Human resource cost analysis is the study of behavior of cost in relation to one or more HR criteria. Controlling manpower costs has now become important for organizations, particularly when we are required to look within for cost savings to sustain organizational growth and profitability. To enforce control on HR costs, it is essential to develop a check-list at the outset. This requires grouping of activities under different cost heads and then Identifying the individual cost elements under each head. By developing an HR costs spreadsheet, we can understand the magnitude of HR costs in an organization. Element-wise cost trend over the years facilitates regular monitoring and operational control. At the macro-level, net value added per employee is an indicator of cost efficiency. Developing an HR Costs Checklist HR costs checklist varies from organization to organization due to obvious differences in their practices. Here we have mentioned about those cost Continue reading
Modern HRM
Common Team Problems
In today’s organizations, people work in teams that have either a leader or a self-driven team member to lead. While these teams provide support mechanism in the office environment and are used to improve productivity and results, they are also a source of competition. It is this team building scenario that is envisioned to promote the productivity of the employees, and at the same time the organization. In any team there is a difference of opinions, this is beneficial as it provides the building blocks to ideas for their team and organization as a whole. At the same time these opinions do raise the emotions and feelings of the team players. There arises conflict within the group that either improves the team’s performance or the breaks down of the team and consequently hampering the achievement of the organizations goal. The most common team problems are; Floundering: This problem occurs in Continue reading
Human Resource Audit – Definition, Objectives, Scope, and Importance
Human Resource Audit or HR audit is a systematic survey and analysis of different HRD functions with a summarized statement of findings and recommendations for correction of deficiencies. It examines and evaluates policies, procedures and practices to determine the effectiveness of HRD function in an organization. HRD audit ensures that sound and cost-effective policies are implemented. Human resource audit refers to the checking of the performance of the enterprise in its management of human resources. Human resource audit reveals how the management is doing in getting things done through the efforts of its people. It undertakes a systematic research of the effectiveness of the human resource programmes. It evaluates personnel activities of an organization. It acts as an overall quality control, check on human resource function. During the conduct of audit if any deficiency is discovered, steps are taken to remove it. It reviews the effectiveness of management relating to Continue reading
Efficient Use of Human Resources
The Human Resources of an organization represent one of its largest investments. The term human resources at the macro level indicate the sum of all the components (like skill, creative ability) possessed by all the people. Human resources at the organizational level include all the component resources of all employees from rank and file to top level management. So, it includes the resource, of all people who contribute their services to the attainment of organizational goals. Human resources play a crucial role in the development process of the present economy. It is often felt that though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed manpower. A country with abundance of physical resources will not benefit itself unless human resources make use of them. Only Continue reading
Nepotism in the Workplace
Nepotism can be defined as the practice of making employment decisions on the basis of relationship. It can also be defined as hiring or promoting a relative or friend, even if there are other qualified candidates for the position. Nepotism at work refers to favoring relatives in employment or economic terms as opposed to them being judged on ability and/or merit in a specific organisation. This could include a position over somebody else who may be more suitable for the position, whereby the organization would be paying a relative more money than somebody doing the same job or granting them special favors. However, nepotism can be viewed in terms of people giving somebody a boost up to allow them to get into an organisation but will be treated in the same manner as everybody else. Although nepotism is in the sense of the word, refers to relatives, it can also Continue reading
Human Resources as a Strategic Partner in an Organization
The general scenario in most companies is as follows. HR management teams have well-developed visions of their departments, their roles and responsibilities. But, the senior management is generally skeptical of HR’s role in the firm’s success. They generally consider HR to just be another necessary appendage but not something that can contribute to the success of the company. Even if the senior management does believe that human capital is their most prized possession and asset, they cannot understand how the HR team can make this belief come alive. There is one reason for all of this. Human capital is an intangible asset and HR’s influence on firm performance is difficult to measure. The standard elements of a firm’s resource architecture that are measured include total compensation, employee turnover, cost per hire, percentage of employees that undergo performance appraisals and percentage employee satisfaction. The question to be asked is: Are these Continue reading