Human Resource Information System At Amul

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A Project onHuman Resource Information System at AmulIn the subject of Organisational BehaviourSubmitted toUniversity of MumbaiFor Semester III ofMaster of CommerceByShruti Vikram(Management 137)Under the Guidance ofProf Swati ChaplotYear 2013 – 20141

e-mail :contactus@gmail.com, degree.office@gmail.comWebsite : www.lsraheja.org.inTel. : 26609320SADHANA EDUCATION SOCIETY’SL. S. RAHEJA COLLEGE OF ARTS AND COMMERCERE-ACCREDITED BY NAAC WITH ‘A’ GRADEJuhu Road, Santacruz (West), Mumbai – 400 054.DECLARATION BY THE STUDENTI, Shruti Vikram student of M Com Part-II Roll Number 137 hereby declare that theproject for the Paper Organisational Behaviour. Submitted by me for Semester –IIIduring the academic year 2013-14, is based on actual work carried out by me under theguidance and supervision of Prof Dr Swati Chaplot.I further state that this work is original and not submitted anywhere else for anyexamination.Signature of StudentEVALUATION CERTIFICATEThis is to certify that the undersigned have assessed and evaluated the project onHuman Resource Information System at Amul submitted by Shruti Vikram studentof M Com III.This project is original to the best of our knowledge and has been accepted for InternalAssessment.Internal ExaminerExternal Examiner2Principal

L. S. RAHEJA COLLEGE OF ARTS & COMMERCEInternal Assessment: Project 40 MarksName of the StudentFirst nameClassDivisionR.NOM COMManagement137: ShrutiFather’s Name:PART IISurname: VikramSubject: Organisational BehaviourTopic for the Project: Human Resource Information System at AmulMarks Awarded SignatureDOCUMENTATIONInternal Examiner(Out of 10 Marks)External Examiner(Out of 10 Marks)Presentation(Out of 10 Marks)Viva and Interaction(Out of 10 Marks)TOTAL MARKS (Out of 40)3

ACKNOWLEDGEMENTI am thankful to everyone who supported me to complete my project effectively andmoreover, on time.I am equally grateful to my Professor Swati Chaplot. She gave me moral support andguided me in different matters regarding the topic. She has been very kind and patient,whilst suggesting to me the outlines of this project, and correcting my doubts. I thank herfor her overall support.Last but not the least, I would like to thank my mother and my husband who helped me alot in gathering different information, collecting data and guiding me from time to timein completing this project. Despite their busy schedules, they gave me different ideas tohelp make this project unique.Thanking youShruti VikramM.Com – II [management - 137]4

INDEXSr. No.PARTICULARSPage No.1Executive Summary62Organization Profile73Introduction84History of Amul Organization115Organization Structure146Human Resource Department157Human Resource Information System258HRM’s Changing Environment329Case Study On Human Resource Information System3610Futuristic Vision4211Influencing Factors of 21st Century4412Conclusion4513Bibliography465

Executive SummaryAMUL is a co-operative sector. It is the institution of the farmers, for the farmers andfrom the farmers. The AMUL gives pleasure to the farmer to charge the own price,which was not possible in earlier years. This union was born on 14th December 1946.The union provides facilities to its members like more return, satisfactory price,insemination, first aid, group Insurance, cattle food at confessional price etc.I have done case analysis on HRIS of AMUL and from that I have come to know howorganization operates and how the functions have been carried in the organization. Fromthis is case I have come to know how a wide organization like AMUL manages itsAMUL dairy has five main departments like finance, personnel, commercial, milkprocurement and production. The finance department does the clerical work and takescare of inflow and outflows of the cash. The other work of finance Department is toaudit of annual work.The personnel department handles the work regarding personnel like appointment,recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc.6

Organization Profile Name: Kaira District Co- Operative Milk Producers’Union Limited, Anand. Form: Co-Operative Sector under the Co- Operative Society Act. Reg.Office: Kaira District Co-Operative Milk Producers Union Ltd,Anand -3881001. Gujarat, India. Promoters(1) Shri Tribhuvandas Patel(2) Shri Morarji Desai(3) Shri Vallabh Bhai Patel(4) Dr. Varghese Kurien Auditors: Special Auditors (Milk), Milk Audit Office Anand. Socities: 1113. Members: 6, 31,333. Office Time: 10:00 A.M To 06:00 P.M. Premises: 49.55 Acres. Registration: 14th December, 1946.Introduction7

Human Resource Management:Human Resource Management has come to be recognized as an inherent part ofmanagement, which is concerned with the human resources of an organization. Itsobjective is the maintenance of better human relations in the organization by thedevelopment, application and evaluation of policies, procedures and programmesrelating to human resources to optimize their contribution towards the realization oforganizational objectives.In other words, HRM is concerned with getting better results with the collaboration ofpeople. It is an integral but distinctive part of management, concerned with people atwork and their relationships within the enterprise. HRM helps in attaining maximumindividual development, desirable working relationship between employees andemployers, employees and employees, and effective modeling of human resources ascontrasted with physical resources. It is the recruitment, selection, development,utilization, compensation and motivation of human resources by the organization.Human resources may be defined as the total knowledge, skills, creative abilities, talentsand aptitudes of an organization's workforce, as well as the values, attitudes, approachesand beliefs of the individuals involved in the affairs of the organization. It is the sumtotal or aggregate of inherent abilities, acquired knowledge and skills represented by thetalents and aptitudes of the persons employed in the organization.The human resources are multidimensional in nature. From the national point of view,human resources may be defined as the knowledge, skills, creative abilities, talents andaptitudes obtained in the population; whereas from the viewpoint of the individual8

enterprise, they represent the total of the inherent abilities, acquired knowledge andskills as exemplified in the talents and aptitudes of its employees.The Amul – MeaningAMUL means “priceless “in Sanskrit. A quality control expert in Anand suggested thebrand name “AMUL” from the Sanskrit word “Amoolya” variants, all meaning“priceless” are found in several Indian languages. Amul products have been used inmillions of home since 1946.Today Amul is a symbol of many things; of high – quality products sold at reasonableprices; triumph of indigenous technology; of the marketing savvy of a farmer’sorganization and proven model for dairy development.MottoThe main motto of AMUL is to help farmers. Farmers were the foundation stone ofAMUL. The system works only for farmers and for consumers, not for profit. The mainof AMUL is to provide quality products to the consumers at minimum cost. The goal ofAMUL is to provide maximum profit in terms of money to the farmers.Vision9

Vision of AMUL is to provide and vanish the problems of farmers (milk producers). TheAMUL apparition was to run the organization with co-operative of four main parties, thefarmers, the representatives, the marketers, and the consumers.Quality PolicyThe motivated and devoted work force of AMUL are committed to produce whole someand safe foods of excellent quality to remain market leaders through deployment ofquality management system, state of art technology innovation and eco- friendlydelightment of customer and betterment of milk producer.History10

In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his incomealmost entirely from seasonal crops. The income from milk was paltry and could not bedepended upon. The main buyers were milk traders of Polson Ltd.-a privately ownedcompany that enjoyed monopoly for supply of milk from Kaira to the Government MilkScheme Bombay. The system leads to exploitation of poor and illiterate farmers by theprivate traders.However, when the exploitation became intolerable, the farmers were frustrated. Theycollectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in thefreedom movement. Sardar Patel advised the farmers to sell the milk on their own byestablishing a cooperative union, instated of supplying milk to private traders. SardarPatel sent the farmer to Shri Morarji Desai in order to gain his Co-operation and help.Shri Desai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. Headvised the farmers to from a society for collection of the milk. These village societieswould collect the milk themselves and also decided prices for that which would beprofitable for them. The district union was also from to collect the milk from suchvillage cooperative societies and to sell them. It was also resolved that the governmentshould asked to buy milk from the union.However, the government did not seem to help farmer by any means. It gave thenegative response by turning down the demand for the milk. To respond to this action ofgovernment, farmer of Kaira district went on a milk strike. For 15 days not a single dropof milk was sold to the traders. As a result the Bombay milk scheme was severelyaffected. The milk commissioner of Bombay then visited Anand to assess the situation.Finely he decided to fulfill the farmers demand.11

Thus their cooperative unions were forced at village and district level to collect and sellmilk on a cooperative basis, without the intervention of government. Mr. VergheseKurien had main interest in establishing union who was supported by Shri TribhuvandasPatel who convinced farmers in forming the cooperative unions at the village level. ‘TheKaira District Co-operative Milk Producers’ Union’ was thus established in Anand andwas registered formally under section 10 of Bombay Act VII of 1925 on December 14,1946. Since then farmers are selling all the milk in Anand through cooperative union. In1955 it was commonly decided the sell milk under the brand name ‘Amul’.At the initial stage only 250 liters of milk was collected every day. But with the growingawareness of the benefits of the co-cooperativeness the collection of milk increased.Today Amul collect 50, 00,000 liters of milk every day. As the milk is perishablecommodity it became difficult to preserve milk for a longer period. Besides when themilk was to be collected from the far places there was a fear of spoiling of milk. Toovercome this problem the union thought to develop the chilling unit at variousjunctions, which would collect the milk and could chill so as to preserve it a for a longerperiod. Thus, today Amul has more than 168 chilling centers in various villages. Milk iscollected from almost 1097 societies.With the financial help from UNICEF, assistance from the government of New Zealandunder the Colombo plan, of Rs. 50 million for factory to manufactory milk powder andbutter. Dr. Rajendara Prasad, the president of India laid the foundation on November 50,1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amuldairy on November 20, 1955.A plant to manufacture balanced cattle feed was formally commissioned on October 31,1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request of the12

government of India, a new dairy with a capacity to manufacture 40 tons of milk powderand 20 tons of butter a day was completed in 1963. This was meant to meet therequirement of India’s defense forces. The dairy was declared open by Shri MorarjiDesai in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-proteinweaning food, chocolate and malted food at Mogar, about 8 km south of Anand.In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. Thesuccession of the co-generation project on September 11, 1985, marked a milestone onthe energy front when two gas turbine generators of 1.5 MW each based on natural gas,were commissioned. On October 31, 1992, Dr. V. Kurien chairman, National DairyDevelopment Board, laid the foundation of Kaira Union’s third dairy with a processingcapacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at‘Khatraj’ with capacity for 20 Metric Ton of cheese per day, began in February, 1994.Also in 1994, Kaira Union put up bread spread plant at ‘Mogar’ with the assistance fromNational Dairy Development Board.Organization Structure of Amul13

Board of DirectorChairmanManaging ChairmanGeneral ManagerAssistant General ManagerManagerDeputy ManagerAssistant ManagerSenior ExecutiveSenior OfficerSenior AssistantWorkersGrade (A to E)Human Resource DepartmentIntroduction:According to Scoot Clothier and Spriggel Human resource management as the branch ofmanagement which is responsible on a staff basis for concentrating on those aspects of14

relationship of management to employees and employees to employees and with thedevelopment of the individual and the group. The objective is to attain maximumindividual between employer and employees and effective molding of human resourcesas contrasted with physical resources.Personal (Human resource) management plays a very important role for anyorganization. The firm having all types of resources like machines, materials, money,information etc. will not be success in business without effective manpower. Humancapital is the greatest assets of business enterprise and manpower management is themost important and crucial job because the managing group is the heart of the company.Human resource department plays most important role in establishing good relation andharmony among all.Total Employees in Amul15

AUTHORITYNO. OF orkers846Total1175No of Shift: 1st shift time: 08:30 A.M to 04:30 P.M 2nd shift time: 04:30 P.M to 12:30 A.M 3rd shift time: 12:30 A.M to 08:30 A.M16

Function of Human Resource Department1. RECRUITMENT AND SELECTION2. TRAINING AND DEVLOPMEN3. PERFORMANCE APPRAISAL4. SALARY AND WAGE ADMINISTION5. EMPLOYEE TURNOVER6. COMPENSATION7. INDUSTRIAL RELATION8. FACTORE ACT9. INDUSTRIAL DISPUTE ACT10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)17

Recruitment and Selection FunctionRecruitment:There are two types of Recruitment sources followed by Amul: EXTERNAL SOURCE INTERNAL SOURCES Internal Sources:Internal sources include personnel already on the payroll of the organization. Present Permanent Employees. Employee Referrals Former Employee External Sources :18

These sources lie outside the organization In Amul they consider followingsources for recruitment: Campus Interview Unsolicited Application Application Blank Placement AgenciesSelection:Selection procedure is concerned with securing relevant information about the applicant.The main objective of selection process is to determine whether an applicant meets thequalification for a specific job and choose the application that is most likely to performwell in the job. The Selection process in AMUL is as underVacancy in any department Approval from M.D Advertisement 19

Collection of application Securitize the application Interview Medical checkups SelectionAfter selection, the employees generally have probation period. In AMULprobation period is different for different type of employees. Probation period forofficers is 12 months, 6 months for clerical employees and 3 month for workers.Training and DevelopmentIt is a subsystem of an organization. It ensures that randomness is reduced and learningor behavioral change takes place in structured format. Training is the process where thework related knowledge, skills and attitude are given to new employees. By which theyaware the policies rules and increase technical and manual efficiency and create ofresponsibility.AMUL has accepted these methods for the training1. On the job method2. Off the job method20

3. In house training4 Out house trainingTraining Procedure in AmulIdentification of need of Training Module Preparation Selection of Employee for the Training Training FeedbackPerformance AppraisalPerformance appraisal is the process of evaluating the performance and qualification ofemployees in terms of the requirement of the jobs for which they are employed. It ishighly useful in making decision regarding the promotion, transfer, wage and salaryadministration etc. The AMUL adopts the following appraisal system21

Promotion PeriodAppraisal For1 yearManagers3 yearOfficers1 yearWorkers1.5 yearTemporary workersFinal confirmation with the recommendation by the divisional heads comes from theMDon annual basis. His work is evaluated by Check list Method of PerformanceAppraisal. These are a various method used to appraise the performance of an employee.In Amul the following methods are usedSelf AppraisalIf individuals understand the objectives they are expected to achieve the standards bywhich they are to be evaluated they are to a great extent in the best position to appraisetheir own performance .in this method employee himself.22

Manager’s AppraisalThe general practice is superiors appraise the performance of their subordinate. Othersupervisors, who have close contact with employee‘s work may also appraise with aview to provide additional information. A higher – level manager appraise theemployees for their performance.In Amul various attributes consider for the appraisal of employee. Job knowledge Work output Quality of work Interest in work Initiatives Past records SeniorityThis appraisal is also the rating scale. Method appraiser also appraised employee byfollowing.23

Outstanding Good Satisfactory PoorThe overall assessment is done through above rating and also the comment of reviewingofficer is included. Apart from this the performance in liked allowance is provided inrelation with performance that is, 25% 50% 100% Not allowedThis is provided by and under knowledge of under Managing Director Generally inAmul on base of performance appraisal employee of managerial level gets specialsallowance. While for workers they get promotionsWages and Salary24

A common method is followed for the wage and salary administrationaccording to “Muster roll “. Timekeeper sends that muster roll to the account department for attendance ofeach and every employee. This will analyze and entered in the computer. After this salary is calculated for each employee through computer accordingto that they prepare salary sleep of employees.Wage Structure (Approx)PostGradePay scaleManaging DirectorManager21000-28000General ManagerManager15000-21000Assistant General Senior clerkWorker2000-500025

Human Resource Information System of AmulHuman Resource Information System (HRIS) is a systematic way of storing data andinformation for each individual employee to aid planning, decision making, andsubmitting of return and reports to the external agencies. It merges HRM as a discipline and in particular it’s basic HR activities andprocesses with the information technology field. It can be used to maintain details such as employee profiles, absence reports, salaryadministration and various kinds of reports.Objectives: To understand, how human resource being managed by the organization. To study the maintenance of the records of their employees. To study if organization is using ICT for HR functions and to maintaindatabase.26

To study the users perception about HRISDefinition:“A Human Resources Information System is a system that lets you keep track of all youremployees and information about them. It is usually done in a database or, more often, ina series of inter-related databases “Human Resources are an organizational function that deals with issues such asrecruitment and selection, training, appraisal, compensation and performancemanagement of the employee.Information System:A system, whether automated or manual, that comprises people, machines, and/ormethods organized to collect, process, transmit, and disseminate data that represent userinformation.Introduction:An information system is an inter-related set of procedures and processes to provideinformation for decisions. Information is data that have been processed so that they aremeaningful. It adds to the representation of an idea. It corrects and confirms previousinformation. It tells us something which we did not know. Many organizations havecomputer-assisted information systems. Thus HRIS is a system that enables storing ofinformation of Human Resource in every aspect such as Personal, Academic,Qualification, Family, Medical, Career and Performance Evaluation, Training &Development & Wage and Salary of individuals. Unlike manual systems the HRIS27

enables availability of all such information in a single screen. Reports on variousparameters can be generated with ease. Moreover reliability of such records is assured. An information system especially developed for human resource management isreferred to as HRIS – a human resource information system. Human resource management, when it doesn’t include the human resource planningfunction, requires only a basic HRIS. If this basic HRIS is computer-supported, it islikely to include transition processing system or management information system. An information system provides for the accumulation by gathering, processing bydeleting extraneous information, deciding among divergent information and puttingthe information in a logical arrangement that promotes its understanding. Finally, the information is stored in a readily accessible configuration.HR Information System Includes:This system includes the employee name and contact information and all or some of thefollowing: Department Job Title Grade Salary Salary History Position History28

Employee details (Personal & Professional) Employee Posting information on appointment /transfer Employee promotion/ appointment information Employee Service verification details Employee Leave Information including(Leave available , leave availed,) Employee confidential report information Employee Training informationNeeds of HR Information System29

Human resource manager requires considerable amount of data for planning andcontrol of human resources and for this there is a strong need of a soundinformation system. Efficiently storing each employee information and data for reference- personaldata management, pay roll accounting, benefits management and planning. Enabling informed decision making in day-to-day personnel issues, planning,budgeting, implementing and monitoring Human Resource function. Facilitating decision making in areas like promotion, transfer, nomination,settling employees provident funds, retirement, gratuity, LTC, and earned leavecompensation Cutting costs. Improving accuracyAdvantages of HR Information SystemReduction in the amount and cost of stored human resource data.Availability of timely and accurate information about human assets.Developing of performance standards for the human resource division.More meaningful career planning and counselling.30

Effectiveness of HRISThe key to the effective planning of manpower and improvement of people productivityis an effective HRIS. However, in order to be effective an information system must takeinto account the following: Adequacy of information: Too much or too little information, both lead todefective decision-making. Therefore, there must be some understandingregarding what information and in how much detail and covering what periodsshould be maintained. Specificity: Even where it is not possible to quantify the information, theinformation should be made as specific as possible. Relevance: Information is to be managed in the light of the requirements of thedecision makers. Therefore, HRIS focus on the needs of the decision-makers andstakeholders rather than on what is interesting or easily available or palatable tothe people. The system, therefore, must also have the built in capability fordeletion and updating of data. Comprehensiveness: The information should be complete from the point ofview of the decision-maker giving details of who, what, how, when, where andwhy. Reliability: Since the information is going to be the basis of critical decisions, itmust satisfy the requirements of validity and reliability. Moreover, to ensureeffectiveness, not only should the information provided be relevant and reliablebut the delivery system should also be the most satisfying and cost effective. A31

wealth of information but not accessible when needed or available at aninhibiting personal cost in terms of energy and time, is of hardly any use.It Supported HRISIn today’s enterprises, HRIS are typically Information Technology (IT) supportedsystems. This is not to say that without IT HRIS cannot be introduced. But informationtechnology allows much greater effectiveness of HRIS than a manual system. Some ofthe deficiencies of the Manual Systems which an IT based HRIS overcomes to aconsiderable extent Convenience: In IT enabled systems, data entry, update and retrieval are allsignificantly faster. Redundant data may be easily replaced. Integration: A computerized system can greatly reduce fragmentation andduplication of data. All data can be stored in a single system to enable retrieval ofcomplete picture of each employee or of each defined parameter in a desirednumber of permutation and combinations. Moreover, depending on therequirement, reports can be generated in different ways that provide an accuratepicture. Verification of data and error rectification are also relatively easy incomputerized systems.32

Multi-User BenefitDifferent people can access the data simultaneously, which facilitates quickdissemination across geographical and structural boundaries and facilitates fasterdecision-making. Moreover, on-line data entry is possible that leads to automatic updating of data resulting into better informed decisions. However, to obtain theseadvantages, it is important that the knowledge and expertise is available to theorganization, internally or from outside, to develop and tailor- make the system to suitthe organization’s unique needs.33

HRM in a Changing EnvironmentEnvironmental challenges refer to forces external to the firm that are largely beyondmanagement’s control but influence organizational performance. They include: rapidchange, the internet revolution, workforce diversity, globalization, legislation, evolvingwork and family roles, and skill shortages and the rise of the service sector.Six important environmental challenges today are:a) Rapid change,b) Work force diversity,c) Globalization,d) Legislation,e) Technologyf) Evolving work and family roles,g) Skill shortages and the rise of the service sectorRapid ChangeMany organizations face a volatile environment in which change is nearly constant. Ifthey are to survive and prosper, they need to adapt to change quickly and effectively.Human resources are almost always at the heart of an effective response system. Hereare a few examples of how HR policies can help or hinder a firm grappling with externalchange.34

Work Force DiversityAll these trends present both a significant challenge and a real opportunity for managers.Firms that formulate and implement HR strategies that capitalize on employee diversityare more likely to survive and prosper.GlobalizationOne of the most dramatic challenges facing as they enter the twenty-first century is howto compete against foreign firms, both domestically and abroad. Many companies arealready being compelled to think globally, something that doesn't come easily to firmslong accustomed to doing business in a large and expanding domestic market withminimal foreign competition. Weak response to international competition may beresulting in upwards layoffs in every year. Human resources can play a critical role in abusiness's ability to compete head-to-head with foreign producers. The implications of aglobal economy on human resource management are many.LegislationMuch of the growth in the HR function over the past three decades may be attributed toits crucial role in keeping the company out of trouble with the law. Most firms aredeeply concerned with potential liability resulting from personnel decisions that mayviolate laws enacted by the state legislatures, and/or local governments. These laws areconstantly interpreted in thousands of cases brought before government agencies, federalcourts, state courts, and t Supreme Court.35

How successfully a firm manages its human resources depends to a large extent on itsability to deal effectively with government regulations. Operating within the legalframework requires keeping track of the external legal environment and developinginternal systems (for example, supervisory training and grievance procedures) to ensurecompliance and minimize complaints. Many firms are now developing formal policieson sexual harassment and establishing internal administrative channels to deal withalleged incidents before employees feel the need to file a lawsuit.TechnologyThe world has never before seen such rapid technological changes as are presentlyoccurring in the computer and telecommunications industries. One estimate is thattechnological change is occurring so rapidly that individuals may have to change theirentire skills three or four times in their career. The advances being made, affect everyarea of a business including human resource management.Evolving Work and Family RolesMore and more companies are introducing "family-friendly" programs that give them acompetitive advantage in the labor market. These programs are HR tactics thatcompanies use to hire and r

13 Bibliography 46 5. Executive Summary AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which was not possible in

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