PLANNING - HR

Planning is the first and the basic function of the management and  everything depends upon
planning as it is a process of thinking about things before they happen and to make preparations
in-advance to deal with them. Poor planning results in failure and affects overall system.
Therefore, HR Mangers should be aware of when is the right time to do things, when things
should be done and when things should not be done in order to achieve goals and objectives of
the organization.

 Establishing goals and objectives to be achieved  through the employees so as to

achieve the organizational mission set by the top-level management.

 Developing rules and procedures which has to be followed by the employees in order to

avoid any sort of discrimination among the employees in any of their functions, to enable
fair and transparent treatment among employees, to avoid conflict starting from
recruitment to the separation of employees, inculcate discipline among the employees, to
drive performance of employees and ultimately to avoid conflict and contravenes with
statutes and employment laws of the land, ultimately for smooth running of the
organization.

 Determining plans and forecasting techniques as a part of Human resource

planning to avoid any shortfall of the workforce so as to avoid impact on the output of
 the organization, to draw the estimation of workforce exactly needed for the organization
and to plan for attracting talented candidates.

 HR outsourcing: as that of make or buy decision in operations management, human

resource manager should be able to make decisions with regard to HR activities which
are to be executed by the management itself or to be outsourced when there is advantage
of expertise to bring in and cost-saving for the organization. The following are the most
outsourced HR activities; Legal advice and support, employee payroll, pensions, training
and development, recruitment, employee assistance, compensation and benefits,
outplacement is, human resource information systems, employee relations, policy-
making, strategic partnerships, appraisal of employees and resource planning.

Most small to medium-sized business owners know the frustration of spending more time than
they want on non-revenue generating activities from payroll to human resource management to
benefits and compensation.The answer for many businesses may be to outsource part of their HR
function to third party providers so that they can focus on their core business and also has the
following benefits-

1. Save money and reduce operating costs

2. Allow the company to focus on its core business
3. Reduce the number of HR staff and related staff expenses
4. Allow HR staff to focus more on strategy
5. Avoid the costs of major investment in technology
6. Improve metrics/measurement

ORGANIZING - HR

HR managers should be well aware of organizing everything related to human resource and
organization as organizing is the process of making and arranging everything in the proper
manner in order to avoid any confusion and conflicts.

 Giving each member a specific task to finish overall objectives of the job given to an
employee is the duty of the Human Resource Manager, besides it also to the duty of
Human resource manager to define task clearly before entrusting the job to an employee.
HR managers should keep in mind that the task entrusted to employees should be
matched with their skill set and abilities and It is also look out of HR managers to give
training to employees in the area or subject which is going to be entrusted to employees,
otherwise the task entrusted to employees gets failed and defeated.
  Establishing departments and divisions according to the nature of jobs and works in
order to improve the efficiency, expertise and speed up the work. The Establishment of
separate divisions and departments would give easy and effective control over employees
by the management which would give better results and improve overall performance of
the organisation.

 Delegating authority to the members for a good cause and to make employees more
responsible towards their job and organisation is a part of employee development.
Delegating authority to employees makes them to be more responsible towards
organisation as there is a principle called authority equals to responsibility,vice versa
when you load an employee with responsibilities, he should be given authority so as to
fulfill the responsibilities casted upon the employee. Authority without responsibility and
responsibility without authority defeats its purpose. Therefore, when employees feel
responsible and accepts responsibilities, it is a good sign as it makes employees to be
engaged in the job.

 Establishing channels of authority and communication is the primary responsibility of

any human resource manager which would enable managers to effectively communicate
desired goals and objectives of the organisation. Having effective communication will
avoid conflicts, make staff to understand what exactly they are expected to and also
enables the manager to get the things done in time.

 Creating a system to coordinate the works of the members so as to make the

employees to work properly and not to cause any conflict in the allocation of the work to
the employees. Improper and discriminating allotment of the work we will do one or the
other employee feel overburden, burnout and can create conflicts among employees
among members which is not good for the organisational health.And building teams will
create teamwork which creates synergy among team that will bring out the best out of
them.

STAFFING - HR

Staffing is one of the key functions of human resource management as staffing is the process of
employing right people, providing suitable training and placing them in the right job by
paying them accordingly and satisfactorily.

 Determining the type of people to be hired should be emphasised as they are the

fundamental resource and investment for any organisation. Every organisation wants
right people with them, but they come at a price. Employee compensation is a key factor
 in primary motivating factor to attract talented and retain them in the organisation for a
long period of time.

 Compensating the employees is one of the core functions of the human resource
management. Among all the motivating factors money is the very important primary
motivating factor for any employee. Providing right compensation for the work done by
the employee will not only make the employee feel happy, it will also make the
organisation in compliance with employment laws of the land, if not it is unjustified and
amounts to exploitation of employees which is against the law.

 Setting performance standards, measuring and evaluating the

employees: A performance appraisal is meant to help employees realise their strengths
and shortcomings and receive a compensation accordingly. The very purpose of
appraising the performance of employees is to evaluate and compensate accordingly.
Unless an organisation sets performance standards fo its employees, it cannot compare
and measure employees actual performance with the standard performance. HR managers
take performance gaps of employees for making decisions on employees with regard to
rewarding them with bonus, profit-sharing, stock options and payment of incentives or
not. These employee performance gaps will not only be considered for making decisions
with regard to compensation but it is also considered for making decisions with regard to
initiate corrective actions on said employees, promoting them to higher levels and if any
employees performance gaps are high, such employees will be demoted, suspended or
sometimes may be discharges from job.

 Counselling the employees as a Human Resource manager, for understanding and

helping people who have technical, personal and emotional or adjustment problems with
an objective to reduce them, so that performance of employees are maintained at
expected level or even improved upon.

 Recruiting prospective employees and selecting the best ones from them is one of the
primary functions of human resource management. Recruiting is the process of inviting
the people who were willing to join the organisation and selecting the best out of them is
the crucial process in which various selection tests are conducted. Having best people in
the organisation will make that organisation is best in all the ways which would create
employer brand that will help to attract talented people and also make them to retain in
the organisation long period of time.

 HR Metrics: Application of formulas for measuring and calculating core HR issues so as

to draw exact HR results and current scenario of organisation. The very purpose of HR
metrics is to indicate current position and performance of the organisation.
Core HR issues where HR metrics can be applied are Time to fill an employee, Cost per hire of
an employee, Employee absenteeism rate, Employee training others, Turnover cost, Turnover
rate, annual Turnover of an employee, the Workers compensation cost for an employee, Revenue
per employee, Return on Investment (ROI) and Yield ratio.

DIRECTING - HR

Directing is a knowledge, discipline and formal way of communicating to others that what you
are expecting from them to do for you or to an organization. Unless an HR manager has capable
of directing, he / she can't be said as full-fledged HR manager. When an HR manager has right
directing capabilities, it gives clarity for employees what they are expected to perform, removes
confusion in employees and gives clarity of what results are expected by the management from
employees.

 Getting work done through subordinates so as to meet the organisation's goals and
objectives. Indeed, getting work done to others is an art which every Human resource
manager should possess, for which employee motivation by the Human Resource
Management influences and matters a lot.

 Ensuring effective two-way communication for the exchange of information with the

subordinates in order to effectively communicate the goals and objectives of the
organisation as it plays a key role in understanding what the Human Resource manager or
organisation is expected from employees to perform. Mis communication between
employees block the progress and even would lead to conflicts which eventually affects
the overall performance of the organisation.

 Motivating subordinates to strive for better performance by way of providing

employee recognition, rewards, intrinsic benefits, paid vacations, increments in salary,
gifts, any social security benefits to employees and their family members is one of the
functions of Human Resource Management.

 Maintaining the group morale by way of fair treatment among employees, being ethical
and generous towards employees, management being loyal to its employees and giving
priority to employee concerns. It is the responsibility of the human Resource Manager to
guide always to its employees, otherwise the lack of guidance often kills the morale of
employees. Training and development programs not only improve the skills of
employees, but also boost their morale, thereby making them happy and leading to longer
tenures. Apart from breaking the monotony in the workplace, training programs offer
employees a learning platform where they are able to master new skills and become more
marketable.
CONTROLLING - HR

HR managers should have the knowledge of controlling all HR related matters, as they should be
able to think and decide what should be done and what should not be done and which should be
done and which should not be done while dealing with employees.

 Establishment of standard performance so as to measure the actual performance of the

employees by conducting performance evaluation for appraisals

 Measurement of actual performance to the established performance standards of

employees for finding out the gaps in employee performance.

 Comparison of actual performance with the standard one to find the deviation for
initiation of corrective actions, if there are any deviations. Corrective actions include
giving proper and suitable training to such employees or withholding of increments in
payments until performance gaps are none. Demotion of employee, suspension and
discharge from a job is initiated when serious deviations are identified

Operative function of Human Resource Management

PROCUREMENT - HR

 Job analysis is a systematic process of gathering all the data & information pertaining to
the job for preparing of  job specification which determine the skills, qualifications &
traits for job  and preparation of job description which describes the duties and
responsibilities so as to recruitment and selection of employee, give satisfaction on the
job, and feel motivation while doing the job,etc. Harry L. Wylie defines  "Job analysis
deals with the anatomy of the job.....This is the complete study of the job embodying
every known and determinable factor, including the duties and responsibilities involved
in its performance; the conditions under which performance is carried on; the nature of
the task; the qualifications required in the worker; and the conditions of employment such
as pay, hours, opportunities and privileges"
Job design   is the process of deciding on the content of a job in terms of its duties and
responsibilities; on the methods to be used in carrying out the job, in terms of techniques,
systems and procedures and on the relationships that should exist between the job holder and the
superiors, subordinates and colleagues. Job enlargement, job enrichment, job rotation, and job
simplification are the various techniques used in a job design exercise.  Job design goal is to
minimize physical strain on the worker by structuring physical work environment around the
way the human body works.

 Recruitment & selection - Recruitment and selection of the human resources for an

organisation is the major and basic function of human resource management. Human
resources planning and recruiting precede the actual selection of people for positions in
an organisation. Recruiting is the process of inviting qualified job seekers by using
different platforms like issuing notification in regular newspapers or employment
newspapers which are exclusively meant for employment news and notifications,
television media, online and on social networking websites which have become mostly
used resources for recruitment and hiring people. There are two major source of
recruitment of employees, one is recruitment through internal sources and the other is
 recruitment through external sources. Internal recruitment is the process of inviting or
giving chance to the people relating to concern organisation or to the people relating to
the existing employees or directly giving opportunity to the existing employees. External
recruitment is the process of inviting job seekers who do not belong to or anyway related
with an organisation, which simply means inviting outside candidates.

Subsequently, selection of right person form the pool of candidates by administering various
selection tests like preliminarily screening, written tests, oral tests and interviews etc.


Human resource planning (HRP) may be defined as strategy for acquisition, utilization,
improvement and preservation of the human resources of an enterprise. The objective is
to place right personnel for the right work and optimum utilization of the existing human
resources. HRP exists as a part of the planning process of business.
o The major activities of Human resource planning include:
1. Placement of employee in the job where he exactly fit
2. forecasting (future requirements),
3. inventorying (present strength),
4. anticipating (comparison of present and future requirements) and
5. planning (necessary programme to meet future requirements).
  Induction & Orientation: Induction of Employee is the first step towards gaining an
employees' commitment, Induction is aimed at introducing the job and organization to the
recruit and him or her to the organization. In a nutshell, it covers the organization’s
history, philosophy, mission and vision, and the managerial style of the
organization. Inform the financial benefits and different taxation policies
offered. Addresses trainings offered, performance expectations, and the work schedules
of the organization. Educate new employees on the laws, regulations and company
policies that applies to their role. Highlight the different safety and security aspects
related to the work environment. Orientation is the planned introduction of new
employees to their jobs, coworkers, and the organization so as to alien an employee with
their job role.

 Explain the role employees have to play to achieve organization's goals.

 Portray the organization structure demonstrating the various departments, the
people involved and their respective designation.It covers all the information
starting from customer profile, to the competitors’ product and services.

 Socialization is a process of making employees to mingle up with everyone for team-

spirit

DEVELOPMENT - HR

 Career planning and Career development; process of establishing personal career

objectives by employees and acting in a manner intended to bring them about. HR
managers should help their employees in knowing their strengths for placing them in
suitable job, guide employees what skills and knowledge should be acquired for attaining
higher positions, planning for suitable training for polishing existing skill set and
providing good work-life-balance to make balance between career and personal life, 
after all, every one work for their personal life . Career development according
to Schuler, "It is an activity to identify the individual needs, abilities and goals and the
organization’s job demands and job rewards and then through well designed programmes
of career development matching abilities with demands and rewards". Career
development does not guarantee success but without it employees would not be ready for
a job when the opportunity arises. HR managers should encourage their employees by
providing them suitable opportunities to grow  for promoting them to higher jobs
according to their skills and knowledge, identify and provide opportunities to employees
to learn new skills in the job and compensate accordingly and guiding employees in right
career path to develop in their career.
Top preferences for employees in India
* Career development
* Learning and training opportunities
* Good work-life balance
* Good relationship with superiors

 Executive development ; developing the skills and competencies of those that (will)
have executive positions in organisations.

 Employee training and development is the subsystem of an organization and core

function of human resource management. It ensures continuous skill development of
employees working in organisation and habituates process of learning for developing
knowledge to work. Imparting Training and Development to employees through
various methods is the foundation for obtaining quality output from employees.
Employee training methods or categorised into on-the-job training methods and off the
job training methods.

On-the-job training methods: job rotation, coaching, job instruction, committee

assignments, apprenticeship and internship

Of the job training methods: classroom lecture method, audiovisual training

method, simulation, bistable training, case studies, role playing and the
programmed instruction method.

 Overall development of organisation: Though human resource department is one of the

departments in organization, but it is linked to overall development of organisation as
employees are center for final output and organisation's performance. Whatever type of
job or department in any organisation  is made up-of employees alone. HR department
should keep in mind that it isn't just simply dealing with employees, but it's every HR
activity effects the performance of employees in turn it will show cascade effect on final
output of employees and finally on overall performance of organisation. If employees
aren't provided with proper and  relevant training, it would effect  their performance,
likewise if all employees have same situation  it would badly effects the organisation. If
employees aren't kept motivated continuously by way of providing benefits and perks
will lead them to become lethargy or if HR department fails to maintain and comply with
employment laws would sometime lead cancellation of business licence.

To make this point clear, Human resource department's failure to maintain employee safety,
welfare and healthy measures acccording to The Factories Act 1948 or failure to have an ICC
(Internal Complaints Committee) according to Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 will sometimes lead to closure or
cancellation of business. Like that there are other employment laws which makes organisation to
be in compliance with it for smooth running of organisation, if not it will invite unnecessary
troubles to
COMPENSATION - HR

 Job evaluation; analyzing and assessing various jobs systematically to ascertain their

relative worth in an organization.

 Performance evaluation is also called as performance appraisal of employees. Human

Resource Managers can adopt various methods for assessing the performance of the
employees So as to take decisions with regard to compensating and rewarding
employees, training of employees if performance is poor and it would take corrective
actions on employees whose performance is poor. In order to evaluate the performance of
employees, HR managers first have to set up performance standards for comparing with
actual performance of employees to find out gaps of employee performance. Performance
evaluation or appraising performance of employees is the core and major task when
compared with other human resource management functions.

1. Traditional methods of Performance Appraisal

2. Modern Methods of Performance Appraisal
3. 360 Degrees Performance Appraisal

How to Give an Effective Employee Evaluation?

Define Expectations
•  Define what is expected of the employee
•  Make sure goals are measurable and observable
Create Goals
•  Discuss the goals with the employee
•  Obtain the employee’s agreement and signature
Provide Written Evaluations
•  Every six months, discuss performance
•  For struggling employees, consider once-a-month evaluations
•  Ensure written performance reviews reflect the entire evaluation period
Maintain a Performance Record
•  Make written notes throughout the year
•  Do both praising and correcting—in real time
Ensure Integrity of Evaluation
•  Written comments should be factual, detailed, and constructive
•  Performance criteria shouldn’t be changed after the review
•  Evaluations shouldn’t digress from the measures initially defined
  Wages or salary administration as prescribed by the labour laws, Wages for workers or
salary for employees is the basic and primary thing for which employee's work for an
organisation. It's administration of salaries by HR managers is very crucial function as
financial implications and legal complaince is involved. Any deviations in payment of
salaries will lead to immediate dissatisfaction of employees and effects their moral and
any failure in payment of salaries, statutory contributions by employee and statutory
deductions from salary of an employee in accordance with the employment laws will
invite unnecessary complications and will be liable for penal action by the court of law.
Hence it is lookout of the Human resource management department to avoid such costly
mistake which also effects the organisation's reputation (Employer branding).    wages
are classifieds as

1. Minimum wage -  It is also called as irreducible wage, which should be

sufficient for worker to get food clothing and shelter.
2. Fair wage - Wage which is paid according to the work of the work
3. Living wage - It is just above minimum wage, which is sufficient to meet
minimum health expenses, children education with food, clothing and
shelter.

Salary nomenclature is used in the context of employees. Generally salary of employees is paid

monthly and it consist of various components like basic pay, dearness allowance and house rent
allowance especially in the case of government employees. Whereas private employees' salary
normally doesn't consist of said components as it is paid under single head that is salary and
benefits of employees doesn't come under salary head, therefore employee benefits could be
monetory or nonmonetary cannot be counted with salaries of employees, they are specifically
provided for providing social security and motivating employees. Especially government
employee salary format will be  Salary = Basic pay+ Dearness allowances+ House rent
allowance.

 Employee rewards, perks and benefits payments according to the employment and

labour laws. Employee benefits are categorised into statutory or mandatory and voluntary
benefits. Statutory benefits are compulsory benefits for employees, its denial for
payment of such benefits to their employees by the management, can be challenged in
the court of law. Whereas voluntary benefits claims cannot be legally enforceable in
the court of law in case management fails to pay to their employees. The purpose of
payment of voluntary benefits to employees is to attract talent, for retention of employees
in the organisation and for motivating employees, ultimately to keep employees happy.
Most of the voluntary benefits are non-monetary.

MAINTENANCE / MOTIVATION - HR
  Employee well-being; Providing good working conditions at workplace is the
fundamental duty of Human Resource Management department. Treating employees
inhumane is against to the Constitution of  India according to [Article 42 under Chapter
XXXIV of Directive Principles of State Policy of the Constitution of India]. 

It is also the duty of Human Resource Management to provide welfare measures like Pure water
drinking facilities, restrooms, lunchroom in an organisation having more than 150 employees,
minimum medical aid facility for 150 employees, maintenance of an ambulance in an
organisation having more than 500 employees, canteen in an organisation having more than 250
employees, crèches for children in the organisation having more than 30 women employees and
sitting facilities for employees wherever it is required and possible.as prescribed under The
Factories act 1948.

 Social security for employees: Providing and contributing Employee Provident fund,

Payment of Bonus, compensation, payment of gratuity, maternity benefit, paternity
benefit and employee insurance. In India there are few social security legislation which
are to be followed and complied by any organisation and it is the duty of the Human
Resource Manager to look after it.

 Payment of Gratuity Act, 1972

 Workmen's Compensation Act, 1923
 Employee State Insurance Act, [ESI] 1948
 Payment of Bonus Act, 1965
 The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 
 Maternity Benefit Act,1961 (Maternity Benefit (Amendment) Act, 2017)
o Maternity leave laws

 Worker's participation encouragement either individually or collectively, become

involved in one or more aspects of organizational decision making within the enterprises
in which they work Would make employees feel motivated, satisfaction and stay loyal to
the management. Therefore it would avoid unnecessary conflicts in between employees
and management while implementing management decisions. Management should ensure
decisions should not be taken arbitrarily without considering or consulting their
employees who work for their organisation. Especially human resource managers should
not take management decisions on their whims and fancies, especially in decisions
relating to their employees.. Article 43A of the Constitution of
India guarantees  'Participation of workers in management of industries' and falls
under Part IV - Directive Principles of State Policy and it should be ensured and
honoured by an organisation's human resource management.
  Providing Good work-life balance

 Motivating employees stimulate the desire and energy in employees to be continuously

interested in a job and committed it, role, or subject, and to exert persistent effort in
attaining a goal. The most important motivating factors for employees are to have a
healthy and good working environment, to have good monitory benefits, compensation
and rewards, to have encouragement and support from management and to have a chance
of professional growth and raise.

 Job rotation is the human resource management technique in which employee is  moved
between two or more jobs in a systematic and planned manner. The objective is to expose
an employee to different experiences and wider variety of skills to enhance job
satisfaction and to cross-train them.

Advantages of job rotation of an employee are eliminate boredom of an employee, encourage

development, give employees a break from strenuous job duties, helps HR manager identify
where employee work best and gives HR manager a backup plan if an employee leaves.

 Maintaining HR records in accordance with employment laws and oranisational needs

is the basic function of Human Resource Management, conducting research for
identification of HR issues and find suitable solutions, doing Human Resource audit by
systematic verification strategies, policies, procedures, documentation, structure, systems
and practices with respect to the organization’s human resource management. 

 Human Resource  information system implementation lets you keep track of all your
employees and all information about them. It is usually done in a database or, more often,
in a series of inter-related databases.

NTEGRATION - HR

 Industrial relations is the process of management dealing with one or more unions with
a view to negotiate and subsequently administer collective bargaining agreement or
labour contract. Maintaining proper industrial relationships is the core activity of Human
Resource Management so as to avoid industrial disputes.

 Employee Discipline is a systematic procedure the set-rights and corrects or punishes a

subordinate by superior because a rule of procedure has been disobeyed or violated.
Discipline is the force that prompts employees to observe rules, regulations, standards
and procedures deemed necessary for an organization.
  Grievance redressed; Grievance procedure is a formal communication between an
employee and the management designed for the settlement of a grievance of employees.
Grievance procedures differ from organization to organization as grievances can be very
damaging if not handled properly. The key causes of employee grievances are

1. Grievance resulting from management policies include

2. Grievance resulting from working conditions
3. Grievance resulting from inter-personal factors

 Dispute settlement : Causes of industrial disputes can be broadly classified into two

categories: economic and non-economic causes. The economic causes will include issues
relating to compensation like wages, bonus, allowances, and conditions for work,
working hours, leave and holidays without pay, unjust layoffs and retrenchments. The
non economic factors will include victimization of workers, ill treatment by staff
members, sympathetic strikes, political factors, indiscipline etc. (The Industrial
Disputes Act, 1947 governs rules for the settlement of disputes between the management
of industrial establishments and workmen.)