Introduction to Human

Resource Management
EDGMT 711
ADVANCED HRM COMMUNICATIONS
AND DECISION-MAKING
The course aims to activate and put into
practice the theories and models of Human
Resource to people who are working in an
organization. It is a managerial function that
tries to match an organization’s needs to the
skills and abilities of its employees.

Source: Management Study Guide

Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
 Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
Introduction
Look at the questions given below and try answering them.

• Whom do you send your resume to when you see a job opening that
interests you?

• Who gives you the job offer and discusses your pay package with
you? • Who inducts you into the organization when you are a new
employee?
• Whom do you contact when you have any doubts regarding your pay
package, perks, benefits, conveyance, leave management etc.?

• Who helps you in the final exit formalities when you leave an
organization?

• Who takes care of your training and development needs?

Introduction
You must have guessed correctly. It is the
Human
Resource Managers and people from the HR
Department who take care of you right from the
time when you apply to a company, you get the
job, you join the company, are working with the
company till the time you leave the company.

Hence, in your
 entire lifecycle of involvement with the company, the HR
always stands by you and
supports you during your tenure with the company.
Hence, HR managers are also known as ‘People
Managers’, ‘People Enablers’ and the practice as
‘Human Resource or People Management’.
Introduction

Human Resource Management is an

important
function of any organization. It encompasses the
management of people in organizations from a
macro perspective i.e. managing people in the
form of a collective relationship between
management and employees.

Thus,
the HR function is
concerned with
the notions of
people enabling,
people
development and a
focus on making the ‘employment relationship’
fulfilling for both the management and employees.
Let us learn about Human Resource Management
in detail.
Objective
Explain What is Human Resource Management (HRM)
 Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
What is Human Resource Management (HRM)?
 It is a science as well
because of the precision and
rigorous application of
theory that is required.

Human Resource ‘art and science’.

Management (HRM) is an
 innovative
approaches.
Thus, HRM is both the art of
managing people by
recourse to creative and
What is Human Resource Management (HRM)?

HRM is all about people in organizations. No wonder that some MNC’s

(Multinationals) call the HR managers as People Managers, People Enablers and
the practice as People Management. In the 21st century organizations, the HR
manager or the people manager is no longer seen as someone who takes care of
the activities described in the traditional way. In fact, most organizations have
different departments dealing with Staffing, Payroll, and Retention etc. Instead,
the HR manager is responsible for managing employee expectations vis-à-vis the
management objectives and reconciling both to ensure employee fulfillment and
realization of management objectives.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
 Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
Human Resource Management - Definition
The process of defining HRM leads
us to two different definitions.
They are:

• Traditional Definition

• Contemporary Definition
 Let us look at each definition.
HRM - Traditional Definition

Traditional
Definition:
 The first definition of HRM is that it is the
process of managing people in organizations
in a structured and thorough manner. This
covers the fields of staffing (hiring people),
retention of people, pay and perks setting and
management, performance management,
change management and taking care of exits
from the company to round off the activities.
This is the traditional definition of HRM which
leads some experts to define it as a modern
version of the Personnel Management
function that was used earlier.
HRM - Contemporary Definition

Contemporary
 Definition:
The second definition of HRM encompasses
the management of people in organizations
from a macro perspective i.e. managing
people in the form of a collective relationship
between management and employees. This
approach focuses on the objectives and
outcomes of the HRM function. What this
means is that the HR function in
contemporary organizations is concerned with
the notions of people enabling, people
development and a focus on making the
‘employment relationship’ fulfilling for both
the management and employees.
Importance of HRM for Organizational Success
There are various reasons for organizations to have a
HRM strategy as well as the business drivers that
make the strategy imperative for organizational
success.
It is a fact that to thrive in the chaotic and turbulent
business environment, firms need to constantly
innovate and be ‘ahead of the curve’ in terms of
business practices and strategies.

It is from this motivation to be at the top of

the pack that HRM becomes a valuable tool
for management to ensure success.
Importance of HRM for Organizational Success
The following are the various reasons that organizations need to give
importance to HRM:
• The Evolving Business Paradigm

• Strategic Management and HRM

• Need for Adopting a Holistic Approach

Importance of HRM for Organizational
Success • The Evolving Business Paradigm

One of the factors behind organizations giving a lot of attention to their

people is the nature of the firms in the current business environment. There
has been a steady movement towards an economy based on services; hence,
it becomes important for firms engaged in the service sector to keep their
employees motivated and productive. Even in the manufacturing and the
traditional sectors, the need to remain competitive has meant that firms in
these sectors deploy strategies that make effective use of their resources. This
changed business landscape resulted due to a paradigm shift in the way
businesses and firms view their employees as more than just resources and
instead adopt a ‘people first’ approach.
Importance of HRM for Organizational
Success • Strategic Management and HRM
Moreover, there is a need to align organizational goals with that of the HR
strategy to ensure that there is alignment of the people policies with that of
the management objectives. This means that the HR department can no
longer be viewed as an appendage of the firm but instead is a vital organ in
ensuring organizational success. The aims of strategic management are to
provide the organization with a sense of direction and a feeling of purpose.
The current HRM practices in many industries are taken as seriously as the
marketing and production functions.
Importance of HRM for Organizational

Success • Need for Adopting a Holistic Approach

The practice of HRM must be applied to the overall strategic goals for the
organization instead of a standalone tint that takes a unit based or a micro
approach. The idea here is to adopt a holistic perspective towards HRM that
ensures that there are no piecemeal strategies and the HRM policy enmeshes
itself fully with those of the organizational goals. The practice of HRM needs
to be integrated with the overall strategy to ensure effective use of people
and provide better returns to the organizations in terms of ROI (Return on
Investment) for every rupee or dollar spent on them. Unless the HRM practice
is designed in this way, the firms stand to lose from not utilizing people fully
and this does not bode well for the success of the organization.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
 Information System
List the Tips for Effective HRM
Scope of Human Resource Management

Human resources are undoubtedly the key resources in an organization, the

easiest and the most difficult to manage. The objectives of the HRM span right
from the manpower needs assessment to management and retention of the
same. To fulfill this purpose, Human Resource Management is responsible for
effective designing and implementation of various policies, procedures and
programs. It is all about developing and managing knowledge, skills, creativity,
aptitude and talent and using them optimally.

Human Resource Management is not just limited to manage and optimally

exploit human intellect. It also focuses on managing physical and emotional
capital of employees. Thus, the scope of HRM is widening with every passing day,
considering the intricacies involved.
Scope of Human Resource Management
The scope
of HRM
covers
but is not
limited
to the
 following functions:

Training and Development Industrial Relations

Hiring (Recruitment

and Selection) Grievance Handling HR planning

Payroll Management
Legal
Rewards and Procedures
Recognitions
Therefore, HRM is about developing and managing harmonious relationships at
workplace and striking a balance between organizational goals and individual
goals.
Scope of Human Resource Management
The scope of HRM is extensive and
far-reaching. Therefore, it is very
difficult to define it concisely.
However, we can classify the Personnel Management
scope of HRM under the
following three categories: HRM in
Employee Welfare

HRM in
Industrial Relations

HRM in
Let’s look at each in detail.
Scope of Human Resource Management
HRM in Personnel Management:
HRM in Personnel Management is typically direct
manpower management that involves manpower
planning, hiring (recruitment and selection), training
and development, induction and orientation, transfer,
promotion, employee productivity, compensation,
layoff and retrenchment.
Scope of Human Resource Management
HRM in Personnel Management:
HRM in Personnel Management is typically direct
manpower management that involves manpower
planning, hiring (recruitment and selection), training
and development, induction and orientation, transfer,
promotion, employee productivity, compensation,
layoff and retrenchment.

The overall objective here is to ascertain individual growth, development and

effectiveness which indirectly contribute to organizational development.

It also includes performance appraisal, developing new skills,

disbursement of wages, incentives, allowances, travelling
policies and procedures and other related courses of actions.
Scope of Human Resource
Management
 HRM in Employee
Welfare

HRM in Employee Welfare is a particular aspect of HRM

which deals with working conditions and amenities at
workplace. This includes a wide array of responsibilities
and services such as safety services, health services,
welfare funds, social security and medical services. It
also covers appointment of safety officers, making the
environment worth working, eliminating workplace
hazards, support by top management, job safety,
safeguarding machinery, cleanliness, proper ventilation
and lighting, medical care, sickness benefits, employee
injury benefits, personal injury benefits, maternity
benefits, unemployment benefits and family benefits.
Scope of Human Resource Management

HRM in Employee
Welfare
HRM in Employee Welfare is a particular aspect of HRM
which deals with working conditions and amenities at
workplace. This includes a wide array of responsibilities
and services such as safety services, health services,
welfare funds, social security and medical services. It
It also relates to supervision, employee counseling, establishing harmonious
also covers appointment of safety officers, making the
relationships with employees, education and training. Employee welfare is
environment worth working, eliminating workplace
about determining employees’ real needs and fulfilling them
with active hazards, support by top management, job safety,
participation of both management and employees. In addition
to this, it also safeguarding machinery, cleanliness, proper
ventilation
takes care of canteen facilities, crèches, rest and lunch rooms,
housing, and lighting, medical care, sickness benefits, employee
transport, medical assistance, education, health and safety, recreation
injury benefits, personal injury benefits, maternity
facilities, etc.
benefits, unemployment benefits and family benefits.
 Scope of Human Resource Management

HRM in Industrial Relations

HRM in Industrial Relations is a highly sensitive area. It
needs careful interactions with labor or employee
unions, addressing their grievances and settling the
disputes effectively in order to maintain peace and
harmony in the organization.
Scope of Human Resource
 Management Roll your

mouse over
the icon, to
learn more.

It is the art and science of understanding the employment (union

management) relations, joint consultation, disciplinary procedures, solving
HRM in Industrial Relations
problems with mutual efforts, understanding human behavior and
HRM in Industrial Relations is a highly sensitive area. It
maintaining work relations, collective bargaining and settlement of
disputes. needs careful interactions with labor or employee
unions, addressing their grievances and settling the
The main aim is to safeguard the interest of employees by
securing the disputes effectively in order to maintain peace and
highest level of understanding to the extent that does not leave a
negative harmony in the organization.
impact on organization. It is about establishing, growing and promoting
industrial democracy to safeguard the interests of both employees and
management.
Did You Know?

Another vital
part of the HR
planning

process is 'Succession Planning'. Succession

 Planning refers to the way in which a
company forms policies for replacing key
members of its organization, shifting
transfer of authority and responsibility
carefully from a leaving member to a new
member. This often entails ensuring that an
arriving employee has the necessary training
and experience to fulfill their functions.
MCQ
Q. Which of the following is NOT a
scope of HRM?
 Click on the
radio button
to select the
correct
answer!
MCQ
Q. Which of the following is NOT a
scope of HRM?

MCQ
Q. Which of the following is NOT a
scope of HRM?

Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
 Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
Processes in Human Resource Management

Each organization works towards

the realization of one vision.

The same is achieved by

formulation of certain strategies
and execution of the same, which
is done by the HR department.

At the base of this strategy

formulation lie various processes
and the effectiveness of the
strategy formulation lies in the
meticulous design of these
processes.
Processes in Human Resource
Management The following are the various HR processes:

The efficient designing of these processes apart from other things depends
upon the degree of correspondence of each of these. This means that each
process is subservient to other. You start from Human Resource Planning and
 there is a continual value addition at each step. All processes are integral to
the survival and success of HR strategies and no single process can work in
isolation; there has to be a high level of conformity and cohesiveness
between the same.
Let us look at each process in detail.
Processes in Human Resource Management
1

Human Resource Planning is generally considered as

the process of people forecasting. This is right but
does not completely define what Human Resource
Planning encompasses. It also involves the processes
of Evaluation, Promotion and Layoff. Human Resource
Planning involves the following functions:
• Recruitment: It aims at attracting applicants that
match a certain Job Criteria.
• Selection: The next level of filtration. This aims at
short listing candidates who are the closest
match in terms qualifications, expertise and
 potential for a certain job.
• Hiring: This involves deciding upon the final
candidate who gets the job.
• Training and Development: These processes work
on an onboard employee for up gradation of his
skills and abilities.
Processes in Human Resource

Management 2

Employee Remuneration and Benefits

Administration is the process that involves
deciding upon salaries and wages,
Incentives, Fringe Benefits and Perquisites
etc.
This process is very important because
money is the prime motivator in any job.
Performing employees seek raises, better
salaries and bonuses.
Processes in Human Resource Management
3

Performance Management helps the

organization to train, motivate and reward
workers. It is also meant to ensure that the
organizational goals are met with efficiency.
The process can be conducted for not only
the employees but can also be conducted for
a department, product, service or customer
process; all towards enhancing or adding
value to them.

Nowadays, there is an automated

Performance Management System (PMS)
that gathers and provides all the information
to help managers evaluate the performance
of the employees and assess them
accordingly on their training and
development needs.
Processes in Human Resource Management
4

Employee relations include Labor Law and

Relations, working environment, employee
health and safety, employee- employee
conflict management, employee- employer
conflict management, quality of work life,
workers compensation, employee wellness
and assistance programs, counseling for
occupational stress. All these are critical to
employee retention apart from the money
or remuneration which is only a hygiene
factor. Employee retention is a nuisance in
organizations, especially in industries that
are hugely competitive in nature. Though
there are myriad factors that motivate an
individual to stick to or leave an
organization, but few such as stated above
are certainly under our control.
MCQ

Q. Which of the
following is an
aspect
of HRM which
deals with
working
conditions and amenities at
workplace?
 answer!

Click on
the radio
button to
select the correct
MCQ
Q. Which of the following is an aspect
of HRM which deals with working
conditions and amenities at
workplace?
MCQ
Q. Which of the following is an aspect
of HRM which deals with working
conditions and amenities at
workplace?
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
 Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
Skills of HR Professionals
The various skills of HR professionals are as follows:
 Let us look at each in detail.
Skills of HR Professionals
 HR Skills:

HR managers are required to know how people play a role

in the organization, an advantage against the competition
as well as the policies, programs etc. Today’s HR
professional must be skilled at communicating,
negotiating and team development.
Skills of HR Professionals
 Decision Making Skills:

HR managers should take a variety of decisions that affect

whether employees are qualified and motivated and
whether the organization is operating efficiently and
complying with the law. This requires knowledge of the
organization’s line of business and decisions must take
into account social and ethical implication of the
alternatives.
Skills of HR Professionals
 Technical Skills:

These skills are specialized skills. In HRM, professionals

need knowledge of state-of-the-art practices in such areas
as staffing, development, rewards, organizational design
etc.
Skills of HR Professionals
 Leadership Skills:

HR managers need to play a leadership role with regard to

the organization’s HR. In today’s environment, leadership
often requires helping the organization manage change.
HR professional must oversee the changes taking place to
make it a success.
following are some of the emerging HRM
Emerging HRM Functions functions: Roll your mouse

The HR managers
contribute to the development of the organization, realization of busines
over the icon, to learn Partner
more.
Change Champion

HR managers have to
Employee serve as advocates of the
employees. It
HR managers have to be Advocate
change agents, thus means that they have to
plans and
create a work
requiring them to achievement of
environment in which the
acquire knowledge about objectives.
employees are
and the ability to execute
motivated, contributing
successful change
and happy.
strategies in the Business
organization. and
Strategic
Tip!

• Internal scans are used to identify key

 movements and patterns within the
organization which may affect HR operations.
• External scans look at outside factors such as
economic conditions and the need for certain
skills which affect employment.
Difference between Personnel Management & HRM
Personnel Management is essentially ‘workforce’ centered whereas Human
Resource Management is ‘resource’ centered.

Personnel
Management
Human
Resource
Management
 Let us understand the various differences between Personnel Management and
Human Resource Management.
Difference between Personnel Management &
HRMPersonnel Management:
Traditionally the term personnel management
was used to refer to the set of activities
concerning the workforce which included
staffing, payroll, contractual obligations and
other administrative tasks. In this respect,
personnel management encompasses the range
of activities that are to do with managing the
workforce rather than resources. Personnel
Management is more administrative in nature.
The Personnel Manager’s main job is to ensure
that the needs of the workforce as they pertain
to their immediate concerns are taken care of.
Further, personnel managers typically played the
role of mediators between the management and
the employees and hence there was always the
feeling that personnel management was not in
tune with the objectives of the management.
Difference between Personnel Management &
HRMHuman Resource Management:
With the advent of resource centric organizations
in recent decades, it has become imperative to
put ‘people first’ as well as secure management
objectives of maximizing the ROI (Return on
Investment) on the resources. This has led to the
development of the modern HRM function which
is primarily concerned with ensuring the
 fulfillment of management objectives and at the
same time ensuring that the needs of the
resources are taken care of. In this way, HRM
differs from personnel management not only in
its broader scope but also in the way in which its
mission is defined. HRM goes beyond the
administrative tasks of personnel management
and encompasses a broad vision of how
management would like the resources to
contribute to the success of the organization.
HRM Practices – Job Analysis & Job Design
There are a few key concepts involved in defining a job, which is a key role of
HRM, such as follows:
 Let us look at each in
detail.
HRM Practices – Job Analysis & Job Design
HRM Practices – Job Analysis & Job Design
HRM Practices – Job Analysis & Job Design
HRM Practices – Job Analysis & Job Design
HRM Practices – Training and Development
Training is a planned effort to
facilitate the learning of job
related skills, knowledge and
behavior by employees.
 Development is the
acquisition of knowledge,
skills and behaviors that
improve an employee’s ability
to meet changes in job
requirements.
HRM Practices – Training and Development
The following considerations need to be taken into account when an HR
professional tries to assess the training and development needs of the
employees of an organization:

Spontaneous, unplanned
training or Systematic, skills or future job
planned training skills
Focus on current job
Train few employees or orientation or Group
Train all employees orientation

Individual
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
 Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
HRM and Performance Management
 • Performance Management is the
process of reviewing an employee’s
performance during the preceding
year or cycle and deciding where he
or she stands as far as their peers in
the same band are concerned.
HRM and Performance Management
• Hence,

Performance Management is
all about the process of reviewing
results, arriving at a rating and then
deciding upon the bonus or salary
hike.
HRM and Performance
Typically, the process of
Management
 In the same
vein, it can
be half

The appraisal
cycle can be
half-yearly or
yearly
performance management depending upon the policies of the
starts a month or two before organization.
the appraisal cycle ends.
 Further, the appraisal cycle can be based
on the calendar year or the financial year
i.e. it can run from January to December
of the same year or April to March of the
following year.

yearly as well.
Appraisal Process
There are different rounds to the appraisal process.
 Let us look at each round in detail.
Appraisal Process
In the first round, the people who participate in an employee’s appraisal
are the employee and his manager. In this round, the manager gives a
frank assessment of the employee’s performance after giving a chance
to the employee to self-assess himself.
Appraisal Process
The second round consists of the ratings from the manager and the
manager’s manager. This round is mostly about deciding the band in
which the employee falls post the rating and in comparison with his or
her peers. This process of rationalizing the employee’s performance with
others is called ‘normalization’.
Appraisal Process
 Roll your mouse
over the icon, to
learn more.

In some organizations, this takes place in the third round where the HR
manager is involved as well. In any case, the ratings cannot be decided
without the HR manager’s assent to the same. Once these rounds are
over, the bonus level or the salary hike are decided.
Did You Know?
 It has been found
that the
performance
management
process as it exists
in many

organizations leaves a lot to be desired. In fact,

surveys and studies have found that the majority
of employee’s who quit organizations do so
because of differences over their ratings. In other
 words, attrition is in many cases a direct
consequence of the way in which the
performance management process is managed.
This happens because personal biases and
prejudices affect the process, in many cases, if
the manager and the employee do not see eye to
eye on many issues, the appraisal and the ratings
are the place where this difference of opinion
comes out into the open.
Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
 Describe the Various Retention Strategies
Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
Hiring Strategies followed by Organizations
Hiring Strategies followed by Organizations
 Hiring can take place in many ways and at many levels such as
follows:
Hiring can be for entry level positions or ‘lateral’ hiring where people with
experience are taken on board.

Further, hiring people can be based on competitive exams (entry level) and
the personal approach favored by HR managers for senior level positions.
In recent times, hiring for the entry level has taken on an entirely new
dimension with the campus recruitment procedures that rely on getting the
best talent available from the campuses.
The other way of hiring is through selective approach where the Staffing
department entrusts the placement consultants with the task of identifying
potential employees by picking ‘profiles’ from employee databases and the
consultants own database as well.
The most niche hiring takes place at senior levels where the essence is
discreetness and hence dedicated consultants or HR professionals
approach people at higher levels on a one-one basis.

Hence, different hiring strategies are used for different levels in the organization.
 Components of Hiring Process

INTERVIEW
Whatever is the hiring strategy deployed, the essential
components of the process remain more or less the same.
These include choosing from the available
candidates, taking a
decision as to the pay and
perks, making an offer and
finally, getting them ‘on board’. The hiring process
ranges from less than a month or so to drawn out
affairs for niche placement. The strategic imperatives that
underpin hiring depend on the ability of the organization to effectively
leverage its reputation, flexibility in the roles that are available,
availability of skilled resources and finally, the package that the
organization is willing to offer.
 Components of Hiring Process
about whether a particular person is suitable for the role

HIRED
The term ‘fitment’ is often used as HR jargon which is all

that is being filled and how well he or she ‘fits’ the job
profile. One of the reasons for attrition in organizations is
the fact that many employees join an organization with
a
set of assumptions about their role only to
have their hopes
dashed in reality. Hence, in recent times,
industry experts
have focused on this aspect of ensuring that
people are
hired only if they are of the right fit. Therefore, hiring
people is a key
component of a company’s internal strategy
and hence
something that
needs detailed
attention and
focus.

Objective
Explain What is Human Resource Management (HRM)
Define Human Resource Management
Explain the Scope of Human Resource Management
Describe the Processes in Human Resource Management
Explain the Skills of HR Professionals
Explain Role of HRM in Performance Management
Explain the Hiring Strategies followed by Organizations
Describe the Various Retention Strategies
 Explain Human Resource Planning
Explain How HRM Manages Employee’s Performance
Explain the Management of Contractors
Explain What is Strategic Human Resource Management
Explain What is Global Human Resource
Management Explain What is Human Resource
Information System
List the Tips for Effective HRM
Retention Strategies
Any employee retention strategy would necessarily include a plan for
redressing employee grievances and ways and means to address employee
issues. This would mean that the employees are able to convey their issues
regarding pay, their work, their role etc. to the HR manager for each
division and expect to get a fair hearing in the process. There should be a
plan where the HR manager works in conjunction with the grieved
employee’s manager towards resolving the issue.
Components of a Retention Strategy
There are various components that make up a retention strategy such as
follows:

Job Rotation

Grievance Redressal

Mitigating Job
 Dissatisfaction

Let us look at each element.

Components of a
Retention Strategy
Job Rotation
 One of the most common retention
strategies is ‘job rotation’. Job rotation
is the practice of moving the
employees around different functions
of the organization with a clear
emphasis on making sure that they
operate in domains other than the ones
assigned to them initially. This ensures
that the employees get trained on
competencies beyond that of their
assigned role and this would lead to
Grievance greater motivation to pick up
Redressal additional skills and motivate them to
perform better.
Mitigating Job
Dissatisfaction
Components of a Retention Strategy
Job Rotation
Grievance Redressal HRM plan as research has shown that
an employee with pending issues
awaiting resolution is twice more
likely to quit the company than the
Mitigating
other employees. Hence, all efforts
Job
must be made to redress the
Dissatisfaction
grievances of the employees.
Grievance redressal is the most
critical and crucial component of the
Components of a Retention Strategy

Job
 Rotation
Therefore, an effective retention strategy would focus on preventing as well as
addressing grievances. Though it is not the contention that all grievances can be
prevented, they can be ‘pre-empted’ by actively listening to the employees from
Grievance Redressal critical and
Grievance redressal is the most
time to time. This strategy of ‘listening’ to the
employees would revolve around
crucial component of the HRM plan as
a concept of ‘one-one’ meetings between the employees and the manager and
research has shown that an employee with
employees and the HR representative for the unit or
division. The aim of such
pending issues awaiting resolution is twice
regular ‘one-one’ meetings would be to identify
potential causes of friction
Mitigating Job than the
more likely to quit the company
among the employees and any issues they may have vis-à-vis their job and
Dissatisfaction must be
other employees. Hence, all efforts
benefits. These issues need to be brought out into the open before
they become
made to redress the grievances of the
contentious which may cause the employee to feel frustrated
and quit the job.
employees.
Hence, all efforts must be
made to identify
sources of employee
dissatisfaction and
‘hygiene factors’ that must be taken care of for proper functioning of

the employees.