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Human resource management (HRM):- Human resource management (HRM) is the practice of

recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply
as human resources (HR). A company or organization's HR department is usually responsible for
creating, putting into effect and overseeing policies governing workers and the relationship of the
organization with its employees. The term human resources was first used in the early 1900s, and then
more widely in the 1960s, to describe the people who work for the organization, in aggregate. Human
Resource Management is a process, which consists of four main activities, namely, acquisition,
evelopment, motivation, as well as maintenance of human resources. 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
Objectives of Human Resource Management
The objectives of HRM can be broken down into four categories:
1. Societal objectives: Measures put into place that responds to the ethical and social needs or challenges
of the company and its employees. This includes legal issues such as equal opportunity and equal pay
for equal work.
2. Organizational objectives: Actions taken that help to ensure the efficiency of the organization. This
includes providing training, hiring the right amount of employees for a given task or maintaining high
employee retention rates.
3. Functional objectives: Guidelines used to keep the HR functioning properly within the organization
as a whole. This includes making sure that all of HR’s resources are being allocated to its full potential.
4. Personal objectives: Resources used to support the personal goals of each employee. This includes
offering the opportunity for education or career development as well as maintaining employee
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 :
1. To ensure effective utilization of human resources, all other organizational resources will be
efficiently utilized by the human resources.
2. 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
3. To generate maximum development of human resources within the organization by offering
opportunities for advancement to employees through training and education.
4. To ensure respect for human beings by providing various services and welfare facilities to the
5. 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.
6. To identify and satisfy the needs of individuals by offering various monetary and
non-monetary rewards.
Human Resource Management Functions:-
The main functions of human r esource 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
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
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.
E-HRM: - e-HRM is the (planning, implementation and) application of information technology for both
networking and supporting at least two individual or collective actors in their shared performing of HR
activities. E-HRM is the integration of all HR systems and activities using the web based technologies.
Simply, when HR uses the Internet or related technologies to support their activities, procedures,
processes, then it becomes an e-HRM.
Job Analysis:- Job Analysis is a process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job. Job Analysis is a process where
judgments are made about data collected on a job.
E-Recruitment :-The E-Recruitment, also called as Online Recruitment, is the process of hiring the
potential candidates for the vacant job positions, using the electronic resources, particularly the internet.
Annual Confidential Reports:- Annual Confidential Reports of the government servants are written
with a view to adjudge their performance every year in the areas of their work, conduct, character and
IHRM:- HRM can be defined as set of activities aimed managing organizational human resources at
international level to achieve organizational and achieve competitive advantage over at national and
international level.
Domestic HRM:- Domestic HRM is the process of procuring, allocating and effectively utilizing the
human resources in local countries. By the name itself, you should already have an idea that IHRMs work
internationally or beyond national borders, whereas its domestic counterpart works within the set, local,
national borders.
Expatriate:- A person who has citizenship in at least one country, but who is living in another country.
Most expatriates only stay in the foreign country for a certain period of time, and plan to return to their
home country eventually, although there are some who never return to their country of citizenship.
TQM :- TQM stands for total quality management. A core definition of total quality management (TQM)
describes a management approach to long-term success through customer satisfaction. In a TQM effort,
all members of an organization participate in improving processes, products, services, and the culture in
which they work.
Evolution of HRM:-

In Western countries Human Resource Management (HRM) had its primitive beginning in 1930s. Not
much thought was given on this subject in particular and no written records or document existed on this
subject even as a philosophy in the Western ancient literature. The philosophy of managing human being,
as a concept was found developed in ancient literatures in general in Indian philosophy in particular. In
the ancient times, the labourers were looked down upon. It was considered menial to work for a
livelihood. But gradually the factory system came into existence and later industrialisation followed by
This led to a greater emphasis on’ labour management’. Earlier it was known as ‘Personnel Management’,
then ‘Human Resource Management’ and in recent times as ‘ Human Resource Development’. In
‘Personnel Management’, the employees were treated as mere labourers who required constant
supervision. The human element was not given due importance. Later Elton Mayo’s “Hawathorne
Experiments’ gave rise to “Human Resource Management’. Here the ‘Human element’ was emphasized.
The workers were treated not merely as “cogs in the machine” but as human beings, as individuals and as
a social being. In HRM, the main aim was to encourage and motivate the employees to identify their
capabilities and use them efficiently.
Recruitment:- The process of finding and hiring the best-qualified candidate (from within or outside of
an organization) for a job opening, in a timely and cost effective manner. The recruitment process
includes analyzing the requirements of a job, attracting employees to that job, screening and selecting
applicants, hiring, and integrating the new employee to the organization.
Industrial Relations:- Industrial relations refers to the relationship between employers and employees
in industry, and the political decisions and laws that affect it.
Host Country:-A nation in which representatives or organizations of another state arepresent because of
government invitation and/or international agreement.
Career Development:- Career development is the series of activities or the on-going/lifelong process of
developing one’s career. Career development usually refers to managing one’s career in an intra-
organizational or inter-organizational scenario. It involves training on new skills, moving to higher job
responsibilities, making a career change within the same organization, moving to a different organization
or starting one’s own business.
Types of Career Development Programmes:- In an organization, there are different types of
development programmes to enrich different skills of human resource. These include organization
development, employee development, management development, and career development. Organizational
development programmes are planned and managed from the top, so as to bring about planned
organizational changes and for increasing the organizational effectiveness. Management development is
concerned with upgrading the manager's skills, knowledge, and ability of the employees to enable them to
accomplish additional process of guiding the movement of human resources through different hierarchical
Reengineering: It is define as the Fundamental rethinking and radical redesign of business process to
achieve dramatic improvements in critical measures of performance such as cost, service, and speed.
Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership
of processes.
Work-Life Balance:- Work-life balance refers to the level of prioritisation between personal and
professional activities in an individual’s life and the level to which activities related to their job are
present in the home. The ideal work-life balance is open to discussion. Freethinker Paul Krassner said that
anthropologists often define happiness as having little or no differentiation between an individual’s
professional and personal lives.Work-life balance is a topical issue due to the increased amount of
technology that removes the importance of physical location in defining the work-life balance. Previously
it was difficult or impossible to take work home and so there was a clear line between professional and
Labour Unions or Trade Unions:- Labour unions or trade unions are organizations formed by workers
from related fields that work for the common interest of its members. They help workers in issues like
fairness of pay, good working environment, hours of work and benefits. They represent a cluster of
workers and provide a link between the management and workers.
Performance Appraisal System:- A performance appraisal, also referred to as a performance
review, performance evaluation, (career) development discussion,[ or employee appraisal is a method by
which the job performance of an employee is documented and evaluated. Performance appraisals are a
part of career development and consist of regular reviews of employee performance
within organizations. A performance appraisal is a systematic, general and periodic process that assesses
an individual employee's job performance and productivity in relation to certain pre-established criteria
and organizational objectives. It helps the managers place the right employees for the right jobs,
depending on their skills. Often, employees are often curious to know about their performance details and
compare it with their fellow colleagues and how they can improve upon it.
Skill Gap Or Training Gap:- A skills gap that threatens the sustainability of businesses around the
world. And while a big part of the skills gap is a shortage of people skilled in the STEM (science,
technology, education, and math) industries, there also is a gap in soft skills such as communication and
advanced leadership skills.
Internal sources of recruitment :- Internal sources of recruitment consist of employees who are already
on the payroll of a firm. It also includes former employees who have returned to work for the
organization. Recruitment from internal sources is done to fill up vacancies through promotion, re-hiring
and transferring employees within the company.
External Sources of Recruitment :-The External Sources of Recruitment mean hiring people from
outside the organization. In other words, seeking applicants from those who are external to the
organization. There are several methods for external recruiting. The firm must carefully analyze the
vacant positions and then use the method which best fulfills the requirement.
Employee Onboarding:- Onboarding is the process of integrating a new employee into the company and
giving them the tools, information, and introductions they will need to succeed in their new job.
Career planning & Its Ojective:- Career planning is the ongoing process where you: Explore your
interests and abilities; Strategically plan your career goals; and. Create your future work success by
designing learning and action plans to help you achieve your goals.
The major objectives of career planning are as follows:
 To identify positive characteristics of the employees.
 To develop awareness of each employee's uniqueness.
 To respect feelings of other employees.
 To attract talented employees to the organization.
 To train employees towards team-building skills.
On-the-job training methods are as follows:-
1. Job rotation: This training method involves movement of trainee from one job to another gain
knowledge and experience from different job assignments. This method helps the trainee understand the
problems of other employees.
2. Coaching: Under this method, the trainee is placed under a particular supervisor who functions as a
coach in training and provides feedback to the trainee. Sometimes the trainee may not get an opportunity
to express his ideas.
3. Job instructions: Also known as step-by-step training in which the trainer explains the way of doing
the jobs to the trainee and in case of mistakes, corrects the trainee.
4. Committee assignments: A group of trainees are asked to solve a given organizational problem by
discussing the problem. This helps to improve team work.
5. Internship training: Under this method, instructions through theoretical and practical aspects are
provided to the trainees. Usually, students from the engineering and commerce colleges receive this type
of training for a small stipend.
Employee Stock Ownership Plan:- An employee stock ownership plan (ESOP) gives workers
ownership interest in the company, at times with upfront costs. ESOPs are qualified in the sense that the
sponsoring company, the selling shareholder and participants receive various tax benefits. Companies
often use ESOPs as a corporate-finance strategy and to align the interests of their employees with those of
their shareholders.
The following HRD sub-systems are generally practiced in Indian organizations:
 HRD Departments. HRD has been evolved as a separate function in early 90's. ...
 Performance Appraisal.
 Potential Appraisal.
 Feedback and Counselling.
 Training.
 Career Planning And Development.
 Rewards.
 Organization Development.
Forms of Industrial Disputes:
Strikes: Strike is the most important form of industrial disputes. A strike is a spontaneous and concerted
withdrawal of labour from production. The Industrial Disputes Act, 1947 defines a strike as “suspension
or cessation of work by a group of persons employed in any industry, acting in combination or a
concerted refusal or a refusal under a common understanding of any number of persons who are or have
been so employed to continue to work or accept employment”.
Lock-Outs: Lock-out is the counter-part of strikes. While a ‘strike’ is an organised or concerted
withdrawal of the supply of labour, ‘lock-out’ is withholding demand for it. Lock-out is the weapon
available to the employer to shut-down the place of work till the workers agree to resume work on the
conditions laid down by the employer. The Industrial Disputes Act, 1947 defined lock-out as “the
temporary shutting down or closing of a place of business by the employer”.
Gherao: Gherao means to surround. It is a physical blockade of managers by encirclement aimed at
preventing the egress and ingress from and to a particular office or place. This can happen outside the
organisational premises too. The managers / persons who are gheraoed are not allowed to move for a long
Job Enrichment:- Job enrichment is a common motivational technique used by organizations to give an
employee greater satisfaction in his work. It means giving an employee additional responsibilities
previously reserved for his manager or other higher-ranking positions.
Job enlargement:- Job enlargement is a job design technique wherein there is an increase in the number
of tasks associated with a certain job. In other words, it means increasing the scope of one’s duties and
responsibilities. The increase in scope is quantitative in nature and not qualitative and at the same level.
Induction:- Induction is the process of introducing a new employee to the company culture and processes
with the aim of bringing them up to speed as quickly as possible as well as making them feel socially
comfortable and aware of their professional responsibilities.
Training:- Training is a process in which the trainees get an opportunity to learn the key skills which are
required to do the job. Learning with earning is known as training. It helps the employees to understand
the complete job requirements.
Types of Industrial Disputes:
The ILO’ has classified the industrial disputes into two main types.
1. Interest Disputes
2. Grievance or Right Disputes.
1. Interest Disputes: These disputes are also called ‘economic disputes’. Such types of disputes arise out
of terms and conditions of employment either out of the claims made by the employees or offers given by
the employers. Such demands or offers are generally made with a view to arrive at a collective agreement.
Examples of interest disputes are lay-offs, claims for wages and bonus, job security, fringe benefits, etc.
2. Grievance or Right Disputes: As the name itself suggests, grievance or right disputes arise out of
application or interpretation of existing agreements or contracts between the employees and the manage-
ment. They relate either to individual worker or a group of workers in the same group.
Development:-The training for the top level employees is considered as development, also known as
management or executive development. It is an on-going systematic procedure in which managerial staff
learns to enhance their conceptual, theoretical knowledge. It helps the individual to bring efficiency and
effectiveness in their work performances.
Key Differences Between Training and Development
The major differences between training and development are as under:
1. Training is a learning process for new employees in which they get to know about the key skills
required for the job. Development is the training process for the existing employees for their all
round development.
2. Training is a short-term process i.e. 3 to 6 months, but development is a continuous process, and
so it is for the long term.
3. Training focuses on developing skill and knowledge for the current job. Unlike, the development
which focuses on the building knowledge, understanding and competencies for overcoming with
future challenges.
4. Training has a limited scope; it is specific job oriented. On the other hand, development is career
oriented and hence its scope is comparatively wider than training.
5. In training, the trainees get a trainer who instructs them at the time of training. In contrast to
development, in which the manager self-directs himself for the future assignments.
6. Many individuals collectively attend the training program. Development is a self-assessment
procedure, and hence, one person himself is responsible for one’s development.
Both recruitment and selection are the two phases of the employment process. The differences between
the two are:
1. Recruitment is the process of searching the candidates for employment and stimulating them to apply
for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are
screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best
candidates for the organization, by attracting more and more employees to apply in the organization
WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various
positions in the organization.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS
selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is
concerned with selecting the most suitable candidate through various interviews and tests.
5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract
of service between the employer and the selected employee.
Strategic HRM:- Strategic HRM refers to HR that is co-ordinated and consistent with the overall
business objectives in order to improve business performance. ... Translating the organisation's objectives
and values into tangible initiatives that can be driven by the HR department is a complex problem
underlying strategic HRM.
Personnel Management :-Personnel Management is a part of management that deals with the
recruitment, hiring, staffing, development, and compensation of the workforce and their relation with the
organization to achieve the organizational objectives.
Human Resource Management :- Human Resource Management is that specialized and organized
branch of management which is concerned with the acquisition, maintenance, development, utilization
and coordination of people at work, in such a manner that they will give their best to the enterprise.
Key Differences Between Personnel Management and Human Resource Management
The following are the major differences between Personnel Management and Human Resource
1. The part of management that deals with the workforce within the enterprise is known as
Personnel Management. The branch of management, which focuses on the best possible use of
the enterprise’s manpower is known as Human Resource Management.
2. Personnel Management treats workers as tools or machines whereas Human Resource
Management treats it as an important asset of the organization.
3. Human Resource Management is the advanced version of Personnel Management.
4. Decision Making is slow in Personnel Management, but the same is comparatively fast in Human
Resource Management.
5. In Personnel Management there is a piecemeal distribution of initiatives. However, integrated
distribution of initiatives is there in Human Resource Management.
6. In Personnel Management, the basis of job design is the division of work while, in the case of
Human Resource Management, employees are divided into groups or teams for performing any
7. In PM, the negotiations are based on collective bargaining with the union leader. Conversely, in
HRM, there is no need for collective bargaining as individual contracts exist with each employee.
8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is performance
9. Personnel management primarily focuses on ordinary activities, such as employee hiring,
remunerating, training, and harmony. On the contrary, human resource management focuses on
treating employees as valued assets, which are to be valued, used and preserved.
Job Design:- Job Design is a psychological theory of motivation that is defined as the systematic and
purposeful allocation of task to groups and individuals within an organization. The five core
characteristics of job design are skill variety, task identity, task significance, autonomy, and job feedback.
Job Evaluation:- A job evaluation is a systematic way of determining the value/worth of a job in
relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess
their relative worth for the purpose of establishing a rational pay structure.
Compensation :- Compensation is the total cash and non-cash payments that you give to an employee in
exchange for the work they do for your business. It is typically one of the biggest expenses for businesses
with employees. Compensation is more than an employee’s regular paid wages. It also includes many
other types of wages and benefits.
Types of compensation include:
 Base pay (hourly or salary wages).
 Sales commission.
 Overtime wages.
 Tip income.
 Bonus pay
 Recognition or merit pay.
 Benefits (insurances, standard vacation policy, and retirement).
 Stock options.
 Other non-cash benefits.
Cross Functional Training :- Cross Functional Training is typically defined as an exercise regimen that
uses several modes of training to develop a specific component of fitness.
Behaviorally Anchored Rating Scales (BARS) :- Behaviorally Anchored Rating Scales (BARS) are
designed to bring the benefits of both qualitative and quantitative data to the employee appraisal
process. BARS compare an individual's performance against specific examples of behavior that are
anchored to numerical ratings.
Collective Bargaining:- Collective bargaining is a process of negotiationbetween employers and a group
of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other
aspects of workers' compensation and rights for workers.
Performance Counseling :- Performance Counseling is a very important activity that helps employees to
know themselves better. Performance Counseling refers to the help provided by a manager to his
subordinates in objectively analyzing their performance.
Employees Outsourcing:- Outsourcing is a business practice in which a company hires another company
or an individual to perform tasks, handle operations or provide services that are either usually executed or
had previously been done by the company's own employees.
Placement :- Placement is the process of assigning a specific job to each one of the selected
candidates. Employee placement is the process of assigning a new employee to a position within his or
her sphere of authority where the employee will have a reasonable chance for success.
Job Description :- Job description is an informative documentation of the scope, duties,
tasks, responsibilities and working conditions related to the job listing in the organization through the
process of job analysis. Job Description also details the skills and qualifications that an individual
applying for the job needs to possess.
Mergers and acquisitions (M&A):- Mergers and acquisitions (M&A) is a general term used to describe
the consolidation of companies or assets through various types of financial transactions, including
mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. The
term M&A also refers to the desks at financial institutions that deal in such activity.
Incentives :-Incentives refer to rewards given to employees in monetary on non-monetary form in order
to motivate them to work more efficiently. It is also known as payment by results (PBR) as they are paid
in lieu of outstanding performance by an employee.
Type Of Employment Interview
One-on-One Interview:-This type of interview is conducted between a hiring manager (Or any other
company representative) and the candidate. The questions are centered on the candidate’s job history,
knowledge, skills, and abilities, as well as the key attributes that the organization finds suitable.
Panel Interview:-Two or more company representatives interview a job candidate. Each person on the
panel has a function, and the panelists are trying to learn more about the job candidate and to determine
his/her personal suitability for the job.
Group Interview:-Panel interviews are sometimes also referred to as group interviews, but a group
interview can also mean that a group of candidates is interviewed at the same time.
Phone Interview:-The interview is conducted over the phone, and most phone interviews are used as a
screening mechanism to determine which job candidates have the basic requirement to warrant a second
Behavioral Interview:-This type of interview is meant to discover how the candidate will respond in
specific work-related situations. Usually behavioral interviews are not standalone interviews, instead
behavioral-style questions are integrated into other types of interviews.
Competency-Based Interview:-This type of interview requires that job candidates give concrete
examples of times in which they demonstrated specific skills, abilities and attitudes. This type of
interview is sometimes included in another interview format.
Case Interview:-Management consultancies often request candidates to work on a case study to
demonstrate analytical and problem solving skills.
Lunch/Dinner Interview:-The interview takes place over a meal in a more casual setting. Despite this,
candidates are expected to behave in a professional manner, and it is first and foremost about the
interview and not the meal. Having said that, take the time to research proper meal etiquette and which
cutlery to use for what. Additionally, look to the interviewer for clues about appropriate behavior. Stay
away from foods that are messy to eat – no wings or nachos please.
Open Job Interview
With this type of interview, companies accept job applications during a block of time when all the
applicants can attend, and interviews take place on a first come first served basis.
All of the various types of employment interviews require that job candidates prepare prior to the
interview. The key to securing a new job is being organized and prepared.
Selection Process
1.The Shortlist :- The first step in the interview process is to get shortlisted for interview. This may
involve you sending a tailored CV and cover letter in response to an advertised position or going through
an online application process. In some cases you may be headhunted or called to interview on the basis of
a strong referral.
2.The Screening Interview:-Many companies now have screening interview to assess whether you
possess the qualifications and general aptitude to do the job. This may be carried out over the phone or in
person, usually with a recruitment agency or an in-house recruiter. The main function of the screening
interview is to narrow down the number of candidates to be called for First round Interviews.
3.The First Round Interview:-This is often the first time that you will meet your potential employer for
the first time. Their objective is to assess whether you possess the skills, aptitude and experience to do the
job. They will also attempt to ascertain whether you can do the job, are willing to do the job and how you
will fit in with the organisation.
4.The Second Round Interview:-The second round interview is normally where you get to meet
different managers in the organisation. The most senior hirer from the first round will often be attendance
in the second round to offer continuity to the process. Your interviewer will normally attempt to delve
deeper into particular interesting items of interest from the First Round Interview. The key to the second
round interview is not top fear repetition and to re-iterate and re-tell compelling stories emphasising your’
Unique Selling Points.
5.The Third Round Interview:-Some companies may call you back for a third round interview in order
to to be as close to 100% sure as possible that they are making the correct hiring decision. Again the
personalities may change for the third round and you may even be introduced to co-workers for the first
time. By the third round you will be expected to possess a lot more knowledge about the company than
displayed in the first and second rounds. It is important to showcase this extensive research to prove to the
interview panel that you have done your homework. Some companies may go to fourth and fifth round
interviews and beyond.
6.The Job Offer and Background Check:- The final phase in the process is usually a job offer
contingent on your referees giving you a good reference and perhaps you providing scripts/copies of your
relevant qualifications.
For some positions and companies employers may insist on a background check to ensure you are who
you say on your CV or that you have no criminal convictions. Every company is different and the
interview process varies from company to company. Some companies will make a decision based on the
first round whilst others will make you jump through hoops in order to ensure that they are close to 100%
sure, as possible, that they have selected the right candidate. Other companies may have video interviews
or presentations as part of the process whilst many larger companies may insist that you complete aptitude
tests. Treat these processes as fluid depending on eth company and position you are targeting, they may
vary. When setting out on the journey you should ask what the interview process will entail to ensure you
are prepared for the long haul, where necessary.

Yes, small companies should develop a pay plan. Employee pay has an impact on the following: the
type of employees that the company attracts, the growth of the company, future success of the company,
and the company’s image. Also pay can determine how long an employee will be able to work for you. A
pay plan is needed within all companies and should consist of a payment that is ideal for its employees or
holds the potential of allowing their employees to reach a comfort zone.Small business owners need to
plan every aspect of their business for it to be successful. Employee pay structure is important to a small
business, and the growth, revenue maintenance and future success of your company relies on strong pay
planning. The way in which you compensate employees can affect your organization's image and ability
to attract top talent.
Job Rotation:- Job rotation is a strategy where employees rotate betweenjobs at the same business.
Employees take on new tasks at a different job for a period of time before rotating back to their original
position. With a job rotation system, employees gain experience and skills by taking on new
Human Resource Planning:
Nature of Human Resource Planning:
 Human Resource Planning deals with the manpower needs of an organization.
 It helps in discovering the unused talent presently available with the organization.
 It also tells about the present inventory of manpower of the organization.
 It projects the future manpower needs of the organization. It deals with the procurement, utilization,
improvement and preservation of manpower.
Objectives of Human Resource Planning:
 To make the promotion and transfers policies.
 To ensure optimum use of available manpower.
 To provide the necessary manpower when required.
 To assess the future manpower requirements to achieve the organization objectives.
 To make a balance between the distribution and allocation of manpower.
Scope of Human Resource Planning
 It keeps the record of current manpower with the organization.
 Assessing the future requirements of manpower for organization objectives.
 To make the manpower recruitment plans.
 To phase out the surplus employees.
 To make a layout of training programme for different categories of employees.
Importance of Human Resource Planning
 It gives the company the right kind of workforce at the right time frame and in right figures.
 In striking a balance between demand-for and supply-of resources, HRP helps in the optimum usage of
resources and also in reducing the labor cost.
 Cautiously forecasting the future helps to supervise manpower in a better way, thus pitfalls can be avoided.
 It helps the organization to develop a succession plan for all its employees. In this way, it creates a way for
internal promotions.
 It compels the organization to evaluate the weaknesses and strengths of personnel thereby making the
management to take remedial measures.
 The organization as a whole is benefited when it comes to increase in productivity, profit, skills, etc., thus
giving an edge over its competitors.
Performance Management System is the systematic approach to measure theperformance of employees. It is a
process through which the organization aligns their mission, goals and objectives with available resources (e.g.
Manpower, material etc), systems and set the priorities.
Factors Affecting Performance Management Systems:
For performance management system to be implemented, there are a number of conditions that must exist prior to its
execution. These factors include:
 Ability of manager to mobilize the organization.
 Effectively communicating the roles, duties and responsibilities of all such individuals who are the
participants in the process of bringing about change.
 Transparency and Simplicity
 Practicality and Participation
 Equality and Objectivity
Steps in Grievance Handling Procedure:
At any stage of the grievance machinery, the dispute must be handled by some members of the management. In
grievance redressed, responsibility lies largely with the management. And, grievances should be settled promptly at
the first stage itself. The following steps will provide a measure of guidance to the manager dealing with grievances.
i. Acknowledge Dissatisfaction:Managerial/supervisory attitude to grievances is important. They should focus
attention on grievances, not turn away from them. Ignorance is not bliss, it is the bane of industrial conflict.
Condescending attitude on the part of supervisors and managers would aggravate the problem.
ii. Define the Problem:Instead of trying to deal with a vague feeling of discontent, the problem should be defined
properly. Sometime the wrong complaint is given. By effective listening, one can make sure that a true complaint is
iii. Get the Facts:Facts should be separated from fiction. Though grievances result in hurt feelings, the effort should
be to get the facts behind the feelings. There is need for a proper record of each grievance.
iv. Analyse and Decide:Decisions on each of the grievances will have a precedent effect. While no time should be
lost in dealing with them, it is no excuse to be slip-shod about it. Grievance settlements provide opportunities for
managements to correct themselves, and thereby come closer to the employees.
v. Follow up:
Decisions taken must be followed up earnestly. They should be promptly communicated to the employee concerned.
If a decision is favourable to the employee, his immediate boss should have the privilege of communicating the