Unit 1: Introduction to HRM
Concept of HRM
Human Resource Management is a strategic approach to managing people effectively to achieve
organizational goals. It involves attracting, developing, motivating, and retaining employees. People are
considered an organization's greatest asset, and HRM focuses on optimizing their contribution.
Functions and Scope
HRM covers recruitment, training, compensation, performance management, employee relations, legal
compliance, safety, and organizational development. The scope extends from hiring to retirement in an
employee’s lifecycle.
Functions and Responsibilities of HR Manager
Designing and implementing HR policies
Managing recruitment, selection, and onboarding
Employee development and training
Performance appraisal and compensation management
Handling grievances and maintaining industrial relations
Ensuring compliance with labor laws
Promoting employee welfare and engagement
Difference between Personnel Management and HRM
Personnel Management Human Resource Management
Administrative focus Strategic focus
Reactive and task-oriented Proactive and integrated with business goals
Treats employees as costs Treats employees as assets (human capital)
Limited scope (hiring & payroll) Broad scope (development, engagement)
Human Resource Development (HRD)
Activities aimed at improving employees’ skills, knowledge, and capabilities for present and future roles,
such as training, career planning, and organizational development.
Human Capital Management
Focuses on the strategic investment in employees by managing talent, performance, compensation, and
organizational culture to create value.
Contemporary Issues in HRM
Remote and hybrid work models
Emphasis on diversity, equity, and inclusion (DEI)
Leveraging artificial intelligence and HR technology
Talent retention in competitive markets
Changes in labor laws and compliance
Unit 2: Job Analysis, HR Planning, Recruitment, and Selection
Job Analysis, Description, and Specification
Job Analysis: Systematic process of collecting information about a job’s duties, responsibilities, and skills.
Job Description: Written document detailing job tasks and responsibilities.
Job Specification: Qualifications, experience, and skills needed for the job.
Human Resource Planning (HRP)
Forecasting future HR needs based on organizational goals.
Assessing current workforce skills and gaps.
Planning recruitment, training, and development accordingly.
Job Enrichment and Job Enlargement
Job Enrichment: Adding meaningful responsibilities to increase job satisfaction.
Job Enlargement: Increasing number of tasks to reduce monotony.
Recruitment and Selection
Recruitment: Attracting qualified applicants through various sources such as internal transfer, external
advertisements, job portals, and campus placements.
Selection Process Steps: Screening applications, conducting interviews, administering tests, reference checks,
final selection.
Placement and Induction
Placement: Assigning the selected candidate to the right job.
Induction: Helping new employees adjust to the company culture and job requirements.
Unit 3: Training and Development
Concept and Importance
Training enhances employees' current job skills; development prepares them for future roles.
Training Process
Identifying training needs
Planning and designing training programs
Delivering the training (on-the-job or off-the-job)
Evaluating the effectiveness
Types of Training
Orientation training
Technical skills training
Soft skills training (communication, leadership)
Safety training
Evaluation of Training
Usually done through feedback, tests, on-the-job observation, or measuring business impacts.
Management Development Programs (MDP)
Focus on grooming managers for effective leadership using workshops, mentoring, and simulations.
Unit 4: Performance Appraisal
Purpose
To evaluate employee performance
Provide feedback and motivation
Basis for promotions, transfers, salary increments
Appraisal Criteria
Quality and quantity of work
Job knowledge
Initiative and creativity
Teamwork and communication
Methods of Appraisal
Traditional methods like rating scales, ranking, and essay methods.
Modern methods include 360-degree feedback, Management by Objectives (MBO), and Behaviorally
Anchored Rating Scales (BARS).
Unit 5: Compensation, Employee Movements, and Safety
Compensation
Components: Basic salary, allowances, incentives, bonuses
Pay structures vary by job type, market standards, and company policy
Job Evaluation
Process to assess job worth to determine fair pay. Methods include ranking, classification, and point-factor
techniques.
Employee Separation
Voluntary: resignation, retirement
Involuntary: termination, layoffs
Safety and Health
Compliance with workplace safety standards and promoting employee wellness.
Promotion, Transfer, Demotion
Promotion: elevation to higher position
Transfer: moving employee horizontally
Demotion: lowering job rank due to performance or organizational needs
Unit 6: Industrial Relations
Concept and Importance
Industrial relations focus on maintaining peaceful and productive relationships between employers and
employees.
Collective Bargaining
Negotiation between unions and employers over wages, working conditions, and other employment terms.
Workers’ Participation in Management
Involving employees in decision-making through works councils, suggestion schemes, or joint committees.
Grievance Management
Systematic procedure for addressing employee complaints and conflicts.
Trade Unions
Employee organizations aimed at protecting workers' rights and welfare.
Important Examples and Numerical Topics
Example of Job Evaluation (Point Method)
Assign points to job factors like skills, effort, responsibility, and working conditions. Sum points to rank jobs
and define salary bands.
Performance Appraisal Numerical Example
Rate employee on criteria like punctuality, quality of work, and teamwork from 1 to 5. Calculate average or
weighted score for overall appraisal.
Real-Life Company Examples
TCS uses structured recruitment and onboarding processes.
Infosys conducts regular leadership and skill development programs.
Mahindra & Mahindra employs 360-degree feedback for evaluating managers.
Tata Steel actively practices grievance management and industrial harmony.
This detailed guide incorporates the full breadth of HRM concepts, functions, processes, examples, and
contemporary issues to provide a comprehensive understanding. Please ask if a detailed explanation on any
specific concept or numerical example is needed.
