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Strategy With Resources and Capabilities: HRM Helps Companies Grow

Human Resource Management (HRM) is crucial for company growth by developing employees, managing skills, and creating effective policies to avoid issues like poor hiring and legal problems. It involves strategic alignment with business goals, competency building through coordinated actions, and addressing challenges specific to regions like India. HRM encompasses various functions including recruitment, training, performance management, and ensuring legal compliance to enhance overall organizational effectiveness.

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0% found this document useful (0 votes)
30 views30 pages

Strategy With Resources and Capabilities: HRM Helps Companies Grow

Human Resource Management (HRM) is crucial for company growth by developing employees, managing skills, and creating effective policies to avoid issues like poor hiring and legal problems. It involves strategic alignment with business goals, competency building through coordinated actions, and addressing challenges specific to regions like India. HRM encompasses various functions including recruitment, training, performance management, and ensuring legal compliance to enhance overall organizational effectiveness.

Uploaded by

1032221876
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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HRM helps companies grow by developing employees, managing skills, and creating strong

policies. HRM is essential for avoiding problems like poor hiring, low performance, and legal
issues.

1. Strategy with Resources and Capabilities

●​ Strategy is about using a company’s strengths (resources & capabilities) to take


advantage of opportunities in the market.
●​ Internal resources (like employees, skills, and technology) are more reliable for
strategy-making.
●​ Two Key Factors Affecting Strategy:
1.​ The Firm – Includes company goals, resources, and structure.
2.​ The Industry Environment – Includes competitors, customers, and suppliers.

💡 Key Idea: A company’s success depends on how well it matches its internal strengths with
external opportunities.

2. Competency = Capabilities + Coordinated Action

●​ A competency is built when multiple skills and resources are combined


through structured steps and teamwork.
●​ Steps to Build Competency:
○​ Follow routines (repeated processes).
○​ Develop organizational processes (methods for coordination).
○​ Ensure these processes are formalized and consistent across
teams.

💡 Key Idea: A company improves by coordinating its resources in a


structured way.
/3. Why Competency-Driven Strategy Works

●​ Companies should focus on a few key strengths instead of trying to be good at


everything.
●​ Winning Companies:
○​ Invest heavily in their strongest areas.
○​ Organize everything around their core capabilities.
○​ Use these strengths to grow and compete.

💡 Key Idea: Companies that specialize in a few key areas perform better than those that
spread themselves too thin.

4. Human Capabilities Broaden the Horizon

●​ To stay competitive, companies must encourage:


○​ Curiosity – Asking questions and seeking knowledge.
○​ Imagination – Thinking creatively.
○​ Creativity – Finding new ways to solve problems.
○​ Courage – Taking risks.
○​ Empathy – Understanding others.
○​ Capability Building – Constant learning.
○​ A Safe-to-Fail Environment – Encouraging innovation without fear.

💡 Key Idea: Businesses should develop a culture where employees feel safe to experiment
and grow.

5. HR Policies and Practices to Build Competencies

●​ HR practices help employees develop skills needed to meet business goals.


●​ Key HR areas:
1.​ Recruitment & Placement – Hiring the right people.

2.​ Training & Development – Improving employee skills.


3.​ Compensation & Benefits – Offering fair salaries and perks.
4.​ Employee Relations – Ensuring good workplace culture.
5.​ Legal Compliance – Following labor laws.
💡 Key Idea: HR policies should focus on building skills that help the company achieve its
goals.

6. What is Human Resource Management?

●​ General Management is to perform five basic functions:

1. Planning

2. Organizing

3. Staffing

4. Leading

5. Controlling

●​ 3. Staffing:
●​ HRM is a process that includes:
1.​ Acquiring – Hiring employees.
2.​ Training – Helping them learn new skills.
3.​ Appraising – Evaluating their performance.
4.​ Compensating – Paying them fairly.
5.​ Ensuring Health & Safety – Keeping the workplace safe.

💡 Key Idea: HRM ensures employees are hired, trained, and managed effectively.

7. People Aspects of HR Management

❖​ HR covers various responsibilities, including:


➢​ Conducting job analysis (understanding job roles).
➢​ Planning workforce needs and recruiting.
➢​ Selecting candidates.
➢​ Training new employees.
➢​ Managing salaries and benefits.
➢​ Performance appraisal (evaluating work).
➢​ Employee communication (interviews, feedback, discipline).
➢​ Developing managers.
➢​ Building employee relations.

All Managers should know about:

❖​ Labor law and statutory compliances.


❖​ Employee health and safety.
❖​ Handling grievances and labor relations.

💡 Key Idea: HRM involves multiple tasks to manage employees effectively.

8. Why Learn HR Management?

●​ Good HR practices help avoid:


○​ Employees underperforming.
○​ Hiring the wrong people.
○​ High turnover (employees leaving frequently).
○​ Legal issues like discrimination lawsuits.
○​ Workplace safety problems.
○​ Non-compliance with labor laws.
○​ Lack of training opportunities.

Good HR Management can help build competencies that will help your company improve its
performance, profits and achieve its strategic goals

💡 Key Idea: Learning HRM helps organizations run smoothly and avoid costly mistakes.

9. Challenges of HRM in India

●​ Common HR challenges in India include:


1.​ Creating a high-performance culture – Encouraging employees to do their
best.
2.​ Retaining talent – Keeping skilled employees.
3.​ Recruitment issues – Finding qualified candidates.
4.​ Hierarchical structures – Managing rigid organizational levels.
5.​ Linking training to performance – Ensuring training leads to better work.
6.​ Compensating knowledge workers – Paying fairly for specialized skills.
7.​ Managing conflicts – Handling workplace disputes.
8.​ Going global – Adapting HR strategies for international operations.
💡 Key Idea: Indian companies must overcome these challenges to improve employee
management and business success.
PPT 2

1. HR Profession

●​ HR involves managing human capital (employees) and ensuring they align with
company goals.
●​ HR professionals must understand employment laws and business strategy.
●​ Types of HR Roles:
○​ HR Generalist – Handles multiple HR functions like hiring, training, and
employee relations.
○​ HR Specialist – Focuses on one area, such as recruitment, payroll, or benefits.

2. HR Department

●​ Key HR Functions:
1.​ Acquiring – Hiring employees.
2.​ Training – Developing employee skills.
3.​ Appraising – Evaluating employee performance.
4.​ Compensating – Managing salaries and benefits.
5.​ Ensuring Compliance – Following labor laws and employee safety rules.

3. HR Alignment with Business Strategy

HR helps businesses grow by focusing on:

●​ Global Expansion – Hiring employees internationally and ensuring compliance with


different labor laws.
●​ Innovation & Technology – Training employees on new technologies.
●​ Cost Reduction – Managing workforce expenses and using contract-based employees.
●​ Diversity & Inclusion – Encouraging equal opportunities for employees from different
backgrounds.
●​ Customer Satisfaction – Training employees for better service.
●​ Sustainability & CSR – Encouraging eco-friendly practices and community
engagement.
●​ Agility & Responsiveness – Creating a flexible work environment.

4. Line Management Responsibility


●​ Line Managers are responsible for directly overseeing employees and ensuring they
perform well.
●​ Their Duties Include:
1.​ Hiring the right person.
2.​ Onboarding and training new employees.
3.​ Evaluating performance and giving feedback.
4.​ Creating a positive work culture.
5.​ Managing team budgets.

5. Specialized Human Resources

●​ As companies grow, HR specialists support line managers by:


1.​ Recruitment – Finding and hiring employees.
2.​ Performance Evaluation – Tracking employee performance.
3.​ Training & Development – Organizing learning programs.
4.​ Workplace Culture – Handling employee grievances and conflicts.
5.​ Compensation & Benefits – Offering fair pay and rewards.
6.​ Compliance – Following laws and regulations.

6. Measuring Human Resources

HR performance is measured using different metrics:

Recruitment Metrics:

1.​ Time-to-Fill – How long it takes to hire a new employee.


2.​ Cost-per-Hire – The total hiring cost (advertising, onboarding, etc.).
3.​ Quality of Hire – How well new employees perform.

Employee Engagement Metrics:

1.​ Employee Satisfaction Index – Measures how happy employees are.


2.​ Turnover Intention Rate – Tracks employees who plan to leave.
3.​ Employee Net Promoter Score (eNPS) – Measures how likely employees are to
recommend the company.

Training & Development Metrics:

1.​ Training Effectiveness – Measures improvement in employee skills.


2.​ Learning Hours per Employee – Tracks training time.
3.​ Return on Training Investment (ROTI) – Assesses training benefits.
Performance Management Metrics:

1.​ Goal Attainment – Percentage of employees meeting their targets.


2.​ Feedback & Recognition – Impact of appreciation programs.

Compensation & Benefits Metrics:

1.​ Total Rewards Cost – Total salary and benefits expense.


2.​ Compensation Ratio – Comparing salaries within the industry.
3.​ Benefit Utilization – How often employees use company benefits.

Employee Relations Metrics:

1.​ Number of Employee Complaints – Tracks workplace issues.


2.​ Time Taken to Resolve Complaints – Measures problem resolution speed.

Diversity & Inclusion Metrics:

1.​ Diversity Index – Representation of different groups.


2.​ Inclusion Score – Employee perception of diversity.
3.​ Diversity Recruitment Metrics – Effectiveness of inclusive hiring.

HR Operations Metrics:

1.​ HR Technology Adoption Rate – Use of HR software.


2.​ HR Budget Variance – Difference between planned and actual HR expenses.

Health & Well-Being Metrics:

1.​ Absenteeism Rate – Number of working hours lost due to employee absence.
2.​ Health & Wellness Program Participation – Employee engagement in wellness
programs.

7. Human Resources Accounting

●​ Calculates the financial value of HR activities and their impact on the company.
●​ Helps companies make better decisions on hiring, training, and retention.

8. Human Resources Audit

●​ A systematic review of HR policies and processes to ensure efficiency and legal


compliance.
●​ Examples:
1.​ Recruitment Audit – Ensures hiring is fair and unbiased.
2.​ Diversity Audit – Checks if workplace diversity goals are met.
3.​ Compensation Audit – Compares company salaries with industry standards.
4.​ Training Audit – Measures training effectiveness.

9. Human Resource Information Systems (HRIS)

●​ HRIS is software that helps manage HR tasks like payroll, hiring, and employee records.
●​ Benefits of HRIS:
1.​ Improved Data Accuracy – Reduces errors in employee records.
2.​ Automates HR Processes – Saves time on payroll and attendance.
3.​ Enhances Decision-Making – Provides useful reports and insights.

Examples of HRIS Software:

●​ Workday – Manages payroll and HR planning.


●​ SAP SuccessFactors – Handles performance tracking.
●​ Oracle Cloud HCM – Manages employee rewards and analytics.
●​ ADP Workforce Now – Payroll and talent management.
●​ PeopleSoft – HR and payroll management.

10. Importance of HR System Design

A well-designed HR system ensures:

1.​ Strategic Alignment – HR efforts support company goals.


2.​ Efficiency & Productivity – Reduces manual work and improves workflow.
3.​ Talent Acquisition & Retention – Helps attract and keep the best employees.
4.​ Employee Development – Encourages learning and growth.
5.​ Compliance & Risk Management – Ensures legal and ethical practices.
6.​ Data-Driven Decision Making – Uses HR data for smart choices.
7.​ Cultural Integration – Builds a positive and inclusive work culture.
8.​ Employee Well-Being – Promotes health and work-life balance.

Conclusion

●​ HR plays a critical role in business success by managing people effectively.


●​ Measuring HR performance helps improve employee satisfaction and company
growth.
●​ Using HR technology makes managing employees easier and more efficient.
●​ PPT 3

1. HR Department
●​ HR handles hiring, training, salaries, performance evaluation, and legal
compliance.
●​ HR ensures employees are managed well and company goals are met.

2. Recruitment and Staffing


●​ Staffing is the full process of hiring, managing, and retaining employees.
●​ Recruitment is the first step, where HR searches for, attracts, and selects the right
people for job openings.

3. Key Steps in Recruitment


1.​ Identify Job Openings – Based on company needs.
2.​ Create a Job Description – Define roles, responsibilities, and required skills.
3.​ Sourcing Candidates – Find potential employees using job portals, social media, and
referrals.
4.​ Screening & Selection – Shortlist and interview candidates.
5.​ Onboarding – Train and integrate new employees.

4. Job Description (JD)


A JD clearly defines a job role and should include:

1.​ Job Title (e.g., Software Developer)


2.​ Job Summary – A brief description of the role.
3.​ Responsibilities – Specific duties for the position.
4.​ Qualifications – Required education and experience.
5.​ Skills – Technical and soft skills needed.
6.​ Work Environment – Company culture and work setting.
7.​ Application Process – How to apply.
8.​ Company Overview – A short intro to the company.
9.​ Equal Opportunity Statement – Ensuring fair hiring for all.
10.​Salary & Benefits (optional).

5. Sourcing in Recruitment
●​ Sourcing is actively finding candidates rather than waiting for them to apply.
●​ Methods include:
○​ Job postings on company websites and social media.
○​ Networking at events and online platforms.
○​ Employee referrals (asking current employees to recommend candidates).
○​ Using AI and recruitment tools to find the best candidates.

6. Screening & Selection


●​ Screening: Filtering applications to find the most suitable candidates.
○​ Resume review
○​ Pre-employment tests
○​ Phone screenings
●​ Selection: Choosing the final candidate through interviews and background checks.
○​ Detailed interviews
○​ Reference checks
○​ Salary negotiations

7. Onboarding
●​ Onboarding helps new employees adjust to the company.
●​ Steps include:
1.​ Welcome communication – Introducing the new hire to the team.
2.​ Training on company policies – Rules and regulations.
3.​ Providing equipment – Laptops, access cards, etc.
4.​ Performance expectations – Setting job goals.
5.​ Mentorship – Assigning a guide to help the new employee.

8. Staffing Beyond Recruitment


●​ Staffing isn’t just hiring! It also includes:
1.​ Career Development – Helping employees grow.
2.​ Succession Planning – Preparing employees for future leadership roles.
3.​ Performance Management – Tracking and improving employee performance.
4.​ Employee Engagement – Keeping employees motivated.
5.​ Training & Development – Improving employee skills.
6.​ Diversity & Inclusion – Ensuring fair opportunities for all employees.
7.​ Legal Compliance – Following labor laws.
8.​ Retention Strategies – Keeping valuable employees in the company.
9.​ Exit Management – Handling employee departures smoothly.

9. Career Development
●​ Career development helps employees grow within the company.
●​ It involves:
○​ Self-reflection – Understanding personal strengths and weaknesses.
○​ Setting career goals – Short-term and long-term goals.
○​ Training programs – Workshops and certifications.
○​ Mentorship – Learning from experienced employees.
○​ Networking – Connecting with industry experts.

10. Succession Planning


●​ Preparing employees to take on leadership roles in the future.
●​ Ensures that if a leader leaves, there is a trained employee ready to step in.

11. Performance Management


●​ Tracking employee performance to make sure they meet company goals.
●​ Steps include:
1.​ Setting SMART goals – Clear, measurable targets.
2.​ Regular check-ins – Monitoring progress.
3.​ Performance reviews – Giving employees feedback.
4.​ Training & development – Improving weak areas.
5.​ Recognition & rewards – Appreciating good performance.
6.​ Performance Improvement Plans (PIP) – Helping underperforming employees.
12. Employee Engagement
●​ Employee engagement means keeping workers motivated and committed.
●​ Ways to improve engagement:
○​ Clear communication
○​ Recognition and appreciation
○​ Work-life balance
○​ Leadership support
○​ Career development opportunities

13. Training & Development


●​ Training helps employees improve skills for their current job.
●​ Development prepares employees for future roles.
●​ Types of training:
1.​ Technical Training – Learning job-related skills.
2.​ Soft Skills Training – Improving communication and teamwork.
3.​ Leadership Training – Developing management skills.
4.​ Compliance Training – Learning company policies and legal requirements.

14. Diversity & Inclusion


●​ Ensuring fair opportunities for employees of different genders, races, and
backgrounds.
●​ A diverse team brings different ideas and makes the company more innovative.

15. Legal Compliance


●​ HR must follow labor laws to avoid legal problems.
●​ Key laws include:
○​ Minimum wage laws
○​ Maternity and paternity leave
○​ Workplace safety rules
○​ Anti-discrimination laws
16. Retention Strategies
●​ Retention means keeping good employees in the company.
●​ Ways to retain employees:
○​ Career growth opportunities
○​ Competitive salaries and benefits
○​ Flexible work policies
○​ A positive work environment

17. Exit Management


●​ When an employee leaves, HR ensures a smooth transition.
●​ Steps include:
1.​ Resignation process – Handling notice periods and paperwork.
2.​ Exit interviews – Asking employees for feedback on why they’re leaving.
3.​ Final settlement – Salary dues, experience letters, etc.
4.​ Alumni networks – Keeping in touch with former employees.

Final Thoughts
●​ HRM covers everything from hiring to employee exit.
●​ A good HR strategy keeps employees happy, motivated, and productive.
●​ HR ensures the company meets its goals while following labor laws.
●​ PPT 4

1. HR Department
The HR department has different functions:

1.​ Acquiring – Hiring new employees.


2.​ Training – Helping employees develop skills.
3.​ Appraising – Evaluating employee performance.
4.​ Compensating – Managing salaries and benefits.
5.​ Compliance & Employee Relations – Ensuring a safe and fair workplace.

2. Compensation and Benefits


●​ Compensation = Salary, wages, and bonuses paid to employees.
●​ Benefits = Extra perks like insurance, retirement plans, paid leaves, etc.
●​ Types of Compensation:
○​ Direct Compensation – Salary, wages, bonuses.
○​ Indirect Compensation – Insurance, pension, paid leaves, flexible work hours.

3. Principles of Compensation Management


1.​ Equity & Fairness – Employees should be paid fairly based on their skills and
experience.
2.​ Competitiveness – Salaries should be competitive to attract and retain top talent.
3.​ Transparency – Employees should understand how their salary is decided.

4. Designing Compensation Packages


●​ Align with company strategy – If a company wants to attract top talent, it should offer
competitive salaries.
●​ Market conditions – Salaries should match industry standards.
●​ Legal compliance – Salaries should follow minimum wage laws and equal pay
regulations.
5. Key Components of Benefit Programs
1.​ Healthcare Benefits – Medical insurance, preventive checkups.
2.​ Retirement Plans – Provident Fund (PF), pension schemes.
3.​ Paid Time Off – Sick leave, maternity/paternity leave.
4.​ Employee Assistance Programs (EAPs) – Counseling, flexible work schedules.
5.​ Wellness Programs – Gym memberships, yoga sessions.
6.​ Education & Training – Skill development programs.
7.​ Recognition Programs – Rewards for outstanding performance.

6. Trends in Compensation & Benefits


●​ Flexible Benefits – Employees can choose their perks.
●​ Wellness Programs – Focus on mental and physical health.
●​ Remote Work & Hybrid Work – Work-from-home options.
●​ Outcome-Based Benefits – Pay based on employee results instead of work hours.

7. Training and Development


●​ Training – Helps employees improve their skills.
●​ Development – Prepares employees for future roles.
●​ Aligning training with company goals – Training should help employees meet
company targets.

8. Training and Development for New Employees


●​ Onboarding – Introducing new employees to the company.
●​ Orientation – Teaching them company policies and culture.
●​ Skill Training – Helping them learn job-related skills.

9. Training and Development for Existing Employees


●​ Competency Building – Identifying skill gaps and providing training.
●​ Career Development – Helping employees grow within the company.
●​ Performance-Based Training – Providing training based on employee performance
reviews.
●​ Upskilling & Reskilling – Training employees in new technologies or roles.

10. Designing Training Programs


1.​ Set clear objectives – Define what employees should learn.
2.​ Make training engaging – Use interactive methods.
3.​ Ensure training is relevant – Teach skills needed for the job.
4.​ Provide feedback – Help employees improve.
5.​ Check if training is effective – Measure learning outcomes.

11. Training and Development Challenges


●​ Choosing the right training mode – Online vs. offline training.
●​ Finding good trainers – In-house vs. external trainers.
●​ Providing quality materials – Books, online resources, and tools.
●​ Assessing training effectiveness – Measuring whether training is useful.

12. Kirkpatrick’s Four-Level Training Evaluation Model


1.​ Reaction – How employees feel about the training.
2.​ Learning – How much employees have learned.
3.​ Behavior – If employees are applying new skills.
4.​ Results – How training improves company performance.

13. Employee Relations


●​ Managing the relationship between employers and employees.
●​ Includes conflict resolution, grievance handling, and communication.
●​ HR ensures a positive work environment where employees feel valued.
14. Role of HR in Employee Relations
1.​ Setting Policies – Creating rules for employee behavior.
2.​ Employee Engagement – Organizing team-building activities.
3.​ Legal Compliance – Ensuring labor laws are followed.
4.​ Conflict Resolution – Handling employee disputes.

15. Employee Engagement Strategies


1.​ Clear Communication – Keep employees informed.
2.​ Recognition & Rewards – Appreciate good work.
3.​ Training & Development – Help employees grow.
4.​ Work-Life Balance – Provide flexible work options.
5.​ Inclusive Work Culture – Ensure fair treatment for all employees.

16. Trends & Challenges in Employee Relations


●​ Remote Work & Virtual Collaboration – Managing employees working from different
locations.
●​ Work-Life Balance – Ensuring employees don’t feel overworked.
●​ Diversity & Inclusion – Encouraging fairness for all employees.
●​ Mental Health Awareness – Supporting employees’ well-being.

17. Legal Compliance in HR


HR must follow labor laws related to:

1.​ Minimum Wages – Paying employees fairly.


2.​ Maternity & Paternity Leave – Providing paid leaves for parents.
3.​ Social Security Benefits – Provident Fund (PF), Employee State Insurance (ESI).
4.​ POSH Act – Preventing workplace harassment.
5.​ Data Privacy – Protecting employee information.
6.​ Working Hours & Overtime – Following labor laws on shifts and wages.
18. Performance Management
●​ Tracking employee performance to help them improve.
●​ Helps employees grow and meet company goals.

19. Performance Management Process


1.​ Goal Setting – Defining clear targets.
2.​ Monitoring Performance – Giving feedback regularly.
3.​ Tracking KPIs – Measuring work progress.
4.​ Appraisals – Reviewing employee performance.
5.​ Training & Development – Helping employees improve skills.
6.​ Recognition & Rewards – Encouraging good work.
7.​ Performance Improvement Plans (PIP) – Helping underperforming employees.

20. Performance Management Challenges


1.​ Bias in Evaluations – Managers may have personal biases.
2.​ Employee Resistance – Employees may not accept feedback easily.
3.​ Lack of Training for Managers – Some managers don’t know how to evaluate
performance.
4.​ Goal Alignment Issues – Ensuring employee goals match company goals.
5.​ Legal & Ethical Concerns – Performance reviews must be fair and non-discriminatory.

Final Thoughts
●​ HR is responsible for hiring, training, managing employee relations, and ensuring
fair compensation.
●​ Companies must focus on fair pay, good training, and strong employee engagement
to succeed.
●​ HR policies should follow legal guidelines to avoid workplace conflicts and issues.
PPT 5

1. Employee Relations
●​ Employee relations means managing the relationship between the employer and
employees.
●​ It includes:
○​ Communication – Keeping employees informed.
○​ Conflict resolution – Solving disputes at work.
○​ Grievance handling – Addressing employee complaints.
○​ Employee engagement – Keeping employees motivated and happy.

2. Role of HR in Employee Relations


HR ensures a good work environment by:

1.​ Setting policies – Creating a code of conduct and rules.


2.​ Employee engagement – Organizing team activities, feedback sessions, and reward
programs.
3.​ Legal compliance – Making sure the company follows labor laws.
4.​ Conflict resolution – Solving workplace issues fairly.

3. Employee Engagement Strategies


To keep employees happy, HR focuses on:

1.​ Clear communication – Regular updates and meetings.


2.​ Recognition & appreciation – Rewarding good work.
3.​ Professional development – Training and growth opportunities.
4.​ Work-life balance – Flexible work hours and wellness programs.
5.​ Inclusive culture – Ensuring diversity and equal opportunities.

4. Trends and Challenges in Employee Relations


Some modern HR challenges include:

1.​ Remote work – Managing employees working from different locations.


2.​ Work-life balance – Preventing employee burnout.
3.​ Diversity and inclusion – Promoting fairness at work.
4.​ Mental health awareness – Supporting employee well-being.

5. Legal Compliance in HR
HR must follow labor laws to protect employee rights.​
Some important laws include:

1.​ Minimum Wage Standards – Ensuring fair salaries.


2.​ Maternity & Paternity Leave – Paid time off for new parents.
3.​ Social Security Benefits – Provident Fund (PF), Employee State Insurance (ESI).
4.​ POSH Act – Preventing sexual harassment at work.
5.​ Privacy & Data Protection – Keeping employee data safe.
6.​ Work Hours & Overtime Rules – Setting fair work hours.

6. Performance Management
●​ Performance management is about tracking and improving employee performance.
●​ It helps employees meet company goals and grow in their careers.

7. Performance Management Process


1.​ Goal setting – Defining clear targets for employees.
2.​ Continuous monitoring – Giving feedback and tracking progress.
3.​ Data-driven insights – Measuring work performance.
4.​ Appraisals – Formal reviews to evaluate employee work.
5.​ Training & development – Helping employees improve.
6.​ Recognition & rewards – Encouraging good work.
7.​ Performance improvement plans (PIP) – Helping underperforming employees.

8. Performance Management Challenges


1.​ Bias in evaluations – Unfair assessments due to personal opinions.
2.​ Employee resistance – Some employees dislike feedback.
3.​ Lack of training – Managers may not know how to evaluate employees properly.
4.​ Goal alignment issues – Ensuring employee goals match company goals.
5.​ Legal concerns – Performance reviews must be fair and non-discriminatory.

9. Performance Evaluation Form


●​ A performance evaluation is a document that tracks an employee’s performance.
●​ It usually includes:
○​ Technical skills rating – Evaluating job-related skills.
○​ Project performance – Checking how well an employee completes tasks.
○​ Teamwork & communication – Reviewing how well employees work with
others.
○​ Additional contributions – Noting extra efforts made by the employee.

10. Organizational Design


●​ Organizational design is how a company structures its teams and departments.
●​ It ensures smooth communication and efficiency.

Key principles of organizational design:

1.​ Alignment with business strategy – Company structure should match business goals.
2.​ Optimized resources – Efficiently using employees and technology.
3.​ Accountability & empowerment – Clearly defining responsibilities.
4.​ Scalability – Making sure the structure works for future growth.
5.​ Innovation – Encouraging creativity and improvements.

11. Types of Organizational Structures


1. Functional Structure

●​ Employees are divided into departments like marketing, finance, and HR.
●​ Best for stable environments with repeatable processes.

2. Divisional Structure

●​ Employees are grouped based on products, locations, or customer types.


●​ Suitable for large companies with different business units.

3. Matrix Structure

●​ Employees report to two managers – one from their department and one from a project.
●​ Best for dynamic companies needing cross-functional collaboration.

4. Network/Agile Structure

●​ Uses teams, partners, and freelancers for fast and flexible work.
●​ Best for tech companies and startups.

12. Human Resource Information Systems (HRIS)


HRIS is software that helps HR manage employee data and tasks.​
It is used for:

●​ Payroll management – Automating salary calculations.


●​ Employee records – Storing all employee details in one place.
●​ Recruitment tracking – Managing job applications.
●​ Performance monitoring – Tracking employee progress.

13. HRIS Benefits


1.​ Increased efficiency – Automates HR tasks, saving time.
2.​ Better decision-making – Provides useful reports on employees.
3.​ Legal compliance – Ensures HR follows labor laws.
4.​ Employee self-service – Employees can check their details and apply for leave.

14. HRIS Trends


1.​ AI & Machine Learning – AI helps predict employee performance.
2.​ Mobile accessibility – Employees can access HR tools on their phones.
3.​ Integration with new technologies – HRIS can connect with blockchain and VR.
15. Popular HRIS Software
1.​ Workday – Manages HR, payroll, and workforce planning.
2.​ SAP SuccessFactors – Helps with performance tracking and employee engagement.
3.​ Oracle Cloud HCM – Offers payroll and talent management.
4.​ ADP Workforce Now – Handles payroll and attendance tracking.
5.​ PeopleSoft – Helps manage HR, payroll, and training.

Final Thoughts
●​ HR is responsible for hiring, training, managing employee relations, performance
management, and compliance.
●​ A well-structured HR system helps a company grow while keeping employees
satisfied.
●​ Using HRIS software makes HR tasks easier and more efficient.
IMPORTANT:​

1. Difference Between Functional and Matrix Structure


Functional Structure

●​ Employees are grouped based on their expertise (e.g., Marketing, Finance, HR).
●​ Each department has a single manager.
●​ Best for stable companies with clear job roles.

Matrix Structure

●​ Employees report to two managers (functional + project manager).


●​ Allows cross-functional teamwork.
●​ Best for dynamic companies where collaboration is needed.

Block Diagram:

Functional Structure:
---------------------
CEO

├── Marketing Dept
├── Finance Dept
├── HR Dept
└── IT Dept

Matrix Structure:
-----------------
CEO

├── Marketing Head ──── Project A ─── Employee
├── Finance Head ──── Project B ─── Employee
├── HR Head ──── Project C ─── Employee
└── IT Head ──── Project D ─── Employee

2. Line Management Responsibility


●​ Line managers directly supervise employees and ensure they meet company goals.
●​ They are responsible for:
1.​ Hiring – Selecting the right candidate.
2.​ Training – Teaching employees their job.
3.​ Performance evaluation – Giving feedback and appraisals.
4.​ Employee engagement – Keeping employees motivated.
5.​ Cost management – Managing team budgets.

3. Measuring HR (4-5 Methods)


HR success can be measured using:

1.​ Employee Turnover Rate – % of employees leaving the company.


2.​ Time-to-Fill Vacancies – How long it takes to hire a new employee.
3.​ Training Effectiveness – Checking if training improves employee performance.
4.​ Employee Satisfaction Index – Surveying employee happiness.
5.​ Performance Ratings Distribution – Tracking how employees are rated.

4. How HR Relates to Business Strategy


HR supports business strategy by:

1.​ Hiring the right talent – Employees must align with company goals.
2.​ Training & development – Skills should match future company needs.
3.​ Performance management – Ensuring employees contribute effectively.
4.​ Employee engagement – Keeping employees motivated and productive.
5.​ Compliance & risk management – Avoiding legal issues.

Block Diagram:

Business Strategy ───► HR Strategy ───► Employee Hiring & Training


───► Business Growth

5. Why HR Department is Important


The HR department:
1.​ Finds & hires the right employees.
2.​ Provides training to improve skills.
3.​ Manages salaries, benefits, and promotions.
4.​ Ensures employees follow company rules.
5.​ Creates a positive work environment.

Block Diagram:

HR Department ─► Hiring ─► Training ─► Employee Satisfaction ─►


Business Success

6. Curve Patrix Model


●​ The Curve Patrix Model is used in HR to predict employee performance and growth.
●​ It maps employee skills and competencies over time.
●​ Helps HR decide when to promote or upskill employees.

Block Diagram (Example Representation):*

Skill Level ↑
│ ░░░░░░
│ ░ ░ Curve Patrix Model
│ ░ ░ (Employee Growth)
│ ░ ░
│░░░░░░░░░░░░░░
└────────────────→ Time

7. Training and Development


●​ Training – Short-term learning to improve job skills.
●​ Development – Long-term growth for leadership roles.
●​ Methods:
1.​ On-the-job training – Learning while working.
2.​ Workshops – Skill-building sessions.
3.​ E-learning – Online courses.
4.​ Mentorship – Learning from seniors.
8. Performance Management Process & Challenges
Performance Management Process

1.​ Set goals – Define employee targets.


2.​ Monitor progress – Regular feedback.
3.​ Evaluate performance – Performance reviews.
4.​ Provide training – Address weaknesses.
5.​ Give rewards – Recognize good work.

Challenges

1.​ Bias in evaluations – Unfair assessments.


2.​ Employee resistance – Fear of feedback.
3.​ Lack of proper training – Managers not trained in evaluation.
4.​ Legal risks – Performance reviews must be non-discriminatory.

Block Diagram:

mathematica
CopyEdit
Set Goals ─► Monitor ─► Evaluate ─► Train ─► Reward ─► Business
Success

9. Feedback Mechanism
●​ HR uses feedback to improve employee performance.
●​ Types of feedback:
1.​ 360-degree feedback – Input from peers, managers, and clients.
2.​ One-on-one feedback – Direct conversations with managers.
3.​ Anonymous surveys – Employees provide feedback privately.
4.​ Performance appraisals – Yearly reviews.

Block Diagram:

nginx
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Performance Review ─► Feedback ─► Employee Improvement ─► Company
Growth
10. HRIS Examples (HR Information Systems)
HRIS software helps HR manage employee data.​
Popular examples:

1.​ Workday – Manages HR and payroll.


2.​ SAP SuccessFactors – Tracks employee performance.
3.​ Oracle Cloud HCM – Handles salaries and hiring.
4.​ ADP Workforce Now – Automates payroll and attendance.
5.​ PeopleSoft – Provides HR and payroll solutions.

11. HR Functions
1.​ Recruitment – Hiring the right people.
2.​ Training & Development – Improving employee skills.
3.​ Performance Management – Tracking employee work.
4.​ Compensation & Benefits – Managing salaries and perks.
5.​ Compliance & Employee Relations – Following labor laws.

Block Diagram:

nginx
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HR Functions ─► Hiring ─► Training ─► Performance Management ─►
Compensation ─► Compliance

12. Importance of Diversity in an Organization


1.​ Encourages innovation – Different perspectives lead to creative ideas.
2.​ Expands talent pool – Hiring from diverse backgrounds brings in more skills.
3.​ Improves company reputation – Companies known for diversity attract better talent.
4.​ Increases employee satisfaction – Employees feel included and valued.

Block Diagram:

nginx
CopyEdit
Diversity ─► Better Ideas ─► More Talent ─► Happy Employees ─►
Business Growth
Final Thoughts
●​ HR is essential for hiring, training, managing employees, and following laws.
●​ Using HRIS tools makes HR work easier and more effective.
●​ Companies that focus on diversity, training, and performance management grow
faster.

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