What are the 7 categories of HR activities?

HRM in people centric industry is concerned with the ‘people’ dimensions of the organization. In order to achieve the objectives as stated above, HRM must perform certain functions. Generally, it is said that to achieve the organizational objectives, retailers must set up a proper correlation between the objectives and the functions. Usually a particular set of functions helps realize specific objectives.

For example, personal objectives are thought to be realized through training & development, performance management and compensation & benefits functions, while on the other hand, organizational objectives are achieved through human resource planning, employees’ relations, recruitment, selection, training, compensation and managerial relations functions as discussed in figure 18.2.

One point should be noted in this regard that most of the Asian and African countries are still dominated by local/kirana/unorganized shops. Likewise, in India, we have over 12 million ‘kirana’ stores. All the employees of that shop report to him or her. Be it strategic decision or day-to-day operations of the establishment are taken by the proprietor. All issues related to recruitment, selection, promotion, training & development, hiring, firing and so on depend upon the proprietor’s sole discretion.

Actual need for HRM is felt by big retailers like Big Bazaar, Reliance Mart, Pantaloons, Shopper’s Stop, etc. Further, the number of functional areas also varies from company to company according to nature, size and merchandise offering.

Following are the common human resource functions, any typical retail organization will be having:

1. Job analysis and job design

2. Recruitment and selection of retail employees

3. Employees’ training and development

4. Performance management

5. Compensation and benefits

6. Labor relations

7. Managerial relations

These seven human resource areas and their associated functions share the common objectives of an adequate number of competent employees with the abilities, experience, knowledge and skills required for fulfilling organizational goals. Though a human resource function can be assigned to one of the seven areas of human responsibility, some functions serve a variety of objectives. For example, performance management besides motivating the retail employees leads to employees’ development as well as compensation and benefits. Similarly, compensation and benefits function facilitates retention, training and development and also serves to have cordial labor and managerial relations.

These human resource functions are expressed as under:

1. Job analysis and job design:

Job analysis is the process of describing the operations, duties and responsibilities of the job. In order to recruit retail employees on a scientific and rational basis, it becomes necessary to determine in advance a standard of personnel with which interested candidate can be compared. This standard must establish the minimum acceptable qualities necessary for the accomplishment of tasks by retail employees.

Simple stated, the process through which these qualitative requirements (standards) are determined is known as Job analysis.

Various experts have defined Job Analysis as under:

In the words of Edwin B. Flippo, “Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job”.

In the words of John A. Shbim, “Job analysis is the methodical compilation and study of work data in order to define and characterize each occupation, in such a manner as to distinguish it from all others”.

According to Michael J. Jucius, “Job analysis refers to the process of studying the operations, duties and organizational aspects of jobs in order to derive specifications, or as they are called by some job descriptions”.

According to Scott Clothier and Spriegal, “Job analysis is the process of critically evaluating the operations, duties and responsibilities of a specific job”.

Job Analysis Process:

The process provides information about what the job involves and what human features are essential to carry out these activities. This information becomes vital to decide what sort of people to recruit and hire. The data derived from job analysis process is beneficial for estimating the value and appropriate compensation for each job.

The reason behind this is the belief and practice that compensation generally depends on the job’s required skill and education level, safety hazards, degree of responsibility, and so on all these factors that are assessed through job analysis. This ultimately provides the base for determining the relative worth of each job so that each job should be properly classified.

Hence, job analysis is a data collection function performed by the HR department that includes the following steps:

The above mentioned steps are discussed as under:

(i) Collection of factual materials:

The first step of job analysis process includes collecting factual information relating to the job.

This task is usually accomplished in four ways:

(a) With the help of structured questionnaire

(b) Using narrative descriptions

(c) Observations, and

(d) By interviews

Two types of information are collected through above mentioned four techniques:

(a) Belonging to the job environment, i.e. its physical environment such as use of computers, sitting arrangements, comforts, lighting, restrictions etc; its financial obligations (salary, bonus, commission, DA, TA, fringe benefits, incentive schemes etc); its social environment (whether job is individual or in groups, shifts, working hours, team work).

(b) Belonging to employees’ qualities:

It includes following qualities of employees performing retail tasks:

i. Physical demands: number of working hours, store job/field job, physical (muscular energy).

ii. Intellectual demands: degree, diploma, working experience, fresher, problem solving ability.

iii. Personality demands: look, height, spoken language, humbleness, ability to listen, working under stress, employees’ complaint handling.

(ii) Completing job description blank:

After collecting the information, job analysis puts such information in a standard job description form as a comprehensive draft which shows full details of the activities of the retailing job. As per the nature and format of the retail organization, separate forms may be used for various activities in the job and may be compiled later on. In actual, the whole task of job analysis depends upon these forms, which are regularly consulted as reference guide for the future planning tasks.

(iii) Preparation of the job specifications:

Job specifications are also prepared on the basis of information collected through data collecting techniques. Job description basically refers to a statement of minimum acceptable qualities of a candidate whose selection should be made.

(iv) Preparation of Report:

This report indicates various activities to be performed by the retail staff and expectations from them. It is prepared by the job analyst on the basis of information collected. The report is then submitted to the HR department for its suggestions and amendments.

(v) Approval:

The report submitted by the analyst and reviewed by the HR department may now be revised by the top executives for:

(i) Competitive policies

(ii) Comments of HR department (if any)

(iii) Views of Trade Unions (if applicable)

(iv) Mission and vision of the organization

In some organizations, such drafts are usually approved by the HR manager while in some organizations by the top executive, who has the ultimate responsibility to finalize it.

Note:

In actual, it is the prime duty of the retail store manager to prepare the job design since he/she is responsible for conducting day-to-day activities of the store and also the reason for retail success. But it has been seen that in most of the cases, job design is drafted by the HR department may be in consultation with the store manager.

2. Recruitment and selection of retail employees:

The success of a retail organization largely depends upon the team of efficient store employees who are chosen out of a number of applicants for the job. Recruitment is a very first step in the employment process, which aim at obtaining and maintaining an efficient store staff (floor employees) as a means of achieving sales targets.

Recruiting employees basically involves three major sub-functions:

(i) Recruitment,

(ii) Selection, and

(iii) Placement on the job.

Recruitment defined:

According to Edwin Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for the jobs in the organization”.

According to Werther and K. Davis, “Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected”.

Theoretically, recruitment is the positive process of employment aiming at searching for the prospective employee and inspiring them to apply for jobs in the organization. In short, it increases the number of applicants and number of posts vacant and thus provides an opportunity to the management to select the suitable person.

Selection defined:

Selection is the process by which qualified and suitable store employees are selected and placed on the jobs according to their capabilities and organization’s requirements. Thus, it is a tool in the hands of the management to differentiate the suitable and unsuitable applicants by applying various techniques such as group discussions, personal interviews, game tests etc.

According to Thomas stone, “Selection is the process of differentiating between applicants in order to identify those with a greater likelihood of success in the job”.

According to Dale Yolder, “Selection is the process in which candidates for employment are divided into two classes, those who are to be offered employment and those who are not”.

Selection procedure employed in large retailing concerns:

Selection is a long process beginning with receipt of applicants and ending with the final placement. The selection process varies from organization to organization and also between two different positions.

For example, in a retail company, when they are looking for entry level sales personnel, they tend to reply on educational institutions, advertisements and employee recommendations. Moreover, when a retail company is looking for middle-management positions, they are likely to use employment agencies, competitors, advertisements and current employees. The recruitment process can be very costly. It takes a great deal of time to set up an effective recruitment process.

Therefore, the company has to carry this job out in a systematic way. For instance, selection procedure for store accountants, store supervisors, store managers will be long drawn and rigorous as compared to those applicants who apply for floor staff position. The various steps in the selection of desirable employee in the organization should be decided by the top management.

Note: The applicants are screened out at each step of selection process and those who are found suitable and fit for the job, ultimately are selected. At any stage, any unfavorable criteria like unfavorable test scores or physically unfit will simply lead to rejection of employees.

Following are the commonly used steps involved in the selection of retail employees:

3. Training and development:

After selecting the most suitable and eligible candidates in the organization, the next step of HR department are to arrange for their training. All types of jobs require some type of training for their efficient performance and therefore, all employees, new or old should be trained or re-trained from time to time.

Further, the way new and new retail formats are emerging, new developments are taking place throughout the globe, it becomes imperative for any retail organization to systematically plan for the training program aiming at increasing the knowledge, skills, abilities and aptitude of employees to perform the new competitive tasks.

4. Performance Management:

After selected, training and motivation, the next task, a HR manager has to perform is to evaluate the personality and performance of each employee by quantitative factors (such as targets achieved). In actual, with the help of performance management, the management through HR department would like to find out how effective it has been hiring and placing employees. Performance management allows retailers gain access to the reliable, timely information that drives better decisions.

The term ‘performance management’ and ‘performance appraisal’ are used synonymously by few authors and subject experts. But the retailers throughout the globe believe that performance management is a broader term that may include performance appraisal too.

A typical performance management system involves following actions:

(i) To develop job descriptions clearly.

(ii) Selecting right employees at right jobs with right selection process.

(iii) To negotiate requirements and accomplishment based performance standards, outcomes and measures as and when required.

(iv) To provide appropriate training, education and induction.

(v) To facilitate ongoing coaching and feedback.

(vi) To conduct quarterly/half yearly performance development discussions.

(vii) To design appropriate compensation and appraisal system that rewards employees for their outstanding contributions.

(viii) To provide career development opportunities for employees.

(ix) To assist with exit interviews to understand why loyal employees leave the organization.

5. Compensation and Benefits:

Compensation and benefits represent a substantial part of total cost in most of the organizations. Compensation is not only the concern of the organization but is equally important for the workers and employees to maintain their social image.

The main objective of such compensation and benefits are to control the costs, to establish a fair and equitable remuneration to all, to utilize the compensation and benefits device as an incentive for greater employee productivity and to establish a satisfactory public image.

Hence, it becomes imperative for the HR department of any retail business to have clear-cut policy guidelines regarding employees’ compensation and various benefits. For effective implementation of compensation plans, HR department should be aware about the benefits given to the employees in similar kind of organizations.

The attitude of the employees towards his employer will usually be determined by the extent to which he/she is satisfied with the wages he/she is getting, though it is not the only reason for employee satisfaction. Even motivation comes after an employee is satisfied with his/her basic compensation. It is also the best way to satisfy the employee at the lower and middle level of management.

6. Labor Relations:

In modern days, retailing is carried on a large scale where hundreds of employees work together. The HR manager is basically responsible for the control of labor (workers and employees) through human relation approaches. Employees differ in nature and therefore, it is but natural that due to any communication gap, labor relations may spoil within the organization. Therefore, the HR department should know the proper policies, rules and regulations with regard to labor relations.

Harmonial relationships are necessary for both retailers and employees. It not only results in industrial peace but also leads to better and higher sales targets. Most of the retail organizations these days besides having HR department also take the services of legal experts (practitioners) for consultation from time to time. Further, hiring legal experts within the organization has become necessary considering that each state has its different set of rules for managing HR with some standard rules.

7. Managerial Relations:

The employment relationship, irrespective of nature of organization, usually has two parts: labour relations and managerial relations. The former which covers the price of labour is more obvious. The labour relation is also known as ‘market relations’. The managerial relations on the other side are the relationships that define how the process takes place.

Labour relations describe the price for a particular shift (a set of number of hours) but managerial relations determine how much work is performed in that time, at what specific task or tasks, who has the right to define the tasks and change a particular mix of tasks and what penalties will be deployed for any failure to meet these obligations (Clegg 1979:1).