Human Resource Management System & Function

Made by Rita Choudhary

Session Objectives Introduction of HRM Definition of HRM HRM functionsTo 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 cycleIdentify Vacancy

Prepare Job

Description

Advertising the

Vacancy

Managing the

response

short listing

Arrange intervie

w

Conduct Interview &Decision making

Source of RecruitmentInternal 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 SystemPay

Structure

Salary Surveys

Job Analysis

Two types of compensation given by any Organization

Direct compensation Indirect compensation

Employees BenefitsBenefits 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

THANK YOU