HRM First Half

BALAJI INSTITUTE OF
I.T AND MANAGEMENT

KADAPA
HUMAN RESOURCE MANAGEMENT
(17E00201)
ICET CODE: BIMK
1st Internal Exam Syllabus
ALSO DOWLOAD AT http://www.bimkadapa.in/materials.html
Name of the Faculty : T.HIMMAT
Units covered : 1 to 2.5 Units (1st Internal

Syllabus)
E-Mail Id : [email protected]
SEMESTER-II HUMAN RESOURCE MANAGEMENT
(17E00201) HUMAN RESOURCE MANAGEMENT

The objective of the course is to provide basic knowledge of functional area of Human
Resource Management. This will be the prerequisite for enabling students to take any HRM stream
electives offered in third and fourth semesters.
1. Introduction:- Meaning of HR and HRM, Nature & Scope of HRM, Functions of HRM,
Role and Objectives of HRM, Personnel Management, Policies and Strategies of HRM.
2. Designing and Developing HR systems:- Human Resource Planning, Job Design, Job
Analysis, Job Evaluation, Job Enlargement, Job Enrichment, Job Rotation, Recruitment
& Selection, Placement, Promotion & Transfer.
3. Compensation Management:- Introduction, objectives of wages and salaries
administration, influencing factors for determining compensation- Monetary and non
monetary benefits.
4. Human Resource Development:- Concepts, Development Function, Training and
Development, Performance Appraisal & Career Planning and Development.
5. Recent Trends in HRM: Outsourcing, Work Life Balance, Quality Circles and Total
Quality Management.
Textbooks:
 Personnel and Human Resource Management – Text and cases, P. Subbarao, Himalaya.
 Human Resource Management, Noe A.Raymond, John Hollenbeck, Barry Gerhart and
Patrick Wright, Tata McGraw Hill.
References
 Human Resource Management, Aswathappa, 4th Edition, TMH 2006
 Human Resource Mangement, Ian Beardwell & Len Holden-Macmillan India Ltd.
 Managing Human Resources: Productivity, quality of work life, profits- Wayne F.
 Cascio TMH.
 Strategies HRM by Rajeev Lochan Dhar, Excel Books.
 Human Resource Management, Text and Cases, VSP Rao, Excel Books 2006.
UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 1

UNIT-1
INTRODUCTION
BRIEF SUMMERY OF THIS UNIT

Human: refers to the skilled workforce in an organization.
Resource: refers to limited availability or scarce.
Management: refers how to optimize and make best use of such limited or scarce
resource, to meet the organization goals and objectives.
 Human resources means the people. It includes all activities starting from
manpower planning till employee leaves the organization.
 HRM strategic plans must build on the firm's strengths.
 Main objective/aim of hrm function is increasing employees’ job satisfaction
and self actualization.
 The HR department must be a proactive.
 The functions of HRM can vary widely from one organization to another,
depending upon its nature, size, and objectives.
An organization is made up of 4 resources
◦Men
◦Material
◦Money Non Living
Machinery
It is the human that make use of non human resources.
Attract and retain talent

Train people for challenging roles
Develop skills and competencies
Promote team spirit
GOOD HR PRACTICES HELP Develop loyalty and commitment
HEHELPHRM Increase productivity and profits
Improve job satisfaction
Enhance standard of living

1. MEANING OF HR & HRM:-
1.1 MEANING OF HR:-

 According to Leon C.megginson, HRM means the total knowledge skills
creative, abilities, talents, competencies & aptitudes of an organization’s
workforce.
 The term human resource is a Source like any other natural resource.
 Human resources are also regarded as human factor, human assets, human
capital etc.
 The term human resource had been used widely in the recent, past.
 People are economic beings as they need money in exchange of their
Resources. people can’t live in isolation.
 They prefer to work in groups &terms.
physiological &
psychological person
Human mind & hard

Spiritual Social person
skills,
person
Soft skills
Economic
person
1.2 MEANING OF HRM:-
Human resource management is like Labor management, employee-employer

relations, Industrial relations, human resource administration etc.
Human resource management means employing people, developing them, utilize
their services according to organizational requirements.
Human resource management is a continuous and never ending process.
HRM is a responsibility at all line mangers and a function of staff managers in an
organization.

The history of HRM in India dates back to the early 1980s when MR.UDAI PAREEK
& MR.T.V.RAO championed the cause of the HRM movement.
1.3DEFINITION OF HRM:-
“Human Resource Management is the set of organizational activities directed at
attracting, developing and maintaining an effective workforce.”
- Ricky W. Griffin
Example of HRM:
2.Nature & Scope of HRM :-
2.1 Nature of HRM
 Human resources management of the complex & dynamic components

(resources) of all the people (owner (or) employed directly (or) directly
related) at all levels of organizations in a social setup.
 Managing human resources is a challenging task compared to all other
resources like money & materials.
 HRM consists of people-related functions as hiring, training &
Development, compensation, welfare etc.
 HRM involves Management principles & functions to doables
(feasibility/possible) and deliverables of people management.
 HRM makes alignment of HR policies & practices, with strategies.

 The HR executive helps formulate & implement business strategies.

A.A part of Management Discipline:
HRM is a part of management discipline. It is not a discipline in itself but is only

a field of study.
HRM, being a part of management process, draws heavily from management
concepts, principles and techniques and apply these in the management of
human resources
B.Concerned with People:
HRM is all about people at work, both as individuals and groups. It tries to
put people on assigned job in order to produce goods results.
The resultant gains are used to reward people and motivate them towards
further improvement is productivity.
C.Development Oriented:
HRM intends to develop the full potential of employees. The reward structure
is turned to the needs of employees.
Training is provided to improve the skill of employees to fulfill the organization
goals/ requirements.
D. Continuous Process:
HRM is not a one short deal. It cannot be practiced only one hour each day or
one day a week.
It requires constant alertness and awareness of human relations and their
importance in every day operations.

2.SCOPE OF HRM:-
1.Personal Aspect:-
i. This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training & development, incentives etc.
ii. The overall objective is individual growth, development and effectiveness
which indirectly contribute to organizational development
2.Welfare aspect:-
This includes a wide range of responsibilities and services such as safety services,
health services, welfare funds, etc.
It also covers appointment of safety officers, eliminating workplace hazards
(Problems), support by top management, job safety, safeguarding machinery,
cleanliness, proper ventilation and lighting, sanitation etc.
It also take care of canteen facilities, crèches, rest and lunch rooms, housing,
transport, medical assistance, education, etc.

3.Industrial relations aspect :-

 It needs careful interactions with labor or employee unions, addressing their
grievances and settling the disputes effectively, to maintain peace and
harmony in the organization.
 Maintaining co-ordinal relations with the union members. with employer-
employee, employee- employee, This will help the organization to coordinate
with one another for smooth working.
3.Functions of HRM :-
The functions HRM can be broadly classified into two categories like.
I.Managerial Functions II. Operative Functions
I.Managerial Functions
2. Organizing
Managerial
1. Planning 3.Directing
Functions
4. Controlling
A. Planning :-
It is pre-determined course of action.
It also forecasting of human resource needs, Changing values, attitudes &
behaviors of employees and their impact on organization.
Planning is necessary to determine the goals of the organizations & lay down
policies & procedures to reach the goals.
It is deciding in advance “what to do, when to do, how to do and who will do”.

Planning is an ongoing step and can be highly specialized based on

organizational goals, division goals, departmental goals and team goals.
Both long-term and short-term plans are necessary to achieve goals.
Planning is a part of the activities of all managers.
2.Organizing:-
Complex relationships exist between the specialized departments & the
general departments, top managers are seeking the advice of human resource
manager.
Organizing is the process of linking and arranging activities in a sequence.
Grouping of personnel activity into functions or positions.
Delegating authority according to the tasks assigned and responsibilities
involved. Coordinating activities of different employees
By organizing properly the effectiveness of repetition and duplication of the
activities is avoided.
3. Directing:-
Direction is an important managerial function in building sound industrial &
human relations besides securing employee contributions.
Human resource management function should also be co-ordinate with other
functions i.e. 3M’S (material, machine & money).
Direction is the key to achieve required goal.Directing motivates the
employees to perform their responsibilities to reach Organizational goals.To
reach / attainment of organizational goals is possible through only effective
co-operation of employees.
Thus, direction is an important managerial function in securing employees
contribution.
4 controlling:-
Controlling also involves checking, verifying & companies of the actual with
the plans, identifications of deviations.
It also involves appraisals, audit, statistics, etc.
Action & operation are adjusted to predetermined plans & standard through
control.Controlling helps the personal manager to evaluate the control the
performance of the personnel department in terms of various operative
functions.

II Operative Functions:-
The operative functions of human resource management are related to
specified activities of human resource management.
A.EMPLOYMENT:-
Human resource planning Recruitment Selection placement
1.Human Resource Planning :-

It involves Estimation of present & future requirements and
supply of human resources based on objectives and long range plans of the
organization.Human resource is the most important asset of an organization.
Human resources planning are the important managerial function.
HR planning involves choosing and placing the right person at the right job
and at the right time.
1.2The objectives of human resource planning are to
1. Ensure adequate supply of manpower as and when required.
2. Ensure proper use of existing human resources in the organization.
3. Forecast future requirements of human resources with different levels of
skills.
4. Control the human resources already deployed in the organization.
2.Recruitment :-
(a) Creation/identification of new sources of applicants.
(b) Striking a balance between internal & external sources.
(c) Stimulating the candidates to apply for jobs in the organization.
(d) It is the process of searching for prospective employees and stimulating them
to apply for jobs in an organization.
3. Selection:-
a) Framing & developing applicants banks
b) Checking of reference, line manager’s decision testing techniques.
c) Formulating interviewing techniques & checking of reference.
d) It is the process of ascertaining the qualifications, experience, skill, knowledge
etc., of an applicant with a suitability to a job .Framing and developing
application blanks.
e) Creating and developing valid and reliable testing techniques.

f) Sending letters of appointment and rejection.
g) Employing the selected candidates who report for duty.
4. PLACEMENT:-
Placement is understood as assigning jobs to the selected candidates.
Thus, placement may include initial assignment of job to new employee, on
transfer, promotion of the present employees.
Placement involves assigning a specific job to each one of the selected candidates.
However, placement is not so simple as it looks. it involves striking a fit between
the requirements of a job and the qualifications of a candidate.
4.2Significance of placement
A. It improves employee morale.
B. It helps in reducing employee turnover.
C. It helps in reducing absenteeism.
D. It avoids misfit between the candidate and the job.
E. It helps the candidate to work as per the predetermined objectives of the
organization.
II HUMAN RESOURCE DEVELOPMENT:-
Performance management Training
1.PERFORMANCE MANAGEMENT :-
It is the systematic evaluation of individuals with respect to their performance.
Reviewing of reports & consolidation of reports. Evaluating the effectiveness of a
various programmes.Performance Management began around 60 years ago as a
source of income justification and was used to determine an employee's wage
based on performance. Performance management is a whole work system; It
begins when a job is defined as needed. It ends when an employee leaves your
organization.
2.TRAINING :-
Training is the act of increasing the knowledge and skill of an employee for doing
a particular job.Training plays a significant role in human resource management.

Wages’ refers to – Blue collar workers

Salary’ refers to – White collar workers
To prepare employees for more responsible positions.To bring about change in
attitudes of employees in all directionsTo absorb new skills & technology.Helpful for
the growth & improvement of employee's skills & knowledge.
III COMPENSATION / REMUNERATION:-
Wage & salary administration

Incentives
Social security measures
Fringe Benefits
1. WAGE & SALARY ADMINISTRATION :-
At the majority of companies and organizations, wages are usually dispersed to all
employees on a specific data.Conducting wage & salary survey.Determining wage &
salary rates based on various factors.
2.INCENTIVES :-
Incentives refer to rewards given to employees in monetary on non-monetary form. It
is a reward or encouragement to an employee for the hard work and efficiency at
job, assigned by the organization.
3.SOCIAL SECURITY MEASURES :-

Maternity benefits to common employees.Sickness benefits & medical
benefits.Dependent benefits, Disablement benefits.Retirement benefits like provident
fund, pension etc.
4.FRINGE BENEFITS:-
They are supplementary forms of compensation.
Fringe benefits are indirect compensation because they are extended as a condition
for employment.These benefits may be statutory or voluntary.
For example Provident funds are statutory, but the transportation facility is
voluntary.
These benefits help raise the living standards of the employees.
Housing facilities, canteen facilities.Recreational facilities, legal clinic, company
stores.Educational facilities to employees & children.Safety, health, medical &
welfare facilities.

4.ROLE & OBJECTIVES OF HRM:-
4.1Role Of HRM :-
Humans are the greatest resource of an organization; without them, all business
functions like communicating through all kinds of media, manage cash transaction
or dealing with customers could not be accomplished.Its role is to play an active
role in the process – a facilitator- to advocate all the members and ensure that
every employee’s voice and concerns are heard.Human resources are a
keyelement in the success or failure of monitoring programmes to meet their
objectives.To diagnose problems and determine appropriate solution particularly
in the human resource areas.HR Department also performs various functions of
employment, training & development etc. The HR manager control very tactfully
to win the confidence & co-operation of all line managers.HR professionals frame
different strategies for increasing employee commitment to the organization.
They advise managers on many issues related to employees.
A.Working Together
At all levels of the organization, managers and HR professionals work together to
develop employees' skills. In a flexible organization, employees are shifted around
to different business functions based on business priorities and employee
preferences.
For example, HR professionals advise managers and supervisors how to assign
employees to different roles in the organization, thereby helping the organization
adapt successfully to its environment.

B.Commitment Building
HR professionals also suggest strategies for increasing employee commitment to
the organization. This process begins with the recruiting process according to
their qualifications. Once hired, employees must be committed to their jobs and
feel challenged throughout the year by their manager.
C.Building Capacity
 An HRM team develop a competitive advantage, which involves building the
capacity of the company , to provide goods or services to their customers.
 To build the an effective human resources, private companies compete with
each other in a "war for talent."
 It's not just about hiring talent; this game is about keeping people and helping
them grow and stay committed over the long term.
ROLES & RESPONSIBLITIES OF HR MANAGER
4.2 OBJECTIVES OF HRM :-
1. Recruit, select, train and utilize motivate the workforce, to accomplish the
basic organizational goals.
2. Establish and maintain healthy organizational structure and working
relationships with all the members of the organization.
3. To integrate individual or groups within the organization.
4. Provide facilities and give opportunities to individual or group
development to make growth of the organization.

5. Maximize utilization of human resources in the achievement of

organizational goals.
6. Identify and satisfy individual and group needs by providing adequate and
equitable wages, incentives, employee benefits etc.for challenging work.
7. Maintain high employee’s morale and sound human relations by sustaining
and improving the various facilities.
8. Enhance and appreciate the human assets continuously by providing
training and development programs, performance appraisal.
9. Give employees chance to explore their leadership Skills
10. Provide facilities and conditions of work and creation of a favorable
atmosphere for maintaining the stability of employment.
5.Personnel management :-
Personnel management is concerned with people at work their relationship
with each other. It May be defined as a set of programmes functions and activities
designed to maximize both personal and organizational goals.
It involves the establishment of various policies to deal with employees to retain
them. It ensures that the organization and hires qualified imaginative and
competent peoples. It lays out the rules regarding working conditions designs
appropriates compensation plans and strengthens employer employee relations
Personal management is an extension to general management
According to the national institute of personnel management (NIPM) the three
important dimensions of personnel management include ,
Three dimensions of personnel management:-
Personnel Aspect:-
Recruitment, selection,
placement, training,
compensation
Personnel
––––––––– Welfare aspect:-
management
Working conditions,
facilities, amenities
Industrial relation Aspect:-
Union-management relation,
disputes settlements,
collection bargaining

DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HRM
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
1. Management of people employed Management of employees KSA
2. Employees are treated as economic Employees are treated as economic

man&Services are exchanged for salary, Social & Psychological man.
wages.
3. Employees are treated as cost centre Employees are treated as profit centre
4. Employees are mostly used for Employees are mostly used for multiple
organizational benefits. benefits.
5. Personnel mgmt is treated as secondary HRM is treated as strategic function
function
6. Actions are based on procedure Actions are based on business needs
7. Mgmt task are monitoring Tasks are nurturing
8. Decision is slow Facilities are speedy decisions
9. Communication is indirect Communication is direct
10. Behaviour is based on norms policies, Behaviour is based on values, mission

customs &practices.
11. Pay is based on job evaluation Pay is based on performance evaluation
12. Mgmt note is transactional Role is transformational leadership
13. It focuses on personnel administration, It focuses on acquisition, development,

employee welfare and labor relation motivation and maintenance of human
resources.
14. It deals with employees, their payroll It deals with the management of the work
and force, and contributes to an organization’s
Employment laws. success.
15. It is considered to be reactive It deals with developing personnel
management
Skills.
16. It focuses on administrating people or it is stated to be proactive
employees
17. It is independent from an organization The prime focus of HRM is to build a dynamic
culture

6.Policies and strategies of HRM:-

6.1Policies of HRM:-
 A polices is a plan of action it is statement of intention committing the
management to a genteel course at action
 Human resource polices guide the course of action intended to accomplish
human resource objectives
 Every organization should have human resources as well as the organization
 Further organization needs human resource policies in order to
 Consider the favorites and discrimination in treating the employees
HRpolicies allow an organization to be clear with employees on

a) The nature of the organization
b) What they should expect from the company
c) What the company expects of them
d) How policies and procedures work at your company
e) What is acceptable and unacceptable behavior
f) The consequences of unacceptable behavior
Identify the important policy issues for your organization. Consider:

(a) current laws,any collective agreements that affect your organization
(b) issues that address important concerns and support what your organization
represents
Analyze about each potential policy:
a) How have we handled this issue in the past?
b) Does the size of our workforce justify having a policy about this issue?
c) Are we willing to invest the time it takes to keep the policy up to date?
d) What do we hope to accomplish with this policy? What are the outcomes?
e) Drafting the policy, Purpose of the policy
f) Policy name, References
g) Effective date of the policy and date of any revisions
h) Approval status
i) Main policy statement
j) Definitions of any key concepts or terms used in the policy

6.2List of Human Resource Policies:

There are two different parts of human resource (hr) policies, first half of the human
resource policies and procedures are formulated on the basis of their source and
second half of the human resource policies are provided on the basis of their
description.
1. Originated policy:
The actual nature of working in relation with the originated policy is
handled and established by the senior manager, so that the senior manager can
understand all the necessary requirements of the employees.Moreover, these
senior managers provide guidelines to their subordinates to improve and develop
their professional career.
2. Implicit policy:
With the help of these policies, the managers can express their
intention in favour of the company. First of all the actual importance of these
implicit policies are implied because of the nature and behavior of the managers.
And that is why these implicit policies are also called and recognized by the name
of implied policies of the company.It is quite clear that these implicit policies are
recognized by the managers of the company.
3. Imposed policies:
The nature of working in the company doesn’t include only the
management of the company. The organizational structure of the company even
depends upon the governmental agencies of the company. It is one of the policies
which are made for the development of the staff and workers value in the
company.
4. Appealed policy:
It is not an actual policy; it is such kind of policies which are
requested by the managers of the company. The appealed policies can be
generated by the managers and employees of the company, whether it is
accepted or rejected can be decided by the human resource management of
the company.

Example: when hiring a salesperson, the hiring manager might have the
responsibility to assess the individual's sales ability, his or her aggressiveness, and
other specific work requirements. The Human Resources Director may want to assess
the candidate's cultural fit with both questions and observations about how the
candidate treated staff.
6.2 Strategies of HRM :-

Human resource strategies are the plans that lead to implanting
different functions in the human resource department of an organization.
Hr strategies are developed in order to cultivate talents attitudes and behavior in the
staff members which will in turn help the organization to meet its goals.
Hr strategies must be put in line with the transitional mission, vision, and goals.
A. Talent
Talent represents the human capital of an organization and is
crucial to the success of that business. It is an important asset that the business
should strive to maintain. The human resources department should forecast the
staffing needs of the business in the future while also recruiting, hiring, and
keeping the best talent in the organization. The most successful businesses in the
world pride themselves in hiring the best talent in the world.
B.Leadership
The leadership of the organization is linked to what the head is to a
body. The HRM department plays a key role in the leadership of the organization,
because it is tasked with finding the best executives to steer the business in the
right direction. In order to do job effectively, HR managers need to be active in an
advisory capacity when engaging with other organizational leaders, to give their
input on what is best for the company’s future.
C.Planning
The HRM department plays an important role in helping the business to
plan for the future. for example: by conducting regular surveys of the employees to
determine employee satisfaction, the HRM department can give important insights
to business leaders on what needs to be done in the future to contribute to a happier
workplace.

CASE STUDY
TRAINING
One Monday morning SANJAY NAGPAL, a recent recruit from a reputed management
institute in Chennai walked into the sales office at manipal as a new sales trainee.
REGHAVAN the zonal sales manager for a large computer hardware firm was there to
greet him. RAGHAVAN’S job consisted of overseeing the work of sales officers field
executives and trainee salesman numbering over 50 of three areas namely manipal,
Bangalore, Trivandrum. The sales of computers parts and other office equipments in his
area was highly satisfactory, especially in recent years thanks to the development
initiatives taken by respective state government in spreading computer education in
office schools colleges, banks and other institutions. RAGHAVAN had collected several
sales reports catalogues and pamphlets describing in detail the types of office
equipment sold by the company. After a pleasant chat about their backgrounds,
RAGHAVAN gave SANJAY the collected material and showed him to his assigned desk.
Thereafter raghavan excused him and did not return. Sanjay spent the whole day
scanning the material and at 5.00p.m. He picked up his things and went home.
QUESTION
WHAT DO YOU THINK ABOUT RAGHAVAN APPROACH FOR TRAINING PROGRAMME?
Ans: As mentioned in the case raghavan has given sanjay the collected material (sales
reports catalogues and pamphlets describing in detail the types of office equipment sold
by the company) and showed him his place of work. Thereafter he excused himself and
did not return. Sanjay spent the whole day scanning the material and at 5.00pm he
picked up his things and went home. This approach of raghavan clearly implies that he
wants to analyze the knowledge skills and ability of the new trainee sanjay nagpal by
giving him complete freedom to handle his assigned work.

External Questions: (Old Question papers)
UNIT-I
1. Define HRM and discuss its nature and scope?

2. Define human resource management. Explain the significance of human resource
management?
3. Briefly explain the major activities of HRM?
4. Bring out the evolution and growth of HRM in India.
5. How HRM is differ from personnel management? What are various strategies of
HRM?


The objective of the course is to provide basic knowledge of functional area of Human Resource
Management. This will be the prerequisite for enabling students to take any HRM stream electives
offered in third and fourth semesters.
1. Introduction:- Meaning of HR and HRM, Nature & Scope of HRM, Functions of HRM, Role
and Objectives of HRM, Personnel Management, Policies and Strategies of HRM.
2. Designing and Developing HR systems:- Human Resource Planning, Job Design, Job Analysis,
Job Evaluation, Job Enlargement, Job Enrichment, Job Rotation, Recruitment & Selection,
Placement, Promotion & Transfer.
3. Compensation Management:- Introduction, objectives of wages and salaries administration,
influencing factors for determining compensation- Monetary and non monetary benefits.
4. Human Resource Development:- Concepts, Development Function, Training and
Development, Performance Appraisal & Career Planning and Development.
5. Recent Trends in HRM: Outsourcing, Work Life Balance, Quality Circles and Total Quality
Management.
Textbooks:
 Personnal and Human Resource Management – Text and cases, P. Subbarao, Himalaya.
 Human Resource Management, Noe A.Raymond, John Hollenbeck, Barry Gerhart and Patrick
Wright, Tata McGraw Hill.
References
 Cascio TMH.
UNIT-II DESIGNING AND DEVELOPING HR SYSTEMS, BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 1
UNIT –II
DESIGNING AND DEVELOPING HR SYSTEM
BRIEF SUMMARY OF THIS UNIT
a) Designing Human Resource Management Systems provides a framework for

designing and implementing Human Resource Management systems in various kinds
of organizations, even those with limited resources
b) HR Design aims to foster engagement, attract, develop and retain
‘right fit’ talent, and create a culture that’s adaptable and diverse.
c) Human resource planning should serve as a link between human resource
management and the overall strategic plan of an organization
d) The coverage of concepts pertaining to each system and sub-system—job analysis,
human resource planning, recruitment and selection, performance management,
training and development etc.
1. HUMAN RESOURCE PLANNING

Human resources planning is the important managerial function. Human
resource plans are prepared for varying time periods i.e. short term plans covering a
time of 2 years and long term plans encompassing a period of 5 or more years.
Human Resource Planning is a continuous process because the demand and supply of
Human Resource keeps fluctuating throughout the year.
Human resource plans should be balanced with the corporate plans of the enterprise.
It helps the organization to develop a succession plan for all its employees.
Evaluate excess or scarcity of resources that are available at a given point of time.
To make the best use of its human resources.To estimate the cost of human
resources.
1.1DEFINITION OF HUMAN RESOURCES PLANNING
According to E.W. Vetter, human resource planning is “the process by which a

management determines how an organization should make from its current manpower
position to its desired manpower position.
1.2BENEFITS/ ADVANTAGES OF HUMAN RESOURCE PLANNING
Human resource planning anticipates not only the required kind and number of
employees but also determines the action plan for all the function of personnel
management.
The major benefits of human resource planning like
 It causes the development of various sources of human resource to meet the

organizational needs .
 It causes the development of various sources of human resources to meet the
organizational needs.
 To plan for physical facilities working conditions and the volume at fringe benefits
like canteen schools, hospitals, child care centers etc.
1.3 Importance of human resource planning

Reservoir for talent
The origination can have the reservoir of talent at any point of time
People with requisite skills are readily available to carry out the assigned talks
Prepare people for future
People can be trained motivated and develop in advance and this helps
in meeting future needs for won quality employees quit easily.Human resource
shortages can also be met comfortably when people quit the organization for various
reasons through proper human resource panning
Cut cost
Planning facilitates the preparation of an appropriate hr budget for each
department .The physical facilities like canteen quarters school medical help etc.
2. JOB DESIGN
Job design is defined as a process of deciding on the consent of jobs in terms of its
duties and responsibility. The goal of job design is to integrate the needs of the
individual with the organizational requirements.To increase motivation, satisfaction
and safety of employees enhancing the quality of work life. The aim of job design is
not improve job satisfactions, to improve quality, and to reduce employee problems If
the jobs are designed properly, then highly efficient managers will join the
organization. They will be motivated to improve the productivity and profitability of
the organizationJob design is a continuous ever evolving process.It requires the use of
techniques like work study process planning organizational are thuds and origination
analysis
2.1Advantages of Job Design
a) Job design helps create a job profile which can motivate the employees at work
place and reduce dissatisfaction.
b) This ensures that the job is simplified or broken down to employees, especially for
those who have limited skills and are lesser learned.
c) Effective job design can expose the employees to a wider set of roles and help
them understand the best role suited to them.
d) Job design also sees what training and development is required for employees to
increase employee productivity.
e) It can help understand the employee output, efficiency, work-load and the number
of hours required for work vs. rest.
2.2 Disadvantages of Job Design
1. Job design can lead to monotonous work and boredom.

2. Job design by enrichment gives too much control to senior employees which can
lead to poor results or conflicts with lower staff.
3. Job design by rotation can affect the flow of work & hamper the quality of output.
4. Enlargement can cause employees to loose focus on core competencies
3. JOB ANALYSIS
Job analysis is a formal and detailed examination of job.It is systematic investigation
of the task duties responsibilities necessary today a job. Job analysis is an important
personnel activity because it is identify what people do in their jobs. And what they
require In order to do the job satisfactory. It involves collection of information that
should include knowledge, skill,ability. Job analysis is a process where judgments are
made about data collected about one job.Job analysis aims to create jobs that are
aliened to the organization’s work flow that is required to be completed.
3.1Uses of job Analysis:-
A. Indicate training needs.Put together work groups (or) teams.

B. Provide information to conduct salary surveys.
C. As input for strategic planning & organizational Analysis.
D. Provide a basis for putting together recruitment.
E. As a basis co-ordination safety concerns.
F. Produce a basis job description of the job that cans facilities selection of
appropriate human resources.
G. To provide employees & supervisors with a basic description of jobs describing
cuties & characteristics of each incumbent in common with & different from other
position (or) job.
Other uses of job Analysis:-
Performance
Recruitment
Apprisal
Training Selection
Placement
1. Recruitment
Job Analysis is used to find out how & when to hire people for future job openings.
An understanding of the skills needed & the position that is vacant in future helps
managers to plan & hire people in a systematic.
2. Selection
Without proper understanding of what is to be done one job, it is not possible to select
the right person.
3.Placement
After selecting people, we have to place them on jobs best suited to their interests,
activities.
To teach a new employee how to handle a job, we have to clearly define the job.
4.Training
If there is any confusion about what the job is and what is supposed to be done,
proper training efforts cannot be initiated.
Potential job holder requires additional training can be determined only after the
specific needs of the jobs have been identified through a job analysis.
5.Performance
Every organization has to pay a fair remuneration to people based on their
performance.
To achieve this, it is necessary to compare what individuals should do (as the
performance standards) with what they have actually done (as per job analysis).
3.2 Important objectives of job analysis

Determine training needs
a. Training content.
b. Assessment tests to measure effectiveness of training.
c. Equipment to be used in conducting the training used in training to
identify (or) develop.
Compensation
a) job analysis can be used in compensation to identify.
b) Skill level.
c) Compensable job factors.
d) Work environment
e) Responsibilities
f) Required level to education.
Selection Procedures
a) Job duties that should be included in advertisement of vacant
positions.
b) Interview question.
c) Applicant appraisal / evaluation forms.
d) Selection tests / instruments.
e) Minimum requirements ( Education & or experience)
4.Job Evaluation
Job evaluation is a systematic way of determine the value worth of a job in relation to
other jobs in an organization. The aim of job evaluation is to find the relative value
worth at a job & determine what a fair wage for such a job should be.Job evaluation is
carried out by groups not by individuals. Job evaluation does not fair pay scales but
merely provides a basis for evaluation a rational wage structure.
4.1 Advantages of Job Evaluation

1. It is a logical and to a certain extent an objective method of ranking and grading the
jobs.
2. It help to fit the newly created jobs in the existing structure
3. Employee grievances, doubts and complaints would be at the lower ebb as it a
systematic and objective method of wage fixation
4. It eliminates some undesirable factors like in qualities in bargaining capacities of
employees and employers, fluctuations in market rates etc.
5. It satisfies the principles of fair wage, wage equity, uniformity in wages etc.
6. It ensures employee satisfaction about wage level and wage equity
7. It also helps to redesign the jobs by reallocating the easy and difficult tasks equally
among various jobs.
The basic information on which job evaluation are made is obtained from job analysis.
 It tries to assess jobs, not people.
 The standards of job evaluation are relative not absolute.
4.1 JOB EVALUATION METHODS:-
Quantitative Methods qualitative methods
Job banking job classification factor comparison point rating

(Or)
Grading
1.Quantitative Methods
a. Job Ranking:-
In the ranking method of job evaluation, a whole job is compared with others & rank is
provided on the basis of this comparison.It is very easy to understand & least
expensive.
All jobs are ranked in the order of their importance from the simplest to the hardest or
from the highest to the lowest.Jobs are usually ranked in each department and then the
department rankings are combined to develop an organizational ranking.
For example:-
According to the Ranking Method
Rank Month Salaries
1. Accountant 3000/-
2. Accounts clerk 1800/-
3. Purchase assistant 1700/-

4. Machine-operator 1400/-
5. Typist 900/
6. Office boy 600/-
The variation in payment of salaries depends on the variation of the nature of the job
performed by the employees. It is suited for a small organization.
Advantages/Merits:
a) It is the simplest method.
b) It is quite economical to put it into effect.
c) It is less time consuming and involves little paper work.
Disadvantages/Demerits:
a. The main demerit of the ranking method is that there are no definite standards of
judgment and also there is no way of measuring the differences between jobs.
b. It suffers from its sheer unmanageability when there are a large number of jobs
b.Classification method:-
 According to this method, a predetermined number of job group (or) job classes are
established & gobs are assigned to these classification.
 The grades or classes are created by identifying some common denominator such as
skills, knowledge and responsibilities.
 This system can be effectively used for a variety a job comprises.
I-Class I-Executives:-
Further classification under this category may be office manager, deputy officer
manager, office superintend etc.
ll-Skilled Workers:-Under this category may come the purchasing assistant,
cashier,etc.
III-Semiskilled Workers:-Steno typists, switch board operators etc.
Advantages/Merits:
A. This method is easy to understand and simple to operate.

B. It is economical and, therefore, suitable for small organizations.
C. The grouping of jobs into classifications makes pay determination problems easy to
administer.
D. This method is useful for Government jobs.
Disadvantages/Demerits:
a) The method suffers from personal bias of the committee members.
b) It cannot deal with complex jobs which will not fit neatly into one grade.
c) This method is rarely used in an industry.
2.QUANTITATIVE METHOD:-
a. Factor Comparison Method:-
A More systematic & Scientific method of job evaluation is –factor

comparison method. Under this-instead of ranking completed jobs, each job is rank
according to a series of factors.These factors include mental effort, physical effort,
responsibility & working conditions etc.Pay will be assigned in this method by
comparing the weights of the factors required for each jobThe present wages paid for
key jobs may be divided among the factors weighted by importance. Wages are
assigned to the job in comparison to its ranking on each job factor.
STEPS INVOLVED:-
 Select Key Jobs, representing wage/ salary levels across the organizations.
 The selected jobs must represent as many departments as possible.
For example: all the jobs may be compared first by the factor ‘mental requirements’.
Then the skills factor, physical requirements, responsibility, and working conditions are
ranked. Thus, a job may rank near the top in skills but low in physical requirements.
Then total point values are then assigned to each factor.
Competitive picture of the ranking of these two jobs is shown in matrix of factor rankings.
FACTOR RANKING OF TWO KEY JOBS
Factor Rank Order Welder Mechanical Engineer
1. Physical requirements Skill requirement
2. Working conditions Mental requirement
3. Skill requirements Responsibility
4. Responsibility Working conditions
5. Mental requirements Physical requirements
Advantages
A. It is analytical and quantitative method.
B. This method is a combination of two techniques, i.e., ranking and factor
comparison.
C. It is fairly easy method to explain to employees
D. The method is flexible as there is no upper limit on the rating of a factor
Disadvantages
a) It is expensive and time-consuming method.
b) It is difficult to understand and operate.
c) This technique does not consider all the sub-factors as the operating of the system
would be difficult if it considers all the factors.
b.Point Rating Method:-
This is the most widely used method of job evaluation. Points are assigned to each
factor after prioritizing each factor in order of importance. Jobs with similar point
totals are placed in similar pay grades.
Typically the compensable factors include the major categories of:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
These factors can then be further defined.

1.Skill
 Experience
 Education
 Ability
2.Responsibilities
 Fiscal
 Supervisory
3.Effort
 Mental,Physical
4. Working Conditions
 Location
 Hazards
 Extremes in Environment
Merits
1. It is the most comprehensive and accurate method of job evaluation.
2. Being the systematic method, workers of the organization favor this method.
3. The scales developed in this method can be used for long time.
4. Jobs can be easily placed in distinct categories .
Demerits
i.It is both time-consuming and expensive method.
ii.It is difficult to understand for an average worker.
iii.A lot of clerical work is involved in recording rating scales.
5.JOB ENLARGEMENT:-
Job enlargement is a job design technique where in there is an increase in the number of
tasks associated with a certain job.“Job enlargement refers to adding a few more task
elements horizontally.”Job enlargement involves combining various activities at the same
level in the organization and adding them to the existing job.
Jon enlargement can be explained with the help of the following example –
If Mr. A is working as an executive with a company and is currently performing 3 activities

on his job after job enlargement or through job enlargement we add 4 more activities to
the existing job so now Mr. A performs 7 activities on the job. It must be noted that the
new activities which have been added should belong to the same hierarchy level in the
organization. By job enlargement we provide a greater variety of activities to the
individual so that we are in a position to increase the interest of the job and make
maximum use of employee’s skill. Job enlargement is also essential when policies like VRS
are implemented in the company.
5.1Advantages of job enlargement
1.Variety of skills :-
Job enlargement helps the organization to improve and increase the skills of the
employee due to organization as well as the individual benefit.
2. Improves earning capacity :-
Due to job enlargement the person learns many new activities. When such people apply
for jobs to other companies they can bargain for more salary.
3. Wide range of activities :-

Job enlargement provides wide range of activities for employees.
Since a single employee handles multiple activities the company can try and reduce
the number of employee’s.
This reduces the salary bill for the company.
Disadvantages of job enlargement
I. Job enlargement tends to be a costly affair. Workers may require additional

training for their enlarged jobs.
II. Productivity may fall in the short run, due to the introduction of the new system.
III. (iii) Employee-unions often argue for increased pay because of the increased work
load.
IV. (iv) Some jobs may still be routine and boring even after enlargement.
6.JOB ENRICHMENT
 Job enrichment is a term given by Fedric Herzberg. According to him a few

motivators are added to a job to make it more rewarding, challenging and
interesting.
 According to Herzberg the motivating factors enrich the job and improve
performance.
 Job enrichment gives lot of freedom to the employee but at the same time
increases the responsibility.
 Some workers are power and responsibility hungry. Job enrichment satisfies the
needs of the employees.
In other words we can say that job enrichment is a method of adding some motivating
factors to an existing job to make it more interesting.
The motivating factors can be

a) Giving more freedom.
b) Encouraging participation.
c) Giving employees the freedom to select the method of working.
d) Allowing employees to select the place at which they would like to work.
e) Allowing workers to select the tools that they require on the job.
f) Allowing workers to decide the layout of plant or office.
ADVANTAGES OF JOB ENRICHMENT

I. Job enrichment reduces the work load of senior staff. When decisions are taken by
juniors the seniors work load is reduced.
II. Job enrichment helps in reducing the rates of employee turnover and absenteeism.
III. The enriched jobs give more job satisfaction to the employees.
IV. Employees tend to be more creative when they work in an enriching context of
complex and challenging jobs.
DISADVANTAGES OF JOB ENRICHMENT
1. Job enrichment is basically limited to the unskilled and semiskilled jobs.

2. Job enrichment has negative implications
3. Superiors may feel that power is being taken away from them and given to the
junior’s. This might lead to ego problems.
4. Technology may not permit the enrichment of all the jobs.
Example : It has been proven that a customer service associate will perform much better
when given a certain amount of authority. A company can improve their customer service
by empowering the associates with making decision on-the-spot, instead of permanently
asking for confirmation from the management. For example, they can refund a certain
amount of money to customers, within certain limits. However, the company needs to
monitor these decisions to make sure they are doing the right thing.
7.JOB ROTATION
Job rotation involves shifting a person from one job to another, so that he is able to
understand and learn what each job involves. Job rotation is done to decide the final
posting for the employee Job rotation gives an idea about the jobs to be performed at
every level. A person is required to perform one job at a time but he is rotated at
different jobs after certain period of time.
Example : Mr. A is assigned to the marketing department whole he learns all the jobs
to be performed for marketing at his level in the organization .after this he is shifted to
the sales department and to the finance department and so on. He is finally placed in
the department in which he shows the best performance.
ADVANTAGES OF JOB ROTATION
i. Job rotation reduces the boredom and monotony through diversifying the
employee’s activities.
ii. It broadens the range of experience of employees and is an effective training
technique.
iii. Having a job rotation strategy helps employees develop their skills.
iv. A job rotation strategy can point out an employee’s strengths and weaknesses.
v. By having a job rotation plan, you have multiple employees who know how to do
each job.
DISADVANTAGES OF JOB ROTATION
1. Frequent interruption:-
 Job rotation results in frequent interruption of work .A person who is doing a

particular job and get it comfortable suddenly finds himself shifted to another job
or department .this interrupts the work in both the departments.
2. Reduces uniformity in quality :-
 Quality of work done by a trained worker is different from that of a new worker
.when a new worker is shifted or rotated in the department, he takes time to learn
the new job, makes mistakes in the process and affects the quality of the job.
3. Misunderstanding with the union member: -
 Sometimes job rotation may lead to misunderstanding with members of the union.
 The union might think that employees are being harassed and more work is being
taken from them. In reality this is not the case.
8.RECRUITMENT & SELECTION:-

8.1Recruitment:-
 Recruitment as the process of searching for & obtaining applicants for jobs, from
among whom the right people can be selected.
 Recruitment is the process of locating & encouraging potential applicants to apply
for existing (or) anticipated job openings.
 Recruitment is influenced by a variety of environmental factors-economic, social,
technological, political, legal etc.
8.2 Objectives of Recruitment:-
1. To attract people with multi-dimension skills & experiences that suits the present &
future organizational strategies.
2. To search for talent globally & no just within the company.
3. To develop an organizational culture that attracts competent people to the
company.
4. To anticipate & find people for positions that do not exist yet.
5. To infuse fresh blood at all levels of organization.
6. Recruitment is a positive process of searching for prospective employees &
stimulating them to apply for the jobs in the organization.
8.3SOURCES OF RECRUITMENT:-
INTERNAL SOURCES EXTERNAL SOURCES

1. TRANSFER 1. CAMPUS RECRUITMENT
2. PRESENT PREMANT EMPLOYEES 2. PRIVATE EMPLOYMENT AGENCIES
3. RETIRED EMPLOYEES 3. EMPLOYMENT EXCHANGES
4. EMPLOYEE REFERRALS 4. PROFESSIONAL ORGANIZATIONS
1.INTERNAL SOURCES
A.TRANSFER :-Transfer involves shafting of persons from present jobs to other similar
jobs; there do not involve any change in rank, responsibility. A transfer has to be viewed
as a change in assignment in which an employee moves from one job to another in the
same level of hierarchy, requiring similar skills, involving approximately same level.
B.PRESENT PERMANENT EMPLOYEES:- Organizations consider the candidates from this
source for higher level jobs .To meet the trade union demands. Availability of most
suitable candidates for jobs relatively. Polices of the organization to motivate the present
employees.
C. RETIRED EMPLOYEES:- The organization takes the candidates for employment from the
retrenched employees due to obligation, trade union pressure & the like.
D.EMPLOYEE REFERRALS:-Employee referrals are the candidates recommended by the

current employees. Current employees recommend those candidates whose performance
& behavior are known to them as well as suitable to the job & organizational needs.
This source helps the organization to get high quality applicants.
2.EXTERNAL SOURCES:-
A.CAMPUS RECRUITMENT:
 Organizations seeking to recruit the candidates from this source can directly
contact the institutes either in person, on by post ,and stimulate the candidates to
apply for jobs.
 Most of the organizations using this source perform the function of selection after
completing recruitment in the campus of the institute itself with a view to
minimizing time lapse and to securing the cream before it it’s attracted by some
other organizations.
 Companies realize that campus recruitment is one of the best sources for recruiting
the cream of the new blood.
B.PRIVATE EMPLOYMENT AGENCIES:
 A databank of candidates is sent to organizations for their selection purpose and
agencies get commission in return.
 They also keep prospective employer and the employee anonymous
 Private agencies also provide a more complete line of services. They advertise the
position, screen applicants against the criteria specified by the employer, and
usually provide a guarantee covering six months or a year as protection to the
employer should the applicant not perform satisfactorily.
 The private employment agency’s fee can be totally observed by either the
employer or the employee, or it can be split.
C.EMPLOYMENT EXCHANGES:-
 The govt. set up employment exchanges in the country to provide information
about vacancies to the candidates & to help the organizations in finding out
suitable candidates.
 The employment Exchanges Act, 1959 makes it obligatory for public sector &
private sector enterprises in India to fill certain types of vacancies through public
employment.
D.PROFESSIONAL ORGANIZATIONS:-
 Professional organizations maintain complete bio-data of their members & provide

the same to various organizations. Organizations find this source more useful to
recruit the experienced & professional employees like executives, managers etc.
 Organization like the chambers of commerce and industries, engineer’s institutions,
management associations, etc. may act as external sources of recruitment. These
lists to members.
 It is also common practice to provide placement facilities at regional and national
meetings where individuals looking for employment and companies looking for
employees can find each other.
9.SELECTION:
Selection is the process of picking or choosing the right candidate, who is most suitable
for vacant job position in an organization. Employee selection is a process of putting a
right applicant on a right job. Selection is an important process because hiring good
resources can help increase the overall performance of the organization.
9.1ADVANTAGES OF SELECTION:
1. It is cost-effective and reduces a lot of time and effort.
2. It helps avoid any biasing while recruiting the right candidate.
3. It helps eliminate the candidates who are lacking in knowledge, ability, and
proficiency.
4. It provides a guideline to evaluate the candidates further through strict verification
and reference-checking.
5. It helps in comparing the different candidates in terms of their capabilities,
knowledge, skills, experience, work attitude, etc.
9.2SELECTION PROCESS:
The Employee selection Process takes place in following order-
1.Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligibility criteria laid down by the organization. The skills, academic and family
background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
2.Application blanks- The candidates who clear the preliminary interview are required to
fill application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc. The information contained
in the application blank differ from one organization to another organization and in job
posts, it may vary even within the same organization.
3.Written Tests- Various written tests conducted during selection procedure are aptitude
test, intelligence test, reasoning test, personality test, etc. These tests are used to
objectively assess the potential candidate. They should not be biased.
4.Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the
required job or not. In the interview, the interviewer & applicant exchange information in
order to achieve a goal through conversation. The employment interviews are conducted
during the selection process through proper planning. The pleasant location of the
interviewing place is selected and the interviewer has the good personality with empathy
& ability to communicate & listen effectively. A job profile must be prepared on the basis
of job description before conducting interview. There should be an honest
communication between candidate and interviewer.
Contents of the Interview
Although the contents of the employment interview varies from one organization to
another & also according to the nature of job but still following are the essential contents
of the interview.
 Occupational Experience
 Academic Achievement
 Interpersonal Skills
 Personal Qualities
 Organizational Fit
5.Back Ground Checks :The accuracy of the application form of the candidate is verified
through references & former employer. The educational, criminal record & legal status to
work are verified. Personal references of applicant are contacted to confirm the validity &
accuracy of the provided information.Background checks assist the selection committee
in dropping the applicants that have past insubordination issues, attendance problem,
theft or special behavioral problems. The level of responsibility of the new job directs the
intensity of the background investigation.
6.Conditional Job Offer:After going through all the previous steps of selection process,
there comes the most important step of the selection process in which the decision of
hiring is made. The applicant that best meets the requirements of the job is selected. At
start conditional job letter is issued which must be followed by medical exam.
7.Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism. When the
conditional job letter is issued the next step of the selection process starts in which the
physical/medical examination of the selected candidate is conducted. The medical exam
of the candidate is essential to check either he takes the drugs or not. If he passes the
exam, he would be finally selected for the job.
8.Appointment Letter- After passing the medical exam by the candidate, the final offer
for the job is made to the candidate by the relative department. An appointment letter
will be given to him mentioning the terms of appointment, pay scale, post on which
selected etc. When he joins the organisation, it is the primary duty of the personnel
manager to introduce him to the company and his job.
10.Placement
 Placement is the process of assigning a specific job to each one of the selected
candidates.
 In very simple words placement means sending the newly employed person to
some department for work. It also implies assigning a specific rank and
responsibility to an individual.
 Matching the requirements of the job with the qualifications of a candidate is the
essence of placement.
 Proper placement helps to improve employee morale.
 The capacity of the employee can be utilized fully if he is placed on the job for
which he is most suitable.
 Right placement also helps to reduce labour turnover, absenteeism and accident
rates.
Ex: If a candidate adjusts himself to the job and continues to perform as per
expectations, it might mean that the candidate is properly placed.
10.1Def:
According to Pigors and Myers “Placement is the determination of the job to which an
accepted candidate is to be assigned and his assignment to that job. It is a matching of
what the supervisor has reason to think he can do with the job demands. It is a matching
of what he imposes (in strain, working conditions etc.) and what he offers (in the form of
payroll, companionship with others, promotional possibilities etc.).”
10.2A few basic principles should be followed at the time of placement of a worker
onthe job.
A. Man should be placed on the job according to the requirements of the job.
B. The job should not be adjusted according to the qualifications or requirements of
the man.
C. He should also be made aware of the penalties if he commits a wrong.
D. While introducing the job to the new employee, an effort should be made to
develop a sense of loyalty and co-operation in him , he may realize his
responsibilities better towards the job and the organization.
E. The placement should be ready before the joining date of the newly selected
person.
11.PROMOTION:-
Promotion refers to upward movement of an employee from current job to another

that is higher in pay, responsibility and /or organizational level.
Promotion brings enhanced statues, better pay, increased responsibility & better
working conditions to the promoter.
Promotion makes the employee financially as well as preciously stronger.
It inspires employees to compete and get ahead of others promotion paves the way
for employee self-development.
It encourages them to remain royal & committed to other jobs and the
organization.
To boost confidence, loyalty and morale of the employee.
The organization would be able to utilize the skills & abilities of its personal more
effectively.To promote good human relations.
To retain skilled and talented people, To attract trained, competent and hard
working people.
12.BASES OF PROMOTION:-
MERIT-BASED SENIORITY-BASED
a. MERIT-BASED PROMOTION:-
Merit-based promotions occur when an employee is promoted because of superior
performance in the current job.Merit here denotes an individual’s knowledge, skills,
abilities & efficiency as measured from his educational qualifications, experiences etc.
ADVANTAGES:-
A. It motivates employees to work hard, improve their knowledge, acquire new skills
& contribute to organizational efficiency.
B. It also inspires other employees to improve their standards of performance through
active participation in all developmental initiatives under –taken by the employer
training.
b. SENIORITY –BASED PROMOTIONS:-

Seniority refers to the relative length of service in the same
organization. It is easy to measure the length of service and judge the seniority.
Every party trusts the management’s action as there is no scope for favoritism and
discrimination and judgment. It gives a sense of certainty of getting promotion to every
employee and of their turn of promotion. Senior employees will have a sense of
satisfaction to this system as the older employees are respected and their inefficiency
cannot be pointed out. It minimizes the scope for grievances and conflicts regarding
promotion.
13.TRANSFER
Transfer refers to the shifting of employees form one job to another within the same
organization. Transfers of employees are quite common in all organizations.
This can also be defined as a “change in job within the organization where the new job is
substantially equal to the old in terms of pay, status and responsibilities”.
Purposes of Transfer
i. To meet the organizational requirements:
Organizations may have to transfer employees due to changes in technology, changes in

volume of production, production schedule, product line, quality of products,
changes in the job pattern caused by change in organizational structure, fluctuations in the
market conditions like demands fluctuations, introduction of new lines and/or dropping of
existing lines.
ii. To satisfy the employee needs:

Employees may need transfers in order to satisfy their desire to work under a friendly
superior, in a department/region where opportunities for advancement are bright, in or
near their native place or place of interest, doing a job where the work itself is challenging,
etc.
iii. To utilize employees better:

An employee may be transferred because management Feels that his skills, experience and
job knowledge could be put to better use Elsewhere.
v.To adjust the workforce:

Workforce may be transferred from a plant where there is less work to a plant where
there is more work.
Vii. To reduces conflicts:
Where employees find it difficult to get along with colleagues in a particular section,
department or location – they could be shifted to anotherPlace to reduce conflicts.
CASE STUDY ON JOB ANALYSIS/ JOB SPECIFICATION:
Name of the organization – APOLLO HOSPITAL
Apollo Hospital has been growing in size as it offers quality, prompt-caring services to the
patients.Dr. Chandrasekhar the Administrator is a person with good medical knowledge
but lacks knowledge and skills involved in human resources management. The hospital
has large quantities of medicine, equipment, spare parts of important machines installed
in the hospital. As usual, the Hospital has employed a “storekeeper” with no previous
experience of Hospital Stores. Mr. Ramakant the storekeeper was working earlier in an
engineering firm and had sufficient knowledge of such stores.Ramakant reports to the
purchase Executive whose job is to order requisite materials for requirements of the
entire Hospital, Dr. Chandrasekhar has been receiving various complaints from the staff
and doctors of non-availability of medicines, drugs, spares of equipment and other
consumables required in the Hospital having 500 beds. Since the hospital so far did not
employ qualified Personnel Manager, the administrators are not aware of the job analysis
procedures, nor do they have job description and job specification of any of the jobs
being performed.
Questions:
(1) Write down the job analysis, job specification of a storekeeper’s job?
Ans:
 A storekeeper’s job analysis should cover:

 Work activities,Human behaviors
 Machine, tools, equipment and work aids
 Performance standards,Job context,Human requirements
This job analysis can be used for:
 Recruitment and selection

 Training and development
 Performance appraisal
A storekeeper’s job specification should include:
1) Receives, stores, and issues supplies and equipment and compiles records of supply
transactions aboard ship: Verifies that supplies received are listed on requisitions and
invoices.
2) Stores supplies and equipment in storerooms.
3) Issues supplies.
4) Inventories supplies and equipment at end of each voyage.
5) Compiles report of expenditures
(2) What specific standards and specification would you include in the job
specification?
Specifications that we should include in the job description:
1) Candidate must know strong verbal communication skills.
2) Candidate must be very confident for his\her job.
3) Ability to perform under high pressure.
4) Must Experience about cold calling & lead generation.
5) Ability to work in any type of environmental situation of constant change.
6) Always show great attitude with customer.
3. Which are the staff members from whom you would collect useful information and
requirements of this job?
Collecting useful information and requirements of this job from the staff member:
Gather the appropriate people for the task: The manager to whom the position will
report takes the lead in developing a job description, but other employees who are
performing similar jobs can contribute to its development, too Perform a job analysis : I
need as much data as possible to develop a job description.
The job analysis may include:
The job responsibilities of current employees. Internet research and sample job
descriptions online or offline highlighting similar jobs. An analysis of the work duties,
tasks, and responsibilities that need to be accomplished by the employee filling the
position.
External Questions: (Old Question papers)

UNIT-II
1. Explain the different steps in Job analysis?
2. What is Human Resource Planning? Explain the meaning and nature of HR
planning?
3. Explain about the methods and sources of recruitment?
4 What is job evaluation? Explain in detail the job grading as a method of job
evaluation?
5.Describe the concept of job analysis?
6.What is promotion? Explain the relative merits and demerits of seniority and merit
as the basis of promoting employees.?

The objective of the course is to provide basic knowledge of functional area of
Human Resource Management. This will be the prerequisite for enabling students to take
any HRM stream electives offered in third and fourth semesters.
1. Introduction:- Meaning of HR and HRM, Nature & Scope of HRM, Functions of

HRM, Role and Objectives of HRM, Personnel Management, Policies and
Strategies of HRM.
2. Designing and Developing HR systems:- Human Resource Planning, Job Design,
Job Analysis, Job Evaluation, Job Enlargement, Job Enrichment, Job Rotation,
Recruitment & Selection, Placement, Promotion & Transfer.
3. Compensation Management:- Introduction, objectives of wages and salaries
administration, influencing factors for determining compensation- Monetary
and non monetary benefits.
4. Human Resource Development:- Concepts, Development Function, Training
and Development, Performance Appraisal & Career Planning and Development.
5. Recent Trends in HRM: Outsourcing, Work Life Balance, Quality Circles and
Total Quality Management.
Textbooks:
 Personnel and Human Resource Management – Text and cases, P. Subbarao,

Himalaya.
 Human Resource Management, Noe A.Raymond, John Hollenbeck, Barry Gerhart and
Patrick Wright, Tata McGraw Hill.
References
 Cascio TMH.
UNIT-III COMPENSATION MANAGEMENT BALAJI INST OF IT & MANAGEMENT , KADAPA

1
UNIT-III
COMPENSATION MANAGEMENT
BRIEF SUMMARY OF THIS UNIT
 The concept of workers' compensation had its origins in Germany, Great
Britain and the United States between the late 1800's and early 1900's.
 Workers’ compensation became common in the US in the 1930’s and
1940’s and it continues until today.
 The term compensation means any form of payment made to an
individual for services rendered as an employee for an employer;
services performed as an employee representative.
 Salary was determined on the basis of the job work and the years of
experience the employee is holding
 A ‘wage’ (or pay) is the remuneration paid, for the service of
labour in production, periodically to an employee/worker.
1.INTRODUCTION
 Compensation is what employees receive in exchange for their

contribution to the organization.
 Pay refers to the base wages & salaries employees normally receive.
 Compensation forms like bonuses, commission, and profit sharing
plans, incentives designed to encourage employees to produce results
beyond normal expectation.

2
 It plays a key role in recruitment, job performance & job satisfaction.

 Employee’s satisfaction with pay is an important criterion.
 Pay satisfaction is a result of input-outcome ratio.
 Remuneration occupies an important place in the life of an employee.
 Compensation is a hot potato for the Human Resource Department.
 The motivation level of the employees to great extent lies in monetary
rewards.
 'Salary is defined as the remuneration paid to the clerical and managerial
personnel employed on monthly or annual basis'.
 Salary Paid to white-collar employees; paid in monthly basis; paid to
employees whose contribution cannot be measured easily.
 Wages – paid to blue-collar employees; paid daily, weekly or monthly;
paid to jobs which can be measured in terms of money’s worth.
 In a salary administration, the employer should not feel that the
employees are paid more than they deserve and the employees should
not feel that they are underpaid.
a) To Employees:
i. Employees are paid according to requirement of their jobs i.e highly skilled
jobs are paid more compensation than low skilled jobs. This eliminates
inequalities.
ii. The chances of favoritism are minimized.
iii. Jobs sequence and lines of promotion are established wherever they are
applicable.
iv. Employee‘s moral and motivation are increased because of the sound
compensation structure
b) To Employers:
i. They can systematically plan for and control the turnover in the organization.
ii. A sound compensation structure reduces the likelihood of friction and
grievance over remunerations.
iii. It enhances an employee morale and motivation because adequate and
fairly administrative incentives are basis to his wants and need.
iv. It attracts qualified employees by ensuring and adequate payment for all
the jobs.

3
1.1Components of remuneration
1 Wages and Salary :-

 Wages refer the hourly rates of pay, salary refers to the monthly rate
pay, wages and salaries are subject to annual increments.
 They differ from emp. To emp. Depend upon the nature of job , seniority
and merits
 Wage & salary administration is essentially the application of a systematic
approach to the problem of ensuring that employees are paid in a logical,
equitable and fair manner
2. Incentives:-
 It is also called ‘payment by result’- paid in addition to wages and salaries.
depend upon productivity, sale profit.
There are
A. individual incentives scheme
B. group incentives scheme
3: Fringe benefits
These include such employee benefits as provident fund, medical care,
hospitalization, accident relief, health insurance, canteen uniform and like
4: Perquisites:
These are allowed to executives and include company car, club membership,
paid holidays, furnished house and like
The following are the advantage of the wage salary structure:

1. It affects the workers’ earning and standard of living.
2. It eases the recruitment and maintenance of an effective labor force.
3. It develops employee morale and increases work efficiency.
4. It represents cost and competitive advantage in the industry.
5. It helps in preparing budgetary allocations and ease computation of salary
adjustments and as an aid in short term and long range plans.
6. It eliminates pay distortions and inequities in employee compensation.
7. It establishes an equitable salary range for various jobs.

4
2.OBJECTIVES OF WAGE & SALARY ADMINISTRATION
a. Employee compensation may be classified into two types-base

compensation & supplementary compensation.
b. Base compensation refers to minatory payments to employees in the
form of wages & salaries.
c. The term wages implies remuneration to workers doing manual work.
d. The term salary is usually defined to mean compensation to office,
technical staff.
e. The term compensation administration denotes the process of managing
a company’s compensation programmer.
f. To establish a fair & equitable remuneration offering similar pay for
similar work.
OTHER OBJECTIVES
A.To attract qualified & competent personal.

 To retain the present employees by keeping wage levels in tune with
competing units.
 To control labour & administrative costs in line with the ability of the
organization to pay.
 To improve motivation & morale of employees and to improve union-
management relations.
 To establish job sequence and lines of promotion wherever applicable.
 To project a good image of the company and to comply with legal needs
relating to wages & salaries.
B.To acquire qualified and competent personnel:
 Candidates decide upon their career in a particular organisation mostly
on the basis of the amount of remuneration the organisation offers.
Qualified and competent people join the best-paid organisation.
 As such, the organisation should aim at payment of salaries at that level,
where they can attract competent and qualified people.

5
C. To retain the present employees:

 If the salary level does not compare favourable with that of other
 similar organisation, employees quit the present one and join other
organisation.
 The organisation must keep the wage & salary
 structure at the competitive level, with those of similar organisation4
D. To secure internal and external equity:
 Internal equity does mean payment of similar wages for similar jobs
 Within the organisation. External equity implies that payment of
 Similar wages to similar jobs in comparable organisations.
E. To ensure desired behavior:
 Good rewards reinforce desired behavior like performance, loyalty,
 Accepting new responsibilities and changes etc.
Case study: Bonus and incentive plans
April 1, 2006
A dentist routinely provided his team with annual pay raises. When the
practice experienced a decrease in production, the dentist did not give the
raises that the team had come to expect. The employees were disappointed
and angry. Three resigned, including the office manager of seven years who
was a key employee. This caused the doctor major staffing and patient
scheduling problems. A dentist routinely provided his team with annual pay
raises. When the practice experienced a decrease in production, the dentist
did not give the raises that the team had come to expect. The employees were
disappointed and angry. Three resigned, including the office manager of seven
years who was a key employee. This caused the doctor major staffing and
patient scheduling problems.

6
Solution
The easiest way to achieve these goals is through a well-designed bonus plan.
The plan must be “self-liquidating,” meaning it must be paid for by a
percentage of the increased revenue it induces. Bonus plans are not about
people not doing their jobs, but rather about people working together and
accomplishing more, thus sharing in the growth and financial success of the
practice.
A good bonus and incentive plan removes the arbitrariness of raises and
supports greater productivity, increased worker satisfaction, and more
bottom-line income.
For a bonus plan to be successful, it needs to accomplish these four objectives:
1) Enlist and include all team members to foster teamwork, business

awareness, and a sense that by working together everyone achieves more.
2) Be easy to use, understand, and administer. Everyone in the practice needs

to be able to follow and track the plan, with no secrets, “black boxes,” difficult
calculations, or hidden agendas.
3) Protect the practice’s cash flow and overhead - i.e., no bonus without the
money to pay for it and cover expenses.
4) Drive increased profits as bonuses are achieved.
PREPARED BY:
B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT, KADAPA.

7

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BALAJI INSTITUTE OF

I.T AND MANAGEMENT

Name of the Faculty : T.HIMMAT

Units covered : 1 to 2.5 Units (1st Internal

(17E00201) HUMAN RESOURCE MANAGEMENT

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 1

BRIEF SUMMERY OF THIS UNIT

Attract and retain talent

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 2

1. MEANING OF HR & HRM:-

1.1 MEANING OF HR:-

Human mind & hard

1.2 MEANING OF HRM:-

Human resource management is like Labor management, employee-employer

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 3

2.Nature & Scope of HRM :-

2.1 Nature of HRM

 Human resources management of the complex & dynamic components

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 4

 The HR executive helps formulate & implement business strategies.

HRM is a part of management discipline. It is not a discipline in itself but is only

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 5

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 6

3.Industrial relations aspect :-

I.Managerial Functions II. Operative Functions

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 7

Planning is an ongoing step and can be highly specialized based on

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 8

Human resource planning Recruitment Selection placement

1.Human Resource Planning :-

e) Creating and developing valid and reliable testing techniques.

II HUMAN RESOURCE DEVELOPMENT:-

Performance management Training

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 10

Wages’ refers to – Blue collar workers

III COMPENSATION / REMUNERATION:-

Wage & salary administration

3.SOCIAL SECURITY MEASURES :-

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 11

4.ROLE & OBJECTIVES OF HRM:-

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 12

4.2 OBJECTIVES OF HRM :-

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 13

5. Maximize utilization of human resources in the achievement of

Industrial relation Aspect:-

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 14

DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HRM

PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT

1. Management of people employed Management of employees KSA

2. Employees are treated as economic Employees are treated as economic

7. Mgmt task are monitoring Tasks are nurturing

8. Decision is slow Facilities are speedy decisions

9. Communication is indirect Communication is direct

10. Behaviour is based on norms policies, Behaviour is based on values, mission

12. Mgmt note is transactional Role is transformational leadership

13. It focuses on personnel administration, It focuses on acquisition, development,

UNIT-I INTRODUCTION BALAJI INST OF IT & MANAGEMENT , KADAPA. Page 15

6.Policies and strategies of HRM:-

HRpolicies allow an organization to be clear with employees on