What is HRM?
o The process of acquiring, retaining, terminating, developing, and properly using the human resources (people) in an organization.
How HRM works?
How HRM Works:
o Developing human resources involves training, educating, appraising and generally preparing personnel for present or future jobs. HRM involves the following tasks:
n Human Resources Planning, Recruitment and Selection
n Training and Development
n Compensation, Benefits and Resources
n Labor Relations.
Human Resources Planning:
o Planning: The steps taken in estimating the size and make up of the future work force. This process helps the firm acquire the right number and kinds of people when they are needed.
Recruitment:
o Recruitment: Steps taken to staff an organization with the best-qualified people. In order to complete recruiting process, first one must understand about jobs and it is called job analysis.
Job Analysis:
o Job Analysis: The process of determining the tasks that make up a job and the knowledge, skills, and abilities (KSAs) needed to perform the job. E.g. the BUS101 course instructor needs to have minimum basic knowledge of all business subjects and needs the ability to communicate that knowledge in easy understandable terms to students.
o Job Description: A statement that furnishes information about a job’s duties, technology, conditions and hazards, based on data from job analysis. Such as activities, condition etc. (Lecturing, question preparation, admission test duties etc.)
o Job Specification (Job Requirements): A statement of the human qualifications needed to perform a job, derived from the job analysis. Such as, education, qualifications, experiences. E.g. all qualifications needed for the post of a marketing manager.
Recruitment Sources:
o Internal sources: Present employees, friends of employees, former employees and previous applicants. e.g., recruiting full time faculties from the pool of adjunct faculties; Or marketing manager from among the brand managers.
o External sources: Blind Advertisement, newspaper, trade journals, magazines and Internet Job sites.
o Also, through university career centres which (e.g. placement office of any university) work as a source for recruitment in the many countries. Now a day in Private University of Bangladesh has introduced this technique. Example: EWU, aiub, du, has its career development center etc; NSU has its placement office.
o There are also many recruiting agencies.
Selection:
o Selection: A series of steps that starts with the initial screening and ends with a hiring decision.
The steps are as follows:
 |
o
|
o Receiving of application
o 
Initial screening or short listing the applicants
Initial screening or short listing the applicantso
|
o Oral test or Viva voce
o Physical check up/ medical checkup (HIV, drug)
o Reference check
o Decision to hire/ Job offer/ Appointment letter
o Joining letter / acceptance of job letter
Training and Development:
o A continual process of helping employees to perform at a high level.
o Training and Development programs include orientation activities that inform employees of policies and procedures, educate them in job skills, and develop them for future advancement.
o Orientation: Most large companies have a formal orientation program for new employees. An orientation program provides the information about working hours, pay, parking, rules, facilities and so on.
o Before a training program can be developed, problem areas must be pin-pointed. Once training needs have been identified, objectives need to be stated in writing. They provide a framework for the program. Objectives need to be concise, accurate, meaningful, and challenging.
There are usually two major categories of objectives Skill and Knowledge.
n Skill objectives focus on developing physical abilities.
n Knowledge objectives are concerned with understanding, attitudes, and concepts.
To be effective, a training program must accomplish a number of objectives:
n It must be based on both organizational and individual needs; training for training’s sake is not the objective.
n The objectives of training should spell out what problems will be solved.
n All training should be based on sound theories of learning. This is the major reason why training and management development are not for amateurs.
n A training program must be evaluated to determine whether it is working.
There are 3 methods widely used for training purpose.
o On the job training: A supervisor or other worker may show a new employee how to perform the job.
o Vestibule training: Training in a exact copy or duplicate of the actual work area.
o Classroom training: Numerous classroom methods are used by many business organizations. E.g. Lecturing or formal organized presentation; Interactive videos (IAV) lecturing is becoming a popular technique.
Management development:
o The process of education and developing selected personnel so that they have the knowledge, skills, attitudes, and understanding needed to manage in future positions.
o Training is generally associated with non-managerial or operating employees; Management Development is associated with managerial personnel.
o Management development programs can be of two types:
n On-the-Job training: includes understudy programs, job rotation, coaching etc.
n Formal Development Program: conducted by training units within organizations or by consultants in universities or specialized training facilities.
Performance Appraisals:
o Training and Development also involve performance appraisal.
o Managers use appraisal programs to communicate expectations and to help subordinates improve personal deficiencies. Most employees want to know how well they are performing, and appraisals provide a basis for reviewing their performance. E.g. Employee evaluation by supervisor.
Compensation and Benefits:
o Money is important both economically and psychologically.
o A compensation system has one objective: to create a system of rewards that is equitable to both employer and employee. The system must motivate the employee to work hard and accomplish goals.
o An employer views compensation in terms of cost effectiveness, fairness, and adequacy.
o An employee views compensation in terms of equity, security, motivation and meaningfulness.
Compensation is direct or indirect.
o Direct Compensation: includes base-pay (salary or wage) and performance-based pay (incentives).
n Base Pay (Salary) – on hourly / weekly / monthly / yearly basis for the time at employment.
n Performance-based pay (Incentives) – bonus, production bonus, commission etc.
o Indirect Compensation: includes Benefits and Services, also Federal and State mandated protection programs & private protection programs.
n Benefits – Financial in nature; (such as health insurance, provident fund, pension fund etc).
n Services – Employer supplied programs; (such as, car parks, gymnasiums, housing, transportation, cafeteria, etc.)
n Public Protection programs – include social security benefits, unemployment compensation, and workers’ compensation provided for temporary or permanent disability or disfigurement etc.
n Private Protection Programs – provided by firms but are not required by law; include health care benefits, income after retirement, guaranteed work and pay programs (e.g. paid leave, miscellaneous benefits, golden parachute).
Example of Private Protection Programs (Executive level benefits):
o We can call them special compensation.
o Golden Parachute – An executive termination package that guarantees employment or service pay even when another firm takes over. E.g. merges or acquisitions of a firm.
o Golden Handcuffs – A benefit program that makes it too costly for an executive to leave a company, because of benefits that would be forfeited. E.g. stock options, retirement packages of Microsoft.
0 comments:
Post a Comment