HRM Notes
HRM Notes
HRM Notes
INTODUCTION TO HRM
DEFINITION
HRM is employee management with an emphasis on employees as assets of the business. In this
context, employees are sometimes referred to as human capital. As with other business assets, the
goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).
NATURE
The nature of human resource management (HRM) includes the following characteristics:
1. People-centered: HRM is concerned with all employees, from the bottom to the top level,
and values people both as individuals and as a group.
2. Pervasive: HRM is a broader function that is spread throughout the organization, and
manages all types of people from lower level to top level departments.
3. Action-oriented: HRM is an action-oriented, continuous process.
4. Future-oriented: HRM is future-oriented and development oriented.
5. Interdisciplinary: HRM is an interdisciplinary function.
6. Enhances employee relations: HRM enhances employee relations.
SCOPE
OBJECTIVES
The objectives of Human Resource Management (HRM) are goals set to manage and guide a
company's workforce effectively. Some objectives of HRM include:
FUNCTIONS OF HRM
HR MANAGER
ROLES
RESPONSIBILITIES
CURRENT TRENDS IN HR
With things back on track post-pandemic, the workplace is evolving into a more suitable approach
for employees and their productivity — the hybrid work model. It’s an employee-centric flexible
work model with a mix of in-office and remote work.
2. “Human” Leadership
A recent HBR article about the distinction between managers and leaders quotes, “CEOs need to
manage, not just lead. Middle ‘managers’ need the skills of leadership, too.”
Now more than ever, following the shifts the workplace has seen, the importance of an effective
leader and manager has grown by leaps and bounds. The current scenario demands empathetic,
adaptive and authentic leaders for their employees.
With technological advances, the metaverse workplace is on a quick path to becoming an everyday
reality. But how does that work? The metaverse workplace offers virtual reality environments that
let you work in a customized immersive space from anywhere in the world.
4. Change Management
What have the past few years taught us about dealing with unforeseen circumstances at the
workplace? The answer is change management.
Diversity, equity and inclusion are buzzwords in most organizations and rightfully so. DEI initiatives
are a part of addressing bias, discrimination, harassment, unfair wages and other issues in the
workplace.The need for DEI has also increased with the evolving work models — from in-person to
virtual and hybrid environments.
MODULE 2
HR PLANNING
Human resource planning (HRP) is a process of systematically planning a company's employee assets
to meet the demands of the company in the present and future. HRP is a continuous process of
identifying what the human resource needs of a company are and how to get the best employees
that fit those needs.
HR RECRUITMENT
Human resources (HR) recruitment is the process of identifying and hiring employees for an
organization. It is one of the core responsibilities of HR.
Sources of Recruitment:
Internal sources
1. Existing workforce
2. Employee referrals
3. Past employees
4. Company career websites
External sources
1. Direct recruitment
2. Casual callers
3. Employment exchange
4. Placement agencies and management consultants
5. Professional networking sites
6. Notifying vacancies to educational, professional, and technical institutions
HR SELECTION
In human resource management, selection refers to choosing the right candidates from the pool of
eligible candidates to fill vacant job positions in the organization. The goal of the selection process is
to identify the most qualified candidates for open positions within a company.
JOB ANALYSIS
Job analysis is a process in human resource management (HRM) that helps organizations understand
job roles, responsibilities, and requirements. It helps with:
1. Observations
2. Interviews
3. Questionnaires
4. Specialized methods of analysis
INTERVIEW
The interview process in Human Resource Management (HRM) includes the following steps:
1. Recruiting
2. Establishing criteria
3. Developing questions
4. Setting a timeline
5. Connecting schedules
The interview is an initial screening to ensure that you are the right candidate for the role. The
interview includes questions such as:
1. Core skills
2. Qualifications
3. Weaknesses
4. Salary expectations
5. Leadership skills and experience
6. Background
7. Communication skills
1. Medical examination
Ensures that the candidate is physically fit for the job
2. Background checks
Can be a prerequisite before applying, and can include confirmation of good conduct or
other criminal record checks
3. Preliminary screening
Helps the manager of the organization to shortlist the candidates and eliminate those who
are not suitable for the job
4. Preliminary interview
A short duration interaction with the candidate to get basic information about the candidate
and to check if they possess the required skills and aptitude for the job
5. Employment test
Assumes that the applicant already has the skills they are being hired to perform
6. Resume screening
A preliminary barrier that lets you determine if a candidate has the minimum qualifications
for the job they are applying for
7. Final selection
The interview may be held either in two stages – preliminary and final – or in one stage only
Induction and orientation are important steps in the onboarding process. The goal of induction is to
make new employees feel welcome, informed, and prepared to contribute to the company's
success. The goal of orientation is to provide new employees with the information they need to be
successful in their new role.
1. Bring an agreement between organization goals and the personnel goals of the newcomers
2. Build up the new employee's confidence in the organization and in himself
3. Guide, develop, motivate, inspire, satisfy, and achieve the loyalty of the new employees in
the organization
4. Help new employees grow and reach their full potential
MODULE 3
Human resources (HR) training and development is a process that helps employees improve their job
performance and enables future career growth. It includes various tools, instructions, and activities
designed to improve employee performance.
1. Training: Refers to acquiring specific knowledge and skills for a particular job or task.
2. Development: Refers to experiences that make people better.
3. Why is HR training and development important?
4. It helps employees acquire the knowledge, skills, and attitude that helps improve their job
performance.
5. It enables future career growth.
6. It sets up a benchmark of performance which employees are expected to achieve in a
financial year.
7. It teaches employees new skills such as team management, communication management,
and leadership behavior.
8. It improves team bonding.
Strategies
METHODS OF TRAINING
ASSESSMENT OF TRAINING METHODS
There are several methods for assessing training in human resources management (HRM):
PROMOTION
1. Increased salary
2. Increased responsibility
3. Increased status
4. Increased job grade or designation
Promotion can be temporary or permanent, depending on the needs of the organization. It can also
have motivational value for employees, elevating their status and power within the organization.
1. Vertical promotion
An upward movement of an employee to more senior positions, higher pay, and more
responsibilities. For example, a rank-and-file employee becoming a manager, or moving
from a Manager to Director, or Director to C-level Executive.
2. Horizontal promotion
Rewards an employee with a pay increase but little to no change in responsibilities.
3. Dry promotion
Involves all the responsibility of a new title, but without the benefits that come with it. For
example, a boost in responsibility and title without a pay raise.
TRANSFER
Transfer is a process of placing employees in positions where they are likely to be more effective or
where they are to get more job satisfaction. In transfers, there is no change in the responsibility,
designation, status or salary.
DEMOTION
A demotion is a compulsory reduction in an employee's rank or job title within the organizational
hierarchy of a company, public service department, or other body. A demotion may also lead to the
loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits.
Reasons:
1. Poor performance
2. Lack of skills
3. Disciplinary action
4. Reorganization
5. Elimination of position
6. Redundancies
7. Breach of contract
MODULE 4
A performance management system (PMS) is a tool used by HR teams to measure and analyze
employee performance. The system helps organizations enhance productivity by improving
employee performance over time.
A PMS monitors and tracks employee job performance consistently and accurately. The system uses
a combination of technologies and methodologies to ensure that employees are aligned with the
business's strategic objectives and make valuable contributions towards them.
The key to performance management is employee involvement and regular, productive feedback.
Applications:
ORGANIZATIONAL PERFORMANCE
Organizational performance is how well an organization is doing and how much of its daily tasks and
set objectives it successfully completes. It's a vital aspect of strategic management.
1. How well an organization is doing to reach its vision, mission, and goals
2. The ability of an organization to reach its goals and optimize results
3. A company's ability to achieve goals in a state of constant change
Some key elements of high performance organizations include:
1. Organizational culture
2. Strategic direction
3. Collaborative leadership
4. Self-organising teams
5. Creative and rational thinking processes
PERFORMANCE APPRAISAL
1. Personality
2. Skillset
3. Knowledge about the role
4. Technical know-how
5. Attitude
6. Punctuality
7. Strengths and weaknesses
8. Relative worth to the organization
9. Future development potential
10. Skills
11. Achievements
12. Growth
1. Management by objectives
A method where specific management goals are set and then used as a standard for
performance appraisal.
2. Degree feedback
A method that helps get a collective unbiased understanding of the employees' performance
and competencies.
3. Critical incidents
A method of collecting incidents from the managers or domain experts pertaining to the KPIs
of the employee.
4. Behaviorally anchored rating scales
Also known as BARS, the evaluation and appraisal are done on the basis of behavioral
examples.
5. General appraisal
A method where the employee and his supervisor will interact directly to know about
individual performance and contribution of the organization.
6. Rating scales
A method that rates employees on a fixed scale as per the qualities they are required to
possess.
7. Psychological appraisal
A method that is generally more future-focused as opposed to reviewing the past
performance of the employee.
Career succession planning is a process that identifies and develops employees who can fill key
positions in an organization when they become vacant. It is a subset of career management.
Succession planning focuses on the organization's needs, while career development motivates
employees to work on organizational needs.
MODULE 5
COMPENSATION
Compensation refers to any payment given by an employer to an employee during their period of
employment. In return, the employee will provide their time, labor, and skills. This compensation
can be in the form of a salary, wage, benefits, bonuses, paid leave, pension funds, and stock options,
and more.
WAGE
A 'wage' (or pay) is the remuneration paid, for the service of labour in production, periodically to an
employee/worker. “Wages” usually refer to the hourly rate or daily rate paid to such groups as
production and maintenance employees (“blue-collar workers”).
SALARY
Salary is defined as the decided monetary amount that an employer offers an employee in lieu of the
services offered by the employee. This amount of money is revised on periodic intervals on the basis
of the employee's performance.
1. Ability to pay
2. Demand and supply
3. Prevailing market rates
4. Cost of living
5. Bargaining of trade unions
6. Productivity
7. Government regulations
8. Cost of training
9. Alignment of attributes and role
10. Commission
11. Bonus
12. Wage laws
13. Personal perception of wage
14. Skill levels available in the market
15. Individualize employee pay based on unique job requirements and personal qualifications
In India, there are several methods for determining wages and salaries:
Committee Method
Notification Method
The Minimum Wages Act, 1948 states that there are two methods for fixing or revising minimum
wages: Committee Method, Notification Method.
The revision of minimum wages should not exceed an interval of five years.
In all other areas of employment, the respective state government establishes the minimum wage.
The wage rate may be fixed daily, hourly, or even monthly.
Other factors that have a bearing on the formulation of wage/salary levels include:
1. Cost of living
2. Productivity
3. Prevailing wage rates
MODULE 6
INDUSTRIAL RELATIONS
“Industrial Relations” refers to all types of relations between employers and workers, be they at
national, regional or company level; and to all dealings with social and economic issues, such as
wage setting, working time and working conditions.
Importance of IR
Objectives of IR
Main Aspects of IR
Causes of Poor IR
Theoretical Perspectives on IR
1. Pluralist perspective
In pluralism, the organization is perceived as being made up of powerful and divergent sub-
groups, each with its own legitimate interests and loyalties and with their own set of
objectives and leaders. In particular, the two predominant sub-groups in the pluralist
perspective are the management and trade unions. The pluralist perspective also supports
that conflict is inherent in dealing with industrial relations since different sub-groups have
different opinions in the day-to-day operations. Consequently, the role of management
would lean less towards enforcing and controlling and more toward persuasion and
coordination. Trade unions are deemed legitimate representatives of employees, conflict is
resolved through collective bargaining and is viewed not necessarily as a bad thing and, if
managed, could, in fact, be channeled towards evolution and positive change.
2. Unitarist perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the
idea of "one happy family" in which management and other members of the staff all share a
common purpose by emphasizing mutual co-operation. Furthermore, unitarism has a
paternalistic approach: it demands loyalty of all employees and is managerial in its emphasis
and application. Consequently, trade unions are deemed unnecessary since the loyalty
between employees and organizations are considered mutually exclusive, and there cannot
be two sides of industry. Conflict is perceived as destructive and[citation needed] the result
of poor management.
3. Radical or critical perspective
This view of industrial relations looks at the nature of the capitalist society, where there is a
fundamental division of interest between capital and labour, and sees workplace relations
against this background. This perspective sees inequalities of power and economic wealth as
having their roots in the nature of the capitalist economic system. Conflict is therefore seen
as a natural outcome of capitalism, thus it is inevitable and trade unions are a natural
response of workers to their exploitation by capital. Whilst there may be periods of
acquiescence, the Marxist view would be that institutions of joint regulation would enhance
rather than limit management's position as they presume the continuation of capitalism
rather than challenge it.
TRADE UNIONS
A trade union is an organization of workers that aims to improve their employment conditions.
Trade unions are also known as labor unions.
Trade unions are formed by workers in a particular trade, industry, or company. They work to
improve pay, benefits, working conditions, and social and political status through collective
bargaining. Trade unions can also help with issues like fairness of pay, good working environment,
hours of work, and benefits.
Trade unions represent workers' rights and interests to their employers. For example, they might
make agreements providing for the deduction of union subscriptions from members' wages, who is
to represent workers in negotiations, and how often meetings will take place.
1. Maintain unity
2. Freedom from political influence
3. Workers education
4. Adequacy of funds
5. Welfare activities for workers
6. Encourage small unions to merge with stronger units
7. Improve the finances of trade union by collecting subscriptions regularly from the members
8. Make it compulsory for all workers to become members
9. Increase the number of members required to form a trade union from 7 to 50% of the
employees of an organization
INDUSTRIAL DISPUTE
Causes:
1. Pay and conditions: Issues relating to compensation, such as wages, bonus, allowances, and
working conditions
2. Workload: Job security, health, and safety
3. Contract interpretation: Disagreements over the interpretation of contracts
4. Work practices: Changes in work practices
5. Strikes: A group of workers quitting work to pressure their employer to accept their
demands
6. Trade unions: A disagreement between an employer and employees' representative, usually
a trade union, over pay and other working conditions
7. Layoffs: Retrenchment or layoff of workers without any reason
8. Indiscipline and violence: Multiplicity of trade unions in industries and rivalry between them
is responsible for employee's disunity
Types of ID
1. Interest Disputes:The interest here refers to gains. Therefore, the conflicts concerning the
economic or non-economic interests of the employees, such as increasing the remuneration,
working conditions, job security and other benefits are called interest disputes.
2. Recognition Disputes: The trade unions often enter into a dispute with the management
during negotiation or collective bargaining for the benefit of its member employees.
Sometimes, for these negotiations, the management denies identifying the trade unions.
Even when there are many trade unions in an organization, each one of them struggles to
get recognized by the management.
3. Grievance Disputes or Rights Disputes: The conflicts concerning the employee’s rights and
legal issues with the management are termed as grievance disputes. It includes promotions,
work duration, leaves allowed, over time, fringe benefits, safety and security.
4. Unfair Labour Practices Disputes: The disputes over the unethical treatment of the
management towards the labour such as discriminating them for holding membership of
trade union, restricting communication, employing new workers during strikes and denial to
bargain are called unfair labour practices disputes.
Methods of Settlement of ID
1. Conciliation:
In simple sense, conciliation means reconciliation of differences between persons.
Conciliation refers to the process by which representatives of workers and employers are
brought together before a third party with a view to persuading them to arrive at an
agreement by mutual discussion between them. The alternative name which is used for
conciliation is mediation. The third party may be one individual or a group of people.
2. Arbitration:
Arbitration is a process in which the conflicting parties agree to refer their dispute to a
neutral third party known as ‘Arbitrator’. Arbitration differs from conciliation in the sense
that in arbitration the arbitrator gives his judgment on a dispute while in conciliation, the
conciliator disputing parties to reach at a decision.
3. Adjudication:
The ultimate legal remedy for the settlement of an unresolved dispute is its reference to
adjudica-tion by the government. The government can refer the dispute to adjudication with
or without the consent of the disputing parties. When the dispute is referred to adjudication
with the consent of the disputing parties, it is called ‘voluntary adjudication.’ When the
government herself refers the dis-pute to adjudication without consulting the concerned
parties, it is known as ‘compulsory adjudication.
MODULE 7
HEALTH HAZARDS
1. Physical hazards: These can include noise, radiation, vibration, heat, and cold stress.
2. Chemical hazards: These can include exposure to toxic substances such as fumes, dusts, and
gases.
3. Biological hazards: These can include exposure to infectious agents.
4. Psychosocial hazards: These include risks to the mental and emotional well-being of
workers, such as feelings of job insecurity, long work hours, and poor work-life balance.
5. Ergonomic hazards: These can result from repetitive motions, awkward postures, and heavy
lifting.
SAFETY HAZARDS
1. Biological hazards: These can be caused by bacteria, fungi, viruses, microorganisms, and
toxins.
2. Chemical hazards: These can be caused by exposure to chemical preparations in any form
(solid, liquid, or gas).
3. Physical hazards: These can be caused by factors, agents, or circumstances that can cause
harm without or with contact.
4. Ergonomic hazards: These can be caused by bad posture, not using dollies or other
mechanical assistance, and repetitive or awkward lifting/movement.