Human resource managemnt

3.1 Human Resources Management (HRM):
Human Resources Management (HRM) is concerned with the people dimension in Management.
Since every Organization consists of people, acquiring their services, developing their skills,
motivating them to high level of performance and ensuring that they continue to maintain their
commitment to the Organization are essential to achieving organizational objectives. Gary
Dassler 1994.
Management and human resource management are one and the same. They should never be
separated. Management is personnel administration. Management has the three jobs, two of
which are directly related to personnel managing, a business, managing managers and managing
workers and work. The word management has three syllables Manage-Men-T. If T is taken for
tact, then etymologically management means how to manage- men with tact. Management is the
process of efficiently getting things done with and through other people. HRM deals with the
design of formal systems in an organization to ensure the effective and efficient use of human
talents to accomplish organizational goals.
It includes the recruitment, selection and socialization of employees. HR planning, managers
attempt to anticipate forces that will influence the future supply of demand for employees.
It includes the recruitment, selection and socialization of employees. HR planning, managers
attempt to anticipate forces that will influence the future supply of demand for employees.
The responsibility for human resource management activities rests with each manager. If
managers throughout the organization do not accept their responsibility, then human resources
activities may be done only partially or not at all. It is concerned with managing people at work.
It covers all types of personnel. It is a continuous function
It draws on a number of related disciplines, such as industrial psychology, Sociology, Social
Psychology, Anthropology and Economics. The function of HRM is advisory in nature. In
management terminology, it is a staff function. The personnel manager advises the operating
departments on matters relating to personnel. He does not issue orders to them but gives them
advice

3.1.1 HR job duties:
 Recruiters: Search or qualified job applicants
 Equal employment opportunity (EEO) coordinators: Investigate and resolve EEO
grievances, examine organizational practices for potential violations, and compile and
submit EEO report.
 Job analysts: Collect and examine information about jobs to prepare job descriptions.
 Compensation managers: Develop compensation plans and handle the employee
benefits program.
 Training specialists: Plan, organize, and direct training activities.
 Labor relation specialist: Advise management on all aspects of union-management
relations.
3.1.2 HRM Responsibilities:
The direct handling of people has always been an integral part of every line manager’s
responsibility, from president down to the lowest- level supervisor. Supervisor has some
responsibility for effective human resource management under the following general
handing.
 Place the right person on the right job.
 Starting new employees in the organization.
 Training employees for jobs that new to them
 Improving the job performance of each person.
 Interpreting the company‘s policies and procedures.
 Controlling labor costs.
 Developing the abilities of each person.
 Creating and maintaining department morale.
 Protecting employee’s health and physical condition

3.2 Scope of Human Resource Management:
1. Personnel Aspect Human Resource Planning – It is the process by which the organization
identifies the number of jobs vacant.
Job Analysis and Job Design – Job analysis is the systematic process for gathering,
documenting, and analyzing data about the work required for a job. Job analysis is the procedure
for identifying those duties or behavior that defines a job.
Recruitment and Selection – Recruitment is the process of preparing advertisements on the
basis of information collected from job analysis and publishing it in newspaper. Selection is the
process of choosing the best candidate among the candidates applied for the job.
Orientation and Induction – Making the selected candidate informed about the organization’s
background, culture, values, and work ethics.
Training and Development – Training is provided to both new and existing employees to
improve their performance.
Performance Appraisal – Performance check is done of every employee by Human Resource
Management. Promotions, transfers, incentives, and salary increments are decided on the basis of
employee performance appraisal.
Compensation Planning and Remuneration – It is the job of Human Resource Management to
plan compensation and remunerate.
Motivation – Human Resource Management tries to keep employees motivated so that
employees put their maximum efforts in work.
2. Welfare Aspect – Human Resource Management have to follow certain health and safety
regulations for the benefit of employees. It deals with working conditions, and amenities like
canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union
members to avoid strikes or lockouts to ensure smooth functioning of the organization. It also
covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and
dispute settlement.

3.3 Necessity of HRM:
Human Resources Management (HRM) is responsible for the people dimension of the
organization. It is responsible for getting competent people, training them, getting them to
perform at high effort levels, and providing mechanisms to ensure that these employees maintain
their productive affiliation with the organizations. Strategic Human Resource Management
(HRM) is very important in the context of Globalization & also in the service organizations.
These importances are shown below:
a) Necessity of HRM in the context of Globalization :
In the age of globalization, no organization can ignore the impact of globalization. Even pure
domestic firms face competition with the global firms. If it is the large organization especially
for the multinational enterprises the impact of the globalization is tremendous. Necessities of
SHRM in the context of Globalization are pointed out below:
 Cost effective utilization human resources to obtain & retain competitive advantage in the
global arena
 SHRM links HRM activities with the goals & objective of the organizations. This
facilitates the goal realization.
 Efficiency & effectiveness of the global firms are increased through the implementation
of the SHRM policies
 Recruitment & maintenance effective workforce that right man in the right place at the
right time
 Ensuring effective training system to cope with the rapid technological change
 Hiring qualified workforce so that they can handle any volatile/extra-ordinary
situation
 Through the HR information system SHRM provides information to the other
departments to perform their role
b) Necessity of HRM in the industry especially in the Auto bricks business:
Employees (human resources) directly interact with the customers in the organizations. Auto
bricks do business selling their quality product (shape, perfect size, design, high protection

capacity, less water absorption and less construction cost) like bricks. So especial care & high
vigilance from the part of the employees are required in the organization.
SHRM is required to formulate & implement policies
Highly Skilled, educated, dynamic & smart employees create positive image for the
organization
Applying appropriate training & development system for the human resource
development
It also facilitate in formulating competitive compensation package for the organization
It can design fair & appropriate performance appraisal & promotion system which can be
motivating factors for the employees
Rigid recruitment procedure is required to get qualified employees
Retirement policies can also be helpful to increase the efficiency & effectiveness of the
organization.
3.4 Importance of HRM:
With the increase in the size and complexity of business organizations, the most important, factor
in business. Business needs people as owners, employees, and consumers. Organizations need
people to make them operate. Business may be operated differently and the objectives of
business may differ, but the universal element in all business activities is people. An organization
is nothing without human resources. Any human organization a factory, a hospital or and
association consists of people working together. According to economists, the factors of
production are land, labor, capital and entrepreneurship. Of all the resources, the most important
one is human resource because human being plays a dual role- as resource, as well as a motive
force for all other resources by manipulating them by way of developing, utilizing,
commanding and controlling. It is the most important of all other resources. This is because
manpower is that resource through which management wants to control and direct all other
resources like machines, materials, money and others. An organization is nothing without people

3.5 Human resources management practices:
It has already been revealed by a large number of researchers that human resources management
practices play a significant role in organization to increase employees’ job satisfaction that in
turn increases work performance and help organization to achieve its goal successfully.
3.6 Human Resource Planning:
Human resource planning involves getting the right number of qualified people into the right
place at the right time in order to achieve organizational goal.
Objective:
 Maintain required levels of skill and competency
 Ensure adequate supply of manpower as and when required.
 Ensure proper use of existing human
 Forecast future requirements of human resources with different levels of skills.
 Assess surplus or shortage, if any, of human resources available over a specified period
of time.

3.7 Recruitment and Selection:
The recruitment (also recruitment and staffing) belongs to value added HR Processes. The
recruitment is about the ability of the organization to source new employees, keep the
organization operating and improving the quality of the human capital employed in the company.
The quality of the recruitment process is the main driver for the satisfaction of managers with the
all kind of services provided by Human Resources.
The main goal of the recruitment is about finding the best recruitment sources, hiring the best
talents from the job market and keeping the organization competitive on the job market. The
recruitment process is about managing high volumes of job resumes and the ability to choose the
right candidates and pushing them quickly through the organization. The recruitment process
usually needs a strong support by the dedicated recruitment software solution. It can be provided
externally, or the software can be run internally. Many vendors provide the recruitment
software solution, but the organization has to choose carefully the right solution to meet its
needs.

3.7.1 Recruitment process
The recruitment process needs a complete process description. It is not possible to solve the job
candidates individually. HR Recruiters have to follow the process, and they have to keep the
candidates flowing to right managers to achieve the consensus, and decision about the hire
quickly. The described process helps to set and achieve the right limits. The performance of the
recruitment process has to be measured, analyzed, and new, innovative recruitment solutions
have to be implemented.
The recruitment is the expensive HR Process, and it eats a large proportion of the HR budget.
The recruitment is about time to hire and the cost of hiring in most organizations. The HR is
responsible for the proper management of the process to improve the performance of the
recruitment process to keep the managers satisfied.
The competitive HR management always starts with the competitive recruitment process. The
organization builds the competitive advantage with its employees. The recruitment process has to
determine the best sources on the job market. The HR Recruiters have to utilize the recruitment
sources and managers have to make the right and quick hiring decisions. This is the basic set-up
of the competitive recruitment process.

The recruitment is the essential part of building the competitive advantage. HR has to define
the needed profiles (skills and competencies). The profile of the ideal candidate has to be aligned
with the corporate culture and corporate values. The profile has to support enhancing the
organizational capability. The recruitment is one of the best opportunities to enrich the
organization, and it is the way to build the learning organization. HR Recruiter has to be skilled
to identify the right profile of the best candidate, and they have to be promoted to managers as
the best hiring option.
3.7.2 Recruitment strategy
The recruitment strategy is a key success factor for the process. It defines the competitive
advantage of the organization on the job market. The company has to choose the right mix of the
recruitment sources, recruitment agencies and recruitment messages. The company has to choose
the target groups, and the underlying analysis has to identify the right ways to reach them.
The recruitment supports the marketing activities of the organization. The hiring of new people
is a strong communication topic for the social media. HR can start building the engaged social
community around its recruitment activities. All marketing specialists should focus on the close
cooperation with Human Resources. The HR Marketing is a strong topic for discussions in the
company. The HR Marketing can build a strong competitive advantage.
The recruitment is the excellent opportunity for the internal promotions and talent
identification. The HR Recruiter interviews many internal candidates and he or she can pass
information to the career development specialists. The recruitment strategy should align the
recruitment function with the career development specialists. The internal recruitment is not the
isolated process. It should move the best talents of the organization to the challenging job
positions. The internal recruitment needs a strong support from the top management. It can be a
conflicting process and it needs clear rules, and procedures defined by Human Resources.
The recruitment process contains many interactions. It is the most difficult HR process with the
value added for the company. The process involves managers, employees, Human Resources,
recruitment agencies and candidates. All participants have the same goal – filling the job
vacancy and they have to cooperate smoothly to reach the overall goal. Many organizations
make a mistake of forgetting the candidate. The candidate makes the final decision. The
company offers the job, but the candidate decides. The recruitment process has to be measured,

and main recruitment KPIs have to set. The unmeasured recruitment process cannot support the
success of HR in the organization.
3.7.3 STEPS IN RECRUITMENT PROCESS :
In the recruitment process there are couple of steps are to be followed:
Written test: The recruitment test is combined of both elaborative and MCQ type. Usually
assign this to some organization. The particular organization does all the thing. In the written test
a person has to obtain a certain marks to pass the exam.
VIVA: The candidate after qualifying written test has to face VIVA test. VIVA usually taken by
the top management of the organization. Only short listed candidate are selected finally for the
job.
The Recruitment Process of the Organization:
Organization
Vacant or new position occur
Perform job analysis and plan recruiting effort
Generate applicant pool via internal or external recruitment methods
Evaluate applicants via selection process
Impress applicants
Make offer

3.7.4 METHOD OF RECRUITMENT
There are two method of recruitment:
1. Internal recruitment
2. External recruitment
INTERNAL RECRUITMENT
Most companies fill vacancies internally whenever possible. A number of internal recruitment
methods are use for different level of jobs. Lower-level jobs such as manual and clerical jobs are
often called nonexempt jobs because their incumbents are not exempt from the minimum wage
and overtime provisions of the Fair Labor Standards Act. These people typically are paid an
hourly wage. In contrast, higher-level administrative, managerial, and professional employees
are paid on a salary basis and are exempt from the overtime provisions of the Fair standard
Labor Act.
EXTERNAL RECRUITMENT:
In addition to looking internally for candidates, it is customary for organizations to open up
recruiting efforts to the external community. Through the recruiting process, the hiring manager
should stay in close touch with the recruiter. The hiring manager should examine resumes or
application that have passed initial screening by the recruiter and should also review some of the
application that the recruiter rejected during the first steps. Such involvement on the part of the
hiring manager allows feedback as to whether or not the recruiter’s decisions are consistent with
the hiring manager’s preferences.
External recruitment methods are often grouped into two classes:
1. Informal and
2. Formal.
INFORMAL METHOD
Informal recruiting methods tap a narrower labor market than formal method. Informal method
includes rehiring former employees or former cooperative education students, hiring people
referred by present employees, and hiring from among those who have applied without being
solicited (such applicants are called walk-ins or gate hires). Employee’s referral, also known as

word-of-mouth advertising, is quick, effective, and usually inexpensive. Because employees
who refer their friends and acquaintance as candidates have their own credibility on the line, they
tend to refer people who are well qualified and well motivated and then to mentor these
individuals once they are hired.
FORMAL METHODS
Formal method of external recruiting entail searching the labor market for candidates who have
no previous connection to the firm. These methods traditionally have included newspaper
advertising, use of employment agencies and executive search firms, and campus recruiting.
Posting jobs ads on the Internet, either on the company’s own site or a commercial job board, has
also become extremely popular in the last few years. Historically, newspaper advertising has
been the most commonly used method of recruiting.
Formal method includes:
 Recruitment Advertising
 Internet Recruiting
 Employment Agencies
 Public Job Service Agencies
 Private, For-profit Agencies
 Unions
 Additional Recruiting Methods
 Campus Recruiting
 Executive Search Firms etc.
3.8 SELECTION:
Selection the right employees are important for an organization. First own performance always
depends in part on subordinates. Employees with the right skills and attributes will do a better
job for the company. Employees without these skills wont perform effectively and as a result the
firm will suffer.

3.8.1 PROCESS OF SELECTION
Selection activities typically follow a standard pattern, beginning with an initial screening
interview and concluding with the final employment decision. The selection process typically
consists of eight steps:
 Initial screening interview
 Completing the application form
 Employment test
 Comprehensive interview
 Background investigation
 A Conditional job offer
 Medical or physical examination
 The permanent job offer.
3.8.2 INITIAL SCREENING
As a culmination of our recruiting efforts, organization should be prepared to initiate a
preliminary review of potential acceptable candidates. This initial screening is, in effect, a two
steps procedure: (1) the screening of inquiries and (2) the provision of screening interviews.
3.8.3 COMPLETION OF THE APPLICATION FORM:
Once the in initial screening has been complicated, applicants are asked to complicate the
organization’s application form. The amount of information required may be only the applicant’s
name, address, telephone number and other information.
3.8.4 EMPLOYMENT TESTS:
Organization historically relied to a considerable extent on intelligence, aptitude, ability and
interest tests to provide major input to the selection process.

3.8.5 THE COMPREHENSIVE INTERVIEW:
The applicant may be interviewed by HRM interviewers, senior manager within the organization,
a potential supervisor, potential colleagues or some or all of these.
3.8.6 BACKGROUND INVESTIGATION:
The next steps in the process are to undertake a background investigation of those applicants
who appear to offer potential as employees. This can include contacting former employers to
confirm the candidate’s work record and to obtain their appraisal of his or her performance,
contacting other job- related and personal references, verifying the educational accomplishments
shown on the application, checking credit reference and criminal records, and even using third
party investigation, to do the background check.
3.9 TRAINING AND DEVELOPMENT
Training is the formal and systematic modification of behavior through learning which occurs as
a result of education, instruction, development and planned experience. It is acquisition of
technology, which permits employees to perform their present jobs to standards. It improves the
human performance on the job, the employee is presently doing or being hired to do.
Development also sometimes distinguished from training, as development defined in terms of
broader capability to take up future work and career opportunities, beyond the competencies
required for a current position. It is concerned more with career growth than immediate
performance. It enables leaders to guide their organization onto new expectations and enable
Workers to create better products, faster services, and more competitive organizations.
Manpower
Training and development are two interrelated processes whose importance cannot be
overemphasized in any discussion of human resource management. It is related to the series of
activities, which an enterprise would need to embark upon to improve the quality of its
managerial capital.

3.9.1 Compensation
Compensation is usually referred to as intangible returns including cash rewards and benefits.
Compensation system is set of mechanisms for distributing both tangible and intangible returns
as part of an employment relationship. It is just the means to attract and retain talented
employees. In today’s competitive labor market, organizations need to fully leverage their human
capital to sustain a competitive position. This requires integrating employee processes,
information and programs with organizational processes and strategies to achieve optimal
organizational results. Thus compensation is any form of payment made to an individual for
services rendered as an employee for an employer. It can be paid as money, a commodity, a
privilege. However, if an employee is to be paid in any form other than money, the employer and
employee must agree before the service is performed. Thus, it can be said that compensation is
the “glue” that binds the employee and the employer together and in the organized sector, this is
further codified in the form of a contract or a mutually binding legal document that spells out
exactly how much should be paid to the employee and the components of the compensation
package.
3.9.2 Performance evaluation, audit and promotion of the staff
Auto bricks sector is very competitive in nature. Usually employees have to frequently move to
positions of greater responsibility within the organization as their experience and performance
improve. A business unit of the Auto bricks is totally performance oriented. Employees of that
units promotes according to their performance. Annual Confidential Report (ACR) was normally
used as an important tool for the evaluation of employees‟ performance, which had a great
impact on their future up-gradation particularly for Manager and upper level. In business unit
variables of performance are the ratio of loan recover, new customer creation etc. Under the
central Auto bricks supervision program, all employees of the Auto bricks would have to come
within the scope of audit.

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