HR: The Key Elements

The Ministry of Science and Higher Education of the Russian Federation Kazan National Research Technological University









R. Zinurova, E. Turner




                HR: THE KEY ELEMENTS




Tutorial














Kazan
KNRTU Press

2019

       UDK 811.111(075)
       BBK Ш143.21-923


Published by the decision of the Editorial Review Board of the Kazan National Research Technological University

Reviewers:
Candidate of Philosophical Sciences,
Associate Professor F. Nezhmetdinova
Doctor of Philological Sciences, Professor N. Sharypova




         Zinurova R.

         HR: The Key Elements : Tutorial / R. Zinurova, E. Turner; The Ministry of Science and Higher Education of the Russian Federation, Kazan National Research Technological University. -Kazan : KNRTU Press, 2019. - 116 p.
         ISBN 978-5-7882-2676-7

    Theoretical material, case studies and exercises aimed at the development of professional skills of students are presented.
    This textbook is intended especially for students majored in «Management», «Quality Management», «Personnel Management», «Management of Science Consuming Industries», and can also be useful for students who want to improve their English in the system of additional professional education.
    Prepared at the Department of management and entrepreneurship.

                                           UDK 811.111(075)
                                           BBK Ш143.21-923



ISBN 978-5-7882-2676-7      © Zinurova R., Turner E., 2019
                            © Kazan National Research Technological University,
                              2019


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CONTENT


Introduction.......................................................4
Unit I. HUMAN RESOURCE MANAGEMENT: DEFINITION AND SCOPE............5
Case Study 1. The role of HR at international aid................. 10
Unit II. HUMAN RESOURCES MANAGEMENT SYSTEM.........................15
2.1. Processes in HR Management .................................. 15
2.2. Skills of HR Professionals .................................. 16
2.3. Functions of Human Resource Department ...................... 17
Case Study 2. The HR function at Conrad Valves .................... 20
Case Study 3. The HR function at Whitegate Estate Agents ..........22
Unit III. HUMAN RESOURCE PLANNING..................................25
Unit IV. STAFF RECRUITMENT: HIRING STRATEGIES .....................30
4.1. Internal Recruitment ........................................ 30
4.2. External Recruitment ........................................ 31
4.3. Employee Selection Process .................................. 32
4.4. Difference between Recruitment and Selection ................ 34
Unit V. TRAINING AND DEVELOPMENT...................................36
5.1. Training Administration ..................................... 36
5.2. Career Development .......................................... 50
Unit VI. MOTIVATION IN HUMAN RESOURCE DEVELOPMENT..................60
6.1. Definition: Compensation & Benefits ......................... 61
6.2. Benefits Administration and Employee Remuneration............ 62
6.3. Managing Employee Performance ............................... 68
Unit VII. APPRAISAL PROCESS........................................83
Unit VIII. EMPLOYEE RELATIONS......................................88
8.1. Maintaining healthy employee relations ...................... 88
8.2. Managing of employee stress ................................. 90
The annex.......................................................... 100
Glossary ........................................................ 110
Bibliography ...................................................... 114

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        INTRODUCTION


      This textbook will be useful for training sessions with bachelors and masters majored in «Management», «Quality Management» and «Personnel Management», «Management of Science Consuming Industries».
      The training process of a modern specialist involves the development of professional skills and the formation of the ability to use a foreign language in the professional sphere. When teaching undergraduate and graduate students majored in «Management», «Quality Management», «Personnel Management», «Management of Science Consuming Industries» emphasis is placed on the fact that the success of the organization depends on the efforts of each participant, so the study of human resource management problems and their resolution are among the most important issues of any training courses. In accordance with the practical skills laid down in the curriculum, students should be able to find and use information in the professional field from various sources. Therefore training sessions using a variety of forms of training and this tutorial in English will help to form practical skills and knowledge of information retrieval and develop professional skills of students through the disclosure of some theoretical issues. Their participation in the discussion of case studies and decision-making to resolve problem situations existing in the field of personnel management is also of very important.
      The content of the book can be used both in the course of lectures on academic disciplines like «Technologies of Human Resources Management», «Organization of Staff Work (taking into account the supported industry)», «Effective Communication in Management», etc., and in the course of students' independent work.
      The textbook provides theoretical material, case studies, topics of exercises, glossary and bibliography.

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        Unit I. HUMAN RESOURCE MANAGEMENT: DEFINITION AND SCOPE


      Human Resource Management is an important function of any organization. It encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. Thus, the HR function is concerned with the notions of people enabling, people development and a focus on making the ‘employment relationship’ fulfilling for both the management and employees.

      What is Human Resource Management (HRM)?
      -        It is a science as well because of the precision and rigorous application of theory that is required.
      -       Human Resource Management (HRM) is an ‘art and science’.
      -        Thus, HRM is both the art of managing people by recourse to creative and innovative approaches.

      HRM is all about people in organizations. No wonder that some MNC’s (Multinationals) call the HR managers as People Managers, People Enablers and the practice as People Management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis-a-vis the management objectives and reconciling both to ensure employee fulfilment and realization of management objectives.

      The process of defining HRM leads us to two different definitions. They are:
      -       Traditional Definition
      -       Contemporary Definition.

      Let us look at each in detail.

      Traditional Definition:
      The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers


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the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier.
      Contemporary Definition:
      The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the ‘employment relationship’ fulfiling for both the management and employees.
      There are various reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success. It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be ‘ahead of the curve’ in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.

      The following are the various reasons that organizations need to give importance to HRM:
      -       The Evolving Business Paradigm
      -       Strategic Management and HRM
      -       Need for Adopting a Holistic Approach.

      Let us look at each in detail.

      The Evolving Business Paradigm. One of the factors behind organizations giving a lot of attention to their people is the nature of the firms in the current business environment. There has been a steady movement towards an economy based on services; hence, it becomes important for firms engaged in the service sector to keep their employees motivated and productive. Even in the manufacturing and the traditional sectors, the need to remain competitive has meant that firms in these sectors deploy strategies that make effective use of their resources. This changed 6

business landscape resulted due to a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a ‘people first’ approach.
       Strategic Management and HRM. Moreover, there is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success. The aims of strategic management are to provide the organization with a sense of direction and a feeling of purpose. The current HRM practices in many industries are taken as seriously as the marketing and production functions.

       Need for Adopting a Holistic Approach. The practice of HRM must be applied to the overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals. The practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully and this does not bode well for the success of the organization.

       Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage. The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To fulfill this purpose, Human Resource Management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally.

       Human Resource Management is not just limited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Thus, the scope of HRM is widening with every passing day, considering the intricacies involved.


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      The scope of HRM covers but is not limited to the following functions (Figure 1.1).

        Scope of Human Resource Management



Training and

Industrial

Relations

Payroll Management

Grievance Handling

Hiring (Recruitmen t and Selection)

Development

Scope of Human Resource Management

Rewards and Recognitions

HR planning

Legal Procedures

Figure 1.1. Scope of Human Resource Management

       Therefore, HRM is about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals.
       The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we can classify the scope of HRM under the following three categories:
       -  HRM in Personnel Management;
       -  HRM in Employee Welfare;
       -  HRM in Industrial Relations.

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         Let us look at each in detail.


       HRM in Personnel Management. HRM in Personnel Management is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, employee productivity, compensation, layoff and retrenchment. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.
       It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, travelling policies and procedures and other related courses of actions.

       HRM in Employee Welfare. HRM in Employee Welfare is a particular aspect of HRM which deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, medical care, sickness benefits, employee injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.
       It also relates to supervision, employee counselling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

       HRM in Industrial Relations. HRM in Industrial Relations is a highly sensitive area. It needs careful interactions with labour or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization.
       It is the art and science of understanding the employment (unionmanagement) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behaviour and maintaining work relations, collective bargaining and settlement of disputes.


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      The main aim is to safeguard the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.
      Another vital part of the HR planning process is "Succession Planning". Succession Planning refers to the way in which a company forms policies for replacing key members of its organization, shifting transfer of authority and responsibility carefully from a leaving member to a new member. This often entails ensuring that an arriving employee has the necessary training and experience to fulfil their functions.

      Student Exercise:
      1. Which of the following is NOT a scope of HRM?
      a) training and development;
      b)  payroll management;
      c) grievance handling;
      d)  quality management.
      2. Why is adopting an holistic approach important in HRM?
      3.        Explain in detail the various reasons that organizations need to give importance to HRM?

      Case Study 1. The role of HR at international aid

      The case
      International Aid is a charity that operates as an NGO (nongovernment organization) providing aid in the form of development projects in Third World countries, especially in Africa. The projects may be educational, advice on healthcare, agricultural development or constructional, e.g., schools or wells. They are funded by international organizations such as the World Bank, the World Health Organization and the UK Government, but it is also necessary for International Aid to raise funds itself to finance its headquarters operations and some projects in their early stages.

      Projects are run by a leader from International Aid with other International Aid specialists in the larger projects, although maximum use is made of local nationals as members of the team. Currently there are 96 projects in 10 African countries and two in a South American country. The total number of International Aid staff working overseas is about 350. The


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