BBA-112 Human Resource Management
BBA-112 Human Resource Management
The nature of Human Resource Management (HRM) encompasses several key aspects
that shape its role within organizations. Let’s delve into these characteristics:
1. Pervasive Force: HRM is an inherent part of every organization, present at all levels
of management. It permeates throughout the entire organizational structure,
impacting decision-making, policies, and practices.
2. People Oriented: At its core, HRM revolves around people. It focuses on acquiring,
developing, and retaining a skilled workforce. The well-being, growth, and
satisfaction of employees are central to HRM.
In summary, HRM is not merely administrative; it’s a dynamic force that shapes
organizational culture, productivity, and employee well-being. Its multifaceted nature
ensures that people remain at the heart of organizational success.
The scope of Human Resource Management (HRM) is indeed vast and multifaceted. It
encompasses a wide range of activities throughout the entire employment cycle. Let’s
explore the key dimensions of HRM’s scope:
1. Acquisition: HRM begins with manpower planning—ensuring that the right people
are recruited for various roles within the organization. This involves job analysis,
recruitment, and selection processes.
In summary, the scope of HRM covers everything from manpower planning to employee
departure. It encompasses acquisition, development, maintenance, and control of human
resources, all contributing to organizational effectiveness and success.
Let’s explore the objectives and functions of Human Resource Management (HRM):
Objectives of HRM:
1. Effective Utilization of Human Resources: HRM aims to ensure that the right
people are in the right roles, maximizing their potential and contributing to
organizational success.
Functions of HRM:
1. Planning: HRM involves manpower planning, which ensures that the organization
has the right number of employees with the necessary skills for current and future
needs.
In summary, HRM plays a crucial role in managing people effectively, aligning their skills
with organizational goals, and creating a positive work environment.
5. Multinational HR Roles:
o Global HR roles encompass all local HR functions but on a multinational
scale.
o From talent acquisition to talent management, financial services, and
human capital management (HCM), global HR ensures seamless operations
across diverse teams.
In summary, HRM’s adaptability, strategic focus, and responsiveness to global shifts are
critical for organizations aiming to thrive in today’s competitive world.
Strategic Human Resource Management (SHRM) is a process that empowers the human
resources department to maximize the potential of its workforce through several key
elements:
1. Strategic Planning: SHRM involves aligning HR practices with the overall strategic
objectives of the organization. It’s about thinking ahead, anticipating workforce
needs, and planning for the future.
In the past, HR management was primarily administrative, but today, HR professionals play
a critical role in ensuring that the organization has the right people to improve business
performance and fulfill its mission.
3. Workforce Diversity:
o India’s diverse culture and demographics present both opportunities and
challenges.
o HR professionals must manage diversity effectively, ensuring equal
opportunities and promoting cultural sensitivity.
5. Ethical Issues:
o HR managers face ethical dilemmas related to employee privacy, fairness,
and transparency.
o Balancing organizational interests with employee rights is crucial.
6. Globalization:
o Globalization impacts HR practices, including talent acquisition, cross-
cultural management, and international assignments.
o HR professionals must adapt to global trends while retaining local relevance.
Let’s delve into both acquiring human resources and human resource planning:
▪ Steps in HRP:
1. Assessing Current Employee Supply: Understanding the existing
workforce and their capabilities.
2. Forecasting Future Workforce: Estimating the number and type
of personnel needed in the coming months.
3. Balancing Labor Supply and Demand: Ensuring the right talent is
available when needed.
4. Creating Plans to Support Objectives: Developing strategies to
meet workforce requirements.
▪ Benefits of HRP:
❖ Optimum Utilization: Ensures efficient use of existing human
resources.
❖ Talent Alignment: Helps identify the right talent for specific
roles.
❖ Productivity and Profitability: A well-executed plan enhances
productivity and profitability.
Remember, effective human resource planning ensures that an organization has the right
people in the right roles, contributing to its success!
Let’s explore the concepts of job analysis and job design in the context of human
resource management (HRM):
1. Job Analysis:
o Definition: Job analysis involves comprehending, identifying, and deciding
the duties, roles, responsibilities, and other specifications of a particular job
profile.
o Purpose:
▪ Recruitment and Selection: Job analysis helps recruiters understand
the characteristics required for satisfactory job performance in a
specific workplace environment.
▪ Compensation Management: It informs decisions related to
compensation and benefits.
▪ Orientation, Training, and Development: Job analysis guides training
programs by identifying necessary skills and qualifications.
▪ Placement and Socialization: Matching employees to suitable roles.
▪ Employee Safety and Welfare: Assessing occupational hazards.
▪ Performance Appraisal: Setting performance standards.
▪ Employee Counselling: Understanding job-related challenges.
▪ Strategic Planning and Management of Human Resources: Aligning
workforce needs with organizational goals.
2. Job Design:
o Definition: Job design is the process of creating new jobs or adding duties to
existing ones.
o Importance:
▪ Efficiency: Well-designed jobs enhance productivity.
▪ Employee Satisfaction: Properly designed roles lead to job
satisfaction.
In summary, job analysis provides the groundwork by defining job profiles, while job design
takes those profiles and structures work activities and responsibilities to achieve
organizational goals.
Let’s delve into the concept of rightsizing in the context of human resources
management (HRM).
1. Definition of Rightsizing:
o In HRM, rightsizing refers to the process of managing an organization’s
changing needs. Economic conditions often force companies to reevaluate
their workforce and allocate resources more efficiently.
o It’s essential to understand that rightsizing is not about eliminating jobs
arbitrarily. Instead, it involves adjusting the organizational structure to meet
new business objectives while maintaining overall effectiveness.
2. Difference Between Rightsizing and Downsizing:
o Downsizing: This process involves reducing the number of employees to cut
costs and maintain profits. Companies downsize to avoid going out of
business.
o Rightsizing: Unlike downsizing, rightsizing focuses on achieving business
goals by optimizing profits. It doesn’t necessarily impact overall headcount
numbers. Instead, it aims to create a well-balanced and effective
organizational structure.
3. Methods of Rightsizing:
o Drivers Analysis: Analyzing the primary factors behind business operations
helps determine the necessary workforce size. For instance, understanding
success drivers (such as the number of clients, project volume, and required
skills) guides workforce planning.
o Ratio Analysis: Organizations use ratios (e.g., productivity ratio) to assess
resource utilization. By analyzing labor, material, and sales variables, they
plan necessary restructuring.
2. Sourcing Candidates:
o Once the job description is ready, the next step is sourcing candidates.
o Sourcing involves actively seeking out potential candidates who possess the
necessary qualifications.
o Two main sourcing methods:
▪ Internal Candidate Sources: Recruiting from within the organization
can boost productivity, job satisfaction, and reduce attrition rates.
▪ External Candidate Sources: Reaching out to external talent pools
through various channels (e.g., job boards, social media, referrals).
o Effective sourcing ensures a diverse pool of candidates.
3. Screening and Shortlisting:
o Recruiters review applications and resumes to shortlist potential candidates.
o Phone screenings or initial interviews help assess suitability.
o Shortlisting involves narrowing down the candidate pool based on
qualifications and alignment with job requirements.
4. Interviewing Candidates:
o Interviews are critical for evaluating candidates.
o Different interview formats (e.g., behavioral, technical, panel) help assess
skills, cultural fit, and motivation.
o The goal is to select the most suitable candidate for the role.
6. Onboarding:
o Once the candidate accepts the offer, the onboarding process begins.
o Onboarding includes orientation, paperwork, and integrating the new hire
into the organization.
Remember, effective recruitment not only fills positions but also contributes to an
organization’s long-term success and growth. Crafting captivating job descriptions,
sourcing strategically, and conducting thorough assessments are key to successful talent
acquisition.
Let’s delve into the two main sources of recruitment: internal and external. These
sources play a crucial role in acquiring human resources for an organization.
Internal Sources of Recruitment
2. How It Works: Think of this as a promotion or lateral movement motivator for your
employees. Vacant job postings are typically communicated to colleagues through
internal job boards, word of mouth, intranets, wikis, or other communication
channels.
3. Advantages:
o Upward Growth: Motivates skilled employees with the promise of career
advancement.
o Reduced Turnover: Internal promotions can reduce employee turnover.
o Cost-Effective: Minimizes recruitment and training costs.
o Cultural Fit: Ensures that vacant positions are filled by candidates who
understand the company culture.
o Morale Boost: Improves overall job satisfaction and morale within the team.
o Self-Development: Encourages self-development among existing
employees.
o Training Opportunities: Promotes training and development.
4. Disadvantages:
o Lack of Fresh Ideas: Fewer new ideas and alternative solutions introduced
to existing operations.
o Missed External Talent: Better quality external candidates may be
overlooked.
o Fit for New Role: Promoted employees may not always possess the best
qualities for their new roles.
3. Benefits:
o Fresh Perspectives: External candidates bring new ideas and diverse
viewpoints.
o Access to Top Talent: Attracts highly qualified candidates.
o Skill Diversity: Enhances the skill set within the organization.
o Business Growth: Facilitates the acquisition of fresh talent for expansion.
4. Challenges:
o Higher Costs: External recruitment can be more expensive.
o Longer Onboarding: New hires take time to adapt to the company culture.
o Risk of Misfit: External candidates may not always fit seamlessly into the
existing team.
Remember, a balanced approach that combines both internal and external sources can
yield the best results in building a strong and diverse workforce for your organization.
1. What is E-Recruitment?
o E-recruitment involves various procedures for attracting, evaluating,
selecting, recruiting, and onboarding job prospects through online channels.
o It is also referred to as e-staffing, e-resourcing, or e-hiring.
o Tools like e-mail, online job boards, and career websites are used to
communicate with job seekers.
o The goal is to find the best talent quickly and efficiently.
o E-recruitment can be used for all types of positions, from entry-level jobs to
executive roles.
2. Advantages of E-Recruitment:
o Wider Reach: Employers can access a larger pool of candidates.
o Cost-Effective: Eliminates the need for traditional newspaper
advertisements.
o Targeted Search: Allows employers to search for candidates with specific
skills or experience.
o Campaign Tracking: Employers can track recruitment campaign progress
and assess channel performance.
3. Elements of E-Recruitment:
o Job Postings: Common form of e-recruitment where requirements and
application instructions are listed.
o Online Job Boards: Websites listing job postings from multiple companies.
o Career Websites: Company-specific websites with job postings and
additional information.
o Social Media: Platforms like LinkedIn and Twitter can be used for e-
recruitment.
Remember, e-recruitment streamlines the hiring process, making it efficient and effective
for organizations seeking top talent.
The selection process in human resource management (HRM) involves several crucial
steps to ensure the right candidates are chosen for a job. Let’s explore these steps:
1. Criteria Development:
o Before reviewing any résumés or conducting interviews, it’s essential to
define clear criteria for selection.
o These criteria should be directly related to the job analysis and job
specifications.
o Consider aspects like skills, abilities, and personal characteristics required
for success in the role.
o By establishing criteria upfront, fairness in selecting interviewees is ensured.
2. Job Posting:
o Once criteria are developed, the job opening is posted.
o This step includes advertising the position on various platforms such as
online job boards, company career websites, and social media.
o Potential candidates learn about the opportunity and submit their
applications.
4. Preliminary Interviews:
o These initial interviews help assess candidates’ suitability.
o They may be conducted over the phone or via video calls.
o Preliminary interviews allow HR professionals to gauge communication
skills, motivation, and alignment with the organization.
5. Assessment:
o Depending on the role, additional assessments may be used.
o These can include aptitude tests, personality assessments, or work samples.
o Assessments provide deeper insights into candidates’ abilities and potential
fit.
6. Employment Interview:
o The main interview stage involves face-to-face interactions.
o Structured interviews with well-prepared questions help evaluate
candidates’ competencies, experience, and cultural fit.
o Interviewers assess both technical skills and behavioral aspects1.
7. Reference Check:
o Contacting references provides valuable information about a candidate’s
past performance, work ethic, and reliability.
o References may include previous supervisors, colleagues, or professors.
8. Medical Examination:
o Some organizations require a medical examination to ensure candidates
meet health and fitness standards.
o This step is particularly relevant for physically demanding roles or safety-
sensitive positions.
Remember, a thorough and fair selection process is crucial to hiring the right person for the
job. It not only saves costs but also contributes to organizational success.
2. Achievement Tests:
o These tests assess how well a candidate can achieve specific targets.
o Past experience often helps candidates satisfy recruiters.
3. Intelligence Tests:
o Intelligence levels of employees are determined through these tests.
4. Performance Tests:
o These evaluate whether employees perform well in practical scenarios.
6. Aptitude Tests:
o Determine a candidate’s interest in the job.
7. Psychological Tests:
o Assess the psychological strength of candidates.
o Candidates who remain calm and composed tend to perform better.
Remember, the choice of tests depends on the organization’s needs and the specific job
requirements. Each test serves a unique purpose in identifying the right fit for the role.
Placement is a crucial step in the process of acquiring human resources. Let’s explore
what it entails:
1. Definition of Placement:
o Placement refers to the actual posting of an employee to a specific job within
an organization.
o After the selection process is complete, the newly employed individual is
assigned to a particular department or role.
o Placing the right person in the right job is as essential as hiring the right
candidate.
o During the initial period, many organizations place new employees on
probation to assess their suitability and alignment with organizational
requirements1.
2. Characteristics of Placement:
o Human Resource Activity: Placement is a vital activity within an
organization’s HR function.
o Individualized Approach: It involves understanding and capitalizing on each
person’s unique abilities and qualifications.
o Optimal Matching: Once managers establish individual profiles, they can
optimally match people to available jobs.
o Comfort and Fit: Effective placement ensures that employees feel
comfortable in their new roles and that their job aligns with what was
promised during selection1.
3. Essence of Placement:
o Matching Requirements: Placement involves aligning job requirements with
candidate qualifications.
o Rank and Responsibility: It assigns specific ranks and responsibilities to
individuals.
o According to Pigors and Myers, placement is about matching what the
supervisor believes the new employee can do with what the job demands,
imposes, and offers1.
2. Induction Procedure:
o Organizations aim to smoothly integrate new employees. This can be
achieved through formal or informal placement orientation programs.
o Key steps in the induction procedure include:
1) Reporting Time and Place: New employees should receive clear
instructions on when and where to report.
2) Welcome by Supervisor: Immediate supervisors should personally
greet and welcome the employee.
3) Administrative Tasks: Complete administrative work promptly,
including conveying information about vacations, probationary
periods, and medical leave.
4) Departmental Orientation: This involves acquainting the employee
with the department, colleagues, job functions, and grievance
channels.
5) Printed Material: Verbal explanations are supplemented by printed
materials like employee handbooks, manuals, and house journals.
6) Orientation Checklist: The supervisor ensures all necessary
orientation steps are covered2.
4. Components of Induction:
o Preparation and Planning: Collaborate to plan the induction process.
o Welcome and Introduction: Greet the new employee warmly.
o Paperwork and Documentation: Complete necessary paperwork.
o Company Policies and Procedures: Explain rules and policies.
o Training and Skill Development: Provide necessary training.
o Benefits and Compensation: Familiarize employees with compensation
and benefits.
o Workplace Tour: Introduce them to the physical environment.
o Team Integration: Facilitate interaction with colleagues3.
Remember, effective induction ensures a positive start for new employees, fostering
engagement and productivity
A skills inventory in human resources refers to an internal company resource used by the
HR department. It’s essentially a database that meticulously documents and tracks the
capabilities and experience of employees within the organization. Let’s delve into the
details:
1. What Is a Skills Inventory?
o A skills inventory is a comprehensive and fluid list that includes
various aspects:
▪ Skills: Both technical and soft skills.
▪ Education: Academic qualifications.
▪ Experiences: Work-related experiences.
▪ Capabilities: Abilities relevant to job roles.
o The inventory provides a snapshot of the workforce’s competencies.
o Recognizing Gaps:
▪ Skills inventories help identify gaps within the workforce.
▪ Imagine a company with only one employee skilled in coding.
Instead of training existing employees, the HR team might plan
to hire a team of professional coders.
▪ Recognizing these gaps allows the company to strategically
enhance its capabilities.
o Succession Planning:
▪ Skills inventories play a crucial role in succession planning.
▪ By understanding employees’ skills and potential, HR
professionals can identify suitable candidates for key roles
when succession is necessary.
Remember, a well-maintained skills inventory empowers HR professionals to make
informed decisions regarding talent acquisition, development, and deployment within the
organization.