HR

Compendium
TABLE OF CONTENT

A. Functions of HR ...................................................................................................................................5
1. Recruitment and Selection (Talent Acquisition) .......................................................................... 5
Recruitment and Selection process ............................................................................................................ 6
Attracting candidates to apply for the job................................................................................................ 6
2. Compensation and Benefits .................................................................................................................. 7
Components of Compensation and Benefits ............................................................................................ 7
Executive Compensation depends on the following factors .............................................................. 8
Salary Breakup ................................................................................................................................................... 8
3. Performance Management System (PMS) ....................................................................................... 9
Elements of Performance Management: ................................................................................................... 9
Biases associated with PMS: ....................................................................................................................... 11
4. Total Rewards Strategy ....................................................................................................................... 12
5. Training and Development ................................................................................................................ 12
The Training Cycle ......................................................................................................................................... 13
Need Identification ........................................................................................................................................ 14
Training Design............................................................................................................................................... 15
Training Delivery Methods ......................................................................................................................... 15
Training evaluation ....................................................................................................................................... 15
Other Models.................................................................................................................................................... 16
6. Succession Management ..................................................................................................................... 17
Job Analysis ...................................................................................................................................................... 18
Job Analysis Process: .................................................................................................................................... 20
7. Industry Relations................................................................................................................................. 22
8. Employee Engagement ........................................................................................................................ 23
Aon-Hewitt’s Model of Employee Engagement ................................................................................... 23
Conclusion: Measure What Matters ......................................................................................................... 25
9. Employee Involvment .......................................................................................................................... 26
10. HR Analytics: ....................................................................................................................................... 27
Types of Analytics: ......................................................................................................................................... 27
Levels of HR Analytics................................................................................................................................... 28
 11. Diversity & Inclusion: ...................................................................................................................... 31
Organizational Behavior ............................................................................................................................. 32
Motivational Theories .................................................................................................................................. 32
Leadership Theories ..................................................................................................................................... 34
Leadership Styles ........................................................................................................................................... 35
Personality Tests ............................................................................................................................................ 36
Johari Window................................................................................................................................................. 39
Biases.................................................................................................................................................................. 39
B. Human Resource Information System (HRIS) ........................................................................ 43
Solutions offered by HRIS Systems .......................................................................................................... 44
HR and Payroll Factors ................................................................................................................................. 44
HRIS Popular Modules .................................................................................................................................. 44
HRIS Summary................................................................................................................................................. 45
C. HR Roles .............................................................................................................................................. 46
What is the difference in the roles of Plant HR and Corporate HR? ............................................. 46
What is HR consulting?................................................................................................................................. 47
D. Major Indian Labor Acts ............................................................................................................... 49
Recent Amendments in Labor Laws: ....................................................................................................... 49
Code on Wages Act, 2019 ............................................................................................................................. 50
The Industrial Relations Code, 2020 ....................................................................................................... 50
The Code on Social Security, 2020 ........................................................................................................... 51
POSH ................................................................................................................................................................... 52
Industrial Employment (Standing Orders) Act, 1946 ....................................................................... 53
The Trade Union Act, 1926 ......................................................................................................................... 54
Contract Labour (Regulation & Abolition) Act, 1970 ........................................................................ 56
Applicability:.................................................................................................................................................... 56
Industrial Disputes Act,1947 ..................................................................................................................... 57
Introduction ..................................................................................................................................................... 57
Scope and Object ............................................................................................................................................ 57
Applicability ..................................................................................................................................................... 58
Categories of Industrial Dispute (Additional Information) ............................................................ 58
E. Others .................................................................................................................................................. 60
The Great Resignation .................................................................................................................................. 60
 Employee Turnover & Attrition ................................................................................................................ 60
Stages of team formation ............................................................................................................................. 61
KRA vs KPI ........................................................................................................................................................ 62
KRAs .................................................................................................................................................................... 62
KPIs ..................................................................................................................................................................... 62
Categorization of Indicators ....................................................................................................................... 63
Difference between KRA and KPI ............................................................................................................. 64
Employee Life Cycle ....................................................................................................................................... 65
Techniques of Job Design ............................................................................................................................ 67
Recruitment & Selection .............................................................................................................................. 69
Process of Selection ....................................................................................................................................... 69
Hofstede’s Framework for Assessing Culture...................................................................................... 70
The David-Ulrich HR Model ........................................................................................................................ 72
Situational Questions.................................................................................................................................... 73
F. Industry Examples and Additional Reading Materials ........................................................ 75
Best Practices in HR ...................................................................................................................................... 75
PMS.................................................................................................................................................................. 75
Further readings on PMS industry practices: .................................................................................. 76
Recruitment and selection: .................................................................................................................... 76
Further readings: ....................................................................................................................................... 78
Learning and Development:................................................................................................................... 78
Covid-19 Related HR Trends ...................................................................................................................... 81
 A. FUNCTIONS OF HR

1. RECRUITMENT AND SELECTION (TALENT ACQUISITION)

Recruitment is a process of searching out the potential applicants and inspiring them to apply
for the actual or anticipated vacancy.
The activities involved in the recruitment of employees are:
● Analyzing job requirement
● Advertising the vacancy
● Attracting candidates to apply for the job
● Managing response
● Scrutiny of applications
● Shortlisting candidates
● Conducting examination/interview
● Making decisions regarding selection

Selection is a process of hiring employees among the shortlisted candidates. Selection involves a set of
activities which are:

● Screening
● Eliminating unsuitable candidates
● Conducting the examination like aptitude test, intelligence test, performance test,
personality test etc.
● Interview
● Checking References
● Medical Test
 RECRUITMENT AND SELECTION PROCESS

ATTRACTING CANDIDATES TO APPLY FOR THE JOB

There are broadly two sources used to attract candidates:

 2. COMPENSATION AND BENEFITS

Compensation is the total amount of the monetary and non-monetary pay provided to an
employee by an employer in return for work performed as required.

Benefits are indirect and non-cash compensation paid to an employee. Some benefits are
mandated by law (such as social security, unemployment compensation, and workers’
compensation), others vary from firm to firm or industry to industry (such as health insurance, life
insurance, medical plan, paid vacation, pension, gratuity).

The function involves creating and implementing compensation policies for the employees.

● Payroll
● Administration
● Performance
● Appraisals
● Rewards & Recognition
● Incentive Pay policies
● Provide Wage Comparisons
● Group Health, Dental & Vision
● Insurance Life & Disability Insurance
● Accident, Sickness & Cancer Insurance, Flexible Spending Accounts
● Retirement Plan Administration

COMPONENTS OF COMPENSATION AND BENEFIT S

● Guaranteed Pay – fixed monetary(cash) reward paid by an employer to an employee.

The most common form of guaranteed pay is base salary
● Variable pay – a non-fixed monetary(cash) reward paid by an employer to an employee
that is contingent on discretion, performance, or results achieved. The most common
forms of variable pay are bonuses and incentives.
● Benefits – programs an employer uses to supplement employees’ compensation, such
as paid time off, medical insurance, company car, and more.
 ● Equity-based compensation – stock or pseudo stock programs an employer uses to
provide actual or perceived ownership in the company which ties an employee's
compensation to the long-term success of the company. The most common examples
are stock options.

EXECUTIVE COMPENSATION DEPENDS ON THE FOLLOWING FACTORS

● Past Performances
● Experience
● Potential
● Retention Needs
● Job Position
● Tenure

Total Cash Compensation (TCC) = Base pay + Annual Short-Term Incentives

Total Direct Compensation (TDC) = TCC + LTIP (Long-term Investment Plans i.e., ESOPs, RSUs etc.)

SALARY BREAKUP

Basic Salary

+ Allowances

+ Reimbursements

= Guaranteed Cash (GC)

+ Retrials (PF, Pension, Superannuation)

+ Conveyance

= FCWH (Fixed Compensation without Housing)

 + Housing (Housing Deposit + Housing Deposit Valuation)

= Fixed Compensation (FC)

+ AIP (Annual Incentive Plans/ Bonus)

= CTC

MUST READ - COMPONENTS OF COMPENSATION AND DECODING AN INDIAN PAYSLIP

https://www.livemint.com/Money/IDV8uLiMKVsR7a85NzMo6L/How-to-decode-your-monthly-salary-slip.html

3. PERFORMANCE MANAGEMENT SYSTEM (PMS)

Performance Management system (PMS) is a continuous process of identifying, measuring, and

developing the performance of individuals and team and aligning performance with the
strategic goal of the organization.

The performance management process is often linked with other organizational systems such as:

● Strategic planning
● Total compensation
● Individual and team development
● Succession planning
● HR technology systems

ELEMENTS OF PERFORMANCE MANAGEMENT:

1. Goal setting: Goal setting is a process of establishing objectives to be achieved over a

period. It is the performance criteria an employee will be evaluated against. Performance
goals for individual employees should ideally align with organizational goals.
In addition to focusing only on a few major goals during a single year, the goals should be
SMART:
● Specific, clear, and understandable.
● Measurable, verifiable and results oriented.
● Attainable, yet sufficiently challenging.
 ● Relevant to the mission of the department or organization.
● Time-bound with a schedule and specific milestones.
2. Performance review: Performance review is the process of assessing an employee's
progress toward goals. Strengths and weaknesses of all employees are recorded regularly so
that the organization can make informed and accurate decisions regarding an employee's
contribution, career development, training needs, promotional opportunities, pay increases
and other topics.

Recommendations for an effective performance review process include:

● A feedback process that is continuous and timely throughout the review period so that
employees know how they are doing and what is expected.
● A dialogue that includes performance feedback measured against clear and specific goals and
expectations established at the outset of the performance management cycle.
● A process for acknowledging the outcomes of the performance review process that is
documented between the manager and the employee.
● A two-way individual conversation between the manager and the employee (preferably
face-to-face) at least once a year.
Common Types of Performance Review Systems: Several types of performance review systems
are in common use. Each system has its benefits and drawbacks.
● Ranking. Ranking systems list all employees in a designated group from highest to
lowest in order of performance. The primary drawback is that quantifying the
differences in individual performance is difficult and may involve drawing very narrow—
if not meaningless—distinctions.
● Forced distribution. The ratings of employees in a particular group are disbursed along a
bell curve, with the supervisor allocating a certain percentage of the ratings within the
group to each performance level on the scale. The actual distribution of employee
performance may not resemble a bell curve, so supervisors may be forced to include
some employees at either end of the scale when they would otherwise place them
somewhere in the middle.
● 360-degree feedback. This process collects information from the employee's supervisor,
colleagues and subordinates about an individual's work-related behavior and its impact.
Other names for this approach include multi-rater feedback, multisource feedback or
 group review. This form of appraisal is widely favored for employee development
purposes.
● Competency-based. This type of system focuses on performance as measured against
specified competencies (as opposed to specific tasks or behaviors) that are identified for
each position.
● Management by objectives. Management by objectives (MBO) is a process through
which goals are set collaboratively for the organization, various departments and each
individual member. Employees are evaluated annually based on how well they have
achieved the results specified by the goals.
● Graphic rating scales. Graphic rating scale (GRS) appraisals list several factors, including
general behaviors and characteristics (e.g., attendance, dependability, quality of work,
quantity of work and relationships with people) on which a supervisor rates an
employee. The rating is usually based on a scale of three to five gradations. This type of
system allows the rater to determine the performance of an employee along a
continuum.
● Behaviorally anchored rating scales. Behaviorally anchored rating scales (BARSs)
attempt to assess employee behavior rather than specific characteristics. The appraisal
tool generally contains a set of specific behaviors that represent gradations of
performance and are used as common reference points, called "anchors," for rating
employees on various job dimensions.
3. Performance improvement plans: The use of a performance improvement plan (PIP) can
range from employees who may be new to a role or who are unclear on performance
expectations to employees who are regularly falling short of meeting performance
expectations and whose performance may necessitate the beginning of a progressive
discipline process regarding the performance level.

BIASES ASSOCIATED WITH PMS:

http://www.managementstudyguide.com/performance-appraisal-bias.htm

● Halo effect
● Error of central tendency
● Personal Prejudice
 ● Recency effect
● Rater Effect
● Spillover Effect

4. TOTAL REWARDS STRATEGY

Organizations today do not view compensation and benefits in silos, in fact progressive organizations
are switching to a Total Rewards Strategy i.e., to focus on all tangible and intangible benefits offered as
a part of the employment.

5. TRAINING AND DEVELOPMENT

Training has a purpose to make workers and employees proficient in their present jobs while
development is to prepare employees for handling more responsible and challenging jobs.
Training focuses on developing skills already possessed by workers while development focuses
on developing hidden qualities and talent of personnel.
Training methods include apprenticeship, coaching etc. While development methods include
off-the-job-training methods such as job rotation, lectures, role playing, brainstorming,
sensitivity training etc.
 Training & Development Need = Standard Performance –Actual Performance

The training inputs are:

● Skills
● Education
● Development
● Ethics
● Problem Solving Skills
● Decision making
● Attitudinal Changes

Training is crucial for organizational development and its success which is indeed fruitful to both
employers and employees. Here are some important benefits of Training and Development.

• Increased productivity
• Less supervision
• Job satisfaction
• Skills Development

THE TRAINING CYCLE

 NEED IDENTIFICATION

• Organizational Analysis: An analysis of the business needs/future business demand

• Person Analysis: Analysis dealing with potential participants and instructors involved in
the process. The important questions being answered by this analysis are who will
receive the training and their level of existing knowledge on the subject, what their
learning style is, and who will conduct the training.
• Work analysis / Task Analysis: Analysis of the tasks being performed. This is an analysis
of the job and the requirements for performing the work. Also known as a task analysis
or job analysis, this analysis seeks to specify the main duties and skill level required
• Performance Analysis: are the employees performing up to the established standard? If
performance is below expectations, can training help to improve this performance? Is
there a Performance Gap?
• Content Analysis: Analysis of documents, laws, procedures used on the job. This
analysis answers questions about what knowledge or information is used on this job.
This information comes from manuals, documents, or regulations.
• Training Suitability Analysis: Analysis of whether training is the desired solution.
Training is one of several solutions to employment problems. However, it may not
always be the best solution. It is important to determine if training will be effective in its
usage.
• Cost-Benefit Analysis: Analysis of the return on investment (ROI) of training. Effective
training results in a return of value to the organization that is greater than the initial
investment to produce or administer the training.
 TRAINING DESIGN

TRAINING DELIVERY METHODS

• Classroom Training: This type of training is facilitated by an instructor either online or in

a classroom setting. Instructor-led training allows for learners and instructors or
facilitators to interact and discuss the training material, either individually or in a group
setting.
• Online Trainings/ e-learning: Web-based training (sometimes called e-learning) is
anywhere, any-time instruction delivered over the Internet or a corporate intranet to
browser-equipped learners. There are two primary models of Web-based instruction:
synchronous (instructor-facilitated) and asynchronous (self-directed, self-paced).
• Blended Approach: Blended Learning is often defined as a mix of classroom and virtual
training events.

Read more: https://elearningindustry.com/apply-70-20-10-model-learning-development

TRAINING EVALUATION

Kirk Patrick Model for training evaluation. It evaluates training at 4 levels:

 OTHER MODELS

Hamblin Model, Warr’s Framework of evaluation, Virmani and Premil’s model of evaluation, Phillips
Model

Coaching, Mentoring & Training

 6. SUCCESSION MANAGEMENT

Succession planning and management is an essential component of the broader human resources
planning process. It involves an integrated, systematic approach for identifying, developing, and
retaining capable and skilled employees in line with current and projected business objectives.

Following are a few terms surrounding succession planning processes:

● Training. The preparation of an employee to perform the tasks required for his or her
current role.
● Development. The practice of equipping an employee (or group) for future roles and
responsibilities.
● Career planning. An employee-centered practice of identifying the interests of the
employee and assisting that individual, as well as providing personal development options
consistent with his or her talents and interests.
● Career management. An organization-centered practice of creating jobs and organizational
structures that promotes the achievement of business objectives.
● Replacement planning. A shorter-termed practice of identifying replacements for personnel
in key operating functions.
● Succession planning. The future-focused practice of identifying the knowledge, skills and
abilities to perform certain functions and then developing a plan to prepare multiple
individuals to potentially perform those functions.

One of the tools used for succession planning is the nine-box model

The 9-box grid is a well-known talent management tool in which employees are divided into nine
groups, based on their performance and potential.

When assessing employee performance, managers often pay attention to two things. First, how
well they perform today, and second, how well they are likely to perform in the future (i.e. their
growth potential). The 9-box grid provides a framework that helps to manage all employees in an
organization.
 JOB ANALYSIS

A Job Analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job. Job Analysis is a process
where judgements are made about data collected on a job.

You need as much data as possible to put together a job description, which is the frequent
outcome of the job analysis. Additional outcomes include recruiting plans, position postings and
advertisements, and performance development planning within your performance management
system.

The Job Analysis may include these activities:

 ● Reviewing the job responsibilities of current employees
● Analyzing the work duties, tasks, and responsibilities that need to be accomplished by the
employee filling the position
● Researching and sharing with other companies that have similar jobs

Articulation of the most important outcomes or contributions needed from the position

Job-description:
A broad, general, and written statement of a specific job, based on the findings of a job analysis.
It generally includes duties, purpose, responsibilities, scope, and working conditions of a job along
with the job's title, and the name or designation of the person to whom the employee reports.

Although the design or layout of the job description is described or differs depending on the firm
and it may sometimes take many forms, but it typically includes at least these sections: -

● Firstly, a summary of the job to whom the position reports

● Then a list of job duties and requirements for the job and any other important information
about the job
● Details about the competencies required, specifications like qualification or skills needed by the
person appointed for the job

Job description usually forms the basis of job specification.

For each employee, a good job description helps the incumbent to understand:
➔ Their duties and responsibilities

➔ The relative importance of their duties

➔ How their position contributes to the mission, goals and objectives of the organization

Job Specification: Lists the knowledge, skills, and abilities an individual needs to perform a job
satisfactorily. Knowledge, skills, and abilities (KSAs) include education, experience, work skill
requirements, personal abilities, and mental and physical requirements.
 JOB ANALYSIS PROCESS:

1. Collects information required for job analysis

a. Work activities: Collects information about the job’s actual work activities, such as
cleaning, selling, teaching, or painting. This list will also include how, why and when the
employee performs each activity
b. Human behaviors: Collects information about human behaviors like sensing,
communications, deciding and writing. Included here would be information regarding
job demands such as lifting weights or walking long distances
c. Machines, tools, equipment, and work aids: This category includes information
regarding tools used, material processed, knowledge dealt with or applied (such as
finance or law), and services rendered (such as counselling or repairing).
d. Performance standards: The information about the job’s performance standards (in
terms of quantity or quality levels for each job duty, for instance). Management will use
this information to appraise employees.
e. Job Context: Included here is information about such matters as physical working
conditions, work schedule, and the organizational and social context – for instance, the
number of people with whom the employee would normally interact. Information
regarding incentives might also be included here
f. Human requirements: This includes information regarding the job’s human
requirements, such as job-related knowledge or skills (education, training, work
experience) and required personal attributes (aptitudes, physical characteristics,
personality, interests)
2. Review relevant background information such as organization charts, process charts and existing
job descriptions
a. Organization charts: Organization charts shows the organization wide distribution of
work, with titles of each position and interconnecting lines that show who reports to
and communicates to whom
b. Process charts or Workflow charts: Workflow chart shows the flow of inputs to and
outputs from a particular job
c. Existing job descriptions
 3. Select representative position: There may be too many similar jobs to analyze them all. For
example, it is usually unnecessary to analyze the jobs of 200 assembly workers when a sample of
10 jobs will do
4. Analyze the job by collecting all the required information related to that thorough interview,
observation, or any other methods.
5. Verify the job analysis information with the employee performing the job and with his or her
immediate supervision
6. Develop job descriptions and job specifications

Basically, a job analysis is normally documented via a job analysis questionnaire, and the product is a
job description, inclusive of clearly defined job specifications (i.e., required and/or preferred
qualifications) for the job incumbent.

Uses:

● Workforce / Manpower planning (skill inventories and supply/demand forecasting)

● Organization design (missions, functions, and other aspects of work units for horizontal and
vertical differentiation)
● Performance management (performance criteria and appraisal)
● Affirmative Action plans
● Recruiting and selection (Employment)
● Career and succession planning
● Training and development (needs assessment)
● Compensation administration (Job Evaluation, Grades, Pay Surveys and Pay Setting)
● Health, safety, and security
● Employee/labor relations
● Compliance with legal requirement
● Risk management
● Work management (work processes and outsourcing)
 7. INDUSTRY RELATIONS

Industry Relations (IR) is concerned with management of relations between workers and employer
(management) and the role of regulatory mechanisms in resolving any dispute.

Employers, Employees, Unions, Government and Judiciary have stakes in IR. IR assumes its significance
owing to its direct linkage with productivity, ethical dimensions, and legal compliance. IR is perceived as
a method to involve workers/employees in decision-making, share ideas with them, redress grievances
and improve working conditions. All this culminates into increased productivity and morale. Broadly IR
covers the following areas:

● Collective Bargaining
● IR Training
● Labor legislation
● Grievance Management
● Disciplinary practice and procedure
● Role of management, unions, and government
● Improving Working Conditions

In today ‘s era, there is a need for proactive strategy to tackle IR. This involves ensuring proper
communication of company philosophy, fostering relationships with employees and unions, developing
competence of managers and supervisors and ways of dealing with a conflict as and when it occurs.

Health & Safety: Safety implies absence of accidents i.e., ensuring protection of workers from
workplace hazards. Providing safety to employees has a moral dimension as well as a legal
requirement. Thousands of employees suffer from accidents everyday – this could lead to total,
temporary or permanent disability. There are laws covering occupational health and safety, and
penalties for non-compliance. An employer needs to ensure that an accident doesn ‘t lead to
incapacitation/death of an employee. Monetary compensation does not bring back a person as a
healthy individual.
 8. EMPLOYEE ENGAGEMENT

Employee engagement is a property of the relationship between an organization and its employees. An
"engaged employee" is defined as one who is fully absorbed by and enthusiastic about their work and so
takes positive action to further the organization's reputation and interests. According to Kahn (1990),
engagement means to be psychologically as well as physically present when occupying and performing
an organizational role.

• The cognitive aspect of employee engagement concerns employees’ beliefs about the
organization, its leaders and working conditions.
• The emotional aspect concerns how employees feel about each of those three factors and
whether they have positive or negative attitudes toward the organization and its leaders.
• The physical aspect of employee engagement concerns the physical energies exerted by
individuals to accomplish their roles.

The vast majority of HR practitioners state that employee engagement is one of the primary objectives
of a talent strategy and therefore, many organizations are measuring employee engagement through
regular employee surveys.

AON-HEWITT’S MODEL OF EMPLOYEE ENGAGEMENT

The Aon Hewitt engagement model includes the organizational drivers and business outcomes of
engagement. When Aon-Hewitt talks about the employee engagement construct, it refers to the
psychological state and behavioral outcomes that lead to better performance i.e., a combination
of rational thought, emotions, intentions, and behaviors required for optimal performance and
productivity.
Aon-Hewitt operationalize employee engagement as a construct of six items composed of three
observable facets of “say, stay, and strive” with two items each, as shown in the following table-

This “say, stay, and strive” definition was derived from thousands of managerial interviews and
focus group discussions Aon-Hewitt have conducted globally regarding what engaged employees
think and do. Aon-Hewitt believes that an employee must exhibit all three facets of saying,
staying, and striving to be considered engaged.
Engagement Measure Reliability: Aon-Hewitt analyzed employee survey responses from a
random sample of 12 organizations from our 2010– 2013 database varying in industry and
geographical region. The reliability (measured by Cronbach’s alpha) of the engagement scores
obtained across industries and regions suggests that these items provide a consistent and reliable
measure of engagement. Reliability coefficients for the six-item construct exceed the generally
accepted threshold of 0.7 and yield an average reliability of 0.91. Deeper item analyses suggest
that the internal consistency is not improved by removing any of the six engagement items, and
each of the sub-facets (say, stay, and strive) also meets reliability thresholds.

Engagement Construct Validity: In addition to the reliability and internal consistency of this
measure, employee responses to this six-item construct are also valid indicators of employee
engagement. Aon-Hewitt conducted exploratory factor analysis on a random sample of over
20,000 employees from 2013–2014 studies across global geographic regions. This analysis
included the six engagement items as well as a sampling of items from other well-known
“driver” constructs from their model, such as supervision/manager, collaboration, senior
leadership, rewards, enablement, and L&D.

CONCLUSION: MEASURE WHAT MATTERS

● Engaged employees who “say, stay, and strive” matter- The extent to which employees
say, stay, and strive is a good indicator of their engagement, can be used to measure
organizational levels of engagement, and is a predictor of important business outcomes.
● “Stay” is still relevant- Some would suggest that in today’s workplace, loyalty has
decreased and that the “stay” element is no longer relevant to engagement. However, the
empirical evidence above demonstrates that these items related to “continuance
commitment” do in fact belong to the same construct. Perhaps, as some leading-edge talent
thinkers would suggest, it is more important than ever for organizations and managers to
constantly re-recruit and re-engage top talent rather than accept high turnover as the new
normal and beyond managerial control.
● “Strive” is critical- Not all engagement measures include a “strive” element, even though
this aspect is most consistent with a definition beyond employee satisfaction that implies
“discretionary effort” or “going above and beyond.” The analysis above suggests that not
 only is the “strive” element an important part of a valid engagement measure, but also that
it may have some unique explanatory power
● Enablement is not part of engagement- Some engagement measures include an aspect of
enablement. The analysis suggests that this is a different measure and would confound an
engagement measure with a different construct. Enablement is an important part of
company practices within management’s control, but is not part of an individual’s
engagement outcome itself
● Engagement drivers are also important- Beyond the engagement outcome, predictors—or
drivers of engagement—are a critical and actionable part of a complete engagement model.
The complete Aon Hewitt engagement model includes not only a measure of the
engagement outcome but also several engagement drivers grouped under various large
themes: brand, leadership, performance, the work, the basics, and company practices

9. EMPLOYEE INVOLVEMENT

Employee involvement can be defined as: The direct participation of staff to help an organization fulfil
its mission and meet its objectives by applying their own ideas, expertise, and efforts towards solving

Advantages:

● Improved organizational decision-making capability

● Substantially improved employee well-being
● Reduced costs through elimination of waste and reduced product cycle times
● Improved Morale- When employees are treated as an asset and their input is given
consideration, confidence increases among every team member, and the company sees
significant gains in different facets such as productivity and loyalty
● Increased Productivity- Employee involvement and empowerment translate directly into
increased productivity. When employees are given independence and expected to be more self-
sufficient, they become more efficient over time. This allows managerial staff more time to
attend to responsibilities other than giving assignments to subordinates and decreases
micromanagement, which retards productivity
● Team Cohesion- Although employee empowerment is largely designed to give each employee
autonomy, it likewise fosters better relationships between employees and with their managers,
 because employees that are given more independence tend to form better working
relationships.
● Innovation- Employee empowerment helps to cultivate innovation. Employees that have a stake
in the company’s growth and sustainability will offer more ideas and problem-solving solutions
when obstacles arise. Moreover, as the employee meets challenges or finds improvements in
policies, procedures or products, it will foster growth and more critical and imaginative thinking.

10. HR ANALYTICS:

Human Resource analytics or Talent analytics is the application of data mining and business analytics
techniques to human resources (HR) data. It is a data driven approach to manage people at work.

TYPES OF ANALYTICS:

1. Descriptive – What happened?

Looks at data statistically to show what happened in the past

2. Diagnostic – Why did it happen?

Often called as root cause analysis, it provides a deeper analysis to the descriptive data by
answering: Why did this happen?

3. Predictive – What will happen?

Considers historical data and feeds it into a machine learning model that considers key trends.
This is then applied to current data to predict what will happen next.

4. Prescriptive – How can we make it happen?

Basis the predictive data, it helps answer “What should be done next?” by suggesting course of
action and outlines the potential implications for each
 LEVELS OF HR ANALYTICS

Google is the pioneer in this field.

• Leadership characteristics and the role of managers: Its “Project Oxygen” research analyzed
reams of internal data and determined that great managers are essential for top performance
and retention. It further identified the eight characteristics of great leaders. The data proved
that rather than superior technical knowledge, periodic one-on-one coaching which included
expressing interest in the employee and frequent personalized feedback ranked as the No. 1 key
to being a successful leader. Managers are rated twice a year by their employees on their
performance on the eight factors.
• The PiLab: It conducts applied experiments within Google to determine the most effective
approaches for managing people and maintaining a productive environment (including the type
of reward that makes employees the happiest). The lab even improved employee health by
reducing the calorie intake of its employees at their eating facilities by relying on scientific data
and experiments (by simply reducing the size of the plates).
• An effective hiring algorithm: One of the few firms to approach recruiting scientifically, Google
developed an algorithm for predicting which candidates had the highest probability of
succeeding after they are hired. Its research also determined that little value was added beyond
four interviews, dramatically shortening time to hire. Google is also unique in its strategic
approach to hiring because its hiring decisions are made by a group to prevent individual hiring
managers from hiring people for their own short- term needs.
• A Predictive retention algorithm: Google developed a mathematical algorithm to predict which
employees proactively and successfully are most likely to become a retention problem. This
approach allows management to act before it’s too late and it further allows retention solutions
to be personalized
• Calculating the value of top performers: Google executives have calculated the performance
differential between an exceptional technologist and an average one (as much as 300 times
higher). Proving the value of top performers convinces executives to provide the resources
necessary to hire, retain, and develop extraordinary talent.
• Improving diversity: Unlike most firms, analytics are used at Google to solve diversity problems.
As a result, the people analytics team conducted analysis to identify the root causes of weak
diversity recruiting, retention, and promotions (especially among women engineers).
Key HR Analytics Metrics HR Analytics Process
 11. DIVERSITY & INCLUSION:

Diversity is about representation of different people in an entity.

Inclusion is about how well the contributions, presence, and perspectives of different groups of
people are valued and integrated into an environment.

Belonging is ensuring that everyone feels safe and can bring their full, unique selves to work.

An environment where many different genders, races, nationalities, and sexual orientations and
identities are present but only the perspectives of certain groups are valued or carry any authority
or influence, may be diverse, but it is not inclusive.

Reasons for Increasing focus on Diversity

 ORGANIZATIONAL BEHAVIOR

MOTIVATIONAL THEORIES

Maslow ‘s Hierarchy of Needs Theory: Maslow (1943) stated that people are motivated to achieve
certain needs. When one need is fulfilled, a person seeks to fulfill the next one, and soon. One must
satisfy lower-level basic needs before progressing on to meet higher level growth needs.
McGregor ‘s Theory X and Theory Y:
Theory X Theory Y
It stresses the importance of strict It highlights the motivating role of job
supervision, external rewards, and penalties satisfaction and encourages workers to
approach tasks without direct supervision.
Theory X style managers believe their Theory Y managers make assumptions that
employees are less intelligent than the people in the work force are internally
managers are, lazier than the managers are, or motivated, enjoy their labour in the company,
work solely for a sustainable income and work to better themselves without a
direct "reward" in return.
Herzberg ‘s Two-factor Theory: The two-factor theory (also known as Herzberg's motivation-hygiene
theory and dual-factor theory) states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction.

Two-factor theory distinguishes between:

• Motivators (e.g., challenging work, recognition for one's achievement, responsibility,

opportunity to do something meaningful, involvement in decision making, sense of importance
to an organization) that give positive satisfaction, arising from intrinsic conditions of the job
itself, such as recognition, achievement, or personal growth
• Hygiene factors (e.g., status, job security, salary, fringe benefits, work conditions, good pay, paid
insurance, vacations) that do not give positive satisfaction or lead to higher motivation, though
dissatisfaction results from their absence.

McClelland ‘s Theory of Needs: McClelland says that, regardless of our gender, culture, or age, we all
have three motivating drivers, and one of these will be our dominant motivating driver.

1. Power:
• Wants to Control and influence others
• Likes to win arguments
• Enjoys competition and winning
• Enjoys status and recognition
 2. Achievement:
• Has a strong need to set and accomplish challenging goals
• Takes calculated risks to accomplish their goals
3. Affiliation:
• Wants to belong to the group
• Wants to be likes and will often go along with whatever the rest of the group wants to do
• Favors collaboration over competition

Self Determination Theory: The theory proposes that people prefer to feel that they have control over
their actions. So, anything that they once did with a free will, become more of an obligation, it affects
their motivation levels.

Goal Setting Theory: The theory states that specific and difficult goals, when coupled with feedback
leads to higher performance

Self-Efficacy Theory: A theory that relies on the premise that an individual’s belief that he is capable of
doing a task, affects his motivation level

Reinforcement Theory: This theory proposes that behavior is a function of its consequences. This means
that this theory does not concern itself with the inner state of the individual and concentrates solely on
what happens when he or she takes the action

Equity Theory: This theory states that an individual compares his job’s input and output with that of
others, whether within or outside the organization, and then responds to eliminate these inequalities.
The position that the significant other holds in the organization or in other organizations play a role in
this regard

Expectancy Theory: This theory states that the individual’s tendency to act in a certain way depends on
strength of the expectation that the act will be followed by a particular outcome and the attractiveness
of that outcome to the person in question

LEADERSHIP THEORIES

The Trait Theory of Leadership: Based on the assumption that leadership capabilities are rooted in
characteristics possessed by individuals. Trait theory has shown significant positive relationships
between effective leadership and personality traits such as intelligence, extroversion, conscientiousness,
self-efficacy, and openness to experience.

The Contingency Theory of Leadership: The Contingency Leadership theory argues that there is no
single way of leading and that every leadership style should be based on certain situations, which
signifies that there are certain people who perform at the maximum level in certain places; but at
minimal performance when taken out of their element.

The Behavioral Theory of Leadership: The behavioral theory offers a new perspective, one that focuses
on the behaviors of the leaders as opposed to their mental, physical, or social characteristics.

Leader-Member Exchange Theory – LMX: It describes how leaders in groups maintain their position
through a series of tacit exchange agreements with their members.

LEADERSHIP STYLES

Laissez-Faire: A laissez-faire leader lacks direct supervision of employees and fails to provide regular
feedback to those under his supervision. leaders allow followers to have complete freedom to make
decisions concerning the completion of their work. It allows followers a self-rule, while at the same time
offering guidance and support when requested. This leadership style hinders the production of
employees needing supervision.

Autocratic: The autocratic leadership style allows managers to make decisions alone without the input
of others. Managers possess total authority and impose their will on employees. This leadership style
benefits employees who require close supervision. Creative employees who thrive in group functions
detest this leadership style.

Participative: Often called the democratic leadership style, participative leadership values the input of
team members and peers, but the responsibility of making the final decision rests with the participative
leader. Participative leadership boosts employee morale because employees make contributions to the
decision-making process.

Transactional: Managers using the transactional leadership style receive certain tasks to perform and
provide rewards or punishments to team members based on performance results. Managers and team
members set predetermined goals together, and employees agree to follow the direction and leadership
of the manager to accomplish those goals.

Transformational: The transformational leadership style depends on high levels of communication from
management to meet goals. Leaders motivate employees and enhance productivity and efficiency
through communication and high visibility.

PERSONALITY TESTS

1. Myer-Briggs Type Indicator (MBTI): A personality assessment instrument basis which an

individual is classified into one of the 16 personality types.

Terms Characteristics

Extroverted (E) Outgoing, Sociable, Assertive

Introverted (I) Quiet, Shy

Sensing (S) Practical, Prefer routine and order, Detail- oriented

Intuitive (N) Rely on intuition, Looks at the big picture

Thinking (T) Rely on reason and logic to handle problems

Feeling (F) Rely on personal values and emotions to handle

problems

Judging (J) Control-oriented, prefer structure and order in their

work environment

Perceiving (P) Flexible and spontaneous

2. OCEAN/Big 5: Human resources professionals often use the Big Five personality dimensions to
help place employees. That is because these dimensions are the underlying traits that make up
an individual’s overall personality.
The Big Five personality traits are:
• Openness
• Conscientiousness
• Extraversion
• Agreeableness
• Neuroticism
or OCEAN:
• Openness - People who like to learn new things and enjoy new experiences usually score
high in openness. Openness includes traits like being insightful and imaginative and having a
wide variety of interests.
• Conscientiousness - People that have a high degree of conscientiousness are reliable and
prompt. Traits include being organized, methodical, and thorough.
• Extraversion - Extraverts get their energy from interacting with others, while introverts get
their energy from within themselves. Extraversion includes the traits of energetic, talkative,
and assertive.
• Agreeableness - These individuals are friendly, cooperative, and compassionate. People with
low agreeableness may be more distant. Traits include being kind, affectionate, and
sympathetic.
• Neuroticism - Neuroticism is also sometimes called Emotional Stability. This dimension
relates to one’s emotional stability and degree of negative emotions. People that score high
on neuroticism often experience emotional instability and negative emotions. Traits include
being moody and tense.
 JOHARI WINDOW

Johari window is a method created to aid individuals in comprehending their relationships with both
themselves and others. It is primarily a heuristic exercise in self-help groups and business contexts.
The Johari Window paradigm has two objectives:

• Reduce the size of the Hidden and Unknown regions while expanding the Open Area without
giving out too much personal information about yourself
• The model can improve self-awareness, relationship management, and other interpersonal
skills, including teamwork and self-confidence

BIASES

Cognitive Bias: Cognitive Bias is an umbrella term that refers to the systematic ways in which the
context and framing of information influence individuals’ judgment and decision-making. There are
many kinds of cognitive biases that influence individuals differently, but their common characteristic is
that they lead to judgment and decision-making that deviates from rational objectivity
Some Examples:

https://www.titlemax.com/discovery-center/lifestyle/50-cognitive-biases-to-be-aware-of-so-you-can-
be-the-very-best-version-of-you/

Similarity bias: Similarity bias causes people to disproportionately favor individuals who are like
themselves. These similarities could be tied to anything—ethnicity, gender, nationality, career history,
educational background, Hobbies and more.
Example: The hiring manager may inadvertently give the green light to a candidate who went to the
same university, has similar interests, or even the same ethnicity as themselves.

Anchoring Bias: Anchoring Bias happens when we make decisions by over-relying on the first piece of
information obtained and using it as the baseline for comparison. The anchoring bias suggests that
Humans favor the first bit of information they learn.

Example: If the first applicant has an unusually high-test score, it might set the bar so high that
applicants with more normal scores seem less qualified than they otherwise would.

Recency bias: Recency bias is the phenomenon of a person most easily remembering something that
has happened recently, compared to remembering something that may have occurred a while back.
Recent events and trends are easier to remember and discern than either events in the distant past or
unknown events that will occur in the future.

Example: During Performance Appraisals, some Managers tend to remember the most recent work the
employee has done and review them based on that single piece of work neglecting past performances.

Confirmation bias: Confirmation bias is the tendency to search for, interpret and recall information in a
way that supports what we already believe. Confirmation bias occurs from the direct influence of desire
on beliefs. When people would like a certain idea or concept to be true, they end up believing it to be
true

Example: If you think the target market should be Fitness, but your data and research say otherwise.
Instead of accepting the data, you may begin to research sources and information to support your
opinion.

Halo effect: The Halo effect is when one trait of a person or thing is used to make an overall Positive
judgment of that person or thing. Halo effect is the tendency for positive impressions of a person in one
trait to positively influence one's overall perspective about the person

Example: A bright and cheery employee who always has a positive attitude and enthusiastically tackles
projects might be identified as an ideal staffer because of her outgoing personality

Horn effect: The Horn effect is when one trait of a person or thing is used to make an overall Negative
judgment of that person or thing. The horn effect, closely related to the halo effect, is a form of
cognitive bias that is exactly opposite of Halo Effect. The effect is experienced when the Observer
believes that all Negative traits are strongly correlated

Example: An employee may perform poorly on a single task, leading the business owner or employer to
expect the worst of that employee going forward, and as a result, refuse them opportunities to prove
themselves

Bandwagon effect: The Bandwagon effect is a psychological phenomenon in which people do something
primarily because other people are doing it, regardless of their own beliefs, which they may ignore or
override. This tendency of people to align their beliefs and behaviors with those of a group is also called
a herd mentality.

Example: A Manager may believe someone is great at their job and people go along with this. As more
people believe in his opinion, others also “hop on the Bandwagon” regardless of the underlying
evidence.

Ostrich effect: The Ostrich effect is the tendency to avoid dangerous or negative information by simply
closing oneself off from this information, or “sticking one’s head in the sand” as an ostrich would. This
Information avoidance can lead to detrimental outcomes in a variety of situations.

Example: Leaders listening to employees’ concerns but not acting on them or when equipment
problems or other issues arise, employees are told “temporary workaround” solutions.
 B. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

A HRIS, which is also known as a human resource information system or human resource management
system (HRMS), is basically an intersection of human resources and information technology through HR
software. This allows HR activities and processes to occur electronically.

To put it another way, a HRIS may be viewed as a way, through software, for businesses big and small to
take care of several activities, including those related to human resources, accounting, management,
and payroll. A HRIS allows a company to plan its HR costs more effectively, as well as to manage them
and control them without needing to allocate too many resources toward them.

In most situations, a HRIS will also lead to increases in efficiency when it comes to making decisions in
HR. The decisions made should also increase in quality—and as a result, the productivity of both
employees and managers should increase and become more effective.
 SOLUTIONS OFFERED BY HRIS SYSTEMS

There are several solutions offered to a company that adopts a HRIS. Some of these include solutions in
training, payroll, HR, compliance, and recruiting. Most of the quality HRIS systems include flexible
designs that feature databases that are integrated with a wide range of features available. Ideally, they
will also include the ability to create reports and analyze information quickly and accurately, to make the
workforce easier to manage. Through the efficiency advantages conferred by HRIS systems, a HR
administrator can obtain many hours of his or her day back instead of spending these hours dealing with
non-strategic, mundane tasks required to run the administrative side of HR.

Similarly, a HRIS allows employees to exchange information with greater ease and without the need for
paper through the provision of a single location for announcements, external web links, and company
policies. This location is designed to be centralized and accessed easily from anywhere within the
company, which also serves to reduce redundancy within the organization. For example, when
employees wish to complete frequently recurring activities such as requests for time off or electronic
pay stubs and changes in W-4 forms—such procedures can be taken care of in an automated fashion
without the need for human supervision or intervention.

HR AND PAYROLL FACTORS

When a company invests in an affordable HRIS, it suddenly becomes capable of handling its workforce
by looking at two of the primary components: that of payroll and that of HR. Beyond these software
solutions, companies also invest in HRIS modules that help them put the full productivity of their
workforce to use, including the varied experiences, talents, and skills of all staff within the enterprise.

HRIS POPULAR MODULES

A range of popular modules are available, including those for recruiting, such as resume and applicant
management, attendance, email alerts, employee self-service, organizational charts, the administration
of benefits, succession planning, rapid report production, and tracking of employee training.
 HRIS SUMMARY

In conclusion, it is important to choose the right HRIS. A company that takes the time to invest in a HRIS
that fits their goals, objectives, mission, and values, is a company that is investing in its future and in its
success. It will be necessary to customize any HRIS to the unique needs of a company so the system will
remain flexible and relevant throughout the life of the company or enterprise.
 C. HR ROLES

WHAT IS THE DIFFERENCE IN THE ROLES OF PLANT HR AND CORPORATE HR?

We can divide activities of HR Functions at plant level & corporate level. The difference between
Corporate HR and HR (Unit HR or Location HR or Zonal HR or Regional HR) arises when there is more
than one office for a particular company, when one company is spread over multiple locations.

At plant level, the skill set required of an HR person would be different from that of a corporate as at the
corporate level mainly coordination work and framing of policy is required but at plant level
implementing of policy, various situation of employees, liaison with government authority in terms of
Labor and administrative laws.

Corporate HR is more into Strategies, Policies, Procedures, and they take decisions, which are in the
interest of people at large and affecting everyone in the organization. They are involved in aligning HR
with Business and more towards overall Organization Development.

HR (Unit HR/ Location HR/ Zonal HR/ Regional HR), other than Corporate HR are more towards
implementation of those policies and maintain HR activities at unit Level. Corporate HR is more towards
"Human Resources Development" and Other HR is more towards "Human Resources Management".

Another difference is Corporate HR is at Macro Level and other HR is at Micro Level.

If there is a company having 25 offices in India. One of those offices will be corporate office. There will
be location HR Manager in each of the 25 locations. There might be Zonal or Regional HR Manager
taking care of 5-7suchlocationOffices. Now, Corporate HR will be taking care of allthe25 locations
whereas Regional HR will take care of his region and location HR will take care of his location.

Corporate HR will not be involved in the nitty-gritty of day-to-day "Human Resource Management".
They will be taking decisions affecting all the employees across all the locations. They will be ensuring
uniformity in Processes and Procedures. They will be working towards aligning HR with Business and
taking care of overall Organizational Development.
 WHAT IS HR CONSULTING?

The human resource consulting industry has emerged from management consulting and addresses
human resource management tasks and decisions. There can be categorized into two types:

The Expert Resource Consultant suggests solution based on expertise and experience and assist in the
implementation. The role is very typical in information benchmarking and design consulting.

The Process/People Consultant assists in searching for solutions with methods that facilitate and raise
creativity of the client company so that they will be able to implement solutions themselves. The role is
traditionally demonstrated by organizational development and change consulting.

The job duties/responsibilities of HR consultants often include:

● Advising management on the administration of human resources policies and procedures

● Serving as internal consultants by analyzing a company’s current HR programs and
recommending solutions
● Developing, revising, and implementing HR policies and procedures
● Ensuring HR programs and services follow established policies and procedures and
state/federal laws and regulations
● Preparing and maintaining reports related to specific HR projects
● Assisting with the development and coordination of recommended changes regarding workflow
● Developing methods for compiling and analyzing data for reports and special projects
● Conducting audits of HR activities to ensure compliance
● Presenting training sessions related to specific HR programs

The following are core fields around which most human resource consultancies are based:

• Employee engagement: measure employee engagement levels through surveys and interviews,
define and improve performance in employee engagement and retention.
• Compensation: design and manage compensation programs related to basic salary, bonuses,
and stock plans. Evaluation of positions and building of salary structures, bonus plans and stock
plans for clients are common.
• Employee benefits: optimize benefit plan design and administration (inclusive of health-related
benefits) by assessing competitiveness and effectiveness of benefit plans (analytics and design),
and cost-effectiveness and quality of vendors.
• Actuarial and retirement: provide actuarial and administration services to manage cost and
effectiveness of retirement programs, including defined benefit and defined contribution plans.
• Mergers and acquisitions: conduct human capital due diligence, coordinate and administer
cross- functional activities during execution, including payroll and HR technology
• Talent mobility: Provides the insight and execution for full international expatriates (usually for
executives) or local plus (partial-package expatriates), from pre-move informative guide to post-
move expat management program
• Other services may also include legal counselling, global initiatives, investments consulting, and
the implementation of human resource technologies to facilitate human capital management.
 D. MAJOR INDIAN LABOR ACTS

RECENT AMENDMENTS IN LABOR LAWS:

In 2019, the Ministry of Labor and Employment introduced Four Bills to consolidate 29 central laws.
These 4 Codes regulated:

• Wages (consolidating 4 laws)

• Industrial Relations (consolidating 3 laws)
• Social Security (consolidating 9 laws)
• Occupational Safety, Health and Working Conditions (consolidating 13 laws)

Out of these 4 bills, The Code of Wages 2019 was passed (and enacted 8th Aug 2019) by the parliament
and the remaining 3 were referred to the Standing Committee on Labor.
In 2020, The Standing Committee submitted its report on all three Bills. The government has replaced
these 2019 Bills and introduced new Labor Code Bills namely: -

• The Industrial Relations Code, 2020

• The Occupational Safety, Health and Working Conditions Code, 2020
• The Code on Social Security, 2020

Finally on 29th Sept 2020, these 3 codes were notified as Acts by the Ministry of Law and Justice vide
Notifications in the Gazette of India. However, the effective date or appointed date for its
implementation are pending.

What’s the rationale behind this?

1. Streamline Definitions of different terms across codes

2. Consolidation & simplification of numerous central and state labor laws
3. Enhance ease of doing business
4. Streamline minimum wages, boost employment growth, and provide security benefits to
contractual workers.
 CODE ON WAGES ACT, 2019

Key Highlights
● Covers employees in both organized & unorganized sectors

● Different national minimum wages for different parts of the

country

● Wages to be revised by the central/state govt every 5 years

● Prohibits discrimination on the basis of gender in the matters

related to recruitment and payment of wages for similar kind
of work

To read in more detail, follow the link:

https://www.mondaq.com/india/employee-benefits-%20compensation/856716/code-on-wages-2019-
key-features-and-highlights#

THE INDUSTRIAL RELATIONS CODE, 2020

Key Highlights

• Concept of Re-skilling fund introduced

• Contains new definitions for terms like
Worker, Strike, Industry etc.
• New rules in regards to recognition of
trade unions at the central and state
levels have been included
To read in more detail, follow the link:https://www.mondaq.com/india/employee-benefits-
compensation/994748/the-industrial-relations-code-2020

Key Highlights:

• Introduced terms like gig worker, career center etc.

• Institution of a National Social Security Board to formulate schemes for Blue Collar Workers
• Creation of National database for unorganized sector workers

The Occupational Safety, Health and Working Conditions Code, 2020

 Key Highlights:

• Employer to organize compulsory

annual health check-up camps

• Mandatory issuing of employment

letter
• Employer to provide facilities like
ventilation, potable drinking water,
proper lighting, crèche for female
workers, clean washrooms etc.

To read in more detail, follow the link:

https://www.mondaq.com/india/employee-benefits-compensation/996768/the-occupational-safety-
health-and-working-conditions-code-2020

THE CODE ON SOCIAL SECURITY, 2020

To read in more detail, follow the link:

https://www.mondaq.com/india/employee-benefits-compensation/998964/the-social-security-code-
2020

POSH

• India’s first legislation specifically addressing the issue of workplace sexual harassment; the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
(“POSH Act”) was enacted by the Ministry of Women and Child Development, India in 2013
• The POSH Act protects only women and is not gender neutral. Therefore, the safeguards under
the POSH Act are not applicable to ‘men/transgender victims. However, companies have their
own sexual harassment prevention policies which might include other genders.
• The act stipulates that a woman shall not be subjected to sexual harassment at her workplace,
which includes any place visited by the employee arising out of or during employment, including
transportation provided by the employer for the purpose of commuting to and from the place of
employment.

• The POSH Act requires an employer to set up an ‘internal complaints committee’ (“ICC”) at
each office or branch. Not less than half of the IC Members shall be women
• This is the only labour law that extends beyond factories and establishments to include domestic
workers (maids) also
• The key distinguishing feature is that the conduct is unwanted and unwelcome by the recipient
• What amounts to sexual harassment?
1. implied or explicit promise of preferential treatment in employment
 2. implied or explicit threat of detrimental treatment in employment
3. implied or explicit threat about present or future employment status
4. interference with work or creating an intimidating or offensive or hostile work
environment
5. humiliating treatment likely to affect the lady employee’s health or safety

INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

There are ‘service conditions’ or ‘service rules’ for various employees like Government employees, bank
employees, LIC employees etc. The Industrial Employment (Standing Orders) Act, 1947 is designed to
provide service rules to workmen.

The object of the Act is to require employers in industrial establishments to formally define conditions of
employment under them.

‘Standing Orders’ means rules of conduct for workmen employed in industrial establishments.
‘Standing orders’ means rules relating to matters set out in the schedule to the Act. [section 2(g)]. The
schedule to the Act requires that following should be specified in Standing Orders –

• classification of workmen i.e., temporary, badli, casual, permanent, skilled etc.

• manner of intimating to workmen working hours, shift working, transfers etc.
• Holidays
• Attendance and late coming rules
• Leave rules
• Leave eligibility and leave conditions
• Closing and reopening of sections of industrial establishment
• termination of employment, suspension, dismissal etc. for misconduct and acts or omissions
which constitute misconduct
• Retirement age
• Means of redressal of workmen against unfair treatment or wrongful exactions by employer
• Any other matter that may be prescribed.
Coverage of Act - The Act is applicable to all ‘industrial establishments’ employing 100 or more
workmen. [section 1(3)].

The term ‘industrial establishment’ includes factory, transport service, construction work, mines,
plantation, workshop, building activity, transmission of power etc. Every employer covered under the
Act must prepare ‘Standing Orders’, covering the matters required in the ‘Standing Orders’.

The Act has prescribed Model Standing Orders. These are automatically applicable till employer
prepares his own ‘Standing Orders’ and these are approved by ‘Certifying Officer’. [section 12A].

The ‘Model Standing Orders’ contain such acts like insubordination, disobedience, fraud, dishonesty,
damage to employer’s property, taking bribe, habitual absence or habitual late attendance, riotous
behavior, habitual neglect of work, strike in contravention of rules etc. as misconducts. The ‘Certified
Standing Orders’ may cover other acts as ‘misconduct’, if approved by ‘Certifying Officer’.

Certifying Officer is a labor commissioner or regional labor commissioner and includes other officers
appointed by government to perform the functions of a certifying officer. [section 2(c)]

Disciplinary Action - A workman can be punished only if the act committed by him is a ‘misconduct’ as
defined under the ‘Standing Orders’.

Subsistence Allowance – Where a workman is suspended by employer pending investigation or enquiry

into complaints or charges of misconduct against him, the workman shall be paid subsistence allowance
equal to 50% of wages for first 90 days of suspension and 75% of wages for remaining period till
completion of disciplinary proceedings. [section 10A (1)].

THE TRADE UNION ACT, 1926

This law relates to the registration and protection of the Trade Unions is contained in the Trade Unions
Act, 1926 which came into force with effect from 1st June 1927. The Act extends to the whole of India
except the State of Jammu and Kashmir.

In common parlance, Trade Union means an association of workers in one or more occupations. Its
object is the protection and promotion of the interests of the working class. Trade Unions have a home-
grown philosophy based on workers' experience and psychology. It grows out of the workers' day-to-day
experience.
Objective: The objective of trade union is that any organization having minimum number of workers or
employees in accordance with the trade union act 1926, have right to form trade union in their
organization and have right to elect members of trade union. Trade union is having Right to protect
workers against exploitation by employer, to represent the grievance of employees on behalf of them to
the management, to protect rights of the workers provided by the employment or labor laws, to take
participation in management for decision-making in connection to workers and to take disciplinary
action against the worker who commits in-disciplinary action.

Trade Dispute [Sec. 2(g)]: A trade dispute means any dispute between the employers and workmen, the
workmen and workmen and the employers and employers which relates to the employment or non-
employment, or the terms of employment, or the conditions of labor of any person. 'Workmen' mean all
persons employed in trade or industry whether in the employment of the employer with whom the
trade dispute arises.

Trade Union [Sec. 2(h)]: Trade Union means any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between workmen and employers or
between workmen and workmen or between employers and employers for imposing restrictive
conditions on the conduct of any trade or business and includes any federation of two or more Trade
Unions.

Registered Trade Union [Sec. 2(e)]: A registered Trade Union means a 'Trade Union' registered under
the Act.

This act covers the procedure of registration of trade union, minimum requirement of registration of
trade union, minimum requirement about membership of trade union, features of registered trade
union, rights, and liabilities of registered trade union.

Recognition of Trade Union: Recognition of a trade union is very different from Registration of the
union under the Trade Union Act, 1926. Recognition means management conferring right to the Union

1) to represent its members as the bargaining agent during the various discussions and deliberations made
while negotiating terms of employment/conditions of labor.

2) to enter into agreements [settlements] with the management on behalf of its union-members; and
3) to air its opinion when general opinion of workmen is sought while formulating managerial policies and
decisions.

Registered trade union may not necessarily be a recognized trade union.

CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970

The objective of the act is

• To regulate the employment of contract labor in certain establishments and to provide for its
abolition in certain circumstances.
• to prevent exploitation of contract labor and introduce better conditions of work.

The act provides for abolition in certain circumstances and regulating the working conditions of contract
laborers.

APPLICABILITY:

• Every establishment in which 20 or more workmen are employed or were employed on any day
of the preceding twelve months as contract labor.
• Every contractor who employs or who employed20 or more workmen on any day of the
preceding twelve months.

A workman is deemed to be employed as Contract Labor when he is hired in connection with the work
of an establishment by or through a Contractor. Contract workmen are indirect employees. Contract
Labor differs from Direct Labor in terms of employment relationship with the establishment and method
of wage payment. Contract Labor by and large is not borne on pay roll nor is paid directly. The Contract
Workmen are hired, supervised, and remunerated by the Contractor, who in turn, is remunerated by the
Establishment hiring the services of the Contractor.

The appropriate government regulates the working conditions of contract employees through following
provisions:

• Obligation on the principal employer to provide canteens, rest rooms, drinking water and other
facilities, first-aid facilities, crèches as per the terms and conditions mentioned in the act
 • Obligation on the principal employer with regards to payment of minimum wages
• Prohibition regarding working hours of female workers
• Maintain registers and records as prescribed in the act
• Penalty if any provision under this act is contravened or any condition of license granted is
contravened as per the provisions of this act.

INDUSTRIAL DISPUTES ACT,1947

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by negotiations.
This act deals with the retrenchment process of the employees, procedure for layoff, procedure, and
rules for strikes and lockouts of the company.

INTRODUCTION

Industrial Disputes have adverse effects on industrial production, efficiency, costs, quality, human
satisfaction, discipline, technological and economic progress and finally on the welfare of the society. A
discontent labor force, nursing in its heart mute grievances and resentments, cannot be efficient and
will not possess a high degree of industrial morale. Hence, the Industrial Dispute Act of 1947, was
passed as a preventive and curative measure.

SCOPE AND OBJECT

The Industrial Dispute Act of 1947 came into force on the first day of April, 1947. Its aim is to protect the
workmen against victimization by the employers and to ensure social justice to both employers and
employees. The unique object of the Act is to promote collective bargaining and to maintain a peaceful
atmosphere in industries by avoiding illegal strikes and lock outs. The Act also provides for regulation of
lay off and retrenchment. The objective of the Industrial Disputes Act is to secure industrial peace and
harmony by providing machinery and procedure for the investigation and settlement of industrial
disputes by negotiations.
 APPLICABILITY

The Industrial Disputes Act extends to whole of India and applies to every industrial establishment
carrying on any business, trade, manufacture or distribution of goods and services irrespective of the
number of workmen employed therein.

Every person employed in an establishment for hire or reward including contract labor, apprentices and
part-time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory
work, is covered by the Act.

Industrial Disputes: Industrial Dispute means any dispute or differences between employers and
employers or between employers and workmen or between workmen and workmen, which relates to
the employment or non-employment or the terms of employment or with the conditions of labor of any
person.

Raising an Industrial Dispute: Any person who is a workman employed in an industry can raise an
industrial dispute. A workman includes any person (including an apprentice) employed in an industry to
do manual, unskilled, skilled, technical, operational, clerical, or supervisory work for hire or reward. It
excludes those employed in the Army, Navy, Air Force and in the police service, in managerial or
administrative capacity. Industry means any business, trade, undertaking, manufacture or calling of
employers and includes any calling, service, employment, handicraft, or industrial occupation or
avocation of workmen.

CATEGORIES OF INDUSTRIAL DISPUTE (ADDITIONAL INFORMATION)

The Second Schedule of the I.D. Act deals with matters within the jurisdiction of Labor Courts, which fall
under the category of Rights Disputes. Such disputes are as follows:

1. The propriety or legality of an order passed by an employer under the standing orders.
2. The application and interpretation of standing orders, which regulate conditions of
employment.
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen
wrongfully dismissed.
4. Withdrawal of any customary concession or privilege.
5. Illegality or otherwise of a strike or lock-out; and
 6. All matters other than those specified in the Third Schedule.

The Third Schedule of the I.D. Act deals with matters within the jurisdiction of Industrial Tribunals which
could be classified as Interest Disputes. These are as follows: -

1. Wages, including the period and mode of payment

2. Compensatory and other allowances.
3. Hours of work and rest intervals.
4. Leave with wages and holidays.
5. Bonus, profit sharing, provident fund, and gratuity.
6. Shift working otherwise than in accordance with standing orders.
7. Classification by grades.
8. Rules of discipline.
9. Rationalization.
10. Retrenchment of workmen and closure of establishment.
11. Any other matter that may be prescribed.
 E. OTHERS

THE GREAT RESIGNATION:

The Great Resignation, sometimes called the Big Quit and the Great Reshuffle, is a continuing economic
trend that began in early 2021 and saw employees quitting their positions voluntarily. Workers resign
significantly due to low pay, lack of opportunities, work time flexibility, and toxic work culture. Culture
and employee wellbeing are make-or-break factors in employee retention

Effect of the great resignation on the job market:

• The shift of power from employer to employee

• High wage inflation
• Increased focus on streamlining and smoothening the recruitment process
• Inclusion of employer branding and recruitment marketing to attract and convert candidates
• Employers are exploring alternate recruiting channels to meet the demand-supply gap

EMPLOYEE TURNOVER & ATTRITION:

Employee turnover and attrition both occur when an employee leaves the company.

• Turnover, however, is from several different actions such as discharge, termination, resignation
or abandonment.
• Attrition occurs when an employee retires or when the employer eliminates the position.

The big difference between the two is that when turnover occurs, the company seeks someone to
replace the employee. But in the case of attrition, the employer leaves that vacancy unfilled or
eliminates that job role.

Example: Alex and Binny are both nearing the end of their respective jobs with A&B Services, but under
very different circumstances. After 20 years with the company, Alex is retiring, and no one is coming in
to replace him. Binny, on the other hand, has been terminated from her role in the company's
warehouse department and someone will be needed to replace her. Both employees are saying
goodbye to their colleagues at A&B, but the company's human resources department will categorize
their departures quite differently. Why? While Alex is part of the company's attrition, Binny is
considered part of the company's employee turnover.

Good Attrition: The term “healthy attrition” or “good attrition” means the importance of less
productive employees voluntarily leaving the organization. This means if the ones who have left fall in
the category of low performers, the attrition in considered being healthy.

Bad Attrition: When the departure of certain productive employees creates a setback (most often
temporary) in terms of work continuity and progress is commonly considered bad. The time and
investment lost in hiring and developing these people along with the cost of finding a replacement and
bringing him up to the productivity level, all come at a high price.

STAGES OF TEAM FORMATION

There are five stages through which the team must progress to become highly effective. They are:

1. Forming: At this stage, the individual team members have not yet become a team. They are still
finding out about each other and need to feel included they seek to know one another’s
attitudes and backgrounds, and to establish the ground rules.
2. Storming: This is the stage during the formation of the team where most conflict is
encountered. It can be a very difficult time within the team, where team members will engage in
conflict and test the limits.
3. Norming: This is the stage where group norms are established such as the norms of behavior
and role allocation. The individuals within the group develop ways of working to forge closer
relationships and harmony where mutual trust and respect exists.
4. Performing: This stage is concerned with getting on with the task in hand and achieving the
overall objectives. The team will probably engage in group thinking and exclude non-team
contributors.
5. Adjourning: In this final stage, the team may disband because they have either completed the
task
 KRA VS KPI

KEY RESULT AREAS (KRAS)

Key result areas are the things a person must accomplish to achieve basic business goals. Typically, key
result areas are the three to five major responsibilities that form the core of a person's job specification
and comprise the person's main value to the company.

A key result area should be specific, essential, measurable and under the person's control. Business
theory suggests that a person should spend 80 percent of work time developing key result areas to be
an effective leader. An analysis of these areas can help employees develop a personal strategic plan for
career development and serve as the basis for employee performance evaluation.

Identifying KRAs helps individuals:

• Clarify their roles

• Align their roles to the organization’s business or strategic plan
• Focus on results rather than activities
• Communicate their role’s purposes to others
• Set goals and objectives
• Prioritize their activities, and therefore improve their time/work management
• Make value-added decisions

KEY PERFORMANCE INDICATORS (KPIS):

A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs
evaluate the success of an organization or of a particular activity in which it engages. Often success is
simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10
customer satisfaction, etc.), and sometimes success is defined in terms of making progress toward
strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is
important to the organization. 'What is important' often depends on the department measuring the
performance - e.g. the KPIs useful to finance will really differ from the KPIs assigned to sales.

CATEGORIZATION OF INDICATORS:

Key performance indicators define a set of values against which to measure. These raw sets of values,
which are fed to systems in charge of summarizing the information, are called indicators. Indicators
identifiable and marked as possible candidates for KPIs can be summarized into the following sub-
categories:

• Quantitative indicators that can be presented with a number

• Qualitative indicators that can't be presented as a number
• Leading indicators that can predict the outcome of a process
• Lagging indicators that present the success or failure post hoc
• Input indicators that measure the amount of resources consumed during the generation of the
outcome
• Process indicators that represent the efficiency or the productivity of the process
• Output indicators that reflect the outcome or results of the process activities
• Practical indicators that interface with existing company processes
• Directional indicators specifying whether or not an organization is getting better
• Actionable indicators are sufficiently in an organization's control to effect change

Key performance indicators, in practical terms and for strategic development, are objectives to be
targeted that will add the most value to the business. These are also referred to as key success
indicators.
 DIFFERENCE BETWEEN KRA AND KPI

Gig Economy:

In a gig economy, temporary, flexible, or freelance jobs are commonplace, and companies tend to hire
independent contractors and freelances instead of full-time employees. A gig economy undermines the
traditional economy of full-time workers who often focus on their career development.

Pros:

• Leads to increased adaptability, freedom, and flexibility

• Provides convenience of selecting temporary jobs or projects from around the world
• Availability of high-demand and specialized skillset allowing employers to select the best talent
from a larger pool
• Cost-effective as companies save resources in terms of benefits, office space and training
• Acts as a solution to headcount limits

Cons:

• Leads to lack of well-defined employer-employee or client-employee relationships

• Lack of continuity and stability results in income as well as social insecurity
• Results in a disruptive work-life balance
• Due to lack of organized management systems for gig workers in most companies, gig workers
are not eligible for the benefits that the company provides to its full-time employees.
 EMPLOYEE LIFE CYCLE

The employee lifecycle model (ELC) is a tool for visualizing how employees interact with the
organizations in which they work. ELM is described as the tools, processes, and management structures
that support an employee's entire experience at a company, from start to finish. The employee lifecycle
is divided into six distinct stages:

1. Attract: This phase kicks off the employee lifecycle by piquing the interest of potential employees in
the job vacancy. Employers can reach out to potential employees through a variety of avenues, including
social media, online job sites, and direct recruitment, to name a few.

a. Employee Value Proposition (EVP): This describes how the company positions its numerous people-
related activities, processes, and experiences in the eyes of future and current employees. It is a set of
relationships and benefits supplied by a company in exchange for the talents, abilities, and experiences
that an employee offers to the company. It's critical to have a clearly defined EVP. An employer value
proposition encapsulates a company's mission, beliefs, and culture, and provides employees with a
compelling reason to work for them.

b. Employer Branding: Employer branding refers to a company's capacity to distinguish itself and
promote its identity to a specific group of prospects. This can be accomplished by highlighting your
company's distinctive cultural differentiators and then striving to magnify them to promote yourself as a
top place to work.

c. Workplace Diversity & Inclusion: Workplace diversity refers to an organization's hiring of a varied
workforce that reflects the society in which it exists and functions. Diversity in the workplace refers to
an organization's hiring of a varied workforce that reflects the society in which it operates. Inclusion is
the creation of a work environment in which all employees are treated fairly and respectfully, have
equal access to opportunities and resources, and can fully contribute to the success of the company. As
a result, diversity refers to the characteristics and traits that distinguish people, whereas inclusion refers
to the behaviors and social standards that make people feel welcome.

2. Hire: Hiring refers to a company's recruitment and selection operations. It is the process of analyzing
applications, identifying the best applicants to interview, testing candidates, making a hiring selection
between candidates, and executing different pre-employment exams and checks. Recruitment and
selection are both part of the hiring process. Recruitment and selection is a crucial HRM function that
aims to optimize personnel strength in order to achieve the company's strategic goals and objectives.

3. Onboarding: This refers to what happens after a job offer is accepted, such as how new employees are
brought up to speed on the company's policies and procedures while learning the ropes of their jobs. This
includes adding employees to contact lists and directing them through the organization's structure,
systems, policies, and procedures, as well as the payroll and benefits system. Many businesses have a
handbook and training plan in place to help with knowledge transfer regarding the job, culture, team, and
environment. The elements of an effective onboarding program are as follows.

4. Develop: At this level, the employee and the company's human resources department hash out the
employee's long-term career goals. Managers work with employees to determine a professional path and
design a plan to assist them reach their goals once they have progressed past the new hire phase and
have established themselves as a talented team member.

Learning and Development: It is a systematic process that aims to improve an employee's skills,
knowledge, and competencies so that they can perform better at work. Learning is concerned with the
acquisition of knowledge, skills, and attitudes. Development is the process of increasing and deepening
one's knowledge to achieve one's development objectives.

Performance management: It is the process of assessing, managing, and improving an individual's

contribution to the business. When it comes to performance management, there are two techniques
that an organization can take:

1) A behavioral approach in which employees are judged on their actions and efforts.

2) A result-oriented strategy in which personnel are assessed using objective criteria and the focus is on
output, both in terms of quality and quantity, rather than input.

5. Engage: This refers to employee engagement, which is a measure of an employee's efforts that is
measured by the company on an annual basis. It can be done using either internal or external
technologies, such as pre-made questionnaires.

6. Off-board: This is the final stage of the lifecycle, when employees voluntarily or involuntarily depart the
organization. When an employee departs a company, the separation process is referred to as employee
offboarding. A progressive transfer of knowledge from the departing employee to a new or existing
employee, an exit interview, the return of any corporate property, and different processes from the firm's
human resources, information technology, or legal departments may all be part of the offboarding
process.

Exit Interview: When an employee quits a company, an exit interview is a survey that is completed with
him or her. Each survey's results are used to provide input on why employees are departing, what they
enjoyed about their jobs, and what parts of the business need to be improved.

TECHNIQUES OF JOB DESIGN

• Job rotation: It is a job design method that can improve motivation, develop workers'
perspectives, increase productivity, improve the organization's performance on various levels by
multi-skilled workers, and provide new opportunities for workers to improve their attitude,
thought, capabilities, and skills. Employees laterally mobilize and serve their jobs in different
organizational levels through job rotation: when an individual experiences different postings and
responsibilities in an organization, his capacity to appraise his skills in the company improves.
• Job enlargement: It is described as the process of allocating more responsibilities to an
employee's job. It is the process of boosting an employee's activity by adding new tasks to his or
her employment. Extra responsibilities allocated to the job normally do not necessitate the
acquisition of new or additional talents; they can usually be carried out with the same skills as
before. Job enlargement refers to the job's horizontal expansion, in which the job's duties and
tasks increase while the job itself remains the same.
• Job enrichment: It is the process of allowing a person to take on more duties and do them at a
better level. It gives the employee the chance to achieve, be recognized, and take responsibility.
Job enrichment allows employees to plan, control, and assess their own performance without
the intervention of upper management or the organization's higher authorities. Job enrichment
is a motivating method that emphasizes the necessity of providing employees with challenging
and exciting work.

Job enrichment vs. Job enlargement: The distinction between job enrichment and job enlargement lies
in the quality and amount of the work. Job enrichment entails adding more responsibilities and
increasing the workload, whereas job enlargement entails adding more responsibilities and increasing
the workload. Job enrichment refers to having more duties and responsibilities in a present job
description, whereas job enlargement refers to an individual finding happiness in their employment and
personal growth possibilities.

Job enrichment vs. Job rotation: Job enrichment and job rotation are two approaches to provide
employees with opportunities to try new tasks and gain new skills. Employees rotate from their usual
day-to-day tasks to a completely different duty for a set period. Job enrichment allows individuals to
stay in their existing positions while gaining a higher sense of responsibility through increased
responsibilities.

Example of Job enrichment: Allowing employees to approve checks for vendors in amounts greater than
they have in the past is an example of job enrichment. You can increase the amount to $2,000 by asking
your company's accounts payable specialist to allow you see and sign off on all outgoing checks over
$1,000. This will give the accounts payable specialist more authority.

Example of Job enlargement: If Mr. A works as an executive for a company and is already completing
three activities on his job, following job expansion or through job enlargement, we add four more
activities to the existing job, resulting in Mr. A performing seven activities on the job. It's worth noting
that the newly added activities should all be on the same organizational hierarchy level.

Example of Job rotation: Copywriters craft the words that assist customers understand the features and
benefits of your products, but they rarely interact with the people they're attempting to reach. Sales
reps, on the other hand, deal directly with customers and are familiar with their purchasing habits. You
may give your copywriter a chance to hear first-hand the language clients use when talking about your
products or services, objections they have, and their primary requirements and wants by rotating your
copywriter into a sales position. This knowledge can help copywriters better understand what to say in
the marketing materials they create.
 RECRUITMENT & SELECTION

PROCESS OF SELECTION

There are several steps in the choosing process. At each stage, new information may emerge, potentially
leading to the applicant's rejection. The following are the steps involved in the selection process:

1. Initial screening: This is done to clear out completely undesirable/unqualified applicants right away. It's
essentially a sifting procedure in which potential candidates are provided important information about
the position and the company.

2. Application forms: A traditional and extensively used device for collecting information from candidates
is the application form. The application form should include all important information for the selection
process.
3. Psychological tests: They are increasingly being employed in personnel selection. A sample of an
individual's attitude, behavior, and performance taken as part of a test. It also provides a methodical
foundation for comparing two people's behavior, performance, and attitudes.

4. Job interview: A job interview is a two-way interaction between two people. It entails a personal,
observational, and face-to-face assessment of job candidates in the selection process.

5. Medical examination: Applicants who have passed all the previous steps are sent for a physical
examination by either the company's physician or a medical officer who has been approved for the job.

6. Reference checks: The applicant is required to list the names and addresses of two or three people who
are well acquainted with him on his application form.

7. Approval of the final product: The shortlisted candidates are finally approved by the executives of the
concerned department. Employment is offered in the form of an appointment letter that specifies the
position, rank, grade, and start date for the candidate, as well as other terms and conditions.

HOFSTEDE’S FRAMEWORK FOR ASSESSING CULTURE

This framework is used to look at different civilizations. Hofstede identified the following traits in a
cross-cultural survey conducted for IBM:

• POWER DISTANCE: The degree to which citizens in a country accept and are satisfied with the
fact that power is divided unequally.

• INDIVIDUALISM VS COLLECTIVISM: Individualistic cultures believe that a person's life belongs to

him and that he has the unalienable right to live it as he sees fit, to act on his own judgment, to
keep and utilize the product of his labour, and to follow the values of his choice. Individualistic
culture can be found in the United States and most other European countries.
Collectivistic cultures, on the other hand, believe that an individual's life belongs to the group or
society of which he is only a member, that he has no rights, and that he must sacrifice his ideals
 and ambitions for the "better good" of the collective. Indian culture is largely considered to be a
collectivist civilization.

• MASCULINITY VS FEMINITY: Masculinity refers to how much the culture values traditional
masculine roles like achievement, power, and control above men and women being treated
equally. They prefer to promote and maintain conventional roles of male breadwinners and
female housewives.
A high femininity grade indicates that the society does not distinguish between male and female
roles and treats women equally in all areas. We're talking about cultures where work duties are
divided more evenly between men and women.

• UNCERTAINTY AVOIDANCE: It relates to how comfortable a culture's inhabitants are with

uncertainty. People who live in high-uncertainty-avoidance cultures revere systems and fear the
unknown. People who have a low level of uncertainty avoidance are at ease with the lack of
structure and have made peace with the unknown.
Japan is a country with a high level of uncertainty avoidance, whereas Denmark has a lower
level of uncertainty avoidance. India exhibits a modest level of risk aversion.

• LONG TERM VS SHORT TERM ORIENTATION: People in long-term-oriented cultures emphasize

thrift, perseverance, and tradition, and they look to the future. People in a short-term oriented
society cherish the Here and Now more, embrace change more readily, and do not regard
commitments as barriers to change.
 THE DAVID-ULRICH HR MODEL

When it was originally established, David Ulrich's Human Resources model was ground-breaking since it
focused on people and jobs first and foremost. Human Resources departments are significant in
businesses because of how they focus on the people that work there, including employees, managers,
board members, and others. David Ulrich's HR Model, appropriately, constructs a Human Resources
department around roles rather than functions. David Ulrich's HR model, in particular, identified the
four roles stated below:

• HRBP: The HR business partner is responsible for communicating with so-called "internal
clients" or "internal customers." (These are basically fancy phrases for persons who are directly
connected to a company, such as employees, shareholders, stakeholders, creditors, and others.)
Most internal members of an organization will communicate with a Human Resources
department through the HR business partner, who is the HR point-of-contact for these
personnel. The HR business partner, among other things, provides feedback on the quality of
internal customers' experiences, identifies top talent within the organization, assists in filling job
vacancies, shares HR goals with employees to ensure that they are implemented across the
organization, and helps promote overall productivity and harmony in the workplace.
• Change Agent: When an organization's goals or objectives must be expanded, evolved, or
otherwise changed, the change agent is the Human Resources role that communicates such
organizational changes internally. This individual or branch coordinates training opportunities
for employees to learn the new skills required to meet changing corporate goals or job duties, as
well as modifies job descriptions to reflect such changes. In essence, the change agent assists
the business in adapting to its next stage of growth or evolution.
• Administration Expert: This HR administration profession is in charge of a variety of various
activities. On one end of the range, the administration specialist monitors changes in legislation,
regulation, occupational health and safety requirements, and other types of labour or trade law
and assists the organization in adapting so that it remains compliant. The administration
specialist, on the other hand, is in charge of organizing personal employee information and
ensuring that it is up to date. This person monitors, updates, and secures that information using
 an HRIS (Human Resources Information System). In Ulrich's HR Model, the administration expert
is the closest thing to a true "document management" professional.
• Employee Advocate/Employee Champion: It is the responsibility of any Human Resources
department to be aware of and protect employee interests at all times. The employee advocate
(also known as the "employee champion") is in charge of evaluating employee morale and
satisfaction and using that data to promote a pleasant work environment. This person uses
surveys to gauge employee satisfaction, identify flaws in the corporate culture, and ensure that
management treat all employees fairly. In addition, the employee advocate leads programs to
improve employee morale and experience, assists the change agent with training and
professional development opportunities, and ensures that existing employees have opportunity
to apply for new roles or promotions within the firm.

SITUATIONAL QUESTIONS

Please note that the questions listed below are in no way exhaustive. Students are requested to explore
the answers and other similar questions independently.

• If you are an HR of a company, and an accident took place in the company leading to the death
of the individual and the news had knocked the doors of the media in the market. What would
be the immediate action you would take to such an incident?
• If an employee is working hard but not able to attain a goal, what is the first thing you would do
as an HR?
• If there was a conflict between two members, how would you resolve it?
• Assuming yourself at the fourth grid of Johari window, what are the necessary steps to be taken
by you to improve yourself as a HR?
• If you are given a chance to measure the employee engagement levels, how would you do it?
• Describe a significant Human Resources challenge that you were confronted with recently? how
do you think that can be solved
• Do you have an example of a time you had to deal with an unethical situation in a previous role?
• What do you foresee happening in the next five years that will change and shape HR?
• State a difficult experience you had with an employer/manager/co-worker and how you handled
it?
• You are an HR. Your star performing employee has an offer with 100 percent hike. He asks you
to match the offer. If you don’t, he will leave and he is very important for the project. If you
match there will be resentment among other employees who are working at the same level and
they may ask for a raise as well and could lead to discord in the team. How will you handle the
situation?
• Due to a wild animal entering the premises of the plant, the work at the plant is halted. How as
an HR would you tackle such a situation?
• An employee submits a sexual harassment complaint. What steps would you take to look into it?
• Describe your ideal onboarding process. In what ways would this process provide the best hiring
experience? How does the onboarding process support the company’s business goals?
 F. INDUSTRY EXAMPLES AND ADDITIONAL READING MATERIAL

BEST PRACTICES IN HR

PMS:

KPMG –

1. Moved away from bell curve to an adaptive bell curve approach

2. Done away with the forced ranking system
3. The adaptive bell curve doesn’t have fixed proportions into which employees are forcefully ranked.
Takes its own shape based on the achievement of target

McKinsey Knowledge Centre (McKC) –

1. Three broad steps in their PMS – Goal Setting, Mid-year review and Final review
2. Development Group Leaders (DGLs) are experienced employees in senior positions who help
employees deal with any issues related to work.
3. The view of DGLs are also taken during the final review with the evaluation committee.

Deloitte –

1. Earlier relied on an evaluation process that consumed 2 million work hours has done away with its
previous PMS
2. The new PMS is future oriented with focus on recognizing good performance
3. Weekly check-ins wherein managers interact with their employees and provide feedback on a
continuous basis instead of doing it once or twice a year

General Electric-

1. First one to popularize bell curve

2. Moved away from “command and control” system to “connection and inspiration” system.
3. App named PD@GE (Performance Development at GE):
i. Employee has a series of near-term goals, or “priorities”
ii. Managers have frequent discussions, called “touchpoints,” on progress toward the set goals and
note what was discussed, committed to, and resolved
iii. Provides summaries on command, through typed notes, photographs of a notepad, or even voice
recordings
iv. The focus on constant improvement and not on grading how well people are doing

Cigna

1. Health insurer has sought to make its performance reviews more frequent, simpler, and less time
intensive.
2.Check-ins with employees any time during the year, according to the Best Practice Institute.
Conversations about professional growth and career goals personalized for each employee
3. PMS now streamlines ratings
i. Managers rate employees as either on track or off track
Regular feedback is expected to come from the whole team as well, not just supervisors

FURTHER READINGS ON PMS INDUSTRY PRACTICES:

1. https://scroll.in/article/749652/why-ge-had-to-kill-its-annual- performance-reviews-after-
more-than-three-decades
2. http://performph.com/companies-amazing-performance-management-models/

RECRUITMENT AND SELECTION:

JSW –

1. Thomas Personal Profile Assessment - a behavioural psychometric assessment for a total duration
of 8 minutes

2. DISC (Dominance, Influence, Steadiness, Compliance) assessment is used to measure a candidate’s

tendencies, preferences and pattern of behaviour.
 Virtual reality simulations-

1. Superior way to reveal the excitement of a job and a company compared to traditional videos
2. The British Army and General Mills are using VR headsets to show a much higher level of
excitement, realism and detail to build their employer brand and to excite prospects.
3. Sends a message to recruiting prospects that the firm is on the leading edge of technology.

Unilever-

1. Adopted an AI-driven college hire candidate sorting and assessment approach

2. The process begins by using a LinkedIn profile instead of a resume, and then it uses AI to select the
best prospects
3. Then, a series of online games to further narrow down the field
4. After this, HireVue recorded video interviews to further assess the best candidates using criteria
that includes the assessment of facial expressions
5. Final candidates offered an in-person interview

Mya Systems-

1. Offers “Mya,” a conversational AI equipped with both natural language understanding and
generation
2. Automate sourcing, screening, and scheduling for recruiters
3. She initiates conversation with candidates right after they apply and assesses them for baseline
requirements with real dialogue.
4. She generates shortlists of qualified candidates based on the rich profiles she creates for each
applicant
5. Handles the interview scheduling back-and-forth
6. An always-available contact for prospective employees (great for the candidate experience), and is
all about taking the rote, time-suck tasks off talent acquisition pros’ plates
 Ideal -

1. Recruitment automation software that recruiters love”, “a virtual assistant for your recruiters!”
2. Resume screening, which Ideal’s intelligent software handles automatically and accurately, even at
high volumes.
3. Candidate sourcing where it finds great prospects in external candidate pools on behalf of recruiters
4. Candidate rediscovery where it employs AI to find top talent within your existing talent pool

FURTHER READINGS:
1. https://business.linkedin.com/talent-solutions/blog/recruiting-
strategy/2017/12-innovative-recruiting-strategies-that-savvy-companies-
are-usi
2. https://www.ere.net/the-top-25-benchmark-firms-in-recruiting-
and-talent-management/

3. https://blog.ascendify.com/8-hr-tech-companies-using-ai-to-enable-the-
future-of-work

LEARNING AND DEVELOPMENT:

Google -

1. 80% of all tracked trainings run through an employee-to-employee network called “g2g” (Googler-
to-Googler)
2. The “g2g” learning program-
i. Offers first-hand knowledge in different fields, from employees to employees
ii. Successful because it promotes a culture that values learning
3. Acknowledges the employees’ right to learn, gives them an opportunity to grow with an on-the-
job-training, then giving back to other employees by participating in the program
4. With the g2g program, the company trusts its employees “to be smart, capable, motivated and
having capacity to grow the organization’s learning culture.”
5. Program is of a “voluntary nature,” but valued by employees
 Mckinsey Knowledge Centre -

1. Social learning platform combines the application of concepts with practical, real-
world experiences
2. Group-based Projects- Small groups of company participants collaborate on
course-specific projects based on real-world tasks
3. Social Learning- Collaboration with peers across industries and geographies, and in
community discussion forums
4. Development Group Leaders (DGL)- Mentors to the employees responsible for their
career growth as well as a guide to any kind of problem employees face apart from
their project work
5. Practitioner's Perspective- Courses taught by McKinsey partners and
external business leaders who provide practical "how to" guidance”

EY –

1. Aspire program:

i. Targets high potential senior executives as they prepare to become

managers.
ii. Has two-year development framework that provides learning experiences and coaching
on a variety of topics including sustainability.
iii. Focus on building financial services skills and accelerating talent early in careers.

2. EY Vantage program:

i. Supports high-impact entrepreneurs in emerging markets

ii. A catalyst for economic growth
iii. A great development opportunity for our top-performing managers and senior managers,
who work with entrepreneurs for up to seven weeks on a pro-bono basis.

3. EMEIA FSO Advisory Consultant Network:

i. EY’s clients expect them to bring multi-disciplinary teams and work seamlessly across
borders. This is why they devote time and resources into setting our FSO Advisory
 Consultants up with an international network when they join the firm.
ii. Each year they invest in a learning event where the first-year graduates get to meet each
other and participate in a broad range of learning activities.

4. International Intern Leadership Development Conference:

i. Every summer, almost 3,000 EY vacationers and interns from around the world meet
in Orlando, Florida
ii. During six action-packed days of group sessions, the interns network with each other
and EY's leaders

Deloitte –

1. On the job learning:

i. Company believes that people can learn the most during their daily activities.
Main focus is to stimulate you to learn by doing.
ii. The main aim is to actively support employees to get the most out of their time
at Deloitte
iii. E.g. Deloitte Belgium is part of a global network of member firms: employees will
have access to excellent communities of practice (like Yammer groups)

2. Coaching culture:
i. Company aims to be a true coaching organization in which employees
learn from each other’s experiences
ii. Allows the company to unlock the full potential of its people

3. Performance management approach:

i. Everyone is assigned a counsellor to discuss one’s performance and career plans
ii. Multiple other initiatives (like Upward feedback) will encourage employees to learn, grow, and
develop yourself continuously
4. Training programs tailored to employees’ needs
5. When joining Deloitte, employees are likely to develop their technical skills. Depending on the
 business area that an employee will join, they might be offered to follow beginner or expert courses
on VAT, SAP, Lean Six Sigma, pricing, business modelling, BE GAAP, etc.
6. A range of non-technical trainings such as Microsoft office, presentation skills, writing skills, time
management (basic to advanced)
7. Depending on employees’ own specific needs and career goal setting, it offers them the possibility
to follow external courses, for example earning an additional master’s degree or an MBA.
8. Employees have 24/7 access to digital learning content, including 60,000 hours of e-learnings,
unlimited access to our online library of over 10,000 books, videos, webinars, etc. focused on topics
ranging from finance, sales, industry awareness, client advocacy, to people management and
leadership.

COVID-19 RELATED HR TRENDS

Remote Recruitment and Selection:

The COVID-19 pandemic is quickly changing how every organization is attracting,

recruiting, and retaining employees on their virtual teams, making remote work the new
normal.
Learning and Development Initiatives

Industry example: Employee capability building has always been at the forefront at Dr
Reddy’s and this necessitates having strong L&D practices. As they moved swiftly to
ensure employee safety first by cancelling in-person sessions, the need to keep employees
motivated, and meaningfully engaged while working from home during these uncertain
times became extremely important. The organization launched virtual programmes such
as ‘My Dost’, ‘Kahoot’, and weekly ‘Learning Sessions’, specifically for Corona Times,
which focus on working remotely, leading during crisis, resilience and performance
Management.
A case in point, SuCCEED (Dr Reddy’s cultural and transformational journey of capability
building for employees at our manufacturing facilities), and their flagship leadership
development programmes, not just resulted in individual performance but translated into
increased business performance consistently year on year, especially during these testing
times.

Work from Home Trends:

Employee engagement and productivity

 Suggestions:

● Offer Parents & Carer and Digital GP support services to employees

● Provide access to a virtual personal trainer who supports physical health for different age
demographics, plus able bodied and disabled employees
● Provide access to an EAP and bereavement support services to offer independent and
confidential advice and counselling in difficult circumstances
● Utilise an Occupational Health provider to support ergonomic risk assessments for home-
based employees
● Offer a physical therapy exercise app for home support and rehabilitation
● Make discounted healthy food subscription services available to employees
● Provide access to technology that can support employees, understanding of their financial
wellbeing, such as Well One Money
● Set up Financial Wellbeing online sessions /WebEx as part of social interaction time
● Provide access to technology that can support employees with their emotional fitness, for
example Headspace
● Mobilise your Mental Health First Aid Network to support with health, wellbeing and
resilience

Well-Being Initiatives:

• Amway is on‐going with the increments, promotions, and recognition as per previous
plans. The company has planned virtual engagement programs like external webinars to
learn new skills and also announced employee's medical‐claim plans that will cover
treatment costs for COVID‐19.
• Hindustan Coca Cola Beverages has launched a virtual employee engagement program
that seeks to involve employee's colleagues and their family members online for their
physical and mental wellness.
• McDonald's India has adopted many of its classrooms training modules digitally and
introduced e‐learning modules, quizzes, master classes by managers, and many more
creative learning sessions, which employees can access on their phone while in quarantine
at home.
 Use of Technology in Covid-19:

● Smart AI tools from startups like Ahura are now being deployed for checking the exact
time spent on the material vs watching TV or spending time on social media during the
course and by monitoring their eye contacts, it is now possible to provide meaningful
feedback to the employees as well as their managers on the efficacy of learning.
● Smart wristbands Tracesafe used in Hong Kong have been readily used by HR managers
to suggest which employees should work from home necessarily and thus prevent the
entire office going into quarantine mode.
● My Marriott Hotel is a game that has been developed by Marriott International to recruit
newbies. It allows the candidates to run their own virtual hotel in which they design their
own restaurant, purchase inventory, train employees and serve guests. It virtually
simulates the whole experience to run a hotel business