ESSENTIALS OF HRM

December 2022 Examination

Q1. ‘Sundaram Ltd’ is an electronics company in Chandigarh. The top management plans
to open new branches pan India so they want to create a dynamic human resource
department for managing employee functions. You have been appointed as their VP - HR.
Explain to the top management, what will be the scope of your department in this
expansion. Give some examples in the context of this company. (10 Marks)

Answer 1.

Introduction
A quality can only develop if it is shown in a way that is both broadly applicable and readily
understandable. The company's own items are the best quality, and the company's executives are
some of the best in the way. To monitor quality and productivity at this level, most companies in
this industry utilize a top time unit. By creating your own processes, you may make the
efficiency of your time, energy, and resources. In order to provide employees with the
comprehensive benefits package that would keep them satisfied in their jobs, all it would take is
a sceptre and an employee with a clear vision. The department's excellent rate of completing
goals on time is one area to be improved. The Time System Division may expand in size and
authority, achieving it to gain access to more workers and perhaps even management goals.
Employers in the electric instrumentation sector were concerned that it would be difficult to
locate workers with the necessary technical and interpersonal skills. Because technical education
does not stress the development of creative problem-solving skills, ITT grads are unprepared for
the needs of the corporate world.

A company's human resources may be both its best strength and its worst weakness. Achieving
the demands of one's staff is one of the numerous goals of a human resource management. To
make that everything is completed, human resource management is a valuable tool. The most
crucial part is honing your mental skills to their maximum potential.

1
Concept and Application

The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it
concisely. However, we may classify the same under following heads:

HRM in Personnel Management:

Direct human resource management involves employee-centered duties such as workforce

planning, recruiting, and selection, training and development, onboarding and orientation,
promotions, compensation, termination and downsizing, and performance reviews. The most
important development is the emphasis put on monitoring personal development for the aim of
using it in one's work life.

Everything, including basic income, bonuses, and free travel, has been rolled into a single new
category.

HRM and Employee Welfare: Human resource management (HRM) involves "prioritizing
employee needs by focusing on elements such as the working environment." These extra services
address concerns over safety, health, financial security, and medical treatment. This covers
maternity leave, unemployment benefits, sick leave, and other forms of paid leave. There is both
protection and compensation for employees.

Management of training programs involves more than teaching development employees new
abilities; it also entails coordinating their efforts, creating a contented workforce, and giving staff
employees with progression chances.

Management approaches and human resource practices The complexity of human resource
management with an emphasis on industrial relations stems from the necessity for open
conversation with labor or employee unions, consideration of their concerns, and settlement of
disputes.

Finding solutions to problems, establishing relationships with employees, and using a variety of
methods to promote workplace harmony are important to this profession.

2
The primary objective is to safeguard the company's assets without jeopardizing the safety of its
employees. To establish, sustain, and expand industrial democracy, the efforts of business
owners and employees must be balanced.

Deep explanation

Human resource management has the ability to accelerate an organization's long-term expansion
(HRM). The key to long-term success in business is the capacity to develop new sites and
establish a solid network of shops. Human resource management professionals may be able to
help with this by highlighting the significance of certain skills, new viewpoints, and visible
outcomes. The pandemic has affected social relationships, cultural norms, and daily routines. It
is important to adjust your consumer base to the ever-changing market customers. This is
accomplished via the use of automated instances, remote business, and flexible resource
allocation, to name a few examples. This shift should be led by a new paradigm based on four
interrelated trends: increasing degrees of substantial automation, declining costs of cooperative
action, and shifting market conditions. It must be inventive or capable of fast adaptation to new
circumstances.

When the company reduced production and acknowledged that its employees were its most
valuable asset, time restrictions aggravated its problems. Human capability development (HRM)
is preferable to other methods because it can foresee trends, optimize data use, and accelerate
ecosystems' value creation. When a well-known company creates a second site, it is a major
event. It says a great deal about your self-confidence if you feel you can effectively launch a
business, recruit and keep top talent, and cultivate loyal employees. A crucial consideration is
whether or not a business is equipped for worldwide development. Human resources may be the
key to optimizing a resource's limited resources (I like what it performed with the primary one).
Some business websites are unquestionably more successful than others. It is not difficult to
recognize the significance of this. If relocating away from a less-than-ideal roadway or location
makes the site more accessible to customers, it may have a new impact on earnings. Many
parents would rather see the dentist than purchase frozen meals from a store with a play area.
Next, you should establish a strategy for advertising your products. The equipment is now
running at optimal efficiency. Brand development and enhancement are worthwhile endeavors.
In light of the fact that most individuals are only capable of recruiting one totally committed

3
business, it is smart to be open to experimental opportunities. One technique for expanding a
company is to offer customers a choice between two valuable resources.

If services evaluate what they can supply, it may be easier to comprehend clients' desires.

With the assistance of the World Wellness Company's resources, you and your customers may be
able to establish a mutually beneficial business partnership.

The quick units planning company may use these factors within its marketing approach.
Obviously, these elements should be included into the marketing strategy of a dynamic
electronics company. You can observe the many advertising methods that have been included
into the brand-new website. The date of the primary opening must be provided. Customers who
have just sampled a new service or product are more likely to recommend the business to others.
Before going on vacation, utilize the new site to establish a subset of your customers in a more
casual setting.

Conclusion

Our human resources are highly trusted since they have continually shown to be trustworthy
friends. You've devised a cunning strategy to set a number of offices with foreign employees
around the Republic of India. When someone else uses a technique in a goal-oriented work, the
original developer of the technique must be credited. The first step in establishing them on the
correct track is to develop rapport with them and encourage them to work fast and effectively.
Human resource managers are largely responsible for their workers' safety and responsibility.
Human resources professionals monitor employee personnel concerns and set business rules.
They will be knowledgeable in hiring, selecting, training, and developing people as well as
groups. They will also be knowledgeable with employee relations and benefits. Mentors and
career counselors will undergo training in order to assist employees who contribute to the
company's success. Candidates for work training may be identified utilizing a range of resources,
such as incentives and penalties, performance reviews, and academic and vocational programs.
There may be advantages to establishing new sites, but there may also be disadvantages. Internal
obstacles have less of an influence on employee performance and the achievement of business
objectives when suitable human resources are available.

4
Q2. An FMCG company wants to focus on improving the structure of the human resource
department. They have hired you as an HR advisor for this purpose. Suggest what should
be the various activities under the new sub divisions in the HR Department. Elaborate
them with corporate examples. (10 Marks)

Answer 2.

Introduction

In today's global consumer, many factories and retailers of FMCG rely on India as a crucial
distribution hub. Consumer decisions are having an impact on businesses and governments
throughout the world. There are several customer acquisition customers who rely heavily on
commercial distribution. Quickly get what you need in number to several other useful things
with the assistance of this deal. If just a few individuals are responsible for the company's
direction, it may take its time getting off the ground. There are a number of technical and tactical
components necessary for this strategy to succeed. The demand for fast-moving assets is great,
but their useful lifespan is brief because of fluctuations in supply and demand or changes in
consumer preferences. Body and household things are included here.

Concept and Application

Companies such as Coca-Cola and McDonald's benefit greatly from the expansion of the fast-
moving consumer goods (FMCG) sector. In the next decades, fast-moving consumer goods
(FMCG) firms that embrace new products, diversify away from inefficient mass distribution
networks, and capitalize on millennials' preference for online shopping will do exceptionally
well. Future success will depend on our capacity to determine and implement a "now, new, and
later" plan. In order to flourish in the extremely competitive digital market of today, consumer
goods firms must make e-commerce an intrinsic part of their daily operations.

This company leads the distribution market due to its low operational expenditures, vast
expansion potential, and extensive roster of well-known fast-moving consumer goods (FMCG)
manufacturers. The expansion of this market is without question important to its success. In
today's fast-paced business environment, a company's employees are its most precious asset.

5
Every company that wishes to maximize the potential of its employees must use strategic human
resource management. Human resource management with a strong management on quantitative
outputs is referred to be "calculated." One cannot dismiss or undervalue the importance of a
company culture that fosters innovation, flexibility, and a sustainable competitive advantage. By
improving the HRM framework, tactical HRM assists firms and their employees in enhancing
customer service and brand reputation.

The calculated technique to human resources (SHRP) consists of four unique steps: -

i. It is human to have the essential resources on hand and to have a future ahead.
ii. The second phase is to identify and evaluate present human resource capacity.
iii. Establish a communication mechanism between the HRIS and the end product.

The first 120 minutes are devoted to planning, followed by 60 minutes of communication and 30
minutes of action-taking. There are around 90 seconds of video. Employees may benefit by
inspecting their immediate surroundings for anything that might constitute a safety issue. Using
this method, the company has several alternatives for future strategic planning. In reaction to
external conditions, employees rely on their knowledge and experience to execute fresh ideas
and plans. The second step, "stating needs," involves doing an in-depth study of the needed skill
level. There must be a balance between the demands of the business and its employees. In the
book, notable individuals address the importance of fresh perspectives. This may be challenging
in today's fast-paced, always changing workplace. Predictions may be made using one of four
techniques: qualitative analysis, trend forecasting, applied mathematical modeling, or demand
forecasting. The No-Expert Assessments order focuses on introspective assessments of economic
signals, emotions, experience, and flexibility to interpret customer requirements. A method of
instruction that is fiscally responsible A "fad projection" is a supposition about the future status
of the economy based on present consumer acceptance trends (e.g., sales). New mathematical
modeling methods provide quantitative forecasts and intricate calculations (such multivariate
analysis or Markov analysis). System administrators, such as department heads or project team
leaders, must predict future demand for each order and employee in order to offer accurate
estimations of unit need.

6
Third, you must determine whether there are any acceptable individuals on the untapped external
labor market, and if so, how many and what types of candidates are accessible in terms of long-
term management and critical abilities. The use of a "expertise supply" is a reliable method for
determining a worker's true abilities. Names and credentials of currently employed individuals
might be found from this source. Not included are professionally applicable knowledge, relevant
work experience, and widely recognized certificates or licenses. The company of the list of
abilities in the inventory of competencies should be influenced by the demands of the
organization. It may be able to collect and give this knowledge by mining a clean dataset. They
are often required to save the data for future use. Anywhere in the United States may be an
excellent spot to get employment; it is not restricted to a particular market (or perhaps the
world). In metropolitan locations with a smaller population, low-stress employment are the
simplest to find. After sixty minutes, the computer devised a plan of action based on the two
projections and the performance of the existing crew. If the two books do not correspond,
modifications must be made.

Example

STRATEGIC HRM AT NESTLE

In addition to concentrating on expanding its number of companies, sales, and profitability,

Nestlé puts a priority on keeping strong holding companies in each of its businesses. Nestlé's
biggest resource is its workers' commitment and passion. Before encouraging employees to
actively participate and display genuine enthusiasm at all levels, they must understand the
organization's mission and their role within it. The company develops an environment in which
all employees can contribute to the company's success and feel heard by providing them with
clear communication channels and a common goal.

Human resources is a commonly used term in organizations nowadays. Human resource policies
encourage the growth of managers with diverse skill sets and the improvement of workers' skill
sets, knowledge bases, and access to resources.

How can human resource management be improved?

Here are some useful tips for improving HR effectiveness.

7
 i. Conceive initially of methods to improve communication inside the company.
ii. Construct an effective training method.
iii. Lastly, maintain open communication channels on the employees' output.
iv. Determine the organization's long-term cultural goal.
v. Fifth, making the most of existing resources
vi. While making an analysis, pay great attention to the details.

Human resource policy is described as follows:

HR policies-

• There must be two-way communication between management and employees to ensure that
workers comprehend their job responsibilities.

• Justify a regulation that would ensure that all employees are treated equitably.

• Make some rules and regulations obligatory for all employees.

• Lay the groundwork for artisan goods.

• Establish a method for regularly assessing the impact of shift employees on the remainder of
the workforce.

The following rules must be applied in order to achieve these goals:

• Must be clear and accurate, consistent with all applicable local, state, and federal rules, and
flexible enough to accommodate reasonable revisions in the case of unforeseen circumstances.

Conclusion

Over the last two decades, the Indian FMCG market has undergone significant changes.
Urbanization, an growth in disposable income, and a shift in consumer preferences all played a
role. Since the repeal and implementation of the Goods and Services Tax, optimism and market
sentiment have increased. The modern retail sector's growth is expected to accelerate over the
next five years. Consumer spending in rural areas has exceeded expectations. Changes in
consumer spending habits and rising levels of disposable income are driving growth. As the
market expanded, a wider range of products were exposed to more types of competition.

8
Q3. Maria, the HR Head of ‘Aztec Tech Solutions Ltd’ assigned the task of assessing the
human resource planning to the HR Department. However, his team informed him that
this assessment is not going well as they had expected. Keeping this context in mind, answer
the following:

a. Explain the process of human resource planning. Give some examples also. (5 Marks)

Answer 3a.

Introduction

In order to compete with future resources, businesses need a competent human resources
department and personnel, and HR planning improves this likelihood. The human purpose of
human resource planning is to ensure that an organisation has the competent workers it needs to
continue offering its skills and resources (HRP). In addition, the book highlights the HR
department's top priorities for the next year. Without having to understaff or work twice as hard,
businesses are able to accomplish their strategic objectives and maintain their competitive
advantage. Estimating the available human resources is the initial step in any HR planning
resource. The organisation might be suffering from a severe deficit or excess of resources due to
inept management of its human resource. Considerable weight is placed on the degree to which
established taxonomies are used in human resource planning.

To be an effective manager, you must possess certain skills.

i. Use caution while use it;

ii. Explanations for taking action
iii. connection improvements internally
iv. increased output

Human resource management needs the search for, attraction of, and hiring of people with the
requisite technical and soft skills. There has been an increase in the quality of the benefits
available to people, one of which is the opportunities for professional management and
advancement that managers now have.

9
Concept and Application:

The typical HRP process consists of five steps. The following steps are presented in bullet point
format for your reference: The goals and methodology of the analysis are discussed in depth.
Human resource resources that do not meet their core goals are condemned to fail. Consider
where you want to take your business and how your employees can help you get there.
Management and human resources should collaborate to achieve their goals and maintain
employee motivation. While some workers may opt to increase their recruiting staff, others may
be obliged to reduce their workforce via layoffs or reorganization of current teams. Please let the
staff to determine whether any issues need attention. In partnership with managers and
department heads, human resources personnel are able to analyze learning gaps. During the
work, we participate in things like self-assessments. Learn the HR department's files for further
information. The authors give a checklist of issues to consider and a list of suggested readings to
help in the creation of a human resources policy. Using a simple chart, the organizational
structure of a company, including its chain of command, may be shown. Future Need Projections
for Human Resources The ability to predict the future with some degree of accuracy is vital for
human planning. Before making a choice based on the supply and demand for exceptional
workers, the company must determine its long-term goals. Estimating the number and kind of
workers that will be required is one of the core parts of demand forecasting. The order is based
on an estimate of the quantity of internal and external resources that will be required to satisfy
resource things, including resource growth, pay increases, and office relocations.

Planning and Implementation:

Since the company has opted to pursue a long-term strategy, HR must develop plans for putting
those strategies into effect. It's probable that the company will need to do a thorough market
research and develop a supply-and-demand-based order to assure its survival. This order cannot
be completed until a few processes are improved so that the highest quality product is given.
There is a common objective to develop a welcoming and supportive work in which workers feel
appreciated and valued. Other common goals include providing flexible schedule and the chance
to learn and advance professionally. Examine the current condition of things and its trajectory.
Perform a brief evaluation to determine if you obtained the desired result. Learn if it can provide
insight on the company's strategy and result in enhanced productivity, morale, and work goals.

10
Always be informed of global events and on the lookout for chances that do not need much
preparation. Workers are entrusted for explaining the importance of the change to management.
Managers may learn about the pleasure and morale of their employees via informal surveys and
formal performance evaluations.

Conclusion

Planning for the future is difficult because we cannot precisely predict what will be recognised in
the future or plan for all potential future expansions. A solid understanding of the field's guiding
principles is required if human resource management strategies are to be both realistic and
effective.

b. Discuss the qualitative methods for Human Resource Demand forecasting, that the
company can utilize. Which one do you think is best suited for this company? (5 Marks)

Answer 3b.

Introduction

Whenever a resource needs to predict and manage fluctuating labor resources, human resource
planning is essential. HR future allows organizations to improve both the quantity and quality of
their HR resources. The forecast should be based on the company's yearly budget and long-term
goals, and each position should be assigned a level of responsibility. Human resource planning
needs the optimal workforce size for achieving an organization's goals. The goal of strategic
human resource planning is to assist businesses in identifying and assessing top candidates for
open positions who will be well-suited to take on the challenges and opportunities of the future.
Human resources use the following four methods most frequently to predict future needs.

Concept and Application

Numerous variables, such as a company's competitive strategy, capacity, infrastructure, and

innovation, may influence labor demand. With the introduction of cutting-edge technology, the
present economic environment is characterized by a rise in demand for employees with less
specialized skills and a decrease in demand for those with college degrees. Predictions may be
made using conventional or ground-level methods.

11
This strategy, according to the managing director, is of great importance to the company's high
management. Managers should take advantage of this chance to have a casual discussion with
their employees about their present jobs and potential future responsibilities.

Ratio Analysis: The ratio analysis may be used to generate forecasts rapidly. The evaluation of
historical ratios, such as the one between staff and positive cash flow, is one of the most
significant employees of these methods. They determine the team size based on recent changes
to the company's organizational structure and operational methods. What they want to
accomplish and how they intend to carry it out.

Regression analysis: This statistical analysis has the capacity to establish the relationship
between sales volume and staffing numbers. Comparable to the analysis done by rate-
relationship market analysts to determine the effect of volatility. When statistics are included to
an analysis, the procedure becomes more complex.

Different labour experimentation methods: In the first rounds of research, numerous labor
experimental methods may be utilized to determine the variety availability and projected variety
demand.

Delphi Strategy: The Delphi approach may be used to forecast future labor market demand. A
group comprised mostly of managers determines the requirements for human employees.

Flow benchmark: Flow models are often utilized by staffing employees as a baseline for
predicting placement requirements. The only viable alternative is the Markov model. Human
resource forecasting is essential to a company's success because it reduces expensive employee
interruptions and over- and understaffing. Human resource (HR) forecasting helps businesses
earn a profit by making the financial and operational effects of events such as staff turnover and
external circumstances that have a significant impact on the service's capacity to meet customers'
expectations, produce enough products, or complete a given task. Organizations rely on
workforce projections to help them plan for the future and recruit the right number of employees.
The estimate must be supported by both the departmental or unit budget and the company's long-
term business strategy, which establishes the framework for labor allocation.

12
Several cogent reasons justify this assortment of behaviors. It can help with forecasting future
staffing requirements, determining how many people to have working in each staffing to keep
costs low, making there are enough people available when they are required most, and
determining whether they are in compliance with rules surrounding jury duty time off.

Conclusion
There is no single best method for forecasting; rather, they all work admirably. However, ratio
analysis is frequently conclusive. Why? Because it is the most reliable and secure strategy
available. To determine the outcome, this method compares two numbers. This advice is
provided to assist you in understanding financial statements.

13