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HRM is the combination of various practices and policies which are framed for the management of human resources in an organization, and it includes Recruitment, job description, appraisal and rewarding."
For any business to run an organization needs to have four M's Man, Material, Money and Machine. Management of men is difficult in comparison to other three M's. Management of men is comparatively difficult because no two human beings are similar in all way. (Legge, Karen,2004) Handling humans is more important for any business because human being have crucial potential that may be very profitable for the business. And these potential can be developed to an unlimited extent if they are provided with proper environment. (Nadler L Ed., 1984)
Proficient and effective HR management consulting has the ability to increase the efficiency of business houses and this may result in savings of resources i.e. time and money. Proper HR consulting helps in refinement of their human resource processes. (Foot, M. and Hook, C. 2005)
Values that work at work
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Human Resource Policies are set of codified rules and decisions, established by an organization, to support performance management, administrative personnel functions, resource planning and employee relations. (Ulrich, Dave 1996)
The purpose of HR policies is to make employee clear with:
The nature of the organization
Company's expectations from them
Their expectations from the company
How policies, procedures and rules function at your company
What is acceptable and unacceptable reactions and behavior
The outcome of unacceptable behavior
An organization has lot of HR practices but important areas which are covered by the company are:
Recruitment & Selection
Training & Development
Healthy, Safe & Happy Workplace
Employee Compensation Policies
Adequate supply - Organization plans the man power as per their internal requirement. They expand their existing hierarchy as per their projects and future plans. Inadequate man power leads to failure of organization as they may fails to tackle the work pressure and fails to meet deadlines in their projects. (Torrington, D., Hall, L. and Taylor, S. 2007)
Proper quantity & quality - Quantity with proper quality is equally important for an organization to make the organization successful and this organization known for quality manpower.
Effective utilization of HR - Effective utilization of resources leads to success for an organization as employees are able to deliver their best performance and justified with their skills and knowledge. (McLean G. N., 2006)
Job Analysis -It is a specific tasks and process regarding data gathering, examining and interpreting for a specific job. (Barney.J., 1995)
Job description: It is a written document which describes the general nature of work to be delivered and perform by an employee. It includes duties, responsibilities and roles to be played.
Job specification: It is a statement of particulars which consists statement of prescribed materials, quality and dimensions of works.
Job enlargement: It is a process enhancing job duties, roles and responsibilities of an employee.
Job enrichment: An act of making appraisal and rewarding a person.
Recruitment & Selection - This is an important process to capture new talent in the organization. The purpose behind this process are:
Linking function: Every department of the organization has to set required sets of skills and knowledge that a candidate must possess.
Searching prospective employees: Once they set the required skills and knowledge that candidate must have, they search for the employees from various ways like internal recruitment process or external recruitment process.
News paper advertisement
Stimulating employees to apply: Organization offers lucrative salary packages and incentives to attract the new talent to apply for the organization. Some time organization ready to negotiate on the salary package depending upon the caliber of the candidate. (Barney.J.,1995)
Training & Development - The basic motive behind training & development program is to increase skills and knowledge in employees.
(Source: Patrick J. Montana and Bruce H. Charnov ,2000).
Training: It is a process of upgrading skills, knowledge and competency level in an employee through a systemic way. It may be vocational or practical teaching process which is helpful for performing a specific task. (Barney.J, 1995).
Task analyses: It is a detail process of how to complete a task which includes many elements like job duration, mental and manual activities, allocation of task, frequency of task, complexity of task, environmental conditions, necessary and required equipment and clothing, and other things required to perform a task by more than one people in a team.
On the job training: (OJT) is workplace job training. In this process, a new employee while earning pay their pay check learns the job. It is also known as hand on training. (McLean G. N., 2006)
Apprenticeship training: It is a new generation training system for practitioners who are there to upgrade their skills.
Job instruction training: It is a gradual process of training where simple techniques are used to train employee step by step. It is the best technique used by trainer for teaching manual procedures or skills. Trainer could be a co-worker also.
Simulated training: training employees on special off-the - job equipment.
Job aid: It is a set of methods, diagrams or instructions which are available at the job site to guide or help the worker.
Job rotation: It is a process of mental and personality development through series of assignments which are specially designed for the job trainee a provider a wide exposure in different field and operation.
Action learning: It is a performance improvement process wherein a participant learns by studying from his/her own actions and experiences. This kind of learning is like teaching a person by examples and repetition process.
Management game: It is a development technique in which various teams of management compete to each other by enabling them to take computerized decisions in simulated situations.
Role playing: It is a very interesting process of training in which a social role is assigned to trainee to change his/her behavior towards various facets of life.
Safe, Healthy & Happy Workplace
It is one of the important aspects of HR management wherein a healthy, safe and happy workplace/location is made available to the employees of the organization. The main motive is to feel employees like their home and expect from them to remain loyal for their organization for long time. This could be analyzed by a adopting a proper survey in the organization.
6. Employee Compensation Policies:
Employee compensation: It is a obligatory policies by the employer to the employee in case of injury, accidents or any other unfortunate happenings. These all policies are liable to company's rules and regulations. (Collis.J.C. and J.I.Porras, 1998)
Direct financial payments: These are the direct payments to the employee in various forms of salaries, wages, commissions, incentives and bonuses.
Salary survey: It is a method used to determine the average salary earned by an employee of the organization in one or more jobs. In this survey, a compensation data is collected from several employees to analyze an exact understanding of the compensation paid amount.
Salary compression: It is internal problems which are caused by external market conditions and sometimes exacerbated by unknown factors. A special two points of comparison method is used to determine salary compression: salaries of senior faculty versus salaries of junior.
Compensable factor: This is a fundamental and compensable measure of a job, such as skills, responsibility, effort and working conditions.
Pay grades: It is a fixed payment system wherein a fixed salary range is provided to various employees and no negotiation is allowed in payment system.
Wage curves: It is a negative curve which describes the relationship between level of unemployment and wage increment. The variables used are expressed in local terms.
Human resource management is core part of any organization. It can be measured and improved by studying various factors like employee turnover, employee wastages rates, absenteeism, injury and illness records etc. This information will help us to determine the functioning and performance of the organization. Proper use of indicators and information helps to determine the quality of work environment. Proper indicators cover issues and problems such as mentioned above and it can assist in HR planning and management system. (Schuler RS, Dowling, 1993)
Following performance indicators must be used by an organization so that it can be implemented in our organization to assess the operation and functioning of the HR department (Dressier G 1994)
Work Force Planning
Staff Numbers: The no. of employees required for an organization must be defined and candidates must be hired according to future demand of the organization.
Ratio of wages to salaried staff:
Ratio of surplus/extra staff to total required staff
HR Training & Development -
No. of Training days to each employee
Training days in a training plan
Total cost incurred on training
Average gain in learning per training course
Average improvement in the performance of job after training
Equal employment opportunities
No. of registered complaints
No. of women returned back to work after taking maternity leave
No. of grievances and complaints referred to senior officers
Employee health and safety
Total no. of days lost due to injuries and/or accidents
Total no. of injured employees returned to their work
Percentage of workers compensation to total payroll
Success rate of rehabilitation
Total no. of issues and disputes
Total no. of hours lost in organization disputes
Recruitment and Appointment
Total vacancies filled within given target time
Actual time taken to fill the position
100% compliance with selection procedure
% of suited employees selected
Goal achieved in % form
No. of performance appraisal meetings compared to targets
Salaries and Remuneration
Average salary change rate
Incorrect payments in % form
Proportion of total salary budget expenditure
Percentage of overdue salary increase
After analyzing all the HR policies followed by the organization it is found that company's HR policies are good but still retention rate is not good. So it is needed to retain the employee in the organization. Company is an IT company where employees switch to other company only because previous company is not providing right growth environment to the employee. Here some of the policies which company needs to take care so that employee retention can be maintained. (Schuler RS, Dowling,1993)
This is a method that company can adopt to improve the performance of the employee. There must be a proper communication between administration and employees regarding performance based payment system. The compensation could be in form of bonuses, incentives or special packages. But important thing is that performance based compensation is applied only when employee meets a particular level of target and it generated profit for the organization. (Collis.J.C. and J.I.Porras, 1998)
360-Degree Performance Management Feedback System
Patni is not using performance management feedback system in their organization. They do not follow 360-Degree performance management system. In this system, a proper feedback is taken from all peers, seniors and subordinates to improve the job performance of the employee. The feedback is relevant to job, constructive and positive by nature. This is best available performance improvement method and it is embrace by all most all the organization working at the global level. Such kind of system helps in generating leadership skills in the employees and generates higher level of leaders in the organization. Senior and higher management employees use this approach for self development also. (McFadzean, Elspeth ,1999)
Fair Evaluation System for Employees
To match up the goals and objectives of the organization with the performance of employees, there must be a clear evaluation system in the organization. There must be periodic reporting and counseling of the employee through cross functional feedback system to improve the performance of the employee. (Barney.J., 1995).
Now time has changed from industry based economy to knowledge based economy. So it is important to have a system where each employee of the organization can share their knowledge easily with each other. There must be strategic databases to store knowledge and easy accessibility of these databases to each employee in the organization. It should be mandatory to share any knowledge, skills or any competencies in these databases to every employee. Innovative ideas could also be shared in these knowledge sharing platforms and data bases. It is not a difficult task to manage by HR management but it should be accepted at each and every level.
This is a very interesting policy wherein a competitive and healthy environment is created among various employees at different level. In this top performers are highlighted through listing on board displaying on internet and/or company's website etc. It encourages employees to perform well. (Collis.J.C. and J.I.Porras, 1998)
Open House Discussions & Feedback Mechanism
This is a platform where everyone can speak and allowed to put their thoughts freely. Employees are the best source of ideas where ideas are generated in a big way. But lack of an appropriate mechanism leads to stop flooding of free ideas to the organization. There are many methods to capture these ideas like open house discussions, management-employee meets, suggestion boxed and idea capture tools etc. This is one of the best HR policies to get gel the employees with the top management and make relation healthy & smoother. (Collis.J.C. and J.I.Porras, 1998)
Organizing ceremonies would be good idea to encourage employees to perform well in the organization other than recognizing talent only. (McFadzean, Elspeth ,1999)
Delight Employees with the Unexpected
Everyone likes surprises either it is in personal life or professional life. Delighting employees with gifts, rewards or a well done certificate helps organization to win the heart and loyalty of the employees for long time. They like to stay with those organizations where such events occur. This is nothing but a motivational arm to use on the employees.