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(Human Resource Management)

(B.COM. SEM - V)

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Q.1 What is Human Resource Management?
Ans: - Human Resource Management is a process, which consists of four main
activities, namely, acquisition, development, motivation, as well as maintenance
of human resources.
Scott, Clothier and Spriegel have defined Human Resource Management as
that branch of management which is responsible on a staff basis for concentrating
on those aspects of operations which are primarily concerned with the
relationship of management to employees and employees to employees and with
the development of the individual and the group.

Human Resource Management is responsible for maintaining good human

relations in the organization. It is also concerned with development of individuals
and achieving integration of goals of the organization and those of the individuals.

French Wendell, defines —Human resource management as the

recruitment, selection, development, utilization, compensation and motivation of
human resources by the organization.

According to Edwin B. Flippo, —Human resource management is the

planning, organizing, directing and controlling of the procurement, development,
resources to the end that individual and societal objectives are accomplished. This
definition reveals that human resource (HR) management is that aspect of
management, which deals with the planning, organizing, directing and controlling
the personnel functions of the enterprise.

Q.2 What is the nature of Human Resource Management?

Ans :- The emergence of human resource management can be attributed to the
writings of the human relation thinkers who attached great significance to the
human factor.
Lawrence Appley remarked,
the personnel department in discharging this responsibility.
The nature of the human resource management has been highlighted in its
following features:
1. Inherent Part of Management:
Human resource management is inherent in the process of management. This
function is performed by all the managers throughout the organization rather
that by the personnel department only. If a manager is to get the best of his
people, he must undertake the basic responsibility of selecting people who will
work under him.

2. Pervasive Function:
Human Resource Management is a pervasive function of management. It is
performed by all managers at various levels in the organization. It not a
responsibility that a manager can leave completely to someone else. However, he
may secure advice and help in managing people from experts who have special
competence in personnel management and industrial relations.

3. Basic to all Functional Areas:

Human Resource Management permeates all the functional area of
management such as production management, financial management,
and marketing management. That is every manager from top to bottom,
working in any department has to perform the personnel functions.

4. People Centered :
Human Resource Management is people centered and is relevant in all types of
organizations. It is concerned with all categories of personnel from top to the
bottom of the organization. The broad classification of personnel in an industrial
enterprise may be as follows: (i) Blue-collar workers (i.e. those working on
machines and engaged in loading, unloading etc.) and white-collar workers (i.e.
clerical employees), (ii) Managerial and non-managerial personnel, (ji)
Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.)
and non- professional personnel.
5. Personnel Activities or Functions:
Human Resource Management involves several functions concerned with the
management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees. For the
performance of these activities efficiently, a separate department known as
Personnel Department is created in most of the organizations.

6. Continuous Process:
Human Resource Management is not a _one shot ‘function. It must be performed
continuously if the organizational objectives are to be achieved smoothly.

7. Based on Human Relations:

Human Resource Management is concerned with the motivation of human
resources in the organization. The human beings can‘t be dealt with like physical
factors of production. Every person has different needs, perceptions and
expectations. The managers should give due attention to these factors. They
require human relations skills to deal with the people at work, Human relations
skills are also required in training performance appraisal, transfer and promotion
of subordinates.
Personnel Management VS Human Resource Management:
Contemporary Human Resource Management, as a part and parcel of
management function, underscores strategic approach to management in areas
of acquisition, motivation, and management of people at work.

Q.3 What are the objectives of HRM?

Ans:- According to Scott, Clothier and Spriegal, —The objectives of Human
Resource Management, in an organization, is to obtain maximum individual
development, desirable working relationships between employers and
employees and employees and employees, and to affect the moulding of human
resources as contrasted with physical resources.
The basic objective of human resource management is to contribute to the
realisation of the organizational goals. However, the specific objectives of
human resource management are as follows:
(i) To ensure effective utilisation of human resources, all other
organizational resources will be efficiently utilised by the human
resources.

(ii) To establish and maintain an adequate organizational structure of

relationship among all the members of an organization by dividing of
organization tasks into functions, positions and jobs, and by defining
clearly the responsibility, accountability, authority for each job and its
relation with other jobs in the organization.

(iii) To generate maximum development of human resources within the

organization by offering opportunities for advancement to employees
through training and education.

(iv) To ensure respect for human beings by providing various services and
welfare
Facilities to the personnel,

(v) To ensure reconciliation of individual/group goals with those of the

organization in such a manner that the personnel feel a sense of
commitment and loyalty towards it.

(vi) To identify and satisfy the needs of individuals by offering various

monetary and non-monetary rewards.

In order to achieve the above objectives, human resource management

undertakes the following activities:
(i) Human Resource Planning, i.e., determining the number and kinds of
personnel required to fill various positions in the organization.

(ii) Recruitment, selection and placement of personnel, i.e., employment

function.
 (iii) Training and development of employees for their efficient
performance and growth,

(iv) Appraisal of performance of employees and taking corrective steps

such as transfer from one job to another.

(v) Motivation of workforce by providing financial incentives and

avenues of
Promotion.
(vi) Remuneration of employees. The employees must be given sufficient
wages and
fringe benefits to achieve higher standard of living and to motivate
them to show
higher productivity.

(vi) Social security and welfare of employees.

Q.4 Discuss the functions of human Resource Management with

relevant examples?
Ans: - The main functions of human resource management are classified into
two categories: (a) Managerial Functions and (b) Operative Functions

(a) Managerial Functions

Following are the managerial functions of Human Resources Management.
1. Planning :
The planning function of human resource department pertains to the steps
taken in determining in advance personnel requirements, personnel
programmes, policies etc. After determining how many and what type of
people are required, a personnel manager has to devise ways and means
to motivate them.

2. Organization :
Under organization, the human resource manager has to organise the
operative functions by designing structure of relationship among jobs,
personnel and physical factors in such a way so as to have maximum
 contribution towards organizational objectives. In this way a personnel
manager performs following functions :
(a) preparation of task force;
(b) allocation of work to individuals;
(c) integration of the efforts of the task force;
(d) coordination of work of individual with that of the department.

3. Directing :
Directing is concerned with initiation of organised action and stimulating
the people to work. The personnel manager directs the activities of people
of the organization to get its function performed properly. A personnel
manager guides and motivates the staff of the organization to follow the
path laid down in advance.

4. Controlling : It provides basic data for establishing standards, makes job

analysis and
performance appraisal, etc. All these techniques assist in effective control
of the qualities, time and efforts of workers
(b) Operative Functions : The following are the Operative Functions
of Human Resource Management

1. Procurement of Personnel:
It is concerned with the obtaining of the proper kind and number of
personnel necessary to accomplish organization goals. It deals specifically
with such subjects as the determination of manpower requirements, their
recruitment, selecting, placement and orientation, etc.

2. Development of Personnel :
Development has to do with the increase through training, skill that is
necessary for proper job performance. In this process various techniques
of training are used to develop the employees. Framing a sound promotion
policy, determination of the basis of promotion and making performance
appraisal are the elements of personnel development function.

3. Compensation to Personnel :
 Compensation means determination of adequate and equitable
remuneration of personnel for their contribution to organization objectives.
To determine the monetary compensation for various jobs is one of the
most difficult and important function of the personnel management. A
number of decisions are taken into the function, viz., job-evaluation,
remuneration, policy, inventive and premium plans, bonus policy and co-
partnership, etc. It also assists the organization for adopting the suitable
wages and salaries, policy and payment of wages and salaries in right time,

4. Maintaining Good Industrial Relation :

Human Resource Management covers a wide field. It is intended to reduce
strifies, promote industrial peace, provide fair deal to workers and establish
industrial democracy. It the personnel manager is unable to make
harmonious relations between management and labour industrial unrest
will take place and millions of man-days will be lost. If labour management
relations are not good the moral and physical condition of the employee
will suffer, and it will be a loss to an organization vis-a-visa nation. Hence,
the personnel manager must create harmonious relations with the help of
sufficient communication system and co-partnership.

5. Record Keeping :
In record-keeping the personnel manager collects and maintains
information concerned with the staff of the organization. It is essential for
every organization because it assists the management in decision making
such as in promotions.

6. Personnel Planning and Evaluation :

Under this system different type of activities are evaluated such as
evaluation of performance, personnel policy of an organization and its
practices, personnel audit, morale, survey and performance appraisal, etc.

Q.5 Describe the importance of HRM.

Ans :- Human Resource Management has a place of great importance.
According to Peter F. Drucker, — The proper or improper use of the different
factors of production depend on the wishes of the human resources. Hence,
besides other resources human resources need more development. Human
resources can increase cooperation but it needs proper and efficient management
to guide it.
Importance of personnel management is in reality the importance of labour
functions of personnel department which are indispensable to the management
activity itself. Because of the following reasons human resource management
holds a place of importance,
1. It helps management in the preparation adoption and continuing evolution
of personnel programmes and policies.
2. It supplies skilled workers through scientific selection process
3. It ensures maximum benefit out of the expenditure on training and
development and
appreciates the human assets.

4. It prepares workers according to the changing needs of industry and

environment.
5. It motivates workers and upgrades them so as to enable them to accomplish
the organization goals.
6. Through innovation and experimentation in the fields of personnel, it helps
in reducing casts and helps in increasing productivity.
7. It contributes a lot in restoring the industrial harmony and healthy
employer- employee
relations.

8. It establishes mechanism for the administration of personnel services that

are delegated to the personnel department.
Thus, the role of human resource management is very important in an
organization and it should not be undermined especially in large scale enterprises.
It is the key to the whole organization and related to all other activities of the
management i.e., marketing, production, finance etc.
Human Resource Management is concerned with the managing people as
an organizational resources rather than as factors of production. It involves a
system to be followed in business firm to recruit, select, hire, train and develop
human assets. It is concerned with the people dimension of an organization. The
attainment of organizational objectives depends, to a great extent, on the way in
which people are recruited, developed and utilized by the management.
Therefore, proper co-ordination of human efforts and effective utilization of
human and others material resources is necessary.

Q. 6 What are the future Challenges before managers?

Ans :- Because of continuous changing socio-economic, technological and
political conditions, the human resource managers of the future shall have to face
more problems in the management of labor. The human resource managers of
today may find themselves obsolete in the future due to changes in environment
if they do not update themselves some of the important challenges which might
be faced by the managers in the management of people in business and industry
are discussed below :

1. Increasing Size of Workforce :

The size of organizations is increasing. A large number of multinational
organizations have grown over the years. The number of people working in the
organization has also increased. The management of increased workforce might
create new problems and challenges as the workers are becoming more conscious
of their rights,

2. Increase in Education Level :

The governments of various countries are taking steps to eradicate illiteracy and
increase the education level of their citizens. Educated consumers and workers
will create very tough task for the future managers.

3. Technological Advances :
With the changes coming in the wake of advanced technology, new jobs are
created and many old jobs become redundant. There is a general apprehension of
immediate unemployment. In the competitive world of today, industry cannot
hope to survive for long with old technology. The problem, of unemployment
resulting from modernization will be solved by properly assessing manpower
needs and training of redundant employees in alternate skills.
4. Changes in Political Environment :
There may be greater Government's interference in business to safeguard the
interests of workers, consumers and the public at large. Government's
participation in trade, commerce and industry will also pose many challenges
before management. The Government may restrict the scope of private sector in
certain areas in public interest. It does not mean chances of co-operation between
the Government and private sector are ruled out. In fact, there will be more and
more joint sector enterprises.

5. Increasing Aspirations of Employees :

Considerable changes have been noted in the worker of today in comparison to
his counterpart of 1950s. The workers are becoming more aware of their higher
level needs and this awareness would intensify further in the future workers.

6. Changing Psychosocial System :

In future, organizations will be required to make use of advanced technology in
accomplishing their goals while satisfying human needs. In the traditional
bureaucratic model, the organizations were designed to achieve technical
functions with a little consideration given to the psychosocial system, But future
management would be required to ensure effective participation of lower levels
in the management of the organization system.

7. Computerized Information System :

In the past, the automation of manufacturing processes had a major effect upon
the systems of production, storage, handling and packaging, etc. More recently,
there has been and in the future there will be the impact of revolutionary
computerised information system on management. This revolutionary
development would cover two primary areas of personnel management which are
as follows:
(a) The use of electronic computers for the collection and processing of data, and
(b) The direct application of computers in the managerial decision making
process.

8. Mobility of Professional Personnel :

Organizations will expand the use of boundary agents whose primary function
will be achieving coordination with the environment. One interesting fact will be
an increase in the mobility of various managerial and professional personnel
between organizations. As individuals develop greater technical and professional
expertise, their services will be in greater demand by other organizations in the
environment.

9. Changes in Legal Environment :

Many changes are taking place in the legal framework within which the industrial
relations systems in the country are now functioning. It is the duty of the human
resource or personnel executive to be aware of these changes and to bring about
necessary adjustments within the organizations so that greater utilisation of
human resources can be achieved. This, indeed, is and would remain a major
challenge for the personnel executive.

10.Management of Human Relations :

On the _industrial relations’ front, things are not showing much improvement
even after so many efforts by the government in this direction, Though a large
number of factors are responsible for industrial unrest but a very significant cause
is the growth of multiunions in industrial complexes having different political
affiliations. Under the present conditions, it appears that inter-union rivalries
would grow more in the coming years and might create more problems in the
industry.
Management of human relations in the future will be more complicated
than it is today. Many of the new generation of employees will be more difficult
to motivate than their predecessors. This will be in part the result of a change in
value systems coupled with rising educational levels. Greater skepticism
concerning large organizations and less reverence for authority figures will be
more common. Unquestioning acceptance of rules and regulations will be less
likely.

New Role of Human Resource Management

Human Resource Management in the _New Millenium’ has undergone a great
revolution by questioning the accepted practices and re-inventing the
organizations as well as structures. Many traditional practices have been thrown
out. As an example, it can be seen that hierarchies are vanishing and there is
greater emphasis on flat organizations. It means a great deal of specialisation and
skills. It also means upgrading the norms and standards of work as well as
performance.

The new role of human resource management is much more strategic than before.
Some of the new directions of the role of HRM can be summed up as follows

1. A Facilitator of Change : To carry people through upheaval requires the

true management of human resources.

2. An Integrated Approach to Management : Rather than being an isolated

function, human resource is regarded as a core activity, one which shapes
a company’s values. In particular, this can have an impact on customer
service.

3. A Mediator : Establishing and balancing the new and emerging aspirations

and requirements of the company and the individual.

These changes, which are taking place, involve more commitment of

the organization to the development of people by improving performance and
cutting costs. As a result of this, the duration of tenure, which was traditionally
long standing, is now limited, future is becoming less certain, management
opportunities are self- determined and motivational factors are more concerned
with enhancing future employability rather than loyalty to the company and, at
the same time, the rewards are going up in terms of higher salaries. The future
creative careers, will require more involved approach to career development,
which will include :

(i) Share employees with strategic partner organizations (customers of

suppliers) in lieu of internal moves.

(ii) Encourage independence : Employees may go elsewhere for career

development, possibly to return in a few years.
 (iii) Fund-groups of employees to set-up as suppliers outside the
organization

(iv) Encourage employees to think of themselves as a business and of the

organization's various departments as customers.
(v) Encourage employees to develop customers outside the organization.
(vi) Help employees develop self-marketing, networking and consultancy
skills to enable
them to search out, recognize or create new opportunities for both
themselves and
the organization.
(vii) Identify skilled individuals in other organizations who can contribute
on a temporary project basis or part-time.
(viii) Regularly expose employees to new people and ideas to stimulate
innovation.
(viii) Balance external recruitment at all levels against internal promotion to
encourage
open competition, —competitive tendering for jobs to discourage
seeing positions as someone's territory which causes self-protective
conformity.
(x) Foster more cross-functional teamwork for self-development.
(xi) Eliminate the culture of valuing positions as career goals in favour of
portraying a career as a succession of bigger projects, achievements
and new skills learned.
The concept of
— Position is part of the outside static concept of the organization.
Positions are out, Processes and projects are in.

(xii) Abandon top-down performance appraisal in favour of self-appraisal

based on internal customer satisfaction surveys and assessing
people as you would suppliers.
(xiii) Replace top-down assessment processes with self-assessment
techniques and measure performance in term of results.
 Functions of a Human Resource Manager
A human resource manager, charged with fulfilling the objectives of an
organization, should be a leader with high intellectual powers, a visionary and a
philosopher who provides the initiative to shape the future in terms of leading the
human beings in an organization towards more prosperous and progressive
policies.

1. Human Resource Man as an Intellectual : The basic skill in the human

resource field as compared to technologists or financial experts is the skill to
communicate, articulate, understand and above all, to be an expert when it comes
to putting policies and agreements in black and white. The personnel man‘s skill
lies in his command over the language. A personnel man has to deal with
employees and he must possess the skills of conducting fruitful and systematic
discussions and of communicating effectively. He should also be in a position to
formulate principles and foresee the problems of the organization, This means
that he would require the mental ability to deal with his people in an intelligent
manner as well as to understand what they are trying to say...

2. Human Resource Man as an Educator : It is not enough that a human

resource man has command-over the language, which, however, remains his
primary tool. He should be deeply interested in learning and also in achieving
growth. Basically, human beings like to grow and realise their full potential. In
order to harmonise the growth of individuals with that of the organization, a
personnel administrator must not only provide opportunities for his employees to
learn, get the required training and assimilate new ideas but also he himself should
be a teacher. A personnel man who simply pushes files and attends labour courts
for conciliation purposes and other rituals of legal procedure for the settlement of
industrial disputes is not a personnel administrator of the future.

3. Human Resource Man as a Discriminator : A human resource

administrator must have the capacity to discriminate between right and wrong,
between that which is just and unjust and merit and non-merit, In other words,
he should be a good judge when he sits on a selection board, a fair person when
he advises on disciplinary matters and a good observer of right conduct in an
organization.
 4. Human Resource Man as an Executive : The human resource man
must execute the decisions of the management and its policies with speed,
accuracy and objectivity. He has to streamline the office, tone up the
administration and set standards of performance. He has to coordinate the control
functions in relation to the various other divisions and, in doing so he should be
in a position to bring unity of purpose and direction in the activities of the
personnel department. He must ask relevant questions and not be merely involved
in the office routine whereby the status quo is maintained. He should have the
inquisitiveness to find out causes of delay, tardy work and wasteful practices, and
should be keen to eliminate those activities from the personnel functions which
have either outlived their utility or are not consistent with the objectives and
purposes of the organization.

5. Human Resource Man as a Leader : Being basically concerned with

people or groups of people, and being placed in the group dynamics of various
political and social functions of an organization, a Human resource man must not
shirk the role of leadership in an organization. He, by setting his own example
and by working towards the objectives of sound personnel management practices,
must inspire his people and motivate them towards better performance. He should
resolve the conflicts of different groups and build up teamwork in the
organization.

6. Human Resource Man as a Humanist : Deep faith in human values

and empathy with human problems, especially in less developed countries, are
the sine qua non for a Human resource man. He has to deal with people who toil
at various levels and partake of their joys and sorrows. He must perform his
functions with sensitivity and feeling.

7. Human Resource Man as a Visionary : While every leading function

of an organization must evolve its vision of the future, the primary responsibility
for developing the social organization towards purposive and progressive action
fall on the personnel man. He should be a thinker who sets the pace for policy-
making in an organization in the area of human relations and should gradually
work out new patterns of human relations management consistent with the needs
of the organization and the society. He must ponder on the social obligations of
the enterprise, especially if it is in the public sector, where one has to work within
the framework of social accountability. He should be in close touch with socio-
economic changes in the country. He should be able to reasonably forecast future
events and should constantly strive to meet the coming challenges.

Role and Challenges of Human Resource Manager

Human Resource (HR) Department is established in every organization under
the charge of an executive known as Human Resource Manager. This department
plays an important role in the efficient management of human resources. The
human resource department gives assistance and provides service to all other
departments on personnel matters. Though personnel or human resource manager
is a staff officer in relation to other departments of the enterprise, he has a line
authority to get orders executed within his department. The human resource
manager performs managerial functions like planning, organizing, directing and
controlling to manage his department. He has also to perform certain operative
functions like recruitment, selection, training, placement, etc., which the other
line managers may entrust to him. He is basically a manager whatever may be the
nature of his operative functions. The status of Human Resource Manager in an
organization depends upon the type of organization structure.

Role of Human Resource Manager in an Organization

In most of the big enterprises, human resource department is set up under the
leadership of personnel manager who has specialized knowledge and skills, The
human resource manager performs managerial as well as operative functions.
Since he is a manager, he performs the basic functions of management like
planning, organizing, directing and controlling to manage his department. He has
also to perform certain operative functions of recruitment, selection, training,
placement, etc., which the problems to management, the human resource
managers attach highest priority to the settlement of industrial disputes than
anything else

The role of human resource management in industry is underlined by the

complex and dynamic nature of environment under which the modern large-scale
industries function. The impact of technology on organization structure,
politicization of workers’ unions, and the growing consciousness of industrial
employees about their rights and privileges, have made the role of personnel
management increasingly more important in industrial undertakings. The task has
also been facilitated by the greater recognition of the value of human resources
in industry and application of human resource development (HRD) techniques by
the enlightened managers in modern organizations.

Q.7 What do you mean by HRP?

Ans. Human Resource Planning (HRP)
Human Resource Planning (HRP) is the process of forecasting the future
human resource requirements of the organization and determining as to how
the existing human resource capacity of the organization can be utilized to
fulfill these requirements. It, thus, focuses on the basic economic concept of
demand and supply in context to the human resource capacity of the organization.

Q.8 What is the process of HRP?

Ans. It is the HRP process which helps the management of the organization in
meeting the future demand of human resource in the organization with the supply
of the appropriate people in appropriate numbers at the appropriate time and
place. Further, it is only after proper analysis of the HR requirements can the
process of recruitment and selection be initiated by the management. Also, HRP
is essential in successfully achieving the strategies and objectives of organization.
In fact, with the element of strategies and long term objectives of the organization
being widely associated with human resource planning these days, HR Planning
has now became Strategic HR Planning.

Though, HR Planning may sound quite simple a process of managing the numbers
in terms of human resource requirement of the organization, yet, the actual
activity may involve the HR manager to face many roadblocks owing to the effect
of the current workforce in the organization, pressure to meet the business
objectives and prevailing workforce market, condition. HR Planning, thus, help
the organization in many ways as follows:
 * HR managers are in a stage of anticipating the workforce requirements rather
than getting
surprised by the change of events

 Prevent the business from falling into the trap of shifting workforce market,
a common
concern among all industries and sectors

* Work proactively as the expansion in the workforce market is not always in

conjunction
with the workforce requirement of the organization in terms of professional
experience,
talent needs, skills, etc.

* Organizations in growth phase may face the challenge of meeting the need
for critical set
of skills, competencies and talent to meet their strategic objectives so they
can stand well-
prepared to meet the HR needs

* Considering the organizational goals, HR Planning allows the identification,

selection
and development of required talent or competency within the organization.

It is, therefore, suitable on the part of the organization to opt for HR Planning to
prevent any
unnecessary hurdles in its workforce needs. An HR Consulting Firm can provide
the
organization with a comprehensive HR assessment and planning to meet its future
requirements
in the most cost-effective and timely manner.
An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability

in the organization is the foremost step in HR Planning. It includes a
comprehensive study of the human resource strength of the organization in
terms of numbers, skills, talents, competencies, qualifications, experience,
age, tenures, performance ratings, designations, grades, compensations,
benefits, etc. At this stage, the consultants may conduct extensive interviews
with the managers to understand the critical HR issues they face and
workforce capabilities they consider basic or crucial for various business
processes.

 Future HR Demand: Analysis of the future workforce requirements of the

business is, the second step in HR Planning. All the known HR variables like
attrition, lay-offs, foreseeable vacancies, retirements, promotions, pre-set
transfers, etc. are taken into consideration while determining future HR
demand. Further, certain unknown workforce variables like competitive
factors, resignations, abrupt transfers or dismissals are also included in the
scope of analysis.

 Demand Forecast: Next step is to match the current supply with the future
demand of HR, and create a demand forecast. Here, it is also essential to
understand the business strategy and objectives in the long run so that the
workforce demand forecast is such that it is aligned to the organizational
goals.

 HR Sourcing Strategy and Implementation: After reviewing the gaps in

the HR supply and demand, the HR Consulting Firm develops plans to meet
these gaps as per the demand forecast created by them. This may include
conducting communication programs with employees, relocation, talent
acquisition, recruitment and outsourcing, talent management, training and
coaching, and revision of policies. The plans are, then, implemented taking
into confidence the mangers so as to make the process of execution smooth
and efficient. Here, itis important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any untoward
situation coming from the employees.
Hence, a properly conducted process of HR Planning by an HR Consulting Firm
helps the organization in meeting its goals and objectives in timely manner with
the right HR strength in action.

Q.9 What is the concept of Recruitment?

Ans. Effect recruitment is the next big process after human resource planning is
to develop applicant polling called recruiting. The more application you have ,
the more selective you can be in your hiring. If only two candidates apply for two
openings , you can use techniques like interviews and tests to screen out all but
the best. Some employees use a recruiting yield pyramid to calculate the number
of applicants they must generate to hire the required number of new employees.
In the company knows it needs 50 new entry-level accountants next year then
they use this recruitment yield pyramid. It is a historical arithmetic relationships’
between recruitment leads and invitees , invitees and interviews , interviews and
offers made , and offers made and offers accepted. Therefore for getting the 50
recruits the firm must generate 1,200 leads to be able to invite 200 viable
candidates to its offices for interviews. The firm will then get to interview about
150 of those invited and from these it will make 100 offers. Of those 100 offers ,
about 50 will accept. A effective recruitment is carried out by something called
recruitment policy which is derived from personnel policy of the same
organization. Recruitment practices vary from organization to organization, some
follow centralized way such as commercial banks and others such as railways
follow decentralized process for various grade of jobs.
Q. 10 What is the process of recruitment?
Ans. The recruitment process consists various steps

Q. 11 Discuss the different types of selection tests.

Ans. Selection can be defined as process of choosing the right person for the
right job.

Types of selection test

Different selection test are adopted by different organization upon their
requirements. These tests are specialized test which have been scientifically
tested and hence they are also known as scientific test.

1. Aptitude test :-
Aptitude tests are test which assess the potential and ability of a candidate.
It enables to find out whether the candidate is suitable for the job. The job
 may be managerial technical or clerical. The different types of aptitude test
areas are:

a. Mental ability/mental intelligence test:-

This test is used to measure the overall intelligence and intellectual ability
of the candidate to deal with problems. It judges the decision making
abilities.

b. Mechanical aptitude test :-

This test deals with the ability of the candidate to do mechanical work.
It is used to judge and measure the specialized knowledge and problem
solving ability. It is used for technical and maintenance staff.

II. Intelligence test :-

This test measures the numerical skills and reasoning abilities of the
candidates. Such abilities become important in decision making. The
test consists of logical reasoning ability, data interpretation,
comprehension skills and basic language skills.

III. Personality test :-

In this test the emotional ability or the emotional quotient is tested. This
test judges the ability to work in a group inter personal skills, ability to
understand and handle conflicts and judge motivation levels. This test
is becoming very popular now days.

IV. Performance test :-

This test judges and evaluates the acquired knowledge and experience
of the individual and his speed and accuracy in performing a job. It is
used to test performance of typist, data entry operators etc.
Q. 12 What is HRIS ?
Ans. HRIS, which is also known as a human resource information
system or human resource management system (HRMS), is basically
an intersection of human resources and information technology through
HR software. This allows HR activities and processes to occur
electronically.

To put in another way, a HRIS may be viewed as a way, through

software, for business big and small to take care of a number of acivities,
including those related to human resources, accounting, management, and
payroll. A HRIS allows a company to plan its HR costs more effectively,
as well as to manage them and control them without needing to allocate
too many resources towards them.

In most situations, a HRIS will also lead to increase in efficiency when

it comes to making decisions in HR. The decisions made should also
increase in quality – and as a result, the productivity of both employees
and managers should increase and become more effective.
Q. 13 What is the Importance of IRIS Systems?
Ans. There are a number of solutions offered to a company that adopts a
HRIS. Some of these include solutions training, payroll, HR, compliance,
and recruiting. The majority of quality HRIS systems include flexible
designs that feature databases that are integrated with a wide range of
features available. Ideally, they will also include the ability to create
reports and analyse information quickly and accurately, in order to make
the workforce easier to manage.

Through the efficiency advantages conferred by HRIS systems, a HR

administrator can obtain many hours of his or her day back instead of
spending these hours dealing with non-strategic, mundane tasks required
to run the administrative-side of HR.

Similarly, a HRIS allows employees to exchange information with greater

ease and without the need for paper through the provision of a single
location for announcements, external web links, and company policies.
This location is designed to be centralized and accessed easily from
anywhere within the company, which also serves to reduce redundancy
within the organization.

For example, when employees wish to complete frequently recurring

activities such as requests for time off or electronic pay stubs and changes
in W-4 forms—such procedures can be taken care of in an automated
fashion without the need for human supervision or intervention. As a
result, less paperwork occurs and approvals, when deigned, may be
appropriated more efficiently and in less time.

HR and Payroll Factors

When a company invests in an affordable HRIS, it suddenly becomes
capable of handling its workforce by looking at two of the primary
components: that of payroll and that of HR. Beyond these software
solutions, companies also invest in HRIS modules that help them put the
full productivity of their workforce to use, including the varied
experiences, talents, and skills of all staff within the enterprise.
HRIS Popular Modules
A range of popular modules are available, including those for recruiting,
such as resume and applicant management, attendance, email alerts,
employee self-service, organizational charts, the administration of
benefits, succession planning, rapid report production, and tracking of
employee training.

In conclusion, it is important to choose the right HRIS. A company that

takes the time to invest in a HRIS that fits their goals, objectives, mission,
and values, is a company that is investing in its future and in its success.
It will be necessary to customize any HRIS to the unique needs of a
company so the system will remain flexible and relevant throughout the
life of the company or enterprise.

Q. 14 What is strategic HRM?

Ans. Strategic human resource management is a complex process which
is constantly evolving and being studied and discussed by academics
and commentators. Strategic Human Resource Management (SHRM) is
an area that continues to evoke a lot of debate as to what it actually
embraces. Definitions range from ‘a human resource system that is
tailored to the demands of the business strategy’ (Miles and Snow 1984)
to ‘the pattern of planned human resource activities intended to enable an
organization to achieve its goals’ (Wright and McMahan 1992).

Strategic human resource management (SHRM) is a concept that

integrates traditional human resource management activities within a
firm's overall strategic planning and implementation. SHRM integrates
human resource considerations with other physical, financial, and
technological resources in the setting of goals and solving complex
organizational problems (Legnick-Hall & Legnick-Hall, 1988) SHRM
also emphasizes the implementation of a set of policies and practices that
will build employee pool of skills, knowledge, and abilities (Jackon and
Schulerm 1995) that are relevant to organizational goals. Thus a larger
variety and more complete set of solutions for solving organizational
 problems are provided and the likelihood that business goals of the
organization will be attained is increased (Mechelin, 1996).

Strategic Human Resource Management (SHRM) is an area that

continues to evoke a lot of debate as to what it actually embraces.
Definitions range from 'a human resource system that is tailored to the
demands of the business strategy’ (Miles and Snow 1984) to the pattern
of planned human resource activities intended to enable an organization
to achieve its goals’ (Wright and McMahan 1992). Although the
difference between these two seems subtle, the implications of the
difference are considerable. Where in the first definition human resource
management is a ‘reactive’ management field in which human resource
management becomes a tool to implement strategy, in the latter definition
it has a proactive function in which human resource activities actually
create and shape the business strategy (Sanz-Valle et al. 1999).
Strategic HRM can be regarded as a general approach to the strategic
management of human resources in accordance with the intentions of the
organization on the future direction it wants to take. It is concerned with
longer-term people issues and macro-concerns about structure, quality,
culture, values, commitment and matching resources to future need. It has
been defined as:
All those activities affecting the behavior of individuals in their efforts
to formulae and implement the strategic needs of business. (SCHULER,
R.S., 1992)
The pattern of planned human resource deployments and activities
intended to enable the forms to achieve its goals. (WRIGHT, P.M. and
MCMAHAN, G.C. (1992)

Q. 15 What are the approaches of the SHRM?

Ans * attempts to link Human Resource activities with competency based
performance measures
* attempts to link Human Resource activities with business surpluses or
profit
 These to approaches indicate two factors in an organizational setting. The
first one is the human factor, their performance and competency and the
later is the business surplus. An approach of people concern is based on
the belief that human resources are uniquely important in sustained
business success. An organization gains competitive advantage by using
its people effectively, drawing on their expertise and ingenuity to meet
clearly defined objectives. Integration of the business surplus to the human
competency and performance required adequate strategies. Here the role
of strategy comes into picture. The way in which people are managed,
motivated and deployed, and the availability of skills and knowledge will
all shape the business strategy. The strategic orinetation of the business
then requires the effective orinetation of human resource to competency
and performance excellance.

Q 16 Discuss the Benefits and barriers to SHRM

1. Identifying and analyzing external opportunities and threats that may
be crucial to the company’s success.
2. Provides a clear business strategy and vision for the future.
3. To supply competitive intelligence that may be useful in the strategic
planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are addressed
systematically.
7. To supply information regarding the company's internal strengths and
weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough comopetency
 Barriers of SHRM
Barriers to successful SHRM implementation are complex. The main reason
is a lack of growth strategy or failure to implement one. Other major
barriers are summarized as follows:
1. Inducing the vision and mission of the change effort.
2. High resistance due to lack of cooperation from the bottom line.
3. Interdepartmental conflict.
4. The commitment of the entire senior management team.
5. Plans that integrate internal resource with external requirements.
6. Limited time, money and the resources.
7. The statusquo approach of employees.
8. Fear of incomopetency of senior level managers to take up strategic steps.
9. Diverse work-force with competitive skill sets
10. Fear towards victimisation in the wake of failtures.
11. Improper strategic assignments and leadership conflict over authority.
12. Ramifications for power relations.
13. Vulnerability to legislative changes.
14. Resistance that comes through the legitimate labour institutions,
15. Presence of an active labour union.
16. Rapid structural changes.
17. Economic and market pressures influenced the adoption of strategic
HRM.
18. More diverse, outward looking approach.

Q. 17 What is the concept of performance appraisal ?

Performance appraisal
Ans. Performance appraisal is defined by Wayne Cascio as “the systematic
description of
employee’s job relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months or once in a
year. The basic
idea of the appraisal is to evaluate the performance of the employee, giving him
a feed back.
Identify areas where improvement is required so that training can be provided.
Give incentives
and bonus to encourage employees etc.

Q. 18 Discuss the Traditional methods of performance appraisal in detail?

Ans. Performance appraisal is defined by Wayne Cascio as “the systematic
description of
employee’s job relevant, strength, weakness.
Companies use different methods of appraisal for identifying and appraising the
skills and
qualities of their employees. The different methods used can be explained with
the help of
following diagram.

Methods of performance appraisal

Traditional method Modern method
1. Check list method
2. Confidential report
3. Critical incident method
4. Ranking method
5. Graphic rating scale
6. Narrated essay
7. 360* Appraisal

Traditional method
Traditional method of performance appraisal has been used by companies for
very long time.A common feature of these methods is they are all relatively
simple and involve appraisal by one senior.
1. Check list method :-
In this method the senior, the boss is given a list of questions about the junior.
These questions are followed by check boxes. The superior has to put a tick mark
in any one of the boxes
This method can be explained with the following eg.

Does the employee have leadership qualities?

YN

Is the employee capable of group efforts?

YN
As seen in the above eg. A questioner containing questions is given to the senior,
This method is an extremely simple method and does not involve a lot of time.
The same set of questioners can be given foe every employee so that there is
uniformity in selecting employee.

2. Confidential report
This method is very popular in government departments to appraise TAS officers
and other high level officials. In this method the senior or the boss writes a report
about the junior giving him details about the performance about the employee.
The +ve and — ve traits, responsibilities handled on the job and
recommendations for future incentives or promotions. The report is kept highly
confidential and access to the report is limited.

3. Critical incident method :-

In this method critical or important incidents which have taken place on this job
are noted down
along with employee’s behavior and reaction in all these situations. Both +ve and
—ve incidents are mentioned. This is followed by an analysis of the person, his
abilities and talent, recommendations for the future incentives and promotions.

4. Ranking method
In this method ranks are given to employees based on their performance. There
are different methods of ranking employees.
Simple ranking method
Alternate ranking method
Paired comparison method

i. Simple ranking method :-

Simple ranking method refers to ranks in serial order from the best employee eg.
If we have to
rank 10 best employees we start with the first best employee and give him the
first rank this is
followed by the 2nd best and so on until all 10 have been given ranks.

ii. Alternate ranking:-

In this method the serial alternates between the best and the worst employee. The
best employee
is given rank 1 and then we move to the worst employee and give him rank 10
again to 2nd best employee and give him rank 2 and so on.

iii. Paired comparison :-

In this method each and every person is the group, department or team is
compared with every
other person in the team/group/department. The comparison is made on certain
criteria and
finally ranks are given. This method is superior because it compares each and
every person on
certain qualities and provides a ranking on that basis.

5. Graphic rating scale:-

Graphic rating scale refers to using specific factors to appraise people. The entire
appraisal is
presented in the form of a chart. The chart contains certain columns which
indicate qualities
which are being appraised and other columns which specify the rank to be given.
Eg. Employee A
Quality of work Quantity of work Intelligence
Excellent
Very good
good
satisfactory
poor

The senior has to put a tick mark for a particular quality along with the ranking.
Such charts are prepared for every employee. According to the department in
which they work. Sometimes the qualities which are judged may change
depending upon the department.
6. Narrated essay :-
In this method the senior or the boss is supposed to write a narrative essay
describing the
qualities of his junior. He may describe the employees strength and weakness,
analytical abilities etc. the narrative essay ends with a recommendation for future
promotion or for future incentives.

Q. 19 What are various Modern methods of performance appraisal?

Ans. Modern methods of appraisal are being increasingly used by companies.
Now days one of the striving feature that appraisal involves is, the opinion of
many people about the employee and in some cases psychological test are used
to analyze the ability of employee. These methods are as follows

1. Role analysis :-
In this method of appraisal the person who is being apprised is called the focal
point and the members of his group who are appraising him are called role set
members. These role set members identify key result areas (KRA 2 marks) (areas
where you want improvement are called KRA) which have to be achieved by the
employee. The KRA and their improvement will determine the amount of
incentives and benefits which the employee will receive in future. The appraisal
depends upon what role set members have to say about the
employee.
2. Assessment centers :-
Assessment centers (AC) are places where the employee's are assessed on certain
qualities talents and skills which they possess. This method is used for selection
as well as for appraisal. The people who attend assessment centers are given
management games, psychological test, puzzles, questioners about different
management related situations etc. based on their performance in these test an
games appraisal is done.

3. Management by objective :
This method was given by Petter Druckard in 1974. It was intended to be a
method of group decision making. It can be use for performance appraisal also.
In this method all members of the department starting from the lowest level
employee to the highest level employee together discuss, fix target goals to be
achieved, plan for achieving these goals and work together to achieve them. The
seniors in the department get an opportunity to observe their junior- group efforts,
communication skills, knowledge levels, interest levels etc. based on this
appraisal is done.

4. Behavioral anchored rating scale :-

In this method the appraisal is done to test the attitude of the employee towards
his job. Normally people with +ve approach or attitude view and perform their
job differently as compared to people with a—ve approach.

5. Psychological testing :-
In this method clinically approved psychological test are conducted to identify
and appraise the employee. A feedback is given to the employee and areas of
improvement are identified.

6. Human resource audit/accounting :-

In this method the expenditure on the employee is compared with the income
received due to the efforts of the employee. A comparison is made to find out the
utility of the employee to the organization. The appraisal informs the employee
about his contribution to the company and
what is expected in future.
7. 360* appraisal :-
In this method of appraisal and all round approach is adopted. Feedback about
the employee is taken from the employee himself, his superiors, his juniors, his
colleagues, customers he deals with, financial institutions and other people he
deals with etc. Based on all these observations an appraisal is made and feedback
is given. This is one of the most popular methods.

Process of performance appraisal

Performance appraisal is defined by Wayne Cascio as “the systematic description
of employee’s Job relevant, strength, weakness. Process of performance appraisal
followed by different companies is different. A general procedure is explained
below with the help of a diagram.

Q. 20 Discuss the process of performance appraisal?

Ans The process consists various steps:
Setting performance standards
Communicating standards set to the employee
Measuring performance
Comparing performance with standard
Discussing result
Collective action
Implementation and review
1. Setting performance standards :-
In this very first step in performance appraisal the HR department decides
the standards of performance i.e. they decide what exactly is expected
from the employee for each and every job. Sometimes certain marking
scheme may be adopted eg. A score 90/100 = excellent performance, a
score os 80/100 = good. And so on.

2. Communication standard set to the employee :-

Standards of performance appraisal decided in 1st step are now
conveyed to the employee so that the employee will know what is
expected from him and will be able to improve his performance.

3 Measuring performance :-
The performance of the employee is now measure by the HR department,
different
 methods can be used to measure performance i.e. traditional and modern
method. The method used depends upon the company’s convenience.

4. Comparing performance with standard :-

The performance of the employee is now judged against the standard. To
understand the score achieved by him. Accordingly we come to know
which category of performance the employee falls into i.e. excellent, very
good, good, satisfactory etc.

5. Discussing result :-
The results obtained by the employee after performance appraisal are
informed or conveyed to him by the HR department. A feedback is given
to the employee asking him to change certain aspects of his performance
and improve them.

6. Collective action :-
The employee is given a chance or opportunity to improve himself in the
areas specified by the HR department. The HR department constantly
receives or keeps a check on the employee’s performance and notes down
improvements in performance.

7. Implementation and review :-

The performance appraisal policy is to be implemented on a regular basis.
A review must be done from time to time to check whether any change
in policy is required. Necessary changes are made from time to time.

Q. 21 Narrate various limitations of performance appraisal system?

Ans. Performance appraisal is defined by Wayne Cascio as “the
systematic description of employee’s job relevant, strength, weakness.
The following are the limitations of performance appraisal

1. Halo effect :
In this case the superior appraises the person on certain positive qualities
only. The negative traits are not considered. Such an appraisal will no
give a true picture about the employee. And in some cases employees
who do not deserve promotions may get it.
2. Horn effect :-
In this case only the negative qualities of the employee are considered
and based on this appraisal is done. This again will not help the
organization because such appraisal may not present a true picture about
the employee.

3. Central tendency :-
In this case the superior gives an appraisal by giving central values. This
prevents a really talented employee from getting promotions he deserves
and some employees who do not deserve any thing may get promotion.

4. Leniency and strictness :-

Some bosses are lenient in grading their employees while some are very
strict. Employee who really deserves promotions may loose the
opportunity due to strict bosses while those who may not deserve may
get benefits due to lenient boss.

5. Spill over effect :-

In this case the employee is judged +vely or —vely by the boss depending
upon the past performance. Therefore although the employee may have
improved performance, he may still not get the benefit.

6. Fear of loosing subordinates and spoiling relations

Many bosses do not wish to spoil their relations with their subordinates.
Therefore when they appraise the employee they may end up giving
higher grades which are not required. This is an injustice to really
deserving employees.

7. Goodwill and techniques to be used :~

Sometimes a very strict appraisal may affect the goodwill between senior
and junior. Similarly when different departments in the same company
use different methods of appraisal it becomes, very difficult to compare
employees.

8. Paper work and personal biased :-

Appraisal involves a lot of paper work. Due to this the work load of HR
department increases. Personal bias and prejudice result in bosses
favoring certain people and not favoring others.
Q. 22 What is the importance of performance appraisal system?

Ans. Performance appraisal is defined by Wayne Cascio as “the

systematic description employee’s job relevant, strength, weakness.

1. Feedback to the employee

Performance appraisal is beneficial because it provides feedback to the
employee about his performance. It identifies the areas for improvement
so that employee can improve itself.

2. Training and development

Due to performance appraisal itis easy to understand what type of training
is required for each employee to improve himself accordingly training
programs can be arranged.

3 Helps to decide promotion :-

Performance appraisal provides a report about the employee. Based on
this report future promotion are decided, incentives, salary increase is
decided.

4 Validation of selection process :-

Through performance appraisal the HR department can identify whether
any changes are required in the selection process of the company
normally a sound selection process results in better performance and
positive appraisal.

5 Deciding transfers and lay off of the worker :-

Employee with specific talent can be transferred to places where their
talents are utilized properly; similarly decisions regarding termination of
employees depend upon performance appraisal reports.

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