BBA IV

HRM
Q.1 Define Human Resource Management? Explain its nature and scope? How it is
different from personnel management?
Ans Human Resource Management is a management function concerned with hiring,
motivating, and maintaining workforce in an organization. Human resource management
deals with issues related to employees such as hiring, training, development, compensation,
motivation, communication, and administration. Human resource management ensures
satisfaction of employees and maximum contribution of employees to the achievement of
organizational objectives.
According to Armstrong (1997), Human Resource Management can be defined as “a strategic
approach to acquiring, developing, managing, motivating and gaining the commitment of the
organisation’s key resource – the people who work in and for it.”
According to John Bratton and Jeffrey Gold (2007), “Human Resource Management is a
strategic approach to managing employment relations which emphasizes that leveraging
people’s capabilities is critical to achieving competitive advantage, this being achieved
through a distinctive set of integrated employment policies, programmes and practises.”
Nature of Human Resource Management
1. HRM is based on certain principles and policies contribute to the achievement of
organizational objectives.
2. HRM is a pervasive function – Human resource management is not specific to an
individual department, rather it is a broader function and spread throughout the organization,
it manages all type of people from lower level to top level departments of the organization.
3. HRM is people oriented – People or human resource is the core of all the activities of
human resource management. Human resource management works with and for people. It
brings people and organization together to achieve individual and organizational goals.
4. HRM is continuous activity – All factors of production are required to be continuously
updated and improved to cope up with the changes and increased competition. Similarly,
human resource also continuously trained, developed, or replaced to face the next level of
competition. Hence, it is a continuous activity.
5. HRM is a part of management function.
6. HRM aims at securing maximum contribution.
7. HRM aims at optimum use of personnel power
Scope of Human Resource Management
1. Personnel Aspect Human Resource Planning – It is the process by which the organization
identifies the number of jobs vacant.

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 a. Job Analysis and Job Design – Job analysis is the systematic process for gathering,
documenting, and analyzing data about the work required for a job. Job analysis is the
procedure for identifying those duties or behaviour that define a job.
b. Recruitment and Selection – Recruitment is the process of preparing advertisements on
the basis of information collected from job analysis and publishing it in newspaper.
Selection is the process of choosing the best candidate among the candidates applied for
the job.

c. Orientation and Induction – Making the selected candidate informed about the
organization’s background, culture, values, and work ethics.

d. Training and Development – Training is provided to both new and existing

employees to improve their performance.

e. Performance Appraisal – Performance check is done of every employee by Human

Resource Management. Promotions, transfers, incentives, and salary increments are
decided on the basis of employee performance appraisal.

f. Compensation Planning and Remuneration – It is the job of Human Resource

Management to plan compensation and remunerate.

g. Motivation – Human Resource Management tries to keep employees motivated so

that employees put their maximum efforts in work.

2. Welfare Aspect – Human Resource Management have to follow certain health and safety
regulations for the benefit of employees. It deals with working conditions, and amenities
like - canteens, creches, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.

3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union
members to avoid strikes or lockouts to ensure smooth functioning of the organization. It
also covers - joint consultation, collective bargaining, grievance and disciplinary
procedures, and dispute settlement.

PERSONNEL MANAGEMENT

Personnel management is hiring and developing employees’ skills, experience and

commitment to make their contribution more valuable to the organisation. It includes
activities such as job design, performance appraisal, training, etc.

It is important to note that personnel management is a relatively old concept that predates the
human resources management (HRM) approach. In personnel management, employees are
seen as a resource that can be used to achieve organisational goals. It is in contrast to HRM,
which views employees as individuals with their own needs and aspirations.

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The Society for Human Resource Management defines personnel management as the process
of shaping the skills, experience and value they bring to a company to achieve its goals.

HUMAN RESOURCE MANAGEMENT

It is the process of people management in organisations. It includes recruiting, selecting,

training, assigning, and promoting employees. HRM also deals with employee benefits,
performance management, and job satisfaction. It is important to note that human resource
management differs from personnel management in a lot of senses.

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Q Explain the structure of HRM with suitable example?
Ans An HR structure refers to how an organization divides its tasks. The HR department
structure incorporates the use of organizational structure to organize, coordinate, and
control activities in the department to achieve the company's goals.
The two main types of HR organizational structures are:

1. Hierarchical organization structure.

2. Flat organization structure.

Flat Organization Structure

The flat organization structure refers to a human resource team structure with few or no
people in the middle management, meaning there are minimal managerial layers in this
system. In the flat organization structure, the employees and their bosses all operate equally,
and work politics are eliminated. The HR department in this type of organization structure
involves everyone in decision-making. Start-ups and small companies mostly use this type of
organizational structure.

Hierarchical Organization Structure

The most prevalent HR organizational structure is the hierarchical organization structure.
This structure looks like a pyramid, and the chain of command is vertical. The CEO is at the
top, and there are various management departments underneath. This type of structure is
common in government agencies and large companies with many employees because it
accommodates large numbers and clarifies reporting relationships.

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Developing an HR Structure
When creating an HR department, various things are considered. For example, if it is a new
company or whether it has been in business for a long period. Some of the areas that a
business owner should look into when building an HR department are:

 HR Budget: Numerous information is required to make a new HR budget. Some of

them include the total number of projected employees for that year, the expected legal
expenses, and new or recurring training needs.
 HR Staffing Plan: Employing an experienced and qualified HR professional is not a
walk in the park. When selecting candidates, businesses should consider the HR
candidate's experience, education level, and ability to conduct research.
 Organization Staffing Plan: The HR department should work hand-in-hand with the
management to understand the long-term and short-term needs and budgets. The
staffing plan dictates the content and composition of the employees necessary to
position the business. The best sourcing activities that the department can use are
networking, the organization's job posting, and recruiting firms.

Q.2 Write a short note on the following with suitable example?

a. Job Analysis
b. Job Description

Ans Job analysis is the process of determining and reporting pertinent information relating to
the nature of a specific job. It is the determination of the tasks that comprise the job and the
skills, knowledge, abilities, and responsibilities required of the holder for successful job
performance.
Features of Job Analysis

From the definitions in the preceding section, we can list the features of job analysis as
follows:

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 1. Job analysis is gathering relevant information about various aspects of a job and
identifying tasks required to be performed as part of it.
2. It approaches systematically defining the role, context, conditions, human behavior,
performance standards, and responsibilities of a job.
3. It helps in establishing the job’s worth to an organization. In other words, it measures
a job’s value and contribution to the organization’s growth.
4. It establishes job-relatedness, which is crucial for HR decisions involving recruitment,
selection, compensations, training, health, and safety.

9 main purposes of job analysis;

1. Organizational structure and design

2. Human resource planning
3. Work simplification
4. Setting up of standards.
5. Support for personnel activities
6. Job description
7. Job specification
8. Job classification system
9. Job evaluation and compensation

Organizational structure and design

By clarifying job requirements and interrelationships among jobs, responsibilities at all levels
can be specified, promoting efficiency and minimizing overlap or duplication.

Human resource planning

Job analysis is the foundation of forecasting the needs for human resources and plans for such
activities as training, transfer, or promotion.

Job analysis information is incorporated into a human resource information system.

Work simplification

Job analysis provides information related to the job, and this data can be used to make the
process or job simple.

Work simplification means dividing the job into small parts, i.e., different product lines or
process operations, improving production or job performance.

Setting up of standards.

Standard means minimum acceptable qualities, results, performance, or rewards regarding a

particular job.

Job analysis provides information about the job, and each standard can be established using
this information.

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Support for personnel activities

Job analysis supports various personnel activities like recruitment, selection, placement,
training and development, wage administration, performance appraisal, etc.

Job description

A job description is a job profile that describes the job’s contents, environment, and
condition. It is prepared based on data collected through job analysis. It provides information
about the activities and duties to be performed in a job.

Job description differentiates one job from another by introducing unique characteristics of
each job.

Job specification

A job specification is another notable objective of job analysis. It includes information about
the requirements of skills and abilities to perform a specific task.

It states the minimum acceptable qualifications an incumbent must possess to perform the
assigned duty successfully.

Job classification system

Selection, training, and pay systems are often key to job classification.

Without job analysis information, it is impossible to determine the relationships among jobs
in an organization reliably.

Job evaluation and compensation

Job analysis also provides the required information that is necessary for evaluating the
worthiness of jobs.

After preparing the job description and job specification statements, it assists in evaluating
actual performance against the predetermined standard. Then the deviation (if any) is found
that has taken place during action.

b. Job Description

Job Description

Job description includes basic job-related data that is useful to advertise a specific job and
attract a pool of talent.

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It includes information such as job title, job location, reporting to and of employees, job
summary, nature and objectives of a job, tasks and duties to be performed, working
conditions, machines, tools and equipments to be used by a prospective worker and hazards
involved in it.

Purpose of Job Description

 The main purpose of job description is to collect job-related data in order to advertise
for a particular job. It helps in attracting, targeting, recruiting and selecting the right
candidate for the right job.
 It is done to determine what needs to be delivered in a particular job. It clarifies what
employees are supposed to do if selected for that particular job opening.
 It gives recruiting staff a clear view what kind of candidate is required by a particular
department or division to perform a specific task or job.
 It also clarifies who will report to whom.

Q How recruitment is different from selection ? Explain different method used to

recruit manpower in an organisation?
Ans Recruitment is the process of actively seeking out, finding and hiring candidates for a
specific position or job. The recruitment definition includes the entire hiring process, from
inception to the individual recruit’s integration into the company.
Selection of an employee is a process of choosing the applicants, who have the qualifications
to fill the vacant job in an organization. Selection is a process of identifying and hiring the
applicants for filling the vacancies in an organization.

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The method used to recruit manpower in an organisation

1. Direct advertising

Placing job adverts on your careers site, job boards, social media and industry publications is
an excellent way to find lots of applicants. It also gives exposure to your employer
branding and boosts your company’s reputation. The downside is that external advertising
can be very expensive.

2. Talent pool databases

You should always search your talent pool databases for applicants and candidates that were
not hired but were suitable enough to save. Most hiring decisions involve deciding between at
least two or three candidates.

When a new vacancy comes up, search your talent pool for similar skills and experience. You
could save yourself a lot of time.

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3. Employee referrals

Most companies have some kind of employee referral program in place. Employee referrals is
a combination of internal and external recruitment. Existing staff are encouraged to refer
people they know for vacancies.

The value is that it’s cost-effective, quick and you can trust that employees won’t refer
unsuitable candidates. Also, the new hire will already know more about your organization
than an outside hire.

4. Boomerang employees

Rehiring past employees is gaining popularity. Known as boomerang employees, these are
people who worked well at a company but then left on good terms for a myriad of reasons.

Employers are seeing the value of rehiring them because they know their abilities and the
employee knows and fits into the company culture. Bringing a boomerang employee back on
board reduces time to hire, eliminates the risk of a bad hire and reduces cost per hire.

5. Promotions and transfers

Promotions and transfers aren’t quite the same thing, but the concept is the same. Internal
employees are identified to fill open roles. A promotion means that the person moves up the
ladder and is given more responsibilities and also a pay increase. A transfer usually doesn’t
involve greater responsibilities or more money and is a horizontal move.

Staff can be transferred to the same role in another branch or region, or they can take on a
similar position in a different department or division.

6. Employment exchanges

Although not available in all countries, employment exchanges are mandatory in others. An
employment exchange is a government-run initiative that keeps record of unemployed job
seekers.

Employers submit new vacancies to the exchange and are given the details of suitable
candidates. Using an exchange is cost-effective but mostly suited to more junior, factory,
agricultural and artisan roles.

7. Recruitment agencies

You can outsource your hiring process to a recruitment agency. Agencies manage full cycle
recruiting on your behalf. Although the cost of using an agency is high, it frees up your time
to focus on more pressing matters. Recruitment agencies are a great option for hard-to-fill
positions and for companies that don’t have the internal HR resources to focus on hiring.

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You can also contract an external recruiter to make contact with specific people that you
would like to attract to your company. You might know of a passive candidate who’ll be a
perfect fit for your role, but they work for your opposition. So you don’t want to make direct
contact. An executive search recruiter, or headhunter, would be the perfect choice.

8. Professional organizations

When you need to fill a highly skilled position, professional organizations can be an excellent
source of candidates. Many professions require that on qualification, people register with the
appropriate professional association.

There are also other organizations where registration is voluntary, but it adds to the
credibility of a candidate’s qualifications. Partnering with these associations and
organizations can put you in touch with top talent.

9. Internships and apprenticeships

Offering internships and apprenticeships is an excellent way to get to know the strengths of
individuals and can be considered to be a working interview. During the contact period, line
and hiring managers can evaluate the potential to identify interns and apprentices who can be
upskilled and developed to fill future roles.

Future leaders have to start somewhere, and they will all be hired in an entry-level position to
begin with. Well managed internship and apprenticeship programs are fertile ground for
recognizing future talent and leaders.

10. Recruitment events

For big organizations, or companies planning expansion, recruitment events are perfect for
attracting the type of people you need. Events can range from hosting open days to being
at job fairs, holding a hackathon and graduate recruitment drives on campus. Events can be
costly.

11. Word of mouth

Big brands and multinationals can easily use word of mouth methods of recruitment because
unsolicited job seekers approach them daily. Their employer brand is established, and they’re
recognized as an employer of choice. All they need to do is put the word out that they’re
hiring and they will get a good response.

This method can also work, though in outlying areas where single companies employ a
substantial percentage of the local population. An example would be mining companies and
sawmills. And in small towns high-street businesses can also attract applicants by spreading
the word through the local grapevine.

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12. Bulletin boards

There are still jobs that can be advertised on bulletin boards. Factory and agricultural jobs are
typical examples. Unemployed people often wait at factory gates for day or contact jobs to be
announced. In agriculture, seasonal workers gather at local markets or co-ops to see job lists
put up by local farms.

Q.3 Difference between training and development? Why it is important for an

organisation?
Ans Training- It is a process by which attitudes, skills, and capabilities to do a particular
job are increased. It is a process of learning new skills and applying knowledge. Its main
aim is to improve the performance of the current job and prepare them for any future job.
Training enhances productivity and reduces accidents and wastage of resources. It also
helps to increase the morale and satisfaction of the employees.
Development refers to the overall growth of the employees. These are learning
opportunities which are designed for employees to grow. These include not only those
activities which help to improve employees’ performance, but also help in employees’
growth.

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Reasons that demonstrate the importance of training and development.

New Hire Orientation

Training is particularly important for new employees. This can be conducted by someone
within the company and should serve as a platform to get new employees up to speed with
the processes of the company and address any skill gaps.

Tackle shortcomings

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Every individual has some shortcomings and training and development helps employees iron
them out. For example, at RateGain we have divided the entire headcount in several groups to
provide focused training which is relevant to those groups - sales training, first time
managers, middle management, senior leadership, executive leadership.

Improvement in performance

If shortcomings and weaknesses are addressed, it is obvious that an employee's performance

improves. Training and development, however, also goes on to amplify your strengths and
acquire new skill sets. It is important for a company to break down the training and
development needs to target relevant individuals.

Employee satisfaction

A company that invests in training and development generally tends to have satisfied
employees. However, the exercise has to be relevant to the employees and one from which
they can learn and take back something. It will be futile if training and development become
tedious and dull, and employees attend it merely because they have to. As a company, we
stress on industry specific training and send many employees for international seminars and
conferences that can be beneficial to them.

Increased productivity

In a rapidly evolving landscape, productivity is not only dependent on employees, but also on
the technology they use. Training and development goes a long way in getting employees up
to date with new technology, use existing ones better and then discard the outdated ones. This
goes a long way in getting things done efficiently and in the most productive way.

Self driven

Employees who have attended the right trainings need lesser supervision and guidance.
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Training develops necessary skill sets in employees and enable them to address tasks
independently. This also allows supervisors and management to focus on more pressing
areas.

Training and development programs can have a huge impact on a company. Like every other
function in your company, training and development should be focused on producing targeted
and tangible results for the business. The key is to treat it seriously and consider it a capital
investment and make it results-driven.

Q Difference between Performance evaluation and Job evaluation? What are its
objective? Explain the current method of Job evaluation?
Ans Performance Appraisal is a way to evaluate the performance of an employee and it is
also edited as a complete process document. Performance Appraisal is done on a regular
basis, there is a regular review of employee performance in an organization in Performance
Appraisal. Performance Appraisal is also known as a performance review, employee
evaluation. Generally, its performance is evaluated by the staff's manager.
A job evaluation is a systematic way of determining the value/worth of a job in relation to
other jobs in an organization. It tries to make a systematic comparison between jobs to assess
their relative worth for the purpose of establishing a rational pay structure.

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The objectives of job evaluation are enumerated below:

1. To secure and maintain complete, accurate and impersonal descriptions of each

distinct job or occupation in the entire plant.

2. To provide a standard procedure for determining the relative worth or value of each
job in a plant.

3. To determine a rate of pay for each job which is fair and equitable with relation to
other jobs in the plant, community and industry.

4. To ensure that like wages are paid to all qualified employees on like work.

5. To promote fair and accurate consideration of all employees for advancement and
transfer.

6. To provide a factual basis for the consideration of wage rates for similar jobs both
within the community and within the industry.

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7. To provide information for the work organisation, employee’s selection and training
and numerous other important purposes.

Here are the 5 Best Job Evaluation Methods

1. Ranking Method

This job evaluation method works by ranking jobs according to their perceived value

compared to other jobs. It does not take into account the jobs’ market value. This

method works for smaller organizations.

Larger organizations, generally, have more positions and may require the jobs to be

grouped. For example, this method could be applied if all level ‘A’ staff were grouped

into one section and the same was done for level ‘B’ staff, irrespective of what their

jobs require them to carry out.

2. Grading/Classification Method

In this job evaluation method, jobs are grouped based on certain characteristics. The

level of skill required to carry out the job is one aspect. The second aspect is an

employee's responsibility while carrying out that job. This job evaluation method is

relatively straightforward and does not take as much time to carry out as others on this

list.

The auditor creates a set of job characteristics. He then groups the jobs into grades or
classifications. While this seems relatively straightforward, some of the jobs in an

organization may not match the predetermined criteria.

3. Point-Factor Method

This job evaluation method uses specific factors about the job to determine how much

value they add to a job role. These factors are divided into different sectors, such as

skills, responsibilities, and required effort.

These factors are then assigned a numerical weightage. Finally, the overall factors or

points for a specific job are added up and compared against other jobs to understand

the value of the jobs.

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 This method clarifies a job’s internal value without considering market value.
4. Factor Comparison Method

This job evaluation method is similar to the point-factor method. However, instead of

merely assigning a numerical weightage, a monetary value is assigned to each factor.

Many organizations don’t employ this method as it can become very complex. It can

also be challenging to communicate the job values assigned to employees as they tend

to be subjective.
5. Competitive Market Analysis Method

This job evaluation method relies on external information about a job’s value within

an organization. This means that similar jobs in the market are considered, and the

information could come via job postings. First, the job positions, roles, and duties

involved are studied and compared to the job in question. Then the monetary value, in

terms of compensation for those jobs, is researched, and the value of the specific

position is determined.

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Q.4 What is salary? How it is different from wages? Explain the factors that influence
wages and salary administration in Indian organisation?
Ans A salary is a fixed amount of money or compensation paid to an employee by an
employer in return for work performed.

Major factors affecting wage and salary administration are discussed as under:

1) Demand and Supply: Demand for and supply of labor and its availability will have great
influence on the determination of wage rates. If there is a shortage of labor, the wages
demanded will be high. If, on the other hand labor is plentiful, workers will be too willing to
work at low rates of wages.
2) Organization’s Ability to Pay: This is a major affecting factor in determining wage and
salary structure of an organization. Financial position and soundness of an organization can
put it in a position to offer attractive compensation package. Some of the reputed

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economically sound organizations are offering good compensation package and thereby
successful in obtaining and maintaining talented workforce. Good compensation package
helps in attracting and retaining quality talent in an organization. Generally wages in most of
the organization decide through collective bargaining and , organization’s ability and capacity
to pay attractive wages depends upon over all financial soundness and economic condition of
an organization.

3) Prevailing Market Rate or “Going Wage Rate”:This is practically the major factor that
induces any organization to take it as a base while determining wage and salary structure for
it. Prevailing market rate is also known as ‘most comparable rate of wage’, and most popular
method for wage rate determination, especially for lower cadre positions

4) Productivity: Productivity is measured in terms of output per man hour. It a result of

several factors such as technology, labour efforts, method of doing work, management
contribution and support and so on. However, productivity has always remained as base for
wage differences since it a base which is apparently justifiable and acceptable to all in the
organization. Many time this as base is not acceptable to many trade unions as it is very
difficult to have accurate measurement and is has always remain at a discretion of
management policies.

5) Cost of Living: It is always expected that there has to be adjustment in pay rates in
accordance with prevailing cost of living. The changes in the cost of leaving affect
purchasing power of the person. Trade union also considers this as a base for collective
bargaining on wage issues.

6) Trade Union’s Bargaining Power: Generally the mechanism for fixing of wages for
majority of workers is collective bargaining or negotiation, and collective bargaining and
negotiations depends upon the trade union’s strength. If there is a strong union operates in the
organization, it may dictate its terms on wage fixation and revision over a period of time and
vice versa. The strength and power of the trade union depends upon its membership, financial
strength and leadership it may have, for its functioning.

7) Job Requirements: From the organizational perspective appropriate job analysis and job
evaluation exercise is a base for the wage determination and revision. It is quite obvious also
that wages to be paid to the workers should be in accordance with the duties, responsibilities
and the efforts likely to be put for job performance. Wage or compensation package very in
accordance with job description and job specification.

8) Management Attitude: Attitude of employer or management towers the working

community of the organization does influence in wage determination and revision at an
appropriate time. Some reputed and professional organization does prefer to pay wage in
accordance with their reputation or prestige of an organization in the market. They may give

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participation to workers in sharing profits. On the other hand conservative organizations do
not prefer to go for such profit sharing.

9) Psychological and Social Factors: Psychologically person perceive wages and

compensation package as sole parameter for success or failure in the life. Compensation
package plays significant role in the employees pride, moral, motivation and psychological
engagement and involvement in the work.

10) Legislative Considerations: Legislative provisions do provide protection to the working

community by fixing bottom line for wage payments. Many a time it was found that the
bargaining power of the workers was not strong enough to ensure fair wages.

Q Define Industrial Dispute? What are its causes? Discuss in brief the procedure for
settlement of industrial dispute?

Ans Industrial dispute means any dispute of difference between employees and employers or
between employers and workmen or between workmen and workmen, which is connected
with the employment or non-employment of the terms of employment or the conditions of
work of any person.
Causes of Industrial Disputes
The common causes of industrial disputes are –

 Wages
 Dearness Allowance and bonus
 Working condition
 Retrenchment and layoff
 Inter union rivalry
 Violation of rules or codes
 Political interference
 Unfair labor practice
 An authoritarian or autocratic attitude in management

Procedure for settlement of Industrial Dispute

 1. Conciliation:

In simple sense, conciliation means reconciliation of differences between persons.

Conciliation refers to the process by which representatives of workers and employers

are brought together before a third party with a view to persuading them to arrive at

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 an agreement by mutual discussion between them. The alternative name which is used

for conciliation is mediation. The third party may be one individual or a group of

people.

 2. Arbitration:

Arbitration is a process in which the conflicting parties agree to refer their dispute to a

neutral third party known as ‘Arbitrator’. Arbitration differs from conciliation in the

sense that in arbitration the arbitrator gives his judgment on a dispute while in

conciliation, the conciliator disputing parties to reach at a decision.

3. Adjudication:

The ultimate legal remedy for the settlement of an unresolved dispute is its reference

to adjudication by the government. The government can refer the dispute to

adjudication with or without the consent of the disputing parties. When the dispute is

referred to adjudication with the consent of the disputing parties, it is called

‘voluntary adjudication.’ When the government herself refers the dispute to

adjudication without consulting the concerned parties, it is known as ‘compulsory

adjudication.

Q.5 What is HRIS? Explain the significance to an organisation? Explain the steps

involved in designing HRIS for an organisation?

Ans HRIS stands for Human Resources Information System. The HRIS is a system that is

used to collect and store data on an organization’s employees.

In most cases, an HRIS encompasses the basic functionalities needed for end-to-end Human

Resources Management (HRM). It is a system for recruitment, performance management,

learning & development, and more.

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An HRIS is also known as HRIS software. This is a bit confusing as it implies that different

systems can have different software running on them. However, this is not the case. The

HRIS is, in essence, an HR software package.

The HRIS can either run on the company’s own technical infrastructure, or, more common

nowadays, be cloud-based. This means that the HR software is running outside of the

company’s premises, making it much easier to update.

Benefits of HRIS

 Record-keeping. An HRIS is a record-keeping system that keeps track of changes to

anything related to employees. The HRIS can be seen as the single source of truth when it

comes to personnel data.

 Compliance. Some data is collected and stored for compliance reasons. This includes

material for the identification of employees in case of theft, fraud, or other misbehaviors,

first contact information in case of accidents, citizens identification information for the tax

office, and expiration dates for mandatory certification. Efficiency. Having all this

information stored in one place not only benefits accuracy but also saves time. Some

companies still keep a lot of data about employees as physical paperwork. Finding the

right folder, and locating the right sheet, can take up a lot of staff time.

 HR strategy. The HRIS permits the tracking of data required to advance the HR and

business strategy. Depending on the priorities of the organization, different data will be

essential to track. This is where the HRIS shines.

 Self-Service HR. A final benefit is the ability to offer self-service HR to employees and

managers. This enables employees to manage their own affairs. When done right, the

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HRIS can offer a good employee experience. Keep in mind that not all HRIS systems

offer this in a user-friendly manner.

STEPS INVOLVED

1. Determination of Information Needs:

Data and information are basic inputs for decision making activity. Managers at

different levels may need different types of information. Hence, identification of

information needed by the managers becomes the first step in designing HRIS. This

involves a perspicacious study of the activities carried out in the organisation.

2. Designing the System:

At this stage, the flow of information is structured in such a manner that it is

economical and matches with the information needs of managers. It is important to

mention that HRIS as a sub-system of Management Information System (MIS) does

not require a separate design. However, designing HRIS may require developing

preferred processing techniques for desired data set by managers at different levels.

3. Implementation:

This is the stage when the HRIS is actually set up. In order to handle the system

effectively, employees are imparted the necessary skill through orientation and

training programmes. Besides, facilities are increased and upgraded, procedures are

properly streamlined with an objective to integrate the HRIS with various

organisational components in existence at the

4. Monitoring and Evaluation:

It involves measuring the performance, or say, contribution of the system to the

overall human resource management of the organisation. By doing so, gaps are

identified and corrective steps are taken to ensure its smooth operation. The system is

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 evaluated on a regular basis so that it is evaluated in the light of changes taking place

from time to time within and outside the organisation.

Q Write notes on the following

A. Career and Succession planning

B. Potential Appraisal

A. Career and Succession planning

Succession planning is having in place measures to identify and develop potential successors
for key or strategic posts in an organization. It is different from replacement planning which
grades employees on the basis of their past performance. Succession planning nurtures future
talent to lead the organization.
Career planning, on the other hand, is done for all positions in the organization. However,
both succession and career planning are an integral part of career management policy.
Succession and career planning is the process of identifying, nurturing, developing, and
training new leaders for future requirements or replacement of the existing leaders to
continue the trend of dependable leadership in the organization.
Following are the stages to follow to ensure fruitful succession and career planning −
 Identify the Critical Position − Organization should always keep a watch on what
are the key elements or contributors to their business, how to motivate and retain
talent, and what will be the next step if the main contributors leave the organization
due to any reason. Who are the specialized people to perform the critical role?
 Analysis − This stage tells about the requirements to fill with a fit successor. What are
the gaps? What are the internal and external sources to fill the gaps, what will be the
strategy? What will be the competencies required?
 Development of Succession and Career Plan − It is also called as backup plan to
streamline the function of the organization. It identifies the requirements and outlines
a strategy to fill the gap and make sure that functions are being performed well.
 Evaluate, Monitor, and Observe − This is the process of evaluation. It involves
constant monitoring, even after the gap or requirement is fulfilled. Performance is
observed to find out if any changes are required. In case if any changes are required,
quick action is taken.

B. Potential Appraisal

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Potential appraisal is a future – oriented appraisal whose main objective is to identify and

evaluate the potential of the employees to assume higher positions and responsibilities in the

organizational hierarchy. Many organisations consider and use potential appraisal as a part of

the performance appraisal processes.

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