HR Compendium
Department of Management Studies
INDIAN INSTITUTE OF TECHNOLOGY DELHI
(Institute of Eminence, Govt. of India)
HR COMPENDIUM
Contents
1. Organizational Behavior ..................................................................................... 3
1.1 What is Organizational Behavior?......................................................................... 3
1.2 Levels of Organizational Behavior:....................................................................... 3
2. Organizational Behavior and Human Resource Management ....................... 4
3. Human Resource Management .......................................................................... 4
3.1 What is Human Resource Management? .............................................................. 4
3.2 7 Pillars of Human Resource Management ........................................................... 4
4. Human Resource Development .......................................................................... 6
4.1 Purpose of Human Resource Development ........................................................... 6
4.2 Types of Human Resource Development .............................................................. 6
4.3 Advantages of an HRD system.............................................................................. 7
5. Personality ............................................................................................................ 7
5.1 Myers-Briggs Type Indicator (MBTI) Personality Framework ............................ 7
5.2 The OCEAN Personalities ..................................................................................... 8
6. Motivational Theory Frameworks ................................................................... 10
6.1 Maslow’s Hierarchy of Needs ............................................................................. 10
6.2 McClelland's Human Motivation Theory ............................................................... 11
6.3 Herzberg's Two Factor Theory ............................................................................ 12
7. Changes in the role of HR post-COVID .......................................................... 12
8. Changing Trends in HR .................................................................................... 13
DEPARTMENT OF MANAGEMENT STUDIES 2
HR COMPENDIUM
1. Organizational Behavior
1.1 What is Organizational Behavior?
“Organizational behavior is directly concerned with the understanding, prediction, and
control of human behavior in organizations.” — Fred Luthans.
It is the systematic investigation and application of information about how individuals
and groups behave in the workplace. OB is a unique field that pulls from a variety of
disciplines.
That is, it considers the complete individual, the whole group, the whole organization,
and the whole social system when interpreting people-organization relationships.
Its goal is to improve human, organizational, and social interactions by accomplishing
human, organizational, and societal goals.
1.2 Levels of Organizational Behavior:
There are three levels in organizational behavior are:
• Individual level: Each individual person within an organization is included at the
individual level. Each person behaves in a unique way, which has an impact on
group dynamics and the organization as a whole. Although it is hard for a firm to
examine every single employee's behavior, it is critical for a company to establish
norms and expectations that will attract individuals who exhibit good behaviors.
• Group level: Any groups within an organization are included at the group level.
The size of a group might range from a number of persons working together to
dozens or hundreds of people. Individuals can influence a group, and a group can
influence an organization, as we just stated. Individuals can be affected by a
group, and organizations can be affected by a group.
Fig 1. Levels of Organizational Behavior
DEPARTMENT OF MANAGEMENT STUDIES 3
HR COMPENDIUM
2. Organizational Behavior and Human Resource
Management
Individuals and groups inside organizations are studied in the field of organizational
behavior and human resource management. They look into how to improve an
organization's human capital's effectiveness in order to get a competitive edge and
achieve organizational goals. Personality/dispositions, emotion and affect, motivation,
social concept and identity, decision making and cognition, justice and trust,
organization and work attachment, leadership, groups and teams, and organizational
culture and climate are all topics covered by the OB field, whereas HR covers job
analysis, recruitment, selection, training and development, performance appraisal,
compensation, quality of work life, workforce diversity, and strategic human resource
management.
3. Human Resource Management
3.1 What is Human Resource Management?
Human Resource Management, or HRM, is the practice of managing people to achieve
better performance. It is the process of hiring people, teaching them, rewarding them,
creating policies for them, and devising retention methods. HRM has evolved
significantly during the previous two decades, allowing it to play an even more critical
role in today's enterprises. HRM used to involve processing payroll, sending birthday
gifts to staff, coordinating business outings, and double-checking forms—in other
words, more of an administrative duty than a strategic position critical to the
organization's success.
3.2 7 Pillars of Human Resource Management
HRM involves seven primary responsibilities in any enterprises, according to most
experts. They are:
• Recruitment & Selection: The most visible aspects of HR are probably
recruitment and selection. A significant HR role is to recruit applicants and select
the best ones to come work for the organisation. People are the organization's
lifeblood, and finding the perfect fit is a critical effort. HR can utilise a variety of
selection tools in this process to locate the best individual for the job. Interviews,
various tests, reference checks, and other recruitment processes are among them.
• Performance Management: Performance management becomes critical after
staff are on board. The second HR fundamental is performance management. It
DEPARTMENT OF MANAGEMENT STUDIES 4
HR COMPENDIUM
entails assisting employees in being their best selves at work, hence improving
the company's bottom line. Employees often have a specific set of responsibilities
that they must fulfil. Performance management is a framework that allows
employees to receive feedback on their work in order to improve their
performance. Successful performance management is a joint effort between HR
and management, with the direct manager taking the lead and HR providing
assistance. It's critical to have a good performance management system in place.
Fig 2. Pillars of Human Resource Management
• Learning & Development: People are a combination of their life experiences,
the country and age in which they grew up, and a variety of cultural influences.
Learning and development in HR ensures that personnel are able to adapt to
changes in processes, technology, and societal or legal changes. Employees can
reskill and upskill with the support of learning and development. HR is in
charge of learning and development (L&D), and strong policies can assist the
firm achieve its long-term objectives.
• Succession Planning: The practice of arranging contingencies in the event that
key personnel leave the organization is known as succession planning. If, for
example, a key senior manager leaves, having a replacement on hand ensures
continuity and can save the organization a lot of money. Performance ratings
and L&D initiatives are frequently used in succession planning. As a result, a
talent pipeline is established. This is a pool of qualified people who are ready to
fill (senior) positions if someone leaves. Good people management requires the
creation and nurturing of this pipeline.
DEPARTMENT OF MANAGEMENT STUDIES 5
HR COMPENDIUM
• Human Resource Information System: The final two HR fundamentals are
not HR practices, but rather tools for doing HR better. The Human Resource
Information System, or HRIS, is the first. All of the pillars we outlined earlier
are supported by an HRIS. For example, HR professionals frequently utilise an
Applicant Tracking System, or ATS, to keep track of applications and
employees during the recruitment and selection process. A performance
management system is used to keep track of individual goals and assign
performance ratings for performance management. A Learning Management
System (LMS) is utilized in L&D for internal material distribution, and other
HR tools are used to handle budgets and training approvals.
To learn more: https://youtu.be/aPEUKLxxh_k
4. Human Resource Development
Human Resources Development (HRD) is the broad field of training and development
offered by businesses to improve their employees' knowledge, skills, education, and
talents. The human resources development process in many firms begins with the
employment of a new employee and continues throughout that employee's time with the
company.
Many personnel enter a company with just rudimentary skills and experience and
require training to do their positions effectively. Others may already possess the
requisite abilities for the job, but lack knowledge of the organization in question. HR
development is intended to provide employees with the information they require to
adapt to the culture of the firm and perform their jobs effectively.
4.1 Purpose of Human Resource Development
The purpose of human resource development is to help organizations achieve their
objectives. The expense and effort spent on staff development and training are only
worthwhile if it directly aids the employees in improving their performance, which in
turn improves the organization's performance.
As a result, HR development has only one goal: to improve employees. HR
development's goal is to give employees the 'coaching' they need to improve and expand
their existing knowledge, skills, and talents. The purpose of development and training is
to improve employees' performance.
4.2 Types of Human Resource Development
There are varied types of human resource development techniques such as:
DEPARTMENT OF MANAGEMENT STUDIES 6
HR COMPENDIUM
• On-the-job training: refers to learning the aspects of a job while one is doing the
job. An employee may know the basics of what the job requires, but specifics like
which forms to use, where materials are stored, and how to access the computer
systems may require on-the-job training.
• Job shadowing is similar in that the employee watches another employee do the
job in order to develop the proper skills.
• Intellectual or Professional Development, which includes college or
certification courses or job-specific trainings and seminars related to how to do
one's job better.
4.3 Advantages of an HRD System
Appropriate HRD provides unlimited benefits to the concerned organization. Some of
the important benefits are being given here:
• HRD (Human Resource Development) makes people more competent. HRD
develops new skill, knowledge, and attitude of the people in the concern
organizations. An environment of trust and respect can be created with the help of
human resource development.
• It enhances the employees' overall development. HRD also increases the
organization's team spirit. They become more outgoing in their actions. As a
result, new values can be created.
• It also aids in the establishment of an efficiency culture within the firm. It
improves the efficiency of the organization. Resources are better utilized, and
objectives are met more effectively.
• It increases the employee's involvement in the organization. This enhances the
worker's role, and employees feel a sense of satisfaction and accomplishment
when executing their duties.
• It also aids in the gathering of meaningful and objective data on employee
programs and policies, allowing for better human resource planning.
5. Personality
5.1 Myers-Briggs Type Indicator (MBTI) Personality Framework
The Myers-Briggs Personality Type Indicator is a self-assessment tool that helps
people figure out their personality type, strengths, and preferences. Isabel Myers and
her mother Katherine Briggs created the test based on their research into Carl Jung's
personality types hypothesis. The MBTI personality test is now one of the most
DEPARTMENT OF MANAGEMENT STUDIES 7
HR COMPENDIUM
extensively utilised psychological tests in the world.
Jung's notion of psychological types enthralled Myers and Briggs, and they saw how it
could be applied in the actual world. They began investigating and constructing an
indicator that could be used to better identify individual differences during World War
II, and they created a test.
People are classified into one of 16 personality types based on their responses to the
inventory's questions. The MBTI's purpose is to help people better understand and
explore their own personalities, including their likes, dislikes, strengths, weaknesses,
potential job choices, and compatibility with others. The questionnaire itself is made up
of four different scales:
• Extraversion and Introversion: The first pair of styles are concerned with the
direction of your energy. If you prefer to direct your energy to deal with people,
things, situations, or "the outer world," then your preference is for Extraversion.
If you prefer to direct your energy to deal with ideas, information, explanations
or beliefs, or "the inner world," then your preference is for Introversion.
• Sensing and Intuition: The second pair concerns the type of information/things
that you process. If you prefer to deal with facts, what you know, to have clarity,
or to describe what you see, then your preference is for Sensing. If you prefer to
deal with ideas, look into the unknown, generate new possibilities, or to
anticipate what isn't obvious, then your preference is for intuition. The letter N is
used for intuition because it has already been allocated to Introversion.
• Thinking and Feeling: The third pair reflects your style of decision-making. If
you prefer to decide on the basis of objective logic, using an analytic and
detached approach, then your preference is for Thinking. If you prefer to decide
using values - i.e., on the basis of what or who you believe is important - then
your preference is for Feeling.
• Judgment and Perception: The final pair describes the type of lifestyle you
adopt. If you prefer your life to be planned and well-structured, then your
preference is for Judging. This is not to be confused with 'Judgmental', which is
quite different. If you prefer to go with the flow, to maintain flexibility and
respond to things as they arise, then your preference is for perception.
When you put these four letters together, you get a personality type code—having four
pairs to choose from means there are sixteen Myers-Briggs personality types.
To learn more: https://youtu.be/NXcWZnQPUXw
5.2 The OCEAN Personalities
According to several experts, there are five essential personality qualities. The "big
five" personality qualities are broad categories of personality characteristics. While
DEPARTMENT OF MANAGEMENT STUDIES 8
HR COMPENDIUM
there is a substantial amount of data that supports the five-factor model of personality,
researchers aren't always in agreement on the specific names for each dimension.
When trying to remember the big five traits, you might find it beneficial to utilize the
abbreviation OCEAN (openness, conscientiousness, extraversion, agreeableness, and
neuroticism). Another often used abbreviation is CANOE (for conscientiousness,
agreeableness, neuroticism, openness, and extraversion).
It's worth noting that each of the five personality traits comprises a spectrum spanning
two extremes. Extraversion, for example, is a spectrum that ranges from severe
extraversion to extreme introversion. In reality, most people fall somewhere in between
these two extremes.
• Openness: This trait features characteristics such as imagination and insight.
People who are high in this trait also tend to have a broad range of interests.
They are curious about the world and other people and eager to learn new things
and enjoy new experiences.
• Conscientiousness: Standard features of this dimension include high levels of
thoughtfulness, good impulse control, and goal-directed behaviors.1
Highly conscientious people tend to be organized and mindful of details. They
plan ahead, think about how their behaviour affects others, and are mindful of
deadlines.
• Extraversion: Extraversion (or extroversion) is characterized by excitability,
sociability, talkativeness, assertiveness, and high amounts of emotional
expressiveness. People who are high in extraversion are outgoing and tend to
gain energy in social situations. Being around other people helps them feel
energized and excited.
• Agreeableness: This personality dimension includes attributes such as trust,
kindness, affection, and other prosocial behaviours. People who are high in
agreeableness tend to be more cooperative while those low in this trait tend to be
more competitive and sometimes even manipulative.
• Neuroticism: Neuroticism is a trait characterized by sadness, moodiness, and
emotional instability. Individuals who are high in this trait tend to experience
mood swings, anxiety, irritability, and sadness. Those low in this trait tend to be
more stable and emotionally resilient.
To learn more: https://youtu.be/IB1FVbo8TSs
DEPARTMENT OF MANAGEMENT STUDIES 9
HR COMPENDIUM
6. Motivational Theory Frameworks
Following are the most popular theories in the field of management:
6.1 Maslow’s Hierarchy of Needs
Abraham Maslow's hierarchy of needs is one of the best-known theories of motivation.
Maslow's theory states that our actions are motivated by certain physiological needs. It
is often represented by a pyramid of needs, with the most basic needs at the bottom and
more complex needs at the top.
Fig 3. Maslow’s Need hierarchy Pyramid
• Physiological Needs: The physiological needs are fairly apparent and include
the needs that are vital to our survival. Some examples of physiological needs
are food, water, breathing. In addition to the basic requirements of nutrition, air,
and temperature regulation, physiological needs also include such things as
shelter and clothing.
• Safety and Security Needs: As we move up to the second level of Maslow’s
hierarchy, the needs start to become a bit more complex. At this level, the needs
for security and safety become primary. People want control and order in their
lives. So, the need for safety and security contributes largely to behaviours at
this level. Some of the basic security and safety needs include: financial security,
health and wellness, and safety against accidents and injury.
• Love and Belongings Need: The social needs in Maslow’s hierarchy include
such things as love, acceptance, and belonging. At this level, the need for
emotional relationships drives human behaviour. Some of the things that satisfy
this need include friendships, romantic attachments and family.
• Esteem Needs: At the fourth level in Maslow’s hierarchy is the need for
appreciation and respect. Once the needs at the bottom three levels have been
DEPARTMENT OF MANAGEMENT STUDIES 10
HR COMPENDIUM
satisfied, the esteem needs begin to play a more prominent role in motivating
behaviour. People have a need to accomplish things, then have their efforts
recognized. In addition to the need for feelings of accomplishment and prestige,
esteem needs include such things as self-esteem and personal worth.
• Self-Actualization Needs: At the very peak of Maslow’s hierarchy are the self-
actualization needs. Self-actualizing people are self-aware, concerned with
personal growth, less concerned with the opinions of others, and interested in
fulfilling their potential. "What a man can be, he must be," Maslow explained,
referring to the need people have to achieve their full potential as human beings.
6.2 McClelland's Human Motivation Theory
Psychologist David McClelland's acquired-needs theory divides employee needs into
three. Achievement, affinity, and power are the three categories.
• Employees who are highly accomplishment motivated are motivated by a
desire to master new skills. They prefer to work on activities of intermediate
complexity where the results are the result of their effort rather than chance.
They value constructive criticism on their work.
Fig 4. McClelland's Human Motivation Theory
• Affiliation-motivated employees are motivated by the need to form and
maintain social relationships. They want to feel loved and welcomed and
appreciate being a part of a group. They may not be successful managers
because they are overly concerned with how others perceive them.
• Power-motivated employees are motivated by a desire to influence, teach, or
encourage others. They enjoy their jobs and place a strong emphasis on
discipline. They may, however, take a zero-sum approach to group labour, in
which one person must lose or fail for another to win or succeed. However, if
channeled correctly, this can assist individuals in the group feel capable while
also supporting group goals.
DEPARTMENT OF MANAGEMENT STUDIES 11
HR COMPENDIUM
6.3 Herzberg's Two Factor Theory
According to the two-factor theory (also known as Herzberg's motivation-hygiene
theory), job satisfaction and discontent exist on separate continuums, each with its own
set of factors. This contradicts the traditional understanding of job satisfaction, which
holds that job satisfaction and unhappiness are linked.
Fig 5. McClelland's Human Motivation Theory
In their original study, Herzberg and his colleagues looked at fourteen aspects that affect
job satisfaction and classified them as either sanitary or motivational. Job satisfaction is
increased when motivation elements are present, while job discontent is avoided when
cleanliness aspects are present.
Although other theories of motivation have largely superseded it in academia, the two-
factor motivation theory continues to impact popular management philosophy and
research technique in various parts of the world.
7. Changes in the role of HR post-COVID
There isn't a single business function that hasn't been influenced by the pandemic-
induced modifications that businesses have been obliged to adopt in order to stay afloat.
The one function that has witnessed a particularly drastic transformation in purpose and
operations is Human Resources.
Because of the exponential growth of remote work in response to the COVID pandemic,
the overall role of HR and the everyday duties performed by HR professionals have
shifted significantly.
Human resources professionals have had to learn how to be productive and effective in
their own positions while working from home, in addition to guiding their firms and
people through the shift to a more digital and distributed work environment.
Both have prompted HR professionals to learn new skills in order to fulfil jobs for
DEPARTMENT OF MANAGEMENT STUDIES 12
HR COMPENDIUM
which they were not equipped.
For much of 2020 and the early half of 2021, HR was in crisis mode, figuring out how
to allow workers to work from home, attempting to provide additional mental and
physical health care, and focusing more than ever on C-level tactics to keep their
companies running. The job of HR has fundamentally shifted as the dust settles and
businesses adjust to a new normal.
HR has always been important, but in this new world of flexible work and new
opportunities and challenges, there is an opportunity for HR to define and develop new
skills and processes in order to optimize what is expected of them—that is, to ensure
that a corporation's human capital is seriously engaged, inspired, and believing. It's
beneficial to be happy. We need to figure out how to make sure that happens.
To learn more:
• https://www.shrm.org/hr-today/news/hr-magazine/summer2020/pages/how-the-
coronavirus-pandemic-will-change-the-way-we-work.aspx
• https://www.shrm.org/hr-today/news/hr-magazine/fall2021/pages/pandemic-
expands-role-of-hr.aspx
• https://eightfold.ai/blog/pandemic-role-of-human-resources/
8. Changing Trends in HR
• Recruiting using Technology: HR managers can quickly locate and hire top-
notch specialists thanks to advanced screening and sourcing technology.
Unfortunately, not everyone has access to these resources. Having the right
technology at your fingertips makes it easier for recruiters and HR to locate,
source, and choose prospects. They can concentrate on data-driven decisions,
which is widely regarded as the best way to hiring operations.
• HR as a service: The transition from project-focused HR to product-focused HR
is one of the most notable HR trends we're seeing right now. This is a significant
shift in the way HR functions. HR has traditionally operated with a project-based
mentality. A project has a defined timetable, deliverables, and resources, and it is
designed to be conducted efficiently. On the other hand, a product is continuing.
It doesn't have to have a conclusion and attempts to generate value, with (more)
resources allocated as the impact grows. This shift in mentality will not only
improve HR's service delivery quality, but it will also allow HR to better develop
the competencies that will assist businesses improve their bottom line.
• The transition from People Analytics to Data Literacy: In the last five years,
people analytics has had a huge impact on how we manage people. However,
DEPARTMENT OF MANAGEMENT STUDIES 13
HR COMPENDIUM
whereas only a few years ago, firms were primarily looking for people analytics
knowledge, this has now transformed. Businesses are increasingly realizing that
they need to do more to properly integrate people analytics in their (HR)
departments. One of the major impediments is a lack of data literacy among HR
professionals in general. HR business partners, for example, require a better grasp
of data in order to utilize people analytics results effectively in their enterprises.
HR analysts will also be more effective if they can back up their findings with
data.
• Virtual Employee Experience: The trend of remote working has had a domino
effect, causing various other traditional HR activities to fall by the wayside. In-
person talks have traditionally been used for activities such as hiring and
terminating employees, onboarding, and training. HR is faced with the task of
performing all of these tasks virtually. The focus of recent HR trends 2022 in
HRM has been on organizing an employee's virtual experience. Some companies,
for example, have begun holding "virtual fun meetings," in which staff
collaborate and share their innovative ideas.
To learn more:
• https://www.greenhouse.io/blog/focus-on-the-latest-trends-in-human-resources-
management
• https://www.aihr.com/blog/hr-trends/
• https://www.startuphrtoolkit.com/hr-trends/
DEPARTMENT OF MANAGEMENT STUDIES 14
