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Gyaan Capsule -1

What is HR
William Tracy, in the Human Resources Glossary, defines Human Resources as: The people that staff and operate an
organization- as contrasted with the financial and material resources of an organization. The organizational function
that deals with the people

What is HR made of?

Broadly, the HR function can be divided into:

Job Analysis and Design

Recruitment & Hiring
Training & Development
Performance Measurement & Evaluation
Compensation Design
Conflict Management & Negotiation
Industrial Relations & Labour Laws
Succession Planning

There can be better understood in terms of the sequence of events which a employee goes through in an organisation

Recruitment &

Job Analysis


Training of
New Employee

Induction and



Goal Setting



Conflict Management and Negotiation

Industrial Relations and Labour Laws

HR is linked to the organizations overall strategy and planning to compete domestically and globally.
Overall plans and objectives must be translated into the activities that cover the HR domain.

This brings us to two important concepts:

Manpower Planning (MPP) is the Quantitative estimation of the number of people required
(Demand Forecasting) and the number of people available (Supply Analysis) in an organization, in
a given time frame.

Human Resource Planning (HRP) is a process by which an organization ensures that it has the
optimum number of people, capable of effectively and efficiently completing those tasks that will
help the organization achieve its overall strategic objectives.

Prerequisites For Human Resource Planning:

1. A mission statement, which defines what business the organization is in, including why it exists,
and who its customers are.
2. Strategic goals as set by senior management to establish targets for the organization to achieve.
Based upon the organizational goals, an HR manager ensure that goals channel down through the
organization level through the employees.
This starts with understanding the job requirements and hiring suitable employees.

1. Job Analysis
Job Analysis is used to determine what knowledge, skills and abilities that are required by the organizations
human resources.
IT is a systematic exploration of the activities within a job; it defines and documents the duties, responsibilities
and accountabilities of a job.

Three elements of Job Analysis areJob Descriptions

Written statement of what job holder does, how done, under what conditions and why.

Common format: title; duties; distinguishing characteristics; environmental conditions; authority and
Used to give information to applicants, to guide new employees, and to evaluate employees.

Job Specifications
States the minimum acceptable qualifications, experience and personality traits.
Used when selecting qualified employees.
Job Evaluation
Specifies the relative value of each job in the organization.
Used to design equitable compensation program.

2. Recruitment & Selection

Once an organization identifies its human resource needs through HRP, it can begin the process of recruiting
potentially qualified applicants.
Recruiting brings together those with jobs to fill and those seeking jobs. Selection, which determines which
candidates to hire, is the next step in the staffing process.
Both recruitment and selection are the two phases of the employment process. The differences between the
two are:


Recruitment is the process of searching the

candidates for employment and stimulating them to
apply for jobs in the organization

Selection involves the series of steps by which the

candidates are screened for choosing the most
suitable persons for vacant posts

The basic purpose of recruitments is to create a

talent pool of candidates to enable the selection of
best candidates for the organisation, by attracting
more and more employees to apply in the

The basic purpose of selection process is to choose

the right candidate to fill the various positions in the

Recruitment is a positive process i.e. encouraging

more and more employees to apply

Selection is a negative process as it involves rejection

of the unsuitable candidates

It is concerned with tapping the sources of human


It is concerned with selecting the most suitable

candidate through various interviews and tests

There is no contract of recruitment established in


Selection results in a contract of service between the

employer and the selected employee

The Recruitment and Selection Process:

Decide what positions to fill, through personnel planning and forecasting

Build a pool of candidates, by recruiting internal or external candidates

Have them fill up application forms and undergo screening interviews

Use selection tools such as tests, background investigations, and physical exams

Decide who to make the final offer after interviewing the candidates

3. Induction, Orientation and Socialization

Socialization, training and development are all used to ensure that employees understand what is expected and
can be productive on their jobs.
So once you have selected a candidate in your company, you need to make sure he or she undergoes a
comprehensive induction programme which will familiarize him with the vision and culture of the company
and also explain to him what his objectives are.
Requirements of Induction:
First Tasks
Training plans
Pace of the programme
A sample Induction Programme:
Introduction: Your role and the organization structure
Personnel Information: The HR policies of the firm
The Organization: Whos who, rules and regulations, security and safety procedures, etc
Work Group: Colleagues, Social codes, culture
Position: Job description, resources, training and development
Follow up: Q & A session

The Socialization Process

1. Pre-Arrival stage: Individuals arrive with values, attitudes and expectations, which they have developed,
from previous experience and the selection process.
2. Encounter Stage: Individuals discover how well their expectations match realities within the organization.
3. Metamorphosis stage: Individuals have adapted to the organization, feel accepted and know what is
expected of them.

4. Training & Development

Employee training is a learning experience designed to achieve a relatively permanent change in an individual
that will improve the ability to perform on the job.
Employee development is futureoriented training, focusing on the personal growth of the employee

Training Approaches:i. On-the-job training is widely used and effective when the damage trainees can do is minimal.
a. Apprenticeship training puts trainees under the guidance of a master worker, typically for 25
b. Job Instruction Training (JIT) is systematic approach consisting of preparing the trainees,
presenting the instruction, having trainees try out the job, and placing trainees on the job with a
designated resource person.
ii. Off-the-job training includes a variety of techniques, such as lectures, films, demonstrations and simulation
a. Programmed instruction is an approach that puts material to be learned into highly organized,
logical sequences that require the trainee to respond.
b. Interactive videodisks allow users to make changes and selections as they interact with a
personal computer, which includes video pictures.
c. Virtual reality systems simulate actual work activities by sending messages to the brain, thereby
allowing individuals to interact with the simulated environment as if they were really there.

5. Goal Setting
Goal setting involves establishing specific, measurable, achievable, realistic and time-targeted (S.M.A.R.T ) goals.
Work on the theory of goal-setting suggests that an effective tool for making progress is to ensure that
participants in a group with a common goal are clearly aware of what is expected from them.
Goals of the employee are set in accordance with the terms of contract and the job requirement for which the
person is recruited. These are generally set in consultation with the employee and are initiated by the
supervisor, manager or the HR.
The adherence to goals forms the basis for performance measurement and appraisal.

5. Performance Management and Appraisal

A performance appraisal is a systematic and periodic process that assesses an individual employees job
performance and productivity in relation to certain pre-established criteria and organizational objectives
Performance Management process is not only that evaluates employees past performance, but also
documents the performance pattern, provides adequate scope for developing employees potentials, and
focuses on continuous performance improvement through appropriately tailored reinforcement mechanisms.

Performance Management Systems The purposes

Feedback let employees know how well they have done.

Development work with employees to improve.
Documentation to meet legal requirements.

Appraisal Methods 1. Absolute standards: In this method, employees are not compared to each other
a. Essay appraisal: Appraiser writes narrative describing employee performance & suggestions.
b. Critical incident appraisal: Based on specific behavioural anecdotes illustrating effective or
ineffective job performance.
c. Checklist appraisal: Appraiser checks off behaviours that apply to the employee.
d. Behaviourally Anchored Rating Scales (BARS): Appraiser rates employees on factors which are
defined by behavioral descriptions illustrating various points along each rating scale.
2. Relative standards: In this method employees are compared to each other.
a. Group order ranking: Employees are placed in a classification reflecting their relative
performance, such as top onfifth.
b. Individual ranking: Employees are ranked from highest to lowest.
c. Paired comparison: Each individual is compared to every other; final ranking is based on number
of times the individual is preferred member in a pair.
3. Objectives Based Method
a. Employees can be evaluated on how well they achieve specific objectives.
b. A formal approach to using objectives is Management by Objectives (MBO). It consists of four
steps: goal setting, action planning, selfcontrol and periodic reviews.

Employee Compensation
All forms of pay or rewards going to employees and arising from their employment in a particular organization. It
has two main components:
Direct Financial Payments: Pay in the form of wages, salaries, incentives, commissions, and bonuses

Indirect Financial Payments: Pay in the form of financial benefits such as insurance
Different kinds of Incentives:
Financial incentives are the rewards paid to workers whose production exceeds some predetermined
Merit Pay: Any salary increase awarded to an employee based on his or her individual performance
Recognition Based Awards: Such as Gift certificates, special events, cash rewards, merchandise, etc
Team/Group Incentive Plans: A plan in which a production standard is set for a specific work group,
and its members are paid incentives if the group exceeds the production standard
Profit sharing plans: A plan whereby employees share in the companys profits

Employee Stock Ownership Plan [ESOP]: A corporation contributes shares of its own stock to a trust in
which additional contributions are made annually. The trust distributes the stock to employees on
retirement or separation from service

HR Recruiters @ FMS
HR Consulting
The job would primarily involve consulting organizations assisting them formulate and implement HR policies
across any of the following domains:

Talent acquisition: The talent acquisition specialist or manager devises strategy and recruitment process,
as well as actual execution of the sourcing or recruiting campaign. They may be involved not only in finding
and screening candidates, but developing the corporate policy for talent bench-marking, talent assessment,
and interviewing policies. Often the talent acquisition department will also either liaise with the legal
department or retain their own legal specialists to ensure compatibility with employment law.

Merger and Acquisitions: During a merger or an acquisition, there is a clash between the cultures of the
organizations. The M&A HR specialist is expected to help align the goals and limit employee apprehension
and dissatisfaction during the times of distress.
Induction formulation and Talent management: It includes expertise in the areas of recruiting,
performance, compensation, learning and development, and succession management solutions tied to
analytics which lead to strengthening of the workforce.

Need analysis and Benchmarking: In this, the consultant compares specific measures of performance
against data on those measures in other best practices organizations. HR professionals attempting to
benchmark try to locate organizations that do certain activities very well and thus become the

Designing and conducting Employee Satisfaction Surveys: Employee satisfaction surveys help
employers measure and understand their employees' attitude, opinions, motivation, and satisfaction. As a
consultant, one is expected to design, administer and evaluate the surveys.

The various verticals in which an employee would be engaged are as follows:


Consulting Excellence
In this, the employee is expected to have an expertise in one or more of the above-mentioned areas with an
integrated perspective that is focused on designing broad solutions and strategies for clients who hire the

In this, the employee is expected to have deep content knowledge in a particular solution area or industry.
These areas could be either of those mentioned above.

Business Management
In this, the employee is responsible for the sales for a particular practice or geography.

Corporate HR
In this, Human Resources partners with the business to provide valuable people-related services to drive
sustained high performance. The team would provide services covering Talent Acquisition, Learning &
Talent Development, Employee Relations, Engagement, Performance Management, Recognition and
An example of a rotational programme would be:

Rotation 1 - Country Human Resources

Supporting a senior HR Relationship Manager, one will be exposed to a number of areas, including
performance management, reward, talent identification and development and team facilitation.

Rotation 2 - Specialist Human Resources

During this rotation, one would work in one of the organizations global product areas. These areas
focus on the strategy and governance of key Human Resources product offerings including Talent
Acquisition, Learning & Development, Performance, Reward & Benefits, Employer Brand & Culture and
Organisation Development.

Rotation 3 - Business Human Resources

During this rotation one would be assigned to any of the divisional Human Resources team to gain a
true understanding of how Human Resources supports the business to achieve its goals.


Companies which have been our traditional recruiters

Aon Hewitt
Standard Chartered
TATA Motors
Towers Watson

Eminent Alumni

Mr. Krishnan V Executive Vice President - HR, Dabur

India Ltd.
Mr. Pankaj Dhingra Vice President - HR, Zee Network
Mr. Ravee Datta Head HR, Reliance Infostreams
Ms. Nupur Kapoor Senior Talent Acquisition Manager,
Standard Chartered
Mr. Deepak Bharara Corporate Director HR, Lanco Infratech Ltd.
Ms. Jayantika Dave Vice President HR, Ingersoll Rand International (India) Ltd.
Mr. Sunil Sharma Chief Personnel Officer, Indian Railways
Mr. Anil Kalra Head HR, Larsen and Toubro Financial Services

HR Glossary

Attrition: A gradual voluntary reduction of employees (through resignation and retirement) who are not
then replaced, decreasing the size of the workforce
Base Wage Rate (or base rate): The monthly salary or hourly wage paid for a job, irrespective of
benefits, bonuses or overtime.
Benefits (benefits package): Benefits are a form of compensation paid by employers to employees over
and above the amount of pay specified as a base salary or hourly rate of pay. Benefits are a portion of a
total compensation package for employees.
Benchmarking: A technique using specific standards to make comparisons between different
organizations or different segments of the organizations, with the intent of improving a product or service.
Behaviorally anchored rating scale (BARS): An appraisal that requires raters to list important
dimensions of a particular job and collect information regarding the critical behaviors that distinguishes
between successful and unsuccessful performance. These critical behaviors are then categorized and
appointed a numerical value used as the basis for rating performance.
Change management: A deliberate approach for transitioning individuals or organizations from one state
to another in order to manage and monitor the change. Change management can be conducted on a
continuous basis, on a regular schedule (such as an annual review), or when deemed necessary on a
program-by-program basis.


Collective Bargaining: One or more unions meeting with representatives from an organization to
negotiate labor contracts.
Competitive advantage: In the context of Human Resources, competitive advantage refers to the quality
of the employees, as a competing organizations systems and processes can be copied but not its people.
All other things being equal among competing companies, it is the company with better employees that
has the competitive advantage.
Due diligence: In mergers and acquisitions, the process of carefully investigating the details of an
investment or purchase to assess risk and potential value and reward.
Employee engagement: Employee engagement, also called worker engagement, is a business
management concept. An engaged employee is one who is fully involved in, and enthusiastic about their
work, and thus will act in a way that furthers their organizations interests.
Empowerment: Giving employees the resources, skills and authority necessary to share power with
management and make decisions. Employees are then held accountable for their decisions and rewarded
if appropriate.
ERP: Short for enterprise resource planning, a business management system that integrates all facets of
the business, including manufacturing, sales, marketing, finance and human resources.
Generation I: The term used to describe children born after 1994 who are growing up in the Internet age.
Generation X: The term used to describe individuals born between 1965 and 1980.
Generation Y: The term used to describe individuals born between 1985 and the present.
Hawthorne Effect: The theory that organizations can motivate their employees as much or more by
expressing concern for problems as by actually improving their work conditions. This personal interest
results in increased performance, according to the observations of productivity researcher George Elton
Johari Window: A leadership disclosure and feedback model used primarily in self-help groups and
corporate settings as a heuristic which can be used in performance measurement and features the four
quadrants (windows) of knowing.
Key Performance Indicators (KPIs): Tasks that are central to the success of a business and show, when
measured, whether the business is advancing toward its strategic goals.
Negotiation: Bargaining between two or more parties with the goal of reaching consensus or resolving a
Nepotism: Preferential hiring of relatives and friends, even though others might be more qualified for
those positions.
Organizational Culture: The values, attitudes, beliefs and behaviors that characterize an organization. It
is the unwritten workplace ethos that is picked up by new employees.
Talent Management: Also called Human Capital Management, the process of recruiting, managing,
assessing, developing and maintaining employees.
Voluntary Benefits: Benefits that are paid for by the employee through payroll deductions. The employer
pays for administration. Examples of these benefits include life insurance, dental, vision, disability income,
auto insurance, long-term care coverage, medical supplement plans and homeowners insurance.
Work-life Balance: The attempt to balance work and personal life in order to have a better quality of life.
A person with a balanced life is an asset to his or her business, as he or she experiences greater fulfillment
at work and at home.