Human Resource Management (HRM) – Module I

1. Meaning and Definition of HR & HRM

 Human Resource (HR): Refers to the workforce of an organization. Employees are considered
assets that contribute to business success.
 Human Resource Management (HRM): The process of managing people in an organization to
achieve organizational goals.
 Definition: "HRM is the art of acquiring, developing, and maintaining a workforce to improve
organizational performance."

2. Objectives, Scope & Functions of HRM

Aspect Explanation
Objective 1. Ensure proper utilization of human resources.
s 2. Enhance employee efficiency.
3. Improve job satisfaction & work culture.
4. Achieve organizational goals.
Scope 1. Manpower planning
2. Recruitment & selection
3. Employee training & development
4. Compensation & benefits
5. Employee relations
Functions 1. Managerial Functions: Planning, Organizing, Directing, Controlling.
2. Operative Functions: Recruitment, Training, Compensation, Performance Appraisal,
Employee Welfare.

3. Role & Responsibilities of the HR Manager

 Recruitment & Selection: Hiring skilled employees.
 Training & Development: Enhancing employee skills.
 Compensation & Benefits: Ensuring fair pay & incentives.
 Employee Relations: Managing workplace culture & resolving conflicts.
 Compliance Management: Ensuring legal compliance in HR practices.
 Performance Management: Conducting appraisals & promotions.

4. HR Policies and Procedures

 HR Policies: Guidelines that govern HR functions like recruitment, training, and compensation.
 HR Procedures: The step-by-step process of implementing HR policies.
 Examples: Leave policy, Code of Conduct, Employee Grievance Policy, Promotion Policy.

5. HRM as a Competitive Advantage in the Changing Environment

 HRM helps businesses stay competitive by:
1. Attracting and retaining top talent.
2. Improving employee productivity and engagement.
3. Adapting to technological and economic changes.
4. Creating a strong organizational culture.

6. Meaning, Concept & Scope of Strategic Human Resource Management (SHRM)

Aspect Explanation
Meanin SHRM is the alignment of HR policies with business strategy.
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Concept Focuses on long-term workforce planning for competitive advantage.
Scope Includes;
Talent management, Leadership development, Workforce analytics, and Change management.
Human Resource Development (HRD) focuses on the strategic development of employees' skills and knowledge.
7. HRD Strategies in Organizations, Business Strategy, HRD & Performance
 HRD (Human Resource Development) Strategies:
1. Training & skill enhancement programs.
2. Leadership development initiatives.
3. Employee engagement strategies.
4. Performance-based rewards.
 Business Strategy & HRD:
o HRD supports business strategy by developing employees' competencies.
o HRD ensures employee skills align with business goals.
 HRD & Performance:
o Well-trained employees perform better, leading to higher productivity and business growth.

Module II: Human Resource Requirements.

1. Concept & Objectives of Human Resource Planning (HRP)
 Concept: HRP is the process of ensuring the right number of employees with the right skills are
available at the right time.
 Objectives:
1. Ensure workforce availability.
2. Match workforce supply with demand.
3. Reduce labour shortages and surpluses.
4. Improve employee efficiency and productivity.

2. Need & Importance of HR Planning

Need for HR Planning Importance of HR Planning
1. To handle workforce fluctuations. 1. Ensures optimal workforce utilization.
2. To meet future talent demands. 2. Reduces hiring and training costs.
3. To ensure smooth succession planning. 3. Helps in strategic decision-making.
4. To adapt to market changes. 4. Improves employee retention and satisfaction.

3. Job Analysis
Definition:
 Job Analysis is the process of collecting information about a job's duties, responsibilities, and
required skills.
Process:
1. Data Collection – Gather job-related information.
2. Job Review – Analyze job duties & responsibilities.
3. Job Description – Document job roles & tasks.
4. Job Specification – Define required skills & qualifications.
5. Final Approval – Review & implement findings.
Benefits:
 Helps in recruitment & selection by defining job roles.
 Supports performance appraisal by setting expectations.
 Assists in compensation decisions based on job complexity.

4. Job Design
Aspect Explanation
Definition Structuring job roles to improve efficiency and satisfaction.
Approaches 1. Job Enlargement – Adding more tasks to a job.
2. Job Enrichment – Increasing responsibility & decision-making.
3. Job Rotation – Moving employees across different roles.
Job Description A written document that outlines job duties, responsibilities, and reporting structure.
Job Lists the qualifications, skills, and experience needed for a job.
 Specification

5. Recruitment & Selection Process

Process Explanation
Recruitmen The process of attracting candidates for a job.
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Selection Choosing the most suitable candidate from the applicant pool.
Recruitment Methods:
 Internal: Promotions, Transfers, Employee Referrals.
 External: Job Portals, Advertisements, Campus Recruitment.
Selection Process:
1. Screening Applications – Shortlisting candidates.
2. Written Tests – Assess knowledge & skills.
3. Interviews – Evaluate candidates through direct interaction.
4. Background Check – Verify past records.
5. Final Selection – Offer letter is issued.

6. Methods of Selection
Method Description
Interview Direct interaction to assess personality, skills & knowledge.
Tests Aptitude, technical, and psychometric tests to evaluate abilities.
Induction & Placement Introduction to company policies & assigning job roles.
Promotion & Transfer Promotion: Upgrading an employee’s position.
Transfer: Moving employees to different roles/departments.

Module III: Learning and Development of Human Resources

1. Learning and Development (L&D)
 Learning: Process by which employees gain new knowledge or skills.
 Development: Long-term growth through planned learning and experiences.
 Purpose: Improve employee performance, productivity, and adaptability.

2. Training vs Development
Training Development
For current job For future growth
Focus on skills Focus on overall personality
Short-term process Long-term process
Job-specific Career-focused
Example: Learning Excel Example: Leadership workshops
Training vs Education
Training Education
Practical – learning by Theoretical – learning concepts
doing
Job-focused Life-focused or subject-focused
Short-term Long-term (schools, colleges)
Example: Machine operation Example: Studying science or commerce
3. Training Need Assessment (TNA)
 A process to find out who needs training, what kind of training is required, and why.
 Done at three levels:
1. Organizational Level – Align training with business goals.
2. Task Level – Identify skills required for specific jobs.
3. Individual Level – Assess employee performance gaps.

4. Training in a Changing Technological Environment

  With new tech, employees must upgrade skills regularly.
 Companies provide e-learning, virtual training, and tech simulations.
 Promotes innovation, productivity, and employee retention.

5. Career Planning and Development

 Career Planning: Employee's personal strategy to achieve career goals.
 Career Development: Support given by the company for career growth.

Career Planning Process

Step Description
1. Self-assessment Employee evaluates strengths & goals.
2. Career exploration Research possible career paths.
3. Goal setting Set short-term and long-term career goals.
4. Action planning Plan steps like learning, certification, mentorship.
5. Review and feedback Track progress and make improvements.
Career Development Strategies of Companies
 Providing mentorship programs, internal mobility, skill enhancement, career counselling, and
learning opportunities.

6. Succession Planning
 Preparing employees to fill key leadership roles in the future.
 Ensures business continuity when senior roles become vacant.
 Involves identifying potential leaders and training them in advance.

7. Talent Management
 Attracting, developing, and retaining talented employees.
 Focus on right people in right roles at the right time.
 Includes recruitment, performance management, training, and career development.

8. Employee Engagement
 The emotional and professional commitment of employees toward their work.
 High engagement = better performance, lower turnover.
 Methods: Recognition, good communication, career growth opportunities, work-life balance.

9. Knowledge Management is the process of (multidisciplinary approach to achieve organizational objectives)

 Capturing, creating, storing, sharing, and using and managing organizational knowledge and info.
 Types:
1. Explicit Knowledge – Documents, manuals, reports.
2. Tacit Knowledge – Personal experience, skills, intuition.
 Helps in innovation, training, and continuous improvement.

Module IV: Appraising and Managing Performance

1. Personnel Management and Potential Management

Term Meaning
Personnel Traditional approach focused on hiring, training, and employee welfare.
Management
Potential Identifying and nurturing employees with high potential for future leadership or
Management key roles.
Key Difference:
 Personnel management is about managing current employees.
 Potential management is about future capabilities and leadership grooming.
2. Performance Appraisal
Meaning: A formal system to evaluate employee performance over a specific period.
Objectives:
1. Assess employee strengths and weaknesses.
2. Provide feedback for improvement.
3. Decide on promotions, bonuses, or training needs.
4. Align individual performance with organizational goals.

3. Methods of Performance Appraisal

Method Description
Traditional Methods
1. Graphic Rating Scale Rate employees on traits like punctuality,
teamwork, etc.
2. Ranking Method Employees ranked from best to worst.
3. Critical Incident Method Record significant good/bad incidents of
performance.
4. Essay Method Supervisor writes a descriptive evaluation.
Modern Methods
1. 360-Degree Feedback Feedback from peers, subordinates, superiors,
and self.
2. Management by Objectives (MBO) Set specific goals, review performance based
on results.
3. Behaviourally Anchored Rating Scale (BARS) Combines behavior examples with rating scale.
4. Pay Linked with Performance (Performance-Based Pay)
 Salary, bonuses, or incentives are linked directly to how well an employee performs.
 Encourages high productivity and goal achievement.
 Examples: Commission for salespeople, bonuses for high-performing employees.

5. Benchmarking in Performance Appraisal – Current Trends

Trend Explanation
Continuous Feedback Regular (monthly/quarterly) feedback instead of yearly reviews.
Use of Technology Use of software/tools for tracking and evaluating performance.
Peer Appraisal Co-workers give feedback as part of the process.
Goal Alignment Linking individual targets with company objectives.
Real-Time Recognition Instant rewards or appreciation based on performance.

6. Managerial Competencies
 Competencies are the skills, knowledge, and behavior required to perform a managerial role
effectively.
Type of Competency Examples
Leadership Skills Motivating team, taking decisions, setting vision.
Communication Clear verbal/written communication, active listening.
Skills
Analytical Skills Problem-solving, decision-making based on data.
Team Management Delegation, conflict resolution, collaboration.
Adaptability Handling change, learning new technologies.

Module V: Compensation Management and Incentives

 1. Objectives of Compensation
 Attract and retain talented employees
 Motivate employees to perform better
 Ensure fairness and equity
 Comply with labor laws
 Reward performance and contribution
Principle of Explanation
Compensation
Equity Equal pay for equal work (fairness).
Performance-based Better performance = higher pay.
Cost-effectiveness Compensation should be affordable for the organization.
Compliance Must follow government rules and wage acts.
Transparency Employees should understand how their pay is decided.
2. Components of Compensation
Component Description
Basic Pay Fixed salary paid regularly.
Allowances Extra payments (e.g., HRA, DA, transport).
Incentives Linked to performance (bonus, commission).
Benefits Non-cash perks (health insurance, PF, gratuity).
Perquisites (Perks) Special privileges (car, club membership, etc.).
3. Designing and Administration of Wage and Salary Structure
Step Explanation
1. Job Evaluation Analyse job roles to determine value.
2. Market Survey Compare salaries with industry standards.
3. Pay Grades Group similar jobs into pay ranges.
4. Salary Bands Fix minimum and maximum pay limits.
5. Review & Regularly revise the structure based on inflation, performance, etc.
Update
4. International Compensation
 Refers to compensation packages for employees working abroad (expatriates).
 Needs to consider:
o Cost of living in the foreign country
o Taxes and laws
o Currency differences
o Housing, travel, and education for family
o Hardship allowance for difficult locations
Common Approaches:
Approach Description
Balance Sheet Approach Maintain the same standard of living as home country.
Negotiation Approach Compensation based on individual discussion.
Localization Pay based on host country’s local salary structure.
5. Incentives (Definition)
 Extra rewards to boost performance and productivity.
 Can be financial or non-financial, and individual or group-based.
Category Examples
Financial Bonuses, profit sharing, commission, overtime pay.
Types of
Non-Financial Recognition, awards, flexible work hours, promotions.
Incentives
Individual Targets-based bonuses, sales commission.
Incentives
Group Incentives Team bonuses, gain-sharing plans, shared rewards.

Module VI: Employee Relations

1. Concept and Objectives of Industrial Relations (IR)
Concept:
Industrial Relations refers to the relationship between employers and employees (and their representatives
like trade unions), focusing on cooperation, conflict resolution, and maintaining harmony at the workplace.
Objectives of IR:
 Promote healthy employer-employee relations
 Reduce conflicts and disputes
 Ensure industrial peace and productivity
 Protect rights of both workers and employers
 Promote employee participation and mutual understanding
Role of Management in IR:
 Maintain open communication with employees
 Ensure fair HR policies and grievance redressal
 Comply with labour laws
 Negotiate with trade unions professionally
 Create a positive work culture and prevent disputes

2. Trade Unions – Meaning, Need, and Functions

Aspect Explanation
Meaning A trade union is an organized group of workers formed to protect their rights and interests.
Need To fight for fair wages, safe working conditions, job security, and benefits.
Functions - Negotiate with management (collective bargaining)
- Protect employee rights
- Organize strikes/protests if necessary
- Support employee welfare (education, loans, etc.) |

3. Workers’ Participation in Management (WPM)

Meaning:
Involves employees in decision-making processes related to their work, policies, and overall management.
Benefits:
 Builds trust between workers and management
 Increases job satisfaction and motivation
 Reduces industrial disputes
 Improves productivity and innovation

Forms of WPM:
 Works Committees
 Joint Management Councils
 Quality Circles
 Suggestion Schemes
 Representation on Board

4. Laws Related to Industrial Relations

Law/Act Purpose
Industrial Disputes Act, 1947 Provides methods for resolution of industrial disputes
(conciliation, arbitration, adjudication).
Trade Unions Act, 1926 Legal recognition and registration of trade unions.
Factories Act, 1948 Ensures health, safety, and welfare of factory workers.
Industrial Employment (Standing Defines terms and conditions of employment.
Orders) Act, 1946

5. Labour Welfare and Social Security, Employee Health and Safety

Labour Welfare:
Efforts to improve working and living conditions of workers (housing, canteens, recreation, etc.)
Social Security:
Government or employer-provided programs for workers’ protection against risks (e.g., old age, sickness,
disability, unemployment).
Employee Health and Safety Measures:
 Proper ventilation, lighting, and sanitation
 Use of safety equipment (PPE)
 Regular medical check-ups
 Training on accident prevention
 Emergency procedures in place

6. Emerging Trends in Industrial Relations (IR)

Trend Explanation
Shift towards technology-based workplaces Digital tools affecting job roles and worker relations.
Focus on employee well-being Mental health, work-life balance gaining importance.
Decline in traditional unions Due to gig economy and flexible workforce.
Rise of HR analytics in IR Using data to manage and predict labour issues.
Flexible work practices Hybrid work models creating new dynamics in IR.

Module VII: Emerging Trends in HR in the New Millennium

1. Corporate Social Responsibility (CSR) and Green HR
CSR (Corporate Social Responsibility):
 CSR is a company’s responsibility towards society, environment, and stakeholders.
 HR's role in CSR includes:
o Promoting ethical behavior and social responsibility
o Encouraging employee volunteering
o Supporting sustainability programs
Green HR:
Concept HR practices focused on environmental sustainability.
Examples - Paperless HR (digital files)
- Green training and awareness
- Encouraging carpooling, remote work, energy saving |
| Benefits | Cost saving, better brand image, eco-friendly culture |

2. Human Resource Information System (HRIS)

Term Explanation
HRIS A software system that helps manage HR processes electronically.
Functions of HRIS:
 Employee data management
 Payroll processing
 Leave and attendance tracking
 Performance appraisal
 Recruitment & onboarding
Benefits:
 Increases efficiency and accuracy
 Saves time and cost
 Reduces paperwork
 Helps in decision-making through analytics

3. HR Audit, IHRM, and Emerging Issues

HR Audit: A systematic examination of HR policies, practices, and procedures.
 Ensures compliance with laws and identifies improvement areas.
Steps in HR Audit Purpose
Reviewing Check if they are up to date and legal
policies
 Interviewing staff Understand issues in implementation
Giving report Suggest improvements

IHRM (International Human Resource Management):

 Deals with managing human resources in multinational companies.
 Involves:
o Managing expatriates
o Understanding global labour laws
o Cross-cultural training
o Designing international compensation
Emerging Issues in IHRM:
 Managing diversity
 Global talent shortage
 Virtual teams
 Political instability in foreign countries

4. Work-Life Integration
Concept:
 Work-life integration is the blending of personal and professional life, unlike work-life balance
which separates the two.
Key Aspects Examples
Flexible work hours Work-from-home, hybrid models
Technology use Access to work tools from anywhere
Organizational support Counseling, wellness programs, paid time off
Benefits:
 Higher employee satisfaction
 Reduced stress and burnout
 Improved productivity and loyalty