Human Resource

Human Resource

Introduction to Human Resource

Human Resource (HR) Is the department or support systems responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations. Human Resource Management (HRM) Is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. A human resource manager is responsible for managing the human resources of the organization by implementing policies, programs and practices in ...
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Hard approach to human resource management is a pragmatic perspective to human resource management which looks upon people as  ‘resource’ and measures the tangible benefits accruing from their deployment. The emphasis on
  1. To drive for economy and efficiency
  2. Adoption of a strategic approach that is  in line  with business strategy
  3. Obtaining value-adding services from people through targeted human resource development practices
The ‘soft’ model of human resource management traces its origin to the ...
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Scope refers to the work that should be completed to deliver a product, service, or result with the specified features and functions. The scope of HRM  can be encapsulated in the three aspects
  1. Personnel aspect: It focuses on manpower planning, recruitment, selection, placement, transfer, promotion, training, and development, lay off and retrenchment, remuneration,  incentives, and productivity
  2. Welfare aspect: It emphasizes on working conditions and amenities like canteens, restrooms etc.
  3. Industrial Relations aspect: It is ...
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A belief is a mental acceptance of and conviction in the truth, actuality, or validity of something. HRM emphasizes on the belief that the interests of management and employees are on the same plane also, called as the ‘unitary’ approach’. HRM beliefs can be listed as below
  1. Human resource is the most important asset which can develop and increase.
  2. In a workplace, all employees are equal but have different jobs and because of which ...
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The primary objective of human resource management is to ensure availability of productive workforce to an organization. Hence, objectives of HRM are classified into following four categories HRM Objectives and their supporting functions are listed below
Societal Objectives
1.   Legal compliance
2.   Benefits
3.   Union management relations Organizational Objectives
1.   Human resource planning
2.   Employee relations
3.   Selection
4.   Training and development
5.   Appraisal
6.   Placement
7.   Assessment Functional Objectives
1.   Appraisal
2.   Placement
3.   ...
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In order to achieve the objectives of human resource management, a variety of functions are performed. These functions can be categorized into two groups Managerial Function Managerial functions primarily involve basic management functions such as
  1. Planning: Planning involves activities with an objective to achieve organisational goals
  2. Organizing: Organizing involves development of organizational structure by allocating duties and delegating responsibilities to individuals as and when required.
  3. Staffing: Staffing involves hiring the right quality of people ...
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Importance refers to the state or fact of being of great significance or value. Human Resource Management forms a crucial component of any organization as, organizations are formed, run and serve humans who interface as employees (whether senior management or juniors) or as the end user of company’s products or services. Hence, a productive and motivated workforce not only results in improved customer relations but also affects the company’s bottom line. Due to this influence, ...
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Organizational behavior also called as OB focuses on the behavior of organization on employees because of the structure and working of this structure on an organization as a whole. As companies irrespective of their size, business type, geography etc. are composed of humans working as employees whether as senior managers or subordinates, all of them are organized with specific functions and interactions within the organization with each other in achieving the mission and goal of ...
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Ethics are the set of principles of right conduct and being morally good and bad. Ethical standards of Human Resource Management are moral obligations of the organization towards the employee involves developing an equitable environment without any regard to the education, position, caste, creed, sex or color of the employee Various ethical standards of concern under the Human Resource Management involves the following
  1. Human rights
  2. Civil rights
  3. Employment rights like job security, feedback of ...
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Strategic Human Resource Management

The prescriptive and descriptive management defines strategic management as a cycle that involves multifarious activities dependent upon each other. The strategic human resource management process can be disintegrated into five essential stages: mission and objectives, environmental assessment, strategic formulation, strategic implementation and strategic evaluation. All five stages interact with each other at different levels. At the corporate level, strategic human resource management involves activities centered towards appraising the objectives of the organization and strategic evaluation ...
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The word ‘strategy’, deriving from the Greek noun strategus, meaning ‘commander in chief’. The development and usage of the word suggest that it is composed of stratos (army) and agein (to lead). In the management of an organization, it refers to of decisions and actions by the top management of the organization to achieve performance goals. HR strategies are the science and art of management of people hence, it involves managing company’s people for their ...
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In every organization, motivation and incentives should be attached with a goal to work on. A needs assessment and HR development strategies should be deployed focused towards accomplishing the organization’s mission. Such needs assessment and HR development and their effective planning lead to improved productivity. It is then implemented by using macro tools, such as Management by Objectives at the individual level, and Total Quality Management at the group level. Human resource which used to ...
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Personnel Management and Industrial Relations

Personnel Management It is an important function of an HR manager which encompasses covering all the steps of an employee’s life cycle in the organization i.e. from induction of an employee, day-to-day management of employee and his or her records and finally exit of an employee. Industrial Relations It is also called as employment relations or employee relations. It is a crucial aspect of human resource management especially in the manufacturing sector or those sectors where ...
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  1. Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments.
  2. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work force to make their fullest contribution to the concern.
  3. Personnel management exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.
  4. Personnel ...
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Personnel manager is the head of a personnel department. He performs both managerial and operative functions of management. His role can be summarized as :
  1. Personnel manager provides assistance to top management- The top management are the people who decide and frame the primary policies of the concern. All kinds of policies related to personnel or workforce can be framed out effectively by the personnel manager.
  2. He advises the line manager as a staff ...
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Manpower Planning Manpower Planning which is also called as HR 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 ...
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Personal development includes activities that improve awareness and identity, develop talents and potential, build human capital and facilitates employability, enhance the quality of life and contribute to the realization of dreams and aspirations. The concept is not limited to self-help but includes formal and informal activities for developing others, in roles such as a teacher, guide, counsellor, manager, coach, or mentor. Finally, as personal development takes place in the context of institutions, it refers to ...
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Many students of management and laypeople often hear the term HR or Human Resource Management and wonder about the difference between HR and the traditional term Personnel Management. In earlier times, the Personnel Manager of a factory or firm was the person in charge of ensuring employee welfare and interceding between the management and the employees. In recent times, the term has been replaced with HR manager. This article looks at the differences in usage ...
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Every business should have written policies and procedures that document what is expected of employees and what they can expect from the business. Sometimes referred to as an employee manual, these documents provide clear guidelines regarding current laws, employee compensation and how the company conducts business The Facts An effective personnel policy and procedure manual should have written guidelines covering the following sections: responsibilities of each role in the business, employee benefits, sick leave, vacation, ...
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Policy formulation and implementation involve the following steps: Identifying the need Initially, important areas of personnel management in HR (recruitment, selection, training compensating bargaining) must have a policy formulation which is clearly spelt out. Additional policy guidelines can come at any stage depending on the recurrence of a ticklish issue at various levels. Collecting data Once priority areas are listed, steps should be taken to collect facts before formulating a policy. Various sources could be ...
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Human Resource Acquisition

There are three fundamental approaches to job analysis. Job-oriented Approach The job-oriented approach mainly focuses on the job outcomes and factors facilitating these outcomes. This approach essentially forms the reasons for the existence of a particular job. For instance, the activities a receptionist is expected to execute and how they could contribute to the organization’s objectives are the discussants in this approach. Employee-oriented Approach This approach focuses on the behavioral patterns of the employees in ...
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Job Analysis involves eight critical steps for its effective implementation in the HR departments. Step 1: Assimilate information The first step requires the HR manager to obtain the description of the official as well as existing positions. Examine the organization charts closely and decide on the employee having recently filled the position to be interviewed, especially in cases when the position requirements have not changed and the employee has efficiently performed the job responsibilities and ...
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One of the main purposes of conducting job analysis is to prepare job descriptions and job specifications which in turn help hire the right quality of workforce into an organization. The general purpose of job analysis is to document the requirements of a job and the work performed. Job and task analysis is performed as a basis for later improvements, including: definition of a job domain; description of a job; development of performance appraisals, personnel ...
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Manpower Planning It helps in forecasting manpower requirements based on the knowledge and skills and quality of manpower needed in an organization. Recruitment A carefully designed job analysis provides information as to what sources of recruitment are to be used to hire employees. For example, job analysis in retail stores about merchandise sorters tells that village-level schools are the potential source of recruitment. Selection Selection of the right candidate for the right job can only ...
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Job Description It is an important document. It is descriptive in nature. It is useful to identify a job for consideration by job analysis. Important questions to be answered through job description are:
  1. What should be done?
  2. Why should it be done?
  3. Where should it be done?
There is no universal format for writing a job description. According to Ghorpade, the following information is common in most of the job descriptions.
  1. Job ...
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Job analysis methods can be categorized into three basic types: Observation Method Observation of work activities and worker behaviors is a method of job analysis which can be used independently or in combination, with other methods of job analysis. Three methods of job analysis based on observation are:
  • Direct Observation: Using direct observation, a person conducting the analysis simply observes employees in the performance of their duties. The observer either takes general notes or ...
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Job design is next to job analysis. Job design involves systematic attempts to organize tasks, duties, and responsibilities of a unit of work to achieve certain objectives. Job design integrates the work content and qualifications required for each job that meets the needs of the employee and the organization. Job design makes the job highly specialized and well-designed jobs are important in attracting and retaining a motivated workforce. According to Michael Armstrong, “Job Design is ...
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Job Simplification In job design, this simplification technique simplifies or specialized the job. A given job is divided into small sub-parts and each part is assigned to one individual employee. Job simplification is introduced when job designers feel that the jobs are not specialized enough. Job Rotation Job rotation implies systematic movement of employees from one job to the other for job design. The job remains unchanged but employees performing them shift from one job to ...
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Human Resource Planning (HRP)

In simple words, HR Planning is understood as the process of forecasting an organization’s future human resource demand for, and supply to meet the objectives such as the right type of people in the right number. After this process, only the HRM department can initiate recruitment and selection process. HRP is a sub-system in the total organizational planning. Organisational planning includes managerial activities that set the company’s objectives for the future and determines appropriate means ...
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Human resource planning is important for helping both organizations and employees to prepare for the future but you might be thinking “Are not things always changing?” for example, a few years ago, the legal profession seemed to be a good field. But it is now very crowded. So what is the value of planning? The answer is that even an imperfect forecast of the future can be quite helpful. Consider weather forecasts. You can probably ...
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The need for human resource planning arises mostly due to the fact that modern organizations have to survive, operate and grow in a highly competitive market economy where change is the order of the day. The change may be either revolutionary (sudden) or evolutionary (slow). The different areas of change include: change in technology, change in population, change in economic structures and systems, change in policies of the government, change in employee attitudes behavior, etc ...
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Human Resource Planning professionals have to perform the following roles that may be divided into three categories: Administrative role
  1. Managing the organizational resources
  2. Employees welfare activities
Strategic role
  1. Formulating HR strategies
  2. Managing relationships with managers
Specialized role
  1. Collecting and analyzing data
  2. Designing and applying forecasting systems
  3. Managing career development
These roles are neither necessarily found in every HRP work, nor they are evenly weighed in time allocation. Many combinations ...
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There are nine types of plans in HR, such as philosophy, purpose, objectives, strategies, policies, procedures and rules, programmes and budgets. Now we shall discuss in brief each of these types of plans.
  1. Philosophy: The organizations’ role that they wish to play in society in terms of philosophy. The philosophy of the company should have clarity of thought and action in the accomplishment of economic objectives of a country. The philosophy bridges the gap between ...
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Human Resource Forecasting techniques vary from simple to sophisticated ones. It may be stated that organizations generally follow more than one technique. The techniques are:
  1. Managerial Judgement
  2. Ratio Trend Analysis
  3. Work Study Techniques
  4. Delphi Technique
  5. Flow Models
  6. Others.
Huma Resource Demand Forecast The demand forecast is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-term corporate plan, translated ...
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The second step of the hr planning process involves an analysis of future organizational or personal capabilities. Capabilities include the skill level of employees, productivity rates and a number of employees, etc. In the past, more emphasis was on predicting the number of employees of human resource supply the company was likely to have in the future. Organisations may use varieties of procedures to estimate the supply. These procedures are general categories as either quantitative ...
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Planners face significant barriers while formulating a Human Resource Planning. The major ones are following:
  1. Human Resource Planning practitioners are perceived as experts in handling personnel matters but are not experts in managing the business.
  2. People question the importance or making Human Resource Planning practices future-oriented and the role assigned to HRP practitioners in a formulation of organizational strategies. There are people when needed offer handsome packages of benefits to them to quit when ...
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Recruitment and Selection

Recruitment in Human Resource is referred to as the procedure of attracting, short-listing and selection of a qualified candidate for a particular job. Today, a majority of organizations in any industry prefer to outsource the recruiting process to recruitment agencies. The recruitment industry can be found in four major forms, viz. employment agencies, recruitment web portals and job search engines, headhunters and niche agencies referred to for filling professional and executive positions. Employment agencies transact ...
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Internal Sources of Recruitment The internal sources of recruitment in Human Resource are:-
  1. Promotions: Promotion means to give a higher position, status, salary and responsibility to the employee. So, the vacancy can be filled by promoting a suitable candidate from the same organization.
  2. Transfers: Transfer means a change in the place of employment without any change in the position, status, salary, and responsibility of the employee. So, the vacancy can be filled by transferring a suitable ...
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In today’s fast-paced business environment, a well-structured recruitment policy is critically important to respond to the manpower requirements of an organization in time. And so, it is important to frame a clear and concise recruitment policy, for successful execution in order to recruit the best talent in the industry. An efficient recruitment procedure requires a suitable recruitment policy in place that details the objectives of hiring and a framework for implementing the recruitment programme. This ...
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Employee Selection in Human Resource is the process of putting right men on the right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting the best candidate for the required job, the organization will get the quality performance of employees. Moreover, the organization will face less of absenteeism and employee turnover problems. By selecting the ...
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In HR electing the wrong employees can lead to all sorts of problems down the line. For instance, employees may fail to perform their jobs satisfactorily, they may leave soon after being hired because they are simply not a good fit for the company, or they may require extensive training and mentoring, which you may not have the time to provide. Employees who are a good fit for your company, and have the skills and ...
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Employment testing in Human Resource is the practice of administering written, oral, or other tests as a means of determining the suitability or desirability of a job applicant. The premise is that if scores on a test correlate with job performance, then it is economically useful for the employer to select employees based on scores from that test. Employers often use such tests and other selection procedures to screen applicants for hire. The types of ...
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A job interview is a process in which a potential employee is evaluated by an employer for prospective employment in their company, organization, or firm. During this process, the employer hopes to determine whether or not the applicant is suitable for the role. Role of Job Interview A job interview typically precedes the hiring decision and is used to evaluate the candidate. The interview is usually preceded by the evaluation of submitted résumés from interested ...
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Employment Testing

Assessments centers can be designed to measure many different types of job-related skills and abilities, but are often used to assess interpersonal skills, communication skills, planning and organizing, and analytical skills.  The assessment center typically consists of exercises that reflect job content and types of problems faced on the job.  For example, individuals might be evaluated on their ability to make a sales presentation or on their behavior in a simulated meeting.  In addition to ...
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The content of biographical data instruments varies widely and may include such areas as leadership, teamwork skills, specific job knowledge and specific skills (e.g., knowledge of certain software, specific machine tool use), interpersonal skills, extraversion, creativity, etc.   Biographical data typically uses questions about education, training, work experience, and interests to predict success on the job.  Some biographical data instruments also ask about an individuals attitudes, personal assessments of skills, and personality. Advantages of Biographical Data ...
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Cognitive ability tests typically use questions or problems to measure the ability to learn quickly, logic, reasoning, reading comprehension and other enduring mental abilities that are fundamental to success in many different jobs.  Cognitive ability tests assess a persons aptitude or potential to solve job-related problems by providing information about their mental abilities such as verbal or mathematical reasoning and perceptual abilities like speed in recognizing letters of the alphabet. Advantages of Cognitive Ability Tests ...
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Integrity tests assess attitudes and experiences related to a person’s honesty, dependability, trustworthiness, reliability, and pro-social behavior. These tests typically ask direct questions about previous experiences related to ethics and integrity OR ask questions about preferences and interests from which inferences are drawn about future behavior in these areas. Integrity tests are used to identify individuals who are likely to engage in inappropriate, dishonest, and antisocial behavior at work. Advantages of Integrity Tests
  1.  Have ...
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Interviews vary greatly in their content, but are often used to assess such things as interpersonal skills, communication skills, and teamwork skills, and can be used to assess job knowledge.  Well-designed interviews typically use a standard set of questions to evaluate knowledge, skills, abilities, and other qualities required for the job.  The interview is the most commonly used type of test.  Employers generally conduct interviews either face-to-face or by phone.  (For more information on this ...
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Job knowledge tests typically use multiple choice questions or essay type items to evaluate technical or professional expertise and knowledge required for specific jobs or professions.  Examples of job knowledge tests include tests of basic accounting principles, A+/Net+ programming, and blueprint reading. Advantages of Job Knowledge Tests
  1.  Have been demonstrated to produce valid inferences for a number of organizational outcomes, such as job performance.
  2.  Can reduce business costs by identifying individuals for hiring, promotion ...
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Some commonly measured personality traits in work settings are extraversion, conscientiousness, openness to new experiences, optimism, agreeableness, service orientation, stress tolerance, emotional stability, and initiative or proactivity.  Personality tests typically measure traits related to behavior at work, interpersonal interactions, and satisfaction with different aspects of work.  Personality tests are often used to assess whether individuals have the potential to be successful in jobs where performance requires a great deal of interpersonal interaction or work in ...
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Physical ability tests typically use tasks or exercises that require physical ability to perform. These tests typically measure physical attributes and capabilities, such as strength, balance, and speed. Advantages of Physical Ability Tests
  1.  Have been demonstrated to produce valid inferences regarding the performance of physically demanding tasks.
  2.  Can identify applicants who are physically unable to perform essential job functions.
  3.  Can reduce business costs by identifying individuals for hiring, promotion or training who possess the ...
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These tests typically focus on measuring specific job skills or job knowledge, but can also assess more general skills such as organizational skill, analytic skills, and interpersonal skills.  Work samples and simulations typically require performance of tasks that are the same or similar to those performed on the job to assess their level of skill or competence.  For example, work samples might involve installing a telephone line, creating a document in Word, or tuning an ...
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