Overview of human resource management system & function

Session Objectives
 Introduction of HRM
 Definition of HRM
 HRM functions
 To understand …
 Recruitment &Selection process
 Training& Development process
 Performance Appraisal process
 Pay Roll
 Compensation &Benefits
 To understand the Main HR Roles & Responsibilities

Introduction
 Human resource management is a process of bringing people and
organisation together so that the goals of each are met .it tries to secure
the best from people by winning their whole hearted cooperation .

 In short, it defined as the art of procuring ,developing and maintaining
competent workforce to achieve the goals of an organisation in an
effective and efficient manner.

What is HRM?
 Human Resource Management (HRM) is the function within an
organization that focuses on recruitment, management , and providing
direction for the people who work in the organization.

 It deals with issues related to people such as
compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee
motivation, communication, administration, and training.

What do HR Managers Do?
 Human Resource professionals create systems for managing employees
that support an organization’s overall strategy.
 To accomplish this they

 Analyze and design jobs.
 Forecast supply and demand for workers.
 Ensure legal compliance.
 Implement affirmative action plans.
 Recruit and select candidates to fill open positions.
 Train and develop employees to meet current and future job demands

 Manage employee performance and career progress.

 Develop basic pay structures.

 Create incentive plans.

 Administer benefit programs.

 Assure employees safety and health.

 Retain employees.

 Improve employee morale.

 Reduce turnover and carry out disciplinary actions, all while applying
constantly evolving technology.

HRM Functions
 There are seven main functions of HR . .
 Manpower planning

 Recruitment and selection of employees

 Employee education, training and development

 Compensation &Benefits (Employee motivation)

 Performance Appraisal (Employee evaluation)

 Industrial relations

 Provision of employee services (safety &Health Benefit)

 Manpower planning is the process of determining manpower
requirements and the means for meeting those requirements in order
to carry out the integrated plan of the organization.

 It is a double –edged weapon . if used properly ,it leads to the
maximum utilization of human resources , reduce excessive labour
turnover and high absenteeism , improve productivity and aid in
achieving the objectives of an organization.

Recruitment &Selection
 Recruitment is a process of identifying and hiring best-qualified
candidate (from within or outside of an organization) for a job vacancy,
in a most timely and cost effective manner.

 The process begins when applications are brought in and ends when the
same is finished. The result is a pool of applicants, from where the
appropriate candidate can be selected.

Recruitment cycle
Identify
Vacancy
Conduct
Interview Prepare Job
&Decision Description
making

Arrange Advertising
interview the Vacancy

Managing
short listing
the response

Source of Recruitment
 Internal source ..
 Transfer

 Promotion

 Upgrading

 Demotion

 Retired employee

 Retrenched employee

 Employee reference

 External source

 Advertisement (print media ,mass media)

 Educational institutions

 Placement agencies/outsourcing

 Job portals (Naukari .com, monster .com)

 Employment exchange

 Labour contractors

 Unsolicited applicant

 Employment at factory gate

 Selection involves the series of steps by which the candidates are
screened for choosing the most suitable persons for vacant posts.

Training & Development
 Training is a process of learning a sequence of programmed
behavior.
 It is a act of increasing the knowledge and skills of an employees, for
performing a particular job.
 Newly recruited employees require training so as to perform their task
effectively.
 Instruction , coaching, guidance helps them to handle jobs
completely, without any wastage .
 Development is a long -term educational process utilizing a systematic
and organized procedure by which managerial personnel learn
conceptual and theoretical knowledge for general purpose.

Performance Appraisal
 Performance appraisal may be defined as a structured formal interaction
between a subordinate and supervisor, that usually takes the form of a
periodic interview (annual or semi-annual), in which the work
performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for
improvement and skills development.
 Its rates the employees in terms of their performance

 It is necessary to understand each employee’s abilities, competencies and
relative merit and worth for the organization.
 It may be half yearly or yearly report .

360 degree performance appraisal

 The 360 degree appraisal is the appraisal given by peers, subordinates
,workers , head of the department etc, that means the appraisal given from
all the people working in the organisation .

 In short The half yearly or yearly report of work schedule goes from
company to head quarter of all the workers performance is the appraisal it
contains all the promotion ,demotion, and other activities related to the
performance.

.

Pay Roll
 The term 'payroll' encompasses every employee of a company who

receives a regular wage or salary or other compensation. Payroll refers
to the administration of employees' salaries, wages, bonuses, net pay,
and deductions.
 It consist of the employee ID, employee name, date of joining, daily
attendance record, basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays, vacations and sickness, value
of meals and lodging etc. There are some deductions such as PF, taxes,
loan installments or advances taken by employee.

Figure: Components of Monthly Payroll

Figure: Components of Annual Payroll

Compensation & Benefits
 Compensation is the remuneration received by an employee in return
for their contribution to the organization.

 It is an organized practice that involves balancing the work-employee
relation by providing monetary and non-monetary benefits to
employees.

 Compensation is an integral part of human resource management
which helps in motivating the employees and improving organizational
effectiveness.

Components of Compensation System

Pay
Structure

Job Salary
Analysis Surveys

Two types of compensation given by any Organization

 Direct compensation
 Indirect compensation

Employees Benefits
 Benefits in kind (also called fringe benefits, perquisites, perks)
are various non-wage compensations provided to employees in
addition to their normal wage or salaries, Where an employee
exchanges (cash) wages for some other form of benefit, this is generally

referred to as a 'salary sacrifice' arrangement..

 Some of these benefits are:

 Housing (employer-provided or employer-paid),

 Group insurance (health ,life ,etc.)

 Disability income & protection,

 Retirement Benefits

 Reimbursement,
 Seek leave, Vacation (paid and non-paid),
 Social security , profit sharing ,funding of education, and other specialized
benefits.

 Perk-refer to those benefits of a more discretionary nature. Often, perks
are given to employees who are doing notably well and/or have seniority.
 Common perks are
 Take –home vehicles, hotel stays
 Free refreshments, leisure activities on work time (golf etc.), stationary
allowances

HR Roles and Responsibilities in changing Environment

 The HR Roles and Responsibilities needs to react to this basic request by
the organization to keep the level of the satisfaction.
 Nowadays, the HRM has to deliver even more. The HR Roles and
Responsibilities have to take the high level recognition of the organization
and they need to be adjusted to make a full fit.
 The HR Roles have to be adjusted to:
 keep HRM Function focused on tracking and implementing new trends in
the industry.
 keep HRM Function focused on helping the line management to implement
improvements.
 keep HRM Function focused on operational excellence.
 keep HRM Function responsible for developing the Human Capital
potential in the organization.

 The HR Responsibilities have to be adjusted to:

 Demonstrate the Line Management the will to keep the responsibility for
the Human Capital costs

 keep the competitive advantage on the market (and not just the job
market)

 Demonstrate the will to drive the main HR Processes to keep the
organization in the excellent health.

 keep HRM Function supporting the Business Strategy to reach the business
initiatives.

 keep HRM responsible for the tasks resulting from the Business Strategy

Overview of human resource management system & function

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Overview of human resource management system & function