Human Resource Management

Define HRM
Define HRM
Human resource management (HRM) is the strategic
and coherent approach for the management of an
organization's most valued assets - the people working
there who individually and collectively contribute to
the achievement of the objectives of the business.
 Why HRM
• Foundation stone for an organization’s sustainable
competitive development
• Fundamental change in thinking of managers about
employees need to be change
– Partners and Investments
• Need to consider outsourcing certain HR transactions
– But then what does the HR dept. do?
• For INDIA (1.21 billion human resource)
 It includes
• Planning
• Recruitment
• Selection
• Training and career development.
• Retention / Reward
• Organizational management
• Personnel development and administration
• Manpower management
 Human Resource Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs
 HR Planning
• Find what’s lacking?
• We have found the gap, how do we fill this
void?
• How much time/resources should we spend
on identifying the right person?
• Whether the “right” person is selected?
 Recruitment
Well !!!,

different
Jobs

require
different

skills
Recruitment (Contd…)
• Process of locating,
identifying, and
attracting capable
candidates
• Can be for current
or future needs
• Critical activity for
some corporations.
• What sources do
we use for
recruitment
 School
Internal Placement Employee
Searches Referrals

Employee Recruitment Temp

Leasing
Sources Services

Employment
Agencies Advertisements
 Selection
• Prediction exercise
– Thus, Not Perfect
• Decision-making
exercise
• Purpose is to hire the
person(s) best able to
meet the needs of the
organization.
 Selection (Contd…)
• Are there ways that managers can ensure that
the decision achieves the desired outcome?
(time and time again)
– Yes, use HR Tools which are Reliable & Valid
 Selection Tools
 Written Test
• Intelligence, general aptitude, ability, interest
 Interview
• Non-directive
– Best attitude
– Questions are open ended
– This can get you into trouble
• Behavioral Description
– As about a situation you have experienced.
• Structured
– Panel
– Situational

 References
 Selection Basis
Reliability
– Degree to which selection tool measures the same thing consistently
– Can be a test or an interview
– Same questions need to be asked.

Validity
– Relationship between selection tool and appropriate criterion
– What a selection technique measures and how well it measures
– Must be proven and relevant to job
• Eg: keyboarding skills for data entry clerk.
 What next ???
Orientation
– Process to introduce new employees to organization
– Familiarize new employee to job and work unit
– Help employee to understand values, beliefs, and acceptable
behaviors
Training
– Learning experience that seeks relatively permanent change
– Training tends to be done for current job
Development
– Involves changing skills, knowledge, attitudes or behaviors
– Develop usually means acquiring skills for future work
 Performance Management
 Integration of management practices that includes a
formal review of employee performance
– How often should this take place?
 Includes establishing performance standards and
reviewing the performance
 Means to ensure organizational goals are being met

If Performance Falls Short ?????

Train Discipline

Coach

Out the Door

 Compensation & Retention
• Process of determining cost-effective pay
structure
• Designed to attract and retain
• Provide an incentive to work hard
• Structured to ensure that pay levels are
perceived as fair
HR -- What else to worry ??
• Employee Benefits
• Health and Safety
• Labor Relations
Case Studies…
The Wonder of Mumbai Dabbawallas
Inspiration of Management
 Not just a Dabba carrying
service…
• Avg. Literacy Rate : 8th Grade Schooling
• Total area coverage : 60 Kms
• Employee Strength : 5000
• Number of Tiffin's : 2,00,000 Tiffin Boxes
i.e. 4,00,000 transactions every day.
• Time taken : 3 hrs.
Error Rate : 1 in 16 million transactions
• Technological Backup : Nil.
• Cost of service - Rs. 200/month)
• Standard price for all (Weight, Distance, Space)
• Rs. 50 Cr. Turnover approx.
[200,000*200=400,000,00 p.m. i.e. 48 crore p.a.]
• “No strike” record as each one a share holder
• Earnings -5000 to 6000 p.m.
APPROACH of HRM

DISCIPLINE :
• No Alcohol Drinking during business hours
• Wearing White Cap during business hours
• Carry Identity Cards
Case Study : TBSA
Tiffin Box Suppliers Association

Executive Committee
How do they do it…? (5 members)

• Organizational structure
Teams of 20-25 headed by a
group leader
• Operations

• War against Time (10.30 – 1.00)

• The Code Individual Dabbawalla
workload = 30 tiffins
 Some Achievements
• World record in best time management.

• Name in “GUINESS BOOK of World Records”.

• Registered with Ripley's “ believe it or not”.

 Recruitment – The Cisco Way

“Our philosophy is very simple – if you get the best people in the industry
to fit into your culture and you motivate them properly,
then you’re going to be an industry leader.’

John Chamber
CEO, Cisco Systems
 INTRODUCTION
The Case:

The case examines various changes brought about by

global networking major. Cisco, in its recruitment
policies in the mid-1990s
 INTRODUCTION
Introduction to the case:

In 1995,
Despite hiring 1,000 people every three months
Still had hundreds of openings.

‘Friends program’
In 2001, the company recruited around 40-50% of its employees through ‘Make a friend @
Cisco’ online program and other such initiatives

“Friends is designed to put some grace into the hiring process.”. Cisco recruiters have also began
to target passive job seekers, who were content and successful in their existing jobs.

- Michael McNeal, Director, Corporate Employment

 RECRUITMENT AT CISCO
Cisco’s Vision Statement:
“Attracting, growing and retaining great talent is critical to sustaining Cisco’s competitive
advantage.”

Attract the ‘top 10-15 percent’ people.

Identify the ‘should hire,’

Figure out ways those potential candidates did their job hunting and designed hiring processes to
attract them to the company.

“The top 10 percent are not typically found in the first round of layoffs from other companies, and
they usually aren’t cruising through the want ads.”

- Barbara Beck, Vice President, Human Resources

 RECRUITMENT AT CISCO
How to lure them???

Cisco changed the advertisements format in newspapers.

No specific job openings
Just the Internet address in its ads and invitation to all prospective candidates to apply.

Learned to attract happily employed people through focus groups.

For example, it was found that most professionals like to watch movies in their
free time & most professionals hated job hunting.

Cisco linked its website to the Dilbert web page, which registered around 2.5 million hits per day,
mainly from engineers and Internet-savvy managers.
 RECRUITMENT AT CISCO
The focus group’s exercise made Cisco realize that a candidate would approach the company if
he had been informed by a friend about better opportunities at Cisco.

unusual recruiting areas.

art fairs, beer festivals and certain annual events in which
people from Silicon Valley participated.

Mingle with the crowd

Collected business cards from prospective candidates
Spoke to them informally about their careers.

By 1999, about one third of new recruitments were made through the Friends program,
Cisco launched a tool called Profiler on the employment page of its website to accelerate and
standardize online resume submission.
 RECRUITMENT AT CISCO
To avoid applicants from being caught by their current employers while using Profiler, Cisco
designed each screen with an escape button that opened web page about gift suggestions for co-
workers.

To speed up the hiring process, Cisco hired in-house headhunters to identify qualified candidates
for managers.

Cisco also encouraged internal referrals for recruitment through a program called ‘ Amazing
People.’ This system allowed Cisco employees to refer their friends, acquaintances for
positions in Cisco. Employees were given bonus if the company hired the person they referred.

Every new recruit was assigned a ‘buddy’ who clarified all doubts and answered questions about
Cisco and work in general.
SWOT Analysis !!!
 strengths:-
•Use of revolutionary technique that is internet
Inexpensive method which covers large volume

•Recruiting team’s effort to identify and study job hunting

Style of potential candidates

•Advertising website at cyberspace and linking it to other

Important websites

•Formation of focus groups for passive job seekers

 Weaknesses:-
 Factors like higher salary, incentives etc which may
lure passive job seeker havn’t been included

Internal refferals may cause conflicts and may

divert employees attaintion to get bonus for
refering

As cisco target top level employees, excessive recruitment

Will be useless and unfocused
 Opportunity:-

• Unusual but fruitful recruitment

techniques like art fairs, beer
festivals and certain annual events
etc are frequently done; where
potential candidates can be easily
contacted and informed
 Threats:-

• Other competitive firms can soon

follow similar recruitment
techniques with additional
lucrative features like higher pay
scales , better working
atmosphere etc
 Conclusion:-
According to our SWOT analysis we would like to
conclude that cisco’s recruitment technique is very
beneficial, cost effective and innovative but it seems to
be a bit unidirectional as its objective is to hire top
networking people but it’s not significantly fulfilled
because they have just made the recruitment technique
smooth and easy but it has not been made attractive
specially for passive job seekers .