Narayana Murthy, former CEO of INFOSYS: '"Our assets walk out of the door each evening. We have to make sure that they come back the next morning"'
Infosys includes its human resources on its balancesheet to affirm their asset value
Human resources
The collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organisation
Infosys recognises the value of its human assets in maintaining its competitive position
Infosys faces the challenge of attracting, retaining and developing its human assets in a highly competitive and dynamic environment
Narayana Murthy's leadership style
Humble and straight-forward, quite uncommon in the world of Indian business
Believes in sharing wealth with employees
Leads by example
Based on western management
Narayana Murthy is credited with creating a culture of closeness and empowerment at Infosys
Staffing
Putting people to jobs. It begins with workforce planning and includes different other functions like recruitment, selection, training, development, promotion, compensation and performance appraisal of workforce
Staffing is a separate and specialised function and there are many aspects of human relations to be considered
Human Resource Management
Managing the human component of an organisation, which is the most important task as the performance of an organisation depends on the competence, motivation and performance of its human resource
Duties of Human Resource Management
Recruitment
Analysing jobs, collecting information about jobs to prepare job descriptions
Developing compensation and incentive plans
Training and development of employees for efficient performance and career growth
Maintaining labour relations and union management relations
Handling grievances and complaints
Providing for social security and welfare of employees
Defending the company in law suits and avoiding legal complications
Human Resource Management has replaced the traditional concept of labour welfare and personnel management
Staffing Process
1. Understanding the manpower requirements within the organisation
2. Identifying the potential sources from where it can be met, either from within the organisation or from outside
3. Marketing the job and the organisation to the people
4. Selecting the most appropriate candidate
5. Providing orientation or training to the freshly appointed persons
Staffing
1. Understanding manpower requirements
2. Recruitment
3. Selection
4. Placement and Orientation
5. Training and Development
6. Performance Appraisal
7. Promotion and career planning
8. Compensation
Manpower requirements
Understanding the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives
Manpower requirements
Need to encourage diversity in the workforce (women, persons from backward communities, persons with special abilities)
Workload analysis
Workforce analysis
Neither over-staffing nor under-staffing is a desirable situation
Recruitment
The process of searching for prospective employees and stimulating them to apply for jobs in the organisation
Recruitment
1. Locating potential candidates
2. Determining sources of potential candidates
3. Developing 'situations vacant' advertisement
4. Displaying/publishing the advertisement
Selection
The process of choosing from among the pool of the prospective job candidates developed at the recruitment stage
Selection process
Ensures the organisation gets the best among the available
Enhances the self-esteem and prestige of those selected
Placement and Orientation
1. Introducing the selected employee to other employees
2. Familiarising the employee with the rules and policies of the organisation
Training and Development
Facilitating employee learning to provide opportunities for career advancement
Performance Appraisal
1. Defining the job
2. Appraising performance
3. Providing feedback
Promotion
Being placed in positions of increased responsibility, usually with more pay, responsibility and job satisfaction
Compensation
All forms of pay or rewards going to employees, including direct financial payments (wages, salaries, incentives, commissions, bonuses) and indirect payments (employer paid insurance, vacations)
Time-based pay
Salary and wages paid daily, weekly, monthly or annually
Performance-based pay
Salary/wages paid according to piecework or other incentive plans
Factors influencing the design of pay plans include legal (labour laws), union, company policy and equity
Aspects of Staffing
Recruitment
Selection
Training
Internal recruitment sources
Transfers
Promotions
Transfers
Shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status
Promotions
Shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay
Merits of internal recruitment sources include improved motivation, loyalty and satisfaction of employees
Transfers
Helpful in avoiding termination and in removing individual problems and grievances
At the time of transfer, it should be ensured that the employee to be transferred to another job is capable of performing it
Transfers can also be used for training of employees for learning different jobs
Promotions
Shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay
Promotion is a vertical shifting of employees
Helps to improve the motivation, loyalty and satisfaction level of employees
A promotion at the higher level may lead to a chain of promotions at lower levels in the organisation
Direct Recruitment
A notice is placed on the notice-board of the enterprise specifying the details of the jobs available
Job-seekers assemble outside the premises of the organisation on the specified date and selection is done on the spot
Suitable for filling casual vacancies when there is a rush of work or when some permanent workers are absent
Very inexpensive as it does not involve any cost of advertising the vacancies
Casual Callers
Many reputed business organisations keep a database of unsolicited applicants in their offices
A list of such job-seekers can be prepared and can be screened to fill the vacancies as they arise
Reduces the cost of recruiting workforce in comparison to other sources
Advertisement
Advertisements in newspapers or trade and professional journals are generally used when a wider choice is required
Advantage is that more information about the organisation and job can be given in the advertisement
Gives the management a wider range of candidates from which to choose
Disadvantage is that it may bring in a flood of response, and many times, from quite unsuitable candidates
Employment Exchange
Employment exchanges run by the Government are regarded as a good source of recruitment for unskilled and skilled operative jobs
In some cases, compulsory notification of vacancies to employment exchange is required by law
Help to match personnel demand and supply by serving as link between job-seekers and employers
Records of employment exchange are often not up to date and many of the candidates referred by them may not be found suitable