Human Resource

Management
Compiled By: Prof. Shrikant S. Ashtankar
 INDEX

Sr. No. Content Page No.

1 Course Details 1

2 Question Paper Pattern 1

3 Syllabus 2

4 Module – 1 Notes 3-4

5 Module – 2 Notes 5-6

6 Module – 3 Notes 7-8

7 Module – 4 Notes 9-10

8 Module – 5 Notes

8 Question Bank 11-12

 Course Details – OM 1
Course Name: Human Resource Management

Course Code: 2T3 Semester: II Type of Course: Core

Instruction Hours: 30 Tutorial Hours: 10 Total Hours: 40

End Semester written examination marks: 80

Internal Assessment Marks: 20
Total Marks 100
Credits: 4

Question Paper Pattern

(A) based on Module 1

Q.1 OR [16Mrks]
(B) based on Module 1

(A) based on Module 2

Q.2 OR [16Mrks]
(B) based on Module 2

(A) based on Module 3

Q.3 OR [16Mrks]
(B) based on Module 3

(A) based on Module 4

Q.4 OR [16Mrks]
(B) based on Module 4

(A) based on Module 5

Q.5 OR [16Mrks]
(B)based on Module 5

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 Syllabus
Course Name: Human Resource Management

Module Content Reference Books

Introduction, Nature, scope,  Human Resource Management –
objectives, importance and functions Text and CasesDr.S S Khanka,
of HRM , Human resource as an asset S.Chand Publication, Ch.1,3 Human
in organization; Difference between Resource and Personnel
Personnel Management and Human Management – Text and cases, K.
Module
Resource Management, Roles and Aswathappa, Publication - McGraw-
1
Qualities of HR Manager ; human Hill Publishing co. ltd. Ch-1,3
resource management in dynamic Essentials of Human Resource
environment ; Introduction to Management & Industrial Relations
Strategic HRM. Organizational and – P.Subba Rao, 3rd revised edition –
HR Strategies. Himalaya Publication- Ch-1,2
 Human Resource and Personnel
Management – Text and cases, K.
Job Analysis – Meaning, Uses,
Aswathappa, Publication - McGraw-
Process and methods of collecting data
Hill Publishing co. ltd. Ch-5
for job analysis, Job Description, Job
Essentials of Human Resource
Module Specifications & Role Analysis,
Management & Industrial Relations
2 Concept of Job Design, Factors
– P.Subba Rao, 3rd revised edition –
affecting Job Design, Techniques of
Himalaya Publication- Ch-3 Human
Job Design, Cases and Exercises in
Resource Management – Text and
understanding Job Analysis.
CasesDr.S S Khanka, S.Chand
Publication, Ch.5
 Human Resource Management –
Text and CasesDr.S S Khanka,
S.Chand Publication, Ch.4,6,7,8
Human Resources Planning; Need,
Essentials of Human Resource
importance & Objectives of Human
Management & Industrial Relations
Module Resources Planning; Factors affecting
– P.Subba Rao, 3rd revised edition –
3 HRP; Recruitment and Selection—
Himalaya Publication- Ch-4,5,6
Meaning, Sources and Process;
Human Resource and Personnel
Induction and Placement
Management – Text and cases, K.
Aswathappa, Publication - McGraw-
Hill Publishing co. ltd. Ch-4,6,7,8
 Essentials of Human Resource
Introduction of Training; Objectives Management & Industrial Relations
and Importance of Training; Training – P.Subba Rao, 3rd revised edition –
Process, Training Needs Himalaya Publication- Ch-9,10
Identification. Types and Techniques Human Resource Management –
Module
of Training and Development; Text and CasesDr.S S Khanka,
4
Evaluation of Training, S.Chand Publication, Ch.10,11
Management/Executive Development Human Resource and Personnel
Programs-Need and Importance & Management – Text and cases, K.
Objectives Aswathappa, Publication - McGraw-
Hill Publishing co. ltd. Ch-9

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Performance Appraisal- concept, objectives, Essentials of Human Resource Management
Importance, Methods; Potential Appraisals & Industrial Relations – P.Subba Rao, 3rd
Compensation Management- Concept and revised edition – Himalaya Publication- Ch-
components; Job Evaluation; Components 8,11,14, 15,16,19 Human Resource and
of salary, incentives, bonus, ESOPs, Fringe Personnel Management – Text and cases, K.
Benefits Ancillary Topics- Career Planning Aswathappa, Publication - McGraw- Hill
& Development, Employee Separations, Publishing co. ltd. Ch10,11,12,13,21,2
Downsizing & Outplacement, HRIS,
Industrial Relations.

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 Module – 1
Nature Scope Objective
Topics Covered
1. Concept
2. Nature scope objective
3. Functions of HRM
4. HR strategies
5. HRM dynamic environment
1. Concept
1. Concept

Introduction:
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in organizations.
Human resource management is designing management systems to ensure that human talent is
used effectively and efficiently to accomplish organizational goals. HRM is the personnel
function which is concerned with procurement, development, compensation, integration and
maintenance of the personnel of an organization for the purpose of contributing towards the
accomplishments of the organization’s objectives. Therefore, personnel management is the
Planning, Organizing, Directing, and Controlling of the performance of those operative
functions (Edward b. Philippo). According to Dessler (2008) the policies and practices
involved in carrying out the “people” or human resource aspects of a management position,
including recruiting, screening, training, rewarding, and appraising comprises of HRM.

1] Nature of HRM
HRM is a management function that helps managers to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management Functions and Principles. The functions and
principles are applied to acquiring, developing, maintaining and providing remuneration to
employees in organization.

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2. Decision Relating to Employees must be Integrated. Decisions on different aspects of
employees must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an
organization will result in betterment of services to customers in the form of high-quality
products supplied at reasonable costs.

4. HRM Functions are not Confined to Business Establishments Only but applicable to
nonbusiness organizations such as education, health care, recreation and like. HRM refers to a
set of programs, functions and activities designed and carried out in order to maximize both
employee as well as organizational effectiveness.

2] Scope of HRM:

The scope of HRM is indeed vast. All major activities in the working life of a worker – from
the time of his or her entry into an organization until he or she leaves the organizations comes
under the purview of HRM. The major HRM activities include HR Planning, Job analysis, Job
design, Employee hiring, Employee and executive remuneration, Employee motivation,
Employee problems, Industrial relations and prospects of HRM.
These are given below:
Human Resource Planning
Design of the Organization and Job
Selection and Staffing
Training and Development
Organizational Development
Compensation and Benefits
Employee Assistance
Union/Labour Relations
Personnel Research and Information System

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3] Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and willing workforce
to an organization.
1] Human capital: Assisting the organization in obtaining the right number and types of
employees to fulfill its strategic and operational goals
2] Developing organizational climate: helping to create a climate in which employees are
encouraged to develop and utilize their skills to the fullest
Human Resource Management
3] Helping to maintain performance standards and increase productivity through effective job
design, providing adequate orientation, training and development providing performance
related feedback, and ensuring effective two-way communication.
4] Helping to establish and maintain a harmonious employer/employee relationship.
5] Helping to create and maintain a safe and healthy work environment.
6] Developing programs to meet the economic, psychological, and social needs of the
employees and helping the organization to retain the productive employees.
7] Ensuring that the organization is in compliance with provincial/territorial and federal laws
affecting the workplace (such as human rights, employment equity, occupational health and
safety, employment standards, and labour relations legislation).
8] To provide organization with well-trained and well-motivated employees.
9] To increase the employees satisfaction and self-actualization.
10] To develop and maintain the quality of work life.
11] To communicate HR policies to all employees.
12] To help maintain ethical polices and behavior.

4] Functions of HRM
The functions are responsive to current staffing needs, but can be proactive in reshaping
organizational objectives. All the functions of HRM are correlated with the core objectives of
HRM.

1] The basic HRP strategy is staffing and employee development.

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2] Human resource planning (HRP) function determine the number and type of employees
needed to accomplish organizational goals. HRP includes creating venture teams with a
balanced skill-mix, recruiting the right people.
3] Equal Employment Opportunity: Compliance with equal employment opportunity (EEO)
laws and regulations affects all other HR activities.
4] Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to fill
jobs in an organization. Job analysis, recruitment and selection are the main functions under
staffing.
5] Talent Management and Development: Beginning with the orientation of new employees,
talent management and development includes different types of training. Orientation is the first
step towards helping a new employee to adjust himself to the new job and the employer.
5] Total Rewards: Compensation in the form of pay, incentives and benefits are the rewards
given to the employees for performing organizational work. Compensation management is the
method for determining how much employees should be paid for performing certain jobs.
Human Resource Management
7] Risk Management and Worker Protection: HRM addresses various workplace risks to ensure
protection of workers by meeting legal requirements and being more responsive to concerns
for workplace health and safety along with disaster and recovery planning.

8] Employee and Labor Relations: The relationship between managers and their employees
must be handled legally and effectively. Employer and employee rights must be addressed.
People are most Important asset to any organization. No operation is successful without the
best people in the right positions. The people who work at a company are really the ones that
make it function. They are a company's greatest asset, more important than real estate or
patents.

10 Reasons why a business’s most valuable asset is an employee

1. They fill knowledge and skill gaps
2. They deliver goods or services to customers
3. They are the public face of a business
4. They often become natural ambassadors

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5. They understand the business and its customers
6. They drive profits
7. They drive innovation
8. They attract new employees
9. Their uniqueness is irreplaceable
10. They help businesses grow and endure
9] The Roles of the HR Manager
Following are some of the roles the HR Manager plays in ensuring smooth functioning of the
organization -
Conducting interviews and selecting the appropriate candidates
Manage the entire recruitment and placement processes effectively
Assigning job roles and designations as per the abilities of the candidate
Ensuring training and induction processes are in place to welcome candidates
Work consistently with the founding team on enhancing organizational climate
Organize programs as and when need to boost employees’ mental health.

10] Qualities of an HR Manager: -

Leadership Skills
Communication Skills
Self-Discipline
Ethics and Integrity
Empathetic Attitude
Legally Sound
Dynamic Human Resource Environment

11] Factors Affecting Human Resource Management Dynamic Environment:

Legal Considerations
Labor Markets
Society
Political Parties

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 Unions
Shareholders
Competition
Customers
HRM Technology
Economy & unanticipated events
Corporate Culture and Human Resource Environment
Employer Branding
Strategic Human resource management is a process that helps the human resources department
maximize the potential of its workforce through strategic planning, talent management,
leadership development, organizational design, and performance management.

• It is a combination of many things, including:

• Actions are taken by the organization to meet customer needs
• Policies and procedures used to manage the organization
• Processes used to produce goods or services
• Marketing activities used to sell products and services
• Financial decisions made to fund operations
• Organizational structure
• The technology used to support business processes
• People-related issues such as Recruitment, Selection, Training, Compensation,
Benefits, and Performance management
• Legal requirements and regulations affecting the organization
How Can Businesses Benefit from HR Strategic Planning?

Strategic HRM Benefits

• Identify areas of weakness and strengths

• Develop strategies to address these weaknesses and strengths
• Establish sub-goals and objectives to measure progress toward the end goal
• Make sure there is alignment between business strategy and human resources strategy

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• Ensure that all aspects of the organization revolve around the same set of goals and
objectives
• Create a culture of continuous improvement
• Evaluate the effectiveness of programs and policies
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• Increased job satisfaction
• Employee retention
12] Organizational Strategy
• An organizational strategy is the creation, implementation, and evaluation of decisions within
an organization that enables it to achieve its long-term and short-term objectives.
• Key Strategic Considerations of Organization Strategy
• What re-configurations, reach extensions and strategic relationships will be necessary
to deliver the intended organizational strategy?
• How will procedures change relating to any new skills and capabilities required?
• What will the new level of performance be?
• What changes to corporate culture will be needed?
• How will operational activities be integrated?
• HR Activities That Support Organizational Strategy
1. Recruitment and Selection
The ability to attract and select human resources having the right knowledge, skills, and attitude
is an important function of HR. If it is successful in this work, it will be providing support to
organization strategy in a big way.
2. Quality Is One of The Most Critical Issues for Any Organizational Strategy

Improvement in quality positively affects a host of other areas. Improvement in quality leads
to a reduction in production or service cost and, providing customer satisfaction resulting in
customer retention
3. Performance Appraisal and Compensation

Performance Appraisal and Compensation are the most critical areas of HRM. Any system
must be fully aligned with organizational strategy. The system will directly positively impact
employee motivation.

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4. Training and Development

In any organization, continuous learning means growth through learning events and
experiences for individual employees as well as teams, and the organization as a whole.

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 Module – 2
Job Analysis
Topics Covered
1. Concept
2. Process & methods
3. Job description & specification
4. Job design
5. Factors affecting job design
Concept

What is job analysis

Job analysis is the process of thoroughly understanding a particular job role requirement
along with the key skills, roles, responsibilities, workplace processes, organizational hierarchy
etc. after conducting research to produce a relevant job description. job analysis involves
collecting job related information and highlighting the basic requirements needed by an
employee to successfully fulfill the role & profile in order to achieve the goals & objectives set
by the company. the analysis also gives an overview on the physical, emotional & related
human qualities required to execute the job successfully.

Uses of job analysis:

Job descriptions – Job descriptions define what a job is by identifying its content,
requirements and context. Because job descriptions provide a written summary of the duties
and responsibilities of the job, they help managers and current and prospective employees
understand what the job is and how it is to be performed.

Job Specification – Job specifications focus on the personal characteristics and qualifications
that an employee must possess to perform the job successfully.

Job Design – Job design identifies what work must be performed, how it will be performed,
where it is to be performed and who will perform it. Job analysis information is invaluable in
determining which tasks should be grouped together to form a job and structuring jobs so that
employee satisfaction and performance can be enhanced.

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HR Planning – HR or personnel planning involves “getting the right number of qualified

people into the right job at the right time”. Job analysis information is essential for this if
the number and types of employees to be recruited or exited from the organization are to

be accurately determined.
Recruitment – Job analysis information helps the HR Manager attract better qualified
candidates by identifying who to recruit and how and where to recruit them by stablishing the
job requirements that must meet. In addition, job analysis permits the HR Manager to provide
realistic job previews by highlighting irrelevant and or distorted job information.

1. Selection – Job analysis information identifies what the job is by defining what duties and
responsibilities must be performed. This facilitates the development of job related selection
techniques, helps ensure that EEO (EE- Equal Employment Opportunity) requirements are met,
and increases the likelihood of a proper matching of an applicant with a job. Finally, job
analysis information can be used to validate the selection techniques.

2. Orientation – Effective job orientation requires a clear understanding of the work to be

performed. A new employee cannot be properly taught how to do a job if job duties and
responsibilities are not clearly defined.

3. Performance Appraisal – Job analysis information is essential to the establishment of

performance standards. Through job analysis a thorough understanding of what the employee
is supposed to do is obtained. Without this, acceptable levels of performance cannot be
determined or an accurate measure of actual performance obtained.

4. Training and Development – Job analysis information is used to design and implement
training and development programs. The job specification defines the knowledge, skills and
abilities required for successful job performance. This allows the HR Manager to establish
training and development objectives, design programs and determine whether or not a current
or potential employee requires training.

5. Compensation and Benefits – The job description is the foundation of job evaluation. It
summarizes the nature and requirements of the job and permits its evaluation relative to other
jobs. Once the relative worth of a job has been determined an equitable level of compensation
and benefits can be assigned.

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6. Health & Safety – Job analysis information helps create a healthy and safe working
environment. Jobs with hazardous conditions methods or procedures can be identified and
redesigned to eliminate or reduce exposure to health and safety hazards.

Industrial Relations – Misunderstandings and disagreement among managers, employees and

unions over job content is a major source of grievance and demarcation disputes. Job analysis
information can help avoid such disputes by providing a clear description of tasks and
responsibilities and identifying the formal qualifications, skills, abilities, knowledge and
experience required to successfully perform the work.

Process and methods of collecting data for job analysis:-

The Interview
1. In order to collect job analysis data, managers use three types of interviews which are
individual interview, group interview and supervisor interview.
2. Because interviewer can unearth activities that may never written appear in written
form, the pros of using an interview are simple quick and more comprehensive.
3. Some examples of typical questions include the following questions like what is the job
being done? In what kind of actions one take part? What are safety and health
conditions?
4. Interview guidelines are as follow. a) The supervisors and job analysts should recognize
the employees who understand the job best and would be objective. b) Build a rapport
with the interviewee. c) Structured guide or checklist should be followed. d) In the order
of significance and frequency of occurrence, ask employee to list duties. e) Verify and
review the data.
Questionnaire
1. In order to get job analysis information, structured or unstructured questionnaires may be
used.
2. Questionnaires can be rapid, effective manner of collecting information from a large number
of workers. But, building and testing a questionnaire can be time consuming & expensive.
Observation
1. As opposed to mental activity, when jobs consist of mainly observable physical activity,
direct observations are useful.

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2. Because worker is being watched, reactivity can be an issue with direct observations which
is where the employee alters what he/she generally does.

3. Direct observations and interviewing are used together by the managers mostly.
Checklists:
The checklist method of job data collection differs from the questionnaire method in the sense
that it contains a few subjective questions in the form of yes or no. The job holder is asked to
tick the questions that are related to his/her job. Checklist can be prepared on the basis of job
information obtained from various sources such as supervisors, industrial engineers, and other
people who are familiar with the particular job.

Critical Incidents:
This method is based on the job holder’s past experiences on the job. They are asked to
recapitulate and describe the past incidents related to their jobs. The incidents so reported by
the job holders are, then, classified into various categories and analyzed in detail.

Diaries or Log Records:

In this method, the job holder is asked to maintain a diary recording in detail the job-related
activities each day. If done judiciously, this method provides accurate and comprehensive
information about the job. This overcomes memory lapses on the part of the job holder. As
recording of activities may spread over several days, the method, thus, becomes time
consuming one.

Job Description
Job description refers to a written informative documentation that states the duties, tasks,
responsibilities and qualifications of a job, based on the findings of a job analysis. Effective
job description is used either in the recruiting process to inform the job seekers of the job profile
and requirements or in the performance management process to evaluate the employee’s
performance.

What are the main objectives of a job description?

• Clearly define the job role and set clear expectations
• Attract applicants with the right qualifications and levels of experience
• Discourage unsuitable candidates from applying
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• Provide a reference point for managers and HR to evaluate a new joiner’s
performance compared to the responsibilities outlined in the job description
Why are job descriptions important?
• Job descriptions are an indispensable tool. A crystal-clear job description enables HR
to:
• Define the job and identify the type of candidate they’d like to hire
• Attract internal candidates and engage in effective succession planning
• Recruit and hire suitable candidates
• When job descriptions include salary ranges, HR can compare the salary proposed for
a role against those offered by similar organizations in their industry
What Is A Job Specification?
A job specification is a piece of text that includes the required qualifications for a position.
These often include some of the same information as a job description but focuses on the
qualities/Skills of a person they hope to hire for a position.
Key components of a job specification include:
• Required experience
• Required education
• Required certification
• Required skills
• Personality traits
• Demands

Job Design
Job design is the process of specifying the duties and responsibilities that will be included in
employees' roles. Human Resource (HR) managers aim is to design work duties specific to the
individual so that it allows the employee to maximize their performance and stay engaged and
motivated.

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Factors affecting job design
1. Organizational Strategy: Job design should align with the overall strategic goals and
objectives of the organization. Human resource professionals need to understand the
organization's mission, vision, values, and strategic priorities to design jobs that support the
achievement of these objectives.

2. Technology and Automation: Advances in technology and automation have a significant

impact on job design in human resources. Automation of routine administrative tasks, such as
payroll processing, benefits administration, and applicant tracking, frees up HR professionals
to focus on more strategic activities such as talent development, employee engagement, and
organizational culture.

3. Skill Requirements: The skills and competencies required for success in HR roles influence
job design decisions. HR professionals need a diverse set of skills, including communication,
problem-solving, conflict resolution, negotiation, data analysis, and strategic planning. Job
design should ensure that roles are structured to leverage and develop these skills effectively.

4. Employee Engagement and Motivation: Job design should consider factors that enhance
employee engagement, motivation, and job satisfaction. This includes providing opportunities
for autonomy, skill development, career growth, and meaningful work. HR professionals
should design roles that allow employees to contribute to organizational success and feel valued
and appreciated.

5. Workforce Diversity: HR professionals must consider workforce diversity when designing

jobs. This includes factors such as gender, age, ethnicity, cultural background, and disability
status. Job design should promote inclusivity, accommodate diverse needs and preferences, and
create opportunities for all employees to thrive and contribute.

6. Legal and Regulatory Compliance: Job design in HR must comply with relevant laws,
regulations, and industry standards. This includes employment laws, labor regulations, equal
employment opportunity requirements, privacy laws, and data protection regulations. Failure
to comply with legal requirements can result in legal liabilities and reputational damage for the
organization.

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7. Organizational Culture: The organizational culture influences how HR roles are designed
and structured. HR professionals should design roles that reflect and reinforce the
organization's values, norms, and practices. Job design should promote collaboration,
teamwork, communication, and a positive work environment.

8. Globalization and Multiculturalism: In an increasingly globalized world, HR

professionals must consider the impact of globalization and multiculturalism on job design.
This includes managing virtual teams, cross-cultural communication, and diversity and
inclusion initiatives. Job design should promote cultural sensitivity, adaptability, and
intercultural competence.

9. Employee Well-being and Work-Life Balance: Job design should prioritize employee
well-being and work-life balance. HR professionals should design roles that minimize stress,
burnout, and work-related health issues. Flexible work arrangements, telecommuting options,
and wellness programs can support employee well-being and engagement.

10. Performance Management and Evaluation: HR professionals should design roles with
clear performance expectations, goals, and metrics. Job design should facilitate performance
management and evaluation processes, including performance feedback, coaching, training,
and development opportunities.

Broadly speaking the various factors that affect a job design can classified under three
heads. They are:
1. Organizational Factors
2. Environmental Factors
3. Behavioral Factors
4. Organizational Factors
5. Organizational factors that affect job design can be work nature or characteristics, work
flow, organizational practices and ergonomics.
1. Work Nature: There are various elements of a job and job design is required to classify
various tasks into a job or a coherent set of jobs. The various tasks may be planning,
executing, monitoring, controlling etc and all these are to be taken into consideration
while designing a job.

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2. Ergonomics: Ergonomics aims at designing jobs in such a way that the physical abilities
and individual traits of employees are taken into consideration so as to ensure efficiency and
productivity.
3. Workflow: Product and service type often determines the sequence of work flow. A balance
is required between various product or service processes and a job design ensures this.
4. Culture: Organizational culture determines the way tasks are carried out at the work places.
Practices are methods or standards laid out for carrying out a certain task. These practices often
affect the job design especially when the practices are not aligned to the interests of the unions.
Environmental Factors
Environmental factors affect the job design to a considerable extent. These factors include both
the internal as well as external factors. They include factors like employee skills and abilities,
their availability, and their socio economic and cultural prospects.

5. Employee availability and abilities: Employee skills, abilities and time of availability play
a crucial role while designing of the jobs. The above-mentioned factors of employees who will
actually perform the job are taken into consideration. Designing a job that is more demanding
and above their skill set will lead to decreased productivity and employee satisfaction.

6. Socio economic and cultural expectations: Jobs are nowadays becoming more employee
centered rather than process centered. They are therefore designed keeping the employees into
consideration. In addition, the literacy level among the employees is also on the rise. They now
demand jobs that are to their liking and competency and which they can perform the best.

Behavioral Factors
Behavioral factors or human factors are those that pertain to the human need and that need to
be satisfied for ensuring productivity at workplace. They include the elements like autonomy,
diversity, feedback etc. A brief explanation of some is given below:

1. Autonomy: Employees should work in an open environment rather than one that contains
fear. It promotes creativity, independence and leads to increased efficiency.

2. Feedback: Feedback should be an integral part of work. Each employee should receive
proper feedback about his work performance.

3. Diversity: Repetitive jobs often make work monotonous which leads to boredom. A job
should carry sufficient diversity and variety so that it remains as interesting with every passing
day. Job variety/diversity should be given due importance while designing a job.

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4. Use of Skills and abilities: Jobs should be employee rather than process centered. Though
due emphasis needs to be given to the latter but jobs should be designed in a manner such that
an employee is able to make full use of his abilities and perform the job effectively.

Techniques of Job Design:

Practically, there are four basic techniques that are commonly used by the
organizations for designing and redesigning all types of jobs:
1. Job rotation
2. Job enlargement
3. Job enrichment
4. Job simplification.
Job Rotation:
Job rotation implies the shifting of an employee from one job to another within a working
group. It aims at adding variety and reducing boredom by introducing a variety of tasks in the
existing work profile of employees. Job rotation is also known as the horizontal transfer of an
employee to a job of same level and status.

Job Enlargement:
Job enlargement refers to the process of increasing the scope of a particular job by adding more
tasks and duties to it. It means assigning varied tasks or duties to the employees at the same
level. In other words, job enlargement intends to add similar tasks or activities to the existing
work profile of employees to make their jobs more interesting.

The key benefits provided by job enlargement are as follows:

Increases the number of tasks to include variety and reduce the monotony and
boredom in the existing job
Increases employees’ job satisfaction by providing them an opportunity to develop
and learn new skills
Utilizes mental and physical skills and abilities of employees optimally and makes
them satisfied
Enables the employees to vary the rhythm and sequence of work at their own pace
to make the job enjoyable for them.

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Job Enrichment:
Job enrichment consists of designing a job in such a way that the employees get greater
autonomy in planning, decision-making, and controlling. The greatest motivation for the
employees is the opportunity for achievement, recognition, responsibility, and growth. The
concept of job enrichment is coined by Herzberg. He gave greater emphasis on job enrichment
in his two-factor theory of motivation.

The advantages of job enrichment are as follows:

Makes the work interesting for employees
Provides greater sense of responsibility, self-control, and self-esteem by allowing
more autonomy in the tasks
Motivates the employees by providing them the opportunities to develop and
progress
Facilitates the higher job satisfaction to employees
Develops the new skills of the employees
Makes the task reinforcement easy
Reduces the absenteeism rate and attrition rate.
Job Simplification:
Job simplification involves breaking down of a job into small components, usually consisting
of relatively simple tasks. These divided job components are subsequently assigned to
employees as individual jobs.

There are certain advantages of job simplification, which are as follows:

Involves little training; therefore, training cost is insignificant
Enables the employees to learn tasks rapidly and gain mastery in smaller or less complicated
job units
Increases the job speed by dividing a large single job into number of small components
Involves shorter work cycle that can be performed by low skilled and low-paid employees
easily.

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 Module – 3
Human Resource Planning
Topics Covered
1. Concept
2. Need importance & objective
3. Factors affecting HRP
4. Recruitment & selection
5. Induction & placement

Concept

Human Resource Planning

Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource
capacity of the organization can be utilized to fulfill these requirements. it, thus, focuses on the
basic economic concept of demand and supply in context to the human resource capacity of the
organization.

The need for human resource planning in organization is realized for the following
reasons:
1] Despite growing unemployment, there has been shortage of human resources with required
skills, qualification and capabilities to carry on works. hence the need for human resource
planning.

2] Large numbers of employees, who retire, die, leave organizations, or become incapacitated
because of physical or mental ailments, need to be replaced by the new employees. human
resource planning ensures smooth supply of workers without interruption.

3] Human resource planning is also essential in the face of marked rise in workforce turnover
which is unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions
and seasonal fluctuations in business are the examples of factors leading to workforce turnover
in organizations. These cause constant ebb and flow in the work force in many
organizations.

Human Resource Management | 22

4] Technological changes and globalization usher in change in the method of products and
distribution of production and services and in management techniques. These changes may also
require a change in the skills of employees, as well as change in the number of employees
required. It is human resource planning that enables organizations to cope with such changes.
5] Human resource planning is also needed in order to meet the needs of expansion and
diversification programs of an organization.

6] The need for human resource planning is also felt in order to identify areas of surplus
personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel,
it can be redeployed in other areas of organization. Conversely, in case of shortage of personnel,
it can be made good by downsizing the work force.

Importance of Human Resource Planning:

1] Human resource planning meets the organization need for right type of people in right
number at right times.
2] By maintaining a balance between demand for and supply of human resources, human
resource planning makes optimum use of human resources, on the one hand, and reduces labour
cost substantially, on the other.
3] Careful consideration of likely future events, through human resource planning might lead
to the discovery of better means for managing human resources. Thus, foreseeable pitfalls
might be avoided.

4] Manpower shortfalls and surpluses may be avoided, to a large extent.

5] Human resource planning helps the organization create and develop training and succession
planning for employees and managers. Thus, it provides enough lead time for internal
succession of employees to higher positions through promotions.

6] It also provides multiple gains to the employees by way of promotions, increase in

emoluments and other perquisites and fringe benefits.
7] Some of the problems of managing change may be foreseen and their consequences
mitigated. Consultations with affected groups and individuals can take place at an early stage
in the change process. This may avoid resistance for change.

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8] Human resource planning compels management to asses critically the strength and
weaknesses of its employees and personnel policies on continuous basis and, in turn, take
corrective measures to improve the situation.

9] Through human resource planning, duplication of efforts and conflict among efforts can be
avoided, on the one hand, and coordination of worker’s efforts can be improved, on the other.
10] Last but no means the least, with increase in skill, knowledge, potentialities, productivity
and job satisfaction, organization becomes the main beneficiary. Organization is benefitted in
terms of increase in prosperity/production, growth, development, profit and, thus, an edge over
its competitors in the market.

Objectives of Human Resource Planning:

The main objective of having human resource planning is to have an accurate number of
employees required, with matching skill requirements to accomplish organizational goals.
1. Ensure adequate supply of manpower as and when required.
2. Ensure proper use of existing human resources in the organization.
3. Forecast future requirements of human resources with different levels of skills.
4. Assess surplus or shortage, if any, of human resources available over a specified period of
time.
5. Anticipate the impact of technology on jobs and requirements for human resources.
6. Control the human resources already deployed in the organization.
7. Provide lead time available to select and train the required additional human resource over
a specified time period.
Factors affecting human resource planning:
Before an organization undertakes Human Resource Planning, there are many factors that have
to be considered by the managers. These factors can be classified as external factors and
internal factors. The external factors are those factors that are beyond the control of the
organization. The internal factors are those factors that are company-Control.

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External Factors:
The external factors are those factors that are beyond the control of the organization. These
factors include factors such as Government policies, technological advancements, and the
environment of the business:
Government Policies:
The Government policies regarding factors such as labor welfare, industrial policy, wages and
remuneration, the reservation policy for different communities, and other measures affect the
human resource policy of the organization. This in turn has an influence on the way the
organization undertakes Human Resource Planning. In case the Government policy regarding
any aspect changes, the organization has to alter its strategies and plans so as to follow the
amended laws. As a result, the Human Resource Planning procedure is also gets affected.

Technological Advancements:
The technology and production procedures that are used in an organization would determine
the kind of human resources which would be required in the organization. When the technology
which is used in the organization for production improves, the skills of the employees who are
working in the organization also have to be updated.

Environment of Business:
The factors such as competition, the situation in the labor market, the taste and preference of
the customers, and the current trends in the domestic and international markets shape the way
in which the company under- takes its activities. These also affect the way in which the
procedures are undertaken in the organization which influences the way in which the activity
of Human Resource Planning is undertaken.
Internal Factors
The internal factors are those factors that are company-specific. These factors include aspects
such as company policies and strategies, the culture of the company, and the type of employees
required in the organization:

1] Company Policies & Strategies

2] Culture of the organization
3] Quality & Skills required in Human Resource
4] Company Policies and Strategies

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Company policies and strategies influence the way in which the company would undertake its
activities in order to achieve its objectives. Company policies and strategies also have an
influence on which way the human resources would be utilized by the company. The Human
Resource Manager should keep in mind the objectives of the organization while designing the
policies of recruitment, selection, and training strategies as these are critical for performing
various activities in the organization.

Culture of the organization

The culture of the organization includes the set of beliefs, values, thoughts, assumptions, and
practices shared by the people of the organization. The culture of the organization shapes the
personality of the members of the organization as they influence the thoughts, emotions,
motives, attitudes, and behavior of the people. The culture of the organization influences the
decision-making pattern of an organization. The way in which people can be motivated also
depends on the culture of the organization.

Quality and Skills Required in the Human Resources

While formulating the Human Resource Plans, it is very important that the manager considers
the number of employees and the nature of skills required in the employees. Factors such as
the number of personnel required, skills required, location of jobs, and the structure of the
organization influence the Human Resources policies and plan formulated.

For e.g. vacancies that may arise in the lower levels may be filled at a short notice but training
programs may have to be designed for them so that they can adjust to the production
environment. On the other hand, as the level of position which may fall vacant goes to a higher
level in the organization the time required to fill it may increase as the skills required might be
specific.

Recruitment and Selection

A process of actively searching and hiring applicants for a job role is known as recruitment. A
process of choosing suitable applicants from the shortlisted candidates is known as selection.

What is Recruitment?
Recruitment is the process in which people are offered selection in an organization. It is when
prospective employees are searched for and are then encouraged to apply for jobs within the
organization.

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This is just one step in the process of employment however it is a long process that involves a
series of tasks, starting with an analysis of the job requirements and ending with the
appointment of the employee. Specific tasks involved in the process of recruitment include:

• Analyzing job requirements

• Advertising the vacancy
• Attracting candidates to apply for the job
• Managing response
• Scrutinizing applications
• Shortlisting candidates
Recruitment activities are typically performed by Human Resource practitioners, either
internally or externally. Internal recruitment sources are promotion, transfers, retrenched
employees, contact or references, ex-employees, retired employees, etc. External recruitment
sources are recruitment through advertisement, campus recruitment, recruitment by employee
exchanges, recruitment by third parties, internet recruitment, unsolicited applicants, etc.

What is Selection
Selection is the process of identifying an individual from a pool of job applicants with the
requisite qualifications and competencies to fill jobs in the organization. This is an HR process
that helps differentiate between qualified and unqualified applicants by applying various
techniques.

The term ‘selection’ comes with the connotation of placing the right person in the right job.
Selection is the process in which various strategies are employed to help recruiters decide
which applicant is best suited for the job. Some activities include:

• Screening
• Eliminating unsuitable candidates
• Conducting an examination (aptitude test, intelligence test, performance test,
personality test, etc.)
• Interviews
• Checking references
• Medical tests

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Induction and placement
It involves assigning a specific rank and responsibility to an individual. It implies matching
the requirements of a job with the qualifications of the candidate. Placement is understood
assigning jobs to the selected candidates. Assigning jobs to employees may involves a new
job or different jobs.
Induction: Induction is the task of introducing th new employee to the policies, procedures
rules & regulations of the organization.
Induction programme: - An induction programme is conducted by the organization to
provide the new employee information about-
• Organization- History, Current position, structure, rules procedure, policies, issues
etc.
• Employee benefits: - Pay scale, pay day, Holiday Insurance, Medical, PF etc.
• Working Culture: - Introduction to superiors, co-workers, trainer, counsellors& other
key staff.
• Job Duties: - Job location, Job objectives & expectations, Job safety, Job task & its
relation with other jobs.
• It is generally done through lectures, Seminars, Films, Handbooks, & Manual etc.

Objectives of an Induction Programme

1] Remove fears of new employee- It assists the newcomer to know more about the job,
policies, rules & regulations of the organization, terms & conditions of employment.
2] Create a good impression- Induction helps newcomer to adjust & adopt to new demand
of the job, get along with people, pose questions & seek clarifications & hence creates a
favorable impression of the organization in the mind of the new recruit.
3] Act as valuable source of information- Induction serve as a valuable source of information
to new recruits as it assists him/her through employee manuals/handbooks & informal
discussions about what he is supposed to do & how is he is supposed to do it.
Steps of an induction programme
Welcome recruit to the organization.
Explain him/her about company

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  Show location & department where the new recruit will work
 Provide company manual to the recruit
 Provide details about Employee benefits
 Explain about future career prospects & training opportunities
 Entertain questions & clarify doubts
 Provide guided tour of building, facilities etc.
 Hand the recruit over to his/her supervisor.
Introduce to Organization: - History, current position, structure, rules, procedures, policies,
issues, names & titles of key executives, employee manual, disciplinary procedures,
products/services offer etc.
Employee benefits: -Pay scale, pay day, Holidays, Insurance, Medical, PF, Recreation,
retirement benefits, training avenues etc.
Working culture- Introduction of superiors, Co-workers, trainers, counsellors, & other key
staff, guided tour of building, facilities etc.
Job Duties- Job location, job objectives & Expectations, Job Safety, Job Task & its relations
with other jobs.

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 Module – 4
Introduction of Training
Topics Covered
1. Concept
2. Objectives of training
3. Training needs identification
4. Types of training
5. Management development programs

Concept
Introduction:
Training and Development in human resource management (HRM) refers to a system of
educating employees within a company. It includes various tools, instructions, and activities
designed to improve employee performance. it's an opportunity for employees to increase their
knowledge and upgrade their skills.
Training is an organized activity for increasing the technical skills of the employees to enable
them to do particular jobs efficiently. in other words, training provides the workers with facility
to gain technical knowledge and to learn new skills to do specific jobs. training is equally
important for the existing as well as the new employees. it enables the new employees to get
acquainted with their jobs and also increase the job-related knowledge and skills.
Objectives of Training:
(i) To provide job related knowledge to the workers.
(ii) To impart skills among the workers systematically so that they may learn quickly.
(iii) To bring about change in the attitudes of the workers towards fellow workers, supervisor
and the organization.
(iv) To improve the productivity of the workers and the organization.
(v) To reduce the number of accidents by providing safety training to the workers,
(vi) To make the workers handle materials, machines and equipment efficiently and thus to
check wastage of time and resources.
(vii) To prepare workers for promotion to higher jobs by imparting them advanced skills.

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Importance of Training:
(i) Higher Productivity:
It is essential to increase productivity and reduce cost of production for meeting competition
in the market. Effective training can help increase productivity of workers by imparting the
required skills.
(ii) Quality Improvement:
The customers have become quality conscious and their requirement keep on changing. To
satisfy the customers, quality of products must be continuously improved through training of
workers.
(iii) Reduction of Learning Time:
Systematic training through trained instructors is essential to reduce the training period. If the
workers learn through trial and error, they will take a longer time and even may not be able to
learn right methods of doing work.
(iv) Industrial Safety:
Trained workers can handle the machines safely. They also know the use of various safety
devices in the factory. Thus, they are less prone to industrial accidents.
(v) Reduction of Turnover and Absenteeism:
Training creates a feeling of confidence in the minds of the workers. It gives them a security at
the workplace. As a result, labour turnover and absenteeism rates are reduced.
(vi) Technology Update:
Technology is changing at a fast pace. The workers must learn new techniques to make use of
advance technology. Thus, training should be treated as a continuous process to update the
employees in the new methods and procedures.
(vii) Effective Management:
Training can be used as an effective tool of planning and control. It develops skills among
workers and prepares them for handling present and future jobs. It helps in reducing the costs
of supervision, wastages and industrial accidents. It also helps increase productivity and quality
which are the cherished goals of any modern organization.

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Training process:
The Training Process comprises of a series of steps that needs to be followed systematically to
have an efficient training program. The Training is a systematic activity performed to modify
the skills, attitudes and the behavior of an employee to perform a particular job.

Needs assessment: The first step in the training process is to assess the need for training the
employees. The need for training could be identified through a diagnosis of present and future
challenges and through a gap between the employee’s actual performance and the standard
performance.
Deriving Instructional Objectives: Once the needs are identified, the objectives for which the
training is to be conducted are established.

Designing Training Programme: Every training program encompasses certain issues such
as: Who are the trainees? Who are the trainers? What methods are to be used for the training?
What will be the level of training? etc. Also, the comprehensive action plan is designed that
includes the training content, material, learning theories, instructional design, and the other
training requisites.
Implementation of the Training Program: Once the designing of the training program is
completed, the next step is to put it into the action. The foremost decision that needs to be made
is where the training will be conducted either in-house or outside the organization.
Evaluation of the Training Programme: After the training is done, the employees are asked
to give their feedback on the training session and whether they felt useful or not. Through
feedback, an organization can determine the weak spots if any, and can rectify it in the next
session.The evaluation of the training programme is a must because companies invest huge
amounts in these sessions and must know it’s effectiveness in terms of money.
Training needs identification: -
How to identify training needs within your employees?
Establish goals: What does the company want to achieve?
All companies need to establish their goals and objectives before undertaking any training
actions. These objectives range from improving support. Establishing the objective officially

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and adapting the training to achieve it’s crucial.
Identify the skills or knowledge needed to achieve it: What do employees need to learn to
achieve these goals?
Once you know your company’s objectives, you can begin to identify the skills or knowledge
your employees need to achieve them. It’s necessary to recognize the natural evolution of the
company’s needs, its internal processes, and which employees’ abilities or skills you need to
face these changes. In this step, it’s essential to list these skills to focus the training program
on them.
Assess competencies: Do employees already have some of these skills and competencies?
With a clear list of these necessary skills and knowledge, it will be much easier to see were
your employees stand and discover which skills and competencies match those they already
have or lack. Some helpful methods to assess competencies or skills are:
Assessment questionnaires and reports

Interviews
Focus groups
Observations
Provide appropriate training: Which training method to use?
Once you know what the training will focus on, weigh the available training resources.
Elearning is currently the most suitable option to carry out your corporate training program
since technology provides the opportunity to enjoy efficient and cost-effective learning
methods that respond to modern learners’ needs.

Analyze results and priorities training needs:

The next step is to focus on the most problematic aspects of the most critical training needs,
which will improve the organization’s performance quickly.
Types and Techniques of Training and Development:
On-the-job Training
Coaching
Mentoring
Assignments
Vestibule Training: In this method, a training center called vestibule is set up and actual job

Human Resource Management | 33

conditions are simulated in it.
Apprenticeship Training: In this method, theoretical instruction and practical training
learning are provided to trainees in training institutes. In India, the Government has established
Industrial Training Institutes for this purpose.
Classroom Training
Video-Based Training
Evaluation of Training:
Training evaluation is the systematic process of collecting information and using that
information to improve your training. Evaluation provides feedback to help you identify if your
training achieved your intended outcomes, and helps you make decisions about future trainings.
Management Development Programme:
Management development program is an attempt to improve managerial effectiveness through
a planned and deliberate learning process. Program aims at developing conceptual and human
skills of managers and executives through organized and systematic procedures. In India, many
professional institutes like administrative staff college of India, Management Development
Institute, Indian Institute of Management, Quality Management International, National
Institute of Personnel Management, Indian Society of Training and Development etc, conduct
different management development programs to sensitize managers and executives to various
emerging problems of the corporate world.
Importance of MDP:
More effective communication: Management development can help new and existing
managers learn better ways to connect with their coworkers and report to their supervisors.
Motivated team members: This process can make managers more effective at empathizing with
their team members and providing the motivation and incentive that teams need to succeed.

Cost-efficient leadership: When an organization promotes managers from within the

company, it can save itself the cost of hiring and training new managers. Wide knowledge of
company policies: Providing management development for existing managers can keep
everyone updated on company expectations, the workplace culture and any new policies. Long-
term management availability: A company with a robust management development program
can better ensure that it has knowledgeable and effective managers in the long term.

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Objectives of Management Development Program:
1] Increasing the capabilities of managers: Manager are required to carry out a number of
activities, including supervising, organizing, planning leading, communicating, motivating etc.
2] Fostering Team Work: Team work is one of the essences of managerial success. Programs
designed for development of managers help develop mutual trust, feelings of cooperation, &
mutual understanding.
3] Improve decision making: Development manager programs are intended towards
improving decision making abilities of managers. The success or failure of any organization
depends on the decisions taken by managers.
4] Ensuring personal growth:
It is important to increase the tenure of managerial employees in an organization. To ensure
this happens, there has to be personal growth of managers. Managerial programs help a great
deal in this regard.
5] Aiming for succession planning:
In an organization, future managerial positions can be created by market expansion, attrition,
internal mobility etc.

Human Resource Management | 35

 Module-5
Performance Appraisal
Topics Covered
1. Concept
2. Objective & importance
3. Compensation management
4. Job evaluation
5. Performance appraisal

Concept
Organizations use performance appraisal as a critical process to evaluate the performance of
their employees. it involves a systematic review of employee performance, including their
strengths, weaknesses, and room for growth. this process can significantly impact the
employee’s performance and career development as well as the organization’s overall success.

What is performance appraisal?

Performance appraisal is defined as a process that systematically measures an employee’s
personality and performance, usually by managers or immediate supervisors, against
predefined attributes like skillset, knowledge about the role, technical know-how, attitude,
punctuality, and so on.

Objectives of Performance Appraisal

1. Improve productivity
An employee should be productive in their work to earn a positive performance evaluation, but
managers can also use the appraisal process to address any opportunities for improvement. If
an employee's productivity is lower than expected and then their goals allow, then the
performance evaluation is where a manager can tell an employee what exactly they need to do
to meet expectations.

2. Identify mistakes
Mistakes in the workplace are normal, but with performance appraisals, a manager and
employee can identify these issues and address them quickly. They can also work together to
come up with a solution and some goals for preventing common mistakes from reoccurring in
Human Resource Management | 36
the future. This can help employees feel more secure in the workplace and help improve their
performance.
3. Provide promotion opportunities
Performance appraisals provide documentation on an employee's performance, making it easier
for members of leadership to decide which employees deserve a promotion based on their
performance. Management can look back at their evaluations and compare two employees to
see which is more ready and capable for a new, more advanced role in the office.
4. Set employee goals
The manager can set goals that the employee must reach during a specific timeframe, and the
employee may also be able to choose goals they want to work on based on past performance
or the needs of the business.
Employee development
During performance evaluations, managers offer feedback to employees, who implement this
advice into their daily work. This can help them improve their performance and plan for
development opportunities. The performance appraisal process sometimes serves to identify
ways to develop employees through training, seminars, conferences and more. The manager
and employee may come up with new responsibilities that can help the employee continue
growing in their role and prime them for a promotion.
6. Boost confidence
Performance evaluations can often help boost an employee's confidence. This is because
managers can offer actionable feedback and praise for the employee's work. Including praise
in performance, evaluations can help employees recognize their great work and build their
confidence, which increases the likelihood that their performance can continue to improve.
7. Record employee progress
Some managers may create documents detailing the employee's achievements, productivity
levels, and other performance-based statistics to evaluate their work. Having this record can
help monitor which employees may be ready for promotion or a raise. It can also help managers
recognize if an employee consistently struggles in a particular area so they can provide support.
8. Provide insight into training needs
Managers and human resources professionals can review performance appraisal objectives to
determine if there are areas with which the team struggles. Then, they can use this information

Human Resource Management | 37

to identify training needs and plan for development meetings and training sessions. For
example, if a manager notices that the majority of the employees within a department have
become less productive after introducing new software, they might suggest a training session
on the use of that software.

Importance of Performance Appraisal:

Performance appraisals are used by companies to know more about their workforce. These
evaluations enable managers to learn about each employee’s skills and limitations so that they
can best utilize them in the workplace and improve their future performance.

• Traditional performance appraisals: A superior conducts an evaluation based on an

employee's work with evidence supporting how well they are doing.
• 360-degree review: Superiors, colleagues, supervisors and the individual make an evaluation,
allowing for feedback from all directions of the team.
• Self-appraisals: An employee reviews their own performance, considering their
accomplishments and mistakes.
• Employee-initiated review: An employee asks their manager for a review to determine how
they are performing and to request to take on more projects or a higher position.
• Group performance appraisal: Superiors review how the overall team in an organization is
performing, sometimes opening the feedback for employees to review their peers.
• Upward appraisal: Staff members provide feedback on how their team leads are doing.
• Negotiated appraisal: A mediator helps a manager and employee discuss work performance,
usually starting with a review of the employee's positive performance before offering
constructive criticism.
Ranking Method
The ranking method is possibly one of the oldest employee performance appraisal methods.
The process involves assessing an employee according to a set of parameters compared to all
the other employees. Essentially, this places them in order of the most to the least productive.
• It is simple and quick to accomplish.
• It is a less time-consuming process.
• It yields a numerical rating for the employees, which can be directly linked to
compensation adjustments or staffing concerns.

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Essay Appraisal
Another traditional performance appraisal method is essay appraisal. Here, a manager draws
out a relatively detailed essay about an employee's performance. Several questions could be
presented to the manager, who would then reflect the employees' performance in a written
report. These types of appraisals generally address quite a few aspects of an employee's
contribution in their role.
Let's look at the advantages associated with Essay Appraisal:
• When it comes to a small team, this method does have the advantage of leveraging the
manager's involvement in the employee's professional affairs.

• Since the essay approach is significantly less organized and rigorous than traditional rating
scale methods, the appraiser can analyze any issues or characteristics of performance that is
important to an employee's job role or overall company progress.

• This method strategy provides supervisors with freedom of expression and critical analysis

Paired Comparison
• This method involves comparing employees against each other, meaning one-on-one. This
method traditionally selects a particular trait on which to focus. The process is quite simple.
Checklist Method
Managers are provided with a set of questions. The questions can be yes/no type, statements,
or even multiple-choice questions. The respondents can then select how much or how little they
agree with that statement.
Critical Incidents Method
• This employee performance appraisal method focuses on fundamental behaviors that impact
how a job is carried out. Critical incidents refer to incidents that either positively or negatively
affect how a job function is performed. For example, in customer service, 'level of empathy'
could be on the list.

Management by Objectives (MBO)

• In the simplest terms, Management by Objectives is a method of creating an objective
set of goals. The manager does this in collaboration with employees. The goals are then
discussed and reviewed at specified intervals. MBO is one of the most sought-after and

Human Resource Management | 39

commonly implemented performance appraisal methods.
There are main parts to this employee performance appraisal method:
Goal Setting: The manager and employee figure out what goals they must set. These would
consist of outcomes that both parties feel need to be achieved.
Performance Standard: This is the standard that determines what is required to meet these goals.
In other words, to what extent these parameters must be satisfied to achieve these goals.

Comparison: A comparison is drawn between when the goals were set and a predetermined
point in time, for example, three or six months down the line. Managers and employees can
see what changes have come about.
• Periodic Review: This is where the employees and managers discuss the employee's
development. The manager can then inform employees of what improvements are still required,
which goals they have met or exceeded, and how to achieve these goals.

Behaviorally Anchared Rating Scale (BARS)

• Behaviorally Anchored Rating Scales rate an employee's specific behavioral traits that relate
to performance. Each statement or question has additional statements that describe the extent
to which that employee displays that particular behavior. One of its distinguishing features is
that it also considers an employee's intangible characteristics and maps them to a rating scale.
There are five parts to creating an effective BARS
appraisal system:

The OKR Method

• This modern performance appraisal method has gained immense relevance in recent times.
• In essence, the OKR method (Objectives and Key Results Method) is a performance
management tool that outlines, communicates, and measures goals within an organization,
thereby allowing all the employees to work towards a common goal. However, different levels
of the organization set different goals and track different metrics.
360-Degree Appraisal
• Another modern method of performance appraisal involves assessing an employee from all
around. It involves collecting feedback on specified parameters about an employee from their
peers, subordinates, managers, and others who may interact professionally with them. It also

Human Resource Management | 40

requires the employee to complete a self-evaluation. In simpler words, all-rounded feedback
from everyone the employee is associated with.
Cost Accounting Method
• It is an efficient and practical modern method of performance appraisal and evaluation. The
cost of that employee executing their job function, such as salary, benefits, and others, is
compared to the monetary value they bring to the organization.
Potential appraisal
• Potential appraisal is an assessment / appraisal of a person’s capability to perform job with
higher responsibilities. In other words, ascertainment of a person’s latent / inherent capacity to
handle higher job is potential appraisal. So, level of competency, capability of a person to
perform higher cadre / grade job is measured through potential appraisal system.

Compensation management & concept:

• Compensation management, also known as wage and salary administration, remuneration
management, or reward management, is concerned with designing and implementing a total
compensation package.
• What is Compensation? Compensation is referred to as money and other benefits received by
an employee for providing services to his employer. Compensation refers to all forms of
financial returns, tangible services, and benefits employees receive as part of an employment
relationship, which may be associated with the employee’s service to the employer like
provident fund, gratuity, insurance scheme, and any other payment which the employee
receives or benefits he enjoys instead of such payment.
• Components of Compensation Management:
• Wage and Salary
• Allowances
• Dearness Allowance: Dearness allowance is meant to provide shield for employee real
income against the rise in prices. It is paid as a percentage of basic pay.
• House Rent Allowance: It is paid by companies who do not offer living accommodation
facility to their group of employees. This allowance is computed as percentage of salary.
• Transport Allowance/ Conveyance Allowance: Transport allowance is paid by company
for accommodating travel expenses of employee from his house to work place. These are paid
on monthly basis for covering up the travelling expenses.

Human Resource Management | 41

• City Compensatory Allowance: This type of allowance is given to employees residing in
big cities and metros where cost of loving is comparatively very high. It is generally a fixed
amount paid on monthly basis such as 30% of basis pay for employees on government duties.
• Incentives- Incentives are basically performance-based renumeration paid to employees with
the motive of encouraging them to work harder and do better.
• Perquisites/ Fringe benefits- Fringe benefits include distinct types of benefits such as
accident relief, medical care, canteen, heath and group insurance, pension, gratuity and
provident fund. It comprises company car, paid holiday trips, club membership, free
accommodation, stock options and many more.
• Job Evaluation

Job Evaluation is a systematic process of determining the worth of one job in relation to another
job in the organization. During job evaluation, the relative worth of various jobs are assessed
so that wages can be paid depending upon the worth of the job. The components of a salary
can vary depending on the employer, industry, and specific job role, but commonly include:
1. Base Salary: This is the fixed amount of money an employee receives on a regular basis,
typically paid monthly or bi-weekly. It forms the foundation of an employee's compensation
package.
2. Bonuses: Bonuses are additional payments made to employees based on performance,
company profits, or other predetermined criteria. Bonuses can be discretionary or guaranteed
and may be paid out annually, quarterly, or on another schedule.
3. Commissions: Commission is a form of variable pay that is typically awarded to salespeople
or employees who generate revenue for the company. It's usually a percentage of the sales made
or a fixed amount per sale.
4. Overtime Pay: Overtime pay is compensation provided to employees who work more than
the standard number of hours defined by labor laws or company policy. Overtime rates are
often higher than regular hourly rates.
5. Allowances: Allowances are additional payments provided to cover specific expenses
incurred by employees related to their job duties. Common allowances include travel
allowances, meal allowances, and housing allowances.
6. Benefits: Benefits are non-monetary forms of compensation provided to employees, such as
health insurance, retirement plans, paid time off (e.g., vacation days, sick leave), and other
perks like gym memberships or tuition reimbursement.

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7. Stock Options/Equity: In some cases, employees may receive stock options or equity as
part of their compensation package. This allows them to purchase company stock at a
predetermined price, potentially leading to financial gain if the stock price rises.
8. Profit Sharing: Some companies offer profit-sharing programs where employees receive a
share of the company's profits in addition to their regular salary. This can be distributed in cash,
company stock, or other forms.
9. Employee Stock Ownership Plans (ESOP): ESOPs are retirement plans that allow
employees to become partial owners of the company through the allocation of company stock.
This can be a long-term incentive for employees.
10. Incentive Pay: Incentive pay includes various types of bonuses or rewards given to
employees for achieving specific goals or milestones, such as meeting sales targets or
completing projects on time.
11. Perks: Perks are additional benefits or privileges provided to employees, such as company
cars, expense accounts, or memberships to exclusive clubs.
Fringe benefits: -
Fringe benefits are additional non-wage compensations provided by employers to their
employees. These benefits supplement an employee's salary and can vary widely depending on
the organization, industry, and country. Fringe benefits are often used as a way to attract and
retain talented employees while enhancing their overall job satisfaction. Common examples of
fringe benefits include:

1. Health Insurance: Employers may offer health insurance coverage, which can include
medical, dental, and vision plans. This coverage may extend to employees' dependents as well.

2. Retirement Plans: Employers may offer retirement savings plans, such as 401(k) or pension
plans, to help employees save for their future. Some employers also provide matching
contributions to these plans.

3. Life Insurance: Employers may provide life insurance coverage for their employees, which
can offer financial protection for their families in the event of death.

4. Disability Insurance: Disability insurance provides income replacement in the event that
an employee becomes unable to work due to illness or injury.

5. Paid Time Off (PTO): This includes vacation days, sick leave, and holidays for employees
to take time off from work while still receiving pay.

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6. Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): These accounts
allow employees to set aside pre-tax dollars to pay for qualified medical expenses, such as co-
pays, deductibles, and prescription medications.

7. Tuition Reimbursement: Some employers offer tuition reimbursement programs to help

employees further their education or acquire new skills relevant to their job.

8. Employee Assistance Programs (EAPs): EAPs provide employees with access to

counseling, mental health services, and resources to help them address personal or work-related
issues.

9. Transportation Benefits: Employers may offer subsidies or pre-tax deductions for

commuting expenses, such as public transportation passes or parking fees.

10. Childcare Assistance: Some employers provide childcare benefits or subsidies to help
employees cover the cost of childcare services.

11. Wellness Programs: Wellness programs may include gym memberships, wellness
challenges, or on-site fitness classes to promote employees' physical and mental well-being.

12. Employee Discounts: Employers may offer discounts on company products or services as
a fringe benefit to employees.
A salary breakup structure or a CTC (cost-to-company) breakup structure is the structure
in which the CTC is divided into various components to arrive at the in-hand salary of an
employee.
components are Basic +HRA + Conveyance + Mobile/Telephone Expense Reimbursement
+ Medical Reimbursement + All allowances + Leave Travel Allowance (LTA) + Employer
contribution of PF + Employer Contribution towards ESI + Total variable incentives + Perks
& benefits + Insurance Premium (in case of Group insurance)What is Career Planning and
Development?
Career Planning
A career is defined as a sequence of jobs in a person’s life. Career planning is defined as the
process of extensively planning your career goals, your abilities, and assessing your
opportunities. For instance, if your career goal is to become a scientist in NASA you will have
to map out a plan to get there. Career planning and development is an important part of growing
professionally and in a systematic manner.

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Career Development
Career development is an ongoing process. Once you have set certain goals for yourself you
can start working on career management. Career development can help you keep track of where
you see yourself in your career trajectory in order to achieve growth, sustainability, new skills,
constant learning in your career, career planning, and development.
What Is Employee Separation?

Employee separation refers to the end of a professional relationship of an employee with their
employer. This typically happens when an employee's contract ends with the employer. Other
reasons for separation may include voluntary resignation, termination or retirement.
Downsizing:

Downsizing means reducing the strength of employees through planned elimination of

positions and jobs. Because of global competition most of the companies want to reduce costs
and be competitive. The first causality is the number of workers employed, and since 1992
many Indian companies have resorted to downsizing by introducing VRS. It is spreading fast,
and has affected many enterprises in different sectors.
Reasons for Downsizing:
1. To Solve the Problem of Initial Over-Staffing:
2. To Deal with the Adverse Consequences of Economic Recession:
3. To Take Advantage of Technological Advancements:
4. To Concentrate on Core Activities and to Outsource Non-Core Activities:
What is Outplacement?
Definition and theory of outplacement
Outplacement is the process an organization offers to employees whose employment is ending,
in order to facilitate their transition to a new job. Outplacement is a formal and professional
program involving various services and guidance. It is usually paid by the former employer,
for example after a company feels forced to shrink due to disappointing results.
What is HRIS?

Human Resource Information Systems (HRIS) is a process that utilizes information technology
for the effective management of human resource functions and applications. It is a

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computerized system typically comprising a database or interrelated database that tracks
employees and their employment-specific information.

Industrial Relation Meaning:

The relationship between management and employees within the organization within the
organizational settings is defined by industrial relations. Industrial relations emerge directly or
indirectly from management-trade union relationships.
• To establish industrial peace.
• To safeguard the interests of both workers and management.
• To avoid industrial disputes.
• To raise the production capacity.
• To establish industrial democracy.
• To minimize the labor turnover rate and absenteeism.
• To safeguard the workers economic and social interests.
• To contribute to the economic development of the country through productivity.
• To establish a full employment situation.
• To minimize strikes, lockout, Heroes, etc., by providing good working conditions and
fair wages to the workers.

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 Question Bank
Important Questions from Module 1
Subject Name: - Human Resource Management
Module 1: Introduction to Human Resource Management
1.Define HRM and write scope & objective.
2.What are the important functions of HRM.
3.Why HRM is called asset to organization.
4.What is the difference between personnel management & HRM
5.What is the role & responsibilities of HR manager
6.Why HRM is called dynamic environment
7.What are the strategies of
8.What HR forecasting.
9.Write about general gamut of
10.Write a short note on strategies of HRM

Important Questions from Module 2

Subject Name: - Human Resource Management
Module: Job Analysis 2
1.What is job analysis? Describe the techniques used for analyzing job.
2.Distinguish between job analysis & job description
3.What is job description? Describe its features.
4.Write a note on Job specification.
5.Distinguish between job description & job specification.
6.Describe the process involved in conducting a job analysis.
7.Describe methods of job analysis.
8.Why is job analysis being the foundation of many HR activities.
9.How would you carry out a job analysis in a company that had never had job description.
10.Are job descriptions being really necessary explain.

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 Important Questions from Module 3
Subject Name: - Human Resource Management
Module: Human Resource Planning 3
1.What are the steps involved in the Human Resource Planning
2.What are the advantages of HR planning for large organization.
3.Write a note on Stages of forecasting.
4.How can you plan for HR planning in effective manner?
5.Define HRP. Describe its characteristics & objective.
6.Describe various factors that affect the supply of human resource.
7.Explain the types of forecasting. Give example of each.
8.What are the factors that influence demand of HR.
9.What are techniques of estimating demand for HR.
10.Difference between quantitative & qualitative approaches to HR

Important Questions from Module 4

Subject Name: - Human Resource Management
Module: Training
1.What are the reasons for growing usage of training in organization
2.What are the objectives of employees training.
3.What are the benefits of training to the employees
4.What is the difference between training & development.
5.What are the various methods of training.
6.What is the difference between induction & training.
7.What is the importance of on-the-job training.
8.What are the steps involved in conducting training program.
9.How will you determine training needs in organization.
10.Write short note on evaluation of training.

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 Important Questions from Module 5
Subject Name: - Human Resource Management

1.Describe in detail the process of performance appraisal.

2.Describe merits & demerits of rating scale.
3.Why training should be conducted separately from appraisal.
4.How problems be minimize through adequate precautions.
5.Evaluate the significance of performance appraisal.
6.How performance appraisal is accomplishment & improvement for performance.
7.Distinguish between performance appraisal from potential appraisal.
8.What are the methods of appraisal.
9.Write a short note on Management by objective.
10.Write a short note on Behaviorally anchored rating scale.

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