1.

Concept, Definitions, and Objectives of HRM :- * Concept: - * Human Resource Management (HRM) is a strategic approach to the effective management of people in an organization so that they help the business gain a competitive advantage. It is designed to maximize
employee performance in service of an employer's strategic objectives. HRM is concerned with the development of both individuals and the organization in which they operate.
Definitions: - According to 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 societal objectives are accomplished."
Storey (1995) defines HRM as “a distinctive approach to employment management which seeks to achieve competitive through the strategic deployment of a highly committed and capable workforce.”
Objectives of HRM: - *To recruit and retain the best talent. * To create and maintain a skilled, motivated, and productive workforce . * To ensure effective utilization of human resources. * To develop and maintain healthy employee relations. * To ensure compliance with labor laws
and ethical standards. * To enhance employee job satisfaction and engagement.
2. Functions of HRM :- * HRM performs both managerial and operative functions:- * A. Managerial Functions: - * Planning: Forecasting HR needs and developing strategies to meet them. * Organizing: Structuring HR roles and delegating ta sks. * Directing: Leading and motivating
employees. * Controlling: Monitoring HR activities and ensuring compliance with policies.
B. Operative Functions: - * Recruitment and Selection: Hiring the right people for the right roles.* Training and Development: Enhancing employees' skills and capabilities. * Performance Appraisal: Evaluating employee performance. * Compensation Management: Administering pay
and benefits. * Employee Relations: Handling grievances, disputes, and ensuring a healthy work environment. * Health and Safety: Ensuring the workplace is safe and healthy.
3. Process of HRM * The HRM process includes a series of interrelated activities aimed at managing people effectively: *1. Human Resource Planning (HRP) * 2. Recruitment and Selection * 3. Training and Development * 4. Performance Appraisal * 5. Compensation and Benefits *
6. Employee Relations * 7. Separation or Retirement * Each stage is critical for building and maintaining an efficient workforce aligned with organizational goals.
4. Evolution of HRM :- * HRM has evolved over time through the following stages: - * 1. Industrial Revolution Era: Focused on labor and production with no emphasis on employee welfare. * 2. Scientific Management (F.W. Taylor): Introduced standardization and efficiency in work. *
3. Human Relations Movement (Elton Mayo): Recognized the importance of human emotions and employee welfare. * 4. Personnel Ma nagement Era: Began systematic hiring and record keeping. * 5. Modern HRM: Emphasizes strategic involvement of HR in business decisions,
talent management, and organizational development.
5. Strategic HRM and Its Role in the Organization :- * Strategic HRM refers to aligning HR strategies and practices with the overall strategic goals of the organization. It ensures that HR policies support long-term business objectives and contribute to competitive advantage. * Roles
in the Organization: * Linking HR strategies with business strategies. * Managing talent and leadership pipelines. * Promoting a performance-based culture. * Facilitating change management. * Enhancing employee engagement and innovation. * Strategic HRM transforms HR from a
support function to a strategic partner in organizational success.
6. Human Resource Planning (HRP): Meaning and Process :- * Meaning: - * Human Resource Planning is the process of forecasting an organization’s future demand and supply of employees and planning to meet those needs. * Process of HRP: - * 1. Analyzing Organizational
Objectives: Understanding the company’s goals. * 2. Inventory of Current Human Resources: Assessing the current workforce. * 3. Forecasting Demand and Supply: Predicting future HR needs and availability. * 4. Identifying Gaps: Determining shortages or surpluses. * 5.
Developing HR Plans: Creating strategies for recruitment, training, and redeployment. * 6. Monitoring and Evaluation: Reviewing and adjusting plans as needed.
7. Job Analysis: Job Description and Job Specification :- Job Analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job.
Job Description: - * Provides details about job duties, responsibilities, working conditions, and reporting relationships. * Example: “Software Engineer responsible for developing applications, collaborating with the design team, and testing software.” * Job Specification: - * Lists the
qualifications, skills, knowledge, and experience required to perform the job. * Example: “B.Tech in Computer Science, 2+ years of programming experience, knowledge of Java and Python.”
8. Recruitment: Meaning, Sources, Process, and Yield Ratio :- * Meaning: - * Recruitment is the process of attracting, shortlisting, and engaging potential candidates for employment within an organization. * Sources of Recruitment: - * Internal Sources: Promotions, transfers,
employee referrals. * External Sources: Advertisements, job portals, campus recruitment, employment agencies. * Recruitment Process: - * 1. Identifying the vacancy. * 2. Preparing the job description/specification. * 3. Choosing sources of recruitment. * 4. Advertising the job. * 5.
Receiving applications.
Yield Ratio: - * It is a metric used to evaluate the effectiveness of different recruitment sources by comparing the number of applicants to those who are eventually hired. * For example, if 100 candidates apply and 10 are hired, the yield ratio is 10%.
9. Selection: Meaning and Process, Tests and Interviews :- * Meaning: - * Selection is the process of choosing the most suitable candidate from the pool of applicants through various evaluation methods. * Process of Selection: - * 1. Preliminary Screening ,* 2. Application Form
Review * 3. Written Tests (aptitude, technical, psychometric)* 4. Interviews (HR, technical, panel) * 5. Background Checks * 6. Medical Examination * 7. Job Offer and Appointment
Tests: - * Aptitude Test: Measures logical reasoning and problem-solving ability. * Psychometric Test: Assesses personality traits. * Technical Test: Evaluates job-specific skills. *Interviews: - * Structured or unstructured. * Behavioral, situational, or panel interviews.
Induction (Orientation): - * Induction is the process of introducing a new employee to the organization, its culture, policies, procedures, and their specific job role. It helps reduce anxiety, builds confidence, and enhances productivity.
Socialization: - * This is a broader process where new employees gradually acquire the necessary knowledge, skills, and behaviors to become effective members of the organization. Socialization fosters organizational commitment and cultural alignment.
Performance Appraisal and Compensation Management
1. Performance Appraisal :- * Meaning: - * Performance Appraisal is a formal and structured method of evaluating an employee’s job performance over a specific period. It measures how well an employee is doing in their job compared to pre-established standards, and provides
feedback to improve future performance. It is an essential component of Human Resource Management that aids in decisions related to promotions, training, and compensation.
Objectives of Performance Appraisal: - * Performance Measurement: To evaluate the actual performance against expected outcomes. * Employee Development: To identify strengths and areas of improvement. * Compensation Decisions: To provide a basis for salary increases,
bonuses, and incentives. * Training Needs Assessment: To determine the need for skill enhancement. * Promotion and Succession Planning: To identify employees for higher responsibilities. * Motivation and Morale: To enhance employee engagement through recognition and
feedback. * Legal Documentation: To maintain records for compliance and grievance handling.
Process of Performance Appraisal: - * 1. Setting Performance Standards: Clear, measurable, and attainable goals are set in line with organizational objectives. * 2. Communicating Expectations: Employees are informed about performance metrics and expectations. * 3. Measuring
Actual Performance: Collecting data using reports, observation, and feedback. * 4. Comparing with Standards: Analyzing the deviation between expected and actual performance. * 5. Discussing Results: Feedback is shared with the employee to acknowledge achievements or
suggest improvements. * 6. Taking Corrective Action: Training, job rotation, or counselling may be recommended. * 7. Documentation: The appraisal is documented for future reference and legal compliance.
Methods of Performance Appraisal: - * 1. Traditional Methods: - * Ranking Method: Employees are ranked from best to worst. * Paired Comparison: Each employee is compared with every other one. * Grading Method: Employees are placed in categories such as Excellent, Good,
Average. * Critical Incident Method: Focuses on key behaviors that led to success or failure. * Checklist Method: Uses a list of statements about employee behavior; evaluator checks applicable ones.
2. Modern Methods: - * Management by Objectives (MBO): Performance is evaluated based on achievement of specific goals mutually agreed upon. * 360 -Degree Feedback: Evaluation from peers, subordinates, superiors, and sometimes customers. * Behaviorally Anchored Rating
Scales (BARS): Combines quantitative ratings and qualitative examples of performance. * Human Resource Accounting Method: Measures employee performance in terms of contribution to the company’s financial success.
2. Potential Appraisal :- * Potential Appraisal is the process of identifying employees who have the ability and potential to grow in the organization and take on higher responsibilities in the future. Unlike performance appraisal, which is past-oriented, potential appraisal is future-
oriented. * Objectives: - * To identify talent for succession planning. * To design career development programs. * To retain high-potential employees by providing growth opportunities.
3. Biases in Performance Appraisal :- * Despite best efforts, performance appraisals can suffer from several types of biases: * Halo Effect: Judging based on one positive trait. * Horn Effect: One negative aspect clouds the overall judgment. * Central Tendency: Rating all employees
as average to avoid extremes. * Leniency or Strictness Bias: Consistently high or low ratings regardless of actual performance. * Recency Effect: Giving weight to recent performance rather than the entire period.* Personal Bias: Influenced by personal likes or dislikes. * To reduce
bias, companies use structured formats, multiple raters (like 360-degree feedback), and training for appraisers.
4. Methods of Job Evaluation :- * Job evaluation is a process of determining the relative worth of jobs in an organization to establish fair compensation.* Methods of Job Evaluation: - * 1. Analytical Methods: - Point Rating Method: Jobs are broken into components (skills, effort,
responsibility) and assigned points. * Factor Comparison Method: Key jobs are compared on selected compensable factors and ranked. * 2. Non-Analytical Methods: - * Ranking Method: Jobs are ranked from highest to lowest based on overall worth. * Job Classification Method:
Jobs are grouped into categories or grades based on descriptions.
5. Meaning of Compensation :- * Compensation refers to the total monetary and non-monetary rewards given to employees in exchange for their labor and services. It includes direct financial benefits like sala ries and wages, as well as indirect benefits like health insurance and
retirement plans.
6. Types of Compensation :- * 1. Direct Compensation: - * Basic Salary or Wages * Overtime Pay * Bonus * Incentives and Commissions
2. Indirect Compensation (Benefits): - * Health Insurance * Provident Fund * Paid Leaves and Holidays * Retirement Benefits * Employee Stock Options (ESOPs)
7. Types of Wages and Theories :- * Types of Wages: - * Minimum Wage: The legally mandated lowest wage that can be paid. * Fair Wage: A wage that is above minimum wage and is just ifiable based on productivity and cost of living. * Living Wage: A wage sufficient to provide a
decent standard of living. * Piece Rate Wage: Based on output produced. * Time Rate Wage: Based on time worked (hourly, weekly, etc.). * Theories of Wages: - * Subsistence Theory (Ricardo): Wages should be enough to sustain life. * Wage Fund Theory: Wages come from a fixed
fund allocated for labor. * Marginal Productivity Theory: Workers are paid based on their marginal contribution to the output. * Bargaining Theory: Wages are determined by the relative bargaining power of employers and employees.
8. Wage Differentials :- Wage differentials refer to the difference in wages arising due to various factors: - * Geographical Differences: Urban vs rural areas. * Skill and Experience: Skilled workers earn more than unskilled workers. * Industry Differences: Wages vary between
industries. * Gender Differences: Despite laws, gender-based pay gaps still exist in some regions. * Organizational Factors: Profitability and wage policy of the company.
9. Pay Structure :- * A pay structure is a framework that defines different pay levels for different roles within an organization. It typically includes:- * Pay Grades: Groups of jobs with similar worth. * Pay Ranges: Minimum to maximum pay for a grade. * Salary Bands: Broader ranges
that allow flexibility. * Compensation Matrix: A visual representation of pay based on performance and position.
10. Wage Law in India :- * India has several laws regulating wages to ensure fairness and prevent exploitation: - * The Minimum Wages Act, 1948: Mandates minimum wage levels across industries and states. * The Payment of Wages Act, 1936: Regulates timely payment and
deductions from wages. * The Equal Remuneration Act, 1976: Prohibits wage discrimination based on gender. * The Payment of Bonus Act, 1965: Requires organizations to pay annual bonuses to eligible employees. * The Code on Wages, 2019: Replaces multiple laws to provide a
universal minimum wage, simplify compliance, and ensure timely wage payments.
11. Executive Compensation :- Executive compensation refers to the financial and non-financial rewards given to senior-level employees (like CEOs, CFOs).
Components:- * Fixed Salary * Performance Bonuses * Stock Options and Equity * Perquisites (Cars, Housing, etc.) * Retirement Packages and Golden Parachutes * Executive compensation is often performance-linked and designed to attract, motivate, and retain top leadership
talent. However, it is also a subject of scrutiny due to concerns about fairness and excessive pay gaps.
1. Concepts of Career :- * A career is the cumulative progression of an individual through a series of jobs, positions, and experiences that develop one’s skills, capabilities, and professional identity over time. It is more than just a sequence of employment—it involves lifelong
learning, personal growth, and fulfillment of goals.
There are two main types of career perspectives: - * Organizational Career: Traditional concept where individuals grow within the hierarchy of one organization. * Boundaryless Career: A modern view where individuals switch across organizations and industries, building diverse
experiences. * The concept of a career integrates personal development and job progression, aligning individual aspirations with organizational goals.
2. Career Planning Process :- Career planning is a deliberate process where individuals evaluate their career goals and develop strategies to achieve them. For organizations, it ensures a ready pool of talent for future roles. * Steps in the Career Planning Process: - * 1. Self-
Assessment: Individuals evaluate their interests, values, skills, and strengths using tools like SWOT analysis or psychometric tests. * 2. Exploration of Career Options: Exploring possible career paths aligned with one’s profile, industry trends, and future opportunities. * 3. Goal
Setting: Identifying both short-term and long-term career goals. * 4. Career Strategy Development: Formulating steps like acquiring new skills, certifications, or networking.* 5. Implementation: Executing the strategy through actual role transitions, skill upgrades, or job moves. * 6.
Feedback and Evaluation: Continuously assessing progress and realigning goals if needed. * Career planning benefits both employees (through clarity and motivation) and employers (through talent optimization and reduced attrition).
3. Career Stages :- * Career development is often classified into distinct stages, each with different challenges and priorities: * 1. Exploration Stage (Age 15–25): Individuals explore interests, acquire education, and make initial career decisions. * 2. Establishment Stage (Age 25–
35): The focus is on proving abilities, gaining job stability, and achieving early career goals. * 3. Mid-Career Stage (Age 35–50): Individuals either grow into leadership roles or reassess their paths. Some may experience stagnation or burnout. * 4. Late Career Stage (Age 50–65): The
focus shifts to mentoring, sharing experience, or transitioning to less demanding roles. * 5. Decline or Retirement Stage (65+): Individuals begin to disengage from the workforce, often focusing on legacy and post-retirement planning. *Understanding career stages helps HR to
provide suitable training, motivation, and role clarity at each level.
4. Training & Development :- * Concept: - * Training is a structured process designed to develop specific skills in employees required for current job roles. * Development is broader and focuses on long-term growth, leadership, and capability enhancement. * While training is job-
oriented, development is career-oriented and strategic.
5. Training Need Analysis (TNA) :- TNA is the first step in the training process and involves identifying skill gaps. * Steps in TNA: - * 1. Organizational Analysis: Understanding business goals and how training can support them. * 2. Task Analysis: Identifying competencies required for
specific job roles. * 3. Person Analysis: Determining which employees require training and in what areas.* TNA ensures training investments are aligned with real business needs.
6. Methods of Training :- * On-the-Job Training (OJT): - * Conducted at the workplace during regular work hours. * Examples: Job rotation, apprenticeships, coaching, mentoring. * Pros: Real-time feedback, cost-effective, immediate application. * Off-the-Job Training: - * Conducted
outside the job environment. * Examples: Workshops, seminars, role-playing, case studies, simulation. * Pros: Focused learning, exposure to new ideas, fewer distractions. * Organizations often use a blend of both methods depending on the skill level and training objectives.
7. Evaluation of Training Effectiveness :- * Assessing the success of training helps measure ROI and improvement in performance. * Kirkpatrick’s Four-Level Model: - * 1. Reaction: Trainee satisfaction and engagement. * 2. Learning: Change in knowledge and skills. * 3. Behavior:
Application of learning on the job. * 4. Results: Impact on business goals like productivity or quality.
8. Concepts of Promotion, Transfer, and Separation :- * Promotion: - It refers to upward movement of an employee to a higher position with increased responsibilities, pay, and status. * Types: Horizontal, vertical, dry promotion. * Criteria: Performance, seniority, potential, or a
combination. * Transfer: - * Movement of an employee from one job or location to another without significant change in pay or responsibilities. * Types: Lateral, geographical, disciplinary. * Purpose: Balance workforce, employee development, resolve conflicts. * Separation:- *
Termination of employment due to resignation, retirement, layoff, or dismissal. * Voluntary: Resignation, retirement. * Invol untary: Layoffs, dismissal for misconduct. * Exit Interviews: Commonly used to gather feedback during separations.
9. Organizational Citizenship Behavior (OCB) :- * OCB refers to voluntary behaviors that are not part of formal job requirements but contribute to the organizational environment. * Examples: - * Helping coworkers. * Volunteering for extra work. * Following company rules
conscientiously. * OCBs enhance teamwork, reduce conflicts, and improve organizational effectiveness.
10. HRIS (Human Resource Information System) :- * HRIS is a software system used for collecting, storing, and managing HR data. It supports automation and decision-making. * Functions: - * Employee database management.* Payroll and benefits administration. * Recruitment
and onboarding. * Training and performance tracking. * HRIS increases efficiency, reduces errors, and allows data-driven HR practices.
11. Competency Mapping :- * It is the process of identifying the key competencies (knowledge, skills, abilities, behaviors) required to perform a job effectively. * Uses:- * Recruitment & selection.* Training & development. * Performance appraisal. * Succession planning. * By
mapping competencies, organizations ensure the right people are in the right roles.
12. Talent Management :- * Talent management is a strategic approach to attract, develop, retain, and utilize the most talented employees. * Key Components: - Talent acquisition. * Leadership development. * Succession planning. * Performance and career management. *
Effective talent management builds a competitive advantage by nurturing high-potential employees.
13. Employee Engagement :- * Employee engagement is the emotional and psychological commitment an employee has toward the organization and its goals.
Drivers of Engagement: - * Meaningful work. * Leadership and communication. * Recognition and rewards. * Career development opportunities. * Work-life balance. * High engagement leads to better productivity, innovation, and employee retention.