Human Resource Management: An Overview

Human Resource Management (HRM)

• Concerns hiring, motivating, and maintaining people in an organization
• Is a study of activities regarding people working in an organization
• Is a managerial function trying to match an organization's needs to employees' skills

HR Executive

• Is a junior-mid-level professional
• Roles and responsibilities vary based on the organization's size and type
• Manages HR functions and performs administrative tasks
• Oversees recruitment, strategic planning, and HR policies
• Updates HR policies and forecasts recruitment needs

HR Executive Roles

• Recruitment and Selection: Identifying hiring needs and creating job descriptions.
• Job Posting and Advertising: Writing and posting job descriptions to attract candidates.
• Sourcing and Screening Candidates: Finding candidates through various channels.
• Selection Processes: Selecting the most suitable candidate and negotiating compensation.
• Applicant Tracking and Reporting: Maintaining records and preparing reports.
• Employer Branding: Developing a positive employer image.
• Onboarding and Orientation: Facilitating onboarding and conducting induction programs.
• Employee Relations: Addressing queries and promoting a positive culture.
• HR Information Systems: Maintaining HR records and using analytics.
• Internal Compliance: Ensuring recruitment processes comply with legal requirements.

Business Standing

• Is determined by 5 M's: Man, Money, Material, Methods and Machine

Payroll in HR

• It is the system and process by which employees are paid correctly at the right time
• Includes calculating salaries, managing taxes, other charges, and distributing payments.
• Ensures employees receive pay for work, and deductions are handled properly

Importance of Payroll

• Ensures employee satisfaction
• Guarantees legal compliance
• Helps with financial stability
• Allows for record keeping and auditing
• Manages employee benefits and compensation
• Impacts employee trust

Basic Components of Payroll

• Basic Salary: Fixed part of salary based on profile and company structure.
• Allowances and Benefits: Additional payments like housing or medical allowances.
• Bonuses and Incentives: Provided for outstanding performance.
• Tax Deductions: Income tax, professional tax, and social security contributions.
• Overtime and Leave Management: Accounting for overtime hours and leave deductions.
• Net Salary: Final amount deposited after all calculations.

Payroll Processing Steps

• Collect employee data
• Calculate gross pay
• Deduct taxes and contributions
• Apply other deductions
• Calculate net pay
• Payroll distribution
• Maintain payroll records
• Compliance reporting

Types of Payroll Systems

• In-House: Managed by HR or accounting, suitable for small businesses.
• Outsourced: Handled by a third party, saves time but may be costly.
• Online: Cloud-based systems for automation, benefit from automatic tax reporting.
• Manual: Calculating wages manually, labour-intensive and prone to errors.
• ERP: Used by large organizations, integrates payroll with other functions

Data Recording Systems

• Used to capture employee data includes: Personal Information, Demographic Information, Job-Related Data, Compensation and Benefits Data, Attendance and Time Tracking, Employee Engagement and Satisfaction, Educational and Professional Background, Emergency Contact Information, Legal and Compliance Documents, Performance Metrics and Goals, Training and Development, Exit and Termination Records, and Recruitment Metrics

Data Recording Methods

• Data can be manually recorded in physical registers and files
• Processes involved are Data Collection, Data Entry, Data Organization, Record Maintenance, Record Security, and Retrieval of Information

Methods of Taking Attendance

• Biometric App Login
• Face Recognition
• Geofence-enabled Attendance
• Geocoded Attendance Marking
• PIN System
• Internet-based System
• Location-based Visual Verification
• RFID (Radio-Frequency Identification)

Overtime

• Happens when policies ensure remuneration for extra hours put into work
• Policies tackle overtime abuse, loss of productivity, and health/safety risks
• Must be pre-approved by supervisors

Overtime approval

• Must be sought before working overtime and may require prior notice.

Unauthorized Overtime

• Results in disciplinary actions such as prolonged probation or termination

Leave Types

• Privilege Leave (PL) or Earned Leave (EL): Paid leave after a specific tenure.
• Casual Leave (CL): Paid leave for short-term, urgent personal needs.
• Sick Leave (SL) or Medical Leave: Paid leave for illness or injury.
• Maternity Leave (ML): Paid time off for pregnant women or new mothers.
• Compensatory Off (Comp-off): Leave for working on a holiday or weekend.
• Marriage Leave: Paid or unpaid leave for marriage.
• Paternity Leave: Time off for a father.
• Bereavement Leave: Time off after the death of a loved one.
• Loss of Pay (LOP) / Leave Without Pay (LWP): Unpaid leave when available leave is exhausted.

Salary Slip Headers

• Include Company Details, Employee Pay Summary, Earnings, Deductions, Reimbursements and Net Pay

Components of a Salary Slip

• Income statements: Basic salary, HRA, DA, MA, CA, SA, In-hand salary, CTC
• Deductions: Professional tax, EPF, TDS

Statutory Payments and Deductions Rules (India)

• Provident Fund (PF): 12% contribution by both employee and employer.
• Employees' State Insurance (ESI): Contributions by employer and employee for social security and health insurance.
• Professional Tax: State-specific tax based on income.
• Income Tax: Deducted based on income tax slabs.
• Gratuity: Lump sum payment after 5 years of service.

Legislations and Taxation Systems (India)

• Income Tax Act, 1961: Governs taxation of salary and benefits.
• Cost and Works Accountants Act, 1959: Mandates compliance with accounting standards.
• Employees' Provident Funds and Miscellaneous Provisions Act, 1952: Governs the Employees' Provident Fund.
• Employee State Insurance Act, 1948: Provides insurance coverage.
• Payment of Gratuity Act, 1972: Mandates gratuity payments.
• Minimum Wages Act, 1948: Ensures minimum wage requirements.
• Professional Tax: State tax on employees.
• Goods and Services Tax (GST): Implications for certain services or allowances.
• Labor Laws: Such as the Industrial Disputes Act, need to be adhered to