What is Human Resource Management?

Definitions of HRM
Human resources management (HRM) is a management function
concerned with hiring, motivating, and maintaining people in an
organization. It focuses on people in organizations. Human resource
management is designing management systems to ensure that human
talent is used effectively and efficiently to accomplish organizational
goals.
Functions of management
Human Resource Planning: Human resource planning (HRP) is the
continuous process of systematic planning to achieve optimum use of
an organization's most asset—quality employees. Human resources
planning ensures the right person for right job at right time.
Job Analysis: Job analysis refers to a systematic process of collecting all
information about a specific job, including skill requirements, roles,
responsibilities, and processes to create a valid job description. Job
analysis also gives an overview of the physical, emotional & related
human qualities required to execute the job successfully.
Recruitment and Selection: Recruitment is positive in nature &
selection in nature. Recruitment refers to the process where potential
applicants are searched for, and then encouraged to apply for an actual
or anticipated vacancy. Selection is the process of hiring employees
among the shortlisted candidates and providing them a job in the
organization.
Placement: It refers to process of making the new employees get
acquainted to the new environment of the organization. This reduces
the anxiety of the new hires and allows them to adjust with the other
existing employees in the company. In fact, induction is only a part of
socialization.
Training and Development: Training is a formal process by which talent
development professionals help individuals improve performance at
work. Development is the acquisition of knowledge, skill, or attitude
that prepares people for new directions or responsibilities.
Performance Appraisal: “performance appraisal” refers to the regular
review of an employee's job performance and overall contribution to a
company. Also known as an annual review, employee appraisal,
performance review or evaluation, a performance appraisal evaluates
an employee's skills, achievements, and growth, or lack thereof.
Carrier Planning: Career planning is a process of systematically
matching career goals and individual capabilities with opportunities for
their fulfilment." Guide employees for proper carrier decision. It win-
win situation for both organizations and employees.
Welfare for the Employee: Employee welfare is a term that
encompasses a broad range of benefits and services that an employer
may offer to its employees. It can include things like health insurance,
dental insurance, vision insurance, life insurance, disability insurance,
401(k) plans, and paid time off.
Industrial Relation: Industrial relation refers to a relationship between
the employers and employees. It also refers to a field of study that
examines these types of relationships, especially groups of workers in
unions. The employers are represented by management and
employees are represented by unions.
Compensation: Compensation refers to any payment given by an
employer to an employee during their period of employment. In return,
the employee will provide their time, labour, and skills. This
compensation can be in the form of a salary, wage, benefits, bonuses,
paid leave, pension funds, and stock options, and more.
Motivation or Rewards and Recognition: Rewards and Recognition is a
system where people are acknowledged for their performance in
intrinsic or extrinsic ways. Recognition & Reward is present in a work
environment where there is appropriate acknowledgement and
appreciation of employees' efforts in a fair and timely manner.
Nature of HRM
1. Inherent part of management: HRM is an essential and integral part
of the overall management process within an organization. It involves
managing the human resources to achieve organizational goals
effectively.
2. Pervasive function: HRM is not limited to a specific department or
level within an organization. It is present throughout the organization
and impacts all employees.
3. Development-oriented: HRM focuses on developing the skills,
knowledge, and capabilities of employees to enhance their
performance and potential.
4. Action-oriented: HRM involves taking concrete actions and
implementing strategies to manage and optimize the performance and
well-being of employees.
5. Future-oriented: HRM takes into account future workforce needs,
workforce planning, and talent management to ensure the organization
has the right people with the right skills for future challenges.
6. Comprehensive: HRM covers a wide range of activities related to
managing people, including recruitment, selection, training,
performance management, compensation, employee relations, and
more.
7. Integrating mechanism: HRM acts as an integrating mechanism that
aligns the individual goals of employees with the overall objectives of
the organization.
8. People-oriented: HRM recognizes that employees are the most
valuable asset of an organization and places emphasis on their well-
being, satisfaction, and development.
9. Continuous function: HRM is an ongoing and continuous process, not
a one-time activity. It involves constant monitoring, evaluation, and
adaptation to changing organizational needs and the external
environment.
10. Based on Human Relations: HRM is influenced by the Human
Relations Movement, which emphasizes the importance of
understanding human behaviour and social factors in the workplace to
enhance employee motivation and productivity.
Training and Development Process:
Training is a formal process by which talent development professionals
help individuals improve performance at work. Development is the
acquisition of knowledge, skill, or attitude that prepares people for new
directions or responsibilities.
Methods of Training:

On-the-job training is a form of training provided at the workplace.

During this process a trainee is given a hands-on experience of tools,
techniques, machinery, software, materials, or equipment.
This training is provided by the co-worker, training manager, or
professional trainers. The motive of on-the-job training is to train the
workers on a certain skill set, which they will use in day-to-day tasks.
Types of on-the-job trainings: -
Coaching: In this method, the training is given by the senior employee
or internal trainer to the recruit. The trainee can solve their queries and
do hands-on through the demonstration and instruction given by their
seniors.
Mentoring: On-the-job training is given by manager or internal trainer,
who are well known in their day-to-day tasks. The training is based on
a one-to-one training method where the manager or the trainer is
considered as a mentor who guides trainees in the situations of
difficulty.
Structured Training: In this training method, the trainer designs the
step-by-step training procedure for the trainee, that includes the job
overview, instruction and demonstration for the skill needed in the job
role. The trainee can ask doubts and clarify with their trainer and the
trainee can provide their feedback on how effective the program is from
them.
Job Rotation: In this training method, the new recruits are shifted to
other connected job roles, to make them well-versed in different job
backgrounds. It helps them to learn new tools and technologies and
can perform multiple tasks if needed. They can also make good
networks with other people in the organization.
Understudy: In this method, the senior employee trains an assistant or
subordinate to perform their tasks and duties in case the former
vacates their position due to transfer, promotion, death, or retirement.
Off-the-job training refers to an education method where employees
learn more about their job or the latest advancements in their field at
a location away from their workplace. This type of training essentially
helps employees perform their job more efficiently. When employers
hold training away from the workplace, it helps minimize distractions
so employees can fully focus on the material they're learning.
Types of off-the-job:
Lecturers:
This training method takes you back to your school days as you sit in a
boardroom, classroom, or lecture hall and listen to a speaker. They
might describe certain topics, formulas, or new research related to
developments in your field. The instructor might make you do
assessments to complete the course or earn a certification.
Simulations
The simulation training method mimics your job using equipment that
mirrors your tasks, like an immersive role-play. This method is for those
who take on more dangerous jobs where it’s too risky to complete
training on-site. For example, pilots, astronauts, and marine divers
often use simulation training.
Case studies
Using case studies is a more formal training method where you analyze
real-life problems or situations related to your field. Your instructor will
ask what went wrong, what the employees did well, and what you’d do
differently. By the end, you’ll write a report to summarize your findings.
This method is especially useful for examining past experiences in fields
like law, politics, and journalism.
Role-play
Practicing potential scenarios is helpful for understanding how to react
in real-life situations. This training is often used for customer service
jobs or sales positions where you interact with the public. Instructors
provide a realistic, relevant situation and evaluate how you respond to
strengthen your decision-making, communication, and emotional
regulation skills.
In- basket- exercise
An in-basket exercise is used by companies as a role-play hiring
assessment tool to establish how well applicants perform job-related
tasks within a certain period of time.
Companies use it to ascertain how well you manage multiple tasks with
how you prioritize those tasks in logical sequences and move to
successfully manage them.
This test can be used to assess the abilities of employees from
administrative assistants and clerical workers, and to measure the
proficiency and expertise of a potential senior executive.
Performance Appraisal
“performance appraisal” refers to the regular review of an employee's
job performance and overall contribution to a company. Also known as
an annual review, employee appraisal, performance review or
evaluation, a performance appraisal evaluates an employee's skills,
achievements, and growth, or lack thereof.
Procedure of conducting PA
1. Setting performance standards: The first step is to establish clear and
measurable performance standards or goals that align with the
employee's job responsibilities and the organization's objectives. These
standards act as benchmarks against which the employee's
performance will be evaluated.
2. Communicating standards: Once the performance standards are set,
they need to be communicated to the employees. Employees should
have a clear understanding of what is expected of them in terms of job
performance and behaviour.
3. Measuring standards: During the appraisal period, supervisors or
managers observe and collect relevant data on an employee's
performance. This can include feedback from colleagues, self-
assessments, records of accomplishments, and other performance-
related metrics.
4. Comparing standards: After gathering performance data, a
comparison is made between the actual performance of the employee
and the predetermined performance standards. This comparison helps
in identifying the gaps or areas of excellence.
5. Discussing results: The appraisal results are communicated to the
employees in a structured performance review meeting. This is an
opportunity for the employee to receive feedback on their strengths
and weaknesses, discuss their performance, and seek clarification on
any aspects of the appraisal.
6. Taking corrective actions: If there are areas where the employee's
performance falls short of the standards, corrective actions are
suggested. These actions may include providing additional training,
coaching, or setting new performance goals to improve future
performance.
Methods Of Performance Appraisal
Traditional method:
Ranking Method
The ranking method is possibly one of the oldest employee
performance appraisal methods. The process involves assessing an
employee according to a set of parameters compared to all the other
employees. Essentially, this places them in order of the most to the
least productive.
Paired Comparison
This method involves comparing employees against each other,
meaning one-on-one. This method traditionally selects a particular trait
on which to focus. The process is quite simple. The designated 'rater'
selects slips with two names on them, then proceeds to mark the one
they believe is the better one. The number of times the employee's
name gets marked for specific traits decides how high up on the list
they will be.
Checklist Method
Managers are provided with a set of questions. The questions can be
yes/no type, statements, or even multiple-choice questions. The
respondents can then select how much or how little they agree with
that statement.
Essay Appraisal
Another traditional performance appraisal method is essay appraisal.
Here, a manager draws out a relatively detailed essay about an
employee's performance. Several questions could be presented to the
manager, who would then reflect the employees' performance in a
written report. These types of appraisals generally address quite a few
aspects of an employee's contribution in their role.
Critical Incidents Method
This employee performance appraisal method focuses on fundamental
behaviors that impact how a job is carried out. Critical incidents refer
to incidents that either positively or negatively affect how a job function
is performed. For example, in customer service, 'level of empathy'
could be on the list.
Field Review Method
The human resources department may question a manager's review
and conduct an accurate assessment through an interview. The team
assesses the employee's abilities and talents, reducing the weightage
of the manager's review. However, this method is generally not widely
used due to concerns about staff interference and time-
consumingness.
Modern Method
Motivation by objectives (MBO)
Management by objectives is a common performance appraisal
method in modern corporate settings, consisting of four steps:
assigning personalized goals, determining evaluation parameters,
comparing goals to agreed standards, and conducting periodic reviews
to assess employees' development.
Assessment Center Method
An Assessment Center is a unique performance appraisal method
where employees are evaluated by managers at a specific center,
focusing on group and individual tasks. However, it is costly and may
not accurately reflect long-term performance.
360-Degree Performance Appraisal Method
The 360-degree appraisal involves multiple people, including team
members, managers, and juniors, to evaluate an employee's
performance. However, it can be time-consuming and may involve quid
pro quo, where employees give similar reviews to each other.
Motivation
Motivation refers to the psychological forces that drive and influence
individuals to take action, persist in their efforts, and achieve specific
goals. It is the inner state that energizes, directs, and sustains behaviour
towards accomplishing desired outcomes.
Types of Motivation

Classification on the basis of Reward

1. Financial: Financial incentives are the monetary benefits provided to
an employee in the form of higher pay, bonus, commission etc.
2. Non financial: Non-financial incentives are the non-monetary
benefits such as greater decision-making authority, better designation
etc.
Classification on the basis of Approach
1. Positive Motivation: Positive motivation implies creation of an
environment in which an individual can satisfy his needs and
aspirations. It can be rewards and appreciation for their best
performance.
2. Negative motivation: Negative motivation involves creating a sense
of hear or unhealthy environment. It can be issue of memo, pay cut,
imposing fine or penalty. Negative motivation creates detachment
between the individuals and the organisation leads to lack of integrity
to the purpose.
Classification on the basis of Nature
1. Intrinsic motivation: Intrinsic motivation occurs on job and provides
satisfaction while the job is being performed. Intrinsic motivators
include status, authority, preparation, variety in works, greater
opportunity for advancement in job.
2. Extrinsic motivation: Extrinsic motivators do not occur on the job but
around the job. Extrinsic reward may be direct which are linked with
performance like pay allowance bonus and indirect compensation like
free housing, conveyance etc. Generally direct compensation is more
effective motivator than indirect compensation.Extrinsic rewards
maintains the employee where as intrinsic rewards motivate him.
Maslow's theory of hierarchical needs
Maslow's hierarchy is a content-based motivational theory. It outlines a
few basic needs a person wants to fulfil before progressing to more
complex needs. This hierarchy categorises needs into five levels:
Physiological: An individual's basic physiological needs are water,
shelter, clothing and food. In a work setting, an employee's salary may
fulfil their physiological needs.
Safety: This level refers to a feeling of protection that individuals
experience. This need may align with an employee's expectation of job
security.
Socialisation: To meet socialisation needs, employees may develop
friendships at work to create a sense of belonging for themselves.
Management can fulfil this need by creating opportunities for
employees to bond, by hosting company lunches and team-building
activities.
Esteem: Employees often reach this level by receiving recognition,
which can help them feel confident in their work and increase their self-
esteem. Recognising a professional's achievements and providing
positive feedback are two methods that can help build their self-
esteem.
Self-actualisation: To reach this level, employees may try to achieve
complex, long-term professional or personal goals. Self-actualised
employees can motivate themselves to complete workplace goals
effectively.
Theory X & Theory Y
Douglas McGregor, the eminent social psychologist, divides
management style into two contrasting theories –
Theory X
This theory believes that employees are naturally unmotivated and
dislike working, and this encourages an authoritarian style of
management. According to this theory, management must firmly
intervene to get things done. This style of management concludes that
workers –
• Disfavor working.
• Abstain responsibility and the need to be directed.
• Need to be controlled, forced, and warned to deliver what's
needed.
• Demand to be supervised at each and every step, with controls
put in place.
• Require to be attracted to produce results, else they have no
ambition or incentive to work.
Theory Y
This theory explains a participative style of management, that is,
distributive in nature. It concludes that employees are happy to work,
are self-motivated and creative, and enjoy working with greater
responsibility. It estimates that workers –
• Take responsibility willingly and are encouraged to fulfill the goals
they are given.
• Explore and accept responsibility and do not need much
guidance.
• Assume work as a natural part of life and solve work issues
imaginatively.
ERG Theory of Motivation
To bring Maslow’s need hierarchy theory of motivation in
synchronization with empirical research, Clayton Alderfer redefined it
in his own terms. His rework is called as ERG theory of motivation. He
recategorized Maslow’s hierarchy of needs into three simpler and
broader classes of needs:
• Existence needs- These include need for basic material
necessities. In short, it includes an individual’s physiological and
physical safety needs.
• Relatedness needs- These include the aspiration individual’s have
for maintaining significant interpersonal relationships (be it with
family, peers or superiors), getting public fame and recognition.
Maslow’s social needs and external component of esteem needs
fall under this class of need.
• Growth needs- These include need for self-development and
personal growth and advancement. Maslow’s self-actualization
needs and intrinsic component of esteem needs fall under this
category of need.
McClelland's theory of needs
This is a content-based theory and it affirms that humans have three
motivational drivers, regardless of age or gender. One of the three
drivers may be dominant in every human being, depending on their life
experiences. The three drivers are:
• Achievement: People who thrive on achievement may have a
powerful urge to set and achieve goals and take calculated risks
during the process. They may expect feedback,
acknowledgement and appreciation for their work and may prefer
to work alone.
• Affiliation: People who thrive on affiliation favour collaboration
and may prefer to work in a group. They would want team
members and colleagues to like them and may side with the
majority to do what a larger portion of the group insists on.
• Power: People who thrive on power may show tendencies to
control and influence others and win arguments. They may be
highly competitive and may enjoy status and recognition.
Herzberg's two-factor theory
Herzberg's two-factor theory is a content-based theory. It describes
two sets of factors that may lead to either satisfaction or dissatisfaction.
Herzberg defines the factors that lead to satisfaction or dissatisfaction
as hygiene and motivating factors:
Hygiene factors: These are factors affecting satisfaction, relating to
working conditions, professional relationships, office policies, rules of
conduct and attitudes of supervisors. Improving a few or all hygiene
factors can help decrease dissatisfaction and improve motivation
among employees.
Motivating factors: Factors like professional achievements, recognition,
responsibility and career and personal growth are motivating factors for
professionals. Addressing these factors increases job satisfaction.
Vroom's expectancy theory
Vroom's expectancy theory is a process-based motivation theory which
assumes that an individual's behaviour results from the conscious
choices they make from multiple available alternatives. Individuals
make specific choices believing that they may guarantee more
satisfaction and comfort. Vroom's theory suggests that an individual
gets motivation from the following three factors:
• Expectancy is an individual's belief that the harder they work,
their chances of success increases.
• Instrumentality is an individual's belief that they may receive a
reward if they meet performance expectations.
• Valence is the importance an individual places on an expected
outcome.
Job Analysis
Job analysis is a systematic process of gathering and analysing
information about a job to understand its duties, responsibilities,
requirements, and conditions. Job analysis results in various outputs,
including a job description, job specification, and other relevant
information. Let's focus on the components of a job description as
mentioned in your list:
Job Description:
1. Job Title: The official name or title of the job, which provides a clear
identification of the position within the organization.
2. Job Location: The physical location where the job is based or the
primary workplace for the position.
3. Job Summary: A brief and concise overview of the key purpose and
objectives of the job. It describes the main responsibilities and the
overall function of the position.
4. Reporting To: The job title or position to which the incumbent
directly reports. This information clarifies the hierarchy and chain of
command within the organization.
5. Job Duties: A detailed list of specific tasks and responsibilities that
the employee in the position is expected to perform. Job duties outline
the core functions of the job and help provide a clear understanding of
the job's scope.
6. Machines to Use: If the job requires the use of specific machinery or
equipment, this section identifies the tools, machines, or technology
that employees need to operate or handle as part of their job duties.
7. Hazards: This section highlights any potential hazards or risks
associated with the job. It includes information about physical risks,
health hazards, or any other safety concerns related to the job role.
Job descriptions play a crucial role in the recruitment and selection
process, performance management, training and development, and
overall workforce planning within an organization. They provide a clear
and comprehensive understanding of the job, ensuring that employees
and employers have a common understanding of job expectations and
responsibilities.
Job specifications:
1.Qualifications: The educational background and academic credentials
required for the job. This may include degrees, certifications, licenses,
or any other specific qualifications needed for the position.
2.Experience: The amount and type of relevant work experience
required to perform the job effectively. It may specify the number of
years of experience or the type of previous roles that are desirable.
3.Training: Any specialized training or certifications necessary to carry
out the job responsibilities. This could include technical training, safety
training, or other specific skills development programs.
4.Skills: The specific skills and competencies required for the job. This
could include technical skills, soft skills, language proficiency, computer
skills, or any other abilities essential for success in the role.
5.Responsibilities: A detailed list of the key responsibilities and tasks
that the job entails. This section outlines the primary job duties and
areas of responsibility that the employee will be expected to handle.
6.Emotional Characteristics: Certain emotional or personality traits that
are necessary to perform the job effectively. This might include qualities
like leadership, teamwork, communication, problem-solving,
adaptability, or other interpersonal skills.
7.Sensory Demands: Any specific sensory requirements for the job,
such as visual acuity, hearing ability, or other sensory skills necessary to
carry out job duties.
Steps in Job analysis
The steps in a comprehensive job analysis process typically include the
following:
1. Collecting and Recording Job Information: The first step is to gather
detailed information about the job. This is typically done through
various data collection methods, such as interviews, questionnaires,
observations, and reviewing existing documents. The goal is to capture
all relevant information about the job's tasks, responsibilities,
requirements, and working conditions.
2. Checking the Job Information for Accuracy: Once the data is
collected, it is essential to review and verify the accuracy of the
information. This step involves cross-checking the data with multiple
sources and seeking feedback from employees and supervisors who
have knowledge of the job.
3. Writing Job Descriptions Based on Information: Using the collected
and verified data, HR professionals create a comprehensive job
description. The job description includes a clear and concise summary
of the job's purpose, essential duties, responsibilities, reporting
relationships, working conditions, and other relevant details.
4. Determining Skills and Abilities: After developing the job description,
the next step is to identify the specific skills, knowledge, and abilities
required to perform the job successfully. This helps in creating job
specifications that will guide the recruitment and selection process.
5. Updating the Information from Time to Time: Job analysis is not a
one-time activity. Jobs and organizational needs may change over time
due to factors such as technological advancements, changes in industry
trends, and organizational restructuring. Therefore, it is essential to
review and update the job analysis information periodically to ensure
its relevance and accuracy.
Job design
Job design is the process of structuring and organizing job roles and
responsibilities to improve efficiency, productivity, and job satisfaction.
It involves determining the tasks, duties, and relationships within a job
to achieve specific organizational objectives and meet the needs of
employees. The steps in job design include:
1.Job Information: The first step in job design is to gather relevant
information about the job. This includes understanding the purpose of
the job, its objectives, and its overall importance within the
organization.
2.Job Analysis: Job analysis is a detailed examination of the tasks,
duties, and responsibilities involved in a particular job. It helps in
understanding the key components of the job, the skills required, and
the physical and mental demands placed on the employee.
3.Develop the Plan: Based on the information gathered from job
analysis, the next step is to develop a job design plan. This involves
determining how the tasks and responsibilities will be organized, the
reporting relationships, and any changes or improvements needed to
enhance job efficiency and effectiveness.
4. Implementation: Once the job design plan is developed, it is put into
action. This involves communicating the changes to the employees and
making any necessary adjustments to the work environment or
procedures to support the new job design.
Techniques of job design:
Job design techniques are methods used by organizations to improve
job effectiveness, employee satisfaction, and overall productivity. Here
are the techniques of job design:
1. Job Simplification: Job simplification involves breaking down complex
tasks into simpler, smaller tasks. It aims to make jobs more manageable
and easier to perform by reducing the number of different tasks an
employee needs to complete. However, it may lead to monotonous and
repetitive work, which could result in lower job satisfaction.
2. Job Rotation: Job rotation involves periodically moving employees
from one job to another within the organization. This technique allows
employees to gain exposure to different tasks and roles, which can
enhance their skills, knowledge, and versatility. Job rotation also helps
in reducing boredom and monotony, leading to increased employee
engagement.
3. Job Enrichment: Job enrichment aims to make jobs more challenging
and fulfilling by adding more meaningful and autonomous tasks. It
involves giving employees more control over their work and providing
opportunities for skill development and decision-making. Job
enrichment can increase employee motivation and job satisfaction.
4. Job Enlargement: Job enlargement involves expanding the scope of
a job by adding more tasks and responsibilities of similar complexity.
This technique aims to provide employees with a wider variety of tasks,
reducing boredom and monotony. However, it may not necessarily
increase job satisfaction if the additional tasks are not challenging or
meaningful.
5. Self-Directed Teams: Self-directed teams are groups of employees
who have the authority and responsibility to manage their own work
processes and make decisions collectively. This technique fosters
collaboration, empowerment, and shared accountability among team
members. Self-directed teams can enhance creativity, problem-solving,
and employee satisfaction.
Recruitment
Recruitment refers to the process of identifying, attracting, and
selecting qualified individuals to fill job vacancies within an
organization. It is a crucial function of human resource management
and involves sourcing potential candidates, evaluating their
qualifications, and ultimately hiring the most suitable individuals to
meet the organization's staffing needs.
Factors Affecting Recruitment:
Internal Factors:
1.Company's Pay Package: The compensation and benefits offered by
the organization influence its ability to attract and retain talented
candidates. Competitive pay packages are more likely to attract high-
quality applicants.
2.Quality of Work-Life (QWL): A positive work environment, work-life
balance, and employee-friendly policies enhance the organization's
reputation and attractiveness to potential candidates.
3.Organizational Culture: The culture and values of the organization
play a significant role in attracting candidates who align with the
company's mission and vision.
4.Career Planning: Opportunities for growth, career advancement, and
professional development within the organization attract ambitious
candidates looking for long-term career prospects.
5.Company Size: The size of the organization can impact recruitment.
Large companies may have more job openings and resources for
recruitment, while small companies may offer a more personalized
work experience.
6.Company's Products: The nature of the products or services the
organization offers may influence the kind of talent it needs to hire.
7.Company's Growth Rate: Rapidly growing organizations may have
more job opportunities and may need to recruit talent quickly to meet
their expansion needs.
8.Cost of Recruitment: The budget allocated for recruitment activities
can affect the methods and extent of recruitment efforts undertaken
by the organization.
External factors
External factors can significantly influence an organization's human
resource management practices and decisions. Here are the external
factors mentioned, along with brief explanations:
1. Socio-Economic Factors: Socio-economic factors refer to the social
and economic conditions prevailing in a particular region or country.
These factors can include the overall economic growth, income levels,
education, and societal norms. Socio-economic conditions impact an
organization's ability to attract and retain talent, influence
compensation structures, and shape employee expectations.
2. Supply and Demand Factors: Supply and demand factors in the
labour market play a crucial role in human resource planning and
recruitment. A high demand for specific skills or expertise may lead to
talent shortages, making it challenging to fill certain job roles.
Conversely, oversupply of certain skills may result in a more competitive
recruitment landscape.
3. Employment Rate: The employment rate reflects the percentage of
the working-age population that is employed. A high employment rate
may indicate a tight labor market, making it harder for organizations to
find qualified candidates. On the other hand, a low employment rate
may suggest an abundance of job seekers, offering more options for
employers.
4. Labor Market Conditions: Labor market conditions encompass
various factors, including the level of competition for talent, prevailing
wage rates, industry trends, and the overall availability of skilled
workers. These conditions influence an organization's recruitment and
compensation strategies.
5. Reservation for SC/ST: In some countries, including India, there are
reservations for certain disadvantaged groups like Scheduled Castes
(SC) and Scheduled Tribes (ST) in public sector jobs and educational
institutions. Such reservations affect the hiring practices of
organizations and may require them to have specific diversity and
inclusion strategies.
6. Information System: The availability and use of information systems,
including technology and data analytics, can impact HR decision-
making. Robust information systems can assist in workforce planning,
talent management, performance evaluation, and other HR functions.
Career planning
Career planning refers to the process of setting and achieving specific
career goals through a structured and continuous approach. It involves
analysing one's interests, skills, and strengths, as well as understanding
the opportunities and challenges in the job market. The ultimate aim of
career planning is to create a roadmap that aligns an individual's
aspirations with their chosen career path, allowing them to make
informed decisions and progress towards their desired professional
outcomes.
Features of career planning include:
1. Collective responsibility: Career planning is not solely the
responsibility of the individual but can also involve guidance and
support from mentors, career counsellors, and employers.
2. Performed in a dynamic environment: Career planning takes into
account the ever-changing job market, industry trends, and
technological advancements, adapting the approach accordingly.
3. Bottom-up approach: It involves self-assessment and self-awareness,
allowing individuals to identify their interests, values, and strengths as
a foundation for shaping their career goals.
4. Continuous process: Career planning is not a one-time event but an
ongoing process that requires periodic evaluation and adjustment
based on changing circumstances and personal growth.
5. Develop skills: It helps individuals identify the skills and competencies
needed for their chosen career and outlines steps to acquire or
enhance those skills.
6.Strengthen work-related activities: Career planning involves
strategizing ways to gain relevant work experience, internships, or
training to bolster one's qualifications.
7. Defines career abilities: It helps individuals assess their abilities,
potential career paths, and the necessary steps to achieve their long-
term objectives.
Objectives of career planning:
The objectives of career planning are designed to benefit both
employees and the organization as a whole. They include:
1. Identify positive characteristics of employees: Career planning aims
to recognize the unique strengths, skills, and talents of each employee.
Understanding these positive characteristics helps in aligning
employees with roles that capitalize on their abilities, leading to higher
job satisfaction and productivity.
2. Develop awareness about each employee's uniqueness: Career
planning involves assessing the individuality of each employee,
including their interests, aspirations, and personal goals. This
awareness allows for personalized career development plans tailored
to the specific needs and ambitions of each employee.
3. Respect the feelings of other employees: Career planning fosters an
inclusive and supportive work environment where employees'
opinions, aspirations, and concerns are acknowledged and respected.
This leads to increased job satisfaction and employee loyalty.
4. Attract talented employees to the organization: A well-structured
career planning program can enhance the organization's reputation as
an employer that values employee growth and development. This can
attract top talent and make the organization more competitive in the
job market.
5. Train employees towards team-building skills: Career planning often
involves providing training and development opportunities to improve
employees' soft skills, including communication, collaboration, and
teamwork. Strengthening these skills enhances the overall
cohesiveness and efficiency of teams within the organization.
6. Create healthy ways of dealing with conflicts, emotions, and stress:
Career planning includes promoting emotional intelligence and
equipping employees with coping mechanisms to handle conflicts and
stress in a constructive manner. This contributes to a positive work
culture and reduces workplace tension.
e employee’s career too.
Benefits of Employee Separation
Separation is not necessarily a negative process. Besides it may benefit
organization and employees in following ways:
To Organizations
• It enables a reduction in labour costs
• Replacement of the poor performers
• It increases opportunities for diversification and enhancement
• New recruits bring synergy within the organization
• Results in a disciplined work environment
• Reshape organization into the right size
To Employees
• Better career opportunities
• Get away from a troublesome workplace
• Enjoy benefits associated with retirement schemes
Types of Employee Promotion
It involves an increase in salary, position, responsibilities, status, and
benefits. This aspect of the job drives employees the most—the
ultimate reward for dedication and loyalty towards an organization.
1. Horizontal Promotion:
This kind of promotion rewards an employee with a pay increase but
little to no change in responsibilities. It is also regarded as an up-
gradation of an employee. In the educational sector, an example of this
is the move from lecturer to senior lecturer.
2. Vertical Promotion:
This refers to an upward movement of employees with a change in skills
and experience. It brings a change in salary, responsibility, status,
benefits, etc. In the marketing industry, this can be the promotion of a
marketing supervisor to the marketing manager.
Due to its nature, it can change the nature of the job as well. This can
be a shift from functional head to the chief executive, both being very
different jobs.
3. Dry Promotion:
A Promotion that employees aren’t particularly fond of. This promotion
refers to an increase in responsibilities and status without the benefits.
It means no increase in pay or any financial benefits for that matter.
4. Open and Closed Promotion:
Open Promotion is a situation wherein every individual of an
organization is eligible for the position. Closed Promotion is a situation
wherein only selected team members are eligible for a promotion.
What is the Kirkpatrick Model?
The Kirkpatrick Model of evaluation is the best-known model for
analysing and evaluating the effectiveness and results of employee
training programs. It takes into account the style of training, both
informal or formal, and rates them against four levels of criteria:
Reaction of the learner and their thoughts on the training program.
Learning and increase in knowledge from the training program.
Behaviour change and improvement after applying the learnings on the
job.
Results that the learner’s performance has on the business.
Understanding the Four Levels of Kirkpatrick Model
The four levels of the Kirkpatrick Model are:
• Reaction
• Learning
• Behavior
• Result
Implementing the Kirkpatrick Model requires planning. Before creating
your next training program, you should intimately know the four levels
of the Kirkpatrick Model to be in a solid position to record meaningful
data and understand the effectiveness of your training programs.
Level 1: Reaction
The first level of the Kirkpatrick model is reaction.
The reaction level is learner-focused and helps understand how
employees want to learn. This makes your training efforts more
effective because training is received better when delivered according
to learners’ preferences.
The objective for this level is straightforward – it measures whether the
learners find the training relevant to their job role, engaging, and
valuable.
There are three parts to the reaction phase:
• Satisfaction: Is the learner happy with what they learned in the
training?
• Engagement: How much did the learner engage and contribute to
the learning experience?
• Relevance: How much of the information acquired will employees
be able to apply in their job?
The reaction level is most commonly assessed by a post-training survey
(sometimes called a “smile sheet”) asking learners to rate their
experience.
The questions are designed to determine whether or not the learner
enjoyed their experience and if they found the training useful for their
work.
The areas that the survey should focus on are:
• Program objectives
• Course materials
• Content relevance
• Facilitator knowledge
Surveys are designed to help maintain the quality and effectiveness of
your training programs.
The post-training evaluations provide an in-depth understanding of the
value learners receive from the training, its impact, its effectiveness on
different cohorts of learners across the organization, and its ability to
adapt to different learning styles.
Level 2: Learning
Level 2 gauges the learning of each participant based on whether
learners have developed the intended knowledge, skills, attitude,
confidence, and commitment to the training.
Learning can be evaluated through both formal and informal methods.
Methods of evaluation include assessments (self-assessments and
team-assessments) or interviews.
Level 3: Behavior
One of the most crucial steps in the Kirkpatrick Model is the behavior
phase. It measures whether the learning truly impacted participants
and if they’re applying the learnings in their daily tasks.
This level analyzes the differences in the participant’s behavior at work
after completing the program, which helps determine if the knowledge
and skills the program taught are being used in the workplace – and
what impact it has made.
Testing behavior is challenging as it is generally difficult to anticipate
when a trainee will start to properly utilize their learnings, making it
more difficult to determine when, how often, and how to evaluate a
participant post-assessment.
Level 4: Results
The results level of the Kirkpatrick Model, commonly regarded as the
program’s primary goal, is dedicated to measuring the overall success
of a training program. It measures learning against the organization’s
business outcomes (i.e your KPIs established at the start of the
training.)