Organisational Behaviour and Human Resource Management Unit 09: HRM

Organisational Behaviour and Human Resource Management UNIT-09 Introduction to HRM and Manpower Planning Author: Dr. Harold Andrew Patrick Semester-01 Master of Business Administration Organisational Behavioral and Human Resource Management UNIT 09 Introduct...

Organisational Behaviour and Human Resource Management UNIT-09 Introduction to HRM and Manpower Planning Author: Dr. Harold Andrew Patrick Semester-01 Master of Business Administration Organisational Behavioral and Human Resource Management UNIT 09 Introduction to HRM and Manpower Planning Names of Sub-Unit Introduction to Human Resource Management (HRM), Human Resource Planning (HRP), Global Human Resource Planning, Job Analysis and Job Evaluation, Features of the Competitive Business Environment, Business Trends in HR Overview The unit will introduce you to Human Resource Management (HRM). The unit will delve into the evolution and importance of HRM. This unit also give insight into Human Resource Planning (HRP) its process and challenges. Learning Objectives In this Unit you will learn:  Explain Human Resource Management (HRM)  Discuss the evolution of HRM  Elucidate on importance of HRM  Describe Human Resource Planning (HRP) @2024 CDOE, JAIN (Deemed -to-be-University) Page | 1  Unit 09: Introduction to HRM and Manpower Planning Learning Outcomes At the end of this Unit you would  Shed light on Human Resource Planning (HRP)  Analyse global Human Resource Planning  Explain human resource forecasting methods  Elucidate on a job analysis and job evaluation Pre-Unit Preparatory Material  https://www.youtube.com/watch?v=jn8tY_R2akM  https://www.youtube.com/watch?v=mErZi1dnGVs @2024 CDOE, JAIN (Deemed -to-be-University) Page | 2 Organisational Behavioral and Human Resource Management Table of Topics 9.1 Introduction 9.2 Introduction to Human Resource Management (HRM) 9.3 Human Resource Planning (HRP) 9.4 Challenges of man power planning in dynamic business Environment 9.5 Global Human Resource Planning 9.6 Human Resource Forecasting Methods 9.7 Job Analysis and Job Evaluation 9.8 Job Description and Job Evaluation 9.9 Features of the Competitive Business Environment 9.10 Quality of Work Life 9.11 Business Trend in HR 9.12 Conclusion @2024 CDOE, JAIN (Deemed -to-be-University) Page | 3  Unit 09: Introduction to HRM and Manpower Planning 9.1 Introduction Human Resource Management (HRM) is the process of obtaining, utilising and developing a satisfied workforce. The success of an organisation depends on the capabilities of its human resources. Unless the organisation gives adequate resources for the development of employees, it would not get the desired output from the personnel. HRM is based on human orientation. It ensures that enough opportunities are given to employees for developing their full potential. An HR manager serves as the head of the HR department and is responsible for performing managerial as well as operative functions. Operative functions of the HR manager include procurement, development, compensation, utilisation and maintenance of human resources. The managerial functions of an HR manager are planning, organising, coordinating and directing other managers and workers through motivation, leadership and effective communication. 9.2 Introduction to Human Resource Management (HRM) Human Resource Management (HRM) refers to a strategic approach of managing an organisation’s people in such a way that they work towards meeting organisational goals and objectives. In other words, HRM can be defined as the art of procuring, developing and maintaining a competent workforce with an aim to achieving organisational goals effectively and efficiently. It involves several activities, such as hiring, selecting, inducting the required number of people, compensating them and framing organisational policies related to training and development programs. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 4 Organisational Behavioral and Human Resource Management According to Edwin Flippo, “Human Resource Management is planning, organising, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are achieved.” Earlier, HRM was only related to processing employee payrolls. However, today, HRM involves motivating employees; resolving conflicts between employees and management, employees and employees; taking care of employee’s welfare, etc. HRM is a continuous process of procuring, developing and maintaining human resources and developing team spirit and team work. To understand the concept of Human Resource Management (HRM), let us first, define the term human resource. Human resource is a group of individuals that forms the workforce of an organisation. It is responsible for performing and executing various operations and functions of an organisation. In today’s competitive business world, an organisation cannot imagine surviving without efficient employees. Thus, human resources have become one of the important assets for organisations. To retain an efficient pool of employees, it is of paramount importance for an organisation to manage its human resource effectively. Inefficient management of human resources may create several difficulties for an organisation like employee dissatisfaction, unclear organisational goals and objectives. 9.2.1 Evolution of HRM HRM refers to the management of people or human resources in an organisation. The concept of HRM emerged from personnel management which is a traditional concept. In personnel management, employees were not considered more valuable than the other resources like machines or tools. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 5  Unit 09: Introduction to HRM and Manpower Planning Before the Industrial Revolution, people were primarily engaged in the agricultural sector. There were very few industrial establishments/factories. Limited people were engaged in the specialised crafts, and information transfer through proper communication channels was also limited. During the Industrial Revolution (1750-1850), the economy shifted from agriculture to industry. There was an increase in communication channels, which resulted in the development of the industrial setup. To eliminate any kind of exploitation of workers, industries set up a new separate department. The role of the newly set up department was to take care of worker’s wages, develop welfare schemes and solve workers- related issues. During this period, the concept of personnel management emerged. After the Industrial Revolution, many scholars did experiments on organisational productivity and released their findings as theories/approaches to management. Frederick W. Taylor, who was the father of scientific management, gave a scientific human resource management approach that includes training of workers, uniformity in wages and work methods for better productivity. 9.2.2 Importance of HRM In today’s competitive and knowledge-based industries, the strategic importance of people is growing. The success of an organisation largely depends on the knowledge, skills and abilities of employees. This is because employees help the organisation in establishing a set of core competencies that distinguish the organisation from its competitors. By ensuring appropriate HR policies and practices are in place, an organisation can attract the best talent in the industry, realise its desired goals and deliver the expected results. The following points explain the importance of HRM: @2024 CDOE, JAIN (Deemed -to-be-University) Page | 6 Organisational Behavioral and Human Resource Management  Helps in accomplishing overall business objectives: Effective HRM practices enable employees to have clarity of their job roles, which can bring out a positive attitude among them towards accomplishing organisational goals and objectives. In this way, it facilitates optimum utilisation of human resources.  Provides growth opportunities to employees: One of the important HRM practices are to evaluate the working capacity and skills of each employee and develop training programmes for upgrading their skills accordingly. This, in turn, makes them ready for future requirements.  Maintains better employees: An organisation with the help of healthy HRM practices can maintain better employer-employee relationships. Good HRM practices reduce conflicts between employees and the employer, and among employees themselves, thus preventing situations of strikes, lockouts, etc.  Encourages teamwork: Proper HRM motivates employees to work harmoniously in a teamand towards attaining a common goal. Teamwork brings unity among employees and creates synergy.  Allocates jobs according to skills: Job analysis is one of the important HRM practices wherein particular job duties and requirements and the relative importance of these duties for a given job are identified and determined. This analysis helps in allocating job duties according to the skills of employees, thereby reducing employee turnover rate.  Develops country’s economy: Proper HRM practices lead to an increase in employee productivity, which, in turn, results in higher profits for an organisation. The organisation with a higher profit can contribute more to the economic development of the country. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 7  Unit 09: Introduction to HRM and Manpower Planning 9.2.3 HRM Functions Manpower planning: It involves determining the present and future requirements of human resources in an organisation. Manpower planning is done based on the:  Attrition rate  Sales forecasting  Level of productivity required and the actual level of workers Some of the salient functions of HRM are as follows:  Job analysis: It is a process of collecting and examining information related to job duties and requirements. It also involves identifying the skills and competencies required to perform different jobs in an organisation.  Compensation management: It involves determining the wages and salaries of employees at different levels and positions in an organisation. The wages and salaries of employees are decided based on the skills required for a job, risk factors involved, etc.  Recruitment and selection: The recruitment and selection process involves hiring people to fill vacant job positions in an organisation. Recruitment involves attracting a pool of applicants for a particular job position, while selection is the process of choosing the suitable applicant from that pool. Post-selection activities, such as induction, orientation and training also form part of the recruitment and selection process of an organisation.  Performance appraisal: It is a process of assessing the job performance of employees after a fixed period. It is a continuous process of collecting, analysing and recording information about the worth of an employee to the organisation. The main objective of performance appraisal is to identify the areas of @2024 CDOE, JAIN (Deemed -to-be-University) Page | 8 Organisational Behavioral and Human Resource Management improvement in employees’ job performance and increase the future potential of employees.  Training and development: Training aims at developing skills, knowledge and abilities of both the recruits and existing employees so that they can perform effectively. Training sessions can be carried out for various purposes like the orientation of recruits, the introduction of new technology and processes and communication of job roles.  Employee welfare and motivation: Employee welfare involves all those activities that are directed towards providing different facilities and services to employees apart from wages or salaries. These facilities include better working conditions, industrial harmony, insurance coverage against diseases and accidents, career support, etc. Welfare boosts the morale and motivation level of employees; thereby contributing their best to the organisation.  Employee grievances: Sometimes employees develop a feeling of dissatisfaction or injustice towards their jobs or management policies. Employees may also have grievances from their seniors, colleagues and subordinates. These grievances may convert into disputes if not resolved on time. The HRM function of an organisation focuses on addressing these grievances through face-to-face interactions and counselling sessions. 9.2.4 Forces Changing HRM Organisational change is being transfigured or reframing the way an organisation functions. Organisations are moulding themselves as per the changing business environment, probably to improve productivity, responding to new regulation. The forces changing HRM are as follows: @2024 CDOE, JAIN (Deemed -to-be-University) Page | 9  Unit 09: Introduction to HRM and Manpower Planning  Demographic: The altering business world dynamics demand an organisational change in culture. For instance, Avon established and diversified its business around door-to-door cosmetic sales, with the stay-at-home wife and mother as their primary front-line employee. When more women ventured into the business world with 9-to-5 jobs, Avon had to divert its focus and look out for noviceways to offer its products to their customers.  Society: Changing social trends can motivate organisations to implement change. Consumers are increasingly concerned about the environment, a trend that has prompted fast-food restaurants to replace styrofoam boxes with paper. Cleaning product manufacturers have modified their product formulations to remove phosphorus and other chemicals that are harmful to the environment. Tobacco companies have given in to the changing image of smokers and the dangers of their products, and some have begun to consider e-cigarettes and other alternatives to smoking to continue the business.  Technology: Technological change will continue to shift jobs from some occupations to others while continuing to increase productivity. For example, telecommunications and the Internet have made it relatively easy for many people to work from home. Computer-aided design/manufacturing of computer-aided robotics as well as robotics continues to increase. To stay abreast and align with the latest technology HRM is also being affected. 9.3 Human Resource Planning (HRP) Human Resource Planning (HRP) is a systematic process of determining an organisation’s future workforce requirements. These requirements include the number of people needed to perform a particular job, the skills and abilities of potential employees, etc. The main objectives of HRP are to fill vacant job @2024 CDOE, JAIN (Deemed -to-be-University) Page | 10 Organisational Behavioral and Human Resource Management positions, meet organisational goals in the given time and achieve the desired level of performance. Moreover, HRP enables an organisation to ensure that the right people with the right skills are placed at the right job positions. The term planning can be defined as a process of finding out a course of action for the accomplishment of organisational goals and objectives. Planning is the first and foremost function of any organisation without which all organisational activities would become meaningless. The process of planning starts with taking into consideration the current operations of an organisation and finding out the areas of improvement for the upcoming year. In a nutshell, planning can be defined as a process wherein an organisation envisions the results that it wants to achieve in the future and identifies the way to achieve it. In the previous chapter, you have studied that an organisation cannot imagine being successful without efficient human resource. Therefore, an organisation needs to plan its human resource in accordance with organisational goals and objectives. HRP can be defined as a process of estimating future human resource requirements and ensuring that the organisation’s objectives are met by having the right people in the right job at the right time. HRP has been defined differently by different management experts. 9.3.1 Process of HRP The HRP process attempts to assess manpower requirements to perform different organisational activities for a future period. The process differs across organisations depending on their requirements, budget, size of the business, etc. However, certain steps in the HRP process are common in every organisation. The process of HRP is as follows: @2024 CDOE, JAIN (Deemed -to-be-University) Page | 11  Unit 09: Introduction to HRM and Manpower Planning 1. Reviewing business goals: Before planning human resource requirements, HR personnel studies organisational goals and objectives. Based on the study, the personnel prepare a list of HR activities and analyse jobs to be performed so that these goals and objectives can be met within the stipulated time. 2. Scanning the environment: In this step, the HR personnel determine the number of people required to meet organisational goals and objectives. For this, the personnel identify the gap between the available human resource and the actual requirements of human resource (generally called HR demand forecasting and supply). To determine human resource requirements, the HR personnel considers various factors, such as knowledge base and skills required, number of vacancies and eligibility. To forecast HR demand and supply, the HR personnel need to scan the internal and external business environment. 3. Balancing manpower demand and supply: This is one of the most important steps of the HRP process. This step involves bringing manpower demand and supply to an equilibrium position. This is done to solve situations, such as human resource shortage and surplus. In case of shortage, the HRpersonnel takes various actions, such as new hiring, promotions, overtime and training to improve quality. On the other hand, in the case of overstaffing or manpower surplus, the personnel generally take measures like layoffs, termination and voluntary retirement. 4. Implementing and monitoring the HR plan: After equalising demand and supply, the HR plan is to be taken into action. HR activities required for the execution of the HR plan include recruitment, selection, placement, training and development, etc. After the plan is executed well, the HR personnel need to evaluate whether the HR plan is meeting organisational goals and objectives. In the case of deviations, necessary corrective actions are taken by @2024 CDOE, JAIN (Deemed -to-be-University) Page | 12 Organisational Behavioral and Human Resource Management the HR personnel. Finally, all results of HRP are recorded for future references. 9.3.2 HRP Models The existing job design and analysis may thoroughly be reviewed keeping in view the future capabilities, knowledge and skills of present employees. The job generally should be designed and analysed reflecting the future human resources and based on future organisational plans. The factors for manpower requirements on the demand side can be analysed by making demand forecasting. Some of the HRP models are as follows:  Managerial judgement: This method includes a bottom-up approach and top-down approach. When the bottom-up approach is used to forecast the requirement of human resource, line managers send their workforce requirement to the top management. Thereafter, the top management predicts the overall organisation’s requirement. In the case of top-down approach, top management predicts the workforce requirement of departments and asks departmental heads to review and approve.  Work-study method: This method is used in the organisation where it is easy to estimate the workload. The manager evaluates the total production and jobs or activities for future and converts this estimate into workman- hours needed to produce per unit after taking into account the capacity of the workforce.  Ratio trend analysis: This method of predicting human resource requirement helps estimate the ratio of production level and number of employees available to do the work. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 13  Unit 09: Introduction to HRM and Manpower Planning  Econometrics: This is a statistical and mathematical forecasting method wherein the relationship is established between dependent (human resource) and independent (sales, production, workload, etc.) variables.  Delphi technique: This method uses questionnaires which are sent to the experts for gathering opinions regarding human resource requirement. 9.3.3 Relationship of HRP with other HR Functions HRP is the first step in all HRM functions. Earlier, HRM was limited to the selection and recruitment of employees. However, the scope of HRM nowadays has broadened to all activities of employees’ working life starting from the time they enter in the organisation till their exit. The relationship of HRP with other HR functions is as follows:  Human resource planning: Human resource planning is a systematic process of determining the requirement of the workforce in an organisation. To put it simply, human resource planning prepares human inventory for an organisation beforehand so that organisational operations can be carried out without any hindrance.  Job design: It involves defining the content and tasks of a particular job in an organisation. Job design consists of two main activities, namely job description and job specification. A job description defines the roles and responsibilities of an employee for the job assigned to him/her in the organisation. On the other hand, job specification lists the necessary qualifications, skills and experience required by the employee to perform that job.  Selection and staffing: It involve the recruitment and selection of employees for particular job positions. For this, the skills and competencies of candidates are matched with that of organisational requirements. Only @2024 CDOE, JAIN (Deemed -to-be-University) Page | 14 Organisational Behavioral and Human Resource Management those candidates are selected who best match the requirements of the organisation. 9.3.4 Challenges in HRP HRP barriers are the obstacles or hurdles that an organisation faces while performing HRP. Some of these barriers are explained as follows:  Lack of management support: Sometimes the top management has a notion that HRP is a time- consuming and unimportant process because an organisation can arrange human resource whenever it requires by offering benefits and incentives.  Wrong forecast by HR professionals: There is always a scope of human error in scanning the business environment and analysing human resource requirements. Therefore, the success of HRP is not guaranteed in one go. HRP must be modified from time to time for better results.  Resistance from employees: The trade union and workforce of the organisation sometimes resist HRP. Employees think that HRP increases the workload and, at the same time, retrenchment and layoffs will take place.  Expensive and time-taking process: The HRP process is expensive and time-taking; thus, many organisations resist it because of the increase in the cost of firing and hiring new human resources.  Uncertainties: The HRP does not guarantee success because of uncertainties, like trade cycles, changes in technology and market fluctuations. For an organisation, it is not safe to only relyupon the forecast of human resources especially when there are rapid changes in the business environment.  Lack of sufficient information: The HRP is ineffective when it is done from limited information. Most organisations do not have a good Human @2024 CDOE, JAIN (Deemed -to-be-University) Page | 15  Unit 09: Introduction to HRM and Manpower Planning Resource Information System (HRIS), which, in turn, results in a lack of reliable information. 9.4 Challenges of man power planning in dynamic business Environment Manpower planning, also known as workforce planning, involves anticipating an organization's future staffing needs and ensuring it has the right people with the right skills at the right time. In a dynamic business environment, several challenges arise in the process of manpower planning. Here are some of the challenges along with real-time reasons: 1. Rapid Technological Changes: Technological advancements are occurring at an unprecedented pace, leading to evolving skill requirements. In industries such as IT, artificial intelligence, and healthcare, emerging technologies demand a workforce with updated skills. Manpower planning must adapt to these changes to ensure the organization remains competitive. 2. Globalization: Organizations are increasingly operating on a global scale, impacting workforce demographics and skill requirements. Companies expanding internationally may face challenges in understanding local labor markets, legal requirements, and cultural differences. Manpower planning needs to account for these global complexities. 3. Demographic Shifts: @2024 CDOE, JAIN (Deemed -to-be-University) Page | 16 Organisational Behavioral and Human Resource Management Aging populations in many regions can result in skill shortages and succession planning difficulties. In sectors like healthcare and manufacturing, where specialized skills are crucial, an aging workforce can create talent shortages. Manpower planning must address succession planning and knowledge transfer. 4. Changing Workforce Expectations: Younger generations entering the workforce often have different expectations regarding work-life balance, career development, and flexibility. The rise of the gig economy and a preference for flexible work arrangements impact traditional manpower planning. Organizations need to adjust strategies to attract and retain talent. 5. Economic Uncertainty: Economic fluctuations and uncertainties can impact an organization's ability to hire and retain employees. Economic downturns, such as those experienced during global crises, may lead to budget constraints and layoffs. Manpower planning becomes challenging as organizations need to balance short-term cost-cutting with long-term talent needs. 6. Skills Mismatch: There may be a misalignment between the skills employees possess and the skills demanded by evolving job roles. Industries like cybersecurity or data science often face a shortage of qualified professionals. Manpower planning must identify skill gaps and implement strategies for upskilling or hiring external talent. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 17  Unit 09: Introduction to HRM and Manpower Planning 7. Changing Regulatory Environment: Shifting labor laws, immigration policies, and other regulatory changes can impact workforce planning. Changes in immigration policies or new regulations affecting employment contracts can influence the availability of talent. Manpower planning needs to stay abreast of these regulatory shifts. 9.5 Global Human Resource Planning Human resource planning provides the essential link between MNC strategy and people- who make strategy work- including outsourced workers. It is an integral part of the strategic management process both in terms of strategy formulation and strategy implementation. It includes scanning the environment for opportunities and threats and taking an inventory assessment of human capability. Global HR planning should be responsive to both the short-term and long-term needs and plans of the organisation as well as its worldwide operations.  Going Global The world is changing. Economic activity is shifting from developed to developing countries, with high growth in countries, such as China, Ethiopia and Mozambique. As companies look to expand into these high-growth markets, HR staff have the task of planning for (and managing) aglobal workforce. Let’s have a look at the functions that need to be in place for HR to be effectivein planning and employment for an organisation with a global workforce.  Forecasting One of the key elements of workforce planning is forecasting. Workforce forecasting involves two elements: the supply of employees and the demand for employees. To forecast these requires data on a global scale. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 18 Organisational Behavioral and Human Resource Management  The Supply of Employees Learning the demographics of a given country’s workforce will reveal the workforce that is available for work. Such demographics include age, gender and location of people looking for work. Each country will also have statistics on salaries and benefits, as well as employment tenure. Understanding a country’s educational system can give the HR team some idea of the skills and knowledge of the future workforce.  The Demand for Employees The need for employees comes from each branch of an organisation. The likely need for new employees can be forecast using information from performance appraisals, training and development needs, the career plans and level of staff turnover in each branch. A high level of staff turnover in a branch means a lot of employees are leaving. Whatever be the reason for this, HR should be aware that this particular branch will have higher demands for employees in the future or at least until the cause of the turnover is found. A talent gap analysis takes stock of a company’s staffing needs by identifying the knowledge and skills its current employees have and evaluating whether these are sufficient to meet the company’s future goals. A lack of suitable talent in a particular location may indicate the need to fill a position with staff from another country, which will drive up costs. For example, China has a lack of people with management skills, which has led to Chinese managers who do possess these skills demanding high salaries. HR staff can choose to pay the higher salary or relocate someone from abroad to do the job. Both options are expensive, but in this case, the company has no other choices. A company may also choose to work with an advisor who can predict which areas of the organisation are likely to experience growth or decline, which indicates where employees will be needed. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 19  Unit 09: Introduction to HRM and Manpower Planning 9.6 Human Resource Forecasting Methods Some of the methods to predict human resource requirements are as follows:  Managerial judgement: This method includes a bottom-up approach and a top-down approach. When the bottom-up approach is used to forecast the requirement of human resources, line managers send their workforce requirements to the top management. Thereafter, the top management predicts the overall organisation’s requirements. In the case of the top-down approach, top management predicts the workforce requirement of departments and asks departmental heads to review and approve.  Work-study method: This method is used in the organisation where it is easy to estimate the workload. The manager evaluates the total production and jobs/ activities for the future and converts this estimate into workman-hours needed to produce per unit after taking into account thecapacity of the workforce.  Ratio trend analysis: This method of predicting human resource requirements helps estimate the ratio of production level and the number of employees available to do the work.  Econometrics: This is a statistical and mathematical forecasting method wherein the relationship is established between dependent (human resource) and independent (sales, production, workload, etc.) variables.  Delphi technique: This method uses questionnaires that are sent to the experts for gathering opinions regarding human resource requirement. 9.7 Job Analysis and Job Evaluation A job may be defined as a collection of different tasks, duties and responsibilities to be performed by individuals so that organisational goals can be met within the stipulated time. In the words of Hertbert G Herman, A job is a collection of tasks @2024 CDOE, JAIN (Deemed -to-be-University) Page | 20 Organisational Behavioral and Human Resource Management that can be performed by a single employee to contribute to the production of some product or service provided by the organisation. Each job has certain specifications as per the skills required to perform that job. To assign the right jobs to the right people and maintain a flow of operations, an organisation needs to analyse jobs. Job analysis is a systematic process of identifying and documenting important functions involved in a job, tasks required for the job and skills and abilities needed to perform those tasks. Different management experts have defined job analysis differently. The following are some popular definitions of job analysis: According to Michael J. Jucius, “Job Analysis refers to the process of studying the operations, duties and organisational aspects of jobs to derive specifications or as they are called by some, job descriptions.” As per Dale Yoder, “Job Analysis furnishes the facts which indicate what is being done and what kind of employees are required.” 9.8 Job Description and Job Evaluation The job description is an organised factual statement that is prepared by considering the data gathered in the job analysis process. The following are some popular definitions of the job description:  The job description provides information on the type of job to be performed, the way to perform it and the individual responsible to perform the job. The main aim of the job description is to differentiate a particular job from other jobs in an organisation and decide the outer limits of that job. An organisation needs to prepare a job description to announce a job vacancy.  Job identification is all about collecting a detailed description of a job position along with the skills required for that position. The description of a @2024 CDOE, JAIN (Deemed -to-be-University) Page | 21  Unit 09: Introduction to HRM and Manpower Planning job position may include the title of the job, the department, the location, the immediate supervisor, and so on. In this way, the job identification process lays the foundation for recruitment.  A job summary gives a brief description of the job and tasks to be performed by an individual holding a particular job position. A relationship defines the relationship of a job with another job in a particular department as to whom an individual will report or who will report to him/ her. It outlines the vertical and horizontal relationship of workflow. Defining different duties and responsibilities at different job positions is an important part of the job description; therefore it should be prepared carefully. Clearly defined duties and responsibilities in the job description helps in avoiding ambiguity and confusion at the workplace.  Job evaluation is a systematic process of determining the worth of one job in relation to another job in the organisation. During job evaluation, the relative worth of various jobs is assessed so that wages can be paid depending upon the worth of the job. Job evaluation is a systematic process of determining the worth of one job in relation to another job in the organisation. During job evaluation, the relative worth of various jobs is assessed so that wages can be paid depending upon the worth of the job. To improve the performance and maintain the high level of work efficiency, employee should be compensated with wages and salaries depending upon the job he is performing.  In the absence of job evaluation, high-value jobs may receive less pay than low valued jobs. When the employees come to know about the differences, they may become dissatisfied. Job evaluation is the quantitative measurement of the relative worth of a job to establish wage differentials. It evaluates the job and not the job holder. Evaluating the job holder is the task of performance appraisal. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 22 Organisational Behavioral and Human Resource Management  Wendell French defines Job evaluation as “a process of determining the relative worth of the various jobs within the organisation so that differential wages may be paid to jobs of different worth”. The main characteristics of job evaluation may be summed up as: 1. It is a method with a systematic approach. 2. It is an analysis of the work involved in its starting point. 3. It is an attempt to determine the requirements of the work involved for any incumbent. 4. It is a process by which jobs in an organisation are appraised. 5. It is a process of analysing and describing positions, grouping them, and determiningtheir relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements. 9.9 Features of the Competitive Business Environment A competitive environment is the dynamic external system in which a business competes and functions. The more sellers of a similar product or service, the more competitive the environment in which you compete. Look at fast-food restaurants, there are so many to choose from; the competition is high. However, if you look at airlines servicing, Hawaii, very few fly to the islands. Direct competitors are businesses that are selling the same type of product or service as you. For example, McDonalds is a direct competitor with Burger King. Indirect competitors are businesses that still compete even though they sell a different service or product. There are several examples of competitive business environments. The first that comes to mind is smartphones. How many choices do you have when it comes to @2024 CDOE, JAIN (Deemed -to-be-University) Page | 23  Unit 09: Introduction to HRM and Manpower Planning buying a smartphone? They seemed to have multiplied overnight! That is an extremely competitive business environment. Companies are constantly trying to one-up the latest best-selling model - a good indication of a competitive environment. Additionally, prices of comparable smartphone models are relatively close. Another competitive business environment is the automobile industry. Again, almost every company produces a car in every category. Therefore, when someone is looking at buying a new hybrid sedan or full-size truck, they have so many options to choose from. The automobile industry can be segmented into economical and luxury brands, but when comparing within the same segment, there is significant competition. Competitors are the business rivalry. Competition can be based on the pricing of products or based on competitive advertising. For example, organisations may sponsor some events to promote the sale of different varieties and models of their products. Business formulates strategies after analysing their competitor. 9.9.1 Globalisation The global environment is also important for shaping business activity. In the era of globalisation, the whole world is a market. Business analyses international environment to cope up with the changes. Finns are increasingly extending their sales or manufacturing to new markets abroad, and, for businesses everywhere, the rate of globalisation in the past few years has been phenomenal. Production is becoming globalised too, as manufacturers around the world put manufacturing facilities where they find it most advantageous. This globalisation of markets and manufacturing has vastly increased international competition. Many firms have responded successfully while others have bid farewell to the market. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 24 Organisational Behavioral and Human Resource Management 9.9.2 Technology Systematic application of scientific or other organised knowledge to practical tasks or activities is called technology. As it is changing fast, businessmen should keep a close look at those technological changes for their adaptation in their business activities. Technological changes will continue to shift employment from some occupations to others while continuing to a rise in productivity. For example, telecommunication and the internet have already made it relatively easy for many to work at home. Computer- aided design/ computer-aided manufacturing systems plus robotics continue to increase. Manufacturing advances are eliminating many blue-collar jobs, replacing them with knowledge workers. Similar changes are taking place in office automation, where personal computers, word processing and management information systems continue to change the ways office work is done Labour-intensive jobs are decreasing while technical, managerial, and professional jobs increasing.Jobs and organisational structures are being redesigned, new incentive and compensation plans are being instituted, new job descriptions are written as well as new employee selection, evaluation and training programmes are instituted all with the assistance of HR management. 9.9.3 E-commerce Nowadays, E-commerce is popular as electronic commerce or Internet commerce. There are various services offered online through the Internet network. In E- commerce, business transactions are performed through four models, namely Business-to-Business (B2B), Business-to-Customer (B2C), Customer-to-Customer (C2C), and Customer websites-to-Business (C2B). Various online stores, such as Amazon, Flipkart, Shopify, Myntra, eBay, Quikr and Olx have successfully developed E-commerce websites in which consumers can do shopping at a single click of a button. According to Laudon & Laudon, “E-commerce refers to the process of buying @2024 CDOE, JAIN (Deemed -to-be-University) Page | 25  Unit 09: Introduction to HRM and Manpower Planning and selling goods and services electronically involving transactions using the Internet, networks and other digital technologies.” 9.9.4 Demographic Changes Population size and growth, the life expectancy of the people, rural-urban distribution of population, the technological Demographic variables include sex, age, literacy, mobility, etc. Modem workforce is characterised by literate, women and scheduled caste and scheduled tides workers. Now, workers are called knowledge workers and the organisations wherein they work are called ‘knowledge organisations’. As such, the traditional line of distinction between manual and non-manual workers is getting blurred. Employees are demanding parity in remuneration and responsibility among various categories and levels of employees. 9.9.5 Diversity The current decade is witnessing the changes in the composition of the workforce; specifically, it will continue to become more diverse as women, minority-group members, and older workers are joining the workforce. Changes in racial composition are even more dramatic. The labor force is also getting older. Increased diversity places tremendous demand on the HR management function. As the workforce ages, employers will have to grapple with greater health care costs and higher pension contributions. Some advanced countries are facing a shortage of workers aged 25 to 34, while the career opportunities in management for workers in the 35 to 44 age cohort may be constrained by the abundance of more experienced members of the 45 to 54 age cohort. With more females in the workforce, an upswing in the number of dual-career couples will force more employers to establish child care facilities on or near company @2024 CDOE, JAIN (Deemed -to-be-University) Page | 26 Organisational Behavioral and Human Resource Management premises and to accommodate the travel, scheduling and moving needs of dual- career employees. 9.10 Quality of Work Life Quality of work-life (QWL) refers to the favourableness or unfavourableness of a job environment for the people working in an organisation. The period of scientific management which focused solely on specialisation and efficiency has undergone a revolutionary change. The QWL as a strategy of Human Resource Management has assumed increasing interest and importance. Many other terms have come to be used interchangeably with QWL, such as ‘humanisations of work’, ‘quality of working life’, ‘industrial democracy’ and ‘participative work’. 1. Adequate and Fair Compensation: There are different opinions about adequate compensation. The committee on Fair Wages defined fair wage as”. the wage which is above the minimum wage, but below the living wage.” 2. Safe and Healthy Working Conditions: Most the organisations provide safe and healthy working conditions due to humanitarian requirements and/or legal requirements. These conditions are a matter or enlightened self-interest. 3. Opportunity to Use and Develop Human Capacities: Contrary to the traditional assumptions, QWL is improved… “to the extent that the worker can exercise more control over his or her work, and the degree to which the job embraces and entire meaningful task” … but not a part of it. Further, QWL provides for opportunities like autonomy in work and participation in planning to use human capabilities. 4. Opportunity for Career Growth: Opportunities for promotions are limited in the case of all categories of employees either due to educational barriers or due to limited openings at the higher level. QWL provides the future opportunity for @2024 CDOE, JAIN (Deemed -to-be-University) Page | 27  Unit 09: Introduction to HRM and Manpower Planning continued growth and security by expanding one’s capabilities, knowledge and qualifications. 5. Social Integration in the WorkForce: Social integration in the workforce can be established by creating freedom from prejudice, supporting primary workgroups, a sense of community and inter- personnel openness, legalitarianism and upward mobility. 6. Constitutionalism in the Work Organisation: QWL provides constitutional protection to the employees only to the level of desirability asit hampers workers. It happens because the management’s action is challenged in every action and bureaucratic procedures need to be followed at that level. Constitutional protection is provided to employees on such matters as privacy, free speech, equity and due process. 7. Work and Quality of Life: QWL provides for the balanced relationship among work, non-work and family aspects of life. In other words, family life and social life should not be strained by working hours including overtime work, work during inconvenient hours, business travel, transfers, vacations, etc. 8. Social Relevance of Work: QWL is concerned about the establishment of social relevance to work in a socially beneficial manner. The workers’ self-esteem would be high if their work is useful to society and vice versa is also true. 9.11 Business Trend in HR The top trends of Human Resource Management in 2021 that HR professionals must acquaint themselves with: Promote Diversity and Inclusion Company culture plays a pivotal role to provide a positive experience to its employees. With employees belonging to diverse races, ages, genders, sexual orientations, and cultures, industries ought to make their employees feel that they @2024 CDOE, JAIN (Deemed -to-be-University) Page | 28 Organisational Behavioral and Human Resource Management belong to a community. The Trend of Work From Home (WFH) The Coronavirus pandemic has altered the paradigms of business domains worldwide. This global overnight shift to remote work puts a high value on flexible work arrangements. Four out of five HR managers believe the move to working remotely has caused less employee absenteeism, with employees available online when needed. Cultivate Critical Thinking, Soft Skills, Digital Skills Gone are the days when education and job skills were the only criteria for the recruitment of employees. The 21st century calls for HR personnel to look for a combination of power skills in the workforce. Search for applicants with digital skills like data analytics and digital literacy. Employee Wellness Programs With the fast-paced work culture and competitive race, stress levels of employees have been on the rise. To keep their mental health intact, HR practitioners should advance workplace wellness programs to strengthen employee’s wellbeing to have a work-life balance. Build motivated, engaged and loyal employees who are cared for and nurtured. Some activities to conduct can include healthy lunches, team building activities, site fitness classes, counselling sessions, festive celebrations and weekly interactive video calls. Educate your employees about mental health issues like depression, anxiety and stress and how to handle them. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 29  Unit 09: Introduction to HRM and Manpower Planning Artificial Intelligence (AI) and Machine Learning AI-based algorithms, such as applicant tracking software, combined with an increase in cloud- computing, can assist HR professionals in the recruitment of candidates and streamline workflow. AI tools promote merit-based selection eliminating conscious or unconscious bias. Creativity in Recruitment and Learning Management System (LMS) for Training HR specialists often complain about the challenge of hiring talented employees. They need to adapt to creative ways to select qualified applicants or the positions they need to fill. Apart from AI, talent acquisition teams can manoeuvre headhunting firms or recruitment marketing agencies to find potential candidates. Assimilate learning management systems or tools to facilitate training and workshops to cultivate future talent via the internet. Some LMS include Bridge, GoSkills, Absorb and Moodle. Further, incorporate mentoring programs to escalate the retention rates of the employees. Train the Workforce with Virtual Reality (VR) and Augmented Reality (AR) With the advent of digital integration, every department, including HR, is wielding the best of novel technologies like VR and AR for employee growth and hands-on experience. They have become the go-to training methods for a multitude of organisations, such as insurance, customer service, retail, construction and safety training, to name a few. Fluid Task Management with Gig Economy HR staff should know that the younger generations prefer work-life balance with flexible schedules and Telecommuting. The gig economy where people like to work independently is witnessing a sharp spike as people are increasingly looking to work on their terms and conditions. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 30 Organisational Behavioral and Human Resource Management 9.12 Conclusion  Human Resource Management (HRM) is the process of obtaining, utilising and developing a satisfied workforce. The success of an organisation depends on the capabilities of its human resources.  Unless the organisation gives adequate resources for the development of employees, it would not get the desired output from the personnel. HRM is based on human orientation. It ensures that enough opportunities are given to employees for developing their full potential.  An HR manager serves as the head of the HR department and is responsible for performing managerial as well as operative functions. Operative functions of the HR manager include procurement, development, compensation, utilisation and maintenance of human resources.  Human Resource Management (HRM) refers to a strategic approach of managing an organisation’s people in such a way that they work towards meeting organisational goals and objectives.  In other words, HRM can be defined as the art of procuring, developing and maintaining a competent workforce with an aim to achieving organisational goals effectively and efficiently. It involves several activities, such as hiring, selecting, inducting the required number of people, compensating them and framing organisational policies related to training and development programs.  Earlier, HRM was only related to processing employee payrolls. However, today, HRM involves motivating employees; resolving conflicts between employees and management, employees and employees; taking care of employee’s welfare, etc. HRM is a continuous process of procuring, developing and maintaining human resources a well as developing team spirit and teamwork.  To retain an efficient pool of employees, it is of paramount importance for an organisation to manage its human resource effectively. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 31  Unit 09: Introduction to HRM and Manpower Planning  Inefficient management of human resource may create several difficulties for an organisation like employee dissatisfaction, unclear organisational goals and objectives.  HRM refers to the management of people or human resources in an organisation. The concept of HRM emerged from personnel management which is a traditional concept.  In personnel management, employees were not considered more valuable than the other resources like machines or tools.  In today’s competitive and knowledge-based industries, the strategic importance of people is growing. The success of an organisation largely depends on the knowledge, skills and abilities of employees.  HRM practices enable employees to have clarity of their job roles, which can bring out a positive attitude among them towards accomplishing organisational goals and objectives.  HRM practices is to evaluate the working capacity and skills of each employee and develop training programmes for upgrading their skills accordingly. This, in turn, makes them ready for future requirements.  An organisation with the help of healthy HRM practices can maintain better employer-employee relationships. Good HRM practices reduce conflicts between employees and the employer, andamong employees themselves, thus preventing situations of strikes, lockouts, etc.  The recruitment and selection process involves hiring people to fill vacant job positions in an organisation.  Recruitment involves attracting a pool of applicants for a particular job position, while selection is the process of choosing the suitable applicant from that pool. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 32 Organisational Behavioral and Human Resource Management 9.13 Glossary  Human Resource Management (HRM): It refers to a strategic approach of managing an organisation’s people in such a way that they work towards meeting organisational goals and objectives.  Job analysis: It helps in allocating job duties according to the skills of employees, thereby reducing the employee turnover rate.  Manpower planning: It involves determining the present and future requirements of human resource in an organisation.  Compensation management: It involves determining the wages and salaries of employees at different levels and positions in an organisation.  Performance appraisal: It is a process of assessing the job performance of employees after a fixed period. It is a continuous process of collecting, analysing and recording information about the worth of an employee to the organisation. 9.13 CASE STUDY: HRM PRACTICES AT RPS STORES Case Objective This case study exhibits the incorporation of HRM practices at the workplace. RPS Stores is a retail chain that has more than 3000 permanent employees along with more than 2000 agency and concession employees. It sells everyday grocery items and is strongly committed to its customers. Being in the service industry for so long, the company needs to recruit and retain a dedicated pool of employees. Though RPS has become a renowned name in the retail market today, it had faced a plethora of problems in its initial phase. The question here arises is how and what problems did the company face. The company was started by an entrepreneur as an extension of his family business. The entrepreneur simply started a store with some basic grocery items and randomly @2024 CDOE, JAIN (Deemed -to-be-University) Page | 33  Unit 09: Introduction to HRM and Manpower Planning hired some sales executives who could attend to customers and take care of billing counters. After six months of its inception, the entrepreneur was unable to see any results in terms of business profits and the store’s popularity in the market. Even the sales executives were leaving the organisation. The entrepreneur decided to hire a consultant to resolve the issue. The consultant was well informed by the entrepreneur about all the problems that the store was facing. The consultant was an experienced person so he decided to hear the issues faced by both sides. He performed a quick employee survey and found out that most of the employees were not even aware of their job responsibilities. Their job profile was not explained to them clearly. He also found that the executives were not happy with the salary that they were getting. A store located in the same area was following better pay practices compared to the RPS. So, the consultant suggested the entrepreneur have a proper HRM system in place. The owner did some more hiring of personnel from HR backgrounds. A team of four people of different levels was made and the company had its HR department for the first time. The HR department then started up with various HRM practices which have been continued till today making it a grown-up and renowned brand. Various HRM practices that made the business survive its tough phase were its effective human resource planning, recruitment and selection, compensation and benefits, training and development. The human resource planning helped the company in determining the exact requirement of the workforce and the recruitment and selection process helped in selecting the most suitable pool of employees for different departments of the company. Similarly, the training and development Programmes helped in building the skills of employees so that they can better understand the company’s goals and objectives as well as effectively perform their job roles. A reasonably fair compensation system made the company retain potential employees and attract new talent. That’s how HRM practices made the company survive the initial phase and continuously grow later on. @2024 CDOE, JAIN (Deemed -to-be-University) Page | 34 Organisational Behavioral and Human Resource Management Questions 1. What is the current employee strength at the RPS store? (Hint: The retail chain has more than 3000 permanent employees along with more than 2000 agency and concession employees.) 2. What items does RPS dabbles in? (Hint: It sells everyday grocery items and is strongly committed to its customers.) 3. What happened in the absence of HRM practices in the initial phase of the company? (Hint: The store was not able to have potential employees and strategies.) 4. What did the consultant suggest? (Hint: The consultant suggested the entrepreneur have a proper HRM system in place.) 5. Suggest some other HRM practices that may be included by the company to perform even better. (Hint: An effective job design process may also be included in the HRM process of the company, which can enhance the knowledge of employees about their job roles and responsibilities.) @2024 CDOE, JAIN (Deemed -to-be-University) Page | 35  Unit 09: Introduction to HRM and Manpower Planning A. Essay Type Questions 1. Explain the concept of HRM 2. What led to the advent of HRM? 3. What is the importance of HRM? 4. Explain any two functions of HRM. 5. What do you infer by HRP? A. Hints for Essay Type Questions 1. Human Resource Management (HRM) refers to a strategic approach of managing an organisation’s people in such a way that they work towards meeting organisational goals and objectives. In other words, HRM can be defined as the art of procuring, developing and maintaining a competent workforce with an aim to achieving organisational goals effectively and efficiently. It involves several activities, such as hiring, selecting, inducting the required number of people, compensating them and framing organisational policies related to training and development programs. Refer to Section Introduction to Human Resource Management (HRM) 2. During the Industrial Revolution (1750-1850), economy shifted from agriculture to industry. There was an increase in communication channels, which resulted in the development of industrial setup. To eliminate any kind of exploitation of workers, industries set up a new separate department. The role of the newly set up department was to take care of worker’s wages, develop welfare schemes and solve workers-related issues. During this period, the concept of personnel management emerged. Refer to Section Introduction to Human Resource Management (HRM) @2024 CDOE, JAIN (Deemed -to-be-University) Page | 36 Organisational Behavioral and Human Resource Management 3. Following points explain the importance of HRM:  Helps in accomplishing overall business objectives: Effective HRM practices enable employees to have clarity of their job roles, which can bring out a positive attitude among them towards accomplishing organisational goals and objectives. In this way, it facilitates optimum utilisation of human resources.  Provides growth opportunities to employees: One of the important HRM practices are to evaluate the working capacity and skills of each employee and develop training programmes for upgrading their skills accordingly. This, in turn, makes them ready for future requirements. Refer to Section Introduction to Human Resource Management (HRM) 4. Some of the salient functions of HRM are as follows:  Job analysis: It is a process of collecting and examining information related to job duties and requirements. It also involves identifying the skills and competencies required to perform different jobs in an organisation.  Compensation management: It involves determining the wages and salaries of employees at different levels and positions in an organisation. The wages and salaries of employees are decided based on the skills required for a job, the risk factor involved, etc. Refer to Section Introduction to Human Resource Management (HRM) 5. Human Resource Planning (HRP) is a systematic process of determining an organisation’s future workforce requirements. These requirements include the number of people needed to perform a particular job, the skills and abilities of potential employees, etc. The main objectives of HRP are to fill vacant job positions, meet organisational goals in the given time and achieve the desired level of performance. Moreover, HRP enables an organisation to @2024 CDOE, JAIN (Deemed -to-be-University) Page | 37  Unit 09: Introduction to HRM and Manpower Planning ensure that the right people with the right skills are placed at the right job positions. Refer to Section Human Resource Planning (HRP) Post Unit Learning  https://www.investopedia.com/terms/h/human-resource-planning.asp  https://www.yourarticlelibrary.com/essay/hrp-human-resource-planning- meaning-definition- and-features/25935 Topics for Discussion  Discuss with some HR managers how does Human Resource Department keeps abreast latest development @2024 CDOE, JAIN (Deemed -to-be-University) Page | 38 Organisational Behavioral and Human Resource Management @2024 CDOE, JAIN (Deemed -to-be-University) Page | 39  Unit 09: Introduction to HRM and Manpower Planning @2024 CDOE, JAIN (Deemed -to-be-University) Page | 40