Module 1

• Introduction to HRM:

• Meaning and Definition,

• Functions,

• Importance,

• ATD (out put), Association for Talent Development

(Formerly ASTD, American Society for Training and

Development) Model of HRM,

• Roles and Responsibilities of HR Manager

Module 2

Human Resource Planning:

Meaning,

Objectives,

Importance and need,

Process,

Job Analysis: Meaning, objectives, uses and process

Job Description : Meaning and Elements (Sample Format)

Job Specification: Meaning and Elements (Sample Format)

Recruitment: Meaning, Objectives, Sources and Techniques

Module 3

Selection: Meaning, Process, and Uses

of tests in selection, Types of Selection
Tests

Placement: Meaning, Importance and

Problems in Placement
`
Induction: Meaning, Process and
Importance
Module 4

Training and Development: Meaning,

Importance, need and Methods

Management Development: Meaning and

Methods

Performance Appraisal: Meaning,

Objectives, Process, Methods
(Traditional and Modern) and
Importance and Limitations
Module 5

Promotion: Meaning, Types of

Promotions, Purpose of Promotion and
basis of Promotion

Transfer: Meaning and Reasons

Demotion: Meaning and Reasons

Employee Seperation: Lay-off,

Retrenchment and Dismissal
• Text Readings
• C. B. Gupta, Human Resource Management, New Delhi, sultan
Chand & Sons, 2011.
• P. Subba Rao, Essentials of Human Resource Management and
Industrial Relations: Text, Cases and Games, Mumbai, Himalaya,
2000.
• K. Aswathappa: Human Resource Management-Text and Cases
• Michael Armstrong, A Handbook of Human Resource Practice,
London, Kogan Page, 12th Edition, 2012.
• Robert L. Mathis and John H. Jackson, Human Resource
Management, Cincinnati, Thomson South- Western- 12th Edition,
2008
• Suggested Readings
• William B. Werther Jr. and Keith Davis, Human Resources and
Personnel Management, Singapore, Mc Graw Hill, 4th Edn. 1996.
• Arun Monappa and Mirza S. Saiyadain, Personnel Management,
New Delhi, Tata McGraw Hill, 1995.
• Biswajeet Patanayak, Human Resource Management, New Delhi,
Prentice Hall 2001.
•"I WILL PAY MORE FOR THE
ABILITY TO DEAL WITH PEOPLE
THAN FOR ANY OTHER ABILITY
UNDER THE SUN" .........

Henry Ford
Founder of Ford Motor
Company
What Ratan Tata did for the Taj Mumbai employees -
26/11/2008

1. All category of employees including those who had completed even 1

day as casuals were treated on duty during the time the hotel was
closed.

2. Relief and assistance to all those who were injured and killed.

3. During the time the hotel was closed, the salaries were sent by
money order.

4. A psychiatric cell was established in collaboration with Tata Institute

of Social Sciences to counsel those who needed such help.

5. The thoughts and anxieties going on people’s mind were constantly

tracked and where needed psychological help provided.
6. Employee outreach centres were opened where all help, food, water,
sanitation, first aid and counselling were provided. 1600 employees were
covered by this facility.

7. Every employee was assigned to one mentor and it was that person’s
responsibility to act as a “single window” clearance for any help that the person
required.

8. Ratan Tata personally visited the families of all the 80 employees who in
some manner – either through injury or getting killed – were affected.

9. The dependents of the employees were flown from outside Mumbai to

Mumbai and taken care off in terms of ensuring mental assurance and peace.
They were all accommodated in Hotel President for 3 weeks.

10. Ratan Tata himself asked the families and dependents – as to what they
wanted him to do.

11. In a record time of 20 days, a new trust was created by the Tatas for the
purpose of relief of employees.
12. This was the most trying period in the life of the organization.
Senior managers including Ratan Tata were visiting funeral to funeral
over the 3 days that were most horrible.

13. The settlement for every deceased member ranged from Rs. 36 to
85 lacs [One lakh rupee translate to approx. 2200 US $ in addition to
the following benefits:

a. full last salary for life for the family and dependents;

b. complete responsibility of education of children and dependents –

anywhere in the world.

c. Full Medical facility for the whole family and dependents for rest of
their life.

d. All loans and advances were waived off – irrespective of the amount.

e. Counsellor for life for each person.

Module 1

Introduction to HRM
Human Resource

The term human resources can be thought of

as “the total knowledge, skills, creative
abilities, talents and aptitudes of an
organisation’s workforce, as well as the value,
attitudes and beliefs of the individuals
involved” …..Leon C. Megginson.
The term human resource can also be
explained in the sense that it is a
resource like any other natural
resource.

It does mean that the management can

get and use the skill, knowledge, ability
etc., through the development of skills,
tapping and utilising them again and
again. Thus, it is a long term
perspective.

Human resources are also regarded as

human factor, human asset and human
capital.
Management

• "Management is the art of getting things

done through people”.
Mary Parker Follet

• Management is the development of people

and not the direction of
things…..Management is personnel
management.
Lawrence A. Appley

• Management is simply the process of

decision-making and control over the
actions of human beings for the purpose of
attaining predetermined goals.
Stanley Vance
Human Resource Management

Human Resource Management is………

Managing (planning, organising, staffing,

directing, coordinating and controlling) the
functions of employing, developing and
compensating human resources

resulting in……….

creating and developing human relations

and utilisation of human resources with a
view to contribute proportionately (due to
them) to the organisational, individual and
social goals.
Characteristics of HRM

• HRM is concerned with employees both as

individuals and as a group in attaining
goals.

• It is also concerned with behavior,

emotional and social aspects of personnel.

• It is concerned with the development of

human resources, i.e. knowledge,
capability, skill, potentialities and
attaining and achieving employee goals,
including job satisfaction.
• HRM covers all levels (low, middle and top)
and …..categories (unskilled, skilled,
technical, professional, clerical and
managerial) of employees.

• It covers both organised and unorganised

employees.

• It applies to the employees, in all types of

organisations in the world (industry, trade,
service, commerce, economic, social,
religious, political and government
departments).

• Human resource management is a continuous

and never ending process.
• It aims at attaining the goals of the
organisation, individual and society in an
integrated approach.

Organisational goals may include…..

survival, growth and development in
addition to ……profitability, productivity,
innovation, excellence etc.

Individual employee-goals consist….. to job

satisfaction, job security, high salary,
attractive fringe benefits, challenging
work, pride, status, recognition,
opportunity for development, etc.
Goals of the society include …….

equal employment opportunity,

protecting the disadvantaged sections

and physically handicapped,

minimisation of inequalities in the

distribution of income by minimising
wage differenetials,

developing the society in general by

organising development activities, etc.
• HRM is a responsibility of ….all line
managers and a function of ……staff
managers in an organisation.

• It is concerned mostly with…. managing

human resources at work.

• HRM is the central sub-system of an

organisation and it saturates all types of
functional management, viz., production
management, marketing management and
financial management.

• Human resource management aims at

……securing co-operation from all
employees in order to attain
predetermined goals.
Knowledge will not attract
money unless it is
organized and intelligently
directed. This requires
practical plans of action.
you must treat your employees with
respect and dignity because in the most
automated factory in the world, you need
the power of human mind. That is what
brings in innovation. If you want high
quality minds to work for you, then you
must protect the respect and dignity. "
• ---Mr N.R. Narayana Murthy, Co-Founder,
Infosys
•
"Iemphasize this - no matter how good
or successful you are or how clever or
crafty, your business and its future
are in the hands of the people you
hire".

--- Akio Morita (Late) (Businessman

and co-founder of Sony Corporation.
Japan)
 Functions of HRM

• Managerial Functions
 Planning
 Organising
 Staffing
 Directing
 Coordinating
 Controlling

• Operative Functions
 Procurement Function
 Development of HR
 Compensation
 Integration
 Maintenance

• Advisory Functions
 To Top Management
 To Departmental Heads
Functions of HRM

1. Managerial Functions

A) Planning:

• It is a predetermined course of action.

• It is determination of personnel
programs and changes in advance that
will contribute to the organisational
goals.
• It also involves forecasting of personnel
needs, changing values, attitudes and
behaviour of employees and their impact
on organisation.
B) Organising:
• An Organisation is a mean to an end.
• It is essential to carry out the
determined course of action.
• It is a structure and process by which
cooperative group of human beings
allocates its task among its members,
identifies relationships and
integrates its activities towards
common objectives.
• It establishes relationships among
the employees of various specialised
and general departments so that they
can collectively contribute to the
attainment of company goals.
C) Staffing:

• Manpower planning involving

determination of the number and the kind
of personnel required.
• Recruitment for attracting suitable number
of potential employees to seek jobs in the
enterprise concerned.
• Selection of the most suitable persons for
the jobs under consideration
• Placement, induction and orientation.
• Transfers, promotions, termination and
layoff.
• Training and development of employees.
D) Directing:

• The basic function of personnel

management at any level is
communicating, motivating,
supervising, commanding, leading and
activating people (directing people).

• The willing and effective cooperation

of employees for the attainment of
organisational goals, is possible
through proper direction.
E) Coordinating: It is the process of tying together
all the organizational decisions, operations, activities
and efforts so as to achieve unity of action for the
accomplishment of organizational objectives. It
includes…..

• Clear definition of authority-responsibility

relationships.
• Unity of direction
• Unity of command
• Effective communication
• Effective leadership
F) Controlling:

• Controlling involves checking, verifying and

comparing of the actual with the plans, identification
of deviations, if any, and correcting identified
deviations.

• Auditing training programs, analysing labour turnover

records, directing morale surveys, conducting separate
interviews are some of the means for controlling the
personnel management function.
2. Operative Functions of HRM
Operative Functions

Summary

1. Procurement Function (Employment)

a) Job Analysis (for Job Description and Job

Specification)
b) Human Resource Planning
c) Recruitment
d) Selection
e) Placement
f) Induction and Orientation
2. Development of HR
a) Performance and Potential Appraisal
b) Training
c) Executive Development
d) Career Planning and Development (Internal Mobility,
Transfer, Promotion)
e) Organisation Development

3. Compensation (Motivation and Maintenance of HR)

a) Job Evaluation
b) Wage and Salary Administration
c) Bonus

4. Integration Function

5. Maintenance Function
Operative Functions: are related to specific activities of
personnel management.

1. Procurement Function: It is concerned with securing

and employing the people possessing required kind
and level of human resources necessary to achieve
the organisational objectives. It involves:

a) Job Analysis: It is the process of study and collection

of information relating to the operations and
responsibilities of a specific job. It includes:

• Collection of data, information, facts and ideas

relating to various aspects of jobs including men,
machines and materials.
• Preparation of job description (title, location,
tasks, duties, responsibilities, working
conditions, hazards and relationship with other
jobs ), job specification (physical, mental,
social, psychological, behavioral
characteristics and other personal
characteristics which a person should possess
to perform a job), job requirements and
employee specification which will help in
identifying the nature, levels and quantum
(required or allowed amount) of human
resources.

• Providing the guides, plans and basis for job

design and for all operative functions of HRM.
b) Human Resource Planning: It is a process
for determination and assuring that the
organisation will have an adequate
number of qualified persons, available at
proper times, performing jobs which
would meet the needs of the
organisation and which would provide
satisfaction for the individuals involved.
It involves….

• Estimation of present and future

requirements and supply of human
resources based on objectives and long
range plans of the organisation.
• Calculation of net human resources
requirements based on present inventory
of human resources.
• Taking steps to mould, change, and develop
the strength of existing employees in the
organisation so as to meet the future human
resource requirements.

• Preparation of action programmes to get the

rest of human resources from out side the
organisation and to develop the human
resources of existing employees
c) Recruitment: It is the process of
searching for prospective employees
and stimulating them to apply for jobs
in an organisation. It deals with:

• Identification of existing sources of

applicants and developing them
• Creation/identification of new sources
of applicants
• Stimulating the candidates to apply
for jobs in the organisation
• Striking a balance between internal
and external sources
d) Selection: It is the process of ascertaining the
qualifications, experience, skill, knowledge etc.,
of an applicant with a view to appraising his/her
suitably to a job. This function includes:

• Framing and developing application blanks

• Creating and developing valid and reliable
testing techniques
• Formulating interviewing techniques
• Checking of references
• Setting up medical examination policy and
procedure
• Line Manager’s decision
• Sending letters of appointment and rejection
• Employing the selected candidates who report
for duty
e) Placement: It is the process of
assigning the selected candidate with
the most suitable job in terms of job
requirements. It is matching of
employee specifications with job
requirements. This function includes:

• Counselling the functional managers

regarding placement
• Conducting follow-up study,
appraising employee performance in
order to determine employee
adjustment with the job
• Correcting misplacements, if any
f) Induction and Orientation: Induction and
orientation are the techniques by which a new
employee is rehabilitated in the changed
surrounding and introduced to the practices,
policies, purposes and people etc., of the
organisation.

• Acquaint the employee with the company

philosophy, objectives, policies, career
planning and development, opportunities,
product, market share, social and community
standing, company history, culture etc.
• Introduce the employee to the people with
whom he or she has to work such as peers,
supervisors and subordinates.
• Mould the employee attitude by orienting him
to the new working and social environment.
2. Development of HR: It is the process of
improving, moulding and changing the skills,
knowledge, creative ability, aptitude, attitude,
values, commitment, etc., based on present and
future job and organisational requirements. This
function includes:

a) Performance and Potential Appraisal: It is the

systematic evaluation of individuals with
respect to their performance on the job and
their potential for development. It includes:

• Developing policies, procedures and techniques

• Helping the functional managers
• Reviewing of reports and consolidation of
reports
• Evaluating the effectiveness of various
programs
b) Training: It is the process of imparting
the employees the technical and
operating skills and knowledge. It
includes:

• Identification of training needs of the

individuals and the company.
• Developing suitable training programs.
• Helping and advising line management in
the conduct of training programmes.
• Imparting of requisite job skills and
knowledge to employees.
• Evaluating the effectiveness of training
programmes.
c) Executive Development: It is the process
of designing and conducting suitable
executive development programmes so
as to develop the managerial and human
relations skill of employees. It includes:
• Identification of the areas in which
Executive development is needed.
• Conducting development programs.
• Motivating the executives
• Designing special development programs
for promotions
• Using the services of specialists,
and/or utilising the institutional
executive development
programmes.

• Evaluating the effectiveness of

executive development
programmes.
d) Career Planning and Development: It is the planning of one’s
career and implementation career plans by means of
education, training, job search and acquisition of work
experiences. It includes internal and external mobility.

• Internal mobility: It includes vertical and horizontal

movement of an employee within an organisation. It
consists of transfer, promotion and demotion.

…………continued
-Transfer: It is the process of placing
employees in the same level jobs
where they can be utilised more
effectively consistence with their
potentialities and needs of the
employees and the organisation. It
also deals with:

-Developing transfer
policies and procedures
-Guiding employees and
line management on transfers.
-Evaluating the
execution of transfer policies and
procedures
-Promotion: It deals with upward reassignment
given to an employee in the organisation to
occupy higher position which commands
better status and/or pay keeping in view the
human resources of the employees and the
job requirements.

-This function covers the

formulating of equitable, fair and consistent
promotion policies and procedures.
- Advising line management
and employees on matters relating to
promotions
-Evaluating the execution of
promotion policies and procedures.
-Demotion: It deals with downward
reassignment to an employee in the
organisation.

-Develop equitable, fair

and consistent demotion policies and
procedures.
- Advising line
management and employees on
matters relating to demotions.
- Evaluating the
execution of demotion policies and
procedures.
e) Organisation Development:

It is a planned process designed to

…improve organisational effectiveness and health through

……….modifications in individual and group behavior, culture

and systems of the organisation

………using knowledge and technology of applied behavioral

science.
3. Compensation: It is the process of
providing adequate, equitable and fair
remuneration to the employees. It
includes:

a) Job Evaluation: It is the process of

determining relative worth of jobs:
• Select suitable job evaluation
techniques.
• Classify jobs into various categories.
• Determining relative value of jobs in
various categories.
b) Wage and Salary Administration:
This is the process of developing
and operating a suitable wage
and salary program. It covers:

• Conducting wage and salary

survey.
• Determining wage and salary
rates based on various factors.
• Administering wage and salary
programms.
• Evaluating its effectiveness.
d) Bonus: It includes payment of
statutory (legal) bonus according to
the Payment of Bonus Act, 1965, and
its latest amendments.
4. Integration: Process of Reconciling the goals of the
organisation with goals of its members.

It Involves :

• Motivating employees through various financial and

non-financial incentives,
• providing job satisfaction,
• Handling employee grievances,
• Discipline
• collective bargaining
• Workers’ Participation in Management
• Conflict Resolution
• Developing Sound Human Relations
• Employee Counselling
• Improving Quality of Work Life
5. Maintenance Function: Concerned with
protecting and promoting the physical and
mental health of employees.

It includes:

• Fringe Benefits (Housing, medical aid,

educational facilities, conveyance facilities etc.)
• Social Security Measures (Provident Fund,
Pension, Gratuity, Maternity Benefits,
Injury/Disablement Allowance, Group Insurance
etc.)
• Health, Safety and Welfare Measures
• Human Resource Records, Research and Audit
• 3. Advisory Functions: Human Resource Management is expert in managing
human resources and so can give advice on matters related to human
resources of the organization. Human Resource Management can offer
advice to:
1. Advise to Top Management
Personnel manager advises the top management in
• formulation and
• evaluation of personnel programs, policies, and procedures.

• 2. Advise to Departmental Heads

Personnel manager advises the heads of various departments on matters
such as
• manpower planning,
• job analysis,
• job design,
• recruitment,
• selection,
• placement,
• training,
• performance appraisal, etc.