Subject Code : UCM20D07J

HUMAN RESOURCE
MANAGEMENT
What is HRM ?

Human Resource Management (HRM) is the

strategic and systematic approach to managing
people in an organization. It focuses on the
effective use of human resources to help the
organization achieve its goals. HRM covers a
wide range of activities, including recruitment,
training, performance management,
compensation, and employee relations.
Define HRM.

Edwin B. Flippo:
"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."

Michael Jucius:

"HRM is that field of management which has to do with planning,

organizing, and controlling various operative functions of procuring,
developing, maintaining and utilizing a labour force, such that the
objectives for which the company is established are attained
economically and effectively."
Objectives of Human Resource Management
1. Effective Utilization of Human Resources:
To make the best possible use of the
knowledge, skills, and abilities of employees,
ensuring that the right people are in the right
jobs.

2. Employee Development:
To provide training, career development, and
learning opportunities so that employees can
grow personally and professionally.
3. Organizational Goal Achievement:
To align HR practices and policies with the
strategic goals of the organization, ensuring that
human capital contributes to organizational
success.
4. Maintaining Good Employee Relations:
To create a positive work environment that fosters
mutual trust, respect, motivation, and cooperation
between employees and management.
5. Employee Satisfaction and Welfare:
To enhance job satisfaction and ensure employee
well-being by offering fair compensation,
benefits, healthy working conditions, and support
services.
6. Workforce Stability:
To reduce employee turnover by ensuring job
security, employee engagement, and a strong
sense of belonging.
7. Compliance with Laws and Regulations:
To ensure that HR policies and practices
comply with employment laws and ethical
standards.
8. Social Objectives:
To contribute to society by providing
employment opportunities, supporting
diversity and inclusion, and participating in
community development.
Scope of Human Resource Management
The scope of HRM covers all activities and
processes related to managing people within an
organization. It can broadly be classified into
the following areas:

1. Human Resource Planning (HRP)

• Forecasting human resource needs.
• Planning recruitment, transfers, promotions,
and redundancies.
2. Recruitment and Selection
• Attracting qualified candidates.
• Selecting the most suitable candidates through
tests and interviews.
3. Training and Development
• Providing induction and orientation.
• Organizing training programs, workshops, and
career development initiatives.
4. Performance Management
• Setting performance standards.
• Conducting performance appraisals and providing
feedback.
5. Compensation and Benefits
• Designing salary structures, incentives,
bonuses, and perks.
• Administering employee benefits like
insurance, retirement plans, etc.
6. Employee Relations
• Maintaining healthy employer-employee
relations.
• Handling grievances, disputes, and ensuring
employee engagement.
7. Motivation and Employee Welfare
• Designing reward systems.
• Ensuring employee safety, health, welfare, and
work-life balance.
8. HR Research and Information System
• Conducting HR audits and research.
• Managing HR databases and HR Information
Systems (HRIS).
9. Compliance with Labor Laws
• Following and updating HR policies in line with
legal requirements.
• Ensuring fair treatment and equal opportunity.
3P’s of HRM
1. People
• Focuses on acquiring, developing, motivating,
and retaining employees.
• Includes recruitment & selection, training &
development, career planning, and employee
engagement.
Meaning: The core focus of HRM is managing
people — the employees of the organization.
Key aspects: Recruitment, selection, training,
motivation, engagement, development, and
retention.
Goal: To ensure the right people are in the right
roles, motivated and satisfied.
2. Process
• Refers to the systems and procedures that help
manage HR functions efficiently.
• Includes HR policies, HR Information Systems
(HRIS), performance appraisal systems, and
workflow processes.
Meaning: The systems, policies, and procedures
used to manage human resources effectively.
Key aspects: HR planning, job analysis,
performance appraisal systems, compensation
management, grievance handling, and
compliance.
Goal: To create efficient and fair processes that
support people and the organization’s goals.
3. Performance
• Concerned with ensuring that individuals and
teams contribute effectively to organizational
goals.
• Includes setting performance standards,
measuring and evaluating performance, providing
feedback, and rewarding achievements.
Meaning: The measurement and management of
employee and organizational performance.
Key aspects: Setting performance standards,
conducting evaluations, giving feedback,
rewarding achievements, and developing skills.
Goal: To improve individual and team performance
to achieve organizational success.
Importance of HRM
1. Right People for the Right Jobs
Through effective recruitment, selection, and
placement, HRM ensures that the
organization hires people whose skills and
qualifications match job requirements.
2. Employee Development
By providing training, mentoring, and career
development opportunities, HRM helps
employees grow personally and
professionally.
3. Increased Productivity
Motivated and well-trained employees are
more productive, which directly benefits the
organization’s performance.
4. Enhances Employee Satisfaction
Fair compensation, good working conditions,
welfare facilities, and recognition lead to
higher employee morale and job satisfaction.
5. Strengthens Employer-Employee Relations
HRM promotes healthy communication,
handles grievances, and builds trust, leading to
better industrial relations.
6. Adaptation to Change
HRM helps the organization and employees adapt to
technological, economic, and market changes through
reskilling and change management initiatives.
7. Better Utilization of Human Resources
HRM ensures employees' talents and skills are
effectively used, avoiding wastage of potential.
8. Legal Compliance
By following labor laws and ethical standards, HRM
protects the organization from legal issues and supports
fair treatment.
9. Competitive Advantage
A skilled, motivated, and engaged workforce is one of
the biggest assets for sustaining long-term competitive
advantage.
 Functions of HRM
The functions of HRM can be broadly classified
into two categories:
• Managerial Functions
• Operative (Operational) Functions
1. Managerial Functions
These are related to planning and managing HR
activities strategically:
a) Planning
Forecasting human resource needs and developing
plans to meet those needs.
b) Organizing
Creating an organizational structure to allocate
tasks and coordinate HR activities.
c) Directing (Leading)
Guiding and motivating employees to achieve
organizational objectives.
d) Controlling
Monitoring HR activities, evaluating results, and
taking corrective action as needed.
2. Operative Functions
These are specific functions directly related to
managing people:
a) Recruitment and Selection
Attracting, screening, and hiring suitable
candidates.
b) Training and Development
Providing skill development, orientation, and
career development programs.
c) Compensation and Benefits
Designing and managing salary structures,
incentives, and employee benefits.
d) Performance Appraisal
Evaluating employee performance to provide
feedback and identify areas for improvement.
e) Employee Welfare and Safety
Ensuring employee well-being through welfare
programs and safe working conditions.
f) Employee Relations
Maintaining harmonious relations between
management and employees; handling
grievances and disputes.
g) Human Resource Planning (HRP)
Ensuring the right number of people with the
right skills are available when needed.
h) Separation
Managing resignations, retirements, dismissals,
and other forms of employee exit.
 Qualities of an Effective HR Manager
1. Good Communication Skills
Ability to convey ideas clearly, listen actively,
and resolve conflicts diplomatically.
2. Empathy and Emotional Intelligence
Understanding employees’ feelings, perspectives,
and needs; building trust and rapport.
3. Ethical and Fair-minded
Practicing integrity, fairness, and transparency in
decisions and policies.
4. Strong Leadership Skills
Guiding, motivating, and inspiring employees to
achieve organizational goals.

5. Problem-Solving Ability
Handling employee grievances, disputes, and
unexpected HR challenges effectively.

6. Decision-Making Skills
Making timely and balanced decisions that
benefit both employees and the organization.
7. Knowledge of Labor Laws and HR
Practices
Understanding employment laws, HR policies,
and industry standards.

8. Adaptability and Flexibility

Responding positively to changes in technology,
workforce diversity, and organizational needs.

9. Organizational and Planning Skills

Managing multiple HR functions efficiently and
planning HR initiatives strategically.
10. Confidentiality
Handling sensitive employee information with
discretion and responsibility.
11. Interpersonal Skills
Building healthy working relationships with
employees at all levels.
Human Resource Planning (HRP)
Human Resource Planning (HRP) is the
process of forecasting and determining an
organization’s future human resource needs so
that the right number of employees with the
right skills are available at the right time.
Definition of HRP
Edwin B. Flippo:
“Human resource planning is the process of
planning for the future manpower requirements of
an enterprise.”
Objectives of HRP:
• Ensure the organization has the right number and
type of employees.
• Minimize talent shortages and surpluses.
• Support strategic business plans and goals.
• Develop a workforce that can adapt to changes.
• Improve employee development and utilization.
 Needs and Usefulness of Human Resource
Planning (HRP)
Needs of HRP
Human Resource Planning is needed because:
1. To Meet Future Manpower Requirements
Organizations must anticipate future needs to
have the right number of skilled people at the
right time.
2. To Cope with Change
Helps manage changes in technology, business
strategy, market demand, and organizational
structure.
3. To Ensure Optimal Use of Human Resources
Prevents problems of overstaffing or
understaffing, leading to better productivity.
4. For Succession Planning
Identifies and develops employees for future
key positions.
5. To Reduce Labor Costs
By planning ahead, organizations can hire,
train, or redeploy staff efficiently, reducing
sudden hiring costs.
6. To Improve Employee Development
Enables better planning of training and
development programs based on forecasted
needs.
7. To Address High Employee Turnover
Helps anticipate replacements for employees who resign, retire, or
are promoted.
8. To Support Strategic Goals
Aligns the workforce with the long-term goals of the organization.

Usefulness / Importance of HRP

Human Resource Planning is useful because it:

1.Provides a clear picture of current and future workforce needs.
2. Helps maintain a balance between demand and supply of
manpower.
3.Facilitates better recruitment, selection, and training decisions.
4.Reduces risks of talent shortages during critical times.
5.Helps manage and plan for expansion, diversification, or
downsizing.
6.Supports cost-effective HR policies by avoiding sudden
recruitment or layoffs.
7.Improves employee morale and stability by ensuring planned
career progression and job security.
 Steps in Human Resource Planning (HRP)
1. Analyzing Organizational Objectives
• Understand the short-term and long-term goals of
the organization.
• Identify how HR needs relate to business plans
(e.g., expansion, new projects, or restructuring).
2. Forecasting Demand for Human Resources
• Estimate the number and types of employees
required in the future.
• Consider factors like technology changes,
production plans, retirements, and market trends.
3. Forecasting Supply of Human Resources
• Analyze current human resources (skills
inventory, age, experience).
• Assess internal supply (existing employees,
promotions, transfers) and external supply
(labor market conditions).
4. Identifying Gaps
• Compare the forecasted demand with the
forecasted supply.
• Identify if there will be a surplus (more
employees than needed) or shortage (fewer
employees than needed).
5. Developing HR Plans and Strategies
• Formulate action plans to address the gaps:
– Recruitment and selection to fill shortages.
– Training and development to upgrade skills.
– Redeployment, retraining, or separation plans to manage
surplus staff.
6. Implementation of HR Plans
• Put the strategies into action through HR programs and
policies.
• Coordinate with different departments for smooth
execution.
7. Monitoring and Evaluation
• Continuously track the effectiveness of HR plans.
• Update and revise plans based on organizational
changes, external factors, and feedback.
 Merits / Advantages of HRP
1. Ensures Right Number of Employees
Helps maintain an appropriate workforce by
forecasting demand and supply.
2. Reduces Recruitment Costs
By planning ahead, organizations can avoid
emergency hiring, which is often costly.
3. Supports Organizational Goals
Aligns human resources with strategic and
operational objectives.
4. Better Employee Development
Helps identify training and development needs,
enabling skill upgradation.
5. Effective Succession Planning
Prepares future leaders by identifying and
developing potential replacements for key
positions.
6. Reduces Labor Imbalances
Prevents problems like overstaffing or
understaffing.
7. Helps Manage Change
Enables the organization to handle technological,
structural, or market changes smoothly.
8. Improves Productivity
Better workforce planning ensures employees are
effectively utilized.
 Demerits / Limitations of HRP
1. Inaccuracy in Forecasting
Future demand and supply estimates may not always be
accurate due to economic, social, or technological changes.
2. Time-consuming and Costly
Preparing detailed HR plans requires significant time, effort,
and resources.
3. Rigidity
Once plans are prepared, organizations may find it difficult to
adapt them quickly to sudden changes.
4. Lack of Reliable Data
If HR data on skills, turnover, or retirements is outdated or
incomplete, planning may be ineffective.
5. Resistance from Employees or Managers
People may resist HR plans if they fear change or
misunderstand the objectives.
 Principles of Effective Human Resource Planning
(HRP)
1.Goal Alignment
HR plans must support and align with the overall
business strategy and objectives.
2.Continuous Process
HRP should not be a one-time activity; it must be
reviewed and updated regularly.
3. Flexibility and Adaptability
Plans should allow quick adjustments in response to
internal and external changes (e.g., market trends,
technology).
4.Participation and Involvement
Involve managers, department heads, and sometimes
employees to get practical insights and improve
acceptance.
5. Accuracy and Reliability
Use up-to-date data and realistic forecasting techniques
to avoid overestimation or underestimation.
6. Focus on Development
HRP should not only focus on numbers but also on skill
development, succession planning, and employee
growth.
7. Cost-effectiveness
HRP should balance costs with benefits; the process
itself shouldn’t become too expensive or complex.
8. Simplicity and Clarity
HR plans should be simple to understand and easy to
communicate across the organization.
 Principles of an Effective Human Resource
Information System (HRIS)
1.Accuracy
The system must maintain correct and updated
employee data.
2.Data Security and Confidentiality
Protect sensitive HR data from unauthorized
access.
3.User-friendliness
Should be easy for HR staff and managers to
navigate and use.
4.Relevance
Collect and store only data that is useful for HR
decisions and reporting.
5. Flexibility
Should allow updates or additions as
organizational needs change.
6. Integration
Should be able to integrate with other
organizational systems (payroll, finance, etc.).
7. Timeliness
Must provide real-time or timely information
to support HR decisions.
8. Scalability
Should handle increased data volume as the
organization grows.
Job Analysis
Job Analysis is the systematic process of
studying and collecting detailed information
about a job’s duties, responsibilities, required
skills, knowledge, and working conditions.
Definition of Job Analysis:
“Job analysis is the process of studying and
collecting information relating to the
operations and responsibilities of a specific
job.”
– Edwin B. Flippo
 Process / Steps in Job Analysis
1.Determine the Purpose of Job Analysis
Clarify why the analysis is needed (e.g., recruitment,
training, performance appraisal).
2. Select the Jobs to be Analyzed
Choose which jobs require analysis (usually new jobs,
complex roles, or those with high turnover).
3. Collect Job Information
• Use different methods to gather data, such as:
• Observation
• Interviews with employees and supervisors
• Questionnaires
• Work diaries
• Reviewing existing job documents
4. Review and Verify the Data
Confirm the accuracy and completeness of
collected data with employees and supervisors.
5. Develop Job Description
Prepare a written statement that describes the
duties, responsibilities, reporting relationships,
and working conditions of the job.
6. Develop Job Specification
Identify and list the qualifications needed to
perform the job (e.g., education, experience,
skills, physical requirements).
Job Description
A Job Description is a written statement that
clearly explains the duties, responsibilities,
working conditions, reporting relationships,
and scope of a specific job in an organization.

Definition of Job Description

“A job description is a written record of the
duties, responsibilities, and conditions of a
particular job.”
– Edwin B. Flippo
 Contents / Format of a Job Description
A job description usually includes:
• Job Title – Name of the position
• Job Location – Where the job is based
• Department / Reporting Line – To whom the position
reports
• Job Summary – Brief overview of the job purpose
• Duties and Responsibilities – Detailed list of main
tasks
• Working Conditions – Physical environment, hazards,
travel requirements
• Tools and Equipment Used – Machines, software, or
equipment used in the job
• Salary Range (optional) – Pay scale or grade
 Job Specification
A Job Specification is a document that lists
the qualifications, skills, knowledge,
experience, and personal attributes required
for someone to perform a specific job
effectively.
Definition of Job Specification
“A job specification is a statement of the
minimum acceptable human qualities
necessary to perform a job properly.”
– Edwin B. Flippo
 Contents / Typical Format of a Job Specification
A job specification usually includes:
• Educational Qualifications – Degrees,
certifications
• Experience – Number of years and type of
relevant experience
• Skills and Knowledge – Technical skills,
software knowledge, languages
• Physical Requirements – Strength, stamina,
eyesight (if applicable)
• Personal Attributes – Communication skills,
teamwork, leadership qualities
• Other Requirements – Willingness to travel,
special licenses, etc.
Factors Affecting Job Design
Job design is about deciding how a job should be structured and
what tasks it should include. The design of a job is influenced by
several factors, which can be grouped into organizational,
environmental, and behavioral factors.

1. Organizational Factors
• These are internal factors related to the company and the nature of
work:
• Nature of the Task:
Complexity, variety, and sequence of tasks required.
• Workflow:
How tasks are connected with other jobs or departments.
• Ergonomics:
Designing jobs to fit the physical abilities and limitations of
workers.
• Use of Technology:
Level of automation and tools available to do the job.
• Organizational Structure and Policies:
Hierarchy, departmentalization, and HR policies.
2. Environmental Factors
External factors that influence how jobs are
designed:
• Labor Market Conditions:
Availability of skilled or unskilled workers.
• Social and Cultural Expectations:
Societal norms about work-life balance, gender
roles, etc.
• Legal Requirements:
Laws and regulations about safety, working hours,
and employee rights.
• Economic Factors:
Budget constraints or the need for cost efficiency.
3. Behavioral / Human Factors
Related to employee needs and motivation:
• Skill Variety:
Designing jobs so employees use different skills to reduce
boredom.
• Autonomy:
Degree of freedom and independence given to employees.
• Task Identity:
Whether employees can see a complete piece of work rather
than just a part.
• Task Significance:
Whether employees feel their work has an important
impact.
• Feedback:
Opportunities for employees to receive direct information
on their performance.
Approaches to Job Design
Job design is the process of organizing work tasks, duties,
and responsibilities into a productive unit of work. Several
approaches are used to design jobs effectively, aiming to
improve employee satisfaction, motivation, and
organizational efficiency. The main approaches include:

1. Mechanistic Approach
• Focuses on task specialization, simplification, and
standardization.
• Inspired by scientific management (Frederick Taylor).
• Jobs are broken into small, simple tasks.
• Advantages: Efficiency, ease of training, low skill
requirements.
• Disadvantages: Boredom, low motivation, and job
dissatisfaction.
• Example: Assembly line work in manufacturing.
2. Motivational Approach
• Emphasizes making jobs meaningful and
enriching to increase motivation.
• Based on the Job Characteristics Model
(Hackman & Oldham): skill variety, task identity,
task significance, autonomy, and feedback.
• Techniques: Job enlargement, job enrichment, and
job rotation.
• Advantages: Higher job satisfaction, motivation,
and commitment.
• Disadvantages: Jobs may become more complex
and demanding.
• Example: Allowing customer service employees
to handle a case from start to finish.
3. Biological Approach (Ergonomic)
• Focuses on designing jobs to fit human
physical abilities and limitations.
• Considers factors like fatigue, posture, health,
and safety.
• Advantages: Reduced injuries, lower
absenteeism, better physical well-being.
• Disadvantages: May increase job design and
equipment costs.
Example: Adjustable chairs and desks to reduce
strain.
4. Perceptual-Motor Approach
• Aims to design jobs to reduce mental overload
and stress.
• Considers human mental capabilities, memory,
and attention.
• Simplifies information processing needs.
• Advantages: Fewer errors, improved safety.
• Disadvantages: May lower job interest due to
reduced complexity.
Example: Clear, simplified user interfaces for
machine operators.
5. Socio-Technical Approach
• Balances technical system needs with social needs
of employees.
• Focuses on work teams, autonomy, and self-
managed groups.
• Encourages multi-skilling and team responsibility.
• Advantages: Better quality of work life,
flexibility, and innovation.
• Disadvantages: Complex to implement, requires
cultural support.
Example: Cross-functional teams in product
development.
Issues in Job Design
• Repetitiveness and Monotony
– Jobs that are highly repetitive can lead to boredom,
low motivation, and decreased productivity.
– Example: Assembly line work where the same task is
repeated every few seconds.
• Work Overload or Underload
– Assigning too much work causes stress and burnout.
– Too little work leads to disengagement and
underutilization of skills.
• Lack of Skill Variety
– Jobs requiring limited skills may fail to challenge
employees, affecting satisfaction and personal
development.
• Low Task Identity
When employees do only a small part of a
larger task, they may not see the significance
of their contribution.
• Limited Autonomy
Excessive supervision and lack of control over
one’s work reduce motivation and creativity.
• Poor Feedback Mechanisms
Without timely and constructive feedback,
employees can’t evaluate or improve their
performance.
• Lack of Social Interaction
Highly isolated jobs reduce opportunities for
teamwork and relationship-building.
• Mismatch Between Person and Job
Designing jobs without considering
employees’ skills, interests, and values leads to
dissatisfaction and higher turnover.
• Safety and Ergonomics Issues
Poorly designed jobs can cause physical strain,
accidents, or long-term health problems.
• Technological Changes
Automation and digitalization may make jobs
obsolete or drastically change job roles,
requiring frequent redesign.
• Cultural and Individual Differences
A job design that suits one cultural context or
individual may not work for another due to
different expectations and preferences.
 Job Enlargement
Definition:
Job enlargement is a job design technique where
the scope of a job is expanded by adding more
tasks or duties at the same level of responsibility.
It’s sometimes called "horizontal loading"
because it broadens the job, rather than making it
more complex.
Purpose of Job Enlargement
• To reduce monotony and boredom by giving
workers more variety.
• To make work more interesting without
necessarily increasing its difficulty.
• To improve employee satisfaction and
motivation.
Job Enrichment
Definition:
Job enrichment is a job design strategy that adds
more responsibility, autonomy, and meaningful
tasks to a job to make it more rewarding and
motivating for employees.
It is often called "vertical loading" because it
involves adding tasks of higher complexity or
decision-making authority, not just more tasks.
Purpose of Job Enrichment
• To make work more meaningful and satisfying.
• To increase employee motivation by fulfilling
higher-level psychological needs (like
achievement, recognition, and personal growth).
• To develop employees’ skills and potential.
Job Evaluation: Meaning
Job evaluation is a systematic process used to
determine the relative worth or value of different
jobs in an organization.
It helps establish a fair and rational basis for
developing the organization’s pay structure.
Objectives of Job Evaluation
• Establish fair wage differentials
→ Ensure that employees are paid equitably
based on the relative worth of their jobs.
• Remove wage inequities
→ Reduce employee dissatisfaction and disputes
about pay.
• Provide a basis for pay structure
→ Create a logical framework for salary
grades and compensation policies.
• Help in wage and salary administration
→ Support decisions related to promotions,
transfers, and new job creation.
• Facilitate job redesign
→ Provide insights into the content and
requirements of jobs, helping with job
simplification, enrichment, or enlargement.
• Meet legal and regulatory requirements
→ Ensure compliance with equal pay and non-
discrimination laws.
• Aid in performance management
→ Clarify job responsibilities, which helps set
clear expectations and performance standards.
 Procedures / Steps in Job Evaluation
The procedure typically involves several stages:
1.Preparation
• Identify objectives and scope of job evaluation.
• Secure top management support and form a job
evaluation committee.
• Select jobs for evaluation (benchmark or key jobs).
2. Job Analysis
• Collect detailed information about each job:
– Duties and responsibilities
– Skills and qualifications required
– Working conditions
– Effort, accountability, etc.
• Use tools like job description and job specification.
3.Selecting a Job Evaluation Method
• Choose an appropriate method:
– Non-quantitative methods:
• Job Ranking
• Job Classification / Grading
– Quantitative methods:
• Point Factor Method
• Factor Comparison Method
4. Evaluating Jobs
• Apply the chosen method to systematically assess
jobs.
• Determine the relative value or points for each
job.
5.Developing the Wage Structure
• Group jobs into pay grades based on
evaluation results.
• Decide pay ranges for each grade.
6.Review and Communication
• Communicate results to managers and
employees.
• Provide an appeal mechanism in case
employees have concerns.
7.Maintenance
• Periodically review and update the evaluation
as jobs or organizational needs change.
 Job evaluation methods can broadly be classified into two
categories:
I. Non-quantitative methods (also called non-analytical
methods)
These rank jobs as a whole without analyzing separate job
factors.
• Ranking Method
– Jobs are compared to each other based on their overall worth.
– Jobs are simply arranged from highest to lowest, or vice versa.
– Simple and quick but subjective; suitable for small
organizations.
• Job Classification or Grading Method
– Predefined classes or grades are established (e.g., Skilled, Semi-
skilled, Unskilled).
– Job descriptions are matched to these grades based on duties,
responsibilities, and qualifications.
– Easier to administer for large organizations; less precise if jobs
are diverse.
II. Quantitative methods (also called analytical methods)
These break down jobs into compensable factors and assign
numerical values.
• Point Method
– Identify key compensable factors (e.g., skill, effort,
responsibility, working conditions).
– Each factor is divided into degrees, and points are assigned to
each degree.
– Total points for each job determine its relative worth.
– Most widely used method; provides detailed and defensible
results.
• Factor Comparison Method
– Select key benchmark jobs.
– Identify compensable factors and rank jobs under each factor.
– Allocate money values to each factor.
– Total money value assigned to each job determines its relative
worth.
– Complex and requires expertise; suitable for large organizations.
 Role of an HR Manager
1. Strategic Role
• Align HR strategies with organizational goals.
• Participate in strategic planning and
organizational change initiatives.
• Forecast future workforce requirements.

2. Administrative Role
• Develop and implement HR policies and
procedures.
• Maintain employee records and HR information
systems.
• Ensure legal compliance with labor laws and
regulations.
3. Operational / Functional Role
• Oversee daily HR activities: recruitment,
onboarding, payroll, and benefits.
• Handle employee grievances and disciplinary
actions.
• Manage attendance, leave, and other HR
operations.
4. Developmental Role
• Identify training and development needs.
• Design and implement training programs.
• Facilitate career development and succession
planning.
5. Employee Welfare & Relations
• Foster positive employee relations and workplace
culture.
• Organize employee engagement activities and welfare
programs.
• Promote diversity, equity, and inclusion.
6. Performance & Compensation Management
• Design and monitor performance appraisal systems.
• Develop fair and competitive compensation structures.
• Manage incentive, bonus, and reward programs.
7. Advisory Role
• Advise management on HR issues, workforce planning,
and organizational development.
• Guide managers and employees on HR policies,
conflict resolution, and best practices.
 Functions of an HR Manager
I. Managerial Functions
• These are related to planning, organizing,
directing, and controlling the HR activities of the
organization.
• Planning
– Forecasting HR needs and developing policies to meet
organizational goals.
– Workforce planning, succession planning, and career
planning.
• Organizing
– Designing organizational structure and delegating HR
responsibilities.
– Coordinating HR activities among various
departments.
• Directing
– Guiding, motivating, and leading employees
to achieve HR and business objectives.
– Encouraging employee participation and
maintaining discipline.
• Controlling
– Monitoring HR policies and programs.
– Measuring performance and taking
corrective actions.
II. Operative / Functional Functions
• These are the core HR-specific activities managed
by HR Managers.
• Human Resource Planning (HRP)
– Ensuring the right number and kind of people are
available when needed.
• Recruitment and Selection
– Attracting, screening, interviewing, and hiring suitable
candidates.
• Training and Development
– Enhancing employee skills, knowledge, and abilities.
– Providing orientation, on-the-job training, and
leadership development.
• Performance Appraisal
Assessing employee performance against standards.
Providing feedback and planning career development.
• Compensation and Benefits
Designing and administering pay structures, incentives,
and benefits.
• Employee Welfare and Relations
Maintaining healthy employer-employee relationships.
Handling grievances, promoting employee engagement,
and welfare activities.
• Health and Safety
Ensuring workplace safety, health policies, and
compliance with regulations.
• HR Research and Record Keeping
Maintaining and analyzing HR data to support decisions.
 Recruitment: Meaning
Recruitment is the process of searching for and attracting
qualified candidates to apply for jobs in an organization.

Factors Affecting Recruitment

I. Internal Factors
• These are factors within the organization that affect
recruitment:
• Size of the organization
– Larger organizations may need more employees and have a
continuous recruitment process.
• Recruitment policy
– Policies about internal promotions, hiring relatives, and
preference for local candidates.
• Human resource planning
– If HR planning is systematic, recruitment becomes more
efficient.
• Cost of recruitment
Organizations must balance quality of hire
with recruitment costs.

• Growth and expansion plans

New projects or expansion often require
additional recruitment.

• Company image and culture

Organizations known for good culture and
ethics attract better talent.
II. External Factors
These are factors outside the organization
that impact recruitment:

• Labor market conditions

– Availability of skilled manpower in the market.
• Economic environment
– In times of economic growth, recruitment becomes
easier; during recession, candidates may be more
available but budgets may limit hiring.
• Social and cultural factors
– Attitudes towards certain jobs, diversity
expectations, and social norms.
• Legal and political environment
– Laws related to reservation, equal employment
opportunity, and labor standards.
• Technological changes
– New technology may require new skills and
influence the demand for certain roles.
• Competitors’ recruitment strategies
– Competitive pay, benefits, and work culture
offered by other organizations.
 Sources of Recruitment
Recruitment sources can be broadly classified into:
Internal sources – recruiting from within the organization
External sources – recruiting from outside the organization
I. Internal Sources of Recruitment
These sources involve filling vacancies with
existing employees from within the organization.
Common internal sources:
• Promotions
– Upgrading employees to higher positions based on
performance and experience.
• Transfers
– Shifting employees from one department, branch, or
location to another.
• Internal Advertisements / Job Posting
Vacancies are advertised on notice boards or
internal portals to invite applications from current
staff.
• Employee Referrals
Existing employees suggest suitable candidates
from among their contacts within the
organization.
• Retired and Retrenched Employees
Sometimes rehiring them for temporary or part-
time roles.
• Previous Applicants
Considering candidates who had applied earlier
but were not selected.
II. External Sources of Recruitment
These sources involve attracting candidates from
outside the organization.
• Common external sources:
• Direct recruitment (Walk-ins)
– Candidates come directly to the company seeking jobs.
• Employment exchanges
– Government-run agencies that help match candidates
to job vacancies.
• Advertisements
– In newspapers, online job portals, and social media.
• Placement agencies and consultants
Help find specialized or senior-level employees.
• Campus recruitment
Hiring fresh graduates directly from educational
institutions.
• Contract labor
Hiring workers for short-term needs.
• Web recruitment / E-recruitment
Using company websites, LinkedIn, and online
platforms.
• Walk-ins, Write-ins, and Talk-ins
Candidates directly submit applications or appear
for discussions.
 Types of Recruitment

Recruitment methods can be classified in

different ways, but most commonly into:

1. Internal Recruitment
2. External Recruitment
3. Modern / Digital Recruitment
I. Internal Recruitment
This is filling job vacancies with current employees within
the organization.
Types:
• Promotion: Advancing employees to higher positions.
• Transfer: Shifting employees to equivalent positions in
different departments or locations.
• Employee Referrals: Current employees recommend
someone from within.
• Internal Advertisements / Job Posting: Informing existing
staff about vacancies and inviting applications.
• Re-employment of ex-employees: Rehiring retired or
retrenched employees.
• Benefits: Saves cost, quick process, boosts employee
morale.
Limitation: Limited pool, may create internal competition.
II. External Recruitment
Recruiting candidates from outside the organization.
Types:
• Direct Recruitment (Walk-ins): Candidates approach the
organization directly.
• Employment Exchanges: Government-run platforms for
matching jobs with candidates.
• Advertisements: Through newspapers, magazines, radio,
TV, and online job portals.
• Campus Recruitment: Hiring students from colleges and
universities.
• Placement Agencies / Consultants: Used especially for
specialized or senior positions.
• Contract Labor: Hiring people for temporary projects or
seasonal work.
• Web Recruitment / E-Recruitment: Using websites,
social media, and professional networks like LinkedIn.
III. Modern / Digital Recruitment
Increasingly used in contemporary HR practice:
• Social Media Recruitment: Using LinkedIn,
Facebook, Instagram, etc.
• Company Career Portals: Dedicated career
sections on company websites.
• AI and Applicant Tracking Systems (ATS):
Automate screening and shortlisting.
• Virtual Job Fairs / Online Events: Digital
events connecting employers with candidates.
• Mobile Recruiting Apps: Apps to post jobs and
engage candidates instantly.
 Recruitment Process
The recruitment process typically consists of the
following stages:
1. Identifying manpower requirements
• Understand and define the need for new positions.
• Based on workforce planning, business
expansion, or replacement needs.
2. Preparing the job analysis
• Conduct job analysis to create:
– Job description: duties, responsibilities, scope.
– Job specification: qualifications, skills, experience
required.
3. Deciding recruitment strategy
• Choose:
– Internal vs. external recruitment.
– Recruitment sources (ads, campus, agencies, etc.).
– Timeline and budget.
4. Attracting candidates (searching)
• Advertise vacancies using chosen methods:
– Company website, job portals, newspapers, social
media, employee referrals, etc.
5. Receiving and managing applications
• Collect applications and resumes.
• Store them in HR systems or applicant tracking
systems (ATS).
6. Screening and shortlisting
• Evaluate applications to shortlist the most
suitable candidates.
• Use criteria based on job specification.
7. Communicating with shortlisted candidates
• Inform them about next steps: tests, interviews,
or assessments.
8. Conducting selection process (next stage)
• Though technically part of selection (separate
from recruitment), it follows recruitment.
• Includes tests, interviews, background checks,
etc.
9. Finalizing the recruitment
• Prepare offer letters for selected candidates.
• Complete necessary documentation.
10. Evaluation and feedback
• Review the effectiveness of the recruitment
process.
• Analyze what worked and what could be
improved.
E-Recruitment: Meaning
E-Recruitment is the process of using the
internet and digital tools to attract, screen,
and hire candidates for jobs.
It leverages company websites, job portals,
social media, apps, and specialized recruitment
software to make the recruitment process
faster, cost-effective, and wider in reach.
• It is also known as:
Online recruitment
Web-based recruitment
Internet recruitment
 Methods / Tools Used in E-Recruitment

• Company career websites

Posting job vacancies directly on the
organization’s official website.
• Online job portals / job boards
Sites like Naukri, Indeed, Monster, Glassdoor,
etc.
• Social media platforms
LinkedIn, Facebook, Instagram, Twitter, etc.
• Professional networks and forums
Industry-specific platforms and online
communities.

• Mobile recruitment apps

Apps that help manage job posting and
communication.

• AI-based tools
Automated resume screening, chatbots, and
matching algorithms.
Selection: Meaning

Selection is the process of choosing the most

suitable candidate from a pool of applicants
generated by recruitment.
It involves various tests, interviews,
background checks, and evaluation steps to
ensure the right fit between the candidate and
the job.
 Need for Selection
• Selection is important because:
• It helps choose candidates with the right
skills, knowledge, and attitude.
• Reduces employee turnover by ensuring better
job-person fit.
• Ensures fairness and objectivity in hiring.
• Helps build a capable workforce, improving
organizational performance.
• Complies with legal and ethical standards in
hiring.
• Avoids costs of wrong hiring decisions.
 Stages in the Selection Process
1. Receipt and Scrutiny of Applications
• Collect applications and resumes received
during recruitment.
• Screen for minimum eligibility based on job
requirements.
2. Preliminary Interview / Screening
Interview
• Short, initial interview to filter out clearly
unsuitable candidates.
• Checks basic qualifications, interest, and
suitability.
3. Selection Tests
• Written, psychological, aptitude, skill, or personality
tests.
• Help objectively measure abilities, knowledge, or traits
relevant to the job.
4. Employment / In-depth Interview
• Detailed, structured interview conducted by HR and/or
department heads.
• Evaluates candidate’s skills, experience, attitude, and
cultural fit.
5. Background and Reference Checks
• Verify details provided by the candidate (past
employment, education, character).
• Contact previous employers, colleagues, or references.
6. Medical Examination
• Assess candidate’s physical and mental fitness for the
job.
• Ensures compliance with health and safety standards.
7. Final Selection Decision
• Compare test results, interview performance, and
references.
• Select the candidate(s) who best match the job
requirements.
8. Job Offer and Appointment Letter
• Issue formal job offer and negotiate terms if needed.
• Provide appointment letter confirming employment.
9. Placement and Orientation
• Introduce the new employee to the organization.
• Explain job duties, policies, and workplace culture.
What is Training?
Training is a planned process of helping
employees acquire knowledge, develop skills,
and change attitudes or behaviors needed to
perform their current jobs effectively.
Training Needs (Why training is needed):
Training is necessary in an organization to:
1.Bridging skill gaps
• To fill the gap between existing skills and those
required for current or future jobs.
2. Technological changes
• Employees need to learn new tools, systems, or
methods introduced by technology.
3. Improving performance
Helps correct poor performance and increase
productivity.

4. Career growth & succession planning

Prepares employees for higher responsibilities
and future roles.

5. Orientation / induction
New employees need training to understand
company policies, culture, and procedures.
6. Change management
Helps employees adapt to organizational
changes, restructuring, or new strategies.

7. Legal & safety compliance

Some industries require mandatory training on
safety, quality standards, or regulations.

8. Innovation and competitiveness

Encourages creative thinking and keeps
employees updated to stay competitive.
Benefits of Training

For Employees:
• Increases knowledge, skills, and confidence.
• Improves job satisfaction and motivation.
• Better career opportunities and personal
growth.
• Reduces anxiety about new tasks or
technologies.
• Improves adaptability to changes.
For Organization:

• Higher productivity and efficiency.

• Better quality of products/services.
• Reduces accidents and workplace errors.
• Builds a pool of skilled employees ready for
promotion.
• Improves employee retention and reduces
turnover.
• Enhances organization’s reputation and
competitiveness.
 Steps in a Training Programme
A systematic training programme generally
involves the following steps:
1.Assessing Training Needs
• Identify gaps between current employee
skills/knowledge and what is required.
• Methods: performance appraisals, interviews,
surveys, job analysis.
• Helps ensure training is relevant and aligned
with organizational goals.
2.Setting Training Objectives
• Define what the training should achieve.
• Objectives should be specific, measurable,
achievable, relevant, and time-bound (SMART).
• Example: “Improve machine operation efficiency by
10% within 3 months.”
3. Designing the Training Programme
• Decide on:
– Content: topics, skills, and knowledge areas.
– Methods: lectures, role-plays, workshops, e-learning, etc.
– Trainers: internal experts, external consultants, or
professional trainers.
– Duration and schedule: time frame and session plan.
• Create supporting materials: manuals, handouts, videos.
4.Implementation (Conducting the Training)
• Deliver the training as per plan.
• Ensure active participation, engagement, and
clarity.
• Manage logistics: venue, equipment,
communication.
5. Evaluation and Follow-up
• Assess the effectiveness of training:
– Reaction: Did participants like the training?
– Learning: Did they gain new knowledge/skills?
– Behavior: Are they applying new skills on the job?
– Results: Did it impact organizational performance?
On-the-Job Training
Training method where employees learn by
actually doing the job under the guidance of a
supervisor, senior worker, or trainer. It is
conducted at the workplace, using real tools,
equipment, and materials that employees will
use once trained.
Merits of On-the-Job Training
• Practical & job-specific: Employees gain hands-
on experience in the actual work environment.
• Cost-effective: No need for separate training
facilities or additional resources.
• Immediate productivity: Employees contribute
to work while learning.
• Quick feedback: Supervisors/trainers can correct
mistakes immediately.
• Reduces training time: Employees get familiar
with organizational culture and processes quickly.
• Motivational: Direct involvement in real tasks
can boost confidence and morale.
Demerits of On-the-Job Training
• Possibility of errors: Mistakes made during training
could affect production quality or safety.
• Disruption: May slow down experienced workers who
act as trainers.
• Limited learning scope: Focuses mainly on practical
skills; may overlook theoretical knowledge.
• Quality depends on trainer: If the trainer isn’t skilled
at teaching, training effectiveness may drop.
• Stressful: Trainees may feel pressure performing in
real work conditions.
• Risk of passing on bad habits: If trainers have poor
work habits, these may be learned by trainees.
Off-the-Job Training
This is a method where employees are trained
away from their usual workplace, often in a
classroom, training center, or through online
platforms. It is usually more formal and
focuses on learning theoretical concepts, skills,
and broader knowledge
Merits of Off-the-Job Training
• Focus on learning: Free from work pressure,
employees can concentrate fully on acquiring new
skills.
• Broader perspective: Exposure to new ideas,
theories, and practices beyond the immediate job.
• Specialized expertise: Training often conducted
by experts or professional trainers.
• Safe environment: Mistakes during training do
not impact actual work or safety.
• Networking: Opportunity to meet colleagues
from other departments or organizations,
exchanging experiences.
• Systematic learning: Structured programs cover
both practical and theoretical aspects.
Demerits of Off-the-Job Training
• Costly: Involves travel, external trainers, and
sometimes accommodation.
• Disconnection from real work: Trainees may
find it hard to relate training to their actual job.
• Loss of working time: Employees are away from
their work duties during training.
• Limited practical exposure: Often theoretical;
may not fully prepare trainees for real job
challenges.
• Transfer of learning issues: Employees may
struggle to apply what they learned back on the
job.
• Less individualized: Training may not address
specific needs of each employee.
Evaluating a Training Programme
Evaluation of a training programme is the process of
assessing its effectiveness – to find out whether the
training has met its objectives, improved
performance, and added value to the organization

Purpose of Evaluation
• Identify strengths and weaknesses of the training.
• Improve future training design and delivery.
• Ensure return on investment (ROI) for training costs.
• Demonstrate accountability to management.
• Boost employee satisfaction by ensuring relevant
training.
Online Training in HRM
Online training uses digital platforms and tools
to deliver training programs to employees, rather
than traditional face-to-face methods.
Common Online Training Methods
• Webinars / live virtual classes
• Recorded video lectures
• Interactive e-learning modules
• Learning Management Systems (LMS)
• Online quizzes & assessments
• Discussion forums / online communities
• Virtual simulations & gamified learning
Promotion – Meaning
• Promotion is the process of advancing an employee to a
higher position within an organization.
It usually involves:
• Higher responsibilities
• Higher status
• Often higher pay and benefits
1. Seniority-Based Promotion
Promotion is given mainly based on the length of service in
the organization.
• Advantages:
• Simple and objective
• Encourages loyalty and reduces favoritism
• Easy to implement
• Disadvantages:
• May not reward merit, skill, or performance
• Can demotivate talented younger employees
2. Merit-Based Promotion
• Promotion is based on the employee’s
performance, skills, qualifications, and
potential.
• Advantages:
• Encourages higher performance and skill
development
• Better suited to meet organizational needs
• Disadvantages:
• Can lead to perceptions of bias or favoritism
• Needs well-developed and fair performance
appraisal systems
3. Mixed / Composite Method
Many organizations use a combination of seniority and
merit, e.g., merit-cum-seniority.
This ensures that experienced employees get
opportunities, while still recognizing talent and
performance.

Transfer – Meaning
In Human Resource Management, transfer means
moving an employee from one job, department, shift,
or location to another at the same level of
responsibility, pay, and status.
It is not a promotion (no increase in grade or pay) and
not a demotion (no reduction in grade or pay).
Transfers are usually made to balance workforce needs,
provide exposure, or meet organizational and employee
needs.
Types of Transfers
1. Production Transfer
Done to adjust workforce based on workload
changes between departments or units.
Example: Moving an employee from an
overstaffed department to an understaffed one.
2. Replacement Transfer
Occurs when a new employee replaces an
existing employee, who is then transferred to
another job.
Helps balance experience and fresh talent.
3. Remedial / Corrective Transfer
Transfer to resolve conflicts, health issues, or
unsuitability in a current job or location.
Example: Moving an employee away from a
department where interpersonal conflicts occur.
4. Versatility / Rotation Transfer
Done to develop employees’ skills by giving them
exposure to different jobs or functions.
Common in training future managers or supervisors.
5. Shift Transfer
Involves moving employees from one shift to another
(e.g., morning to night shift).
6. Geographical Transfer
Transfer from one location or branch to another,
often in organizations with multiple offices or factories.