MBA 2-HRM Notes-Module 1-3 (Internals)

Course Title: Human Resource Management
Course Code: HR 612 AGBS - INDORE
MBA II SEMESTER (2021-23)
HUMAN RESOURCE MANAGEMENT

Course Contents/Syllabus:
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MODULE I
INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
CONCEPT OF HUMAN RESOURCE MANAGEMENT

✓ Human Resource Management (HRM) may be defined as a set of policies, practices, and
programmes designed to maximise both personal and organisational goals.
✓ It is the process of binding people and organisations together so that the objectives of each are
achieved.
DEFINITIONS
➢ According to Flippo – human resource management is “the planning, organising, directing and
controlling of the procurement, development, compensation, integration, maintenance and
reproduction of human resources to the end that individual, organisational and societal objectives
are accomplished.”
➢ According to the National Institute of Personnel Management of India, “human resource
management is that part of management concerned with people at work and with their
relationships within the organisation. It seeks to bring together men and women who make up an
enterprise, enabling each to make his own best contribution to its success both as an individual
and as a member of a working group.”
CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT

1. Comprehensive Function – Human Resource management is concerned with managing people at work.
It covers all types of people at all levels in the organisation. It applies to workers, supervisors, officers,
managers, and other types of personnel.
2. People-oriented - Human Resource management is concerned with employees as individuals as well as

groups. It is the process of achieving the best fit between individuals, jobs, organisations, and the
environment. It is the process of bringing people and organisations together so that the goals of each are
met.
3. Action-oriented - Human Resource management focuses on action rather than on record-keeping or

procedures. It stresses the solution of human resource problems to achieve both organisational objectives
and employees personal goals.
4. Individual-oriented – Under human resource management, every employee is considered as an

individual so as to provide services and programmes to facilitate employee satisfaction and growth.
5. Development-oriented - Human Resource management is concerned with developing potential of

employees so that they get maximum satisfaction from their work and give their best efforts to the
organisation.
6. Pervasive Function – Human resource management is inherent in all organisations and at all levels. It is
not confined to industry alone. It is equally useful and necessary in government, armed forces, sports
organisations and the like. It spread through all the functional areas, e.g., production, marketing, finance,
research, etc.
CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT
7. Continuous Function – Management of human resources is an ongoing or never-ending exercise rather

than a ‘one shot’ function. In the words of Terry, “it cannot be turned on and off like water from a
faucet; it cannot be practised only one hour each day or one day a week. Human resource management
requires a constant alertness and awareness of human relations and their importance in everyday
operations.”
8. Challenging Function – Managing of human resources is a challenging job due to dynamic nature of
people. People have sentiments and emotions so they cannot be treated like machines. It is, therefore,
necessary to handle them tactfully (delicately). It is not simply managing people but administering a
social system.
9. Science as well as Art – HRM is a science as it contains an organised body of knowledge consisting of
principles and techniques. It is also an art because it involves application of theoretical knowledge to the
problems of human resources. In fact, handling people is one of the most creative arts.
10. Nervous System - Human resource management is similar to the nervous system in the human body.
The nervous system is not an adjunct to the body but is inherent in the whole body and intimately
associated with its every movement. Similarly, human resource management is not an extraneous
element to the organisation structure. Rather it lies embedded in the structure, is inherent in its
functioning and an integral part of the process of management itself. Human resource management
cannot be separated from the basic management function.
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

1. To help the organisation attain its goals by providing well-trained and well-motivated employees.
2. To employ the skills and knowledge of employees effectively and efficiently, i.e., to utilise human
resources effectively.
3. To enhance job satisfaction and self-actualisation of employees by encouraging and assisting every
employee to realise his/her full potential.
4. To establish and maintain productive, self-respecting and internally satisfying working relationships
among all the members of the organisation.
5. To bring about the maximum individual development of members of the organisation by providing
opportunities for training and development.
6. To secure the integration of all the individuals and groups with the organisation by reconciling
individual/group goals with those of an organisation.
7. To maintain high morale and good human relations within the organisation.
8. To help maintain ethical policies and behaviour inside and outside the organisation.
9. To manage change to the mutual advantage of the individuals, groups, the organisation and the society.
10. To recognise and satisfy individual needs and group goals by offering appropriate monetary and non-
monetary incentives.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
1. Significance for an enterprise – Human resource management can help an enterprise in

achieving its goals more efficiently in the following ways:
a. Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement, orientation, compensation and promotion policies.
b. Developing the necessary skills and right attitudes among the employees through
training, development, performance appraisal, etc.
c. Securing willing cooperation of employees through motivation, participation, conflict
handling, etc.
d. Utilising effectively the available human resources.
e. Ensuring that the enterprise will have in future a team of competent and dedicated
employees.
2. Professional Significance – Effective management of human resource helps to improve the

quality of work life. It permits team work among employees by providing a healthy working
environment. It contributes to professional growth in the following ways:
a. Providing maximum opportunities for personal development of each employee.

b. Maintaining healthy relationships among individuals, and different work groups.
c. Allocating work properly.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
3. Social Significance – Sound human resource management has a great significance for the
society. It helps to enhance the dignity of labour in the following ways:
a) Providing suitable employment that provides social and psychological satisfaction to
people.
b) Maintaining a balance between the jobs available and the jobseekers in terms of
numbers, qualifications, needs and aptitudes.
c) Eliminating waste of human resources through conservation of physical and mental
health.
4. National Significance – Human resource management plays a vital role in the development
of a nation. The effective exploitation and utilisation of a nation’s natural, physical and
financial resources require an efficient and committed manpower. The level of development in
a country depends primarily on the skills, attitudes, and values of its human resources.
Nations are underdeveloped because their people are underdeveloped. Effective management
of human resources helps to speed up the process of economic growth which, in turn, leads to
higher standards of living and fuller employment.
SCOPE OF HUMAN RESOURCE MANAGEMENT

The Indian Institute of Personnel management has described the scope of human resource management
into the following aspects:
1. The labour or human resource aspect – It is concerned with manpower planning, recruitment,
selection, placement, induction, transfer, promotion, demotion, termination, training and development,
layoff and retrenchment, wage and salary administration (remuneration), incentives productivity, etc.
2. The welfare aspect – This aspect is concerned with working conditions and amenities such as
canteens, creches, rest rooms, lunch rooms, housing, transport, education, medical help, health and
safety, washing facilities, recreation and cultural facilities, etc.
3. The Industrial relation aspect – This is concerned with the company’s relations with the employees.
It includes union-management relations, joint consultation, negotiating, collective bargaining,
disciplinary actions, settlement of industrial disputes, etc.
In India, human resource management now consists of three main branches:
a. Human resource administration which deals with administrative duties such as selection, placement,
training, promotion, transfer, wage and salary administration, etc.
b. Industrial relations concerned with employer employee relations, negotiations, collective bargaining,
dispute and joint consultation.
c. Labour welfare consisting of facilities like canteen, creches, housing, education, medical aid,
recreation, etc.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
1. Planning Procurement Development Compensation

Function Function Function
2. Organising
I M
3. Directing
n a
4. Controlling F F
t i
a. Job Analysis a. Performance and u u
e n
a. Job Evaluation n n
b. Human Resource Potential g t
c c
b. Wage and r e
Planning Appraisal t t
Salary a n
i i
c. Recruitment b. Training t a
Administration o o
d. Selection c. Executive i n
n n
c. Bonus o c
e. Placement Development n e
f. Induction or d. Career Planning
Orientation and Development

Management of human resources consists of several inter-related functions. These functions are common
to all organisations through every organisation may have its own human resource management
programme. These functions of human resource management may broadly be classified into two
categories, viz.,
I. Managerial function.
II. Operative functions.
I. Managerial Functions – Managing people is the essence of being a manager. Like other managers, a
human resource manager performs the functions of planning, organising, directing and controlling.
1. Planning – Planning is the process of deciding the goals and formulating policies and
programmes to achieve the goals. In the area of human resource management, planning involves
deciding human resource goals, formulating human resource policies and programmes,
preparing the human resource budget, etc.
2. Organising – In order to implement the plans, a sound organisation structure is required.

Organising is the process of allocating tasks among the members of the group, establishing
authority-responsibility relationships among them and integrating their activities towards the
common objectives. In this way, a structure of relationships among jobs, personnel and physical
factors is developed.

3. Directing – Directing is the process of motivating, activating, leading, and supervising people.
Directing includes all those activities by which a manager influences the actions of subordinates.
Directing also helps in building sound individual and human relations in the organisation.
4. Controlling – It implies checking, verifying and regulating to ensure that everything occurs in
conformity with the plans adopted and the instructions issued. Controlling the management of human
resources involves auditing training programmes, analysing labour turnover records, directing morale
surveys, conducting separation interviews and such other means.
II. Operative Functions – The operative or service functions of human resource management are
concerned with specific activities of procuring, developing, compensating, and maintaining an
efficient work force.
1. Procurement Function – It is concerned with securing and employing the right kind and proper
number of people required to accomplish the organisational objectives. It consists of the following
activities:
a. Job analysis – It is the process of studying in detail the operations and responsibilities involved
in a job so as to identify the nature and level of human resources required to perform the job
effectively. Jon descriptions and job specifications are prepared with the help of information
provided by job analysis.

b. Human Resource Planning – It is the process of estimating the present and future manpower
requirements of the organisation, preparing inventory of present manpower and formulating
action programmes to bridge the gaps in manpower.
c. Recruitment - It is the process of searching for required human resource and stimulating them
to apply for jobs in the organisation.
d. Selection - It implies judging the suitability of different candidates for jobs in the organisation
and choosing the most appropriate people.
e. Placement – It means assigning suitable jobs to the selected candidates so as to match

employee qualifications with job requirements.
f. Induction or Orientation – It involves familiarising the new employees with the company, the
work environment and the existing employees so that the new people feel at home and can start
work confidently.
2. Development Function – Human resource development is the process of improving the knowledge,
skills, aptitudes and values of employees so that they can perform the present and future jobs more
effectively. This function comprises the following activities:
a. Performance and Potential Appraisal – It implies systematic evaluation of employees with

respect to their performance on the job and their potential for development.
b. Training – It is the process by which employees learn knowledge, skills and attitudes to further
organisational and personal goals.
c. Executive Development – It is the process of developing managerial talent through appropriate

programmes.
d. Career Planning and Development – It involves planning the career of employees and
implementing career plans so as to fulfil the career aspirations of people.
3. Compensation Function – It refers to providing equitable and fair remuneration to employees for
their contribution to the attainment of organisational objectives. It consists of the following activities:
a. Job Evaluation – It is the process of determining the relative worth (value) of a job.
a. Wage and Salary Administration – It implies developing and operating a suitable wage and
salary programme.
a. Bonus – it involves payment of bonus under the Payment of Bonus Act, 1965 as well as non-
statutory bonus and other incentives.

4. Integration Function – It is the process of reconciling the goals of the organisation with those of its
members. Integration involves motivating employees through various financial and non-financial
incentives, providing job satisfaction, collective bargaining, worker’s participation in management,
conflict resolution, developing sound human relations, employee counselling, improving quality of
work life, etc.
5. Maintenance Function – It is concerned with protecting and promoting the physical and mental
health of employees. For this purpose, several types of fringe benefits such as housing, medical aid,
educational facilities, conveyance facilities, etc. are provided to employees. Social security measures
like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group
insurance, etc. are also arranged. Health, safety, and welfare measures are designed to preserve the
human resources of the organisation.
Human resource records and research are also important elements of the maintenance function.
ROLE OF HUMAN RESOURCE MANAGER
1. As a Specialist – Human resource manager is an expert. As a specialist, he advises the heads

of different functional departments on various aspects of human resource management, such
as human resource planning, recruitment, selection, orientation, training, appraisal,
compensation, etc. With his counsel and suggestions, functional managers can perform these
functions successfully. The human resource manager should provide information, suggestions,
and assistance in such a way that he is considered a source of help rather that a source of
threat to line managers. He should earn their confidence and goodwill. Staff assistance is
likely to be effective when it is wanted rather than when imposed.
2. As an Information Source – The human resource manager provides valuable information

about labour market, labour laws and other related areas. Such information is necessary for
the formulation of proper policies and procedures about human resources. He serves as a
record keeper and researcher to provide the required information.
3. As a Change Agent – The human resource manager can serve as an internal change agent t
initiate and spearhead necessary improvements in human resource practices. As a consultant,
he can provide necessary infrastructure and support for organisational development. He helps
in introducing and implementing major institutional changes in the organisation. He is an
innovator in human resource matters. To be an effective consultant, the human resource
manager should be familiar with the needs and changing environment of the organisation.
ROLE OF HUMAN RESOURCE MANAGER

4. As a Controller – The human resource manager assists line managers in effective
implementation of human resource policies and programmes. His advice and service is
essential for monitoring and controlling the progress. As an arm of the top management, the
human resource manager ensures that the human resource policies and procedures approved
and adopted by the management are being consistently carried out in all the departments.
5. As a Liaison Man – Very often the human resource manager is asked to act as a linking pin
between different departments/divisions of an organisation.
6. As a Housekeeper – The human resource managers looks after the safety, health, welfare, etc.
of employees.
7. As a Fire Fighter – In union-management relations, the human resource manager acts as a

shock absorber. He is the management’s defence against trade union activists. He acts as a
trouble shooter.
STATUS OF HUMAN RESOURCE MANAGER

1. The Policeman – The earliest position that the human resource manager occupied was that of
a policeman. Management believed that workers dislike work and avoid responsibility.
Therefore, they need to be directed, controlled, and coerced. The human resource manager
was used as a watchdog to enforce prescribed regulations. When the employees agitated,
shouted slogans and held gate meetings, a man was needed to discipline and control them.
The human resource manager was required to handle law and order problems within the
industry.
2. The Law Man – With the establishment of Welfare State, laws and regulations were enacted
to protect and promote the interest of employees. Employers felt the need to study and
interpret labour laws to assess their legal obligations, and to represent them before the law
enforcing agencies. In the legal battle with workers, human resource manager become an
employer’s advocate. He was required to issue charge sheets and hold inquires against
workers.
3. The Liaison Man – With the passage of time trade unions become powerful. Employers
required someone to deal and negotiate with the union. The human resource manager was
asked to take over the job. He also became a shock absorber and a scapegoat. He was now and
then misunderstood, ridiculed but again recalled.
STATUS OF HUMAN RESOURCE MANAGER
4. The Catering Man – Some enlightened employers began to provide welfare facilities like
canteen, creche, etc. to workers in addition to their legal obligations. The human resource
manager began to administer these services.
5. The Welfare Man – Under Section 49 of the Factories Act, a welfare officer has to be
appointed in specific factories. He is expected to handle labour aspects like recruitment,
welfare aspect like housing and industrial relations aspect like collective bargaining.
6. The Productivity Man – Today, human resource manager is considered an expert in human
relations. He is expected to improve productivity by fulfilling the economic, social and
psychological needs and aspirations of employees. In the years to come, human resource
manager will have to meet the challenge of a fast changing post-industrial society.
CONCEPT AND NATURE OF HUMAN RESOURCE POLICIES

1) Human resource policies are based upon or derived from the human resource objectives
of the organisation.
2) Human resource policies are general statements of broad understanding. Being guides
to thinking in decision-making, they always provide a room for discretion.
3) Human resource policies reflect the recognised intensions of top management with
regard to the human resources of the organisation. They contain the principles of
conduct which are to govern the organisation’s dealings with employees.
4) Human resource policies are standing plans. They can be used again and again as
standing answers to problems of a recurring nature. They are long lasting.
5) Responsibility for formulating human resource policies lies with the human resource
department and the top management. Human resource policies are formulated by the
human resource department in consultation with the line managers. But the policies so
formulated require approval of top management.
NEED AND IMPORTANCE OF HUMAN RESOURCE POLICIES
1. Clear Thinking – The actual process of writing down a human resource policy helps to clarify
management thinking. The management is required to examine its basic convictions and give
full consideration to practice in other organisations. The top executives become aware of gaps,
contradictions and vagueness in existing policies.
2. Uniformity and Consistency of Administration – Well-established policies ensure uniform

and consistent treatment of all employees throughout the organisation. Such policies help to
minimise discrimination and favouritism. Sound human resource policies are, therefore, an
essential base for sound human resource practices. Policies provide the base for management
by principle as contrasted with management by expediency.
3. Continuity and Stability – Written policies are a means of transmitting the company’s
heritage from one generation of executives to another. The accumulated wisdom in accompany
is lost when its top management team retires, dies, or resigns. But if the wisdom is retained in
the form of written policies, succeeding generations of managers can gain from the experience
of their predecessors. Such continuity of policies promotes stability in the organisation.
4. Sense of Security – Written human resource policies provide advance information and
predictable decisions on human resource matters. Employees know what action to expect in
circumstances covered by the policies. Policies set patterns of behaviour and permit
employees to work more confidently. As a result, employees feel a sense of security.
NEED AND IMPORTANCE OF HUMAN RESOURCE POLICIES
5. Delegation of Authority – Human resource policies are guides to decision on problems that
recur frequently. They help a manager to delegate authority. Subordinates are more willing to
accept responsibility because policies indicate what is expected of them. The superior is freed
from repetitive and time-consuming decisions and can give more time to key matters.
6. Orientation and Training – Written human resource policies can be used as guides for
orientation and training of new employees.
7. Teamwork and Loyalty – A well-prepared set of human resource policies enables employees
to see the overall picture and how their actions relate to the organisation’s goals. Participation
of employees in policy formulation promotes mutual understanding throughout the
organisation. As a principles of fair play and justice, policies help to build up employee morale
and loyalty.
8. Better Control – Human resource policies serve as standards for evaluating effectiveness of
human resource management. Policies facilitate management by exception.
9. Prompt Decision-making – Carefully defined human resource policies serve as guide for
making-decisions on routine and repetitive issues. They prevent the wastage of time and
energy involved in repeated analysis for solving problems of a similar nature.
TYPES OF HUMAN RESOURCE POLICIES

1. Originated Policies - These policies are established formally and deliberately by top
management. Senior executives initiate such policies to guide their subordinates.
2. Appealed Policies – These policies are formulated on request of subordinates who wants to
know how to handle some situations. The need for such a policy arises because the particular
case is not covered by the earlier policies.
3. Imposed Policies – An organisation accepts these policies due to pressure of external agencies
like Government, trade associations, trade union, etc. For example, the policy that no body
below the age of fourteen years will be employed is adopted due to the Factories Act.
4. General Policies – These policies do not relate to any specific issue in particular. Rather they
represent the basic philosophy and priorities of top management. For example, encouraging
workers to participate in decision-making at all levels is a general policy.
5. Specific Policies – These policies relate to specific issues like staffing, compensation, collective
bargaining, etc. All specific policies must conform to the broad pattern laid down by the general
policies.
6. Written or Implicit Policies – These policies are inferred from the behaviour of managers. For
example, in the absence of anything in writing, promotion policy of an enterprise can be inferred
from the way promotions have been made.
ESSENTIALS OF A SOUND HUMAN RESOURCE POLICIES

1. A human resource policy should contribute to human resource objectives and objectives of
the organisation as a whole. It should be based on the philosophy that human beings are the
most valuable asset of any organisation.
2. It should be stated in clear, definite and easily understood terms so that what it proposes to
achieve is evident. Only a clear policy statement can serve as a guide to thinking and
decision-making.
3. It should be in writing as far as possible. This is necessary to preserve the policy against
loss, to prevent misunderstanding and to ensure uniformity of application.
4. It should be reasonably stable and long lasting. Changes in a policy should be made only
when essential and at fairly large intervals.
5. It should be flexible so as to take care of individual differences and situational realities.
Therefore, a policy should be stated in broad terms and it should be reviewed and revised
periodically.
ESSENTIALS OF A SOUND HUMAN RESOURCE POLICIES

6. A policy should give due regard to interests of all the parties – the employer, employees
and the general public.
7. It should be consistent with the overall philosophy and objectives of the organisation as
well as with labour laws and public policy.
8. It should be formulated with active participation of executives, supervisors, and workers at
all levels and trade unions.
9. It should move from the authoritarian leadership style to participative style. In other
words, it should encourage self-development at all levels.
10. It should be based on careful analysis of facts as well as sound judgements.
11. It should be just, fair and equitable to internal as well as external groups. However, a good
human resource policy should recognise individual differences and respect human dignity.
12. It should be reasonable and capable of being executed. It should also recognise individual
differences among people.

MODULE II
HUMAN RESOURCE REQUIREMENTS
HUMAN RESOURCE PLANNING

Concept of Human Resource Planning
Human resource planning is defined as “the process by which management determines how an
organisation should move from its current manpower position to its desired manpower position.
Through it management strives to have the right number and the right kind of people at the right
place, at the right time, doing things which result in both the organisation, and the individual
receiving, maximum long range benefit.”
Definition
According to Stainer- “Manpower planning is the strategy for the acquisition, utilisation,
improvement and preservation of an organisation’s human resources. It is aimed at coordinating the
requirements for and the availability of different types of employees.”
According to Beach- “Human resource planning is a process of determining and assuming that the
organisation will have an adequate number of qualified persons, available at the proper times,
performing jobs which meet the needs of the enterprise and which provide satisfaction for the
individuals involved.”
Thus, human resource planning involves estimating manpower needs and formulating plans to meet
these needs.
Objectives of Human Resource Planning
1. The main objectives of human resource planning are as follows:
2. To ensure optimum use of existing human resources.
3. To forecast future requirements for human resources.
4. To provide control measures to ensure that necessary human resources are available as when
required.
5. To link human resource planning with organisational planning.
6. To assess the surplus and shortage of human resources.
7. To anticipate the impact of technology on jobs and human resources.
8. To determine levels of recruitment and training.to estimate the cost of human resources and
housing needs of employees.
9. To provide a basis for management development programmes.
10. To facilitate productivity bargaining.
11. To meet the needs of expansion and diversification programmes.
The ultimate purpose of manpower planning is “to relate future human resources to future enterprises
needs so as to maximise the future return on investment in human resources.”
Need and Importance of Human Resource Planning

Effective human resource planning offers the following benefits:
1. To carry on its work and to achieve its objectives, every organisation requires employees with
adequate knowledge, experience and aptitudes. Human resource planning is helpful in selection
and training activities. It ensures that adequate number of persons are selected and trained well in
advance to fill future job vacancies in the organisation.
2. Human resource planning identifies gaps in existing manpower in terms of their quantity and
talent. Suitable training and other steps can be taken in time to fill these gaps.
3. There is need to replace employees who retire, die, resign and become incapacitated due to injury.
Provision for replacement of personnel can be made through human resource planning.
4. Human resource planning creates awareness about the effective utilisation of human resources
throughout the organisation. It helps to reduce wastage of manpower.
5. Human resource planning is helpful in effective use of technological progress. To meet the
challenge of new technology existing employees need to be retrained and new employees may be
required.
6. Human resource planning is useful in anticipating the cost of human resources which facilitates
the budgeting process. It also helps in controlling human resource costs through effective
utilisation.
7. Human resource planning facilitates career and succession planning in the organisation. It
provides enough lead time for internal succession of employees to higher positions through
promotions. It also contributes to management succession and development.
8. At the national level, human resource planning facilitates educational reforms, geographical
mobility of talent and employment generation.
In recent years, focus of human resource planning has increased due to the following reasons:
1. Employment Situation. 6. Legislative Controls.
2. Technological Changes. 7. Pressure Groups.
3. Organisational Change. 8. Lead Time.
4. Demographic Change. 9. Hiring Costs.
5. Shortage of Skills. 10. Increased Mobility.
1. Employment Situation - On the one hand, the number of educated unemployed is increasing.
On the other hand, there is acute shortage for a variety of skills. Under-developed countries find
that shortage of talented and skilled manpower is a major obstacle to their industrial progress,
and they have to import certain skills.
2. Technological Changes - The widespread and rapid changes in production technology,
marketing methods and management techniques are having profound effects on the contents and
contexts of jobs. These changes create problems concerning redundancies, retraining and
redeployment of personnel. Systematic human resource planning can help to solve these
problems.
3. Organisational Change - Size of the firms is increasing. The environment of business has
become turbulent. Rapid changes in environment require changes in organisation structure and
activities which affect requirements for human resources. New human resource strategies are
needed to meet these new requirements.
4. Demographic Changes - The profile of the work force in terms of age, education, technical
skills and social background is changing. Such changes have significant implications for human
resource planning.
5. Shortage of Skills - Organisations have become increasingly complex and require a wide-range
of specialised skills. These skills are scarce, and problems arise when employees with these
skills leave an organisation.
6. Legislative Controls - Law with regard to working conditions, working hours, weaker sections,
women and child labour, casual and contract labour, etc. does not permit management to hire and
fire at free will. Therefor, managers, must look ahead and forsee manpower problems with the
help of systematic human resource planning.
7. Pressure Groups - Trade unions, politicians and displaced persons create pressures on
management for internal recruitment, promotions, preference to sons of the soil/displaced
persons/employee’s children, etc.
8. Lead Time - Longer lead time is required for selection and training of employees to handle new
jobs and technology successfully. This requires long-term human resource planning.
9. Hiring Costs - Recruitment and training costs are increasing. Increase in hiring costs encourages
upgrading from within the organisation, and planned retention through manpower planning.
10. Increased Mobility - Investment in human resources belongs to the employee who takes his
skills wherever he goes. With increasing mobility, organisations find it difficult to retain talented
personnel. Effective manpower planning helps to reduce employee turnover.
Process of Human Resource Planning

(Assessing Human Resource Requirements)
1. Analysing Organisational Plans.
2. Forecasting Demand for Human Resource (Manpower Forecasting).
a. Managerial Judgement.
b. Work-Study Method.
c. Ratio-Trend Analysis.
d. Mathematical Models.
i. Employments Trends.
ii. Replacement Needs.
iii. Productivity.
iv. Absenteeism.
v. Expansion and Growth.

3. Forecasting Supply of Human Resources.
4. Estimating Manpower Gaps.
5. Action Planning.
6. Monitoring and Control.

1. Analysing Organisational Plans - First of all, the objectives and strategic plans of the
company are analysed. Plans concerning technology, production, marketing, finance,
expansion and diversification give an idea about the volume of future work activity. It is
also necessary to decide the time horizon for which human resource plans are to be
prepared. The future organisation structure and job design should be made clear and
changes in the organisation structure should be examined so as to anticipate its manpower
requirements. It is necessary to study business plans because all manpower plans stem
from business plans relating to nature, level and organisation of activity.
2. Forecasting Demand for Human Resource (Manpower Forecasting) - On the basis of

corporate and functional plans, and future activity levels, the future needs for human
resources in the organisation are anticipated. The number of people and the skill levels
needed in future depend on the production and sales budgets in a manufacturing
enterprises. But the human resource requirements for a given level of operations vary
depending upon the production technology, process, make or buy decisions, job contents,
behaviour patterns and control systems. It is necessary to make projections for new
positions to be created and the vacancies arising in current manpower. Job analysis and
forecasts of future activity levels help in human resource forecasting.

Techniques employed in manpower forecasting are as follows:

a. Managerial Judgement – Under this method, experienced managers estimate the
manpower requirements for their respective departments on the basis of their knowledge of
expected future workload and employee efficiency. These departmental estimates are then
aggregated and approved by top management. This is a very simple and time-saving
method. But it is quite subjective and is, therefore, suitable only for small firms. The
estimates based on experience can be refined to some extent with the assistance of work
study, and human resources experts. This method helps in judging the influence of informal
group norms on manpower needs.
b. Work-study Method – In this method, time and motion study are used to analyse and
measure the work being done. With the help of such studies, standard time required per unit
of work is decided. The following example illustrates this method:
Example
Planned output for next years 50,000 units
Standard hours per unit 2
Planned hours required 50,000*2 = 1,00,000
Productive hours per worker in the year 2,000
Number of workers required 1,00,000
50
2,000
If the span of control is ten, five (50 ÷ 10) supervisor will be required to supervise
the work.

c. Ratio-Trend Analysis – Under this method, ratios (e.g., total output/number of workers, total
sales volume/number of salespersons, direct workers/indirect workers), are calculated on the
basis of past data. Future ratios are calculated on the basis of time series analysis/extrapolation,
after making allowances for expected changes in organisation, methods and jobs. Extrapolation
or projections is mathematical extensions of past data into a future time period. Moving averages
and exponential smoothing can be used for projection. On the basis of established ratios, the
demand for human resources is estimated. The following example illustrates this method:
Example
Production level in 2006-07 50,000 units
Number of workers in 2006-07 50
Ratio 5:50,000 or1:1,000
Number of supervisors in 2006-07 5
Ratio 5:50 or1:10
Estimated production in 2008-09 60,000 units
Number of workers required 60,000*1
60
1,000
Number of supervisor required in 2008-09 60*1
10 6
(If changes in physical stamina, mental ability, values of employees and technology
are expected in 2008-09, these estimates should be revised accordingly.)

d. Mathematical Models – A mathematical model expresses the relationship between independent

variables (e.g., investment, production, sales, etc.) and dependent variable (e.g., number of
employees required).
In other words, various factors influencing manpower needs are expressed in the form of a
formula. Several types of models, e.g., regression, optimization models, probabilistic models can be
used. These are complex and appropriate only for large organisations.
Future demand for human resources depends on several factors, some of which are given
below:
i. Employment Trends – Trends in the company’s manpower can be judged by comparing and
analysing the staff during the past five years.
ii. Replacement Needs – These depend on death, retirement, resignation, and termination of
employees. These can be assessed on the basis of past experience and retirement situation in
future.
iii. Productivity – Improvements in productivity influence manpower requirements. Better
utilisation of existing manpower is one method of securing gains in productivity. Work study
techniques can be used to judge manpower utilisation and improvement therein. Automation
and computerization is another method of productivity improvement. It will influence both the
quantity and quality of manpower required in future. Matching of skills with job requirements is
the third method. Job analysis techniques are helpful in such matching.

iv. Absenteeism – While estimating demand for manpower, the prevailing rate of absenteeism in
the company should be considered. The rate of absenteeism can be calculated as follows:
Mandays lost due to absenteeism
Absenteeism
Mandays worked + Mandays lost
In case the rate of absenteeism is considered unduly high, steps should be taken to reduce it.
v. Expansion and Growth – The company’s growth plans and expansion programme should be
carefully analysed to judge their impact on manpower requirements in future. Steps must be
taken in time for procuring and developing the talent required to implement expansion and
growth plans without delay.

3. Forecasting Supply of Human Resources – Every organisation has two sources of supply of
human resources – internal and external. Internally, human resources can be obtained for
certain posts through promotions and transfers. Human resources flow in and out of
organisation due to several reasons as shown in the figure below:
Human Resource Flows in an Organisation


Policies relating to these aspects need to be reviewed regularly to judge their impact on the internal
supply of human resources. In order to judge the internal supply of human resources in future,
human resources inventory or human resource audit is necessary. This contains data about the
current or present human resources.
Skill Inventory Proforma


4. Estimating Manpower Gaps – Net Human resource requirements or manpower gaps can be
identified by comparing demand forecasts and supply forecasts. Such comparison will reveal
either deficit or surplus of human resources in future. Deficits suggest the number of persons to
be recruited from outside whereas surplus implies redundants to be redeployed or terminated.
Similarly, gaps may occur in terms of knowledge, skills and attitudes. Employees estimated to
be deficient can be trained whereas employees with higher skills may be given more enriched
jobs.
Calculating Manpower Requirements


5. Action Planning – Once the manpower gaps are identified, plans are prepared to bridge these
gaps. Plans to meet the surplus manpower may be redeployed in other departments/units and
retrenchment in consultation with the trade unions. People may be persuaded to quit voluntarily
through golden handshake. Deficit can be met through recruitment, selection, transfer,
promotion, and training plans.
Action Planning Options


6. Monitoring and Control – Once the action plans are implemented, the human resource
structure and system need to be reviewed and regulated. Zero-base budgeting may be used to
encourage managers to justify their action plans. An organisation operating on a five-year
planning cycle may record human resource levels in such a way that it is easy to monitor
progress and hold managers responsible.
Monitoring and control phase involves allocation and utilisation of human resources over
time. Review of manpower plans and programmes help to reveal deficiencies. Corrective actions
should be taken at the right time to remove the deficiencies. Manpower inventory should be updated
periodically. Necessary modifications in manpower plans should be made in the light of changing
environment and needs of the organisation. An appraisal of the existing manpower plans serves as a
guide in future manpower planning.
Human Resource Planning Process

JOB ANALYSIS
Concept of Job Analysis

i. Job analysis is a formal and detailed study of jobs.
ii. It refers to a scientific and systematic analysis of a job in order to obtain all pertinent
facts about a job.
iii. Job analysis has been defined as “the process of determining by observation and study
the tasks, which comprises the job, the methods and equipment used, and the skills and
attitudes required for successful performance of the job.”
iv. Job analysis is essentially a process of collecting and analysing data relating to a job. It is
a part of overall work planning called ‘work design’.
v. A job can be analysed only after it has been designed and someone is already performing
it. Job analysis is, therefore, performed upon ongoing jobs. As jobs are always subject to
change, a job analysis may become obsolete within a short period of time.
vi. Job analysis provides the following information about a job:

a. Identity of the job in terms of its title and code number.
b. The operations and tasks involved in the job including their time, significance,
complexity and sequence.
c. Location, physical setting, hazards and discomforts, supervision given and received
and other significant characteristics of the job.
d. Duties involved in the job along with the frequency of occurrence of each duty.
e. Materials, methods and equipment used in performing the job.
f. How the job is performed, i.e., the nature of operations like clearing, lifting,
handling, drilling, feeding, driving, guiding, assembling, etc.
g. Relationship of the job with other jobs in the organisation.
h. Human resource attributes required for performing the job, e.g., physical strength,
education, mental skills, attitudes, experience, training, etc.
vii. Jobs have their own terminology. It is necessary to understand these terminology before
discussing job analysis in detail.
• Job – It is a group of tasks positions involving same duties, responsibilities,
knowledge and skills. Each job has definite title and is different from other jobs. For
example, peon, typist, mail clerk, salesman, are jobs.
• Position – It implies a collection of tasks and duties regularly assigned to one person.
Several persons may be classified under the same job, but each may perform
different work. For example, one mail clerk may sort out incoming mail, another may
prepare the outgoing mail and so on. It may be noted that while a position is
personal, a job is impersonal.
• Occupation – An occupation implies a group of jobs which are similar as to the type
of work and which contain common characteristics. For example, business is an
occupation consisting of several types of jobs like production, sales, etc.
• Duty – It means a related sequence of tasks, e.g., pickup, sort and deliver incoming
mail.
• Task – It refers to a distinct work activity with an identifiable beginning and end,
e.g., sorting a bag of mail into appropriate boxes.
• Job Family – It implies jobs of a similar nature, e.g., clerical jobs.
• Job Classification – It means grouping of jobs into certain categories on some
specified basis, e.g., nature of work performed or the level of pay. It is often used as
a simplified method of job analysis.
• Job Evaluation – It implies determining the worth of a job to an organisation, by
comparing it with other jobs within the organisation and with job market outside.
Job Components
Objectives of Job Analysis

The main objectives of job analysis are as follows:
i. Job Redesign – A job may be analysed to simplify the process and methods
involved in it. Such work simplification helps to improve productivity.
ii. Work Standards – in order to establish job and time standards, a job has to be
analysed in detail. A systematic study of the job reveals the time that should be
taken in performing the total task. Once the time requirements become known,
standards relating to daily performance can be established.
iii. Miscellaneous – Job analysis provides support to other human resource activities
such as recruitment, selection, training, performance appraisal, job evaluation,
safety, etc.
Uses (Significance) of Job Analysis

i. Organisational Design – Job analysis is useful in classifying jobs and interrelationship
among them. Responsibility commensurate with authority and accountability for various
jobs can be specified so as to minimize duplication or overlapping. In order to improve
organisational efficiency, sound decisions concerning hierarchical positions and
functional differentiation can be taken on the basis of information obtained through job
analysis.
ii. Human Resource Planning – Job analysis provides useful information for forecasting
manpower requirements in terms of knowledge and skills. It also helps in planning for
promotions and transfers by indicating lateral and vertical relationships between different
jobs. Job analysis helps in determining quality of human resources required in an
organisation. It also facilitates division of work. Therefore, job analysis is an essential
element of effective human resource planning.
iii. Recruitment and Selection - Information relating to the tasks, responsibilities,

knowledge and skills serves as a realistic basis for hiring people. Job vacancy is
advertised on the basis of job description and job specification. Job analysis provides
understanding of what an employee is expected to do on the job. Such understanding
serves as the basis for meaningful forecast of job performance. Selection methods are
based upon such forecasts.
iv. Placement and Orientation – A clear understanding of job requirements helps in

matching these requirements with the abilities, interests and aptitudes of people. Each job
can be assigned to the person who is best suited for it. Similarly, the orientation
programme can be geared towards helping the employee learn the activities, tasks and
duties that are required to perform a given job more effectively.
v. Training and Development – Job analysis provides valuable information required to

identify training needs, to design training programmes and to evaluate training
effectiveness. A clear idea of what is required on a job helps in deciding what is to be
learnt and how. Similarly, employee development programmes such as job rotation, job
enlargement and job enrichment are based on analysis of job requirements.
vi. Performance Appraisal – Job analysis helps in determining performance standards in

critical parts of a job. Employee performance can then be evaluated against known
standards and critical activities. The superior can compare actual performance with the
standards set with the help of job analysis.
vii. Career Path Planning – Job analysis provides a clear idea of opportunities in terms of
career paths and jobs available in the organisation. With the help of such understanding,
employees and the organisation both can make efforts for career planning and career
development.
viii. Job Design – With the help of knowledge about job requirements, improvements in work
design and work methods can be made to improve productivity and job satisfaction. This
takes two forms, namely industrial engineering and human engineering. The former is
concerned with measurement, simplification and improvement of work so as to improve
efficiency and reduce costs. The latter involves redesigning jobs to match the physical
and psychological capabilities of employees.
ix. Job Evaluation – Job analysis serves as the basis for determining the relative worth of
different jobs. It, therefore, helps in developing appropriate wage and salary structures,
with internal pay equity between jobs.
x. Employee Counselling – Job analysis provides information about career choices and
personnel limitations. Such information is helpful in vocational guidance and
rehabilitation counselling. Employees who are unable to cope with the hazards and
demands of given jobs may be advised to opt for subsidiary jobs or to seek premature
retirement.
xi. Health and Safety – Job analysis reveals unhealthy and hazardous environmental and
operational conditions in various jobs. Heat, noise, dust, fumes, etc. are examples of such
conditions. On the basis of such information, management can develop measures to
ensure the health and safety of employees.
Job Analysis Components

The Process of Job Analysis

1. Organisational Analysis – First of all an overall view of various jobs in the organisation is
obtained. This is required to judge the linkages between jobs and the organisational goals,
interrelationships among jobs, and the contribution of various jobs to efficiency and
effectiveness of the organisation. For this purpose, background information is collected in the
form of organisation charts, class specifications, work flow charts, etc. Organisation charts
show the relation of the job with other jobs in the organisation. Class specifications describe
the general requirements of the job family. Work flow charts indicate the flow of activities
involved in a job.
2. Organising Job Analysis Programme – It is necessary to plan and organize the programme
of job analysis. The company must decide who will be in charge of the programme and must
assign responsibilities. A budget and a time schedule should be developed.
3. Deciding the Uses of Job Analysis Information – It has been stated above that information
generated by job analysis can be utilized for practically all functions of human resource
management. Nevertheless, it is desirable to focus on a few priority areas in which the job
analysis information is to be used. These areas can be decided on the basis of the need,
priorities and constraints of the particular organisation. How the job information will be used
and what purpose will determine the extent to which jobs are to be analysed.
4. Selecting Representative Jobs for Analysis – It would be highly time consuming and costly
to analyse all the jobs. It is, therefore, desirable to select a representative sample of jobs for the
purpose of detailed analysis. Priorities of various jobs needing analysis can also be
determined.
5. Understand Job Design – The job analyst should obtain information concerning the current
design of the representative job. For this purpose, current job description and job specification,
procedure manual, systems flow charts, etc. can be studied.
6. Collection of Data – In this step, data on the characteristics of the job, and qualifications and
behaviour required to do the job effectively is collected. Data may be collected from the
employees who actually perform the job, or from their supervisors or from outsiders called
trade job analysis appointed to watch employees performing the job. Several techniques are
available for job analysis. Care should be taken to use only those techniques which are
acceptable and reliable in the given situation.
7. Developing a Job Description – The information collected in the previous step is used in
preparing a job description. This is a written statement that describes in brief the tasks, duties
and responsibilities which needs to be discharged for effective job performance.
8. Preparing a Job Specification – The last step in job analysis is to prepare a job specification
or employee specification. This is a written statement which specifies the personal attributes in
terms of education, training, experience, and aptitude required to perform the job.
Job Analysis Process

Job Analysis Form

RECRUITMENT
Meaning of Recruitment
a. According to Flippo, “Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation.
b. In the words of Yoder, “Recruitment is a process to discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force.”
c. Recruitment needs are of three types-
i. Planned: These needs arises from changes in organisation and retirement policy.
ii. Unexpected: Retirement, deaths, accidents and illness give rise to unexpected needs.
iii. Anticipated: These needs refers to those movements in human resource which an
organisation can predict by studying trends in the internal and external environments.
An analysis of these definitions reveals the following features of recruitment:
i. Recruitment is a process of series of activities rather than a single act or event.

ii. Recruitment is a linking activity as it brings together those with jobs (employer) and those
seeking jobs (prospective employees).
iii. Recruitment is a positive function as it seeks to develop a pool of eligible persons from which
most suitable ones can be selected.
iv. Recruitment is a two-way process. It takes a recruiter and a recruitee. Just as the recruiter has a
choice whom to recruit or not, similarly the prospective employee can choose for which
organisation to apply for a job.
Process of Recruitment
The recruitment process consists of the following steps:
1. Recruitment process generally begins when the human resource department receives requisition
for recruitment from any department of the company. The human resource requisitions contain
details about the position to be filled, number of persons to be recruited, the duties to be
performed, qualifications required from the candidate, terms and conditions of employment and
the time by which the person should be available for appointment, etc.
2. Locating and developing the sources of required number and type of employees.
3. Identifying the prospective employees with required characteristics.
4. Communicating the information about the organisation, the job and the terms and conditions of
service.
5. Encouraging the identified candidates to apply for jobs in the organisation.
6. Evaluating the effectiveness of recruitment process.
According to Famulrao, recruitment process consists of five elements, namely –
i. a recruitment policy,
ii. a recruitment organisation,
iii. developing sources of recruitment,
iv. techniques used to tap these sources, and
v. a method of assessing the recruitment programme.
Recruitment Policy
Recruitment policy specifies the objectives of recruitment and provides a framework for the
implementation of the recruitment programme. It may involve commitment to principles such as
enriching the organisation’s human resources by filling vacancies with the best qualified people,
attitudes towards recruiting handicaps, minority groups, women, friends and relatives of present
employees, promotion from within. It may also involve the organisational system to be developed
for implementing the recruitment programme and procedures to be employed. Recruitment policy
should be based on the recognition that it is hard to find qualified executives. A recruitment policy
involves the employer’s commitment to such general principles as:
a. to find and employ the best qualified person for each job.
b. to retain the most promising of those hired.
c. to offer promising opportunities for life-time working careers.
d. to provide facilities and opportunities for personal growth on the job.
A properly planned and systematic recruitment policy is necessary to minimize disruption of work
due to changes in employees and to secure equitable distribution of employment opportunities. A
well-considered and pre-planned recruitment policy based on the goals, needs and environment of
the organisation will help to avoid ill-conceived decisions and help to man the organisation with the
right kind of personnel.
Recruitment Organisation
Recruitment practices differ from one organisation to another. Some organisations like public sector banks
adopt centralised recruitment whereas other organisations resort to decentralised recruitment. Under
centralised recruitment, human resource department at the head office performs all the functions of
recruitment. Every operating department sends requisitions for recruitment to their central office. On the
other hand, each department/unit carries out its own recruitment in case of decentralised recruitment.
Centralised recruitment offers the following advantages:

i. It reduces the administrative cost by consolidating all recruitment activities at one place.
ii. It ensures uniformity in recruitment and selection of all types of employees.
iii. It facilitates interchangeability of staff between different units/zones.
iv. It tends to reduce favouritism in recruitment and make the recruitment process more scientific.
Centralised recruitment suffers from the following disadvantage:

i. There is delay in recruitment as operating units cannot recruit staff as and when required.
ii. The central office may not be fully familiar with job requirements of different units and the most
suitable sources for the required staff.
iii. Recruitment is not flexible because operating units lose control over the recruitment process.
Both centralised & decentralised recruitment have their own advantages. The choice between the two will
depend on the management philosophy and needs of the particular organisation. In some cases, a
combination of both the systems is used. Lower-level staff is recruited centrally whereas middle and top-
level executives are recruited in a decentralised manner.
SOURCES OF RECRUITMENT
Recruitment
Internal Sources External Sources

i. Transfers i. Press Advertisements
ii. Promotions ii. Educational Institutions
iii. Placement Agencies
iv. Employment Exchanges
v. Labour Contractors
vi. Employee Recommendations
vii. Recruitment at Factory Gate
Sources of Recruitment
Various sources of recruitment may be classified into two broad categories, namely internal
sources and external sources.
Internal Sources – Internal sources consists of the following:
a. Present employees – Permanent, temporary and casual employees already on the pay of
the organisation are a good source. Vacancies may be filled up from such employees
through promotions, transfers, upgrading and even demotion.
Transfer implies shifting of an employee from one job to another without any
major change in the status and responsibilities of the employee.
On the other hand, promotion refers to shifting of an employee to a higher position
carrying higher status, responsibilities and pay.
b. Retired and retrenched employees who want to return to the company may be rehired.
c. Dependants and relatives of deceased and disabled employees.

Internal Sources of Recruitment - Merits
Internal sources have the following merits:
i. Morale and motivation of employees improve when they are assured that they would be
preferred in filling up vacancies at higher levels. A sense of security is created among
employees.
ii. Suitability of existing employees can be judged better as record of their qualifications and
performance is already available in the organisation. Chances of proper selection are higher.
iii. It promotes loyalty and commitment among employees due to sense of job security and
opportunities for advancement. Stability of employment is improved.
iv. Present employees are already familiar with the organisation and its policies. Therefore, time
and costs of orientation and training are low.
v. The time and expenditure of recruitment are reduced as there is little need for advertising
vacancies, or arranging rigorous tests and interviews.
vi. Filling of higher level jobs through promotions within the organisation helps to retain talented
and ambitious employees. Labour turnover is reduced.
Internal Sources of Recruitment - Demerits
Internal sources, however, suffer from some demerits:
i. It may lead to inbreeding.
ii. It discourages flow of new blood into the organisation.
iii. If promotion is based on seniority, really capable persons may be left out.
iv. The choice in selection is restricted. More talented outsiders may not be employed. Mobility of
labour is restricted. Chances of favouritism are higher and growth of business is restricted by
the limited talent of insiders.
v. All vacancies cannot be filled up from within the organisation.
vi. This source of recruitment is not available to a newly established enterprise.

Sources of Recruitment
External Sources – External sources of recruitment lie outside the organisation. These are as
follows:
a. Educational and Training Institutions: Various institutions like IIMs, IITs, Engineering
colleges, Medical colleges, it is and Universities are a good source for recruiting well-qualified
executives, Engineers, Medical staff, etc. They provide facilities for campus interview and
placement. Good institutions have placement cells/officers to serve as liaison between the
employers and the students this source is known as campus recruitment.
b. Executive Search Agencies or Placement Agents or Head Hunters: Several private

consultancy firms perform recruiting function on behalf od client companies by charging fee.
These agencies are particularly suitable for recruitment of executives and specialists. They
perform all the functions of recruitment and selection so that the client is relieved of this burden.
But the cost of this recruitment through this agencies is too high.
c. Casual Callers: Due to widespread unemployment in the country many job seekers visit the
offices of well-known companies on their own. Such callers are generally considered a nuisance
to the daily work routine of the enterprise. But a waiting list of such unsolicited visitors can be
prepared to fill temporary and lower level jobs. It is a very inexpensive source of recruitment.
d. Labour Contractors: Manual workers can be recruited through contractors who maintain close
links with the sources of such workers. This source is often used to recruit labour for
construction jobs. The disadvantage of this source is that when the contractor leaves the
organisation people employed through him also go.
e. Employee Referrals: Office bearers of trade unions are often aware of the suitability of the
candidates. Management can enquire these leaders for suitable jobs. In some organisations, there
are formal agreements to give priority in recruitment to the candidates recommended by trade
unions. Relatives and friends of employees are given priority in recruitment in some companies.
Public Sector Undertakings gives preference to local people(sons of the soil) in recruitment
particularly at lower and middle levels of job. In this source, some sort of preliminary screening
takes place by the employee/union recommending the candidate.
f. Press Advertisement: Advertisements in newspapers and journals is a widely used source of

recruitment. The advantage of this method is that it has a very wide reach. One advertisement in
a leading daily can cover millions of persons through out the country. Cost per person is very
low. Considerable details about the job to be filled and qualifications required can be given in
the advertisement to facilitate self-screening. However, this method may bring in a large number
of application from one suitable candidate. The company has to waste considerable time and
efforts in sorting out applicants.
External Sources of Recruitment - Merits
External sources, however, suffer from some merits:
i. People having the requisite skill, education and training can be obtained.
ii. As recruitment is done from a wider market, best selection can be made irrespective of
cast, gender, religion.
iii. Expertise and experience from other organisation can be brought.
iv. It helps to bring new blood and new ideas into the organisations.
v. This source of recruitment never ‘dries up’ . It is available to even new enterprises.
vi. External sources are best when suitable people from within are not available and when the
organisation is diversifying or merging with other organisations.
External Sources of Recruitment - Demerits
External sources, however, suffer from some demerits:
i. It is more expensive and time-consuming to recruit people from outside. Detailed screening is
necessary as very little is known about the candidate.
ii. The employee being unfamiliar with the organisation their orientation and training is necessary.
iii. If higher level jobs are filled from external sources, motivation and loyalty of existing staffs are
affected.
In actual practice, it is desirable to use a mix of both internal and external sources depending on the
availability of originality and initiative within the organisation, need for new blood, focus on
seniority in promotions, level of specialization required, impact of recruitment on attitudes of
employees, emphasis on participation of employees, etc.
TECHNIQUES OF RECRUITMENT
1. Direct Methods.
2. Indirect Methods.
3. Third Party Methods.
4. Internet Recruitment.
Techniques of Recruitment
1. Recruitment methods or techniques are the means by which an organisation establishes contact
with potential candidates, provides them necessary information and encourages them to apply for
jobs.
2. These methods are different from the sources of recruitment. Sources are the locations where
prospective employees are available.
3. On the other hand, methods are ways of establishing links with the prospective employees.
Various methods employed for recruiting employees may be classified into the following
categories:
i. Direct Methods – Under direct recruitment scouting, employee contacts, manned exhibits and
waiting lists are used. In scouting, representatives of the organisation are sent to educational and
training institutions. These travelling recruiters exchange information with the students, clarify
their doubts, stimulate them to apply for jobs, conduct campus interviews and short list
candidates for further screening. They act in cooperating with the placement office/head of the
institution. Another direct method is to ask employees of the organisation to contact the public
and tell about the vacancies. Manned exhibits involve sending recruiters to seminars and
conventions, setting up exhibits at fairs and using mobile offices to go to the desired centres.
Some organisations use waiting lists of candidates who have indicated their interest in jobs in
person, through mail or over telephone.
ii. Indirect Methods – Advertisements in newspapers, journals, on the radio and television are
used to publicise vacancies. A well-thought-out and clear advertisement enables candidates to
assess their suitability so that only those possessing the requisite qualifications will apply. This
method is appropriate when organisation wants to reach out to a large target group scattered
geographically.
iii. Third Party Methods – Various agencies can be used to recruit personnel. Public employment
exchanges, management consulting firms, professional societies, temporary help societies, trade
unions, labour contractors are the main agencies. In addition, friends and relations of existing
staff and deputation method can also be used.
iv. Internet Recruitment – E-lixir Web Solutions recently carried out a survey on the increasing
popularity of on-line recruitment channel in India. Their research indicates that 25 per cent of all
the net users in India search for jobs on Internet and this number is bound to increase in the
coming years to come. JobStreet.com, Prizedjobs.com, JobsDB.com are some of the new job
sites that have come up recently.
SELECTION
Meaning of Selection
i. Selection is the process of choosing the most suitable persons out of all the applicants.
ii. In this process relevant information about applicants is collected through a series of
steps so as to evaluate their suitability for the job to be filled.
iii. Selection is the process of matching the qualifications of applicants with the job
requirements.
iv. It is a process of weeding out unsuitable candidates and finally identify the most
suitable candidate.
v. Selection divides all the applicants into two categories –
a. Suitable.
b. Unsuitable.
vi. Selection may be described as a process of rejection because generally more candidates
are turned away than are hired.
vii. Selection is different from recruitment.
Recruitment Selection
1. It is the process of searching for prospective It is the process of choosing the right
candidates & encouraging them to apply for candidates.
the vacant jobs.
2. It is a positive process as it aims at increasing It is a negative process as it rejects a

the number of applications for wider choice or large number of applicants to identify
for increasing the selection ratio. the few who are suitable for the job.
3. It aims to create a large pool of candidates. Its aim is to identify & reject unsuitable
candidates.
4. It always precedes selection. It always succeeds recruitment.

Course Code: BBAHR 30501 AGBS - INDORE
Steps in Selection Process

i. Selection process consists of a series of steps. At each stage, facts may come to light
which may lead to the rejection of the applicant.
ii. It is a series of successive hurdles or barriers which an applicant must cross. These
hurdles or screens are designed to eliminate an unqualified candidate at any point in the
selection process. This technique is called “successive hurdle technique”.
iii. According to Dale Yoder, the hiring process consists of go no go gauges. Candidates
who qualify a hurdle go to the next stage while those who do not qualify are dropped
out. However, every selection procedure does not contain all these hurdles. Moreover,
the arrangement of these hurdles may differ from organisation to organisation. There is
no standard selection procedure to be used in all organisations or for all jobs. The
complexity of selection procedure increases with the level and responsibility of the
position to be filled. The strategy and method used for selecting employees varies from
firm to firm and from one job to another.
Successive Hurdles in the Selection Process

Scientific Selection Process

Steps in Selection Process

Steps involved in employee selection may be described as under:
1. Preliminary Interview –
i. First of all, initial screening is done to weed out totally undesirably/unqualified candidates at the
outset.
ii. Preliminary interview is essentially a sorting process in which prospective candidates are given
the necessary information about the nature of the job and the organisation. Necessary
information is also elicited from the candidates about their education, skill, experience, salary
expected, etc. if the candidate is found suitable, he is selected for further screening.
iii. Preliminary interview saves time and efforts of both the company and the candidate.
iv. It avoids unnecessary waiting for the rejected candidate and waste of money on further
processing of an unsuitable candidate.
v. Preliminary interview helps to determine whether it is worthwhile for a candidate to fill up the
application form. Some of the jobseekers may be totally unsuitable due to overage, physical
handicap and lack of required education or experience.
vi. Preliminary interview is brief and generally carried out by a junior executive across the counter
or at the reception office. Care should be taken to ensure that suitable candidates are not turned
down in a hurry.
vii. Preliminary interview is the first contact of an individual with the organisation. Therefore, the
interviewers should be courteous, receptive and informal particularly when the candidate is
being turned down.
2. Application Blank/Form –Application form is a traditional and widely used device for
collecting information from candidates. Small firms design no application form and ask the
candidates to write details about their age, marital status, education, work experience, etc. on a
plain sheet of paper. But big companies use different types of application forms for different
jobs. The application form should provide all the information relevant to selection. But reference
to caste, religion may be avoided as it is regarded as evidence of discrimination. Generally, an
application form contains the following information:
a. Identifying information – Name, address, telephone number, etc.

b. Personal information – age, sex, marital status, dependents, etc.
c. Physical characteristics – height, weight, eyesight, etc.
d. Family background.
e. Education – academic, technical and professional.
f. Experience – job held, employers, duties performed, salary drawn, etc.
g. References.
h. Miscellaneous – extra curricular activities, hobbies, games and sports, membership of
professional bodies, etc.
3. Selection Test –
i. Psychological tests are being increasingly used in employee selection. A test is a sample of
some aspect of an individual’s attitudes, behaviour and performance. It also provides a
systematic basis for comparing the behaviour, performance and attitudes of two or more
persons.
ii. Tests are based on the assumption that individuals differ in their job related traits which can be
measured.
iii. Tests help to reduce bias in selection by serving as a supplementary screening device.
iv. Tests are helpful in better matching of candidate and the job.
v. Tests may also reveal qualifications which remain covered in application form and interview.
vi. No test, however, is fool proof. At best it reveals that the candidates who have scored above the
predetermined cut off points are likely to be more successful than those scoring below the cut
off point.
vii. Tests are useful when the number of applicants is large. Further, tests will be useful only when
they are properly designed and administered.
# Types of Tests
Tests may broadly be classified as follows:

➢ Aptitude or Potential Ability Tests – These tests measure the latent ability or potential of a candidate to
learn a new job or skill. Peculiarities or defects in a person’s sensory or intellectual capacity can be detected
through these tests. These focus attention on a particular type of talent such as reasoning, learning,
mechanical bent of mind, etc. Such test are of the following types:
• Mental or Intelligence Tests – These tests measure the overall intellectual capacity [intelligence quotient
(I.Q.)] of a person. These reveal whether an individual has the capacity to deal with new problems. These
help to determine a person’s word fluency, memory, inductive reasoning, comprehension, speed of
perception. Intelligence tests measure the ability to understand instructions and to make decisions. These
tests are useful in selecting employees for a wide variety of jobs. But administration of these tests is
cumbersome and expensive. These are criticised on the ground of discrimination against weaker sections of
society.
• Mechanical Aptitude Tests – These tests measure a person’s capacity to learn a particular type of
mechanical work. Capacity for perpetual speed, manual dexterity , visuals insights, specialised knowledge
for techniques, problem-solving ability, technical vocabulary, etc. are judged in these tests. These are useful
for selecting apprentices, machinists, mechanics, maintenance workers and mechanical technicians. Thus,
these tests are used for selecting lower level personnel who are entrusted with the job or operating machines.
• Psycho-motor or Skill Tests – These tests measure a person’s ability to perform a specific job. These help to
determine mental dexterity or motor ability, and similar attributes involving muscular movement, control
and coordination. These are primarily used for selecting workers who have to perform semi-skilled and
repetitive jobs like assembly work, packing, testing and inspection.
➢ Achievement or Proficiency Tests – These tests measure what a person can do. These
determine the skill or knowledge already acquired through training and on the job experience.
These tests are of two types:.
• Job Knowledge Tests – These are also known as trade tests, these are used to judge proficiency
in typing, shorthand and in operating calculating, adding machines, dictating and transcribing
machines or simple mechanical equipment. These can be both oral and written. Such tests are
useful in the selection of stenographers, typists, office workers, mill supervisors, sales persons,
public utility employees, etc.
• Work Sample Tests – In these tests, a candidate is given a piece of work to judge how
efficiently he does it. For example, a typing test provides the material to be typed and notes the
time taken and the mistake committed.
• Psycho-motor or Skill Tests – These tests measure a person’s ability to perform a specific job.
These help to determine mental dexterity or motor ability, and similar attributes involving
muscular movement, control and coordination. These are primarily used for selecting workers
who have to perform semi-skilled and repetitive jobs like assembly work, packing, testing and
inspection.
➢ Personality Test – These are pen and paper test used to judge the psychological make up of a person. These
probe deeply to discover cues to an individual’s value system, emotional reactions and maturity, and his
characteristics mood. These help in assessing a person’s motivation and interests, his ability to adjust himself
to the stress of every day life, his capacity for inter-personal relations and for projecting an impressive image
of himself. These are expressed in terms of the relative significance of traits such as self-confidence,
ambition, emotional control, optimism, sociability, objectivity, conformity, patience, fear, distrust, initiative,
judgement, dominance, sympathy, integrity, etc. These test are used to select supervisors and executives and
for counselling people. But these test are criticised as superficial, easily misleading in nature. These are of
three types:
• Objective Test – These tests measure neurotic tendencies, self-sufficiency, dominance-submission and self-
confidence. These traits are scored objectively.
• Projective Tests – In these tests, a candidate is asked to project his own interpretation on to certain stimuli
like ambiguous pictures, etc. The ways in which he responds to these stimuli reflect his own values, motives
and personality.
• Situation Tests – These tests measure a candidate’s reaction when placed in a peculiar situation, his ability to
undergo stress and his demonstration of ingenuity under pressure. These usually relates to a leaderless group
situation, in which some problems are posed to a group and its members are asked to reach some conclusions
without the help of a leader. Group discussion and basket methods are used to administer these tests.
➢ Interest Tests – These tests are inventories of a candidate’s likes and dislikes in relation to work. These are
used to discover a person’s areas of interest and to identify the kind of work that will satisfy him. These are
generally used for vocational guidance. A well-designed questionnaire is used to assess the likes and dislikes.
Types of Psychological Tests
Types of
Test
Business Games and their Utility in the Selection Process

4. Employment Interview–
i. An interview is a conversation between two persons. In selection, it involves a personal,
observational and face-to-face appraisal of candidates for employment.
ii. Interview is an essential element of selection and no selection procedure is complete without
one or more personal interviews. The information collected through application and test can be
cross-checked in the interview.
iii. A selection interview serves the three purposes:
a. obtaining information about the background, education, training, work history and
interests of the candidate;
b. giving information to candidates about the company, the specific job and human
resource policies; and
c. Establishing a friendly relationship between the employer and the candidate so as to
motivate the successful applicant to work for the organisation.
In practice, however, interview becomes a one-sided affair serving only the first purpose.
# Types of Interviews
Interviews may be classified into the following categories:

➢ Informal Interview – Such interview may take place anywhere. It is not planned and is used
when the staff is required urgently. A friend or relative of the employer may take a candidate to
the house of the employer or manager who asks a few questions like name, education and
experience, etc.
➢ Formal Interview – This type of interview is preplanned and is held in a formal atmosphere.
All the formalities and procedures, e.g., the venue, the time, the panel of interviewers, and the
questions to be asked are decide in advance.
➢ Patterned or Structured Interview - Such interview is fully planned to a high degree of

accuracy and precision. It is based on the assumption that to be most effective every pertinent
detail should be worked out in advance. Therefore, a list of questions to be asked is prepared
and the questions are asked in a particular cycle. The time to be allowed to each candidate and
the information to be sought out are predecided. The interviewer is carefully selected. The
interviewer actively participates and the candidate is expected only to answer the questions.
Thus, a standardised pattern is adopted or the structure of the interview is decided in advance.
Such interview is also known as directed or guided interview. Patterned interview helps to
minimize personal bias and prejudice and provides uniformity and consistency. It allows for a
systematic coverage of the required information. But such an interview does not allow deep
probing into the candidate’s mind.
➢ Non-directed or Unstructured Interview – In this interview, the candidate is allowed to speak

his mind freely. The interview carefully and patiently listens, prodding whenever the candidate
is silent. In other words, the format of the interview is unplanned and the interview is not
directed by questions to be asked. Non-directed interview is a more flexible approach and
therefore the candidate feels more at ease. The candidate is more likely to reveal his actual self.
As a result, a better assessment of the candidate’s personality become possible. But unless the
interviewer is very competent, the discussion may lose its direction and may become a
rambling session with much wastage of time and effort.
➢ Depth Interview – It is a semi-structured approached wherein details concerning one key area
are sought. It is designed to intensively examine the candidate’s proficiency in his area of
special interest. The purpose is to get a true picture of the candidate through deep probing into
his mind. Experts in the concerned area of knowledge ask relevant questions so as to judge the
candidate’s capabilities in the area. This type of interview requires a mature understanding of
human behaviour on the part of the interview. Depth interview is the opposite of discussion
interview.
➢ Group Interview – In this interview, groups rather than individuals are interviewed. Generally,
a topic for discussion is given to the group. The candidates in the group are carefully observed
as to who will lead the discussion, how well they will react to each other’s views. Such
interview is based on the assumption that behaviour displayed in a group situation is related to
potential success in the job.
➢ Stress Interview – The purpose of such interview is to find out how a candidate behaves in
stressful situation, i.e., whether he loses his temper, gets confused or frightened or feels
frustrated. Therefore, the interviewer adopts hostile behaviour towards the candidate. He
deliberately puts the candidate on the defensive by trying to annoy, embarrass or frustrate him.
In order to put the candidate under strain, the interviewer asks questions rapidly, criticises his
answers, interrupts him frequently, keeps silent for unduly long periods of time, asks too many
questions simultaneously, makes derogratory remarks, accuses him of lying and so on. Stress
interview is used for jobs wherein emotional balance or resistance to stress is required. Such
interview must be handled with utmost care and skill. It may not necessarily reveal how the
candidate will behave in a real stressful situation involved in the job.
➢ Panel or Board Interview – Such interview is conducted by a group of interviewers. It seeks

to pool the collective wisdom and judgement of several interviewers. Questions are asked in
turn or at random. The candidate may even be asked to meet the members of the panel
individually for a fairly lengthy interview.
5. Medical Examination – Applicants who have crossed the above stages are sent for a physical
examination either to the company’s physician or to a medical officer approved for the purpose.
Such examination serves the following purposes:
a. It determines whether the candidate is physically fit to perform the job. Those who are
physically unfit are rejected.
b. It reveals existing disabilities and provides a record of the employee’s health at the time of
selection. This record will help in setting company’s liability under the Workmen Compensation
Act for claim for an injury.
c. It prevents the employment of people suffering from contagious diseases.
d. It identifies candidates who are otherwise suitable but require specific jobs due to physical
handicaps and allergies.
6. Reference Checks – The applicant is asked to mention in his application form, the names and
addresses of two or more persons who know him well. These may be his previous employers,
heads of educational institutions or public figures. The organisation contacts them by mail or
telephone. They are requested to provide their frank opinion about the candidate without
incurring any liability. They are assured that all information supplied will be kept confidential.
In Government and public sector organisations, candidates are generally required to route their
applications through their present employers, if any. The opinion of referees can be useful in
judging the future behaviour and performance of a candidate. But it is not advisable to rely
exclusively on the referees because they are generally biased in favour of the candidate.
7. Final Approval –
i. In most of the organisations, selection process is carried out by the human resource department.
The decisions of this department are recommendatory. The candidates short listed by the
department are finally approved by the executives of the concerned departments/units.
ii. Employment is offered in the form of an appointment letter mentioning the post, the rank, the
salary grade, the date by which the candidate should join and other terms and conditions in
brief.
iii. In some organisations, a contract of service on judicial paper is signed by both the candidate
and the representative of the organisation. Appointment is generally made on a probation of one
or two years. After satisfactory performance during this period, the candidate is finally
confirmed in the job on permanent basis or regularized.
PLACEMENT
Concept of Placement
• Placement is the process of assigning a specific job to each one of the selected candidates.
• It involves assigning a specific rank and responsibility to an individual.
• It implies matching the requirements of a job with the qualifications of a candidate.
• In the words of Pigors and Myers, “Placement is the determination of the job to which an accepted
candidate is to be assigned, and his assignment to that job. It is a matching of what the supervisor has
reason to think he can do with the job demands. It is matching of what he imposes in strain, working
conditions, and what he offers in the form of payroll, companionship with others, promotional
possibilities, etc.”
• Proper placement helps to improve employee morale. It also helps to reduce employee turnover,
absenteeism and accident rates. If a candidate adjusts himself to the job and continuous to perform as
per expectations, it might mean that the candidate is properly placed. However, if the candidate has
problems in adjusting himself to the job and he continues to perform below expectations, he might be
misplaced. Supervisors/executives should review all such cases to find out cases of misplacement. Such
candidates should be assigned some other more suitable jobs. Alternatively, they may be given further
training to make them fit for the job.
Induction or Orientation
Concept of Induction or Orientation

• When a new employee joins an organisation, he is completely a stranger to the people, work place and
the work environment. Therefore, he is likely to feel insecure, shy and nervous. In the absence of
information and support there is likely to be anxiety and fear in his mind. He may go reality shock
caused by a gap between his expectations and the real situation. Induction or orientation can help
overcome these problems. Once an employee is selected and placed on an appropriate job, the process
of familiarising him with the job and the organisation begins. This process is called induction or
orientation.
• Orientation or induction is “the process of receiving and welcoming an employee when the first joins a
company and giving him the basis information he needs to settle down quickly and happily and start
work.”
• The new employee is introduced to the job, the coworkers and the organisation. The purpose of
orientation is to make the new entrant feel at home and develop a sense of pride in the organisation and
commitment to the job. The newcomer is explained his duties and responsibilities, company policies
and rules, and other relevant information to get acquainted and accommodated with the organisation.
• Orientation is, therefore, the process of welcoming, and socialization.

MODULE III
LEARNING AND DEVELOPMENT OF
HUMAN RESOURCES
Course Code: HR 612
AGBS - INDORE
TRAINING
Course Title: Human Resource Management AGBS -
Course Code: HR 612
INDORE
Concept of Training
Human resource development has in recent years become the focus of attention of planners,
policy-makers and administrators. Human resource development may be defined as the process
of increasing the knowledge, skills and capacities of people. It is important not only for an
enterprise but for a nation to develop its human resources. A country can develop only when its
human resources are developed through health, nutrition, education, training and research. At
the enterprise level, employee training and executive development are main areas of human
resource development.
•Training is the process of increasing the knowledge and skills for doing a particular job.
•It is an organized procedure by which people learn knowledge and skill for a definite
purpose.
•The purpose of training is basically to bridge the gap between job requirements and present
competence of an employee.
•Training is aimed at improving the behaviour and performance of a person.

•It is a never ending or continuous process.
Course Code: HR 612
INDORE
Need of Training
1.Job Requirements – Employees selected for a job might lack the qualifications required to
perform the job effectively. New and inexperienced employees require detailed instruction for
effective performance on-the-job. In some cases, the past experience, attitudes and behaviour
patterns or experienced personnel might be inappropriate to the new organisation. Remedial
training should be given to such people to match the needs of the organisation. New
employees need to provided orientation training to make them familiar with the job and the
organisation.
2.Technological Changes – Technology is changing very fast. Now automation and

mechanization are being increasingly applied in offices and service sector. Increasing use of
fast changing techniques requires training into new technology. For instance, staff in public
sector bank are being trained due to computerization of banking operations. No organisation
can take advantage of latest technology without a well-trained personnel. New jobs require
new skills. Thus, both new and old employees require training.
Course Code: HR 612
3. Organisational Viability – In order to survive and grow,

INDORE
an organisation
must
continually adapt itself to the changing environment. With increasing economic
liberalization and globalization in India, business firms are experiencing expansion,
growth and diversification. In order to face international competition, the firms must
upgrade their capabilities. Existing employees need refresher training to keep them
abreast of new knowledge. Training programmes foster the initiative and creativity of
employees and help to prevent obsolescence of skills. An organisation can build up a
second line of command through training in order to meet its future needs for human
resources. Trained staff is the most valuable asset of a company.
4. Internal Mobility – Training becomes necessary when an employee moves from one
job to another due to promotion and transfer. Employees chosen for higher level jobs
need to be trained before they are asked to perform the higher responsibilities. Training is
widely used to prepare employees for higher level jobs.
Thus, there is an ever present need for training people so that new and changed techniques
may be taken advantage and improvements in old methods are effected. Need for training
has increased due to growing complexity of jobs, increasing professionalization of
management, growing uncertainties in the environment, global competition, growing
aspirations, ever- increasing gap between plans and results and sub-optimal performance
levels.
Course Code: HR 612
Importance of Training
INDORE
1.Higher Productivity – Training helps to improve the level of performance. Trained
employees perform better by using better method of work. Improvements in manpower
productivity in developed nations can be attributed in no small measure to their educational
and industrial training programmes.
2.Better Quality of Work – in formal training, the best methods are standardised and taught
to employees. Uniformity of work methods and procedures helps to improve the quality of
product or service. Trained employees are less likely to make operational mistakes.
3.Less Learning Period – A systematic training programme helps to reduce the time and cost
involved in learning. Employees can more quickly reach the acceptable level of performance.
They need not waste their time and efforts in learning through trial and error.
4.Cost Reduction – Trained employees make more economical use of materials and
machinery. Reduction is wastage and spoilage together with increase in productivity help to
minimize cost of operations per unit. Maintenance cost is also reduced due to fewer machine
breakdown and better handling of equipments. Plant capacity can be put to the optimum use.
5.Reduced Supervision – Well-trained employees tend to be self-reliant and motivated. They
need less guidance and control. Therefore, supervisory burden is reduced and the span of
supervision can be enlarged.
Course Code: HR 612
6.
INDORE
Low Accident Rate – Trained personnel adopt the right work methods and make use of
the prescribed safety devices. Therefore, the frequency of accidents is reduced. Health and
safety of employees can be improved.
7. High Morale – Proper training can develop positive attitudes among employees. Job
satisfaction and morale are improved due to rise in the earnings and job security of
employees. Training reduces employee grievances because opportunities for internal
promotion are available to well-trained personnel.
8. Personal Growth – Training enlarges the knowledge and skills of the participants.
Therefore, well-trained personnel can grow faster in their career. Training prevents
obsolescence of knowledge and skills. Trained employees area more valuable asset to any
organisation. Training helps to develop people for promotion to higher posts and to
develop future managers.
9. Organisational Climate – A sound training programme helps to improve the climate of
an organisation. Industrial relations and discipline are improved. Therefore,
decentralization of authority and participative management can be introduced. Resistance
to change is reduced. Organisations having regular training programmes can fulfil their
future needs for personnel from internal sources. Organisational stability is enhanced
because training helps to reduce employee turnover and absenteeism. Training is an
investment in people and, therefore, systematic training is a sound business investment.
Thank You ☺

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Course Title: Human Resource Management

Course Code: HR 612 AGBS - INDORE

MBA II SEMESTER (2021-23)

HUMAN RESOURCE MANAGEMENT

CONCEPT OF HUMAN RESOURCE MANAGEMENT

CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT

2. People-oriented - Human Resource management is concerned with employees as individuals as well as

3. Action-oriented - Human Resource management focuses on action rather than on record-keeping or

4. Individual-oriented – Under human resource management, every employee is considered as an

5. Development-oriented - Human Resource management is concerned with developing potential of

CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT

7. Continuous Function – Management of human resources is an ongoing or never-ending exercise rather

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

1. Significance for an enterprise – Human resource management can help an enterprise in

2. Professional Significance – Effective management of human resource helps to improve the

a. Providing maximum opportunities for personal development of each employee.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

SCOPE OF HUMAN RESOURCE MANAGEMENT

In India, human resource management now consists of three main branches:

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

1. Planning Procurement Development Compensation

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

2. Organising – In order to implement the plans, a sound organisation structure is required.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

e. Placement – It means assigning suitable jobs to the selected candidates so as to match

a. Performance and Potential Appraisal – It implies systematic evaluation of employees with

c. Executive Development – It is the process of developing managerial talent through appropriate

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

ROLE OF HUMAN RESOURCE MANAGER

1. As a Specialist – Human resource manager is an expert. As a specialist, he advises the heads

2. As an Information Source – The human resource manager provides valuable information

ROLE OF HUMAN RESOURCE MANAGER

7. As a Fire Fighter – In union-management relations, the human resource manager acts as a

STATUS OF HUMAN RESOURCE MANAGER

STATUS OF HUMAN RESOURCE MANAGER

CONCEPT AND NATURE OF HUMAN RESOURCE POLICIES

2. Uniformity and Consistency of Administration – Well-established policies ensure uniform

NEED AND IMPORTANCE OF HUMAN RESOURCE POLICIES

TYPES OF HUMAN RESOURCE POLICIES

ESSENTIALS OF A SOUND HUMAN RESOURCE POLICIES

ESSENTIALS OF A SOUND HUMAN RESOURCE POLICIES

MBA II SEMESTER (2021-23)

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE PLANNING

Need and Importance of Human Resource Planning

Process of Human Resource Planning

Process of Human Resource Planning

Process of Human Resource Planning

2. Forecasting Demand for Human Resource (Manpower Forecasting) - On the basis of

Process of Human Resource Planning

Techniques employed in manpower forecasting are as follows:

Process of Human Resource Planning

Process of Human Resource Planning

d. Mathematical Models – A mathematical model expresses the relationship between independent

Process of Human Resource Planning

Process of Human Resource Planning

Human Resource Flows in an Organisation

Process of Human Resource Planning

Skill Inventory Proforma

Process of Human Resource Planning