HUMAN

RESOURCE
MANAGEMENT
PRESENTED BY:
ANCHAL GUPTA
MEENAKSHI BINDAL
SHIV ANAND
SNEHA SHARMA
Human Resource Management
 According to Dessler, “Human Resource Management is the
process of aquiring, training, appraising, and compensating
employees, and attending to their labour relations, health,
safety and fairness concerns.”
Nature of HRM
 Inherent part of management
 Pervasive function
 Basic to all functional areas
 People centered
 Personnel activities or functions
 Continuous process
 Based on human relations
Objectives
 Procure right kind of personnel for right job
 Provide right kind of training
 Ensure effective utilization of human resources
 Ensure development of human resource
 Motivate the employees
 Create a sense of belongingness
Scope & Activities
 Human resource and manpower planning
 Recruitment and Selection
 Training and Development
 Performance Appraisal
 Motivating the workforce
 Remuneration of employees
 Social security and welfare of employees
 Review and audit of HR policies, procedures.
Advisory Operative Managerial
• Advice to top • Employment • Planning
management • Training • Organizing
• Advice to &Development • Directing
Departmental Heads • Remuneration • Controlling
• Motivation
• Personnel Records
• Separation
Functions
RECRUITMENT
&
SELECTION
What is Recruitment?
 According to Edwin B. Flippo

“It is the process of searching the candidates for employment

and stimulating them to apply for jobs in the organization.”
Sources of Recruitment

Internal sources External sources

Transfer Recruitment at factory gate
Promotion Casual callers
Advertisement
Employment agencies
Management consultants
Educational institutions
Recommendations
Labor contractors
Telecasting
Advantages
Internal sources External sources
 Motivation  Qualified personnel

 Cheap  Wider choice

 Promotion  Fresh talent

 Tool of training  Competitive spirit

 Transfer of workforce
Disadvantages
Internal sources External sources

 No scope of fresh talent  Dissatisfaction among the

existing staff
 Employees become lethargic
 Lengthy process
 Less competition
 Costly
 Hamper the overall
productivity  Uncertain response
Selection
 “Selection involves a series of steps by which the candidates
are screened for choosing the most suitable persons for vacant
posts.”
 Selection procedure

1.Preliminary Interview
2. Receiving Applications
3. Screening of Applications R
4. Employment Test E
J
5. Interview E
6. Reference Checking C
T
7.Medical Examination I
8. Final Selection O
N
 ORIENTATION
&
SOCIALISATION
Induction/ Orientation
“It is welcoming process to make the new employee feel at home
and generate in him a feeling of belongingness to the
organization. ”
 Formal orientation program

Company’s History Rules & regulations

Products of the company Safety

Company’s organization Standing orders

Location Counseling service

Personnel policies Job routine

Employee’s activities Special training

 Benefits Problems
 Reduces anxiety
 A superficial ceremony

 Helps in fulfilling expectations  Amount of information

 Uniform understanding  Burden for supervisors

 Positive attitude

 2-way communication

 Socialization
Socialization

“It is an ongoing process through which an employee

begins to understand and accept the roles, values, norms
and beliefs held by others in the organization.”
Stages in socialization process

Productivity

Transformatio
Pre-arrival Encounter n Commitment

Turnover
 Training
&
development
What is training?
 Training is an organized activity for increasing the KSA for a
definite purpose.
Need & rationale of training?
 Changing technology
 Quality conscious customers
 Greater productivity
 Stable workforce
 Increased safety
 Better management
Methods of training
There are basically two methods:

 On-the job training- like coaching, mentoring job rotation etc.

 Off-the job training- like lectures, discussions. Case study etc.

 • Evaluation of training 4
outcomes
• Organization of training. 3
• Setting training objectives. 2
• Identification of training 1
needs
Designing a training programme
PRESENTED BY:
Latika Sharma
Neelam PRESENTATION ON
Neha Bansal
Neha Kaul HUMAN RESOURCE
Tina Khapra
Shweta
MANAGEMENT
COMPENSATION
MANAGEMENT
COMPENSATION: Definition

Wide range of financial and non financial

rewards to employees for their services
rendered to the organization.
OBJECTIVES:
 Retain & recruit the qualified employees

 Increase or maintain morale/ satisfaction

 Encourage peak performance

 Reduce attrition rate

ELEMENTS:
 Monthly wage and salary

 Bonus at the end of the year

 Economic benefits (paid holidays, LTC)

 Contribution towards insurance premium, retirement

benefits

 Transport & medical facilities

PERFROMANCE
APPRAISAL
WHAT IS PERFRORMANCE
APPRAISAL ???
 Systematic evaluation of the personality and performance of
each employee by his superior or some other person trained in
the technique of merit rating.

 It measures the worth of an employee to an organization.

ADVANTAGES AND DISADVANTAGES OF
PERFORMANCE APPRAISAL
ADVANTAGES DISADAVANTAGES

• Fair basis of promotion and • Low self esteem.

transfers.
• Help in identifying training
• Job performance is
needs. difficult to quantify.
• More competent employees. • Rating is based on
• Motivation and intentions to
stay in the organization are individual perspective
enhanced. of rater.
• Increased market value of an
organization.
 METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS
 Essay appraisal method.

 Employee ranking method.

 Forced distribution.

 Graphic ratings scale.

 Critical incidents method.

 MODERN METHODS

 360 degree appraisal.

 Management By Objectives (MBO).

 Assessment Centre .
TOTAL QUALITY
MANAGEMENT
(TQM)
TOTAL QUALITY
MANAGEMENT
(TQM)
What is QUALITY?

It means the totality of features and characteristics of a

product or service that bear on its ability to satisfy
stated or implied needs.
Total Quality Management is defined as creating an
organizational culture committed to the continuous
improvement of skills, teamwork, processes, product, service
quality, and customer satisfaction.

Three Essentials of TQM-

Meeting customers’ requirement.
Continuous improvement through management process.
Involvement of all employees.
 OBJECTIVES OF TQM

1. Meeting customers’ requirements.

2. Continuous improvement of quality.
3. Openness and trust among employees.
COMPONENTS OF TQM

1. Customer Orientation
2. Continuous Improvement
3. Employees Involvement
Benefits

 Brings quality consciousness in the enterprise.

 Greater satisfaction to the customers.
 Good public image.
 Better utilization of 5Ms
 Wastages are reduced.
 Highly committed and motivated employees.
Implementation of TQM.
W.E Deming has suggested PLAN-DO-CHECK-ACT Cycle for the
implementation of TQM.
1.Lay down the policies and objectives of TQM.

2.Chalk out the methods to achieve TQM

objectives.

3. Educate and train workers and managers to understand and

meet the requirements of TQM.

4. Start the operations of TQM by introducing new products,

machines, procedure etc
5. Observe the results of operations.

6. Analyze results and determine the consequences if

any and place the report to the top management.

7. Suggest measures for improvement of methods &

design in future.
 HUMAN RESOURCE

ACCOUNTING
Process of identifying and measuring data about human resources and communicating
this information to the interested parties.

OBJECTIVE:
effective and efficient management of HR.
provide information to the manager needed to
acquire
develop
allocate
conserve
utilize
evaluate
reward Human Resource
BENEFITS OF HRA
• Retrenchment or relieving vs retention.
• Transfer vs retention.
• Direct recruitment vs promotion.
• Utility of cost reduction program in view of its possible impact on human
relations.
• Impact of budgetary control on human relations and organizational
behaviour.
• New dimension added to capital budgeting process which includes human
resource investment costs.
• Consideration of an adequate return on investment in human assets and also
a more useful interpretation of return on capital employed.
• Decision on relocating factories,developing overseas subsidiaries closing
down or streamlining existing units.
METHODS OF HRA

 Historical or Actual Cost Method –

 In this method amount spent to

• recruit
• train
• familiarise
• develop
 is added and capitalised as the opening value of that employee.
 It can be shown on Balance Sheet and Profit and Loss Account.
MULTIPLIER METHOD -
 No real relationship between costs incurred on an individual and his value to the
organization .This method divides employee into
• Senior Management
• Middle management
• Supervisors
• Clerical and operative employees.
 The multiplier is the means of relating the personal value of the employee to the total assets
value of the organisation.The factors an employee multiplier factor attempts to reflect are:
• qualification and technical expertise,
• experience required for the job,
• personal qualities and attitude,
• promotion capability,
• replacement scarcity,
• loyalty and expectation of future service.
REPLACEMENT COST METHOD
 This method values the human assets as what it would
cost to replace the organization’s existing human
resources.

 The cost would include the cost of recruiting,training

and familiarisation as well as the opportunity cost from
lost revenue during the period of training.

 The data derived from this method could be useful in

deciding whether to dismiss or replace the staff.
ECONOMIC VALUE METHOD -
 This involves forecasting the firm’s future earnings, discounting the earnings
to determine the firm’s present value and allocating a portion to the human
resource based upon their relative contribution.
 One measure of the relative contribution of human resources to the value of
the firm is the ratio of investment in human resource to the total resource.


 1. Ratio of human assets to total assets-

 $ 5,00,000 (human assets)
 $ 15,00,000 (total assets)
 = 1/3
 2. Present value of firm’s expected future earnings=$24,00,000.
 3. Portion of firm’s value allocated to human resource=
 (1) * (2)= $ 8,00,000