Viva Note for MBA Exam (Major in Human Resource Management (HRM))

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VIVA VOCE
Note for MBA (HRM) Viva
Department of Management Studies
Faculty of Business Studies
Jagannath University.
Prepared by
Azim Uddin Khan
8th Batch : (MBA-HRM)
Dept. of Management Studies
Jagannath University.

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Fundamental Management
 Management: A set of activities (including planning and decision making, organizing,
leading and controlling) directed at an organization resources (human, financial, physical
and information) with the aim of achieving organizational goals in an efficient and
effective manner.
 Efficient: Using resources wisely and in a cost-effective way.
 Effective: Making the right decisions and successfully implementing them.
 Manager: Someone whose primary responsibility is to carry out the management
process.
 The Management Process: Planning and decision making, organizing, leading and
controlling.
 Planning: Setting an organization's goals and deciding how best to achieve them.
 Decision Making: Part of the planning process that involves selecting a course of action
from a set of alternatives.
 Organizing: Determining how activities and resources are to be grouped.
 Leading: The set of processes used to get members of the organization to work together
to further the interest of the organization.
 Controlling: Monitoring organizational progress toward goal attainment.
 Kinds of manager:
 Level of Management: Top managers, Middle managers & First line managers,
 Areas of Management: Marketing, Finance, Operation, Human resources,
Administration & Other.
 Managerial Roles (Mintzberg’s): Interpersonal, Informational, And Decisional.
 Managerial Skills (Katz): Technical, Interpersonal, Conceptual, Diagnostic,
Communication, Decision making, Time management and Human.
 Scientific Management: Concerned with improving the performance of individual
workers.
 Steps in Scientific Management:
- Develop a science for each element of the job to replace old rule of thumb methods.
- Scientifically select employees and the train them to do the job as described in step 1.
- Supervise employees to make sure they follow the prescribed methods for performing
their jobs.
- Continue to plan the work, but use workers to get the work done.
 Administrative Management: Focuses on managing the total organization.
 Organizational Environment:
 Internal: Owners, Board of directors, Employees, Physical environment, Culture.
 External: (Task & General)
 Task: Competitors, Customers, suppliers, Strategic partners, Regulators.
 General: Technological, Economical, Socio-cultural, Political, International.
 Decision Making: The act of choosing one alternative from among a set of alternatives.

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 Types of Decisions: Programmed Decisions, & Non programmed Decisions
 Forms of Group Decision Making:
- Interacting group or team
- Delphi groups
- Nominal groups
 Organizing: Deciding how to best group organizational activities and resources.
 Departmentalization:
Rationale for Departmentalization Location Departmentalization
Product Departmentalization Other Forms of Departmentalization
Customer Departmentalization
 Motivation: The set of forces that cause people to behave in certain ways. The goal of
managers is to maximize desired behaviors and minimize undesirable behaviors.
 Maslow’s Hierarchy of Needs:
Physiological—basic survival and biological function.
Security—a safe physical and emotional environment.
Belongingness—love and affection.
Esteem—positive self-image/self-respect and recognition and respect from others.
Self-actualization—realizing one’s potential for personal growth and development.
 The ERG Theory:
Needs are grouped into three overlapping categories:
Existence needs—physiological and security needs.
Relatedness needs—belongingness and esteem by others.
Growth needs—self-esteem and self-actualization.
 Theory X & Theory Y (by- Gouglas McGregor):
Theory X : is a relatively pessimistic and negative view of workers.
Theory Y : is a positive view of workers.
 Ethics: An individual‘s personal beliefs about whether a behaviour, action or decision is
right or wrong.
 Team: A group of workers who function as a unit, often with little or no supervision, to
carry out work-related tasks, functions, and activities.
 Management By Objectives (MBO) Process:
- Setting Objectives:
- Developing Action Plans.
- Periodic Review Or Monitoring the Progress:
- Performance Appraisal:

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Training: Teaching operational or technical employees how to do the job for which they
were hired.
 Development: Teaching managers and professionals the skills needed for both present
and future jobs.
 Performance appraisal: A formal assessment of how well an employee is doing his or
her job.
 360 degree feedback: A performance appraisal system in which managers are evaluated by
everyone around them- their boss, their peers and their subordinates.

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(I) Classical Management School:
 Principles of Scientific Management –
Scientific Management: Concerned with improving the performance of individual workers.
Contributor: Frederick W. Taylor.
Advoctors: Frank Gilbreth, Lillian Gilbreth, Henry Gantt, Gerrington Emerson,
Morris Cooke, Hugo Munsterberg.
Biography of Taylor:
– (1856-1915) United States
– Mechanical engineer
– Director of a famous firm
– First Management consultant
– Father of Scientific Management & efficiency movement
– Father of Industrial engineering
Famous Books:
– Shop Management (1903)
– The Principles of Scientific Management (1911)
– Those book presented to the "American Society of Mechanical Engineers" (ASME)
Four Principles of Scientific Management by Taylor:
i) Replace rule-of-thumb work methods with methods based on a scientific study of the
tasks.
ii) Scientifically select, train, and develop each employee rather than passively leaving
them to train themselves.
iii) Provide "Detailed instruction and supervision of each worker in the performance of
that worker's discrete task"
iv) Divide work nearly equally between managers and workers, so that the managers apply
scientific management principles to planning the work and the workers actually
perform the tasks.
Taylor's influence Countries:
United States, France, Canada, Switzerland, USSR.
Criticism:
Henry Mintzberg, Harry Braverman.
(ii) Modern Administration Management:
Administration Management: Focuses on managing the total organization.
Contributor: Henri Fayol.
Advocators: Lyndall Urwick, Max Weber, Chester Barnard.
Biography of Fayol:
– (1841-1925) France
– Engineer and Director
– Founder of Modern Management Method
– Father of principles of management
Book:
– (Administration Industrielle et Generale)
General and Industrial Administration (1916)

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 Major Contributions:
Functions of management
– To forecast and plan
– To organize
– To command or direct
– To coordinate
– To control
Principles of management
1) Division of labor 8) Centralization
2) Authority 9) Scalar chain
3) Discipline 10) Order
4) Unity of command 11) Equity
5) Unity of Direction 12) Stability of tenure of personnel
6) Subordination 13) Initiative
7) Remuneration 14) Esprit de corps.
Organizational Activities
– Technical
– Commercial
– Financial
– Security
– Accounting
– Managerial
(iii) Behavioral Management School
Behavioral Management : Behavioral Management is a process that guides people to
change their actions within a specific context. Empasizes individual attitudes and behaviors
and group processes.
Human relations movement: Argued that workers respond primarily to the social context of
the workplace.
 Hawthorne Experiments:
By Elton Mayo (Duration: 1924-1933)
Biography of Elton Mayo:
– (1880-1949) Australia
– Psychologist, Industrial researcher, organizational theorist.
– Professor of industrial management at Harvard Business School
– Experiment at Western Electric Company, Chicago.
Four Parts of Hawthorne Experiment:
– Illumination Experiment
– Relay Assembly Test Room Experiment
– Interviewing Programme
– Bank Wiring Test Room Experiment

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Implications of the Hawthorne Studies
- Small group - Novelty of the situations
- Types of supervision - Interest in the experiment
- Earnings - Attension received in the test room.
 Maslow's Hierarchy of Needs:
Biography of Abraham Maslow-
– Psychologist
– Studied at Corhell University, Columbia University
– Book: Motivation and Personality (1954)
Contributions:
– Physiological needs
– Safety needs
– Love and belonging
– Esteem
– Self Actualization
 Theory X and Theory Y
- By Douglas McGregor
Biography of Douglas McGregor:
– Professor at The MIT Sloan School of Management
– Studied at Harvard University
– Book: The Human side of enterprise f(1960)
Contribution of Theory X and Theory Y:
Theory X:
Employees avoid work, Dislike to take responsibility, Unambigous, Inherently lazy
Not happy with their job, Narrow span of control, Desire security above everything
Threat of funishment must exist
Theory Y:
Can be ambitious, Self motivated, Exercise self control,
Enjoy their mental and physical work duties, Work is as natural as play.
(iv) Quantitative school of management
Quantitative approach to management: The quantitative approach to management
involves the use quantitative techniques such as statistics, information models, computer
simulations to improve decision making.
 Applies quantitative technique to management
 During WWII and solve the military problems

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Three branches :
– Management science
– Operation Management
– Management information system
Management science : Focus is specifically on the development of mathematical model.
Some science Application :
-Mathematical forecasting
- Inventory modeling
- Queuing theory
Quantitative Techniques
- Decision Theory - Queuing theory
- Experimental design - Replacement theory
- Game theory - Sampling theory.
- Information theory
- Inventory Control
- Linear programming
- Probability theory
(v) System Approach to Management
 System: A system is an interrelated set of elements functioning as a whole.
 Close system: A system that does not interact with or affected by its environment.
 Open system: A system that interact with or affected by its environment.
 Sub system: A system within another system.
 Synergy: Two or more sub systems working together to produce more.
 Entropy: A normal process leading to system decline.
(vi) Contingency Management School
 Theory Z: (Doing work based on the situation)
- By William G. Bill Ouchi.
Biography of Bill Ouch:
– Born 1943
– American
– Professor & Author
– Studied at Stamford University and University of Chicago.
Contributions:
Analysis about Japanese and American organization.
– Length of employment
– Mode of decision making
– Locations of responsibility
– Speed of evaluation and promotion
– Mechanism of control
– Specialization of Career path
– Nature of concern of the employee.

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3 approaches control in an organization management:
– Market control
– Bureaucratic control
– Clan control
(vii) Contemporary Management
 Management By Objectives (MBO)
-By Peter Ferdinand Drucker
Biography of Peter Drucker:
– (1909-2005)
– American management consultant,educator and author
– The founder of modern management
Contributions
6 major contributions-
– Nature of management
– Management function
– Organizational structure
– Federalism
– Management by objective
– Organizational change.
Mgt by objectives
1) Establish an objective before you begin
2) Collect and organize all of the pertinent facts
3) Identify the problem and its causes
4) Work out a solution and some options
5) Screen options through some decision criteria
6) Establish some security action
7) Gain acceptance of the decision
8) Implement the decision
9) Measure the results
 William Edward deming
– 1890-1993(American)
– Engineer,statistician,professor,author,lecturer and management consultant
– Work for japan after world war 2
Contributions:
Deming philosophy synopsis
(i)When people and organizations focus primarily on quality defined by the following ratio
Quality = results of work effortstotal cost
Quality tends to increase and cost fall over time
(ii) However when people and organization focus primarily on cost tends to rise and
qualities declines over time

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Demings system of profound knowledge
1) Appreciation of a system
2) Knowledge of variation
3) Theory of knowledge
4) Theory of psychology
Demings 14 points of TQM
1) Constancy of purpose 8) Drive out fear
2) New philosophy 9) Break down barriers
3) Cease dependence on mass inspection 10) Eliminate exhortations
4) End lower tenders contracts 11) Eliminate arbitrary numerical target
5) Improve every process 12) Permit pride of workmanship
6) Institute training 13) Encourage education
7) Institute leadership of people 14) Top management commitment & action
 Two Factors Theory (Motivation & Hygiene Factors)
By - Frederick Harzbarg

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Theory of Needs
By – McClelland
Main theme:
i) Need for Power
ii) Need for Affiliation
iii) Need for Achievement

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Fundamental HRM
 Human Resource: Human Resource are the labour force, driving force.
 Management: Management is the process of planning, organizing, motivating and
controlling that help to make decision to achieve the goal effectively and efficiency.
 Efficiency: Minimum cost maximum output or return or doing the thing with minimum
cost but maximum return.
 Effectively: Doing the thing properly or timely.
 Human Resource Management (HRM): HRM refers to the application of management
principles to management of people in an organization.
 Basic Functions of HRM: i) Acquisition ii) Training & Development iii) Motivation iv)
Maintenance or Controlling.
 Job: Job is an activity, often regular and often performed in exchange for payment.
 Job Analysis: Job analysis is a process to identify and determine in detail the particular
job duties and requirements and the relative importance of these duties for a given job.
 Job Description: Job description is a list that a person might use for general tasks, duties
or functions and responsibilities of a position.
 Job Specification: Job specification is a statement of the essential components of a job
class including minimum qualifications and requirements functions of the job.
 Job Evaluation: Job evaluation is a systematic way of determining fixed up minimum
worth or payment of the job.
 Employee Turnover: Leaving one organization to another organization within certain
period.
 Job design: Job design is the arrangement and rearrangement of duties and
responsibilities for a specific position.
 Job rotation: Job rotation refers to moving employees from one job to another job.
 Job enlargement: Job enlargement refers to the horizontal expansion of the number of
different tasks performed by an employee in a single job.
 Job enrichment: Job Enrichment is a vertical expansion of job duties; workers have
greater control and responsibility
 Job engineering:
 Recruitment: Recruitment refers to the process of receipt of applications from job
seekers.
 Selection: Selection is the process of picking individuals with requisite qualifications and
competence to fill jobs in the organization.
 Approaches of Staffing: Ethnocentric→Polycentric→Regiocentric→Geocentric
 Ethnocentric: Ethnocentric is the approach which all the key position being filled by the
Parent Country Nation (PCN).
 Polycentric: Polycentric is the approach which all the key position being filled by the
Parent Country Nation (PCN) and Host Country Nation (HCN).
 Regiocentric: Regiocentric is the approach which all the key position being filled by
operation country, such as Third Country Nation (TCN).
 Geocentric: Geocentric is the approach which all the key position being filled by most
qualified candidate but no matter which country candidate live.

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 Human Resource Planning (HRP): HRP is the process of planning about the human
resource.
 Human Resource Information System (HRIS): A HRIS is a systematic procedure for
collecting, storing, maintaining, retrieving and validating data needed by an organization
about its human resources.
 Socialization: Socialization is a continuous process of maintain organizational rules.
Specially maintain acquitted newly appointed employee.
 Performance Appraisal: Performance Appraisal is a formal process to measure someone
performance how he or she is performing or doing.
 Career: Career is occupational position for the lifetime.
 Career Planning: Career Planning is the process of deciding what you want to achieve in
short time and long time future comparing you with the current position what you are at
the moment.
 Career Strategy: Career Strategy is the process of location plan to achieve short term
and long term career objectives.
 Management Development Program: It is scientific training process for executive to
enrich their knowledge and skills so as to make them competent to manage their
organization effective.
 Succession Planning: Succession planning is ensuring that organization has the right
kinds of people.
 Succession Management: Succession Management is a process ensuring that fulls of
skill employee are trainee and available to meet the strategy of organizational objective.
 Placement: Placement is the process of allocation of human resources or assign or
reassignment of an employee to a new or different job position.
 Promotion: Promotion is the advantage of an employee to a better job, better interns of
greater responsibilities more prestige or better skills specially increased rate of salary.
 Termination: Termination is firing from the job.
 Orientation: Orientation is designed to provide new hires with the information they need
to function comfortably and efficiency in the organization.
 Training & Development: T&D refer to the imparting of specific skills, abilities and
knowledge to an employee.
 Training provided to the new employee and Developing provided to the existing
employee.
 Mission: Mission is a short written statement that is making to acquire the target short
time (1 to 5 years). A mission sets out the purpose of an organization.
 Vision: A vision enables an organization to move forward with clarity. It links the
business' specific objectives and targets with the core values that govern how the business
will operate in order to meet those targets.
 Goal: An observable and measurable end result having one or more objectives to be
achieved within a more or less fixed timeframe. Goals are part of the planning process.
They describe what a company expects to accomplish over a specific period of time.
 Objectives: A specific result that a person or system aims to achieve within a time frame
and with available resources. In general, objectives are more specific and easier to
measure than goals. Objectives are basic tools that underlie all planning and strategic
activities.

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 Strategy : A method or plan chosen to bring about a desired future, such as achievement
of a goal or solution to a problem. The art and science of planning and marshalling
resources for their most efficient and effective use.
 Structure: Structure is construction or framework of identifiable elements (components,
entities, factors, members, parts, steps etc.) which gives form and stability, and resists
stresses and strains.
 Policy: According to Management- The set of basic principles and associated guidelines,
formulated and enforced by the governing body of an organization, to direct and limit its
actions in pursuit of long-term goals.
 Procedure: A fixed, step-by-step sequence of activities or course of action (with definite
start and end points) that must be followed in the same order to correctly perform a task.
Repetitive procedures are called routines.
 Project: Planned set of interrelated tasks to be executed over a fixed period and within
certain cost and other limitations.
 Program: A plan of action aimed at accomplishing a clear business objective, with
details on what work is to be done, by whom, when, and what means or resources will be
used.
 Model: Model is a representation of a system that allows for investigation of the
properties of the system and in some cases, prediction of future outcomes. Models are
often used in quantities analysis and technical analysis and sometimes also used in
fundamental analysis.
 Framework: A framework is a real or conceptual structure intended to serve as a support
or guide for the building of something that expands the structure into something useful.
 Process: A process is a series of steps and decisions involved in the way work is
completed. We may not realize it, but processes are everywhere and in every aspect of
our leisure and work.
 Rules: Authoritative statement of what to do or not to do in a specific situation, issued by
an appropriate person or body. It clarifies, demarcates, or interprets a law or policy.
 Principles: Principles are fundamental, norms, rules or values that represent what is
desirable and positive for a person, group, organization or community and help in the
determine rightfulness or wrongfulness of its action.
 Ethics: Ethics is moral principles that govern a person behaviour or conducing activity.
 Values: Important and lasting belief or ideal shared by the members of culture about what
is good or bad and desirable or undesirable.
 Norms: Norms is the standard of proper or acceptable behaviour .the norm an average
level of development or achievement.
 Believe: To accept of regard something as true or to accept the truth what is said by
someone.
 Task: task is an activity that needs to be accomplished within a defined period of time or
by a deadline to work towards work-related goals.
 Element: Fundamental constituent part or principle. One of the unique and basic types of
matter which alone or in combination make up all natural and synthetic substances.
 Duty: Duty means ethical, legal or moral accountability owed always or for a certain
period, especially to someone who has a corresponding right to demand satisfaction of an
obligation.

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 Responsibility: A duty or obligation to satisfactorily perform or complete a task
(assigned by someone, or created by one's own promise or circumstances) that one must
fulfill, and which has a consequent penalty for failure.
 Job: A group of homogeneous tasks related by similarity of functions. When performed
by an employee in an exchange for pay, a job consists of duties, responsibilities, and tasks
(performance elements) that are defined and specific, and can be accomplished,
quantified, measured, and rated.
 Job Families: Job families are grouping of job related by common vacations or
profession.
 Position: Position is how a person or things is placed or opinion or where a person or
thing is located in relation to others.
 Occupations: Actual physical possession or use of dwelling or piece of land occupation
exists only where it is recognizable.
 Career: A career is an individual journey through learning work and others aspect of life
or the progress and action taken by a person throughout lifetime.
 Equal Employment Opportunity (EEO): it is an important concept for employers'
employee and job applicants. EEO is an employment practice where employers do not
engage in employment activities that are prohibited by law.
 Equality: Equality is ensuring individual or groups of individual are treated fairly and
equally and no less favourably, specific to their needs, including areas of race, gender,
disability religion or belief, sexual orientation and age.
 Equity: Fairness and impartiality towards all concerned based on the principles of even-
handed dealing .Equity is essential for ensuring that extent and costs of funds goods and
services are fairly divided among their recipients.
 Window envelope: An envelope with a transparent panel, through which the address on
the enclosure can be seen.
 Blind box advertisement: blind box advertisement is a type of advertisement that
individual who placed the ad and typically only includes a phone number or a post office
box number.
 Type A behaviour : type A describes individuals as ambitious , rigidly organized , highly
status , conscious , sensitive , impatient ,take on more than they can handle , want other
people to get to the point ,anxious , proactive and concerned with time management .
 Type B behaviour: type B describes contrast to those of type A. They work steadily and
enjoy achievement.
 Glass ceiling: glass ceiling is an invisible but real barrier through which the next stage or
level of achievement can be seen, but cannot be reached by a section of qualified and
deserving employees.
 Golden Parachute: It is an agreement between a company and an employee specifying
that they employee will receive certain significant benefits if employment is terminated.
 Annual Confidential Report (ACR): A secret document which must not be shown to
other people.
 Flexi time: Non-traditional work scheduling practices which allows full time employee to
choose their starting and quitting time within certain limits. Flexi time periods usually
precede or follow a core time during which all employees must be present.

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Human Resource Planning & Policy
 Strategy: Strategy is the formulation of organization missions, goals, objectives as well
as action plan for achievement.
 Human Resource Planning (HRP): HRP is a process that identifies current and future
HR needs for an organization to achieve its goals.
 Strategic Human Resource Planning (SHRP): SHRP is the determination of the overall
organizational purpose and goals and how they are to be achieved.
 The Five Ps of Strategy: Plan, Ploy (Clever planning), Purpose, Position, Perspective.
 Various types of strategy:
 Emergent Strategy: An emergent strategy is a pattern of action that develops over time
in an organization in the absence of a specific mission and goals, or despite a mission and
goals. It is set up for changing conditions.
 Intended Strategy: An intended strategy is the strategy that an organization hopes to
execute. Intended strategies are usually described in detail within an organization‘s
strategic plan. When a strategic plan is created for a new venture, it is called a business
plan. It is set up for formulating plan.
 Realized Strategy: A realized strategy is the strategy that an organization actually
follows. Realized strategies are a product of a firm‘s intended strategy (i.e., what the firm
planned to do), the firm‘s deliberate strategy (i.e., the parts of the intended strategy that
the firm continues to pursue over time), and its emergent strategy (i.e., what the firm did
in reaction to unexpected opportunities and challenges). It is set up for implementing
plan.
 Corporate Strategy: A corporate strategy entails a clearly defined, long-term vision that
organizations set, seeking to create corporate value and motivate the workforce to
implement the proper actions to achieve customer satisfaction. It refers ongoing multiple
function.
 Restructuring Strategy: Restructuring is the corporate management term for the act of
reorganizing the legal, ownership, operational, or other structures of a company for the
purpose of making it more profitable or better organized for its present needs. It is
redesigned the form.
 Growth Strategy: Strategy used to increase the size and scope of the business to a
certain level that is more desirable. Business growth strategies include product and
customer diversification, integration, and regional expansion.
 Maintenance Strategy: Maintenance Strategy is an approach which aims at maintaining
the current market share of a product or brand, with continuous but limited investment in
marketing, especially in low share or stagnant markets. It focuses on stabilities
 Business Strategy: Business strategy is sometimes defined simply as a firm's high level
plan for reaching specific business objectives. Strategies succeed when they lead to
business growth, a strong competitive position, and strong financial performance. It
focuses on line on business.

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 Michael Porter’s Five Generic Competitive Strategic Model:
 Low cost provider strategy: Striving to be the overall low-cost provider of a product or
service that appeal to a broad range of customers.
 Broad differentiation strategy: Seeking to differentiate the company‘s product offerings
from rivals‘ in ways that will appeal to a broad range of buyers
 Best cost provider strategy: Giving customers more value for the money by
emphasizing both low cost and upscale difference, the goal being to keep costs and prices
lower than those of other providers of comparable quality and features
 Focused or market niche strategy based on lower cost: Concentrating on a narrow
buyer segment and outcompeting rivals on the basis of lower cost.
 Focused or market niche strategy based on differentiation: Offering niche members a
product or service customized to their tastes and requirements.
 Transaction based forecasting: The forecasting that focuses on tracking internal change
instituted by the organization‘s managers.
 Even based forecasting: The forecasting concerned with changes in the external
environment.
 Process based forecasting: The forecasting not focused on a specific internal
organizational event but on the flow or sequencing of several work activities.
 HR Demand: The organization‘s projected requirement for human resources.
 HR Supply: The source of workers to meet demand requirements, obtained either
internally (current members of the organization‘s workforce) or from external agencies.
 Technique Used in identifying HR Demand:
 Trend Analysis/Index: Analyze current and future data. Index is sign to measure
something.
 Co-relation of Regression: Regression analysis involves identifying the relationship
between a dependent variable and one or more independent variables. Correlation and
regression analysis are related in the sense that both deal with relationships among
variables.
 Delphi Technique: Structured interaction which focus specific subject.
 Expert Forecast: Expert opinion is often necessary in forecasting tasks because of a lack
of appropriate or available information for using statistical procedures
 Nominal Group: Nominal group technique is a group process involving problem
identification, solution generation, and decision making.[
 HR Balance: HR demand is equal to HR supply.
 HR Surplus: HR dement is greater than HR supply.
 HR Deficit: HR demand is less that HR supply.
 Skills Inventory: An individualized personnel record held on each employee except
those currently in management or professional positions.

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 Management Inventory: An individualized personnel record for managerial,
professional or technical personnel that includes all elements in the skills inventory with
the addition of information on specialized duties, responsibilities and accountabilities.
 Markov Model: A model that produces a series of matrices that detail the various
patterns of movement to and from the various jobs in the organization.
 Components of Markov Model: Current job, Promotion, Exit, Retirement, and Transfer.
 Vacancy/Renewal/Sequencing Model: Analyzes flow of personnel throughout the
organization by examining inputs and outputs at each hierarchical or compensation level.
 Downsizing: Downsizing is a strategy used to reduce the size and scope of a business in
order to improve its financial performance, usually by laying off employees or closing
less-profitable divisions.
 Restructuring: It refers to the management process of reorganizing a company to make it
more profitable.
 Merger: Combination of two or more company. Combination of two corporation in
which one company is rising and another one is ceased to exist.
 Acquisition: It is the process purchase or acquiring another organization. It is act of one
enterprise which acquiring share, voting right, control over another organization.
 Succession planning: Succession planning is a process by which individuals are scanned
to pass on the leadership role within a company. The process ensures that business
continues to operate efficiently without the presence of people who were holding key
positions as they must have retired, resigned, etc
 Aggressive planning: The process ensures that business continues to operate and the
presence of people who were holding operational and executive level.
 Succession management: Succession management is the process of ensuring that pools
of skilled employees are trained and available to meet the strategic objectives of the
organization. It is a tool to identify employees who have the potential to assume key
positions in an organization and to prepare them for the future.

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Training and Development
 Training: Training is the systematic process of altering the behavior of employees in a
direction that will achieve organizational goals.
 Development: Development is any attempt to improve current or future management by
imparting knowledge, changing attitudes or increasing skills.
 Learning: Learning is the act by which the individual acquires skills, knowledge and
abilities that result in a relatively permanent change in his/her behavior.
 Orientation: Orientation is a planned introduction of new employees to their jobs, co-
workers and the organization.
 Purposes of employees’ orientation:
– To orient organizational policy, process and culture
– To introduce key staff, colleague and peer Employee View
– To help for growing and self development
– To adjust with new culture
– Productivity enhance
– Turnover reduction
– Organizational overview Organizational View
– Reduction of startup cost
– Time saving
– Job satisfaction
 Who are responsible for the orientation? :
1) HR Unit 2) Managers
 Internal Training: The most obvious benefit of internal training is that it is the most cost
effective solution. There are no travel expenses or course payments as internal training is
typically delivered by your own HR division, and generally having employees train each
other means that you don‘t need to pay for a professional course or educational materials.
 External Training: An outside perspective is one of the main benefits of external
training; an impartial professional may offer a new way of approaching your business that
you have not previously considered. Another key benefit is that the specialist knowledge
that can be gained by participating in external courses can set you apart from other
companies.
 On The Job Training Methods (Job site method):
– Coaching
– Committee Assignments
– Job rotation
– ―Assistant to‖ positions

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 Off The Job Training Methods (Off site method):
– Classroom lecture
– Videos and films
– Simulation exercises
– Computer based training
– Vestibule training
– Programmed instruction
– Human Relation Training
– Case study
– Role playing
– Sabbaticals
– Outdoor training
 Management Development: Management Development is more future oriented and
more concerned with education, than is employee training, or assisting a person to
become a better performance.
 Career: A career is the sequence of work-related positions a person occupies throughout
life.
 Career Development: Career development is engaging in the development activities
required to attain career goals.
 How people choose careers?
Interests, Self image, Personalities, Social backgrounds.
 Mentoring: Mentoring is a relationship in which managers at the midpoints in their
career aid individuals in the earlier stages of their careers.
 Career Plateau: Career plateau is the point in time in a professional's career, where the
possibility of a vertical promotion is less. The position of the employee becomes
stagnant with same and repetitive work and responsibilities. Because of the way
organizations are shaped, the hierarchy of organizations reduce the possibility of
employees to grow vertically after a point in time.
 Dual Career Couples: Dual Career couples are families in which both heads of
households pursue careers and at the same time maintain a family life together. Both
have high degree of commitment to their career.
 Performance Appraisal: Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of a person for further growth
and development.
 Performance Management: Performance management is a process by which managers
and employees work together to plan, monitor and review an employee‘s work
objectives and overall contribution to the organization. More than just an annual
performance review, performance management is the continuous process of setting
objectives, assessing progress and providing on-going coaching and feedback to ensure
that employees are meeting their objectives and career goals.

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Compensation Management
 Compensation (Reward): Compensation means the value of the job. Compensation is
the value of work of the employees according to the agreement between employer and
employee.
 Base Pay: Base pay is the initial rate of compensation an employee receives in exchange
for services. It excludes extra lump sum compensation such as bonuses or overtime pay,
as well as benefits and raises. An employee's base pay can be expressed as an hourly rate
or as a weekly, monthly or annual salary.
 Merit Pay: Merit pay refers to the process of determining employee compensation (base
salary or bonuses), in part, on the basis of how well each employee performs at work.
Actually it pays for extra skills and competence of previous year.
 Incentives: Incentives is a pay, that is paid for outstanding performance.
 Intrinsic Reward: It is internally felt by the employees on being engaged in certain
activities or task. It is intangible and non financial (Ex: Job satisfaction, status etc.).
 Extrinsic Reward: It is directly being provided by the organization for performing
certain job. It is tangible and financial (Ex: Incentives, promotion etc.).
 Job Evaluation: Job evaluation means the valuation of the job. A job evaluation is a
systematic way of determining the value/worth of a job in relation to other jobs in an
organization.5

22 | P a g e
 Methods or technique for job evaluation:
– Job ranking
– Job classification
– Factor comparison
– Point Method
 Types of Incentive pay:
 Individual Incentive plans
– Piecework plans
– Management incentive plans
– Referral plans
 Group Incentive plan
– Team based or small group incentive plans
– Gain sharing plans
 Company-wide plan
– Profit sharing plans
– Employee stock option plans
 Components of International Compensation:
– Base salary
– Foreign service inducement/hardship premium
– Allowance
– Education
– Relocation
– Tax
– Spouse Assistance
 Competitive strategy:
– Cost leadership
– Differentiation leadership
– Cost focus
– Differentiation focus

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Conflict Management
 Conflict: Conflict means difference, disagreement, and dispute, argument of opinion
within or between people. Conflict can be defined in many ways and can be considered as
an expression of hostility, negative attitudes, antagonism, aggression, rivalry and
misunderstanding. It is also associated with situations that involve contradictory or
irreconcilable interests between two opposing groups.
 Intra-personal conflict: Intrapersonal conflict is the conflict humans face within
themselves, it is a conflict between should and want. Should is always driven by the
values, religious beliefs, upbringing etc. wants on the other hand are driven by the
environment which entices humans to indulge overlooking should.
 Inter-personal conflict: Interpersonal conflict occurs when a person or group of people
frustrates or interferes with another person's efforts at achieving a goal.
 Intra-group conflict: Intragroup conflict refers to conflict between two or more members
of the same group or team
 Inter-group conflict: The term for disagreement or confrontation between two or more
groups and their members. This may involve physical violence, interpersonal discord and
psychological tension.
 Intra-organizational conflict: This type of conflict arises within various levels or
department s of organization .
 Inter-organizational conflict: The types of organizational conflict vary from one
organization to another.
 Different Schools of thought on conflict:
 Traditional view of conflict: Believes that conflict of all kinds is harmful and must be
avoided.
 Human Relations view of conflict: Believes that conflict is natural and is an inevitable
outcome in any group.
 Interactionist view of conflict: Believes that conflict is not only a positive force in a
group but also it absolutely necessary for a group to perform effectively.
 Components of Conflict: Cognitive Aspects, Behavioural Aspects, Affective States.
 Types of Conflict:
Goal Conflict, Affective Conflict, Cognitive Conflict, Procedural Conflict:
 Models of Conflict: Process model and Structural model.
 Functional Conflict: Functional conflicts have positive force, constructive problem
solving, improving quality decisions, and building group cohesion.
 Dysfunctional Conflict: Dysfunctional conflicts is undesirable experience that is
avoided, serious negative effect, creates difficulties in communication, reduce
effectiveness and create malignant.
 Five Stages of group development model:
FormingStormingNormingPerforming Adjourning.

24 | P a g e
 Sources of Intra-personal conflict:
– Cognitive dissonance
– Neurotic Tendencies.
 Sources of Inter-personal conflict:
– Relationship rules
– Personality, gender and age related issues
– Evaluating others
– Evaluating the situation
– Role incompatibility
– Difficult boss
– Difficulties with colleagues.
 Sources of group conflict:
– Negative stereotypes about the other group
– Not acknowledging the conflict
– Avoiding conflict
– Law and order
– Frustration
– Distorted perception and behavioural predisposition
– Size of a group
– Technical meditation
 Sources of Organization conflict:
– Communication failure
– Structural factors
– Staff heterogeneity
– Level of participation
– Task interdependence
– Task ambiguity
– Differentiation
– Bureaucratic factors
– Power
– Change
– Domino effect
 Collaboration and conflict resolution (3 parties)
– The initiator
– The responder
– The mediator
 Some of the strategies that can be used to resolve inter group conflict are-
Avoidance, Diffusion, Containment, Confrontation
 Negotiation: Negotiation is a process in which two or more parties resolve a dispute or
come to a mutual agreement. Negotiations are formal discussions between people who
have different aims or intentions, especially in business or politics, during which they try
to reach an agreement.

25 | P a g e
 Types of Negotiation:
 Distributive Negotiation: Distributive bargaining is a competitive bargaining strategy in
which one party gains only if the other party loses something. It is used as a negotiation
strategy to distribute fixed resources such as money, resources, assets, etc. between both
the parties.
 Integrative Negotiation: Integrative negotiation is often referred to as ‗win-win‘ and
typically entails two or more issues to be negotiated. It often involves an agreement
process that better integrates the aims and goals of all the involved negotiating parties
through creative and collaborative problem solving.
 Attitudinal Structuring: Such a bargaining involves shaping and reshaping of attitudes
to positive and cooperative. Examples of attitudinal structuring and shaping may be from
hostile to friendly, from non-cooperative to cooperative, from un-trust to trust, and so on.
 Intra-organization Negotiation: In practice, there are different groups in an organisation
by department-wise and level -wise. At times, different groups may perceive the
outcomes of collective bargaining process differently.
 Process of Negotiation:
Preparation
Developing & choosing strategy
Opening moves
Bargaining & problem solving
Closure & choosing strategy
Four Control Tactics:
1) Agenda Control
2) Limits
3) Precedent
4) Time
Seven Pressure Tactics:
1) Large demand
2) Threats
3) Deadlock
4) Surprise
5) Bypass
6) Divide and conquer
7) Coalition
Nine Trap Tactics:
1) Simplicity
2) Contrast
3) Untrue
4) Hidden strings
5) Off the record
6) Good guy-bad guy
7) Final offer
8) Last minute
demand

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International HRM
 International HRM: International Human Resource Management involved with the
issues related to the management of people in an international context. It is a set of
activities aimed managing organizational human resources at international level.
 P.V. Morgan Model of International HRM:
– Three HR activities: Procurement, Allocation, and Utilization
– Three National or Country categories in int‘l HRM activities: Host, Home, Others.
– Three types of employees of an int‘l firm : HCNs, PCNs, TCNs
Factors differentiated international
from domestic HRM:
– More HR activities
– Broader perspective
– Employees’ personal lives
– Risk exposure
– More external influence
Variables that moderate differences
between domestic and int’l HRM:
– Cultural environment
– Importance of Cultural awareness
– Industry type
– Reliance of the multinational on its
home-country or domestic market.
– Attitudes of Senior management
Modes of Control
– Licensing
– Franchising
– Management contracts
– Joint Ventures
Structures of MNC
– Export Department Structure
– Sales subsidiary structure
– International division structure
– Global product/area division
– The matrix

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 Approaches of Staffing:
 Ethnocentric: Ethnocentric is the approach which all the key position being filled by the
Parent Country Nation (PCN).
 Polycentric: Polycentric is the approach which all the key position being filled by the
Parent Country Nation (PCN) and Host Country Nation (HCN).
 Geocentric: Geocentric is the approach which all the key position being filled by most
qualified candidate but no matter which country candidate live.
 Regiocentric: Regiocentric is the approach which all the key position being filled by
operation country, such as Third Country Nation (TCN).
 Expatriate: An expatriate is a person temporarily or permanently residing in a country
other than their native country. In common usage, the term often refers to professionals,
skilled workers, or artists taking positions outside their home country, either
independently or sent abroad by their employers, who can be companies, universities,
governments, or non-governmental organisations.
 Expatriate failure: The term expatriate failure has been defined as the premature return
of an expatriate. Expatriate failure represents a selection error.
 Training and Development: Training and development is a process of improving work
skill and behaviour through learning. Training related with technical skill knowledge, on
the other hand, development related with conceptual knowledge.
 Components of Effective Pre departure Training program:
– Cultural awareness program
– Preliminary visits
– Language training
– Practical assistance
– Job related factors
 Compensation: Compensation is the monetary reward paid by an enterprise for the work
done by an employee.
 Objectives of Compensation
Factors Moderating Performance of
International Assignment
– Inability to adjust to the foreign
culture
– Length of assignment
– Willingness to move
– Work environment related factors
Factors in Expatriate Selection/
Selection Criteria
– Technical ability
– Cross-cultural suitability
– Family requirement
– Country/cultural requirement
– MNE requirement
– Language
Adequate Secure
Equitable Incentive providing
Balance Acceptable to the employee
Cost effective

28 | P a g e
 Components of International Compensation:
– Base salary
– Foreign service inducement/hardship premium
– Allowance
– Benefits
– Education
– Relocation
– Tax
– Spouse Assistance
 Approaches to international compensation:
 The going rate approach: Base salary for international transfer is linked to the salary
structure in the host country.
 The balance sheet approach: The approach links the base salary for PCNs and
TCNs to the salary structure of the relevant home country.
 There are four major categories of outlays incurred by expatriates that are
incorporated in the balance sheet approach:
– Goods and services
– Housing
– Income tax
– Reserve
 Tax Equalization: Firms with hold an amount equal to the home- country tax obligation
of PCN and pay all taxes in the host country.
 Tax Protection: Employees pays the tax, and back money if the host country‘s tax less
then home country.
 Repatriation: Repatriation involved with the activities of bringing the expatriate back to
the home country. Typically, on completion of the foreign assignment, the multinationals
brings the expatriate back to the home country.
 Repatriation process: (PreparationPhysical relocationTransitionReadjustment)

30 | P a g e
Corporate Governance
 Corporate Governance: Corporate governance refers to dealing with the problems that
result from the separation of ownership and control.
 Board of Directors (Composition):
 Executive Directors (50%) ( Executive & Members of BoD)
 Non Executive Directors (50%)
 Independent Directors (Non executive chairman 1/3 & Executive chairman ½)
 Affiliated Directors
 Corporation: Corporation is a medium or instruction of combining capital for producing
and distributing goods and resources for making profit.
 Governance: Governance refers to the set of rules and regulation for decision making.
 Agency Theory: In agency theory terms, the owners are the principals and the managers
are the agents and there is an agency loss, which is the extent to which returns to the
owners fall. Agency theory specifies mechanisms that reduce agency loss.
 Stewardship Theory: Stewardship theory assumes that managers are basically
trustworthy and attach significant value to their own personal reputations.
 Agency Cost: Agency cost usually refers to the conflicts between shareholders and their
company‘s managers. A shareholder wants the managers to make decisions which will
increase the share value. Managers, instead, would prefer to expand the business and
increase their salaries, which may not necessarily increase share value.
 Director: A director may, therefore, be defined as a person having control over the
direction, conduct, management or superintendence of the affairs of a company.
 Kinds of Director:
– Full time working director
– Non-executive director
– Shadow director or deemed director
 Business ethics: Ethics is a conception of right and wrong behaviour, defining for us
when our actions are moral and when immoral. Business ethics is the application of
general ethical ideas to business behaviour.

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Human Resource Information Systems
 Human Resource Information Systems (HRIS): HRIS is a computerized system, that
provides current and accurate data for the purpose of control and decision making.
 System Development Life Cycle: SDLC is a structured set of phases focused on the
analysis and design of information systems.
 Stages of System Development Life Cycle:
PlanningAnalysisDesignImplementationMaintenance
 System Design: System design is the process of defining architecture modules interfaces
and data for a system for satisfy specified requirement.
 Logical Design: Logical design focus on the improvement of the business processes,
irrespective of any technological implementation.
 Physical Design: Focused on the computer technology for the HRIS, that is, the hardware
and software system, focus on hardware, software, networking plans and technical
manuals.
 Talent Management: Talent means those individuals who can make a difference to
organizational performance, either through their immediate contribution or in the longer
term by demonstrating the highest levels of potential.
Talent management as the systematic attraction, identification, development,
engagement/retention and deployment of those individuals with high potential who are of
particular value to an organization.
 High Performers (HIPERs): Those who are considered to be performing well in their
current role.
 High Potentials (HIPOs): Those who have potential to develop further and wish to do
so.
 Entities: Entities are things as employees, jobs, promotion, transactions, position of
company and so on.
 Attributes: A attribute is a characteristics of an entity.
 Tables: Tables are used to store information about entities. One table is created for each
entity.
 Record: A row in a table is referred to as a record and represents an instance of the
entity.
 Primary key: Primary key is uniquely identifies the record.
 Foreign key: It is primary key from one table stored as an attribute of another table.
 Form: A form is an object in a database that you can use to maintain, view and print
records in a database in a more structured manner.
 Report: A report is a formatted presentation of data from a table, multiple table quiries
that is created as a printout to be viewed on screen.
 Data Warehouse: Data warehousing is the electronic storage of large amount of
information by a business.
 Data Mining: Data mining is a process used by companies to turn raw data into useful
data,
 Business Intelligence: Business intelligence comprises the strategies and technologies
used by enterprises for the data analysis of business information.

32 | P a g e
Organization Development
 Organization Development (OD): OD is a planned process of change in an
organization‘s culture through the utilization of behavioural science technologies,
research, and theory.
OD is a long term effort, led and supported by top management, to improve an
organization‘s visioning, empowerment, learning and problem solving processes, through
an ongoing, collaborative management of organization culture- with special emphasis on
the culture of intact work teams and other team configurations – using the consultant –
facilitator role and the theory and technology of applied behavioural science, including
action research.
 Belief: Belief is a proposition about how the world works that the individual accepts as
true; it is a cognitive fact for the person.
 Values: Beliefs about what is a desirable or a good and what is undesirable or a bad.
 Assumptions: Assumptions are beliefs that are regarded as so valuable and obviously
correct that they are taken for granted and rarely examined or questioned.
 Action Research: Action research is the application of the scientific method of fact
finding and experimentation to practical problems requiring action solutions and
involving the collaboration and co-operation of scientists, practitioners, and lay persons.
 Survey feedback: The process of systematic collecting data about the systems and
deeding back the data for individuals and groups at all levels of the organization to
analyze, interpret meaning and design corrective action steps.
 Systems 1-4T: Survey feedback is based on a conceptual scheme and an integrated
package of measurements that called systems 1-4T. It developed by- Rensis Likert and
Colleagues.
 Grid Organizational Development: A thoroughgoing and systematic organization
development program is called grid organization development. It designed by Robert R.
Black and Jane S. Mouton.
 Power: Power is the intentional influence over the beliefs, emotions, and behaviours of
people.
 Politics: Organizational politics involve intentional acts of influence to enhance or
protect the self interest of individuals or groups.
 Climate: Organizational climate is defined as people‘s perceptions and attitudes about
the organization. It is relatively easy to change.
 Culture: Organizational culture is defined as deep seated assumption, values and beliefs
of the organization. It is very difficult to change.
 Transactional leader: Transactional leaders guide or motivate their followers in the
direction of established goals.
 Transformational leader: Transformational leaders inspire follower to transcend their
own self interest to achieve the goals.

33 | P a g e
Strategic HRM
 Strategic HRM: SHRM involves the development of consistent design collection of
practices, programs and policies to facilitate the achievement the organization strategic
objectives.
 SHRM is the pattern of planned HR developments and activities intended to enable an
organization to achieve its goals.
 Strategic Management: Strategic Management is the process by organizations attempt to
determine what needs to be done to achieve corporate objectives and more important,
how these objectives are to be meet.
 Personal Management: PM is a traditional approach of managing people in the
organization and considers people as a machine.
 HRM: HRM is a modern approach of managing people and their strengths in the
organization and consider people as resources.
 HRM functioning:
– HR Planning
– Recruitment & Selection
– Placement & Orientation Personnel Management
– Training & Development
– Performance Management
– Compensation
– Employee/labor relations
– Employee‘s health & safety HRM
– Labor code/laws
 Why we invest in HR?: for improving this criteria: Design, Market policies, Market,
Service.
 Major elements of organization: People, Objectives/goal, Organized structure,
Technology.
 Generation in the workforce:
– Traditionalist (1922-1945) 8%
– Baby boomers (1946-1964)
– Baby busters (1963-1970)
– Generation X (1965-1970) 34%
– Generation Y/Millennial (1981-2000) 14%--

34 | P a g e
 When HRP needs:
– During a merger or acquisition.
– Labor market conditions are tight.
– Unemployment is high.
 Aggregate Planning: Aggregate planning is the process of developing, analyzing, and
maintaining a preliminary, approximate schedule of the overall operations of an
organization.
 Succession Planning: Succession planning is a process by which individuals are scanned
to pass on the leadership role within a company. The process ensures that business
continues to operate efficiently without the presence of people who were holding key
positions as they must have retired, resigned, etc.
Career Planning & Development
 Career: A career is defined as the pattern of work related experiences that span the
course of a person‘s life.
 Career Management: Career management is a process by which individuals develop,
implement and monitor career goals and strategies.
 Career exploration: Career exploration is the collection and analysis of information
regarding career related issues. It is assumed that the more extensive and more
appropriate the career exploration, the more likely people will become aware of different
facets of both themselves and the world of work.
 Career anchor: A career anchor is a cluster of self-perceived talents, motives and values
that forms the nucleus of a person‘s occupational self-concept.
 Career goal: We can define career goal as a desired career related outcome that a person
intends to attain.
 Career Strategies: Career strategies are activities designed to help a person meet career
goals. They involve conscious individual choices as to which human capital investments
to make and which to avoid.
 Career Appraisal: Career appraisal is the process by which career related feedback is
gathered, used and serves to people to adjust with new information about themselves
and/or the environment.
 Career Development: Career development is an ongoing process by which individual
progress through a series of stages, each of which is characterized by a relatively unique
set of issues, themes, and tasks.
 Stages of Career development:
– Occupational choices preparation for works (Age: 0-25)
– Organization entry (Age: 18-25)
– Early career: establishment and achievement (Age: 25-40)
– Mid career (Age: 40-55)
– Late career (Age: 55-Retirement)

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 Organizational Entry: Organizational entry is the process by which individuals cross the
boundary from outside to inside an organization.
 Organizational Entry Process: RecruitmentSelectionOrientationSocialization
 Middle Career: The mid career years roughly span a 15 year period between the ages of
40 and 55. The mid career years pose two major career/life tasks.
 Career Plateau: Career plateau is considered a central issue in mid career. A plateau is
the point in a career where the likelihood of additional hierarchical promotion is very low.
 Obsolescence: Obsolescence has been defined as the degree to which organizational
professionals lack the up-to-date knowledge or skills necessary to maintain effective
performance in either their current or future work roles.
==== Best of luck ====

Viva Note for MBA Exam (Major in Human Resource Management (HRM))

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