Human Resource Management in Organizations

CMSE

PREPARED BY

ANJANA S

LECTURER IN CIVIL ENGINEERING

GPTC ADOOR

HUMAN RESOURCE MANAGEMENT

•

It is the management of an organizations workforce,or human

resources.

•

It is responsible for attraction,selection,training,assessment,and

rewarding of employees,overseeing organizational leadership and

culture, and ensuring compliance with employment and labor laws.

•

The function was initially dominated by transactional work such as

payroll and benefits administration due to globalization, company

consolidation, technological advancement and further research

•

Human Resource  focuses on merges and acquisitions, talent

management, succession planning, industrial and labor relations,

diversity and inclusion

OBJECTIVES OF HUMAN RESOURCE

MANAGEMENT

•

To help the organization reach its goals

•

To ensure maximum utilization and maximum development f human

resources

•

To ensure respect for human beings

•

To identify and satisfy the needs of individuals

•

To ensure recolination of individual goals with those of the

organization

•

To achieve and maintain high morale among employees

•

To provide organization with well trained and well motivated

employees

•

To increase to the fullest the employees job satisfaction and self

actualization

•

To develop and maintain a quality of work life

•

To be ethically and socially responsive to the needs of society

•

To develop overall personality to each employee in its multidimensional

aspect

•

To enhance employees capabilities to perform the present job

•

To equip employees with precision and clarity in transaction of business

•

To indicate the sense of team spirit, team work and inter-team

collaboration

Recruitment, Selection and Appointment

•

Recruitment is the process of attracting interest and applications of

vacant positions in an organizational structure

•

It involves identifying the requirements to perform duties of a

position, and advertising the position to attract suitable applicants

•

Selection is the process of choosing the best person for vacant

position

•

It includes short listing of applicants for interview, developing

questions for interview, interviewing applicants, selection on basis of

merit.

•

Appointment covers the administrative processes to place and start

the successful applicant.

•

The purpose of this function is to attract, select and appoint

experienced and qualified persons on basis of merit

•

Merit of a person eligible for appointment to a position is determined

according to nature of duties of position, the abilities, qualifications

and experiences, standard of work performances relevant to those

duties

Process

•

Vacancy arises

: it arises when an employee leaves an organization or a new

position is established within the organizational structure

•

Need to fill the position confirmed

: when a vacancy arises ,the

management reexamine the departmental structure to determine whether

job redesign will be more efficient

•

Review Job Description,Job Specifications,and Selection Criteria

•

Prepare draft for Advertising(Internal and External):

It includes brief

description of duties,essential and desirable criteria etc

•

Advertise

: Vaccany positions must be advertised to enable suitably

qualified persons to apply for position

•

Application Forms: 

it will be only be accepted on organizations prescribed

employment application form

•

Selection Committee

: The composition of selection committee is the

responsibility of the Human Resource Manager.Selection Committee

consist of 3 representatives

•

Shortlisting of Applicants

•

Conducting Interviews

•

Verifying Credentials

•

Ranking Applicants

•

Reference Checking

•

Writing Selection Report

•

Offers of appointment and starting salaries

EXTERNAL SOURCES OF RECRUITMENT

•

Management consultants

:

1.

Management consultants are used for selecting higher level staff,act as a

representative of employer

2.

They make all necessary arrangements for recruitment and selection

3.

They also take a service charge or commission

•

Public Advertisements

1.

Personal department of a company advertises vacancy in newspapers,

internet etc

2.

Advertisement gives information about company,job and required

qualities of candidate

3.

It is costly and time consuming

•

Campus recruitment:

1.

Organization conducts interview in campuses of Management

institutes and Engineering Colleges

2.

Final year students who soon get graduate are interviewed

3.

Suitable candidates are selected by organization based on academic

record, communication skills,intelligence etc

4.

This source is used for recruiting qualified,trained but inexperienced

candidates

•

Recommendations

1.

Organizations may also recruit candidates  based on

recommendations received from existing manager and sister

companies

•

Deputation Personnel

1.

Organizations may also recruit candidates  who are sent on

deputation by Government or Financial institutions or subsidary

companies

•

Employment exchanges

1.

Government establishes public employment exchanges throughout

the country.

2.

These exchanges provide job information to job seekers and help

employers in identifying suitable candidates.

•

Labour Contractors

1.

Manual workers can be recruited through contractors who maintain

close contacts of such workers, this source is used to recruit labour

for construction jobs

TRAINING OF EMPLOYEES

•

It is the field which consists of organizational activity at bettering the

performance of individuals, and groups in organizational settings

•

It provides new skills for the employee

•

It keeps the employee up to date with changes in the field

•

It aims to improve efficiency

•

It can be external or in house

MANAGING MEN

•

Employees are the most important asset of the organization

•

Quality and effectiveness of organization depends upon the quality of

people employed

•

Success of most organizations depends on employees with skills to

perform tasks to attain company’s strategic goals

•

Management defines as “that part of management which is

concerned with people at work and their relationship within an

organization”

OBJECTIVES OF PERSONNEL MANAGEMENT

•

It deals with optimum utilization of human resources within an

organization

•

It deals with creation of conditions in which each employee is

encouraged to make his best contribution to effective working of the

undertaking

•

It deals with development of mutual respect and trust between

management and workers through sound relations

•

It encourages increase in productive efficiency to workers through

training,guidance and counseling and tries to raise the morale of the

employee

LABOUR WELFARE

•

It is done for comfort and improvement of employees and is provided over

and above wages

•

Welfare keeps morale and motivation of employees high to retain

employees for longer duration

•

Welfare measures are not in terms but in forms

•

Employee welfare includes monitoring of working conditions,creation of

industrial harmony by infrastructure for health,industry retains,insurance

against disease,accident and unemployment of workers and their families

•

Labour sector addresses socio-economic aspects affecting labour

welfare,productivity,living standards of labour force and social security

•

Provides adequate labour force of appropriate skills

TRADE UNION / LABOUR UNION

•

It is an organization of workers who have banded together to achieve

common goals such as protecting the integrity of its trade, achieving

higher pay, increasing number of employees, better working

conditions

•

Trade union through its leadership bargains with the employer on

behalf of union members, and negotiates labour contracts with

employers

•

The main aim of this organization is to “maintain or improve the

conditions of their employment”

•

This may include negotiation of wages, work rules, complaint

procedures, rules governing hiring, firing, and promotion of workers,

benefits, workspace safety and policies

•

Agreement negotiated by a union are binding on the rank,and file

members and employer and in some cases on other non member

workers

•

Trade unions have a constitution which details the governance of

bargaining unit,and have governance at various levels of government

depending on industry

STORES

•

Materials are purchased only for works in progress and no reserve of

stock should be kept with special sanction

•

Organization of stores is necessary when:

1.

Worksite is far way from place of material availability

2.

Materials required are scarce in nature

3.

It becomes difficult to get the materials or tools and plant to the site

when actually required due to climatic conditions

4.

Progress of work is very much affected for little amount of delay in

supplying material or equipment

•

Divisional officer is responsible for proper arrangements made

throughout his division for

1.

Procurement of stores

2.

Their custody and distribution according to requirement of works

3.

Their disposal when rendered surplus or unserviceable

Stores includes issueable articles,articles of dead stock of the

nature of the plant,machinery,instruments,equipments,fixtures etc

Classification of Stores

1.

Stock or General stores

2.

Tools and plants

3.

Road metal

4.

Materials charged direct to works

STOCK

•

Common use materials in construction work such as steelrods,

cement, joist, AC sheets etc are 

kept in stock and issued when

required for execution of work

•

Advantages of keeping a stock for such articles are

:-

1.

Procurement (

കരസ്ഥമാക്കല്‍

) of same item is not repeated for different

works

2.

Delay in the progress of the work can be avoided

3.

Use of approved materials of the prescribed specifications is ensured

•

Unnecessary accumulation of material may

1.

Cause deterioration in storage

2.

Increase the capital investment cost

3.

Result in increased costs of shortage and handling

•

Maximum amount of materials kept in a stock in a division is fixed and known as

“Reserve Stock Limit”

•

This limit is fixed by government, keeping into consideration the normal

requirements of stock

•

If construction work in a division increases substantially over the normal activity,

a temporary reserve limit may be sanctioned for extra activity

Receipt of materials on stock

•

Materials are received on stock from the following sources:

1.

Suppliers or contractors: Most supplies are procured by direct purchase

from suppliers and contractors

2.

Other sub-divisions, divisions, and departments: Supplies are obtained

from these sources when available materials exceed their requirements

3.

Public Work Central Stores: Some of the items required for execution of

works may not be available in subdivision, stock may be obtained from

central stores

4.

Department manufacture: Some of the stock items may be received from

departmental manufacturing units

5.

Works/Buildings:Some items may be obtained by recoveries from

works/buildings that are dismantled

Record of receipt of stock

•

All materials received must be examined ,weighed, counted or measured

•

Record of detailed measurement is kept in M-Book and total number of

quantity received should be entered in “Register of stock receipts”

•

Records can be treated as very important records

•

Bincards are made where the material is stored and contains date wise

record of receipts, issues and balances of each item of stock

•

Detailed information about stock position withdrawl,rate,the time when

purchase order is to be placed is entered in bincard

•

Bincard is tagged to each item of stock giving details of reciept,issues and

balances on any day

HEAVY PLANT AND MACHINERY

•

Proper selection of heavy plant and industry  enables construction

more speedy and economical

•

Problem of selecting most suitable plant and machinery for any

construction project is an important task and its planning is a highly

technical job

•

The aim is to increase production ,simplify operations,and reduce

maintenance

•

Contractor may not afford to have all types or sizes of equipment

which are required for execution of his works

,the nature of the

project, cost of the equipment

MATERIALS HANDLING

•

It is a technique to move, transport,store or distribute materials with

or without mechanical appliances

•

Due to several complexities in construction process,managers ad

engineers must be aware of material handling techniques hence unit

cost of construction can be cut down

•

All material handling and storage activities should be planned to

obtained maximum overall operating efficiency

•

The main objective of planning material movement should be to save

money,time,and men

TRANSPORT VEHICLES AND INSPECTION OF

VEHICLES

•

Mobility accounts for unevenness in distribution of goods and other

construction materials which have to be moved from surplus areas to

scarcity

•

Construction manager is responsible for arrangement maintainances

and inspection of vehicles so that construction activity is carried out

without wastage of time and money

•

Mechanically propelled vehicles are driven by trained and competent

persons

TOOLS AND PLANTS

•

The machinery,equipment,vehicles,and instrument required for use as

tools and plants

•

Tools and plants are classified into:-

1.

Generally or ordinary tools and plants

: These are required for

general use in the divison

2.

Specially machinery and equipment

: These are required for general

use in the divison and procured for use in specific works

•

Cost of general tools and plants is charged to minor head “tools and

plants”and cost of special machinery is charged to work concerned

Materials at site account(MAS account)

•

In case of minor works,not for heavy transactions,an account in form

PWD VI-83 should be maintained for all department materials

brought on a site of a work

•

Detailed account of material issued to the work is called as “materials

–at- site account”

•

All department materials should be brought on site of work for use on

that work ,from any source should be entered as receipts in “Material

–at-site-accounts” on a receipts giving reference to measurement

book

•

The register of material-at-site account should show separately for each material:

1.

The estimated requirement

2.

The issue rate

3.

Reciepts, issues and balances month to month

4.

Net issues at the end of each month

•

After completion,theoritucal calculation of quantities of materials is based on the magnitude of

work executed

•

These are recorded in part I and partII indicating surplus or deficit as per actual consumptions and

theoretical calculations

•

Part III shows disposal of material remaining used the unused material is disposed in the

following:

1.

Transfer to stock,provided the items are serviceable and likely to be required for other works

2.

Transfer to other works in progress

3.

Sale of the items that are no longer required or not fit for use

Borrowing and lending of tools and plants

•

In cases where contractor can either or for a department to take all tools

and plants required due to lack of finance,

•

in such cases tools and plants are borrowed from hire basis from sources

when they are available

•

Department can supply them on hire basis to the contractors for

completing the work

•

Hire charges are worked out on capital cost,out turn of

equipment,depreciation,useful life of machinery,maintainance cost and

operational cost

•

After completion on special tools and plants used or when the tools and

plants no longer required for use thereon the divisional officer may transfer

them

Safe custody of stores

•

Divisional engineer is  responsible for initial procurement  its safe

custody ,proper storage,distribution and disposal of surplus stores

•

In PWD the stores is  held by section officer and he is responsible to

divisional engineer for safe custody and proper distribution

,accounting and submission of reports and return

•

Materials received are expected to be stored in stores building

•

Materials or equipment received are first checked against orders and

entered in M-book by section officer,materials are handed over to the

store

•

Store keeper maintains proper record of receipts and issues

Central stores

•

It is used in large projects as a ready sources for supplying common materials

required for different type of works

•

Advantages

•

When projects are located in remote places time delay can be avoided for

procuring and transporting required materials

•

Delay in progress of work can be reduced by essential materials in central stores

•

In case of non availability of materials or scarcity of materials at the required

time,central stores issues materials at required time

•

In future demand or rise in cost such materials are procured by government

stores kept in reserve stock

•

Various tools and plant,equipment and machinery may be procured and

accounted by the central stores

•

Various machinery works in project becomes necessary to keep them

in good condition,hence spare parts are procured from central stores

•

Day to day maintainance ,to attend minor repairs a workshop is

organized in central stores

•

Explosives will be kept in central stores to avoid time delay in

execution of works such material require liscence and other

formalities reduces the progress of work

Procedure for taking delivery from station

yards

•

Manufacturers or suppliers of equipment and machinery will be send by

trains

•

After booking the equipment for dispatch, railway receipt is send to

consignee to take delivery by submitting railway receipt to railway

authorities

•

The consignee presents railway recipt to the concerned railway station

after signing the rear side of railway receipt

•

Credit notes

•

In government departments,freight charges for transport of material is

paid through credit note in prescribed form

•

Transactions adjusted by Accountant General

•

Indemnity bond

•

Suppliers of equipment or materials send railway receipt by post to

the concerned after booking the material with railways

•

In case the railway recipt is delayed or lost in the transit the

consignment is cleared by executing bond in favour of railways

•

The bond is to be executed by consignee called indemnity bond

•

Wharfage and Demurrage charges

•

If the consignments are not taken from station yard within a

stipulated period from the time the consignment is available for

delivery the railway department penalty called 

wharfage charges

•

If a wagon of materials for a consignee is not cleared within 6 hours

of day light period from the time the wagon is ready for unloading the

railway charges penalty called 

demurrage charges

ISSUE OF MATERIALS

•

Issue of materials from stock for the following purposes:

1.

For use of works either by contractors or departmentally

2.

For dispatch to other subdivisions or departments

3.

For sale of contractors ,employees and outside parties

Issue of materials to contractors

•

Items like cement ,steel,asphaltic materials are issued to cotractors by the

government from stock

•

The contractor should specify:

1.

Full description of materials to be supplied by the government for use on

the works

2.

Place of delivery

3.

Rate,including storage rate, to be charged to contractor for each iem

4.

Contractor shall be responsible for obtaining items and making payment

at the rate specified by deduction of bills

5.

No carriage or incidental charges are borne by government beyond place

of delivery

INDENTS

•

Materials should be issued from stock only on the recipt of an indent

,form 7(PWD VI-II) signed by divisional or sectional officer

•

Indents on stores are demands on store keeper signed by authorized

persons to issue a bearer to charged to a particular job or department

•

Indents contains date,necessary particularls of stores required such as

quantity and description order or job number, signature of officer

making it, intial of issuing store keeper, signature of person receiving

the material

•

Store keeper examine the indent and sign in space provided

INVOICE

•

STOREKEEPER sign the invoice attached to indent according to supply

•

An entry is made in the register of stock issues

•

The indent is returned to indentending officer and signature of

receiving officer is done

•

Invoice is treated as voucher

Bincard

•

This is a card attached to each rack,shelf or other container for stores

•

A record of materials enetering or leaving bin and balance of

materials in hand is kept in the card

•

Cards are entered by storekeeper

•

They should agree with quantities of material and should keep

relevant account in store ledger which allows storekeeper to remind

the fresh stock when minimum stock has reached

•

Bincards are checked by inspecting officers with their initials on cards

and note discrepancies

Unstamped receipt

•

In PWD, unstamped receipts are used for acknowledgement of stores

and materials issued to contractors

•

While issuing contractors are duly signed

•

 no stamp is required when value of materials issued is more than Rs

500/-

•

Recipts are taken in tripilicate,2 of them are sent to divisional office

along with abstract of stock issues

Stock register

•

Divisional office maintains day to day record of both quantity and

Value of transactions relating to each item of stock

•

Separate ledgers are maintained for each subhead

•

Register has different section of pages for different articles

•

When ‘good received sheets’ are posted in the priced stores ledger

•

Provision is also made for a monthly total of the value of

receipts,issues,and balances of each item

•

Pages of stock receipt and stock issues should be machine numbered

and entries are checked by atleast 10% by divisional engineer

PERIODICAL INSPECTION OF STORES

•

Executive engineers shall check all stocks once in a year

•

All stores should be counted by an officer not below the rank of sub divisional officer

•

All articles of stock(not tools and plants) are not required during following 12 months

should be reported to executive engineer

•

Verification should be done in presence of subordinate authority responsible for custody

of stores

•

If any discrepancies found during verification, should be brought to account immediately

•

All unserviceable stores found during verification should be reported to the authority  to

write off the terms

•

Balance of stores should not be held in excess of requirements for a reasonable period

•

A certificate of verification of stores is done by verifying officer

Irregularities in stock account

•

Items not recorded in bincards with entries of the indents

•

Stock issued to contractors not recorded in contractor ledger

•

Transactions not recorded at time of issue/receipt in the order of their

occurrence

•

Shortage or surplus not adjusted

•

Corrections not initialed

•

Transactions not duly supported by indents

•

Issues not acknowledged by intender on the copy of intent is retained

by stores in charge

Accounting of shortages or surplus

•

In shortage or deficit, value of stores not to be debited on

‘Miscellaneous PW Advance’ for pending recovery

•

When loss is unrecoverable ,the head ‘Miscellaneous PW Advance’ is

cleared by debit to work for which stores were collected ,if accounts

still open

•

Values of stores found surplus should be credited as revenue receipt on

concerned head of account

Loss of Stores

•

All losses of stock should be investigated,necessary steps taken to obtain sanction

of competent authority to write off

•

In serious losses ,Divisional Engineer should conduct departmental enquiry,

record the evidence, his findings and his conclusions as regards the responsibility

and capacity of person

•

An immediate report of loss of stores must be made to police,all steps for recovery

of property

•

When tools are lost by contractors or departmental employees, cost to be

recovered should be replacement value includes book value of articles lost

including storage charges and an addition of 10% to cover charges

Surplus stores

•

All surplus stores divided into

1.

Serviceable

2.

Unserviceable

•

Stores including tools and plant become unserviceable,a report made

in survey report form

•

All unserviceable articles should be sold in public action and sanction

of competent authority

•

All serviceable surplus materials at worksite ,if useful on otherworks

shall be transferred to works in progress or brought on to stock

account

•

Executive engineer prepares a half yearly list in form no 11-15-A of

serviceable surplus materials not required in his division

•

The list is circulated to neighbouring divisions

•

Executive engineer checks, whether all the serviceable surplus

material are used to best advantage to works in divisions which have

been circulated

•

Any articles if not in use in surplus list of divisions within 1 year from

date ,then executive engineer take action

•

They are sold by public action with sanction of competent authority

Write Off

•

Stores of any type become unserviceable a report is made on Form 18

‘Survey Report of Stores’

•

In report all proper explanations is given including period articles have been

in store or in use,cause of deteoriation must also be started

•

Report is sent to competent authority for further orders

•

Stores are written off after a sanction and entry made in store records

reducing balance by the quantity written off ,giving reference to sanction

•

Losses are made good either by recovering the cost or by writing off

•

Authorities shall write off in ‘Survey Report’

•

In PWD ,executive engineer write off unserviceable stores after preparing

‘Survey Report’

M

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M

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It is the process of planning ,organizing and

controlling the flow of materials from initial purchase

through internal operations to service point through

distribution

                  OR

It is a scientific technique concerned with planning,

organizing, control of flow of materials,from initial

purchase to destination

Aim of MATERIAL MANAGEMENT

•

To get the right quality

•

To get the right quantity of supplies

•

To get at the right time

•

To get at the right place

•

To get for the right cost

Material management includes

•

Selection of materials as per standards

•

Optimum use of materials

•

Purchase costs

•

Order costs

•

Holding costs

Selection of materials as per standards

•

BIS standards and publications specify the requirements for

constituent materials used in concrete,aggregates and masonry

•

Provide guidance for construction industry professionals to ensure

appropriate selection of materials and good workmanship

•

Concrete is a combination of aggregate and cement binder

•

It is used for pavements, building structures, foundations,motorways

and roads, overpasses, parking structures, block walls, footings for

gate, fences and poles

Points considered for selection of materials

•

Primary consideration shall be given to materials with good market

availability, documented fabrication and service performance

•

Number of different material types shall be minimized considering costs,

interchangeability,  and availability of spare parts

•

Design life

•

Operating conditions

•

Effect of external and internal environment, including compatibility of

different materials

•

Evaluation of failure probabilities, failure modes, criticalities and

consequences

•

Attention shall be paid to any adverse effects material selection may have

on human health, environment, safety, and material assets

Optimum use of materials

•

General objective of inventory control is to minimize the total costs of

keeping the inventory while trade off make the major categories of

cost

1.

Purchase Cost

2.

Order cost

3.

Holding cost

4.

Unavailable cost

•

These cost catagories are interrelated reducing cost in one category

may increase cost in others

Purchase cost

•

It is the unit purchase price from an external source including transportation

and freight costs

•

For construction purposes,it is common to receive discounts for bulk purchases

•

These reductions may reflect manufacturers marketing policies, economies of

sale in material production, scale economies in transportation

•

Unit price of material depends on bargaining leverage,quantities and delivery

time

•

Orders in large quantities results lower unit prices,increases holding cost and

cashflow

•

Transportation cost are affected by shipment sizes and other factors

•

Avoiding transshipment is another consideration in shipping cost

•

Reduction in shipping cost is a major objective,requirements of delicate

handling favours expensive mode of transportation to avoid breakage and

replacement cost

Order cost

•

It reflects the administrative expense of issuing a purchase order to

an outside supplier

•

It includes expenses of making requisitions, analyzing alternative

vendors, writing purchase orders, receiving materials, inspecting

materials, checking on orders, maintaining records

Holding Cost

•

Holding cost are the result of capital costs, handling, storage, obsolescence, shrinkage and

deterioration

•

Capital cost results from the opportunity cost or financial expense of capital tied up in

inventory

•

Once payment of good is made, borrowing cost are incurred, or capital must be diverted from

other productive uses

•

Capital cost incurred equal to the value of inventory multiplied by interest rate

•

Handling and storage represents movement and protection charges incurred for materials

•

Storage costs include disruption caused to other project activities

•

Obsolescence is the item lose value due to changes in specifications

•

Shrinkage is the decrease in inventory over time due to theft or loss

•

Deterioration reflects a change in material quality due to age or environmental degradation

Unavailability cost

•

Unavailability cost is when a desired material is not available at

desired time.

•

In manufacturing industries,cost is called stock out or depletion cost

•

Shortages may delay work,wasting labour resources,delaying

completion of entire project