INTRODUCTION OF HRM
Chapter 1
Introduction
 Human beings are the most important
resource of an organization. These are the
people who plan all the activities.
 Managing human beings is the toughest
duty of the managers as no two person are
alike.
History of HRM
THE CHANGING ROLE OF HUMAN
RESOURCE IN THE 21ST CENTURY
Making the shift in a new HR role will raise unique
issues for HR groups that attempts it, but there are
common steps and activities that will increase the
likelihood of success. Some of these steps and
activities are:
1. Strong Leadership - as with any major
change effect, a strong leader can develop a
clear vision, motivate other to share that
vision, and help them work toward
achieving it.
- In order to change the role of HR in an
organization, the HR leader will need to
work within the HR group and with the
organizational leaders to reshape everyone’s
expectations of what HR can and will
deliver.
- The success of the change will depend upon
HR’s ability to meet the real needs of the
organization and the credibility it develops.
2. Acute Future Orientation – One of the ways
that HR can provide value is to understand
how changing environmental,
organizational, and workforce factors will
likely influence the business, anticipate the
associated HR needs, and be prepared to
deliver appropriate solutions to meet those
needs.
- By maintaining a focus on workplace trends,
for instance, HR can prepare to evaluate the
impact that particular changes are likely to
have on an organization’s people and
process, and be prepared to work with the
business leaders to decide how to respond –
being ahead of the curve, not behind it.
3. Flexibility and Creativity – An HR group
that is successful in the future will likely be
one that is responsive to the changing needs
of its client organization. Responsiveness in
the changing world of work will require
being flexible as the organizations change
will their need and priorities.
4. Delivering Value – Although this is not a
new challenge for HR, it remains a critical
one. HR is still perceived by many within
today’s organizations as simply a non-sense
generating function. It is important to make
apparent the value provided by working with
the management form to hire the right
people, management them well, pay them
appropriately, and build a working
environment that encourages success.
Here is a sampling of strategies that I have seen
implemented as HR groups work to respond to
environmental and organizational changes, become
more valued, and deliver results.
1. Business Unit Assignment – Some
companies are assigning HR employees to
specific business unit as a way of enabling
them to develop a focused relationship with
a small part of business.
2. Center of Excellence – As organizations
grow by manager and acquisition, they often
find themselves with multiple HR groups
- These can be duplicative or complementary
 - When they are duplicative, they can be In the 21st century HRM will be influenced by
subject to downsizing and consolidation, following factors, which will work as varies issues
leaving behind a department that is unable to affecting its strategy:
serve all areas of the business as well as they
1. Size of the workforce
had been accustomed, which can in turn
2. Rising employee’s expectations
undermine the credibility of HR.
3. Compensation of workforce, new skills
3. Consulting Model – a number of HR
required
department with whom I’ve worker have
4. Environmental challenges
adopted a consulting model of providing
service. They view their internal customers The Goals of 21st Century HRM
as clients, learn consulting skills, and take
their client satisfaction as a measure of their 1. Recruiting and Hiring
success. 2. Employee Benefit
4. Job Rotation – One way to bring the 3. Recognition and Reward
perspective of the business into HR and vice 4. Training and Development
versa is to rotate line managers into the HR 5. Legal Compliance
function for period of time. These 6. Goal Setting Standards
individuals often serve as reality checks for 7. Metrics and Reports
the HR group, and them bring an increased
An HR System
understanding of the value of HR back to
their line function when rotation is over. An HR system refers to how different HR policies
5. Increasing Line Managers Capabilities – are used in combinations to address three primary
Part of the future HR model is that issue.
responsibility for HR activities is shared
between line management and people
- This approach allows the managers to be
more fully involve in the development and
direction of employees, with HR as a
resource: it requires, however, that those
managers have the capabilities needed to
work through issues with employees
successfully.
Implementing HR Policy

The aim will be to implement policies fairly and

consistently. Line managers have a key role in
doing this. As pointed out by Purcell et al. (2003)
there is a need for HR policies to be designed for
and focused on front line managers. The role of HR
is also communicate, and interpret, the policies,
convince line managers that they are necessary and
provide training and support that will equip
manager to implement them.
HUMAN RESOURCE MANAGEMENT:
1. Develop an integrated compensation plan
MAJOR INFLUENCING FACTORS IN
2. The board has approved then plan and
21ST CENTURY monitoring and evaluation mechanism are in
place
 3. The plan has been communicated to
employees.
An Emerging Human Resource
Management Practice in 21st Century
1. Human Resource Management (HRM) and
Human Capital Management (HCM)
- Human capital management requires capable
employees whose competence is above
board and are highly proficient in
performance of their work. These people
introduce creative, innovative ideas and
make the organization different from its
competitors.
- Human capital management is related to
employee’s commitment, retention, talent
management, learning and development of
personnel.
2. Significance of Human Capital Management
- It is very important for any organization to
attract, fascinate and retain highly capable
employees. Most, the organizations
concentrate on theirs physical and financial
resources but relatively do a give a
considerable amount of time on its
personnel’s
3.
Knowledge Management and Human Capital
Management
- Knowledge management is an institution
erudition, which enhances the organizational
productivity and also brings about
innovative and creative ideas through
collective wisdom (Stankosky, 2007).
Knowledge management is meaningfully
significant because it supports the
organizational objective in a way that it
determines what special expertise the
organization requires. Following this the
logical sequence is:
A. Find out the people having that special
expertise.
B. Recruit them and create intellectual capital
to have more unique suggestions.
Below are some kinds of intellectual capital
(Jackson,2007)
1. Human Capital – the skills, knowledge, and
experience possessed by an individual or
population, viewed in terms of their value or
cost to an organization or country.
2. Social Capital – the networks of relationship
among people who live and work in a
particular society, enabling that society to
function effectively.
3. Process Capital – is the value to an
enterprise which is derived from the
techniques, procedures, and programs that
implement and enhance the delivery of
goods and services.
4. Intellectual Property – intangible property
that is the result of creativity, such as
patents, copyrights, etc.
4. Human capital and organizational learning
capability
Human capital is a valuable and intelligible
resource of an organization through which the
organizational long-term survival can be forseen
and achieved. Prudent management of human
resource in an effective manner shall enable the
organization not only to sustain its long-term
survival but also will increase its alert
responsiveness to work in the dynamic environment
(Barney&Wright, 1998).
- Organizational learning capability: among
others, have aspects of tangible bearing
(Jerez Gomez et al, 2005) as below:
1. Managerial commitment
2. System perspective
3. Openness and experimentation
4. Knowledge transfer and integration
Major Trends in Human Resources
in the 21st Century

Organizations will lean on human resources

professionals as strong leaders who help
employers and employees navigate through the
workplace challenges of the 21st century.
1. Technology Training – Human resources
will take the lead role in helping
organizations transition from local servers
using unlimited storage on the internet with
cloud services. To make the transition,
human resource will hire experts in cloud
computing to integrate cloud applications,
mobile devices and social media.
2. Globalization Effects – globalization will
increase in the 21st century as organizations
grow in the competitive international
market. A company’s human resource
department is responsible for recruiting and
training local staff in foreign countries
where a company has offices, as well as
newly recruited foreign staff in local offices.
3. Internal Changes – human resource will also
have the responsibility of updating their
technology approaches. For example, they
will change their recruiting approach to use
social media to find the right candidates for
job opportunities. They will update
technology policies to include conduct and
safeguards for IT property, and expand the
use of shared applications between
employers and staff.
4. Growth in Diversity – the growth of ethic
groups will continue to add diversity to the
workforce in the 21st century. The public
recognizes an organization with diversity as
harmonious, stable and progressive.
Therefore, human resources professionals
will be trained in understanding, supporting
and achieving diversity initiative to provide
employees with skills to work in diverse
teams.
 JOB ANALYSIS AND
HUMAN RESOURCE
PLANNING
CHAPTER 2
 Job Analysis – is the process of gathering
and analyzing information about the content
and the human requirements of jobs, as well
as, the context in which jobs are performed.
- This process if used to determine
placement of jobs.
Job Analysis Requirements
Uses of Job Analysis
 Job Description – an overall written
summary of task requirements is called job
description
 Job Specification – an overall written
summary of worker requirement is called
job specification
Job Analysis: Basis for Huma
Resource Function
Why Use a Job Analysis?
 To establish and document the tasks and
competencies requires for the job
 To identify the job relatedness of the tasks
and competencies
 To form the basis of applicant assessment
tools
 To help provide legal defensibility
 To enhance the validity and utility of human
resource products
Uses of Job Analysis
Organizational structure and design –
interrelationships among jobs,
1.
responsibilities at all levels can be specified,
promotion efficiency, minimizing overlap or
2.
duplication of work
Huma Resource Planning – it is the
foundation of human resource planning as
well as plans of other activities like training,
transfer or promotion.
3. Job Evaluation and Compensation – helps in
understanding the job evaluation and
compensation decisions. (job description
and specification)
4. Recruitment – helps the management to get
the right person for the job.
1. Selection – it facilitates the development of
the job selection techniques. It means proper
matching of an applicant with a job.
2. Placement – if selection decision will be
accurate, the workers will be placed in jobs
where they will be most productive.
Selection and placement go hand in hand.
3. Orientation, Training and Development – it
helps the new employee to understand the
work to be performed. Training and
development enhances the skills of
employees.
4. Performance Appraisal – help the managers
to distinguish between effective and in-
effective employees.
5. Career Planning and Development – HR
managers are better placed to offer career
guidance when they have a good
understanding of the types of jobs existing
an organization.
6. Compensation and Benefits – helps to assign
the compensation and benefits according to
the job level
7. Health and Safety – job analysis information
helps create a healthy and safety working
environment.
Five Common Methods of Job
Analysis
 1. Job Performance – in this approach an
analyst actually do the job itself to get the
firsthand knowledge
2. Observation – in this approach the analyst
only observes a worker or a group of
workers without interfering to know the
requirement of job.
3. Interview – in this the analyst rely on
workers own descriptions (e.g. airline, pilot,
architect).
- Analyst use standard format to prepare
the questions for interview.
- Helps the analyst do compare what
different people are saying about the job
in question.
4. Critical Incidents – these are actual reports
which illustrates the effective or ineffective
worker behaviors.
5. Structured Questionnaires – a series of
questions asked to individuals to obtain
statistically useful information about the
topic.
Job Description
1. Job Identification – job title, department,
and job number or code
2. Job Summary – concise overview of job
3. Duties Performed – major duties
4. Job Specification – minimum qualifications
person should possess to perform a
particular job.
5. Expanded Job Description – last duty
shown, “and any other duty that may be
assigned”, is becoming the job description
Job Design
Process of determining the specific tasks to be
performed, the methods use in performing these
tasks, and how the job relates to other work in the
organization.
Job Design Includes
1. Job Enlargement – broadening the scope of
a job by expanding the number of different
tasks to be performed
2. Job Enrichment – increasing the depth of a
job by adding the responsibility for
planning, organizing, controlling and
evaluating the job.
3. Job Rotation – the process of shifting a
person from job to job
O*NET, the Occupational
Information Network
The O*NET is a free online database that
contains hundreds of occupational definitions to
help students, job seekers, businesses and
workforce development professionals to
understand today’s world of work in the United
States
For each job, O*NET provides the
following information:
 Personal requirements: the skills and
knowledge required to perform the work.
 Personal characteristics: the abilities,
interests and values needed to perform the
work.
 Experience requirements: the training level
of licensing and experience needed for the
work.
 Job requirements: the work activities and
context, including the physical, social, and
organizational factors involves in the work.
 Labor market: the occupational outlook and
the pay scale for the work.
Human Resource Planning
The process of systematically reviewing HR
requirements to ensure that the required number
of employees, with the required skills, are
available when they are needed.
Types of Plans
1. Strategic Plans – apply to the entire
organization.
 - Establish the organization’s overall goals
- Seek to position the organization in
terms of its environment.
- Cover extended periods of time.
2. Operational Plans/Tactical Plans – Specify
the details of how the overall goals are to be
achieved.
- Cover short time period.
Strategic Planning
The process by which top management determines
overall organizational purposes and objectives and
how they are to be achieved
Human Resource Planning Process
Forecasting HR Requirements
 Estimate of numbers and kinds of employees
the organization will need at future dates.
 Demand for firm’s goods or services must
be forecast.
 Forecast is then converted into people
requirements.
Forecasting HR Availability
 Determining whether the firm will be able to
secure employees with the necessary skills,
and from what sources these individuals
may be obtained.
 Show whether the needed employees may be
obtained from within the company, from the
outside the organization, or from a
combination of the two sources.
Types of Plans
3. Strategic Plans – apply to the entire
organization.
- Establish the organization’s overall goals
- Seek to position the organization in
terms of its environment.
- Cover extended periods of time.
4. Operational Plans/Tactical Plans – Specify
the details of how the overall goals are to be
achieved.
- Cover short time period.
Strategic Planning
The process by which top management determines
overall organizational purposes and objectives and
how they are to be achieved
Human Resource Planning Process
Forecasting HR Requirements
 Estimate of numbers and kinds of employees
the organization will need at future dates.
 Demand for firm’s goods or services must
be forecast.
 Forecast is then converted into people
requirements.
Forecasting HR Availability
 Determining whether the firm will be able to
secure employees with the necessary skills,
and from what sources these individuals
may be obtained.
 Show whether the needed employees may be
obtained from within the company, from the
outside the organization, or from a
combination of the two sources.

Recruitment
Chapter 3
Definition and Meaning of Recruitment
According to Edwin B. Flippo, “Recruitment is the
process of searching the candidates for employment
and stimulating them to apply for jobs in the
organization”.
Meaning:
Recruitment is the activity that links the employers
and the job seekers.
A process of finding and attracting capable
applicants for employment.
Recruitment needs are of three types
 Planned – arises from changes in
organization and retirement policy.
 Anticipated – arises during resignations,
deaths, accidents and illness.
 Unexpected – refers to those movements in
personnel which an organization can predict
by studying trends in the internal an external
environments.
Features of Recruitment:
 It is a process rather than a single act or
event.
 Linking activity as it brings together the
employer and the prospective employees.
 Positive activity to seek out eligible persons
from which suitable ones are selected.
 To locate the resources of people required to
meet job requirements.
 Ability to match jobs to suitable candidates.
 A two way process between recruiter and
recruited.
 A complex job that involves lots of factors
like image of the company, nature of jobs
offered, organizational policies, working
conditions etc.
Recruitment Process
1. Identify vacancy
2. Prepare job description and person
specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interview
7. Conducting interview and decision making
Steps in Recruitment Process:
 Requisitions contains the details about the
positions to be filled, no. of persons to be
recruited, etc.
 Developing and location of sources, i.e both
internal and external
 Communicating the information of the
organization to acquire prospective
employees.
 Encouraging the identified candidate to
apply for the job.
 Analyzing and evaluating the effectiveness
of recruitment process by candidate
progression.
Elements of Recruitment Process
 Recruitment Policy
 Recruitment Organization
 Developing Sources of Recruitment
 Methods of Recruiting
Recruitment Policy
 It specifies the objectives of recruitment and
provides a framework for the
implementation of the recruitment
programme
It involves:
 Enriching the organization’s human
resources by filling vacancies with the best
qualified people.
 Attitudes towards recruiting handicaps,
minority groups, women, friends and
relatives of present employees.
Recruitment Organization
  Centralized recruitment
 Decentralized recruitment
Centralized Recruitment
Under this personnel department at the head office
performs all the functions or recruitment
ADVANTAGES:
 It reduces the administrative cost by
consolidating all recruitment activities at
one place
 It helps in better utilization of specialists
 It ensures uniformity in recruitment and
selection of all types of employees
 It facilitates interchangeability of staff
between different units/zones
 It relieves the line executives of the
recruitment problem thereby enabling them
to concentrate on their operational activities
 It tends to reduce favoritism in recruitment
and makes the recruitment process more
scientific
DISADVANTAGE
 There is delay in recruitment as operating
units cannot recruit staff as and when
required
 The central office may not be fully familiar
with job requirements of different units and
the most suitable sources for the required
staff
 Recruitment is not flexible because
operating units lose control over the
recruitment process
Sources of Recruitment
INTERNAL
 Transfer
 Promotions
 Upgrading
 Demotion
 Retired employees
 Retrenched employees
 Dependents and relatives of deceased
employees
EXTERNAL
 Press advertisements
 Educational institutes
 Placement agencies/outsourcing
 Employment exchanges
 Labor contractors
 Unsolicited applicants
 Employee referrals
 Recruitment at factory gate
Trends are being seen in recruitment
 Outsourcing
 Poaching
 E-Recruitment
1. Direct Methods:
Under this method scouting, manned exhibits and
waiting list are used.
 Scouting – where a company representatives
may be sent to educational and training
institutions.
 Manned exhibits – where representatives
sent to seminars and conventions where they
can establish their mobile offices to go to
desired centers.
Waiting lists of candidates who hace indicated their
interest in jobs in person through mail over phone.
1. Indirect Methods:
Advertisements in newspapers and journals, radio,
television used to publicize vacancies. This helps to
enable the candidates to assess their suitability so
that only those possessing the requisite
qualifications will apply.
2. Third Party Methods:
Various agencies, public employment exchanges
and private consulting firms are used to recruit
personnel. In addition friends and relations of
existing staff deputation can be used.
 decision on whom to select and finally hire for the
job.
Selection and Job Matching

Selection Selection tries to match the personal qualities of the

applicants with the job requirements.
Chapter 4 In the selection process we cannot separate the
Selection person from his personal characteristics.

According to Thomas stone “Selection is the Test and interviews commonly focus on the
process of differentiating between applicants in applicant’s social abilities as well as his task
order to identify and hire those with a greater abilities.
likelihood of success on the jobs.” Selection Process Flowchart
In Simple Words:
It is the function perform by the management of
selecting the right employees at the right time after
identifying the sources of human resources,
searching for prospective employees and
stimulating them to apply for jobs in an
organization.
The objective of the selection decision is to choose
the individual who can most successfully perform
the job from the pool of qualified candidates.
Selection Procedure on How to Get the Most
Qualified Applicants
1. Stage 1 – establishing selection procedure.
Successful employee selection is dependent
on a clear understanding of a job’s 1. Preliminary Screening
components.
2. Stage 2 – identify and choose selection The first step in the assessment of an applicant
criteria, predictors and instruments to be for the job is the initial interview or preliminary
used. screening.
3. Stage 3 – gather and evaluate information The following personal traits and qualities are
about applicants. the important things to consider in the preliminary
4. Stage 4 – make communication decision screening process:
whether to select or reject.
a) Aptitude and interest indicator natural
Who makes the selection decision? abilities, capacity for learning, and desires to
The HRD is a staff department and as a do certain jobs
functional authority to assist line managers in all b) Attitudes and needs indicate an applicant’s
related personnel functions. It is the functional frame of mind, emotional and mental
authority of the HRD to screen the applicants and to maturity, sense of responsibility and
submit the names of those who passed the initial authority, and future motivation
screening to the operating department for its final Analytical and manipulative abilities indicated our
thinking process, intelligence

c) level and ability to use knowledge
effectively in any assigned task
d) Skills and technical abilities indicated ability
to perform specific operations and technical
aspects of the jobs
e) Health, energy and stamina indicate physical
ability to perform the assigned task
satisfactorily, especially those involving
manual and managerial duties.
f) The person’s value system provides a clue to
motivation, goals, objectives and work
values and perseverance.
The Selection Process
These are some style of interview:
a) Structured interview - direct interview
usually structured. Structured interviews are
usually more effective in promoting equal
opportunities for all applicants.
b) Unstructured interview – is where the
applicant takes the lead. The unstructured
interview provides no specific reference and
the applicant is given a free hand in talking
about himself and the interviewer makes an
assessment.
c) Panel or round-table interview – is usually
done for managerial and supervisory
employees.
2. The Application Form
The applicant is required to fill out the
company’s official application form after passing
the preliminary interview.
Application forms vary from company to
company. Employment details are important during
the interview process.
Graphology – graphology is the art and science of
the analysis of the individual traits through his
handwriting.
3. Testing and Evaluation of Result
Testing – tests are still the commonly used
instruments for determining the qualifications and
talents of the applicant for a particular job.
Tests can be classified on the bases of personal
characteristics sought from the applicant. They are
the following:
a) Intelligence Test – it is wisely used to
measure mental or general learning ability
b) Aptitude Test – it measures the person’s
capacity to learn a given job, provided there
is adequate training.
c) Interest Test – it is derived from hereditary
and environmental factors. It tries to predict
the success in the job if the person’s interest
and the job are properly matched
d) Personality Test 0 it is considered as an
important instrument to test the personality
of the applicant especially for supervisory
and managerial positions, are they are to
relative with their co-workers in the
industry.
e) Achievement or Proficiency Test – it tries to
measure the applicant’s knowledge of a
given job. It tries to eliminate “trade
bluffers” who profess to know a particular
type of work.
4. In-Depth Interview
The in-depth interviews is the most important
part of the selection process. After passing all test
required, the applicant is now ready to formally
enter into the selection process. All the relevant
information about the applicant is bought into focus
at this point as the final decision to hire the
individual is made during this interview.
There are three important characteristics that
the interviewer must possess:
1. Knowledge – the interviewer must know the
behavior of the person and must able to
determine and decipher the answers to
questions as he may take down important
details during the interview process.
2. Empathy – the interviewer must be able to
discover the inner behavior of the
individuals by understanding his own
personality and relate this with the feelings
of the applicant.
3. Communication skills –
5. Evaluating References
References are important in finally assessing the
applicant’s worth for the position.
There are three kinds of references:
1. Academic References – this may be
requested who are the new graduates.
2. Character References – this references may
come from some person in the community
that are familiar with the individual in their
place of residence.
3. Work or Experience Reference – to get the
most valid information about the applicant,
the work reference check must be mailed to
the previous employer stating the
confidentiality of the information.
Here are some policy guidelines in reference
checking:
1. The reference should be used to develop the
integrity of the whole selection process.
2. For every important confidential positions,
reference should be conducted on face-to-
face basis, since the applicant may be
reluctant to divulge significant information.
3. In face-to-face information is impractical,
telephone inquires should be used rather
than mailed request for information.
4. In any kind of follow-up, inquires should be
in structured form to relate information to
job and career requirement.
5. Inquiries should discover the “why” behind
whatever impressions are disclosed. Those
who supply information may have their own
biases and peculiar standards.
6. Physical Examination
The applicant undergo physical examination at
the company clinic or an authorized hospital to
determine the physical fitness of the applicant for
the job.
Medical Examinations are important for the
following reasons:
a) To screen out those physically incapable of
doing the job.
b) To prevent employment of those with high
incidence of absenteeism due to illness, or
accidents.
c) To prevent hiring of people with
communicable diseases or who are
influenced by drugs.
d) Ward off unwarranted claims with worker’s
compensation laws. SSS, medical care and
suits for damanges.
7. Placements
Final acceptance for production workers is usually
dependent on the approval of the immediate
manager or supervisor of the department where the
applicant will be assigned. Practice in the placement
has been generally more formal and usually covered
by company policies and procedures in the hiring of
employees.
Type of Employees
1. Probationary – a probationary employee can
be terminated if he does pass required
reasonable standards in the performance of
the job or there exists a just cause for his
termination.
2. Regular or Permanent Employee – an
employee who passed the probationary
period and is performing a regular activity in
the business of the company, covered in the
regular company staffing system.
3. Contract Employees – the employees is
hired for a fixed period.
4. Casual or Seasonal Employees – an
employee is hired for a particular work or
service that is seasonal in nature.
Employment is temporary according to the
volume of work.
5. Apprenticeships – apprenticeships is the
development of required skills for a
particular type of work.
Importance of Recruitment and Selection
 Helps to get a proper candidate.
 Help to increase success rate.
 Help to reduce the probability.
 Helps to get organizations legal and social
obligations.
 Helps to increase organization and
individual effectiveness.
Conclusion
The purpose and Importance of Recruitment and
Selection
 Attract and encourage candidates
 Create a talent pool
 Determines present and future requirements.
 Links the employers with the employees
 Increase the pool of job candidates