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Resource Management
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Introduction
Look at the questions given below and try answering them.
Whom do you send your resume to when you see a job opening that
interests you?
Who gives you the job offer and discusses your pay package with you?
Who inducts you into the organization when you are a new employee?
Whom do you contact when you have any doubts regarding your pay
package, perks, benefits, conveyance, leave management etc.?
Who helps you in the final exit formalities when you leave an
organization?
It is a science as well
because of the precision and
rigorous application of
theory that is required.
Traditional Definition
Contemporary Definition
Traditional Definition:
Contemporary Definition:
The practice of HRM must be applied to the overall strategic goals for the
organization instead of a standalone tint that takes a unit based or a micro
approach. The idea here is to adopt a holistic perspective towards HRM that
ensures that there are no piecemeal strategies and the HRM policy enmeshes
itself fully with those of the organizational goals. The practice of HRM needs
to be integrated with the overall strategy to ensure effective use of people
and provide better returns to the organizations in terms of ROI (Return on
Investment) for every rupee or dollar spent on them. Unless the HRM practice
is designed in this way, the firms stand to lose from not utilizing people fully
and this does not bode well for the success of the organization.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Scope of Human Resource Management
Hiring (Recruitment an
Grievance Handling Selection)
HR planning
Payroll Management
HRM in
Industrial
Relations
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Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Processes in Human Resource Management
The efficient designing of these processes apart from other things depends
upon the degree of correspondence of each of these. This means that each
process is subservient to other. You start from Human Resource Planning and
there is a continual value addition at each step. All processes are integral to
the survival and success of HR strategies and no single process can work in
isolation; there has to be a high level of conformity and cohesiveness
between the same.
Let us look at each process in detail.
Processes in Human Resource Management
1
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Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Skills of HR Professionals
The various skills of HR professionals are as follows:
HR Dec Le a
Skil Ma is Tec
ls king ion h nica d er
s hi p
Skil l Sk Skil
ls ills ls
HR Skills:
Technical Skills:
Leadership Skills:
HR managers have to
HR managers have to
be change agents, thus
serve as advocates of
requiring them to
acquire knowledge
Employee the employees. It
Advocate means that they have to
about and the ability to
create a work
execute successful
environment in which
change strategies in
the employees are
the organization.
motivated, contributing
and happy.
Tip!
s is: ra tio n,
An a ly e xplo ties,
Jo b ti c
sy st ema ponsibili
l y s is is a t h e res ork
A n a rd in g e s , w o fa
Job n dr e co
n tab ili ti
e me n t s
y a c o u u ir
stud skills, ac b i li t y req
s, a
dutie ment and ela ti ve
n v ir o n
in g t he r ilities,
e job . r min n sib
fic et e p o ob.
spec nvolves d duties, re r a given j ds
i s
i e fo n
It also nce of th onal skills a job dema
rta ti t
impo l and emo ntify wha ssess to
ca de po
physi e factors i yee must
es lo
All th at an emp uctively.
h d
and w a job pro
rm
perfo
HRM Practices Job Analysis & Job Design
: e d d ata
ip tio n -r ela t
e sc r i c j o b nd
Job D l ude s
b a s
cific j o b a
tion
n i n c a s p e o r m a
sc r iptio ve r tise d e s inf a nd
d e l to a d t in c lu ng t o
Job s e fu e n t . I e p o r ti
su al ,r
that i a pool of t b location ture and
tt ra c t t le , jo a ry , na t o be
a ti m s
c h a s job , job sum and dutie in e s,
su s h
m p l oyee job, tasks ons, mac
of e ves of a g c o n diti
e d b ya it.
c ti k i n u s d in
obje e d , wor nts to be s in v olve
rm e rd
perfo d equipm and haza
an er
tools ctive work
e
prosp
HRM Practices Job Analysis & Job Design
atio n :
m p loyee
b S p ecific o w n a se
w ritt en
Jo n
lso k ation is a ,
is a
i fica tion s p e c ific c ati o ns
ca l,
p e c jo b a lifi y si
Job s ations. A tio n a l qu
ie n c e , ph
k i lls
i fi c u c a p e r n s
spec ent of ed v e l o f ex u n i c atio
le m s
statem qualities, al and com onsibilitie y
fic ic esp sor
speci nal, techn aj o b , r
su a l s e n
o ti o e rfo rm r u n u lt h,
em d to p d o t h e
ra lh e a
o ry,
ir e a n n e m
requ d in a job cludes ge t u d e , me y,
e in pti ilit
involv ds. It also lligence, a otional ab
n te m
dema health, in ip skills, e nd ethics,
al sh a
ment nt, leader lity, values
e bi
judgm bility, flexi vity, etc.
a ti
adapt rs and crea
e
m an n
HRM Practices Job Analysis & Job Design
n: d is t he
o b De si g
a l y s i s an t
J
s jo b an It aims a
fo ll o w ly s i s. e s a nd
d e sign jo b a na s k s , duti r k for
J ob aft e r ing t a o
of w t also
s t e p g a n iz u n i t
next g a n d or a s i ngle jectives. I
t l in i n s in to i n o b p s t h at
ou si b ilitie f c e rta o n shi b.
s p o n e n t o re l a ti a in jo
re
c h i e vem hods and of a cert
the a s the met e success a t , h ow
lin e r t h t h e wh t a sks
o u t tial f o t o f th e
s s e n it re fers d e r o
are e ler terms nd the or
p a
In sim how many
,
much b/s.
jo
for a
HRM Practices Training and Development
Development is the
acquisition of knowledge,
skills and behaviors that
improve an employees ability
to meet changes in job
requirements.
HRM Practices Training and Development
The following considerations need to be taken into account when an HR
professional tries to assess the training and development needs of the
employees of an organization:
Spontaneous, unplanned
training or Systematic,
planned training Focus on current job
skills or future job skills
In the same
vein, it can
be half-
yearly as
Further, the appraisal cycle can be based
well.
on the calendar year or the financial year i.e.
it can run from January to December of the same
year or April to March of the following year.
Appraisal Process
There are different rounds to the appraisal process.
The second round consists of the ratings from the manager and the
managers manager. This round is mostly about deciding the band in
which the employee falls post the rating and in comparison with his or
her peers. This process of rationalizing the employees performance with
others is called normalization.
Appraisal Process
In some organizations, this takes place in the third round where the HR
manager is involved as well. In any case, the ratings cannot be decided
without the HR managers assent to the same. Once these rounds are
over, the bonus level or the salary hike are decided.
Did You Know?
o f any
e b l o o d e d s to
h e li f o nn e
a r e t n iz a ti a nd
o p le o r g a b e r
Pe
n. E v ery l e o f cali h a t an
o
izati with peo p t
ople cess.
rga n f p e
o
sta ff ed e k i n do it s suc
be c e, th critical t o ies
. H e n is t ra t e g
e
mettl ation hires he hiring s ake on
iz ,t t
organ is respect anizations petitive
In th ed by org ay s com
follow nce in tod ronment.
i ne vi
prom usiness en
b
Hiring Strategies followed by Organizations
Hiring can take place in many ways and at many levels such as follows:
Hiring can be for entry level positions or lateral hiring where people with
experience are taken on board.
Further, hiring people can be based on competitive exams (entry level) and
the personal approach favored by HR managers for senior level positions.
In recent times, hiring for the entry level has taken on an entirely new
dimension with the campus recruitment procedures that rely on getting the
best talent available from the campuses.
The other way of hiring is through selective approach where the Staffing
department entrusts the placement consultants with the task of identifying
potential employees by picking profiles from employee databases and the
consultants own database as well.
The most niche hiring takes place at senior levels where the essence is
discreetness and hence dedicated consultants or HR professionals approach
people at higher levels on a one-one basis.
Hence, different hiring strategies are used for different levels in the organization.
Components of Hiring Process
INTERVI
EW
Whatever is the hiring strategy deployed, the essential components of the
process remain more or less the same. These include choosing from the
available candidates, taking a decision as to the pay and perks, making an
offer and finally, getting them on board. The hiring process ranges from
less than a month or so to drawn out affairs for niche placement. The
strategic imperatives that underpin hiring depend on the ability of the
organization to effectively leverage its reputation, flexibility in the roles
that are available, availability of skilled resources and finally, the package
that the organization is willing to offer.
Components of Hiring Process
The term fitment is often used as HR jargon which is all
about whether a particular person is suitable for the role
HIRED
that is being filled and how well he or she fits the job
profile. One of the reasons for attrition in organizations is
the fact that many employees join an organization with a
set of assumptions about their role only to have their hopes
dashed in reality. Hence, in recent times, industry experts
have focused on this aspect of ensuring that people are
hired only if they are of the right fit. Therefore, hiring
people is a key component of a companys internal strategy
and hence something that needs detailed attention and
focus.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Retention Strategies
Job Rotation
Grievance Redressal
Job Rotation
Grievance Redressal
Redressal Grievance redressal is the most critical and
Grievance crucial component of the HRM plan as
research has shown that an employee with
pending issues awaiting resolution is twice
Mitigating Job more likely to quit the company than the
Dissatisfaction other employees. Hence, all efforts must be
made to redress the grievances of the
employees.
Components of a Retention Strategy
Job Rotation
Therefore, an effective retention strategy would focus on preventing as well as
addressing grievances. Though it is not the contention that all grievances can be
prevented, they can be pre-emptedGrievance
by activelyredressal
listeningistothe
themost
employees from
critical and
Grievance Redressal
timeGrievance Redressal
to time. This strategy of listening to the
crucial employees
component of would
the HRM revolve around
plan as
a concept of one-one meetings between thehas
research employees
shown thatandan theemployee
manager withand
employees and the HR representative for theissues
pending unit orawaiting
division.resolution
The aim ofis such
twice
regular one-one
Mitigating Job meetings would bemore to identify potential
likely to quit thecauses
company of friction
than the
among the employees and any issuesother
Dissatisfaction theyemployees.
may have vis--vis
Hence, their job and
all efforts must be
benefits. These issues need to be brought
made out into thethe
to redress open before they
grievances of thebecome
contentious which may cause the employee to feel frustrated and quit the job.
employees.
Hence, all efforts must be made to identify sources of employee dissatisfaction
and hygiene factors that must be taken care of for proper functioning of the
employees.
Components of a Retention Strategy
Program Implementation
and Evaluation
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Training Administration
The following are the various kinds of training provided to employees:
1 Induction Training
2 Supervisory Training
3 Technical Training
4 Management Development
1 Induction
InductionTraining
Training
Induction Training is where
Supervisory Training the new recruit is
2
introduced to the
3 Technical Training organization, condition of
services, rules of behavior
4 Management Development etc. In addition, it is also
given to familiarize a new
entrant with the job.
1 Induction Training
2 SupervisoryTraining
Supervisory Training In Supervisory Training,
2
supervisors are trained for
3 Technical Training technical skills, leadership
qualities, for handling
4 Management Development machines and men.
1 Induction Training
1 Induction Training
Basic Salary
Special
Conveyance
Allowances
Leave Travel
Bonus
Allowance
Indirect Compensation
Leave Policy
Retirement
Hospitalization
Benefits
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Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Managing Employees Performance
Solid Performers Misdirected Effort
Reward good performance Coaching
HIGH
Under-utilizers Deadwood
Give honest, direct feedback Withholding pay increases
Provide counseling Demotion
Use team building and Outplacement
conflict resolution Firing
LOW
HIGH LOW
ABILITY
Job Enrichment
Work is often seen as a means to gratify the inner desires of actualization and
satisfaction. Job Enrichment (JE) is an attempt in this direction. The characteristics
identified as constituting Job Enrichment are:
1 5
Duties and
2 4 Current
responsibilities productivity of
3
of every job in human
the resources
organization Skills possessed Future human
by each resource needs
employee of the
organization
Identification of
training needs
Job Satisfaction and Organizational Objectives
The following are the job factors that result in successful performance of jobs by
employees:
Sense of challenge and worthwhile accomplishment
Job freedom
Job Satisfaction and Organizational Objectives
Congenial colleagues
Job security
Some issues that need to be considered before hiring contractors pertain to the
way in which the liability arising out of non-performance of the contractors is
handled, the extent of control that the managers have over vendors and the
payment terms and conditions that organizations have with the vendors. It has
been found in studies and surveys that contractors and vendors operate in the
grey areas of the employer-employee relationship and hence managers need
to be on their guard when dealing with vendors. Liabilities and punitive actions
aimed at vendors usually end up being unresolved because of the way in which
the contracts are worded. Hence, it becomes imperative for the organizations
to be diligent before hiring vendors.
Managing the Vendors
So, if they anticipate new projects coming their way, they immediately ask the
vendor to supply them with the resources that are needed for the new
projects.
Of course, in reality, there is often a lag between the request for new
resources and the resources actually coming on board because of the time
taken to screen the contractors and time taken to bring them up to speed
regarding the work that needs to be done.
Real Life Example
The Human
Resource
department has
noticed that
majority of its
projects are about
It handles several two to three
projects in a year months long.
while catering to its
numerous clients
spread across the
Also, they receive projects
globe.
which require resources of
different skills from one
project to another.
Real Life Example
Globus has recently acquired two
different projects, one for developing
a Java based software and another
for developing and installation of a
SAP based system.
By using
contractors instead
of full-time
employees, the HR
is able to cater to
the requirement of
different skilled
resources for each
Also, when the project.
project is completed,
the contract with the
contractor is
terminated.
The cost of recruitment and overhead
costs such as, conveyance, perks, PF,
Gratuity etc. are saved by using
contractors to complete the projects.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Strategic Human Resource Management
With the advent of todays economy where services account for a major
share of the GDP and the fact that the service sector is essentially people
centric, it is imperative that the people first approach be embraced by the
organizations for sustainable business strategy. The practice of SHRM
demands a proactive and hands on approach by the management as well
as the HR department with regards to the entire gamut of activities
ranging from staffing and training and development to mentoring and pay
and performance management.
How SHRM Works?
s in r e c e nt times
a n y o rg anization e m a n agers
M ted peo p l
hav e d e d ic a
s t o l o o k after
e s ol e fu nction i of t h e
whos f ul fi llin g
he e n a b l ing and rces.
t t h e re s o u
n e e d s of
For instan
ce, Infosys
are its ass states tha k e d ch a n ge from
t people ar
statement
ets and th
e famous This is a m eople as just
one of the
by Mr. Nar
aya treating p n g p e ople as
founders o na Murthy, to tre ati
f the comp resources
that the ca
pital of Inf any assets.
every mor o s
ning and w ys walks in
evening h alks out ev
as to be ta ery
ken in this
context.
How SHRM Works?
Generating awareness of
cross cultural sensitivities
among managers globally
and hiring of staff across
Create a local geographic boundaries. Training upon cultures
appeal without and sensitivities of the
compromising upon host country.
the global identity.
Global Human Resource Management
Many integrating
mechanisms operate Integrating
simultaneously.
Mechanisms
The role of staffing is still the same here, that is, hiring individuals with
requisite skills to do a particular job. The challenge here is developing
tools to promote a corporate culture that is almost the same everywhere
except that the local sensitivities are taken care of.
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Issues affecting HRM
The following are some of the key issues faced during HRM:
Mergers
International
& Reengineering
Expansion
Acquisitions
Total Quality
Down-sizing Outsourcing Management
Improving HRM
Once a strategic decision has been established and HRMs effectiveness
evaluated, leaders of HRM function can explore how to improve its effectiveness
in contributing to the firms competitiveness
Transformational (5-15%)
Strategic Redirection and Renewal
Cultural Change
Management Development
Traditional (15-30%)
Recruitment, Selection, Training & Employee Relation
Performance Management and Compensation
Transactional (65-75%)
Benefits Administration & Employee Services
Record Keeping
Outsourcing
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Human Resource Information System (HRIS)
One of the significant and emerging
areas in Human Resource
Management is the Human Resource
Information System (HRIS). Today,
organizations need accurate and
timely information to take human
resource decisions. The speed, with
which information is retrieved,
procured and analyzed for decision
making accounts for the efficiency of
an organization. HRIS is a systematic
way of sorting data and information
for each individual employee, to aid
in planning, decision making and
submitting reports to other
departments. HRIS is defined as
composite database, computer
applications and hardware and
software that are used to collect,
record, store, manage, deliver and
manipulate data for Human Resource
Management.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employees Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource Management
Explain What is Human Resource Information System
List the Tips for Effective HRM
Tips for Effective HRM
Change management
Top leader sponsorship Correspondence with and communication
and buy-in stakeholder strategy
Keith
Keith Jones
Jones isis aa Human
Human
Resource
Resource Manager.
Manager. He He has
has
noticed
noticed that
that many
many teamteam 1.
1. What
What do
do you
you think
think Keith
Keith
members
members under
under the the leadership
leadership should
should do
do to
to help
help
of
of David
David Schindler
Schindler areare facing
facing Davids
Davids team
team members?
members?
problems
problems regarding
regarding his his
dominant
dominant attitude,
attitude, rudeness
rudeness 2.
2. How
How can
can Keith
Keith help
help
and
and authoritarian
authoritarian approach.
approach. David
David get
get close
close with
with his
his
Some
Some of of Davids
Davids team
team members
members team
team and
and resolve
resolve the
the
have
have even
even approached
approached Keith Keith issue?
issue?
with
with aa request
request to to change
change their
their
teams.
teams.
Summary
Global HRM and Staffing
Policy
Human Resource
Management
Geocentric
Ethnocentric
Human Resource
Management
Summary
Human Resource Employee Remuneration
Planning and Benefits Administration
Processes
Performance Management
Human Resource
Management
Employee Relations
Summary
Human Resource
Management
Job Enrichment
Feedback from
Task Significance Others
Dealing with
Others
Summary
Supervisory
Technical Training
Training
Management
Induction Training
Development
Training Administration
Human Resource
Management
Summary
Human Resource
Management
Scope
HRM in Employee
Welfare
Glossary
Click each alphabet to learn more.
T
Glossary
Click each alphabet to learn more.
T
Glossary
Click each alphabet to learn more.
T
Glossary
Click each alphabet to learn more.
Remuneration - Remuneration is
the money that is paid regularly for
A
doing work
T
Glossary
Click each alphabet to learn more.
T
Glossary
Click each alphabet to learn more.
T
ha v e
You ly
e s s fu l
Su cc e
e t e d t h
Com p l
l e o n
Modu n t o
d u c t io
Intro n
H u m a
o u rc e
Res t!
g e m e n
Man a