Unit 1: Human Resource Management: Learning Outcome # 1

Important Notes to the EMPLOYEE:

1. This Training Module is of Basic Level and explores different basic aspects of Human Resources.
2. Please consult books like Labour and Industrial laws by PK Padhi ,Organisational Behaviour by Stephen Robbins .
3. Regarding any doubt or query please consult the instructor and various other online resources (marked in below each article)
4. Please take the tests provided at the end of each module to have an elaborate understanding as to where you stand in understanding these
concepts
5. All the concepts and references provided in this manual is only for guidance and providing an employee with a deeper view on various
nuances of the subject so as to optimize efficiency of the employee and at the same time through collated improvement provide tangible
improvement in the Organisational Performance.
6. Which concept to use at which point of time in perusal of work requires proper understanding and experience . Hence , All readers are
requested to read the manual in depth and re read the same after a gap of 3 months or more to remember them and interpret them again and
again after on job trials too.
Content and Visual Description:

The text in light yellow is notes to the Employee. Please read notes at each instance.
The notes to graphics and tech are instructions for the graphics and technical teams. They will not appear on screen. This text gives the
description about the treatment used for a screen and the images and animations to be used. They will be in gray.
Post Test Evaluation :
No Learning can be said to be Complete without proper evaluation of the same through both practical and Theoretical Tests. Theoretical Tests provide a
peek into the cognitive efficiency of the learner but may not provide an accurate picture of future implementation of the same which can lead to
organisational and work efficiency improvement but it does provide a reflection of the hardwork , concentration and interest put in by the employee to
learn the given module and it also provides a progress report to the trainer and the employee himself about their efforts and learnability respectively.
How to interpret Results:

Overall % of Questions Correct

>90%
>60% & <90%

Level of Proficiency exhibited by Employee

High
Medium

<60%

Low

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Notes to the Trainer

Some Concepts might not be clear to the
employee . Need to re teach the areas in which
employee has got wrong answers..
Need to re teach the entire Unit

Unit 1: Human Resource Management: Learning Outcome # 1

Title

Human Resource Management: Introduction

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Introduction (Word limit: 10)
Introduction/Static Screen
Human Resource Management deals with efficiently managing personnel activities for businesses resulting in justice and
efficiency in business operations, ultimately paving the way for organisational success.It includes development and
implementation of people strategies which work in accordance with corporate strategies so as to ensure that culture,
value, systems, processes, structure and quality, motivation, commitment of employees contribute fully to achievement of
organisational goals. The basic personnel functions include HR planning , job description , recruitment and selection
,employee relations ,performance management , change management ,employee appraisals , compensation
management , training and development etc. HR can be further divided into IR and core HR. IR deals with various labour
law compliances and labour disputes and core HR deals mostly with corporate functions like recruitment , l and d , PMS
etc.
Robert Owen (1771-1858) is known as father of Human Resources. He was a social reformer and factory owner himself.
He became internationally famous owing to his work called New Lanark and the slogan 8 hours of labour, 8 hours
recreation and 8 hours full rest
HRM developed in response to industrial revolution and subsequent labour handling necessitated by a number of strikes
spanning through the 1800s . In 1868 first labour conference was held in USA . The idea that labour is a factor of
production alongside raw material , machinery , technology too gained great popularity . In india , textile mill strikes in
1900s and post independence spate of labour laws generated regulating unions , working hours, rate of pay ,
retrenchment etc in continuation of Fundamental duties and rights underlined in Indian Constitution formed the basic
ground of HRM. ILO conferences and India being a signatory through its own obligation had to pass many such labour
reforms which often necessitated a function dedicated to control , regulate and nourish Labour as a factor of production
on equal terms as functions dealing with other factors.

Note to Employee

Elaborate examples of the above sub classifications is included in the Moderate Module of HR

Note to Graphics
Note to Tech

There should be a colourful next button to move between screens from the user perspective
Display introduction basics in first screen and then HR Planning , Job Description etc etc in one screen at a time

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Unit 1: Human Resource Management: Learning Outcome # 1

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Human Resource Management: HR Planning

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HR Planning (Word limit: 12)
Objectives
HR Planning :
It involves managing deployment in sync with manufacturing targets. It requires the following inputs:
1.Accurate description of which work takes how much time by how many people (Time and Motion Study)
2.Accurate description of technical skills of individuals which are to be allocated (Classification of Skills and
competencies)
3.Accurate description of work area for understanding ergonomics of work ( Location Map)
4.Multi Skilling Activity Results ( Excel sheet of Number of People with medium and above skill level in multiple
jobs)
5.Work History Statistics ( Last 3 years Target Actuals of work done in the specified manufacturing facility )
6.Deployment pattern (Last 3 years)
Conditions to be met during HR Planning:
1.All Labour law compliances should be met while planning the deployment . Eg . Women working in night shift in
factories ( ILO ruling in 1919, Factory act 1948 Amendments) , Continuous hours of work ( Factory Act 1948 , ID
act 1926)
2.Wage Calculation Norm not to be altered before notification in Official Gazette and Contract Norms as per
Contract Act 1872 fulfilled , Assent of Labour Commissioner Secured.
3.Job Enrichment and Job enlargement to be done after securing approval from concerned worker and his
supervisor and putting a change in Contract Terminology as agreed as condition of employment.
For Successful Strategic Manpower Planning the following must be met :
1.Requires a team approach and must be viewed as process , not a single time activity
2.Must have support from Senior Management
3.Must align manpower plan to department services and vision
4.Must have line management ownership and be involved in the process of planning
5.Require documentation of each such plan for future planning consultation
6.Department work structure and Organisational Structure should be accounted for during this phase of planning
Overall HR planning involves Demand Forcasting and Current Manpower Inventory . Demand forcasting is done from data
of past sales and orders and Status of Current Manpower Inventory is obtained from Manpower reports on skill level
,deployment , time motion study benchmarks etc

Team Members engaged in HR Planning must have following competencies :

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Unit 1: Human Resource Management: Learning Outcome # 1

1.Strategic Perspective
2. Maximising Potential
3.Negotiation and Influencing
4. Respect and Value Diversity
5.Effective Communication
6.Planning and Organising
7.Personal Responsibility
8. Problem Solving
Forcasting of Job can be further classified as follows :
Lets take an example of Delhi Vidhut Board to attend to customer complaints . Based on analysis of customer complaints ,
classification of work can be grouped in four categories (X,Y,Z,A)
A.Classification of Work
Job Category
Related to X
Related to Y
Related to Z
Related to A

Hours Per Job

0.75
2.50
1.50
1.10

B.Forcast of Jobs for different years :

Job Category
X
Y
Z
A

2002
15
85
27
10

2003
13
95
35
8

2004
11
110
41
6

2005
8
125
45
4

C.Converting Forecast into Man Hours required per day (Multiply A and B):
Job Category
X
Y
Z
A
TOTAL MAN
HOURS Required

2002
11.25
212.5
40.5
11
275.25

2003
9.75
237.5
52.5
8.8
308.55

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2004
8.25
275
61.5
6.6
351.35

2005
6
312.5
67.5
4.4
390.4

Unit 1: Human Resource Management: Learning Outcome # 1

PER DAY
D. Converting Manhours into Manpower Requirement per day
This is done considering skill interchangeability of maintenance staff for the identified job categories with 20% fatigue
allowance and 20% leave reserve. Therefore, in a given day of 8 man hours per employee net available time for attending
customer complaints gets reduced by 40% per employee i.e only 4.8 man hours per day per employee is available to
attend customer complaints.
Previous years data should be checked whether they are similar or not. The same is quoted below:

Note to Employee

No of Maintenance Staff
2002
2003
2004
required
Employees
57
64
73
Please consult Human Resource Planning by Dipak Kumar Bhattacharya for further illustrations

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Please display the content in 3 separate screens with Next Button In Each Screen .

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Human Resource Management: Job Description

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Job Description (Word limit: 12)
Objectives
Job Description
a)Accurate description of activities required to be performed in a job (Inputs from Time Motion Study, Description of Job
from Unit Head , Supervisor and Employee himself in the form of task sheet)
Description of Job includes :
1.Description of Aptitude , Knowledge and Skill Required for the job
2.Description of Educational Qualifications
3.Description of Tasks that make up the job
4.Conditions of work under which employee is expected to perform his job (Eg reporting to supervisor, creating
control charts once a day and sharing with shareholders etc etc
Conditions to be kept in mind during writing Job Description:
Job description is to be used for hiring future employees on the said job and hence should never include tasks
which are one time in nature and hence wont be needed in future eg. Erection of a textile machinery
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Unit 1: Human Resource Management: Learning Outcome # 1

Job description should be elaborate in nature which shall include almost all set of activities that an employee is
supposed to perform in next year or so
There should be a timeframe kept for re drafting and revising JDs as with automation and various other work
method modifications as in course of time many become outdated .
Note to Employee
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Please go through internet resources like Wikipedia along with Job descriptions uploaded in leading job search engines
for reference
Display in one screen only with Next Button

Human Resource Management: Recruitment and Selection

6
Recruitment and Selection (Word limit: 32)
Objectives
It is overall process of attracting, selecting and appointing suitable candidates for jobs (both permanent and temporary). IT
includes
a)Job Analysis
b)Sourcing
c)Screening and selection
d)Joining Procedure
e)Evaluation of Hiring Efficiency by a multitude of rations
Job Analysis includes Analysing the Job Description of the job for which hiring is to be done. Post this activity a person
specification should be finalized based on which hiring is to be done
Sourcing is the usage of one or more strategies to attract or identify candidates to fill vacancies. It may be internal or external .
Various medias for external sourcing is :
a)Job Portals (Like Naukri.com, iimjobs.com etc)
b)Local or National Newspaper
c)Professional publications
d)Job Fair
e)Employement exchanges
f) Third Party
Usually which media to use should be directed as per category of candidate needed to fill the position. For experienced and high
qualified candidates usually job portals and newspaper ads are preferred while in case of lower positions employment
exchanges and job fair finds greater relevance. Third Party recruitment agencies too are hired for sourcing candidates incase in
house team fail to obtain the desired results.
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Unit 1: Human Resource Management: Learning Outcome # 1

Screening and Selection

Screening of candidates from among the applicants is done on the basis of technical and behaviourial competencies required for
the Job for which hiring is being done.
Most commonly used processes for screening and selection are :
1)Psychological Tests ( to test KSAs required for specific job , can be used only if KSA profiling for job present for comparison)
2)Physical Ability Tests (to test physical strength , used for positions which involve physical labour on a day today basis,
specialist training agencies provide modules for this test )
3)Psychometric Testing ( to test mental inclinations and psychological bent of mind of candidate in sync with the job offered, for
this the job concerned should also first be decoded to level of personality traits via administering the MBTI test or 16 pf test on
successful employees)
4)Written/ Online Subject Test ( to test technical skills of a employee specially used in case of entry level fresher positions )
5) Aptitude Test ( To test logical and mathematical skills of a employee)
6) Role Plays ( To test Negotiation , Fact Finding and Decision Making competencies of candidate)
7) Group Discussions ( To test General Awareness , Awareness, Result Orientedness, Sensitivity to others)
8) General Knowledge test ( To test Awareness to current Business Scenarios)
9) Extempore (To test General Awareness, Innovative ness)
th
th
10) Cutoff Percentages in 10 12 and Graduation ( To test steadiness in academics , hardworking mindset , ability to be
consistent)
11) Sports Test (Tests Clarity of Understanding , Patience , Result Oriented ness)
12) Team Games(Tests Team orientations,Result orientedness, Negotiation competencies)
13) Personal Interviews ( Tests All Competencies , Person Job Fitment )
14) In Basket ( Tests Patience , Sensitivity to others, Result Oriented, Innovative)
15) Logical Reasoning Test ( Tests Logical understanding and General Awareness)
16) Data Interpretation (Tests Data Interpretation and General Awareness)
17) Case study Test ( Tests General Awareness, Clarity of Understanding, Innovativemess)
18) Presentation (Tests General Awareness, Innovative ness, Clarity of Understanding)

Joining Procedure is usually a process of document verification , background check , new employee document creation and
Induction process that is followed within an organisation and usually varies from cadre to cadre. Turn around time for a member
to join from the time of putting up an advisement for the position is around 1 to 3 months (depends on nature of position for which
hiring is being done)
Hiring Efficiency Evaluation for Recruitment team is mapped through standard ratios. Usually surveys are conducted by
standard HR consulting groups like Hay Group , Mercer etc on these ratios to compare efficiencies of recruitment teams across
organisations and then rank them.
Ratio Name

Formula

Reason for Use

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Unit 1: Human Resource Management: Learning Outcome # 1

Time to Fill (TFF)

Time to Accept(TTA)

Total time taken from time of raising

requisition by business to the moment
the candidate clears the background
Total time taken from time of approval
of business requisition to candidate
accepting the job offer

Offer Acceptance Rate (OA)

Application Drop off Rate (ADR)

Candidate Withdrawl Reasons

(CWR)
Recruiting Resources Cost to
Acquire (CTA)

Net Quality Score

New Hire Turnover

Cost per hire

% of candidates who accepted the

offer out of the number of offers that
were presented
% of candidates who complete the job
application out of the number of
candidates that begin the application
Break up % wise of reasons for which
a candidate withdrew at the time of
interview
A recruiting Departments total
resource cost including full time
employees, contractors and
temporary workers divided by number
of candidates hired for a fiscal year
Sum of all hires in the last year minus
those who scored in the bottom half of
all employees at their performance
Review
Number of employees hired exiting
during 12 month period / actual
number of employees hired during
that period
Recruitment Cost/ (Compensation
Cost + Benefit Cost)

Out of these , most commonly used Ratios are:

Page 8 of 32

To know the time on an average

taken for hiring ( Tells about
Recruitment Process Efficiency)
To know the time taken to identify and
recruit a candidate within the
organisation ( Tells about Recruitment
Branding Efficiency)
As an Indicator of Recruitment
Branding Efficiency

To know the quality of Candidate

application process
To know the improvement areas for
improving attractiveness of job and
organisational branding
To know about cost effectiveness of
Recruitment Team

To know about the Quality and

Success of Recruitment process( PI ,
GD etc)
To know about the sustenance of
Recruitment Process

For comparison with standards of

8.33% used by agencies and also As
an input to Recruitment Planning

Unit 1: Human Resource Management: Learning Outcome # 1

Time to fill
Net Quality score
New HireTurnover
Cost per hire
Note to
Employee
Note to
Graphics
Note to Tech

Total days taken to fill a job / number hired

Net quality score is simply the sum of all hires in the last
year, minus those who scored in the bottom half of all
employees at their first performance review.
number of employees hired exiting during 12 month period
/ actual number of employees hired during that period
Recruitment cost/(compensation cost+ benefit cost)

Elaborate description of Competency Mapping is given in the Moderate Module. For greater understanding one may consult the
book Competency based HRM: A strategic resource for competency mapping, assessment and development centres byGanesh
Shermon
Please display the above content neatly in 2-3 screens with each screen having a clearly marked Next button

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Human Resource Management: Compensation Benefits

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Compensation Benefits
Compensation for HRM is far more than just the work remuneration that one receives in return for a work done. Before
delving deep into compensation and its various models one needs to know about the basic knowledge sets that one
needs to bring to table while handling compensation :
a) Knowledge of Labour Laws ( Particularly Minimum Wages act, Inter State Migration Worker act , Factory Act , ID
Act and Contracts Act)
b) Knowledge of Compensation Models ( Straight Piece Model , Taylors method of compensation determination,
Merricks model of differential piece rate , Gantt Task System of Compensation , Emersons Efficiency Model ,
Rowan Premium Plan ,Scanlon Plan , Priestman Production Plan )
c) Survey Methodologies ( for conducting surveys on shop floor to decide which factors influence worker most and
which should be factored in during creation of plan)
d) Competitive Benchmarking ( To compare current organisation compensation structure with industry benchmarks)

The above knowledge sets have been delved in detail in the second module of Human Resource( Medium Level
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Unit 1: Human Resource Management: Learning Outcome # 1

e)
f)
g)
h)

)
Compensation structure
Compensation Indications in Last Union Budget (EPF etc related notifications)
Tax structure provided in Finance Budget
Pay Roll Administration ( Have been explained in detail in next section)

Usually Compensation includes

a)Basic Salary
b)Allowances (Eg HRA, Conveyance, Travel Allowance,Lunch Allowance, City Compensatory Allowance,Childrens
Education Allowance , Uniform allowance)
c)Claims: (Billed Claims like mobile allowance,Medical allowance, Rent free accommodation, Motor car facility, Electricity
and Water, Domestic servant facility )
d)Deductions ( PF , Gratuity , Medical Insurance is deducted)
e) Performance Linked pay
Provident fund has two components a) Employees contribution , b)Employers contribution. This contribution is not paid
out in the form of in hand salary. It is usually deducted and paid when employee resigns or retires.
Gross salary is amount of salary paid after adding all benefits and allowances before deducting any tax
Net Salary is amount of salary after all Tax deductions
Take Home Salary is amount of salary left after deductions and tax deductions have been made.
CTC is Cost to Company and includes all costs associated with employment contract
Salary Structure Varies from company to company for all roles , however most used pay structure is as follows:
1)
2)
3)
4)
5)
6)
7)

Basic (35-50% of CTC)

HRA (40% of Basic for Non Metro & 50% of basic for Metro Cities
Conveyance allowance Max of 9600 Per annum
Medical Allowance : Rs 1250 PM which can be max of 15000 PA
Special allowance is the balance of gross
Statutory part varies and limits keep on changing year on year for PF ,ESI etc
Dearness Allowance

Formula for Gratuity and Overtime are as follows :

Gratuity = Basic* 15* number of years of service /(26)

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Unit 1: Human Resource Management: Learning Outcome # 1

Gratuity can be shown as part of CTC

Overtime =(((Basic+da)/26)/8)*2* number of hours of overtime
For employees whose salary are high the special allowance is further broken down as :
a)Food coupons
b)Car Hire
c)Petrol and Car maintenance
d)LTA
Dearness Allowance( mostly used in government sector and PSUs)
Dearness Allowance can again be split into Fixed (DA) and Variable DA(VDA). Most organised sector, unionised
companies, banks, govt. follow this pattern. The FDA is either a %age on the basic pay or a lump sum, (which partly or
fully merged as and when wage revision pact is signed) whereas the VDA is linked to Whole sale price index (WPI) and
Consumer Price Index (CPI). These are monitored on the notifications issued by the Labour Dept. GoI on quarterly or
half yearly basis. These indices undergo normally upwards in inflationary trend and occasionally downward when
deescalation in market prices in select commodities, food grains, oils, veg. & other basket of items and accordingly VDA
also revised.

i
Compensation fixation as per job roles often follows the following trend :
Job Role
Innovation Related Roles
Maintenance Roles
Manufacturing Related Roles
Marketing Related Roles
Supply Chain Related Roles
Financial Services

Fixed Compensation
High
High
Low
Low
High
High

Variable Compensation
High
Low
High
High
Low
Low

Most Used method of Variable pay is Merrick Differential Piece Rate :

Criterion
For Output upto 83%

Pay Out
Basic Piece Rate

For Output above 83% and up to

Basic Pay Rate +10% Hourly rate as

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Way to Derive Payout

Survey on Manufacturing Heads and
average rate coming out from the
same
Basis of Cost Calculation across

Unit 1: Human Resource Management: Learning Outcome # 1

100%
For Output above 100%

bonus
Basic Pay Rate +20% Hourly rate as
bonus

Industry
Basis of Cost Calculation across
Industry

Calculation Sheet looks like :

Day

Standard Output

Actual Output

190

170

Output
Performance
89%

Rate applicable
Basic Rate+10%

Days earnings
(quantity* rate)
*1.1*0.21=39.27

Note to Employee
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Human Resource Management: Personnel Management and Human Resource Management

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Content

Apart from Compensation Benefits strategic perspective , Payroll Administration is one of the transactional part , it requires
1.To accumulate timely and accurate reports for all critical human resources initiatives , services and other Human
resource related information and data.
2.To ensure that payroll records and personnel files are safely and confidentially maintained.
3.To follow guidelines for accurate retention of records following appropriate recordkeeping guidelines.
4.To document payroll & file maintenance processes in the field and in the Payroll Department and periodically
audit to ensure compliance.
5.To ensure that Payday Acts and regulations are followed for dispersing all final pay checks, special payments
and general payroll practices.
6.To ensure that all guidelines are met regarding wages and benefits calculation which are set by local and state
employment regulations
7.To ensure all new state employment regulations be noted and implemented as soon as possible

Payroll Administration (Word limit: 28)

Few metrics used for evaluation of these tasks are :

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Unit 1: Human Resource Management: Learning Outcome # 1

Payroll Error rate

Tax Penalties per 1,000
Payments
Percent Off-Cycle Payments
Note to Employee

Total number of all errors included in payroll processing (i.e. system errors, payroll
data entry errors, third party interfaces, etc.) + tax penalties + direct deposit
rejects + W-2c's
Total number of all tax penalties for every 1,000 payments

Total Off-Cycle Payments/Total Payments

Survey Methodology and Evaluation in the form of constructs can be read i Deepak Chawlas Research Methodology
book or in You tube videos like https://www.youtube.com/watch?v=0M_dTNIVu40

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Human Resource Management: Difference between Personnel Management and Human Resource Management

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Human Resource Management performs the similar functions as Personnel Management but in a qualitatively Distinct
way. The primary differences are as follows :

Personnel Management and Human Resource Management (Word limit: 38)

Human Resource Management

It is resource centred , directed mainly at management
,devolving responsibility of HRM to the line manager .

In essence it is strategic in nature and is concerned with

gaining sustained competitive advantage
It is more pro active and deals with forecasting of
organisational needs , the continual adjustment and
monitoring of personnel systems to meet current and
future needs.
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Personnel Management
It is work centred , directed primarily towards
organisations employees , explaining management
expectation , training them ,arranging for their
compensation etc.
In essence it is basically an operational function
concerned primarily with carrying out the routine day to
day people management activities
It primarily deals with maintenance of personnel and
administrative systems.

Unit 1: Human Resource Management: Learning Outcome # 1

Usually has a performance related pay

Behaviour Referents include Values/Mission
Management role is Transformational Leadership oriented

Usually has job evaluation based fixed grades of pay.

Behaviour Referents include Norms/Customs and practice
Management role is Transactional

Human Resource management can be used to contribute to organisational purposes in the following way: (Chalil, 2013)

Employee
Outcome

Organizational
Outcome

Financial/Account
ing Outcome

Market Based
Outcome

Stock
Expen
Price
ses
Reve
nue
Profit
ability
The roles and responsibilities of line managers in human resource management include : (Varkkey, 2008)
1.Placing the right person on the right job
2.Starting new employees in the organisation ( Orientation)
3.Training employees for jobs that are new to them
4.Improving the job performance of each person
5.Gaining creative cooperation and developing smooth working relationships
6.Interpreting the companys policies and procedures
7.Controlling labour costs
8.Developing the abilities of each person
9.Creating and maintaining department morale
10.Protecting employees health and physical condition
Attitud
es
Behav
iour

Produ
ctivity
Qualit
y

Impact of legal and regulatory framework on Human Resource Management are :

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Unit 1: Human Resource Management: Learning Outcome # 1

Note to Employee

Elaborate description of the acts can be studied from PK Padhis Labour Law book .

Note to Graphics
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Unit 1: Human Resource Management: Learning Outcome # 1

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Human Resource Management: Personnel Management and Human Resource Management

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Human Resource management was born from the human relations movement which began in early 20 century due to
work by Frederick Taylor (1856-1915).(Wikipedia, n.d.) . Taylor initially explored what he termed scientific management ,
however later moved on to one of the principal inputs of manufacturing process ,labour . This movement was formalised
following the research of Elton Mayo and others , whose Hawthorne studies (1924-1932) focussed on how stimuli
unrelated to financial compensation and working conditions attention and engagement yielded more productive
workers.

Development of Personnel Management and formation of Various Associations

th

Contemporary works of Abraham Maslow , Kurt Lewin , Max Weber (1864-1920) , Frederick Herzberg and David
McClelland ( 1917-1998) formed the basis of studies in organisational behaviour and organizational theory giving room
for an applied discipline.
By the time enough theoretical evidence existed to make a business case for strategic workforce management, changes
in the business landscape (Andrew Carnegie, John Rockefeller) and in public policy (a l Sidney and Beatrice Webb,
Franklin D. Roosevelt and the New Deal) had transformed the employer-employee relationship, and the discipline was
formalized as "industrial and labour relations". (Wikipedia, n.d.)
In 1913, one of the oldest known professional HR associations was formed which was called the Chartered Institute of
Personnel and Development . The institute was founded in England as the Welfare Workers' Association, however
changed its name a decade later to the Institute of Industrial Welfare Workers , and later again the next decade to
Institute of Labour Management before settling upon its current name.
In the meantime , in United States, the world's first institution of higher education dedicated to workplace studies , the
School of Industrial and Labour Relations was formed at Cornell University in 1945.
During the latter half of the 20th century, union membership declined significantly, while workforce management continued
to expand its influence within organizations. "Industrial and labour relations" began being used to refer specifically to
issues concerning collective representation, and many companies began referring to the profession as "personnel
administration". (Wikipedia, n.d.)
In 1948, the Society for Human Resource Management (SHRM ) was founded as the American Society for Personnel
Administration (ASPA). This institute later became the largest professional HR association .
As 21st century drew closer, advances in transportation and communications greatly fostered workforce mobility and
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Unit 1: Human Resource Management: Learning Outcome # 1

collaboration. Corporations started to view employees as assets instead of cogs in a machine .

"Human resources management", became the dominant term for the function and the ASPA finally agreed to change its
name to SHRM in 1998. Other terms used to describe the field are "organizational management", "manpower
management", "talent management", "personnel management", and "people management".
Note to Employee

.This will help in having a background in all negotiations with future consultants

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Human Resource Management: Personnel Management and Human Resource Management

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Tasks: Employee Motivation (Word limit: 18)

Need for Employee Motivation Related Work is as follows :
1.To initiate a reward and recognition program to motivate employees
2.To conduct quarterly survey and team building exercises
3.To identify and adjust benefit programs to produce maximum value out of employees at the best possible cost to
the business.
4.To maintain benefits communication materials and enrollment processes as user-friendly.
5.To communicate and deliver benefits on a timely basis to every eligible new hire.
6.(optional)To ensure compliance with revised COBRA & HIPAA regulations and to ensure that FMLA is properly
communicated.
7.To keep the benefits plan as highly competitive such that it enables the organisation to attract and retain the
best talent available.
8.To regularly seek input from employees regarding their levels of satisfaction with the culture, practices and
policies, using objective and confidential surveys and/or focus groups.
9.To communicate results of various satisfaction surveys and focus groups conducted to the employees with
clearly defined action steps for improvement.

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Unit 1: Human Resource Management: Learning Outcome # 1

Metrics used for analysis of performance of the task of Employee Motivation :

Attrition rate
Survey reports
Performance comparisons
Note to Employee

The number of employees among high performers leaving

the organisation over a 1 year period
The results of surveys provide an indicator on whether
employees are motivated or not.
Improvement of output of individuals before and after the
employee motivation measures

Motivation Theories like Maslow etc provide deeper insights into Motivation and Hence should be consulted.

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Tasks: Employee Termination (Word limit: 28)

Based on performance and Non Conformance , employees also need to be terminated from time to time to ensure
discipline in working place. However as per labour laws of Factory Act and ID Act certain control steps need to be
followed mandatorily before retrenchment is done .
These are :
1.To verify whether the employee to be retrenched is a workman or not
2.To look into the agreement (contract of employment) signed by the employee at the time of selection
3,To formulate the reasons to be stated for retrenchment after analysing the state or central employment
regulations
4.To communicate clearly to the employee the grounds in which he is being retrenched
5.To calculate the dues payable to the employee based on conditions of employment and existing employment
regulations
6.To provide the employee with notice period ( except when retrenched due to misconduct) and take prior
permission from state government if the existing employment regulation states so
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7.To pay all dues to the retrenched employee within the specified date and update the salary and benefits sheets
accordingly
8.To evaluate the performance of this task usually the number of complaints suffice .
***If the number of complaints is high or if there are a number of cases pending in judiciary against retrenchment done by
an organisation then it would indicate that maybe the Termination mechanism or the person in charge is not being able to
take care of the issue in a suitable way.

Note to Employee

Please consult Factory Act and ID act on Layoff , Lock out and Retrenchment sections

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Following goals are to be followed for Training and Development :

1.To ensure that performance expectations are well documented and they also include the target desired results
and these are verbatim communicated in simple and understandable job descriptions.(For all job roles
functional in an organisation)
2.To ensure that all workers are having adequate skills to perform a specific job (Various Skilling models like
CMM)
3.To ensure access of training tools and techniques to supervisors and managers so as to produce a skilled and
knowledgeable workforce (Requires usage of Training Budget allocated as per HR Planning)
4.To ensure that the tools are cost effective and produce expected results(Production Reports analysis and
Time Motion Study leads to gap areas and suggestions )
5.To identify and offer professional development programs and leadership training that can help prepare people to
take advantage of new career opportunities within the business.(External Training Tie ups are essential
motivational tools too for learners )
6.To ensure that performance feedback is simple, consistent and on time during training tests.

Training and Development (Word limit: 8)

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7.To ensure that Individual development plans provided is clear, consistent and measurable .
8.To calculate ROI on the entire Training process and take feedback of the entire process (Various Models for
ROI evaluation include usage of Control Groups,Impact Estimates , Post training surveys, Calculation of
improvement in dependent variables)
Creation of Training and development package usually needs the following steps : (Goldstein, 2012)

Need Identification is the most critical step of a training framework. Need Identification
ORGANIZATIONWIDE SKILL AUDIT
[ auditing operation process ]
-CUSTOMER SATISFACTION SURVEY
[ source of inputs ]
-ORGANIZATIONAL METHODS
[ changes/ impact on the organization]
-JOB ANALYSIS METHODS
[changes / impact on the individual jobs]
-INDUSTRY ANALYSES METHODS
[ changes in industry characterisitics / impact on the organization]
-BEHAVIORAL ANALYSES
[data collection by observation ]
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-CRITICAL INCIDENTS
[ reports /descriptions of things ]
-HUMAN ANLYSIS METHODS
[paper pencil dianostic tests of knowledge/opinions etc]
-ADVISORY COMMITTEE METHODS
[ seeking advice of departmental heads ]
It must be kept in mind that training and development , recruitment and PMS work in SYNC. If an organisations strategy is
to hire members without any stress on their qualification and experience level (random fitment strategy) then its Training
vertical has to be very competent and elaborate. Again, incase a organisation has a strategy of hiring only experience
professionals then training and development vertical need not be that strong.
Training Module creation involves the following set of activities :
1. Selecting strategies :(Selecting area of training , objective of training ,sample of people to be trained , place and
Budget specifications)
2. Breaking Objectives: (Break the training objective into knowledge, understanding and skill ).
3. Choosing Method : (Breaking down facilities required for providing the training)
4. Deciding on packages: (Cost Benefit analysis of costs of each possible method)
5. Designing the Program (Elaborate breaking down the medium to level of who will train and when and how)
Training overall can be of two types:
1. Technical (Skill focussed)
2. Behavioural ( Behaviour focussed)
Training can be imparted in following ways :
1. Job Instruction Training
2. Vestibule Training (Similar to on job but here similar equipment is used away from actual worksite just for training)
3. Training Centre Training (lecture , conference , case studies are used)
4. Simulation (Business Game etc)
5. Apprenticeship (Longer duration of training just like a worker)

There are many initiatives from government of india which support providing of training and provide a hefty incentive
based on number of workers skilled.
The link for finding out various initiatives is http://www.nsda.gov.in/
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Note to Employee

Please consult the web resources for various Training Models and their ROI calculations .

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The process of planning of performance management is as follows :

First establish unit strategy and goals (GOAL SETTING)
Align goals of employees and unit
Determine performance level criterion

Performance Management: Planning (Word limit: 8)

Setting performance objective is thus important for the planning process. During this process , employees and managers
meet to clarify expected outcomes for the year and set objectives that link employees job to organisational goals. There
are series of performance discussions between unit heads and HR PMS Teams to understand lead and lag indicator for
performance and their optimal values which can lead to required results. Now after knowing the required values which
should be achieved HR PMS team sets the targets and communicates to the employees across units.
These objectives should be
Specific
Measurable
Attainable
Relevant
Timely
Identifying behaviour for success is the fundamental aspect of the entire process. These performance dimensions so
identified should be observable , job related and specific in nature . Some very common things which should be kept in
mind while setting targets are that not all individuals should have same target and hence members with specific skills be
put in right jobs before initiating PMS cycle and should account for :
1.Interpersonal skills
2.Effective communication
3. Valuing Diversity
4. Analysis and problem solving
5.Decision making and Results orientation

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6. Fostering Safe and Secure Environment

Setting of development goals is also important at the same time as preparing performance objectives so that employees
can improve their on the job performance through these goals. This development goal setting is also done by participation
of both the manager and the employee during the planning phase of performance management .
Note to Employee

Read HBR Case Studies on Performance Management and Structure Strategy Fitment from SN Bagchis Performance
Management

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Performance Management is the process of ensuring that the business strategy , operations or processes ,systems the
internals of an organisation and allocation of the resources are best aligned to meet the goals . (Bagchi, 2012) In order to
design processes so as to align with the business objective what is primarily needed is identification of Critical success
factors and Key performance indicators.

Performance Management (Word limit: 8)

Critical success factors (CSF): It is the most critical information related to the factors which drive an organizations
success and should be considered first. It also highlights the processes and tasks that need to be focussed on so that
organisation can be successful (Bagchi, 2012)
For eg . Critical success factor of Dominos Pizza is 30 minute delivery
Key performance indicators (KPI): They are quantified indicators that organization uses to measure for achieving the
critical success factors. There can be more than one KPI per CSF.
For eg . For Dominos pizza the key performance indicator is Percentage of orders delivered free. If the number of orders
delivered free is low then the business is moving towards the direction of success.
There are multiple frameworks propounded to provide a wholesome view of operation and inter linkages of different
metrics. The most widely used frameworks are :
Dupont framework ( Proposed in 1919)
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Tableau de Bord-circa ( Proposed in 1920)

SMART pyramid circa( Proposed in 1950)
Results Determinant Framework ( Proposed in 1991)
Balanced Scorecard (Proposed in 1992)
The basic performance management tasks can be summarized as:
1.To ensure that systems , structure and strategy are aligned in one direction .
2.To ensure that the process of performance management is fair , just and effective
3.To ensure that Critical success factors and key performance indicators are focussed on while designing the
performance measurement processes
The methods of appraisal include : (Varkkey, 2008)
Graphic Rating Scale Method (A scale that lists a number of traits and a range of performance for each. The
employee is then rated by identifying the score that best describes his or her level of performance for each trait)
Alternation ranking method (ranking employees from best to worst on a particular trait , choosing highest then
lowest until all are ranked)
Paired comparison method ( Ranking employees by making a chart of all possible pairs of the employees for
each trait and indicating which is the better employee of the pair)
Forced Distribution method (Similar to grading on a curve ; predetermined percentages of rates are placed in
various performance categories)
Critical Incident method ( Keeping record of uncommonly good or undesirable examples of an employees work
related behaviour and reviewing it with the employee at predetermined times )
Behaviourally anchored rating scale (BARS) (An appraisal method that aims at continuing the benefits of narrative
critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples
Note to Employee

Take one sample example and try out all the ratings for a small group.

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Performance Management: Recording (Word limit: 8)

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The Performance Management Recording is set out in 6 stages (Monitoring recordkeeping performance, n.d.)T
These include :
1.Setting Performance objectives
2.Developing performance measures
3.Collecting the data
4.Analysing results
5.Implementing performance improvement
6. Reporting and review
Overall guidelines for recording data are as follows : (Monitoring recordkeeping performance, n.d.)
1.All staff should create and keep full and accurate records (Ensured through Periodic Reminding and Penalties)
2.All staff should be able to find records when there is any need (Ensured through PMS Audits)
3.All staff should be aware of the organisational policy/rules for managing email, for managing corporate data on
mobile devices or storing data on removable storage devices (Ensured through induction training)
4.PMS related Records should be stored securely and protected from unauthorised access, alteration, deletion or
loss
5. PMS Records in both paper and digital systems should be disposed of accountably
6.Records should be captured into official recordkeeping systems
7.All recordkeeping requirements for high risk business processes should be identified and documented
8.All business systems that create and keep records should be identified
9.All business systems that keep records of high risk business processes should be assessed for recordkeeping
functionality.

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Note to Employee

Supervisor Review, Peer Review , Normalisation Curves etc can all be consulted as readings for this section

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Performance Management: Actioning (Word limit: 8)

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It is a phased approach charting through performance factors, linking strategic thrusts to projects, departmental and
individual activity. During pursuance of PMS Cycle certain steps must always be repeated .
These steps include :
1.Consistently and periodically measuring progress and providing feedback to senior management team
2.Enable emotional contracting with all staff because it is important to link individual commitment with
organisational goals
3.Implement a robust IT based performance management system which would enable transparency and
accountability through effective processes and full utilisation of organisational capabilities
4.Monitor the KPI s and CSF s to track progress in fulfilment of organisational objectives
5.Take regular feedback from employees
6.Perform regular benchmarking with competitor companies to determine whether any new advances in
performance management system has been implemented or not
7. Conduct regular meetings with the line managers and all persons in charge with rating so that they are clear
with the way they are supposed to operate
Handle issues if any that may arise from the implementation of the performance management system.

Note to Employee

IT enablement and Research Methodology can be Read from Deepak Chawlas Research Methodologies book on
constituting ways of survey evaluation and Dip stick studies to create innovative PMS working processes through
constructs.

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Working in Partnership with Functional Areas (Word limit: 8)

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In an organisation of today all functional areas are interrelated to one another. Human Resource department which is
entrusted with people management hence needs to work in association with all other function areas too. Working
partnership with different functional areas can be demonstrated as below :
HR Function
Recruitment
Training and
Development
Performance
Management and
Appraisal
Rewards and
Recognition
Employee
Engagement
Termination

Risk Management
Compensation

Employee Relations

Note to Employee

Working Partnerships with functional areas

HR works with all other functional areas which provides the details of job requirement and
number of employees needed to be recruited
All other functional areas provide nominations and allocates trainers to perform the task of
training and development
Each functional area provides details of performance of each employee in the prescribed
format to the HR department
Each functional area nominates employees based on criterions mutually agreed by senior
management team
Finance department approves all costs of programs conducted in this function and feedback is
taken from all other functions on these initiatives
Line managers of different functional areas are consulted and taken in loop before termination.
Most of the times it is the line manager who contacts the HR for effecting an action against an
employee in case of repetitive poor performance
Disaster and risk management plans are constructed after taking inputs from different functions
Compensation and pay mix is constructed after taking feedback about criticality of different
positions from different functional areas( mostly function heads) . Even date of salary is
communicated after consulting the finance department
Conducting Collective bargaining sessions with employees also involves concerned line
managers of different functions

Recruitment strategy impacts T and D , Compensation directly. PMS impacts R and R , Employee Engagement and T
and D. Employee Relations impacts Termination , Employee Engagement and Risk Management Directly.
Eg. A Organisation whose recruitment strategy is to hire individuals (Freshers) , must have a good T and D dept to train
each and every role. If the same organisation had a strategy to hire experienced professionals with prior training only then
t and d need not train at an elaborate way.
Note the linkages of Departments minutely

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Employee Relations is the communication between management and employees concerning workplace decisions,
grievances, conflicts, problem resolutions, unions and issues of collective bargaining.

Employee Relations (Word limit: 18)

Employee Relations usually involve 3 major parties :

Employee: The workers who are recruited by the employer to perform a job. They work for the employer in return for
compensation and other benefits as agreed upon in the contract of employment. In poorer countries , the bargaining
power of employees become less since for them to procure the basic necessities of life they need employment and hence
often agree to perform any task for the employer even at below market wages.
Employer: The affluent section of the society who owns the business and the profit generated from it. They are mostly
profit centric.

State: They are the set of government institutions which holds monopoly on legitimate use of power. They try to protect
the interests of Employee since it does not have the same bargaining power as the employer and hence safeguards
against exploitation.
State also tries to achieve 4 basic economic policy objectives :
1.To maintain high levels of objective
2. To ensure price stability
3.To maintain a balance of payment surplus
4. To protect the exchange rate
State intervenes in cases of unethical, illegitimate conduct by either of the two parties. The interventions of state can be
one of the following :
(Role of State in employment Relations, n.d.)
Employer on its own right
A regulator of incomes and prices
An economic manager
A protector of standards
A rule maker and legislator
A promoter of social citizenship guidelines

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Note to Employee

Please consult Labour Law Journals for various cases in which State had approached Supreme Court which depict the
same explicitly.

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Mentoring program usually infuses energy into employees professional and job development .Mentoring conducted by
line manager can be of following types :

Involvement of Line Managers: Mentoring (Word limit: 45)

Informal Mentoring
Involves social guidance, support and discussion provided by the line manager. There is no specific goal to this
mentorship and is not part of organised effort to seek mentoring. Mentoring of this kind can be inefficient and inconsistent.
Formal Mentoring
It is a structured process in which line manager tries to develop leadership skills of the employee.
One to One Mentoring
Due to intimacy of the relationship the line manager gives individual attention to the protg to establish goals and
objectives and overcome potential obstacles.
Group Mentoring
In this process the line manager provides mentorship to a group of employees who have similar goals .The line manager
derives support, ideas, professional liaisons and even friendship with the employees.
Cross Cultural Mentoring
It involves matching individuals from different ethnic or cultural background for a one to one or group relationship . The
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line manager so chosen provides the employee information regarding different processes, customs and work ethics to be
followed without disturbing any cultural and religious sentiment.

Note to Employee

Overall during mentoring the line manager provides :

Inputs to the employee on task , tackling interpersonal issues
Inputs through sharing of experience ,point of view and resources
Advises or recommendations of different activities or actions
Help in creation of networks
Opinion on development progress
Please also go through various online mentoring simulation programs

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The Human Resource Executives ethical issues concern lie in the following : (S.J, 2013)
1.Knowing where the economic/stakeholder good is found
2.Judging what the economic/stakeholder good is
3.Knowing how much of the economic/stakeholder good is there
4.Knowing why the economic good/stakeholder is found there
5.Judging how long the economic/stakeholder good will last
6.Conforming to teleological and utilitarian rules of common good
7.Basing decision making that conforming to fulfilment of duty promulgated federal laws ,ordinances and
standards
8.Conforming to real facts in case severance pay and benefits for employees terminated during crisis
management
9.To evaluate performance of individual free from bias
10.To be impartial and just in all dealings of employees

Ethical Issues (Word limit: 25)

Examples like global financial crisis that lead to fall of lehman brothers in 2009 are glaring examples where avoidance of
ethical issues in case of decision making could lead to drastic consequences affecting business credibility and long term
prospects.

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Business Managemnt
and Corporate
Governance Processes
:Executive Reasoning
and Strategy

Outputs

Personal and
corporate Inputs

Processes

Inputs

Unit 1: Human Resource Management: Learning Outcome # 1

Business
Consequences

Note to Employee

Please search various ethics related guidelines available in internet and organisation portal (Suvidha)

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