HUMAN RESOURCE MANAGEMENT

20CBMG701-HRM

Dr.V. Dhayalan M.B.A.M. Phil, Ph.D.

M.H.R.M,M.com, M.A.Economics,(ICMA)(ACS)
 SRI SAIRAM ENGINEERING COLLEGE

CSBS- COMPUTER SYSTEM AND BUSINESS STUDIES

20CBMG701-HUMAN RESOURSE MANAGEMENT

UNIT-1 HUMAN RESOURSE MANAGEMENT

1.1 HRM – Definition, Evolution, Objectives

Definition:
Human Resource Management (HRM) is the strategic approach to managing people
effectively within an organization to achieve its goals. It involves recruitment, training,
development, compensation, and maintaining employee relations.

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.”

Evolution:
HRM evolved from traditional personnel management focusing mainly on administrative
tasks to a strategic partner in organizational development. Early industrialization emphasized
labour welfare, later moving to employee motivation theories like Maslow’s hierarchy and
Herzberg’s two-factor theory.

Objectives:
The primary objectives of HRM include maximizing employee performance, ensuring
compliance with labour laws, enhancing employee satisfaction, fostering a safe work
environment, and aligning workforce capabilities with organizational goals.

 Early HRM (Industrial Revolution & Beyond):

Focus was on managing the workforce in factories, with initial attention on basic record-
keeping, payroll, and labour law compliance. This stage is described in more detail. This era
also saw the rise of trade unions and the beginning of social responsibility in managing
employees.

 Personnel Management:

This stage emphasized employee welfare and relations. It involved functions like
recruitment, training, compensation, and handling grievances. This era is described at the
Lucknow University site.

 Human Resource Management (HRM):

This era emerged in the 1970s and 1980s, shifting the focus to developing human capital and
viewing employees as valuable assets. . Key features included strategic workforce planning,
employee engagement, and leadership development.

 Strategic HRM (SHRM):

This is the most recent stage where HRM is fully integrated into the organization's strategic
decision-making process. . HR strategies are aligned with overall business objectives,
ensuring that human capital contributes to the company's goals.

 Impact of Technology:

Technology has significantly impacted HRM, with HRIS (Human Resource Information
Systems) and other tools automating tasks, improving data analysis, and enabling a more
data-driven approach to workforce management.

Example:
In a company like Tata Steel, HRM plays a vital role in recruiting skilled labour, maintaining
industrial harmony, and ensuring productivity through continuous training and employee
engagement programs, adapting to both local and global market demands.

1.2 Importance of HRM – Roles of HR Manager

Importanceof HRM:
HRM is crucial for developing the workforce, which is the backbone of any organization. It
helps in talent acquisition, reducing turnover, improving productivity, and nurturing
employee growth. HRM also ensures legal compliance and builds a positive organizational
culture.

RolesofHRManager:
The HR manager acts as a recruiter, trainer, mediator, policy maker, and strategic planner.
They handle employee grievances, develop policies, conduct appraisals, and align HR
strategies with business objectives.

1.Recruitment and Selection: HR managers are responsible for attracting, recruiting, and
selecting qualified candidates to fill open positions within the organization. This includes
developing job descriptions, sourcing candidates, conducting interviews, and making hiring
decisions.

2. Training and Development: They oversee the development of training programs to

enhance employee skills and knowledge, ensuring employees are equipped to perform their
roles effectively and contribute to the organization's success.

3. Performance Management: HR managers implement and manage performance appraisal

systems to evaluate employee performance, provide feedback, and identify areas for
improvement.

4. Employee Relations: They manage employee relations by fostering positive relationships

between employees and management, addressing workplace conflicts, and promoting a
positive work environment.
5. Compensation and Benefits: HR managers design and manage compensation and
benefits programs, ensuring they are competitive, equitable, and aligned with organizational
goals.

6. Compliance: They ensure the organization complies with all relevant labor laws and
regulations, staying up-to-date on changes in employment law and implementing policies
accordingly.

7. Strategic Planning: HR managers play a vital role in strategic planning, aligning HR

initiatives with the organization's overall business goals and contributing to the development
of the workforce.

8. Employee Engagement: They are responsible for developing and implementing strategies
to improve employee engagement and satisfaction, creating a positive and productive work
environment.

9. Onboarding: HR managers oversee the onboarding process for new employees, ensuring
a smooth transition into the company culture and providing the necessary resources for
success.

10. HR Technology: They leverage HR technology to streamline processes, improve

efficiency, and enhance the employee experience.

In essence, HR managers are vital in creating a productive and positive workplace that
supports the organization's goals and objectives.

Example:
In Infosys, HR managers play a key role in managing talent across various tech domains,
coordinating training programs for skill upgrades, and fostering a work culture that supports
innovation and employee well-being.

1.3 Functions of HRM

The main functions include:

 Recruitment & Selection: Identifying and hiring the right talent.

  Training & Development: Enhancing employee skills.

 Performance Management: Appraisals and feedback.

 Compensation & Benefits: Structuring salary and incentives.

 Employee Relations: Maintaining harmonious work environment.

 Compliance: Ensuring adherence to labour laws.

 Health & Safety: Implementing workplace safety norms.

Industrial ample:
At Larsen & Toubro (L&T), HR functions ensure recruitment for diverse engineering roles,
conduct safety training in construction sites, and maintain regulatory compliance, ensuring
smooth project execution.

1.4 Challenges to HRM

 Globalization: Managing diverse workforce across countries.

 Technological Changes: Adapting to automation and AI.

 Employee Retention: Retaining skilled employees amid competition.

 Legal Compliance: Keeping updated with changing labour laws.

 Workforce Diversity: Handling cultural differences.

 Work-life Balance: Addressing employee well-being.

 Skill Gap: Bridging the mismatch between skills and job demands.

Example:
In Amazon India, HR faces challenges in managing seasonal workforce demands, ensuring
workplace safety in warehouses, and adapting training for technological tools used in
logistics.

1.5 Human Resources Policies – Procedures – Practices – Significance

  Policies: Guidelines governing HR activities, e.g., leave policy, code of conduct.

 Procedures: Step-by-step methods to implement policies.

 Practices: Actual execution of policies in daily operations.

 Significance: Policies ensure consistency, fairness, and legal compliance. They help in
managing expectations and reducing conflicts.

Examples of HR policies:

 Recruitment and Hiring:

Policies related to job postings, applicant screening, interviewing, and selection procedures.

 Compensation and Benefits:

Policies on salary structures, bonuses, health insurance, retirement plans, and other
benefits.

 Performance Management:

Policies on performance reviews, goal setting, feedback, and performance improvement

plans.

 Employee Relations:

Policies on workplace conduct, harassment, discrimination, and conflict resolution.

 Leave and Time Off:

Policies on vacation, sick leave, parental leave, and other types of leave.

 Training and Development:

Policies on employee training programs, professional development opportunities, and

succession planning.

 Termination:

Policies on disciplinary actions, performance-related terminations, and voluntary

resignations.

 Code of Conduct:
A policy outlining expected employee behavior and ethical standards.

 Equal Opportunity:

Policies ensuring equal opportunities for all employees, regardless of background or

characteristics.

 Expense Reimbursement:

Policies for managing and reimbursing employee expenses.

Example:
At Reliance Industries, clear HR policies related to safety, anti-discrimination, and employee
grievance mechanisms help maintain a disciplined and productive workplace.

1.6 Human Resource Policy Formulation

Formulation involves:

 Identifying Needs: Understanding organizational goals and workforce needs.

 Consultation: Involving management and employee representatives.

 Drafting: Creating clear, concise policies.

 Review: Legal and HR expert scrutiny.

 Implementation: Communicating and enforcing policies.

 Evaluation: Regular updates based on feedback and environment changes.

Example:
In Maruti Suzuki, HR policies are regularly updated to adapt to labour regulations and
technological advancements, ensuring workforce alignment with production goals.

1.7 Scope and Characteristics of HR Policies

Scope: Covers recruitment, compensation, training, discipline, employee welfare, and safety.

Scope of HR Policies:
  Recruitment and Selection:

Policies guide the process of attracting, hiring, and onboarding new employees, ensuring a
fair and consistent approach.

 Compensation and Benefits:

Policies outline salary structures, benefits packages, and other forms of compensation,
ensuring fair and competitive practices.

 Training and Development:

Policies support employee growth through training programs, performance appraisals, and
career development opportunities.

 Performance Management:

Policies define the process for setting goals, evaluating performance, providing feedback,
and addressing performance issues.

 Employee Relations:

Policies address issues like disciplinary actions, grievance procedures, and conflict resolution,
promoting a positive and productive work environment.

 Health and Safety:

Policies ensure a safe and healthy workplace, complying with relevant laws and regulations.

 Ethics and Conduct:

Policies establish a code of conduct, outlining ethical standards and expected behavior for all
employees.

 Diversity and Inclusion:

Policies promote diversity and inclusion, ensuring equal opportunities for a ll employees and
prohibiting discrimination.

 Compliance:
Policies ensure compliance with labour laws and regulations, minimizing legal risks for the
organization.

 Workforce Planning:

Policies guide the organization in forecasting future staffing needs and developing strategies
to meet those needs.

Characteristics of Effective HR Policies:

 Clarity and Accessibility:

Policies should be written in clear, concise language and readily accessible to all employees.

 Consistency:

Policies should be applied consistently across the organization, ensuring fair and equitable
treatment for all employees.

 Legal Compliance:

Policies must comply with all applicable labour laws and regulations.

 Alignment with Organizational Goals:

Policies should support the overall strategic goals and objectives of the organization.

 Regular Review and Update:

Policies should be regularly reviewed and updated to ensure they remain relevant and
effective in a changing environment.

 Communication and Training:

Effective communication and training are essential to ensure that employees understand
and comply with the policies.

 Fairness and Equity:

Policies should be designed to ensure fair and equitable treatment for all employees,
regardless of their background or characteristics.

 Supportive and Encouraging:

Policies should create a positive and supportive work environment, encouraging employee
engagement and motivation.

Characteristics HR policies

 Clear and consistent

 Flexible to adapt to changes

 Fair and equitable

 Legal compliance

 Communicated to all employees

Industrial Example:
Wipro emphasizes flexible HR policies that encourage remote working and continuous
learning, catering to the dynamic IT sector needs.

1.8 Key Components of HR Policies and Practices

 Recruitment and Selection Policy: Defines hiring process.

 Training and Development: Guidelines on employee skill enhancement.

 Performance Management: Appraisal and feedback systems.

 Compensation and Benefits: Salary, incentives, and perks.

 Employee Relations: Grievance redressal and disciplinary procedures.

 Health and Safety: Workplace safety rules.

 Diversity and Inclusion: Promoting equal opportunities.

Industrial example:
At TCS (Tata Consultancy Services), comprehensive HR practices ensure skill development,
fair performance appraisals, and diverse hiring to foster innovation and inclusivity.

UNIT II-HUMAN RESOURSE PLANNING

2.1 Human Resource Planning – Need – Objectives

Human Resource Planning (HRP) is the process of forecasting an organization’s future

human resource requirements and planning how to meet them. It ensures the right number
of employees with the right skills are available at the right time.

Need:

 To avoid manpower shortages or surpluses.

 To align workforce with organizational goals.

 To manage costs effectively by planning recruitment and training.

 To prepare for organizational expansion or downsizing.

Objectives:

 Forecast future HR needs accurately.

 Develop talent pipelines through succession planning.

 Enhance employee utilization and reduce turnover.

 Maintain a balance between internal and external staffing.

Example:
IBM uses strategic HR planning to forecast demand for technology experts, ensuring they
recruit and train talent well in advance for projects in AI and cloud computing sectors.

2.2 Factors Affecting HRP

Several factors influence HRP, including:

 Organizational Goals: Expansion or contraction plans impact HR needs.

 Technology: Automation can reduce or change workforce requirements.

 Economic Conditions: Recession or growth affects hiring and layoffs.

 Labor Market: Availability of skilled labour influences recruitment strategies.

  Government Policies: Labor laws and regulations can affect workforce planning.

 Employee Turnover: Rate of attrition impacts demand for replacements.

 Internal Factors: Current workforce skills and productivity levels.

Example:
At Siemens, the shift towards digital technologies has changed HRP by increasing demand
for software engineers while reducing traditional manufacturing roles.

2.3 Demand and Supply of HRP

Demand for HRP refers to the number and type of employees the organization needs based
on business forecasts. Supply refers to the current internal and external workforce available.

Demand Determination:

 Analysing production schedules, new projects, and business growth.

 Skill requirement assessment for new technologies.

Supply Estimation:

 Assessing current employees’ skills, experience, and potential.

 Considering external labour market conditions.

Balancing Demand and Supply:

 Using recruitment, training, or layoffs to address gaps.

Example:
Google continuously assesses demand and supply for AI researchers, balancing internal skill
development with aggressive external hiring to meet innovation goals.
2.4 HRP Forecasting Techniques

Common forecasting techniques include:

 Qualitative Techniques: Expert judgment, Delphi method, and managerial estimates.

 Quantitative Techniques: Trend analysis, ratio analysis, regression models.

 Workforce Analytics: Using data to predict attrition, recruitment needs.

 Scenario Planning: Preparing for multiple future possibilities.

Example:
Accenture uses advanced analytics and scenario planning to forecast talent needs across
global consulting practices, adjusting recruitment and training programs accordingly.

HRP forecasting techniques: Predicting future workforce needs

Human Resource Planning (HRP) relies heavily on forecasting techniques to ensure an

organization has the right number of people with the necessary skills at the right time. These
techniques can be categorized into two main types: quantitative and qualitative.

Quantitative forecasting techniques

These methods use historical data and mathematical models to predict future staffing
needs.

Trend Analysis: Examines past data to identify patterns and project future needs.

 Ratio Analysis: Establishes relationships between different operational indices (like

sales per employee) to forecast HR demand based on productivity.

 Regression Analysis: This statistical technique examines the relationship between

employee numbers and variables like sales or production to make predictions.

 Cohort Analysis: Studies groups of employees over time to understand and predict
manpower changes like turnover or retirements.

Qualitative forecasting techniques

These methods rely on expert opinions and discussions, especially when historical data is
limited.

Delphi Technique: Gathers forecasts from experts through questionnaires and

feedback to reach a consensus without direct interaction.

 Nominal Group Technique (NGT): Involves individuals generating ideas

independently, then sharing and prioritizing them in a structured group.

 Managerial Estimates/Expert Judgment: HR managers and department heads

provide predictions based on their knowledge and experience.

 Scenario Planning: Analyzes different potential future scenarios to develop flexible

HR plans.

Combining methods

Using a mix of quantitative and qualitative techniques can improve forecasting accuracy and
provide a more complete view of HR demand. For instance, a company might use trend and
ratio analysis for a general overview, regression to find relationships, and cohort analysis for
retention patterns.
Importance of HRP forecasting

Effective HRP forecasting offers several benefits:

 Strategic Alignment: Ensures HR aligns with business goals.

 Cost Optimization: Prevents over- or understaffing.

 Talent Management: Enables proactive talent acquisition.

 Risk Mitigation: Anticipates challenges and allows for contingency planning.

 Competitive Advantage: Improves adaptability.

HR forecasting helps organizations anticipate future staffing needs to achieve goals and
maintain a competitive edge.

2.5 HR Retention Strategies

Retention strategies focus on keeping valuable employees by:

 Offering competitive compensation and benefits.

 Providing career development and training opportunities.

 Ensuring a positive work environment and culture.

 Implementing flexible work arrangements.

 Recognizing and rewarding employee contributions.

 Promoting work-life balance.

Example:
Microsoft invests heavily in employee development programs, flexible work policies, and
equity rewards to retain top talent in a competitive tech market.

1. Foster a positive workplace culture

  Cultivate an environment that fosters open communication, collaboration, respect,
and inclusivity.

 Ensure leaders model core values and build trust-based relationships with staff.

 Support employee well-being through initiatives like wellness programs and stress
management resources.

 Benefit: Increased morale, stronger teamwork, and a sense of belonging among

employees.

2. Offer competitive compensation and benefits

 Regularly benchmark salaries and benefits against market and industry standards.

 Provide a robust benefits package that includes healthcare, retirement plans, paid
time off, and flexible work arrangements.

 Consider perks like tuition reimbursement, wellness programs, and childcare

assistance to enhance job satisfaction.

 Benefit: Attracting and retaining top talent, increased job satisfaction, and reduced
financial stress for employees.

3. Provide career growth and development opportunities

 Create clear career paths within the organization, outlining opportunities for
advancement and growth.

 Invest in training and development programs to help employees acquire new skills
and stay competitive.

 Implement mentorship programs to guide employees in their career journeys and

foster knowledge transfer.

 Benefit: Enhanced skill sets, increased engagement, greater job satisfaction, and a
clearer path for employees to see their future within the company.

4. Prioritize employee well-being and work-life balance

  Encourage employees to take breaks and utilize their vacation time to prevent
burnout.

 Implement flexible work arrangements like remote or hybrid work options, flexible
hours, and compressed workweeks.

 Offer resources for mental health support and promote a culture that respects
personal time.

 Benefit: Reduced stress and burnout, improved morale, and increased loyalty to the
company.

5. Recognize and reward employee contributions

 Establish a culture of appreciation through regular recognition, praise, and incentives

for hard work.

 Implement formal and informal recognition programs, including bonuses, awards, or

shout-outs in team meetings.

 Benefit: Boosted morale, increased motivation, and higher engagement levels,

making employees feel valued and acknowledged for their work.

6. Improve the onboarding process

 Develop a structured onboarding process that extends beyond the first day or week,
providing new hires with comprehensive support and information.

 Introduce new hires to their team members, assign mentors, and ensure they feel
connected to the company culture from the start.

 Benefit: Increased new hire retention and faster integration into the company and its
operations.

7. Foster open and transparent communication

 Communicate clearly and often with employees about company strategy, goals, and
any upcoming changes.
  Establish channels for two-way communication, such as regular check-ins, skip-level
meetings, and anonymous feedback surveys.

 Benefit: Increased trust, reduced uncertainty, and a greater sense of belonging and
value among employees.

By strategically implementing these HR retention strategies, organizations can create a

workplace where employees feel valued, supported, and motivated, leading to a more
engaged and committed workforce and ultimately contributing to long-term business
success.

2.6 Performance Appraisal – Objectives

Performance appraisal is a systematic evaluation of employee performance.

Objectives:

 Provide feedback on job performance.

 Identify training and development needs.

 Assist in promotion and salary decisions.

 Motivate employees by recognizing achievements.

 Align individual goals with organizational objectives.

Process of Performance Appraisal:

 Setting performance standards.

 Communicating expectations.

 Measuring actual performance.

 Comparing performance with standards.

 Providing feedback.

 Taking corrective actions.

Example:
At Amazon, performance appraisals are continuous, emphasizing goal alignment and
feedback to boost productivity and innovation.

2.7 Traditional Methods of Performance Appraisal

 Ranking Method: Employees ranked from best to worst.

 Rating Scales: Evaluators rate employees on specific traits.

 Checklist: Yes/No responses about employee traits.

 Critical Incident Method: Records of effective or ineffective behaviours.

 Essay Method: Detailed narrative about performance.

Limitations: Subjective, bias-prone, may not provide development feedback.

Example:
Traditional rating scales are still used in General Electric’s earlier appraisal systems, though
they have evolved to more comprehensive approaches.

1. Ranking Method: This is one of the oldest methods, where employees are ranked from
best to worst based on overall performance. It's simple but can be subjective and doesn't
account for individual strengths and weaknesses.

2. Paired Comparison Method: Each employee is compared with every other employee on a
one-on-one basis for a specific trait. This method is more detailed than simple ranking but
can become cumbersome with a large number of employees.

3. Graphic Rating Scale Method: This method uses a numerical scale (e.g., 1 to 5) or
descriptive terms (e.g., poor, average, good) to rate employees on various performance
factors. It's easy to implement but can be subjective.

4. Checklist Method: A list of predetermined traits or behaviours is used to assess employee

performance. This method is straightforward but may not provide detailed feedback for
improvement.
5. Critical Incident Method: Supervisors document specific examples of positive and
negative employee behaviours throughout the appraisal period. This method provides
concrete examples but requires consistent record-keeping.

6. Essay Method: The supervisor writes a narrative report evaluating the employee's
performance, providing a comprehensive assessment. This method allows for detailed
feedback but can be time-consuming and subjective.

7. Confidential Report: This method, often used in government settings, involves a

supervisor providing a written evaluation of an employee's strengths, weaknesses, and other
relevant factors. It's often used for promotion and transfer decisions.

8. Management by Objectives (MBO): While sometimes considered a modern method,

MBO can also be a traditional approach where employees and supervisors collaboratively
set goals, and performance is evaluated against those objectives.

9. Forced Distribution: This method requires supervisors to categorize employees into

predefined performance categories (e.g., top 20%, middle 70%, bottom 10%). It can help
mitigate the "central tendency bias" where supervisors rate most employees highly.

10. Field Review Method: The rater interviews the supervisor about the subordinate's
performance and provides an evaluation based on that information.

11. Cost Accounting Method: This method translates employee performance into financial
terms, calculating the costs associated with retaining an employee against their economic
output.

2.8 Modern Methods of Performance Appraisal

 360-Degree Feedback: Feedback from supervisors, peers, subordinates, and

customers.

 Management by Objectives (MBO): Setting and reviewing clear objectives.

 Behaviourally Anchored Rating Scales (BARS): Combines qualitative and quantitative

measures.
  Psychological Appraisals: Assess potential for future roles.

 Self-Assessment: Employees evaluate their own performance.

Example:
Deloitte uses 360-degree feedback extensively to provide a holistic performance review that
encourages continuous improvement.

1. 360-degree feedback

 Collects feedback from various sources, including supervisors, peers, subordinates,

and sometimes even customers or external stakeholders.

 Provides a holistic and well-rounded view of an employee's performance,

highlighting strengths and areas for development that may be missed by a single
supervisor's perspective.

 Enhances self-awareness, fosters open communication, and promotes a culture of

continuous improvement.

 However, implementing it requires careful planning and execution, and ensuring

confidentiality and trust among participants is crucial.

2. Management by Objectives (MBO)

 Managers and employees collaboratively set specific, measurable, achievable,

relevant, and time-bound (SMART) goals.

 Performance is assessed based on the extent to which these predefined goals are
achieved, fostering a sense of ownership and accountability.

 Regular check-ins and feedback sessions are conducted to monitor progress, address
challenges, and adjust goals as needed.

 MBO excels at aligning individual goals with organizational objectives, driving clarity
and focus.

3. Behaviourally Anchored Rating Scales (BARS)

BARS uses rating scales combined with specific behavioural examples to illustrate different
performance levels. This method focuses on observable behaviours rather than subjective
traits, aiming for more objective and fair evaluations. While it can provide clear expectations
and feedback, developing and implementing BARS can be time-consuming and requires
expertise.

4. Continuous feedback systems

This approach moves away from traditional annual reviews to provide regular, real-time
feedback and ongoing conversations between managers and employees. Technology is often
used to facilitate immediate feedback and track progress. Continuous feedback promotes
ongoing learning, allows for timely adjustments, and can increase employee engagement
and job satisfaction.

5. Peer reviews

Peer reviews involve colleagues evaluating each other, offering a comprehensive perspective
on teamwork and collaboration. This supplements managerial assessments and can foster
accountability and better teamwork. Clear guidelines and anonymity are important for fair
and unbiased peer review processes.

6. Objectives and Key Results (OKRs)

OKRs are a collaborative framework for setting and tracking goals that align individual
objectives with organizational goals. The method emphasizes ambitious objectives and
measurable results to provide clarity, foster engagement, and increase transparency.

7. Assessment center method

This method evaluates both current and future job performance using simulations,
exercises, and work samples over a period of time. It assesses various abilities like
interpersonal skills and planning, and can help identify potential leaders and training needs.

8. Human resource accounting method

This approach evaluates employee performance financially by comparing retention costs

with contributions to the organization. It considers factors like work quality and overhead to
determine an employee's value.
In summary, modern performance appraisal methods aim to create a supportive
environment for continuous learning and growth. They address the limitations of infrequent
reviews by providing timely feedback, promoting transparency, and linking individual
development to organizational success.

2.9 Limitations of Performance Appraisal – 360 Degree Performance Appraisal

Limitations:

 Time-consuming and costly.

 Potential for bias from raters.

 Confidentiality and anonymity challenges.

 Overload of feedback can confuse employees.

 May cause conflicts if feedback is negative or contradictory.

360-Degree Appraisal:
While comprehensive, it requires careful implementation and training to be effective.

Example:
IBM initially faced challenges implementing 360-degree feedback due to inconsistent rater
training but overcame them by standardizing procedures and emphasizing constructive
feedback.

360 degree and 720 degree appraisal

360-degree and 720-degree performance appraisal: understanding the differences

Both 360-degree and 720-degree appraisals are multi-rater feedback systems designed to
provide employees with comprehensive evaluations of their performance and behavior from
various sources. The key difference lies in the number of appraisal cycles involved and,
consequently, the depth of the feedback process.

360-degree performance appraisal

The 360-degree performance appraisal, often called multi-rater feedback, gathers feedback
from an employee's supervisors, peers, subordinates or direct reports, and often external
stakeholders like clients or customers. It also typically includes a self-assessment by the
employee. This provides a "full circle" or well-rounded view of an individual's strengths and
weaknesses from multiple perspectives.

Key aspects of 360-degree appraisal

 Multi-source Feedback: Collects input from various individuals who regularly interact
with the employee.

 Focus on Development: Primarily used for employee development, helping

individuals understand how others perceive their performance and identify areas for
improvement.

 Identifies Training Needs: Can help pinpoint skill gaps and determine appropriate
training or development programs.

 Enhances Self-Awareness: Provides individuals with a clearer understanding of their

impact on colleagues and the organization.

 Anonymity: Feedback is usually anonymous to encourage honesty and reduce fear of

retaliation.

720-degree performance appraisal

The 720-degree appraisal takes the 360-degree model a step further by implementing two
rounds or cycles of the feedback process over a period of time. Essentially, it's a 360-degree
appraisal conducted twice.

Key aspects of 720-degree appraisal

 Dual Appraisal Cycles: Involves two separate rounds of 360-degree feedback, often
with a period of 9-12 months in between.

 Focus on Growth and Development: The primary goal is to assess employee growth
and improvement over time by comparing the feedback from the two rounds.
  Feedback and Action Planning: The initial feedback is used to create development
plans, and the second round evaluates the success of these plans and identifies
further areas for improvement.

 More In-depth Analysis: The repeated feedback cycles allow for a deeper
understanding of an employee's trajectory and development needs,

 Customer-Centric: Some definitions suggest the 720-degree approach places a

stronger emphasis on gathering feedback from customers, both internal and
external, on various levels of management within the organization.

Key differences summarized

Feature 360-Degree Appraisal 720-Degree Appraisal

Feedback Self, superiors, peers, subordinates, Self, superiors, peers, subordinates,

Source (sometimes clients/customers, potentially other
s clients/customers) stakeholders

Appraisal One cycle Two cycles over a predetermined period

Cycles (e.g., 9-12 months)

Primary Focus Providing a holistic snapshot of Measuring growth and improvement over
performance and identifying areas time and assessing the effectiveness of
for development development initiatives

Complexity & Can be time-consuming, potential More time-consuming and resource-

Resources for bias intensive due to the dual cycle

In conclusion, both 360-degree and 720-degree appraisals offer valuable insights into
employee performance from multiple perspectives. The 360-degree approach provides a
snapshot for immediate development needs, while the 720-degree method offers a more in-
depth, longitudinal analysis of growth, development, and progress toward goals. The choice
between the two depends on the organization's specific goals, resources, and commitment
to continuous employee development.

AI responses may include mistakes.

UNIT-III- HUMAN RESOURSE FUNCTIONS

3.1 Recruitment – Factors Affecting Recruitment

Recruitment is the process of attracting qualified candidates for job vacancies. Factors
affecting recruitment include:

 Organizational Policies: Hiring standards and diversity policies shape recruitment.

 Job Requirements: Skills, experience, and qualifications needed.

 Labor Market Conditions: Availability of skilled candidates influences recruitment

success.

 Economic Environment: Economic downturns reduce hiring; booms increase

demand.

 Employer Reputation: Strong brand attracts more applicants.

 Technological Changes: Automation may reduce demand for certain roles or create
new jobs.

 Legal Factors: Labor laws impact recruitment processes and eligibility.

 Cost of Recruitment: Budget allocated influences sourcing methods.

Example:
Tata Consultancy Services (TCS) adapts recruitment strategies based on market demand for
IT skills, employer branding, and government regulations on employment.

3.2 Sources of Recruitment

Recruitment sources can be internal or external:

  Internal Sources: Promotions, transfers, employee referrals.

 External Sources: Campus recruitment, job portals, recruitment agencies, walk-ins,

social media platforms like LinkedIn.

Internal recruitment saves cost and time, while external recruitment brings fresh skills.

Example:
Infosys uses campus recruitment aggressively in engineering colleges across India and
supplements with lateral hiring from external agencies for experienced roles.

3.3 Process of Selection

Selection is a multi-step process:

 Screening: Reviewing applications for basic qualifications.

 Preliminary Interview: Initial shortlisting by HR.

 Testing: Aptitude, technical, or psychometric tests.

 Final Interview: In-depth discussion with department heads.

 Reference Checks: Verifying past employment and credentials.

 Job Offer: Formal offer with terms and conditions.

 Medical Examination: Health check to ensure fitness.

Example:
At Wipro, the selection process includes online aptitude tests, technical interviews, and HR
interviews to ensure candidates meet company standards.

3.4 Types of Training

Training develops employee skills and knowledge:

 Orientation Training: Introduction to company policies and culture.

 On-the-Job Training: Learning while performing the actual job.

  Off-the-Job Training: Workshops, seminars, or classroom training.

 Technical Training: Skill development for specific tools or technology.

 Soft Skills Training: Communication, leadership, and teamwork.

 Safety Training: Workplace safety and emergency procedures.

Example:
Mahindra & Mahindra invests heavily in technical training for engineers and safety training
for factory workers to maintain high standards.

1.Orientation Training: This is a crucial first step for new employees, introducing them to the
company culture, policies, and procedures.

2. Onboarding Training: A more in-depth process that equips new hires with the skills and
knowledge to become effective contributors to the organization.

3. Technical Training: Focuses on developing job-specific skills, often involving the use of
tools, equipment, or software.

4. Soft Skills Training: Aims to improve interpersonal abilities like communication,

teamwork, and problem-solving, which are essential for success in any role.

5. Compliance Training: Ensures employees understand and adhere to legal and regulatory
requirements relevant to their roles.

6. Leadership Training: Develops leadership skills in managers and supervisors, enabling

them to motivate and guide their teams effectively.

7. Product Training: Common in product-based companies, this training helps employees

understand and sell the company's products.

8. Safety Training: Crucial in industries with potential hazards, this training focuses on
preventing accidents and ensuring a safe work environment.

9. Refresher Training: Helps existing employees stay updated with the latest developments
in their field and maintain their skills.
10. E-Learning/Online Training: A flexible and cost-effective method for delivering training
content, often used for various types of training.

11. On-the-Job Training: Employees learn by performing their job duties under the guidance
of experienced colleagues or supervisors.

12. Off-the-Job Training: Conducted away from the workplace, this can include workshops,
seminars, simulations, and case studies.

13. Coaching and Mentoring: Provide personalized guidance and support to employees,
helping them develop specific skills or prepare for future roles.

14. Promotional Training: Prepares employees for advancement to higher-level positions.

The specific types of training offered by an organization will depend on its needs, industry,
and employee roles.

3.5 Employee Relations

Employee relations focus on maintaining positive employer-employee interactions to

enhance productivity and reduce conflicts.

 Communication: Open channels between management and employees.

 Conflict Resolution: Handling grievances and disputes promptly.

 Employee Engagement: Activities and programs to increase morale.

 Compliance: Ensuring workplace laws and regulations are followed.

 Trade Unions: Managing relationships and negotiations.

Example:
Steel Authority of India Limited (SAIL) maintains strong employee relations through regular
dialogues with unions and welfare initiatives.

The role of employee relations within HR

Employee relations is typically a specific discipline within the broader Human Resources (HR)
function. While HR covers the entire employee lifecycle (recruitment, compensation,
benefits, training, etc.), ER focuses more specifically on the quality of workplace interactions,
communication patterns, and conflict resolution approaches that shape the overall
employee experience.

However, the distinction can sometimes be blurred, especially in smaller organizations

where HR generalists may handle both responsibilities. In larger companies, dedicated ER
teams or specialists may exist, focusing on:

 Policy Development and Implementation: HR and ER professionals collaborate on

creating and updating policies related to employee behavior, conduct, and conflict
resolution, ensuring fairness and legal compliance.

 Conflict Resolution and Mediation: ER specialists often act as mediators in disputes

between employees, or between employees and management, working to find fair
and impartial solutions.

 Investigations: ER professionals conduct thorough and unbiased investigations into

complaints, such as harassment or discrimination, maintaining confidentiality and
documenting findings.

 Employee Engagement: ER plays a role in fostering engagement through initiatives

like surveys, feedback mechanisms, and recognition programs.

 Compliance: HR and ER work together to ensure adherence to labor laws,

regulations, and employment contracts, mitigating legal risks.

 Communication: ER facilitates open and honest communication between

management and employees through various channels, encouraging feedback and
building trust.

 Training and Development: Investing in employee growth and training demonstrates

a commitment to their well-being and enhances skills, leading to improved
satisfaction and loyalty.

Benefits of strong employee relations

Investing in strong employee relations yields numerous benefits for organizations:

  Enhanced Employee Productivity: When employees feel valued and heard, their
motivation and engagement increase, leading to higher performance and output.

 Reduced Employee Turnover: A positive work environment with fair treatment and
open communication encourages employees to stay, saving on recruitment and
training costs.

 Improved Employee Morale: When employees feel supported and respected, their
morale gets a boost, contributing to a vibrant work culture and better outcomes.

 Increased Employee Loyalty: Employees who feel connected to their colleagues and
managers are more likely to be loyal to the company and committed to its goals.

 Effective Conflict Resolution: Open communication and trust allow for prompt and
constructive resolution of conflicts before they escalate.

 Better Employee Health and Well-being: A workplace that prioritizes well-being

leads to reduced absenteeism and improved overall health.

 Increased Organizational Reputation: A positive employer brand attracts top talent

and enhances public perception.

 Enhanced Employer-Employee Communication: Open communication fosters trust

and ensures a free flow of information, feedback, and ideas.

 Boost Employee Satisfaction: When employees feel valued and heard, they
experience greater job satisfaction and are more motivated to perform.

Best practices for managing employee relations

To foster a positive work environment and strengthen employee relations, organizations

should implement the following strategies:

 Promote Open Communication: Establish clear and frequent communication

channels, encourage employees to voice concerns and suggestions, and provide
regular feedback.
  Show Appreciation and Recognition: Regularly acknowledge and reward employees
for their contributions and achievements, fostering a culture of appreciation and
motivation.

 Invest in Employee Development and Wellness: Offer training and development

opportunities, mentorship programs, and wellness initiatives to support employees'
personal and professional growth.

 Foster an Inclusive Company Culture: Create an environment that welcomes and

celebrates diversity, promotes equality, and respects individual differences.

 Deal with Disputes and Negativity Quickly: Address conflicts or disagreements

between colleagues and negative behavior promptly and professionally to maintain
harmony and productivity.

 Train Managers in Coaching and Counselling: Equip managers with the skills to
effectively coach and counsel employees, clarifying expectations, identifying hurdles,
and setting goals collaboratively.

 Conduct Regular Meetings and Check-ins: Implement routine one-on-one meetings

to discuss challenges, progress, and career aspirations, fostering trust and rapport.

 Document Policies and Procedures Clearly: Create well-defined policies and

employee handbooks that clearly outline expectations, conduct, and resolution
procedures.

 Ensure Legal Compliance: Regularly review and update policies to comply with all
applicable labour laws and regulations.

In conclusion, effective employee relations are crucial for building a thriving workplace
where employees feel valued, respected, and motivated to contribute their best. By
prioritizing open communication, fair practices, conflict resolution, and employee
development, organizations can cultivate a positive work environment, improve productivity,
and achieve long-term success

3.6 Compensation – Factors Affecting Compensation Structure

Factors affecting compensation include:

 Job Nature: Complexity and responsibility level.

 Industry Standards: Market salary rates.

 Employee Experience and Skills: Higher skills demand better pay.

 Company’s Financial Position: Ability to pay.

 Government Regulations: Minimum wages and labour laws.

 Geographical Location: Cost of living differences.

 Performance: Incentives based on appraisal results.

Example:
Reliance Industries offers competitive salaries with performance bonuses to retain skilled
employees in a competitive energy sector.

Internal factors

These factors are unique to an organization and impact its ability to design a compensation
system.

1. Organizational Strategy and Culture: The compensation structure should align with
the organization's strategic goals and desired culture. For instance, a company
focused on innovation might use variable pay and equity compensation to encourage
risk-taking and align employee interests with company growth. In contrast, a
company prioritizing stability might emphasize a fixed salary structure with fewer
variable components.

2. Job Evaluation and Design: This involves determining the relative worth of each job
within the organization. Factors like required skills, responsibilities, decision-making
authority, and working conditions are assessed to create a hierarchy of jobs and
establish pay grades.
 3. Performance and Merit: Organizations often reward employees based on their
performance and contribution to the company's success. This can involve
performance-based bonuses, incentives, or merit pay increases tied to individual or
team achievements. Performance metrics, which can be more accurately measured
using digital tools, play a key role in this system.

4. Ability to Pay: The financial health and profitability of an organization significantly

influence the compensation it can offer. Companies with higher profits can generally
afford to provide more attractive compensation packages, while those facing
financial constraints might need to prioritize cost control.

5. Internal Equity: Ensuring fairness in compensation across similar roles and levels
within the organization is crucial for employee satisfaction and motivation.
Employees in comparable positions with similar qualifications should receive
comparable pay,

6. Budget Constraints: Organizations must allocate resources effectively and manage

compensation costs to remain financially sustainable. This requires a balance
between offering competitive packages and staying within the allocated budget.

External factors

These external forces operating outside the organization also influence compensation levels
and structures.

1. Market Conditions and Industry Trends: Organizations need to research prevailing

market rates for similar roles in their industry and geographical location. This ensures
that the compensation offered is competitive enough to attract and retain top talent.

2. Demand and Supply of Labor: If there's a shortage of qualified workers for a specific
role, organizations may need to offer higher compensation to attract and retain
talent. Conversely, an oversupply of labour can lead to lower or stagnant wages.

3. Geographical Location and Cost of Living: Compensation often varies depending on

the geographical location of the job, taking into account differences in the cost of
living. Employees in areas with a higher cost of living may receive higher salaries to
maintain a reasonable standard of living.
 4. Government Regulations and Legal Requirements: Organizations must comply with
minimum wage laws, overtime regulations, anti-discrimination laws, and other legal
requirements that govern compensation practices. This ensures fair and equitable
pay practices and helps avoid legal issues.

5. Labor Unions and Collective Bargaining: Unions play a role in negotiating wages and
benefits for their members, influencing the overall compensation structure.

6. Economic Conditions: Economic factors like inflation, recession, or economic growth

can impact compensation decisions. During economic downturns, organizations may
freeze or reduce salaries, while in a booming economy, they might increase
compensation to attract and retain employees.

By carefully considering and balancing these internal and external factors, organizations can
develop compensation structures that are not only competitive and compliant with
regulations but also align with their strategic goals, foster a positive culture, and drive
overall business success.

3.7 Promotions and Transfers - Separations

 Promotions: Moving employees to higher positions based on merit and experience.

 Transfers: Shifting employees to different roles or locations for organizational needs

or employee development.

 Separations: Voluntary or involuntary exit of employees through resignation,

retirement, or termination.

Proper handling ensures motivation, minimizes conflicts, and maintains workforce stability.

Example:
Larsen & Toubro (L&T) uses structured promotion policies and lateral transfers to develop
managerial talent and manage project demands.

Promotions, transfers, and separations in human resources

Promotions, transfers, and separations represent different forms of employee movement
within and out of an organization. Managing these processes effectively is crucial for
maintaining employee morale, ensuring organizational effectiveness, and complying with
legal requirements.

Promotions

A promotion is an upward movement of an employee in an organization to a job that carries

greater status, responsibility, and typically, increased salary.

Principles of promotion

 Fairness and Transparency: Promotions should be based on clear, communicated

criteria (seniority, merit, or a combination) to ensure fairness and prevent
frustration.

 Job Analysis and Performance Appraisal: Promotions should follow a thorough job
analysis to understand the requirements of the new role and assess the employee's
past performance and potential to meet those requirements.

 Balancing Internal and External Talent: Organizations must decide whether to fill
higher positions by promoting existing employees or recruiting from outside to
ensure a balance of experience and fresh perspectives.

Advantages of promotions

 Employee Motivation and Retention: Promotions provide incentives for employees

to perform well and advance their careers, leading to increased satisfaction and
loyalty.

 Improved Organizational Effectiveness: Placing competent employees in higher-level

positions can enhance overall productivity and efficiency.

 Internal Recruitment Source: Promotions offer a readily available talent pool,

reducing recruitment costs and time.

Disadvantages of promotions
  Potential for Inbreeding: Overreliance on internal promotions can lead to a lack of
new ideas and perspectives.

 Demotivation of Younger Employees: Merit-based promotions might demotivate

younger or less experienced employees who may feel overlooked.

 Difficulty in Measuring Merit: Objectively assessing an employee's merit can be

challenging and prone to biases.

Transfers

A transfer involves a lateral movement of an employee within the organization, usually to a

different job, department, or location, without a change in salary or status.

Types of transfers

 Production Transfers: Moving employees from declining areas to those with

increasing needs to avoid layoffs.

 Replacement Transfers: Transferring a long-service employee to a similar job,

replacing a shorter-service employee, often during organizational decline.

 Versatility Transfers (Job Rotation): Shifting employees between jobs to increase

their versatility and broaden their experience.

 Remedial Transfers: Relocating employees due to initial placement errors, health

issues, or personality clashes.

Benefits of transfers

 Skill Development: Transfers can help employees acquire new skills and knowledge
by exposing them to diverse tasks and environments.

 Remedying Faulty Placements: Transfers can correct mismatches between an

employee's skills or personality and their current role.

 Increased Employee Satisfaction: Favourable consideration of employee-initiated

transfer requests can enhance satisfaction and morale.

Problems with transfers

  Inconvenience for Employees: Transfers can cause disruption to employees' personal
lives, especially if they involve relocation.

 Potential for Poor Fit: Employees might not adapt well to the new environment or
role, impacting productivity and morale.

 Shifting Experienced Hands: Moving experienced employees can temporarily affect

the productivity of the department they leave.

Separations

Employee separation refers to the ending of an employee's employment with an

organization, which can be either voluntary or involuntary.

Voluntary separations

These occur when the employee chooses to leave the organization.

 Resignation: An employee quits their job for various reasons, including better
opportunities, dissatisfaction with the current role, or personal reasons.

 Retirement: An employee leaves the organization after reaching a certain age or

length of service, often associated with benefits like pensions and gratuity.

 Voluntary Retirement Scheme (VRS): Organizations offer incentives for employees to

voluntarily retire, often to reduce surplus staff or cut costs.

Involuntary separations

These occur when the employer initiates the separation, usually for reasons related to
economic necessity, poor performance, or employee misconduct.

 Dismissal/Discharge: Termination of employment due to violation of company rules,

misconduct, or inadequate performance.

 Layoff: Temporary or indefinite separation due to economic reasons, such as

financial difficulties, decreased demand, or restructuring.

 Retrenchment: Permanent termination of employment due to economic reasons like

redundancy, automation, or closure of a department.
  Organizational Restructuring/Downsizing: Changes in the organization's structure
that eliminate positions, leading to involuntary separations for affected employees.

Role of HR in separations

HR plays a critical role in managing employee separations effectively by:

 Ensuring Legal Compliance: Adhering to labour laws and regulations related to

termination, layoffs, and benefits.

 Providing Support and Communication: Offering counselling, outplacement services,

and communicating with remaining employees to maintain morale and address
concerns.

 Conducting Exit Interviews: Gathering valuable feedback from departing employees

to understand reasons for turnover and identify areas for improvement.

 Managing Documentation and Procedures: Ensuring all necessary paperwork,

agreements, and notices are completed accurately and ethically.

In conclusion, promotions, transfers, and separations are significant aspects of human

resource management that require careful planning, execution, and communication. By
effectively managing these processes, organizations can optimize talent utilization, enhance
employee satisfaction, and maintain a stable and productive workforce

3.8 Employee Relations

Employee relations emphasize harmonious relationships through:

 Effective Communication: Regular updates and feedback.

 Grievance Redressal: Systems for employees to voice concerns.

 Participation: Involving employees in decision-making.

 Employee Welfare: Health, safety, and recreation facilities.

Good relations reduce absenteeism and improve job satisfaction.

Example:
BHEL (Bharat Heavy Electricals Limited) encourages employee participation in safety
committees and grievance forums, fostering mutual trust.

3.9 HRIS – Role of HRIS in Payroll

HRIS (Human Resource Information System) automates HR functions, particularly payroll:

 Accurate Salary Calculations: Including taxes, bonuses, and deductions.

 Time and Attendance Tracking: Ensures correct wage payments.

 Compliance: Generates reports for statutory requirements like PF, ESI.

 Employee Self-Service: Access payslips and tax documents online.

 Data Security: Protects sensitive payroll information.

 Efficiency: Reduces manual errors and administrative time.

Example:
HCL Technologies employs HRIS systems to manage payroll for thousands of employees
globally, ensuring timely and accurate salary disbursal.

A Human Resources Information System (HRIS) plays a critical role in streamlining and
automating payroll processes within an organization.

Here's how HRIS contributes to efficient payroll management:

 Centralized Employee Data: An HRIS acts as a single, centralized database for all
employee information, including salaries, benefits, tax details, and time and
attendance data. This ensures that payroll calculations are based on accurate and up-
to-date information, minimizing errors and discrepancies.

 Automated Payroll Processing: HRIS automates key payroll tasks like calculating
wages, deductions, and tax withholdings. This significantly reduces manual effort,
saves time, and minimizes the potential for human error in processing payroll.
  Time and Attendance Integration: Many HRIS systems integrate with time and
attendance tracking modules. This ensures that accurate work hours are
automatically captured and fed into the payroll system, leading to precise pay
calculations and reduced discrepancies.

 Benefits Administration: HRIS facilitates the management of employee benefits,

including health insurance, retirement plans, and other deductions. It automates the
enrolment process and ensures accurate deductions are applied for each employee,
simplifying benefits management and compliance.

 Compliance and Tax Management: HRIS helps organizations stay compliant with
various labor laws and tax regulations, both local and national. It can automate the
generation of reports that meet statutory requirements, submit withholdings on
time, and handle the creation of tax forms.

 Employee Self-Service: Many HRIS systems offer employee self-service portals where
employees can access their pay stubs, update personal information, and manage
their benefits online. This reduces the workload on HR and payroll staff and
enhances employee satisfaction by providing easy access to relevant information.

 Reporting and Analytics: HRIS provides robust reporting and analytics capabilities.
This allows organizations to generate detailed payroll reports, providing insights into
labor costs, tax liabilities, and compliance status. These reports are crucial for making
informed business decisions related to workforce management and budgeting.

In essence, HRIS transforms payroll from a manual, time-consuming process into an

automated, efficient, and compliant function, freeing up valuable HR and finance resources
to focus on strategic initiatives.

UNIT-IV- QUALITY OF WORK LIFE

4.1 Quality of Work Life (QWL) – Concept – Approaches to QWL

Concept:
Quality of Work Life (QWL) refers to the overall quality of an employee’s experience at the
workplace, focusing on job satisfaction, work conditions, and work-life balance. It aims to
enhance employee well-being and productivity.

Approaches:

 Human Relations Approach: Emphasizes employee involvement and communication.

 Job Design Approach: Focuses on enriching job roles to reduce monotony.

 Participative Management: Involves employees in decision-making.

 Work-Life Balance: Encouraging flexible hours and family-friendly policies.

Example:
Unilever UK promotes QWL through flexible working hours and wellness programs, boosting
employee morale and retention.

Quality of Work Life (QWL) – Concept – Approaches to QWL

Quality of Work Life (QWL): Concept and Approaches

Quality of Work Life (QWL) refers to the overall environment in which employees work, their
perceptions of their jobs, and the degree to which they are satisfied with their work-life
balance. It encompasses various factors that contribute to creating a positive and productive
work environment, balancing an employee's personal and professional life, and promoting
their overall well-being. QWL emphasizes creating a work environment that values and
respects employees' contributions, provides opportunities for personal and professional
growth, and enables them to balance their work and personal life.

Key objectives of QWL

 Enhancing productivity and innovation.

 Improving job satisfaction and personal goals.

 Reducing absenteeism and turnover.

 Improving management-employee relationships.

 Boosting brand image and reputation.

Factors influencing QWL

Several factors can affect an employee's perception of QWL, including:

 Work environment: Comfortable and safe conditions, including aspects like lighting,
temperature, and ergonomics, promote well-being and job satisfaction.

 Work-life balance: Flexible schedules and opportunities for personal time help
maintain balance and prevent stress and burnout.

 Recognition and rewards: Acknowledging employee contributions and fair

compensation boost morale and motivation.

 Opportunities for growth: Providing avenues for career development and personal
growth through training and learning opportunities is crucial.

 Effective communication: Open communication channels ensure better relationships

and a harmonious workplace.

 Relationships: Positive interactions with colleagues and supervisors are crucial for
employee well-being.

 Job Security: A sense of stability in one's role impacts an individual's stress levels and
QWL.

Approaches to QWL

Organizations can improve QWL by implementing various approaches:

 Understanding Employee Needs: Conducting surveys and holding feedback sessions

to grasp employee expectations is a foundational step.

 Encouraging Self-Reflection: Facilitating discussions and workshops helps employees

identify their priorities and make informed decisions about their time and energy
allocation.

 Providing Training and Development: Offering programs and resources for

professional and personal growth enhances employee engagement and fosters
career development.
  Fostering Open Communication: Encouraging dialogue between employees and
management through regular meetings, feedback surveys, and creating a culture
where employees feel comfortable expressing concerns is vital.

 Offering Flexible Work Options: Implementing policies such as remote work,

adjustable working hours, and family leave promotes work-life balance.

 Promoting a Healthy Work Environment: Ensuring a clean, safe, and comfortable

workplace, including ergonomic furniture and mental health support programs, is
essential.

 Recognizing and Rewarding Employees: Employee recognition and reward programs

help employees feel valued for their hard work and contributions.

 Promoting Participative Management and Professional Equality : Inclusive

management styles, fostering diversity, and implementing policies that encourage
professional equality strengthen commitment and team cohesion.

 Adopting a Benevolent Management Style: Striking a balance between support and

expectations, leading by example, and offering guidance and help are key elements
of a positive leadership approach.

 Preventing Psychosocial Risks: Implementing a prevention policy that identifies and

addresses work-related stress, internal and external violence, and high workload
reduces burnout and absenteeism.

 Involving Employees and Managers: Fostering a shared responsibility for QWL and
providing opportunities for employees to take ownership of their well-being is critical
for long-term success.

By implementing these approaches, organizations can create a work environment that

supports employee well-being, leading to increased engagement, productivity, and
retention.

4.2 Need & Importance of Workplace Environment

A positive workplace environment:

  Enhances employee motivation and productivity.

 Reduces absenteeism and turnover.

 Encourages creativity and innovation.

 Promotes safety and well-being.

 Builds strong teamwork and communication.

 Supports mental and physical health.

Example:
Siemens UK invests in ergonomic workspaces and green office designs to create a healthy
and productive environment for employees.

1. Enhancing employee well-being

 Improved Mental and Physical Health: A positive work environment reduces stress
and burnout, promoting employee health and reducing absenteeism.

 Work-Life Balance: It fosters work-life balance through flexible arrangements and a

supportive culture, leading to higher job satisfaction.

 Psychological Safety: Employees feel safe to voice concerns and take risks, leading to
innovation and faster adaptation to change.

2. Boosting employee engagement and productivity

 Increased Job Satisfaction: Employees in a positive environment feel valued and

appreciated, leading to greater job satisfaction and happiness.

 Higher Motivation: When employees are happy, they are more motivated and
engaged, contributing more to organizational success.

 Enhanced Productivity: This increased engagement translates directly into higher

productivity and better performance.

3. Fostering a positive company culture

  Attracting and Retaining Top Talent: A positive environment attracts skilled
professionals who value a supportive and respectful atmosphere, reducing turnover
rates.

 Stronger Brand Reputation: A company known for a positive culture attracts top
talent and boosts its reputation, creating a positive image for the organization.

4. Driving collaboration and innovation

 Open Communication and Trust: A positive work environment encourages open

communication and collaboration among employees.

 Enhanced Team Collaboration: Employees who feel valued are more likely to work
together effectively, share knowledge, and achieve common goals.

 Increased Innovation: Openness and a willingness to take risks, encouraged in a

positive environment, can lead to the development of new products, services, and
processes, driving business growth and competitiveness.

5. Improving overall business success

 Customer Satisfaction: Happy and motivated employees are more likely to provide
excellent customer service, contributing to increased customer satisfaction and
loyalty.

 Adaptability and Resilience: A positive work environment equips employees with the
resilience needed to navigate challenges and setbacks, adapting to changes more
smoothly.

 Financial Growth: A positive work environment can ultimately contribute to higher

productivity, reduced turnover costs, and stronger performance, resulting in
increased profitability.

4.3 Stress Management – Meaning – Eustress & Distress

Stress Management involves controlling and reducing stress to maintain physical and mental
health.

 Eustress: Positive stress that motivates and improves performance.

 Distress: Negative stress causing anxiety, reduced efficiency, and health issues.

Effective stress management enhances productivity and job satisfaction.

Example:
BP (British Petroleum) offers stress management workshops and counselling to help
employees deal with work pressures, promoting eustress and minimizing distress.

4.4 Potential Sources of Stressors

 Workload: Excessive or insufficient tasks.

 Role Ambiguity: Unclear job expectations.

 Interpersonal Conflicts: Poor relationships at work.

 Job Insecurity: Fear of layoffs.

 Work-Life Imbalance: Long hours affecting personal life.

 Organizational Change: Restructuring or mergers.

Example:
During restructuring at Volkswagen Germany, employees faced stress from job insecurity
and role changes.

4.5 Consequences of Stress

 Physical Health Issues: Headaches, fatigue, cardiovascular diseases.

 Psychological Problems: Anxiety, depression, burnout.

 Decreased Productivity: Reduced concentration and errors.

 High Absenteeism: Frequent sick leaves.

  Poor Employee Relations: Conflicts and low morale.

Example:
High stress levels at Airbus Europe led to increased absenteeism, prompting the company to
introduce wellness programs.

4.6 Managing Stress – Stress Coping Strategies

 Time Management: Prioritizing tasks effectively.

 Relaxation Techniques: Meditation, yoga.

 Exercise: Physical activity to relieve tension.

 Counselling Services: Professional help for mental health.

 Work Redesign: Balancing workload and roles.

 Support Systems: Peer and management support.

Example:
GlaxoSmithKline (GSK) UK provides employee assistance programs including counselling and
mindfulness sessions.

4.7 Emotional Intelligence – Managing Emotions – IQ vs EQ

 IQ (Intelligence Quotient): Measures cognitive abilities like logic and reasoning.

 EQ (Emotional Quotient): Ability to recognize, understand, and manage emotions in

self and others.

 Managing Emotions: EQ helps in stress management, conflict resolution, and

leadership effectiveness.

High EQ fosters better teamwork and communication.

Example:
Royal Dutch Shell prioritizes EQ in leadership development programs to enhance managerial
effectiveness and employee relations.

Type of ability: Your EQ refers to your emotional abilities and social skills, including cognitive
empathy, emotional regulation, and motivation. Conversely, IQ measures your cognitive and
intellectual skills, like working memory, analytical thinking, and knowledge retention

Emotional intelligence (EQ) refers to the ability to understand and manage one's own
emotions, as well as to recognize, interpret, and influence the emotions of those around
them. It is often contrasted with the intelligence quotient (IQ), a measure of conventional
cognitive intelligence that focuses on logical reasoning, problem-solving, and abstract
thinking. While IQ has traditionally been seen as a key predictor of academic and
professional success, EQ is gaining recognition as equally, if not more, crucial for navigating
complex social interactions, building strong relationships, and achieving overall well-being in
both personal and professional spheres.

What is emotional intelligence (EQ)?

EQ involves skills that allow individuals to perceive, understand, manage, and use emotions
effectively. Key components include self-awareness, self-regulation, motivation, empathy,
and social skills. Self-awareness is recognizing your own emotions and triggers. Self-
regulation is managing emotions and adapting behavior. Motivation is the intrinsic drive to
reach goals. Empathy is understanding others' emotions. Social skills involve managing
relationships.

Managing emotions with emotional intelligence

Emotional intelligence helps in managing emotions by:

 Self-Awareness: Recognizing and understanding your emotions and their triggers.

 Self-Regulation: Using techniques like deep breathing or mindfulness to manage

emotional responses.

 Developing Resilience: Building the ability to recover from challenges and maintain a
positive outlook.
IQ vs EQ

IQ measures cognitive abilities like logic and problem-solving, while EQ focuses on

understanding and managing emotions and building relationships. While IQ can aid in
academic and technical fields, EQ is essential for social interactions and personal well-being.
Some research suggests EQ may be a better predictor of effective teamwork and leadership
than IQ.

The importance of emotional intelligence

Developing EQ is vital for personal and professional success. It contributes to:

 Stronger Relationships: Improving communication and trust.

 Effective Leadership: Enabling leaders to inspire and understand their teams.

 Improved Decision-Making: Helping to balance emotions and logic.

 Enhanced Mental Health and Well-being: Assisting in managing stress and other
negative emotions.

In summary, while IQ is important, EQ is crucial for navigating social complexities, building

relationships, and achieving success in life. Developing EQ can enhance interpersonal skills
and lead to a more balanced life.

4.8 Cross Culture and Adaptability in MNC’s Environment

 Cross-Culture: Understanding and respecting diverse cultural backgrounds.

 Adaptability: Flexibility to adjust behaviours and work styles.

 Importance: Facilitates collaboration, reduces conflicts, and improves global

teamwork.

 Training: Cultural sensitivity and language training are essential.

Example:
Unilever Europe runs cross-cultural training to help employees adapt to multinational
teams, improving cooperation and productivity.

Cross Culture and Adaptability in MNC’s Environment

Cross-cultural adaptability in multinational corporations (MNCs)

In today's globalized business environment, multinational corporations frequently operate

across diverse cultural landscapes. Navigating these complexities successfully is crucial for
achieving organizational effectiveness and maintaining a competitive advantage.

Here's why cross-cultural adaptability is so vital for MNCs:

Benefits

Cross-cultural adaptability offers several key benefits for MNCs:

 Enhanced Innovation: Diverse teams contribute varied perspectives, promoting

creativity and problem-solving. A McKinsey report suggests that companies with
diverse executive teams are more likely to have higher profitability.

 Market Expansion: Understanding and respecting different cultures is vital for

successful international market expansion. Tailoring offerings to local needs can
boost sales, as seen with Starbucks in China.

 Improved Communication and Collaboration: Effective cross-cultural management

helps bridge gaps in language and communication styles, improving teamwork and
decision-making.

 Boosted Employee Engagement and Satisfaction: An inclusive workplace increases

employee satisfaction and reduces turnover.

 Adaptation to Local Market Dynamics: Success allows MNCs to tailor strategies to

local market conditions, enhancing competitiveness.

Challenges

Operating across cultures presents challenges such as:

  Communication Barriers: Differences in language and communication styles can lead
to misunderstandings.

 Conflicting Cultural Norms and Values: Diverse norms and values can create
integration difficulties. Hofstede's Cultural Dimensions Theory highlights some of
these differences.

 Ethnocentrism and Stereotype Biases: Judging other cultures by one's own standards
can hinder effective leadership.

 Knowledge Hiding: Employees may conceal knowledge, hindering transfer and

innovation.

 Difficulties in Adapting to New Environments: Expatriates may experience stress

when adjusting to new cultural settings.

Strategies for success

To navigate these challenges, MNCs can implement strategies such as:

 Cultural Sensitivity Training: Training helps employees and managers effectively work
across diverse cultures.

 Clear and Open Communication: Encouraging open communication and recognizing

cultural nuances helps build trust.

 Promoting Diversity and Inclusion: Recruiting diverse leadership and creating an

inclusive environment foster belonging.

 Adaptive Leadership Styles: Adjusting leadership approaches to suit different cultural

contexts is crucial.

 Integrating Cultural Intelligence (CQ): Cultivating CQ helps leaders understand

cultural nuances, improving collaboration.
UNIT-V-STRATEGIC HUMAN RESOURSE MANAGEMENT

5.1 SHRM – Meaning, Objectives, Challenges

Strategic Human Resource Management (SHRM) integrates HRM with the overall strategic
goals of an organization. It ensures that HR policies align with the company’s vision, mission,
and business goals.

Objectives:

 Align HR policies with corporate strategy

 Enhance organizational flexibility

 Improve workforce productivity and commitment

 Foster innovation and talent retention

Challenges:

 Adapting to rapid technological changes

 Managing global and diverse teams

 Ensuring cultural alignment across locations

 Balancing short-term performance and long-term strategy

Example:
Google (Alphabet Inc.) integrates SHRM by aligning its HR policies with innovation
strategies. Its people operations team focuses on hiring, training, and rewarding employees
who embody the company’s strategic vision.
5.2 Relationship Between HR and Corporate Strategy

HR plays a critical role in achieving corporate strategy by aligning human capital with
strategic objectives.

 HR provides the talent pipeline to execute business plans

 Workforce planning and analytics ensure long-term goals are met

 HR develops leadership aligned with future needs

 Employee engagement, learning, and retention drive competitive advantage

HR is not just a support function but a strategic partner.

Example:
Microsoft aligns HR with corporate strategy through leadership development programs and
succession planning, supporting its transformation into a cloud-first, AI-driven company.

Relationship Between HR and Corporate Strategy

Relationship between HR and corporate strategy

In today's dynamic business environment, Human Resources (HR) plays a crucial role beyond
traditional administrative tasks like recruitment and payroll processing. Instead, it has
evolved into a strategic partner that aligns its efforts with the organization's overarching
corporate strategy to drive long-term success. This alignment ensures the organization has
the necessary talent, capabilities, and culture to achieve its goals and objectives.

Here's how HR and corporate strategy intertwine:

1. HR as a key contributor to business strategy

 Strategic Human Resource Management (SHRM): This framework connects people

management to long-term business goals, focusing on aligning workforce
development with the organization's overall direction.

 Workforce planning and organizational design: HR contributes by analysing current

workforce capabilities, identifying skills gaps, and forecasting future talent needs to
support business expansion, new product launches, or digital transformations.
  Building a strong culture: HR plays a vital role in shaping a culture that fosters
behaviours aligned with the strategic objectives, including innovation, collaboration,
and a customer-centric approach.

2. Alignment of HR initiatives with business goals

 Talent acquisition and retention: HR designs and implements strategies to attract,

develop, and retain the right talent with the skills and competencies required to
achieve business goals. This includes targeted recruitment campaigns, career
development programs, and competitive compensation packages.

 Performance management: HR ensures that performance management systems

align individual and team goals with organizational objectives, driving employee
motivation and productivity.

 Training and development: HR invests in continuous skill development and training

to ensure employees are equipped with the competencies needed to meet evolving
job requirements and adapt to technological advancements.

 Leadership development and succession planning: HR identifies and develops high-

potential employees to prepare them for future leadership roles, ensuring a pipeline
of capable leaders and minimizing disruption during transitions.

 Compliance and ethics: HR ensures adherence to labor laws, regulations, and ethical
practices, reducing legal risks and building a trustworthy work environment.

3. Benefits of aligning HR and business strategy

 Improved organizational performance: Strategic HR practices contribute to

increased employee engagement, enhanced productivity, higher profitability, and
reduced turnover rates.

 Increased agility and adaptability: Aligning HR with business strategy helps

organizations respond effectively to market changes, technological advancements,
and evolving customer demands.
  Competitive advantage: By optimizing human capital, organizations can differentiate
themselves in the marketplace through a skilled, motivated, and innovative
workforce.

 Enhanced employee satisfaction and well-being: Strategic HR initiatives focus on

creating a positive and supportive work environment that caters to employee needs,
leading to higher engagement, reduced stress, and increased loyalty.

 Better decision-making: HR provides valuable insights through workforce analytics,

helping leaders make informed decisions related to staffing, talent management, and
cultural initiatives.

In conclusion, HR and corporate strategy are inextricably linked. By embracing a strategic

approach, HR can transition from a purely administrative function to a proactive partner that
contributes significantly to the organization's overall success and sustainable growth.

5.3 Career – Strategies for Managing Careers

Effective career management helps employees and organizations grow together.

Strategies include:

 Career planning and goal setting

 Job rotation and enrichment

 Mentoring and coaching

 Skill development and upskilling

 Internal mobility and career paths

 Performance feedback and succession planning

Career strategies foster loyalty, reduce attrition, and prepare future leaders.

Example:
IBM uses AI-driven tools to recommend personalized learning paths and internal career
moves for employees, improving retention and long-term engagement.
Career – Strategies for Managing Careers

Strategies for effective career management

Managing your career effectively in today's rapidly evolving job market requires a proactive
and adaptable approach. Instead of passively letting your career unfold, adopting strategic
career management empowers you to take control and shape a fulfilling professional
journey aligned with your goals.

Here are key strategies for managing your career:

1. Self-assessment and goal setting

 Understand your motivations: Begin by reflecting on your interests, values, skills,

and long-term aspirations. Why are you in your current field, and what truly
motivates you to excel?

 Identify your strengths and areas for development: Evaluate your current skillset
and compare it against the requirements of your ideal role or career path. Seek
feedback from peers, mentors, or supervisors to identify areas where you need to
improve or acquire new skills.

 Set SMART goals: Define specific, measurable, achievable, relevant, and time-bound
goals for your career development. This creates a clear roadmap for your career
journey.

2. Continuous learning and skill development

 Lifelong learning is crucial: The job market is constantly changing, driven by

technology and evolving industry trends. Staying competitive requires a commitment
to continuous learning and upskilling.

 Explore learning pathways: Consider various methods for skill acquisition, including
formal education (degrees, certifications), digital learning (online courses, webinars),
experiential learning (job shadowing, stretch assignments), and self-directed learning
(industry publications, podcasts).

 Focus on in-demand skills: Research industry reports and job market trends to
identify skills that are currently in high demand and those predicted to be essential in
 the future, such as data analytics, AI literacy, cybersecurity, digital marketing,
adaptability, communication, project management, and emotional intelligence.

3. Strategic networking and mentorship

 Build a strong professional network: Networking is about more than collecting

business cards; it's about building meaningful relationships with professionals in your
industry and related fields. Attend industry events, join professional associations,
engage on LinkedIn, and connect with people from diverse backgrounds.

 Seek mentorship and guidance: Connect with experienced professionals who can
provide advice, support, and insights based on their career journeys. A mentor can
offer guidance on navigating challenges, making informed decisions, and accessing
valuable resources.

 Actively engage in your network: Offer to help others, share valuable information,
and actively participate in discussions to strengthen relationships and broaden your
professional reputation.

4. Proactive career exploration and planning

 Research career paths and market trends: Stay informed about industry
developments, emerging opportunities, and the skills and qualifications that
employers value most.

 Evaluate internal opportunities: Actively seek out opportunities for growth and
advancement within your current organization. This might involve taking on
challenging projects, cross-functional assignments, or pursuing leadership roles.

 Consider career transitions: If your current path isn't fulfilling, research and plan for a
career change by assessing your transferable skills, acquiring new ones, and
leveraging your network to explore new possibilities.

5. Building a strong personal brand

 Cultivate your professional identity: Your personal brand reflects your expertise,
values, and reputation. Develop it by showcasing your achievements, skills, and
 perspectives through platforms like LinkedIn, professional websites, or industry
blogs.

 Demonstrate your value: Actively promote your strengths and contributions through
presentations, publications, or by sharing your knowledge within your professional
networks.

 Be authentic: Ensure your personal brand accurately reflects your skills, values, and
career aspirations.

6. Time management and work-life balance

 Prioritize effectively: Manage your time by identifying urgent and important tasks
and prioritizing accordingly. This enhances productivity and reduces stress.

 Maintain work-life balance: Ambitious career pursuits are important, but prioritize
your well-being. Setting boundaries, unplugging from work, and investing in self-care
are essential for long-term health and productivity.

7. Embracing challenges and seeking feedback

 View challenges as opportunities: Career journeys will inevitably present obstacles.

Embrace these challenges as opportunities for learning and growth, developing
resilience and problem-solving skills.

 Actively seek constructive feedback: Solicit input from supervisors, mentors, and
peers to identify areas for improvement and gain valuable insights into your
performance and potential for growth. Focus on actionable steps and implement
changes based on the feedback received.

By strategically employing these career management strategies, you can proactively navigate
the complexities of today's job market, unlock new opportunities, and build a career path
that is both successful and personally fulfilling.
5.4 Career Plateaus

A career plateau occurs when an employee perceives limited opportunities for vertical
growth.

Types:

 Structural Plateau: Lack of positions to move up

 Content Plateau: Job becomes monotonous

 Personal Plateau: Lack of motivation or skills

Implications:

 Decreased morale and productivity

 Increased attrition

 Potential burnout

Solutions:

 Job enrichment

 Lateral moves or cross-functional roles

 Training and coaching

Example:
At General Electric (GE), career plateaus are managed by offering international assignments
and stretch roles that reinvigorate careers.

A career plateau is a stage in an individual's career where they feel a lack of upward mobility,
professional advancement, or opportunities for personal growth within their current role or
organization. This can be a frustrating and demotivating experience, leaving individuals
feeling stuck and unfulfilled. However, it's a common phenomenon that, with the right
approach, can be overcome to reignite career growth and satisfaction.

Causes of a career plateau

Career plateaus can stem from both internal and external factors. Internal causes include a
lack of confidence or motivation, complacency, burnout, undefined goals, skill gaps, limited
networking, and personal issues. External reasons can involve limited advancement
opportunities within the organization, skill mismatch, lack of recognition, workplace politics,
or insufficient career development support from the company.

Signs of a career plateau

Key indicators of a career plateau include a lack of promotions or raises, limited challenges
or learning, decreased motivation, feeling stuck in a repetitive role, and a lack of discussions
about future career plans.

Overcoming a career plateau

Overcoming a career plateau requires a proactive approach. Strategies include:

 Self-assessment and goal setting: Clarifying aspirations and setting SMART goals.

 Continuous learning and skill development: Acquiring new skills to increase

marketability.

 Seeking new challenges and responsibilities: Volunteering for projects to open new
opportunities.

 Expanding your network and seeking mentorship: Gaining guidance and new
perspectives.

 Exploring lateral moves: Transferring to a different role for new experiences and
growth.

 Reevaluating your career path: Considering a change in industry or starting a

business if current path is unfulfilling.

 Enhancing your personal brand: Showcasing achievements and expertise.

 Embracing a growth mindset and resilience: Viewing challenges as development

opportunities and staying motivated.

Career plateaus are common but can be overcome by identifying causes and implementing
strategic approaches to reignite growth and achieve fulfillment.
5.5 Competency Mapping – Need & Scope

Competency mapping identifies key skills, behaviours, and knowledge needed for roles.

Need:

 To align individual capabilities with organizational needs

 Improve hiring, training, and performance management

 Identify skill gaps

Scope:

 Across all HR functions including recruitment, training, development, appraisals, and

succession planning

 Helps create competency-based job descriptions

Example:
Amazon uses competency mapping to define roles such as “Customer Obsession” and
“Invent and Simplify” in their leadership principles, which guide hiring and promotion
decisions.
Competency Mapping – Need &ScopeCompetency mapping: necessity and scope
Necessity

Competency mapping is a structured HR process that plays a vital role in enabling

organizations to align their workforce capabilities with strategic business goals.

Here's why competency mapping is essential for any organization:

 Aligns employee capabilities with organizational goals: By defining the specific

competencies (knowledge, skills, and behaviours) required for each role, companies
can ensure their workforce possesses the attributes necessary to meet current and
future business needs. This strategic alignment optimizes talent management
processes, enhances employee performance, and fosters a culture of continuous
improvement.

 Enhances recruitment and selection: It helps HR create precise job descriptions and
candidate profiles, attracting candidates with the right competencies and reducing
the risk of poor hiring decisions and turnover.

 Improves performance management: It establishes clear expectations and provides

a framework for objective performance evaluations, enabling targeted feedback and
development opportunities for employees to improve and succeed.

 Facilitates targeted training and development: It identifies skill gaps, allowing HR to

design tailored training programs that address specific needs and enhance employee
capabilities, fostering continuous learning and development.

 Supports succession planning and career development: It helps identify and develop
high-potential employees for future leadership roles and provides clear career paths
for growth, ensuring business continuity and employee satisfaction.

 Boosts employee engagement and retention: When employees understand their

role expectations, receive relevant training and development opportunities, and see
a clear path for growth, their morale, engagement, and job satisfaction increase,
leading to higher retention rates.

 Increases organizational agility and adaptability: Competency mapping provides

insights into the current and future competency needs of the organization, allowing
 HR to anticipate and address talent shortages or surpluses, ensuring the organization
remains adaptable to market shifts and technological advancements.

Scope

The scope of competency mapping extends across various critical HR functions and talent
management processes. These include:

 Recruitment and Selection: Designing accurate job descriptions, attracting the right
talent, screening candidates, and making informed hiring decisions based on
predefined competencies and proficiency levels.

 Performance Management: Setting clear performance expectations, providing

objective feedback, conducting competency-based performance appraisals, and
identifying areas for improvement.

 Learning and Development: Designing and delivering targeted training programs,

creating personalized development plans, addressing skills gaps identified through
the mapping process, and supporting upskilling and reskilling initiatives.

 Succession Planning and Career Development: Identifying potential leaders and

high-potential employees, preparing them for future roles, mapping out career
pathways, and facilitating internal mobility.

 Strategic Workforce Planning: Analysing current workforce capabilities, forecasting

future talent needs, identifying critical skills, and developing strategies to address
talent shortages or surpluses.

 Organizational Design and Restructuring: Redefining roles and aligning new teams
during periods of change to ensure smooth transitions and continued productivity.

 Compensation and Rewards: Potentially informing decisions about promotions,

compensation adjustments, and reward systems based on assessed competencies
and contribution to organizational goals.

By implementing competency mapping strategically, organizations can create a high-

performing, adaptable workforce and gain a significant competitive advantage in today's
dynamic business environment.
5.6 Classification of Competency Mapping

Competency mapping is classified as:

 Behavioural Competencies: Communication, leadership, teamwork

 Technical Competencies: Domain-specific knowledge or tools

 Core Competencies: Strategic thinking, innovation, customer focus

 Managerial Competencies: Decision-making, planning, delegation

This classification helps HR personalize training and development interventions.

Example:
At Apple Inc., core competencies like innovation and aesthetic design guide hiring and
development for engineering and product teams.

Competency mapping classifies the essential skills, knowledge, and behaviours that
employees need to excel in their roles and contribute to an organization's overall success.
These classifications provide a framework for defining and evaluating competencies,
enabling organizations to make informed decisions regarding talent management and
development.

Here's a breakdown of common classifications for competency mapping:

1. Core competencies

These are the fundamental skills, knowledge, and behaviours required by all employees
across an organization, regardless of their specific role or department. They reflect the
organization's values, culture, and overall business strategy.

 Examples: Communication, teamwork, problem-solving, adaptability, customer focus,

integrity, and ethical conduct.

2. Functional or technical competencies

These are specialized skills and knowledge required for specific roles, functions, or
departments within an organization. They are crucial for performing job-specific tasks
efficiently and effectively.

 Examples: Financial analysis for a finance role, programming languages for a software
developer, market analysis for a marketing role, project management skills for a
project manager, or proficiency in design software for a graphic designer.

3. Leadership competencies

These are the skills and behaviours necessary for individuals in leadership or management
positions. They encompass the abilities needed to guide teams, make strategic decisions,
and drive organizational success.

 Examples: Strategic thinking, decision-making, emotional intelligence, inspiring and

motivating others, conflict resolution, coaching, and talent development.

4. Behavioural competencies

These focus on the behaviours and attitudes employees should exhibit in the workplace,
emphasizing how they approach their work and interact with others.

 Examples: Resilience, integrity, initiative, adaptability, self-awareness, and emotional

intelligence.

5. Other classifications

Some sources may also classify competencies as:

 Intellectual competencies: Skills related to knowledge, analytical thinking, and

problem-solving.

 Motivational competencies: Factors that drive an individual's motivation and

achievement orientation.

 Social competencies: Skills involved in building relationships and working effectively

with others.

 Emotional competencies: Abilities related to recognizing, understanding, and

managing emotions.
By leveraging these classifications, organizations can develop comprehensive competency
models that serve as valuable tools for talent management, ensuring they have the right
people with the right skills to achieve their strategic goals

5.7 Role of Competency Mapping in Recruitment Process

Competency mapping plays a key role by:

 Creating accurate job descriptions

 Structuring interviews around specific competencies

 Reducing bias in selection

 Ensuring cultural and skill fit

 Improving quality of hire and retention

Example:
Facebook (Meta) uses structured interviews based on predefined competencies (e.g.,
problem-solving, coding proficiency) to ensure fit and diversity in recruitment.

Role of Competency Mapping in Recruitment Process

The role of competency mapping in the recruitment process

Competency mapping is a strategic and systematic approach that plays a vital role in
enhancing the effectiveness and efficiency of an organization's recruitment process. By
clearly defining the skills, knowledge, abilities, and behaviours necessary for successful job
performance, organizations can streamline various stages of recruitment and attract top
talent.

Here's how competency mapping impacts the recruitment process:

1. Accurate job descriptions and requirements

 Precise Job Descriptions: Competency mapping allows HR professionals to create

detailed job descriptions that go beyond a simple list of tasks and responsibilities.
  Clear Requirements: It helps to clearly define the specific competencies, both
technical and behavioural, required for a role, including proficiency levels.

 Targeted Job Postings: These detailed descriptions attract candidates who possess
the necessary competencies, increasing the quality of applicants and reducing the
volume of unqualified resumes.

2. Effective candidate sourcing and attraction

 Targeted Sourcing: Competency maps can guide recruiters in identifying the most
appropriate channels to source candidates with the required skills and behaviours.

 Compelling Job Ads: By highlighting the key competencies in job advertisements,

organizations can attract individuals who are genuinely interested in roles that align
with their strengths and aspirations.

3. Structured screening and assessment

 Standardized Evaluation: Competency mapping provides objective criteria for

candidate evaluation, reducing bias and ensuring fairness throughout the selection
process.

 Competency-Based Interviews: Interviewers can develop targeted behavioural

questions that assess candidates' past experiences and behaviours against the
defined competencies,

 Assessment Tools: Skill tests, simulations, and other assessment tools can be used to
objectively measure a candidate's proficiency in required competencies, ensuring
they possess the necessary skills to perform effectively.

4. Informed hiring decisions

 Better Job Fit: Competency mapping helps organizations identify candidates who are
the right fit for the role, the team, and the company culture.

 Reduced Turnover: By aligning candidate capabilities with job requirements,

organizations can minimize hiring errors and reduce the risk of turnover caused by a
mismatch in skills or expectations.
  Data-driven Decisions: Competency assessments generate valuable data that
informs hiring decisions and enables recruiters to make more strategic choices.

5. Enhanced onboarding and talent development

 Clear Expectations: New hires onboard with a clear understanding of the

competencies expected of them, facilitating a smoother transition into their roles.

 Targeted Training: Competency assessments during recruitment can identify skill

gaps in new hires, enabling organizations to design tailored onboarding programs
that address specific development needs.

In essence, competency mapping acts as a blueprint that guides recruiters in identifying,

attracting, and selecting candidates who not only possess the necessary skills for a role but
also align with the organization's culture and values. By embedding competency mapping
throughout the recruitment process, organizations can build a stronger, more engaged, and
higher-performing workforce.

5.8 Methods of Competency Mapping

Common methods include:

 Job Analysis: Studying job roles and responsibilities

 Behavioural Event Interview (BEI): Probing past experiences

 360-Degree Feedback: Multiple perspective evaluations

 Psychometric Tests: Assessing cognitive and behavioural traits

 Performance Appraisals: Linking past performance to competencies

Example:
Tesla uses data-driven job analysis and 360-degree feedback to evaluate competencies for
leadership and technical roles in R&D and production.

Methods of Competency Mapping

Methods of competency mapping

Competency mapping is a strategic process that involves identifying and defining the key
skills, knowledge, and behaviours required for individuals to succeed in specific roles within
an organization. Organizations employ various methods to effectively conduct competency
mapping, each offering unique advantages depending on the specific context and
objectives.

Here are some common methods used in competency mapping:

1. Job analysis

This foundational method involves a detailed examination of job roles to determine the
required tasks, responsibilities, and attributes. Methods include:

 Interviews: Conducting structured or unstructured interviews with job incumbents,

managers, and subject matter experts to gather insights about the skills and
behaviours crucial for success.

 Surveys and Questionnaires: Developing questionnaires to collect data on the

competencies required for a job role and the proficiency levels needed to perform
tasks effectively.

 Observation: Observing employees performing their jobs to identify and document

the skills and behaviours demonstrated in real-time.

 Functional Job Analysis: Analysing the tasks, responsibilities, and requirements of a

job, then mapping the essential competencies to each element.

 Position Information Questionnaires (PIQs): Questionnaires that ask employees to

detail their responsibilities, daily tasks, and the skills they utilize in their roles.

2. Behavioural event interviewing (BEI)

This in-depth interview technique focuses on eliciting specific examples of how candidates
or employees have demonstrated competencies in past situations. It is based on the
principle that past behavior is a reliable predictor of future performance. The BEI typically
utilizes the STAR (Situation, Task, Action, Result) method to structure questions and gather
detailed information about specific behavioural examples.

3. Assessment centers
These involve a series of exercises designed to simulate real-world job situations, allowing
for the observation and evaluation of specific competencies. Examples include:

 Role Plays: Simulations where participants assume specific roles to demonstrate

communication, negotiation, or conflict resolution skills.

 In-basket Exercises: Participants respond to a variety of simulated workplace

scenarios to assess their decision-making, planning, and prioritization abilities.

 Group Discussions: Participants engage in group activities to assess teamwork,

collaboration, and leadership skills.

 Presentations: Evaluating communication and presentation skills in simulated

scenarios.

 Case Studies: Participants analyze complex business problems and propose solutions
to assess problem-solving and analytical skills.

4. Psychometric tests

Standardized tests used to measure an individual's aptitude, personality traits, and cognitive
abilities, providing insights into their potential and fit for specific roles.

5. Critical incidents technique

This method involves gathering and analysing specific incidents that led to particularly
effective or ineffective job performance. These incidents are then analysed to identify the
underlying competencies required for success.

6. Self-assessment and 360-degree feedback

 Self-assessment: Employees evaluate their own competencies and identify strengths

and areas for development.

 360-degree feedback: Gathering feedback from multiple sources, including peers,

supervisors, subordinates, and self, to provide a comprehensive view of an
individual's competencies and performance.

7. Expert panels or focus groups

Discussions among groups of subject matter experts, senior professionals, and managers to
define and validate competencies for specific roles or functions.

8. Competency frameworks and libraries

Utilizing existing competency frameworks (like industry-specific standards or custom

frameworks tailored to the organization's needs) or libraries of predefined competencies as
a starting point for competency mapping.

9. Technology-driven approaches

Leveraging HR software and platforms with competency management modules to automate

the process, track competency data, and integrate with other HR functions like learning and
development.

The selection of the most appropriate method or combination of methods depends on the
specific objectives of the competency mapping exercise, the available resources, and the
organizational context. Organizations often combine different methods to achieve a
comprehensive and accurate understanding of the competencies required for their
workforce.

5.9 Importance of Competency Mapping in Talent Acquisition

Competency mapping in talent acquisition ensures:

 Right person for the right job

 Better cultural alignment

 Reduced turnover

 Faster onboarding and performance ramp-up

 Improved diversity through structured, bias-free hiring

Example:
Johnson & Johnson USA uses a global competency framework to assess candidates during
recruitment, ensuring they align with company values and job requirements across markets.
Importance of competency mapping in talent acquisition

Competency mapping is a strategic approach in Human Resources that plays a critical role in
enhancing the effectiveness and efficiency of talent acquisition. By systematically identifying
and defining the skills, knowledge, abilities, and behaviours necessary for successful job
performance within an organization, competency mapping provides a clear framework for
attracting, assessing, and selecting the right candidates.

Here's why competency mapping is so important in talent acquisition:

1. Clear and accurate job descriptions

 Competency mapping allows organizations to create precise and detailed job

descriptions that go beyond a simple list of tasks and responsibilities.

 It helps define the specific technical and behavioural competencies, along with
proficiency levels, required for a role, attracting candidates with the right fit.

 This clarity helps both recruiters and applicants make informed decisions about job
fit, improving the quality of hires.

2. Targeted candidate sourcing

 Competency maps guide recruiters in identifying the most appropriate channels to

source candidates who possess the required skills and behaviours.

 By highlighting the key competencies in job advertisements, organizations can attract

individuals genuinely interested in roles that align with their strengths and
aspirations.

3. Improved candidate assessment and selection

 Competency mapping provides objective criteria for candidate evaluation, reducing

bias and ensuring fairness throughout the selection process.

 Competency-based interviews, which focus on eliciting specific examples of how

candidates have demonstrated competencies, become more structured and
effective.
  Skill tests, simulations, and other assessment tools can be used to objectively
measure a candidate's proficiency in required competencies, ensuring they possess
the necessary skills to perform effectively.

4. Enhanced onboarding and talent development

 Competency mapping provides new hires with a clear understanding of the

competencies expected of them, facilitating a smoother transition into their roles.

 Competency assessments during recruitment can identify skill gaps in new hires,
allowing organizations to design tailored onboarding and training programs to
address specific development needs.

5. Reduced turnover and increased retention

 By aligning candidate capabilities with job requirements, organizations can minimize

hiring errors and reduce the risk of turnover caused by a mismatch in skills or
expectations.

 Companies that hire based on competencies are 98% more likely to retain top
performers, primarily due to a better alignment between candidate capabilities and
role requirements.

 Employees who understand and possess the competencies required for their roles
are more likely to perform at their best, leading to increased job satisfaction and
reduced turnover.

6. Strategic workforce planning and succession planning

 Competency mapping provides insights into the current and future competency
needs of the organization, enabling HR to anticipate and address potential talent
shortages or surpluses.

 By clearly defining what makes someone successful in leadership positions,

competency mapping forms the foundation for effective succession planning, helping
organizations identify and develop high-potential employees for future roles.

In conclusion, competency mapping is not just a tool for evaluating existing skills but a
powerful strategic approach that transforms the entire talent acquisition process. It leads to
more informed hiring decisions, enhances employee development, reduces turnover, and
ultimately contributes to building a stronger, more engaged, and higher-performing
workforce aligned with the organization's strategic goals

CASE STUDIES

Case Study: Google’s “People Operations” Culture

Background

Google Inc., now a subsidiary of Alphabet Inc., has been repeatedly ranked among the best
places to work globally. This success is not just due to its innovative products but largely
because of how it manages its people. Google rebranded its Human Resources department
to “People Operations”, reflecting a fundamental shift in philosophy: managing people with
the same rigor as managing technology or finance.

Data-Driven HR – The Google Way

Laszlo Bock, former SVP of People Operations, introduced people analytics, turning
traditional HR on its head. By hiring statisticians, behavioural scientists, and data analysts,
Google began analysing employee data to predict retention, optimize hiring, and enhance
productivity.

Two notable projects include:

Project Oxygen

This initiative challenged the belief that managers were unnecessary at Google. Through
data analysis of performance reviews, feedback, and interviews, Google identified eight core
behaviours of successful managers, such as coaching, empowerment, and technical
expertise. This led to the launch of management training programs, regular check-ins, and
real-time feedback tools.

Project Aristotle
To understand what made some teams outperform others, Google launched this project. It
found that psychological safety, where employees felt safe to take risks and voice opinions,
was the most critical factor—not IQ, experience, or seniority.

Building a Culture of Innovation and Autonomy

Google introduced perks like 20% time (employees spend 20% of their time on side
projects), nap pods, gourmet cafeterias, and open workspaces. These weren't just
gimmicks—they were tested to increase collaboration, creativity, and satisfaction. People
Operations ensured that culture was nurtured scientifically, using feedback loops and
continuous evaluation.

Challenges and Controversies

Despite these innovations, Google wasn’t immune to internal challenges. Employee

walkouts in 2018 over the handling of harassment claims, ongoing concerns about diversity
and inclusion, and questions about algorithmic bias in hiring practices revealed that even the
most progressive HR systems face real-world limitations.

Learning Points

 Data-driven HR improves hiring, engagement, and leadership effectiveness.

 Psychological safety is a stronger predictor of team success than intelligence.

 Culture must evolve along with company growth and social expectations.

 Even advanced HR systems must be balanced with ethics and inclusivity.

Case Study Questions

1. Evaluate the impact of Project Oxygen on Google’s management style.

How did data challenge pre-existing assumptions, and what long-term changes did it
drive?
 2. What role did psychological safety play in team success according to Project
Aristotle?
Can these findings be applied in more traditional or hierarchical organizations?

3. Discuss the risks and ethical concerns of using people analytics in HR decisions.
How should companies balance privacy and productivity?

4. Despite being highly ranked as an employer, Google faced internal activism.

What lessons can HR leaders learn about sustaining culture while addressing
employee concerns?

Case Study: Human Resource Management at BMW

BMW (Bayerische Motoren Werke in German, or Bavarian Motor Works in English) is

basically a German company with vast experience in the field of cars and was introduced in
1916. This company spends more money on its human inputs to add value and also its
complex contribution of human resources creates its competitive advantage. BMW’s
specialized staff which are able to offer superior quality of product and services in the
market with the customer experience. Human resources plays important role in the BMW
even in the time of recession as they have invest on the human inputs. But this depends on
the financial condition and capabilities of the market as they had invested in training
development and recruitment of the new management teams in their organisation. Earlier
BMW was not giving importance to its customer services and its staff only focusing on its
products and places for its expansion but later on they realize that human resources and
their management is important for success in the market and competition. In BMW the goal
of human resources is to change and improve their markets by using the new methods of
production and materials and organise them into the excellent way of customer servicing. As
always in BMW the goal of human resource management is to add more value and improve
the ratio of cost in the added value of its car products. The main goal of HRM in BMW is to
make people more productive and creative for the long term standing with them and when
the management staff will be more productive then the jobs get more skilled. In recession
also this company had constantly invested in the human resources and its development.
Human Resource Strategies in BMW Group

BMW is company which carries out very well planned strategies in its organisation. In this
organisation the human resource strategy is applying to the whole organisation and BMW is
improving its products and making a proper customer satisfaction by applying this strategy.
This strategy is plays a very vital role in the BMW organisation and its employees. It helps
them to innovate and create new products and services to their customers and making its
products available and delivered in all areas where they are expanding their activities. Earlier
BMW was making their products wrongly and not understanding the capabilities and needs
of its customers as they were not giving importance to its human resources so after
sometime they realize the exact meaning and importance of its resources so now they can
focus more on markets and its customers. BMW is now making its organisation and its
employees flexible so that they can change according to the technology and the needs of its
customers in the market. Human resource strategies help them to take the proper care of
people issue for the long term by providing best quality products and services, making long
term commitments and needs for the future. The aim of BMW in this strategy is not to give
them low cost products. Their main aim is to provide the high capable workforce and making
its products unique in the competitive market. BMW is concerned with its managers and the
staff to make them more innovative and developing their skills so that they can achieve a
high task goals and objectives.

The following are the Human resource strategies of BMW:

 Recruitment and Selection: The selection of the candidates is the first task and
strategy of BMW. This is the most important element of the BMW’s human resource
management. In this they have to select the candidate who can match up the
requirements of the job role. This includes the person who can identify the market
conditions, attract customers to sell their products. The first process in this process is
to analyse the role and then they develop the person’s specification of that job
satisfaction and then he going to identify the market condition to attract customers
and then screening of applications. In screening of applications they short list the
selected candidate whether to select or reject. After this they conduct interviews,
 assessments and tests of the candidate to decide select or reject. When candidate
pass this interview then they check the references in the resume of the candidate
and after above all they offer the person to work in the organisation. BMW is
following a very good selection technique with their clear specifications and
procedures in a long term. They judge the candidate according to the suitability of
the role which provides them necessary benefits. Suitability of the role in the job
includes the knowledge, skills, experience and personal attributes of the person
which help him to perform according to the specifications of the job. All this process
of selection and recruitment is properly planned in an organised way considering
their future needs. Attracting the customers which is a part of selection process plays
an important role as it does not include selling their products but also
includes advertising the brand BMW in the newspapers, magazines, internet,
television etc. and making awareness of the luxurious comforts and safety of the
products of BMW. It includes the heavy expenditure in advertising the brand but they
need to be more careful in spending on advertising anyways this strategy for
marketing their employment.

 Screening: In this step of recruitment and selection of BMW human resource

management the candidate have to fill the application form which shows the
subjective quality of the person for the role and also helps in improving the quality of
the process and increase the consistency. In application form the person has to fill up
his bio data and other questions which show the difference of higher and low level of
performers.

 Interviewing: Interviewing person who had applied for the role is very important
otherwise they can’t judge the mental and physical capabilities of the candidate. This
process is conducted by the line managers of the BMW. In this interview they have
long discussions, questions about the previous experience, favourites. This is the
most commonly used technique in every multinational organisation which helps the
interviewer to make a judgement about the candidate specialization for the job. They
can judge whether the person can satisfy the job or not? The questions in this
interview are properly listed to get specific information about a standard of
 judgement or criticism and the candidate get a score against the answers he had
provided in this interview.

 Testing: Another process followed by the BMW human resource department is

testing the ability and personality of the candidate. In the ability test they test or
measure the aptitudes like knowledge, vocabulary, typing speed, awareness about
the products and accuracy of the candidate. On the other hand are the personality
tests which show the personal characteristics, attitude, behavior and values of the
candidate. In this they also test the individual beliefs and the capability that how
they deal with problems in selling the products or their convincing and marketing
power in the organisation. In this process of testing the candidates in BMW the
ability tests are more consistent and free from errors than the personality tests.

 Checking References: After testing the candidate then the manager or the
interviewer has to check the references of the educational qualifications, eligibility,
work experience, licences and the special check on the criminal records and health
problems. After checking the references they give the offer letter whether it
conditional or unconditional.

Training and Development

Once candidate pass the above steps of recruitment and selection then he has to undergo
from the training of the role offers to him. This training process is essential to improve the
performance of the job which helps to develop their personal and professional
characteristics of candidate. This training involves coaching and development of the
professional skills which are more efficient and effective in learning and development of the
individuals. The different types of training are informal training, on the job or off the job
training, product and skills training, behavioural development and technical training. They
give the training to their employees for how to develop different styles of learning,
materials, design of the products, and also look after their personality types. In this training
also involves use of heavy and expensive equipment and machines and provide stipend in
between their training. This training on machines and equipment improves their
performance of the job. BMW teach their employees the easy and small steps first and
cover their health and security issues and make their employees proud to be a part of this
organisation. In this training the line managers face the major challenges to develop the
confidence, personality and skills to solve and find the solutions to the problems in the
organisation. Managers want their trainees to be creative, innovative, productive and
sufficient to operate at tactical and strategic level in the company. They trained them to seek
the responsibilities of the task given to them and never be step back in any problems. After
the trainee complete the process of his training and development of the specific role given
to him then the line managers give them a pat on their back and recognise them for their
successful completion so that they motivate in performing their tasks well on the job.

Performance Management

In BMW the performance of the managers and staff is initially important to achieve the goals
and objectives of the organisation. Performance management is the essential and organised
process that carries the success and helps in developing the capabilities and performance of
the individual or work team. The strategy of human resource management is to develop the
managers or leaders in the organisation who can help their employees or subordinates to
make their performance effective and efficient. The managers are the only ones who can
manage the performance of the workers by understanding and knowing what the employees
expect from them and engage them in each and every activity and ask them for feedback
which can improve their quality of performance in the organisation. The BWM human
resource management is working more on this performance by enhancing them to learn
their goals and objectives and they recognise that there is a greater need for the
management to apply these performance tools in the company through which they can
develop their reviews, skills and framework. In this management the employees are sharing
their views and ideas with their leaders and managers so that they can find better
ways measuring and improving the performance. The performance management of the
BMW shows that how BMW is working its functions effectively in the environment. The
performance of this company shows how they are executing their plans, goals, objectives
and what will be the outcome of their performance? The purpose of the BMW management
team is to achieve the better results by managing the performance and maintain the
standards of performance of their work team. The main goal of the line managers is to
create or develop a relationship or culture between them and their workforce to seek the
responsibility for the consistent improvement in the performance and skills of their business
procedures and processes. There are certain principles which BMW follows in performance
management i.e. line manager transfer their corporate goals in into their human resource
department at individual and group level, clarifying the goals to their workers,
understanding and sharing the problems and finding solution to improve the performance,
continuous feedback, encourage their subordinates for open and honest communication,
mutual respect and transparency between them. These all basic principles implemented
properly by this company HR team and it surely helps them in improving their performance
management. In this we can conclude that performance management is to support by the
managers to their workforce to improve their performance, skills, knowledge and experience
while doing their job.

Employee Relations

In modern times relation with employees is essentially important and as a part of human
resource strategy. Involvement and participation of both employee and managers in the
organisation shows how strong is the relation between them and the difficulty of
maintaining this relation for long time. In BMW the managers are constantly involving with
their employees in several practices which directly improve their relations and performance
in the organisation. The main task of managers is to maintain the employee relations so they
can generate more commitments for their work and contribute to their operation effectively.
The manager of the BMW focuses mainly on the engagements and commitments of their
workers to maintain their employee relations. There are many benefits which BMW provides
to its employees when they join the company like medical insurances, annual bonuses,
dental and vision insurance, holiday pay, vacation pay, life term insurances which include
accidental and death insurance, medical expenses, disability insurance according to long and
short term which will be fully paid, personal day pay, sick leave, free education training and
development. These all benefits which BMW provides to its employees play a crucial role in
maintaining the relation with employees. These benefits also help the organisation to
improve the performance and contribution of employees in the production of work. The
chief executives of BMW are rising the salary and bonuses of their staff twice to the workers
working in other companies. BMW is the only major and first company who had make the
bonuses of assembly workers same as of the top managers in the organisation. BMW is
showing a great contribution to improve the relations with the employees so that they work
with dedication and hard work which increases the sales and production of the company.
The spokesman of BMW in his interview said that they are creating transparent and regular
relations with their employees so that there should be no gap between the managers and
workers. They are giving bonuses to the superiors and subordinates depend on the
company’s profit, sales and performance of each employee. BMW is also sharing profits with
their line and top managers which is good in business to deal at the time of recession.
During the time of recession the profit sharing motivates and encourages worker which is a
good way for the BMW to make their workers employed.

Case Study Questions:

1. How does BMW's approach to recruitment and selection contribute to its long-term
competitive advantage in the global automotive industry?

2. In what ways does BMW’s training and development program align with its emphasis
on innovation and product quality?

3. How does BMW's performance management system foster a high-performance

culture among its managers and employees?

4.What role do employee benefits and engagement practices play in maintaining strong
employee relations at BMW, especially during challenging economic periods like recessions?

Reference (APA Style):

BMW. (2025). Case study: Human resource management at BMW [Unpublished manuscript].
CASE STUDY IN HRM

1.Profit Sharing and Organizational Progress PP Ltd. is a profit-making firm. To retain its
status in the market the management stressed and monitored quality and productivity from
the initial stage itself. An individual incentive scheme has been in place for 20 years. During
the last decade, the company had to launch new products thanks to the proliferation of
electronic systems. The new product entailed additional investments in machineries and on
additional manpower. The new comers were raw hands requiring training at extra cost.
During the year, due to heavy investment on the new project, the interest charges and
depreciation completely wiped out the profit. This means only the statutory minimum bonus
of 8.33% of surplus was to be offered as against the usual 20% that the workers are used to
receive in the last several years. The management needs to ensure maximum cooperation
from employees to maximize productivity. There was a dispute that bonus payment is
finance oriented and it does not necessarily 82 reflect the productivity of the employees.
The personnel officer felt that if payments were based on the Bonus Act, it would deprive
and demotivate employees during a crucial period.

Questions

1. Do you agree with the personnel officer?

2. Arrive at the settlement considering the conflicting ideas of productivity-linked and profit-
sharing bases of bonus?
Case StudyZZZ

Downsizing efforts change into a retention move The CEO of ZZZ Ltd assessed that the stock
market seemed to encourage reduction in the employee strength. She observed that
whenever any listed company announced plans to downsize, their share prices went up,
apparently attracted by the ensuing cost savings and revenues per share. Hence ZZZ Ltd
announced its plan to trim down its present size of 1250 into 1000, which would mean a
20% cut. To achieve this, the organization adopted measures like recruitment freeze,
retraining and redeployment and de-layering of avoidable intermediary layers. Promotions
were almost stopped and poor performers were targeted for removal. To top it all, the
organization began to introduce a voluntary retirement scheme (VRS) with a reasonably
attractive package. Through this major initiative the CEO and his team of top management
expected to achieve most of the target for reduction. When the scheme was announced and
voluntary applications were sought, it was dismaying to the top management that a
whopping number of 700 employees, including many of the highly rewarded good
performers had applied for VRS. The top management took some time to be able to reason
out the reason for the turn of events. Finally it was realized that sudden introduction of VRS
when the organization was performing well according to official financial statements had set
the rumor mill on that the organization was hiding its internal financial difficulties. For one
set of people, the series of downsizing moves set alarm bells inside them and they thought it
to be prudent to be the early birds in moving out of what they thought to be a sinking ship.
Also, employees throughout the organization resented announcing VRS for pleasing the
shareholders. As a consequence of multiple factors, the organization found that the whole
scheme to downsize has backfired. Some managers felt that “Smart-sizing” should have
been tried instead of downsizing. Some others felt that the whole initiative was hasty and
untimely. The situation called for self-introspection among the persons responsible for the
human resources of the organization.
Questions for Review

1. List out all possible reasons for the decision of majority of employees to quit their present
jobs.

2. Were the actual feelings of the employees reported in the case realistic and justified
reasons?

3. What would be the long term implications of downsizing decisions that are driven by
forces of stock market?

4. How do you think the organization should have planned for human power reduction?

5. What would be the measures to be taken up towards controlling the damage already set
in?
CASE STUDY-Promotion of the deserving candidates

3. Promotion of the deserving candidates In an organization with about 300 staff members,
a supervisor was recommended to line manager for out of turn promotion on grounds of
extraordinary qualities of leadership as an executive in preference to one of his seniors who
possessed the required skills for an executive. 190 Both the supervisors came to know of the
recommendations. The personnel manager advised the line manager to observe the working
of both the supervisors and then come up with proposals after two months. After two
months it was reported that the performance of the supervisor who was tipped for
promotion had not improved and both continued to keep up the same pace. It was also
observed that the junior who was recommended for out of turn promotion was only day
dreaming. He was preparing for his future job while neglecting his present one. The senior
seemed to have taken things in its stride and there was neither increase nor decrease in his
output. Productivity was getting affected severely. Promotional decisions usually have far
reaching impact in the morale of employees in the organization. Analyze the Situation and
Answer the

Questions 1. What are the causes of the difference between expectations and actual
behavior on the part of the promoted employee?

2. What would you recommend if you were the line manager entrusted with handling this
case?

3. As a personnel manager what would be your reaction now considering the multiple-
dimensions of the problem?

4. What are the normal guidelines to be followed while finding a new incumbent to a n
existing job?

5. Give a plan to minimize or avoid problems of faulty or inept promotions in the f

CASE STUDY-Equity in Pay and Humane Considerations

4. Equity in Pay and Humane Considerations SRS Ltd. is an establishment with 1000
employees in the first shift between 8-16 hours. One day there was a heavy downpour and
water submerged vast areas. Train and bus services were disrupted in almost all localities. A
few timekeepers managed to record attendance. It was found that nearly 30% of employees
attended on time, 20% were two hours late, 30 % attended up to four hours late and the rest
did not attend. It was found that different groups have participated in different periods of
work on that day. If late-coming is condoned, then those who had been working might have
to be paid extra for shouldering greater responsibilities during the early hours in order to be
fair to this group of people. The question in the minds of the Personnel Manager was how to
be equitable to all during that day when neither the management nor the employees could
be blamed for the happenings. Equal-pay-for-equal work is the norm that contradicted with
the condoning of late coming due to extraneous factors.

Questions

1. How can this issue be sorted out in such a manner as to create satisfaction to all the stake
holders?

2. What should be done to prevent such predicaments during any similar situations in the
future?
Donald Super’s Career Development Theory

Career theories are usually based on circumstances such as social, economical and
environmental. The modern concept of career is a product of the industrial age.
Traditionally, organizations would structure people’s career paths and lives. During these
times, work was concentrated in employment, learning was concentrated in education and
education gave way to employment. Career counselling was a concept introduced to the
education systems to help individuals transit from one sector (education) to
another. Continuous improvement in career was viewed as a lifelong process. Donald Super
in 1953 shed light on this idea and proposed a theory. Holland in 1956 expanded on the
psychology of personality in relation to career development and career choice. These two
theories in particular and multiple others have included psychological and social aspects to
the understanding of the career choices that people make. Career theories look at the
complexity of career choice, adjustment and development.

Donald Super’s theory is one of the most well-known career development theories. He
worked on this from 1953 to 1996. His theory focuses on the creation of career
development queries during a person’s life. Super draws attention to how people go through
many stages in life trying to develop a vocational identity. In developing a vocational identity
one is constantly exploring, making career choices, entering occupations, changing career
fields and adjusting to work. Super’s stages work around universal life stages that most
people go through in our societies. Super defined these stages by age but later
acknowledged that these stages are not necessarily age-related. He stressed on the point
that people go through these stages to develop a self-concept which is translated into
occupational terms. This self-concept is usually modified, clarified and formed with time.
Individuals may go through certain stages multiple times or may find themselves deposited
in a certain stage for a very long period of time. In one of his many works on career theories,
Super defined the concept of vocational maturity, which may not support the importance of
chronological age but the time perspective is given importance as Super states “It has always
seemed important to maintain three time perspectives: the past, from which one has come;
the present, in which one currently functions; and the future, toward which one is moving.
All three are of indisputable importance, for the past shapes the present and the present is
the basis for the future. But if I were forced to declare a preference in orientation to time, it
would be for the future – even after more than fifty years of work experience.”

Donald Super created a developmental model which emphasized how personal experiences
interact with occupational preferences in creating one’s self-concept. Many theorists before
him simply looked at personality and occupation and focused on a trait matching approach.
One of Super’s greatest contributions to career development was his emphasis on the
importance of developing a self-concept, as well as his recognition that this self-concept can
change with new experiences over time. Before this, career development was mostly seen
as a singular choice; however, Super viewed career development as a lifelong activity. This
might not seem groundbreaking today, but it was a marked change from the way theorists
thought when Super began formulating his theoretical concepts in the 1950’s. In addition to
recognizing that people change over their lifetime, he also identified different areas or “life-
spaces” that help make a person who they are. The six main life-spaces that make up who
we are include: parent/homemaker, worker, citizen, leisure, student, and child. So many of
these roles imply that other people are involved in our lives and thus impact who we are.
There are many other spaces in one’s life – other than work – and Super believed that these
inhabited social spaces didn’t constitute a distraction but were an integral part of the
rainbow of our lives.

Super’s self-concept is the belief that our identities and by extension our career identities
are a product of how we see ourselves. Our vocational choices put this concept into practice
in the real world. Super’s stages are as follows:

1. Growth-early childhood (4-14) where the child learns while growing;

2. Exploration- late adolescence (15-24) newly acquired independence leading to the

acceptance of new ideas and concepts but uncertainty about one’s abilities;

3. Establishment (25-44) – during this stage people prove their competence to their
surrounding relationships, start to question commitments and make serious career
choices in terms of leaving initial career, as the biological clock is ticking people want
to settle down, sometimes with a sense of dissatisfaction;
 4. Maintenance (45-65) – this stage could be a real turning point for certain people as
they might feel tired of what they are doing. Some people question initial
commitments and contemplate whether this is all life has to offer. They may begin to
find something new to learn and enhance their personal growth. Certain people
prefer sticking to what they are supposed to be and continue to maintain their
reputation. Some mentor others when they feel established and settled. This stage is
a period of calm and inner development for some people. Some people realize that
time is finite and may start giving relationships more importance hence start
disengaging from work;

5. Lastly, Disengagement (65+) – this stage deals with preparing for retirement. Energies
begin to die out and people direct their interests elsewhere like part-time
employment or volunteer opportunities. Many people in this stage choose to travel
more or spend time with family and friends.

Super’s theory of career development underlines life-long learning as well as change and
growth. He brings the concept that persons frequently learn and adapt over the course of a
lifetime; therefore he recommended that a career development plan should be developed to
provide accommodation to the individual during a variety of stages of learning that happen
during the person’s life span

Super’s theory has been regarded as being systematic, clear, well organized, and applicable
as well practically supported. Adults may feel different concerns at a given time regardless of
career stage. With regard to cross-cultural applicability and universality. It offers a broad
structure to illustrate and give details the procedure of professional development that could
show career interventions as well as research. The fresh anchoring of the assumption on
developmental contextualizes takes into deliberation the mutual influence among the
individual and his social ecology, include one’s society similarly the conceptualization of job
preferences as well as growth like a process of individual as well as career construction
recognizes the effects of subjective cultural principles and viewpoint in shaping professional
self-concepts and preferences.

Some experts criticized Super’s theory as questionable. Super’s concept of recycling through
phases can also be questioned. The order of the stages is changing with exploration often
taking place after establishment. Establishment itself is being reduced due to people settling
down much later in life. Maintenance has drastically fallen due to establishment being
pushed into later years, low employment security and decreasing loyalty to organizations
which is proven by the frequency with which people switch jobs/organizations.

Questions:

1. How does Donald Super’s concept of "self-concept" influence an individual's career

decisions over a lifetime?

2. In what ways do Super’s life stages reflect changing societal patterns, and how
relevant are these stages in today’s gig economy and delayed adulthood trends?

3. What are the implications of Super’s theory for modern career counselling practices,
especially in multicultural and global contexts?

4. What are some limitations or criticisms of Super’s theory, particularly in terms of its
applicability in today’s dynamic job market?

Reference (APA Style):

Francis, A. (2025). Donald Super’s Career Development Theory. Unpublished manuscript.