1. BA23214-Human Resources Management
UNIT-I PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT
Human Resource Management Evolution, Importance and Functions,
HR Policies –Types, Process of Formulation and Guidelines.
Human Resource Information System, HR Manager Role,
Responsibilities and Qualities.
2. Case Study: HRM at XYZ Tech Solutions
Background:
XYZ Tech Solutions is a mid-sized IT firm specializing in software development and cloud solutions.
The company has grown rapidly in the last five years but is now facing several HR challenges,
including high employee turnover, lack of structured performance management, and issues in
workforce planning. The HR department is under pressure to improve recruitment strategies,
employee engagement, and overall talent management.
Situation 1: XYZ Tech is struggling to attract top talent due to increased competition. They receive
many applications, but most candidates lack the required technical and soft skills.
Question: How can XYZ Tech improve its recruitment and selection process?
•Develop a competency-based hiring framework to assess technical and behavioral skills.
•Use AI-based screening tools to shortlist qualified candidates.
•Strengthen employer branding through employee testimonials and online presence.
•Partner with universities for internships and early career programs.
3. Situation 2: Many new hires leave within the first six months, citing a lack of proper onboarding
and unclear job expectations.
Question: What steps should XYZ Tech take to improve onboarding?
•Create a structured onboarding program with a 30-60-90-day plan.
•Assign mentors to new employees for smoother integration.
•Use digital onboarding tools to introduce company culture and policies.
•Set clear job expectations and key performance indicators (KPIs) from day one.
Situation 3: Employees at XYZ Tech feel they lack growth opportunities and training on emerging
technologies.
Question: How can the HR department implement an effective training and development program?
•Conduct a skills gap analysis to identify training needs.
•Implement an e-learning platform with certifications on new technologies.
•Introduce leadership development programs for high-potential employees.
•Offer tuition reimbursement for employees pursuing higher education.
4. Situation 4 : Employees complain that performance evaluations are inconsistent and subjective,
leading to dissatisfaction.
Question: What changes should XYZ Tech make to improve performance management?
•Implement a 360-degree feedback system for fair evaluations.
•Use objective performance metrics aligned with business goals.
•Provide continuous feedback rather than annual reviews.
•Train managers on conducting constructive performance discussions.
Situation 5: The company is losing employees to competitors offering better pay and benefits.
Question: How can XYZ Tech enhance its compensation strategy?
•Conduct a market analysis to ensure competitive salaries.
•Introduce performance-based bonuses and incentives.
•Offer non-monetary benefits like flexible work hours, wellness programs, and stock options.
•Communicate the total rewards package effectively to employees.
5. Situation 6: Recent employee surveys indicate low morale, citing poor work-life balance and lack of
recognition.
Question: What strategies should XYZ Tech implement to boost engagement and retention?
•Introduce employee recognition programs (e.g., “Employee of the Month”).
•Foster a positive work culture through team-building activities.
•Allow remote work options and flexible schedules.
•Conduct stay interviews to understand and address concerns before employees leave.
Situation 7: Several key employees are nearing retirement, and there is no clear succession plan in
place.
Question: How can XYZ Tech ensure business continuity through succession planning?
•Identify critical roles and high-potential employees for leadership development.
•Provide cross-training opportunities to expand skills within teams.
•Develop an internal talent pipeline through mentorship programs.
•Conduct succession planning meetings with senior management regularly.
6. Terminologies
• Organization- A systematic arrangement of people brought together to accomplish some specific purpose.
• Managers- Individuals in an organization who direct the activities of others.
• Management-Management is getting work done through others.
• Management is the process of getting things done, effectively and efficiently, with and through other
people.
• Efficiency and effectiveness have to do with the work being done and how it’s being done.
• Efficiency means doing a task correctly (“doing things right”) and getting the most output from the least
amount of inputs.
• Effectively means “doing the right things” by doing those work tasks that help the organization reach its
goals.
• Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the
ends, or attainment of organizational goals.
• Although efficiency and effectiveness are different, they are interrelated.
7. What Three Characteristics Do All Organizations Share?
• The first characteristic of an organization is that it has a distinct purpose, which is
typically expressed in terms of a goal or set of goals.
• That purpose or goal can only be achieved with people, which is the second common
characteristic of organizations
• Finally, the third characteristic is that all organizations develop a deliberate and
systematic structure that defines and limits the behavior of its members. Within that
structure, rules and regulations might guide what people can or cannot do, some
members will supervise other members, work teams might be formed, or job
descriptions might be created so organizational members know what they’re
supposed to do
8. How Are Managers Different from Non managerial Employees?
• Managers, are individuals in an organization who
direct and oversee the activities of other people in
the organization.
• For example, regional sales managers for Motorola
also have responsibilities in servicing some
customer accounts in addition to overseeing the
activities of the other sales associates in their
territories.
• Nonmanagerial employees are people who
work directly on a job or task and have no
responsibility for overseeing the work of
others.
• The employees who ring up your sale at
Home Depot, make your burrito at Chipotle,
or process your course registration in your
college’s registrar’s office are all
nonmanagerial employees.
9. What Titles Do Managers Have?
• Top managers- Individuals who are responsible for making
decisions about the direction of the organization and
establishing policies. Ex:CEO,MD
• Middle managers- Individuals who are typically
responsible for translating goals set by top managers into
specific details that lower-level managers will see get
done. Middle managers may have such titles as
department or agency head, project leader, unit chief,
district manager, division manager, or store manager.
• First-line managers- individuals responsible for directing
the day-to-day activities of nonmanagerial employees. For
example, First-line managers are often called supervisors,
team leaders, coaches, shift managers, or unit
coordinators
10. • Managing involves performing five basic functions: planning, organizing,
staffing, leading, and controlling. In total, these functions represent the
management process. Some of the specific activities involved in each
function include:
• Planning. Establishing goals and standards; developing rules and
procedures; developing plans and forecasts
• Organizing. Giving each subordinate a specific task; establishing
departments; delegating authority to subordinates; establishing channels
of authority and communication; coordinating the work of subordinates.
• Staffing. Determining what type of people should be hired; recruiting
prospective employees; selecting employees; setting performance
standards; compensating employees; evaluating performance;
counseling employees; training and developing employees
• Leading. Getting others to get the job done; maintaining morale;
motivating subordinates
• Controlling. Setting standards such as sales quotas, quality standards, or
production levels; checking to see how actual performance compares
with these standards; taking corrective action as needed.
11. Line and Staff Aspects of Human Resource Management
• All managers have always been, in a sense, human resource
managers, because they all get involved in recruiting, interviewing,
selecting, and training their employees.
• Authority is the right to make decisions, to direct the work of others,
and to give orders. Managers usually distinguish between line
authority and staff authority.
• In organizations, line authority traditionally gives managers the right
to issue orders to other managers or employees. Line authority
therefore creates a superior (order giver)–subordinate (order
receiver) relationship. When the vice president of sales tells her sales
director to “get the sales presentation ready by Tuesday,” she is
exercising her line authority.
• Staff authority gives a manager the right to advise other managers or
employees. It creates an advisory relationship. When the human
resource manager suggests that the plant manager use a particular
selection test, he or she is exercising staff authority.
• line manager: A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing the organization’s
tasks.
• staff manager: A manager who assists and advises line managers
12. Line Managers’ Human Resource Management Responsibilities
1. Placing the right person in the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions
13. What is HRM?
Definition Human resource management (HRM) is the process
of acquiring, training, appraising, and compensating employees,
and of attending to their labor relations, health and safety, and
fairness concerns.
•According to Edwin Flippo, Human Resource Management
(HRM) is defined as “planning, organizing, directing, controlling
of procurement, development, compensation, integration,
maintenance, and separation of human resources to the end
that individual, organizational and social objectives are
achieved.
14. Objectives of Human Resource Management
1. Societal Objectives:Societal objectives focus on the ethical, legal, and social responsibilities of an
organization towards society. These objectives ensure that the organization operates within legal
frameworks and contributes positively to the community.
Examples:
• Corporate Social Responsibility (CSR): A company launching environmental sustainability
programs, such as reducing carbon footprints or waste management.
• Fair Employment Practices: Avoiding discrimination in hiring, ensuring equal opportunities for all
genders, races, and communities.
• Compliance with Labor Laws: Following laws related to wages, working hours, and employee
welfare (e.g., minimum wage laws, health and safety regulations).
15. 2. Organizational Objectives: Organizational objectives focus on aligning HR functions with the strategic goals of the
company to enhance productivity and efficiency.
Examples:
•Talent Acquisition & Retention: Hiring and retaining skilled employees to achieve business growth.
•Enhancing Productivity: Implementing performance management systems like Key Performance Indicators (KPIs) to
improve efficiency.
•Workforce Planning: Ensuring the right number of employees are available to meet business demands, avoiding
understaffing or overstaffing.
3. Functional Objectives: Functional objectives ensure that HRM operates efficiently and contributes effectively to the
organization's success. The goal is to optimize HR activities to meet both employee and organizational needs.
Examples:
•Training & Development: Providing skill enhancement programs to employees to keep up with industry changes.
•Efficient Payroll Management: Ensuring timely and accurate salary processing to maintain employee satisfaction.
•Performance Appraisal System: Regular feedback mechanisms like 360-degree feedback to evaluate and improve
employee performance.
16. 4. Personal Objectives
•The personal objectives of Human Resource Management is to facilitate that employees in achieving
their personal goals.
• The personal objectives of the workers should be preserved, maintained, and nurtured.
•Personal objectives focus on fulfilling employees' individual goals, motivation, and job satisfaction. A
happy and engaged workforce contributes to organizational success.
•Examples:
•Career Growth Opportunities: Providing promotions, leadership programs, and mentorship.
•Work-Life Balance: Offering flexible work arrangements, paid leave, and wellness programs.
•Employee Recognition Programs: Rewarding employees for outstanding performance through
incentives, bonuses, and awards.
17. Difference Between…..
Aspect Personnel Management Human Resource Management
(HRM)
Human Capital Management
(HCM)
Definition A traditional approach
to managing employees,
focusing on
administrative tasks like
payroll, compliance, and
employee welfare.
A strategic function that aligns HR
practices with organizational goals,
focusing on employee
engagement and development.
A business-driven approach that
treats employees as assets whose
value can be measured and
optimized for business success.
Approach Reactive – focuses on
addressing employee
issues as they arise.
Proactive – focuses on long-term
planning and employee
development.
Strategic & Data-Driven – Uses
technology, analytics, and talent
management strategies.
Focus Administrative tasks
(hiring, payroll,
compliance, industrial
relations).
Employee performance,
engagement, and talent
development.
Workforce productivity, analytics,
and business impact.
Nature More bureaucratic and
rule-based, emphasizing
compliance.
More flexible, emphasizing
employee empowerment and
strategic alignment.
18. Aspect Personnel
Management
Human Resource Management
(HRM)
Human Capital Management
(HCM)
Employee
Treatment
Employees are seen as
workers who follow
rules and perform tasks
Employees are resources that
contribute to business success.
Employees are assets whose value
must be optimized through
investment in skills, knowledge,
and engagement.
Decision-
Making
Top-down, with little
employee
participation.
Collaborative decision-making,
involving employees in goal-
setting.
Data-driven decisions using HR
analytics and AI.
Training &
Development
Limited training
focused on job-specific
skills.
Continuous learning, skill
development, and career growth
opportunities.
Personalized learning paths, AI-
based skills development, and
performance analytics.
Recruitment
& Selection
Traditional hiring,
based on qualifications
and experience.
Competency-based hiring with
structured interviews and
assessments.
AI-driven talent acquisition,
predictive hiring, and workforce
planning.
19. Aspect Personnel Management
Human Resource
Management (HRM)
Human Capital Management
(HCM)
Performance
Management
Annual appraisals based on
past performance.
Ongoing feedback, goal
setting, and performance
reviews.
AI-driven performance analytics
and KPI tracking for workforce
optimization.
Compensation
& Rewards
Fixed salary structure and
seniority-based increments.
Performance-based pay,
incentives, and benefits.
Total rewards strategy, including
stock options, employee
experience, and well-being.
Technology
Usage
Minimal use of technology,
mostly manual record-
keeping.
Use of HR software for
payroll, attendance, and
performance management.
AI, big data, and cloud-based HR
solutions for strategic workforce
management.
Data &
Analytics
No data-driven decision-
making.
Uses HR metrics for insights. Advanced workforce analytics, AI-
driven decision-making, and
predictive modeling.
Era of
Dominance
19th – Mid 20th Century
(Industrial Era).
Late 20th Century – Early 21st
Century (Globalization &
Workforce Transformation).
21st Century – Present (Digital &
AI-Driven HR).
20. • Personnel Management = Traditional, Administrative, Compliance-Based.
• HRM = Strategic, Employee-Centric, Performance-Driven.
• HCM = Technology-Driven, Business-Oriented, Focused on Workforce Optimization.
Which One is Better?
• Small organizations with basic HR needs may still use Personnel Management.
• Most modern organizations operate with HRM for strategic people management.
• Tech-driven, global organizations adopt HCM to maximize workforce potential and business
success.
21. NATURE OF HRM
1. People-Oriented
•HRM is primarily focused on managing people within an organization.
•It deals with recruitment, development, motivation, and retention of employees.
•Example: A company invests in leadership development programs to groom future managers.
2. Strategic in Nature
•HRM aligns human resource practices with business goals and objectives.
•It helps organizations gain a competitive advantage by leveraging talent effectively.
•Example: A retail company trains employees to enhance customer experience, leading to increased sales.
3. Continuous & Dynamic
•HRM evolves with changing business environments, workforce expectations, and technology.
•Example: The rise of remote work and AI-driven recruitment has reshaped HR practices.
4. Multi-Disciplinary Approach
•HRM integrates knowledge from psychology, sociology, economics, law, and management.
•Example: Behavioral science is used in motivation theories, while economics is applied in compensation planning.
22. 5. Employee-Centric & Development-Oriented
•HRM focuses on employee growth, well-being, and job satisfaction.
•Example: Companies provide mentorship programs and career planning sessions for employees.
6. Comprehensive & Integrated
•HRM covers the entire employee lifecycle:
• Recruitment & Selection
• Training & Development
• Performance Management
• Compensation & Benefits
• Employee Relations & Engagement
•Example: HR ensures fair appraisal systems and workplace policies to maintain harmony.
7 Legally Compliant & Ethical
•HRM ensures organizations follow labor laws, equal employment opportunities, and workplace safety regulations.
•Example: Companies must adhere to Minimum Wages Act and Industrial Disputes Act in India.
23. 8.Tech-Driven & Data-Oriented
•Modern HRM leverages HR analytics, AI, and HR software for decision-making.
•Example: AI-based tools predict employee turnover rates, helping HR take proactive measures.
9.Universal Application
•HRM applies to all industries, businesses, and government organizations, regardless of size.
•Example: A startup needs HRM for hiring, while a multinational corporation needs HRM for talent
management across countries.
24. Evolution of HRM
• The evolution of HRM is influenced by technological advancements, globalization, and a growing focus
on employee well-being and engagement. The evolution of HRM is like a journey of how
HR management has developed and changed over the years. The evolution of HRM can be described in
the following phases:
25. 1.Industrial Revolution (Late 18th – Early 19th Century) Period: 1760 – 1850
Features:
• The shift from agrarian economies to factory-based production.
• Emergence of large-scale industries requiring organized labor management.
• Harsh working conditions, child labor, and exploitation of workers.
• No formal HRM; employee management was focused on discipline and productivity.
HR Impact:
• The need for managing labor led to the early foundations of personnel management.
• Emergence of labor supervisors and welfare officers.
2. Trade Unionism Era (Mid-19th Century – Early 20th Century) Period: 1850 – 1920
Features:
• Rise of trade unions to demand better wages, working conditions, and rights.
• Strikes and collective bargaining became common labor strategies.
• Governments introduced labor laws to regulate employment practices.
HR Impact:
• Personnel departments were created to manage industrial disputes.
• Companies started recognizing the importance of worker welfare to prevent labor unrest.
26. 3. Social Responsibility Era (Early 20th Century – 1930s) Period: 1900 – 1930s
•Features:
• Companies began focusing on employee welfare beyond wages.
• Rise of welfare capitalism: organizations provided housing, healthcare, and recreation facilities.
• The belief that better working conditions led to increased productivity.
•HR Impact:
• HR took on a welfare role, focusing on employee well-being and workplace safety.
• Development of formal HR policies to improve worker satisfaction.
4. Scientific Management Era (1910s – 1930s) Period: 1911 – 1930s Contributors: Frederick Taylor (Father of
Scientific Management)
•Features:
• Taylor's Scientific Management Theory focused on efficiency and productivity.
• Job specialization, standardization, and time-motion studies were introduced.
• Workers were trained to perform specific tasks for maximum efficiency.
•HR Impact:
• Increased focus on structured training and systematic job design.
• HR's role included recruiting the "right fit" for specific job functions.
27. 5. Human Relations Era (1930s – 1950s) Period: 1930s – 1950s Contributors: Elton Mayo (Hawthorne Studies)
•Features:
• The Hawthorne Experiments at Western Electric showed that worker productivity improved with attention to
social and psychological factors.
• Emphasis shifted from work efficiency to employee motivation and job satisfaction.
• Teamwork, leadership, and communication became crucial HR functions.
•HR Impact:
• Rise of employee engagement, morale-building, and participative management.
• HRM began integrating behavioral science principles into workplace management.
6. Behavioral Science Era (1950s – 1970s) Contributors: Abraham Maslow, Douglas McGregor, Frederick Herzberg
•Features:
• Development of motivational theories:
• Maslow’s Hierarchy of Needs (Basic to self-actualization needs).
• McGregor’s Theory X and Theory Y
• Herzberg’s Two-Factor Theory (Motivators vs. Hygiene factors).
• Understanding individual behavior, leadership, and group dynamics.
•HR Impact:
• Introduction of employee motivation programs, training, and career development.
• HR policies focused on job enrichment, empowerment, and leadership development.
28. 7. Systems Approach Era (1960s – 1980s) Period: 1960s – 1980s
•Features:
• Organizations were seen as open systems interacting with their environment.
• HR was integrated into overall business strategy.
• Coordination between different functions like production, finance, and marketing became essential.
•HR Impact:
• HRM became more structured, using analytics and feedback systems.
• Performance management, organizational design, and change management gained importance.
8. Contingency Approach Era (1980s – Present) Period: 1980s – Present
•Features:
• No single best way to manage employees; strategies depend on external and internal factors.
• HRM aligns with business environment changes like globalization, technology, and workforce diversity.
• Emphasis on strategic HRM, flexible work arrangements, and data-driven HR decisions.
•HR Impact:
• HR evolved from an administrative function to a strategic partner in business success.
• Modern HR practices include AI-driven recruitment, remote work policies, and diversity management.
29. EVOLUTION OF HRM in INDIA
1. Pre-Industrial Era (Ancient & Medieval India - Before 18th Century)
• Apprenticeship & Guild System: Skills were transferred through informal training within families or
communities.
• Kingdoms & Temples: Managed labor for agriculture, irrigation, and temple construction.
• No formal HRM system; labor management was informal and based on social customs.
2. Industrialization & Factory System (1850s – 1940s)
• The British introduced railways, textiles, steel, and coal industries.
• Exploitation of Indian workers: Long hours, low wages, child labor, and poor working conditions.
• Emergence of Labor Laws:
• The Factories Act, 1881 (improved working conditions).
• The Trade Disputes Act, 1929 (recognized industrial disputes).
• Trade Union Movement (1918-1940s): Led by leaders like Mahatma Gandhi and B.R. Ambedkar to improve
workers’ rights.
•HR Impact:
• Companies began hiring welfare officers to manage labor disputes and ensure compliance with laws.
• Personnel Management started as an administrative function in industries.
30. • 3. Post-Independence & Social Welfare Era (1947 – 1970s)
• Government’s Role in HRM Expansion:
• Labor laws strengthened (e.g., Industrial Disputes Act, 1947).
• Public Sector Enterprises (PSEs) like Steel Authority of India (SAIL), Bharat Heavy Electricals Limited
(BHEL), and ONGC were established.
• Employees’ State Insurance (ESI) and Provident Fund (PF) schemes introduced for worker security.
• Focus on Social Justice:
• Reservation policies for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes
(OBC) in employment.
• HR was still administrative and compliance-based, focused on worker welfare rather than employee
development.
• 4. Growth of Professional HRM (1980s – Early 1990s)
• Increased industrialization and expansion of the private sector.
• Introduction of structured HRM practices like training, development, and performance appraisals.
• The National Institute of Personnel Management (NIPM) played a key role in professionalizing HR.
• Companies began moving from Personnel Management to Human Resource Management (HRM).
• HR Impact:
• Employee training programs and structured compensation policies emerged.
• Introduction of HR departments in large organizations.
31. 5. Liberalization & Globalization Era (1991 – 2000s)
• Economic Liberalization (1991): Foreign companies entered India, increasing competition for talent.
• Technology Boom: Rise of IT and service industries (Infosys, TCS, Wipro).
• HRM shifted from compliance to a strategic function:
• Talent acquisition became crucial.
• Performance-based incentives and stock options were introduced.
• Training focused on leadership and employee retention.
• Growth of HR consulting firms (e.g., ABC Consultants, Randstad India).
•HR Impact:
• Performance management systems (PMS) and employee engagement programs became important.
• Companies invested in HR technology like payroll automation and employee databases.
6. Digital & Strategic HRM Era (2010 – Present)
• Use of HR Technology: AI-driven recruitment, HR analytics, and cloud-based HR software.
• Gig Economy & Remote Work: Rise of freelancers and work-from-home models.
• Diversity & Inclusion: Focus on gender equality, LGBTQ+ rights, and disability-friendly workplaces.
• Data-Driven HRM: Predictive analytics for employee performance and retention.
• Work-Life Balance & Employee Well-being: Mental health support, flexible work hours, and hybrid work models.
•HR Impact:
• HR leaders play a strategic role in business decisions.
• HR practices align with global trends, like digital onboarding and AI-driven workforce planning.
32. Importance of HRM
1. Enterprise Level--HRM is essential for businesses to ensure workforce productivity, efficiency, and alignment
with organizational goals.
Talent Acquisition & Retention – Helps in hiring the right employees and retaining top talent.
Employee Development – Provides training and career growth opportunities.
Performance Management – Enhances productivity through structured evaluations and incentives.
Employee Engagement – Improves job satisfaction and reduces turnover.
Workplace Culture & Compliance – Maintains a positive work environment and ensures adherence to labor
laws.
• Example: A multinational company invests in employee development programs to enhance leadership skills
and innovation.
2. Individual Level--HRM impacts employees by ensuring fair treatment, job satisfaction, and personal growth.
Career Growth & Development – Provides training, mentorship, and promotions.
Job Satisfaction & Motivation – Offers recognition, benefits, and a positive work environment.
Work-Life Balance – Encourages policies like flexible work hours and wellness programs.
Equal Opportunities & Fair Treatment – Ensures workplace diversity and inclusion.
• Example: A software company introduces remote work options to improve work-life balance and employee
happiness.
33. 3. Society Level--HRM contributes to social stability and community welfare.
Reduction in Unemployment – HRM policies promote job creation and workforce development.
Fair Labor Practices – Ensures ethical treatment of workers, preventing exploitation.
Corporate Social Responsibility (CSR) – Encourages companies to invest in social causes like education and
healthcare.
Workplace Diversity & Inclusion – Promotes equal opportunities for different groups.
Example: Companies supporting social initiatives like women empowerment programs create positive societal
change.
4. National Level--HRM helps in economic growth and national development.
Economic Development – Skilled and productive employees contribute to national GDP.
Improved Standard of Living – Well-paid and satisfied employees lead to economic prosperity.
Employment Generation – HRM ensures workforce planning and job creation.
Global Competitiveness – Strengthens industries through human capital development.
• Example: Government-backed HR policies, like India’s Skill India Mission, enhance employability and
economic growth.
35. • HRM plays the centre stage role in an organisation to meet the challenges of a dynamic and
competitive environment. In general the HRM functions are broadly of two categories: Managerial
and Operational.
I. Managerial Functions Managerial functions of human resource management involve planning,
organising, directing and controlling. All these functions influence the operative functions.
A)Planning: It is a predetermined course of action. Planning pertains to formulating strategies of
programmes and changes in advance that will contribute to the organisational goals.
B) Organising: essential to carry out the determined course of action. An organisation establishes
relationships among the employees so that they can collectively contribute to the attainment of
company goals.
C) Directing: The next logical function after completing planning and organising is the execution of the
plan. The willing and effective cooperation of employees for the attainment of organisational goals is
possible through proper direction. Tapping the maximum potentialities of the people is possible
through motivation and command.
D) Controlling: Controlling involves checking, verifying and comparing of the actuals with the plans,
identification of deviations if any and correcting of identified deviations. Thus, action and operation
are adjusted to pre-determined plans and standards through control.
36. II. Operative Functions
The operative functions of human resources management are related to specific activities of managing
employees, viz., employment, development, compensation and relations.
All these functions are interacted with managerial functions. There are five major operative functions
that HR managers carry out.
A. HR Sourcing
B. Performance and development
C. Compensation management
D. Integration
E. Employee relations
37. 1. HR sourcing: It is concerned with employing the people possessing the required kind and level of
human resources necessary to achieve the organisational objectives. It covers functions such as job
analysis, human resources planning, recruitment, selection, placement, induction and orientation.
i) Job Analysis: It is the process of study and collection of information relating to the operations and
responsibilities of a specific job.
It includes:
•Collection of data, information, facts and ideas relating to various aspects of jobs including men,
machines and materials.
•Preparation of job description, job specifications, job requirements and employee specifications which
will help in identifying the nature, levels and quantum of human resources.
•Providing the guides, plans and basis for job design and for all operative functions of HRM.
38. ii) Human Resources Planning: It is a process for
• determination and assuring that the organisation will have an adequate number of qualified persons,
•available at proper times,
•performing jobs which would meet the needs of the organisation and which would provide satisfaction
for the individuals involved.
It involves:
•Estimation of present and future requirements and supply of human resources based on objectives and
long range plans of the organisation.
• Calculation of net human resources requirements based on present inventory of human resources.
•Taking steps to mould, change and develop the strength of existing employees in the organisation so as
to meet the future human resources requirements.
•Preparation of action programmes to get the rest of human resources from outside the organisation
and to develop the human resources in terms of existing employees.
39. iii) Recruitment: It is the process of searching for prospective employees and stimulating them to apply for
jobs in an organisation. It deals with:
• Identification of existing sources of applicants and developing them.
•Creation/identification of new sources of applicants.
•Stimulating the candidates to apply for jobs in the organisation.
•Striking a balance between internal and external sources.
iv) Selection: It is the process of ascertaining the qualifications, experiences, skills, knowledge etc., of an
applicant with a view to appraising his/her suitability to a job. This function includes: Framing and developing
application blanks.
•Creating and developing valid and reliable testing techniques.
•Formulating interviewing techniques.
•Checking of references.
•Setting up a medical examination policy and procedure.
•Line managers decision.
• Sending letters of appointment and rejection.
• Employing the selected candidates who report for duty.
40. v) Placement: It is the process of assigning the selected candidate with the most suitable job in terms of
job requirements. It is matching of employee specifications with job requirements.
vi) Induction and Orientation: Induction and orientation are the techniques by which a new employee
is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and
people etc., of the organisation.
•Acquaint the employee with the company philosophy, objectives, policies, career planning and
development, opportunities, product, market share, social and community standing, company history,
culture etc.
•Introduce the employee to the people with whom he has to work such as peers, supervisors and
subordinates.
•Mould the employees attitude by orienting him to the new working and social environment.
41. 2. Performance and Development: It is the process of improving, moulding and changing the skills,
knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and
organisational requirements.
i) Performance Appraisal: It is the systematic evaluation of individuals with respect to their performance on
the job and their potential for development. It includes:
•Developing policies, procedures and techniques.
• Helping the functional managers.
•Reviewing of reports and consolidation of reports.
•Evaluating the effectiveness of various programmes.
ii) Training: It is the process of imparting to the employees technical and operating skills and knowledge. It
includes:
•Identification of training needs of the individuals and the company.
•Developing suitable training programmes.
•Helping and advising line management in the conduct of training programmes.
• Imparting of requisite job skills and knowledge to employees.
• Evaluating the effectiveness of training programmes.
42. iii) Management Development: It is the process of designing and conducting suitable executive
development programmes so as to develop the managerial and human relations skill of employees. It
includes:
• Identification of the areas in which management development is needed.
• Conducting development programmes.
• Motivating the executives.
•Designing special development programmes for promotions.
• Using the services of specialists, and/or utilising of the institutional executive development
programmes.
•Evaluating the effectiveness of executive development programmes.
43. iv) Career Planning and Development: It is the planning of ones career and implementation of career
plans by means of education, training, job search and acquisition of work experiences. It includes
internal and external mobility.
v) Internal Mobility: It includes vertical and horizontal movement of an employee within an
organisation. It consists of transfer, promotion and demotion.
vi) Transfer: It is the process of placing employees in the same level jobs where they can be utilised
more effectively in consistence with their potentialities and needs of the employees and the
organisation.
It also deals with:
•Developing transfer policies and procedures.
•Guiding employees and line management on transfers.
• Evaluating the execution of transfer policies and procedures.
44. vii) Promotion: It deals with upward reassignment given to an employee in the organisation to occupy
higher position which commands better status and/or pay keeping in view the human resources of the
employees and the job requirements.
This function covers.
•Formulating of equitable, fair and consistent promotion policies and procedures.
• Advising line management and employees on matters relating to promotions.
•Evaluating the execution of promotion policies and procedures.
viii) Demotion: It deals with downward reassignment to an employee in the organisation.
• Develop equitable, fair and consistent demotion policies and procedures.
• Advising line managers on matters relating to demotions.
•Oversee the implementations of demotion policies and procedures.
45. ix) Retention and Retrenchment Management:
Employers prefer to retain more talented employees while they retrench less talented employees.
Employers modify existing human resource strategies and craft new strategies in order to pay more
salaries, provide more benefits and create high quality of work life to retain the best employees. And
managements pay less to the less talented employees and plan to retrench the misfits as well as
unwanted employees depending upon the negative business trends.
x) Change and Organisation Development: Change implies the creation of imbalances in the existing
pattern or situation. Organisation development is a planned process designed to improve organisational
effectiveness and health through modifications in individual and group behaviour, culture and systems
of the organisation using knowledge and technology of applied behavioural sciences.
46. C. Compensation Management: It is the process of providing adequate, equitable and fair
remuneration to the employees. It includes job evaluation, wage and salary administration, incentives,
bonus, fringe benefits, social security measures etc.
i) Job Evaluation: It is the process of determining relative worth of jobs.
• Select suitable job evaluation techniques. Classify jobs into various categories.
• Determining relative value of jobs in various categories.
ii) Wage and Salary Administration: This is the process of developing and operating a suitable wage and
salary programme.
It covers:
•Conducting wage and salary survey.
• Determining wage and salary rates based on various factors.
• Administering wage and salary programmes.
•Evaluating its effectiveness.
47. iii) Incentives: It is the process of formulating, administering and reviewing the schemes of financial
incentives in addition to regular payment of wages and salary.
It includes:
•Formulating incentive payment schemes.
•Helping functional managers on the operation.
• Review them periodically to evaluate effectiveness.
iv) Bonus: It includes payment of statutory bonus according to the Payment of Bonus Act, 1965 and its
latest amendments.
v) Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these
benefits to motivate the employees and to meet their lifes contingencies.
These benefits include: Disablement benefit. Housing facilities. Educational facilities to employees
and children. Canteen facilities. Recreational facilities. Conveyance facilities. Credit facilities.
Legal clinics. Medical, maternity and welfare facilities.
48. vi) Social Security Measures: Managements provide social security to their employees in addition to the
fringe benefits.
These measures include:
Workmens compensation to those workers (or their dependents) who involve in accidents.
•Maternity benefits to women employees.
• Sickness benefits and medical benefits.
• Disablement benefits/allowance.
•Retirement benefits like provident fund, pension, gratuity etc.
49. D. Integration: Practicing various human resources policies and programmes like employment, development,
compensation and interaction among employees create a sense of relationship between the individual worker and
management, among workers and trade unions and the management.
It includes:
•Employee engagement
•Motivating the employees.
• Boosting employee morale.
• Developing the communication skills & leadership skills.
•Grievance redressal
• Handling disciplinary cases by means of an established disciplinary procedure.
•Counseling the employees in solving their personal, family and work problems and releasing their stress, strain and
tensions.
•Providing a comfortable work environment by reducing fatigue, monotony, boredom and industrial accidents.
•Improving quality of work life of employees through participation and other means.
50. E. Employee Relations: The term industrial relations‟ refers to the study of relations among employees,
employers, government and trade unions. Industrial relations include:
•Trade unionism
•Collective bargaining
•Industrial conflicts
• Workers participation in management
51. HR Policies
• HR Policies are formal guidelines and rules established by an organization to manage its human
resources. These policies provide a framework for decision-making, ensuring consistency,
fairness, and legal compliance in employee-related matters. They reflect the company’s values,
culture, and strategic goals while also protecting both employee and employer interests.
• They are developed by the HR Manager in consultation with the top management to assist the
managers at various levels to deal with the people at work. HR Policies are continuing guidelines
of the organization which are intended for adoption in managing its people.
Importance of HR Policies:
• Consistency: Ensures uniform treatment of all employees.
• Compliance: Helps the organization follow labor laws and regulations.
• Conflict Resolution: Provides a clear process to handle workplace disputes.
• Employee Guidance: Sets clear expectations for employee behavior and performance.
• Strategic Alignment: Aligns HR practices with the organization’s goals.
52. Types of HR Policies
1.Originated Policies – Originated policies are developed by the top management of an organization to guide
employees in achieving business goals. These policies reflect the organization’s vision, mission, and strategic
objectives.
Example: A multinational company like Apple Inc. might establish an "Innovation Policy" that encourages employees
to develop new and creative product designs in alignment with the company's brand image.
2.Appealed Policies –Appealed policies arise when employees face situations not covered by existing policies and
request guidance from higher authorities. These policies are formulated in response to specific problems or
challenges.
Example: If an employee in Tata Motors is uncertain about whether their travel expenses for a training program will
be reimbursed, they may seek clarification. If such cases frequently arise, the company may establish a "Travel
Reimbursement Policy" based on these appeals.
3.Imposed Policies – As it is evident from the name of these policies these are formed under imposition or pressure
from external agencies like government, trade associations, and unions. Imposed policies are those that an
organization is required to adopt due to external pressures, such as government regulations, labor laws, industry
standards, or agreements with labor unions.
Example: Environmental Policy at Toyota: Toyota must comply with government-imposed environmental regulations
on carbon emissions. Minimum Wage Policy in McDonald's: McDonald's must follow government-imposed labor laws
regarding minimum wages.
.
53. 4.General Policies –General policies provide broad guidelines and apply to multiple areas within
an organization. They are usually flexible and allow managers discretion in decision-making. These
policies manifests the philosophies and priorities of the top management in formulating the broad
plan for mapping out the organisation’s growth chart.
Example: A company like Google may have a "Workplace Ethics Policy" that broadly outlines the
importance of integrity, professionalism, and equal opportunity but allows managers some
discretion in handling specific ethical concerns.
5.Specific Policies – As it is evident from their name, these policies cover specific issues such as
hiring, rewarding and bargaining. Specific policies are detailed and meant for particular activities or
departments. They provide clear instructions and leave little room for interpretation.
Example: Amazon's Return Policy: Amazon has a specific policy outlining return timelines, refund
procedures, and conditions for different products.
Walmart's Employee Attendance Policy: Walmart has a strict attendance policy detailing leave
procedures, reporting time, and consequences of absenteeism.
54. 6.Written Policies- Written policies are documented and formally communicated to employees.
They serve as official guidelines and can be referred to when needed.
Example: Microsoft's Code of Conduct: Employees receive a written code of conduct that includes
policies on workplace behavior, data security, and ethics. IBM’s Leave Policy: IBM provides
employees with a written document detailing different types of leaves (sick leave, maternity leave,
casual leave, etc.).
7.Implied Policies- Implied policies are not formally documented but are understood and followed
based on organizational culture, traditions, and past practices.
Example: Casual Dress Code in Startups: Many startups like Zomato do not have a written dress
code policy, but employees understand that casual attire is acceptable.Unwritten Overtime
Expectation: In some companies, though not officially stated, employees may be expected to work
extra hours during peak business periods.
55. Benefits of Policies in an Organization
Policies are essential for the smooth functioning of an organization. They provide guidelines for
decision-making, ensure consistency, and promote efficiency. Below are the key benefits of having
well-defined organizational policies:
•Provides Clarity and Consistency--Policies set clear expectations for employees and managers,
ensuring consistency in decision-making across different departments. Example: A uniform HR
policy in a multinational company ensures that all employees, regardless of location, receive the
same benefits and treatment.
•Ensures Compliance with Legal and Ethical Standards--Helps organizations comply with labor
laws, safety regulations, and ethical standards, reducing legal risks.Example: A Workplace
Harassment Policy ensures compliance with labor laws and prevents discrimination in companies
like Google and IBM.
•Improves Decision-Making--Managers and employees can make decisions faster as they follow
predefined policies instead of seeking approvals for every situation.Example: Amazon’s Return
Policy allows customer service representatives to process refunds or replacements without seeking
managerial approval every time.
56. • Enhances Employee Productivity and Engagement--Clear policies reduce confusion, allowing
employees to focus on their tasks without uncertainty.Example: Work-from-Home Policies at
companies like Microsoft and TCS provide structured guidelines, improving employee satisfaction
and productivity.
• Promotes Fairness and Transparency--Policies ensure that employees are treated equally,
reducing favoritism and workplace conflicts.Example: A Performance Appraisal Policy ensures that
promotions and salary increments at Tata Steel are based on merit rather than personal bias.
• Strengthens Organizational Culture--Policies help in shaping a positive work environment by
reinforcing company values and ethics.Example: Diversity and Inclusion Policies at Accenture and
Deloitte promote a culture of equality and respect for all employees.
• Helps in Crisis and Risk Management--Having policies in place helps organizations handle crises
effectively, reducing disruptions. Example: During the COVID-19 pandemic, companies with
Remote Work and Health Safety Policies, like Infosys and Wipro, adapted quickly and minimized
productivity loss.
57. • Improves Customer Satisfaction--Clear company policies help in maintaining service quality and
customer trust.Example: Zappos' Customer Service Policy prioritizes customer satisfaction by allowing
flexible return and refund processes.
• Supports Business Growth and Scalability--As companies expand, having standardized policies ensures
smooth operations across different locations and teams. Example: Franchise Policies at McDonald's
help maintain the same quality, service, and customer experience across all outlets worldwide.
• Facilitates Training and Development--Policies provide a framework for training new employees,
ensuring they quickly adapt to the organization's way of working.Example: Onboarding Policies at
Infosys involve structured training programs for new hires at their Global Education Centre.
58. HR Policies – Steps for Formulation:
The development of HR policies depends upon the day to on the other hand day problems arising in an
organisation and their proper solutions. The prime aim of formulating the HR policy is to provide assistance to the
top executives in reaching the decision in a given situation.
1. Identifying the Need: The first step is recognizing the requirement for a new HR policy or revising an existing
one. A staff expert, a union leader, a first-line supervisor, or a rank-and-file employee may voice the need for
revision of an existing policy. This need may arise due to:
•Changes in labor laws or government regulations
•Employee concerns or grievances
•Business expansion or restructuring
•Market competition and industry trends
Example: A company expanding to multiple locations identifies the need for a Remote Work Policy to
accommodate employees working from home.
59. 2. Accumulating Information:
•After the need for a policy has been accepted, the ensuring step is to collect requisite facts for its formulation. A
committee or a specialist may be assigned the task of collecting the required information from inside and outside
the organisation.
•Once the need is identified, the HR team gathers data from:
•Labor laws and legal requirements
•Best practices in the industry
•Employee feedback and surveys
•Benchmarking against competitors
Example: Before implementing a Maternity Leave Policy, HR collects information on legal requirements (e.g.,
Maternity Benefit Act) and compares policies of similar organizations.
60. 3. Examining Policy Alternatives:
•On the basis of data collected, alternatives are evaluated in view of their contributions to organisational
objectives. It is important to secure active participation of those who are to use and live with the policies.
•HR reviews different policy approaches to find the best fit for the organization. Factors considered include:
•Business feasibility
•Cost implications
•Impact on employee morale and productivity
Example: For a Performance Appraisal Policy, HR evaluates whether to use 360-degree feedback, KPI-based
evaluation, or self-assessment methods based on the company’s goals.
61. 4. Putting the Policy in Writing:
•After the requisite information has been gathered and the alternatives examined, the HR department begins
with the priority of formulating the written expressions of the company’s HR policy. While writing the policy it
is worthwhile to avoid emotional phrases.
•After selecting the best alternative, HR drafts a clear and concise policy document. The policy should include:
Objective & purpose
•Scope (who it applies to)
•Guidelines & procedures
•Consequences for non-compliance
Example: A Code of Conduct Policy clearly states expectations regarding workplace behavior, ethical standards,
and disciplinary actions.
62. 5. Getting Approval:
•To seek approval the HR department should send the policy draft to the top management. The reason is the top
management is authorised to take the final decision whether a policy is adequately represented the organisation’s
objectives or not.
Before implementation, the drafted policy needs approval from:
•HR leadership
•Senior management
•Legal department (to ensure compliance)
Example: A Work-from-Home Policy is reviewed by top management to ensure it aligns with business needs and legal
compliance before approval.
63. 6. Communicating the Policy:
•Once the policy has got the final approval from the top management, it should be communicated throughout
the organisation. To teach people how to handle various personnel problems a real education programme
should be set-up in the light of this newly formulated policy.
•Once approved, the policy must be effectively communicated to employees through:
•Employee handbooks
•Training sessions and workshops
•HR portals and emails
Example: When launching a Diversity and Inclusion Policy, HR conducts awareness programs to educate
employees about the importance of inclusivity in the workplace.
64. 7. Evaluating the Policy:
•Evaluation of the policy is needed by the passage of time, on the basis practical experience of those who use it
and of those who are affected by it. There may be situations when an organisation is not getting the expected
output. This requires the needed modifications in die policies.
•For serious difficulty or hindrance with policy along with suggestions should be reported to the top
management. Such knowledge will help the management to decide whether there is a need to re-state or re-
formulate the policy.
•HR regularly reviews and updates policies to ensure they remain relevant and effective. Evaluation methods
include:
•Employee feedback surveys
•Reviewing legal and regulatory changes
•Analyzing HR metrics (e.g., turnover rates, grievances)
Example: A company evaluates its Flexible Work Hours Policy after six months by analyzing productivity levels
and employee satisfaction. Adjustments are made based on feedback.
65. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)
• A Human Resource Information System (HRIS) is a software solution that helps organizations
manage HR functions efficiently.
• It integrates various HR processes, such as employee records, payroll, recruitment, performance
management, and compliance tracking, into a centralized system.
• A human resource information system (HRIS) is a systematic procedure for collecting, storing,
maintaining, retrieving and validating data needed by an organisation about its human resources.
The HRIS is usually a part of the organisation’s larger management information system (MIS).
• A human resources information system (HRIS) is computer software used to store and track
employee data ranging from attendance and payroll to manager evaluations and incident records.
66. Features of HRIS
• Employee Information Management--Stores personal details, job history, qualifications, and salary
information.
Example: HR can quickly access an employee’s promotion history in the system.
• Recruitment & Onboarding--Automates job postings, applicant tracking, and onboarding processes.
Example: An HRIS can automatically filter resumes based on keywords to shortlist candidates.
• Payroll & Compensation Management --Manages salaries, deductions, bonuses, and tax compliance.
Example: Employees receive automated salary slips and tax calculations through HRIS.
• Attendance & Leave Management --Tracks employee work hours, overtime, and leave balances.
Example: Employees can apply for leave online, and managers can approve it via the system.
• Performance Management--Conducts appraisals, 360-degree feedback, and goal setting.
Example: HRIS allows managers to set Key Performance Indicators (KPIs) and track progress.
• Training & Development--Tracks employee learning progress and training schedules.
Example: HRIS can notify employees about mandatory compliance training sessions.
• Compliance & Reporting--Ensures adherence to labor laws, tax regulations, and company policies.
Example: HRIS generates reports for audits and legal requirements like provident fund contributions.
67. Objectives of human resource information systems
•To identify the information needed by the HR for every team and business process
•To form and maintain a comprehensive data of employee information to fulfill different business
needs and requirements
•To produce the data in the necessary format as and when needed to the appropriate personnel
•To develop complete technical and functional specifications to help the HR team
•To use the most efficient method and algorithms for data processing and analysis
•To identify what information needs to be retrieved and reported back
•To prepare relevant and supporting documentation for easier learning and management of the
HRIS
•To provide the necessary security and protect confidential employee information
•To maintain the existing information and keep it up-to-date
68. What does an HRIS platform do?
• HRIS platforms improve HR management processes by collecting employee data, organizing that
data, and using that data to make HR processes more efficient through automation and accessible
interfaces. They help organizations on two levels: the organizational level and the employee level.
• At the organizational level, HRIS tools help HR teams review an organization's structure at a bird's-
eye level by turning abstract processes into sortable elements like roles, tasks, and data points.
From there, it allows users to map processes, analyze data sets, track performance, and apply
automation to streamline HR operations. This gives admins convenient repositories of information
to manage organization-wide HR processes.
• On the employee side, individual users get convenient dashboards for accessing modules for things
like time logging, time-off requests, benefits review, and pay stub requests.
• The most fundamental feature of an HRIS platform is its ability to store and organize employee
information. This helps HR teams mobilize HR processes by keeping essential employee data
consolidated, updated, and accessible at all times. It also helps HR teams apply actionable values to
employee performance, identify training paths, and monitor employee growth to help
organizations improve employee performance.
69. STEPS IN IMPLEMENTING AN HRIS
• Step 1 Inception of Idea: The originator of the idea should prepare a preliminary report showing
the need for an HRIS and what it can do for the organisations.
• Step 2 Feasibility Study: Feasibility study evaluates the present system and details the benefits
of an HRIS. It evaluates the costs and benefits of an HRIS.
• Step 3 Selecting a Project Team: Once the feasibility study has been accepted and the resources
allocated, a project team should be selected. The project team should consist of an HR
representative who is knowledgeable about the organisation’s HR functions and activities and
about the organisation itself and representatives from both management information systems
and payroll.
• Step 4 Defining the Requirements: A statement of requirements specifies in detail exactly what
the HRIS will do. A large part of the statement of requirements normally deals with the details of
the reports that will be produced. Naturally, the statement also describes other specific
requirements.
70. • Step 5 Vendor Analysis: This step determines what hardware and software are available that will
best meet the organisation’s needs for the lowest price. The results of this analysis will determine
whether to purchase an ‘off-the-shelf’ package or develop the system internally.
• Step 6 Package Contract Negotiation: After a vendor has been selected, the contract must be
negotiated. The contract stipulates the vendor’s responsibilities with regard to software,
installation, service, maintenance, training, and documentation.
• Step 7 Training: Training usually begins as soon as possible after the contract has been signed.
First, the members of the project team are trained to use the HRIS. Towards the end of the
implementation, the HR representative will train managers from other departments in how to
submit information to the HRIS and how to request information from it.
71. • Step 8 Tailoring the System: This step involves making changes to the system to best fit the needs of the
organisation. A general rule of thumb is not to modify the vendor’s package, because modifications
frequently cause problems. An alternative approach is to develop programs that augment the vendor’s
program rather than altering it.
• Step 9 Collecting the Data: Prior to start-up of the system, data must be collected and entered into the
system.
• Step 10 Testing the System: Once the system has been tailored to the organisation’s needs and the data
entered, a period of testing follows. The purpose of the testing phase is to verify the output of the HRIS and
to make sure it is doing what it is supposed to do. All reports should be critically analysed for accuracy.
• Step 11 Starting Up: Start-up begins when all the current actions are put into the system and reports are
produced.
• Step 12 Evaluation: After the HRIS has been in place for a reasonable length of time, the system should be
evaluated.
73. 1.Applicant Tracking System
•One of the most obvious functions of human resource information systems is an automated
application tracking system that helps HRs manage applicant details and smoothly perform
recruitment functions. The system allows HRs to store candidate information and resume to help
them properly match their profile with the available roles and job requirements. This ensures that
they efficiently screen applicants from the available pool and shortlist them for future rounds.
Automates resume screening, interview scheduling, and communication with applicants.
Example:
A company using LinkedIn Talent Hub can automatically filter resumes based on keywords,
schedule interviews, and track candidate status.
74. 2.Payroll Automation And Management
•A prime function of an HRIS is to automate and manage the payroll of existing employees. All HRs need to do is enter
the new employee’s bank details, their employment details like contract type, and salary.
• Then, based on attendance, time logs, and other constraints, payment orders and payslips are automatically
generated. Thus automates payroll calculations, including salaries, bonuses, and deductions.
•Ensures compliance with tax regulations and labor laws.
•Integrates with attendance and leave management to calculate accurate pay.
Example:
A company using ADP Payroll can process employee salaries, deduct taxes, and generate payslips automatically.
3.Employee Benefits Administration
•Manages employee benefits like health insurance, retirement plans, and leave policies.
•Provides self-service portals for employees to select and update benefits.
Example:
An organization using Workday Benefits allows employees to enroll in health insurance plans and track benefit
utilization.
75. 4.Employee Time And Attendance Data
•Tracks employee working hours, shifts, overtime, and absences.
•Integrates with biometric devices and online attendance tracking.
•Ensures compliance with labor laws regarding working hours.
Example: Companies using Kronos Workforce Central can track employee attendance via biometric scans and
generate automated work-hour reports.
5.Training Management--The training module allows HRs to easily track employee certification and learning details
along with information on their current skills and qualifications. This aids in better analysis of an employee’s
capability and helps HRs better outline future courses or training modules. Most software development companies
refer to this module as an LMS or a Learning Management System, which can also be created as stand-alone
software.
•Stores employee training history and certification records.
•Assigns and tracks training programs to improve workforce skills.
•Provides online learning platforms for employees.
Example: A company using SAP Success Factors can create customized training modules for employees and track
their completion.
76. 6.Performance Management
•A crucial part of employee management is the maintenance and analysis of their performance data.
•Automates performance reviews, goal setting, and feedback processes.
•Provides real-time performance tracking through KPIs and analytics.
•Enables 360-degree feedback from peers, managers, and subordinates.
•Example:
A company using BambooHR can set performance goals, track progress, and conduct annual reviews
digitally.
77. 7.Succession and Replacement Planning
•For the guaranteed success of any business process or project, the roles and responsibilities must be clearly
divided among employees. Moreover, organizations must be equipped to handle any inconveniences and delays.
A common problem that might arise is the absence of an employee or their transfer to other crucial processes. In
this case, it is necessary to create a talent pipeline and have replacements readily available. This helps in the
better management of the key roles and responsibilities of an organization and better guarantees project success.
•Identifies high-potential employees for leadership roles.
•Helps create career development plans and mentorship programs.
•Ensures business continuity by preparing employees for future leadership.
Example:
A multinational firm using Oracle HCM can track leadership readiness and create succession plans for key
positions.
78. 8.Tax reporting: On the admin side, an HRIS can help companies maintain proper tax reporting. Some HRIS platforms
also offer extras like automatic charitable deductions, built-in savings tools, and discount programs. Since not all HRIS
products offer the same suites of features or package them the same way into tiered pricing plans’
•Automates tax calculations and compliance with local tax laws.
•Generates tax reports and assists in filing employee tax returns.
•Reduces the risk of penalties by ensuring timely and accurate tax payments.
Example:
A company using QuickBooks Payroll can automatically calculate payroll taxes and generate compliance reports.
9.Reporting And Analytics
•With advanced technologies like data analytics and AI, systems can also provide detailed insights that can help HRs
make better decisions quickly.
•Generates reports on workforce trends, hiring efficiency, turnover rates, and employee performance.
•Uses data analytics to improve HR decision-making.
•Provides dashboards with real-time insights.
Example:
An organization using Tableau HR Analytics can analyze employee retention trends and predict workforce needs.
79. Differences Between An HRIS And An HRMS
Feature HRIS (Human Resource Information System) HRMS (Human Resource Management
System)
Definition A system focused on storing and managing
employee-related data.
A more advanced system that includes
HRIS features along with additional
workforce management tools.
Core Functionality Primarily deals with data management,
record-keeping, and compliance.
Covers HRIS functions plus broader HR
activities like payroll, time tracking, and
workforce planning.
Focus Area Data-driven HR functions (employee records,
compliance, reporting).
Comprehensive HR functions
(recruitment, payroll, benefits,
performance management).
Payroll
Management
Not typically included or requires integration
with payroll systems.
Includes payroll automation and tax
compliance features.
HRIS (Human Resource Information System) and HRMS (Human Resource Management System) are both
software solutions used in Human Resource (HR) management, but they differ in scope and functionality.
Below is a detailed comparison:
80. Feature HRIS (Human Resource Information System) HRMS (Human Resource Management
System)
Time and Attendance
Tracking
May store attendance data but does not
usually include tracking features.
Provides time tracking, shift
management, and overtime
calculations.
Talent Management Limited to employee records and job history. Includes recruitment, onboarding,
training, and succession planning.
Performance
Management
May store performance review data but lacks
advanced evaluation tools.
Includes performance tracking,
appraisals, and goal-setting features.
Employee Self-
Service
Allows employees to update basic information
(contact details, tax info).
Offers self-service portals for benefits
selection, payroll access, and leave
requests.
Workforce Planning
& Analytics
Basic reporting on employee data. Advanced analytics, workforce
forecasting, and decision-making
tools.
Best For Small to mid-sized companies needing
employee data management.
Larger organizations needing a fully
integrated HR solution.
81. Types of HRIS platforms
While all HRIS tools are built to improve HR processes, different systems focus on different functions.
Operational HRIS tools (predictably) are designed for improving human capital management at the
operational level.
Focuses on day-to-day HR activities such as employee records, payroll, attendance, and compliance.
Helps HR teams manage administrative tasks efficiently.
Key Functions:
Employee information management
✔
Payroll and benefits administration
✔
Time and attendance tracking
✔
Leave and absence management
✔
Compliance reporting
✔
Example:BambooHR – Manages employee records, payroll, and time tracking for small and mid-sized
companies.
82. 2. Strategic HRIS tools (also predictably) are used to make strategic decisions about human
resources and human capital.
•Focuses on long-term HR planning and aligning HR strategy with business goals.
•Helps HR leaders make data-driven decisions for talent management, leadership development, and
succession planning.
Key Functions:
Workforce forecasting and planning
✔
Succession planning
✔
HR analytics and reporting
✔
Employee engagement and performance management
✔
Example: Workday HCM – Provides predictive analytics for workforce planning and succession
management.
83. 3. Tactical HRIS platforms help organizations keep their HR processes nimble and efficient. These
tools can aggregate both internal and external financial and performance data to help managers
and stakeholders see how their processes stack up against the industry as a whole, so they can
make decisions that improve bottom lines, retain talent, and keep up with the competition.
•Supports HR decision-making in areas like recruitment, job analysis, and training.
•Helps HR teams with workforce planning and resource allocation.
•Key Functions:
Recruitment and applicant tracking
✔
Training and development planning
✔
Workforce analytics
✔
Job analysis and competency mapping
✔
Example: Greenhouse – An advanced applicant tracking system (ATS) that helps businesses
streamline hiring processes.
84. 4. Limited-function HRIS platforms offer custom or pre-set features from the previous three types.
For example, they may offer payroll operational functions and benefits administration tactical tools.
While limited-function tools have fewer features, they still organize employee and business data.
•A basic HRIS with a single or limited set of HR functions (e.g., payroll or attendance tracking only).
•Suitable for small businesses or organizations with minimal HR needs.
Key Functions:
Payroll processing
✔
Employee record-keeping
✔
Attendance tracking
✔
Example: Gusto – A payroll-focused HRIS that automates salary payments and tax compliance for
small businesses.
85. 5. Comprehensive HRIS tools store all your HR data and provide cross-functional features in an all-in-one
platform. Because they store different types of data in a central place, they can help with operational,
strategic, and tactical processes. They can even combine different types of data for more comprehensive
insights. Suitable for large enterprises managing a diverse workforce.
Key Functions:
Payroll and benefits management
✔
Recruitment and onboarding
✔
Performance management
✔
Learning and development
✔
Workforce planning and HR analytics
✔
Example: SAP Success Factors – A complete HRIS solution covering payroll, performance management, and
workforce planning.
86. Benefits of a human resources information system
•Improved efficiency: Since an HRIS automates so many HR admin tasks, it frees up a huge amount of time
and gets what would be very annoying and tedious tasks done in the easiest way possible.
•Improved accuracy: As in any situation, automation prevents mistakes by eliminating the possibility for
human error.
•Increased transparency: HRIS systems can make it easier for employees to access their own records and
see what information is being stored about them.
•Enhanced security: Keeping all employee data in one central location minimizes the opportunities for a
security breach and keeps personal information safe.
•Refined HR strategy: HRIS platforms track analytics on employee performance and business trends. HR
teams can use this data to shape their strategies and gauge their success.
•Improved scalability: As you hire employees, break into new teams, and handle more data, an HRIS grows
with you. One good system beats replacing your tech stack every few years.
•Compliance assistance: Keeping up with compliance changes usually takes careful research and
monitoring. HRIS platforms can inform you of security risks and new policies to prevent compliance issues.
87. ROLE OF HR MANAGERS
Human resource managers, now a days, wear many hats. They perform mainly three different types of roles, while
meeting the requirement of employees and customers, namely administrative, operational and strategic.
1.Administrative Roles:-
i.Policy maker: The human resource manager helps management in the formation of policies governing talent
acquisition and retention, wage and salary administration, welfare activities, personnel records, working
conditions etc. Example: Creating a company-wide policy for remote work and hybrid work models.
ii.Administrative expert: The administrative role of an HR manager is heavily oriented to processing and record
keeping. Maintaining employee files, and HR related databases, processing employee benefit claims, answering
queries regarding leave, transport and medical facilities, submitting required reports to regulatory agencies are
examples of the administrative nature of HR management.
iii.Advisor: It is said that personnel management is not a line responsibility but a staff function. The personnel
manager performs his functions by advising, suggesting, counseling and helping the line managers in discharging
their responsibilities relating to grievance redressal, conflict resolution, employee selection and training.
88. iv. Housekeeper: Ensures workplace cleanliness, safety, and discipline. Manages office facilities,
hygiene, and ergonomics.Example: Implementing health and safety protocols in a factory setting.
v. Counselor: Assists employees in dealing with personal and professional challenges.Provides career
guidance and emotional support. Example: Helping an employee manage work stress through
counseling and mental health resources.
vi. Welfare officer: Looks after employee well-being, including health, safety, and work-life
balance.Organizes welfare programs like employee assistance programs (EAPs).Example: Introducing a
wellness program that includes gym memberships and mental health support.
vii. Legal consultant: Personnel manager plays a role of grievance handling, settling of disputes,
handling disciplinary cases, doing collective bargaining, enabling the process of joint consultation,
interpretation and implementation of various labour laws, contacting lawyers regarding court cases,
filing suits in labour courts, industrial tribunals, civil courts etc. Example: Ensuring adherence to
workplace harassment laws and handling employee grievances legally.
89. 2. Operational Roles:-
•Recruiter: Manages the hiring process, from job postings to onboarding.Ensures the company attracts
top talent.Example: Using LinkedIn and job portals to source and hire candidates efficiently.
•Trainer, developer, motivator: Organizes training sessions to improve employee skills and
performance.Example: Conducting leadership training for newly promoted managers. Helps
employees grow through career planning, coaching, and mentoring.Example: Implementing succession
planning for high-potential employees. Encourages employee engagement, productivity, and job
satisfaction.Example: Designing an incentive program to reward high-performing employees.
•Coordinator: Bridges communication between employees and management.Ensures smooth
implementation of HR policies.Example: Coordinating between departments to implement a flexible
work policy.
•Mediator: The personnel manager acts as a mediator in case of friction between two employees,
groups of employees, superiors and subordinates and employees and management with the sole
objective of maintaining industrial harmony. Acts as a neutral party in employee grievances. Example:
Mediating a conflict between two employees over project responsibilities.
90. 3. Strategic role :
i. Change agent : HR’s role as a change agent is to replace resistance with resolve, planning with results and fear of
change with excitement about its possibilities. HR helps an organisation identify the key success factors for change and
assess the organization’s strength and weakness regarding each factor. It may not decide what changes the
organisation is going to embrace, but it would certainly lead the process to make them explicit.
In helping to bring about a new HR environment there needs to be clarity on issue like who is responsible for bringing
about change? Why do it? What will it look when we are done? Who else needs to be involved? How will it be
measured? How will it be institutionalized? How will it be measured? How will it get initiated, developed and
sustained?
91. ii. Strategic partner: HR’s role is not just to adapt its activities to the firm’s business strategy, nor
certainly to carry out fire-fighting operation like compensating employees. Instead, it must deliver
strategic services cost effectively by building a competent, consumer-oriented work force. It must
assume important roles in strategy formulation as well as strategy implementation. To this end, it
must identify external opportunities from time to time, develop HR based competitive advantages
and move in to close the gaps advantageously (like excellent training centre, design centre,
automation centre etc. which could be used by others as well). While implementing strategies, HR
should develop appropriate ways to restructure work processes smoothly.
92. RESPONSIBILITES
• Hiring and Recruitment
• As an HR manager, the role is crucial in creating effective hiring and recruitment processes. As a matter of fact, this is necessary to ensure the
success of the organization. Most importantly, these responsibilities extend beyond administrative tasks. The HR manager, therefore, plays a
strategic role in acquiring the right talent that is essential to build a strong company.
• Create Compelling Job Descriptions
• Needless to say, this entails clearly outlining the responsibilities, qualifications, and expectations for each role within the organization. In essence,
this helps in attracting suitable candidates who suit the organization’s culture and requirements.
• Design Effective Onboarding and Training Programs
• Design comprehensive onboarding programs and facilitate training and development initiatives to ensure that the new hires feel welcome and
supported. Furthermore, this also helps them to get better equipped to transition into their new roles smoothly.
• Strategic Talent Management
• The role of HR manager also calls for implementing strategic talent management practices. This includes identifying high-potential employees,
creating development opportunities, and implementing succession planning. Moreover, by nurturing and retaining top talent, HR managers can
ensure a strong and capable workforce. Again, this contributes to the long-term success of the organization.
• Develop Employee Retention Strategies
• Another requisite is that one must focus on implementing initiatives to improve employee satisfaction and engagement. In short, this necessitates
creating strategies for higher retention rates. Furthermore, this involves conducting exit interviews, analyzing employee feedback, and proactively
addressing any issues or concerns raised by employees.
93. • Manage Compensation and Benefits
• HR managers are responsible for implementing competitive compensation and benefits packages to attract
and retain talented employees. Therefore, one needs to stay up-to-date on the market trends. Moreover,
HR managers need to benchmark salaries to ensure employees are fairly compensated for their skills and
contributions.
• Streamline Event Planning and Scheduling
• Organizing job fairs to attract potential talent is a crucial aspect of the recruitment process. Simply put, the
role of HR manager is vital for ensuring the hiring processes run smoothly and efficiently. Equally important
is providing a positive experience to the candidates. This, in turn, helps drive successful hiring outcomes.
• Ensure Compliance With Rules and Regulations
• An HR manager should ensure the organization complies with employment laws, internal policies, and
industry standards. In addition, they also need to promote a fair and respectful work culture. This further
contributes to the overall growth of the organization.
94. • Facilitate Performance Reviews
• Performance reviews are essential for providing feedback, setting goals, and building a future roadmap for
employees. Therefore, HR managers must facilitate the performance review process and help employees if
they face any challenges during the same.
• Setting an Ideal Work Culture
• The role of HR manager is significant in shaping and maintaining an ideal work culture within the
organization. Hence, they need to actively promote a positive work culture by implementing rewards and
recognition programs. In brief, cultivate a culture that values diversity and inclusion. Moreover, encourage
open communication and respect. Create an environment where employees can thrive and contribute their
best. Furthermore, regularly assess and refine the work culture to ensure it aligns with the organization’s
overall mission and vision. This will definitely attract top talent and enhance employee satisfaction and
retention.
95. Qualities of an HR Manager
• Leadership Skills - An HR Manager is the bridge between the employee and the organization. Hence his leadership
skills such as the ability to understand employees and their needs, delegate tasks, visualize the bigger picture and
remain aligned to the vision of the organization are crucial. It is also important that they possess sound knowledge
of the functioning of every department of the organization, such as marketing, finance, sales and so on.
• Communication Skills - Communication should be the middle name of an HR Manager. He is responsible for much
of the interpersonal communication with the employees and top bosses of the organization. Hence he must be
both a people’s person and remain aligned with the organization.
• Self-Discipline - Because the HR manager deals with real people, challenges can crop up at any hour. He is also
engaged in delivering multiple tasks throughout the day. Hence he should be adept at prioritizing his tasks and
managing any issues that could come up. This requires great mental and intellectual discipline.
• Ethics and Integrity - The HR is aware of confidential company policies pertaining to salary packages, placement
criteria, selection processes, etc. He is also the one who receives the smallest to the biggest complaints such as
money laundering and sexual misconduct. Hence his sense of fairness and integrity must be in the right place. He
must be true to his conscience at all times.
• Empathetic Attitude - The HR should essentially be a people’s person. This is a soft skill that can be built with time
but it is at the center of the role. He should be able to work towards the satisfaction of all employees while
retaining the essence of the organization at the same time. He should take care to not involve himself in personal
issues of the employees and restrict himself to professional complaints unless absolutely necessary.
• Legally Sound - The HR makes key decisions pertaining to policy frameworks for the organization. He should
ensure he consults the legal team regarding the implications of the same. This will enable him to tackle any
loopholes or issues that might crop up.
97. Five major models and their
purpose
1. They provide an analytical framework for studying HRM (for
example, situational factors, stakeholders, strategic choice
levels, competence).
2. They legitimise certain HRM practices.
3. They provide a characterisation of HRM that establishes
variables and relationship to be researched.
4. They serve as a heuristic device—something to help us
discover and understand the world for explaining the nature
and significance of key HR practices.
97
98. The five HR models
(i) The fombrun, Tichy and Devanna Model
(ii) The Harvard Model
(iii)The Guest Model
(iv)The Warwick Model
(v) Dave Ulrich Model
98
99. 1. The fombrun, Tichy and Devanna Model
99
• Being the first model (dates
back to 1984), this emphasises
just four functions and their
interrelatedness.
• The four functions are:
selection, appraisal,
development and rewards.
• The Fombrun model is
incomplete as it focuses on
only four functions of HRM and
ignores all environmental and
contingency factors that
impact HR functions.
100. 2. The Harvard Model
The Harvard model claims to be comprehensive in
as much as it seeks to comprise six critical
components of HRM.
100
101. The Harvard Model
The Harvard model claims to be comprehensive in as much as it seeks to comprise six
critical components of HRM.
1. The stakeholders interests recognize the importance of ‘trade offs’ between the interests
of the owners and those of employees. Trade offs also exists among other interest groups.
2. The situational factors influence management’s choice of HR strategy. These situational
factors do influence HR strategy and their inclusion in the model is a welcome thing.
3. HRM policy choices emphasise the management’s decisions and actions in terms of
HRM can be fully appreciated only if it is recognised that they result from an interaction
between constraints and choices.
101
102. The Harvard Model…
4. Organisational commitment, employee competence, congruence and cost effectiveness
constitute HRM outcomes. The assumption here is that employees have talents which are
rarely exploited for organisational growth and that they are willing to grow with the
organisation if a participative environment is available.
5. The long-term consequences include societal well-being, organisational effectiveness,
and individual welfare. There is obvious linkage among the three. Employee welfare leads
to organisational effectiveness and efficacy of all organizations contributes to societal well-
being.
6. The feedback loop is the sixth component of the Harvard model. As was stated above,
situational factors influence HRM policy and choices, and are influenced by long-term
consequences.
102
103. 3. the Guest Model
• This model was developed by David Guest in 1997 and claims to be much superior to
other models.
• This model claims that the HR manager has specific strategies to begin with, which
demand certain practices and when executed, will result in outcomes.
103
104. 4. The Warwick Model
• This model was developed by two researchers, Hendry and Pettigrew of University of
Warwick hence it is named as Warwick model.
• Like other models, the Warwick proposition centres around five elements:
• Outer context (macro environmental forces)
• Inner context (firm specific or micro environmental forces)
• Business strategy content
• HRM context
• HRM content
• The strength of the model is that it identifies and classifies important environmental
influences on HRM.
• It maps the connection between the external and environmental factors and explores
how HRM adapts to changes in the context.
104
106. 5. The ulrich Model
• In his epic book Human Resource Champions, Dave Ulrich proposes a contemporary HR
model which lifts HR function from mere transactional to transformational role.
• Ulrich identifies four distinct roles that HR team should deliver: strategic,
administration, champion, and change agent
106
