HRM:

All planned and controlled activities of an organization to build and maintain the relation
between employees and the organization in order to meet both business objectives and employee
expectations

HRM Process:

HRM Activities:

1: Job analysis defines job’s specific tasks, responsibilities and identifies required knowledge,
skills and abilities.

2. Human resource planning or employment planning: process by which an organization

ensures that it has the right number of qualified people in the right jobs at the right time.

3. Employee recruitment: process of seeking and attracting a pool of applicants for job.

4. Employee selection involves choosing best from the available

5. Performance appraisal: determining how well employees are doing their job..

6. Training and development activities help employees learn how to perform their jobs and to
improve their performance.

7. Career planning and development activities benefit both employees - by identifying

employee career goals- and the organization- by ensuring that qualified employees are available
when needed.
8. Employee motivation: Factors that cause employees to behave in a certain way while doing
their work.

9. Compensation refers to the cash rewards, bonus, incentive payments and allowances which
employees receive for working in an organization.

10. Benefits are sometimes referred to as indirect or non-cash compensation.

11. Industrial relations: concerned with the relationship between an organization and its
employees.

12. Effective health and safety programs help guarantee the physical and mental wellbeing of
employees.

13. Management of diversity: concerned with how successfully integrating cultural population
into the work force.

Key Objectives of HRM:

1. Staffing objectives: Ensuring that the business is appropriately staffed and able to draw on
human resources it needs.

2. Performance objectives: It includes Employee involvement initiatives and performance of

staff.

3. Change management objectives: Recruitment and/or development of those with required

leadership skills to drive change process.

4. Administration objectives: Facilitate smooth running of the organization

Future Challenges to HRM:

Innovation, Demography, Globalization, Web 2.0, Value Change

Approaches of HRM:

Hard (instrumental) HRM approach: Soft (humanistic) HRM approach:

•employees are viewed as a passive factor of
production, an expense
•employees can be easily replaced and seen as
disposable.
•Strategic, quantitative aspects of managing
HRM as an economic factor
•stresses active employee participation
•gains employee commitment, adaptability and
contribution of their competences to
achievement of organizational goals
•employees are valued as assets
•emphasizing communication, motivation and
leadership

Models of HRM:

The Michigan School Model: (Congruent with organizational strategy. Also called matching
model)
The Harvard School Model (Harvard framework): It consists of 6 basic components:
 Situational factors
 Stakeholders Interests
 HRM Policy Choices
 HR Outcomes
 Long Term Consequences
 Feedback loop
Difference between PM and HRM:
Personal Management(PM)
1. PM is traditional approach of managing
people in the organization.
2. It focuses on personnel administration,
employee welfare and labor relation.
3. It assumes people as a input for achieving
desired output.
4. In this approach, personnel function is
undertaken for employee's satisfaction.
5. Job design is done on the basis of division of
labor in PM.
6. In PM, employees are provided with less
training and development opportunities.
7. Decisions are made by the top management
as per the rules and regulation of the
organization
8. It focuses on increased production and
satisfied employees.
9. It is concerned with personnel manager.
10. PM is a routine function
Human Resource Management
1.HRM is modern approach of managing
people and their strengths in the organization
2. It focuses on acquisition, development,
motivation and maintenance of HR in the
organization.
3. It assumes people as an important and
valuable resource for achieving desired output.
4. In this approach, administrative function is
undertaken for goal achievement.
5. Job design is done on the basis of group
work/team work in HRM.
6. In HRM, employees are provided with more
training and development opportunities.
7. Decisions are made collectively after
considering employee's participation, authority,
decentralization, competitive environment etc
8. It focuses on effectiveness, culture,
productivity and employee's participation.
9. It is concerned with all level of managers
from top to bottom
10. HRM is a strategic function.
Human Resource Planning (HRP): The process of analyzing and identifying the need for and
availability of human resources so that the organization can meet its objectives.

Human resource information systems (HRIS): An integrated system of hardware, software,

and databases designed to provide information used in HR decision making.

Benefits of HRIS:

•Administrative and operational efficiency in compiling HR data

•Availability of data for effective HR strategic planning

Job analysis: A systematic way of gathering and analyzing information about the

1.content, 2. context, and the 3. human requirements of jobs.

Job: A group of tasks that must be performed if an organization is to achieve its goals.

Position: The tasks and responsibilities performed by one person; there is a position for every
individual in an organization.

Task: A distinct, identifiable work activity composed of motions

Duty: A larger work segment composed of several tasks that are performed by an individual.

Responsibility: An obligation to perform certain tasks and duties

Job Requirements: 1) Job Description: Statement of the tasks, duties, and responsibilities
(TDRs) of a job to be performed

1) Job Specification
Statement of the needed knowledge, skills, and abilities (KSAs) of the person who is to perform
the job

Approaches used to Conduct Job Analysis:

1.The functional job analysis: FJA breaks down job roles into seven areas: things, data, worker
instructions, reasoning, people, maths and language.

2.The Position Analysis questionnaire system: a structured questionnaire of job analysis to

measure job characteristics and relate them to human characteristics. Moreover, it consists of
195 job elements that describe common human work behaviors.

3.The critical incident method: Situation analysis technique in which actions or behavior of an
employee (during, for example, a customer service event) is recorded and examined to ascertain
the actual requirements of a successful operation.

4.A task inventory analysis: Specific analysis developed by employees and managers-a list of
tasks and their descriptions that are components of different jobs.

5. HRIS: It analyzes jobs and write job descriptions and job specifications based on those
analysis

Key Terms of a Job Description

•Job Title: Indicates job duties and organizational level

•Job Identification: Distinguishes job from all other jobs

•Essential Functions (Job Duties): Indicate responsibilities entailed and results to be

accomplished

Job design: Core function of HRM that is related to specification of contents, methods and
relationships of jobs to satisfy technological and organizational requirements as well as social
and personal requirements of job.

Techniques used in Job design:

Job enlargement: The process of adding a greater variety of tasks to a job.

Job rotation: process whereby employees rotate in and out of different jobs.

Job enrichment: Enhancing a job by adding more meaningful tasks and duties to make the work
more rewarding or satisfying

Major Components of Job design:

Job Content/Scope: It includes various tasks to be performed by the job holder, the
responsibilities attached and relationship with other jobs.

Job depth: Authority that the job holder enjoys in planning and organizing the work.

Job Sharing: The arrangement whereby two part-time employees perform a job that otherwise
would be held by one full-time employee.

Selection Test: A selection test is a device that uncovers the information about the candidate,
which is not known through application blank.

Selection Test Types

•Aptitude Test: Learning capacity

•Intelligence Tests: Reasoning, verbal , number, memory

•Achievement Tests: Theoretical and practical knowledge

•Situational Tests: Situational problems

•Interest Tests: Likes and dislikes of candidates

•Personality Tests: Relationship, Talkative, Reliability, Self-confident

•Honesty Tests: The “Polygraph” a lie detector mechanical device that measure honesty of the
candidate. Reduce losses and Employee theft.

What Different Tests Measure?

 Cognitive abilities
 Motor and physical abilities
 Personality and interests
 Current achievement

Big Five Model of Personality:

 Extraversion
 Emotional stability/Neuroticism
 Agreeableness
 Openness to experience
 Conscientiousness

Basic Testing Concepts

•Reliability: Describes the consistency of scores obtained by the same person when retested with
the identical or alternate forms of the same test e.g. Are test results stable over time?

•Validity: Indicates whether a test is measuring what it is supposed to be measuring e.g. Does
the test actually measure what it is intended to measure?

Types of Validity:

Criterion validity means demonstrating that those who do well on the test also do well on the
job, and that those who do poorly on the test do poorly on the job

Content validity: A test has content validity, if it reflects an actual sample of the work done on
the job.

Basic Types of Interviews

1.Selection Interview: Its characteristics are as follows:

Interview structure: Interview structure is further classified into:

a) Unstructured (nondirective) interview

b) Structured (directive) interview

Interview content: Interview content is further classified into:

a) Situational interview
b) Behavioral interview
c) Job-related interview
d) Stress Interview

Interview administration: Interviews can be conducted in following ways:

a) Unstructured sequential interview
b) Panel interview
c) Phone interviews
d) Video/Web-assisted interviews
e) Computerized interviews
f) Structured sequential interview

2.Appraisal Interview

3.Exit Interview

Interview Bias:

Average/Central Tendency: When the interviewer has difficulty deciding which candidate is
best and instead rates them all about the same
Contrast: When an interviewer compares candidates to each other, or compares all candidates to
a single candidate. If one candidate is particularly weak, others may appear more qualified than
they really are.

First Impression: Can work for or against a candidate depending on the interviewer’s first
impression

Cultural Noise: When candidates answer questions based on information they think will get
them the job.

Halo Effect: When the interviewer evaluates a candidate positively based on a single
characteristic.

Horn Effect: When the interviewer evaluates a candidate negatively based on a single
characteristic

Knowledge of Predictor: Bias that occurs when the interviewer is aware that a candidate scored
particularly high or low on an assessment test

Leniency: When an interviewer tends to go easy on a candidate, giving a higher rating than is
warranted

Nonverbal Bias: When an interviewer is influenced by body language

Recency: When the interviewer recalls the most recently interviewed candidate more clearly
than earlier candidates

Similar to me: Occurs when the candidate has interests/characteristics that are the same as those
of the interviewer and cause the interviewer to overlook negative aspects

Stereotyping: When the interviewer assumes the candidate has specific traits because they are a
member of a particular group

Active- passive- and non-seeking Candidates:

Active Seeker: Read job ads, visit career fairs, apply actively

Passive Candidates: Have a job, are open for new opportunities, observe the market but don‘t
visit career fairs

Non-Seeker: Are not interested in a new job opportunity by any means, are happy with their
situation, new in their current position, close to retirement.