UNIT I: PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT

1. Evolution of Human Resource Management: Human Resource Management (HRM)

has evolved over time from a traditional personnel management approach to a more
strategic role. Initially, HRM focused on administrative tasks such as payroll and
compliance. However, over the years, it has become more integrated with organizational
goals, focusing on employee development, performance management, and organizational
culture. The shift towards HRM was driven by globalization, technological advancements,
and a greater emphasis on talent management.

2. The Importance of Human Capital: Human capital refers to the skills, knowledge,
and experience possessed by individuals. It is vital for the success of an organization as it
directly influences productivity, innovation, and competitive advantage. Organizations that
invest in human capital through training and development ensure they have a skilled
workforce capable of adapting to market changes and technological advancements, leading
to overall organizational growth.

3. Role of Human Resource Manager: The role of a Human Resource Manager (HRM)
involves managing the organization’s workforce to ensure alignment with its strategic
goals. Responsibilities include recruitment, training and development, performance
management, employee relations, compensation and benefits, and compliance with labor
laws. HRMs also contribute to creating a positive organizational culture and ensuring
employee engagement.

4. Challenges for Human Resource Managers: HR managers face several challenges,

including attracting and retaining top talent, managing diversity, ensuring employee
engagement, adapting to technological changes, and aligning human resources with
strategic business goals. Additionally, legal and compliance issues, employee relations,
and managing organizational change are persistent challenges for HR managers.

5. Trends in Human Resource Policies: Recent trends in HR policies include a greater

focus on employee well-being, work-life balance, diversity and inclusion, flexible work
arrangements, and sustainability. Organizations are increasingly adopting technology-
driven solutions for talent management, performance evaluation, and employee
development. Moreover, there is a growing emphasis on data analytics to make informed
HR decisions.

6. Computer Applications in Human Resource Management: HRM has leveraged

technology for improved efficiency. Key applications include HRMS (Human Resource
Management Systems), which streamline processes like recruitment, payroll, and
performance management. Other software tools assist in employee self-service, learning
management, and data analytics, making HR functions more accurate and time-efficient.

7. Human Resource Accounting and Audit: Human Resource Accounting (HRA)

involves measuring the value of human capital within an organization. This can include
tracking the costs of recruitment, training, and employee development. An HR audit, on
the other hand, evaluates the effectiveness of an organization’s HR policies and practices,
helping identify areas for improvement and ensuring compliance with regulations.

UNIT II: HUMAN RESOURCE PLANNING AND RECRUITMENT

1. Importance of Human Resource Planning: Human Resource Planning (HRP) is

essential for aligning the workforce with the organization's future needs. It helps forecast
human resource requirements, ensuring that the right talent is available at the right time.
Effective HRP reduces the risks of understaffing or overstaffing and supports the
achievement of organizational goals.

2. Forecasting Human Resource Requirements: Forecasting involves predicting the

future human resource needs based on factors like organizational growth, technological
changes, and labor market trends. Methods of forecasting include trend analysis, ratio
analysis, and managerial judgment. This helps in ensuring that an organization has the
necessary number of employees with the right skills.

3. Matching Supply and Demand: Matching the supply of available talent with the
demand for skills is a key aspect of HRP. This involves assessing the current workforce's
skills and capabilities and comparing them with future job requirements. If there is a gap,
HR managers take steps such as training, recruitment, or outsourcing to ensure the
organization has the required talent.

4. Internal and External Sources of Recruitment: Internal sources include

promotions, transfers, or employee referrals. It is cost-effective and motivates current
employees. External sources include job portals, recruitment agencies, campus
placements, and social media platforms. External recruitment brings fresh perspectives
and new skills into the organization.

5. Organizational Attraction Process: The organizational attraction process involves

creating a positive employer brand to attract top talent. This includes highlighting
organizational culture, career growth opportunities, and benefits. Successful organizations
use employer branding strategies through marketing, social media, and employee
testimonials to appeal to potential candidates.

UNIT III: TRAINING AND DEVELOPMENT

1. Types of Training Methods: Training methods include on-the-job training, classroom

training, e-learning, workshops, and simulations. Each method is designed to meet specific
training needs, such as skill development, behavior change, or knowledge enhancement.
E-learning and virtual training are gaining popularity due to their flexibility and
accessibility.

2. Purpose and Benefits of Training: The primary purpose of training is to enhance

employee performance, improve productivity, and equip employees with the necessary
skills for their current and future roles. Benefits include increased employee satisfaction,
reduced turnover, higher engagement, and better organizational performance.

3. Resistance to Training: Resistance to training can occur due to factors like fear of
failure, lack of interest, or perceived irrelevance of the training content. Employees may
also resist if they feel that training will lead to additional workload or competition. Effective
communication and demonstrating the benefits of training can overcome resistance.

4. Executive Development Programme: Executive Development Programs (EDPs) are

designed to enhance the leadership and managerial skills of senior executives. These
programs focus on strategic thinking, decision-making, communication, and problem-
solving. EDPs are often delivered through workshops, coaching, and action learning
projects.

5. Common Practices in Executive Development: Common practices include

mentorship, job rotation, 360-degree feedback, and leadership training. These help
executives gain broader perspectives, enhance their problem-solving abilities, and prepare
for higher responsibilities. Regular assessments and continuous learning are integral to
executive development.

6. Knowledge Management: Knowledge management involves capturing, sharing, and

utilizing knowledge and expertise within the organization. It helps employees access
important information, improves decision-making, fosters innovation, and enhances
collaboration. It can be supported through technologies like intranets, knowledge-sharing
platforms, and collaborative tools.

UNIT IV: EMPLOYEE MANAGEMENT

1. Compensation Plan: A compensation plan outlines how employees are rewarded for
their work, including base salary, bonuses, benefits, and incentives. A well-structured
compensation plan is crucial for attracting and retaining talent, ensuring fairness, and
aligning rewards with organizational goals.

2. Motivation Theories and Applications: Motivation theories, such as Maslow's

Hierarchy of Needs, Herzberg's Two-Factor Theory, and McClelland’s Need Theory, offer
insights into what drives employees. Applying these theories helps HR managers design
reward systems, set goals, and create work environments that enhance employee
motivation.

3. Career Management: Career management involves guiding employees through their

career development, offering opportunities for growth, training, and advancement. It
includes helping employees plan their career paths and align their goals with organizational
needs. Effective career management leads to higher job satisfaction and retention.

4. Mentoring and Protégé Relationships: Mentoring involves experienced employees

(mentors) providing guidance and advice to less experienced employees (protégés). This
relationship fosters career growth, skill development, and personal development. A
successful mentor-protégé relationship can boost employee morale and create a positive
work culture.

5. Job Satisfaction and Employee Engagement: Job satisfaction refers to how content
employees are with their work, while employee engagement is the emotional commitment
employees have to the organization. Both are critical for reducing turnover, increasing
productivity, and fostering a positive workplace environment. Theories like Herzberg’s
Motivation-Hygiene Theory explain factors influencing job satisfaction.

UNIT V: PERFORMANCE EVALUATION AND CONTROL

1. Methods of Performance Evaluation: Performance evaluation methods include

traditional approaches such as rating scales and 360-degree feedback. Modern methods
also incorporate self-assessments, management by objectives (MBO), and competency-
based assessments. These methods help measure employee performance, identify
development areas, and support reward decisions.

2. Feedback in Performance Evaluation: Feedback is crucial in performance evaluation

as it provides employees with insights into their strengths and areas for improvement.
Constructive feedback helps in enhancing performance and aligning individual goals with
organizational objectives. It should be timely, specific, and actionable.

3. Promotion, Demotion, Transfer, and Separation: Promotion involves advancing

employees to higher positions, while demotion is a downward shift. Transfers are
relocations within the organization, and separation refers to employees leaving the
organization voluntarily or involuntarily. These changes affect employee morale,
motivation, and organizational structure.

Frequent questions
UNIT I: PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT

1. What is the evolution of Human Resource Management?

Answer:
Human Resource Management (HRM) has evolved from a traditional personnel
management function focused on administrative tasks like payroll and employee relations
to a more strategic role. It now involves activities such as talent acquisition, training and
development, performance management, and employee engagement. The shift towards
HRM was driven by organizational needs for a more skilled and adaptable workforce,
globalization, and advancements in technology.

2. Explain the importance of human capital.

Answer:
Human capital refers to the skills, knowledge, and experience possessed by individuals in
an organization. It is crucial for organizational success as it directly impacts productivity,
innovation, and competitive advantage. Organizations that invest in developing human
capital through training and development are better positioned to adapt to changing
markets and technological advancements.

3. What is the role of a Human Resource Manager?

Answer:
The role of a Human Resource Manager (HRM) includes managing recruitment, training
and development, employee relations, performance management, and compliance with
labor laws. HRM is also responsible for aligning the workforce with organizational goals,
fostering a positive work culture, and ensuring employee engagement and satisfaction.

4. Discuss the challenges faced by Human Resource Managers.

Answer:
HR managers face challenges such as attracting and retaining talent, managing workplace
diversity, adapting to technological changes, ensuring employee engagement, and aligning
human resources with organizational strategies. Legal and compliance issues, as well as
handling employee relations and managing organizational change, are also common
challenges.

5. What are the trends in Human Resource policies?

Answer:
Trends in HR policies include an increased focus on employee well-being, work-life balance,
diversity and inclusion, and flexible working arrangements. Organizations are also
leveraging technology for talent management, performance evaluations, and training.
Data analytics is playing an important role in making informed HR decisions.

6. Explain the role of computer applications in Human Resource Management.

Answer:
Computer applications in HRM include Human Resource Management Systems (HRMS)
that streamline processes such as payroll, recruitment, performance management, and
employee data management. HR software tools also assist in training, employee self-
service, and data analytics, improving efficiency and reducing administrative workload.

7. What is Human Resource Accounting and Audit?

Answer:
Human Resource Accounting (HRA) involves measuring and valuing the human capital in
an organization. It tracks costs related to recruitment, training, and development. HR audit
assesses the effectiveness of HR policies and practices, identifies areas for improvement,
and ensures compliance with labor regulations.

UNIT II: HUMAN RESOURCE PLANNING AND RECRUITMENT

1. What is the importance of Human Resource Planning?

Answer:
Human Resource Planning (HRP) is vital for aligning the workforce with the organization's
future needs. It helps ensure that the organization has the right number of employees
with the required skills at the right time. HRP also minimizes the risks of overstaffing or
understaffing and ensures a smooth talent supply for organizational growth.

2. How is forecasting of human resource requirements done?

Answer:
Forecasting human resource requirements involves predicting the future need for
employees based on factors like organizational growth, technological advancements, and
market trends. Methods used include trend analysis, ratio analysis, and managerial
judgment, which help in anticipating the skills and number of employees needed.

3. Explain how supply and demand of human resources are matched.

Answer:
Matching supply and demand in HR involves assessing the current workforce’s skills and
comparing them to the future needs of the organization. If there is a gap, HR managers
take corrective actions such as recruitment, training, or outsourcing to ensure that the
right talent is available when needed.

4. What are the internal and external sources of recruitment?

Answer:
Internal sources of recruitment include promotions, transfers, and employee referrals,
which are cost-effective and help motivate existing employees. External sources include
job portals, recruitment agencies, social media, and campus recruitment, which bring fresh
perspectives and new skills to the organization.

5. Explain the organizational attraction process.

Answer:
The organizational attraction process involves creating a positive employer brand to attract
potential candidates. This is achieved through highlighting organizational culture, career
growth opportunities, and the benefits of working with the company. Strategies like
employer branding and showcasing success stories on social media help in attracting top
talent.

UNIT III: TRAINING AND DEVELOPMENT

1. What are the types of training methods?

Answer:
Training methods include on-the-job training (e.g., coaching and mentoring), classroom-
based training (lectures and workshops), e-learning (online courses), and simulations
(role-playing). These methods are selected based on the training needs and learning
objectives of the organization.

2. What are the purpose and benefits of training?

Answer:
The purpose of training is to enhance employee performance, develop skills, and prepare
them for future roles. The benefits include improved productivity, higher employee morale,
reduced turnover, and a skilled workforce capable of adapting to new technologies and
challenges.

3. What are the reasons for resistance to training?

Answer:
Resistance to training can arise due to fear of failure, lack of interest in the training
content, perceived irrelevance, or anxiety about additional workload. Employees may also
resist if they feel training will lead to competition or that it is a waste of time. Effective
communication can help overcome these barriers.

4. What is an Executive Development Programme?

Answer:
An Executive Development Programme (EDP) focuses on enhancing the skills and
leadership capabilities of senior executives. The program includes training in strategic
thinking, decision-making, and problem-solving. Methods like coaching, mentoring, and
experiential learning are often employed to enhance leadership skills.

5. Explain the concept of Knowledge Management.

Answer:
Knowledge Management (KM) refers to the process of capturing, distributing, and
effectively using organizational knowledge. KM helps employees access critical
information, fosters collaboration, and improves decision-making. Technologies like
intranets, collaborative tools, and knowledge-sharing platforms support KM practices.

UNIT IV: EMPLOYEE MANAGEMENT

1. What is a compensation plan?

Answer:
A compensation plan defines the salary, benefits, and other rewards employees receive in
exchange for their work. It includes base salary, bonuses, incentives, and non-monetary
rewards like benefits and recognition. A well-structured compensation plan helps attract,
retain, and motivate employees.

2. How are motivation theories applied in HRM?

Answer:
Motivation theories such as Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory,
and McClelland’s Need Theory are applied in HRM to design reward systems, set goals,
and improve workplace motivation. These theories help HR managers understand
employee needs and create environments that fulfill these needs, leading to increased
performance.

3. What is Career Management?

Answer:
Career management involves guiding employees in planning and developing their career
paths within the organization. It includes offering opportunities for growth, training,
mentorship, and promotions. Career management helps align employee aspirations with
organizational goals, fostering loyalty and long-term engagement.

4. What is mentoring and the protégé relationship?

Answer:
Mentoring is a developmental relationship where experienced employees (mentors) guide
less experienced employees (protégés) in their career growth. The mentor-protégé
relationship fosters personal and professional development, enhances skills, and helps
protégés navigate the organization’s culture and career challenges.

5. What is the importance of job satisfaction and employee engagement?

Answer:
Job satisfaction refers to how happy employees are with their work, while employee
engagement reflects their emotional commitment to the organization. Both are important
for reducing turnover, increasing productivity, and fostering a positive workplace culture.
Engaged employees are more motivated and aligned with organizational goals.

UNIT V: PERFORMANCE EVALUATION AND CONTROL

1. What are the methods of performance evaluation?

Answer:
Performance evaluation methods include rating scales, 360-degree feedback, Management
by Objectives (MBO), and competency-based assessments. These methods assess
employee performance, identify strengths and weaknesses, and provide a basis for
rewards, training, and development.

2. What is feedback in performance evaluation?

Answer:
Feedback in performance evaluation involves providing employees with insights into their
job performance. Constructive feedback helps employees understand their strengths and
areas for improvement, facilitating personal and professional development. It should be
specific, timely, and actionable.

3. How are promotions, demotions, transfers, and separations handled?

Answer:
Promotions involve advancing employees to higher roles, while demotions move them to
lower positions. Transfers involve relocating employees to different departments or roles,
and separations occur when employees leave the organization voluntarily or involuntarily.
These processes affect employee morale and job satisfaction.

4. What is the control process in HRM?

Answer:
The control process in HRM involves setting performance standards, measuring actual
performance, and taking corrective actions when there are discrepancies. It ensures that
HR functions align with organizational goals, and helps in managing and improving
performance through continuous monitoring and adjustment.

Here are some frequently asked questions and answers for the Anna University MBA
Human Resource Management (HRM) subject based on past exams:

UNIT I: Perspectives in Human Resource Management

• Q1: What is the evolution of Human Resource Management?

o A1: HRM evolved from personnel management, focusing on administrative

tasks, to strategic management, where the emphasis shifted to managing
people as valuable assets. Over time, HRM became more integrated into
business strategy, recognizing the importance of human capital in achieving
organizational goals.

• Q2: Discuss the importance of human capital.

o A2: Human capital refers to the skills, knowledge, and experience possessed
by individuals, which can contribute to the economic value of an
organization. It is crucial because skilled and knowledgeable employees
drive innovation, efficiency, and productivity, making human capital one of
the most valuable resources in any organization.

• Q3: What are the challenges faced by HR managers?

o A3: HR managers face challenges such as talent acquisition, employee

retention, managing diversity, aligning HR strategies with organizational
goals, and adapting to legal and technological changes.

• Q4: Explain the role of HR managers in an organization.

o A4: HR managers are responsible for recruiting, training, employee

engagement, performance management, and ensuring compliance with
labor laws. They play a key role in aligning HR policies with the
organization's overall goals to drive productivity and ensure a positive work
environment.

UNIT II: Human Resource Planning and Recruitment

• Q1: Why is human resource planning important?

o A1: Human resource planning is essential to ensure that the organization

has the right number of people with the right skills at the right time. It helps
organizations meet current and future human resource needs and aligns the
workforce with strategic business goals.

• Q2: Describe the process of forecasting human resource requirements.

o A2: Forecasting HR requirements involves analyzing the current workforce,

predicting future human resource needs based on business objectives, and
identifying gaps between the existing workforce and future demands. It
involves both qualitative and quantitative methods to project staffing needs.

• Q3: Discuss internal and external sources of recruitment.

 o A3: Internal sources include promotions, transfers, and employee referrals,
which help in filling positions from within the organization. External sources
involve hiring through advertisements, recruitment agencies, campus
placements, and job fairs, bringing in new talent from outside the
organization.

UNIT III: Training and Development

• Q1: What are the types of training methods?

o A1: Training methods include on-the-job training (OJT), workshops,

seminars, e-learning, simulations, and mentorship programs. Each method
aims to improve specific skills and competencies required by employees for
their roles.

• Q2: What is executive development?

o A2: Executive development refers to the process of training and educating

senior management to enhance their leadership, decision-making, and
strategic skills. It includes formal programs, coaching, and exposure to new
leadership techniques.

• Q3: What are the benefits of self-development?

o A3: Self-development allows individuals to take charge of their learning,

improving personal and professional growth. It leads to enhanced career
prospects, increased job satisfaction, and better adaptability in an ever-
changing work environment.

UNIT IV: Employee Management

• Q1: Discuss the components of a compensation plan.

o A1: A compensation plan includes base salary, bonuses, incentives, benefits

(healthcare, retirement plans), and non-monetary rewards (recognition,
flexible working hours). A well-structured compensation plan attracts,
motivates, and retains employees.

• Q2: Explain job satisfaction and employee engagement.

o A2: Job satisfaction refers to how content an employee is with their job,
including factors like work environment, responsibilities, and compensation.
Employee engagement involves the emotional commitment an employee
has towards their organization, which influences their performance and
productivity.

UNIT V: Performance Evaluation and Control

• Q1: What are the methods of performance evaluation?

o A1: Common methods include rating scales, 360-degree feedback, critical

incident method, and management by objectives (MBO). These methods
assess an employee's performance based on predefined criteria, providing
feedback for improvement.
• Q2: What are the implications of job changes like promotion or demotion?

o A2: Job changes, such as promotion or demotion, affect employee morale,

motivation, and job satisfaction. Promotions can enhance an employee’s
sense of achievement and career growth, while demotions may impact their
self-esteem and work performance.

• Q3: Describe the control process in HRM.

o A3: The control process involves setting standards, measuring actual

performance, comparing the performance with the standards, and taking
corrective actions when necessary. This ensures that HR activities align with
organizational goals.