COMPENDIUM ON

HUMAN RESOURCES

2025
www.dms.iitd.ac.in
 TABLE OF CONTENTS

01 Introduction to Human Resources

1.1 The Evolving Role of HR 01
1.2 Strategic Alignment: HR and Business Goals 02
Working Together

02 HR Industry in India
2.1 Overview and Current Trends 02
2.2 Key HR Trends in Indian Organizations 02

03 Functions of HR
3.1 Manpower or HR Planning 03
3.2 Recruitment, Selection and Onboarding 04
3.3 Training and Development 04
3.4 Performance Management 04
3.5 Exit Management 06

04 Overview of HRMS
4.1 AI and Data Analytics in HR 06

4.2 Automation in Recruitment and Onboarding 07

05 Organizational Behaviour 07

06 Personality frameworks
6.1 Myers-Briggs Type Indicator MBTI) Personality 08
Framework
6.2 The Ocean Personalities 08
6.3 Motivational Theory Frameworks 09
07 Team Dynamics and Interpersonal Behaviour 13

08 Common Questions 15
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INTRODUCTION TO HUMAN
RESOURCES
What are resources?

Resources are the inputs you require to Why HR?

produce something. The result could be
either products or services. Examples: Due to the growing demand and influence
Land, Raw materials, Machines, People, on the organizational culture, the demand
etc. for skilled HR professionals is rising, driven
by globalization, digital transformation, and
What are Human Resources? workforce diversity. HR professionals are
pivotal in cultivating a positive
Human resources refer to the workforce or organizational culture through policies
the people working in an organization. promoting inclusivity, collaboration, and
Note: Humans are regarded as the most ethical behaviour.
valuable resource because they make the
best use of nature to generate more Career Growth Prospects
resources.
HR professionals have growth
What is HRM? opportunities, advancing from entry-level
roles to leadership positions, including HR
HRM involves the productive use of people Manager, VP of HR, or Chief Human
in achieving Organizational Goals and the Resources Officer (CHRO). Senior HR
satisfaction of Individual Employee needs. roles involve strategic decision-making and
In other words, HRM is the management of alignment of HR with organizational
human resources by: objectives.

• Attracting 1.1 The Evolving Role of HR

• Selecting
• Motivating Traditionally, HR focused on administrative
• Developing and Utilizing tasks like payroll, benefits, and
• Retaining the human resources to compliance. Today, however, HR serves
achieve the organizational goals. as a strategic business partner, actively
contributing to an organization's success
Functions of HRM by:

1. Manpower or human resource planning Attracting and retaining top talent: In

2. Job analysis and designs today's competitive talent market,
3. Recruitment, Selection and Onboarding attracting qualified individuals and keeping
4. Training and development them engaged is crucial.
5. Performance management
6. Compensation and reward Driving employee engagement:
7. Employee engagement and retention Engaged employees are more productive,
8. Exit management innovative, and satisfied.

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Supporting organizational change: • Understanding the organization's

Businesses constantly evolve, and HR mission, vision, and values: HR
plays a critical role in managing change initiatives should support these
effectively. overarching goals.

Ensuring compliance and mitigating • Identifying key talent needs: HR

risk: HR upholds legal and ethical strategies should ensure the
standards by ensuring compliance with organization has the right people with
labour laws, managing employee relations, the right skills to achieve its objectives.
and addressing discrimination claims.
• Developing metrics to track HR's
Shaping organizational culture: The impact: Measuring the effectiveness of
values, behaviours, and work environment HR programs in terms of employee
define a company's culture. engagement, turnover, productivity,
and other relevant metrics
demonstrates HR's contribution to
1.2 Strategic Alignment: HR and business outcomes.
Business Goals Working Together

For HR to truly impact an organization's

success, it needs to be strategically
aligned with business goals. This means:

HR Industry in India
2.1 Overview and Current Trends
Employee Well-Being: Focus on mental
India’s HR industry is expanding, driven by health, wellness programs, and work-life
sectors like IT/ITES, manufacturing, and balance.
retail. Trends include a focus on
technology adoption, hybrid work models, Reskilling: Emphasis on training in AI,
mental health, and employee wellness. digital tools, and emerging technologies.

Challenges and Opportunities for DEI Initiatives: Greater focus on diversity,

Innovation equity, and inclusion in workplaces.

Challenges in India’s HR sector include HR Tech: Use of AI, analytics, and

managing diverse workforces, compliance automation in recruitment and
with complex Labour laws, and skill gaps. engagement.
Opportunities exist in AI-driven
recruitment, employee engagement, and Personalized Experiences: Tailored
creating inclusive workplace cultures. benefits and career development for
employees.
2.2 Key HR Trends in Indian
Organizations
Hybrid Work: Flexible work arrangements
combining remote and office setups.

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FUNCTIONS OF HR

3.1 Manpower or HR planning

Steps involved in Manpower
Manpower Planning entails putting the Planning:
right number of people, the right sort of
people, in the right place at the right time,
Job analysis and designs
doing the right things, and achieving
Organizational Objectives. In simple
Job Analysis refers to a systematic process
words, it is the practice of estimating the
of collecting all information about a
optimal number of employees required to
particular job, including skillset
complete a project, job, or objective on
requirements, roles, responsibilities and
time. It is also known as Human Resource
processes, to create a valid job description.
Planning.
Job Analysis is a crucial stage in ensuring
that the best candidate is hired. The
Need for manpower planning:
employer can use job analysis to help with
recruitment, selection, performance
• Shortages and surpluses can be
identified, allowing for prompt action
wherever it is needed.

• Manpower planning underpins all

recruitment and selection programs.

• It also helps in reducing labour costs by

identifying excess staff and hence
avoiding unnecessary resources.

• When resources are used to their

maximum potential, productivity rises.

Steps involved in Job Analysis

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management, remuneration, benefits, etc. Training is provided to the new employees

so that they can learn about the
organization's mission, vision, laws and
regulations, and working conditions.
3.2 Recruitment, Selection and
Onboarding • Employees are provided training so that
they can share the obligations of a higher-
Recruitment is the process of finding level job.
candidates for the vacant post and
attracting them to apply for it. Selection is • If there are any technological updates,
the process of selecting the best candidate training is provided to cope with the
from a pool of candidates and extending an changes. Employees receive training
offer of employment to them. Onboarding on how to adapt to new work procedures.
is the process of integrating a new
employee into a company's culture and • Existing personnel are given refresher
providing them with the tools and and enhancement training.
information they need to become a
productive member of the team.

Recruitment Process

3.3 Training and development 3.4 Performance management

Training and Development helps to keep The process of continual communication
employees' skills and knowledge up to date and feedback between a manager and an
for doing a job, which in turn helps to boost employee towards the attainment of
their work efficiency and an organization's organizational objectives is defined as
productivity. Performance Management.

Need for Training and Development Once people are part of the team, their
performance has to be managed.

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• To evaluate and assess what they are Compensation and reward

doing.
Compensation is pay provided by an
• To give them directions. employer to an employee in return for work.

• To figure out whether they are engaged or A basic model for compensation plans
not. includes –

• To evaluate their skills and abilities. Internal alignment - It makes pay

comparisons among jobs or skill levels
inside a single organization.

External competitiveness - It makes pay

The Performance Management Cycle: comparisons with competitors - other

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organizations that hire people with similar

KSA (knowledge, skills, and abilities). create conditions resulting in employee
engagement.
Employee Benefits include all
compensation other than base salary. 3.5 Exit Management
Example, paid time off, life insurance,
medical insurance, leave benefits, Exit management is a crucial aspect of
wellness programs, employee assistance, Human Resource Management (HRM) that
educational benefits, Retirement savings, deals with the processes and procedures
etc. involved when an employee leaves an
organization. Effective exit management
Elements of Compensation: ensures a smooth transition, minimizes
disruptions, and maintains positive
1. Fixed pay: Base pay relationships with departing employees.

2. Variable pay: Changes with

performance (organizational and
individual) Key Components of Exit Management:

Employee engagement and retention 1. Resignation/Retirement Handling

2. Exit Interviews
Engaged employees are those who are 3. Notice Period Management
committed and are enthusiastically 4. Handover Process
involved in their work and workplace. 5. Clearance and Documentation
6. Knowledge Transfer
• Employees are happy with their work - 7. Exit Formalities
Employee Satisfaction 8. Alumni Engagement

• Employees are attached to their work - By handling employee exits professionally

Employee Commitment and empathetically, organizations can
foster a positive work environment, retain
• Employees are actively invested in their valuable knowledge, and build lasting
job - Employee Engagement relationships with their workforce.

Note: Employee engagement is one of the

most popular predictors of job
performance. So, managers should try to

Overview of HRMS
HRMS (Human Resource Management 4.1 AI and Data Analytics in HR
Systems) are software solutions that
centralize and automate HR tasks, such as AI and analytics enable smarter HR
payroll, performance management, decisions by:
recruitment, and compliance. They offer
features like cloud-based access, real-time Predictive Analytics: Forecasting
analytics, and streamlined workflows, turnover and workforce needs.
enhancing efficiency and decision-making
in HR.

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AI in Recruitment: Automating resume Challenges in Technology Adoption

screening and candidate ranking.
Key challenges include:
Employee Engagement: Analyzing
feedback to improve satisfaction. Cost: High implementation and
maintenance expenses.
Bias Reduction: Using objective data for
hiring and promotions. Resistance: Employee reluctance to adapt
to new systems.
4.2 Automation in Recruitment
and Onboarding Data Security: Ensuring protection of
sensitive employee information.
ATS (Applicant Tracking Systems):
Automates job postings, resume filtering, Skill Gaps: Training HR teams to use
and interview scheduling, enhancing hiring advanced tools.
efficiency.
Integration: Aligning new technologies
Onboarding Automation: Digital portals with legacy systems.
guide new hires through training,
documentation, and orientation. Integrating technology in HR offers
immense potential, but addressing these
Chatbots: AI tools answer FAQs and challenges is critical for successful
streamline communication for candidates implementation.
and new hires.

Organizational Behaviour
The academic discipline of organizational • The second level is groups, which
behaviour examines how individuals. includes sociological and social-
behave in organizations. To improve psychological understandings of
corporate operations, organizational interpersonal relationships and group
behaviour theory's ideas are generally dynamics.
implemented. Organizational behaviour is
the study of how individuals interact with • The highest level is the organizational
one another. within a group, such as a level, where sociology and organization
company. These contacts consequently, theory are used to conduct system-level
have an impact on the performance and studies and research how businesses
behaviour of the organization. interact with one another in the
Organizational behaviour is utilized in marketplace.
business to boost productivity, boost
creativity, and offer companies a
competitive advantage.

Levels of Organizational Behaviour

• The first level is individual, and it

comprises organizational psychology as
well as knowledge of motivations and
human behaviour.

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Personality Frameworks
6.1 Myers-Briggs Type Indicator
(MBTI) Personality Framework

A self-help assessment tool called the Note: You can perform your own
Myers-Briggs Type Indicator (MBTI) may personality test at
help individuals discover more about how https://www.16personalities.com/free-
they think and learn. It serves as a personality-test
foundation for fostering relationships,
growing optimism, and reaching greatness. 6.2 The Ocean Personalities

Katharine Briggs created the MBTI based The big five personality qualities are
on Carl Jung's typological notion of four
psychological functions that shape our Openness, Consciousness, Extraversion,
worldview. We all depend on one function. Agreeableness, and Neuroticism. They are
MBTI identifies preferences based on also known as OCEAN and CANOE.
interests, values, needs, and motivation. These five characteristics cover a wide
Subjective clinical assessments led Carl range of human behaviour and are
Jung to this hypothesis. The idea divides responsible for both personality and
you into four sorts depending on your decision-making variations. The model is
comfort zone, however it's tricky. now utilized by HR professionals to assess
job candidates and by marketers to
You may be more comfortable with comprehend the target markets for their
people, things, ideas, and knowledge. You goods.
may choose logic, truth, values, and
relationships. Openness to experience: This refers to
the readiness to attempt new things and
A well- managed life (judgment or going think beyond the box, it is also referred to
with the flow, perception). MBTI personality as intelligence or imagination.
types are based on preferences. Insightfulness, uniqueness, and curiosity
are qualities.
You may be an introvert who prefers
abstract concepts or an extrovert who Conscientiousness: The desire to use
prefers people. You may appreciate caution, diligence, and self-control in
perceiving facts and knowledge or controlling the want for instant satisfaction.
exploring the unknown as an intuitive Ambition, discipline, dependability, and
person. consistency are qualities.

Decision-making is the third choice. Decide Extroversion: A condition when a person

rationally or emotionally. Finally, your seeks out social engagement or
lifestyle may be organized or unorganized. relationships and draws energy from
people rather than spending time alone
The MBTI test generates your personality (introversion). Being outgoing,
code from these preferences or kinds. It is enthusiastic, and self-assured are
the most popular personality test. qualities.

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Agreeableness: The evaluation of

someone's interpersonal skills, which is Maslow's pyramid of requirements places
shown by their level of cooperation and fundamental necessities at the bottom and
compassion. Tactic, compassion, and intangible wants at the top. After meeting
loyalty are qualities. fundamental requirements, a person may
address higher-level demands.
Neuroticism: A propensity for unfavorable
personality characteristics, unstable 1. Physiological requirements: They are
emotions, and damaging thought patterns. Maslow's initial id-driven lower wants.
Pessimism, worry, insecurity, and Food, water, rest, clothes, housing, health,
fearfulness are traits. and reproduction are essential human
requirements. Maslow says that people
must meet these physiological demands
before reaching the next stage of
satisfaction.

2. Safety requirements: They follow

Violence, thievery, mental stability, health,
and financial security are safety
requirements.

3. Love and belonging: Maslow's

hierarchy's last lower requirements, social
wants, include human contact. Friendships
and family bonds—both biological
(parents, siblings, children) and chosen—
are among these necessities (spouses and
partners). Intimacy, from sexual to
6.3 Motivational Theory emotional, is essential to kinship. From
Frameworks working with a team to joining a union, club,
or hobbyist organization, social groupings
Maslow’s Hierarchy of Needs can satisfy this requirement.

According to Maslow's hierarchy of needs, 4. Esteem requirements: Ego-driven

a theory of motivation, a person's conduct wants start with esteem. Self-respect and
is determined by five categories of basic self- esteem are the foundations of self-
human needs. These needs include those worth (confidence in your potential for
for physiology, safety, love and belonging, personal growth and accomplishments).
esteem, and self-actualization. Maslow distinguishes between self-esteem
based on respect and acknowledgement
from others and self-esteem based on self-
assessment. This self-esteem gives
confidence and freedom.

5. Self-actualization: Reaching your

maximum potential. Self-actualization
needs, sometimes termed self-fulfilment,
top Maslow's pyramid. Self-actualization
demands include education, skill

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development— refining abilities in music, club," which means they want to contribute
sports, design, cooking, and gardening— to the project and be welcomed by their
caring for others, and bigger ambitions like fellow group members.
learning a new language, traveling, and
winning prizes. Power: This individual is driven by power,
as implied by the category's name. They
McClelland’s Human Motivation Theory are driven by the chance to exert influence
over the other members of the group. This
According to McClelland's Human is the sort of individual who will flourish in a
Motivation Theory, everyone is primarily competitive setting as opposed to fleeing it.
driven by one of three needs: the desire for
power, affiliation, or success. We acquire Herzberg's Two Factor Theory
these motivators via our culture and life
experiences; they are not inherently According to Herzberg’s two-factor theory,
present in us. which is sometimes called Herzberg’s
Hygiene Theory, work satisfaction and
discontent are not mutually exclusive
concepts. According to the research that
supports this idea, some work traits are
linked to job satisfaction, whereas other job
characteristics are linked to job
unhappiness.

Hence, removing unhappiness won't

always result in pleasure, and vice versa.
The conclusion was that to eliminate
unhappiness, the management needed to
identify and address its root causes. You
Achievement: Usually, the person who is must include those desirable
driven by pure success will take great characteristics to increase satisfaction.
pleasure in the chance to establish and Nevertheless, this won't work until the
achieve objectives. In many respects, this sources of your displeasure have been
is the best mindset for a worker to have. An addressed. Based on the occupational
employee that is achievement motivated is features that employees find satisfying,
unlikely to need much outside motivation Frederick Herzberg created the two-factor
since they are driven merely by the process hypothesis. He was able to draw the
of doing their task in a way that makes distinction between gratifying and
them proud. unsatisfactory qualities. Dissatisfying
elements are referred to as hygiene factors
Affiliation: This subsequent person is, in since they are a result of the environment
many respects, the antithesis of the person in which the work was done (rather than
who is driven by success. The individual functions of the job itself). Workplace
driven by affiliation wants to work as a environment, corporate rules, supervisors,
member of a group rather than desiring to salaries, safety, and security are typical
work alone in order to experience the hygiene variables. Satisfying elements
feeling of success that comes with a job were classified as motivators. Motivators
well done. They may not necessarily find are aspects that are inherent to the
satisfaction in the prospect of being profession as opposed to hygiene
praised and acknowledged for their efforts. elements like professional progress et al.
Instead, they want to be a "member of the

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Goal Setting Theory by Edwin Locke

Goal-setting theory refers to the effects of setting goals on subsequent performance. Locke
found that individuals who set specific, difficult goals performed better than those who set
general, easy goals. He proposed five basic principles of goal setting: clarity, challenge,
commitment, feedback.

Vroom’s Expectancy Theory

The expectancy theory places an emphasis on the process and on the content of motivation
as well, and it integrates needs, equity, and reinforcement theories. This theory aims to
explain how people choose from the available actions.

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The first question is whether the person The second question is the degree to which
believes that high levels of effort will lead the person believes that performance is
to outcomes of interest, such as related to subsequent outcomes, such as
performance or success. This perception is rewards. This perception is labelled
labelled expectancy. instrumentality.

The anticipated satisfaction that will result

from an outcome is labelled valence. How
can you influence?

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Adam’s Equity Theory

Team Dynamics
The equity theory states that people are
motivated if they are treated equitably and
receive what they consider fair for their
and Interpersonal
effort and costs. According to this theory,
people compare their contribution to work,
Behaviour
costs of their actions and the benefits that
As we dive deeper into the intricacies of
will result to the contribution and benefits of
human resource management, it's crucial
the reference person. If people perceive
to understand how individuals interact
that the ratio of their inputs-outputs to the
within groups and teams. This knowledge
ratio of referent other's input-output is
is invaluable not just for HR professionals,
inequitable, then they will be motivated to
but for anyone working in a collaborative
reduce the inequity. Individuals are
business environment.
motivated by a sense of fairness in their
interactions. Equity is determined by
Identity and Social Identity Theories
comparing one’s input-outcome ratio with
the input outcome ratio of a referent. When
Bases of Identity: Group vs. Role
the two ratios are equal, equity exists.
Social Identity Theory: Group-Based
Identities
• Core Idea: People derive their
identities from the groups they
belong to (e.g., gender, ethnicity,
professional domains).
• Key Process: Self-
Categorization—individuals classify
themselves as part of an "in-group"
and distinguish themselves from
"out-groups."
• Impact on Workplace:
• Encourages uniformity within
teams, fostering shared
goals and values.
• Can lead to stereotyping or
biases against "out-groups,"
which HR shall address
through sensitization
exercises.

Identity Theory: Role-Based Identities

• Core Idea: Identities are shaped by
the roles individuals occupy (e.g.,
manager, mentor).
• Key Process: Role Negotiation—
individuals align their behaviors with
role expectations through
interaction with others.
• Impact on Workplace:
• Highlights the importance of
clear role definitions and

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expectations. excel at campaigns but struggle with

• Encourages unique innovation due to lack of diverse
contributions within teams, perspectives.
fostering interdependence. Identity Theory: Differentiation Through
Roles
While group identities • Role-based identities emphasize
emphasize similarity (e.g., team unique contributions, leading to:
cohesion), role identities focus • Interdependence among
on interconnected uniqueness (e.g., team members.
complementary skills). HR strategies • Potential conflicts if roles are
should balance both to create cohesive yet unclear or overlap.
diverse teams. • Example: In a project team, a clearly
defined "project manager" ensures
Identity Formation Processes coordination, while individual
contributors bring specialized
Social Identity Theory: Self- expertise.
Categorization and Social Comparison
• Individuals enhance self-esteem by
associating with high-status groups McKinsey 7S Framework: Aligning HR
(in-group favoritism) and contrasting with Business Goals
with lower-status groups (out-group
bias). The McKinsey 7S Framework is a powerful
• Example in the Workplace: tool for assessing organizational
Employees may feel more alignment. It evaluates seven
motivated when they identify interconnected elements that determine
strongly with their organization’s whether an organization is operating
mission or brand. effectively. This framework is particularly
Identity Theory: Role Identification and useful for cases involving organizational
Internalization restructuring, cultural transformation, or
• Individuals internalize role digital adoption.
expectations and align their
behaviors accordingly. The 7 Elements:
• Example in the Workplace: A 1. Strategy: Does the HR strategy
manager who identifies strongly align with business goals?
with their leadership role will 2. Structure: Is the organizational
prioritize decision-making and team structure conducive to achieving
mentorship. objectives?
3. Systems: Are HR systems (e.g.,
Consequences of Identity performance management,
Social Identity Theory: Uniformity in recruitment) efficient and scalable?
Perception and Behavior 4. Shared Values: Do employees
• Group-based identities encourage share common values that drive
members to think and act similarly, engagement?
leading to: 5. Style: What is the leadership style,
• Stronger team cohesion. and how does it impact culture?
• Risk of groupthink if 6. Staff: Does the organization have
dissenting opinions are the right talent in the right roles?
suppressed. 7. Skills: Are employees equipped
• Example: A marketing team unified with the skills needed for success?
by a shared brand identity may

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make your decision?"

Common Questions 2. "An employee comes to you with a
confidential complaint about harassment.
This section aims to familiarise you with the What steps would you take?"
knowledge and strategies to confidently 3. "Your company is experiencing high
navigate HR related questions during the employee turnover. How would you identify
PI. We've compiled a list of frequently the root causes and develop a retention
asked questions, categorised for clarity, strategy?"
along with insights into what interviewers
look for and how to craft compelling Tips for Answering
responses. Remember, preparation is key
to success! Use the STAR method: For behavioral
questions, structure your answers using
Knowledge of HR functions and Situation, Task, Action, Result.
concepts Be specific and provide examples:
Avoid vague statements. Back up your
1. "What are the key functions of HR?" claims with concrete examples from your
(Demonstrate your understanding of core experience.
HR processes like recruitment, training, Practice your answers: Rehearsing your
compensation, and employee relations.) responses will boost your confidence.
2. "What is your understanding of talent Be prepared to ask questions: Asking
management?" (Explain its importance thoughtful questions shows your
and how it contributes to organizational engagement and curiosity.
success.)
3. "Describe your experience with HR
technology and systems." (Highlight
your familiarity with HRIS, ATS, or other
relevant tools.)
4. "How would you handle a conflict
between an employee and a manager?"
(Demonstrate your conflict resolution and
mediation skills.)
5. "What is your approach to employee
engagement?" (Share your strategies for
fostering a positive and productive work
environment.)
5. "How do you measure the
effectiveness of HR initiatives?"
(Discuss the importance of HR metrics and
data analysis.)
6. "What are some current challenges
facing the HR profession?" (Show your
understanding of the evolving HR
landscape.)

Situational/Case-Based Questions

1. "Imagine you have two candidates for a

position. One has more experience, but the
other is a better cultural fit. How would you

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