Essentials of HRM Course Presentation Qc3J3DX5NX

Essentials of HRM
S. No Reference No Particulars Slide

From-To
1 Chapter 1 Introduction to Human Resource Management 4-17
2 Chapter 2 Human Resource Planning 18-41

3 Chapter 3 Job Analysis and Job Design 42-65
4 Chapter 4 Recruitment and Selection 66-89
5 Chapter 5 Induction and Orientation 90-103
6 Chapter 6 Competency Mapping and Assessment Centres 104-127
7 Chapter 7 Training and Development 128-151

8 Chapter 8 Human Resource Development 152-175
9 Chapter 9 Career Planning and Succession Planning 176-199
10 Chapter 10 Performance Management 200-223
11 Chapter 11 Compensation and Rewards 224-247
12 Chapter 12 HR Audit and Accounting 248-261
Course Introduction
• Human resource can be defined as people who are employed in an organisation and are
responsible for carrying out operations.
• Human Resource Management (HRM) is a comprehensive process of acquiring, developing,
motivating, and maintaining a pool of efficient employees. The main aim of HRM is to ensure
the right people with the right skills for the right job position in an organisation.
• The key functions of HRM include recruiting people, training them, appraising their
performance, motivating them, ensuring their health and safety, managing workplace
communication, and so on.
• Effective HRM encourages employees to work efficiently towards accomplishment of
organisational goals and objectives.
Chapter 1: Introduction to
Human Resource
Management
Chapter Index
From-To
1 Learning Objectives 6
2 Topic 1 Human Resource Management (HRM 7-10

)
3 Topic 2 Functions of HRM 11
4 Topic 3 Challenges in HRM 12
5 Topic 4 Personnel Management 13
6 Topic 5 Strategic Management and HRM 14
7 Let’s Sum Up 15
• Explain human resource management
• Define the functions of HRM
• List the challenges of HRM
• Explain personnel management
• Relate strategic management and HRM
1. Human Resource Management
• Human resource is a group of individuals that forms the workforce of an organisation. It is

responsible for executing various operations and functions of the organisation.
• Inefficient management of human resource may create a number of difficulties for an
organisation like employee dissatisfaction, unclear organisational goals and objectives.
• Human Resource Management can be defined as a comprehensive process that involves
acquiring, recruiting, and maintaining an efficient pool of employees in an organisation.
• It focuses on employees issues related to recruitment, selection, compensation, benefits,
training and development.
Objectives of HRM
Societal objectives
Organisational objectives
Functional objectives
Personal objectives
Scope of HRM
Human resource Selection and

Job design
planning staffing
Training and Organisational Compensation and

development development benefits
Personnel research
Employee Union-labour
and information
assistance relations
system
Structure of the HR Department
HR department
Personnel
Staffing Organisational Training and
transaction Ethics and labour
management development development
management
Functions of HRM
Manpower planning
Job analysis
Compensation management
Recruitment and selection
Performance appraisal
Training and development
Employee welfare and motivation
Employee grievances
Challenges in HRM
Change management
Employee acquisition and

retention
Employee empowerment
Workforce diversity
Business expansion
Personnel Management
• Similar to HRM, personnel management (PM) is an organisational function that focuses on the
wellbeing of employees in an organisation. PM is more related to transactional and
administrative aspects of HR functions.
• The concept of PM was used by organisations before the concept of HRM came into existence
in the mid-1980s.
• The two concepts PM and HRM are confused with each other. However, there are certain
differences between the two. HRM is a modern approach to people management while PM is a
traditional one.
Strategic Management and HRM
Strategic human resource management (SHRM) is a framework that defines an organisation’s

direction to achieve its goals and objectives through human capital. In an organisation, SHRM
aims at:
• Developing high quality workforce by hiring and retaining talented people
• Enabling employee participation for achievement of the objectives
• Ensuring special motivational programs for employees
• Establishing performance targets for employees
• Measuring the performance related to targets
• Providing appraisal systems, training and development to employees
Let’s Sum Up
• HRM is a process of attaining, developing, and retaining employees in an organisation.

• An organisation is affected by various internal and external business factors. These factors
pose various challenges for HRM in an organisation in terms of change management,
employee acquisition and retention, employee empowerment, and workforce diversity.
• Personnel management is a traditional approach to people management while HRM is a new
approach to people management.
• SHRM can be defined as a framework prepared by an organisation to follow a particular
direction in order to accomplish organisational goals and objectives.
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Chapter 2: Human Resource
Planning
Chapter Index
From-To
2 Topic 1 Human Resource Planning 21-23
3 Topic 2 Process of Human Resource Planning 24-25
4 Topic 3 Techniques of HR Demand Forecasting 26-34
5 Topic 4 Benefits of Human Resource Planning 35-36
6 Topic 5 Challenges in Human Resource Planning 37-38
7 Let’s Sum Up 39
• Explain the concept of human resource planning
• Discuss the process of human resource planning
• Identify techniques of HR demand forecasting
• Explain the benefits of human resource planning
• Elaborate on the challenges of human resource planning
1. Human Resource Planning
• The term planning can be defined as a process of finding out a course of action for the
accomplishment of organisational goals and objectives.
• The process of planning starts with taking into consideration the current operations of an
organisation and finding out the areas of improvement for the upcoming year.
• HRP can be defined as a process of estimating the future human resource requirements and
ensuring that the organisation’s objectives are met by having the right people in the right job
at the right time.
• HRP is also called manpower planning as it involves putting the right people at the right job at
the right time so that organisational goals and objectives can be met within the stipulated time.
Need for Human Resource Planning

• Effective HRP process helps organisations to identify vacant positions and the skills and
expertise required and to attract people to apply for those positions.
• HRP is needed to identify the skills and competencies of managers who might be selected
either internally within a public sector enterprise or externally from other public enterprises.
• HRP helps organisations to meet ever-changing manpower requirements.
• Most organisations face high lead times between operations, which create unnecessary delays
in product delivery. These lead times can be reduced if organisations have a competent
workforce in place. Hiring efficient workplace can be possible through effective HRP.
Objectives of Human Resource Planning

• To make optimum utilisation of available human resource.
• To monitor the progress of all employees in order to ensure that organisational goals are
achieved.
• To enforce control measures whenever needed.
• To ensure that the entry and exit of people in the organisation are continually monitored and
any problem occurring at any stage of the process is immediately sorted.
• To avoid conflicts of interests among employees.
1. Process of Human Resource Planning
Reviewing business goals
Scanning the environment
Balancing manpower
demand and supply
Implementing and
monitoring the HR plan
2. Process of Human Resource Planning
1. Reviewing business goals: Before planning human resource requirements, HR personnel

study the organisational goals and objectives.
2. Scanning the environment: In this step, the HR personnel determine the number of people
required to meet organisational goals and objectives.
3. Balancing manpower demand and supply: This step involves bringing manpower demand
and supply at an equilibrium position.
4. Implementing and monitoring the HR plan: After equalising demand and supply, the HR
plan is to be taken into action.
1. Techniques of HR Demand Forecasting
Techniques of HR
demand forecasting
Qualitative methods Quantitative methods

Qualitative Methods
Qualitative
methods
Management Delphi
Expert forecasts
forecasts technique
• Expert forecasts: Sometimes HR personnel seek inputs from professional HR experts

regarding future staffing requirements of their organisations.
• Management forecasts: This is an internal HR demand forecasting method. In organisations,
managers from different departments along with other knowledgeable people are responsible
for determining human resource requirements. They decide the number of people to be hired,
skills required, etc.
• Delphi technique: In this method, a group of pre-selected experts is responsible for
forecasting demand. These experts provide their judgement on human resource requirements.
The responses given by these experts are summarised and a report is prepared. This process
keeps continuing until all experts agree on the estimated human resource requirements.
Quantitative Methods
Quantitative
methods
Trend analysis Ratio trend Work study

method analysis method method
• Trend analysis method: In this method, it is assumed that past trends of employee movement
in an organisation are steady and suggest future trends of employee movement. The steps of
trend analysis method are as follows:
1. Firstly, a suitable business factor is selected based on which HR needs are assessed.
2. A historical trend of the business factor is plotted with respect to the number of employees.
From this, a labour productivity ratio can be established.
3. In this step, the current labour productivity ratio is compared with the ratios of the last five
years and the differences or changes are noted.
4. In this step, HR demand is estimated by dividing total sales (business factor) by the labour
productivity ratio.
5. In the final step, HR demand is projected for the target year.
• Ratio trend analysis method: This is a method used to forecast HR demand based on the
ratio of production level and the availability of workers.
• Work study method: This method, also called work-load analysis, is used to estimate total
production and predict activities for a certain period in the future. This method is used when
the estimated workload is easily measurable.
Factors affecting HR Demand Forecasting
Factors affecting HR
demand forecasting
External business Internal business

environment environment
• External business environment: The external business environment of an organisation

comprises various economic, political, legal, social, and technical forces. These forces largely
affect the HR demand forecasts of organisations.
• Internal business environment: It comprises the internal strengths and weaknesses of
organisations. The changes in the internal business environment of organisations largely
influence HR demand forecasting.
• In addition, demand forecasting is also affected by employee attrition and absenteeism due
to various reasons, such as illness, family issues, retirements, and terminations.
• These factors are common in most organisations and influence demand forecasts of
organisations.
• Apart from this, future action plans of organisations also affect HR requirements.
• These changes are usually measured through surveys, market analysis, technological
parameters, etc.
1. Benefits of Human Resource Planning
• HRP enables organisations to fulfil present and future human resource requirements so that
organisational operations can be carried out without any hindrance.
• It ensures that the right people are placed at the right job at the right time, which, in turn, helps
organisations to mitigate various business risks like change in technology, economic
fluctuations, etc.
• HRP equalises the demand and supply of human resource in an organisation by anticipating
the situations of shortage and surplus of human resource. Both the situations can be dangerous
for the organisation. This is because the shortage of human resource may hamper the
functioning of the organisation, while surplus would incur unnecessary costs for the
organisation.
2. Benefits of Human Resource Planning
• HRP ensures that employees with desired skills and knowledge are available to work under
challenging situations, such as expansion and diversification.
• HRP serves the individual needs of employees through promotions, transfers, training and
development, etc.
• HRP estimates the cost of human resource, such as salary and other benefits; thereby
formulating HR budget for various departments of an organisation. This ultimately helps in
the preparation of an overall organisational budget.
1. Challenges in Human Resource Planning
• Planning HR requirements involves high cost, time, and efforts. However, HRP can be a
challenge for organisations lacking in funds.
• HRP can be a great challenge in situations, such as employee attrition, changes in government
laws, change in technology, economic conditions (like recession, inflation, depression, etc.),
and so on.
• The selection of the right demand forecasting technique can be a major difficulty in HRP. This
is because the selection of a technique depends on various factors like organisational budget,
level of expertise available, stipulate time, etc.
2. Challenges in Human Resource Planning
• A lack of proper coordination and cooperation between different departments of an

organisation can convert the entire HRP process into a failure.
• Another challenge of HRP is work culture shift in organisations. Most employees prefer to
keep working in the same manner. When an organisation decides to take a new approach to
HRP, employees may resist this change. In such a case, they may not make proper utilisation
of their skills.
Let’s Sum Up
• HRP can be defined as a process of estimating the future human resource requirements and
ensuring that the organisation’s objectives are met by having the right people in the right job
at the right time.
• Effective HRP process helps organisations to identify vacant positions and the skills and
expertise required and to attract people to apply for those positions.
• HRP process involves reviewing business goals, scanning the environment, balancing
manpower demand and supply and implementing and monitoring the HR plan.
• Various qualitative and quantitative techniques are used in forecasting HR demand.
Post Your Query
Chapter 3: Job Analysis and
Job Design
Chapter Index

From-To
2 Topic 1 Job Analysis 45-49
3 Topic 2 Job Description 50-52
4 Topic 3 Job Specification 53-55
5 Topic 4 Job Design 56-57
6 Topic 5 Approaches to Job Design 58-62
7 Let’s Sum Up 63
• Explain the concept of job analysis
• Define job description
• Describe job specification
• Explain the concept of job design
• List different approaches to job design
1. Job Analysis
• A job may be defined as a collection of different tasks, duties, and responsibilities to be

performed by individuals so that organisational goals can be met within the stipulated time.
• Each job has certain specifications as per the skills required to perform that job. To assign the
right jobs to the right people and maintain a flow of operations, it is important for an
organisation to analyse jobs.
• Job analysis is a systematic process of identifying and documenting the important functions
involved in a job, tasks required for the job, and skills and abilities needed to perform those
tasks.
2. Job Analysis
Scope of Job Analysis
Human Resource Planning (HRP)
Training and development
Compensation and benefits

3. Job Analysis
Process of Job Analysis
Step 1
Step 2
Determining the
purpose of job Step 3
analysis Communicating
the objectives Step 4
Conducting job
analysis Step 5
Developing job
description and job
specification Maintaining and
updating job
description and job
specification
4. Job Analysis
Information Collection for Job Analysis
Job content
Job context
Job requirement
5. Job Analysis
Methods for Collecting Job Analysis Data
Interviews
Questionnaire
Observation
Participant’s diary/logs
1. Job Description
• Job description is an organised factual statement that is prepared by considering the data
gathered in the job analysis process. Thus, job description can be defined as a written record
of the duties, responsibilities, and requirements of a specific job.
• Job description is descriptive in nature and provides information on the type of job to be
performed, the way to perform it, and the individual responsible to perform the job.
• It divides a job into various sub-jobs and explains the nature of each sub-job. The main aim
of job description is to differentiate a particular job from other jobs in an organisation and
decide the outer limits of that job.
2. Job Description
Need and Objectives of Job Description

• Job description helps in clearly communicating the expectations of an organisation from
employees.
• It ensures that the duties and responsibilities of employees are aligned with the organisation’s
vision.
• It provides a basis for deciding job structure and measuring job performance.
• Job description lays the foundation for fair pay and grading systems.
• Job description serves as an important reference tool in the case of employee/employer disputes or
any discipline issues.
• It can be used to determine training and development needs when expectations or requirements are
not met.
3. Job Description
Process of Writing Job Description

1. The first step involves noting down all the aspects of a job.
2. The next step is to decide the tasks to be included in the job.
3. In this step, various key responsibilities are identified from the raw data.
4. After the roles and responsibilities are finalised, they are ranked in an order based on their
priority.
5. After the job description is written, it is checked by experts.
1. Job Specification
• Job specification, also known as employee specification, is a statement that summarises the
acceptable attributes of employees, such as their experience, aptitude, educational
qualifications, and skills, required to perform a job.
• It is an extension to job description as it is always accompanied with every job description.
• Job specification helps in determining what type of people are required to fill particular job
positions in an organisation.
Need and Objectives of Job Specification

• Identifying prospective candidates: Job specification helps in attracting potential employees
by matching their skills and abilities with job requirements. This helps managers in preparing
a list of relevant questions for job interviews.
• Attracting candidates: Job specification familiarises candidates with the skills and abilities
required to perform a particular job in an organisation. Accurate and clear job specification
helps in attracting a large number of candidates.
• Supporting an organisation’s competency: Job specification helps an organisation to
strengthen its core competency by clarifying the skills and abilities required to perform
different jobs in an organisation.
Features of Job Specification
Physical specifications
Emotional and social specifications
Mental specifications
Behavioural specifications
1. Job Design
• Job design can be defined as a process of specifying and arranging work activities of
individuals or groups in an organisational setting.
• The main objective of job design is to establish job structures in a manner that they meet the
organisation’s requirements as well as personal and individual needs of jobholders.
2. Job Design
Process of Job Design
Assessing existing work practices
Analysing tasks
Designing jobs
Revaluating job design

1. Approaches to Job Design
Job rotation
Job enlargement
Job enrichment
Job simplification
Job Rotation
• Job rotation, one of the most commonly used job design approach, involves shifting an
employee from one job to another with an aim to add variety and prevent monotony.
• Sometimes it also involves making certain alterations in the existing job profile of an
employee so that the job does not appear repetitive.
• Job rotation enables employees to bring out their creative instincts and maximum potential.
Job Enlargement
• Job enlargement is a method of expanding the scope of a job with the addition of some more
tasks and duties to it.
• The main aim of job enlargement is to make the existing profile of the employees appealing.
• The additional tasks or duties do not require new but can be performed by using similar skills
and efforts.
Job Enrichment
• Job enrichment is a process in which employees are given opportunities to utilise their
abilities by participating the decision-making process of an organisation.
• The concept of job enrichment was proposed by Herzberg in the 1950s in his two-factor
theory of motivation. According to him, a job can be enriched when it involves the elements of
enthusiasm, challenge, and vision.
Job Simplification
• Job simplification is a process wherein a job is broken into smaller tasks to make the job
easier and interesting.
• The divided tasks are assigned to employees as individual jobs. This improves the
productivity of employees by reducing their mental and physical efforts.
• This approach is implemented by using time and motion studies.
Let’s Sum Up
• Job analysis is an important part of the HR function and helps in obtaining accurate, reliable,
and latest information about the job.
• Job description is a written statement that defines the roles, responsibilities, and requirements
of a specific job.
• Job specification, also referred to as employee specification, is defined as the statement that
summarises the basic skills and attributes that should be present in a person to perform a job.
• Job design can be defined as a process of specifying and arranging work activities of
individuals or groups in an organisational setting.
• There are a number of approaches used by organisations to design jobs namely job rotation,
job enlargement, job enrichment and job specification.
Post Your Query
Chapter 4: Recruitment and
Selection
Chapter Index

From-To
2 Topic 1 Recruitment 69-77
3 Topic 2 Selection 78-84
4 Topic 3 Outsourcing 85-86
5 Let’s Sum Up 87
• Explain the concept of recruitment
• Describe the importance of recruitment
• List the factors influencing recruitment
• Discuss the concept of selection
• Distinguish between recruitment and selection
• Explain the concept and significance of outsourcing
1. Recruitment
• The process of finding and attracting talented applicants for a particular job position in an
organisation is called recruitment.
• Recruiting new people helps organisations to get jobs done in order to meet organisational
goals and objectives and improve its productivity.
• An effective recruitment policy focuses on providing clear job details to candidates or
prospective employees, establishing a positive image of the organisation, and getting the best
person for the vacant job position.
2. Recruitment
Meaning and Definition

• Recruitment is a process of attracting the most qualified and talented candidates for a job from
a large pool of interested candidates.
• According to Edwin B. Flippos, “Recruitment is a process of searching for prospective
employees and stimulating them to apply for jobs in the organisation.”
• According to Yoder, “Recruitment is a process to discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force.”
3. Recruitment
Purpose and Importance

• Recruitment brings forth a large pool of candidates and ensures that the maximum of them
applies for a job vacancy.
• It lays a foundation for the selection of the right candidate for the right job.
• Recruitment helps in analysing both the current and future human resource requirements of
the organisation.
• It can be used as an indicator of future HR trends; for example, changes in the job market.
4. Recruitment
• Cooperation and coordination with colleges, universities, and various other educational
institutes can be strengthened through recruitment.
• Recruitment helps HR personnel and managers to adapt to changes taking place in the internal
and external environment.
• Recruitment helps managers and HR personnel to manage job vacancies.
5. Recruitment
Factors Influencing Recruitment

The various internal factors are as follows:
• Recruitment policy of an organisation: It outlines the objectives of recruitment and provides
a structure for a recruitment program.
• Size of the business: If an organisation plans to expand its operations, it needs to recruit more
personnel.
• Recruitment cost: There is a cost involved in recruiting a candidate. Thus, organisations tend
to use the recruitment method that incurs the lowest cost per candidate.
• Human Resource Planning (HRP): Effective HRP helps to identify gaps in the existing
workforce of an organisation.
6. Recruitment
The various external factors are as follows:

• Labour market: The availability of labour in the location of the organisation influences its
recruitment policy to a large extent.
• Image/goodwill: A positive image and goodwill of an organisation helps to attract people
easily.
• Political-legal-social environment: Various government rules and regulations prohibiting
discrimination in recruitment have affected recruitment practices in organisations.
• Level of competition: The high level of competition force organisations to change their
recruitment policy.
7. Recruitment
Sources and Methods of Recruitment

The various internal sources are as follows:
Promotions
Transfers
Internal advertisements/job posting
Former employees
Employee referral/recommendations
8. Recruitment
The various external sources of recruitment are as follows:

Management consultants
Public advertisements
Campus recruitment
Deputation personnel
Professional or trade associations
Public and private employment agencies
Executive search firms
Special events
Vocational guidance counsellors
Self-initiated walk-ins and write-ins
Computer databases
9. Recruitment
Process of Recruitment
Recruitment planning
Strategy development
Searching
Screening
Evaluation and control

1. Selection
• Selection is a process of choosing candidates who have the required knowledge and skills to
do a particular job. This process is usually carried out from a large group of potential job
applicants.
• The main purpose of selection is to find out the best candidate available from a large group of
people to do the required job successfully.
• Sometimes due to the negligence and lack of skills and experience of HR personnel, talented
candidates are denied the opportunity to work in an organisation.
• Thus, organisations need to have capable HR personnel who can ensure the right people with
the right potential.
2. Selection
Difference between Recruitment and Selection

S. No. Recruitment Selection
1 Recruitment is a searching process where Selection is a process of choosing the best candidate
employees are encouraged to apply for a among the group of interested applicants to fill a job
job. vacancy.
2 Recruitment provides a large pool of Selection happens after recruitment and the most
candidates from which only those suitable person is chosen from a large group of people
candidates are shortlisted by the HR provided by the recruitment process.
personnel whose skills and qualifications
closely match with the organisation’s job
requirements.
3 A large number of people can apply at this The best candidate is selected at this stage after
stage for a certain job position. screening out of other candidates.
4 No contracts or terms and conditions are Contracts or terms and conditions are usually present
present in the recruitment stage. once the candidate is selected.
3. Selection
Process of Selection
Conducting preliminary interviews
Filling an application blank
Conducting employment tests
Conducting employment interviews
Performing reference checks
Conducting physical examinations
Offering the appointment letter
Making final selection

4. Selection
Interview: A Method for Selection

• The term interview can be defined as a conversation between two or more people wherein a
series of questions are asked from one person in order to collect information about the person.
• According to Jucius Michael, "An interview is a face-to-face, oral, observational, and
personal appraisal method.”
• The person who asks questions is called the interviewer while the person who responds to the
questions is called the interviewee.
• Interview is used an effective selection method as the interviewer assesses the interviewee and
decides whether the person is suitable to perform the job.
5. Selection
Steps for an Effective Interview
Preparing for the interview
Conducting the interview
1. Preparing for the interview: The interviewer must prepare for the interview before actually
conducting it.
2. Conducting the interview: After preparation, finally the interview is conducted by the
interviewer. The interview needs to be conducted in a peaceful environment where there are
no disruptions and the interviewee finds the confidence to answer questions freely.
6. Selection
Selection in India
• Selection practices spread across various sectors in India, for example, IT, judicial, oil and gas,
manufacturing, healthcare, engineering, hospitality, etc.
• In the IT sector, many IT companies used the structured interviews and reference checks in
their selection process.
• Indian Oil, a top public sector oil and gas corporation, uses application blanks, resumes,
mental ability tests, work samples, personality tests, etc. as a part of its selection practices.
• Various personality tests and structured interviews are used as a part of best selection practices
by Indian manufacturing companies.
• Structured interviews are used by Indian companies in other sectors like healthcare,
engineering, hospitality and education, etc.
7. Selection
Selection from a Global Perspective

• Most of the organisations around the world use processes of selection which are not much
different from each other.
• Global organisations face some major problems during the selection of potential candidates.
One such major problem is cultural variations among nations.
• The working patterns, lifestyle and the overall environment are also quite different in America,
Europe, Australia, etc.
• Each country has their selection styles.
• Moreover, some countries prioritise certain selection trends while other countries take
alternative routes.
1. Outsourcing
• Outsourcing has enabled business enterprises to acquire all types of physical and intellectual
resources from around the world to carry out their operations.
• The four stages of outsourcing is depicted as follows:
Strategic thinking
Evaluation and selection
Contract development
Outsourcing management and governance

2. Outsourcing
Outsourcing HR in India
• Human resource outsourcing in India is currently becoming popular among the masses.
• Big to small-scale firms are getting into this recent trend.
• The latest size of outsourcing of HR practices in India is about $2 billion, the current market
of $27 million, and the growth rate of about 50 per cent.
• Foreign multinational companies outsource their HR activities in India due to various reasons,
such as easy availability of workers, low costs, achievement of top quality services, presence
of good facilities, high-class processes, etc.
Let’s Sum Up
• The process of finding and attracting talented applicants for a particular job position in an
organisation is called recruitment.
• Recruitment helps HR personnel and managers to adapt to changes taking place in the
internal and external environment.
• Selection is a process of choosing candidates who have the required knowledge and skills to
do a particular job. This process is usually carried out from a large group of potential job
applicants.
• Interview is used an effective selection method as the interviewer assesses the interviewee
and decides whether the person is suitable to perform the job.
• Outsourcing has enabled business enterprises to acquire all types of physical and intellectual
resources from around the world to carry out their operations.
Post Your Query
Chapter 5: Induction and
Orientation
Chapter Index

From-To
2 Topic 1 Induction 93-96
3 Topic 2 Orientation 97-100
4 Let’s Sum Up 101

• Explain the concept of induction
• Describe the need for induction
• Discuss the concept of orientation
• Explain the process of orientation
• Elaborate on the importance of orientation
1. Induction
• Induction is a formal process of introducing new employees to the work environment. The
process begins with the entry of employees into the organisation which later fuses with the
training and development process. Thus, induction is believed to motivate employees to
quickly adapt to the organisation, which, in turn, increases their productivity.
• The main aim of induction is to familiarise newly appointed employees with the organisation’s
vision, mission, goals, and objectives. An induction generally provides a brief introduction
about the history, culture, values, functions, processes, products and services, and policies and
standards of the organisation to new employees. Moreover, employees are communicated the
expectations of the organisation from them.
2. Induction
Process of Induction
Step 1
Step 2
Collecting
employee Step 3
Identifying
information Step 4
the objectives
Defining the
of the Step 5
audience
induction Deciding the
program content and
Providing
mode of
feedback
delivery
3. Induction
Merits and Demerits of Induction

The following are some advantages of induction:
• An effective induction program helps employees to get comfortable with the organisation and
hence reducing the turnover rate.
• An induction program also presents the worth of the organisation to employees. This wins
loyalty and commitment of employees towards the organisation.
• An induction program provides employees with an opportunity to know and connect with
fellow employees.
• An induction program allows an organisation to inform employees about its expectations
regarding behaviour, attitude, and code of conduct.
4. Induction
The demerits of the induction program are explained as follows:

• Sometimes an induction program provides too much information to employees, which is not
even required by them.
• If an induction program is not designed properly, employees may not have a clear
understanding of an organisation’s functioning. This may demoralise employees.
• Employees would not be able to show dedication or become a part of a team in case they are
not inducted properly.
• If an employee leaves the organisation, the time, money, and efforts spent on the induction
process gets wasted.
1. Orientation
• In induction program, employees are introduced to the work culture of an organisation.

• However, it is not sufficient for employees to be only aware of work culture of the
organisation to perform effectively.
• Employees need to have a clear understanding of their job roles and responsibilities.
• A process of briefing the job roles, responsibilities, and duties to employees is called
orientation.
2. Orientation
Types of Orientation
• General or specific orientation: A general orientation program is conducted for all new
recruits irrespective of their departments and profiles. In such a program, employees are made
aware of the dos and don’ts of their jobs, general safety measures, precautions to be taken
while performing their jobs, etc. On the other hand, a job-specific orientation program aims at
providing employees with specific information about their job profile.
• Traditional and modern orientation: In the traditional orientation program, organisations
use general and repeated orientation material. On the other hand, a modern orientation
program is updated as per changes in job requirements.
3. Orientation
Process of Orientation
Step 1
Step 2
Reviewing the
organisation’s Step 3
policy and Determining
expectations the objectives Step 4
of the Determining
orientation the type of Step 5
orientation Deciding the
program
program mode of
delivery Taking
feedback
4. Orientation
Effectiveness of Orientation Program
Clear objectives
Well-defined audience
Accurate information
Appropriate methodology
Let’s Sum Up
• Induction is a formal process of introducing new employees to the organisation and making
them confortable to adapt to the working atmosphere.
• The need for induction can be understood from the perspective of both the organisation and
employees.
• The steps in the process of induction include collecting employees’ information, defining the
audience, providing feedback, etc.
• An orientation program is broadly classified into general or specific and traditional or
modern.
• The features of an effective orientation program include clear objectives, well-defined
audience, accurate information, and appropriate methodology.
Post Your Query
Chapter 6: Competency
Mapping and Assessment
Centres
Chapter Index

From-To
2 Topic 1 Competency Mapping 107-114
3 Topic 2 Assessment Centres 115-124

• Explain the concept of competency mapping
• Discuss the importance of competency models
• Explain the concept of assessment centres
• List measurement tools used in assessment centres
• Differentiate between assessment centre and development centre
1. Competency Mapping
• Competency is a set of knowledge, skills or behaviour that an individual needs to demonstrate

to perform a particular work successfully.
• Competency mapping is a process of assessing the strengths of employees in an organisation
and judging whether they are fit for a particular job.
• Competency mapping enables both the organisation and employees to identify the areas of
improvement of employees’ performance.
• These areas of improvement can be related to problem-solving skills, decision-making skills,
teamwork, discipline, leadership, management, etc.
• Competency mapping provides insight to employees into their career prospects.
Types of
competencies
Technical Managerial/organisational Human/behavioural Conceptual

Developing Competency Models

Preparing for the model
Collecting information
Building the model
Implementing the model
Evaluating and updating the

model
1. Preparing for the model: This is the first and foremost step in the process of developing a
competency model wherein the purpose of the model is defined.
2. Collecting information: This step involves gathering information related to job roles and
responsibilities.
3. Building the model: This step involves grouping and sub-grouping skill sets into
competencies; for example, decision-making, problem-solving, interpersonal skills, etc.
4. Implementing the model: This step involves putting the established model into practice.
5. Evaluating and updating the competency model: This is the final step in the competency
model development process where a thorough evaluation is carried out to assess how much are the
resultant competencies beneficial to the organisation.
Uses of Competency Models

• Competency models improve the selection process in organisations as these models help in
assessing the competencies of candidates and deciding whether they are fit for a particular job.
• These models help in performance appraisal as competencies of employees are measured to
identify their strengths and weaknesses.
• Competency models enable HR personnel to establish an effective structure for training and
development by providing insight into the existing competency level of employees.
• Competency models facilitate career orientation in organisations by defining a career pathway

for employees. Moreover, they enable organisations to focus on their core competencies by
making effective utilisation of employees’ skills and abilities.
• These models help in clearly communicating the organisation’s expectations mission, vision,
and core values to employees so that they can work toward achieving organisational goals and
objectives.
Future Trends in Competency Modelling

• Over the years, organisations around the globe have become too competitive that they want to
be market leaders and stay distinguished from the pile.
• For this, they need to strive hard to attract a large customer base and offer high-quality
products and services in the market.
• In order to achieve such positive results, organisations need to raise the competence levels of
their employees.
• It is predicted that in the future, many medium and small-scale IT companies will also learn
from these big IT giants and develop successful competency models which will have greater
impact on their workforce.
1. Assessment Centres
• An assessment centre is a technique used in the selection process for identifying the skills and
abilities of candidates. This technique is applied to collect information on the competencies of
candidates that cannot be gathered in interviews alone.
• In organisations, assessment centres are generally used for the selection of senior-level
personnel like managers, supervisors, executives, and other higher management personnel.
• In assessment centres, candidates (who apply for higher positions) are given real-life
exercises.
• Assessment centres may include individual or group activities, real-life simulation games, a
series of tests and interviews, which helps in evaluating whether an applicant would be able to
perform a particular job successfully.
History of Assessment Centres

• Assessment centres were first used in 1942 in the UK by War Office Selection Boards for
solving discipline and behavioural issues of officers and selecting the right candidates for
major roles. The main activities involved in these assessment centres were simulation
exercises, tests, and interviews.
• Consequently, the number of officers who were found to be unsuitable to do a particular job
reduced and there was a significant increase in the number of efficient officers.
• Assessment centres in the UK gained popularity in 1986 when industries employing 500 and
more people used assessment centres. Going by the current trends, many industries in the UK
have now started using assessment centres.
• The US had a very infamous history of using assessment centres.

• During the early days, the Office of Strategic Studies in the US used assessment centres to
appoint spies during the Second World War.
• In the following years after the Second World War, various American private companies
started using assessment centres to select people, notably, American Telephone and
Telegraph Company (AT&T) in 1956.
• Other large American companies, such as IBM, GE, and Sears, also started using assessment
centres in their selection process.
• Gradually, assessment centres were considered to be an effective technique for selecting
employees by organisations across the globe.
Measurement Tools
Measurement
tools
Simulations Tests Interviews

Simulation tools
Leaderless In-basket
Role playing Presentations Work sample
group exercise exercise
Elements of
a test
Cognitive Job Physical

Integrity Personality
ability knowledge ability
• Interviews are formal meetings in person where qualifications, knowledge, and skills of an
applicant are assessed by the hirer.
• These interviews provide an opportunity to HR personnel to collect essential information from
the applicant and determine whether he/she is suitable to perform the job.
• Not only this, interviews also enable the applicant to have a fair idea of the job requirements.
• However, the effectiveness of interviews largely depends on the type of questions asked.
• Thus, interview questions must be designed in such a way that they provide adequate job-
related information to candidates.
The three main steps in an interview method are as follows:
Preparing for the interview
Conducting the interview
Noting down responses

Differences Between Assessment Centre and Development Centre

Assessment Centre Development Centre
Pass/fail criterion is present. Pass/fail criterion is not present.
A job position is filled up. Development of people takes place.
Short-term organisational needs are Long-term organisational needs are
addressed. addressed.
There can be a large number of candidates. There is a 1:1 ratio of assessors to candidates.
However, the number of assessors is less.
Line managers can be assessors. Line managers cannot be assessors.

There is less focus on self-assessment. There is more focus on self-assessment.
There is focus on what participants can do in There is more focus on the participant’s
the current situation. potential levels.
Assessment Centre Development Centre

Organisational needs have to be met. Both organisational and individual needs have
to be met.
Assessors act as judges. Assessors act as facilitators.

Selection is the primary focus while Developmental feedback or follow-up is the
developmental feedback or follow-up takes the primary focus while selection takes the
backseat. backseat.
Feedback is given later. Feedback is given immediately.

Organisations have greater control on the Participants have greater control on the
collected information. collected information.
It is generally used for potential employees. It is used for internal candidates.

Let’s Sum Up
• Competency is a set of knowledge, skills or behaviour that an individual needs to

demonstrate to perform a particular work successfully.
• Competency mapping helps in clearly stating the roles of an individual in the organisation.
• Competency mapping enables organisations to determine training and development
requirements of employees.
• An assessment centre is a technique used in the selection process for identifying the skills
and abilities of candidates.
• In assessment centres, candidates (who apply for higher positions) are given real-life
exercises.
Post Your Query
Chapter 7: Training and
Development
Chapter Index
From-To
2 Topic 1 Concept of Training 131-138
3 Topic 2 Types of Training 139-140
4 Topic 3 Methods of Training 141-143
5 Topic 4 Training and Learning Organisations 144
6 Topic 5 Concept of Development 145-148

• Explain the concept of training
• Discuss different types of training
• List the methods of training
• Discuss training and learning organisations
• Explain the concept of development
• Elaborate on the need for development in organisations
• Differentiate between training and development
1. Concept of Training
• Hiring skilled and qualified personnel is of paramount importance to any organisation.

However, to achieve success in the long run, it is essential for an organisation to train and
educate its employees to increase their knowledge base and develop new skills.
• This not only leads to the development of employees but also increases their productivity;
thereby leading to organisational effectiveness.
• Training is an organised process that involves teaching or providing instructions with an aim
to improve the performance of recipients or help them to achieve a required level of
knowledge or skill.
Training and Education

The difference between education and training is as follows:
Point of Difference Education Training
Purpose It aims at developing the mindset It aims at developing new skills
of individuals. and knowledge of individuals.
Level of learning Individuals may find it difficult to It is easier to learn.

learn.
Measure of success Education is based on the system It is based on certificates and job
of scores and grades. performance.
Length of process It may extend to one to three It generally lasts for one to five
years. days or sometimes for a few
weeks.
Changes The learner becomes more radical The participant becomes skilful in
and skilful in general thinking. a particular job.
Need and Importance of Training

• Training is required to make new employees aware of their job roles and duties,
organisational processes and functions, etc.
• Training leads to the building of efficient and effective teams; thereby enabling the
organisation to quickly respond to changes in the business environment.
• It motivates employees to work toward the accomplishment of organisational goals and
objectives by providing them a clear picture of the organisation’s expectations.
• It improves the knowledge of employees about their job roles, which leads to enhanced
productivity and organisational effectiveness.
• Training focuses on developing the intellect and personality of employees so that they can
perform effectively.
• Training inculcates a sense of team spirit, teamwork, and inter-team collaboration, which
helps employees to adapt to team culture.
• Training enables employees to identify their strengths and use them as well to recognise their
weaknesses and correct them.
Stakeholders in Training
• Top management: A training program cannot be conducted without the consent of the top
management. This is because it is the top management that allocates resources for conducting
any training program.
• Participants: They comprise the target audience of a training program. Participants strive to
achieve the learning goals and objectives of the training program and apply this learning while
performing their jobs.
• Trainer: A trainer plays a crucial role in motivating and inspiring participants by making
training sessions interesting and informative.
Process of Training
Reviewing
Assessing training Deciding training
organisational
needs objectives
objectives
Evaluating the Implementing the Designing the

program training program training program
International Training Issues

• Sometimes organisations are not interested in bearing the extra cost incurred on international
training. The cost and infrastructure of international training is comparatively higher.
• Many organisations find it difficult to look for a trainer who has skills to train people from
different backgrounds.
• Determining the type and design of the training for a diverse audience is also sometimes
difficult.
Factors Influencing the Effectiveness of Training
Top management support
Acceptance of participants
Adoption of continuous process
Technological advancement
Type and time of training

1. Types of Training
• Induction training: This type of training is conducted for new appointees. Induction training
focuses on introducing new employees to organisational procedures, functioning, policies,
culture, rules, and regulations.
• Job training or orientation: This training is given to both new and existing employees.
Orientation aims at making employees aware of job roles, responsibilities, and
accountabilities.
• Apprenticeship training: This is a hybrid form of job training and classroom teaching where
trainees are trained about both the knowledge and the skills required in performing a
particular job.
2. Types of Training
• Internship training: In this type of training, vocational and educational institutes enter into a
formal contract with organisations to provide practical training to their students. This type of
training is required to facilitate formal education with practical training.
• Training for promotion: There are some employees in organisations who tend to perform
better than their existing job roles. Many organisations identify and appreciate these
employees by giving them special training that can prepare them for the next promotion. As
promotion leads to changes in job roles and responsibilities of employees, training needs to be
given. In this way, employees are trained to get promotion and perform efficiently.
1. Methods of Training
On-the-job training method: It is a method wherein training is imparted to employees when they
are actually performing their jobs at a workplace. This method is generally used by organisations
to train employees for performing various operative functions. Some of the on-the-job training
methods are as follows:
• Job rotation
• Coaching and mentoring
• Assignments
• Apprenticeship
• Internship
• Orientation
Off-the-job training methods: In this method, trainees are sent to the location outside the actual
workplace to acquire new skills and knowledge. Off-the-job training may be provided by
certified trainers within the organisation or external trainers. Some of the common off-the-job
training methods include:
• Classroom lectures
• Audio visual
• Case studies
• Role playing
• Simulation
• Vestibule training
Coaching and Mentoring

• Coaching and mentoring is the most commonly used on-the-job training method. In the
coaching process, employees receive feedback on their performance and guidelines to perform
better, from their supervisors regularly.
• Mentoring is a form of coaching used by executives to train their subordinates. It involves
one-to-one coaching that continues until the employee becomes capable enough to surpass
his/her mentor.
• Coaching and mentoring help employees to learn quickly through one-to-one interaction.
Moreover, it enables organisations to keep track of the performance of employees and make
optimal utilisation of their skills.
Training and Learning Organisations
• A learning organisation is one that focuses on acquiring knowledge and encouraging

innovative ideas with an aim to survive in a rapidly changing business environment.
• A learning organisation creates an environment that supports employees in their learning
and critical thinking and encourages new ideas.
• As a learning organisation promotes constant learning, training plays an important role in
the growth of the organisation.
1. Concept of Development
• Development is a long-term process that aims at the overall improvement of employees for
future job performance.
• It focuses on enhancing the conceptual and theoretical knowledge of employees for a
particular job position that they may hold in the future. For example, if an employee has
instinct leadership qualities, he/she may be prepared for the position of a manager or team
leader through proper education or mentoring.
• Sometimes employees are asked to handle some of the tasks related to their future job
position. For instance, an employee may be asked to handle a team in case he/she has been
considered for a team leader in the future.
Need for Development in Organisations
Increased efficiency and reduced wastage
Increased employee morale
To improve industrial relations
Optimum utilisation of resources
Fast response to change

Difference between Training and Development

Point of Difference Training Development
Scope It is a narrow concept. It is a broad concept.

Training is a part of
development.
Validity or suitability Training has its validity for the Development is valid for
present job only. current as well as the future
jobs.
Applicability Training is applicable for a Development is not job
particular job. specific.
Target audience It is applicable to employees Development is generally
working at operating level. applicable to employees
working at middle and top
management levels.
Point of Difference Training Development
Methods Mostly on-the-job training Mostly off-the-job training

methods are used. methods are used.
Skills and knowledge Training develops the physical Development improves

and mental skills of employees intellectual abilities, such as
to perform a current job. leadership skills,
interpersonal skills, and
decision-making skills of
employees to prepare them
for future jobs.
Let’s Sum Up
• Training is an organised process of imparting skills and knowledge to employees with an aim
of improving their productivity.
• Training and education are complementary to each other. An organisation selects employees
on the basis of their education. However, while imparting training, it is presumed that
employees have a certain level of education.
• There are different types of training imparted in organisations. Some of them include
induction training, apprenticeship training, training for promotion, etc.
• Methods of training are broadly classified into two categories on-the-job training and off-the-
job training.
• Development is a long-term process that aims at improving interpersonal and leadership
skills of individuals from a future perspective.
Post Your Query
Chapter 8: Human Resource
Development
Chapter Index
From-To
2 Topic 1 Meaning 155-162

of Human Resource Development
Functions of HRD
3 Topic 2 163-164
Process of HRD
4 Topic 3 165-167
Types of HRD Systems
5 Topic 4 168-170
Effectiveness of HRD
6 Topic 5 171-172
Let’s Sum Up
7 173
• Explain the concept of HRD
• Discuss the functions of HRD
• List the stages involved in the HRD process
• Discuss the types of HRD systems
• Discuss the effectiveness of HRD
1. Meaning of Human Resource Development
• Human Resource Development (HRD) is a framework used by organisations to help

employees develop their knowledge, skills, and abilities so that they can perform efficiently in
their job.
• HRD provides employees various opportunities, such as training and development, career
planning, coaching and mentoring, performance management, etc.
• These programs help organisations to build a strong workforce where employees work in a
productive manner to achieve organisational goals and ensure excellent customer service.
HRD is a continuous process that aims to improve overall productivity through:

• Investment in human resource: From an organisation’s perspective, output can be enhanced
by investing in the development of skills and abilities of human resource.
• Optimum utilisation of human resource: Organisations strive to make effective utilisation
of human resource on which they invest in a planned manner.
• Participation of human resource: Employees are motivated if they are encouraged to
participate in the decision-making process of an organisation, which ultimately boosts
productivity.
Need for HRD

• Changes in the business environment: Various changes take place in the internal and
external business environment of organisations from time to time.
• Poor performance: If employees lack the required skills and are demotivated, they would not
perform as per the expectations, which adversely affect the organisation’s productivity.
• Launch of new products: Organisations need to introduce new products from time to time to
stay ahead of competition.
• Higher performance standards: Organisations generally establish high performance
standards for their employees.
• Career progression requirements: Employees always aspire to move to the next level of
their jobs.
Levels of needs
Organisational level Work level Personal level

• Organisational level: The need for HRD arises at the organisational level when an
organisation alters its business strategy with respect to the changes in the business
environment.
• Work level: The work performance of employees can be enhanced if organisations focus on
developing the existing skills and knowledge of employees.
• Personal level: Employees are motivated to perform effectively if they have the right attitude
and a high level of motivation and satisfaction.
Objectives of HRD
• To respond quickly to the changing business environment.
• To identify the strengths and weaknesses of employees.
• To improve organisational performance by developing the skills, knowledge base, and
competencies of employees.
Scope of HRD
• Training and development: HRD programs are designed to train employees in particular
jobs.
• Organisational development: HRD helps in organisational development by ensuring that
cordial relationships are maintained among employees, conflicts are avoided, and employees
are motivated to work towards organisational goals and objectives.
• Career development: Employees always seek to progress in their career and transform
themselves into highly competent individuals.
• Performance appraisal: This is one of the most important functions in an organisation

wherein the actual performance of employees is compared with and the desired performance.
• Placement, promotions and transfers: Depending on the appraisal reports, employees are
placed in other departments, promoted to the next level from their current level, or transferred
to a new location.
• Employee motivation: HRD encourages employees to perform better in their jobs by serving
as a motivational tool.
1. Functions of HRD
Functions of HRD
Training and Organisational

Career development
development development
2. Functions of HRD
• Training and development: This function of HRD focuses on changing or improving the
knowledge base, skills, and abilities of employees.
• Organisational development: This function of HRD focuses on improving the overall
performance of an organisation and the well-being of its members through planned
interventions.
• Career development: It is an important process that is meant to make employees realise their
work potential. Career development consists of two parts, namely career planning and career
management.
1. Process of HRD
Needs Assessment
Design
Implementation
Evaluation
2. Process of HRD
1. Needs assessment: This is the first step that involves determining the need for an HRD
program in an organisation. This is done by identifying gaps in the performance of employees.
2. Design: After the objectives are identified, the next step is that the program should be
designed in such a way that the set objectives can be met effectively.
3. Implementation: This is the next phase of the HRD process where the designed HRD
program is put into practice so that the identified objectives can be met.
4. Evaluation: This is the final step of the HRD process where the effectiveness of the designed
HRD program is measured. In this step, it is checked whether the designed HRD program has
met the set objectives.
3. Process of HRD
The four phases of the HRD process together referred to as ‘A DImE’ framework, is shown
below:
1. Types of HRD Systems
Career system
Work system
Development system
Self-renewal system
Culture system
2.Types of HRD Systems
• Career system: This system focuses on attracting new employees and retaining the existing
ones so that an organisation can continuously achieve its performance.
• Work system: HRD ensures that the employees are attracted and retained effectively so that
the organisational objectives are met.
• Development system: The business environment changes quite rapidly and organisations
need to adapt to changes to stay competitive in the market.
3.Types of HRD Systems
• Self-renewal system: An organisation needs to revive its business and products and services
from time to time so that it can withstand the increasing challenges of the changing business
environment.
• Culture system: Employees in an organisation belong to different cultural backgrounds and
have different mind-sets. HRD focuses on creating a work culture where employees can work
with a sense of togetherness to achieve organisational goals and objectives.
1. Effectiveness of HRD
• Effective linkage: An HRD program can be effective if all HRD functions, such as
performance appraisal, training, and career development are aligned with each other.
• Clear objectives: An HRD program must follow a set of clearly defined objectives in order to
be effective. It is essential that HRD objectives must be defined based on the needs of
employees, organisational requirements, and changes in the external and internal business
environment.
• Effective communication: Communication is a key factor in determining the effectiveness of
an HRD program.
• Feedback from employees: An effective HRD program always has room for feedback so that
the loopholes of the program can be identified and corrected.
2. Effectiveness of HRD
• Coal India Limited (CIL) has an effective HRD program in place which focusses on
developing existing human resources.
• The main objective of this program is to enhance the skills and competencies of employees by
providing training in different areas like technical, management, etc. for their future growth
and development.
• The HRD program at CIL focuses on recent technological changes so that employees are
comfortable using the latest technology necessary to fulfil high production demands.
• Thus, in order to achieve high employee performance and productivity, CIL integrates its
annual HRD plan with the HRD programs in all its 26 training centres across the country.
Let’s Sum Up
• Human Resource Development (HRD) is a framework used by organisations to help

employees develop their knowledge, skills, and abilities so that they can perform efficiently
in their job.
• HRD provides employees various opportunities, such as training and development, career
planning, coaching and mentoring, performance management, etc.
• An HRD program can be effective if all HRD functions, such as performance appraisal,
training, and career development are aligned with each other.
• Communication is a key factor in determining the effectiveness of an HRD program.
Post Your Query
Chapter 9: Career Planning
and Succession Planning
Chapter Index

From-To
2 Topic 1 Definition of Career 179-183
3 Topic 2 Career Planning 184-191
4 Topic 3 Succession Planning 192-196

• Define the term career
• Explain various career stages
• List various career anchors
• Discuss the concept of career planning
• Explain the concept of succession planning
1. Definition of Career
• A career is a sequence of jobs taken up by an individual throughout his/her lifetime.

• It encompasses formal education, practical training, and occupational experiences received by
the individual.
• In other words, career can be defined as changes that take place in the work attitude of
individuals when they pass through the different stages of life. This is the subjective view of
the word career.
• However, there is an objective view of career as well. According to the objective view, an
individual’s career is composed of a sequence of work-related activities that gives meaning
and stability to his/her life.
Career Stages
Exploratory stage
Establishment stage
Maintenance stage
Decline stage
1. Exploratory stage: This is the pre-employment stage that takes place before individuals get
into any job. This stage generally ends in early and mid-twenties for most people. This stage
is crucial for individuals as it is the period when individuals explore and analyse their goals
and objectives and prepare their mind-sets accordingly. It is about self-exploration where
individuals identify their goals and interests. Career objectives in this stage are often
influenced by parents, teachers, and peer groups.
2. Establishment stage: This stage normally begins when individuals join their first job. They
make mistakes and are full of anxiety about their professional life. As it is the first job
experience for individuals, they strive to establish a position in the society and get recognised
for their work.
3. Maintenance stage: After individuals enter into their professional life, they strive to
maintain stability in their jobs. Thus, this stage is referred to as the maintenance stage.
4. Decline stage: This is the last stage of individuals’ career where they retire and take leave
from their organisations to provide job opportunities to successors. Irrespective of having a
glorified career or dismissal one, this stage comes to every individual. Different people react
differently to this stage. For some, it is the end of creativity and being active, while others
welcome it as a relief from work pressure and stress. Many people also consider this stage as
an opportunity to socialise with their friends and family members.
Career Anchors
General managerial
Technical/functional
Security/stability
Entrepreneurial creativity
Service/dedication to a cause
Pure challenge
Autonomy/independence
Lifestyle
1. Career Planning
• People always come across a phase when they feel overwhelmed by a job or career they are
into.
• In such a case, they generally fail to plan the changes they need to make for their career
growth and development.
• Career planning is a practice or exercise where individuals identify their work related
objectives, strengths, and weaknesses so that they can select an occupation or profession of
their choice.
• It is a structured process of analysing the skills and interests of individuals, deciding their
career goals, and formulating strategies to achieve them.
2. Career Planning
The main aim of career planning is to enable individuals to making right career choices.
However, career planning is influenced by various factors. Some of these factors are explained as
follows:
• Skills and abilities: The skills and abilities of an individual play an important role in his/her
career planning. The chosen education and training program must be in sync with the actual
skills and capabilities of an individual. A lack of sync between the education and actual skills
may result in making wrong career choices.
3. Career Planning
• Values and interests: Career planning is highly influenced with one’s areas of interests.
Different individuals have different areas of interests based on which they look for suitable
career options. Any mismatch between the areas of interests and career options largely affect
the career planning process.
• Salary expectations: Individuals have certain expectations regarding remunerations they
would be getting in exchange of their services. For some individuals, remuneration may be a
deciding factor to choose a particular career option, while for others; it may one of the factors
in selecting the career option. Thus, career planning must address the salary expectations of
individuals.
4. Career Planning
Objectives of Career Planning

• Career planning helps in attracting and retaining skillful and talented employees. This is
because organisations today do not offer a job but a career which is of greater interest for
people.
• It boosts employees’ motivation and morale. This reduces employee turnover as motivated
employees tend to stay longer with the organisation.
• A good career plan not only helps individuals in their career growth but also helps the
organisation in meeting its goals and objectives.
• When an organisation takes an interest in employees’ growth and development through career
planning, it increases job satisfaction among employees. This results in reducing absenteeism
of employees from work.
5. Career Planning
Process of Career Planning
Performing self-assessment
Identifying career choices and preferences
Aligning needs and opportunities
Formulating action plan
Evaluating the process

6. Career Planning
Merits and Demerits of Career Planning

The following are the merits of career planning:
• Career planning provides individuals with knowledge about available career opportunities and
their priorities.
• It aids individuals in making selection of their career, which is appropriate to their preferences
and scope of development.
• It helps an organisation in identifying a talented and competent pool of employees who can be
promoted to the next level in the organisation.
• It ensures employees of their future growth in the organisation. This makes employees to stay
in the organisation to enjoy their growth instead of switching to other jobs.
7. Career Planning
• It contributes towards the successful accomplishment of individual and organisational goals.

Demerits of career planning are as follows:
• Sometimes career growth is limited in an organisation, which makes career planning an
unrealistic process.
• Prejudice and interventions make systematic career planning a difficult process. For instance,
individuals are influenced by their peer groups instead of pursuing their own aspirations.
Similarly, in an organisation, sometimes promotions are the results of favouritism.
8. Career Planning
• Decline in career opportunities also affects career planning. The decline may occur because of
changes in internal and external business environment of an organisation. For example, with
the advent of computers, the career opportunities for clerks declined. The decline generally
results in career shifts.
• A lack of knowledge about one’s aspirations and interests leads to the mismatch of needs and
opportunities. This results in career complications.
1. Succession Planning
• Succession planning is a process of finding a successor for key positions in an organisation.

It aims at identifying and developing the existing people who have potential to fill key
positions in the organisation.
• A productive and successful succession planning ensures the availability of experienced
and capable employees in an organisation. In order to have an effective succession
planning, an organisation must approach succession planning as an integrated process that
aims at both organisational and individual development.
• Therefore, it can also be explained as a process of finding a replacement for key positions
of the organisation. This helps the organisation in generating greater revenues, improving
its market image, and achieving competitive advantage.
Objectives of Succession Planning

• To identify key positions in the organisation and evaluate the skills and abilities of employees
to fill such positions.
• To create immediate back-up plans for filling short-term vacancies.
• To give a quick response to organisational changes that may take place in the future.
• To develop employees through comprehensive training and performance management
programs.
• It facilitates individual career development in the organisation.
Process of Succession Planning
Developing
Identifying key Identifying the
succession
positions talent pool
strategies
Implementing
Evaluating the
succession
plan
strategies
Merits and Demerits of Succession Planning

The following are some merits of succession planning:
• It helps individuals in realising their career plans and aspirations in the organisation.
• Succession planning helps in developing a pool of qualified and experienced people within the
organisation.
• It identifies employees’ renewal needs so that employees can be prepared for future challenges
through required training and development programs.
• It enables successors to respond to rapid changes in the organisation.
Some of the demerits of succession planning are given as follows:

• It may lead to the appointment of wrong successors, which adversely affects organisational
growth and development.
• It may have the wrong timing of implementation when the organisation is still immature. This
will induce disharmony among employees leading to poor business growth.
Let’s Sum Up
• A career is a sequence of activities taken up by an individual throughout his/her work life in

terms of formal education, practical training, and job experience. This leads to changes in an
individual’s life making his/her life better.
• In order to have a good career, individuals must identify their objectives, strengths, and
weaknesses so that they can select the most suitable occupation or profession. This process of
self-assessment and career option selection is referred to as career planning.
• Just like career planning, an organisation prepares a replacement plan for its key positions.
The process of preparing such a plan is called succession planning. It prepares organisations
to fill the vacancies of their key positions.
Post Your Query
Chapter 10: Performance
Management
Chapter Index

From-To
2 Topic 1 Concept of Performance Managemen 203-206

t
3 Topic 2 Meaning of Performance Appraisal 207-217
4 Topic 3 Concept of Potential Appraisal 218-220

• Explain the concept of performance management
• Discuss the concept of performance appraisal
• List the steps involved in performance appraisal
• Discuss the concept of potential appraisal
• Describe the techniques of potential appraisal
1. Concept of Performance Management
• Performance management is a process that comprises a set of activities performed to ensure

that organisational goals are met successfully.
• The term performance management was coined by Dr. Aubrey Daniels in the late 1970s to
describe a technology used for managing the two critical elements of performance, behaviour
and results.
• Performance management is of utmost importance for an organisation in order to assess its
progress.
• In the context of HRM, performance management aims at improving, developing, and
managing employees’ performance and aligning them with organisational objectives.
Nature of Performance Management

Performance management helps organisations to evaluate their performance from time to time and
ensure better productivity. An effective performance management has the following benefits:
• Performance management works as a tool that helps in developing employee performance
• It identifies training and development needs of employees to ensure skilled, competent, and
motivated workforce.
• Performance management helps an organisation in setting goals, developing human resource,
and rewarding employee performance.
Significance of Performance Management
Performance management helps in encouraging employees to participate in the decision

making process.
It helps in establishing meaningful work targets for employees
It sets performance standards based on which the evaluation is done
It carries out a career development program for employees

Performance Management Systems in India

• The concept of performance management was introduced in India in 1940 by some well-
known private sector organisations like Union Carbide, Tata Iron and Steel Company, Bata,
and Voltas.
• In the late 1970s and early 1980s, many Indian organisations started using performance
appraisal to evaluate employee behaviour and develop employee capabilities.
• By 2004, multiple organisations, such as Infosys, Titan, Tata Steel, Bharat Petroleum, Dr.
Reddy’s Lab, and the National Stock Exchange started using some of the most sophisticated
forms of performance management systems.
1. Meaning of Performance Appraisal
• Employees are the most important and valuable sources for an organisation’s growth and
progress. Therefore, an organisation needs to motivate and reward its employees from time to
time in order to ensure their continuous performance.
• Performance appraisal is one such mechanism that not only helps an organisation to
understand the abilities and competencies of its employees but also motivates them for
improving their current performance level.
• It is a process of analysing the past performance and future potential of employees.
• The performance of employees can be analysed on the basis of various parameters, such as
hard work, quantity of output produced, the quality of work done, responsibilities undertaken,
initiatives, regularity, and punctuality.
Objectives of Performance Appraisal

• Performance appraisal helps in determining the training and development needs of employees
by assessing performance gaps.
• It focuses on developing new skills of employees so that they may hold various key positions
in the future.
• Performance appraisal provides an effective feedback to employees, which, in turn, helps them
to improve their performance.
• It helps an organisation to decide the compensation and incentives to be paid to its employees.
• Performance appraisal helps in reducing internal conflicts and grievances among employees.
Process of Performance Appraisal

Establishing performance standards
Communicating the standards
Determining personnel responsible for conducting performance appraisal
Measuring the performance
Communicating the results of appraisal to the concerned employees
Taking corrective actions

Methods of Performance Appraisal
Performance appraisal
methods
Future-oriented
Past-oriented methods
methods
Past-oriented methods: These are the oldest techniques of performance appraisal. Past-oriented
methods are based on a trait-oriented approach wherein the performance of employees is evaluated
on the basis of established standards of traits or qualities of employees. Some of the important
past-oriented methods are:
• Confidential report: In this method, a descriptive report is prepared by the immediate
reporting authority of the employee being appraised, usually at the end of the year
• Essay method: In this method, an appraiser writes an essay or a short narration about the
performance of the employee being appraised.
• Critical incidents method: In this method, an employee is appraised by taking the job-related
critical incidents and the related behaviour of employees into account.
• Checklist method: In this method, the appraiser provides a rating to the employee about
his/her behaviour at the workplace.
• Forced choice method: This method requires the appraiser to provide rating to an employee
from a set of descriptive statements.
• Paired comparison method: Implies It is a method in which the appraiser compares the
performance of each employee with the other employees, one at a time.
• Forced distribution method: Assumes that In this method, the performance level of
employees is matched with a normal statistical distribution.
Future-oriented methods: With rapid changes in technology, appraisal methods in an

organisation have also got modified. Nowadays, organisations use various future-oriented
appraisal methods. Some of the future-oriented methods are:
• Human resource accounting method: In this method, the relative worth of an employee is
determined in terms of money.
• Management by Objectives (MBO) method: This is one of the commonly used performance
appraisal approach in which employees are asked to establish goals for themselves in
assistance with their superiors.
• Assessment centre method: In this approach, employees are asked to complete the tests and
exercises related to the activities they might encounter on their jobs.
• 360-degree appraisal method: This method provides an organisation with a more
comprehensive picture of an employee’s performance. In this method, the organisation
appraises an employee based on the feedback received from various sources, such as
superiors, subordinates, colleagues and the employee himself/herself.
• Behaviourally Anchored Rating Scales (BARS): This method Rrepresents the combination
of traditional rating scales and critical incident methods.
Benefits of Performance Appraisal

Human Resource Planning (HRP)
Personnel decisions
Training and development programs
Feedback and self-development
Employee motivation
Career planning and development
Compensation and reward

Problems of Performance Appraisal
Design and implementation problems
Biasness
Resistance
Incompatible work environment
The leniency biasness
Recency effect
International Performance Appraisal

• In the global scenario, performance appraisal depends a lot on both inter-cultural and intra-
cultural differences and interpretation of the term ‘performance’ by employees working in
various countries.
• Performance is viewed differently in different cultures.
• At a global level, performance appraisal is done based on parameters, such as profits, return
on investment, cash flows, productivity, sales per employee, punctuality, and rate of customer
complaints etc.
• Some MNCs also use qualitative parameters, such as innovativeness, leadership, motivation,
judgment, adaptability, etc. for performance appraisal.
1. Concept of Potential Appraisal
• Potential appraisal is a holistic approach to study the qualities of an employee in terms of

personality, character and intellect.
• It helps an organisation in identifying the potential of employees for higher job positions and
larger responsibilities.
• Potential appraisal is a technique that informs employees about various aspects like succession
plans, future prospects, training and development needs, improvement areas, and so on.
• The potential appraisal process involves collecting information on employees’ performance in
their previous jobs and capabilities utilised, such as ability to take initiatives, creativity level,
and risk taking ability.
Purpose of Potential Appraisal

• Potential appraisal evaluates the capacities of employees, which, in turn, helps employees to
perform efficiently.
• It assesses an organisation’s ability to develop future managers.
• It assesses the analytical power of employees, which indicates the ability to analyse problems
and examine them critically.
• It builds the creative imagination of employees.
• Potential appraisal develops the sense of reality among employees, which refers to an
individual’s way of interpreting a situation.
• It helps in developing leadership skills among employees, which refer to abilities to direct,
control, and harmonise with people.
Techniques of Potential Appraisal
Self-appraisal
Psychometric tests
Management games
Leadership exercises
Let’s Sum Up
• Performance management is a process that comprises a set of activities performed to ensure

that organisational goals are met successfully.
• Performance appraisal is a process of analysing the past performance and future potential of
employees.
• Some of the important past-oriented methods include confidential report, essay method, critical
incidents method, and checklist method.
• Some of the important future-oriented methods include human resource accounting method,
assessment centre method, management by objectives (MBO) method, and 360-degree
appraisal method.
• Potential appraisal is a holistic approach to study the qualities of an employee in terms of

personality, character and intellect.
Post Your Query
Chapter 11: Compensation
and Rewards ECONOMICS
Chapter Index

From-To
2 Topic 1 Concept of Compensation 227-235
Fringe Benefits and Fringe Benefit Ta

3 Topic 2 x (FBT) 236
Reward Management
4 Topic 3 237-239
Reward Systems
5 Topic 4 240-242
Recognition
6 Topic 5 243-244
Let’s Sum up
7 245
• Define the concept of compensation
• Discuss fringe benefits and fringe benefit tax
• Describe reward management
• Explain reward systems
• Discuss the concept of recognition
1. Concept of Compensation
Compensation includes not only salary and wages, but also the direct and indirect rewards and
benefits. The following are the different forms of compensation:
• Direct financial compensation: It mainly includes pay received by an employee in the form
of wages, salaries, bonuses, and commissions at regular intervals.
• Indirect financial compensation: It mainly includes financial rewards that are not a part of
direct compensation, such as benefits, leaves, retirement plans, and educational facilities.
• Non-financial compensation: It mainly includes opportunities offered by an organisation to
employees for career development and advancement. It also includes opportunities for
recognition as well as the work environment and conditions.
Significance of Compensation
The following points explain the significance of compensation in an organisation:
• Facilitating recruitment and selection
• Retaining employees
• Boosting employee motivation
• Eliminating pay discrimination
• Defining job hierarchies
Components of Compensation
Basic pay:
wages and salary
Allowances:
Base compensation
TA, DA, HRA
Direct incentives:
Compensation commission, bonus, long terms incentives
Fringe benefits:
retirement, safety, security benefits
Supplementary
compensation
Indirect incentives:
perquisites, employee stock options
Theories of Compensation
The two most important theories that have been developed are reinforcement theory and equity
theory.
• Reinforcement Theory: The reinforcement theory was propounded by B.F Skinner (a
behaviourist) and is based on the fact that the behaviour can be changed by repeating any
internal or external stimulus.
• Equity theory: John Stacey Adams (1963) propounded the equity theory wherein “every
employee wants to arrive at equity in the rewards provided to him or her”. This theory holds
the meaning of equity in terms of the perception of an employee not the employer.
Industry Compensation
• Organisations sometimes need to compare their compensation structure with that of other
organisations in the industry in order to gauge whether their employees are overpaid or
underpaid. For this, organisations need to consider data on the labour market, labour demand
and supply, and other data relevant to labour law.
• Apart from this, industry compensation empowers employees with industrial benchmarking
standards to compare their compensation with various industry do mains and functional
groups both in their native countries and global markets.
• Industry compensation provides relevant information on salary trends, working conditions,
minimum wages and other work-related issues to employees, employers, and trade unions
Executive Compensation
Executive compensation are the monetary and non-monetary benefits given to employees working
at upper level management of an organisation. The main components of executive compensations
are:
Cash compensation
Long-term incentive plans
Short-term incentive plans
Executive benefits
Perks
Compensation Administration
Compensation administration is a systematic process that involves a number of steps :

Job analysis
Job evaluation
Pay structure development
Wage and salary survey
Job pricing
Compensation revision and control

International Compensation
International compensation can be defined as the combination of monetary and non-monetary
rewards that are offered to expatriates (professional or skilled workers living in a foreign country)
for their performance. Components of international compensation are:
• Allowances
• Taxes
• Spousal assistance
Concept of Remuneration
Remuneration is payment made to an employee in exchange for work or services he/she
performed. It includes both wages and salary and other benefits. It is influenced by various factors.
• External Factors: These are uncontrollable factors which exist outside an organisation.
• Internal Factors: These are the factors that exist within the organisation. Therefore, these
factors can be controlled.
Fringe Benefits and Fringe Benefit Tax (FBT)
Fringe benefits are designed based on the following aspects:

• Statutory requirements: These requirements make an organisation legally answerable for its
actions.
• Security: It refers to a feeling of safety and fulfilment of social needs among employees
• Hazards of industrial life: It refers to dangers associated with working in a specific industry.
• Competition: It refers to the business rivalry between competitors
Organisations also have to pay taxes in lieu of the benefits that they provide to their employees.
These taxes are known as fringe benefit taxes (FBT). In the year 2009, FBT was abolished by the
government of India as a part of 2009-10 budget.
1. Reward Management
• Rewards can be defined as a payment made to employees in return of their contribution. These
rewards are used by organisations to boost the motivation of employees so that they keep
performing to the best of their capabilities
• A process of developing reward strategies and putting them into practice is called reward
management.
• According to Armstrong (2010), “Reward management is known as the strategy, policies and
procedures necessary to guarantee that the value of people and their contribution for the
organization is recognized and rewarded”.
Need for Rewards

The following points explain the need for rewards in an organisation:
• To enhance the level of productivity in the organisation.
• To retain employees for a long period.
• To create a healthy work environment.
• To minimise the rate of employee turnover
Intrinsic and Extrinsic Rewards

• Intrinsic rewards: These are intangible rewards offered to employees for their intrinsic
fulfilment; thereby motivating them to perform better. For example, providing authority to
employees for making decisions would make them feel motivated to show their capabilities
and accept challenges.
• Extrinsic rewards: These are tangible rewards provided to employees after they
accomplish a given task. These rewards are mainly related to monetary benefits provided to
employees in the form of bonus, promotion, and other benefits, after they complete a
particular project or assignment within the stipulated time.
1. Reward Systems
• A reward system comprises standards, rules, and procedures associated with the allocation of
benefits or rewards to employees with an aim to gain their commitment towards organisational
goals.
• Reward systems are developed in organisations to recognise the best performers among all
employees.
• The main components of reward systems are base salary, incentives (both short term and long
term) and other benefits (for example, pension programs, medical programs).
2. Reward Systems
Types of Rewards Systems

There are different ways of rewarding employees containing through monetary and non-monetary
benefits.
Types of reward system
Monetary reward system
Non-monetary reward
system
Additional reward
system
3. Reward Systems
Effectiveness of Reward Systems

Reward systems are said to be effective if they motivate employees to use the best of their
capabilities to meet organisational goals and objectives. An effective reward system focuses on:
• Boosting the morale of employees
• Improving the performance of employees
• Developing positive attitude among employees towards work
• Increasing overall productivity
• Reducing employee turnover
1. Recognition
Recognition is a measure adopted by organisations to appreciate the efforts and performance of

employees. In other words, recognition is acknowledgement of an employee’s performance. While
designing a reward program, the following are some of the key points that must be considered:
• Organisational goals to be supported by the reward program should be identified.
• The desired employee performance or behaviour to be rewarded should be determined.
• The criteria for evaluating the performance or behaviour should be defined.
• Appropriate recognition measures should be established.
• The recognition program should be effectively communicated to employees
2. Recognition
Some commonly used recognition programs are

• Structured recognition programs: These programs include regular recognition events such
as employee of the month or year recognition.
• Informal recognition programs: These are spontaneous recognition programs that include
offering privileges, such as working from home.
• Symbolic recognition programs: Many a times organisations offer small gifts, such as
plaques or coffee mugs with inscriptions as a token of sincere appreciation for hard work.
Let’s Sum Up
• Compensation can be defined as a pay package that employees receive in exchange of

services rendered by them to an organisation.
• Compensation helps an organisation in various ways, such as facilitating recruitment and
selection, retaining employees, and eliminating pay discrimination.
• For the adequate management of compensation, a segment of HRM, also known as
compensation administration is required. Compensation administration is the management of
compensation costs incurred by an organisation.
• Rewards are payment made to employees in return of their contribution used by organisations
to boost their motivation.
• Recognition is a measure adopted by organisations to appreciate the efforts and performance
of employees.
Post Your Query
Chapter 12: HR Audit and
Accounting
Chapter Index

From-To
2 Topic 1 HR Audit 251-252
HR Accounting
3 Topic 2 253-254
HR Information Systems (HRIS)

4 Topic 3 255-258
Let’s Sum Up
5 259
• Explain the concept of HR audit
• Discuss the process of HR audit
• Explain the concept of HR accounting
• Discuss the methods of HR accounting
• Explain the concept of HRIS
• List the components of HRIS
1. HR Audit
• The term audit can be defined as an unbiased examination and verification of an organisation’s
financial statements, employee records, etc. to determine their accuracy and outline any issues
that need to be addressed.
• HR audit is a systematic process of examining the policies, procedures, practices, structure,
strategies, employee documents, etc. with respect to an organisation’s HRM function.
• It aims to evaluate the strengths, weaknesses, and developmental needs of employees with a
view to enhance organisational performance.
• It helps an organisation to determine the effectiveness of its HRM function.
• HR audit plays a crucial role in an organisation as it helps managers to take decisions on
current HR problems so that overall productivity is not affected.
2. HR Audit
Process of HR Audit
Determining the objectives of the HR Audit
Gathering the background data
Formulating the audit plan
Developing the audit report
Acting based on the report

1. HR Accounting
• Human Resource Accounting (HRA) is defined as a system of identifying, collecting and

reporting data on investments in human assets.
• In other words, HRA is a future approach that reflects the potential of human resource in
monetary terms.
• HRA acts as an important tool to human asset control and provides information to an
organisation whether the asset is appreciated, depleted, or conserved.
2. HR Accounting
Methods of HR Accounting
Methods of HRA
Cost-based method Value-based method

1. HR Information Systems (HRIS)
• Human Resource Information System (HRIS) is a system designed to provide necessary

information for effective management of human resource.
• In other words, HRIS is an online database system that helps in managing information related
to all employees of an organisation at one place. This information can be related to employees’
salary structure, appraisal, and leaves, and so on.
• HRIS collects, stores, processes, generates, and disseminates human resource information for
effective business decision making.
• It provides information on various HR policies formulated by the organisation to HR
personnel as well as employees.
Components of HRIS
• Input: This component enters employee data into HRIS. The processes and procedures
needed for data collection are initially established. Once the data is collected, it is entered into
the system in a coded form. Next, the data is validated using validation tables, which can be
changed or updated whenever needed.
• Data maintenance: This component of HRIS updates the data which is stored in the storage
device. Although new data is included in the system, the old data is also kept as a backup.
• Output: HR managers tend to be more interested in this component of HRIS as essential
information and reports of human resources are generated.
Types of HRIS
Types of HRIS
Operational HRIS Tactical HRIS Strategic HRIS

Application of HRIS in HR Management

• Job description: HRIS produces reports describing jobs according to employee specifications
and other information.
• Training and development: HRIS provides information on training courses, location,

timings, details of the trainer, list of trainees, competency levels of trainees, etc.
• Performance appraisal: HRIS enables managers to conduct real-time performance appraisal

by filling online forms, taking feedback from various parties on employees’ performance, etc.
• Retention strategy: HRIS provides information on employees’ performance, attitudes,

behaviour, etc. as reflected in survey sheets and online reports.
Let’s Sum Up
• HR audit is a systematic process of examining the policies, procedures, practices, structure,

strategies, employee documents, etc. with respect to an organisation’s HRM function.
• HR audit plays a crucial role in an organisation as it helps managers to take decisions on
current HR problems so that overall productivity is not affected.
• Human Resource Accounting (HRA) is defined as a system of identifying, collecting and
reporting data on investments in human assets.
• HRA acts as an important tool to human asset control and provides information to an
organisation whether the asset is appreciated, depleted, or conserved.
• Human Resource Information System (HRIS) is a system designed to provide necessary
information for effective management of human resource.
Post Your Query

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Essentials of HRM

S. No Reference No Particulars Slide

2 Chapter 2 Human Resource Planning 18-41

7 Chapter 7 Training and Development 128-151

2 Topic 1 Human Resource Management (HRM 7-10

3 Topic 2 Functions of HRM 11

4 Topic 3 Challenges in HRM 12

5 Topic 4 Personnel Management 13

6 Topic 5 Strategic Management and HRM 14

• Human resource is a group of individuals that forms the workforce of an organisation. It is

Human resource Selection and

Training and Organisational Compensation and

Structure of the HR Department

Recruitment and selection

Training and development

Employee welfare and motivation

Employee acquisition and

Strategic human resource management (SHRM) is a framework that defines an organisation’s

• HRM is a process of attaining, developing, and retaining employees in an organisation.

2 Topic 1 Human Resource Planning 21-23

3 Topic 2 Process of Human Resource Planning 24-25

4 Topic 3 Techniques of HR Demand Forecasting 26-34

5 Topic 4 Benefits of Human Resource Planning 35-36

6 Topic 5 Challenges in Human Resource Planning 37-38

Need for Human Resource Planning

Objectives of Human Resource Planning

Reviewing business goals

Scanning the environment

1. Reviewing business goals: Before planning human resource requirements, HR personnel

Qualitative methods Quantitative methods

• Expert forecasts: Sometimes HR personnel seek inputs from professional HR experts

Trend analysis Ratio trend Work study

Factors affecting HR Demand Forecasting

External business Internal business

• External business environment: The external business environment of an organisation

• A lack of proper coordination and cooperation between different departments of an

S. No Reference No Particulars Slide

2 Topic 1 Job Analysis 45-49

3 Topic 2 Job Description 50-52

4 Topic 3 Job Specification 53-55

5 Topic 4 Job Design 56-57

6 Topic 5 Approaches to Job Design 58-62

• A job may be defined as a collection of different tasks, duties, and responsibilities to be

Scope of Job Analysis

Human Resource Planning (HRP)

Recruitment and selection

Training and development

Compensation and benefits

Process of Job Analysis

Information Collection for Job Analysis

Methods for Collecting Job Analysis Data

Need and Objectives of Job Description

Process of Writing Job Description

Need and Objectives of Job Specification

Features of Job Specification

Emotional and social specifications

Process of Job Design

Assessing existing work practices

Revaluating job design

S. No Reference No Particulars Slide

2 Topic 1 Recruitment 69-77

3 Topic 2 Selection 78-84

4 Topic 3 Outsourcing 85-86

Meaning and Definition