HUMAN RESOURCE MANAGEMENT

Human resource management (HRM) is a management function that helps manager’s recruit,
select, train and develops members for an organization.

HRM involves the application of management function and principles.

Prospects of HRM Nature of HRM Employee hiring

Industrial relations HRM Employee and

executive remunciation

Employee maintenance Employee motivation

HRM is a broad concept

Personal Management(PM) and Human Resource Development (R&D) are a part of

HRM.

The societal objectives of HRM seek to ensure that the organization becomes socially
responsive.

Organizational objective of HRM

Make sure that HRM is not a standalone department but rather a means to assist
the organization reach its primary objective.

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  Legal compliance
 Benefits
Social Objective  Union-management relation
 Human resource planning
 Employee relations
 Selection
Organizational Objective  Training & Development
 Appraisal
 Placement
HRM
 Assessment
Objective
 Appraisal
Functional Objective  Placement
 Assessment
 Training & Development
 Appraisal
Personal Objective  Placement
 Compensation
 Assessment

HRM Small Scale Unit

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 Owner/manager

Production Sales Office Accountant

Manager Manager Manager

Personal
Assistant

HRM in large scale unit

Director Director Director Director Director

Product Finance Personal/HRM Marketing R&D

Outsourcing

Out sourcing is also called subcontracting. It is the process by which employees

transfer routine work to another organization that specializes in that work and can perform it
more efficiently.

Activities of outsourcing include

 Employee hiring
 Training and development
 Payroll preparation
 Benefits administration
 Statutory records maintenance
Now- a-days Indian companies are 72% of outsourcing their HR activities.

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 Policies
A policy is a plan of action. Organizations need to evolve HR policies as they
ensure consistency and uniformity in treating people.. They help motive and build
loyalty. Policies become bench marks to compare and evaluate performance.
Principles
Principles guide managers in formulating policies, programs, procedure and

practices.

Principles of individual development

Principles of sensitive selection
Principles of free flow of communication
Principles of participation
Personal principles Principles of fair remuneration
Principles of incentive
Principles of dignity of labour
Principles of labour management cooperation
Principles of team spirit
Principles of contribution to national prosperit

HRM HR Behavioral Performance

Practices outcomes outcomes Outcomes
Hiring Commitm Motivation Positive
Training ent. Cooperation Productivity Financial
HRM Appraisal Quality Organization Innovation outcomes
Straggles Compensat Flexibility al citizenship Quality Profits
ion. Negative ROI
Relation Lowproductivit

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 y.
Absenteeism
Turnover.

Human Capital Management (HCM)

The term HRM is now sought to be replaced by HCM. HCM refers to the task of
measuring the cause and effect relationship of various HR programmers and policies on the
bottom line of the organization. It seeks to objective additional productivity.

Cultural

Unions

Strategy task and leadership

Organization culture and conflict HRM

Personal bodies

Political, Legal

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 Economics

Technological

Strategy

A strategy indicates the direction in which an organization moves. Task si a work

that an employee is expected to do. Several tasks constitute a job task has implications on
employee motivation and satisfaction.

Union

Unionization as an external factor was examined earlier. A trade union may be

understood as an association of workers or management formed to protect their own
interest.

Domain and domain consensus

The domain is the part of the environment which the organization carves out for
itself. The organization delineates its own territory out of the environment.

Environmental scanning

Environment scanning involves general surveillance of the environment to

determine trends and projections of factors that will affect for the fortunes of the
organization.

Strategic human resource management refers to the process of developing practices,

programmers, and policies that help active organizational objective.

Integration among functions

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 Finance

Production
Operation Human Resource
Management Management

Material Marketing
Management

Research Management
Development Informationsystem

Human Resourcing Planning is a subsystem in the total organizational planning (or) for
employment planning.

HRP- The process of forecasting an organization’s future demand for and supply of the
right type of people in the right number.

Factors effecting HRP

Organization growth
Cycle and planning

Type and Strategy of Environmental

Organization uncertainties

Time Horizons HRP Outsourcing

Typed quality of
Forecasting Nature of jobs filled
Information

HRD forecast
It is the processes of estimating the quantity and quality of people requires meeting future
needs of the organization.

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 Managerial judgment
Ratio-Trend analysis
Regression analysis
Work study technique Forecasting Techniques
Delphi technique
Flow models
Others.

Managerial Judgment
This Technique is very simple, the technique nay involve a bottom up or a top-down
approach. Discuss and arrive at a figure which would be the future demand for labour.

Ratio-trend analysis
This is the quickest forecasting techniques. It is involve studying past rations and
forecasting future ratio making some allowances for changes in the organizations or its
methods.

Managerial succession planning

It includes training programmes and series of job assignments leading to top
positions.

Job analysis
Job analysis is the process of collecting job related information. Such
information helps in the preparation of job description and job specification.
Job analysis
It is involves collection of job related information. The focus is on the job but
not on the individual holding the job. However, individuals are consulted.

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 HRP

Recruitment &selection

Job Training & Development

Job Description
Analysis
Job Evaluation
Job
Specification
Remuneration

Performance appraisal

Personal information

Safety and Health

Interviews
Questionnaire
Diary Job data
Technical conference
Checklists
Observation

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 Job design
Job design involves conscious efforts to organize tasks, duties and responsibilities
into a unit of work to achieve certain objectives. Job design follows job analysis.
Job rotation
It is involves moving employees from job to job to add variety and reduce boredom.
Job enrichment
Job enrichment involves adding more motivators to a job to make it more rewarding.
Job becomes enriched when it gives job- holder more decision-making, planning and
controlling powers.

Techno stress is caused by new and advancing technologies, partially by information

technology.

Recruitment involves attracting and obtaining as may applications as possible from

eligible job-seekers.

Yield rations express the relationship of applicant inputs to outputs at various decision
points.
Finding fees
When employees recommend successful referrals, they are paid monetary
incentives.
E-recruiting
It involves screening candidates electronically, directing potential hire’s to a
special website for online skill assessment, conducting back ground checks over the
interment, interviewing candidates via, videoconferencing, and managing the entire
process with web- based software.
False negative error
False negative error means rejection of an applicant who would have succeeded.
False positive error.
It is an applicant is selected expecting success, but failure occurs.

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 True positive
Results when a candidate is hired expecting success and success results.
True negative
Failure is predicted and it happens.

1-Under training and development plan, the form is to be prepared in

________ form.

a. Duplicate
b. Structured
c. Detailed
d. None of the above

(Ans: a)

2-The process of analyzing jobs from which job descriptions are

developed are called________.

a. Job analysis
b. Job evaluation
c. Job enrichment
d. Job enlargement

(Ans: a)

3-Match the following

Question Correct option

A. The monitoring 1. The firm identifies and confirms the overall
stage business direction.
B. The clarification 2. Investment on the human capital and the value
stage placed by employees on this investment.
C. The assessment
3. The firm checks the new system against strategy.
stage
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 D. The design stage 4. The firm plans the proposed changes into practice.

The correct order is

a. A-3, B-1, C-2, D-4

b. A-3, B-1, C-4, D-2
c. A-1, B-3, C-2, D-4
d. A-3, B-2, C-1, D-4

(Ans: a)

4-When effort to earn additional income through a second job does

not bear fruit, such type of efforts & the consequent results may be
called as

a. Red moon lighting

b. Blue moon lighting
c. Yellow moon lighting
d. Silver moon lighting

(Ans: b)

5-Which pay is one of the most crucial pay given to the employee &
also shown in the pay structure?

a. Performance
b. Strategic
c. Bonus
d. Commission

(Ans: a)

6-Which of the following is (are) the HRD score card?

a. HRD systems maturity score

b. Competency score
c. HRD competencies systems maturity score
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 d. All of the above

(Ans: d)

7-360 -Degree Feedback enhances the quality of ________

decisions.

a. HR
b. Management
c. HRD
d. All of the above

(Ans: d)

8-In the Grid Seminars, stress is laid on _______.

a. Teaching
b. Professionalism
c. Training & Development
d. All of the above

(Ans: a)

9-The three performance counseling phases are

a. Rapport building, Exploration, Action planning

b. Support building, Exploration, Action planning
c. Rapport building, Explanation, Action planning
d. Rapport building, Exploration, Accurate planning

(Ans: a)

10-What is that describes the duties of the job, authority

relationship, skills requirement, conditions of work etc.

a. Job analysis
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 b. Job enlargement
c. Job enrichment
d. Job evaluation

(Ans: a)

Q16. Which of the following is the best definition of a centralised management

system?

a.A system that encourages empowerment of workers

b.A management structure that concentrates on developing the skills of junior

personnel

c.A system that involves authority and responsibility for decision-making being in
the hands of senior managers

d.A system that encourages faster decision-making

Q17. Most management teams use 'appraisal' but what is meant by this term?
a.A system used to improve the performance of personnel.

[Link] main way in which an employees wages are determined.

c.A system of reward points offered by retailers to attract customer loyalty.

[Link] evaluation of an individual employee's performance over a given period of

time.

Q18. In recent years autonomous working groups have come to play an important
part in many businesses. What are their essential features?

[Link] group reports directly to the senior management above them in the hierarchy
of the firm.

[Link] creation of teams which have a high level of autonomy and control over their
immediate working environment.

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 c. The bringing together of various individuals who have a common interest in
solving certain problems.

e. A group of experts brought into research new ways of producing a product.

Q19. Authoritarian leadership is a term often seen in textbooks. What does it

mean?

a.

A style of leadership where the leader keeps a very tight control on all information
and decision-making processes.

b.

A system of leadership that allows maximum participation by all employees.

c.

A chain of command that is flat and allows considerable personal freedom to make
decisions.

d.

The selling of debts to an agency, who take responsibility for their collection.

Q20. Ineffective planning of workforce would be highlighted by

:

a.

Recruitment and selection problems.

b.

The need to out source some of the production

c.

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 A need to offer retraining to current employees.

f. An opportunity to increase the use of mechanisation.

Q21. Which of the following is one of the factors that might influence the style of
leadership used by a firm?

[Link] that employees who agree are favoured.

[Link] should be left to be more in control of their own working environment.

[Link] profit sharing as part of employees remuneration package.

[Link] skills expected from each employee.

Q22. Which of the following will influence the style of management used by a
company?

[Link] desire by the owner to have the workforce treat him in a fatherly way.

[Link] need to focus discussions on policy as a joint process between employees

and employer / manager.

[Link] culture of the company, the nature of its work and the preferences of the
individual managers.

[Link] use of distinct penalties for poor performance.

Q23. What is meant by the term empowerment?

a.A process of giving employees greater autonomy and decision-making powers.

b.A system that encourages workers to move more freely within the workforce.

[Link] opportunity to share in the company's profits.

d.A formal system of leadership that relies greatly on control.

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 Q24. Which of the following will influence the method of recruitment and
selection used by a company?

[Link] state of the economy.

[Link] size of the organisation.

[Link] type of training programmes used by the company.

[Link] possible expansion of UK business in Europe.

Q25. Which of the following is an accurate definition of recruitment?

[Link] process of attempting to fill gaps that exist in the skills of the current labour
force.

[Link] system of following someone around and noting how they perform their
duties.

[Link] process by which companies fill the need to find new employees.

d.A statement that enshrines the fundamental objectives of the company.

Q26. Which of the following is NOT normally a sign of poor morale amongst a
workforce?

[Link] levels of absenteeism.

[Link] levels of turnover.

[Link] levels of personal productivity

d.A poor external image and difficulties attracting good recruits.

Q27. Which of the following IS one of Herzberg's 'motivational factors'?

[Link] to achieve some personal advancement within the organisation.

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 [Link] application of respected supervision of employees by those responsible for
this role within the organisation.

[Link] organisations it is the workings of groups that influence codes of

behaviour.

[Link] are primarily motivated by money and little else.

Q28. Which of the following is one of Herzberg's 'hygiene factors'?

[Link] in the workplace
b.A reasonable salary.

[Link] opportunity to take some responsibility in ones place of work.

[Link] a sense of achievement in the working environment.

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