World College of Technology & Management (WCTM),

Gurugram, Haryana

Name of the Faculty Dr. Manyata Mehra

Department MANAGEMENT

Subject Human Resource Management

Class MASTERS OF BUSINESS

ADMINISTRATION (MBA)

Semester 2ndSemester

Session EVEN (FEB2023-JUNE2023)

Contents

• Lesson Plan
• Syllabus
• Notes (Units- 1, 2,3,4
• Past Question Papers
(Solved)

Lesson Plan, 2023

Faculty: Dr. Manyata Mehra

Class: MBA
Semester: 2tht Semester
Subject:Human Resource Management
PAPER CODE: 19IMG22C3

S. UNIT Topics Status No. of

No Lectures

Unit I: Strategic importance of HRM

 Objectives of HRM

Challenges to HR professionals

HR department operations

Human Resource Planning

Contemporary issues in Human Resource

Management

Unit II: Talent acquisition

Recruitment selection strategies

Career Planning

Succession Planning

Training and Development

Executive development programme

Unit III Appraising performance

Potential appraisal

Rewarding Performance

ESOP

Executive compensation

Unit HR in knowledge era

IV
 HR in Virtual organizations

Outsourcing HR functions

HR audit

International HRM

Syllabus

HumanResourceManagement
CourseCode:19IMG22C3

ExternalMarks:80
SessionalMarks:20
TimeAllowed:3Hours

CourseOutcomes
Aftercompletingthecoursestudentswouldbeableto:

CO1: discuss thehistoryandevolutionofHRM.

CO2:explaintheimportanceofHRMintheorganizationsthroughtheirro
les&responsibilities,challengesetc
.CO3:assessthemajorHRMfunctionsandprocessesofHRMplanning,jo
banalysisanddesign,recruitment,selection,traininganddevelopment
,compensationandbenefits,andperformanceappraisal
CO4:identifystrategicHRplanningandtheHRMprocesstotheorgani
zation'sstrategicmanagementanddecision making process.
CO5: explainhowtraininghelpstoimprovetheemployeeperformance.

UNIT-I
Strategic importance of HRM; objectives of HRM; challenges to HR
professionals; role, responsibilities
andcompetenciesofHRprofessionals;HRdepartmentoperations;hum
anresourceplanning–
objectivesandprocess;humanresourceinformationsystem,contemp
oraryissuesinhumanresourcemanagement

UNIT-II
Talent acquisition: recruitment and selection strategies, career
planning and management, succession planning,socialization and
induction of new employees; training and development,
investment in training, training needassessment, designing and
administering training programme; executive development
programme, evaluation ofT&Dprogramme

UNIT-III
Appraising performance: developing and instituting performance
appraisal system, assessment and developmentcenters, potential
appraisal; rewarding performance: linking rewards to
organizational objectives,
determinecompensationstructure,payforperformanceandincentive
plans,ESOP,executivecompensation,designingandadministeringben
efits andservices

UNIT-IV
HR in knowledge era: HR in knowledge industry, HR in virtual
organizations, HR in mergers and
 acquisitions,outplacement,outsourcingHR functions,
employeeleasing, HRaudit,internationalHRM

RecommendedReadings:

1. Dessler,Gary,HumanResourceManagement,PearsonEducation
2. Ivanceivich,JohnM.,HumanResourceManagement,TataMcGrawHill,
NewDelhi
3. Gomez.Megia,Luis,DavidBalkin,andRobertyCardy,Manag
ingHumanResources,PearsonEducation
4. Mathis,Robert,andJohnJackson,HumanResourceManagement,Tho
msonLearningInc.
5. Shell,ScottandGeorgeBohlander,HumanResourceManagement,Tho
msonLearningInc.
6. Pattanayak,Biswajert, HumanResourceManagement,PHI,NewDelhi
7. JyothiP.andD.N.Venkatesh,HumanResourceManagement,OxfordUn
iversityPress,NewDelhi

Instructions for External Examiner: The question paper shall be

divided in two sections. Section A
shallcompriseofeightshortanswertypequestionsfromwholeofthesyll
abuscarryingtwomarkseach,whichshallbecompulsory.Answertoeac
hquestionshouldnotexceed50wordsnormally.SectionBshallcompris
e8questions(2 questions from each unit). The students will be
required to attempt four questions selecting one question
fromeachunit.Allquestionswillcarryequalmarks.

Notes

Strategic importance of HRM

Human resource management (HRM) is the process and practice of recruiting,
hiring, and onboarding the best employees for your business.
HRM also includes providing your employees with the training, development,
work environment, benefits, and compensation they need to perform at their
best amongst their coworkers and within your company in general.
Strategic human resource management takes these activities to the next level by
hiring and training employees in alignment with the goals of the business and the
vision statement, mission statement, and organizational strategies that guide
them.
The formal definition of HRM is:

The process and practice of attracting, hiring, developing, rewarding, and

retaining employees for their benefit and the benefit of each department and the
business as a whole.
A human resource department that works under the auspices of HRM must, by
necessity, interact with other divisions within your business in order to:

 Get to know their unique needs

 Understand their goals and how they fit in with the goals of the business
 Create hiring and retention strategies that align with those goals
 Give those departments what they need to succeed
Strategic human resource management is a more integral, hands-on approach to
furthering the interests and abilities of your business.

Strategic importance of Human Resource Management.

Human resource management is the foundation of a strong business because,

when properly applied, it ensures that the company as a whole is working
together to reach its goals. This gives the business a greater chance to succeed.

Think of your business like a racecar and the components of that car like the
departments within your business.
The goal of the racecar is to be the first to cross the finish line. If all the
components are working at 100 percent, the race is much easier.

But if the tires are a little low on air, the brakes are overworn in spots, and the
engine timing isn’t dialed in, the racecar may fall behind.

HRM, then, is like the mechanic and pit crew that work hard to ensure that the
racecar is in the best possible shape to reach the checkered flag before the other
cars.

A human resources department practicing HRM analyzes the performance of each

department and how they’re working together with the other parts of the
business.
They then identify ways that departments can change in order to get better and
hire employees with the right mix of skills and abilities to make that possible.

All of that being said, your business can function without a formal strategic
human resource management plan — many companies do and have for a long
time.

But those businesses are often practicing SHRM without even realizing it. SHRM is
part of their overall strategy, but they call it by some other name or don’t
delineate it from regular human resource activities.

And, really, that’s not surprising. It can be a significant challenge to make SHRM a
separate part of your organization and to put plans in place to govern the process.
But the benefits far outweigh the drawbacks.

For instance, once established, HRM can help your business:

 Avoid talent shortage

 Maintain compliance with government laws and regulations
 Anticipate workforce needs in a changing market
  Facilitate staffing changes
 Remain agile as the market evolves
 Plan for short-term and long-term growth
 Improve operations
 Stay ahead of the technology curve

When you step back and examine your business as a whole, you’ll find
that human capital management is one of the most fundamental parts of your
operation. Strategic human resource management helps you maximize its
incredible potential.

Challenges to HR professionals

Rethinking the employee value proposition

Work has fundamentally changed because of the pandemic and larger social
issues, and so have people’s expectations of the employee experience. They still
want competitive pay, strong benefits packages, and training and development,
but that’s not enough. Employees increasingly expect a holistic value proposition
that encompasses career growth, skills development, inclusion, belonging,
fairness, trust, authenticity, purpose, a supportive culture, and wellness.
A sense of belonging is high on the list of employee expectations. More than half
(54%) of respondents to a recent Randstad survey said they’d leave a job if they
didn’t feel like they belonged there and 42% would reject a job offer if the
employer’s values didn’t align with theirs.
Employees are looking for a public commitment to doing the right thing, too, with
77% prioritizing companies that have committed to sustainability, diversity, and
transparency. However, enthusiasm for sustainability breaks down along
generational lines, with younger workers caring more about whether a company
supports social and environmental progress.
This is a significant challenge, but one that your HR team is uniquely equipped to
tackle. You have your finger on the pulse of the workforce, and your people are
giving clear directions as you redesign the employee experience.
Re-engaging the workforce
For decades, employee engagement has been a concern for HR professionals.
Engagement metrics were trending upward in the early part of the pandemic,
driven by an increase in transparency and communication. But those gains have
receded as employees and employers differ on when, where, and how people
should work.
Re-engaging the workforce requires frequent performance conversations. These
help team members see their role in driving the business forward and flexibly
adjust their work objectives to remain in sync with the strategic objectives of the
organization. HR and managers are central to helping employees understand how
they contribute to the company’s mission, vision, and values. Connecting daily
work to the business strategy helps workers feel a sense of purpose.
Additionally, Betterworks’ State of Performance Enablement report shows that
career development is rising in importance. Companies need to provide
meaningful opportunities for growth and career advancement for employees —
along with delivering flexibility, competitive pay, and employee well-being.
Attracting talent to the enterprise
Talent acquisition remains one of the highest-priority HR challenges in 2023 with
nearly half (47%) of respondents in a recent HR Executive poll ranking hiring and
retention as their top challenge.3 U.S. unemployment is at historical lows, and
many organizations struggle to fill open roles in a timely fashion.
Hiring and retention could be more difficult in 2023 than last year. While the U.S.
economy added 4.5 million jobs just in 2022, according to the U.S. Chamber of
Commerce, the workforce has shed nearly 3 million net participants because of
the pandemic and the Great Resignation. Some people are sitting out because
they have high levels of savings, while early retirements and a lack of child care
also sideline many people.
To win back workers, companies need to demonstrate that they’ve invested in the
employee value propositions and experience. People are less willing to stay in
unfulfilling jobs, so businesses need to show how they foster strong values and a
clear sense of purpose.
Flexible work arrangements remain a key attraction for talent, but taken alone,
may not be substantive enough because flexibility is considered table stakes in
some industries. When combined with other cultural elements — a sense of
fairness, autonomy, a supportive team in a healthy environment, diversity, a
learning focus, and a vision that inspires prospective employees — companies will
be in a prime position to attract and retain the best talent.
Strengthening manager-employee relationships
Fostering relationships between managers and employees was a big focus in 2022
and remains so this year for HR. These relationships power the modern
workplace.
With hybrid and remote work, the manager’s role has changed, with a greater
emphasis on relationships. Yet most managers lack a frame of reference for what
that should look like, as few managers and employees started their careers in
hybrid and remote work environments. And many first-time managers enter their
roles without adequate training, leading to lower satisfaction among their direct
reports.
Managers continue to struggle with hybrid and remote work. They need new
skills, along with intentional support, training, and tools from HR teams. But
according to research from RedThread Research, managers in 2022 received less
clarity around expectations and fewer data-based insights into team performance
Many managers were left to figure things out by themselves.
In 2023, HR must alleviate the pressure on managers. They must support and
strengthen managers’ ability to coach employees for growth and career
advancement.

Fortunately, there are many ways to help managers succeed. Managers can
practice active listening and solicit ideas and perspectives from across the team.
Another way to build trust is to learn about team members’ career goals. With
that knowledge, managers can provide guidance and support, including insights
into career paths and development opportunities. They can help employees
clarify their career options and help them make connections throughout the
organization.

Roles and Responsibilities of HR Professionals

HR plays a supporting role in encouraging and incentivizing managers to create
these connections and advance their top performers rather than hoard talent.
Building a talent pipeline within the company through a focus on training and
skill-building is one sure way to reduce hoarding while also promoting a
sustainable workforce with ever-broadening capabilities.

Promoting talent mobility and skill-building

Managers are instrumental in this process and should not be sidelined simply
because technology enables business leaders to go directly to the employee with
the offer. Such an approach reduces managers to executing the employee’s
transition out of their team without enabling them to provide guidance to that
individual. A good manager will have their employee’s best interests at heart and
will be able to explain what a particular opening means for their career trajectory
within the organization.

Train managers to help employees set development goals with the same care that
they set work objectives. When managers commit to developing their employees,
they strengthen this critical relationship.

By setting goals related to skill-building and mobility, you increase agility within
the workforce. And, when you link learning and upskilling to tangible objectives
and measurable results within a performance management system, employees
are more likely to complete courses and apply their new skills.
Retaining talent with a better employee experience
HR remains concerned about employee turnover. Nearly three-quarters (72%) of
HR professionals in a recent HR Executive survey said they were somewhat or
extremely concerned about losing talent this year.

There are a plethora of employee retention strategies out there, but expect HR to
focus on improving the employee experience in 2023. One of the top ways to
improve employee experience is to offer flexibility. According to recent data, 50%
of office workers in the biggest U.S. metro areas are back at their desks — the
highest percentage since before the pandemic. But that’s not the end of remote
and hybrid work. Employees still want these options and are willing to switch
jobs.

In fact, 75% of employees expect more options for flexible work, not fewer,
according to recent Gartner research. Leaning into that flexibility works in your
favor: Allowing remote and hybrid work improves your retention odds in a tight
labor market and helps you find the best talent without worrying about
geographical limitations.

Another key element of a good employee experience is the talent management

process. People don’t want to stay in an environment where they are
micromanaged. They crave the autonomy to set their goals and exercise strategic
thinking. They expect their companies and managers to enable their performance
by helping them problem-solve and remove roadblocks to get work done.
Adopting performance enablement practices that make this possible can increase
employee loyalty and retention. Traditional performance management practices,
which are typically based on annual or semi-annual performance reviews and are
backward-looking and compliance-driven, actually inhibit performance. Modern
performance management, by contrast, helps employees and their managers
continuously improve performance in a way that empowers the workforce and
yields a positive employee experience of achievement, support, inclusion, and
recognition.
Another area where flexibility matters is employee development. Employees need
to see their path forward; in other words, how they can learn and grow. That
clarity is found in a clear employee development plan. When HR and managers
can help employees see their options for learning and development, they can
envision themselves with your company for the long term.
Leaning into your strategic impact as an HR leader

HR leaders require high levels of business and financial acumen in their evolution
to becoming strategically minded and operationally focused. Fundamentally, chief
HR officers should be active in the C-suite to help realize business goals — not just
HR goals. To make the case for broad transformation, HR leaders must
understand the company’s risks and explain how people-based initiatives solve
for those risks — and the bottom line.
Leaning into strategic work can affect your health and wellness, too. The work of
HR has been known to cause burnout because its heavy emphasis on
administrative work can be uninspiring. By transforming HR into a strategic asset,
HR professionals can make a positive difference for their company and take on
work that’s more challenging and exciting.

HR department operations

Key responsibilities of HR Operations

Depending on the size of your organization, the HR Operations teams could look
very different. They can focus on specific regions/segments of the business or
have a generalist approach. In either case, they have the following
responsibilities:

 Administration: The HR Operations team is responsible for many

administrative tasks that keep the business running. These tasks include
payroll management, staff data entry, and maintenance. They are also
responsible for maintaining the human resources information system –
also known as HRIS. This program is used to track and maintain all HR-
related data, such as employee contracts, non-disclosure agreements,
compensation, employees’ personal data, and more.

 Compliance: Compliance is one of the most important tasks your HR

Operations department is responsible for. They make sure that, legally,
your organization is aligned with country-specific labor laws when tasked
with things such as hiring, workplace rules, and employee treatment. HR
Operations outlines the HR compliance policies that need to be followed
internally.
  Recruitment: If your organization is large enough to have a recruiting
team, HR Operations will focus on headcount planning. That is, making
sure there are enough people in the organization so that the business
runs well, but not too many people that you waste resources. If you have
a smaller organization and no dedicated recruitment team, HR
operations will pick up everything from advertising, interviewing, and
making job offers to candidates.

 Onboarding: OfficeVibe’s Employee Engagement report found that 69%

of employees are more likely to stay with their company for at least
three years if they experienced great onboarding. HR Operations
develops a structured onboarding program. They support managers in
delivering a positive onboarding experience to their new team members.

 Employee Relations (ER): Employee relations refer to a company’s

efforts to manage relationships in an organization. HR Ops focuses on
preventing and resolving issues between coworkers and management.
They also concentrate on understanding how your staff feels about their
job, company environment, and overall well-being.

 Offboarding: Offboarding happens when an employee has either

decided to leave the company or was fired. It involves administrative
tasks like ensuring the employee returns company property, notifying IT
and payroll about personnel changes, and preparing any paperwork the
employee might need to sign. Offboarding also involves exit interviews,
which are conversations between the employee, manager/HR, and the
leadership team. During this chat, HR Operations is looking for feedback
from the leaving team member on how to create a better work
environment and employee experience for the current and future
employees.
The main goals of HR Operations
The HR Operations department has several vital goals they’re trying to meet in
their organization. Here are the three most important ones.
HR planning-objectives and process

The important objectives of human resource planning are:

(a) To ensure optimum use of human resources currently employed

(b) To assess and forecast future skills requirements if the organization’s

objectives are to be achieved.

(c) To provide control measures to ensure that necessary manpower resources

are available as and when required.

More specific reasons for planning are:

(1) To determine recruitment level

(2) To anticipate redundancies and avoid unnecessary dismissals

(3) To determine training and management development programmes

(4) To assess future accommodation requirements.

In short, planning for people in organizations involves trying to obtain:

i. The right people

ii. In the right number

iii. With the right knowledge, skills and experience

iv. In the right place

v. At the right time

vi. At the right cost

According to Dale Yoder, the special objectives of human resource planning
are:

(i) Establishment and recognition of future job requirements

(ii) Assure supplies of qualified participants

(iii) Development of available manpower

(iv) Effective utilization of current and prospective workforce members

(including reduction of labour cost per unit and sound recruitment and
selection policy).

Thus, human resource planning can be seen as an attempt to balance the

demand for employees with the numbers available. However, it is not merely
concerned with numbers or the “quantity” but also the “quality” of human
resources. At a broader level, manpower planning seeks to accomplish
individual, organizational and national objectives.

Human resource planning helps an individual to improve his skills and utilize
his abilities and potentials to the maximum possible extent. It helps the
organization to improve its efficiency and productivity. It also helps the nation
to achieve the desired economic and social advancement.

Accordingly, A. F. Sikula rightly observes that “The ultimate mission or purpose

is to relate future human resource to future enterprise needs so as to
maximize the future return on investment in human resources”.

In effect, the primary aim of manpower planning revolves around attempts at

“matching or fitting employee abilities to enterprise requirements with an
emphasis on future instead of present arrangements”.

This process of matching jobs with individuals is undertaken in short and long
runs in different ways. Obviously, there are two main forms of manpower
planning on the basis of time-span, i.e., short-term manpower planning and
long-term manpower planning.

Human resource planning is a continuous process. It cannot be rigid or static;

it is amenable to modifications, review and adjustments in accordance with
the needs of the organization or the changing circumstances.

The basic purpose of having a human resource plan is to have an accurate

estimate of the number of employees required with the matching skills to
meet the organizational goals. It is a database where one can easily identify
the existing skills and matching positions held.

It is close to a flow chart wherein we also try to estimate the future

requirements of human resource and the existing movement of the workforce
towards it. It also provides us a time estimation and to select and train the
required number of additional human resource.

The objectives of human resource planning may be summarized as follows:

Objective # i. Forecasting Human Resource Requirements:

Human resource planning is essential to determine the future human resource
needs in an organization. In the absence of such a plan, it would be difficult to
have the services of the right kind of people at the right time.

Objective # ii. Effective Management of Change:

Proper planning is required to cope with changes in market conditions,

technology products, and government regulations in an effective way. These
changes call for continuous allocation or reallocation of skills and in the
absence of planning there might be under-utilization of human resource.

Objective # iii. Realizing Organizational Goals:

In order to meet the needs of expansion programmes and growth strategies of
the organizations planning is essential.
Objective # iv. Promoting Employees:
The database available provides a comprehensive skill repertoire, which
facilitates for decision making as to the promotional opportunities to be made
available for the organization.

Objective # v. Effective Utilisation of Human Resource:

This database is also useful for identifying surplus and unutilized human
resource and resources. In times of downsizing or in estimating the cost-
benefit analysis of human resources would add value to the process.

The objective of human resource planning is to maintain and improve the

organization’s ability to achieve its goals by developing strategies that will
result in optimum contribution of human resources.

For this purpose, Stainer recommends the following nine strategies for the
human resource planners:

(i) They should collect, maintain, and interpret relevant information regarding
human resources.

(ii) They should report periodically human resource objectives and

requirements, existing employees, and allied features of human resource.

(iii) They should develop procedures and techniques to determine the

requirements of different types of human resource over a period of time from
the standpoint of organizational goals.

(iv) They should develop measures of human resource utilization as

components of forecasts of human resource requirements along with
independent validation.

(v) They should employ suitable techniques leading to effective allocation of

work with a view to improving human resource utilization.
(vi) They should conduct research to determine factors hampering the
contribution of the individuals and groups to the organization with a view to
modifying or removing these handicaps.

(vii) They should develop and employ methods of economic assessment of

human resources to reflect its features as income generator and cost and
accordingly improve the quality of decisions affecting the human resource.

(viii) They should evaluate the procurement, promotion, and retention of the
effective human resources.

(ix) They should analyse the dynamic process of recruitment, promotion, and
loss to the organization and control these processes with a view to maximizing
the individual and group performance without involving high cost.

It is usually the top management that formulates the vision and translates the
vision into objectives. Further, these objectives get translated into strategies
and long-term plans. These plans usually form the guidelines for the human
resource department to plan for human resource requirements.

HR planning process

1. Assess current HR capacity

The first step in the human resource planning process is to assess your current
staff. Before making any moves to hire new employees for your organization, it’s
important to understand the talent you already have at your disposal. Develop a
skills inventory for each of your current employees.

You can do this in a number of ways, such as asking employees to self-evaluate

with a questionnaire, looking over past performance reviews, or using an
approach that combines the two. Use the template below to visualize that data.
2. Forecast HR requirements

Once you have a full inventory of the resources you already have at your disposal,
it’s time to begin forecasting future needs. Will your company need to grow its
human resources in number? Will you need to stick to your current staff but
improve their productivity through efficiency or new skills training? Are there
potential employees available in the marketplace?

It is important to assess both your company’s demand for qualified employees

and the supply of those employees either within the organization or outside of it.
You’ll need to carefully manage that supply and demand.

Demand forecasting

Demand forecasting is the detailed process of determining future human

resources needs in terms of quantity—the number of employees needed—and
quality—the caliber of talent required to meet the company's current and future
needs.

Supply forecasting

Supply forecasting determines the current resources available to meet the

demands. With your previous skills inventory, you’ll know which employees in
your organization are available to meet your current demand. You’ll also want to
look outside of the organization for potential hires that can meet the needs not
fulfilled by employees already present in the organization.

Matching demand and supply

Matching the demand and supply is where the hiring process gets tricky—and
where the rest of the human resources management planning process comes into
place. You’ll develop a plan to link your organization’s demand for quality staff
with the supply available in the market. You can achieve this by training current
employees, hiring new employees, or combining the two approaches.
3. Develop talent strategies

After determining your company’s staffing needs by assessing your current HR

capacity and forecasting supply and demand, it’s time to begin the process of
developing and adding talent. Talent development is a crucial part of the strategic
human resources management process.

Recruitment

In the recruitment phase of the talent development process, you begin the search
for applicants that match the skills your company needs. This phase can involve
posting on job websites, searching social networks like LinkedIn for qualified
potential employees, and encouraging current employees to recommend people
they know who might be a good fit.

Selection

Once you have connected with a pool of qualified applicants, conduct interviews
and skills evaluations to determine the best fit for your organization. If you have
properly forecasted supply and demand, you should have no trouble finding the
right people for the right roles.

Hiring

Decide the final candidates for the open positions and extend offers.

Training and development

After hiring your new employees, it's time to bring them on board. Organize
training to get them up to speed on your company’s procedures. Encourage them
to continue to develop their skills to fit your company’s needs as they change.
Find more ideas on how to develop your own employee onboarding process, and
then get started with this onboarding timeline template.
4. Review and evaluate

Once your human resource process plan has been in place for a set amount of
time, you can evaluate whether the plan has helped the company to achieve its
goals in factors like production, profit, employee retention, and employee
satisfaction. If everything is running smoothly, continue with the plan, but if there
are roadblocks along the way, you can always change up different aspects to
better suit your company’s needs.

HR Information system

HRIS stands for Human Resources Information System. The HRIS is a system that
is used to collect and store data on an organization’s employees.

In most cases, an HRIS encompasses the basic functionalities needed for end-to-
end Human Resources Management (HRM). It is a system for recruitment,
performance management, learning & development, and more.

An HRIS is also known as HRIS software. This is a bit confusing as it implies that
different systems can have different software running on them. However, this is
not the case. The HRIS is, in essence, an HR software package.

The HRIS can either run on the company’s own technical infrastructure, or, more
common nowadays, be cloud-based. This means that the HR software is running
outside of the company’s premises, making it much easier to update.

Other commonly used names are HRIS system and HRMS, or Human Resources
Management system. These are all different words for the same thing.
Collectively, these systems are also called Human Capital Management systems,
or HCM. In this article, we will use the terms HRIS and HRIS systems
interchangeably.
Benefits of an HRIS
As we discuss in our Digital HR Certificate Program, using an HRIS has a number of
clear benefits. That’s why companies of all sizes implement this tool to support
their people operations. Centrally, the HRIS holds employee information. A wide
range of employee data is then easily accessible, in one system.

 Record-keeping. An HRIS is a record-keeping system that keeps track of

changes to anything related to employees. The HRIS can be seen as the
single source of truth when it comes to personnel data.
 Compliance. Some data is collected and stored for compliance reasons.
This includes material for the identification of employees in case of theft,
fraud, or other misbehaviors, first contact information in case of
accidents, citizens identification information for the tax office, and
expiration dates for mandatory certification. All this information can be
stored in the HRIS. It is essential that data is stored safely and securely,
in line with GDPR regulations.
 Efficiency. Having all this information stored in one place not only
benefits accuracy but also saves time. Some companies still keep a lot of
data about employees as physical paperwork. Finding the right folder,
and locating the right sheet, can take up a lot of staff time.
 HR strategy. The HRIS permits the tracking of data required to advance
the HR and business strategy. Depending on the priorities of the
organization, different data will be essential to track. This is where the
HRIS shines.
 Self-Service HR. A final benefit is the ability to offer self-service HR to
employees and managers. This enables employees to manage their own
affairs. When done right, the HRIS can offer a good employee
experience. Keep in mind that not all HRIS systems offer this in a user-
friendly manner!
Working with an HRIS has multiple benefits for the organization, HR, and the
employee. Using an HRIS becomes interesting when you have between 30 to 50
employees.

At this time, managing this basic information in Excel becomes cumbersome and
simple procedures like approving employee holidays need to be standardized.

Using an HRIS is especially beneficial for large organizations which typically use
more advanced HRIS systems to support different HR functions. Small businesses
would suit a more basic HRIS.

HRIS functions
There are different kinds of HRIS systems and software. Because an HRIS
encompasses all the functionalities for HR, all separate functionalities are part of
the system. These functionalities include:

 Applicant Tracking System (ATS). This software handles all the

company’s recruiting needs. It tracks candidate information and
resumes, enables recruiters to match job openings to suitable candidates
from the company’s application pool, and helps in guiding the hiring
process.
 Payroll. Payroll automates the pay process of employees. Contractual
data and information on new hires is often entered into this system –
sometimes combined with time & attendance data – and at the end of
the month, payments orders are created.
 Benefits administration. Another functionality of the HRIS is benefits
management. Employee benefits are an important aspect of
compensation and are also managed in this system. More advanced
systems offer an employee self-service model for employee benefits. In
this case, employees can select the benefits they are looking for
themselves. One may want more paternity leave, the other one a more
expensive company car. This self-service approach to benefits is also
called a cafeteria model.
  Training. Learning and development is a key element when it comes to
employee management. This module allows HR to track qualification,
certification, and skills of the employees, as well as an outline of available
courses for company employees. This module is often referred to as an
LMS, or Learning Management System, when it’s a stand-alone. An LMS
usually includes available e-learning and other courses to be followed by
employees.
 Performance management. Performance management is a key part of
managing people. Performance ratings are generated once or multiple
times a year by the direct manager or peers of the employee.
 Succession planning. Creating a talent pipeline and having replacements
available for key roles in the organization is another key component of an
HRIS.
 Employee self-service. Employee self-service has already been mentioned.
Organizations are focusing increasingly on having employees and their
direct supervisors manage their own data. Requests like holidays can be
asked for by the employee him/herself. After approval, these are then
immediately saved into the system (and registered to track for payroll and
benefits purposes).
 Reporting & Analytics. A much rarer module in HRIS systems is reporting
and analytics. Modern systems enable the creation of automated HR
reports on various topics like employee turnover, absence, performance,
and more. Analytics involves the analysis of these insights for better-
informed decision making. We’ll explain more about this in the section
below.

Contemporary issues in HR management

The Gig Economy

Many talented people have decided to leave the traditional workforce in

exchange for freelance work in their area of expertise. This gives them desired
flexibility in their lifestyle, and is a great selling point for potential clients,
because overhead is less when you are a contract employee. Although this is
great system for the talent, working with a different system is a challenge for
human resources managers. If the best talent is no longer available for an in-
house position, human resource managers must find ways to either create long-
term contracts or to develop other suitable talents.

Innovation and Automation

Human resources departments are often tasked with training and developing
employees. This means that when a new company rollout includes techno logical
advances, the human resources department needs to prepare itself to train
people. In some instances, this means coordinating with technology developers
to create programming that is easily rolled out to employees. In other cases, the
human resources department must help roll out the program and help run the
training programs internally.

Changing Regulatory Issues

Compliance with regulatory issues is a primary duty of human resources

managers. While this job duty hasn't changed over the years, what it covers
evolves constantly. This means that human resource managers need to be on
top of all changes. An example of changes is new laws regarding healthcare
benefits.

Privacy laws are constantly requiring updated disclosures and employee training
and acknowledgments. If the human resources manager is not current on new
regulations and laws, the company is exposed to lawsuits, penalties and
potential public scrutiny.

Recruiting and Retaining Top Talent

Finding and keeping great talent is difficult, especially for small businesses that
don't have the resources to offer huge compensation and benefits packages.
This means that human resources managers are always looking to find talented,
loyal prospects for the company. It is important for human resources managers
to look for talent internally and externally, as it is not enough to just go to job
fairs or to reach out to people on LinkedIn. HR managers must not only cultivate
these relationships, they must also cultivate internal employees that are suitable
for development and promotion.

Diversity and Harmony Issues

Business owners know that a diverse workforce that's working together in

harmony will build stronger teams, yield better ideas and offer broader
customer satisfaction. However, without the harmony, that diverse workforce
has low morale, and therefore, low productivity. This isn't solely a company
culture and productivity issue, either. Diversity is a serious legal liability if
employees or customers are feeling harassed in some way.

Human resource managers must understand diversity laws, and must ensure
that the company has the protocol to deal appropriately with complaints, and
also to focus on harmonizing the diversity. This is done with training and
workshops that build cohesiveness and embrace the differences in each other.

UNIT II

TALENT ACQUISITION

Talent acquisition is a strategy used in recruitment that focuses on finding,

attracting, hiring, growing, and retaining top talents inside an organization.
In other words, it is a planned and structured complex of actions the HR
department must do to get the best employees.

Talent acquisition process

Talent acquisition includes the following five stages:

1. Developing a specific talent acquisition strategy

Based upon each company’s situation, this necessitates TA strategists building an

intimate knowledge of the industry that the company serves, as well as the
company’s ongoing workforce needs.

This is essential to understand where the company is on the market, who your
competitors are, and what their budget is, as well as think about the methods
that work best based on the budget of your company.

Then, using the information collected, you need to come up with an effective plan
covering what needs and can be done, and where and how you will find the talent
you need to reach your goals.

2. Build Talent Pipelines

Because the acquisition of talent is a continuous process, a good talent acquisition

strategy depends on a steady stream of talent.

And the only way to ensure that a constant flow of talent into the organization is
by building talent pipelines that you can tap on an ongoing basis.

So, it is important to create a talent pipeline and ensure that it works well at all
levels from brand awareness to hire.
If something in the pipeline is broken or not working well, then you need to make
improvements accordingly.

3. Build strong Employer Branding

Corporate branding holds the key to successful Recruitment Marketing and Talent
acquisition in the end.

A company’s brand often makes prospective candidates aware of who the

organization is, and what they have to offer.

Without such awareness, talented individuals won’t consider working for that
company.

Negative branding may even drive away any cursory interest that prospects may
harbor to joining the team.

Statistics available on the subject confirm the importance and impact of

branding on the talent acquisition process.

How a company projects itself to prospective employees, and how potential

candidates perceived it, might often mean the difference between acquiring or
losing talented individuals.

4. Talent relationship management

Before an organization commences active recruitment, there is a need to “sell”

the company to talented individuals, as a good place to work in.

Top-talent might be actively (or passively) looking for new opportunities, but they
are also conscious about what they want in terms of the quality and reputation of
new workplaces.
Recruitment Marketing is responsible for that initiative. It involves:

 Awareness: Selling the company. The first step in RM is to create

awareness about an organization, and the growth prospects it offers
to its employees. Social Media campaigns are a good tool to use in
building such awareness.

 Consideration: Selling the opportunity. Once you make a pool of

potentially talented individuals aware of your company, you need to
market career-building (and not necessarily employment)
opportunities to them, so they’ll give your organization some
consideration as a prospective employer.
Participation in job fairs, engaging in social media marketing, and
holding frequent career counseling sessions – both off-line and
online – are great ways to convert casual awareness into active
consideration.

 Interest: If a talented individual is seriously considering your

company to make their next career move, they’ll exhibit that in the
form of active interest in specific job openings you have available.
Targeted job ads, industry-specific online bulletin boards and social
recruitment campaigns will help you to pique the interest of talent
for your postings.

5. Recruitment

The next stage, Recruitment, involves five states covering:

1. Candidate sourcing – where you actively scan potential pools of

candidates;

2. Lead nurturing – which involves cultivating a pipeline of potential

candidates;
 3. Candidate selection – which is a process of short-listing prospective
candidates to be acquired;

4. Interviewing – where interactions with short-listed candidates result

in final selection decisions;

5. Onboarding – which is a process of assimilating selected candidates

into the company.

One study puts the number of employee turnover, resulting from bad hiring
decisions, at 80%.

41% percent of respondents to that study pegged the cost (to the organization) of
bad hiring decisions at $25,000, with some reporting it to be as high as $50,000.

The key to successful recruiting is to have well-thought-out procedures for each

step in the process.

And the key to an effective talent acquisition process is seamless integration

between recruitment marketing and recruitment. Lessons learned from Stage-2
(recruitment) can translate into optimizing various steps in Stage-1 (Recruitment
Marketing), and vice versa.

Career Planning and Management

Career planning and management continue throughout your professional life.

Planning carefully prepares you to cope with changes both in your work and in
yourself. Managing your career effectively involves taking risks, learning new
skills, and adapting to changes in both work environment and technology. If you
learn to plan strategically, you will be able to make effective career choices
throughout your professional life. The Counseling Center provides several online
career assessment tools.
Writing Résumés
An effective résumé persuades an employer to contact you for an interview. You’ll
need to communicate your strengths and interests quickly and
clearly! The University Career Center provides tips for resume writing.

Cover Letters

A cover letter should always accompany a résumé, even if you apply for a job
online. A well-written cover letter states what your résumé does not. Use your
cover letter to show an employer that you are the best fit for the position. You
may also want to review additional tips and samples for cover letter writing.

Job Interviews

Although a job interview gives an employer an opportunity to evaluate you, it is

also an opportunity for you to evaluate the employer. Therefore it is important
that you prepare for the interview ahead of time. Anticipate questions the
employer might ask, and think about how you will answer them. Your impression
during the interview can make the difference between a job offer and a rejection
letter. The Career Center provides an “Interviewing Tips” video to help you
through the interview process.

Succession Planning

The term succession planning refers to a business strategy companies use to pass
leadership roles down to another employee or group of employees. Succession
planning ensures that businesses continue to run smoothly and without
interruption, after important people move on to new opportunities, retire, or
pass away. It can also provide a liquidity event, which enables the transfer of
ownership in a going concern to rising employees. Succession planning is a good
way for companies to ensure that businesses are fully prepared to promote and
advance all employees—not just those who are at the management or executive
levels.

KEY TAKEAWAYS

 Succession planning is a business strategy for passing leadership roles on

to one or more other employees.
 The strategy is used to ensure that businesses run smoothly after
employees retire and leave the company.
 Succession planning involves cross-training employees to help them
develop skills, knowledge, and an understanding of the business.
 Plans can be long-term, which are meant to account for future changes, or
for emergencies whenever anything unexpected arises.
 There are many benefits to succession planning, including inclusivity if
companies have a strong plan to diversify their workforce.
Understanding Succession Planning
Succession planning is a contingency plan. It is not a one-time event. Rather, it
should be reevaluated and updated each year or as changes dictate within the
company. As such, it evaluates each leader’s skills, identifying potential
replacements within and outside the company and, in the case of internal
replacements, training those employees so they’re prepared to assume control.

In large companies, the board of directors typically oversees succession planning

in addition to the chief executive officer (CEO), and it affects owners, employees,
as well as shareholders. A larger business may train mid-level employees to one
day take over higher-level positions. For small businesses and family-owned
companies, succession planning often means training the next generation to take
over the business.

The process takes a lot of time and effort. As such, it requires:

 Recruitment or Proper Hiring: The goal is to choose candidates who are

capable of rising through the ranks in the future. For example, an
 experienced person from another company might be courted and groomed
for a higher position.
 Training: This includes the development of skills, company knowledge, and
certifications. The training might include having employees cross-train and
shadow various positions or jobs in all the major departments. This process
can help the person become well-rounded and understand the business on
a granular level. Also, the cross-training process can help identify the
employees that are not up to the task of developing multiple skill sets
needed to run the company.

Socialization and induction of new employees

Training and development

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.

Trends in training and development

After getting to know its past, you’re probably curious about the current state of
training and development. Is it any different than it was a century ago? Are
there any significant changes in the way training is conducted?

If you agree with those questions, it’s time to get updated on the latest trends in
training and development. Let’s take a glance at what’s currently happening in
the field. We’ll also get a sneak peek at where our current training programs are
headed for the future.
1. Increase company productivity

You might want to consider upskilling your employees. Training them to use
advanced tools and technology might improve their efficiency. Moreover, being
more confident in their abilities will make them more motivated to work.

Also, they’ll be able to face challenges and adapt to changes quickly. Aside from
that, you’ll also be promoting a culture of learning in your workplace. The act of
learning together can help your employees bond with each other better.

All of these factors might contribute greatly to your company’s productivity.

2. Improve product or service quality

Training and development programs are an opportunity for experts within your
organization to share their techniques. Within a short span of time, employees
will get to learn tips and best practices for their work.

This will allow them to create better products or provide more satisfying
services. Additionally, adequate training of employees involves giving them the
same set of instructions. This leads to uniformity in their methods and output.

3. Lessen employee turnover

Research has shown that training and development has a positive impact on
employee turnover. Workers will surely appreciate your company’s investment
in their development. This will strengthen their sense of job satisfaction,
belongingness, and commitment.

Training and development programs might also lead them to have a better
relationship with the organization. As a result, it’ll decrease their intentions to
leave and increase your company’s workforce retention. It’s a win-win situation
for everyone.
4. Decrease costs and errors

If your company has highly trained employees, there are few to no mistakes
being made every day. As a result, less time and resources are spent on redoing
incorrect work.

Also, product malfunctions and improper delivery of services are generally

frowned upon. They might involve additional expenses, too. Properly trained
employees know how to use materials efficiently. Thus, your company will
spend less because waste and spoilage are minimal.

This applies to machinery as well. A trained employee will know how to take
care of equipment. This will lead to lesser breakdowns and a longer lifespan for
your machinery.

Investment in training

As more business owners look to advance their own talent rather than continually
hire new employees, they’re realizing the growing role employee development
plays in their company’s success.

According to the Deloitte Human Capital Trends Report, leadership is the second
most important concern for organizations. But a Bersin by Deloitte study of
millennial leaders found that 30 percent of respondents did not feel ready to be in
their leadership roles.

Savvy business owners are responding to that sentiment with programs designed
to give employees the skills needed to grow in their roles and eventually take
leadership positions. According to Forbes, U.S. spending on corporate training has
grown to over $70 billion annually, including initiatives like on-site and industry-
specific training, undergrad and MBA tuition reimbursement, and financing for
certificate and degree programs.
The biggest benefits of investing in these types of employee training and
development include:

1. Attract high-quality employees

Employee training and development is a sought-after benefit for many talented

job seekers, so offering these programs makes your business more attractive to
high-caliber prospects.

2. Increased job satisfaction levels

When employees feel challenged and confident in their work, it increases

engagement and productivity, which helps make your business run more
efficiently.

3. Keeps skills competitive

Having employees stay current on industry trends and innovations helps your
business better react and adapt to changes, giving you a competitive edge in the
marketplace.

4. Better retention rates

The cost of replacing an employee far outweighs the cost of continuing training,
so keeping employees satisfied through corporate development lowers turnover
and, as a result, spending.

5. Internal promotion opportunities

Promoting employees from within helps you identify who’s really management
material, and results in leaders who are already familiar with the business and its
culture, and can hit the ground running in their new role from the start.
Training need assessment

A training needs assessment (TNA) is an assessment process that companies and

other organizations use to determine performance requirements and the
knowledge, abilities and skills that their employees need to achieve the
requirements. There are three key areas that are considered accurate assessors of
those needs:

 Skill proficiency of employees

 Employees' frequency of skill usage
 Level of employees' skills crucial to job performance

One of the outputs of the training needs assessment is a list of who needs what
kind of training. For instance, your company may find that the IT department is
failing to keep up with the industry standards and needs to undergo training that
increases their knowledge about the latest technological innovations. Or maybe
the IT interns are coming on full-time and require mentoring to become a
competitive and productive part of the company.

TNA aims to answer some familiar questions: why, who, how, what and when.
Here's a look at the descriptions of the questions and what analysis can to answer
them.

 Why conduct the training: Organizations typically conducts training to tie

the performance problem to a working need and make sure that the
benefits of carrying out the training are greater than the problems. To
answer this question, you have to conduct two types of analysis: feasibility
analysis and needs versus wants analysis.
 Who is involved in the training: A training typically involves appropriate
parties to solve the performance problem. To determine the target
participants for the training, you have to conduct a target population
analysis. This type of analysis allows you to learn as much as possible about
the people who are involved in the deficiency and how to tailor a training
program to engage them.
  How to fix the performance problem: Conducting training can help fix the
performance problem. But you have to look for another remediation if
training is not appropriate. To identify what skill deficiency to address, you
must conduct a performance analysis. This type of analysis investigates how
your company or department is performing as a whole.
 What is the best way to perform: There is a preferred or better way to do a
task to get the best results. To identify the best way to perform, you must
conduct a task analysis. This type of analysis gets down to the fine details of
exactly what your employees are doing in their individual roles.
 When to conduct the training: Because holidays, work cycles, etc. affect
the participants' attendance at the training, you must determine the best
timing to deliver training. You may conduct a context analysis to answer
logistics questions. Context analysis is a method to examine the
environment in which a business operates.

Designing and administering training program

The considerations for developing a training program are as follows:

1. Needs assessment and learning objectives. This part of the framework

development asks you to consider what kind of training is needed in your
organization. Once you have determined the training needed, you can set
learning objectives to measure at the end of the training.
2. Consideration of learning styles. Making sure to teach to a variety of
learning styles is important to development of training programs.
3. Delivery mode. What is the best way to get your message across? Is web-
based training more appropriate, or should mentoring be used? Can
vestibule training be used for a portion of the training while job shadowing
be used for some of the training, too? Most training programs will include a
variety of delivery methods.
4. Budget. How much money do you have to spend on this training?
 5. Delivery style. Will the training be self-paced or instructor led? What kinds
of discussions and interactivity can be developed in conjunction with this
training?
6. Audience. Who will be part of this training? Do you have a mix of roles,
such as accounting people and marketing people? What are the job
responsibilities of these individuals, and how can you make the training
relevant to their individual jobs?
7. Content. What needs to be taught? How will you sequence the
information?
8. Timelines. How long will it take to develop the training? Is there a deadline
for training to be completed?
9. Communication. How will employees know the training is available to
them?
10. Measuring effectiveness of training. How will you know if your training
worked? What ways will you use to measure this?

Training Needs Assessment

The first step in developing a training program is to determine what the

organization needs in terms of training. There are three levels of training needs
assessment: organizational assessment, occupational (task) assessment,
and individual assessment:

1. Organizational assessment. In this type of needs assessment, we can

determine the skills, knowledge, and abilities a company needs to meet its
strategic objectives. This type of assessment considers things such as
changing demographics and technological trends. Overall, this type of
assessment looks at how the organization as a whole can handle its
weaknesses while promoting strengths.
 2. Occupational (task) assessment. This type of assessment looks at the
specific tasks, skills knowledge, and abilities required to do jobs within the
organization.
3. Individual assessment. An individual assessment looks at the performance
of an individual employee and determines what training should be
accomplished for that individual.

Executive Development Program

The Executive Development Program (EDP) is designed to increase the business

skills and leadership capabilities of managers who aspire to be among top
leadership in their organizations. EDP takes a multidimensional approach to
learning, combining lectures, small/large group discussion, case study, role
playing, networking opportunities, executive coaching, and an immersive strategy
simulation to provide new insights and give participants opportunities to apply
them. During this multi-week program you will:

 Advance your strategic decision-making capabilities to think faster and

more creatively about current challenges, opportunities, and solutions
 Deepen your understanding of organizational dynamics to improve the
design and implementation of new initiatives and avoid destructive
conflicts
 Gain knowledge in core areas of business, including finance, marketing,
operations, management, and strategy based on current research and best
practices

In EDP, there will be several structured and focused opportunities to engage with
a cohort of seasoned business leaders, and build your professional network. The
intensity of class sessions reflect the experience in the group, with teamwork
providing opportunities for each participant to both share and benefit from the
vast expertise in the classroom. Small-group work on the simulation and group
projects plus optional after-hours meetings promote a spirited camaraderie that
leads to deep and lasting connections.

Session Topics:

 Value-Based Decision Making

 Operational Excellence and the Link to Financial Performance
 Marketing Strategy: How to Compete in an Age of Disruption
 Creating and Sustaining Competitive Advantage
 Strategic Considerations in Mergers and Acquisitions: From Decision
Making to Implementation
 Executive Negotiation Workshop
 Leading with Character and Integrity
 The Leader’s Brain
 Scaling for Profitable Growth

Evaluation of T&D program

Training evaluation is an important process in determining training effectiveness

and in checking if training programs are indeed helping employees become good
at what they do. Training evaluation can also be integrated as a feature of
your learning management system.
Through strategic evaluation, businesses can find ways to improve the quality of
training and achieve the learning goals set for employee success. To help you get
started, we have listed down the training evaluation process in 4 steps:

1. Choosing the appropriate model

There are various types of training evaluation models available and each targets
different areas. So the first step to getting started in evaluating training programs
is by choosing the best model that will fit the needs of your evaluation.
Kirkpatrick’s Four-level Model
This training evaluation process is used globally by businesses that aim to get a
return on investment (ROI) through cost-effective and time-efficient training
sessions. This model breaks down the evaluation process into 4 levels:

 Level 1: Reaction – Assesses how the learner’s responded to the training.

This is commonly measured with the use of a survey form given to the
participants to complete after the training program.
 Level 2: Learning – This level measures what participants have learned
from the training. Short quizzes and tests are used in this level to measure
the changes in participant’s knowledge and skills. With this, you can
use EdApp by SafetyCulture’s Quiz Creator.
 Level 3: Behavior – This assesses behavioral change from the participants
as a result of training. This is measured through workplace observations,
comparing before and after training behaviors.
 Level 4: Results – The final step measures and evaluates the result of the
training program against the organization or stakeholder’s expectations. It
reviews whether participants of the training have met their learning
objectives. Some metrics or factors organizations will be measuring are
productivity, morale, quality, sales, efficiency, and customer satisfaction
ratings.

The CIRO Model

The CIRO (context, input, reaction, and output) model evaluates the effectiveness
of management training courses. It focuses on measurements taken before and
after carrying out the training program. Similar to the other models, the training
evaluation process is also broken down to 4 stages:

 Stage 1: Context – This stage assesses the organization or business’s

operational situation to identify and evaluate the training needs and
objectives. In this stage, a training needs analysis is conducted to see which
area of operations the organization is lacking. Once training needs are
defined they are set to the following 3 levels:
 o The ultimate objective – this objective aims to eliminate
organizational deficiencies like poor performance, low profit, low
productivity, or poor customer service.
o Intermediate objectives – these objectives require changes in
employee’s work behavior in order to achieve the ultimate objective.
o Immediate objectives – these objectives involve acquiring new skills
and knowledge and even changing employee attitudes to change
their behavior.
 Stage 2: Input – In this stage, practitioners of the training evaluation gather
information by analyzing available resources in the organization to
determine the best choice of training technique or method to achieve
training objectives.
 Stage 3: Reaction – In this stage, feedback from the participants is
collected. The information gathered from this stage is used to further
improve the training program.
Stage 4: Outcome – This stage evaluates the results of the training
program. The outcome is measured on the following 4 levels:
2. Determine indicators of training effectiveness
To effectively evaluate training programs, practitioners of the training program
must first define the indicators of “effectiveness.” As a guide, practitioners or
organizations should answer this guiding question: “In what sense will the training
program be considered successful?”

Below are some examples of factors or indicators that can help in measuring
training effectiveness:

 New skills and knowledge

 Learning experience
 Employee happiness
 Cultural impact
 Efficiency impact
 Financial impact
3. Choosing the right method and collecting data
Training evaluation methods refer to approaches in collecting the data. Once the
training evaluation’s purpose, technique, and measurements for training
effectiveness are identified, the next step is to choose the right method or tools
for collecting the needed information in regards to the training program.

Below are some of the common training evaluation methods practitioners can
use:

 Questionnaires – these are sets of questions commonly used for gathering

statistical information from participants on a particular topic. This can be
used as a tool when conducting surveys for trainees after the completion of
the training program.
 Interviews – this can be conducted either face-to-face or online. This
method allows practitioners to delve deeper into the responses of the
participants. Interviews can help provide practitioners with more valuable
and detailed information on the employee’s experience with the training.
 Focus groups – these are facilitated discussions among a small group of
participants who underwent the same training program. This is helpful if
the goal of the practitioners is to explore the participant’s insight and
feelings towards the training and to gather some feedback on how the
training can be improved.
 Observation – this method is done by observing the participant’s
behavioral change in a workplace setting. The practitioner or assigned
evaluator will observe how they complete tasks or engage with processes
and team activities.

4. Analyze Data
The final step is to analyze the data collected and to document the findings of the
performed training evaluation. The record of the training evaluation will be a
critical component for future improvements in the organization’s approach to
training programs.
UNIT III

APPRAISAL PERFORMANCE

Developing and instituting performance appraisal system

What is a Performance Appraisal system?

Performance appraisal is the process of assessing an employee for their work
throughout the year. It is usually conducted by an immediate manager, who
during the appraisal process, goes over the employee’s achievements,
performance, areas that need improvement, and helps chart out the way forward.

Why are performance appraisal systems important?

The key purpose of a Performance Appraisal System is to evaluate how well the
employees performed during the year. It evaluates employee performance in line
with the company’s goals and objectives, which help the company identify and
categorize employees. This, in turn, helps the company devise suitable
development plans and training programs for the employees.

A lot of performance management and appraisal systems come with diverse

features, but that doesn’t always make it effective. Certain features engineered
together can make an effective performance appraisal system. Let’s take a look at
a few:

Clear Appraisal Objectives

The objectives of appraisal should be specific. An effective performance review
system will be designed in a manner such that it matches the employee’s job
description.
Match the Company’s Needs
An effective performance appraisal system matches the needs of the
organization. Each member of the team must be aware of what their goals are,
what the company’s goals are, and how their individual goals tie in with the
company’s goals.

Managers are Mentors

Managers must bear in mind to not assume a hierarchical position. But be a
mentor who can lead the employee on to a path of development. They should not
only focus on the negatives, but also acknowledge and highlight the achievements
to motivate the employee.

Continuous Feedback
The appraisal system is now a process that happens throughout the year; it’s not
just a once a year process anymore. Since it’s a continuous dialog and review
process that happens throughout the year, the ratings are not a surprise at the
end of the year because of the continuous feedback that the manager gives on
the employee’s performance. This continuous feedback helps employees better
their performance and skills through the year, and into the future.

Well Defined Performance Criteria

Top-rated appraisal forms, appraisal formats, rules and procedures are some of
the pre-requisites for an effective appraisal system. For example, you can rate a
copywriter based only on the skill that is present in his / her job description.

What is the best performance appraisal system?

What are the types of performance appraisal?

1. Assessment Center Method
2. Management by Objectives
3. 360-Degree Appraisals
Let’s look at the above 3 modern appraisal systems and see how they compare
with each other.

Assessment Center Method

The Assessment Center Method gives employees a clear idea about how others
observe them and the impact it has on their performance. While it assesses the
existing performance of an individual, it also predicts future job performance.
During the assessment, employees are asked to take part in social-simulation
exercises like in-basket exercises, informal discussions, fact-finding exercises,
decision-making problems, role-play, and other exercises that ensure success in a
role.

The disadvantage of this method, however, is that it is time and cost-intensive

and difficult to manage.

Management by Objective
This form of appraisal system has the employee and manager both jointly setting
goals to be achieved within a certain time. The thinking behind this appraisal
format is that when the employee is involved in goal setting, s/he’ll be more
inclined to achieve the goal/s.

The managers are required to establish measurable targets and standards of

performance and priorities for these targets. Also, the responsibilities and
authority of the personnel are clearly established.

This appraisal format is ideal for measuring the quantitative and qualitative
output of senior management like managers, directors, and executives (business
of any size).
The format involves a lot of planning and being proactive rather than being
reactive to events. It’s not subjective. Instead, this type of performance appraisal
format helps assess the employee’s capabilities for himself/herself which helps
improve his/her ability to perform well.

360-Degree Appraisals
Including reviews from co-workers and others who have contact with the
employee in the performance review process helps authenticate the employee’s
report and potentially help cover more ground during the review process, keeping
biases at bay.

The 360-degree appraisal system is considered the best performance appraisal

system as it gives a good understanding of an employee. This type of appraisal
system also helps the employee learn about his/her strengths and weaknesses.

OKRs and the Modern Performance Appraisal System

Now that organizations have moved on from the once-a-year review practice,
managers now use OKRs with continuous performance management to align with
and motivate employees. It accelerates performance by giving employees a direct
line of sight into how their work impacts company goals, and also ensures
everyone is focusing on important company priorities.

In the Profit.co software, you can conduct 360-degree reviews by initiating

an affinity-based performance review. In this review type, a reviewee will
complete a self-assessment, be reviewed by peers, and receive feedback from
their manager.

Peer reviews can be anonymized to support honest and reliable answers, and
additionally, reviewees can select which peers they’d like to be reviewed by, or
managers can designate peers to complete the review.
Managers can designate different competencies for the employee to rate
themselves on. Competencies are skills that are specific to an employee’s role and
a necessary component of their job. Reviewees will rate themselves on a sliding
scale, and also be rated by peers and managers. If a reviewee’s self-assessment
rating and the manager’s rating match, the competency will be highlighted,
indicating that everyone is on the same page.

Managers will also determine an employee’s potential. Based on an employee’s

total performance rating from the components of their review as well as the
manager’s potential rating, they will be plotted on the 9-Box Matrix which helps
managers and HR administrators determine if an employee is ready for a
promotion through an IDP, or individual development plan, or needs to improve
in their position through a PIP, or performance improvement plan.“

Best practices for Implementing an Effective Appraisal System

Reviewing employees’ performance and keeping them motivated involves doing a
lot of things right. These are a few of them:

Coaching for Managers

Managers need to be trained on how to conduct a performance appraisal.
Performance appraisals are one of those ‘intense’ activities at the workplace.
Given that it involves evaluating an employee’s capabilities and contribution, the
outcome of these appraisals can have a significant impact on the employee’s
future performance and self-esteem. Which is why it is crucial for a manager to be
trained in the process and s/he cannot just ‘wing it’. Poorly delivered feedback
can be very demoralizing and lead to employee attrition. Sharon Frankovich, a
consultant with HR Works, says, “Coach managers on how to give negative
feedback. Many managers don’t know how to do this, and so they avoid it.” She
says managers must realize the importance of giving specific, constructive
feedback, and the impact of providing inaccurate or zero feedback.
Performance Previews rather than Performance Reviews: A focus on the future
Some organizations are now going the Performance Previews route. What that
means is that the manager and the employee discuss how the responsibilities of
the employee might change in the year ahead and decide what training, tools,
and mentorship the employee will need to achieve those goals.

Organizations that have adopted the Performance Previews approach consider it

as a factor behind low employee attrition and also in attracting employees.
However, previous appraisals are also important, as are valuable measuring tools.

Train employees to monitor their performance themselves and work towards

getting the feedback they need
Employees, in most cases, don’t have a say in the appraisal process and wait for
the manager to give feedback. However, instead of waiting for the manager to
appraise their performance and give feedback, employees should have the know-
how and wherewithal to self-monitor and make efforts to get better at their
work.

Self-appraisal in performance management systems allows employees to openly

express their interests, opinions and goals. The performance management system
ceases to be hierarchical and instead, it becomes a more welcoming two-way
process when self-appraisal formats are included in the system.

Bottom-up Appraisals
Another format that is finding its way into organizations is the Bottom-up
appraisal system, where each employee rates his/her supervisor in areas such as
how well the employee understands his or her responsibilities, receives the help
and feedback necessary to succeed, and so on.
When Should a Performance Appraisal Take Place?
The best performance appraisal is the ongoing appraisal. Employees prefer
frequent feedback over a detailed review that happens once a year. Frequent,
informal interaction with the management makes the employee feel less stressed
and more responsive to feedback. Templates like this, can give a fairly good idea
of questions for performance reviews

ASSESSMENT AND DEVELOPMENT CENTERS

Assessment Center

An assessment center is basically a series of assessments carried out using

several techniques like simulation, psychometric test and exercises to take
critical decisions like selective or rejecting a candidate for recruitment, for
promotions and appraisals etc.

There are some basic considerations for running an assessment centers which is
again the corporate adaptation of an army process.

Assessment centers need to have clearly defined competencies with behavioral

indicators and scales for evaluation and the techniques used for assessment
should assess these very competencies and behaviors.

No other competency or behavior apart from the one identified earlier, however
profound, is evaluated.

There are several techniques used and multiple assessors are involved to assess
candidates in different simulation and exercises.

Simulations exercises are an integral part of both assessment and development

centers.

They basically are situations, exercises and conditions which imitate the real life
working scenario of the assessee.
They find a special place in assessments because they allow opportunities to
observe and assess the assessee’s behavior pertaining to each job related
competency.

Examples of simulations include group exercises, in-basket exercises, structured

interviews, presentations, and fact-finding exercises.

Development Center

Development Centers and assessment centers are often confused as being the
same as they use the same techniques to evaluate employees. But there are
certain clear differences between them.

A development center like an assessment center uses assessment techniques like

simulation, psychometrics etc, but the purpose of it is totally different. A
development center as the name suggests is conducted only for the
developmental purposes of the employees.

It is conducted to assess potential, to identify strengths and development needs

and the end result is a well documented individual development plan for each
participant.

The Development Center can be as long as 3 days where each day the participants
undergo simulation exercises.

It also, has a pre defined competencies and behaviors as reference point which
are assessed during assessments but unlike assessment centers feedback is an
important component of development centers.

During assessment centers it is only the decision that is shared with the
candidates but in the development center, the candidate is provided feedback
after every exercise and towards the closing of the development center an
elaborate feedback session may be conducted which lays the foundation for the
development of an individual development plan for the participant.
As the spirit of a development center is to create an open and transparent
atmosphere for learning, mistakes are not treated negatively but are looked upon
as learning opportunities by both assessors and assessee.

The role of the assessors in the development center also becomes larger as they
now have to also play the part of learning partner with the assessee.

They are more open to hear the assessee and help them realize and explore their
areas of strengths and development.

A development center when used in the organization has a greater acceptability

amongst the employees as it is seen as a non-threatening and objective
assessment of development areas.

Involvement and buy in of line managers can be beautifully integrated in the

development center process by sharing information with them regarding the
performance of their subordinates or team members and seeking their feedback
about the participants on their on the job performance.

This creates a partnership which is crucial for the individual development plan
created after development center to be acted out and the goals outlined,
achieved.

REWARDING PERFORMANCE

Financial rewards, such as merit increases and bonuses, are often the first thing
that come to mind as ways to motivate and reward good performance. When
financial rewards are limited or unavailable, many people wonder what to turn to.
You may ask yourself: how can I motivate people to do good work? How can I give
strong performers rewards and recognition that will keep them engaged?

Research shows that using money as a reward for performance often reduces
motivation because it’s an extrinsic reward. Instead, the most powerful
motivators are intrinsic rewards—personal enjoyment and satisfaction of making
progress toward meaningful goals. These are very powerful drivers of motivation
that are often overlooked.

So, what does this look like? Research indicates that strong performers are more
likely than average or below-average performers to be motivated with things like
support for advancement, greater authority, and feedback and coaching.

Here are specific ways to affirm their performance, keep them motivated, and
ensure job satisfaction.

Stretch Assignments. Setting meaningful goals and making progress toward them
is highly motivating and evokes feelings of satisfaction and engagement. Talk with
your employees about their professional interests and work with them to create
challenging goals that align with those interests. Challenging and meaningful goals
will require your employees to tap into their internal motivations to achieve their
goal.

Coaching and Feedback. Regular feedback is one of the biggest drivers of

performance because it is how you help your employee make progress toward
their goals and priorities on a day-to-day basis. When feedback and coaching
helps people make progress, it creates motivation and engagement. Feedback
and coaching should, at different times, address both positive and negative
behaviors. Be specific about behaviors and explain why a behavior was effective
or ineffective. Describe the situation, the behavior, and the impact of the
behavior on progress toward goals.

Greater Authority. Give faculty and staff the authority they need to ensure their
work is successful. Employees who are trusted to make impactful decisions
respond with better performance and engagement.

Ask yourself:
  How do I know whether employees understand what decisions they can
make?
 How can I drive decision-making into lower levels within my unit?
 In what ways do I delegate challenging work and give employees the
authority to complete the work?

Career Planning and Support. To remain motivated and productive, employees

need to grow in their jobs—and perhaps grow beyond them. Get to know your
employee. Ask them about their goals and the type of rewards they find
meaningful. Here are some questions that will help you understand their goals
and give you ideas on how to support them.

Flexibility. Flexibility can be a reward for a job well performed, and many people
have come to expect flexibility from their employer. First, consider the needs of
the position—some positions require the employee to be at a specific place and
time. However, if the work allows and your employee is meeting expectations,
the opportunity to work outside of normal business hours or the office can be
rewarding and motivating.

Recognize good work. Recognizing your faculty and staff should not be a one-
size-fits-all technique. Find out how each of your employees would like to be
recognized. Some may prefer to be recognized publicly, others are more
comfortable with praise during a one-on-one conversation or a personalized note.
Regardless, affirming good work is sure to encourage more good work.

LINKING REWARDS TO ORGANIZATIONAL OBJECTIVES

Rewards strategies must attract and retain the needed talent and must also be
viewed by employees as equitable, competitive and appropriate. It is also critical
that rewards programs motivate employees to extend their best efforts and to
focus those efforts on meeting organizational objectives.

Getting, keeping and motivating the right talent is challenging in today’s labor
markets. The aftershock of the great pandemic could be the great resignation.
Since critical skills are in short supply and workforce demographics indicate that
talent shortages are going to become even greater organizations must brand
themselves in a manner that attracts the right people and offer a value
proposition that appeals to them.

Organizational Strategy

Organizational strategy creates the roadmap for gaining a competitive advantage.

The strategy must differentiate the organization in some fashion from its
competitors and establish it as an employer of choice for the people best suited
to executing the strategy. Because what is measured and rewarded is what
employees are motivated to do the rewards strategy must be aligned with
organizational strategy.

In order to ensure the strategy acts as a magnetic north for calibrating employee
compasses it must be understood by everyone. Organizations create cultures,
which provide guiding principles. These principles influence what employees do
and how they do it. It is impossible to provide advanced guidance for focusing
effort and resources in every situation, but guiding principles can help to align
everyone’s actions.

Strategic principles are intended to guide decisions about what business to be in.
GE has long mandated exiting businesses where they are not or can not be #1 or
#2. Principles can also shape behavior. Walmart’s guiding principle is low prices,
every day. That informs people that efficiency is important, since competing on
price demands specific behaviors. Southwest Airlines aspires to make air travel
competitive with travel by automobile. This sets the stage for their no-frills
approach and provides employees and customers with a reason why they will not
dine regally while in flight. Apple entices customers with world class design and
functionality, which requires continuous innovation. That clarifies the criteria
employees should use to determine how they focus their efforts.

DETERMINE COMPENSATION STRUCTURE

A number of factors can impact which compensation structure a company

chooses. A few of the most common elements businesses take into consideration
when establishing their pay structure include:

Unions and collective bargaining rights

One factor that can impact some organizations' compensation structures is

whether or not employees are unionized and have collective bargaining rights.
Some companies must consider the contract agreed upon during collective
bargaining sessions to inform their overall compensation structure and the steps,
ranges or grades within it.

Employee perception

Employee perception can influence the overall compensation structure a

company chooses. Most employees want to work for an organization that's
transparent about how their employees are compensated and how those wages
are determined. Creating a compensation system that employees feel is
straightforward and equitable is often in the company's best interest.

Cost of living

Cost of living is another factor in the overall establishment of a compensation

structure. Some areas, particularly big cities, might have higher than average rises
in cost-of-living expenses than in suburban or rural areas of the country.
Considering how annual non-performance or tenure-based increases can impact
the overall pay structure for the business is useful for creating an effective
compensation structure.

Government legislation
Depending on where you live, your state might have specific wage and salary
regulations that can impact how your company structures its organizational
compensation. Some states regularly increase the minimum wage, which can shift
every pay band, step or grade in your company's structure upward.

Job competition

The demand for a certain job can also influence the type of compensation
structure a company uses. For example, if a hospital needs a number of highly
educated, trained and experienced surgeons for its staff, they'll likely use a
benchmarking system to ensure they're paying enough to attract the specific type
of surgeon they need. Alternatively, if a company primarily employs
administrative workers who do not need a tremendous amount of specialized
training, they may use a step or grade structure instead.

Industry

Some industries categorically use the same type of compensation structure, while
others vary from company to company. In the public sector, it's very common to
use a step or grade compensation framework. For example, the military grades all
active-duty employees, paying them the same amount per grade and rank
regardless of job type. Many private sector companies use independent systems
to evaluate their overall pay scheme. Some, like those with longstanding
employees, might rely on the broadband system, while others, particularly newer
companies, might use a benchmarking system.

Growth potential

The company's overall growth potential can also affect how they choose to
structure their organizational pay. For companies who anticipate serious growth
and expansion, it's important to take that potential into account when structuring
a compensation structure. These companies might choose to use a step or grade
system that can easily expand to accommodate more levels, or they may choose
to use a broadband or benchmarking system, which are both easier to manipulate
for singular role changes or additions.
PAY FOR PERFORMANCE

Pay-for-performance compensation can come in many varieties depending on

your organization’s budget, compensation philosophy, and organizational goals.
When designing a pay-for-performance plan, you’ll want to consider the
outcomes your organization is looking to achieve, the frequency with which you’ll
reward employees, and the total increase you’ll be budgeting to fund these
programs.

How Does Pay-for-Performance Compensation Work?

There are two general categories of pay-for-performance compensation: merit

pay increases and variable pay programs. As you look to implement a pay-for-
performance program in your organization, you can use either of these two types
of pay-for-performance plans – or both – to incentivize employee performance
and drive your desired outcomes.

Merit Pay Increases

A merit pay increase refers to an increase to an employee’s base pay due to high
performance. These raises are typically delivered an annual basis, and are
budgeted for as part of the annual salary increase budgeting process. Merit pay
increases are the most commonly used pay-for-performance model for
recognition of employee performance, as they deferentially reward top
performers for their contributions with a bump to their base salary for the
following year.

However, according to Chris Fusco, the Senior Vice President of Compensation at

Salary.com, the external market is progressing in pay faster than merit
pay increases alone can match. This makes top performers in your organization
a flight risk, because they could potentially walk out the door just to take a job
that offers more competitive pay.
Addressing Market Movement with Pay-for-Performance Programs

In this competitive environment, many organizations are turning to variable pay

programs to keep top recruits’ and top performers’ pay competitive with the
market. Whereas salary increase budgets have remained flat at 3% for the last
several years, data from Salary.com’s Pay Practices and Compensation Strategy
Survey shows that many firms are adding budget to their variable pay programs.

ESOP

Many companies compensate and motivate their employees by giving them the
opportunity to own part of the company through private or public stock shares.
When implemented properly, employee stock ownership has benefits for
employee compensation, tax obligations and your company culture.
This is where ESOPs become important. What is an ESOP, and what does ESOP
stand for? Simply put, an ESOP is an Employee Stock Ownership Plan. The
advantage of these is that they create a well-defined structure for your financial
strategy toward employee stock ownership and better alignment between the
staff’s and employer’s financial goals

How do ESOPs work?

When a business sets up an ESOP, they establish a trust to act as a separate legal
entity to hold shares of company stock. The company then either directly deposits
money into the trust, takes out a loan to fund the trust or uses a combination of
profit and borrowed money. The trust then purchases a predetermined number
of shares directly from the company or buys them back from outside or public
buyers.

Once the trust has purchased company shares, they distribute them to employees
based on their contribution to the company, pay grade, length of employment or
another equitable formula. Employees generally receive more stocks as time goes
on, much like a regular retirement account that grows with each employer
contribution.
If the employee leaves the company or retires, they sell their stocks back to the
trust. The trust then uses those stocks tocompensateemployeesthat qualify for
the ESOP plan, keeping company ownership within a core group of employees
over time.

Benefits of having an ESOP for your business

ESOPs offer numerous benefits to both employers and employees. For employers,
their advantages cover administrative control, tax planning and financial
health. Here are some key benefits of these employee stock ownership plans:

Preserving the company

Allowing an outside trust to manage shares that are exclusively available to
employees helps ensure that your business will continue running even after
company leadership retires. This creates a sense of continuity because shares are
regularly redistributed to employees as people leave. Because these employees
have a stake in the company’s well-being, they’re more likely to act in line with its
benefit.

Lower turnover
A long-term benefit of ESOPs is that they financially encourage staff longevity in a
company that uses them. By having your employees and management committed
to the company through share ownership, you give them a strong reason to stay
so that the value of these shares increases. This can improve loyalty and reduce
turnover to save the company money on recruiting, hiring and training new staff.

Tax advantages
ESOPs can be used to create multiple kinds of tax deductions in a company.
Contributions of stock to an ESOP are tax-deductible, allowing the company
leadership to gain a cash flow advantage through new stock. Furthermore, cash
contributions to the ESOP trust can also be tax deducted regardless of whether
these contributions are used to buy back shares or to remain as cash reserves for
future needs. Dividends and loan repayments are also tax-deductible through
ESOPs.
Creating a share market
Business owners can use the creation of an ESOP to maintain a stable market for
shares in their company. With this, the company can issue new shares to
employees as needed for the sake of gaining funds or buy them back through tax-
deductible loans and cash payments. Owners can also shift their control of the
company toward employees as desired by increasing employee ownership, thus
slowly blurring the line between employee and employer.

Additional loyalty benefits for employees

Employers can use an ESOP to issue shares as part of an employee savings plan.
By matching their employees’ savings contributions in stocks from the ESOP
instead of cash, owners and employers can often contribute to employee benefits
at a higher-than-normal level. This also allows company owners to save cash for
other uses.

How ESOPs benefit your employees

ESOPs can also bring direct benefits to your employees in ways that improve
their morale and reduce certain costs to you as an employer:

 Delayed taxation:Much like a 401(k), Employee Stock Ownership Plans

allow workers to not pay taxes on the value of their ESOP contributions
until they retire or cash out their plan.
 No-cost retirement planning:Employees do not have to pay anything to
accumulate shares of company stock.
 Empowerment:An ESOP can help employees feel more excited about their
work and motivated to see their employer succeed because they directly
own a value-accumulating part of in the company.


EXECUTIVE COMPENSATION
Executive compensation definition

Executive compensation, also known as executive pay, refers to remuneration

packages specifically designed for business leaders, senior management and
executive-level employees of a company.

Executive compensation includes benefits such as salaries, perks, incentives,

insurances etc.

Importance of executive compensation

Senior management and executive-level employees play a crucial role in the

company as they're the ones making the strategies, taking importance decisions
etc. In order to keep them motivated and satisfied it's important to set the right
benefits package.

This type of compensation is negotiable between the employer and potential

executive and can defy the organizational norms on compensation to regular
employees.

Components of executive compensation

1. Salary

2. Short Term Incentives (STI)

3. Long Term Incentives (LTI)

4. Guaranteed Severance Package

5. Perquisites – like club memberships, private planes

6. Insurance – health insurance for self and dependents

DESIGNING AND ADMINISTERING BENEFITS AND SERVICES

DESIGNING BENEFITS AND SERVICES

If you're looking to design a benefits plan for your employees, here are some
steps you can take:

1. Define your goals

The first step to designing an effective employee benefits plan is considering your
company objectives and specific goals for the program. Identifying your priorities
and hopes can help you determine which benefits it makes the most sense for
your organization to offer.

Here are some important factors to consider when defining your goals:

 Employee value proposition: Your employee value proposition is what you

offer to employees in return for their time and skills. Providing a
comprehensive benefits package can increase your employee value
proposition and improve the strength of your employee offerings.
 Cost: How much you can afford to spend on benefits plans is a huge
consideration. If this is your first time offering a plan or you have specific
cost constraints, consider collecting quotes from prospective suppliers.
 Competitiveness: Having a competitive compensation offering of both
salary and benefits can attract qualified candidates to your job. Consider
researching market trends so you can create plans with comparable value
to other employers hiring from your same group of applicants.
 Employee needs: The coverage, resources and insurance you offer can
have dramatic effects on your employees' well-being. Offering more robust
plans can help employees access the resources they need and protect
themselves against unforeseen events.

2. Perform a needs assessment

A needs assessment is a strategy you can use to build a comprehensive benefits

plan. The assessment can offer valuable information that allows you to determine
the strengths of your current offerings and decide where you can improve your
benefits package to better align with your goals.
In your needs assessment, consider:

 Employees: You might design your plan based on perceived employee

needs. For example, younger employees may value time off more than
older employees who might value robust retirement plans. Understanding
employee needs and values can help you offer plans they find useful.
 Regulations: Federal tax laws and governmental regulations might require
you to offer certain benefits to employees. Review local laws to ensure
your benefits plan meets the minimum requirements.
 The job market: Market research can help you determine average industry
offerings and popular plans. This can help you understand the needs of the
market and help you retain employees and attract qualified candidates.
 Use of benefits: If you have current plan offerings, understanding how
frequently employees use their benefits can help you refine your plan.
Certain insurance plans provide reviews you can use to determine the value
your benefits bring to employees.

3. Determine the level of benefits you want to offer

With your organization's goals and needs in mind, you can begin to design your
new benefits plan. Organize the benefits you'd like to offer according to their
priority. Use this information to calculate how much it would cost to provide
those benefits to your employees. This can help you examine if your current
budget allows you to provide the prioritized benefits. Depending on your goals,
you might look for minimal plans that create room for cost savings or more
comprehensive plans that can attract qualified candidates and cover all their
needs.

If you're altering an existing plan, finding areas where you can eliminate under-
used offerings can reduce costs and optimize your plan's functionality. You can
also use this stage to decide additional factors like employee contribution
amounts, cost containment features and necessary administration resources.
Carefully research plan offerings to find one that provides the best value to your
company.

4. Share your plan with employees

Effectively communicating offerings can help employees understand their options

and get the most use from their plan. If you collected feedback from your
employees to help you decide what plans to offer, you can tell them how their
input influenced your decisions. This can increase their support of the benefits
and help them feel heard and valued. There are some legal requirements for how
to communicate your plans to employees, but consider going further. Successful
communication can help you improve employee moral, encourage increased
employee retention, attract high-quality candidates and reduce confusion
surrounding the benefits package.

Here are some helpful strategies for communicating information about your plan:

 Create awareness: The first step to successful communication is creating

awareness of your new package. Consider announcing the change in a
company-wide meeting or introducing important points in an email to
employees.
 Ensure understanding: You can ensure your employees understand their
plan's benefits by creating informative resources for them to review or
providing a company-wide training. This can encourage plan recipients to
use their benefits wisely.
 Be available: Employees may have questions about their plans. Being
available to answer questions and resolve concerns can improve employee
reception to the plan.

5. Perform periodic evaluations

Consider evaluating your plan often to determine the effectiveness of your

benefits. Certain events might cause your needs to change. For example, changes
to your organization's financial situation, workplace demographics, regulatory
updates or market conditions might alter your goals and requirements.
Continually assessing your benefit plan can help ensure it's still meeting your
company's and employee's needs. You can use strategies like benchmarking to set
expectations for your benefit offerings and determine their success. Regular
needs assessments can also help businesses measure the viability of their plans.

ADMINISTERING BENEFITS AND SERVICES

Follow through on feedback

Asking for employee feedback when deciding on a plan offering can ensure you
offer the most relevant and useful benefits to employees. While it may be difficult
to accommodate everyone's requests or suggestions, showing employees you
value their input can help them feel valued and prioritized. Consider narrowing
down your options before asking employees for their opinion. This way, you can
keep their expectations realistic and their suggestions relevant to your decision. If
you choose a plan that addresses employee needs, be sure to inform them how
their input influenced your decision.

Consider third parties

Depending on a company's size, they may choose to bring in additional help to

research and maintain employee plans. Hiring a benefits broker or a third-party
administrator can reduce the potential strain of managing a company-wide
benefits plan. However, if you choose to fulfill these roles internally, carefully
develop strategies for managing the workload associated with offering a benefits
plan to your employees.

Provide education opportunities

Ensuring employees understand their choices and benefits available to them can
help them make the most of their plans and understand the value of their
benefits. Most companies have their employees sign up for benefits during a
period called open enrollment. This is a crucial time to provide education on your
plan and what it offers. Extending the education opportunities beyond open
enrollment, however, can help ensure employees use their plans throughout the
year and take advantage of the benefits your company provides.

You can encourage employees to use and interact with their benefits by creating
wellness events or similar engagement activities. Providing tips and making
information readily available can help employees access their plan details and
grow their understanding.
UNIT IV

HR IN KNOWLDEGE ERA

HR IN KNOWLEDGE INDUSTRY

Introduction

Liberalization, Privatization, and Globalization have influenced all segments

of society. While the impact is minimal in some sectors, it is widespread in others.
Business organizations in India, therefore, not only face competition from global
players, but more so from the domestic players. Therefore, organizations need to
be more innovative, competitive, and proactive in their endeavours. There is an
urgent need to anticipate, advocate, and accelerate the change processes in the
business environment and act accordingly. The gaps that demand attention in
organizations, especially from HR functionaries, are talent gaps, knowledge gaps,
and strategy gaps. It becomes essential, then, to redefine and transform HR
practices from the traditional reactive approach to those that can anticipate
business needs and provide solutions for them.
Knowledge is the full utilization of information and data, compelled with
the potential of people’s skills, competencies, ideas, intuitions, commitments and
motivations. Knowledge is more relevant to sustained business then capital and
land. Nevertheless it remains the most neglected asset.
A holistic view considers knowledge to be present in ideas, judgments,
talents, root causes, relationships, perspectives and concepts. Knowledge is
stored in the individual brain or encoded in organizational processes, documents,
products, services, facilities and systems. Knowledge is the result of learning
which provides the only sustainable competitive advantage. Knowledge is action,
focused innovation, pooled expertise, special relationships and alliances.
Knowledge is value-added behavior and actions.
Knowledge management is an audit of intellectual assets that highlights
unique sources, critical functions and potential bottlenecks which hinder
knowledge flows to the point of use. It protects intellectual assets from decay,
seeks opportunities to enhance decisions, services and products through adding
 intelligence, increasing value and providing flexibility. Knowledge management
complements and enhances other organizational initiatives such as total quality
management (TQM) business process re-engineering (BPR) and organizational
learning, providing a new and urgent focus to sustain competitive position.
Knowledge management comprises a range of strategies and practices used
in an organization to identify, create, represent, distribute and enable adoption of
insights and experience. Such insights and experiences comprise knowledge,
either embodied in individuals or embedded in organizations as processes or
practices.
Knowledge management efforts typically focus an organizational objectives
such as improved performance, competitive advantage, innovation, the sharing of
lessons learned, integration and continuous improvement of the organization.
Knowledge management efforts overlap with organizational learning and may be
distinguished from that by a greater focus on the management of knowledge as a
strategic asset and a focus on encouraging the sharing of knowledge.
Knowledge Management - A Key Emerging Area
· According to Webster’s Dictionary, Knowledge is the fact or condition of
knowing something with familiarity gained through experience or association.
Knowledge refers to ideas or understanding which an individual possesses, and
those that are utilized effectively for goal realization.
· Knowledge Management is defined as the systematic process of finding,
selecting, organizing, and resenting information in a way that improves
employees’ comprehension in a specific area of interest.
A simple definition of knowledge management is that it is ‘about
connecting people to people and people to information to create competitive
advantage’. In other words, it is the systematic process of finding, selecting,
organizing, distilling, and presenting information in a way that improves an
employee’s comprehension in a specific area of interest. It helps an organization
to gain insight and understanding from its own experiences. Knowledge
management is first and foremost a management discipline that treats
intellectual capital as a managed asset.
HR IN VIRTUAL ORGANIZATIONS

Planning, recruitment, development, maintenance, retention, and socialisation

are the common HR issues that ensure right HR tor right job. These also control
and regulate the antecedent conditions of performance. Virtual organisations are
staffed by highly proficient workers who are left to do their own things and
produce highly competitive products or services.

Jobs in virtual organisations being knowledge-based are assumed to require

greater skills, have greater variety and offer better quality of working life (QWL).
From HR point of view, virtual organisation has both sides of the coin. The one
(positive) side is greater job autonomy and more financial stability, which are the
most sought after things by the workers in any organisation. This is so because of
the reduced commuting, lunches and the clothing costs.

Added to these are increased working hours, a perceived increase in

performance, reduced job-stress and better social relationships as barriers
between the home and work interface are dissolved. However, the other
(negative) side includes aspects like longer work hours, increased work demands,
poor working (physical) conditions and fewer career opportunities. In virtual
organisations, jobs are variable and of short term. People with multi-skill are
valuable to the organisation.

The major HR issues involved in a virtual organisation are:

1. Recruitment is conducted under time pressure and requires high performance
expectations.

2. Both human capital i.e., knowing one’s job and social capital i.e., knowing each
other become extricably linked.

3. Stability in social relationship is not very much required.

4. Master-apprentice relationship is craft-based learning techniques matter.

5. Work pace is variable because the need for readiness to be mobilized at any
moment, like defence service, is high.

6. Job is of short term. This requires virtual organisations a heavy investment to

create systems and staffing structures.

The employee selection is a very crucial area in virtual organisation. The reason
being people have to work in a virtual set up. Hence, there are certain
requirements need to be met to work in virtual organisations.

The important ones are:

1. Self-guided and motivated because employees are left to ‘do their own thing’

2. Knowledgeable about the organisational procedures

3. An effective communicator

4. Adaptable

5. Familiarity with the job

6. Result-oriented

It is, therefore, essential to consider the above qualities while recruiting people to
work in virtual organisations. There is a need to select those employees whose
values are in consonance with the organisational requirements/culture.

For example, introverts might be more suitable for home-based tele-work

involving low intra and extra organisational communication. On the contrary,
extroverts might be more suitable for mobile tele-works involving high degree of
extra- organisational communication.

HR IN MERGERS AND ACQUISITIONS

The consideration of a merger or acquisition usually comes packed with mixed

feelings, including excitement, fear, uncertainty, enthusiasm and resistance.
These emotional reactions can occur at every level of the organization. How an
organization deals with its employees before, during and after the transaction can
have a determinative impact on the success of the transaction.
Both mergers and acquisitions present significant challenges to HR professionals.
The M&A process requires management of both organizations to consider all
implications of a proposed merger or acquisition before agreeing to one—which
necessarily involves consideration of the "people issues" created by a proposed
merger or acquisition. HR professionals are often involved in the process by
advising management on human resource matters, including using surveys and
other metrics to gather relevant data, identifying potential conflicts or HR
challenges between the two companies, integrating HR practices and company
cultures after an M&A, and managing talent decisions such as layoffs, to name a
few.
HR professionals face a number of challenges during M&As, including:

 Attempting to maintain an internal status quo, or to effect change—either

to facilitate or thwart (in the case of a hostile takeover) a possible merger
or acquisition, as instructed by upper management.
 Attempting to provide guidance to upper management from a "people"
perspective as to whether organizational goals will be better fulfilled in the
form of a merger versus an acquisition, or by making internal changes.
 Assuming that a merger or acquisition has been approved, discerning all
aspects of the two separate organizations and the one combined
organization that will be affected.
 Communicating with employees at every step in the M&A process with
both an appropriate level of disclosure and an appropriate level of
confidentiality.
 Devising ways to meld the two organizations most effectively, efficiently
and humanely for the various stakeholders.
 Dealing with the reality that M&As usually result in layoffs of superfluous
employees under the combined organization. This reality entails
 coordinating separation and severance pay issues between the combining
organizations.
 Proactively avoiding legal issues for violation of federal and state anti-
discrimination laws and the Worker Adjustment and Retraining Notification
Act (WARN).
 Participating in the defense of lawsuits that may be brought as a result of a
merger or acquisition.
 Aligning the HR function to achieve the organization's strategic
objectives. See Aligning Workforce Strategies With Business Objectives.
 Addressing the ethical dilemmas involved, in which an HR professional may
be required to eliminate his or her own position, the position of a current
co-worker, or the position of an HR counterpart in the combining
organization.

OUTPLACEMENT

Also known as career transition services, outplacement is an employee-sponsored

benefit provided to workers who have recently been laid off. The service is an
option part of offboarding and is usually offered as part of a severance package
and designed to help them smoothly transition to another position or industry. In
most cases, it includes a variety of services, such as career coaching, interview
training, job search advice and more.

Outplacement services are often provided in a one-on-one or group setting, in

person, online or via phone. While you can choose an employee to offer
outplacement internally, most companies partner with a third party that takes the
services off their plate. It’s up to you to determine which option makes sense for
your company. If you’re a smaller organization with limited resources,
outsourcing is likely your best bet.

Once you lay off employees, you’ll send a list of them to the outplacement
provider. Then, your employees will be able to contact them for services.
Typically, they’ll meet with a career coach who will explain how they can help.
While most outpatient providers will allow former employees to take advantage
of services immediately, some have a waiting period.

It’s important to understand that outplacement services do not source jobs or

place former employees in them. Instead, they support former employees with
the knowledge and training they need to overcome any challenges in finding a
new job. They support them with various parts of the job search process and
make job loss a bit less stressful.

Benefits of Outplacement

Since outplacement involves spending time and money on employees who are
leaving your company, you might wonder why you would commit to it. Here are
several of the many benefits you can enjoy if you offer outplacement services.

 Improve Your Reputation: By investing in outplacement, you convey that

you genuinely care about your employees. This can position your company
in a positive light and make it easier to recruit and retain top talent down
the road.
 Reduce Risk: It’s not uncommon for workers to feel frustrated or angry
when they get laid off. But if they know you’ll help them land another job,
they’ll be less likely to engage in workplace violence or a wrongful
termination lawsuit.
 Increase Employee Morale: Layoffs can be uncomfortable for existing
employees. If they know you’re offering outplacement services, however,
they’ll be less anxious and more motivated to continue working hard for
your company.
 Lower Unemployment Costs: Outplacement helps former employees find
new jobs faster than they’d be able to on their own. The faster they secure
employment, the less they’ll need unemployment benefits, and the lower
your unemployment insurance rates will be.

Drawbacks of Outplacement
The most obvious downside of outplacement is that it will cost you. If you’re a
startup or newer company, you might not have the funds to cover these services.
Also, your laid-off workers may be competing with their peers for the same jobs.
In addition, unless your outplacement services are personalized, some workers
might struggle to stand out in the job market and land the type of positions they
desire.

OUTSOURCING HR FUNCTIONS

COMPENSATION
The compensation functions commonly outsourced are payroll, job evaluation
systems, salary surveys, executive compensation design and expatriate
compensation. Outsourcing to third-party administrators for payroll and related
tax duties helps employers meet filing deadlines and deposit requirements. The
reasons for outsourcing may include cost savings, a need to improve customer
service, the decision not to develop internal expertise, the ability to take
advantage of technology not available in-house, or a desire for the HR
department to work more strategically and less transactionally.
Third-party services and systems have historically been used to provide or support
complex aspects of compensation administration, including job evaluation
systems, salary surveys and executive compensation design, whereas actual
administration remained an internal function in large organizations. As
outsourcing continues to evolve, marketplace options for truly outsourcing
compensation administration are becoming available, including point solutions,
single-process outsourcing and integrated HR outsourcing.
Point solutions. In this approach, the vendor provides hosted software to support
the compensation administration process, and sometimes also provides a degree
of call center support. However, the client retains responsibility for the overall
success of the compensation administration function and for any aspects of the
administration not performed by the vendor. Point solutions for compensation
administration are limited in scope and are usually associated with the adoption
of an external portal for employee self-service.
Single-process outsourcing. In this approach the organization selects one vendor
to perform all of its compensation administration.
Integrated HR outsourcing. Under this approach—currently the most commonly
used—compensation administration is outsourced in conjunction with a larger
outsourcing arrangement that includes workforce administration. In fact,
compensation administration can be a natural extension of the outsourcing of
workforce administration. Most workforce administration vendors have at least
salary and bonus administration capabilities that are linked to their employee and
manager self-service capabilities. Those tools make them well positioned to take
over many of the more routine tasks associated with compensation
administration.
Organizations with specific needs in compensation administration should search
for more tactical, subprocess outsourcing arrangements to supplement or
enhance their current services. An example of this approach would be to
outsource expatriate administration, which is a subprocess specialty within
compensation administration and has an established vendor community.
WORKFORCE ADMINISTRATION
The term workforce administration refers to the following set of HR functions and
activities:

 Development, maintenance and operation of HR information systems.

 Employee and manager policy and procedure support.
 Employee and manager self-service and customer service.
 Employee data management and records retention.

Outsourcing workforce administration is often considered the foundation for the

outsourcing of many other functional areas. In fact, many functional areas within
HR, such as compensation administration and performance management, are
typically outsourced only in conjunction with workforce administration.
EXTERNAL RECRUITMENT
Outsourcing is not a panacea for recruitment, but many organizations are testing
it and finding it useful. Success in outsourcing external recruitment depends on
defining and deploying an effective talent-sourcing strategy, selecting an
appropriate area for testing recruitment outsourcing in the organization,
establishing clear performance expectations and measures, and carefully selecting
a recruitment partner. The potential benefits include building a strategic
partnership focused on obtaining top-quality talent critical for the organization's
success.
With recruitment-process outsourcing (RPO), buyers take full advantage of
flexible options that turn a fixed expense into a more manageable variable
expense—a flexibility that enables the organization to adapt to the ups and
downs of a fluctuating marketplace.
RELOCATION
The need to deal with the unexpected is one reason many HR professionals
consider outsourcing various relocation functions. These include claims
assistance, audit and payment of invoices, shipment monitoring, expense
tracking, reimbursement, and supplementary services. International organizations
are much more likely than national companies to outsource relocation services.
EMPLOYEE REWARDS AND RECOGNITION
Recognition and rewards programs are taking their place among services better
handled by outside specialists. Recognition programs can provide incentives and
reinforcement for desired employee behaviors in areas such as productivity, sales,
workplace safety, years of service and cooperation with peers. But the programs
can be time-consuming to administer. Even a program that simply recognizes
employees for years of service involves several tasks for obtaining accoutrements
for the program, such as plaques, certificates or gifts. Administrative tasks
increase as the program becomes more complex and specialized. Outside vendors
can be enlisted to handle many of the routine tasks of rewards programs, freeing
HR for other responsibilities.
BENEFITS ADMINISTRATION
HR managers, who spend an estimated 25 percent to 30 percent of their time
managing employee benefits, must protect their organization's bottom line while
maintaining employee satisfaction. One way for HR to achieve those purposes can
be to partner with a third-party benefits administration provider—a practice
known as benefits administration outsourcing. Through negotiated contracts,
volume buying and economies of scale, providers deliver program advantages
that many individual HR professionals may not be able to secure on their own.
Providers can also be enlisted to manage the most challenging part of benefits
administration: the annual enrollment process. Among the key services offered by
benefits administration providers are:

 Call center support.

 Eligibility management and audits.
 Improved carrier oversight.

EMPLOYEE LEASING

A leased employee is someone who receives a paycheck from a leasing company

while performing services for another company. The employer who’s leasing the
employee controls the work they perform while the leasing firm is responsible for
reporting their wages and taxes. To cover the leased employee’s wages, benefits,
taxes and administrative fees, the employer pays the leasing firm directly.

Benefits of employee leasing

There are a number of reasons why an employer may want to lease an employee
rather than hire them directly:

 To avoid administrative complexities: By leasing employees, you can add

additional workers without adding additional administrative tasks, as the
leasing firm handles payroll, W-2 forms claims processing, state and federal
regulatory compliance, unemployment insurance and other paperwork
responsibilities. Because the leasing firm handles these responsibilities, it
frees up the time of in-house personnel for more high-impact tasks.
  To provide better healthcare for employees:Because leasing firms can
combine the employees of different companies into one large group, they
can typically offer better rates for healthcare coverage, saving both the
employer and employee money.
 To access HR expertise: Because leasing firms employ hundreds,
sometimes thousands, of employees, they have an abundance of
knowledge to offer their clients, such as helping to rewrite job descriptions
or with recruiting.
 To estimate costs more easily: Employee leasing is often available for a flat
rate, which makes it easier for companies to calculate their annual
expenses.

Related: What is a Contingent Worker?

Drawbacks of employee leasing

While there are many well-documented advantages of employee leasing, there
are some drawbacks as well, including:

 Less control: One of the greatest risks of employee leasing is that you’re
delegating an important part of your business to an outside company that
doesn’t know your business as well as you do. You lose control of your
processes, systems and benefits.
 Diminished value of internal HR department: If the leasing firm is handling
the majority of your HR responsibilities, your internal HR team may be less
valuable to the organization.
 Outside influence on culture:When an outside company is responsible for
employing your team members, you have less control over the internal
culture you are creating within your organization.

HR AUDIT

One critical, yet often overlooked, function of human resources (HR) is regular
audits. Depending upon the type of business, audits can be anywhere from
important to critically essential. At a minimum, audits are important to every
business; for businesses working with the US government, those audits can be
critically essential and can be the difference between winning or losing
government contracts. Additionally, audits can help ward off fines and violations,
such as non-compliance with labor posting requirements, failure to secure I9
information on new hires and failure to comply with the Fair Labor Standards Act
(FLSA). Audits are also an excellent way to identify where gaps occur so that
processes for improvement can be implemented. Following are key areas for HR
audits, which are recommended on an annual basis.

Company policies and procedures – Typically, company policies and procedures

are documented by way of an employee handbook. Throughout the year, policies
may change, so completing an in-depth annual review of the handbook is
important to catch changes to policies and procedures such as time reporting,
disciplinary procedures, lunch breaks, holiday schedules, etc. When employee
handbooks are not maintained, it can leave areas of vulnerability where policy
and practice are inconsistent.

INTERNATIONAL HRM

International HRM is a term encompassing all the HR practices involved in

managing a global workforce. International HR professionals are responsible for
the following within a multinational corporation:

 Talent management including recruitment

 Expatriation and repatriation
 Training and developing
 Compensation
For clarity, a multinational corporation (MNC) is one with a business presence in
various countries. Typically, the business will be managed from the ‘parent’
or home country in which it is headquartered, but it will operate from various
international locations. Well-known multi-nationals include Apple, Amazon and
Unilever, but smaller businesses can class themselves as MNCs if they have
subsidiaries in two or more countries.
As MNCs have globally dispersed employees, they require International
HRM specialists to deal with the specific requirements and considerations around
recruiting, onboarding and managing them.

Solved Question Paper

May 2018

Question. What is Human Resource Management in changing Environment?

Define it’s process?

Answer.

Introduction

• Human: refers to the skilled workforce in an organization.

• Resource: refers to limited availability or scarce.

• Management: refers how to optimize and make best use of such limited or
scarce resource so asto meet the organization goals and objectives.

In simple words, “human resources” means the people. HRM deals with best
utilization of availablehuman resources in the organisation . However various
management experts have defined HRM in adifferent way.

According to Wendell L French, “The human resource management refers to the

philosophy,policies,procedures, practice related to the management of people
within the organisation”.

According to Decenzo and Robbins, “Human Resource Management is concerned

with the peopledimension” in management.

According to Bratton and Gold, “HRM is a strategic approach to managing

employment relations whichemphasize the leveraging people’s capability is
critical to achieving competitive advantage ,this beingachieved through a
distinctive set of integrated employment policies,programmes and practices”.
Process of Human Resource Management is as follows:

The Process of Human Resource Management refers to all the activities that come
under the banner ofHuman Resource Management. These activities are as
follows.

➢ Human resources planning :-Human resource planning or Human Resource

Planning refers to aprocess by which the company to identify the number of jobs
vacant, whether the company hasexcess staff or shortage of staff and to deal with
this excess or shortage.

➢ Job analysis design :-Another important area of Human Resource Management

is job analysis.Job analysis gives a detailed explanation about each and every job
in the company.

➢ Recruitment and selection :-Based on information collected from job analysis

the companyprepares advertisements and publishes them in the newspapers.
This isrecruitment. A numberof applications are received after the advertisement
is published, interviews are conducted andthe right employee is selected thus
recruitment and selection are yet another important area of Human Resource
Management.

➢ Orientation and induction :-Once the employees have been selected an

induction or orientation

program is conducted. This is another important area of Human Resource

Management. The

employees are informed about the background of the company, explain about
theorganizational culture and values and work ethics and introduce to the other
employees.

➢ Training and development :-Every employee goes under training program

which helps him toput up a better performance on the job. Training program is
also conducted for existing staffthat have a lot of experience. This is called
refresher training. Training and development is onearea where the company
spends a huge amount.

➢ Performance appraisal :-Once the employee has put in around 1 year of

service, performanceappraisal is conducted that is the Human Resource
department checks the performance of theemployee. Based on these appraisal
future promotions, incentives, increments in salary aredecided.

➢ Compensation planning and remuneration :-There are various rules regarding

compensation andother benefits. It is the job of the Human Resource department
to look into remuneration andcompensation planning.

Que Discuss the importance of HRM.

Ans. Significance of Human Resource Management is as follows:

Human Resource Management becomes significant for business organization due

to the followingreasons.

❖ Objective :- Human Resource Management helps a company to achieve its

objective from timeto time by creating a positive attitude among workers.
Reducing wastage and making maximumuse of resources etc.

❖ Facilitates professional growth :- Due to proper Human Resource policies

employees are trainedwell and this makes them ready for future promotions.
Their talent can be utilized not only inthe company in which they are currently
working but also in other companies which theemployees may join in the future.

❖ Better relations between union and management :- Healthy Human Resource

Managementpractices can help the organization to maintain co-ordinal
relationship with the unions. Unionmembers start realizing that the company is
also interested in the workers and will not goagainst them therefore chances of
going on strike are greatly reduced.
❖ Helps an individual to work in a team/group :- Effective Human Resource
practices teachindividuals team work and adjustment. The individuals are now
very comfortable while workingin team thus team work improves.

❖ Identifies person for the future :- Since employees are constantly trained, they
are ready tomeet the job requirements. The company is also able to identify
potentialemployees who canbe promoted in the future for the top level jobs.
Thus one of the advantages of HRM ispreparing people for the future.

❖ Allocating the jobs to the right person :- If proper recruitment and selection
methods arefollowed, the company will be able to select the right people for the
right job. When thishappens the number of people leaving the job will reduce as
the will be satisfied with their jobleading to decrease in labour turnover.

❖ Improves the economy :- Effective Human Resource practices lead to higher

profits and betterperformance by companies due to this the company achieves a
chance to enterinto newbusiness and start new ventured thus industrial
development increases and the economyimproves.

Que : Explain the Functions of Human Resource Management in Detail.

Answer: Functions of Human Resource Management:

Human Resource Management functions can be classified into the following three
categories.

▪ Managerial Functions

▪ Operative Functions

▪ Advisory Functions.

The Managerial Functions of Human Resource Management are as follows:

Human Resource Planning – In this function of HRM, the number and type of
employees needed toaccomplish organizational goals are determined. Research is
an important part of this function,information is collected and analyzed to
identify current and future human resource needs and toforecast changing
values, attitudes, and behavior of employees and their impact on the
organisation.

Organizing – In an organization tasks are allocated among its members,

relationships are identified, andactivities are integrated towards a common
objective. Relationships are established among theemployees so that they can
collectively contribute to the attainment of the organization’s goal.

Directing – Activating employees at different levels and making them contribute

maximum to theorganization is possible through proper direction and motivation.
Taping the maximum potential of theemployees is possible through motivation
and command.

Controlling – After planning, organizing, and directing, employees’ actual

performance is checked,verified, and compared with the plans. If the actual
performance is found to deviate from the plan,control measures are required to
be taken.

The Operative Functions of Human Resource Management are as follows:

Recruitment and Selection – Recruitment of candidates is the function preceding

the selection, whichbrings the pool of prospective candidates for the organization
so that the management can select theright candidate from this pool.

Job Analysis and Design – Job analysis is the process of describing the nature of a
job and specifying thehuman requirements like qualifications, skills, and work
experience to perform that job. Job design aimsat outlining and organizing tasks,
duties, and responsibilities into a single unit of work for theachievement of
certain objectives.
Performance Appraisal – Human resource professionals are required to perform
this function to ensurethat the performance of employees is at an acceptable
level.

Training and Development – This function of human resource management helps

employees acquireskills and knowledge to perform their jobs effectively. Training
and development programs areorganized for both new and existing employees.
Employees are prepared for higher-level responsibilitieshrough training and
development.

Labour Relations – This function refers to human resource management

interaction with employeesrepresented by a trade union. Employees come
together and form a union to obtain more voice indecisions affecting wages,
benefits, working conditions, etc,.

Personnel Research – Personnel research is done by human resource

management to gather employees’opinions on wages and salaries, promotions,
working conditions, welfare activities, leadership, etc,. Suchresearches help in
understanding employee satisfaction, employee turnover, employee
termination,etc,.

The Advisory Functions of Human Resource Management are as follows:

Human Resource Management is expert in managing human resources and so can

give advice onmatters related to human resources of the organization. Human
Resource Management can offer adviceto:

Advised to Top Management

The personnel manager advises the top management in the formulation and
evaluation of personnelprograms, policies, and procedures.Advised to
Departmental HeadsThe personnel manager advises the heads of various
departments on matters such as manpowerplanning, job analysis, job design,
recruitment, selection, placement, training, performance appraisal,etc.

Que: why is it important for HR management to evolve from the administrative

and operational role to the strategic one?

Ans. Objectives of Human Resource Management :

Societal objective.

To be socially responsible to the needs and challenges of society while minimizing

the negativeimpact of such demands upon the organization. The failure of
organizations to use their resourcesfor society's benefit may result in restrictions.
For example, societies may pass laws that limithuman resource decisions.

Organizational objective.

To recognize that Human resource management exists to contribute to

organizationaleffectiveness. HRM is not an end in itself; it is only a means to assist
the organization with itsprimary objectives. Simply stated, the department exists
to serve the rest of the organization.

Functional objective.

To maintain the department's contribution at a level appropriate to the

organisation's needs.Resources are wasted when Human Resource Management
is more or less sophisticated than theorganisation demands. A department's level
of service must be appropriate for the organisation itserves.

Personal objective.

To assist employees in achieving their personal goals, at least insofar as these

goals enhance the individual's contribution to the organisation. Personal
objectives of employees must be met ifworkers are to be maintained, retained
and motivated. Otherwise, employee performance andsatisfaction may decline,
and employees may leave the organisation.

Importance of HR management to evolve :

➢ Human resource planning (Recruitment, Selecting, Hiring, Training, Induction,

Orientation,

Evaluation, Promotion and Layoff).

➢ Employee remuneration and Benefits Administration.

➢ Performance Management.

➢ Employee Relations.

❖ Human Resource Planning: Generally, we consider Human Resource Planning

as the process ofpeople forecasting. Right but incomplete! It also involves the
processes of Evaluation, Promotionand Layoff.

❖ Recruitment: It aims at attracting applicants that match a certain Job criteria.

❖ Selection: The next level of filtration. Aims at short listing candidates who are
the nearest matchin terms qualifications, expertise and potential for a certain job.

❖ Hiring: Deciding upon the final candidate who gets the job.

❖ Training and Development: Those processes that work on an employee

onboard for his skills andabilities upgradation.

❖ Employee Remuneration and Benefits Administration: The process involves

deciding uponsalaries and wages, Incentives, Fringe Benefits and Perquisites etc.
Money is the primemotivator in any job and therefore the importance of this
process. Performing employees seekraises, better salaries and bonuses.

❖ Performance Management: It is meant to help the organization train, motivate

and rewardworkers. It is also meant to ensure that the organizational goals are
met with efficiency. Theprocess not only includes the employees but can also be
for a department, product, service orcustomer process; all towards enhancing or
adding value to them.Nowadays there is an automated performance
management system (PMS) that carries all theinformation to help managers
evaluate the performance of the employees and assess themaccordingly on their
training and development needs.
❖ Employee Relations: Employee retention is a nuisance with organizations
especially in industriesthat are hugely competitive in nature. Though there are
myriad factors that motivate anindividual to stick to or leave an organization, but
certainly few are under our control.

Employee relations include Labor Law and Relations, Working Environment,

Employee heathand safety, Employee- Employee conflict management,
Employee- Employee ConflictManagement, Quality of Work Life, Workers
Compensation, Employee Wellness and assistanceprograms, Counseling for
occupational stress. All these are critical to employee retention apartfrom the
money which is only a hygiene factor.

All processes are integral to the survival and success of HR strategies and no
single process can work inisolation; there has to be a high level of conformity and
cohesiveness between the same.

May 2019

Ques:-What do you understand by orientation program. Discussion the role of

orientation in employee commitment towards organisation.

Answer:-

An employee’s first impressions of an organisation have a significant impact on

their integration withinthe team and job satisfaction. •Induction is an opportunity
for an organisation to welcome their newrecruit, help them settle in and ensure
they have the knowledge and support they need to perform theirrole. For an
employer, effective induction may also affect employee turnover, absenteeism
andemployer brand.

This factsheet covers the purpose of induction. It looks at the induction process,
including who shouldattend, who should be involved, what to include (as well as
what to avoid), and the role of HR and L&Dteams. There’s also an induction
checklist to help organisations plan or refine their own process.

*The induction you will receive in your local department/institution will enable
you to:
1. Meet your key colleagues;

2. Find your way around your workplace;

3. Understand your terms and conditions of employment;

4. Understand your role, key responsibilities and how you fit into your
department/institution;

5. Know what is expected of you and the way in which your work will be
monitored;

6. Know how you will be managed and supported to carry out your duties;

7. Access University and local policies and procedures; and

8. Identify any training and development needs that have to be met to enable you
to undertakeyour role effectively.

Benefits of a structured induction program:-

•Good induction programs can increase productivity, employee engagement, and

retention. They helpin reducing attrition and short-term turnover of staff.

•They also help improve employee morale, make new hires feel welcome and
comfortable in the newenvironment, and motivate them to perform at an
optimum level. The program also helps them gaugethe bigger picture and work
towards fulfilling organizational objectives.

*Elements of New Employee Orientation

1. Purpose:-In some companies, the orientation aspect of training is taken lightly.

However,making an employee feel comfortable and secure is crucial to retention
and happiness on thejob. If an employee starts a position feeling certainty about
his surroundings and role, then he ismore likely to do good work and want to stay
with the company.

2. Philosophy:-An integral component of employee orientation is learning the

company’sphilosophy. The best way to thrive in a continually evolving corporate
world is to align thecompany’s goals and values with those of its employees. By
taking into account varioustechniques and approaches that employees use, the
owner can make better decisions for theoverall good of the company.

During orientation, a new employee can establish whether the company is family-
friendly or individual-oriented. Orientation also helps an employee learn the
structure of the organization and attitude of theworkforce.

3. People integration:-Familiarizing a new hire with his co-workers is another

crucial element ofemployee orientation. For this reason, many companies often
train new employees in groups.This enables new recruits to start bonding and
forming meaningful relationships with fellowemployees right away.

*Importance of New Employee Orientation:-

1. Helps to retain top talent:-The competition for talent in the corporate world is
intense. Everycompany wants to hire and retain quality talent.

In the past, a company owner only needed to offer a high salary to entice the top
talent. However,things have changed considerably in that respect over the years.
As companies continue to compete forthe top employees, they are often winning
them by offering more and better perks.

In many instances, it’s the intangible aspects of a job that employees value the
most. Therefore, it’s keyfor companies to foster a strong, friendly company
culture and to maintain an impeccable employeeorientation program. Fostering
opportunities to build a strong relationship with management is alsohelpful. With
a solid orientation program, a company’s executives can lay a strong foundation
thatencourages top talent to stick around.

2. Earns trust:-The first day can be daunting for a new employee. The individual
often does notknow what he’s supposed to do, where to go, who to consult, or
how to perform specific tasks.

A solid orientation program helps new employees learn more about their roles
and also enlightensthem on organizational practices. A new employee will feel
more valued if, for example, he’s takento meet the executive leadership team.
3. Reduces turnover:-One common phrase among employees who quit is that
they don’t usually

quit the job but the company. Without orientation, a new employee frequently
struggles to findhis place among co-workers. The individual may also find it
challenging to interact withmanagement, especially if they’re not sure of how to
deliver on expectations.

Que. Explain the ways to improve new New Employee Orientation:-

Ans.

•To ensure that a company is making the most of its orientation program, there
are a couple of points itshould consider. For starters, the supervisor should come
up with a proper outline of all the aspects tobe covered during the orientation
process.

•The first part of an orientation program should be devoted to providing

information regardingcompany policies, compensation, benefits, rights, and
employee responsibilities.

Few guidelines to improve the orientation process:-

1. Remember to include introductions during the orientation:-It’s crucial for the

new hires to feel

comfortable and acquainted with their colleagues. Introductions make it easy to

connect with

those they’ll be working with.

2. Avoid overloading new hires with huge loads of information:-To prevent

information overload,

the orientation program should be stretched over several days. This enables new
employees to
process and retain the information better.

3. Always start off the orientation program with the most important details:-New
hires are more

attentive on their first day, making this the best time to cover crucial issues such
as companyprocedures.

Ques:- What do you understand by term training? How it help an employees

performance athis workplace?

Answer:-

•The term Training and development in Human Resource Management (HRM)

refers to asystem of educating employees within a company.

•It includes various tools, instructions, and activities designed to improve

employeeperformance.

•It’s an opportunity for employees to increase their knowledge and upgrade their
skills. Anorganization that invests in its employees will most likely reap the
rewards of improvedfinancial performance.

•Employee training and development isn’t just for earnings growth, though.

*Methods of Training:-

On boarding:- The on-boarding process is the training cycle that a new employee
goes throughto become familiar with their new job and company. The main goal
of onboarding is tointroduce new hires to the organization and provide the
foundational knowledge they need fortheir role.

Cross-training:-Cross-training enables an employee to work in several different

roles or to do atask that may be closely related to their normal responsibilities.
This is helpful to their careerdevelopment as it expands an employee’s skill set
and knowledge.
Reskilling:- New data suggests that we’ve transitioned from the Great Resignation
to the GreatReshuffle as more than 2 million people have changed their field of
work or occupation. Whilethe majority of these workers moved to a new
company, others opted to stay with their currentemployer and transition to a new
department or role. This requires reskilling to ensure they can perform a different
job.

Upskilling:- Gartner, Inc. found that nearly 60% of the current workforce needs
new skills inorder to do their current job correctly. With technology rapidly
changing how mostorganizations operate, organizations need to help their
employees improve their technicalknowledge and skills through upskilling.

Sales training:- Sales training enables your sellers on the skills, techniques, and
best practicesthey need to interact with buyers throughout the sales cycle. This is
key to buildingrelationships, improving negotiation skills, and being prepared for
every buyer interaction.

*Purposes of Training in HRM:-

1. Increase Company Productivity.

2. Improve product or service quality.

3. Lessen employee turnover.

4. Decrease costs and errors.

* Importance of Training:-

•The importance of training goes far beyond checking off a to-do task for your
employees. Ahigh-quality, comprehensive training program provides employees a
greater understanding of

your organization’s processes, procedures, and goals.

•It also enables them with the knowledge and skills they need to be effective in
their roles.
•Equipping employees with relevant and ongoing training is one of the best ways
to increaseproductivity and performance. In fact, organizations that provide a
consistent trainingexperience boosted businesses outcomes.

•A study by Glint found that ongoing training and development is one of the top
factors thatemployees say defines an exceptional work environment.

•Employee training can positively impact your company’s culture because it

improves jobsatisfaction, engagement, and retention. By embracing training and
development, organizationscan dramatically reduce employee turnover and
increase their talent ROI.

*Benefits of Training:-

1. Improved skill sets:-

Research from IBM found that an employee’s skills generally have a “half-life” of
about5 years, with more technical skills needing improvement after just 2.5 years.
IBM alsofound that nearly 30% of skills are lost annually because they aren’t
performed regularlyor reinforced through training.

2. Faster ramp times:-

New hire training is important because it teaches new employees about

yourorganization’s values, missions, and goals. And in order to ramp new
employees quickly,t they need to complete training that covers the skills,
knowledge, and tools they’ll needto hit the ground running.

3. Higher job satisfaction:-

By investing in training, companies show employees that they are valued.

Becausetraining gives employees access to information they wouldn’t otherwise
have, they’remore likely to feel confident and prepared to do their jobs.

4. Build customer satisfaction and loyalty:-

Training increases lifetime customer satisfaction, loyalty, and revenue for

yourcompany. Customers who feel they receive great service from knowledgeable
and friendly agents spend 140% more money compared to those who had a poor
experiencewith a brand.

5. Build customer satisfaction and loyalty:-

Training increases lifetime customer satisfaction, loyalty, and revenue for

yourcompany. Customers who feel they receive great service from knowledgeable
and

friendly agents spend 140% more money compared to those who had a poor
experiencewith a brand.

6. Increased consistency:-

An effective training program delivers a consistent learning experience and level

ofknowledge to every employee. Consistency is important when it comes
tounderstanding processes, products, or services.

7. Lower employee turnover:-

Our report also found that 50% of employees are considering leaving their
company dueto a lack of training. Additionally, IBM found that only 21% of new
hires intend to stay atan organization that doesn’t offer training for their current
role compared to 62% ofnew employees who do have access to ongoing training.

Question: Explain different types of recruitment and selection strategies

followed by the organisation.

Answer:

Recruitment strategy:

A recruiting strategy is a plan of action to help the organisation tosuccessfully

identify, attract and hire the best candidates for their open roles. These are
basicstarting points that can help the organisation to recruit the job seekers they
are looking for.
Types of recruitment strategies:

Different types of recruitment strategies are as follows:

1.Treat candidates like customers:

Whether it’s a phone screening, video interview or an in-person interview, a

candidate’s firstimpression of the company is critical. One of the best recruiting
techniques is to treatinterviewees the same way organisationtreat its customers.

2.Use social media:

Social media is a fantastic recruiting tool. Social recruiting allows the organisation
to share jobpostings with the entire network and encourages a two-way
conversation. Even if the peopleorganisation reach aren’t interested in the role
they’re hiring for, it’s likely they may knowsomeone who is a good fit.

3.Implement an employee referral program:

Great people usually make a habit of surrounding themselves with other highly
capableprofessionals, a well-developed employee referral program can encourage
even more of theemployees to refer the best talent they know.

4.Consider past candidates:

When the organisationhire for a position, there are often a few talented
candidates that endup not making the cut due to timing or other external factors.
While recruiting for a similarposition, consider re-visiting the resumes of past
applicants. These candidates are alreadyfamiliar with the company and may have
picked up new skills and experience since they lastspoke.

5.Attend industry-related meetups:

Job fairs can be helpful for finding qualified candidates, non-recruiting-specific

events are alsoan excellent opportunity to meet motivated industry professionals
who are eager to network

and advance in their field.

6.Promotions and transfers:

Promotions and transfers aren’t quite the same thing, but the concept is the
same. Internalemployees are identified to fill open roles. A promotion means that
the person moves up theladder and is given more responsibilities and also a pay
increase. A transfer usually doesn’tinvolve greater responsibilities or more money
and is a horizontal move.

7.Recruitment agencies:

Organisation can outsource your hiring process to a recruitment agency. Agencies

manage fullcycle recruiting on organisation’s behalf. Although the cost of using an
agency is high, it freesup your time to focus on more pressing matters.

8.Internship and apprenticeships:

Offerings internships and apprenticeships is an excellent way to get to know the

strengths ofindividuals and can be considered to be a working interview. During
the contact period, lineand hiring managers can evaluate the potential to identify
interns and apprentices who can beupskilled and developed to fill future roles.

Selection strategies :

Employee selection methods are criteria for choosing an optimalcandidate for a

particular job position. They involve reviewing an individual’s
capabilities,education, experiences and personality to determine if they can
perform key tasks and alignwith a company’s overall culture. There are several
categories of employee selection methods,I including tests or examinations,
interviews and background research.

Types of selection strategies: Different types of selection strategies are as follows:

1.Resume sorting process:

In this method, a recruiter chooses top candidates from resumes and other
applicationmaterials sent through online job boards and portals. They typically
use a set of guidelines thatshow attributes a company prefers top candidates to
have, including relevant work

experiences, skill sets and past training.

2.Introductory screening:

A recruiter might use this method to identify candidates from a previously

curated shortlist. Ittypically involves sending these candidates a series of
questions by email that further assesstheir qualifications and professionalism.

3.Assignment test:

This selection method involves administering a test prompt that resembles a

similar workassignment that a candidate might receive in a company. Recruiters
often send the promptthrough email to candidates from a shortlist. It can provide
more information about acandidate’s practical skills for a job position, including
how they manage their time to meet adeadline efficiently.

4.Cognitive strengths test:

Some employers include a cognitive strengths examination to assess a candidate’s

ability toprocess new information, problem-solve and make connections between
different facts.

Depending on the industry and job position, they may involve mathematics or
verbalreasoning tests.

5.Candidate references:

Candidate references are insights from a previous employer or colleague that can
reveal theirwork conduct and overall capabilities. A hiring manager might ask for
references in the preliminary round of a hiring process to learn more background
knowledge before meetingthem or toward the end to verify what they learned.

6.Situational judgment test:

A situational judgment test (SJT) is a behavioural examination that shows work

scenarios to acandidate, followed by a series of multiple-choice answers to
indicate how they mightrespond.
7.Work simulation:

This method involves providing a candidate a work assignment they might

encounter on a day-

to-day basis to measure how they perform. A hiring process for managerial
positions maybenefit from this method, as supervisors often evaluate new
situations and determine themost effective strategies for addressing them.

8.Physical assessment:

Hiring managers may implement a physical ability assessment for careers that
require manuallabour, like police officers, firefighters or construction staff.

Que. Explain objective of HRM elaborate challenges to HRMprofessional?

Ans. Human Resource Management (HRM) is a comprehensive processof

acquiring, developing, motivating, and maintaining a pool of efficientemployees.
The main aim of HRM is to ensure the right people with theright skills for the right
job position in an organization. Themain functions of HRM consist of recruiting,
training, performanceappraisal, motivating employees, ensuring their good health
and safety,managing workplace communication, and so on. Effective
HRMencourages employees to work efficiently towards achieving companygoals
and objectives. Now let’s understand the significant HRM

Objectives of Human Resources Management

Societal Objectives

HRM comprises developing programs fulfilling employees’

economic,psychological, ethical, and social needs. For example, compensationand
benefits programs, equal opportunity programs, community relationsprograms,
disability employment programs, community relationsprograms etc. These
programs aim to meet employees’ societalobjectives, motivating and retaining
productive employees.

Organizational Objectives
One of the significant objectives of HRM is to ensure the availability of

the correct number of employees at the right place with the right skills.

This helps an organization achieve its goals and objectives within the

stipulated time. Besides this, HRM involves policies for various work-

related facilities and amenities for employees, such as a safe and clean

workplace, technical guidance, and support to perform effectively. HRM

also assists an organization in improving employees- employer relations

by focusing on fair compensation, better rewards and benefits, etc.

Functional Objectives

The functional objective of HRM is to prepare organizational policies in

compliance with provisional/ territorial and federal laws related to human

rights, occupational health and safety, employment equity, laborrelations, and

employment standards. This helps organizations maintain

the quality of work life and ensure ethical employee behavior.

Personal Objectives

The personal HRM objective includes acquiring, developing, utilizing,

and retaining efficient employees in an organization. This can be

possible if employees can accomplish organizational along with their

individual goals. For this, employees should be provided with adequate

training and feedback on their performance. This helps employees to

identify the areas of improvement and rectify them.

Accomplishing Organizational Goals

Organizational goals fulfillment is the starting point of human resource

management. Effective HRM depends on using human resources to

achieve organizational objectives and requirements. The goals of an

organization include workforce management and employee needs, such

as hiring and training, payroll management, and retirement. In order to

accomplish organizational goals, human resource management requires

good planning and execution. HRM is useless without setting targets,

purposes, and allocations. When you know your available resources and

action plan, achieving human resource management objectives is

relatively easy.

Training and Development

Employee productivity and performance are two essential elements that

must coexist for a business to accomplish the objectives of HRM.

Employees feel organized and secure when they have adequate training

and growth possibilities. Training techniques significantly impact

successful employment. Giving employees opportunities is a great way

to guarantee workforce management.

Planning, organizing, conducting training sessions, and evaluating each

onboard might be challenging when working with employees as part of

human resource management. Solutions like training management

software may ease pain by giving you auto-reminders, an accessible

calendar, reporting, and monitoring tools. The human resources

manager can ensure that the business has effective training practices.

Que. What are the challenges of HRM professionals?

Ans. Challenges of HRM Professional:-

1. Attracting Top Talent

As the demand for highly trained professionals at the ‘top of their game’ grows, it
becomes a challenge for HRmanagers to attract the best talents. Managers should
pay attention to how well an employee fits into theorganization; along with the
job role. Factors like an employee’s dedication, work ethic, and fit in your
companyare more crucial than any other skills he/she might have at present.

Furthermore, one of the challenges of HRM is to market the company well

enough to attract the top talents. Also,this includes mentioning the USPs of
working with your organization.

The Solution for This Challenge of HRM is:

1. Creating videos of employee testimonial of working in the company

2. Building a reward system of referrals to encourage employees to bring in

people to the company

3. Building a culture to captivate the top talents which include showing

appreciation, encouraging collaboration,

and practicing transparent leadership.

2. Embracing Change with an Open Mind

One of the major challenges in HRM is to keep up with continuous changes in the
world Change is the onlyconstant, however, it is up to the HR managers to
embrace the change, and prepare their employees for the same.

Since HR managers are the strategic resource planners of the organization they
must ensure that the companydoesn’t have a deficit or a surplus of human
resources.

Above all Solution for these Challenges of HRM is:

1. Having open, clear, as well as honest communication with employees.

2. Ensure that the employees are well equipped with the skills and resources to
deal with the change. When

employees feel secure and capable, the outcome is more likely to be positive.

3. Be a part of the high-level meetings to learn about the future requirements of

the company.

3. Developing the Leaders of Tomorrow

HR Managers constantly face the challenge of mentoring and developing the
future pillars of an organization. Thisis one of the trickier challenges HR Managers
face because a lot of employees have a poor relationship with theirmanagers.
However, developing your employees for better roles helps you save the costs of
recruiting andtraining a new employee. Furthermore, an employee that has
grown within the company has grassrootsknowledge. While there isn’t a one size
fits all solution here, HR managers can take steps to develop employeesinto
leaders of tomorrow.

For Developing The Leaders of Tomorrow in An Organization & Solving These

Challenges of HRM You CanTake The Following Steps:

1. Managers can work on this by providing specific training sessions to talented

individuals.

2. Show employees a clear progression path ahead of them; this will increase the
likelihood of them staying in anorganization.

3. Develop interpersonal skills.

4. Give the employee opportunities to lead and present to the team.

4. Building a Culture of Continuous Learning

Learning is a key factor in any organization. Up skilling employee’s help a

company to gain an edge in the markethowever, it is a difficult challenge in HRM.
Likewise, employees feel stimulated, engaged, and gain
developmentopportunities. However, managers should ensure that the skills
gained by a set of employees serve to enhance

their job roles. If the workplace has a culture of learning and developing oneself
this will ensure that everyemployee grows with every passing year.
Few Steps to Foster a Culture of Continuous Learning & Overcome This
Challenge of HRM are:

1. Create a growth mindset where employees are willing to take feedback to learn
and grow.

2. Teach managers how to give great feedback. What points should be covered,
how to make it objective, and how

to make it easier for the receiver to receive it.

3. Set learning goals within teams. Set targets for employees to learn a certain
skill or a piece of technology every

month.

4. HR managers can also use online learning, dgamifie learning, and

microlearning.

5. Building a Diverse Team

As connectivity improves, the world becomes a smaller place. One of the HR

challenges now faces is the challengeof managing a workforce with diverse
backgrounds, ideas, and experiences. Also, This challenge of HRM comeswith the
responsibility to build a corporate work environment that’s welcoming for
everyone. Building an

inclusive team doesn’t just bring fresh perspectives into the company but also
builds a chain of a diverse network.

If different voices are heard in your organization, the company will be more
innovative and more sensitized to

cultures.
The Solution For This Challenge of HRM is:

1. Conduct cultural awareness activities to help employees understand new and

diverse backgrounds.

2. Team building activities will also enable the entire workforce to work as one
team on common objectives.

3. Educate your leaders to be open-minded and inclusive.

4. Celebrate cultural diversity.

5. Encourage culturally diverse hires.

6. Looking After Health & Safety

Maintaining health and safety standards ranks very high on any HR Managers
priority list. The general well-beingof employees is what keeps an organization
running and growing. Along with physical well-being, HRprofessionals must also
closely monitor the workload and stress levels of employees in an organization.
Asustained period of high stress and anxiety is a cause of concern for the
workforce.

Few Steps That You Can Take to Look After Your Employees are:

1. Build a system where work is divided equally amongst the employees

2. Managers should be trained to increase their emotional quotient to help

employees better.

3. Employees should be trained to manage stress better with relaxation

techniques.
July 2021

Que. What do you mean by Human Resource Mangement? Define its process.

Ans. Explained in May 2018

Que. Discuss role responsibilities andcompetencies of HR. professional?

Ans. The role of the HR professional is constantly evolving,but without core

competencies and skills, HR managers coulddramatically hurt your business.

There are several key skills and competencies for HRprofessionals to be aware of
today. For any business to besuccessful, it’s essential that HR managers
understand andmaster any HR core competencies they need to properlyperform
their job functions.

In fact, according to EvrenEsen, the survey program manager

at SHRM, “We can actually see the profession changing. Somecore areas remain
the same, but others, based on how theraters assess and perceive HR, are new.”

Skills and Competencies of HR ProfessionalsLet’s take a look at some key HR skills

and competencies yourhuman resource managers should possess to be able
toeffectively perform their job functions and ensure the successof your business.

Communication Skills

It should be no surprise that an effective HR professional needsto possess

excellent communication skills. Having propercommunication skills is one of the
biggest key competencies ofHR professionals because their job mainly consists
offacilitating discussion between employees and employers.

Without proper communication skills, HR professionals woulnot be able to

effectively relay information between the twoparties, causing the business to
suffer. Having effective

communication skills is such an important human resourcescompetency the Dave

Ulrich, a professor of businessadministration at the University of Michigan, states,
“You’ve gotto be good at all of them, but, no question, is key.”
Critical Thinking

Another major key competency your HR managers shouldpossess is critical

thinking skills. HR professionals spend a lotof their time balancing complex
situations and without beingable to think critically, your HR managers would not
be able toproperly create an environment where all employees feelcomfortable
and are motivated to improve the business. In fact,according to Bloomberg,
critical thinking is in the “sweet spot”of rare skills that companies want most but
are less common tofind.

Organizational Skills

While there are many key competencies of HR professionals tomaster today,

possessing superior organizational skills is amust. Since being an HR manager is a
huge juggling act, it’simportant to be organized to stay ahead of any HR issues
thatmay arise. A great way to help your HR professionals becomemore organized
is to have them perform the same actions, inthe same way, each day to help them
build a routine. When allHR materials and practices are organized, your company
willrun much more smoothly.

Leadership

One of the biggest HR core competencies your HRprofessionals need to possess is

leadership. HR managers areresponsible for ensuring that the entire workforce is
properltaken care of and resolving many issues the business mayface. HR
managers are not only responsible for the entireworkforce but their department
too so without the ability toeffectively lead, your entire organization will suffer.
Part ofbeing an effective HR leader is to be flexible. For your businessto be
successful, your HR professionals have to be open-minded and willing to accept
change and listen to opposing

perspectives. When your HR managers are flexible in theirposition, your business

and employees will be more flexible aswell.

If you’re an HR professional yourself, and you’re concernedwhether you’re

meeting these key HR skills and competencies,
Ulrich suggests, “Review the competencies with your businessleaders and ask
them if you’re doing them. Next, pose thesame questions to your HR team. Then,
ask yourself whetheryou really know the business or if you’re glossing on
thesurface.” He then suggests setting your priorities and getting towork on
mastering these HR core competencies.Possessing key competencies of HR
professionals is soimportant because, according to Human Resources

Management Policies and Practices in the United States, “70percent of

responding organizations said HR has a place on theboard of directors, and 66
percent reported having a written HRmanagement strategy.” For HR professionals
to reach their fullpotential at any organization, it’s essential that they learn
andmaster all HR skills and competencies.

Now that we know some of the major human resourcescompetencies your HR

professionals should possess, let’s takea look at how you can ensure that you
always hire the besttalent for your business with a proper skills and
competenciesmodel.

A proper competency model is essential for your HR managers to be able to hire

employees that will not only help the businessstay successful but decrease
turnover rates as well.

Since competencies are sets of skills, knowledge, abilities, andattributes that

enable people to successfully perform their jobs,a proper competency model is
essential to achieve higher ROIof employees hired and lower turnover. There are
many stepsin developing a competency model for your HR managers toensure
that they’re hiring competent employees to work foryour company.

Your competency model development should begin with adesire to support your
associates throughout their entireemployee lifecycle including selection,
performance,management, training, and succession planning. HRcompetencies
like pre-hire selection assessments, performancemanagement criteria, succession
planning programs, andtraining and development curriculums are essential to
ensurethat you’re not only hiring the best employees, to begin with but that
those employees continue to do well in their positions andhelp your company
grow and stay successful.
Competency Model

Competency model development begins with aligning relevantbusiness outcomes

and HR skills and competencies with yourcompetency model. To ensure that your
competency modeprocess is business-focused from start to finish, follow
thesesteps and you’ll be able to rest easy knowing you’re hiring thebest
employees to help your company achieve success.

Step 1: Collect Data

It’s not enough to rely solely on interviews with potential

employees as the cornerstone of your competency model

development. This strategy is not only shortsighted but doesn’t

provide the necessary information needed to identify the critical

competencies of HR professionals for a particular job. By

collecting data from potential employees, leaders, and internal

or external customers through multiple formats, you’ll be able to

obtain more information and enhance the relevance of your HR

competency model and the key competencies of HR

professionals.

Step 2: Integrate Data

While it’s essential to collect data from multiple perspectives,

it’s not enough. Data must be analyzed separately then brought

together to create a cohesive story around the critical

knowledge, skills, abilities, and characteristics that will ensure

the success of your competency model.

Step 3: Focus on Goals

When you focus on specific goals, you reinforce the alignment

between your competency model development and the needs

of your organization, creating a sense of urgency and

cementing HR core competencies your employees should

possess.

Step 4: Make it Practical

Your competency model is not useful unless everyone in the

company can follow along. Avoid using technical jargon and

fancy acronyms when describing the competencies of HR

professionals needed for particular roles within your

organization. By making your competency model interesting

instead of a tedious HRM process, you bring it to a level where

action can be taken easily.

Step 5: Establish a Strategy

Since your competency model can be used to determine

whether you should hire new talent to join your organization or

provide internal staff training to meet essential competencies of

HR professionals, your competency model should be used to

assess the time, effort, and budget available to create a

strategy that will provide your organization with personnel that

meet these requirements.

Step 6: Set Minimum Requirements

Your HR competency model needs to address the minimum

acceptable levels of performance for each competency

included in your model. Without leaders and managers across

the organization understanding the minimum level at which

individuals can perform and still be successful in their roles,

they will not be able to hire employees that can contribute to

the success of your organization.

Step 7: Business Outcomes

By linking your competency model to your desired

business outcomes, you’ll be able to validate your HR

competency model and show its direct business impact.

This is an essential step in developing your competency

model because it helps to drive your training, hiring, and

performance strategies since you have a better

understanding of which competencies to focus on based

on their importance to your bottom line.

Step 8: Include Standards of Performance

It is essential that you make values and standards of

performance a central part of your competency model because

these standards represent a key piece of how the job should be

performed.

Your SHRM competency model isn’t complete once you’ve

created the perfect version of it. It is essential that you continue

to refine your HR competency model and the strategy you use

to create it. Try revising your competency model at least every

year and a half to reflect the new roles of your organization and

to ensure its comprehensiveness and relevance to your

business objectives. Without an updated competency model on

hand, the leaders of your organization will not be able to hire

competent employees and your business will suffer.

Que What is HR Information System? Discuss its objectives along with its uses on
organization.

Ans.Human Resource Information System (HRIS)

Human Resource Information Systems

A Human Resource Information Systems (HRIS) is software that

provides a centralized repository of employee master data that the

human resource management (HRM) group needs for completing core

human resource (core HR) processes.

Some people also explain it as a software package developed to aid

human resources professionals in managing data. Human resource

professionals utilize these systems to facilitate workflow, improve

efficiency and store and collect information. Several companies offer

HRIS packages to employers. HRIS packages can be customized to the

specific needs and requirements of the employer.

Concept Of HRIS

Fast changing markets, industries, and services require organizational

environments capable of constantadaptation with bright new ideas and reduced
time-to-market. Under these competitive reality, HRMhas a more critical role
than ever because new forms of business require new ways of involving people

HR professionals must analyze social, economic, political-legal, and technological

environmentopportunities to redesign HRM processes and practices that are key
success factors to the organizationmission and objectives.

To respond to these challenges, HRM has been forced to adopt new logics and
most HR managers mustforget habits and ways of thinking and acting outdated.
On the other hand, they should helporganizations to define their strategies and
build programs to develop their human capital .

In this context, information systems have increased the efficiency of HRM through
more effectiverecruitment methods, organizational communication, employee
involvement, and increased skills of HRmanagers. From there, human resource
management areas must relate human capital strategies to themost appropriate
technological solutions. It means creating an her organization focused
oninterconnecting people with business strategy to achieve rapid adaptation to
changing needs commonto people and business. These same needs begin to
make her necessary.

However, not all HR professionals work in strategic HRM. Many still find
themselves pressured andseeing their time spent with day-to-day concerns. It is
critical to get rid of the administrative burden or at least to mitigate it, to optimize
your time and your contribution to the organization.

Process Of HRIS

1. Database

Human Resource Information System core offering includes a database to store

employee information. HR professionals can input all personnel data into the

system which can be accessed from anywhere, round the clock. Types of data that

HR professionals collect in the database include compensation history, emergency

contact information, and performance review. The core database can also be

viewed as an online backup for paper files.

2. Time and Labour Management

Activities like time and labor management can be highly time-consuming. HRIS

package allows employees to input their own hours worked and allows managers

to immediately verify vacation requests, and the data is directly fed to the payroll.
Time and labor management also improves the HR department’s ability to track

punctuality and attendance.

3. Payroll Function

The payroll function is yet another major component of an HRIS model. HR can

easily download or unload employee hours, and issue cheques or payroll deposits

to employees. Salaried employees can also be paid with a substantially reduced

risk of errors. The HRIS payroll software usually improves tax compliance for

locations with multiple tax levels.

4. Benefits

Some HRIS employers allow employers to establish and maintain medical benefits

and retirement investments through their software. Such applications allow

employers to have a one-stop shopping experience for all their human resources

data management needs. Other HRIS packages facilitate medical benefits and

retirement investment deductions for payroll but not the establishment of those

benefits.

5. Employee Interface

Most HRIS packages allow for an employee to have limited user access. Employee

users access a part of the database where they can update their personal
information, review pay scales, change retirement benefit programs, update

direct deposit information or download benefit election documents.

6. Recruitment and Retention

Finally, it can be said that recruitment and retention are the most important
components of HRIS. It goes without saying that it is theanchor of all HR policies
and systems. Finding new talent, acquiring them, keeping them engaged and
finally being able to retain them ishe major task of an HR person. HRs also have to
ensure thatemployees are not only able to do their work, but they are
alsoprovided with the required training; receive proper compensation
andbenefits from the organization.

Its Significance

HRIS helps senior management to define labour requirementsin order to meet the
long-term business plans of theorganization and strategic goals. Medium-sized
managementuses human resources systems to monitor and analyse
therecruitment and compensation for employees.

Que. Define the tern HRM

Ans.

Human: refers to the skilled workforce in an organization.

• Resource: refers to limited availability or scarce.

• Management: refers how to optimize and make best use of such limited or
scarce resource so asto meet the organization goals and objectives.
In simple words, “human resources” means the people. HRM deals with best
utilization of availablehuman resources in the organisation . However various
management experts have defined HRM in adifferent way.

According to Wendell L French, “The human resource management refers to the

philosophy,policies,procedures, practice related to the management of people
within the organisation”.

According to Decenzo and Robbins, “Human Resource Management is concerned

with the peopledimension” in management.

According to Bratton and Gold, “HRM is a strategic approach to managing

employment relations whichemphasize the leveraging people’s capability is
critical to achieving competitive advantage ,this beingachieved through a
distinctive set of integrated employment policies,programmes and practices”.