Human Resource Management

Subject Code: MB

0043/MBF 106

BKID B1626

Revised Edition: Spring 2010

Sikkim Manipal University

Directorate of Distance Education
Department of Management and Commerce
Board of Studies Chairman HOD Management and Commerce SMU DDE Additional Registrar SMU DDE Dr. T. V. Narasimha Rao Adjunct Faculty and Advisor SMU DDE Prof. K. V. Varambally Director Manipal Institute of Management, Manipal Originally Prepared by: Ms. Sadhana Dash Former Senior Manager HR Microsoft India Corporation (Pvt.) Ltd. Revised Edition: Spring 2010 Printed: June 2012 This book is a distance education module comprising a collection of learning materials for our students. All rights reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University, Gangtok, Sikkim. Printed and Published on behalf of Sikkim Manipal University, Gangtok, Sikkim by Manipal Global Education Services Manipal 576 104. Printed at Manipal Technologies Limited, Manipal. Mr. Pankaj Khanna Director HR, Fidelity Mutual Fund Mr. Shankar Jagannathan Former Group Treasurer Wipro Technologies Limited Mr. Abraham Mathew Chief Financial Officer Infosys BPO

Content Revised and Updated by: Dr. Juin Choudhury earned her Doctorate in Management from Indian School of Mines, Dhanbad. She holds her Masters in Psychology from Vinoba Bhave University, Hazaribagh. She has a rich experience of six years in research and development, and is a part of academia for more than nine years. Presently, she is an Associate Professor at The Institute of Finance and International Management (IFIM), Bangalore. She has published more than 20 research papers and articles in different journals and magazines including Indian Journal of Economics and Journal of Social Science and Productivity. She also has advisory experience with several organisations such as Pepsico (Calcutta) and Syscon Microfinance Solution. She is a specialist in Human Resource Management, Organisational Behaviour, Organisational Development and Industrial Relations. Peer Reviewers Profile Prof. Atish R. Dasgupta graduated with B.Tech from IIT Kharagpur and earned Post Graduate Diploma in Management from IIM Calcutta. He has an illustrious 28 years of work experience holding various positions in HR in software organisations like HCL Technologies, PCL-Mindware, IDM, Sonata Software and the Escorts Group. From June 2009, he has joined the academia as an Associate Professor at XIME, Bangalore. In House Content Review Team Dr. Sudhakar G. P. HOD Management and Commerce SMU DDE, Bangalore Ms. Vidya M. V. Assistant Professor Management and Commerce SMU DDE, Bangalore

Contents Unit 1 Introduction to Human Resource Management Unit 2 HRM in India Unit 3 Human Resource Planning Unit 4 Recruitment and Selection Unit 5 Training and Management Development Unit 6 Employee Career Planning and Growth Unit 7 Performance Appraisal Unit 8 Compensation Management Unit 9 Job Evaluation

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Unit 10 Human Resource Information System Unit 11 Job Analysis and Design Unit 12 Employee Misconduct and Disciplinary Procedure Unit 13 Grievance and Grievance Procedure Unit 14 Employee Welfare and Working Conditions Unit 15 Emerging Trends in HRM 174

193 214 229 244 262

MB 0043/MBF 106 Human Resource Management

Course Description Human Resource Management is a four-credit subject in the first semester of MBA programme. This course would prepare the learner for a fulfilling career in business management. Human Resource Management (HRM) has evolved considerably over the past century, and experienced a major transformation in form and function. From a mere administrative and maintenance function, it has now transformed into what many scholars and practitioners today regard as the source of sustained competitive advantage for organisations operating in a global economy. Organisations have come to realise that the global markets are becoming increasingly dynamic. Innovation and adaptation to changes have become the order of the day. The most potent sources of innovation are often ideas that emerge from within the company - usually in connection with an insight that someone has in working with customers. So, it has become a necessity for organisations to strategically craft jobs, create networks among people that permits open communication and provide training that helps every person in the organisation become a part of its innovation engine. Organisations must not only foster innovation, but at the same time they must be also be able to provide an environment that promotes diversity, acknowledge and recognise the skills and efforts of the employees, develop and implement employment branding strategies to retain the skilled employees. All these activities are taken care of as part of HRM. Thus, it has become essential for all students planning a career in business management to have strong foundations in HRM concepts and techniques to prepare them to implement strategic measures to manage the human resources.

Course Objectives: The course Human Resource Management of MBA 1st Semester helps students to not only gain the required knowledge in Human Resource Management, but also helps them in learning the current human resource techniques practised in organisations. After studying this subject, you should be able to: analyse the concept of the human resource management explain the changing role of HR in India explain the process of human resource planning list the techniques of recruitment and selection explain the various types and techniques of training and development list the components of employee growth describe the dimensions of career planning list the techniques and methods of performance evaluation analyse the concepts of job analysis and job design describe the applications of human resource information system explain the process of implementing and measuring discipline describe employee grievance machinery and its procedure explain the concept of employee welfare and the types of welfare measures explain the emerging HR concepts of employee engagement, talent management, knowledge management, dual career groups and business process outsourcing The Self Learning Material (SLM) for this subject is divided into 15 units. A brief description of all the 15 units is given below: Unit 1: Introduction to Human Resource Management This unit describes the concept of human resource management, its history, its functions and the role of HR executives. Unit 2: HRM in India This unit discusses the concepts of human resources management and the changing role of HR in India and explains the impact of globalisation and its impact on Indian businesses.

Unit 3: Human Resource Planning This unit defines human resource planning, the factors affecting it and explains the process of human resource planning. Unit 4: Recruitment and Selection This unit explains the importance of recruitment; lists the various sources of recruitment and describes its tools and techniques and describes the techniques of selection. Unit 5: Training and Management Development This unit discusses the importance of training, explains the various types and techniques of training and development and describes the methods and procedures of training. Unit 6: Employee Career Planning and Growth This unit lists the components of employee growth and describes the dimensions of career planning and describes promotions, internal job postings and evaluation programmes for special employee growth. Unit 7: Performance Appraisal This unit explains the process of performance appraisal lists the techniques and methods of performance evaluation and evaluates the concept of 360 degree appraisal. Unit 8: Compensation Management This unit discusses the concept of compensation and wage salary administration, discusses wage differentials, reward and incentive plans, and explains managing benefits in organisations. Unit 9: Job Evaluation This unit discusses the concepts of job evaluation and its objectives, evaluates the different job evaluation methods and discusses the concepts of competency and succession planning. Unit 10: Human Resource Information System (HRIS) This unit discusses the objectives of human resource information system, its components and types and explains the applications of HRIS, its benefits, implementation and the impact of implementation of HRIS.

Unit 11: Job Analysis and Design This unit discusses the concept of job analysis and the process of job analysis and explains the concept of job design. Unit 12: Employee Misconduct and Disciplinary Procedure This unit describes the concept of employee misconduct at the workplace, explains the process of implementing and measuring discipline, and discusses the techniques to ensure discipline. Unit 13: Grievance and Grievance Procedure This unit explains the concept of grievances; discusses the importance of grievance handling and describes grievance machinery and its procedure. Unit 14: Employee Welfare and Working Conditions This unit explains the concept of employee welfare and the different types of welfare measures and describes the basic features of labour welfare measures. Unit 15: Emerging Trends in HRM This unit explains the concepts of employee engagement, talent management, knowledge management, dual career groups and business process outsourcing and discusses the right sizing of workforce.