HUMAN RESOURCE MANAGEMENT

1.Define HRM
ANS. 1. Human resource management (HRM) is the
practice of recruiting, hiring, deploying and managing
an organization's employees.
2. Human resource management, or HRM,
involves coordinating, managing, and
allocating human capital, or employees, in ways
that move an organization’s goals forward. HRM
focuses on investing in employees, ensuring their
safety, and managing all aspects of staffing from
hiring to compensation and development.
3. Human resource management is organizing,
coordinating, and managing an organization's
current employees to carry out an organization’s
mission, vision, and goals. This includes recruiting,
hiring, training, compensating, retaining, and
motivating employees.
2.Explain Nature of HRM
ANS 1. Managerial Proces
Human resource management is a vital part of
management that includes planning, organising,
 staffing, directing, and controlling human resources
to achieve organisational success. It is a managerial
process that effectively utilises human resources to
attain organisational goals and objectives.
2. Both Art and Science
Human resource management is a mixture of both
art and science. It is an art as it deals with qualitative
attributes like creativity, knowledge, skills, and talent
of the personnel. In simple words, HRM is the art of
getting things done by others effectively. HRM is a
science as it requires different scientific techniques
for activities like recruitment, selection, training, and
appraisal of employees.

3. Pervasive Force
Human resource management, being an inherent
part of an organisation, is pervasive in nature. It
means that HRM is present in different functional
areas of management, like finance, marketing, and
production, in all commercial and non-commercial
enterprises. Everyone in the organisation, from the
top to the lowest level, must perform HRM functions
regularly.
4. Improve Employee Relations
“In order to build a rewarding employee experience,
you need to understand what matters most to your
people.” – Julie Bevacqua.

Human resource management is concerned with

building healthy relationships between employees at
various organisational levels. Every individual has
different needs, goals, and expectations. HRM deals
with these individual factors and motivates
employees to reach their maximum potential.
Moreover, it creates an organisational culture that
fosters learning and growth.
5. People-Centred
The nature of human resource management is
people-centred and relevant in all types of
organisations. It is concerned with every employee
from the top to the bottom level. HRM value people
both as individuals and as a group. Furthermore, it
encourages people to develop their full potential
and fulfil individual and organisational goals.
6. Development-Oriented
 The development of the workforce in an
organisation is crucial to the nature of human
resource management. HR managers use various
tools to help employees understand their
strengths and unleash their potential. Regular
training programs can benefit employees by
improving their skills. Also, monetary and non-
monetary reinforcement can help people stay
motivated to perform better.
7. Action Oriented
While human resource management does follow the
rules and policies, its main focus is on action and
results rather than rules. A human resource manager
stresses the importance of providing effective
solutions for employee problems, tensions, or
controversies.
8. Forward-Looking
Sustaining in the competitive business environment
requires organisations to plan long-term strategies.
HRM is a future-oriented approach that evaluates
the human resource requirements and ensures the
availability of required personnel in the right place at
the right time. With the forward-looking nature of
human resource management, managers prepare
employees by motivation, training, and development
to face current and future challenges in the changing
business environment.

9. Continuous Process
Human resource management is not a ‘one-time’
function. Rather, it is a never-ending process that
must be performed continuously to achieve
organisational objectives effectively. It involves a
series of tasks, beginning with identifying the human
resource requirement and continuing with
recruitment, training, performance evaluation, and
appraisal.
10. Basis of Other Functional Areas
HRM is the basis of all other functional areas of
management, such as finance, production, and
marketing. The effectiveness of each of these
departments depends on the effectiveness of their
human resource management.
11. Interdisciplinary Function
Human resource management is multidisciplinary in
nature. HR managers utilise knowledge and inputs
from various disciplines to manage the
workforce effectively. The five major disciplines in
HRM include management, communication,
psychology, sociology, and economics. In order to
effectively manage human resources, one must
understand the contribution of all these disciplines
to HRM.

3)Explain the Scope of HRM

ANS) Human Resource Management (HRM) has a
wide scope, including activities that aim to maximize
the potential of an organization's employees. The
scope of HRM includes:
1. Personnel: HRM manages and develops the
workforce, including hiring, training, evaluating, and
retaining employees.
2. Performance management: HRM sets clear
expectations, provides feedback, and evaluates
employee performance.
3. Employee relations: HRM fosters positive
relationships and manages conflict to maintain a
harmonious work environment.
4. Compensation and benefits: HRM ensures fair and
competitive pay.
5. Compliance: HRM ensures compliance with labor
laws and regulations.
6. Health and safety: HRM develops policies and
procedures to ensure compliance with
occupational health and safety regulations.
7. Planning: HRM determines the organization's
goals and objectives and creates a strategic plan to
achieve them.
8. Job analysis: HRM provides the basis for staff
recruitment, training, and development.
9. Orientation and placement: HRM organizes an
induction/orientation program to acquaint the
employee with organizational values.
HRM offers a multitude of job opportunities, from
HR Manager to Compensation Specialist, each with
the potential for a rewarding salary and a promising
future.
4) Explain Human Resource Information System
ANS).HRIS stands for human resources information
system, a software solution that helps companies
manage and automate core HR processes and
support benefits administration, time and
attendance, payroll, and other workflows, as well as
 the storage of employee data, such as personal,
demographic, and compensation information.
A Human Resource Information System (HRIS) is a
software system that helps human resources
professionals store, manage, and automate employee
data. HRIS systems can help businesses streamline
employee information management and improve
organizational outcomes.
1.Centralized data repository
HRIS systems store employee data in a centralized
location, making it easy to find and access.
2.Automated processes
HRIS systems can automate HR processes, such as
time and attendance tracking, to help organizations
meet compliance regulations.
3.Employee self-service
HRIS systems can provide a user-friendly interface
for employees to perform tasks, such as creating an
account and accessing the system.
4.Improved communication
HRIS systems can provide a centralized location for
announcements, external web links, and corporate
policies, which can help reduce redundancy within
the company.
5.Recruitment process simplification
HRIS systems can help simplify the recruitment
process by capturing details of recruitment
activities, such as costs, time required, and type of
recruitment

5) Why is effective HRP required ?

ANS )Effective human resource planning (HRP) is
important for a number of reasons, including:
1.Cost efficiency
HRP can help companies avoid expensive hiring
sprees or mass layoffs. It can also help ensure that
employees are used efficiently.
2.Employee engagement
HRP can help foster a more motivated and
productive workforce by considering employees'
aspirations and career paths.
3.Succession planning
HRP can help ensure continuity and minimize
disruptions to operations by identifying key
positions and developing succession plans.
4.Aligning with organizational goals
HRP can help ensure that companies are prepared
for future challenges by aligning the workforce with
organizational goals.
5.Efficiency
HRP can help boost operational efficiency and
productivity by ensuring the right people are in the
right roles. This can also help minimize employee
turnover and reduce recruitment costs.
6.Anticipating future needs
HRP can help companies forecast future workforce
needs and identify any gaps that may arise. This can
help companies develop proactive strategies to
bridge those gaps.

6) What is Human Resource Planning process ?

ANS ) Human resource planning (HRP) is a
systematic process that helps organizations ensure
they have the right people with the right skills in the
right places at the right times. HRP is also known as
workforce planning.
The HRP process involves:
1.Assessing the current workforce: Identifying the
current needs of the organization
2.Forecasting future needs: Anticipating the
organization's future needs and how they relate to
the company's strategic priorities
3.Addressing skill gaps: Identifying and addressing
any skill gaps in the organization
4.Implementing strategies: Developing strategies to
acquire talent, such as training current employees or
hiring new employees
7) Explain any two Man power Demand Forecasting
ANS) 1. Managerial Judgement
• Requirement is given by top managers to HR for
hiring.
• HR’S give list to top managers for approval for
hiring
• Best way is to decide together (HR and top
managers)
2. Ratio-Trend Analysis
 • When we want to increase production no of
workers needs to be increased . This analysis is
used for the same

3. Regression Analysis
• Decreasing the no of employee on basis of the
companies requirement and their productivity.

4. Work -study Technique

Work study techniques in human resources

management (HRM) include:
• Time study
Observing and recording the time it takes to
complete each task in an industrial operation.
• Motion study
Closely observing the movements of a worker's
body and a machine while performing a job.
• Fatigue study
Determining the frequency and time interval of
rest periods so that workers can work at full
capacity.
• Method study
 Developing the best method of work to
maximize the efficiency of materials,
machinery, manpower, and capital.

4. Work load Analysis

• In this technique work load is easily
measureable.
• The calculation is done on the basis of
production volume and no of man hours.

8) Explain about outcome of Job Analysis with

example ?
ANS) The outcomes of a job analysis include job
descriptions and job specifications. A job
analysis is a process that identifies the tasks,
responsibilities, skills, objectives, and work
environment for a specific job. skills, objectives,
and work environment for a specific job.
Here are some outcomes of a job analysis:
• Job descriptions
Job analysis helps create accurate job
descriptions that attract the right people for the
 job. Job descriptions clarify responsibilities,
expected results, and performance evaluation.
• Job specifications
Job specifications are written statements of the
qualifications, traits, and characteristics
required to perform a job. They help identify
the minimum qualifications and competencies
that a candidate must have. Job specifications
also help design assessment methods and tools,
such as interviews, tests, simulations, or
portfolios.
• Fair compensation and benefits
Job analysis provides insights into the relative
worth of different jobs, enabling fair
compensation and benefits structure.
• Improved job satisfaction and engagement
Job analysis aligns job roles with employees'
skills and interests, enhancing job satisfaction
and engagement.
• Reduced role ambiguity
Job analysis clarifies job roles and
responsibilities, minimizing role ambiguity and
potential conflicts within teams.
 Here's an example of job analysis for your
review:Sales job analysisJob title: Sales
representative, central region
Classification: Full-time employee
Department: Manufacturing
Location: Regina, Saskatchewan
Pay Grade: Level III, base and commission
Job requirements
• Summary of position: Identifies and pursues new
customers that fit the target audience for the
company's industrial product. Creates and follows a
sales process that includes contacting potential
customers, following up with new and existing
customers, presenting products, and finalizing sales.
Keeps digital records of all customer contacts and
sales figures and creates reports and sales
projections. Must meet target annual sales goals.
Job duties
• Find new customers located in the central region
• Create client lists
• Contact potential customers
• Follow up with existing and potential customers
regularly
• Perform sales presentations
• Visit potential clients
• Make sales
• Keep a record of sales reports
Skills
• Proficient in word processing programs
• Skilled in customer relations management software
• Customer service skills
• Interpersonal skills
• Written and verbal communication skills
Reporting structure
• Reports directly to sales manager
• No one reports to this position
• Must attend yearly sales meeting
Employee requirementsEducation
• Bachelor's degree in business, finance, marketing,
economics, or a related field
• At least five years of sales experience
Skills
• Ability to make a sale
• Adapts to changing customer needs and
expectations
• Adapts to market changes
• Can confidently make hundreds of cold calls a week
Environment
 • High-volume office setting
• Sitting at a desk for hours at a time

• Travel to meet clients 30% of the workweek

Success factors Increase sales

• Grow referral-based sales from 18% to 25% within

the first year

• Grow market channel penetration by 20% within the

first year
Grow sales department
• Train at least one new junior sales associate

• Increase sales presentations by at least 10% a year

• Lower travel costs by 10% a year by transferring

sales presentations from in-person to web-based

9) Define Recruitment.
• ANS) Recruitment is the process of searching for
prospective employees and stimulating them to
apply in organization.
• Recruitment is the process of actively seeking out,
finding and hiring candidates for a specific position
or job. The recruitment definition includes the entire
hiring process, from inception to the individual
recruit's integration into the company.

10) Explain any two types of Recruitment Sources.

 • Recruitment sources are the methods and channels
used to identify and attract potential candidates for
employment. They can be internal or external, and
each source can help access different talent pools to
meet hiring needs:
1. INTERNAL SOURCES:-
A) Transfers :- Transfer refers to the shifting of an
existing employee from one department to another
department in an organisation.
B) Promotions :- Promotion is referred to as the change
of designation of the employee. It involves shifting of the
existing employee to a higher position within the
organisation and providing that employee with more
responsibility and a raise in pay.
Promotion helps in motivating the other employees of
the organisation to work hard so that they also become
eligible for promotion.
C)Retired and Retrenched employees :- Some
organisations have the provision of hiring retired
employees willing to work part time/full time for the
organisation.
D)Employee Referrals:- It can happen that the
organisation in an effort to cut down costs on hiring is
looking for employee referral. The employees are well
aware of the job roles in the organisation for which
manpower is required. These employees will refer
potential candidates by screening them based on their
suitability to the position.
E)Job Postings:- Creating a structured internal job
posting system gives employees equal access to
opportunities across the company.
E)Deceased and Disabled Employee:- Companies like
Tata hire deceased and disable people and train them in
during their training period and give them a safe
environment to work

2. EXTERNAL SOURCES:-
A) Campus selections :- When companies visit colleges to
hire fresh graduates to fill their entry-level positions, it is
called campus recruitment. Although most campus
recruitment drives do not last for more than a week, it is
generally a very engaging process.
B)Management Consultants :- A management
consultant helps organizations improve their overall
performance and solve specific business problems. They
provide expert advice and guidance to clients in areas
such as strategy, operations, finance, marketing, and
organizational structure.
C)Advertisements through newspaper, T.V & radio:-
This is the most traditional form of external recruitment.
Companies can place ads in newspapers, online, or on TV
and radio. This method can be very costly, but it allows
companies to reach a wide audience of potential
candidates.

D)Trade Associations:- A trade association is a group of

businesses in a particular industry that work together to
advance and protect the interests of their members.
E) Walk-in Interview:- A common aim of walking
interviews is to gain an understanding of people's
relationship to place. By accompanying research
participants on their familiar routes, we gain insight into
what they do and where, how they feel about place, and
how people interact with each other.
F) Job Fairs:- Job fairs are when companies set up booths
at career fairs or other events to attract potential
candidates. This is a good way to meet a large number of
candidates in a short amount of time.
11) Difference between Internal and External sourcing.
• Internal sourcing
Involves hiring from within the organization, such as by
promoting existing employees, transferring them, or
asking for employee referrals.
• External sourcing
Involves hiring from outside the organization, such as by
using job portals, educational institutions, or
headhunting.
Here are some other differences between internal and
external sourcing:
1.Cost
Internal sourcing is usually less expensive than external
sourcing because it doesn't require recruitment
marketing or talent sourcing.
2.Time
Internal sourcing can be more efficient and take less time
than external sourcing.
3. Retention
Internal hires are more likely to stay with the
organization than external hires.
4.Training
Internally recruited employees are already familiar with
the product, so they may require less training.
5.Fresh perspectives
External candidates may bring new perspectives and
innovative ideas to the company.
12) Explain the steps of Selection Process.
The selection process for hiring employees typically
includes the following steps:
1. Application: Review applications or resumes
2. Screening: Eliminate candidates who are not a good fit
for the role
3.Written Tests: Written tests are administered once the
final list of candidates has been compiled following the
review of applications. This test is used to determine the
candidates’ technical knowledge, attitude, and interest.
When there are a lot of applications, this method is
helpful. Candidates are frequently offered a second
chance to prove themselves by taking another written
test.
4.Psychological exams: These tests are administered
individually and assist in determining a person’s unique
quality and skill. Aptitude tests, intelligence tests,
synthetic tests, and personality tests are examples of
psychological exams.
5.Personal interview: Candidates who have shown
themselves to be efficient in examinations are
interviewed in person. Individual interviews or a panel of
interviewers can be included. Officers from the highest
levels of management are usually involved. Candidates
are given a series of questions about their previous work
experience, family status, interests, and so on. They are
expected to state what they expect from the
employment. The interviewers identify and note their
strengths and limitations, which aids them in making a
final selection decision.

6. Assessment: Evaluate candidates based on their skills,

experience, and fit with the company
5. Reference and background checks: Verify a
candidate's background and references
6.Decision: Select the best candidate for the role.
7.Medical Tests: Before starting the work, a candidate
must have a medical test to determine their physical
strength and fitness. Candidates can be dismissed based
on their health, even if they score well in examinations
and interviews.

8.Job offer: Extend a job offer to the selected candidate

13) Explain in brief about Orientation and Induction with

its 3 steps.
• Orientation
Introduces new employees to the company's culture,
values, and work environment. It's typically longer than
induction and covers a wider range of information. The
Human Resources department or top management
usually organizes orientation.
• Induction
Focuses on introducing new employees to their specific
roles, responsibilities, and job details. It's typically
shorter than orientation and concentrates on immediate
job-related information. Department heads or immediate
supervisors often handle induction.
The three steps of an employee orientation and
induction process are:
1.Pre-induction: Providing information to a new
employee before they start work
2.Induction: The first day of work and the transition into
the workplace
3.Post-induction: Follow-up and adjustment after the
new employee starts their role

14.State the difference

Training and development are different in several ways,
including:
• Purpose
Training focuses on teaching employees specific skills
and knowledge for their current role, while
development focuses on improving an employee's
overall progress and preparing them for future roles.
• Timeframe
Training is a short-term process, while development is
a long-term process.
• Scope
 Training is role-specific, while development is broader
and includes elements like leadership, problem-solving,
and change management.
• Goals
Training's primary objective is to improve skills that
drive performance and growth, while development
aims to advance a person's career or capabilities.
• Methods
Training is often led by experts, trainers, and
enablement leaders, while development is more
holistic and encompasses learning, growth, and long-
term skill enhancement.
• Accountability
Training is accountable to the organization, while
development is accountable to the individual.

15. Explain the importance of Training

Training is important because it helps people develop
new skills and improve existing ones, which can lead to
better performance and results. Training can be
important for both employees and organizations, and can
have many benefits, including:
• Improved skills
 Training can help employees develop new skills and
improve existing ones, which can lead to better
performance and results.
• Increased productivity
Training can directly impact an organization's
productivity and performance.
• Higher job satisfaction
Training can show employees that they are valued,
which can lead to higher job satisfaction.
• Lower employee turnover
Training can help reduce employee turnover, as some
employees may consider leaving a company if they
don't receive training.
• Improved customer satisfaction
Training can help improve customer satisfaction and
loyalty, which can increase revenue for a company.
• Better collaboration
Training can help employees work together better by
engaging them in group discussions and projects.
• Policy awareness
Training can help employees become familiar with
their company's values, ethics, policies, visions, and
missions.
• Knowledge-sharing environment
Training can create a knowledge-sharing environment
where employees can learn from each other's past
mistakes and wins.
• Embrace innovation
Training can help companies embrace innovation and
leverage technology effectively.
• Training leads to higher productivity and better
quality of work
• Reduction in wastage and cost
• Increase in Morale and Loyalty
• Promotions
• Reduced supervision and low accident rates

16. Explain types of training

There are many types of training, including:

Soft skills training

Focuses on developing skills like communication,
teamwork, and problem solving
Compliance training
Required by legislation, regulation, or policy to educate
employees on applicable laws or regulations
Leadership training
Develops interpersonal and leadership skills like
communication, project management, and mentoring
Safety training
Protects employees from work-related injuries, and
includes fire drills, evacuation plans, and workplace
violence procedures.
Sales training
Teaches sales team members sales practices, new
approaches to selling, and communication skills.
Team training
Focuses on improving the dynamics and efficiency of
working groups by covering communication,
collaboration, conflict resolution, and problem-solving

Technical skills training

Helps employees develop the skills they need in their
role, and stay current with the latest technologies and
processes
eLearning
Uses digital training materials and tools to engage
learners in the training process
Instructor-led training
A conventional training method that often occurs in a
classroom, with an instructor explaining the material

ADDIE Models
• Analysis
• Design
• Development
• Implementation
• Evaluation

17.Define Executive Development

Executive development is a process that helps improve

the knowledge, skills, and abilities of executives and top-
level managers so they can be more effective in their
roles and prepare for future leadership positions.
Executive development is the process of helping
managers and executives gain unique skills that can help
improve their performance and prepare them for future
leadership roles within an organisation. Both employees
and employers aiming to upskill their workforce may use
executive development programmes.

18. State the Objectives of Executive Development.

The objectives of executive development programs are
to:
• Improve performance: Help managers at all levels
improve their performance and sustain it throughout
their careers
• Prepare for leadership: Develop managers and
executives for higher-level roles, such as CEO or CTO
• Provide knowledge: Equip new managers with the
knowledge they need about their jobs and future
responsibilities
• Teach new techniques: Introduce managers to the
latest management techniques and concepts
• Prepare for change: Help executives understand and
accept new concepts in their work life
• Develop skills: Enhance leadership skills, strategic
thinking, and decision-making abilities
• Prepare for the future: Prepare managers for any
challenges they may face in the future
 • Identify areas for growth: Identify areas where
leaders can improve and prepare for further career
growth
• Provide opportunities: Provide opportunities for
executives to fulfill their career aspirations
• Ensure optimal use of resources: Ensure that the
organization's managerial resources are utilized
optimally.

19. Explain in brief Methods of Executive Development

Executive development programs in human resource

management (HRM) use a variety of methods to help
employees develop skills and knowledge:
• Coaching and mentoring
Experienced executives provide guidance and support
to emerging leaders. This method can help create a
culture of continuous learning.
• Classroom training
Subject matter experts facilitate structured learning
environments for interactive discussions and
knowledge sharing.
• Case studies and simulations
 Participants apply theoretical concepts to practical
scenarios to develop critical thinking and problem-
solving skills.
• Workshops and seminars
Participants can build skills and learn from each other
through hands-on workshops and seminars.
• Online learning modules
Web-based learning platforms allow participants to
learn at their own pace and access resources anytime.
Other methods of executive development include:
• Analyzing development needs to identify gaps in
leadership competencies and individual strengths
and weaknesses
• Appraising present managerial talent to identify
high-potential individuals
• Planning individual development programs to
address specific needs
• Establishing training and development programs to
implement workshops, seminars, and coaching
sessions
• Evaluating development programs to measure
effectiveness through feedback and performance
metrics
Executive development can help employees develop
skills like: Communication, Empathy, Ability to motivate,
and Delegation.

20. Difference between Performance Appraisal and Job

Evaluation
(1) Job evaluation measures the value or worth of a job
whereas performance appraisal evaluates the
performance quality of the job holder.
(2) Job evaluation is not done as regularly as performance
appraisal. Performance appraisal is an ongoing process
and repeated after a particular time period.
(3) The aim of evaluating a job is to create a pay scale for
a job in comparison to other jobs in the organization.
Performance appraisal is carried out to determine
incentives, rewards, promotions or demotions of the
employee.
(4) Job evaluation is carried out by specialists in the area
while performance appraisal is mostly carried out by the
supervisor

21. Define Performance Appraisal according to Dale

Yoder and Edwin Flippo
According to Dale Yoder, “Performance appraisal consists
of all formal procedures used in working organizations to
evaluate personalities and contributions and potentials
of group members”.
• Edwin Flippo has stated the concept of performance
appraisal as, ``Instead of rating an employee on
characteristics such a dependability, initiative and the
like, there is now a tendency towards establishing job
goals and appraising the work done towards these
goals.”
22. Explain in details steps of Performance Appraisal
process.
• Performance Appraisal Process should be
comprehensive and should contain of a well thought step
by step approach of evaluating the performance of the
employees. Below are the steps that are generally
followed which results in an effective performance
appraisal
(1) Objective of performance appraisal : Appraisals can
be carried out for various reasons. These reasons might
include deciding the pay rise and other benefits,
promotions or demotions, job transfers or even layoffs.
In above cases some appraisals may be required to
merely assess the performance while others might aim at
improving the performance.
(2) Job Analysis : Job specification and establishing
performance standardsJob analysis is the second step to
the performance appraisal process. It is important to
determine the job specifications i.e the precise
characteristics of a job through in depth and detailed
examination of the activities, tasks, duties and
responsibilities that are required to do the job. Once that
is decided, performance standards are set against each
task and activity. It is very important that the
performance standards are clear and measurable.Goals
behind each task of the job should be mentioned. Each
goal should be achievable and measurable within a
certain time and cost consideration.
(3) Communicate performance standards to the
employees : Job description should be very clear to the
appraiser and the appraisee, they should know very well
what all tasks and duties are expected out of them by
clearly understanding the goal behind each task.
Performance standards should be communicated to the
appraisee, their feedback should be taken on the set
targets and standards, the communication needs to be a
two way communication where it should be open to any
doubts or discussions and the appraisee should be
coached and guided by the appraiser on how to achieve
the performance standards effectively.
(4) Measuring actual performance against standards set :
After setting up the performance standards,
communicating them to the appraisee and mutual
acceptance is the next step to measure the actual
performance against the standard set. The performance
can be measured objectively and subjectively through
reports, information and observation by the supervisor
etc. While doing this the influence on the employee
performance of both external and internal factors is also
considered. Objective performance can be measured
through reports, quantitative output etc and hence are
easy to be verified. Subjective performance measure
mainly depends on the observation and feedback by the
supervisor and evaluates a person on his attitude,
decision making, taking initiatives, contribution to the
soci-cultural values of the organization etc.
(5) Discussing the appraisal with the employees : The
actual performance when compared to the standards
might at times be above the expectation and sometimes
it might go off the track and the same is discussed with
the employees.
(6) Taking Corrective actions if necessary : Once the
deviation from the actual performance is measured
corrective actions are taken to help enhance the
performance of the appraisee so that and he meets the
expected standards. The appraiser may coach or guide
the appraisee on how to overcome his shortcomings and
improve his quality of work wherever he is lacking, he
might also nominate him for training programs where he
finds a gap between the skills of the appraisee and the
skill required to perform the job. In worse cases where
there is lack of interest or initiatives from the appraisee’s
end, he might also be scolded or warned to get his act
right from immediate effect. Similarly on above expected
performances the employee is rewarded using different
motivational tools
23. Illustrate problems in Performance Appraisal
There are various problems and challenges faced in
Performance appraisal. Some of them are illustrated
below :
1. Judgment Error Since the rating of an employee
depends on the opinion and perception about him held
by his senior or supervisors it may suffer from
subjectivity and bias in many forms which are discussed
below :
a. Halo effect : Under this influence if the rater aptly
rates the employee as excellent in one quality he tends
to further give him higher than deserved rating in other
qualities for e.g excellent scoring in communication skills
might influence the rater to give excellent scoring in
coordination skills even if the employee is not so good at
it.
b. Horn effect : This is the reverse of Halo effect. In case
the employee is a poor performer of low ranker in a
certain quality that might influence the rater to give him
lower than deserved rating in other qualities for e.g the
employee rarely smiles so he does not possess good
interpersonal skills as well.
c. Influence of first impression :At times the first
impression of the candidate in the appraiser’s mind lasts
forever and in turn influences his opinion and ratings for
all the subsequent behavior of the candidate
d. Leniency : This error leaves the entire performance
appraisal exercise redundant. As the appraiser is
reluctant in giving low scores to the employees
depending on his state of mind at the time of appraisal.
He might hesitate to rank an employee very low on the
scale in case the others have achieved a high ranking. e.
Central tendency : In order to play safe and in the fear of
being disliked by his subordinates, managers might end
up rating all the employees as average performers
regardless of the differences in their performance levels.
f. Stereotyping : Under this the supervisors may end up
generalizing the behavior of the subordinates on the
basis of their age, sex, religion,caste etc. They have a
preconceived notion about such images and they might
end up overestimating or underestimating the
employees. g. Recency effect : The most recent behavior
of the employee is so fresh in the mind of the appraiser
that it influences his rating for the entire evaluation
period. h. Consequence of appraisal : If a poor appraisal
result leads to damaging the career of the employee that
appraiser may refrain himself from doing so.
(2) Inappropriate appraisal methods and forms The
methodology used and the forms filled for the appraisal
of the employee impacts the effectiveness of the
performance appraisal to a great extent. The forms may
be too vague, long and complex. It might cover areas that
are not important criteria of the job in question etc.
(3) Lack of training The appraiser might not be properly
trained to conduct an effective performance appraisal.
He might not possess a sense of proper judgment or
decision making skill or suffer from low confidence and
poor communication skills. On the functional front he
might not have the understanding and knowledge of the
areas on which he is ranking his subordinates. They need
to be properly trained before they can carry out
performance appraisal of the employees.
(4) Ineffective implementation of performance appraisal
When the rater provides a feedback about the employee
after a thorough performance appraisal process, it might
not be well accepted by the management. If low rating
by the rater is perceived as a negative sign of failure at
the part of the rater of discontented employee the rater
might lose interest in performance appraisal of the
employees and might award them satisfactory rating
despite their poor performance. To avoid such situations
the raters immediate supervisor must approve the rating
so that the management gains confidence in the
feedback.
24. Explain two methods of Performance Appraisal
Trait Based Method It adopts a qualitative approach
towards performance appraisal. Under this method the
different traits and qualities of the employee are
measured, the behavior they adopt while performing a
job is evaluated. The focus is more on qualities like
attitude, leadership skills, reliability, dependability etc
rather than performance achieved. The various trait
based methods of performance appraisal are discussed
below
1. Confidential Reports : It is a traditional form
of appraisal method where a descriptive
report about an employee’s strength and
weaknesses is submitted by the immediate
superior. This appraisal method is mostly used
in government organizations and is generally
conducted yearly. There are many drawbacks
in this method and hence it is not applied in
today’s scenario.
a. The feedback provided by the superior is
very subjective and can be at times unfair and
biased.
b. There is lack of sense of direction in the
employee’s mind as he is not provided any
feedback about his performance.
 c. It does not lead to any development of the
employee as the employee doesn’t get to
know about the areas where he has a poor
performance neither is he guided for
corrective measures.
2. Straight Ranking Method : It is one of the
oldest and simplest technique of comparative
evaluation of employees. It is the process in
which all the employees of a group are ranked
one after the other starting from the best
performer to the poorest performer
depending on the overall performance level of
the employees. This process is simple but has
its own limitations like.
c. It at times lacks fairness and can be biased
since it is very subjective.
b. Ranking employees one after the other is a
difficult task, it is easy to choose the best and
the worst employee but ranking all individuals
in between is different as they all may possess
varied behavioral traits.
c. There is no systematic ranking procedure
that can lead to standard results.
 d. It is very difficult to be conducted where it
is a large group consisting many employees.
e. The magnitude of difference in the
performance levels and ability between two
consecutive ranks may vary a lot. For e.g the
difference between the first and second
individual may be much greater in absolute
terms than the difference between the
second and third individual.
3. Paired Comparison Method : This is a slight
variation and extension of Straight Ranking
Method. Under this method each employee is
first compared to all the other employees in
the group. Once all the possible comparisons
are done on the basis of the overall
performance, they are given a final ranking. If
there are four employees A,B,C and D in a
group then A’s performance will be compared
to all the other three i.e B,C and D and it will
be decided as to whose performance is
better, the rater puts a tick mark against
whose performance is better than the two
and final ranking is determined by the number
of times that person is judged better than the
 other , the same process will be repeated for
all the other three employees B,C and D. The
number of comparisons that are to be made
amounts to N(N-2) where N stands for the
number of persons to be compared. Hence
the number of comparisons to be made in the
above example are 4(4 -1)/2. This process is
very time consuming it increases the number
of comparisons to be made hence it is not
viable when the group is very large. Paired
Comparison Placing + in the cell means
employee is considered better Ranking Table
and - sign means worse than the other
employee.
4. Critical Incident Method : Under this method
the critical incidents or events and the
behavior associated with these incidents and
events are evaluated. The main objective of
this rating system is to appraise the people
who can perform well in critical situations as
under normal situations almost all the
employees perform alike. It helps to identify
the potential employees who can perform
better under critical situations for e.g How a
 manager handles the situation in the case of
sudden disturbance by workers will reflect his
leadership qualities. It has its own
shortcomings e.g there is a greater chance of
noticing the negative incidences over the
positive ones, also the managers may be too
busy to make a note about a critical incident
or it may require close supervision that may
not be liked by the employees.
5. Checklists and weighted ChecklistMethod :
Under the method the supervisor indicates
the behavior of the employee by responding
to a set of descriptive questions. There is a list
of questions that are prepared by the
personnel department which relate to the
behavior of the appraisee concerned. Each
question has two alternatives yes and no ,
below are few examples
• « Is he/she punctual? Yes/No • « Is he/she
Regular? Yes/No
• « Does he/she respects his/her superiors
and colleagues? Yes/No
• « Is he/she willing to help other employees?
Yes/No Further extension to this approach is a
weighted checklist method where more
weightage may be given to those questions
that are more important .The weightage given
to the questions becomes very subjective at it
suffers from the bias of the evaluator. Below
is a snapshot of how the behavioral traits can
be assigned weights.

6. Essay Evaluation : This is a non-

quantitative and less structured
approach. It is an open ended
description of the strengths and
weaknesses of the employee being
appraised. It throws a light on the
employee’s inherent potential and his
knowledge about the area of his job,
his interpersonal skills and his relations
with the coworkers and the
supervisors. It may also describe his
managing, controlling and organizing
skills along with his ability and
readiness to undertake company’s
programs, policies, objectives etc. This
technique may suffer from evaluator’s
 bias as it can become highly subjective.
Comparison of two essay appraisal is
also not possible due to variation in
their content. It might not present the
correct picture due to the poor writing
skills of the evaluator.
7. Graphic Rating Scale :This method is
commonly used for performance
evaluation where a graphic scale is
established which measures different
degrees of job related characteristics
and qualities present in the employee.
8. ) Grading Method : Under the grading
method the performance of the
employees is measured against some
predefined grades such as A,B,C,D
etc. These grades may indicate
different standards which are well
defined in advance for e.g A indicates
‘outstanding’ i.e the best, D indicates
‘poor’ i.e the worst and B and C in the
middle indicates ‘good’ and ‘average’
respectively.
9. ) Field Review Method : To avoid
subjectivity and bias in the appraisal of
an employee field review method is
adopted. Under this method a trained
and skilled representative of the HR
department works closely with the
supervisor and asks them to provide
specific information regarding the
employee performance i.e his strength
and weakness, work progress,
promotion potential etc. Working in
consultation with the HR specialist
leads to a more reliable performance
appraisal.
10. Forced Choice Method : This
system is adopted to avoid subjectivity
and the tendency of the rater to give
consistently high or low ratings to the
employees. The rater will be given a
group or series of statements out of
which he will have to choose the one
that best describes the characteristics
of the employee being evaluated. The
choices may consist of both negative
 and positive statements for e.g (1)
Smart worker (2) Is not proactive (3)
Can be a leader (4) Wastes time on
unproductive things All or some of the
statement choices given might aptly
describe the employees but the rater is
forced to tick only one which appears
to be more descriptive of the
employee.
11. Man to Man Comparison Method :
Under this method there is
comparative analysis done for each
employee against the other. A scale for
each factor e.g leadership quality,
initiative etc is developed. The
standards on the scale are set not in
terms of numbers, alphabets or
descriptive objectives but in terms of
persons of varying ability. Thus a scale
of men is created for each trait. In
rating an employee the rater looks at
this scale and compares him with the
persons on the scale.
12. Behaviorally anchored rating
system : This is a rating system that
combines the techniques used in the
critical incident method and weighted
checklist rating scale. There is a
behaviorally anchored rating scale
created where the critical incidents
serve as anchors to traditional rating
scales. It is considered to be a superior
performance appraisal method as it
gives more accurate rating of a
person’s performance or behavior.
Below are the steps used in creating
the BARS.
• Critical incidents are identified by job
holders or supervisors and they
describe specific examples of effective
and ineffective behavior related to job
performances.
• The above data derived is then sorted
and clustered into set of key
performance dimensions. Further the
various levels of performance for each
dimension is defined which can be
scaled in terms of excellent, good,
average or poor performance.
• Then a group of subject matter
experts are referred to, they go
through the key performance
dimensions and come to an agreement
for each.The behaviors for which there
is not a high level of agreement (often
50–75%) are dropped, others with a
high level of agreement are retained.
• The retained behaviors are then
scored either on a one-seven or one-
nine scale where one represents
ineffective performance whereas the
top score indicates very effective
performance.
• The standard deviation criteria is
applied where behaviors with low
standard deviation are retained while
behaviors with high standard deviation
are discarded.
• The final BARS instrument consists of
all the behaviors that are retained after
the subject matter experts agreement
and which fulfill the standard deviation
criteria.
• BARS is considered to be a more
accurate and reliable performance
appraisal
methods as experts are also involved in
its creation. It also requires
considerable employee participation
and is thus very well accepted by both
the superiors and the subordinates. On
the other hand it turns out to be very
time consuming expensive as expert
advice is required. Also it is more
activity oriented than result oriented,
hence it evaluates the employees who
are performing the activity without
giving any attention to whether they
are
achieving the goals or not.
Result Oriented Method:-
Under the result oriented method of
appraisal employee’s performance is
studied and examined both in terms of
quality and quantity. Actual
performance levels are measured
rather than depending on the
subjective feedback or ranking by the
supervisors. The result oriendted
method of appraisal also known as
management by objective is discussed
in detail below : • (1) Management By
Objective (MBO) : In 1954, Peter
Drucker coined the term Management
By Objective. It is a technique in which
measurable goals are set by joint effort
of senior and subordinate and the
contribution of each individual is
measured in terms of their
accomplishment of the goals. The goals
set in MBO are not unilaterally set by
the superior or imposed on the
subordinates. These identified goals are
set in close consultation with
subordinates. MBO is an autonomous
and participative style of management.
The concept has become popular these
days as a rewarding style of
management. It focuses concentration
 on the achievement of objectives
through partaking and involvement of
all concerned persons.

25. Define Compensation

• In layman’s language the word ‘compensation’ means
something, such as money, given or received as payment
for service. The word compensation may be defined as
money received in the performance of work, plus the
many kinds of benefits and services that organization
provides their employee. It refers to wide range of
financial and non-financial rewards to employee for their
service rendered to the organization. It is paid in the
form of wages, salaries , special allowance and employee
benefits such as paid vacation, insurance, maternity
leaves, free travel facility , retirement benefits etc.
• According to Wendell French,” Compensation is a
comprehensive term which includes wages, salaries and
all other allowance and benefits.” Wages are the
remuneration paid for skilled, semiskilled and unskilled
operative workforce. Salary is the remuneration of those
employees who provides mental labour to the employer
such as supervisor, office staff, executive etc wages are
paid on daily or hourly basis where as salary is paid on
monthly basis.

26. Explain all kind of Incentives in detail

• Incentives can be classified under the following
categories:
1. Individual and Organizational Incentives.
2. Financial and Non-Financial Incentives.
3. Positive and Negative Incentives.
• 1) Individual and Organizational Incentives- According
to L.G. Magginson, “Individual incentives are the extra
compensation paid to an individual for all production
over a specified magnitude which stems from his exercise
of more than normal skill, effort or concentration when
accomplished in a predetermined way involving standard
tools, facilities and materials.” Individual performance is
measured to calculate incentive where as organizational
or group incentive involve cooperation among
employees, management and union and purport to
accomplish broader objectives such as an organization-
wide reduction in labour, material and supply costs,
strengthening of employee loyalty to company,
harmonious management and decreased turnover and
absenteeism.
• 2) Financial and Non-financial Incentives- Individual or
group performance can be measured in financial terms. It
means that their performance is rewarded in money or
cash as it has a great impact on motivation as a symbol of
accomplishment. These incentives form visible and
tangible rewards provided in recognition of
accomplishment. Financial incentives include salary,
premium, reward, dividend, income on investment etc.
On the other hand, non-financial incentives are that
social and psychological attraction which encourages
people to do the work efficiently and effectively. Non-
financial incentive can be delegation of responsibility,
lack of fear, worker’s participation, title or promotion,
constructive attitude, security of service, good leadership
etc.
• 3) Positive and Negative Incentives- Positive incentives
are those agreeable factors related to work situation
which prompt an individual to attain or excel the
standards or objectives set for him, where as negative
incentives are those disagreeable factors in a work
situation which an individual wants to avoid and strives
to accomplish the standards required on his or her part.
Positive incentive may include expected promotion,
worker’s preference, competition with fellow workers
and own ‘s record etc. Negative incentives include fear of
lay off, discharge, reduction of salary, disapproval by
employer etc.
27. Write in brief about Roles of HR Manager
a) Policies- HR policies are based on trust, openness,
equity and consensus.
b) Motivation- Create conditions in which people are
willing to work with zeal, initiative and enthusiasm; make
people feel like winners.
c) Relations- Fair treatment of people and prompt
redress of grievances which would pave the way for
healthy work-place relations.
d) Change Agent- Prepare workers to accept
technological changes by clarifying doubts.
e) Quality Consciousness- Commitment to quality in all
aspects of personnel administration will ensure success.
Due to the new trends in HR.
• Strategic Partner
In today’s organizations, to guarantee their viability and
ability to contribute, HR managers need to think of
themselves as strategic partners. In this role, the HR
person contributes to the development of and the
accomplishment of the organization-wide business plan
and objectives. The HR business objectives are
established to support the attainment of the overall
strategic business plan and objectives. The tactical HR
representative is deeply knowledgeable about the design
of work systems in which people succeed and contribute.
This strategic partnership impacts HR services such as the
design of work positions; hiring; reward, recognition and
strategic pay; performance development and appraisal
systems; career and succession planning; and employee
development.
• Employee Advocate
As an employee sponsor or advocate, the HR manager
plays an integral role in organizational success via his
knowledge about and advocacy of people. This advocacy
includes expertise in how to create a work environment
in which people will choose to be motivated,
contributing, and happy. Fostering effective methods of
goal setting, communication and empowerment through
responsibility, builds employee ownership of the
organization. The HR professional helps establish the
organizational culture and climate in which people have
the competency, concern and commitment to serve
customers well. In this role, the HR manager provides
employee development opportunities, employee
assistance programs, gain sharing and profit-sharing
strategies, organization development interventions, due
process approaches to problem solving and regularly
scheduled communication opportunities.
• Change Agent People often resist change.
A significant change occurs when an individual moves
from his home environment to work environment, or
when there is a transition from a traditional work
method to an advanced technological method.
Technological advancement brings about changes which
a worker may resist. At this point, the personnel manager
has a crucial role to play. He has to convince workers of
the need for automation and prepare them to accept
changes well before they are introduced.
Implementation is mainly a method of getting new
methods and ideas accepted and used with the least
friction but with ample scope of improvement. Hence
changes should be phased gradually and thoughtfully
without provoking negative reactions from the workers.
28. Explain Total Quality Management Concept with its
14 points.
A core concept in implementing TQM is Deming’s 14
points, a set of management practices to help companies
increase their quality and productivity:
1. Create constancy of purpose for improving products
and services.
2. Adopt the new philosophy.
3Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone;
instead, minimize total cost by working with a single
supplier.
5. Improve constantly and forever every process for
planning, production and service.
6. Institute training on the job. .
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the
workforce.
11. Eliminate numerical quotas for the workforce and
numerical goals for management.
12. Remove barriers that rob people of pride of
workmanship, and eliminate the annual rating or merit
system.
13. Institute a vigorous program of education and self-
improvement for everyone.
14. Put everybody in the company to work accomplishing
the transformation.
29. Write a short note on Impact of Technology on HRM
• Technological advances in office equipment
over the past thirty years have enabled
organizations to improve operating efficiencies,
improve communications, reduce costs, increase
their global presence, and gain competitive
advantage through the implementation of
information technology systems.
• Since the 1960’s, Information Technology has
dramatically changed the landscape of the
workplace through advances in office
equipment, speed of information transmission
and methods of communication. From a human
capital perspective, Information Technology has
allowed companies and their employees to
increase efficiencies, communicate more
rapidly, and work from remote locations. The
ability of the workforce to perform
organizational tasks from a remote location also
known as “Telecommuting” has enabled
employees to improve quality of life and
manage the professional and personal aspects
of their lives.
• From an operational perspective, investments in
Information Technology by organizations willing
to embrace technology have resulted in
increased efficiencies, cost reductions, global
expansion, improved intracompany and
customer communications, improved reporting
and tracking methods, and increased
competitive advantage in the market place.
• • Computers loaded with word processing,
spreadsheet analysis and presentation software
programs have become standard fixtures on
each employee’s desk. Some of the workforce
became mobile, conducting business outside of
the traditional office settings through the use of
Personal Digital Assistants (PDAs), cellular
phones and laptop computers. The initial users
of mobile technology were salespeople and
executive management; however, easier access
to the internet allowed more employees to
become “Telecommuters,” who conducted
work-related activities either from their homes
or from some other remote location.
• Technological advances in electronic
communication may continue to decrease the
 need for traditional office setting while
increasing the number of telecommuters.
Electronic capabilities will also continue to affect
outsourcing, off-shoring and globalization
efforts by many organizations.
• Collaboration technologies, currently being
enhanced by Microsoft and IBM, enables
companies to conduct “virtual meetings” . In a
virtual meeting, employees from remote
locations conduct real-time meetings from their
own computers using peer-to-peer software.
Participants can see one another on computer
screens, share computer space and make to
product designs or contract documents via a
“virtual whiteboard.
30. What is Globalization in HRM
• Globalization or international business refers to
economic integration among the countries across the
world. When business activities cross national
boundaries, international business is said to have
happen. Globalization is a process of
internationalization of products, markets,
technologies, capital, human resource, information
and culture. Due to reduction in trade barriers factors
of production can be easily arranged from other
countries and subsidiaries can be located in low cost
countries. Improvement in communication,
information processing including internet and
transportations has eliminated physical barrier thus
facilitating globalization.
31. Explain Benefits and Threats from Globalization
(1) Increased Market Size With the increasing
opportunity of globalization, companies get increased
market size to sell their product. They can attract
domestic as well as international customer. As, the
product popularity rises and the product is more
preferred by the customers, firms can very easily
increase their market share.
(2) Economies of Scale When additional units of goods
can be produced at relatively lower prices, it is said to
be achieving the economies of scale. This happens
when the company expands and its production
increases. In other words, we can say that for many
goods, the unit cost of product is less in large factories
as compared to the smaller ones. The large companies
have a better chance to reduce its prices that helps in
attracting more customers. This will help in achieving
the economies of scale. Globalization expands the
customer base and helps achieve economies of scale.
(3) Favorable Government Policies Favorable
government policies play a very important role in
increasing the globalization. In many countries
Government has liberalized certain restrictions like
removal of trade barriers, reductions in quotas and
tariffs, providing subsidies, introduction of special
economic zone and free trade zones, promoting export
activities. All these have helped in reducing the
expense on international trade and developing the
trade across the countries.
(4) Exploit Local Advantage Companies can also make
use of the local advantage of the country in which they
are doing international business. For example,
company can use labor of the other country which is
available at cheap rates, Many MNCs have entered
India and conduct their business just because they can
take advantage of lowpriced factors of production that
is locally available in the country.
(5) Achieve Economic Growth Due to flow of capital to
developing countries from developed countries new
industries are set up. It generates employment
opportunities and improves the purchasing power of
the people. This leads to increase in demand that
further stimulates the growth in economy.
 (6) Achieve Full Employment of People and Optimum
Use of Resources The developed countries outsource
large number of jobs to developing countries creating
employment opportunities. Savings gained by
developed countries are redirected to other more
productive jobs.
Threats from Globalization:
(1) Failure to Compete with Global Market As the
globalization is increasing, the competition is also
increasing. There are many companies, who are not
able to compete or survive in the global market. Big
companies incur heavy expenses on advertisement to
make their product popular. Due to this local players
suffer from heavy losses and lack finances to advertise
their product in order to survive the competition. This
intense competition can be very dangerous to local
players.
(2) Failure to study foreign customer’s demands and
preferences Sometimes companies fail to understand
the demand and preferences of the customers of the
other countries. There is always difference in the
culture, taste, preferences and expectations of the
customers of the other country. Company is unable to
understand what the customer is looking for, hence it
 fails to make a market and establish itself in that
country.
(3) Political Risks Globalization is definitely affected by
the politics. There are many countries that do not have
very strong government. There are many civil wars,
internal trouble that could cause major risk for the
investments made in those countries. Therefore, due
to such conditions it is not always safe to enter in such
countries. The political risk may arise due to
unanticipated change in political set up. If the host
country develops strained political relationship with
home country it can lead to expropriation or
confiscation of business property.
(4) Operating exposure Risk arises due to changes in
exchange rate and inflation rate of the country.
Unfavorable changes can alter the amount and risk
element of future revenues of the company adversely.

32. Difference between Global and Domestic HRM

(1) Broader Perspective and More Functions Company
needs a wider outlook while dealing with the different
issues at international level. For example, if the company
wants to decide on issues like the basic pay, benefits,
incentives and compensation, the international HR
manager will face more complex situation. The pay
system and currencies will be different in different
currencies. The payments will have to be disbursed in
different currencies that may change in relative value to
one another over time. While evaluating the training
needs the need for cross cultural training has to be
assessed. The international operation broadens and
extends the core HR functions.
(2) More Heterogeneous Function IHRM is more complex
than domestic HRM. In domestic HRM all the business
transactions are executed in one country but in IHRM
more than one country is involved. Therefore, it becomes
very difficult to manage human resources of two or more
countries at the same time. Countries have different
culture, political environment, economic systems,
customer’s preferences and social set up. This will
influence the differences in functioning of a plant in one
country to functioning of other plant in another country.
The company will manage the human resource of the
plant or office according to the requirement and laws
and regulations of country in which it is operating. This
not only broadens the functions but also augments them.
The additional functions of IHRM include analyzing the
impact of international taxation on salary of expatriates,
facilitating international relocation and orientation,
providing administrative services for expatriates.
(3) Higher Exposure to Risk In IHRM more risk is involved
than domestic HRM. The risks involved in international
business are unique and more intimidating. The
involvement of risk factor varies from country to country.
Huge investment is done on travelling expenses,
relocation and training of expatriates and if they fail to
perform or underperform, it can have disastrous effect
on the organization. Another risk involved is the political
risk especially in the countries having civil unrest or are
target of terrorist activities. Hence physical safety in this
regard becomes very important necessitating creation of
the emergency evacuation procedure for highly risky
locations.
(4) More Involvement in the Employee’s Personal Life
IHRM involvement is more in the personal life of the
employees as compared to domestic HRM.. Before
sending the expatriate to the host country the HR
department must ensure that he is aware of the health
and medical facility, culture, language, political
environment of the country and many other factors.
They have to give assistance and support to their spouse
and family also while relocation, like providing suitable
housing facilities and schooling to children. If the family
is able to adjust well in the assigned location the
expatriate will be able to handle work assignment
smoothly. All this will help the expatriate to settle down
in host country. In order to provide the support and
service needed by the expatriate in the host country HR
manger demonstrates greater involvement in the
personal life of employees.
(5) More External Influences External factors to a large
extent influence the IHRM activities. The managers in the
host country are dictated by host country’s laws of hire
and remuneration. The general code of conduct and
generally accepted business practices also influences the
functions of HR managers. He may have to deal with
ministers, political figures, and various economic and
social interest groups that domestic HR managers would
normally not come across.