizational
objectives.
 Employees accept and seek responsibilities.
 Innovative spirit is not confined to managers alone, some employees also possess it.
Theory of X assumes Maslow’s lower level needs dominate in employees. Whereas Theory of Y,
assumes Maslow’s higher level needs dominate in employees.

 Conclusion:
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

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