Punjab Technical University Human Resource Management Syllabus
(MBA 203)
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MBA-203 Human Resource Management Max. Marks: 100 External
Assessment: 60 Internal Assessment: 40 Unit-I Human Resources
Management: Meaning, Scope, Objective, Functions, Roles and
Importance. Interaction with other functional areas. HRM &HRD a
comparative analysis. Human Resource Management practices in India.
Human Resource Planning: Meaning & Concept, Process and
importance, Methods of Human Resources Planning, Importance of
HRIS. Job Analysis, Job Description, Job Specification & Job
Evaluation Meaning, Concepts and Methods.
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Chapter Wise Details C. No Topic 1 Human Resources Management:
Meaning, Scope, Objective, Functions, Roles and Importance.
Interaction with other functional areas. HRM &HRD a comparative
analysis. Human Resource Management practices in India. 2 Human
Resource Planning: Meaning & Concept, Process and importance,
Methods of Human Resources Planning, Importance of HRIS 3 Job
Analysis, Job Description, Job Specification & Job Evaluation
Meaning, Concepts and Methods.
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Chapter 1 Human Resource Management
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Introduction to HRM HRM is a process of bringing people and
organizations together so that the goals of each are met. It is an
art of procuring, developing and maintaining competent workforce to
achieve the goals of an organization in an effective and efficient
manner. Its features are: 1. Pervasive Force 2. Action Oriented 3.
Individually oriented 4. Future Oriented 5. Development Oriented 6.
Integrated Mechanism 7. Continuous Function
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Definition of HRM HRM is the planning, organizing, directing
and controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the
end that individual, organizational and social objectives are
accomplished. - Edwin B. Flippo
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Strategic HRM Human Resource Management is a strategic and
comprehensive approach to managing people, the workplace culture
& environment. Effective HRM enables employees to contribute
effectively and productively to the overall company direction and
the accomplishment of the organization's goals. Human Resource
Management ("HRM") is a way of management that links people-related
activities to the strategy of a business or organization. HRM is
often referred to as "strategic HRM.
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Scope of HRM Personnel Aspect : Such as manpower planning,
recruitment, selection, placement, transfer, promotion, T&D,
Layoff & retrenchment, remuneration, incentives, productivity,
etc. Welfare aspect: It Deals with working conditions and amenities
such as canteen, rest and lunch rooms, housing, transport, medical
assistance, education, health & safety, recreation facilities
etc. Industrial Relation aspect: This covers union-management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc. Development
Aspect : Training & development of the employee, succession
& career planning, identification of special talents etc.
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Objectives of HRM To help the organization reach its goal To
employ the skills and abilities of the workforce efficiently To
provide the organization with well-trained and well motivated
employee To increase to the fullest the employees job satisfaction
and self- actualization To develop and maintain a quality of work
life To communicate HR policies to all employees To be ethically
and socially responsive to the needs of society
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Functions of HRM In order to achieve the above objectives,
Human Resource Management undertakes the following activities:
Procurement Function Job Analysis HRP Recruitment Selection &
Placements Orientation Managerial Function Planning Organizing
Directing Controlling Development Functions Performance Appraisal
Training Management development Succession Planning Promotion &
Transfer Motivation & Compensation Job design Work scheduling
Motivation Job evaluation Performance appraisal Maintenance Health
& Safety Employee Welfare Grievance handling Discipline Team
Work Collective Bargaining Operative Functions
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Administrative Roles Operational Roles Strategic Roles Acting
as a policy maker Administrative Expert Advisor Housekeeper
Counselor Welfare officer Acting as a policy maker Administrative
Expert Advisor Housekeeper Counselor Welfare officer Recruiter
Trainer developer, Motivator Coordinator/linking pin Mediator
Employee Champion Recruiter Trainer developer, Motivator
Coordinator/linking pin Mediator Employee Champion Change Agent
Strategic Partner Change Agent Strategic Partner ROLES OF HUMAN
RESOURCE MANAGEMENT What will be the basic difference between the
Functions of HRM and Roles of HRM ? Lets Discuss What will be the
basic difference between the Functions of HRM and Roles of HRM ?
Lets Discuss
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Importance of HRM At the enterprise level: It helps in
attracting and retaining the competent people in the organization.
It helps in training people for challenging roles, developing right
attitudes towards the job and company. Helps in promoting team
spirit among employees and developing loyalty and commitment
through appropriate reward scheme. At Individual level: It promotes
team work and team spirit among employees. It offers excellent
growth opportunities to people who have the potential to rise. It
allows people to work with diligence and commitment.
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At the society level: Employment opportunities multiply
Companies that pay and treat people well always race ahead of
others and deliver excellent results. At national level: Effective
use of human resources helps in of natural, physical and financial
resources in a better way. People with right skills, proper
attitudes and appropriate values help the nation to get ahead and
compete with the best in the world leading to better standard of
living and better employment. Importance of HRM
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1.Production and Human Resources: Success or failure of a firm
in the market depends on the strength of its products or services.
More and more companies are trying to capture and retain
knowledgeable employees through knowledge management initiatives.
2.Operations and Human Resources: People play a crucial role in
operation process. Operation requires a lot of teamwork and
empowerment. 3.Marketing and Human Resources: Marketing people form
the interface between the company and its customers. So it is
important to have a marketing team that is satisfied, developed and
nurtured to meet the marketing objectives. Interaction with other
functional area
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4. Strategic Management and Human Resources: Any new initiative
that is taken in an organization, to be successfully implemented,
has to be accepted and adopted by the employees. For example,
reengineering may not be fruitful until top management succeeds in
reengineering the mindsets of the employees. 5. Administration and
Human Resources: Modern organizations are so structured as to make
the best use of technology, finance, systems and most of its
people. Many organizations whose prime focus is the customer have
done away with vertical functional departments with tall
hierarchies and replaced them with flat and horizontal
cross-functional structures. This would reduce redundancy and
enable free flow of ideas and information.
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Comparative Analysis HRM 1.HRM is the management of Human
resource in an organization. 2.Taking care of the basic
requirements of the employees such as recruiting, staffing
maintaining of employee relations and other employee related
issues. 3.Execution of training on their scheduled timings. 4.HRM
includes the implementation of various norms in regards to the
Labour/union laws, Various policy making for compensation/benefits/
Manpower planning etc. HRM 1.HRM is the management of Human
resource in an organization. 2.Taking care of the basic
requirements of the employees such as recruiting, staffing
maintaining of employee relations and other employee related
issues. 3.Execution of training on their scheduled timings. 4.HRM
includes the implementation of various norms in regards to the
Labour/union laws, Various policy making for compensation/benefits/
Manpower planning etc. HRD 1.HRD is the development of the
Resources of the Company. 2. HRD includes the areas of training and
development, career development, and organization development.
3.HRD includes HR research and information systems, union/labor
relations, employee assistance, compensation/benefits, selection
and staffing, performance management systems, HR planning, and
organization/job design. 4.HRD is complete only with a proper HRM
in the company HRD 1.HRD is the development of the Resources of the
Company. 2. HRD includes the areas of training and development,
career development, and organization development. 3.HRD includes HR
research and information systems, union/labor relations, employee
assistance, compensation/benefits, selection and staffing,
performance management systems, HR planning, and organization/job
design. 4.HRD is complete only with a proper HRM in the
company
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HR Practices Safe, Healthy & Happy Workplace Open Book
Management Style Performance-linked Bonuses 360-Degree Performance
Management Feedback System Fair Evaluation System for Employees
Knowledge Sharing Highlight Performers Open House Discussions &
Feedback Mechanism Reward Ceremonies Delight Employees with the
Unexpected
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Questions???
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Chapter 2 Human Resource Planning
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HR Planning Nature of HRP: HRP is a forward looking function.
It assess human resource requirements in advance keeping the
production schedules, markets fluctuations, demand forecasts into
consideration. The focus of planning is always on getting right
number of qualified people into the organization at the right time.
In simple words, HRP is understood as the process of forecasting an
organizations future demand for, and supply of, the right type of
people in the right number.
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Objectives of HRP 1. Forecast personnel requirement 2. Cope
with changes 3. Use existing manpower productively 4. Promote
employees in a systematic manner
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Importance of HRP Reservoir of talent Prepare people for future
Expand or contract Cut costs Succession planning
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Process of HRP Forecasting the Demand for HR Preparing Manpower
Inventory Determining Manpower Gaps Formulating HR Plans Estimating
how many employees they require in future. Find out the size and
quality of personnel available with in the organization to manage
various positions Existed no of manpower and their skills are
compared with forecasted manpower need Identified HR requirements
needs to be translated into a concrete HR plan backed up by
detailed policies, programmes and strategies.
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I. Forecasting the demand for Human Resources 1. External
Challenges Economic developments Political, Legal, social and
technical changes Competition 2. Organizational Decisions 3.
Workforce factors 4. Forecasting techniques Expert Forecast Trend
Analysis 5. Other methods Workforce analysis Work load analysis Job
Analysis
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II. Preparing manpower inventory (Supply Forecasting): a)
Internal Labour Supply : A profile of employees in term of age,
sex, education, training, experience, job level, past performance
and future potential should be kept ready for use whenever
required. Few forecasting techniques are as follows 1. Staffing
Table : Current Staffing level Projected outflows of the year +
Projected inflows this year = Firms internal supply for this time
next year 2. Markov Analysis : Uses rates of promotions transfer
and turnover estimate future availability in the work force. 3.
Skill Inventory : Assessment of knowledge, skills abilities,
experience etc. 4. Replacement Chart: It shows the profile of job
holders department wise and offers a snap shot of who will replace
whom if there is a job opening
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II. Preparing manpower inventory (Supply Forecasting): b)
External Labour Supply: When organizations grows rapidly,
diversifies into newer area of operations or when it is not able to
find the people internally to fill the vacancies. Important
barometers of labour supply: 1. Net migration into and out of the
area 2. Education Level of workforce 3. Demographic changes in
population 4. Technical developments and shifts 5. Population
mobility
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III. Determining Manpower Gaps: 1. Number required at the
beginning of the year 2. Changes to requirement forecast during the
year 3. Total requirements at the end of the year (1+2) 4. Number
available at the beginning of the year 5. Additions (transfers,
promotions) 6. Separations (retirement, wastage, promotion out and
other losses) 7. Total available at the end of year (4+5+6) 8.
Deficit or surplus (3-7) 9. Losses of those recruited during the
year 10. Additional numbers needed during the year (8+9)
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IV Formulating HR Plans : Recruitment plan : Indicate type of
people required i.e. right people Redeployment plan : Transferring
or retraining existing employees Redundancy plan: i.e.
retrenchment, layoff, golden handshake etc. Training plan: No of
trainees of apprentice required Productivity plan: By reducing
employee costs through work simplification studies, incentive &
profit sharing schemes, job redesigned Retention plan: strategies
to avoid wastage through compensation policies, changes in work
requirement and improvement in working conditions Control points:
To find out deficiencies, periodic updating of manpower inventory,
in the light of changing circumstances
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Human Resource Information System
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It is a method by which an organization collects, analyses and
reports information about people and jobs. HRIS basically a
database system that offers important information about employees
in a central and accessible location. HRIS is a computerized system
that assists in the processing of HRM information. It supplies
up-to-date information about people and jobs in an organization at
a reasonable cost. HRIS is designed to monitor, control and
influence movement of people from the time they join a firm till
the time they decide to leave the firm.
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Importance of HRIS HRIS can process, store and retrieve
enormous quantities of data in an economical way The records can be
updated quickly It helps to enhance accuracy It help to reduce
fragmentation and duplication of data The available information an
be readily manipulated, merged and disaggregated in response to
special and complex demands and presented promptly
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Objectives of HRIS To offer an adequate, comprehensive and
on-going information system about people and jobs. To supply
up-to-date information at a reasonable cost. To offer data security
and personal privacy. Data security is a technical problem that can
be dealt with in several ways, including passwords and elaborate
codes. In the information age, personal privacy is both an ethical
and moral issue.
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Process of HRIS HRIS can be set up through a four step process
: 1. Identifying the needs of a firm 2. Organizing flow of
information 3. Implementation the plan 4. Evaluating the whole
exercise to find gaps 5. To rectify thing in time.
Job Analysis It is a formal and detailed examination of jobs.
It is a systematic investigation of the task, duties and
responsibilities necessary to do a job. It identifies what people
do in their jobs and what they require in order to do the job
satisfactorily. The information about a job is usually collected
through a structured questionnaire. Tasks-it is a work activity
carried on for specific purpose Duties-larger work segment
consisting several tasks Responsibilities-are obligations to
perform certain tasks and duties Job Analysis Job Tasks Job Duties
Job Responsibilities
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Job Analysis: A Basic Human Resource Management Tool Tasks
Responsibilities Duties Job Analysis Job Descriptions Job
Specifications Knowledge Skills Abilities Human Resource Planning
Recruitment Selection Training and Development Performance
Appraisal Compensation and Benefits Safety and Health Employee and
Labor Relations Legal Considerations Job Analysis for Teams Human
Resource Planning Recruitment Selection Training and Development
Performance Appraisal Compensation and Benefits Safety and Health
Employee and Labor Relations Legal Considerations Job Analysis for
Teams
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Uses of Job Analysis Human Resource Planning Recruitment
Selection Placement & Orientation Training Counseling Employee
Safety Performance Appraisal Job Design & redesign Job
Evaluation
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Process of Job Analysis Organizational analysis Selection of
representative positions to be analyzed Collection of job analysis
data Preparation of job description Preparation of job
specification Overall picture of various jobs in the organization
is obtained through organization charts and workflow charts Not
possible to analyze all jobs Sample jobs are only analyzed On the
characteristics of the job, required behavior and personal
qualifications needed to perform the job effectively. Describing
the contents of the job in terms of functions, duties,
responsibilities and operations etc. Job specification is a written
statement of personal attributes required to carry out the job such
as skills, training experience etc.
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Methods of collecting job analysis data Job performance Job
analyst actually performs the job in question for getting first
hand experience of factors such as physical hazards, social
demands, emotional pressures and mental requirements. Useful for
jobs that can be easily learnt Personal observation The analyst
observes the workers doing the job. The tasks performed, the pace
at which activities are done and working condition are observed
Certain precautions Analyst must observe average working during the
average conditions Analyst should just OBSERVE without direct
involvement Sample should be proper
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Critical incidents Job holders are asked to describe several
incidents based on the past experience Incidents are analyzed and
classified Job requirements become clear once the analyst draws the
line between effective and ineffective behaviors Interview Includes
asking questions from both job holders and supervisors in
individual or group setting Standard format of questionnaire is
preferred Panel of experts Interaction with senior job supervisors
and superiors Methods of collecting job analysis data
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Diary method Job holders are asked to keep diaries of their
daily activities and record the time spent activity. Questionnaire
method: Types of Questionnaires Position analysis questionnaire
(PAQ):- Use to collect specific information about job tasks &
workers traits. Mgt. position description questionnaire(MPDQ)- for
analyzing managerial jobs Functional job analysis (FJA) :- Examine
the fundamental components of data, people and things. Methods of
collecting job analysis data
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Job Description It is a written statement of what the job
holder does, how it is done, under what conditions it is done and
why it is done It describes what the job is all about, throwing
light on the job content, environment and conditions of employment.
It is descriptive in nature and defines the purpose and scope of a
job Its main aim is to differentiate the job from other jobs and
state its outer limits
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Contents of Job Description Job title:- Tells about the job
title, Code number and the department where its is done Job
summary:- A brief write-up about what the job is all about Job
activities:- description of tasks done, facilities used, extent of
supervisory help Working conditions:- the physical environment of
job in terms of heat, light, noise and other hazards Social
environment:- size of work group and interpersonal interactions
required
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Problems with Job Descriptions 1. No updation is done as the
jobs change 2. Difficult to cover all aspects of the job in clear
and precise document 3. They can limit the scope of activities of
the job holder reducing organization flexibility
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Guidelines for writing job description 1. Should indicate the
nature and scope of the job 2. Should be brief factual and precise.
3. Should be specific to work,complexity, degree of skills
required, extent to which the problems are standardized. 4. Extent
of supervision should be clearly stated. 5. Should indicate
reporting relationships.
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Mode of writing Job analyst has to write the JD after proper
consultations with the worker and the supervisor. 1. Analyst gets
the form filled by the immediate supervisor of the employee 2.
Analyst must observe the actual work done by the employee and
complete the JD form 3. Effort must be made to involve the employee
and supervisor while finalizing the JD 4. Keep the JD updated by
keeping track of changing conditions.
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Job specification It summarizes the human characteristics
needed for satisfactory job completion. It is a written statement
of the important attributes of a person in terms of education,
experience, skills, knowledge and abilities (KSA) to perform a
particular job. For each job description it is desirable to have a
job specification It is useful in selection process
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Classification of personal attributes Essential
attributes-skills ability and knowledge that a person must possess
Desirable attributes qualification a person ought to possess.
Contra indicators-attributes detrimental to job performance.
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How is JS done? It can be developed by talking with the current
job holders Opinions of the supervisors can also be used Checking
similar job in other organizations can also help
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Job Evaluation Job evaluation is a systematic way of
determining the value /worth of a job in relation to other jobs in
an organization. It tries to make a systematic comparison between
jobs to assess their relative worth for the purpose of establishing
a rational pay structure. Job evaluation begins with job analysis
and ends at that point where the worth of a job is ascertained for
achieving pay-equity between jobs.
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Features It tries to assess jobs,not people. Basic information
on job evaluation is obtained from job analysis. Carried out by
groups not individuals Degree of subjectivity is always present.
Does not fix pay scales, but it is merely a basis for evaluating a
rational wage structure.
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Process of Job Evaluation 1. Set Objective- Top management must
explain the aims and uses of programme to the employees and the
unions. 2. Creating Job evaluation committee consisting of
experienced employees, union representatives and HR experts 3.
Finding the jobs to be evaluated- Not every job need to be
evaluated. Only those jobs which represent the department 4.
Analyzing and preparing job description 5. Selecting the method of
evaluation- keeping the job factors as well as organizational
demands in mind
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6. Classifying jobs- on the basis of skill requirements,
experience needed, types of responsibilities, degree of supervision
needed, amount of stress caused by the job etc. 7. Installing the
programme:- management to explain the process to the employees 8.
Reviewing periodically. Process of Job Evaluation
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Methods of Job Evaluation AnalyticalPoint Ranking Factor
Comparison Non Analytical RankingJob Grading
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1.Ranking method Jobs are arranged from highest to lowest, in
order of their value or merit to the organization. Jobs can also be
listed according to their relative difficulty in performing them 1.
Best suited for small organizations because rankings are difficult
to be developed in the large organizations 2. Jobs are usually
ranked in each department and then the department rankings are
combined to develop an organizational behavior. 3. Disadvantages-
1. rankings are difficult to develop in large, complex
organizations 2. Ranking is highly subjective in nature and may
offend many employees
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2. Job Classification (Job Grading) A predetermined number of
job groups or classes are established and jobs are aligned to these
classifications. This method places groups of jobs in to job
classes or job grades. Separate classes may include office,
clerical, managerial, personnel etc. Class I- Executives- further
classification may be office manager, deputy office manager, office
superintendent, departmental supervisor etc. Class II- Skilled
Workers- Purchasing Assistant, Cashier, Receipts Clerk etc. Class
III- Semi skilled workers- steno typists, machine operators, switch
board operators etc. Class IV- Office Boys etc
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3.Factor comparison method Each job is ranked according to a
series of factors which include mental effort,physical effort,
skill needed, responsibility, working conditions etc. Steps 1.
Select the key jobs 2. Find the factors in terms of which the jobs
are evaluated 3. Rank the selected jobs under each factor (by each
and every member of the job evaluation committee) independently 4.
Assign money value to each factor and determine the wage rates for
each key job 5. Wage is set proportionately to each factor
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Example for Factor Comparison Job Hourly Rate Pay for Skill Pay
for Efforts Pay for Responsibility Pay for Working Conditions
Secretary Rs. 9.004.50(4)2.00 (4) 0.50 (3) Admin Assistant Rs.
11.005.50(3)2.50 (3) 0.50 (3) Supervisor Rs 16.006.00(2)3.00
(2)4.50 (2)2.50 (1) Manager Rs 21.009.00(1)3.50(1)7.00 (1)1.50
(2)
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Point Method Here jobs are expressed in terms of key factors
and their sub factors. Points are assigned to each factor after
prioritizing each factor in order of importance. The points are
summed to determine the wage rate for the job. The procedure
involved may be explained thus: 1. Select key jobs. Identify the
factors common to all the identified jobs such as skill, effort,
responsibility, etc. 2. Divide each major factor into a number of
sub factors. Each sub factor is defined and expressed clearly in
the order of importance, preferably along a scale.
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Point Method The most frequent factors employed in point
systems are (i) Skill (key factor); Education and training
required, Breadth/depth of experience required, Social skills
required, Problem-solving skills, Degree of discretion/use of
judgement, Creative thinking (ii) Responsibility/Accountability:
Breadth of responsibility, Specialised responsibility, Complexity
of the work, Degree of freedom to act, Number and nature of
subordinate staff, Extent of accountability for equipment/plant,
Extent of accountability for product/materials; (iii) Effort:
Mental demands of a job, Physical demands of a job, Degree of
potential stress The educational requirements (sub factor) under
the skill (key factor) may be expressed thus in the order of
importance.
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Point Method 3) Find the maximum number of points assigned to
each job (after adding up the point values of all sub-factors of
such a job). 4) This would help in finding the relative worth of a
job. For instance, the maximum points assigned to an officer's job
in a bank come to 540. The manager's job, after adding up key
factors + sub factors points, may be getting a point value of say
650 from the job evaluation committee. This job is now priced at a
higher level. 5) Once the worth of a job in terms of total points
is expressed, the points are converted into money values keeping in
view the hourly/daily wage rates. A wage survey is usually
undertaken to collect wage rates of certain key jobs in the
organization.
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Example for calculation of Point value to factors along a scale
Factor Point values for degree Total 12345 Skills1020304050150
Physical Effort816243240120 Mental Efforts51015202575
Responsibility714212835105 Working Conditions61218243090 Maximum
total points of all factors depending on their importance to job
540
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Conversion of job grade point into money value Point RangeDaily
Wage Job Grade of Key bank officials 500-600300-4001.Officer
600-700400-5002.Accountant 700-800500-6003. Manager I scale
800-900600-7004. Manager II scale 900-1000700-8005. Manager III
scale
