Human Resource Management – I CBCBA5T08

Syllabus topics (RTMNU)

• Definition, Nature and Scope of HRM
• Evolution of HRM
• Challenges of HRM
• Human Resource Managers: Quality, Qualification, Nature & Importance
• Human Resource Planning: objectives and Policies
• Job Analysis, Job Description and Job Specification
• HRM issues and practices: Problems in Finding the right talent, Employee Retention, and Changing Global Scenario

Definition, Nature and Scope of HRM

Definition: Human Resource Management (HRM) is the process of acquiring, training, appraising and compensating employees, and of attending to their labour relations, health, safety and fairness (Gary Dessler). In simple words, HRM is the management of people at work so that both the organisation and the employees achieve their goals.

Nature of HRM:

1. People-centred: deals with employees at all levels.
2. Pervasive: exists in every organisation and every department.
3. Continuous process: from hiring to retirement.
4. Action-oriented and goal-oriented: solves people problems to meet organisational goals.
5. Interdisciplinary: uses psychology, sociology, economics and law.
6. Both a line and staff function: every manager manages people; the HR department advises.
7. Development-oriented: develops the full potential of employees.

Scope of HRM: (1) Procurement — HR planning, job analysis, recruitment, selection, placement, induction; (2) Development — training, career planning, promotion, transfer; (3) Compensation — job evaluation, wages, incentives, benefits; (4) Maintenance/welfare — health, safety, social security; (5) Employee relations — trade unions, grievances, discipline, collective bargaining; (6) HR records, research and HRIS.

Evolution of HRM

1. Industrial Revolution and Welfare stage: poor working conditions; welfare officers appointed (in India the Factories Act, 1948 required welfare officers in large factories).
2. Scientific management (F. W. Taylor): efficiency, standard tasks and piece wages.
3. Human relations movement (Elton Mayo, Hawthorne studies, 1924–32): social needs and morale affect productivity.
4. Personnel management: a separate department for hiring, wages and records.
5. HRM (1980s onwards): people as an asset/resource, not a cost.
6. Strategic HRM and digital HR (today): HR as a business partner, using HR analytics, AI-based hiring, remote work.

Challenges of HRM

Globalisation and competition; rapid technology change and automation/AI; a diverse workforce (gender, age, regions); attracting and retaining talent; gig and remote work; changing labour laws (the four Labour Codes — check latest); employee expectations of work-life balance; skill shortage; managing performance and ethics; health and well-being after COVID-19.

Human Resource Managers: Qualities, Qualifications, Nature and Importance

Qualities: leadership, communication skills, empathy and patience, fairness and integrity, knowledge of labour laws, problem-solving, persuasion, tact, confidentiality, and knowledge of technology.

Qualifications: a degree in commerce/arts/management; usually an MBA/PGDM in HR, MSW, or MPM (Master of Personnel Management); knowledge of labour laws; experience in HR work. (Under the Factories Act, welfare officers need prescribed qualifications as per State rules.)

Nature of the job: both advisory (staff) and service roles; acts as a link between management and workers. Importance: gets the right people, builds a good work culture, maintains industrial peace, ensures legal compliance, raises productivity and morale.

Human Resource Planning: Objectives and Policies

HRP is the process of forecasting the future manpower needs of an organisation and planning to have the right number and kind of people at the right place and the right time. Objectives: ensure adequate manpower; avoid shortage and surplus; plan recruitment, training and promotion; control labour cost; meet expansion and technology needs; plan for retirement and turnover. Policies: policy on internal vs external sourcing, training, promotion (seniority vs merit), reservation and diversity, retirement and redeployment.

Job Analysis, Job Description and Job Specification

Job analysis is the systematic process of collecting all information about a job — its tasks, duties, responsibilities, working conditions and the skills needed. Methods: observation, interview, questionnaire, diary/log, critical incidents. It produces two documents:

HRM Issues and Practices

Problems in finding the right talent: skill gaps between education and industry needs, high demand for digital skills, competition for talent, unrealistic salary expectations, location problems; solutions — campus hiring, apprenticeships, skilling programmes (Skill India), employer branding, referrals.

Employee retention: keeping good employees from leaving. Methods: fair pay, career growth, recognition, flexible work, good managers, training, employee engagement, ESOPs, healthy culture.

Changing global scenario: multinational workforce, outsourcing and GCCs (global capability centres) in India, remote and hybrid work, gig economy, AI and automation, diversity and inclusion, cross-cultural training.

Likely exam questions

1. (Long, 8/16 marks) Define HRM. Explain its nature and scope.
2. (Long, 8/16 marks) What is job analysis? Distinguish between job description and job specification.
3. (Short, 4 marks) State the qualities of a good HR manager.
4. (Short, 4 marks) What are the challenges of HRM?
5. (Short, 4 marks) Explain any four methods of employee retention.

Syllabus topics (RTMNU)

• Manpower Planning: concept, importance, definition and challenges
• Human Resource Information System
• Recruitment & Selection: Sources of Recruitment
• Selection Process
• Test Types
• Interview Types
• Training & Development: Design & Evaluation of T&D Programmes
• Methods of Training
• Induction & Orientation
• Career Development
• Performance and Potential Appraisal: Process and techniques, theories & Issues

Manpower Planning: Concept, Definition, Importance and Challenges

Definition: Manpower planning is the process by which management determines how the organisation should move from its current manpower position to its desired position — having the right number and right kind of people, at the right places, at the right time, doing work that is useful to the organisation and satisfying to them (E. W. Vetter).

Steps: study objectives and plans → assess present manpower (HR inventory) → forecast demand → forecast supply (internal and external) → find gaps (shortage/surplus) → action plans (recruitment, training, redeployment, VRS) → monitor.

Importance: avoids shortage and surplus; reduces labour cost; supports expansion and diversification; guides recruitment, training and succession planning; meets legal requirements (reservation, diversity); improves morale through career planning.

Challenges: uncertain future (economy, technology), inaccurate forecasting, employee resistance, high attrition, time and cost, lack of top-management support, changing laws and the rise of contract/gig workers.

Human Resource Information System (HRIS)

HRIS is a computer-based system to collect, store, maintain, analyse and report information about employees and jobs. Examples: SAP SuccessFactors, Oracle HCM, Zoho People, Darwinbox (Indian). Uses: employee records, payroll, attendance, leave, recruitment tracking, training records, appraisal, compliance reports (PF, ESI), HR analytics and dashboards. Benefits: speed, accuracy, less paperwork, self-service for employees, better decisions. Limitations: cost, data security and privacy (Digital Personal Data Protection Act, 2023 — check latest), need for training.

Recruitment and Selection: Sources of Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply (Edwin Flippo). It is a positive process (increases applicants).

Internal sources motivate employees and are cheap, but limit fresh ideas; external sources bring new talent and wider choice but are costly and slower.

Selection Process

Selection is choosing the most suitable candidates from those who applied. It is a negative process (rejects many). Steps:

1. Screening of applications
2. Preliminary interview
3. Application blank / form
4. Selection tests
5. Employment interview
6. Reference and background check
7. Medical examination
8. Final selection by line manager
9. Job offer and appointment letter
10. Placement and induction

Test Types and Interview Types

Tests: aptitude tests (ability to learn), intelligence tests, achievement/trade tests (present skill — typing, Tally), personality tests, interest tests, psychometric tests, situational judgement tests, group discussion. Interviews: preliminary, structured (fixed questions), unstructured (free talk), panel/board interview, stress interview, behavioural/competency interview, depth interview, group interview, telephone/video interview.

Training and Development: Design, Evaluation and Methods (overview)

Training increases the knowledge and skill of an employee for doing a particular job; development is wider growth for future roles. Design follows: training need analysis → objectives → content and method → trainer and schedule → conduct → evaluation. Kirkpatrick's four levels of evaluation: reaction, learning, behaviour, results. Methods are on-the-job (job rotation, coaching, apprenticeship, understudy) and off-the-job (lectures, case studies, role play, simulation, e-learning). (Details in Unit III.)

Induction and Orientation

Induction is the process of welcoming a new employee and introducing him to the organisation, its people, rules and culture. Contents: history and products, policies, pay and benefits, leave rules, safety rules, introduction to colleagues and boss, tour of the workplace. Benefits: reduces anxiety, builds belongingness, lowers early turnover, quick productivity.

Career Development

Career development is a planned process through which an employee's career goals are matched with organisational opportunities — through career counselling, career paths, mentoring, training and succession planning. It increases loyalty and retention.

Performance and Potential Appraisal: Process, Techniques, Theories and Issues

Performance appraisal is the systematic evaluation of an employee's performance on the present job; potential appraisal judges his ability to take up higher responsibilities in future.

Process: set performance standards → communicate them → measure actual performance → compare with standards → discuss results (feedback) → corrective action (training, reward, promotion).

Techniques: Traditional — ranking, paired comparison, graphic rating scale, checklist, forced distribution, critical incidents, confidential report, essay method. Modern — Management by Objectives (MBO), Behaviourally Anchored Rating Scales (BARS), assessment centres, 360-degree feedback, HR accounting, OKRs and continuous feedback.

Theories/bases: goal-setting theory (Locke) behind MBO; expectancy and equity theories explain how appraisal affects motivation. Issues/errors: halo effect, leniency and strictness, central tendency, recency, personal bias, unclear standards, lack of feedback.

Likely exam questions

1. (Long, 8/16 marks) What is recruitment? Explain internal and external sources of recruitment and the steps in the selection process.
2. (Long, 8/16 marks) What is performance appraisal? Explain its process and the traditional and modern techniques of appraisal.
3. (Short, 4 marks) What is HRIS?
4. (Short, 4 marks) Explain any four types of selection tests.
5. (Short, 4 marks) What is induction?

Syllabus topics (RTMNU)

• Human Resources Development
• Human Resource Development Functions
• Roles and Competencies of HRD
• Training and Development Methods
• Design & Evaluation of T&D Programmes
• Career Development
• Promotions and Transfers
• Personnel Empowerment including Delegation
• Retirement and Other Separation Processes

Human Resource Development (HRD) — Meaning

Definition: HRD is a planned and continuous process of helping employees to acquire and sharpen capabilities needed for their present and future roles, to develop their potential, and to build an organisational culture of teamwork, trust and learning (T. V. Rao). Prof. T. V. Rao and Udai Pareek pioneered HRD in India (Larsen & Toubro, 1975).

Features: planned and continuous; covers individuals, teams and the organisation; development-oriented, not only job-oriented; system approach with linked sub-systems; aims at both employee growth and organisational effectiveness.

HRD Functions

1. Training and development of employees.
2. Performance and potential appraisal with feedback and counselling.
3. Career planning and development; succession planning.
4. Organisation development (OD) — improving culture and processes.
5. Employee welfare and quality of work life.
6. Rewards and recognition for learning and performance.
7. HR information and research; knowledge management.

Roles and Competencies of HRD Professionals

Roles (as per ASTD/Pat McLagan): learning strategist, instructional designer, trainer/facilitator, career counsellor, change agent (OD consultant), needs analyst, evaluator, administrator, business partner. Competencies: knowledge of business and HR; understanding of adult learning; communication and presentation; counselling and coaching; analytical and research skills; use of technology (e-learning, HRIS); ethics and integrity; ability to manage change.

Training and Development Methods

Training vs Development: training is short-term, job-specific, mainly for operatives and technical skills; development is long-term, career-oriented, mainly for managers and conceptual skills.

Design and Evaluation of T&D Programmes

1. Training need analysis (TNA): at organisation, task and individual level — find the gap between required and actual skills.
2. Set objectives — what the trainees should be able to do.
3. Decide content, methods, trainers, budget and schedule.
4. Conduct the programme with proper facilities.
5. Evaluate — Kirkpatrick model: Level 1 Reaction (did they like it?), Level 2 Learning (did they learn? tests), Level 3 Behaviour (do they apply it on the job?), Level 4 Results (better productivity, fewer errors, lower cost). Some add Level 5: Return on Investment (Phillips).
6. Feedback to improve future programmes.

Career Development

A career is the sequence of jobs a person holds during working life. Career development includes career planning by the employee and career management by the organisation. Stages of career: exploration, establishment, maintenance (mid-career), decline/late career. Tools: career counselling, career paths and ladders, job rotation, mentoring, development centres, succession planning, sponsoring higher education. Benefits: retention of talent, motivation, ready successors, employee satisfaction.

Promotions and Transfers

Promotion is upward movement to a job with higher responsibility, status and usually higher pay. Bases: seniority (length of service — objective, accepted by unions), merit (ability and performance — motivates), or seniority-cum-merit (balanced). A sound promotion policy is written, fair, known to all, with a fixed basis and a probation period. Dry promotion: higher status without higher pay.

Transfer is a lateral movement to another job, department or place with about the same pay and status. Types: production transfer, replacement transfer, versatility (rotation) transfer, shift transfer, remedial transfer, penal transfer. Purposes: meet changing work needs, broaden experience, correct wrong placement, handle employee requests (family, health).

Personnel Empowerment including Delegation

Empowerment means giving employees the authority, resources and confidence to take decisions about their work. Delegation is the process by which a manager assigns tasks and transfers authority to a subordinate, while still remaining accountable. Elements: responsibility, authority, accountability. Principles: parity of authority and responsibility, absolute accountability, unity of command, clear limits. Benefits: faster decisions, motivation, development of subordinates, reduces the manager's workload. Empowerment goes further than delegation — self-managed teams, quality circles, suggestion schemes, open communication.

Retirement and Other Separation Processes

Separation is the end of employment. Types:

• Retirement: on reaching the superannuation age (58/60/62 as per rules); also Voluntary Retirement Scheme (VRS) and early retirement.
• Resignation: voluntary quitting by the employee, with notice; exit interviews find the reasons.
• Discharge / dismissal: termination for misconduct after due inquiry (principles of natural justice).
• Retrenchment and lay-off: termination for surplus staff / temporary inability to give work, as per labour law (now under the Industrial Relations Code, 2020 — check latest).
• Death or permanent disability.

Retirement benefits: provident fund, gratuity, pension/NPS, leave encashment; pre-retirement counselling helps employees plan.

Likely exam questions

1. (Long, 8/16 marks) Define HRD. Explain its functions and the roles and competencies of HRD professionals.
2. (Long, 8/16 marks) Explain on-the-job and off-the-job methods of training. How is a training programme evaluated?
3. (Short, 4 marks) Distinguish between promotion and transfer.
4. (Short, 4 marks) What is delegation of authority?
5. (Short, 4 marks) Explain the types of employee separation.

Syllabus topics (RTMNU)

• Job Evaluation
• Productivity
• Compensation: Meaning, Types, Criteria and Importance
• Rewards, incentives and other benefits
• Employee Morale and Motivation
• Stress Management
• Work-life Balance: stress management, Work stress and Counselling
• Labour Welfare: Safety & health, Programs and Policies, Government intervention

Job Evaluation

Definition: Job evaluation is a systematic process of finding the relative worth of jobs in an organisation, so that a fair wage structure can be fixed. It rates the job, not the job holder.

Methods: (1) Ranking method — jobs ranked from highest to lowest as a whole; (2) Grading/classification method — jobs put into pre-defined grades (like Government pay levels); (3) Point method — factors such as skill, effort, responsibility and working conditions are given points; total points decide pay; (4) Factor comparison method — key jobs are compared factor by factor in money terms. Objectives: equal pay for equal work, remove wage inequalities, reduce disputes, basis for wage structure and promotion.

Productivity

Productivity is the ratio of output to input (Productivity = Output ÷ Input). Labour productivity = output per worker or per hour. HR affects productivity through right selection, training, motivation, incentive plans, good working conditions, ergonomics, technology and good industrial relations.

Compensation: Meaning, Types, Criteria and Importance

Compensation is all forms of financial returns, services and benefits that employees receive as part of the employment relationship.

Types: (a) Direct/financial — basic wage/salary, dearness allowance, overtime, bonus, commission, incentives; (b) Indirect/fringe benefits — PF, gratuity, pension/NPS, insurance, medical, housing, leave travel, canteen, transport; (c) Non-financial — recognition, job security, challenging work, career growth, flexible hours.

Criteria for fixing compensation: job evaluation (worth of job), cost of living, prevailing wages in industry/region, ability to pay of the company, productivity, legal minimum wage (now under the Code on Wages — check latest), demand and supply of labour, trade union bargaining, Government policy.

Importance: attracts and keeps talent; motivates performance; satisfies basic needs; ensures fairness and industrial peace; legal compliance; builds employer brand.

Rewards, Incentives and Other Benefits

Rewards may be intrinsic (sense of achievement) or extrinsic (pay, praise). Incentives are extra payments linked to performance. Individual incentive plans: Taylor's differential piece rate, Halsey premium plan, Rowan plan, commission to salesmen. Group incentive plans: profit sharing, team bonus, Scanlon plan, ESOPs (employee stock option plans). Other benefits: health insurance, paid leave, crèche, education support, wellness programmes, work-from-home allowance.

Employee Morale and Motivation

Morale is the overall attitude, confidence and team spirit of employees towards their job and organisation. High morale shows in enthusiasm, low absenteeism and low turnover; low morale shows in complaints, absenteeism, strikes and wastage. It can be measured through attitude surveys, exit interviews and records.

Motivation is the process of stimulating people to act to achieve goals. Theories: Maslow's need hierarchy — physiological, safety, social, esteem, self-actualisation; Herzberg's two-factor theory — hygiene factors (pay, conditions) prevent dissatisfaction, motivators (achievement, recognition, growth) create satisfaction; McGregor's Theory X and Y; Vroom's expectancy theory. Ways to improve morale and motivation: fair pay, recognition, participation in decisions, job enrichment, good communication, career growth.

Stress Management, Work Stress and Counselling

Work stress is the harmful physical and emotional response when job demands do not match the capabilities, resources or needs of the worker. Causes (stressors): work overload, tight deadlines, role conflict and role ambiguity, poor working conditions, job insecurity, bad relations with boss, long commuting, technology overload, personal and family problems. Effects: headache, BP, anxiety, burnout, absenteeism, mistakes, turnover.

Stress management — individual level: time management, exercise, yoga and meditation, enough sleep, hobbies, positive thinking, social support. Organisational level: clear roles, realistic targets, flexible hours, employee assistance programmes (EAP), wellness programmes, participation, fair policies.

Counselling is a discussion with an employee about a problem (usually emotional) to help him cope. Types: directive (counsellor advises), non-directive (counsellor listens, employee finds solution — Carl Rogers), participative (both together). Functions: advice, reassurance, communication, release of emotional tension, clarified thinking, reorientation.

Work-Life Balance

Work-life balance means the right balance between work demands and personal/family life. Practices: flexible working hours, hybrid/remote work, compressed work week, paid leave, maternity and paternity leave, crèche facilities, limits on after-hours emails, wellness days. Benefits: lower stress, higher productivity and loyalty, reduced absenteeism, better employer image.

Labour Welfare: Safety, Health, Programmes, Policies and Government Intervention

Labour welfare means efforts to make life worth living for workers — facilities beyond wages. Intra-mural (inside the factory): drinking water, toilets, canteen, rest rooms, first aid, crèche, safety equipment. Extra-mural (outside): housing, education, recreation, transport, medical facilities.

Safety: safety committees, guards on machines, protective equipment (helmets, gloves), training, accident reporting, fire drills. Health: cleanliness, ventilation, lighting, control of dust and fumes, medical check-ups, occupational health centres.

Government intervention in India: laws — Factories Act, 1948 (health, safety, welfare, welfare officer), Employees' State Insurance Act, 1948, EPF & MP Act, 1952, Maternity Benefit Act, 1961, Payment of Gratuity Act, 1972 — now consolidated in the OSH Code 2020 and Code on Social Security 2020 (check latest); welfare funds for beedi, mine and building workers; e-Shram portal for unorganised workers; schemes like PM Shram Yogi Maan-dhan; labour inspection and the Directorate General Factory Advice Service and Labour Institutes (DGFASLI).

Likely exam questions

1. (Long, 8/16 marks) What is compensation? Explain its types and the criteria for fixing compensation.
2. (Long, 8/16 marks) What is work stress? Explain its causes and the methods of stress management at individual and organisational levels.
3. (Short, 4 marks) What is job evaluation?
4. (Short, 4 marks) Explain the meaning of employee morale.
5. (Short, 4 marks) What is labour welfare? Give examples of intra-mural welfare facilities.