Human Resource Management
Human Resource Management (HRM) is the process of managing people
in organizations in a structured and thorough manner. This covers the
fields of staffing (hiring people), retention of people, pay and perks setting
and management, performance management, change management and
taking care of exits from the company.
Edwin B. Flippo
Personnel management, or say human resource management, is the
planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and separation of
human resources to the end that individual, organizational and social
objectives are accomplished.

Human resource management is a series of integrated decisions that form the
employment relationship; their quality contributes to the ability of the
organizations and the employees to achieve their objectives.
George T. Milkovich and John W. Boudreau
Nature of HRM
HRM is a process of bringing people and organisations together so that the
goals of each are met.
In short it may be defined as the art of procuring , developing and
maintaining competent workforce to achieve the goals of an organisation in
an effective and efficient manner.

•Pervasive force (ubiquitous or universal present everywhere)
•Action oriented
•Individually oriented
•People oriented
•Future oriented
•Develop oriented
•Integrating mechanism
•Comprehensive mechanism
•Auxiliary service
•Inter disciplinary function
•Continuous function

Scope of HRM
The scope of HRM is very wide. The Indian Institute of Personnel
Management has specified the scope of HRM in to three types.
•Personnel aspect
•Welfare aspect
•Industrial relation aspect
Personnel aspect: This is concerned with
•Man power planning
•Recruitment
•Selection
•Placement , transfer , promotion , training and development , layoff ,and
retrenchment , incentives , productivity.

Welfare(wellbeing , happy) aspect: It deals with working conditions and
amenities (facilities) such as
Canteens , creches , rest and lunch rooms , housing , transport , medical
assistance , educational , health and safety , recreation facilities.
Industrial relations aspect: This covers union management relations , joint
consultation , collective bargaining , grievance and disciplinary procedures ,
settlement of disputes.
Objectives of HRM:
To help the organisation reach its goals
To employ the skills and abilities of the workforce efficiently
To provide the organisation with well trained and well motivated employees
To increase to the fullest the employees job satisfaction and self
actualization

•To develop and maintain a quality of work life
•To communicate HR policies to all employees
•To be ethically and socially responsive to the needs of society
Importance of HRM
Human resource management helps an organisation and its people to
realize their respective goals
•At enterprise level
•At the individual level
•At the society level
•At the national level

At enterprise level
•Good human resources practices can help in attracting and retaining the
best people in the organsiation .
•Planning alerts the company to the types of people it will need in the
short medium and long run.
•It helps in training people for challenging role , developing right attitude
towards the job and the company promoting team spirit among
employees and developing loyalty and commitment through appropriate
rewards schemes.

At the individual level
•It promotes team work and team spirit among employees.
•It offers excellent growth opportunities to people who have the potential to
rise.
•It allows people to work with diligence (carefulness) and commitment.
At society level
•Employment opportunities
•Scarce talents are put to best use
At the national level
•Effective use of human resources helps in exploitation of natural , physical
and financial resources in a better way
•People with right skills proper attitudes and appropriate values help the
nation to get ahead and compete with the best in the world leading to better

Importance of HRM
GOOD HR PRACTICES
HELP
•Attract and retain talent
•Train people for challenging roles
•Develop skills and competencies
•Promote team spirit
•Develop loyalty and commitment
•Increase productivity and profits
•Improve job satisfaction
•Enhance standard of living
•Generate employment opportunities

Basic Functions of HR manager
•Man power planning
•Recruitment
•Selection
•Training and Development
•Wage and Salary
•Promotion
•Transfer
•Separation
•Performance appraisal
•Grievance (compliant) handling
•Welfare administration
•Job evaluation
•Merit rating

Growth in India
Early phase: Though it is said that P/HRM a discipline is of recent growth
it has had its origin dating back to 1800 BC.
•The minimum wage rate plans were included in the Babylonian code of
Hammurabi around 1800 BC
•The chinese , as early as 1650 BC had originated the principle of division
of labour and they understood labour turnover even in 400 BC
•The span of management and related concepts of organisation were well
understood by Moses around 1250 BC
•Kautilya in India in his book Arthasastra made reference to various
concepts like
Job analysis ,Selection procedures ,Executive development,Incentive
system,Performance appraisal

Legal phase
•The early roots of HRM in India could be traced back to the period after
1920.
•The royal commission on labour in 1931 suggested the appointment of
labour officer to protect workers interests and act as a spokesperson of
labour
•After independence , the factories act 1948 made it obligatory for factories
employing 500 or more workers.
•IIPM KOLKATTA and the NILM MUMABAI have come to existence in 1950’s

Legal phase
The early roots of HRM in India could be traced back to the period after
1920.
 The royal commission on labour in 1931 suggested the appointment of
labour officer to protect workers interests and act as a spokesperson of
labour
 After independence , the factories act 1948 made it obligatory for
factories employing 500 or more workers
Welfare phase
During the 1960 the scope of personnel function has expanded a bit ,
covering labour welfare participative management , industrial harmony.
Development phase
In 1960s and 70s the HR professionals focused more on development
aspects of human resources .

Traditional HR Practices Emerging HR Practice
Administrative role Strategic role
Reactive Proactive
Separate , isolated from company
mission
Key part of organisation mission
Production focus Service focus
Functional organisation Process based organisation
Individuals encourage , singled out
for
Cross functional teams , teamwork
most important
People as expenses People as key investments/assets
Shifts in HR Management in India

Personnel function changing scenario
Period Emphasis Status Roles
1920-30 Welfare
management
Clerical •Welfare
administrator
•policeman
1940-1960 Expanding the role to
cover labour, welfare
, industrial relations
and personnel
administration
Administrative •Appraiser
•Advisor
•Mediator
•Legal advisor
•Fire fighting
1970-1980 Efficiency ,
effectiveness
dimension added on
emphasis on human
values , dignity
Development •Change agent
•Integrator
•Trainer
•Educator
1990s-onwards Incremental
productivity gains
through human
assets
Proactive , growth
oriented
•Developer
•Counselor
•Coach
•Mentor
•Problem solver

Difference between Personnel Management and HRM
Personnel Management HRM
Personnel management is a traditional
approach of managing people in the
organization.
Human resource management is a
modern approach of managing people
and their strengths in the organization.
Personnel management focuses on
personnel administration, employee
welfare and labor relation.
Human resource management focuses
on acquisition, development,
motivation and maintenance of human
resources in the organization.
Personnel management assumes
people as a input for achieving desired
output.
Human resource management
assumes people as an important and
valuable resource for achieving desired
output.
Under personnel management,
personnel function is undertaken for
employee's satisfaction
Under human resource management,
administrative function is undertaken
for goal achievement.
Under personnel management, job
design is done on the basis of division
of labor.
Under human resource management,
job design function is done on the
basis of group work/team work.

Personnel Management HRM
Under personnel management,
employees are provided with less
training and development opportunities.
. Under human resource management,
employees are provided with more
training and development opportunities.
In personnel management, decisions are
made by the top management as per the
rules and regulation of the organization.
In human resource management,
decisions are made collectively after
considering employee's participation,
authority, decentralization, competitive
environment etc.
Personnel management focuses on
increased production and satisfied
employees.
Human resource management focuses
on effectiveness, culture, productivity
and employee's participation.
Personnel management is concerned
with personnel manager.
Human resource management is
concerned with all level of managers
from top to bottom.
Personnel management is a routine
function
Human resource management is a
strategic function

Job analysis
Job analysis is a formal and detailed examination of jobs. It is a systematic
investigation of the tasks, duties and responsibilities necessary to do a
job.
•A task is an identifiable work activity carried out for a specific purpose
For example : typing a letter
•A duty is a larger work segment consisting of several tasks.
For example : pick up ,sort out and deliver incoming mail.
Job responsibility are obligation to perform certain tasks and duties.
Job analysis
Job tasks
Job duties
Job responsibilities

Sources of job analysis
Information about job analysis may be obtained from three principal
sources
From the employees who actually perform a job
From other employees such as Supervisor , and foremen
From outside observers specially appointed to watch employees
performing a job.

Techniques or methods for collecting data for job analysis
Interviews, Direct observation ,Maintenance of long records,
Questionnaires, Critical incident technique
Interviews: The interviewer collects accurate and complete data and
information by creating favorable attitude among employees and
supervisors
1. The interviewer should introduce himself to the workers
2. He has to show a sincere interest in the worker and the job
3. He should not tell the employee how to do the job
4. He should not confuse the work with the worker
5. He has to do a complete job study

DIRECT OBSERVATION :Direct observation is particularly useful in the jobs
that consists primarily of observable physical activity.
The observer observes the worker on the job during a complete work cycle
Maintenance of long records : workmen maintains daily records of
activities they do on that day
Questionnaires: many companies use job analysis questionnaires to secure
job information relating to typical duties , tasks ,tools , equipment.
Critical incident method : this method is especially useful for scientific
analysis and selection research

Job description: JD is a written statement of what the job holder does ,
how it is done , under what conditions it is done and why it is done.
The main purpose of writing a JD is to differentiate the job from other
jobs and state its outer limits
Contents of JD
•Job title
•Organisation location of the job
•To whom one has to report
•Materials , tools , machinery and equipment worked with
•Designation of the immediate superiors and subordinates
•Salary levels
•Working conditions

Job specification
JS summarizes the human characteristics needed for satisfactory job
completion
It tries to describe the key qualifications someone needs to perform the
job successfully
It spells out the important attribute of a person in terms education ,
experiences , skills ,knowledge and abilities
Essential attributes: SKA’S a person must possess
Desirable attributes : qualification a person ought to possess
Contra indicators: attributes that will become a handicapped to successful
job performance

Both job enrichment and job enlargement are motivational techniques,
important forms of jobs redesign and help to enhance productivity and job
satisfaction. Despite these similarities, they differ from each other in the
following few ways.
Job Enlargement:
1. Job enlargement involves a horizontal loading or expansion of job in
other words, it involves addition of tasks of the same nature.
2.The purpose of job enlargement is to reduce the monotony in performing
certain repetitive jobs by lengthening the cycle of operations.
3. Job enlargement may not necessarily call for the acquisition of higher
level or new skills on the part of the job holders.
4. In job enlargement the job holder may need more external direction and
control in view of enlargement of the scope of his responsibilities.

Job Enrichment:
1. Job enrichment involves vertical loading of functions and
responsibilities of the employee. It is an improvement in the quality of
job in terms of its intrinsic worth.
2. The purpose of job enrichment is to make the job more lively,
challenging and satisfying.
Nature of Job : Job enrichment is a vertical expansion of the job.
Objective : The objective of Job enrichment is to make the job
more lively and challenging.
Positive Results : Job enrichment gives positive results if the
workers are highly skilled.
Direction and Control : Job enrichment encourages self-discipline.
It satisfies Maslow’s high level needs.

Job Enrichment Job Enlargement
1. Job loading Job enrichment involves vertical
loading of functions and
responsibilities of the employee .
Job enlargement involves a
horizontal loading or expansion
of job .
2. Purpose The purpose of job enrichment is to
make the job more lively, challenging
and satisfying.
The purpose of job enlargement
is to reduce the monotony in
performing certain repetitive
jobs .
3. Skills required Job enrichment requires the
development and utilization of higher
skills, initiative and innovation on the
part of the job holders.
Job enlargement may not
necessarily call for the
acquisition of higher level or
new skills on the part of the job
holders.
4. Direction &
Control
In job enrichment the employee uses
his own capabilities of self-direction
and control. He needs less of external
direction and control.
In job enlargement the job
holder may need more external
direction and control in view of
enlargement of the scope of his
responsibilities.

Job rotation involves an employee changing positions within the
same organization and eventually returning to the original position
Job rotation is the best way to keep the employees away from
boredom
Job rotation helps trainees to apply their:
- knowledge
- abilities
- Interests

Types of Job Rotation
Task Rotation Position Rotation
Within function Cross function

Objectives
1. Reducing Monotony of the job
2. Succession Planning
3. Creating right-Employee Job Fit
4. Exposing Workers to All Verticals of the Company
5. Testing Employee Skills and Competencies
6. Developing a Wider Range of Work Experience

Manpower planning may be defined as a rational method of assessing the
requirements of human resources at different levels in the organisation. It
ends with proposals for recruitment , retention , even dismissal where
necessary.
Manpower planning addresses the following issues
•What kind of people and how many are required at every level in the
organisation
•Over what period of time are these people required
•What is the present level of staff in the organisation
•Is there an excess or shortage of staff
•If excess , how does the organisation intend to do away with the surplus
staff
•Incase of excess

Goals of manpower plan
•Obtain and retain the quantity and quality of the manpower it needs
•Make the best use of its manpower resources
•Be able to anticipate the problems arising from surplus or shortage of
manpower

Manpower planning strategies
1. Succession strategy
2. Staff development strategy
3. Recruitment strategy
4. Redundancy strategy

Introduction to Recruitment
•The human resources are the most important assets of an
organisation . The success or failures of an organistion is largely
dependent on the caliber of the people working therein.
•With out positive and creative contribution from people ,
organisation , therefore we need to recruit people with requisites
skills , qualifications and experience.
•While doing so we have to keep the present as well as the future
requirements of the organisation in mind.
Definitions
Recruitment is the process of locating and encouraging potential
applicants to apply for existing or anticipated job openings.

According to Edwin . B . Flippo recruitment as the process of searching for
prospective ( potential , future ) employees and stimulating them to apply
for jobs in the organisations.
Objectives of recruitment
•To attract people with multidimensional skills and experiences that suit the
present and future organisational strategies
•To induct outsiders with a new perspective to lead the company
•To infuse fresh blood at all levels of the organisation
•To develop an organisational culture that attracts competent people to the
company
•To search or head hunt / head pouch people whose skills fit the company's
values
•To devise methodologies for assessing psychological factors
To search for talent globally and not just within the company.

Constraints and challenges
In actual practices it is always not easy to find and select a suitable
candidate for a job opening
Poor image: ex earning bad name ,like environment pollution , poor
quality products, nepotism (bias) .
Unattractive job: ex dull, boring , devoid of career growth opportunities,
don’t reward performance in proper way.
Conservative internal policies: ex a policy of filling vacancies through
internal promotion based on seniority , experience, job knowledge.
Limited budgetary: ex recruiting efforts require money.
Restrictive policies of government: reservation for special groups

Sources of recruitment
Traditional sources Modern sources
internal external externalinternal
•Present permanent
employees
•Present temporary /
Casual employees
•Retrenched /retired
Employees
•Dependents of
Deceased
•Disabled , retired and
present employees
•Campus
•Private employment
agencies
•Public employment
exchange
•Professional association
•Data banks
•Casual applicants
•Similar organisations
•Trade unions
•Employee
referrals
•Walk in
•Consult in
•Head hunting
•Body shopping
•Mergers &
acquisition
•Tele recruitment
•outsourcing
E-recruitment

Recruitment Techniques
Traditional Modern
•Promotions
•Transfers
•Advertising
•Scouting
•Salary &perks
•ESOP’s

Factors Affecting Recruitment
Internal External
Company’s Pay Packages
Quality of work life
Organizational culture
Career planning and growth
Company’s size
Company’s products/services
Geographical spread of the
company’s operation
Company growth rate
Role of trade unions
Cost of recruitment
Company’s name and fame
•Socio economic factors
•Supply and demand factors
•Employment rate
•Labour market conditions
•Political, legal and govt factors
•Information system like employment
exchange/ tele recruitment like
internet

SELECTION
The process of identifying the most suitable persons for the organization is
called Selection.
Selection is also called a Negative function because at this stage the
applications are screened and short listed on the basis of selection criteria.
Purpose
The main purpose of selection is to choose the right person for the right
job.

Scientific selection process
Steps in Scientific Selection Process
Job analysis
Recruitment
Application form
Written examination
Preliminary interview
Business games
Tests
Final interview
Medical examination
Reference checks
Line managers decision
Job offer
Employment

Application form
Application form is also known as application blank. The technique of
application blank is traditional and widely accepted for securing
information from the prospective candidates.
•Personal background information
•Educational attainments
•Work experiences
•Salary
•Personal details
•References

Written examination
The organization have to conduct written examination for the qualified candidates
after they are screened on the basis of the application blanks
Preliminary interview
The preliminary interview is to solicit necessary information from the prospective
applicants and to asses thee applicants suitability to the job.
Business Games
Business games are widely used as a selection technique for selecting
management trainees ,executive trainees and managerial personnel at junior
,middle and top management positions.

Business games utility
1 case study Analytical , judgement and
decision making skill
2. Role play Human relation skills
3.In basket method Situational judgment ,social relation ,decision
making skills, problem solving skills.
4. Sensitivity Degree of openness, concern for the others , tolerance for
individual differences
5. Simulations Encountering skills

Types of Test
1. Aptitude test
a) intelligence test
b) emotional quotient
c) skill tests
d) mechanical aptitude
e) psychomotor tests
f) clerical aptitude tests
2) Achievement test
a) job knowledge test
b) work sample test
3) Situational tests
a) group discussion
b) in basket
4) Interest test
a) objective tests
b) projective test
Other test

Interview
Types of interviews:
•Job and probing interview
•Stress interview
•The group discussion interview
•Formal and structured interview
•Panel interview
•Depth interview
•Decision making interview

•Medical Examination
•Reference Checks
•Final decision by the line manager
•Job offer
•Employment

Placement
when once the candidate reports for the duty, the organization has to
place him initially in that job for which he is selected .Immediately the
candidate will be trained in various related jobs during the period of
probation of training or trail.
The organization generally decides the final placement after the initial
training is over on the basis of the candidate aptitude and performance
during the training/probation period.

Employee Placement Process
•Collect details about the employee
Construct the employee’s profile
Match between sub group profile and individual’s profile
Compare sub group profile to job family profile
Match between job family profiles and sub group profiles
Assign the individuals to the job family
Assign the individual to specific job after counseling and assessment
Problems in Placement
•Employee expectation
•Job expectation
•Change in technology
•Changes in organization structure-Social and psychological factors

How to Make Placement Effective
•Job Rotation
•Team work
•Training and development
•Job enrichment
•Empowerment
•Relocating the employee

Induction
Introducing the new employee who is designated as a probationer to
the job, job location ,surroundings, organization ,organizational
surroundings and various employees is the final step of employment
process.
“ Induction is the process of receiving and welcoming an employee
when he first joins a company and giving him the basic information
he needs to settle down quickly and happily and start work.”

Methods
Lecture ,handbook, film, group seminar are used to impart the
information to new employees about the environment of the job
and the organization in order to make the new employee acquaint
himself with the following
Points covered in induction programme
1) About the company
2) About the department
3) About the superiors, subordinates

Objectives of introduction
•Putting the new employee at ease
•Creating interest in his job and the company
•Providing basic information about working arrangements
•Indicating the standards of performance and behavior expected
of him
•Informing him about training facilities
•Creating the feeling of social security

Case study -I
Candidates B and C are regretting for their negative performance in the past interview. Three
candidates namely A, B and C attended the interview conducted by TCS Company. The
interviewer asked the three candidates the same question “why did you leave your last job”?
candidate A, who had excellent communicative skills replied “ I had problem with
the management and co-workers in the previous organization “ candidate B, who had
excellent academic record replied, “ I Left the job as I was not able to handle pressure from
previous company”. Candidate C, who had poor soft skills replied, “I am genuinely
interested in your company”. Candidate C got appointment letter.
1. Why the first two candidates were eliminated by the interviewer?
2. Why the last candidate alone was selected for the job?
3. What is your answer for the question “why did you leave your last job”?

Career planning
A career pertains to all the jobs that are held during one’s working life.
Edwin B. FLIPPO defined a career as a sequence of separate but related work
activities that provides continuity, order and meaning in a person’s life.
Douglas T. Hall defined a career as an individually perceived sequence of
attitudes and behaviors associated with work related experiences and activities
over the span of the person’s life.

Need for Career Planning
Career planning is necessary due to the following reasons
•To attract competent persons and to retain them in the organization
•To provide suitable promotional opportunities
•To enable the employees to develop and makes them ready to meet future
challenges
•To increase the utilization managerial reserves with in an organization
•To correct employee placement
•To reduce employee dissatisfaction and turnover
•To improve motivational and morale

Process of career planning and development
steps in career planning and development include
•Analysis of individual skills, knowledge, abilities ,aptitudes
•Analysis of career opportunities both with in and outside the organization
•Analysis of career demands in the incumbent in terms of skills, knowledge,
abilities ,aptitude
•Relating specific jobs to different career opportunities
•Establishing realistic goals both short term and long term
•Formulating career strategy covering areas of change and adjustment
•Preparing and implementing action plan including acquiring resources for
achieving goals