Bhagwan Mahavir College of Commerce and

Management Studies

Course: SYBMS

Subject: HUMAN RESOURCE MANAGEMENT

Chapter: INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

Prepared By: MS. KHUSHBOO LALWANI

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Table of Contents
HUMAN RESOURCE MANAGEMENT ....................................................................................... 6

Concept of Human Resource Management ...................................................................................... 6

Definitions ....................................................................................................................................... 6

Objectives of Human Resource Management .................................................................................. 7

Features of HRM ............................................................................................................................. 8

Scope of HRM ................................................................................................................................. 9

I. Human Resource Planning .................................................................................................... 9

I. Design of Organization and Job ............................................................................................. 9

II. Selection and Staffing ............................................................................................................ 9

III. Training and Development ................................................................................................ 9

IV. Organizational Development ............................................................................................. 9

V. Compensation and Benefits ............................................................................................... 9

VI. Employee Assistance ......................................................................................................... 9

VII. Union-Labour Relations ................................................................................................... 10

VIII. Personnel Research and Information System ................................................................... 10

Functions of HRM ......................................................................................................................... 11

1. Managerial Functions .......................................................................................................... 11

I. Human Resource Planning .................................................................................................. 11

II. Organising ........................................................................................................................... 11

III. Directing .......................................................................................................................... 11

2. Operative Functions................................................................................................................ 12

I. Procurement ....................................................................................................................... 12

II. Development ...................................................................................................................... 12

III. Compensation ................................................................................................................. 12

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IV. Maintenance ................................................................................................................... 12

QUALITIES OF HR MANAGER ................................................................................................. 13

As an Intellectual........................................................................................................................... 13

As an Educator .............................................................................................................................. 13

As a Discriminator ........................................................................................................................ 13

As an Executive ............................................................................................................................ 13

As a Leader ................................................................................................................................... 14

As a Humanist ............................................................................................................................... 14

As a Visionary............................................................................................................................... 14

EVOLUTION OF HRM ................................................................................................................ 15

Industrial Revolution Era............................................................................................................... 15

Trade Union Movement Era .......................................................................................................... 15

Social Responsibility Era ............................................................................................................... 16

Scientific management Era ............................................................................................................ 16

Human Relations Era..................................................................................................................... 17

Behavioral Science Era.................................................................................................................. 18

Systems approach Era.................................................................................................................... 18

Human Resource Management Era................................................................................................ 19

HRM POLICY .............................................................................................................................. 20

Originated Policies ........................................................................................................................ 20

Appealed Policies .......................................................................................................................... 20

Imposed Policies ........................................................................................................................... 20

General Policies ............................................................................................................................ 20

Specific Policies ............................................................................................................................ 20

Written or Implicit policies ............................................................................................................ 20

DIFFERENCE BETWEEN PERSONNEL AND HUMAN RESOURCE MANAGEMENT ......... 21

PREPARED BY: MS. KHUSHBOO LALWANI
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HUMAN RESOURCE INFORMATION SYSTEM (HRIS) .......................................................... 22

Meaning of HRIS .......................................................................................................................... 22

Benefits of HRIS ........................................................................................................................... 22

Limitations of HRIS ...................................................................................................................... 23

Types of information stored in HRIS ............................................................................................. 23

I. Personnel Administration .................................................................................................... 23

II. Salary Particulars ................................................................................................................ 23

III. Leave / Absence Recording: ............................................................................................ 23

IV. Skill Inventory................................................................................................................. 23

V. Medical History ............................................................................................................... 23

VI. Accident Monitoring: ...................................................................................................... 24

VII. Performance Appraisal .................................................................................................... 24

VIII. Training and Development .............................................................................................. 24

IX. HRP ................................................................................................................................ 24

X. Recruitment ........................................................................................................................ 24

XI. Career Planning: .............................................................................................................. 24

XII. Collective Bargaining: ..................................................................................................... 24

Steps/Process of implementing HRIS ............................................................................................ 25

I. Inception of Idea ................................................................................................................. 25

II. Feasibility Study ................................................................................................................. 25

III. Selection of Project Team ................................................................................................ 25

IV. Defining The Requirements ............................................................................................. 25

V. Vendor Analysis .............................................................................................................. 25

VI. Contract Negotiations ...................................................................................................... 25

VII. Training:.......................................................................................................................... 25

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VIII. Tailoring The System ...................................................................................................... 25

IX. Data Collection................................................................................................................ 25

X. Testing The System............................................................................................................. 25

XI. Starting Up: ..................................................................................................................... 26

XII. Parallel Running: ............................................................................................................. 26

XIII. Maintenance .................................................................................................................... 26

XIV. Audit ............................................................................................................................... 26

TECHNIQUES OF HRM .............................................................................................................. 27

Training and Development ............................................................................................................ 27

Compensation and Benefits ........................................................................................................... 27

Human Resource Planning: ........................................................................................................... 27

Selection and Staffing: .................................................................................................................. 27

Employee assistance/ Work environment ...................................................................................... 27

QUESTION BANK........................................................................................................................... 28

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HUMAN RESOURCE MANAGEMENT

Concept of Human Resource Management
Human Resource Management is a process of bringing people and organization together so that
the goals of each are met. It is the part of the management process which is concerned with the
management of human resources in an organization. It tries to secure best from the people by
winning their whole hearted co-operation. In short, it may be defined as the art of procurement,
developing and maintaining competent workforce to achieve the goals of an organization in an
effective and efficient manner.

The human resource refers to the knowledge, skills, abilities, values, aptitude and beliefs possessed
by the workforce in organization.

Definitions
“HRM encompasses those activities that are designed to provide for coordinate the human
resources of organizational”.

-Byars and Rue

“HRM is concerned with the most effective use of people to achieve organizational and individual
goals”.

-Invancevich and Glueck

“Planning, organizing, directing, controlling of procurement, development, compensation,

integration, maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”

-Edwin Flippo

“That part of management which is concerned with people at work and with their relationship
within an enterprise. Its aim is to bring together and develop into an effective organization of the

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men and women who make up enterprise and having regard for the well – being of the individuals
and of working groups, to enable them to make their best contribution to its success”.

-The National Institute of Personal Management (NIPM)

Objectives of Human Resource Management

1 Human capital: assisting the organization in obtaining the right number and types of employees
to fulfill its strategic and operational goals.

2 To develop organizational climate: Helping to create a climate in which employees are

encouraged to develop and utilize their skills to the fullest and to employ the skills and abilities
of the workforce efficiently.

3 Helping to maintain performance standards and increase productivity through effective job
design; providing adequate orientation, training and development, providing performance-
related feedback; and ensuring effective two-way communication.

4 To Promote Harmony: Helping to establish and maintain a harmonious relationship between

employer/employee.

5 Helping to create and maintain a safe and healthy work environment.

6 Developing programs to meet the economic, psychological, and social needs of the employees
and helping the organization to retain the productive employees.

7 Ensuring that the organization is in compliance with provincial/territorial and federal laws
affecting the workplace (such as human rights, employment equity, occupational health and
safety, employment standards, and labour relations legislation) to help the organization to
reach its goals.

8 To provide organization with well-trained and well-motivated employees.

9 To increase the employee’s satisfaction and self-actualization.

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10 To develop and maintain the quality of work life.

11 To communicate HR policies to all employees.

12 To help maintain ethical polices and behaviour.

Features of HRM
1 Pervasive Function: HRM is present in all the enterprises.

2 Action-Oriented: Scope of HRM is not only limited to record keeping.

3 People-Oriented: HRM is all about people at work, both as individuals and groups

4 Development-Oriented: HRM intends to develop the full potential of employees.

5 Integrated Function: Build relations between people working at various levels in the
organization.

6 Comprehensive Function: It covers all the type of personnel.

7 Auxiliary service: It is a staff function (Advice).

8 Inter-Disciplinary Function: Utilizing knowledge and inputs drawn from psychology, economics
etc.

9 Continuous Function: HRM is not a one shot deal.

10 Involves team sprit & team work.

11 Management function.

12 Helps in achieving goals i.e. individual, organizational & social objectives.

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Scope of HRM
I. Human Resource Planning: The objective of HR Planning is to ensure that the organization has
the right types of persons at the right time at the right place. It prepares human resources
inventory with a view to assess present and future needs, availability and possible shortages in
human resource. Thereupon, HR Planning forecast demand and supplies and identify sources
of selection. HR Planning develops strategies both long-term and short-term, to meet the man-
power requirement.
I. Design of Organization and Job: This is the task of laying down organization structure,
authority, relationship and responsibilities. This will also mean definition of work contents for
each position in the organization. This is done by “job description”. Another important step is
“Job specification”. Job specification identifies the attributes of persons who will be most
suitable for each job which is defined by job description.
II. Selection and Staffing: This is the process of recruitment and selection of staff. This involves
matching people and their expectations with which the job specifications and career path
available within the organization.
III. Training and Development: This involves an organized attempt to find out training needs of
the individuals to meet the knowledge and skill which is needed not only to perform current
job but also to fulfil the future needs of the organization.

IV. Organizational Development: This is an important aspect whereby “Synergetic effect” is

generated in an organization i.e. healthy interpersonal and inter-group relationship within the
organization.

V. Compensation and Benefits: This is the area of wages and salaries administration where wages
and compensations are fixed scientifically to meet fairness and equity criteria. In addition
labour welfare measures are involved which include benefits and services.

VI. Employee Assistance: Each employee is unique in character, personality, expectation and
temperament. By and large each one of them faces problems everyday. Some are personal
some are official. In their case he or she remains worried. Such worries must be removed to
make him or her more productive and happy.
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VII. Union-Labour Relations: Healthy Industrial and Labour relations are very important for
enhancing peace and productivity in an organization. This is one of the areas of HRM.

VIII. Personnel Research and Information System: Knowledge on behavioral science and industrial
psychology throws better insight into the workers expectations, aspirations and behavior.
Advancement of technology of product and production methods have created working
environment which are much different from the past. Globalization of economy has increased
competition many fold. Science of ergonomics gives better ideas of doing a work more
conveniently by an employee. Thus, continuous research in HR areas is an unavoidable
requirement. It must also take special care for improving exchange of information through
effective communication systems on a continuous basis especially on moral and motivation.

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Functions of HRM

1. Managerial Functions
I. Human Resource Planning: In this function of HRM, the number and type of employees needed
to accomplish organisational goals is determined. Research is an important part of this function,
information is collected and analysed to identify current and future human resource needs and
to forecast changing values, attitude, and behaviour of employees and their impact on
organisation.
II. Organising: In an organisation tasks are allocated among its members, relationships are
identified, and activities are integrated towards a common objective. Relationships are
established among the employees so that they can collectively contribute to the attainment of
organisation goal.
III. Directing: Activating employees at different level and making them contribute maximum to the
organisation is possible through proper direction and motivation. Taping the maximum
potentialities of the employees is possible through motivation and command.

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2. Operative Functions
I. Procurement: Procurement refers to a series of activities undertaken by the human
resource manager filling the present and future vacancies of the organisation.
II. Development: Development refers to both employees training and management
development. Human resource managers are responsible for conducting and
supervising training and development programs for employees. The purpose of training
is to increase competencies in their job by improving their skill and abilities.
III. Compensation: Compensation refers to determination of the pay scale and other
benefits for the employees. HR manager must ensure fair and equitable pay rates,
reward system incentive plans bonus and flexible work schedules.
IV. Maintenance: It aims at retaining efficient and experienced employees in organization.
The HR managers are responsible for offering occupational safety, Health promotion,
Physical fitness, Canteen facilities, recreation activities, transportation programs,
Employee suggestion schemes and creating a positive work environment.

PREPARED BY: MS. KHUSHBOO LALWANI

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QUALITIES OF HR MANAGER
As an Intellectual: The basic skill in the human resource field as compared to
technologists or financial experts is the skill to communicate, articulate, understand and
above all, to be an expert when it comes to putting policies and agreements in black and white.
The personnel man’s skill lies in his command over the language. A personnel man has to deal
with employees and he must possess the skills of conducting fruitful and systematic
discussions and of communicating effectively. He should also be in a position to formulate
principles and foresee the problems of the organisation. This means that he would require the
mental ability to deal with his people in an intelligent manner as well as to understand what
they are trying to say

As an Educator: It is not enough that a human resource man has command-over the
language, which, however, remains his primary tool. He should be deeply interested in
learning and also in achieving growth. Basically, human beings like to grow and realise their
full potential. In order to harmonies the growth of individuals with that of the organisation, a
personnel administrator must not only provide opportunities for his employees to learn, get
the required training and assimilate new ideas but also he himself should be a teacher. A
personnel man who simply pushes files and attends labour courts for conciliation purposes
and other rituals of legal procedure for the settlement of industrial disputes is not a personnel
administrator of the future.

As a Discriminator: A human resource administrator must have the capacity to

discriminate between right and wrong, between that which is just and unjust and merit and
non- merit. In other words, he should be a good judge when he sits on a selection board, a
fair person when he advises on disciplinary matters and a good observer of right conduct in an
organisation.

As an Executive: The human resource man must execute the decisions of the
management and its policies with speed, accuracy and objectivity. He has to streamline the
office,tone up the administration and set standards of performance. He has to coordinate the

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control functions in relation to the various other divisions and, in doing so he should be in a
position to bring unity of purpose and direction in the activities of the personnel department.
He must ask relevant questions and not be merely involved in the office routine whereby
the status quo is

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maintained. He should have the inquisitiveness to find out causes of delay, tardy work and wasteful
practices, and should be keen to eliminate those activities from the personnel functions which have
either outlived their utility or are not consistent with the objectives and purposes of the
organization.

As a Leader: Being basically concerned with people or groups of people, and being placed in
the group dynamics of various political and social functions of an organisation, a Human
resource man must not shirk the role of leadership in an organisation. He, by setting his own
example and by working towards the objectives of sound personnel management practices,
must inspire his people and motivate them towards better performance. He should resolve the
conflicts of differentgroups and build up teamwork in the organisation.

As a Humanist: Deep faith in human values and empathy with human problems,
especially in less developed countries, are the sine qua non for a Human resource man. He
has to deal with people who toil at various levels and partake of their joys and sorrows. He
must performhis functions with sensitivity and feeling.

As a Visionary: While every leading function of an organisation must evolve its vision of
the future, the primary responsibility for developing the social organisation towards purposive
and progressive action falls on the personnel man. He should be a thinker who sets the pace
for policy-making in an organisation in the area of human relations and should gradually work
out new patterns of human relations management consistent with the needs of the
organisation and the society. He must ponder on the social obligations of the enterprise,
especially if it is in the public sector, where one has to work within the framework of social
accountability. He should be in close touch with socio-economic changes in the country. He
should be able to reasonably forecast future events and should constantly strive to meet the
coming challenges.

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EVOLUTION OF HRM
Industrial Revolution Era:
The systematic development of HRM started with the industrial revolution that started during the
1850s in Western Europe and the USA. The industrial revolution consisted, essentially, the
development of machinery, the use of mechanical energy in production processes, and
consequently the emergence of the concept of the factory with a large number of the workforce
working together.

The factory system replaced the old cottage system. The industrial revolution brought out several
changes like centralized work locations with a large number of workers working together,
mechanized production process, migration of workers from their place of origin, and indirect
contact between factory owners and workers.

To manage people in the factory system of the industrial revolution, three systems of HRM were
developed- recruitment of workers, training for workers, and control of workers. However, the
basic philosophy of managing workers revolved around a master-servant relationship.

Trade Union Movement Era:

The conditions of workers in the aftermath of the factory system as an outcome of the industrial
revolution, were very pitiable. The Royal Commission of Labour in India in 1911, under the
chairmanship of J.H. Whitely, recommended the abolition of the ‘Jobber’ system and the
appointment of labour officers in the industrial enterprise to perform the recruitment function as
well as to settle workers’ grievance. Workers also started forming ‘trade unions’. The basic object
underlying trade union was to safeguard the worker’s interest and to sort out their problems such
as the use of child labour, long hours of work and poor working conditions.

These unions used strikes, slowdowns, walkouts, picketing, as weapons for the acceptance of their
problems. These activities of trade unions gave rise to personnel practices such as collective
bargaining, grievance handling system, arbitration, disciplinary practices, employee benefit
programmes and sound wage structure.

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Social Responsibility Era:

At the beginning of the 20th century, some factory owners, employers started showing a
humanistic approach towards the workers. Robert Owen, a British industrialist is considered to be
the first to adopt the humanistic approach towards workers. He viewed that the principal social
and economic environments influence the physical, mental and psychological development of
workers. He felt that to improve productivity, it is necessary to improve the conditions of
employees by removing them from the adverse environment to a congenial atmosphere with the
availability of satisfactory living and working conditions.

This era focuses on the paternalistic approach, which consists of the philosophy that the workers
are just like children and the owner is just like a father. Therefore the owner should take care of
the workers, just like a father looks after his children.

Scientific management Era:

The concept of scientific management was introduced by F. W. Taylor in the USA in the early part
of 20th century as an alternative to the prevailing system of management by initiative and
incentive-based on his shop floor job experience.

Taylor developed four principles of scientific management

1. Development and use of scientific methods in setting work standards, determining fair work, and
the best way of doing work.

2. Scientific selection and placement of workers best suited to perform the various tasks and
provision of their training and development for maximum efficiency.

3. Clear cut division of work and responsibility between management and workers.

4. Harmonious relationship and close cooperation with workers to achieve the performance of
work following the planned jobs and tasks.

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Human Relations Era:

During the years 1925 to 1935, experts expressed their opinions towards the human aspects of
organization activities. Hugo Munsterberg in his book, “Psychology and Industrial Efficiency”,
suggested the use of psychology in the selection, placement, testing and training of employees
in an organization.

Elton Mayo and his associates conducted a series of experiments from 1924 to 1932 of the
Hawthorne plant of the Western Electric Company in the USA. The main findings of Hawthorne
Experiments were as follows:

1. Physical environments at the workplace do not have any material impact on the efficiency of
work.

2. Favorable attitudes of workers and psychological needs had a beneficial impact on the morale
and efficiency of the workman.

3. Fulfilment of the worker’s social and psychological needs had a beneficial impact on the morale
and efficiency of workmen.

4. Employee groups based on social interactions and common interests exercised a strong influence
on worker’s performance.

5. Workers cannot be motivated solely by economic rewards. More important motivators are job
security, recognition, the right to express their opinion on matters related to them.

The findings have stated that the relationship between the superiors and subordinates should
relate to social and psychological satisfaction of the employees. Employee satisfaction is the best
means of increasing employee productivity.

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Behavioral Science Era:

In contrast to human relations which assume that happy workers are productive workers, the
behavioral scientists have been goal and efficiency oriented and consider the understanding of
human behavior to be the major means to that end. Important elements of the behavioural
approach to HRM is as follows:

1. Individual behaviour is linked with group behaviour. For example, a person may resist changing
his/her behaviour as an individual. But he/she will readily do so if the group to which he or she
belongs, decides to change its behaviour.

2. Informal leadership rather than the formal leadership of the manager is more effective in
influencing people to achieve standards of performance. According to their view, the democratic
leadership style of the manager is more acceptable to the subordinates and hence more effective.

3. By nature, people do not dislike work. Most people enjoy work and one is motivated by self-
control and self-development. In fact job itself is a source of motivation and satisfaction to the
employee.

4. Managers’ basic job is to use untapped human potential in the organization.

5. Expanding subordinate influence, self-control and self – direction can improve operating
efficiency.

Systems approach Era:

A system may be defined as a set of interdependent parts forming an organized unit or entity.
The parts, also known as sub-systems, interact with each other and are subject to change.

The system approach is characterized by the following features:

i. A system is a group of elements which are separate entities/ units.

ii. All the elements are inter-related in an orderly manner.

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iii. There is a need for proper and timely communication to facilitate interaction between the
elements.

iv. The interaction between the elements should lead to achieving some common goal.

Human Resource Management Era:

When the factory system was applied in production, a large number of workers started working
together. A need was felt that there should be someone who should take care of recruiting,
developing, and looking after the welfare of these workers. For this purpose, the industrial relations
department came into existence in most of the large organization's which were concerned mostly
with workers.

With the increasing competition for market share, competition for resources including human
talents, and increased knowledge in the field of managing human resources, people were not
treated merely as physiological beings but socio-psychological beings as a prime source of
organizational effectiveness and large organizations changed the nomenclature of their personnel
department to human resource ‘department to reflect the contemporary view.

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HRM POLICY
“Human resource policies may be classified in several ways. On the basis of their source, policies
may be classified into originated, appealed and imposed policies. On the basis of their scope,
policies can be general or specific.

Originated Policies: These policies are established formally and deliberately by top
management. Senior executives initiate such policies to guide their subordinates.

Appealed Policies: These policies are formulated on requests of subordinates who want to
know how to handle some situations. The need for such a policy arises because the particular
case which is not covered by the earlier policies.

Imposed Policies: An organization accepts these policies due to pressure of external

agencies such as Government, Trade Association, Trade Union. For example, the policy that
“below the age of fourteen years nobody will be employed” is adopted due to the Factories
Act.

General Policies: These policies do not relate to any specific issue in particular. Rather
they represent the basic philosophy and priorities of top management. For example,
encouraging workers to participate in decision making at all level is a general policy.

Specific Policies: These policies relate to specific issues such as staffing, compensation,
collective bargaining, etc. All specific policies must confirm to the broad pattern laid down by
the general policies.

Written or Implicit policies: These policies are inferred from the behavior of managers. For
example, in the absence of anything in writing. Promotion policy of an enterprise can be
inferred from the way promotions have been made.

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DIFFERENCE BETWEEN PERSONNEL AND HUMAN RESOURCE

MANAGEMENT

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HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Meaning of HRIS
Human Resource Information System (HRIS) is a systematic way of storing data and information for
each individual employee to aid planning, decision making, and for submitting of returns and
reports to the external agencies. Human Resource Department requires large amount of detailed
information. The quality of personnel management departments, contribution largely depends
upon the quality of information held by it. The information required may be

i. Duties and responsibilities of every job in the organization.

ii. Skills possessed by every employee.

iii. Organization’s future human resource needs.

iv. Current productivity of human resources and

v. Identification of training needs.

Benefits of HRIS
i. Higher speed of retrieval and processing of data.

ii. Reduction in duplication of efforts leading to reduced cost

iii. Better analysis and decision making.

iv. Higher accuracy of information and reports generated.

v. Fast response to answer queries.

vi. Improved quality of reports.

vii. Better work culture.

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viii. Streamlined and systematic procedures.

ix. More transparency in the system.

Limitations of HRIS
i. Expensive in terms of finance and manpower requirement.

ii. Inconvenient to those who are not comfortable with computers, particularly top bosses

Types of information stored in HRIS

I. Personnel Administration: It will contain information about each employee, such as name,
address, date of birth, date of joining the organization, and information about next of kin and
family. The facility should allow the user to maintain a number of address records such as
permanent home address, local postal address, and the address of next of kin.

II. Salary Particulars: Salary review procedures are an important function of the human
resources department. Details of present salary, last increase and the proposed increase will
all be compiled and stored.

III. Leave / Absence Recording: An important requirement of HRIS is providing comprehensive

and accurate method of controlling leave and absences. A complete leave history for each
employee, days of absence, delay in reporting are all stored. Eligibility of leave, medical,
maternity leave under credit, leave encashment, eligibility are all stored.

IV. Skill Inventory: HRIS is used to record acquired skills and monitor a skill database at both
employee and organizational level. This will give the necessary information to identify
employees with necessary skills for certain positions or job function.

V. Medical History: The HRIS may be used to record occupational health data needed for
industrial safety purposes, accident monitoring, exposure to potentially hazardous materials,
and so on. For example, hearing loss, nervous debility in certain work areas may be monitored

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and results recorded on HRIS. The records of periodical medical examinations may also be
maintained.

VI. Accident Monitoring: The system should record the details of the accidents for the injured
employees. This could highlight accident prone areas or accident prone times within the
organization.

VII. Performance Appraisal: The system should record individual employee’s performance
appraisal data such as the due data of the appraisal, scores for each performance criteria,
potential for promotion, and other information to form a comprehensive overview of each
employee.

VIII. Training and Development: The system should record the details of training imparted,
training evaluation development opportunities given and availed. The type of training needed
may be identified and stored.

IX. HRP: The HRP plan, extensions, plan executed, to be executed strength and weaknesses of the
plan, plan evaluation etc., may be recorded.

X. Recruitment: Recruitment pool, screening, preliminary selection etc., may be stored for HRIS.

XI. Career Planning: Placement, training, selected candidates for career planning, supervisors
view can be stored.

XII. Collective Bargaining: Wage, salary administration, bonus, negotiations, trade Unions views,
most welcome and least resistant measures may also be recorded.

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Steps/Process of implementing HRIS

I. Inception of Idea: Idea should originate somewhere. The originator should make a
preliminary report justifying the need for HRIS and illustrate how it could assist
management in making certain decisions.
II. Feasibility Study: The cost-benefit analysis of HRIS in terms of labour and material as also
intangible savings, such as increased accuracy and fewer errors should be highlighted.
III. Selection of Project Team: accepted, a project team should be selected. The project team
should consist of a human resource representative, who is knowledgeable about the
organization’s human resource functions and activities, and the organization itself, and also
a representative from management information system. As the project advances,
additional clerical people from the human resource department will have to be added.
IV. Defining The Requirements: A statement of requirements specifies in detail exactly what
the system needs to do. A larger part of the statement of requirements normally deals with
the details of the reports that will be produced. The objective is to make sure that the
mission of an HRIS truly matches with the management’s needs of an HRIS.
V. Vendor Analysis: The purpose of this step is to determine what hardware and software
are available that will best meet the organization’s needs at the least price. This is a difficult
task. This involves discussions with various vendors on how their HRIS will meet the
organization’s needs.
VI. Contract Negotiations: The contract stipulating the price, delivery, vendor’s
responsibilities with regards to installation, service maintenance, training to organization’s
employees etc., may be
VII. Training: Project team members may first be trained to use the system and then they
could train all users from other departments.
VIII. Tailoring The System: It involves making changes to the system to best fit to the
organizational needs.
IX. Data Collection: Data is collected and fed into the system.
X. Testing The System: The object of verifying is to test the output of HRIS and make sure
that it is doing what it supposed to do. All reports to be critically analyzed.

PREPARED BY: MS. KHUSHBOO LALWANI

 [UNIT-1 HUMAN RESOURCE MANAGEMENT] SYBMS

XI. Starting Up: Even after testing, some additional errors may crop up. These errors surface
during start up. These are to be sorted out.
XII. Parallel Running: Just for the security, the new system is to be run in parallel with the old
till the new system stabilizes and people gain confidence in its operation.
XIII. Maintenance: Proper maintenance of the system and maintenance of secrecy of records
are to be guarded. It normally takes several months for HR people to get acquainted with
HRIS.
XIV. Audit: After a year or so, the project team should audit the performance of HRIS and if
required, corrective actions should be taken. Large organizations generally install
computerized HRIS system because it enables them to collect, process and use large
amount of data. It links the various subsystems of HRM.

PREPARED BY: MS. KHUSHBOO LALWANI

 [UNIT-1 HUMAN RESOURCE MANAGEMENT] SYBMS

TECHNIQUES OF HRM
Training and Development: This involves an organized attempt to find out training needs
of the individuals to meet the knowledge and skill which is needed not only to perform current
job butalso to fulfil the future needs of the organization.
Compensation and Benefits: This is the area of wages and salaries administration
where wages and compensations are fixed scientifically to meet fairness and equity criteria. In
addition labourwelfare measures are involved which include benefits and services.
Human Resource Planning: The objective of HR Planning is to ensure that the organization
has the right types of persons at the right time at the right place. It prepares human resources
inventory with a view to assess present and future needs, availability and possible shortages in
humanresource.
Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR
Planning develops strategies both long-term and short-term, to meet the man-power requirement.
Selection and Staffing: This is the process of recruitment and selection of staff. This involves
matching people and their expectations with which the job specifications and career path
available within theorganization.
Employee assistance/ Work environment: Each employee is unique in character,
personality, expectation and temperament. By and large each one of them faces problems
everyday. Some are personal some are official. In their case he or she remains worried. Such
worries must be removed to make him or her more productive and happy.
Healthy Industrial and Labour relations are very important for enhancing peace and productivity in an
organization.

PREPARED BY: MS. KHUSHBOO LALWANI

 [UNIT-1 HUMAN RESOURCE MANAGEMENT] SYBMS

QUESTION BANK
LONG QUESTIONS (7 MARKS)

1. Define HRM and elaborate the scope of HRM.

2. Elaborate functions of HRM.
3. Explain the process of implementing HRIS in detail with a suitable diagram. (IMP)
4. Elaborate different types of information stored in HRIS.
5. Discuss the evolution of HRM (MIMP)
6. Discuss the qualities of HR manager.

SHORT QUESTIONS (3 MARKS)

1. Clarify the difference between personnel and human resource management

2. Write a note on HRIS (IMP)
3. Write a note on HR policies.
4. Briefly explain features of HRM.
5. Write a note on industrial revolution Era/ Trade union Era/Human relations Era/
Behavioural science Era.

SHORT QUESTIONS (2 MARKS)

1. Define HRM.
2. State objectives of HRM (any 5)
3. State features of HRM.
4. Define HRIS.
5. Define policies.
6. Briefly mention operative functions of HRM.
7. Briefly mention managerial functions of HRM.
8. State steps involved in implementing HRIS with a diagram.
9. State different HRM policies.
10. State different types of information stored in HRIS.

PREPARED BY: MS. KHUSHBOO LALWANI

 [UNIT-1 HUMAN RESOURCE MANAGEMENT] SYBMS

11. State different techniques of HRM.

PREPARED BY: MS. KHUSHBOO LALWANI