Qualities of HRM: 1. Valuable 2. Rare 3. Difficult to substitute 4.

Initiate

HRM: the effective and efficient management of Human resource to achieve organization goals and
gain a competitive edge. The practices, policies, and systems that influence employee’s attitudes,
behaviours and performance.

Objectives of HRM:

1. Staffing: Place the right person with the right skills on the right place on a right time.
Person must fit the adequate job requirements and also must fit the organization culture.
• Designing organization culture: this includes span of control, chain of command,
centralization, departmentalization, work/job design, formalization.
• Identify type of workers
• Recruitment
• Selection
• Develop: if the skillset developed- achieve expertise in staffing.
2. Performance Objectives: Ensured that people are motivated by increasing performance in
the company by offering compensation & benefits. Which can include job security.
Employees will put more effort.
3. Administration Objectives: Facilitate an organization’s smooth running
4. Change- Management Objective: Organization is a societal entity. When different forces are
influencing the company- managing the change effectively is important. Can be done
through privatization or dealing with structural vs organizational change.
• Structural change is the change in chain of command
• Cultural Change is change in values, attitudes and behaviours
5. Reputational objective: Hr plays an important role to ensure reputation of the company is
not damaged. Department has to ensure no one goes against the company in court. Portray
your company in a good light. Avoid negative social media coverage.

6. Well-being objective: Employee must be feeling well. Mental well-being, Physical Well-Being.
If employees are happy with their jobs or not. These are assessed by appraisal meetings and
performance indicators.

Well-being is important because it leads to lower turnover, Job satisfaction, work- home conflict,
organizational disidentification, low performance and productivity.

WHY IS HRM IMPORTANT?

1. Reduces costs: If no proper management: Millions of losses

2. Core Competencies: This is any attribute that adds value to the organization. Organization
want competitive edge over others. For this, business need effective strategies. To develop
them organizational strengths are important.
HRM combines/ Includes: 1. Financial assets 2. Human Assets ( very important) 3.
Informational assets 4. Physical assets.
HRM is also known as human capital which is also called intellectual capital because it
reflects the knowledge and skillset of workforce
Human capital includes: KSA (Knowledge, skills, abilities) , motivation of organizational
Workforce, Life experiences
AMO Framework: Objective of HRM to enhance ability, motivation and opportunity.
 If compensation offered is competitive- more employee motivation
When u develop, invest in employees, promote them – you are providing them opportunity

3. Productivity: Subdimension of performance.

• Strategies to achieve productivity:
I. Organizational Restructuring: when mission and vision are not
achieved from the existing structure
II. Reshaping your Jobs
III. Outsource HRM Implications i.e training mentors.
4. Customer Service
5. Innovation: High performance work systems include:
1) Job enrichment
2) Training: extensive training
3) Self-management teams where there is no leader or manager
4) Value Based recruitment and selection: hiring people who align with company
values
5) Team based incentives: team performance based rewards
6) Equalitarianism: treating all employees equally
7) Internal Promotion
8) Profit sharing plan / information sharing
9) Job security
10) Stock Option

Organizational Innovation is coming up with new ideas and solutions to solve problems.

It includes Idea generation and idea implementation.

Employee Participation: Seek their ideas and inputs, engage them in decision making. This can be
done through:

Direct Voice Mechanism: Right to express concerns

Corporate governance: How organizations should behave. What steps, measures, policies, they
should follow, decisions taken by the management, also engage employees in decision making.

HPWS lead to organizational Innvoation

6. Organizational Structure: attitude, beliefs, customs, and traditions that exist in an

organization
7. Perfomance

Authority: 3 things: Right to make decisions, direct others and give orders

Line Authority: refers to a superior-subordinate relationship. This is where you directly influence
employee behaviour. Issue orders to other managers or employees.

Staff Authority: This refers to a advisory relationship which means the role is to advise other
managers and employees.

Role of the HR Department:

1)Administrative: Record Keeping Of employees ex: salaries, check in time

2)Operational and employee advocate: employee training, hiring, compensating

3)Strategic: Something to exist in future.

Trends shaping HRM:

1) Workforce demographics and diversity: representation of women is increasing.

2) Trends in jobs people do
3) Technology trends.

POST MID

Recruitment and Selection:

The role of the HR dept is to build a supply of potential new hires.

Recruiting consists of any practice by the organization with the primary purpose of identifying and
attracting potential employees.

Recruitment: encouraging qualified people to apply for jobs

Selection: deciding which candidates would be the best fit

JOB CHOICES:

Vacancy Characteristics: Vacant job position Characteristics for eg manager growth opportunity,
new experience etc.

Applicant Characteristics: what they require, what they prefer, aap ke pass konse applicants ayenge.

Personal Policies, Recruiter traits + behavior, recruitment sources all three effect Vacancy and
Applicant Characteristics.

Personnel Policies are organization’s decisions about how it will fill job vacancies. These effect the
vacancy Characteristics.

1.Internal Recruiting people already working within the company more opportunity Job
is more attractive

2.Lead-the-market pay: Offering a greater salary then job market attractive feature for
applicants.

3.Employment Policies Fulltime Opportunity govt agencies lifetime and secured jobs
with pensions
 Contractual Jobs for people who want to make more progress and to move on.

4. Image Advertising: all the advertising done to create a favorable image of the company

Image attracts and influences feelings of consumers.

Innovative Companies vacancy for people who want creativity and innovation

SOURCES OF RECRUITMENT: ii. Internal ii. External

a) External:

College recruitment: Reaching out to Unis/Colleges

Job Poaching: Reaching out Individually

Social Media: booming eg Linked in

Recommendations: Refer a job to someone

Walk-In Interviews: take cv and come for interview

Placement Agencies: third party agencies

b) Internal:

Transfers, Promotions, Job Referrals

Recruiter Traits & Behaviors:

A If any negative info is told to the applicants, they might not pursue the job.

Very imp for recruiters to know the right info to expose to applicants.

B Realistic previews- communicate the right aspects of the job to applicants. For example some jobs
require overtime so u should inform the applicants during the interview.

Selection Process: Through selection. Decision whom to hire & who to not. Process has 5 steps.
Different for every organization.

1. Screening: shortlisting of resumes

2. Testing & Review: testing the abilities and skills mentioned in the cv
3. Interviews: If interview cleared, 80% decision of hiring
4. References: Cross checking of references & bg
5. Selection

Many companies have integrated AI & software’s which automatically screen their resumes posted
on time. Job Posting done on social media which can generate 100 CV’s per day. Automated
screening process-CV’s are matched with company’s requirements through key words which the
automated system matches. If matched screening is complete and if not matched with keywords an
automated email or rejection is mailed to the applicants.

Application Form: First step in the pre-screening process.

Provides 3 types of information.

 1. Job Specification: Is candidate fit for the role or not.
2. Previous progress/growth/experience: relevant or not
3. Work record: past jobs

Selection: Selecting the best candidate from a pool of candidates. Aim of employee selection is to
achieve job fit.

There are two objectives of selection:

1 Job fit: Candidates Skills, Abilities, knowledge and competence matches with the role or not.

2 Organizational Fit: Persons fit for the organizational structure.

Selecting the right candidate is important for several reasons. The more the person Is fit for the role
the less the training cost. When the person achieves both fits this will reduce the turnover costs as it
is costly to hire again and again. Moreover it creates a better work environment thus this will lead to
an increase in the productivity and will increase the performance.

TYPES OF TESTS:

Cognitive/Ability Test: Tests of general reasoning ability (intelligence) ❖ Tests of mental abilities like
memory, numerical ability, and inductive reasoning.

Motor and Physical test:❖ Motor test → test of dexterity and reaction time ❖ Physical test →
strength (e.g., lifting weights), body coordination, and stamina.

Personality Test & Interest test: Interest Test: Is the candidate interested in the job or not.
Personality Test: helps to recruit the people who are fit with the organization. Big Five Test,
Holland’s Personality Test, Myers-Briggs Type indicator(MBTI)

The Big Five Personality Test:

1. CONSCIENTIOUSNESS: People who are more prepared, spends time preparing, finishes tasks
right away, pays attention to detail, enjoys having a set schedule. Low: dislikes structure and
scheduled, make messes and doesn’t take care of things
2. EXTROVERSION: talkative, emotional experience, centre of attention, highly energized, likes
social gatherings, love to start convos.
3. OPENNESS: how much u are open to new ideas, very creative.
4. AGREEABLENESS: affection, kindness, caring, sympathy and concern for others
5. NEUROTICISM: control over their emotions, mood changes, emotional stability, dealing with
stress

Career=personality x environment

Hollands theory of career, personality test – Came up with 6 elements.

Achievement Tests: Assess Job Knowledge, For eg finance job- finance related questions. Ability test
give situations.

Other Tests: Work sampling techniques eg cashier- counting money

Situational Judgment tests: Assess judgments regarding a situation

Management Assessment Centres: 2-3 day simulation to perform realist management tasks ❖ To
see if candidates have skills for key management positions For example ❖ The in-basket → get
memos, emails, notes to complete etc. ❖ Leaderless group discussion → assess interpersonal skills +
leadership ability +influence on others ❖ Management games →solve realistic problems as member
❖ Oral presentations ❖ Testing ❖ interview

Purpose of Orientation/Onboarding

1. Provides new employees with the basic background information ➢ e.g., laptop, email ids,
passwords, and company rules

2. Help them start becoming emotionally attached to and engaged in the firm.

Achieve four things:

1. Make the new employee feel welcome and part of the team.

2. Make sure employee has the basic information to function effectively

3. Help employee understand the organization in a broad sense (its past, present, culture, and
strategies and vision of the future).

4. Start socializing the person into the firm’s culture and ways of doing things.
Orientation objectives:

1 Company Vision 2 Company Culture 3 Employee Expectations Fulfil

4 Explain performance Expectations 5 Make employee feel valued

Employee Orientation Process:

Describe Basic organizational elements (mission, vision, culture) Introduction with the new
supervisor Explain the organizational management Familiarize with the fellow employees
Familiarize with the workplace.

Training Function:

Organization efforts for the employees so that they can gain knowledge, skills, abilities to obtain
organizational goals. It addresses all shortcomings of employee’s skills. For Example, training a sales
person- showing how to sell-polishing his people’s skills.

Formal classes/one-on-one mentoring ➢ On the job or at remote locations

➢ Employers know that training fosters engagement.

Benefits the organization when it is linked to organizational needs and when it motivates employees

It is important to improve employee productivity and engagement in order to polish KSA and to
avoid development of negative behaviors on the job. Employee might perceive that the company
owns them. By investing in the training program of employee’s loyalty also increases thus
organizational needs are fulfilled & employees are motivated.

Training has become important now a days:

1 Rapid Environmental changes.

2 Increasing demand for new skills

3 Competition is also increasing thus training is needed to make yourself competitive.

Effective training can be achieved when:

a) It teaches what it was designed to teach

b) teaches the skills and behaviours which help the organisation achieve their goals.

HR professionals approach training through instructional design ➢ A process of systematically

developing training to meet specified needs. The Process:

1. Assess the needs:

A process of evaluating the organization, individual employees, and employees’ tasks to determine
what kinds of training are necessary. It answers 3 questions

1What is the context in which training will occur? → Organization 2 Who needs training?→ Person 3
What subjects should the training cover?→ Task
Some Condition may prompt a need assessment: Lack of basic skills, New technology introduced,
outside forces which means legal requirements

2. Ensure readiness for training: Are employees needy of it? Are the willing to take it?

3. Planning the training program: Training program should directly relate to the needs
identified. It begins with Objectives.

Objectives of the program:

1. Training Program will be more focused meaning you are on track

2. Design training material us hisaab se

3. Trainers can better train according to the requirement

4. Employees learn best when they know what the training is supposed to accomplish

5. Evaluate the program benchmark and criteria provided to keep a check and balance.

Effective training objectives have several characteristics:

1. Include a statement of what the employee is expected to do

2. The quality or level of performance that is acceptable

3. The conditions under which the employee is to apply what he or she learned

4. Include performance standards that are measurable

5. Identify the resources needed to carry out the desired performance or outcome.
Things to avoid while planning the training program:

1. Organization has to avoid illegal discrimination.

2. Organizations should not exclude members such as women, minorities, and older employees.

3. During the training, all participants should receive equal treatment, such as equal opportunities
for practice.

4. Provide reasonable accommodation for trainees with disabilities.

Training can be started after the objectives are identified. After objectives have been designed
decide i. who will be the trainers, ii. what topics will be selected to base the training on, iii.
Determine which method is effective to used, iv. Objectives decide how to evaluate the training.

Methods of training:

Presentations: videos, lectures, podcasts. This is the appropriate method when u want to covey
facts & info.

Hands-on-method: trainings given physically. This upgrades the existing skills-new skills added

Group Building: trainees share ideas and experiences, build group identities, learn about
interpersonal relationships and the group.

Creating a Motivational Learning Environment: Learning = ability + motivation

➢ Check the ability of trainees ➢ Accommodate differences in trainee abilities if any ➢ Ensure the
learner is motivated

4. Implement the training:

I. Principles of learning: What is the org doing to promote the learning. It includes
communicating the learning objective- use distinctive, attention-getting messages –
Limit the content of grading- Elaborate on the subject- transfer course content to
the workplace- provide feedback about perfomance
II. Transfer of learnings: On-the-job use of knowledge, skills, and behaviors learned in
training. How to transfer?
Firstly, boost their self-efficiency- empower them that they can implement what
they have learned.
Secondly, Provide management support such as additional tools+ resources for
implementing what was learned
Organizational climate should foster transfer of learning
Trainee characteristics

5. Evaluate the results: Trainee Satisfaction- Transfer of training- Return on Investment-new

skills knowledge- performance improvements

Training effects to measure:

The widely used Kirkpatrick Model of training evaluation ➢ lists four training effects employers
can measure:
 i. Reaction: participants' initial responses to the training
ii. Learning: knowledge acquired through the training
iii. Behavior: practise change in response to training
iv. Results: organizational change in response to the training.

PERFOMANCE MANAGEMENT:

Performance management refers to the evaluation and continuous improvement of individual or

team performance. It has six basic elements:

1. Direction sharing: the system should tell u if u are in the right direction or not.

2. Goal alignment: Goals should be fulfilled.

3. Ongoing performance monitoring: Kitna goal achieve hugaya

4. Ongoing feedback: To rectify themselves

5. Coaching and developmental support: Coaching and training are different. Coaching is formal and
mentoring is informal. Coaching is goal oriented but mentoring is not.

6. Recognition and rewards: motivates the employees.

Performance Appraisal: means evaluating an employee’s current and past performance relative to
his or her performance standards. It is an ongoing process. Establish performance standards->
Communicate performance standards-> Measure performance->Compare performance to standards
-> Discuss the appraisal with the employee -> Implement Personnel Action.

Why Appraise Performance?

➢ There are five reasons to appraise subordinates’ performance.

1. To make pay, promotion, and retention decisions

2. Key role(backbone) in performance management process.

3. Documenting personnel decisions

4. Develop plans for correcting deficiencies, and to reinforce strengths.

5. Review employee’s career plans in light of their strengths and weaknesses. In order to decide
which task will be given to which employee.

Establishing Performance Standards: Provide employees with a framework of how the company
expects them to work. ➢ The performance appraisal should compare “actual” with “expected
behavior” ➢ Should be SMART (Specific, Measurable, Attainable, Relevant, Time specific)

Setting performance goals at ball corporation: They first gave trainings to the plant leaders-then
gave tips and communicated the goals. They kept track of how weekly, monthly and annual goals are
being achieved. They also provided training and coaching together-timely correcting the
performance. The performance improved and customer complaints went down. Just by training
managers, keeping goals, monitoring them and providing them training and coaching together to
give timely feedback to them.

Who should do the Appraisals?

Supervisors’ appraisal can be biased thus not reliable. Use other methods like:

Coworkers/Peer Appraisal: Free rider tou nahin hai?

Customer Appraisal

Self-ratings: what do they think about themselves.

By Sub-ordinates

Which method to use depends on the nature of the job. For example, if job requires more customer
interaction, then customer appraisal should be used. However, all of these methods can be blurred
by biasness so better to use them all together.

Constructive feedback: Universal Appraisal technique which can be applied in all jobs.

Destructive criticism also helps but can lead to demotivation and grudges.

360 Feedback System: Taking feedback from all four groups

90 degrees= manager

180 degrees= peers/co-workers

270 degrees= customers

360 degrees= direct subordinates

Tools to appraise Performance:

i. Graphic Rating Scale: The graphic rating scale is the simplest and most popular method
Graphic rating scale refers to using specific factors to appraise people. Left side factors
and columns have the subjective scale

ii. Alternation ranking method: Ranking employees from best to worst on a trait or traits is
another option. Highest class behaviors and lowest class behaviors.

iii. Paired Comparison Method: Ranking employees by making a chart of all possible pairs
of employees for each trait and indicating which is the better employee of the pair. For
example quality of work & creativity- 2 factors identified and rated for all employees in
the grid. both grids compared for eg. Creativity of employee A is better than quality of
his work. This method is effective in teams of 4-5 people only.

iv. Critical Incident Method: Focuses on the behaviours that determine whether a task is
done well or poorly. ➢ Keep and accumulate written records of the employee’s
favourable and unfavourable actions throughout the appraisal year

v. Behaviourally Anchored Rating Scales (BARS): A tool for measuring performance based
on predefined behavioural patterns.
 vi. Management By Objectives: MBO requires the manager to set goals with each
employee, and then periodically discuss the progress toward these goals. ➢ Five-step
procedure:

1. Set Organizational Objectives

2. Cascade objectives to employees
3. Monitor
4. Evaluate Performance
5. Reward Performance

Advantages of MBO:
1. Role clarity

2. Objective appraisal

3. Motivation

4. More involvement

5. Coordination (LMX)

6. No confusion and duplication

7. Better training program 8. Greater accountability

Electronic Performance Monitoring: EPM systems allow managers to monitor the employees’ rate,
accuracy, and time spent working online. ➢ EPM can improve productivity, but also seems to raise
employee stress. ➢ “represents the future of performance feedback” ➢ For example, British retailer
Tesco → wear armbands → track which specific goods each worker is moving and how long it takes
each worker to fulfill each order.

Dealing with Rater Error Appraisal Problems

Potential Rating Problems are:

1. Unclear standards

2. Halo effect

3. Central tendency → means rating all employees average.

4. Leniency or strictness bias

5. Recency effect → letting what the employee has done recently blind you to what his or her
performance has been over the year.

Checklist of Best Practices for Administering Fair Performance Appraisals

1. Base the performance review on JD and observable behaviors or performance data.

2. Communicate performance expectations.

3. Use a standardized performance review procedure for all employees.

4. Make sure rater observe ratees’ job performance.

5. Either use multiple raters or supervisors to evaluate the appraisal results.

6. Include an appeals mechanism.

7. Document the appraisal review process and results.

8. Discuss the appraisal results with the employee.

9. Indicate what the employee needs to do to improve.

10. Train the supervisors who will be doing the appraisals

Managing the Appraisal Interview

Supervisors face four types of appraisal situations with different objectives:

Compensation and benefit

➢ Compensation → all forms of financial rewards received by employees.

➢ 2 types ❖ Direct → salary, wage, bonuses, incentive ❖ Indirect → medical, paid off, pension,
vacations

➢ Equity ❖ External equity ❖ Internal equity → e.g., sales manager vs production manager ❖
Individual equity ❖ Procedural equity

Benefits ➢ indirect financial and nonfinancial payments➢ to attract, recognize, and retain workers
Include things like • Health and life insurance • Pensions • Housing facility • Child-care assistance ➢
Employee benefits account for about 31% of total compensation.

ER is the managerial activity that involves establishing and maintaining positive employee–employer
relationships 1. Increased productivity 2. Higher motivation and morale 3. Happiness at work 4. +ve
work environment,

ER programs for positive employee relations 1. Ensuring fair treatment 2. Workplace bullying
(repeated exposure to unwanted negative Acts) 3. Victimization Forms of bullying ❖ Verbal →
name-calling, teasing ❖ Social → spreading rumors, breaking up friendships ❖ Physical → hitting,
punching ❖ Cyberbullying → using digital technologies
How to improve ER? 1. Organizational climate 2. Employee recognition 3. Employee involvement 4.
Career development 5. Healthy work life balance