HUMAN RESOURCE MANAGEMENT
Course Contents:
Ø Introduction to Human
Resource Management: 10 Marks.
v Concept, characteristics,
objectives, functions of HRM.
v HRM System, personnel and
human resource management.
v Human resource outcomes:
Quality of work life productivity and readiness to change.
Ø Human Resource Planning:
10 Marks.
v Concept, characteristics
of human resource planning.
v Concept of human resource
strategy, relationship between human resource planning and strategic planning.
v Human Resource Planning
process: Assessing current human resources, demand and supply, forecasting
human resource inventory, human resource information system, succession
planning, and human resource planning inNepal.
Ø Job design and analysis:
10 Marks.
v Meaning of job. Task
position and occupation.
v Concept of benefit of job
design
v Concept and purposes of
job analysis, collecting job description, job specification and job evaluation.
Ø Recruitment, selection
and socialization: 10 Marks.
v Meaning, sources and
method of recruitment
v Concept of selection
difference between selection and recruitment.
v The selection process,
selection tests, interview and their types.
v Reliability and validity
of tests.
v Concept and process of
socialization.
Ø Training and Development:
10 Marks.
v Concept and process of
learning.
v Human resource
development concept and importance.
v Concept, objectives and
benefits of training, determining training needs.
v Training Methods.
v Concept and techniques of
management development.
v Evaluating training
effectiveness.
v Training and Development
in Nepal.
Ø Performance Appraisal and
Reward management: 10 Marks.
v Concept and use of
performance appraisal.
v Methods of performance
appraisal graphic rating scale alternative ranking, paired comparison, forced
distribution critical incident checklist method.
v Concept of reward
management, types and qualities of effective reward.
Ø Compensation Management:
10 Marks.
v Concept and determinance
of compensation.
v Method of establishing
compensation.
v Current trends in
compensation.
v Incentive plans, different
forms of incentives.
Ø Employee Discipline: 10
Marks.
v Concept and types of
disciplinary problems.
v General guidelines in
administrating discipline.
v Disciplinary actions.
Ø Labor Relation: 10 Marks.
v Concept and purpose of
labor relation.
v The actors of industrial
relation.
v Employee grievances,
causes and handling grievance.
v Labor disputes:
Prevention and settlement of disputes.
CHAPTER: 01 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT:
The
concept of human resource management organizational effectiveness largely
depends up o the performance of people working in the organization.
People
as human resource only when the acquired such as knowledge, skills, attitudes,
experience and potential growth. Human resource are some people who are willing
to contribute their skills, talents and attitude in orders to achieve
organizational goals.
HRM
is concerned with the people element in the organization. It is concerned with
the effective management of available human resources in the organization.
It
involves the production utilization of people in order to achieve
organizational goals.
HRM in
term increasing used to refer to the philosophy policies, procedures and
practices related to the effective management of people of the organization.
HRM can be a major contribution on the success of organization.
According to Robbins, “Human
resource management is a process of four functions: acquisition, development,
motivation and maintenance of human development.”
According to French, “Human resource management is the
systematic planning, development and control of network of interrelated process
affecting and involving all member of organization.”
Nature/
Characteristics of Human Resource Management:
Ø Human Focus:
HRM is
concerned with the effective management of people possessing energy and
capabilities. It is individual oriented. It is specially focused on the human
oriented approach. The detailed investigation of human resource in organization
is made.
Ø Pervasive:
HRM is
a pervasive function of management. It is performed in all levels of
management. The responsibility of human resource can not be delegated to
others. HRM is practically implemented in the organization at various levels
Ø Continuous:
HRM is
a continuous function of management. In other words, it is not a one-time
process. It will continue till the organization exists. It is continuously
monitored at every step of organization existence.
Ø Dynamic:
HRM is
not a static concept but a dynamic function. It is also affected by internal
environment like human resource policies, goals of the organization, structure
etc. it is also affected by external environment like PESTEL factors.
Ø System:
HRM is
a system of input, processing and output. It utilizes the input, process it and
also provide output. Therefore, human resource management is the combination of
input, processing and output, which is considered as a system.
Objectives
of Human Resource Management:
Human
resource management is the important component of management. It is the
combination of four functions. The main objectives of human resource management
are as follows:
1. Goal Achievement:
Human resource
management makes effective utilization of available human resources by
providing them training, and development. The goal of the organization is
achieved when there is proper utilization of potential human resources
2. Structure Maintenance:
Every
organization has it’s organizational structure. The objectives of human
resource management is to maintain adequate organizational structure. It helps
to improve the relationship among the human resource in the organizational
setting.
3. Goal Harmony:
In an
organization, there are individual and organizational goals, it brings harmony
in organizational goals and individual goals of employees. It recognize and
satisfies individual need in order to achieve overall organizational goals.
4. Productivity Improvement:
Human
resource management is concentrated in providing different training and other
opportunities to the employees in order to increase skill and productivity of
individual employees. Better quality of human resources result in improved productivity.
5. Efficiency:
Human
resource management avoid wastage and promote efficiency of human resources. It
ensures cost-effective utilization of human resources. The higher the
productivity, higher is the efficiency of employees. In this way, the main
objective of human resource management (HRM) is also to increase the efficiency
of individual employee.
Functions /
Areas of Human Resource Management:
1. Human Resource Planning:
The
important function of human resource management is to prepare human resource
planning. It involves demand and supply of employees. While making human
resource planning, the human resource department has to review the
organizational goals. A human resource information system provides detailed
information about the current employees, which helps for making good plan.
2. Recruitment and Selection:
One of
the important functions of human resource management is the recruitment and
selection. Recruitment is a process of making a pool or qualified candidates.
Selection is the process of accepting the best candidates from many candidates.
Recruitment function starts with the application process. Information from job
analysis and human resource information system is used for selecting the best
candidates.
3. Training and Development:
Training
and development is also the another function of human resource management and
development is required to develop the skill, ability and motivation of
employees. Human resource department has to engage in assessing training need.
On-the-job training and off-the-job training can be provided to the employees.
4. Performance Appraisal:
Performance
appraisal is the process of evaluating performance of employees regarding
strength and weakness. It helps to assess hoe well the employees are performing
their job. Human resource manager have to design appraisal technique to get
feedback from employees.
5. Job Analysis:
It is
the basic function of human resource management. It involves the collection of
job related information to prepare job description and job specification. Job
description includes information about what a person has to do. In job
specification, it indicates the qualification, experience and skills required
to perform the job as mentioned in job description.
6. Compensation and Benefit:
Compensation
reward people through pay incentives and benefits of the work done. Benefit
reward people with additional compensation. They are direct form of
compensation such as, health care, family related and other benefits.
Compensation and benefit are the major source of the motivating employees at
work.
7. Health and Safety:
Providing
healthy work environment is another important function of human resource
management. Every organization has to take care of it’s employees’ health and
safety. The working place are getting more and more and increase in use of
chemical and other harmful substance.
8. Employees’ Relation:
Another
important function of human resource management is to maintain good relation
between employees and employer. In this process, the human resource department
helps to develop mechanism for developing understanding between employees and
employer. Human resource department help to develop the mechanism to solve the
conflict. It involves handling grievance, labor management, handling conflict
etc.
HUMAN
RESOURCE SYSTEM:
A
system is a unified whole composed of interrelated and interacting part to
achieve common goals. Human resource management is an open system. It consists
of input, processing. Output and feedback component. It has both internal and
external environment.
1. Input:
It is a
major component of human resource management system. It is the first step in
the system. It consists of the following components:-
Ø Human energy and
competency:
Energy
is represented by physical strength. Competencies are represented by skills,
knowledge, experience, potential for growth etc.
Ø Organizational Plan:
The
human resource management system is guided by organizational plan. These input
components are very essential to support human resource management system.
Organizational plan consists of overall organizational goals and targets.
Ø Human Resource Plan:
Human
resource plan is also the important input component. It is the process of
making plan of future human resources. It is also the process of marketing
future, human resource demand and supply.
Ø Human Resource
(management) Inventory:
Management
inventory represent inventory of current human resources available in the
organization. Management inventory is an important component of making human
resource plan.
Ø Job Analysis:
Job
analysis specifies job requirement, qualification and skills for various jobs.
It mainly consists of job description and job specification.
Ø Labor Market:
Labor
market serves as the major source of supply for human resource. It may be
schools, colleges, universities, training institutions, manpower agents etc.
2. Processing:
The
important processing component o human resource management systems are as
follows:-
Ø Acquisition:
Acquisition
ensures right number of people at right place and at the right time in the
organization. Acquisition mainly consists of recruitment (identifying potential
candidates), selection (selecting the best candidates and rejecting the wrong
one), socialization (adaptation of new employees in the organization.)
Ø Development:
Development
ensures competencies of employees to handle job. It is also the process of
training and developing the employees. It mainly consists of training,
management development, career development and interpersonal development.
Ø Motivation:
Motivation
ensures willingness of employees for doing job effectively. The employees
should be motivated toward their jobs in order to increase productivity and
efficiency. Motivation consists of need, satisfaction, job design, performance
appraisal and reward management.
Ø Maintenance:
Maintenance
ensures retention of employees in the organization. Highly qualified manpower
should be retained (hold) in the organization. Maintenance involves
compensation management, employees’ discipline, grievances (hopeless) handling
and employees’ welfare.
3. Output:
The
human resource management system also consists of certain output. Output
components of human resource management are as follows:-
Ø Goal Achievement:
This
refers to overall organizational goal achievement. The goal of societal
well-being is also one of the goals of organization.
Outcomes of
Human Resource Area / Human Resource Outcomes:
Human
resource outcome is the output related to human resource management. The main
outcomes of human resources are as follows:-
1. Quality of Work Life:
The
term quality of work life (QWL) refers to making job more interesting,
challenging and satisfying. Quality of work life concept has been developed to
satisfy employee’ important performance need for working and sharing their
experience in the organization.
The
major component of QWL consists of the followings:-
Ø It attempts to create a
democratic organization where everyone has a voice in deciding issues.
Ø It tries to share the
financial reward of the organization, so that every one benefit from a greater
co-operation.
Ø QWL helps to create
greater job security of an individual.
2. Productivity:
The
concept of productivity refers to the ratio of output to input in order to
increase productivity, the rate of output should be higher than input. Human
resource manager and others line managers can contribute to productivity by
utilizing their workforce effectively and efficiently, productivity depends up
on different factors such as; investment, innovation, learning, motivation etc.
3. Readiness for Change:
The
increasing challenges from environmental forces force everyone to cope with
this environment. In the present situation, managers, workers, and union
members should be ready to work with the change process. Everyone has to be
prepared for any sort of changes to meet the current and future challenges. In
other words, employees should be ready for any sort of changes.
Personnel
Management Vs. Human Resource Management:
During
19th century personnel management has been used in different
management book in 1970 the term human resource management (HRM). Nowadays the
term human resource management is used widely in text book, human resource
management new version of personnel management. The major difference between
personnel and HRM are as follows:-
Basis of Difference
|
Personnel Management
|
Human Resource
Management
|
1. Time & Planning
|
Personnel management
has short-term focus & therefore react specific personal problems by
providing immediate solution. Whenever there is problem, it makes plan.
|
HRM is proactive and
make systematic which study before any problems or changes take place. It
follows long-term approach to work on a problem.
|
2. Investment.
|
Personnel management
regards investment in people as a variable cost.
|
HRM regard investment
as a social capital capable of development.
|
3. Main concerns
|
The personnel function
in unionizes organization was mainly concerned with negotiating &
administering collective bargaining. It focuses on rules and regulations.
|
HRM function concern
with the wider notion of workforce governance in which employees’ involvement
and participations are emphasized.
|
4. Information and
Communication.
|
Personnel management
specialist used communication and information mainly as a source of power and
controlling activities.
|
Communication and
information is mainly used as a source of developing trust and commitment
among the organizations’ employees.
|
5. Aims
|
Personnel management
aims at non-manager specialist and professionals to increase skills of
employees.
|
HRM is more concern
with the manager by developing management team in the organization.
|
6. Outcome.
|
Personnel management is
concerned with job satisfaction of employees.
|
HRM is concerned with
the development of the culture and climate of organization.
|
Challenges
of Human Resource Management:
In
today’s business environment, the job of managing people is getting more
difficult. Different factors directly affect human resource management.
Therefore any changes in the environment have challenges for human resource
management. Some of the challenges of HRM are as follows:-
1.
Globalization:
Globalization
is the process by which, transaction of business organization have been
globalized across the world. Globalization provide platform for selling goods
and services from one country to another country. Only those companies can
survive from these processes which are able to employ and retain qualified
people. The challenges for human resource department are to review current HR
policies in order to meet globalization.
2.
Increasing concern for security and employment:
Security
and employment is also the major concern for HRM. The increasing worldwide
terrorism is a major challenge not only for nation but also for the
organization all over the world. Therefore, national security provided to
people is equally important. The 9/11 terrorist attack in
the USA (World Trade Centre & Pentagon) was a great challenge for
the world. Million of people and thousands of business organizations were
affected by this incident. Therefore, the internal security problem and
external challenges is a major threat for any country.
3. Work
force Diversity:
The
success of organization depends on how much it can respond to the situation of
workforce diversity, workforce from different countries with different value,
cultures, language, education, training background representing different races
and religions are participating in work place. The role and responsibility of
HRM is to handle diversity related problems.
4.
Contingent Workforce:
Contingent
workforce refers to the part time, temporary workers appointed for short-term
contract. Employers are now interested in appointing workers on contingent
basis to fulfill the demand of business. Employees of contingent nature can
maintain a balance between family and work. Moreover, they are challenges for
HRD. Since they are part timers, it is the role of HRD to use their skills. It
is very difficult for the organization to use their skills for a long time.
5.
Decentralized work sites:
With
the increasing use of information technology, work places are decentralized.
Due to the use of computers, e-mails and internet network, today’s employees
are not required to sit in the office from 9 AM to 5 PM instead they can work
at home and report to the head office with the help of computer linkage.
However, challenges are there for HR department to monitor and evaluate the
performance of workforce. Human resource department have to ensure the quality
of work in decentralized work sites.
6. Employees Involvement:
The
need for employees’ involvement at work place is increasing to make them able
to contribute to a given job. Similarly, when the organization is larger in
size, it is difficult for lower level management to work without responsibility
and resources. To enhance employees’ contribution, it is essential to delegate
authority. The challenges for HR manager are to make the people engaged and use
their maximum effort. To make the employees involved the best motivating
factors will be to provide opportunities to work in challenging job.
Human Resource Management inNepal:
Ø Nepalese organizations
are in the age of personnel management. There is least concern with developing
and utilizing HR potentiality.
Ø There is nepotism and
favoritism in most of the Nepalese organizations.
Ø Nepalese top managers
spend a lot of time in hiring and transferring employees.
Ø There is over supply of
human resources. Manpower planning is lacking in Nepal.
Ø HR development has
remained an area of least priority in Nepalese organization. Training is not
regarded as an investment in human resources.
Ø Nepalese organizations
are not oriented towards productivity improvement. There is no harmony between
individual and organizational goals.
Ø Private enterprises lack
systematic performance appraisal systems. Public enterprises have legally
prescribed performance appraisal system, but in practical they are not used.
It can
be concluded that the output of HR quality of work life, productivity and
readiness to change has not been achieved.
CHAPTER: 2 HUMAN RESOURCE PLANNING.
Meaning:
There
has been increasing competition in the market to provide quality and low cost
product and services. In this situation the human resource department in the
organization has to plan human resource activities in order to ensure quality
manpower, however many organization pay less attention to the proper plan and
utilization of human resources. HR/ employment/ manpower planning/ human
resource planning is the process of acquiring and utilizing human resources in
the organization. If the organization has right number of employees at the
right time, critical problems can easily be solved.
HR
planning is prepared by human resource department in consultation with line
department by determining the right number of people – the demand and supply of
manpower. The HR planning and supply of manpower. The HR planning matches the
demand and supply of human resources in order to meet future activities.
1. According to Schuler, “Personnel and HR planning involves
forecasting human resource needs for the organization planning the step
necessary to meet those need.”
2. According to Decenzo & Robbins, “Employment planning is
the process of determining organizations human resources.”
From
the above definitions, the characteristics of human resource planning are as
follows:-
1. It is related with the
planning of human resources based on strategic plan.
2. It estimates demand and
supply of manpower.
3. It assures that sufficient
numbers of skilled and motivated employees are available.
4. It helps to utilize human
resources in a cost-effective manner.
Characteristics
of Human Resource Planning:
1. Aspect of Acquisition
Function:
Human
resource planning function id related to acquisition function of human resource
management. In other words, the acquisition function of human resource
management starts with the proper human resource planning.
2. Future Oriented:
Every
planning activity is related to future. HR planning is also future oriented.
The HR planning is made today and implemented in the future. HR planning
estimates the future human resources of the organization.
3. Estimation of Demand and
Supply of Manpower:
HR
planning estimate the future demand and supply of manpower for any
organization. HR planning helps to make necessary arrangement of surplus and
deficit of human resources in the organization.
4. Goal Oriented:
HR
planning is made in order to achieve certain goals. The main objective of HRP is
to preplan the human resources for the future. HRP is made today for the future
in order to achieve short-term and long-term goals.
5. Quantitative and
Qualitative Aspect:
In HRP,
the human resources needed for the future is not only determined in quantity
but other aspect regarding human resources is also determined. Quantitative
aspect such as skill, attitude and ability of human resources is also
estimated.
6. Integral Part of
Organizational Plan:
Any
organization determines different types of corporate of organizational plan.
HRP is important part of corporate planning. HRP is important to make
organizational planning.
7. Time Horizon:
Human
resource planning considers short-term and long-term goal of the organization.
It estimates these goals remaining within a fix period of time. In other words,
human resource planning considers time horizon.
Importance
of Human Resource Planning:
1. Goal (Objective)
Achievement:
Human
resource planning focus on overall organizational goals. The human resource
planning ensures the optimum achievement of objectives. The forecast of human
resources are based on the objectives, strategies and plan of the organization.
2. Minimize Future Risk and
Uncertainty:
Human
resource planning is made to minimize future risk and uncertainty by
forecasting the need of technical and other manpower. This will help to reduce
the chances of losses by making optimum utilization of human resources.
3. Effective Utilization
Human Resource:
Human
resource planning ensures that the organization acquire and retain the quality
human resource. Existing human resource can be deployed to ensure their
effective utilization.
4. Implement Business
Strategy:
Without
proper human resource planning, business strategy can not be implemented. Human
resources are the people who have to work in order to implement the business
strategy. It is only possible through human resource planning.
5. Human Resource
Development:
Human
resource planning anticipate skill requirement for various level of human
resources. This provides adequate time for planning and development programs.
In other words, human resource planning uses the employees properly.
6. Promote Awareness:
Human
resource planning promotes awareness that human resource activities are equally
important at every level. Both line and staff managers directly and indirectly
have to be involved in human resource activities. In other words, human
resource planning promote awareness among human resources.
Human
Resource Strategy:-
Meaning
and Concept:-
HR
strategy is an important tool to implement HRP in order to achieve business
objectives. HR strategies are generally linked vertically with business
strategy and horizontally with marketing, production and other strategy.
HR
strategy is concerned with establishing relationship between long-term
direction and business strategy. It is used to design the structure and
functions of an organization to improve the situation of co-ordination. To make
this clear, it is important to understand the concept of three order strategy.
The first order strategy is concerned with the long-term impact which affects
second order strategy. Second order strategy is related to organizational
structure and system of control. Finally, there is the third order strategy,
which is known as HR strategy. Without the third order strategy, other order
strategy can not be implemented.
>>According to Hall and Torrington, “HR strategy
involves a central philosophy of the way that people are managed in an
organization and transition of this in to personnel policies and practices, and
it’s interrelation with business strategy and within itself.”
>>According to Gary Dessler, “HR strategy refers to the
specific human resource course of action the company plans to pursue to achieve
it’s aims.”
Features
of Human Resource Strategy:-
1. Goal Oriented:-
HR
strategy is always goal oriented. HR strategy is helpful to achieve the overall
organizational goals as well as the goal of HR department. In order to achieve
such goals, different courses of action related to HR strategy are important.
2. Environmental
Consideration:-
HR
strategy considers different environmental factors to implement it. Different
environmental factors such as, economic, social, cultural, political,
technological, trade organizations are considered before making human resource
strategy.
3. Long-term Perspective:-
HR
strategy is made for short-term as well as long-term. However, many strategic
planning are made for long-term perspective. In the same way, HR strategy is
also made for long-term perspective. In other words, HR strategy has long-term
impact.
4. Integrated Approach:-
While
designing HR strategy not only environmental factors are considered, but also
other factors of the organization like overall strategy, organizational
features, plans and policies are also considered. In this sense, HR strategy is
an integrated approach of many components.
Relationship
between HR Planning & Strategic Planning (Business Strategy):
1. Business Planning:-
Business
planning is the plan made for achievement of business objectives. It includes
the following planning activities:-
a).
Strategic Planning:-
It is
prepared for a long period of time. The plan includes corporate philosophy,
environmental scanning, and constraints and the objectives goals of the
organization. Such plans are prepared with the involvement of the CEO.
b).
Operational Planning:
Operational
planning is made for a period of 3-5 years. It includes the middle range
operational activities of the business. It comprises plan programme,
organizational strategies and plan for the entry of new business. This plan
implements the strategic planning.
c).
Annual Budget:
In
order to reach strategic and operational planning at the bottom level, annual
budget is required. This planning activity consists of annual budget, fixing
performance goal programme, assignment, monitoring and evaluation.
2. Human Resource Planning:-
HRP is
the estimation of demand and supply of human resources. It includes the
following activities:-
a).
Issue Analysis:
This
analysis is made to support the implementation of strategic planning based on
long-term strategic planning issue, business need, external environment,
internal resources, and other implications are identified.
b).
Forecasting Human Resource Requirement:
Once
the issues are identified, estimation of human resource for the future is
conducted. It includes decision relating to the staffing level, staffing mix,
job designing and finding requirement of human resource.
c).
Action Plan:
Depending
on human resource requirement, on action plan is prepared to achieve
organizational objectives. The action plan include staffing, authority
requirement, selection, transfer, promotion, trainings and development,
compensation management and labor reaction.
Approaches
to Human Resource Planning:
Ø Human Resource Approach
(Traditional Approach):
Figure:1
Ø Strategic Approach:
Figure:2
1. Traditional Approach:-
This
approach considered ‘Hard’ technique to forecast the demand and supply of
manpower for the organization. It also considers the quantitative aspect of
human resources. This method provides ways and agreed method as technique to
work out manpower planning. According to this approach, HRP comprises the
following: - (see fig. 1)
Ø Forecasting future demand
of human resource.
Ø Analysis of current human
resource.
Ø Forecasting internal
human resource supply.
Ø Reconciliation of
forecasts.
Ø Decision and plans.
2. Strategic Approach:-
According
to this approach, HRP is taken to be the result of interaction among the
environmental development. This approach assumes that, together with the ‘Hard’
prediction of HR requirement. It is also necessary to make the prediction of
‘Soft’ factors such as, employees’ creativity, innovation and flexibility required.
The ‘Soft’ HRP is directed towards the following activities (see fig. 2):-
Ø Defining where the
organization wants to be in the future.
Ø Defining where the
organization is at the moment.
Ø Analysis environmental
influence.
Ø Formulation of plans to
affect the desired changes and to ease transition.
Human
Resource Planning Process:-
HRP is
the process of anticipating future business and environmental demand on an
organization and attempting to provide sufficient manpower. The important
phases of HRP are as follows:-
1. Environmental Analysis:-
Environmental
analysis include an analysis of external (PESTEL) and the internal environment
(organizational objectives and plans). After an analysis of the internal and
external environment, it is possible for top managers and HR manager to find
out strength and weakness. On the other hand, it can analyze opportunities and
threats.
2. Determining HR Objectives
and Policies:-
After
an analysis of internal and external environment, it is important to develop HR
objectives and policies. These objectives and policies are important to tap
(use) the HR in business opportunities. The human resource information system
(HRIS) helps by providing related information in this course of action.
3. Human Resource Forecast:-
Once
the information is analyzed regarding current human resources, the next step is
to make a human resource forecast in order to meet the future requirement. It
consists of demand and supply forecasting (internal and external supply).
4. Action Plan:-
Action
plan is known as implementation plan. It is the execution of HRP and
objectives. The major activities required for the implementation of HRP are
recruitment, selection, socialization, training, development, transfer,
promotion etc.
5. Control and Evaluation:-
Once
HRP is executed, it is important to monitor and evaluate in order to know how
the HRP matches human resource objectives. The best way to monitor and evaluate
the effect of human resource planning (HRP) on human resource manager is to
develop certain indicators. The result of evaluation is feed-back to the human
resource managers.
Assessing
Current Human Resources:-
1. Human Resource Inventory:-
It is
also called skilled inventory. A human resource inventory consists of up to
date information about the qualification and experience of selected categories
of employees. The information available from the HR inventory includes personal
data, educational qualification, result of performance appraisal, training and
career goals. This information facilitates the assessment of current skilled
manpower, which is useful to determine the need of special type of manpower in
the organization. Such inventory is useful at the time of promotion, management,
planning and reporting, compensation planning, career planning etc.
2. Human Resource Information
System (HRIS):-
HRIS
has been implemented to assist HR inventory. This is designed to provide quick
information about the employees’ working in the organization. HRIS include
information on all employees (local and across the border) currently on the
organization and provide computerized information about the position and skill
available. HRIS consists the following categories:-
Group
: 1
|
Basic-Non-Confidential
Information:
-Employee’s Name
-Organization’s Name
-Work Location
-Work Phone Number
|
Group
: 2
|
General
Non-confidential Information:
-Information in the
previous category.
-Social insurance /
Security Number.
-Other organizational
information.
-Position related
informational (code, title, effective date).
|
Group
: 3
|
General Information
with Salary:
-Information in the
previous categories.
-Current salary,
effective date, amount of last change, reason of last change.
|
Group
: 4
|
Confidential Information
with Salary:
-Information in the
previous categories.
-Position ranking.
-Gender or minority
status if needed for tracking employment equity programs.
-Educational data.
|
Group
: 5
|
Extended Confidential
Information with Salary:
-Bonus Information.
-Projected salary
increase information.
-Performance evaluation
Information.
|
3. Succession Planning:-
Succession
Planning.
|
||
Vacancy
on Managerial Post.
|
||
Vacancy
within one year.
|
Vacancy
within 2-5 years.
|
Vacancy
beyond 5 years.
|
Ready
Now.
|
Make short-term
planning to fulfill the vacancy.
|
Make
long-term planning to fulfill the vacancy.
|
In the
post, organizational success was defined in terms of market growth,
diversification and financial resources. HRP and succession of managers were
based on intuition. These have affected the timely supply of qualified manpower
and many organizations have ultimately become less competitive. In this
competition age, it is very important to determine the right number of people
at the right time, at the right place and position.
Widely
known as succession planning or management succession, it ensures that the
organization has individual ready to move in to position of higher
responsibility. This is a special time of planning used to forecast potential managers
for future promotion in the higher management level. Whereas a replacement
chart shows the potential vacancy to be filled. Succession planning ensures
development of managers to take position as required by the chart. Since many
companies feel their internal vacancies from within the organization. Such a
selection is often made on the basis of performance appraisal. However,
promotion, transfer, training and development are also the important part of
succession planning.
4. Job Analysis:-
Job analysis
is the process of defining a job in terms of task or behaviour and specifying
the education, training, and responsibilities needed to perform the job
effectively. The information gathered fro the job analysis has many uses. The
main HR areas were these information can be used are job description, job
specification, recruitment, selection, performance appraisal, career
development etc. for the purpose of manpower planning, the use of job analysis
is specially to prepare job description, specification and job evaluation.
Forecasting
Demand and Supply of Human Resource:
Delphi Technique. Simple
linear Regression
Normal
Grouping
Technique Multiple
linear Regression
Managerial
Estimate. Time
Series Analysis
The
estimation of future manpower depends up on the strategies, plan and future
organizational activities of an organization. The selection of a particular
method of demand forecasting is largely determined by the time frame and
information gathered. The popular demand forecasting techniques are as
follows:-
1. Judgmental Forecast:
According
to this technique, managerial level employees are consulted in order to make HR
demand. In this technique, managerial level employees as well as HR manager are
consulted before making estimation of HR demand. This technique is very useful
for the prediction of HR demand because, managerial employees have more
knowledge about the staff.
Ø Delphi Technique(1940):-
This is
the most frequently used to predict the demand for manpower in an organization
based on the possible future developed by the Rand Corporation in the late
1940s, this technique is useful to accumulate expert advice on future HR
demand.
Using
this technique to forecast manpower demand, experts work independently and
avoid face to face discussion. An intermediary establishes contact with experts
and takes their opinion. The main duty of the intermediary is to analyze the
information and provide feedback to them.
Ø Normal Grouping
Technique:-
This is
a team decision making process where the members independently write down their
ideas described and clarify them to the group. After that, they independently
rank on them. The techniques generally use to identify organizational problems
and solution to the problems.
In
order to forecast the HR demand, team members will sit large then around a
conference table and independently list their ideas about future demand of
human resources on a proper. After 10-20 minutes. They discuss in the group and
express their individual views. The final forecasting is made by ranking or
voting.
Ø Managerial Estimation:-
According
to this technique, managerial level employees are consulted in order to make HR
demand. In this technique, managerial level employees as well as HR manager are
consulted before making estimation of HR demand. This technique is very useful
for the prediction of HR demand because, managerial employees have more
knowledge about staffs.
2. Statistical Technique:
Statistical
technique uses statistical tools like simple linear regression, multiple linear
regression, time series etc. in order to predict the future HR demand. These
techniques are as follows:-
Ø Simple Linear Regression:
In this
technique, two variables are considered for the estimation of future HR. the
factors may be age, salary, production level, investment etc. in this technique
instead of ‘X’ & ‘Y’, other factors are considered.
Ø Multiple Linear
Regression:
The
difference between simple and multiple linear regression is that multiple
linear regression considers many variables. In this technique, instead of two
variables, many variables related to employees like, age, salary, capital,
investment and others are considered for HR demand.
Ø Time Series:
In this
technique, time is considered for the prediction of HR. in this technique, the
statistical tool called time series is considered. It depends up on the
increasing and decreasing trend of employees in the organization. A time series
figure is used to estimate future number of employees.
Forecasting
Human Resource Supply:
Once
the number of manpower required for the future is estimated, the next important
task is to ensure the supply of manpower at the right time, at the right place,
and the right number. Supply forecasting helps in this purpose. Internal supply
of manpower and external supply of manpower is important for the organization.
The forecasting of HR supply are as follows:-
1. Judgmental Technique:
According
to this technique, internal and external supply of manpower is based on
individual or group judgment. The popular techniques are as follows:
Ø Replacement Planning:
Mr. A
|
*
|
Mr. B
|
*
|
Mr. C
|
*
|
Mr. D
|
?
|
Mr. E
|
#
|
Mr. F
|
*
|
Mr. G
|
#
|
Mr. H
|
*
|
Mr. I
|
*
|
Mr. J
|
*
|
Mr. K
|
#
|
Mr. L
|
?
|
Present Performance
|
Promotional
Potential
|
||
Detail
|
Symbol
|
Detail
|
Symbol
|
Outstanding
|
* #
|
Ready Now
|
#
|
Satisfactory
|
* *
|
Need Further
Training
|
*
|
Need Improvement
|
* ?
|
Questionable.
|
?
|
Human
Resource Planning in Nepal:
1. Poor
Tradition of Human Resource Planning:
Nepal has
a poor tradition of human resource planning. The Nepalese managers’ trend to
regard human resource planning as an area of low priority because of this,
Nepalese organization lacks right numbers and kinds of people at the right
place and at the right time.
2. Lack
of Assessment of Current Human Resource:
Most
Nepalese organizations lack up-to-date human resource inventory which describes
the skills current available. They also lack effective human resource data base
information.
3.
Missing Demand Forecast:
Nepalese
organization lack proper demand forecast in terms of number and skills of
people required. Business organizations relate revenue forecast which serve as
the basis for the forecast of human resource demand.
4.
Missing Supply Forecast:
Nepalese
organization lack proper supply forecast of human resource from inside and
outside sources. Promotion and transfer are not planned in advance. Given the
professionals and skilled technicians are suffering from unemployment.
5. Mismatch of Demand and
Supply:
Nepalese
organizations do not proper attention to matching demand and supply forecast to
determine shortage and surplus. Succession planning is not done by Nepalese
manager.
6. Short-term Horizon:
Human
resource planning in Nepal has generally one year horizon strategic
planning is very much lacking. Implementation of human resource planning is not
effective.
7. Over Staffing and Under
Staffing:
Most
government agencies and public enterprises in Nepal suffer from over
staffing. The number one priority of Nepalese politician is not done by
Nepalese managers.
8. Private Sector
Performance:
The
family owned and managed private sector organizations do not bother about human
resource planning. They prefer to hire relatives, friends and “near and dear”
CHAPTER : 3
JOB DESIGN AND ANALYSIS:
Meaning of
Job:
According
to McCormick, “a job is a group of position which are identical with respect to
their major and significant task and sufficiently alike to justify their being
covered by a single analysis. There may be one or more person employed in a
job.”
From
the above definition, it is clear that job refers to the work content performed
by a group of people with similar work, such as title described by the title
“section officer” or “police officer” when the job of a section officer is
analyzed, it sufficiently represent job of many other section officer too.
Meaning of
Task:
A task
is the collection of activities that are directed towards the achievement of
specific objectives. It is considered as to be a describe unit of work
performed by an individual. For example, the task of a police officer is to
talk with political leaders to settle political disturbance in an area.
Position:
According
to McCormick, “A position consists of the tasks and duties for any individual.
A position exists, whether occupied or vacant.”
It
refers to a set of duties, tasks, activities and elements to be performed by a
single worker. It means each employed person has a position rather than a job.
For example, a position of a police officer is “Ram Sharma, sub-inspector,
kaski district police officer.”
Occupation:
According
to McCormick, “the term occupation refers to a job of general class, an across
the board basis, without organizational line.”
Some
examples of occupation categories are accountant, engineer, doctor etc. This
occupation also clearly indicate what a person expertise lies on him.
Concept
of Job Design:
Job
design specifies the content of job and the method of doing the job. It is the
process of determining specific task to be included in a job and the method of
performing those tasks.
Job
design integrates job content and method of doing the job in a way that meet
the need of the employer and employees. The key to successful job design lies
in balancing the need of the organization and employees.
>>According to Decenzo and Robbins, “Job
design is the way in which, job tasks are organized in to a unique of work.”
Job
design involves mainly three steps:-
Ø Specification of
individual task.
Ø Combination of task in to
jobs that can be assigned to individual or group.
Ø Specification of method
of performing each task.
Job
design affects productivity, cost, quality and cost-effectiveness of the
organization. It also affects the motivation and job satisfaction of employees.
Labor relations are affected by job design.
No comments:
Post a Comment